4. Summary of material accounting
policies

A. Revenue recognition

Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company
and the revenue can be reliably measured.

Revenue from contracts with customers:

- Revenue is recognized on the basis of approved
contracts regarding the transfer of goods or
services to a customer for an amount that
reflects the consideration to which the entity
expects to be entitled in exchange for those
goods and services.

- Revenue is measured at the amount of
transaction price after taking into account
the amount of discounts, incentives, volume
rebates, outgoing taxes on sales. Any amounts
receivable from the customer are recognised
as revenue after the control over the goods sold
are transferred to the customer.

- Variable consideration - This includes incentives,
volume rebates, discounts etc. It is estimated
at contract inception considering the terms of
various schemes with customers and constrained
until it is highly probable that a significant revenue
reversal in the amount of cumulative revenue
recognised will not occur when the associated
uncertainty with the variable consideration is
subsequently resolved. It is reassessed at the
end of each reporting period.

Satisfaction of performance obligations:

An entity shall recognise revenue when (or as)
the entity satisfies a performance obligation by
transferring a promised good or service (i.e. an
asset) to a customer. An asset is transferred when
(or as) the customer obtains control of that asset.
For each performance obligation identified, an
entity shall determine at contract inception whether
it satisfies the performance obligation over time
or satisfies the performance obligation at a point
in time. If an entity does not satisfy a performance
obligation over time, the performance obligation is
satisfied at a point in time.

For performance obligations that an entity
satisfies over time, an entity shall disclose both
of the following:

(a) the methods used to recognise revenue (for
example, a description of the output methods
or input methods used and how those methods
are applied); and

(b) an explanation of why the methods used
provide a faithful depiction of the transfer of
goods or services.

For performance obligations satisfied at a point
in time, an entity shall disclose the significant
judgements made in evaluating when a customer
obtains control of promised goods or services.

Rental income

Revenue from leased out co-working space (Rental
income) under an operating lease is recognized
on a straight-line basis over the non-cancellable
period ('Lease term for revenue'), except where
there is an uncertainty of ultimate collection. After
lease term for revenue or where there is no non¬
cancellable period, rental revenue is recognized on
an accrual basis, in accordance with the terms of
the respective contract as and when the Company
satisfies performance obligations by delivering the
services as per contractual agreed terms.

Unbilled revenue represents revenues recognized
after the last invoice raised to customer to the
period end. These are billed in subsequent periods
based on the terms and conditions specified in
the agreement with the customers. The Company
presents service revenue net of indirect taxes in its
Standalone Statement of Profit and Loss.

Integrated facility management income ('Facility
management services')

Revenue from facility management services is
recognized monthly, on accrual basis, in accordance
with the terms of the respective agreement as and
when services are rendered.

Enterprise workspace designing and building
services ('Construction and fit-out projects')

Construction and fit-out projects where the
Company is acting as a contractor, revenue is
recognized in accordance with the terms of the
construction agreements. Under such contracts,
assets created does not have an alternative use and
the Company has an enforceable right to payment.

The Company uses output method for measuring
progress for performance obligation satisfied
over time. Under this method, the Company
recognizes revenue in proportion of progress of
the performance obligations as per contract and
impact due to contract modifications, if any. The
management reviews and revises its measure of
progress periodically and are considered as change
in estimates and accordingly, the effect of such
changes in estimates is recognised prospectively in
the period in which such changes are determined.
However, when the total project cost is estimated to
exceed total revenues from the project, the loss is
recognized immediately.

As the outcome of the contracts cannot be measured
reliably during the early stages of the project,
contract revenue is recognized only to the extent of
costs incurred in the statement of profit and loss.

Sale of food items

Revenue from sale of food items (goods) is
recognised on transfer of control of ownership
of goods to the buyer and when no significant
uncertainty exists regarding the amount of
consideration that will be derived.

Other services

Revenue from contracts with customers for other allied
services is recognized when control of the goods or
services are transferred or rendered to the customer
at an amount that reflects the consideration to which
the Company expects to be entitled in exchange
for those goods or services, in accordance with the
terms of the respective agreement.

Contract balances
Trade receivables

A receivable represents the Company's right to
an amount of consideration that is unconditional
(i.e., only the passage of time is required before
payment of the consideration is due). Refer to
accounting policies of financial assets in note
4Q (i) Financial instruments - recognition and
subsequent measurement.

As the period of time between customer payment
and performance will always be one year or less, the
Company applies the practical expedient in Ind AS
115.63 and does not adjust the promised amount of
consideration for the effects of financing.

Contract liabilities

When either party to a contract has performed
its obligation, an entity shall present the contract
in the balance sheet as a contract asset or a
contract liability, depending on the relationship
between the company’s performance and the
customer's payment.

B. Borrowing costs

Borrowing costs are interest and other costs
incurred in connection with the borrowing of funds.
Borrowing costs directly attributable to acquisition
or construction of an asset which necessarily take
a substantial period of time to get ready for their
intended use are capitalised as part of the cost of
that asset. Other borrowing costs are recognised as
an expense in the period in which they are incurred.

C. Current versus non-current classification

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification.

Assets:

An asset is treated as current when it is:

i) Expected to be realised or intended to be sold or
consumed in normal operating cycle

ii) Held primarily for the purpose of trading

iii) Expected to be realised within twelve months
after the reporting period, or

iv) Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period.

All other assets are classified as non-current.

Liabilities:

A liability is current when:

(i) It is expected to be settled in normal
operating cycle

(ii) It is held primarily for the purpose of trading

(iii) It is due to be settled within twelve months after
the reporting period, or

(iv) There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

Operating Cycle:

All assets and liabilities have been classified as current
or non-current as per the Company's operating cycle
and other criteria set out in the Schedule III to the
Companies Act, 2013. Based on the nature of services
and the time between the rendering of service and
their realization in cash and cash equivalents, the
Company has ascertained its operating cycle as
twelve months for the purpose of current and non¬
current classification of assets and liabilities.

D. Fair value measurement

Fair value is the price at the measurement date at
which an asset can be sold or paid to transfer a
liability, in an orderly transaction between market
participants. The Company's accounting policies
require, measurement of certain financial/ non¬
financial assets and liabilities at fair values (either
on a recurring or non-recurring basis). Also, the
fair values of financial instruments measured at
amortised cost are required to be disclosed in the
said standalone financial statements.

The Company is required to classify the fair
valuation method of the financial/ non-financial
assets and liabilities, either measured or disclosed
at fair value in the standalone financial statements,
using a three level fair value hierarchy (which
reflects the significance of inputs used in the
measurement). Accordingly, the Company uses
valuation techniques that are appropriate in the
circumstances and for which sufficient data are
available to measure fair value, maximising the use
of relevant observable inputs and minimising the
use of unobservable inputs.

The three levels of the fair value hierarchy are
described below:

Level 1: Quoted (unadjusted) prices for identical
assets or liabilities in active markets

Level 2: Significant inputs to the fair value

measurement are directly or indirectly observable

Level 3: Significant inputs to the fair value

measurement are unobservable.

E. Property, plant and equipment ('PPE')

Property, plant and equipment are stated at cost,
net of accumulated depreciation and accumulated
impairment losses, if any. Capital work in progress
are stated at cost net of impairment loss, if any. It
includes direct costs comprise of purchase price,
taxes, duties, freight and other incidental expenses
(including cost incurred during fit out periods).
Such cost includes the cost of replacing part of
the plant and equipment and borrowing costs for
long-term construction projects if the recognition
criteria are met. When significant parts of plant and
equipment are required to be replaced at intervals,
the Company depreciates them separately based
on their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognised in
the carrying amount of the plant and equipment
as a replacement if the recognition criteria are
satisfied. All other repair and maintenance costs are
recognised in statement of profit or loss as incurred.

Depreciation is recognized on a straight-line basis
over the estimated useful lives of the respective
assets as under:

* Leasehold improvements includes partition works,
flooring, fit-out works, civil and painting works,
electrical installations and other components.

Useful life of assets different from prescribed in
Schedule II has been estimated by the management
supported by technical assessment.

The estimated useful lives, residual values and
depreciation method are reviewed at the end of
each reporting period and the effect of any changes
in estimate is accounted for prospectively.

The management believes that these estimated
useful lives are realistic and reflect fair
approximation of the period over which the assets
are likely to be used.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as
the difference between the net disposal proceeds
and the carrying amount of the asset) is included
in the statement of profit and loss when the asset
is derecognised.

F. Intangible assets

Intangible assets acquired separately are measured
on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost
less accumulated amortization and accumulated
impairment losses, if any.

Intangible assets with finite lives are amortised
over the useful economic life and assessed for
impairment whenever there is an indication
that the intangible asset may be impaired. The
amortisation period and the amortisation method
for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period.
Changes in the expected useful life or the expected
pattern of consumption of future economic benefits
embodied in the asset are considered to modify the
amortisation period or method, as appropriate, and
are treated as changes in accounting estimates.
The amortisation expense on intangible assets with
finite lives is recognised in the statement of profit
and loss unless such expenditure forms part of
carrying value of another asset.

Gains or losses arising from de recognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognised
in the statement of profit or loss when the asset
is derecognised.

Depreciation is recognized on a straight-line basis
over the estimated useful lives of the intangible
assets as under:

G. Impairment of non-financial assets

The Company's non-financial assets other than
deferred tax assets, are reviewed at each reporting
date to determine whether there is any indication
of impairment. If any such indication exists, then
the asset's recoverable amount is estimated. For
impairment testing, assets that do not generate
independent cash inflows are grouped together into
cash-generating units (CGUs). Each CGU represents
smallest group of assets that generates cash inflows
that are largely independent of the cash inflows or
other assets or CGUs.

The recoverable amount of a CGU (or an individual
asset) is the higher of its value in use and its fair value
less costs to sell. Value in use is based on the estimated
future cash flows, discounted to their present value

using a pre-tax discount rate that reflects current
market assessments of the time value of money and
the risks specific to the CGU (or the asset).

An impairment loss is recognized if the carrying
amount of an asset or CGU exceeds its estimated
recoverable amount. Impairment losses are
recognized in the statement of profit and loss. In
respect of assets for which impairment loss has been
recognized in prior periods, the Company reviews at
each reporting date whether there is any indication
that the loss has decreased or no longer exists.

An impairment loss is reversed if there has been
a change in the estimates used to determine the
recoverable amount. Such a reversal is made only to
the extend that the asset's carrying amount does not
exceed the carrying amount that would have been
determined, net of depreciation or amortization, if
no impairment loss has been recognized.

H. Investment in subsidiaries

The Company records the investment in equity
instrument of subsidiaries at cost less impairment
loss, if any. On disposal of investments in subsidiaries,
the difference between net disposal proceeds and
the carrying amount is recognised in the statement
of profit and loss.

I. Foreign currency translations

(i) Functional and presentation currency

Items included in the standalone financial
statements are measured using the currency of
the primary economic environment in which the
entity operates ('the functional currency'). The
standalone financial statements are presented
in Indian rupee (f), which is the Company's
functional and presentation currency.

(ii) Translations and balances

Foreign currency transactions are translated
into functional currency using the exchange
rates at the dates of the transactions. Foreign
exchange gains and losses resulting from the
settlement of such transactions and from the
translation of monetary assets and liabilities
denominated in foreign currencies at the year
end exchange rates are generally recognised in
profit or loss.

Foreign exchange gains and losses are
presented in the statement of profit and loss
on a net basis.

J. Inventories

Stock of food items and furniture and other work
from home solutions are valued at lower of cost and
net realisable value and cost is determined on first-
in-first out ('FIFO') basis.

The cost is determined by considering the purchase
price and direct material costs. Net realisable value
is the estimated selling price in the ordinary course
of business less estimated cost of completion
to make the sale.

K. Employee benefits

(i) Defined contribution plan

Retirement benefit in the form of provident
fund is a defined contribution scheme. The
Company has no obligation, other than the
contribution payable to the provident fund. The
Company recognizes contribution payable to
the provident fund scheme as an expenditure,
when an employee renders the related service.
If the contribution payable to the scheme
for service received before the standalone
balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme
is recognized as a liability after deducting the
contribution already paid. If the contribution
already paid exceeds the contribution due
for services received before the standalone
balance sheet date, then excess is recognized
as an asset to the extent that the prepayment
will lead to, for example, a reduction in future
payment or a cash refund.

(ii) Defined benefit plan

The Company's net obligation in respect of
gratuity is calculated by estimating the amount
of future benefit that employees have earned in
return for their service in the current and prior
periods. That benefit is discounted to determine
its present value, and the fair value of any plan
assets is deducted. The present value of the
obligation under such defined benefit plan is
determined based on actuarial valuation by
an independent actuary using the Projected
Unit Credit Method, which recognizes each
period of service as giving rise to additional
unit of employee benefit entitlement and
measures each unit separately to build up the
final obligation. The obligation is measured at
the present value of the estimated future cash
flows. The discount rates used for determining
the present value of the obligation under
defined benefit plan are based on the market

yields on Government securities as at the
standalone balance sheet date.

When the benefits of a plan are changed or
when a plan is curtailed, the resulting change in
benefit that relates to past service ('past service
cost' or 'past service gain') or the gain or loss on
curtailment is recognised immediately in profit
or loss. The Company recognises gains and
losses on the settlement of a defined benefit
plan when the settlement occurs.

(iii) Compensated absences

Accumulated leaves which is expected to be
utilized within the next 12 months is treated as
short-term employee benefit. The Company
measures the expected cost of such absences
as the additional amount that is expects to
pay as a result of unused entitlement that
has accumulated at the reporting date. The
Company treats accumulated leave expected
to be carried forward beyond 12 months, as
long-term employee benefits for measurement
purpose. Such long-term compensated
absences are provided for based on the
actuarial valuation using the projected unit-
credit method at the year-end. The related re¬
measurements are recognized in the statement
of profit and loss in the period in which they
arise. The Company presents the entire amount
as current liability in standalone balance sheet
since it does not have an unconditional right
to defer its settlement for 12 months after the
reporting date.

(iv) Share-based payments

Employees of the Company receives
remuneration in the form of share-based
payments, whereby employees render services
as consideration for equity instruments. The cost
of equity-settled transactions is determined
by the fair value at the date when the grant is
made using Black Scholes valuation model.
The grant date fair value of options granted to
employees is recognised as employee expense
with a corresponding increase in employee
stock options reserve, over the period in which
the eligibility conditions are fulfilled and the
employees unconditionally become entitled
to the awards. The cumulative expense
recognised for equity-settled transactions
at each reporting date until the vesting date
reflects the extent to which the vesting period
has expired and the Company's best estimate

of the number of equity instruments that will
ultimately vest. The statement of profit and loss
expense or credit for a period represents the
movement in cumulative expense recognised
as at the beginning and end of that period and
is recognised in employee benefits expense.
The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

L. Income taxes

The income tax expense comprises of current and
deferred income tax. Income tax is recognised
in the statement of profit and loss, except to the
extent that it relates to items recognised in the
other comprehensive income or directly in equity,
in which case the related income tax is also
recognised accordingly.

(i) Current tax

The current tax is calculated on the basis of
the tax rates, laws and regulations, which have
been enacted or substantively enacted as
at the reporting date. The payment made in
excess/(shortfall) of the Company's income
tax obligation for the period are recognised
in the standalone balance sheet as current
income tax assets/liabilities. Any interest,
related to accrued liabilities for potential tax
assessments are not included in Income tax
charge or (credit), but are rather recognised
within finance costs.

Current income tax assets and liabilities are
off-set against each other and the resultant net
amount is presented in the standalone balance
sheet, if and only when, (a) the Company
currently has a legally enforceable right to set¬
off the current income tax assets and liabilities,
and (b) when it relates to income tax levied by
the same taxation authority and where there
is an intention to settle the current income tax
balances on net basis.

(ii) Deferred tax

Deferred tax is recognised, using the liability
method, on temporary differences arising
between the tax bases of assets and liabilities
and their carrying values in the standalone
financial statements.

Deferred tax assets are recognised only to the
extent that it is probable that future taxable

profit will be available against which the
temporary differences can be utilised.

The unrecognised deferred tax assets/carrying
amount of deferred tax assets are reviewed
at each reporting date for recoverability and
adjusted appropriately. The carrying amount
of deferred tax assets is reviewed at each
reporting date and reduced to the extent that
it is no longer probable that sufficient taxable
profit will be available to allow all or part of the
deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each
reporting date and are recognised to the
extent that it has become probable that future
taxable profits will allow the deferred tax asset
to be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at
the reporting date.

Minimum alternate tax (MAT) paid in a year is
charged to the statement of profit and loss as
current tax. The Company recognizes MAT credit
available as an asset only to the extent that
there is convincing evidence that the Company
will pay normal income tax during the specified
period, i.e., the period for which MAT credit is
allowed to be carried forward. In the year in
which the Company recognizes MAT credit as
an asset in accordance with the Guidance Note
on Accounting for Credit Available in respect
of Minimum Alternative Tax under the Income-
tax Act, 1961, the said asset is created by way
of credit to the statement of profit and loss
and shown as "MAT Credit Entitlement". The
Company reviews the "MAT credit entitlement"
asset at each reporting date and writes down
the asset to the extent the Company does
not have convincing evidence that it will pay
normal tax during the specified period.

M. Leases

The Company assesses at contract inception
whether a contract is, or contains, a lease. That is, if
the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration.

Where the Company is the lessee

The Company applies a single recognition and
measurement approach for all leases, except

for short-term leases and leases of low-value
assets. The Company recognizes lease liabilities
to make lease payments and right-of-use assets
representing the right to use the underlying assets.

(i) Right-of-use assets

The Company recognizes right-of-use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).
Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment
losses, and adjusted for any remeasurement
of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities
recognized, initial direct costs incurred,
and lease payments made at or before the
commencement date less any lease incentives
received. Right-of-use assets are depreciated
on a straight-line basis over the lease term.

If ownership of the leased asset transfers to the
Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated
useful life of the asset.

The right-of-use assets are also
subject to impairment.

(ii) Lease liabilities

At the commencement date of the lease,
the Company recognizes lease liabilities
measured at the present value of lease
payments to be made over the lease term.
The lease payments include fixed payments
(including in substance fixed payments)
less any lease incentives receivable, variable
lease payments that depend on an index or a
rate, and amounts expected to be paid under
residual value guarantees. The lease payments
also include the exercise price of a purchase
option reasonably certain to be exercised
by the Company and payments of penalties
for terminating the lease, if the lease term
reflects the Company exercising the option to
terminate. Variable lease payments that do not
depend on an index or a rate are recognized as
expenses (unless they are incurred to produce
inventories) in the period in which the event or
condition that triggers the payment occurs.

In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement
date because the interest rate implicit in the

lease is not readily determinable. After the
commencement date, the amount of lease
liabilities is increased to reflect the accretion
of interest and reduced for the lease payments
made. In addition, the carrying amount of
lease liabilities is remeasured if there is a
modification, a change in the lease term, a
change in the lease payments (e.g., changes
to future payments resulting from a change in
an index or rate used to determine such lease
payments) or a change in the assessment of an
option to purchase the underlying asset.

(iii) Short-term leases and leases of low-value
assets

The Company applies the short-term lease
recognition exemption to its short-term leases
of machinery and equipment (i.e., those leases
that have a lease term of 12 months or less from
the commencement date and do not contain
a purchase option). It also applies the lease
of low-value assets recognition exemption to
leases of office equipment that are considered
to be low value. Lease payments on short¬
term leases and leases of low-value assets are
recognized as expense on a straight-line basis
over the lease term.

Where the Company is the lessor

Leases in which the Company transfers substantially
all the risks and benefits of ownership of the asset
are classified as finance leases. Assets given under
finance lease are recognized as a receivable at an
amount equal to the net investment in the lease.
After initial recognition, the Company apportions
lease rentals between the principal repayment and
interest income so as to achieve a constant periodic
rate of return on the net investment outstanding in
respect of the finance lease. The interest income is
recognized in the statement of profit and loss.

Leases in which the Company does not transfer
substantially all the risks and benefits of ownership
of the asset are classified as operating leases. Assets
subject to operating leases are included in property,
plant and equipment. Management recognised
lease income on an operating lease is recognized
in the statement of profit and loss on a straight¬
line basis over the lease term on reasonable basis.
Costs, including depreciation, are recognized as
an expense in the statement of profit and loss.
Contingent rents are recognized as revenue in the
period in which they are earned.

N. Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders (after deducting preference
dividends and attributable taxes) by the weighted
average number of equity shares outstanding
during the period including ordinary shares that
will be issued upon the conversion of a mandatorily
convertible instrument. Partly paid equity shares
are treated as a fraction of an equity share to
the extent that they are entitled to participate in
dividends relative to a fully paid equity share during
the reporting period. The weighted average number
of equity shares outstanding during the period is
adjusted for events such as bonus issue, bonus
element in a rights issue, share split, and reverse
share split (consolidation of shares) that have
changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the
period are adjusted for the effects of all dilutive
potential equity shares.