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 ofthe 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 (H), 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.

(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.