2. MATERIAL ACCOUNTING POLICY INFORMATIONa. Statement of Compliance
These Financial Statements have been prepared in accordance with the Indian Accounting Standards ("Ind AS") as per the Companies
(Indian Accounting Standards) Rules, 2015, as amended from time to time, and notified under Section 133 of the Companies Act, 2013
(the "Act") and other relevant provisions of the Act.
b. Basis of Preparation and Presentation
The Financial Statements have been prepared on the historical cost basis except for certain financial instruments that are measured
at fair value at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or
liability, if market participants would take those characteristics into account when pricing the asset or liability at the measurement
date. Fair value for measurement and/or disclosure purposes in these Financial Statements is determined on such a basis, except for
leasing transactions that are within the scope of Ind AS 116 'Leases' ("Ind AS 116") and measurements that have some similarities
to fair value but are not fair value, such as net realisable value in Ind AS 2 'Inventories' ("Ind AS 2") or value in use in Ind AS 36
'Impairment of Assets' ("Ind AS 36").
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, Level 2 or Level 3 based on the degree
to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in
its entirety, which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either
directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
All assets and liabilities have been classified as Current and Non-current as per the Company's normal operating cycle and other
criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products/services rendered and the time between
the rendering of the products/services and their realisation in cash and cash equivalent, the Company has ascertained its operating
cycle as twelve months for the purpose of Current and Non-current classification of assets and liabilities.
All the Ind AS issued and notified by the Ministry of Corporate Affairs ("MCA") are effective and considered for the material accounting
policy information to the extent relevant and applicable for the Company.
The Financial Statements are presented in Indian Rupee ("INR" or "'"), which is the Company's functional currency and all values are
rounded to the nearest crores upto two decimals, except when otherwise indicated.
c. Key Accounting Estimates and Judgments
The preparation of Financial Statements in conformity with Ind AS requires Management to make judgements, estimates and
assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses
at the date of these Financial Statements and the reported amounts of revenues and expenses for the years presented. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future period, if the
revision affects current and future periods.
Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the
most significant effect to the carrying amounts of assets and liabilities within the financial year are:
i. Determination of the timing of revenue recognition on the sale of completed and under development property in respect of
Real Estate Development activity
Determination of revenue whether over time (Percentage Completion Method) or at a point in time (Project completion method)
necessarily involves making judgement as to when the performance obligation under the contracts with customers is satisfied. It
has been evaluated and generally concluded that the recognition of revenue over the period of time criteria are not met owing to
non-enforceable right to payment for performance completed to date and, therefore, recognises revenue at a point in time. It has
further been evaluated and concluded that based on the analysis of the rights and obligations under the terms of the contracts
relating to the sale of property, the revenue is to be recognised at a point in time when control transfers which coincides with
receipt of Occupancy Certificate and the property is made available for possession to the customers.
ii. Determination of performance obligations
With respect to the sale of property, the Company has evaluated and concluded that the goods and services transferred in
each contract constitute a single performance obligation. In particular, the promised goods and services in contracts for the
sale of property is to undertake development of property and obtaining the Occupancy Certificate. Generally, the Company is
responsible for all these goods and services and the overall management of the project. Although these goods and services are
capable of being distinct, the Company accounts for them as a single performance obligation because they are not distinct in the
context of the contract.
iii. Useful Lives of Property, Plant and Equipment and Intangible Assets and Investment Property
Management reviews the useful lives of property, plant and equipment, intangible assets and investment properties at least
once a year. Such lives are dependent upon an assessment of both the technical lives of the assets and also their likely economic
lives based on various internal and external factors including relative efficiency and operating costs. Accordingly, depreciable
lives are reviewed annually using the best information available to the Management.
iv. Provisions, Liabilities and Contingencies
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds
resulting from past operations or events that can reasonably be estimated. The timing of recognition requires application of
judgments to existing facts and circumstances which may be subject to change. The amounts are determined by discounting the
expected future cash flows at a pre- tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability.
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential
liabilities that are possible to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but
are not recognised. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
A contingent asset is not recognised, but disclosed in the Financial Statements when an inflow of economic benefit is probable.
Provisions, contingent liability and assets are reviewed at each reporting date and are adjusted to reflect the current best
estimates.
v. Fair Value Measurements
When the fair value of financial assets or financial liabilities recorded or disclosed in the Financial Statements cannot be
measured at the quoted price in the active markets, their fair value is measured using the valuation techniques including the
Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this
is not feasible, a degree of judgment is required in establishing fair values. Judgments include consideration of inputs such
as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments.
vi. Recognition and Measurement of defined benefit obligation
The obligation arising from defined benefit plans is determined on the basis of actuarial assumptions. Key actuarial assumptions
include discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at
each reporting date.
vii. Income Taxes
The Company's tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of
paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain
tax positions. Significant management judgements is also required in determining deferred tax assets and liabilities and
recoverability of deferred tax assets which is based on estimates of taxable income.
viii. Leases
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease
requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated
renewals) and the applicable discount rate.
The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option
to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate
the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and
circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise
the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a
lease.
The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of
leases with similar characteristics.
d. Recent Accounting pronouncements
The MCA notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules, as
issued from time to time. For the year ended March 31, 2026, MCA has notified below mentioned amendments that are applicable or
may have a material impact to the Company.
Amendments to Ind AS 1 'Presentation of Financial Statements' ("Ind AS 1"), as applicable for annual reporting periods beginning on
or after April 1, 2025, retrospectively - The amendment relates to classification of liabilities as current or non-current and non-current
liabilities with covenants. In the context of classifying a liability as current, it removes the requirement of existence of a right to defer
settlement for at least 12 months after the reporting date and instead requires that the said right should exist on the reporting date
and have substance. The amendment also introduces guidance on classification of liabilities with covenants. The amendment includes
specific provisions that will take effect for the reporting periods beginning on or after April 1, 2026, retrospectively. These amendments
to Ind AS 1 have no effect on the measurement of any items in the standalone financial statements of the Company, including those
for retrospective adjustments.
Amendments to Ind AS 7 'Statement of Cash Flows' ("Ind AS 7") and Ind AS 107 'Financial Instruments : Disclosures' ("Ind AS 107"),
as applicable for annual reporting periods beginning on or after April 1, 2025 - The amendment in Ind AS 7 requires to inform users
of financial statements of the existence of supplier finance arrangements and explain the nature of the arrangements, the carrying
amount of liabilities and the range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as
a factor that may cause concentration of liquidity risk. The Company has reviewed the amendment and based on its evaluation has
determined that there is no such supplier finance arrangement and accordingly, no disclosure in this regard would be required in its
standalone financial statements.
Amendments to Ind AS 12 'Income Taxes' ("Ind AS 12") regarding International Tax Reform - Pillar Two Model Rules, as applicable
immediately - The amendments provide a temporary mandatory relief from deferred tax accounting for top-up tax and disclose that
they have applied the relief. This relief is immediate and applies retrospectively. The Company has reviewed this amendment and based
on its evaluation, it has determined that it does not have any impact on its standalone financial statements.
Amendments to Ind AS 21 'The Effects of Changes in Foreign Exchange Rates' ("Ind AS 21"), as applicable for annual reporting periods
beginning on or after April 1, 2025. The Amendments introduces requirement to assess when a currency is exchangeable into another
currency and when it is not. The amendment requires an entity to estimate the spot exchange rate when it concludes that a currency
is not exchangeable into another currency. The Company has reviewed this amendment and based on its evaluation, it has determined
that it does not have any impact in its standalone financial statements.
e. Property, Plant and Equipmenti. Recognition and Measurement
Property, Plant and Equipment ("PPE") are stated at cost less accumulated depreciation and accumulated impairment losses, if
any. Freehold land is measured at cost and is not depreciated.
Cost includes purchase price, non-refundable taxes and duties and other direct costs incurred for bringing the asset to the
condition of its intended use. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. All other repair and maintenance costs are recognised in Statement of Profit and Loss
as incurred. Borrowing costs attributable to the acquisition or construction of a qualifying asset is also capitalised as part of the
cost of the asset.
ii. Depreciation
Depreciation on PPE other than Furniture and Fixture and Vehicles is provided on the straight-line method, pro rata to the period
of use, over their useful life. Depreciation on Furniture and Fixture and Vehicles is provided on the written down value method,
pro rata to the period of use, over their useful life. The estimated useful lives and residual values are as prescribed in Schedule
II to the Companies Act, 2013 except for movable site offices; as also Additions to Building on Leasehold Land (Neville House),
which are based on technical evaluation of useful life by the management.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the
effect of any changes in estimate accounted for on a prospective basis.
iii. Capital Work-in-Progress and Capital Advances
Cost of assets not ready for intended use, as on Balance Sheet date, is shown as Capital Work-in-Progress. Advances given
towards acquisition of PPE outstanding at each Balance Sheet date are disclosed as Other Non-current Assets.
f. Investment Property
Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are stated at cost less
accumulated depreciation and accumulated impairment losses, if any.
Cost includes purchase price, non-refundable taxes and duties and other direct costs incurred for bringing the asset to the condition of
its intended use. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. All other repair and maintenance costs are recognised in Statement of Profit and Loss as incurred. Borrowing costs
attributable to the acquisition or construction of a qualifying asset is also capitalised as part of the cost of the asset.
Depreciation on investment property is provided on the straight-line method, pro rata to the period of use, over the useful life as
prescribed in Schedule II to the Companies Act, 2013.
An investment property is de-recognised upon disposal or when the investment property is permanently withdrawn from use and no
future economic benefits are expected from the disposal. Any gain or loss arising on de-recognition of the property (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in Statement of Profit and Loss in the
period in which the property is de-recognised.
g. Intangible Assets
Intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any. Amortisation is
recognised on a straight-line basis over their estimated useful lives.
An intangible asset is de-recognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or
losses arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the
carrying amount of the asset, is recognised in Statement of Profit and Loss when the asset is de-recognised.
The useful lives of intangible assets are assessed as either finite or indefinite. Finite-life intangible assets are amortised on a straight¬
line basis over the period of their expected useful lives.
The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in
estimate being accounted for on a prospective basis.
h. Impairment of Tangible Assets and Intangible Assets other than Goodwill
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate
the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which
the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable
and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future
cash flows are 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 asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of
the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in Statement
of Profit and Loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would
have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an
impairment loss is recognised immediately in Statement of Profit and Loss. An impairment loss recognised for goodwill is not reversed
in subsequent period.
i. Investments in Subsidiary and Associates:
Investments at present in one subsidiary is carried at cost less accumulated impairment losses and accordingly, it is fully impaired.
Investment in two associates are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists,
the carrying amount of the investment is assessed and written down immediately to its recoverable amount.
j. Inventories
Inventories are valued at lower of cost and net realisable value. Net realisable value represents the estimated selling price for
inventories less all estimated costs of completion and costs necessary to make the sale.
Cost is determined as follows:
i. Raw materials, stores and spares, finished goods and stock-in-trade on a weighted average method.
ii. Work-in-Progress
PSF division
Material cost included in the valuation is determined on the basis of the weighted average rate and cost of conversion and other
costs are determined on the basis of average cost of conversion of the preceding month.
Real Estate Under Development
Real estate under development comprises cost of land, premium for development rights, rates and taxes, construction costs,
borrowing costs, overheads and expenses incidental to the projects undertaken by the Company. Cost of land and construction /
development costs are charged to Statement of Profit and Loss proportionate to area sold and at the time when corresponding
revenue is recognised.
k. Statement of Cash Flows
Cash flows are reported using the indirect method, whereby net profit for the period is adjusted for the effects of transactions of
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are
segregated.
For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents include cash on hand, cash at banks, other
short-term deposits and highly liquid investments with original maturity of three months or less that are readily convertible into cash.
l. Financial Instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instruments.
Financial assets (except trade receivables) and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss ("FVTPL")) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at FVTPL are recognised immediately in Statement of Profit and Loss.
Financial Assets
On initial recognition, a financial asset is recognised at fair value. All recognised financial assets are subsequently measured in their
entirety at either amortised cost or FVTPL or fair value through other comprehensive income ("FVOCI") depending on the classification
of the financial assets.
Financial assets are not reclassified subsequent to their recognition, except if and in the period the Company changes its business
model for managing financial assets.
Trade Receivables that do not contain a significant financing component are measured at transaction price. Subsequently, these assets
are held at amortised cost, using the Effective Interest Rate method net of any Expected Credit Losses ("ECL"). The EIR is the rate that
discounts estimated future cash income through the expected life of financial instrument.
Debt Instruments
Debt instruments are initially measured at amortised cost, FVOCI or FVTPL till derecognition, on the basis of (i) the entity's business
model for managing the financial assets and (ii) the contractual cash flow characteristics of the financial asset.
i. Measured at amortised cost: Financial assets that are held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortised
cost using the effective interest method less impairment, if any. The amortisation of EIR and loss arising from impairment, if any,
is recognised in the Statement of Profit and Loss.
ii. Measured at fair value through other comprehensive income: Financial assets that are held within a business model whose
objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal
and interest, are subsequently measured at fair value through other comprehensive income. Fair value movements are recognised
in the Other Comprehensive Income ("OCI"). Interest income measured using the effective interest method and impairment
losses, if any are recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognised
in OCI is reclassified from the equity to the Statement of Profit and Loss.
iii. Measured at fair value through profit or loss: A financial asset not classified as either amortised cost or FVOCI, is classified as
FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend
income if any, recognised in the Statement of Profit and Loss.
Equity Instruments
All investments in equity instruments classified under financial assets are initially measured at fair value. The Company has, on initial
recognition, irrevocably elected to measure the same at FVOCI.
Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognised in OCI. Amounts recognised in OCI
are not subsequently reclassified to the Statement of Profit and Loss. Dividend income on the investments in equity instruments are
recognised in the Statement of Profit and Loss.
Derecognition
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers
the contractual rights to receive the cash flows from the asset.
Impairment of Financial Asset
Expected credit losses are recognised for all financial assets subsequent to initial recognition other than financial assets in FVTPL
category.
Expected credit losses is the weighted average of difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest
rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider:
• All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.
• Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which requires measurement of loss
allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that
result from all possible default events over the expected life of a financial instrument.
For financial assets other than trade receivables, as per Ind AS 109, the Company recognises 12 month expected credit losses for all
originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since
its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset
increases significantly since its initial recognition. The Company assumes that the credit risk on a financial asset has not increased
significantly since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.
Financial Liabilities and Equity Instruments
Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.
Financial Liabilities
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial
liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as FVTPL. In case of trade
payables, they are initially recognised at fair value and subsequently, these liabilities are held at amortised cost, using the effective
interest method.
All financial liabilities are subsequently measured at amortised cost using the effective interest method. Financial liabilities carried
at FVTPL are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss. Interest expense are
included in the 'Finance costs' line item.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense
over the relevant period. The EIR is the rate that exactly discounts estimated future cash payments (including all fees and points paid
or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the
expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
Derecognition of Financial Liabilities
The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled or have
expired.
Derivative Financial Instruments
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently re¬
measured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in Statement of Profit and Loss
immediately. The Company has not designated any derivative instruments as a hedging instrument.
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