MATERIAL ACCOUNTING POLICIES:

A. Basis of Preparation:

The financial statements of the Company comprising of Balance Sheet, Statement of Profit and Loss, Statement
of changes in Equity and Cash Flow Statement together with the notes have been prepared in accordance with
Indian Accounting Standards notified under the Companies (Indian Accounting Standards) Rules, 2015 (“Ind AS”) as
amended.

These financial statements have been prepared and presented under the historical cost convention, on the accrual
basis of accounting except for certain financial assets and liabilities that are measured at fair values at the end of
each reporting period, as stated in the accounting policies stated out below.

B. Use of Estimates:

The preparation of financial statements in conformity with generally accepted principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent liabilities at the date of the financial statements and the results of operations during the reporting
period end. Although these estimates are based upon management's best knowledge of current events and
actions, actual results could differ from these estimates.

C. Revenue Recognition:

a) Revenue from sale of goods is recognised when the satisfaction of a performance obligation is measured at
the amount of transaction price (net of variable consideration) allocated to that performance obligation. The
transaction price of goods sold and services rendered is net of variable consideration on account of various
discounts and schemes offered by the Company as part of the contract.

i. Sale of Goods: Revenue from sale of goods is recognized at the point in time when control of the asset is
transferred to the customer. The Company considers whether there are other promises in the contract
that are separate performance obligations to which a portion of the transaction price needs to be
allocated. In determining the transaction price for the sale of goods, the Company considers the effects
of variable consideration, the existence of significant financing components, non-cash consideration, and
consideration payable to the customer (if any).

ii. Sale of services with respect to fixed price contracts is recognized upon transfer of control of promised
services (“performance obligations”) to customers in an amount that reflects the consideration the
Company has received or expects to receive in exchange for these services (“transaction price”). Revenue
on time-and-material and unit of work-based contracts are recognized as the related services are
performed. When there is uncertainty as to collectability, revenue recognition is postponed until such
uncertainty is resolved. Provisions for estimated losses, if any, on contracts which are in progress at the
year-end are recorded in the period in which such losses become probable based on the expected
estimates at the reporting period.

b) Interest income from financial assets is recognised when it is probable that the economic benefits will flow
to the Company and the amount of income can be measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial asset to that
asset's net carrying amount on initial recognition.

c) Dividend income is recognized in profit or loss only when the right to receive the payment is established, it is
probable that the economic benefits associated with the dividend will flow to the Company, and the amount
of the dividend can be measured reliably & interest receivable from government on tax refunds are accounted
as and when received.

d) Rental income from operating lease is recognised as per agreement over the term of the relevant lease period

e) Terms of the contract with customers do not meet the criteria to recognise revenue over a period of time with
respect to development of land. Revenue is recognized at point in time with respect to contracts for sale of
residential and commercial units as and when the control is passed on to the customers which is linked to the
application and receipt of occupancy certificate.

D. Property, Plant and Equipment

i) Property, plant and equipment are shown at historical cost inclusive of incidental expenses less accumulated
depreciation.

ii) Depreciation on Property, plant and equipment is calculated on a straight- line basis over the estimated useful
lives of the assets as follows:

iii) Depreciation on Property, plant and equipment are added or sold during the year, is provided on pro-rata
basis with reference to the date of addition/deletion.

E. Impairment of assets

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment
based on internal / external factors. An asset is impaired when the carrying amount of the asset exceeds the
recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is
identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been
change in the estimate of the recoverable amount.

F. Foreign Exchange Transactions

Foreign Currency transactions are accounted for at the exchange rates prevailing at the time of recognition of
income/expenditure. Foreign currency monetary items are reported using the closing rates. Exchange difference
arising on reporting them at closing rate i.e. at the rate different from those at which they were initially recorded are
recognized as income or expenses as the case may be. Exchange differences arising on settlement or translation
of monetary items are recognised in profit or loss. Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

G. Investment Property

Investment Properties are measured using the cost model. Investment properties are measured and reports at
cost, less accumulated depreciation and accumulated impairment losses.

The land value component is considered to be 65% of the property value and not depreciated. Balance 35% is
considered as construction cost and depreciated over a period of 60 years on straight-line basis.

An investment property is derecognised 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 derecognition
of property is recognised in the Statement of Profit and Loss in the same period.

H. Employee Benefits

a) Defined Contribution Plan: Contributions to defined contribution schemes such as provident fund, employees'
state insurance, labour welfare fund are charged as an expense based on the amount of contribution required
to be made as and when services are rendered by the employees. Company's provident fund contribution,
in respect of certain employees, is made to a government administered fund and charged as an expense to
the Statement of Profit and Loss. The above benefits are classified as Defined Contribution Schemes as the
Company has no further obligations beyond the monthly contributions.

b) Defined Benefit Plan: The Company provides for gratuity which is a defined benefit plan the liabilities of which
is determined based on valuations, as at the balance sheet date, made by an independent actuary using
the projected unit credit method. Re-measurement, comprising of actuarial gains and losses, in respect of
gratuity are recognised in the OCI, in the period in which they occur and is not eligible to be reclassified to the
Statement of Profit and Loss in subsequent periods. Past service cost is recognised in the Statement of Profit
and Loss in the year of plan amendment or curtailment. The classification of the Company's obligation into
current and non-current is as per the actuarial valuation report.

c) Leave entitlement: Leave encashment payments are accounted for on accrual basis and is treated as short¬
term employee benefit.

d) Short-term benefits: Short-term employee benefits such as salaries, wages, performance incentives etc. are
recognised as expenses at the undiscounted amounts in the Statement of Profit and Loss of the period in
which the related service is rendered. Expenses on non-accumulating compensated absences is recognised
in the period in which the absences occur.

I. Segment Reporting

Operating segments are defined as components of an enterprise for which discrete financial information is
available that is evaluated regularly by the chief operating decision-making body, in deciding how to allocate
resources and assessing performance.

The reporting of segment information is the same as provided to the management for the purpose of the
performance assessment and resource allocation to the segments.

Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments
on the basis of their relationship to the operating activities of the segment. Inter-segments revenue is accounted
on the basis of transactions which are primarily determine based on market/fare value factors. Revenue, expenses,
assets and liabilities which relates to the Company as a whole and are not allocable to segments on a reasonable
basis have been included under “unallocated revenues/expenses/assets/liabilities”.

J. Inventories

Stock of Goods, raw material, packing material and under construction property are measured at lower of cost or
net realizable value.

K. Financial instruments

i) Financial Assets

a. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value
through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial
assets are recognised using trade date accounting.

b. Subsequent Measurement

1. Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is
to hold the asset in order to collect contractual cash flows and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding.

2. Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved
by both collecting contractual cash flows and selling financial assets and the contractual terms of
the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

3. Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

c. Investment in subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in subsidiaries, associates and joint venture at cost.

d. Other Equity Investments

The Company subsequently measures all equity investments at fair value. There are two measurement
categories into which the Company classifies its equity instruments:

> Investments in equity instruments at FVTPL: Investments in equity instruments are classified as at
FVTPL, unless the Company irrevocable elects on initial recognition to present subsequent changes in
fair value in other comprehensive income for equity instruments which are not held for trading.

> Investments in equity instruments at FVTOCI: On initial recognition, the Company can make an
irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes
in fair value in other comprehensive income. This election is not permitted if equity investment is
held for trading. These elected investments are initially measured at fair value plus transaction costs.
Subsequently, they are measured at fair value with gains and losses arising from changes in fair value
recognised in other comprehensive income and accumulated in the reserve for 'equity instruments
through other comprehensive income'. The cumulative gain or loss is not reclassified to Statement of
Profit and Loss on disposal of the investments.

e. Impairment of financial assets

In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

> The 12-month expected credit losses (expected credit losses that result from those default events on
the financial instrument that are possible within 12 months after the reporting date); or

> Full lifetime expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument)

For trade receivables Company applies 'simplified approach' which requires expected lifetime losses to
be recognised from initial recognition of the receivables. The Company uses historical default rates to
determine impairment loss on the portfolio of trade receivables. At every reporting date these historical
default rates are reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

f. Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for de-recognition under
Ind AS 109. A financial liability (or a part of a financial liability) is de-recognized from the Company's
Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

ii) Financial Liabilities

a) Initial Recognition and Measurement

All Financial Liabilities are recognized at fair value and in case of borrowings, net of directly attributable
cost, Fee of recurring nature are directly recognized in the Statement of Profit and Loss as finance cost.

b) Subsequent measurement

For trade and other payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.

L. 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.

Company as a lessee

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

i) the contract involves the use of an identified asset

ii) the Company has substantially all of the economic benefits from use of the asset through the period of the
lease and

iii) the Company has the right to direct the use of the asset

The Company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. For these short-term and low value leases, the Company recognizes
the lease payments as an operating expense on a straight-line basis over the term of the lease. The Company
recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the
underlying assets as below: -

i) Right-of-use assets

The Company recognises 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 recognised, 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 shorter of the lease term and the estimated
useful lives of the underlying assets (i.e. 30 and 60 years).

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 recognises 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 recognised 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 (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 that are
considered to be low value. Lease payments on short-term leases and leases of low-value assets are
recognised as expense on a straight-line basis over the lease term.

“Lease liability” and “Right-of-Use” asset are separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.

iv) Company as Lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to
ownership of an asset is classified as operating leases. Rental income arising is accounted for on
a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the leased asset and recognized over the lease term
on the same basis as rental income. Contingent rents are recognized as revenue in the period in which
they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership
transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded
as receivables at the Company's net investment in the leases. Finance lease income is allocated to
accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding
in respect of the lease.

M. Borrowing Costs

(a) Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying asset are
capitalized as a part of the cost of such asset till such time the asset is ready for its untended use or sale. A
qualifying asset is an asset that necessarily requires a substantial period of time (generally over twelve months) to
get ready for its intended use or sale.

(b) All other borrowing costs are recognized as expense in the period in which they are incurred.

N. Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and
their realisation in cash or cash equivalents, the Company has determined its operating cycle as twelve months for
the purpose of classification of its assets and liabilities as current and non-current.

O. Taxation

Income tax expense comprises current and deferred tax. It is recognised in statement of profit and loss except to
the extent that it relates to items recognised directly in equity or in OCI.

Current Tax

Current tax is measured at the amount of tax expected to be payable on the taxable income for the year as
determined in accordance with the provisions of the Income Tax Act, 1961. Current tax assets and current tax
liabilities are off set when there is a legally enforceable right to set off the recognized amounts and there is an
intention to settle the asset and the liability on a net basis.

Deferred Tax

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using tax
rates and laws that have been substantively enacted as of the balance sheet date.

P. Earnings per share

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