3.1 Use of Significant Judgements, Critical Accounting Estimates and Assumptions

The preparation of the standalone financial statements requires management to make judgements, estimates and assumptions that
affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures, as well as the disclosure of
contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment
to the carrying amount of assets or liabilities affected in future periods.

(a) Impairment of financial assets:

The provision for impairment allowance (expected credit loss) involves estimating the probability of default and loss given
default based on the Company’s own experience and forward looking estimation. The Company also considers the Reserve
Bank of India (RBI) Income Recognition, Asset Classification and Provisioning (IRACP) norms applicable to the Middle Layer
Non-Deposit taking NBFC.

(b) Estimation of provisions and contingences:

Provisions and contingencies are recognized when they become probable and when there will be a future outflow of funds
resulting from past operations or events and the outflow of resources can be reliably estimated. The timing of recognition and
quantification of the provision and liability requires the application of judgement to existing facts and circumstances, which
are subject to change. The Company takes into account a number of factors including legal advice, the stage of the matter and
historical evidence from similar incidents. Significant judgment is required to conclude on these estimates.

(c) Treatment of Security Deposit received for license fees and other services:

The Company has assessed the applicability of “Financial Instruments” Ind-AS 32 on the Security Deposit received towards
license fees and other related services and has considered the substance of the transactions, terms of the agreements executed
and the historical experience to consider whether the criteria laid down in Ind-AS 32 are met.

These security deposits are primarily intended to secure the licensee’s obligations under the agreement and have no bearing on the
license fees and other services charged. Further, there is no contractual obligation to deliver cash or any other financial asset to the
Licensee. The deposit would be adjusted against the outstanding dues, if any or can be recalled by the Licensee with a termination
notice of 3-6 months and therefore the Company has considered the transaction value as fair value for the security deposit.

(d) Taxes:

The Company’s tax jurisdiction is in India. Significant judgements are involved in determining the provision for income taxes,
including amount expected to be paid/recovered for uncertain tax positions. Significant judgement is involved in determining the
taxable income. Further, significant judgement is exercised to ascertain amount of deferred tax asset (DTA) that could be recognised
based on the probability that future taxable profits will be available against which DTA can be utilized and amount of temporary
difference in which DTA cannot be recognised on want of probable taxable profits.

(e) 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 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.

(f) Business model assessment:

Classification and measurement of financial assets depends on the results of the Solely Payments of Principal and Interest (“SPPI”)
and the business model test. The Company determines the business model at a level that reflects how groups of financial assets are
managed together to achieve a particular business objective. This assessment includes judgement reflecting all relevant evidence
including how the performance of the assets is evaluated and their performance measured, the risks that affect the performance
of the assets and how these are managed and how the managers of the assets are compensated. The Company monitors financial
assets measured at amortised cost or fair value through other comprehensive income that are derecognised prior to their maturity
to understand the reason for their disposal and whether the reasons are consistent with the objective of the business for which the
asset was held. Monitoring is part of the Company’s continuous assessment of whether the business model for which the remaining
financial assets are held continues to be appropriate and if it is not appropriate whether there has been a change in business model
and so a prospective change to the classification of those assets.

(g) Fair value of financial instruments:

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit
price) regardless of whether that price is directly observable or estimated using another valuation technique. When the fair values
of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined
using a variety of valuation techniques that include the use of valuation models. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, estimation is required in establishing fair values. Judgements and estimates
include considerations of liquidity and model inputs related to items such as credit risk (both own and counterparty), funding value
adjustments, correlation and volatility.

(h) Project estimates:

The Company being in a real estate development, prepares budgets in respect of each project to compute project profitability. The
major components of project estimate are ‘budgeted costs to complete the project’ and ‘budgeted revenue from the project. While
estimating these components various assumptions are considered by the management such as (i) Work will be executed in the manner
expected so that the project is completed timely (ii) consumption norms is consistent with the estimates made (iii) Estimates for
contingencies and (iv) price escalations etc. Due to such complexities involved in the budgeting process, contract estimates are highly
sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

(i) Impairment of Non Financial Assets:

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or
when annual impairment testing for an asset is required, the Company estimates the assets recoverable amount. An asset’s recoverable
amount is the higher of an asset’s fair value less costs of disposal and its value in use. When the carrying amount of an asset exceeds
its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. 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 assessment
of the time value of money and the risk specific to the asset. In determining fair value less cost of disposal, recent market transactions
are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are
corroborated by valuation multiples or other available fair value indicators.

3.2 Revenue Recognition

(a) Interest income (Effective interest rate method):

Interest income on a financial asset at amortised cost is recognised on a time proportion basis taking into account the amount
outstanding and the Effective Interest Rate (‘EIR’). The EIR is the rate that exactly discounts estimated future cash flows of the
financial asset through the expected life of the financial asset or, where appropriate, a shorter period, to the net carrying amount of
the financial instrument.

The Company calculates interest income by applying the EIR to the gross carrying amount of financial assets other than credit-
impaired assets. In case of credit-impaired financial assets (regarded as Stage 3), the Company recognises interest income on the
amortised cost net of impairment loss of the financial asset at EIR. If the financial asset is no longer credit-impaired, the Company
reverts to calculating interest income on a gross basis.

Delayed payment interest (penal interest and the like) levied on customers for delay in repayments or non-payment of contractual
cashflows is recognised on realisation.

Interest on financial assets subsequently measured at fair value through profit or loss (FVTPL) is recognised at the contractual rate
of interest.

(b) Dividend income:

Dividend income (including from FVTOCI investments) is recognised when the Company’s 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.

(c) Fees and service income:

Fees and service income are recognised at point in time in the Statement of Profit and Loss on an accrual basis when the right to
receive the same is established.

(d) License fees and related income:

License fees and related income is recognised on straight-line basis over the term of the leave and license agreements except where
the rentals are structured to increase in line with expected general inflation.

(e) Revenue from real estate projects:

The Company recognises revenue, on execution of agreement and when control of the goods or services are transferred to the
customer, at an amount that reflects the consideration (i.e. the transaction price) to which the Company is expected to be entitled
in exchange for those goods or services excluding any amount received on behalf of third party (such as indirect taxes). An asset
created by the Company’s performance does not have an alternate use and as per the terms of the contract, the Company has an
enforceable right to payment for performance completed till date. Hence, the Company transfers control of a good or service over
time and, therefore, satisfies a performance obligation and recognises revenue over time. The Company recognises revenue at the
transaction price (net of transaction costs) which is determined on the basis of agreement entered into with the customer. The
Company recognises revenue for performance obligation satisfied over time only if it can reasonably measure its progress towards
complete satisfaction of the performance obligation. The Company would not be able to reasonably measure its progress towards
complete satisfaction of a performance obligation if it lacks reliable information that would be required to apply an appropriate
method of measuring progress. In those circumstances, the Company recognises revenue only to the extent of cost incurred until it
can reasonably measure outcome of the performance obligation.

The Company uses cost based input method for measuring progress for performance obligation satisfied over time. Under this method,
the Company recognises revenue in proportion to the actual project cost incurred as against the total estimated project cost.

Revenue is recognized net of discounts, rebates, credits, price concessions, incentives, etc. 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.

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 3.5 Financial instruments
- initial recognition and subsequent measurement.

Projects executed through joint development agreements/arrangements wherein the land owner provides land and the Company
undertakes to jointly develop such land and in lieu of land owner providing land, the Company has agreed to transfer certain
percentage of constructed area or certain percentage of the revenue proceeds. The revenue from such agreements/arrangements is
accounted on completion of the project milestone.

(f) Contract balances:

(i) Contract asset:

Contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company
performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a
contract asset is recognised for the earned consideration that is conditional.

(ii) Contract liability/advance from customers:

Contract liability/advance from customers is the obligation to transfer goods or services to a customer for which the Company
has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before
the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the
payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the
contract.

3.3 Employee Benefits

(a) Short-term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits
and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted
amount of short-term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after
deducting any amount already paid.

(b) Post-employment benefits:

(i) Defined contribution plans

Defined contribution are the employees’ provident fund scheme, labour welfare fund and employee state insurance scheme for
all applicable employees.

Recognition and measurement of defined contribution plans:

The Company recognizes contribution payable to a defined contribution plan as an expense in the Statement of Profit and
Loss when the employees render services to the Company during the reporting period. If the contributions payable for services
received from employees before the reporting date exceeds the contributions already paid, the deficit payable 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 reporting date, the excess is recognized as an asset to the extent that the prepayment will lead to,
for example, a reduction in future payments or a cash refund.

(ii) Defined benefits plans

Gratuity scheme:

Gratuity is a post employment benefit and is a defined benefit plan. The cost of providing defined benefits is determined using
the Projected Unit Credit method with actuarial valuations being carried out at each reporting date. The defined benefit
obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as reduced by the
fair value of plan assets, if any. Any defined benefit asset (negative defined benefit obligations resulting from this calculation)
is recognized representing the present value of available refunds and reductions in future contributions to the plan.

Recognition and measurement of defined benefit plans

All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit liability
/ (asset) are recognized in the Statement of Profit and Loss. Re-measurements of the net defined benefit liability / (asset)
comprising actuarial gains and losses and the return on the plan assets (excluding amounts included in net interest on the net
defined benefit liability/asset), are recognized in Other Comprehensive Income. Such re-measurements are not reclassified to
the Statement of Profit and Loss in the subsequent periods.

3.4 Borrowing Cost

Borrowing costs that are directly attributable to the acquisition/construction of qualifying assets are capitalised as part of their costs.

Borrowing costs are considered as part of the asset cost when the activities that are necessary to prepare the assets for their intended
use or sale are in progress.

Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds. Other
borrowing costs are recognised as an expense, in the period in which they are incurred.

3.5 Financial Instruments
Recognition of financial instruments:

Financial assets and liabilities, with the exception of loans, debt securities, deposits and borrowings are initially recognised on the
trade date, i.e., the date that the Company becomes a party to the contractual provisions of the instrument. This includes regular way
trades: purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation or
convention in the market place. Loans are recognised when funds are transferred to the customers’ account. The Company recognises
debt securities, deposits and borrowings when funds are received by the Company.

Financial assets:

Initial recognition:

All financial assets are recognised initially at fair value adjusted for transaction costs and income that are directly attributable to the
acquisition of the financial asset except for following:

• Investment in subsidiaries and associates which are recorded at cost as permissible under Ind AS 27 ‘Separate Financial
Statements’;

• Financial assets measured at FVTPL wherein transaction cost is charged to the Statement of Profit and Loss; and

• Trade receivables that do not contain a significant financing component (as defined in Ind AS 115) which are recorded at

transaction price.

Subsequent measurement:

For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:

i. The Company’s business model for managing the financial asset; and

ii. The contractual cash flow characteristics of the financial asset.

Based on the above criteria, the Company classifies its financial assets into the following categories:

(a) Financial assets measured at amortised cost;

(b) Financial assets measured at fair value through other comprehensive income (FVTOCI); and

(c) Financial assets measured at fair value through profit and loss (FVTPL).

(a) Financial assets measured at amortised cost:

A Financial asset is measured at the amortised cost if both the following conditions are met:

(i) The Company’s business model objective for managing the financial asset is to hold financial assets in order to
collect contractual cash flows; and

(ii) 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.

This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company. Such
financial assets are subsequently measured at amortised cost using the effective interest method. Under the effective
interest method, the future cash receipts are exactly discounted to the initial recognition value using the effective
interest rate. The cumulative amortisation using the effective interest method of the difference between the initial
recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments, if
any) of the financial asset over the relevant period of the financial asset to arrive at the amortised cost at each reporting
date. The corresponding effect of the amortisation under effective interest method is recognized as interest income over
the relevant period of the financial asset. The same is included under other income in the Statement of Profit and Loss.
The amortised cost of a financial asset is also adjusted for loss allowance, if any.

(b) Financial assets measured at FVTOCI:

A financial asset is measured at FVTOCI if both of the following conditions are met:

(i) The Company’s business model objective for managing the financial asset is achieved both by collecting
contractual cash flows and selling the financial assets; and

(ii) 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.

This category applies to certain investments in debt and equity instruments. Such financial assets are subsequently
measured at fair value at each reporting date. Fair value changes are recognized in the Statement of profit and loss
under ‘Other Comprehensive Income (OCI)’. However, the Company recognizes interest income and impairment losses
and its reversals in the Statement of Profit and Loss. On de-recognition of such financial assets, cumulative gain or
loss previously recognized in OCI is reclassified from equity to the Statement of Profit and Loss, except for instruments
which the Company has irrevocably elected to be classified as equity through OCI at initial recognition, when such
instruments meet the definition of Equity under Ind AS 32 Financial Instruments and they are not held for trading. The
Company has made such election on an instrument by instrument basis.

Gains and losses on these equity instruments are never reclassified to profit and loss. Dividends are recognised in the
statement of profit and loss as dividend income when the right of the payment has been established, except when the
Company benefits from such proceeds as a recovery of part of the cost of the instrument, in which case, such gains are
recorded in OCI.

(c) Financial assets measured at FVTPL:

A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI as explained above. This
is a residual category applied to all other investments of the Company excluding investments in subsidiary and associate
companies. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are
recognized in the Statement of Profit and Loss.

Financial assets or financial liabilities held for trading:

The Company classifies financial assets as held for trading when they have been purchased or issued primarily for
short-term profit making through trading activities or form part of a portfolio of financial instruments that are managed
together, for which there is evidence of a recent pattern of short-term profit taking. Held-for-trading assets and liabilities
are recorded and measured in the balance sheet at fair value. Changes in fair value are recognised in net gain on fair
value changes.

Interest and dividend income or expense is recorded in net gain on fair value changes according to the terms of the
contract, or when the right to payment has been established. Included in this classification are debt securities and
equities that have been acquired principally for the purpose of selling or repurchasing in the near term.

De-recognition of financial assets:

(a) Financial asset:

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized
(i.e. removed from the Company’s balance sheet) when any of the following occurs:

i. The contractual rights to cash flows from the financial asset expires;

ii. The Company transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred
all the risks and rewards of ownership of the financial asset.

iii. The Company retains the contractual rights to receive cash flows but assumes a contractual obligation to pay the
cash flows without material delay to one or more recipients under a ‘pass-through’ arrangement (thereby substantially
transferring all the risks and rewards of ownership of the financial asset);

iv. The Company neither transfers nor retains substantially all risk and rewards of ownership and does not retain control
over the financial asset.

In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial asset, but
retains control of the financial asset, the Company continues to recognize such financial asset to the extent of its continuing
involvement in the financial asset. In that case, the Company also recognizes an associated liability. The financial asset and the
associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

On de'recognition of a financial asset, (except as mentioned in (ii) above for financial assets measured at FVTOCI), the
difference between the carrying amount and the consideration received is recognized in the Statement of Profit and Loss.

Impairment of financial assets:

The Company records allowance for expected credit losses for all amortised cost financial assets, in this section referred to as ‘financial
instruments’. Equity instruments are not subject to impairment under Ind AS 109, Financial Instruments.

Expected Credit Losses are measured through a loss allowance at an amount equal to:

• The 12-months 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).

The Company recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to
their carrying amount through a loss allowance account.

A) Trade receivables (“Receivables”):

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on Receivables. The application
of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss
allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The Company uses a provision
matrix to determine impairment loss allowance on portfolio of its receivables. The provision matrix is based on its historically
observed default rates over the expected life of the receivables.

B) ECL on Undrawn loan commitments:

When estimating ECL for undrawn loan commitments, a credit conversion factor as stated in RBI directions is applied for
expected drawdown. The Company discloses ECL allowance on undrawn loan commitments under the head Provisions under
non-financial liabilities.

C) Other financial assets:

Overview of the ECL principles:

The Company follows a staging methodology for ECL computation. Financial assets where no significant increase in credit risk
has been observed since inception are classified in ‘stage 1’ for which a 12 month ECL is recognised. Financial assets which
have significant increase in credit risk since inception are considered to be in ‘stage 2’ and those which are in default or for
which there is an objective evidence of impairment are considered to be in ‘stage 3’. Life time ECL is recognised for stage 2 and
stage 3 financial assets.

Stage 1 (12-month ECL) is provided basis the default events that are likely to occur in the next 12 months from the reporting date.
Stage 2 and stage 3 (lifetime ECL) is provided for basis all possible default events likely to occur during the life of the financial
instrument.

Financial assets are written off in full, when there is no realistic prospect of recovery. The Company may apply enforcement activities
to certain qualifying financial assets written off.

Treatment of the different stages of financial assets and the methodology of determination of ECL:

(a) Credit impaired (stage 3):

The Company recognises a financial asset to be credit impaired and in stage 3 by considering relevant objective evidence,
primarily whether:

• Contractual payments of principal and/or interest are past due for more than 90 days;

• The loan is otherwise considered to be in default.

Loan accounts where principal and/or interest are past due for more than 90 days along with all other loan accounts of that
customer, continue to be classified as stage 3, till overdue across all loan accounts are cleared.

Restructuring would normally involve modification of terms of the loans, which generally includes repayment terms
renegotiation as compared to the original contracted terms due to significant credit distress of the borrower are classified as
credit impaired. The renegotiation or modification does not result in derecognition of financial asset. Such loans are upgraded
to stage 1 if-

• The loan which was restructured is not in default for a period till repayment of 10% of principal outstanding or 12 months,
whichever is later; and

• Other loans of such customer are not in default during this period.

Loans accounts where one time compromise settlement is offered to the customer to close their loan accounts with certain
relaxation and waiver of charges/interest/principal are classified as stage 3.

90 Days Past Due is considered as default for classifying a financial instrument as credit impaired. If an event (for example,
any natural calamity) warrants a provision higher than as mandated under ECL methodology, the Company may classify the
financial asset in Stage 3 accordingly.

(b) Significant increase in credit risk (stage 2)

The Company considers loan accounts which are overdue for more than 30 days but up to 90 days as on the reporting date as
an indication of significant increase in credit risk.

The measurement of risk of defaults under stage 2 is computed on homogenous portfolios, generally by nature of loans and
borrower profiles. The default risk is assessed using PD (probability of default) derived from past behavioural trends of default
across the identified homogenous portfolios. These past trends factor in the customer behavioural trends. The assessed PDs are
then aligned considering future economic conditions that are determined to have a bearing on ECL.

(c) Without significant increase in credit risk since initial recognition (stage 1):

All exposures where there has not been a significant increase in credit risk since initial recognition or that has low credit risk
at the reporting date and that are not credit impaired upon origination are classied under this stage. The Company classifies all
standard advances and advances upto 30 days default under this category. Stage 1 loans also include facilities where the credit
risk has improved and the loan has been reclassied from Stage 2 or Stage 3.

(d) Measurement of ECL:

Definition of default:

The Company considers a financial instrument defaulted and therefore stage 3 (credit-impaired) for ECL calculations in all
cases when the borrower becomes 90 days past due on its contractual payments.

As a part of a qualitative assessment of whether a customer is in default, the Company also considers a variety of instances that
may indicate unlikeliness to pay. When such events occur, the Company carefully considers whether the event should result
in treating the customer as defaulted and therefore assessed as stage 3 for ECL calculations or whether stage 2 is appropriate.
Such events include but not limited to:

- The borrower requesting emergency funding from the Company.

- A material decrease in the underlying collateral value where the recovery of the loan is expected from the sale of the
collateral.

- The debtor (or any legal entity within the debtor’s Company) filing for bankruptcy application/ protection.

- All the facilities of a borrower are treated as stage 3 when one of his facility becomes 90 days past due i.e. credit impaired.

The Company has calculated ECL using three main components: a probability of default (PD), a loss given default (LGD) and
the exposure at default (EAD). ECL is calculated by multiplying the PD, LGD and EAD.

• PD is an estimate of the likelihood of default over a given time horizon. PD estimation process is done based on historical
internal data available with the Company. While arriving at the PD, the Company also ensures that the factors that affects the
macro economic trends are considered to a reasonable extent, wherever necessary. The Company calculates the 12 month PD
by taking into account the past historical trends of the portfolio and its credit performance. In case of assets where there is a
significant increase in credit risk, lifetime PD has been applied. For credit impaired assets, a PD of 100% has been applied .

• EAD represents the expected balance at default, taking into account the repayment of principal and interest from the Balance
Sheet date to the date of default together with any expected drawdowns of committed facilities.

• LGD represents expected losses on the EAD in the event of default based on historical data.

Where there is no historical data available for identified group/ portfolio it applies minimum rate as prescribed by RBI.

The Company recalibrates above components of its ECL model on a annual basis by using the available incremental and recent
information, except where this information does not represent the future outcome.

Financial liabilities:

Initial measurement:

The Company recognises all financial liabilities initially at fair value adjusted for transaction costs that are directly attributable to
the issue of financial liabilities except in the case of financial liabilities recorded at FVTPL where the transaction costs are charged
to profit or loss. Generally, the transaction price is treated as fair value unless there are circumstances which prove to the contrary in
which case, the difference, if material, is charged to profit or loss.

Subsequent measurement:

The Company subsequently measures all financial liabilities at amortised cost using the EIR method.

Derecognition:

The Company derecognises a financial liability when the obligation under the liability is discharged, cancelled or expired through
repayments or waivers.

Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable
legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the
liabilities simultaneously.

Investments in Subsidiaries, Associates and JV:

The Company recognises investments in subsidiaries, associates and JV at cost and are not adjusted to fair value at the end of each
reporting period as allowed by Ind AS 27 ‘Separate Financial Statement’.

3.6 Fair Value

The Company measures its financial instruments at fair value in accordance with the accounting policies mentioned above. 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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer
the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized within the
fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value.

- Level 1 (unadjusted) - Those where the inputs used in the valuation are unadjusted quoted prices from active markets for
identical assets or liabilities that the Company has access to at the measurement date. The Company considers markets as
active only if there are sufficient trading activities with regards to the volume and liquidity of the identical assets or liabilities
and when there are binding and exercisable price quotes available on the balance sheet date.

- Level 2 - Those where the inputs that are used for valuation and are significant, are derived from directly or indirectly
observable market data available over the entire period of the instrument’s life. Such inputs include quoted prices for similar
assets or liabilities in active markets, quoted prices for identical instruments in inactive markets and observable inputs other
than quoted prices such as interest rates and yield curves, implied volatilities, and credit spreads. In addition, adjustments may
be required for the condition or location of the asset or the extent to which it relates to items that are comparable to the valued
instrument. However, if such adjustments are based on unobservable inputs which are significant to the entire measurement,
the Company will classify the instruments as Level 3.

- Level 3 - Those that include one or more unobservable input that is significant to the measurement as whole.

For assets and liabilities that are recognized in the standalone financial statements at fair value on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting
period and discloses the same.

3.7 Income Taxes

Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and
deferred tax.

(a) Current tax

Current tax comprises amount of tax payable in respect of the taxable income or loss for the year determined in accordance with
Income Tax Act, 1961 and any adjustment to the tax payable or receivable in respect of previous years. The Company’s current
tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Significant
judgment are involved in determining the provision for income taxes including judgment on whether tax positions are probable of
being sustained in tax assessments. A tax assessment can involve complex issues, which can only be resolved over extended time
periods. Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it
is intended to realise the asset and settle the liability on a net basis or simultaneously.

Current tax is recognised in Statement of Profit and Loss, except when they relate to items that are recognised in other comprehensive
income or directly in equity, in which case, the current tax is also recognised in other comprehensive income or directly in equity
respectively. The management periodically evaluates positions taken in the tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and establishes provisions where appropriate.

(b) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the standalone financial
statements and the corresponding tax bases used in the computation of taxable profit under Income Tax Act, 1961.

Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in case of temporary differences that
arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable
profit nor the accounting profit, deferred tax liabilities are not recognized. Also, for temporary differences if any that may arise from
initial recognition of goodwill, deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for all deductible temporary differences to the extent it is probable that taxable profits
will be available against which those deductible temporary difference can be utilized. In case of temporary differences that arise from
initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor
the accounting profit, deferred tax assets are not recognized. The carrying amount of deferred tax assets is reviewed at the end of
each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow
the benefits of part or all of such deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the balance sheet
date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or
settled.

Deferred tax relating to items recognised outside profit and loss is recognised outside profit and loss (either in other comprehensive
income or in equity), Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Presentation of current and deferred tax:

Current and deferred tax are recognized as income or an expense in the Statement of Profit and Loss, except when they relate to items
that are recognized in Other Comprehensive Income, in which case, the current and deferred tax income/expense are recognized in
Other Comprehensive Income. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable
right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously. In case of deferred tax assets and deferred tax liabilities, the same are offset if the Company has a legally enforceable
right to set off corresponding current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same tax authority on the Company.

3.8 Property, Plant and Equipment and Depreciation
Measurement at recognition:

An item of property, plant and equipment that qualifies as an asset is measured on initial recognition at cost. Following initial
recognition, items of property, plant and equipment are carried at its cost less accumulated depreciation and accumulated impairment
losses.

The cost of an item of property, plant and equipment comprises of its purchase price including import duties and other non-refundable
purchase taxes or levies, directly attributable cost of bringing the asset to its working condition for its intended use and the initial
estimate of decommissioning, restoration and similar liabilities, if any. Any trade discounts and rebates are deducted in arriving at the

purchase price. Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are met. Items such as spare
parts, stand-by equipment and servicing equipment that meet the definition of property, plant and equipment are capitalized at cost
and depreciated over their useful life. Subsequent expenditure related to an item of tangible asset are added to its gross value only if
it increases the future benefits of the existing asset, if it is probable that future economic benefit will flow to the Company from that
expenditure and cost can be measured reliably. Costs in nature of repairs and maintenance are recognized in the Statement of Profit
and Loss as and when incurred.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end
and adjusted prospectively, if appropriate.

Capital work in progress and Capital advances:

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances given towards
acquisition of property, plant and equipment outstanding at each Balance Sheet date are disclosed as Other Non-Financial Assets.

Depreciation, estimated useful lives and residual value:

Depreciation on each part of an item of property, plant and equipment is provided to the extent of depreciable amount on the Written
Down Value (WDV) method except in case of office premises where depreciation is provided on Straight Line Method (SLM)
based on the useful life of the asset as estimated by the management and is charged to the Statement of Profit and Loss as per the
requirement of Schedule II of the Companies Act, 2013. Leasehold improvements are amortised equitably over the lease period.

Derecognition:

The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits
are expected from its use or disposal. The gain or loss arising from the Derecognition of an item of property, plant and equipment is
measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognized in the Statement
of Profit and Loss when the item is derecognized.

3.9 Intangible Assets and Amortisation
Measurement at recognition:

Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets arising on acquisition of business are
measured at fair value as at date of acquisition. Internally generated intangibles including research cost are not capitalized and the
related expenditure is recognized in the Statement of Profit and Loss in the period in which the expenditure is incurred. Following
initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss, if any.

Amortisation:

Intangible Assets with finite lives are amortised on a written down value method over the estimated useful economic life. The
amortisation expense on intangible assets with finite lives is recognized in the Statement of Profit and Loss. The estimated useful life
of intangible assets is mentioned below:

Intangible Assets Useful life in years

Purchase cost and user license fees for computer software 5 years or period of license

The amortisation period and the amortisation method for Other Intangible Assets with a finite useful life are reviewed at each
reporting date.

Derecognition:

The carrying amount of an intangible asset is derecognized on disposal or when no future economic benefits are expected from its
use or disposal. The gain or loss arising from the Derecognition of an intangible asset is measured as the difference between the net
disposal proceeds and the carrying amount of the intangible asset and is recognized in the Statement of Profit and Loss when the asset
is derecognized.

3.10 Investment Property and Depreciation
Recognition and measurement:

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment
properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. Though the Company measures
investment property using cost based measurement, the fair value of investment property is disclosed in the notes. Fair values are
determined based on third party valuation or ready reckoner rates.

Depreciation:

Depreciation on Investment Property is provided using the Straight Line Method (SLM) based on the useful lives specified in
Schedule II to the Companies Act, 2013.

Derecognition:

Investment properties are derecognised either when they have been disposed off or when they are permanently withdrawn from their
use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying
amount of the asset is recognized in profit or loss in the period of derecognition.

3.11 Inventories

(i) Construction work in progress / realty work in progress:

The construction work in progress / realty work in progress is valued at lower of cost or net realisable value. Cost includes cost
of land, development rights, rates and taxes, construction costs, borrowing costs, other direct expenditure, allocated overheads
and other incidental expenses.

(ii) Construction materials and consumables:

The construction materials and consumables are valued at lower of cost or net realisable value. The construction materials and
consumables purchased for construction work issued to construction are treated as consumed.

(iii) Finished Stock:

Finished stock of completed projects and stock in trade of units is valued at lower of cost or net realisable value.

3.12 Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists,
or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent
of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset
is considered impaired and is written down to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

In assessing the 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. In determining fair value less costs
of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation
model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other
available fair value indicators.

When an impairment loss subsequently reverses, the carrying amount of the asset or a CGU 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 CGU in prior years. A reversal of an impairment loss is recognised
immediately in profit or loss.

3.13 Share Based Payment to Employees

The Company operates an equity settled share-based payment arrangement for employees of the Company, its Holding Company,
Subsidiary Companies, Associate Companies and Group Companies (including Fellow Subsidiaries). The Company determines the
fair value of the employee stock options on the grant date using the Black-Scholes model. The total cost of the share option is
accounted for on a straight-line basis over the vesting period of the grant. The cost attributable to the services rendered by the
employees of the Company is recognised as employee benefits expenses in the statement of profit and loss and that pertaining to
employees of Group Companies is recovered from Group Companies.

3.14 Treasury Shares

The Company has created an Employee Welfare Trust (“EWT”) for providing share-based payment to its employees. The Company
uses EWT as a vehicle for distributing shares to employees under the employee remuneration schemes. The EWT buys shares of the
Company from the market, for giving shares to employees. The shares held by EWT are treated as treasury shares.

Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is
recognised in Statement of Profit and Loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments. Any
difference between the carrying amount and the consideration, if reissued / sold, is recognised in other equity. Share options exercised
during the year are satisfied with treasury shares.

3.15 Lease Accounting

The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the
right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company
has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the
right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made
at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost
less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability.
The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or
useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of
the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that
rate cannot be readily determined, the Company uses incremental borrowing rate.

For short-term and low value leases, the Company recognizes the lease payments as an operating expense over the lease term.

3.16 Cash and Cash Equivalents

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances, demand
deposits, sweep- In Deposits with banks where the original maturity is three months or less and other short term highly liquid
investments.

3.17 Earnings Per Share

Basic earnings per share is computed by dividing the profit and loss after tax by the weighted average number of equity shares
outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares,
bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share is computed by dividing the profit or loss after tax as adjusted for dividend, interest and other charges to
expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of
equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have
been issued on the conversion of all dilutive potential equity shares including the treasury shares held by the Company to satisfy the
exercise of the share options by the employees.

3.18 Events after Reporting Date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period,
the impact of such events is adjusted within the standalone financial statements. Otherwise, events after the balance sheet date of
material size or nature are only disclosed.

3.19 Foreign Currency Transactions and Translation

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange
at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in Statement of
Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency
borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalised as cost of assets.

Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the
date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was measured. The gain or loss arising on translation of non-monetary items measured at fair value is
treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items
whose fair value gain or loss is recognised in Other Comprehensive Income or Statement of Profit and Loss are also recognised in
Other Comprehensive Income or Statement of Profit and Loss, respectively).

In case of an asset, expense or income where a non-monetary advance is paid/received, the date of transaction is the date on which
the advance was initially recognised. If there were multiple payments or receipts in advance, multiple dates of transactions are
determined for each payment or receipt of advance consideration.

3.20 Statement of Cash Flows

Cash flows are reported using indirect method as permitted under Ind AS 7, whereby profit before tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. Cash and cash equivalent
shown in the financial statements exclude items which are not available for general use as on reporting date.