NOTE 2. MATERIAL ACCOUNTING POLICIES FOLLOWED BY THE COMPANY
I. Basis of preparation of Financial Statements
(I) Compliance with Ind AS
Thesefinancialstatementshavebeenpreparedinaccordance withthe IndianAccountingStandards(hereinafter referredto as the 'Ind AS')
as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 ('Act') read with the Companies (Indian
AccountingStandards) Rules, 2015asamendedandotherrelevant provisionsoftheAct."
The accountingpoliciesare applied consistently toalltheperiodspresented inthefinancial statements.
(ii) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following:
1) certain financial assets and liabilities that are measured at fair value;
2) assetsheld forsale-measuredatlowerofcarryingamount orfair valuelesscostto sell;
3) definedbenefit plans -planassetsmeasuredatfairvalue.
(iii) Current and Non-current classification
All the assets and liabilities have been classified as current or non-current, wherever applicable, as per the operating cycle of the Company
as perthe guidance set out in Schedule III to the Act. Operating cycle for the business activities of the Company covers the duration of
the project/ contract including the defect liability period, wherever applicable, and extends upto the realisation of receivables (including
retention monies, (if any)) within the credit period normally applicable to the respective project.
(iv) Rounding of amounts
Allamountsdisclosedinthe financialstatementsand noteshave beenrounded offtothe nearestlakhs as pertherequirementofSchedule
III, unless otherwise stated.
II. Significant accounting judgments, estimates and assumptions
Thepreparation offinancial statementsinconformitywiththerecognitionand measurement principlesofIndASrequires management to make
judgments, estimates and assumptions that affect the reported balances of revenues, expenses, assets and liabilities and the accompanying
disclosures, and 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) Judgments
Classification of property
The Company determines whether a property is classified as investment property or inventory property. Investment property comprises
land and buildings that are not occupied substantially for use by, or in the operations of, the Company, nor for sale in the ordinary course
of business, but are held primarily to earn rental income and capital appreciation. These buildings are substantially rented to tenants and
not intended tobe sold in theordinarycourseof business. Inventory comprises property thatis heldfor sale in the ordinary course of
business. Principally, these are properties that the Company develops and intends to sell before or on completion of construction.
b) Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.
The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing
circumstancesand assumptions about future developments,however, maychangeduetomarket changesor circumstancesarising that
are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
i) Employee Benefit Plans
The Company'sobligation on account of gratuity and compensated absences is determined based on actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual developments in the future. These include the determination
of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature,
these liabilities are highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter
most subject to change is the discount rate. In determining the appropriate discount rate, the management considers the interest rates
of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. The mortality rate is based
on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future
salary increases and gratuity increases are based on expected future inflation rates.
ii) Estimation of net realisable value for inventory (including advance to land owner)
Inventories are stated at the lower of cost and net realisable value (NRV).
NRVfor completedproperty is assessed by reference to market conditions andpricesexistingatthe reporting date and is determined by
the Company, based on comparable transactions identified by the Company for properties in the same geographical market serving the
same real estate segment.
NRV in respect of inventory under construction / incomplete projects is assessed with reference to market prices at the reporting date
for similar completed property, less estimated costs to complete construction and an estimate of the time value of money to the date of
completion.
Withrespecttoadvancesgiventolandowners, the net recoverable value is basedonthepresentvalueoffuturecashflows, which depends
on the estimate of, among other things, the likelihood that a project will be completed, the expected date of completion, the discount rate
used andtheestimationofsaleprices and construction costs.
iii) Valuation of investment in/ loans to subsidiaries
The Company has performed valuation for its investments in equity of subsidiaries, associates and JVs for assessing whether there is any
impairment. When the fair value of investments in such entities cannot be measured based on quoted prices in active markets, their fair
value is measured using valuation techniques including the discounted cash flow model.
Similar assessment is carried out for exposure of the nature of loans and interestreceivable thereonas well asprojectadvances. 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 expected earnings in future years, liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported amounts of these investments, loans and advances.
iv) Income tax provisions are based on the Company's judgment of allowances/disallowances considering computation of income.
III. Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will accrue to the Company and the revenue can be reliably
measured and also when it is reasonably certain that the ultimate collection will be made and that there is buyers' commitment to make the
complete payment.
A. Revenue from sale of properties:
Revenue is recognized upon transfer of control of residential/commercial units to customers, of an amount that reflects the consideration
the Company expects to receive in exchange for those units. The Company shall determine the performance obligations associated with
the contract with customers at contract inception and also determine whether they satisfy the performance obligation over time or at a
point in time. In case of residential/commercial units, the Company satisfies the performance obligation and recognizes revenue at a point
in timei.e.,uponhandoverofthe residential/commercial units.
To estimatethe transaction priceinacontract, the Company adjusts the promisedamountofconsiderationfor the timevalue of money
if that contract contains a significant financing component. The Company when adjusting the promised amount of consideration for a
significant financing component is to recognize revenue at an amount that reflects the cash selling price of the transferred residential/
commercial unit.
B. Revenue from sale of land and development rights:
Revenue from sale of land and development rights is recognised upon transfer of all significant risks and rewards of ownership of such
realestate/property, asper thetermsofthecontracts entered into with buyers, whichgenerally coincideswiththe firming of the sales
contracts/ agreements. Revenue from sale of land and development rights is only recognised when transfer of legal title to the buyer is not
a conditionprecedentfortransferofsignificant risks and rewards of ownershiptothebuyer.
C. Revenue from Trading Materials:
Revenue from sale of trading material is recognised when significant risks and rewards associated with the sale of material is transferred to
thebuyer.
D. Revenue from project management services:
Service income is recognised on the basis of completion of a physical proportion of the contract work/ based upon the contracts/
agreements entered into by the Company with its customers.
E. Profit / Loss from partnership firms / association of persons:
Share of profit / loss from partnership firms / association of persons (AOP) is recognised on the basis of their audited/ management
reviewed accounts, which is considered as a part of other operating activity.
F. Income from leased premises:
Lease income from operating lease is recognised in the Statement of Profit and Loss on straight line basis after adjusting for escalation over
the lease term except where the lease incomes are structured to increase in line with expected general inflation.
G. Interest and dividend:
Interest income including income arising on other instruments is recognised on time proportion basis using the effective interest rate
method. Dividendincome isrecognized whenthe righttoreceive dividend is established.
H. Others:
Other revenues / incomes and costs / expenditure are accounted on accrual, as they are earned or incurred.
IV. Property plant and equipment, investment property and depreciation / amortisation
A. On transition to Ind AS, the Company has opted to continue with the carrying values measured under the previous GAAP as at 1st April,
2015ofitsProperty,PlantandEquipmentandInvestmentproperty andusethatcarryingvalue asthedeemed costonthedateoftransition
i.e. 1st April, 2015.
B. Tangible fixed assets are stated at cost of acquisition or construction including attributable interest and finance cost, if any till the date of
acquisition/installationof theassets,lessaccumulated depreciation/amortisation andaccumulatedimpairment losses, ifany.
C. Subsequentexpenditure relating to Property, Plantand Equipment is capitalised only when itisprobable thatfutureeconomic benefits
associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance
costs are charged to the Statement of Profit and Loss as incurred. The cost and related accumulated depreciation are eliminated from the
financialstatements,either on disposalorwhenretired from active use and the resultant gain or loss are recognised in the Statement of
Profit and Loss.
D. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on
additions to assets or on sale/disposal of assets is calculated pro-rata from the month of such addition, or upto the month of such sale/
disposal,as thecase may be.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year and
adjusted prospectively, if appropriate.
E. "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
propertyusingcost based measurement, thefairvalueofinvestment propertyisdisclosed inthenotes.Fairvalues aredetermined based
on an annual evaluation.
Investment property and depreciation / amortisation
A. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties
arestatedat costless accumulateddepreciationandaccumulated impairmentloss,if any. Though the Company measuresinvestment
property using cost based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based
onan annualevaluation.
B. Depreciation on Investment Property is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the month of such addition, or upto the month
of such sale/disposal, as the case may be.
C. Transfers to (or from) investment property are made only when there is a change in use. Transfers between investment property, owner
occupied property and inventories do not change the carrying amount of the property transferred and they do not change the cost of that
property for measurement or disclosure purposes.
VI. Intangible assets and amortisation
A. Acquired computer softwares are classified as intangible assets and are stated at cost less accumulated amortisation. These are being
amortised over the estimated useful life of five years, as determined by the management.
B. "The Company, as a lessee, recognises 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
useofan identified assetandthe Companyhas substantially all of the economicbenefitsfrom useoftheassetandhas 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 adjustedforanyleasepaymentsmade at or before the commencementdateplusany initialdirectcostsincurred. 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.
TheCompany measuresthelease liability at the present value of the leasepaymentsthat arenotpaidatthe 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
ratecannotbe readilydetermined, the Company uses incremental borrowingrate.Forshort-termand low value leases, the Company
recognises the lease payments as an operating expense on a straight-line basis over the lease term.
VII. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
A. Investments and Financial Assets
i. Initial recognition
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business model with an
objective to hold these assets 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. Interest
income from these financial assets is included in finance income using the effective interest rate ("EIR”) method. Impairment gains
or losses arising on these assets are recognised in the Statement of Profit and Loss.
ii. Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
a) Financial Assets at Amortised Cost
A financial asset is subsequently 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.
b) Financial Assets Measured at Fair Value
Financialassetsare measured at fair value through OCI if these financial assets are held withinabusiness model with an
objective to hold these assets in order to collect contractual cash flows or to sell these 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. Movements in the carrying amount are taken through OCI, except for the recognition of
impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the Statement
ofProfit andLoss.Further,in cases where the Company has madeanirrevocableelectionbasedonitsbusiness model, for
its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other
comprehensiveincome.
Financial asset not measured at amortised cost or at fair value through OCI is carried at FVTPL.
iii. De-recognition of Financial Assets
The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expires, or it
transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity. If the Company
neither transfersnorretains substantially all the risks and rewards of ownership and continues tocontrolthe transferred asset, the
Company recognizes its retained interest in the assets and an associated liability for amounts it may have to pay.
If the Company retains substantially all the risks and rewards of ownershipofa transferredfinancial asset,the Company continues
to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
B. Equity Instruments and Financial Liabilities
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements
entered into and the definitions of a financial liability and an equity instrument.
i. Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its
liabilities. Equity instruments which are issued for cash are recorded at the proceeds received, net of direct issue costs. Equity
instruments which are issued for consideration other than cash are recorded at fair value of the equity instrument.
ii. Financial Liabilities
1. Initial Recognition
Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and borrowings and payables as
appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.
2. Subsequent Measurement
The measurement of financial liabilities depends on their classification, as described below:
— Financial liabilities at FVTPL
Financial liabilities atFVTPLincludefinancial liabilities heldfor tradingand financialliabilitiesdesignatedupon initial
recognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the Statement of Profit
and Loss.
FinancialguaranteecontractsissuedbytheCompany arethosecontractsthat requireapayment to bemade to
reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance
withthe termsof a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value,
adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the
liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of
Ind AS 109and theamountrecognised lesscumulativeamortisation. Amortisationisrecognisedasfinance income
in the Statement of Profit and Loss.
— Financial liabilities at amortised cost
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using
the EIR method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption
of borrowings is recognised over the term of the borrowings in the Statement of Profit and Loss. Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part
oftheEIR. The EIRamortisationisincludedas finance costsintheStatementof Profitand Loss.
3. De-recognition of Financial Liabilities
Financialliabilitiesarede-recognisedwhentheobligationspecified inthe contractisdischarged,cancelled orexpired. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
anexisting liabilityare substantiallymodified,suchanexchange ormodificationistreatedasde-recognition of the original
liability and recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement
of Profit and Loss.
C. Offsetting 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 rightto offset the recognised amounts and there is an intention to settle on a net basis to realise the assets and settle the liabilities
simultaneously.
VIII. De-recognition of financial instruments
The Company de-recognizes a financial asset when the contractual rights to the cash flows from the financial asset expires 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.
IX. Impairment
a. Financial assets
The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business
environment inwhichtheentity operatesor anyotherappropriate basis. Theimpairmentmethodology applieddepends onwhether there
has been a significant increase in credit risk.
b. 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.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
currentmarket assessments of the time value of money and the risks specific totheasset. 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 calculationsare corroboratedby valuation multiples, quoted share pricesforpublicly traded companies or other available fair value
indicators.
Impairmentlosses,includingimpairmentoninventories, are recognised in the Statementof Profitand Loss.
i. Intangible assets and property, plant and equipment
Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e.
the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined
fortheCGU to whichtheassetbelongs.
ii. Provisions
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably
estimable,and itisprobablethat anoutflow of economic benefits willberequiredtosettletheobligation. Provisions 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.
X. Taxation
i. Current Tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from 'profit before tax' as reported in the Statement
of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable
or deductible. The Company's current tax is calculated using rates that have been enacted or substantively enacted by the end of the
reporting period.
ii. Deferred Tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable
that taxable profits will be available against which those deductible temporary differences can be utilized.
The carrying amount of deferred tax asset is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probablethatsufficient taxableprofits willbeavailable to allow all or part ofthe asset tobe recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or
the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Themeasurementof deferred tax liabilitiesand assets reflects the tax consequences thatwouldfollow from themanner in which the
Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
iii. Current and deferred tax for the year
Current and deferred tax arerecognized in the Statement of Profit and Loss,exceptwhenthey relate toitemsthat are recognized in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive
income or directly in equity respectively.
XI. Inventories
All inventories are stated at lower of 'Cost or Net Realizable Value'.
A. 'Stock of material at Site' includes cost of purchase, other costs incurred in bringing them to their respective present location and condition.
Cost formula used is average cost.
B. 'Incomplete Projects' include cost of incomplete properties for which the Company has not entered into sale agreements and in other cases
where the revenue recognition is postponed. 'Incomplete Projects' also include initial project costs that relate directly to a (prospective)
project, incurred for the purpose of securing the project. These costs are recognized as expenditure in the year in which they are incurred
unless they are separately identifiable and it is probable that the respective project will be obtained.
C. Finished properties given under operating lease are disclosed under 'Non Current Assets' as 'Investment Properties'. The costs transferred
to the 'Investment properties' are shown as deductions from the costs carried in opening inventory and construction costs incurred during
the year. These assets are depreciated / amortised as per the Accounting Policy Nos. (IV)(C) and (IV)(D). Although the Company considers
these assets as Inventories held for sale in the ordinary course of business, the disclosure under 'Non Current Assets' as 'Investment
properties' and provision for depreciation / amortisation is made to comply with the requirements of Indian Accounting Standard (Ind AS)
17 - 'Leases' and Indian Accounting Standard (Ind AS) 40 - 'Investment Property'.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE COMPANY (Contd.)
D. Value of 'Floor Space Index' (FSI) generated is recognized as inventory at cost (i.e. proportionate rehab component cost) as and when
necessary obligations / conditions are fulfilled in entirety, which are imposed on the Company by statutory authorities (viz. Rehabilitation
Authority, etc.), in lieu of which the FSI is allotted to the Company. The value of FSI is either carried as inventory (at cost) held for intended
sale or with the intention to utilise in construction of projects undertaken for sale.
E. Traded goods includes cost of purchases and other cost incurred in bringing the inventories to their present location and condition. Cost
is determined on weighted average basis.
Inventory value includes costs incurred upto the completion of the project viz. cost of land / rights, value of Floor Space Index (FSI), materials,
servicesandotherexpenses (including borrowingcosts)attributabletotheprojects. Cost formula usedisaveragecost.
XII. Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade
and other payables are presented as current liabilities unless payment is not due within 12 months after reporting period. For trade and other
payablesmaturing withinoneyearfrom the BalanceSheetdate, thecarryingamounts are approximate fair value duetotheshortmaturity of
these instruments.
XIII. Trade receivable
A receivable is classified as a 'trade receivable' if it is in respect of the amount due on account of goods sold or services rendered in the normal
courseof business. Tradereceivablesare recognizedinitiallyatfairvalueand subsequently measured at amortised cost using the EIR method, less
provision for impairment.
XIV. Employee benefits
a) Defined Contribution Plan
Contributionstodefined contributionschemes suchasprovident fund, labour welfarefundarechargedasanexpensebasedonthe amount
of contribution required to be made as and when services are rendered by the employees. The Company's provident fund contribution is
madetoa 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
TheCompanyprovidesforgratuitywhich is a defined benefitplantheliabilitiesof which isdeterminedbased 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. Re-measurement recognised in OCI are
not reclassified to the Statement of Profit and Loss in subsequent periods.
The classification of the Company's obligation into current and non-current is as per the actuarial valuation report.
c) Leave Entitlement
Leave entitlement are provided based on an actuarial valuation, similar to that of gratuity benefit. Re-measurement, comprising of actuarial
gains and losses, in respect of leave entitlement are recognised in the Statement of Profit and Loss in the period in which they occur.
d) Short-term Benefits
Short-term employee benefits such as salaries, 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 recognisedinthe periodin which the absences occur.
XV. Borrowings and Borrowing costs
Borrowings are initially recognised at net of transaction cost incurred and measured at amortised cost. Any difference between the proceeds
(netoftransactioncosts)andthe redemptionamountisrecognised inStatementofProfitandLoss overther period of the borrowingsusing the
effective interest method.
Interests and other borrowing costs included under finance costs calculated as per effective interest rate attributable to qualifying assets, which
takessubstantial periodoftime to get readyfor itsintendeduseare allocatedaspartofthecostof construction / developmentofsuch assets.
Such allocation is suspended during extended periods in which active development is interrupted and, no costs are allocated once all such
activities are substantiallycomplete. Investment income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are charged to the Statement of Profit
and Loss.
XVI. Earnings per Share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders 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
events of bonus issue, if any.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted
average number ofsharesoutstanding during the year are adjusted for the effects of alldilutive potential equity shares.
XVII. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature,
any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or
financing cashflows. The cashflowsfrom operating,investing and financing activities oftheCompanyaresegregated.
XVIII. Cash and Cash Equivalents
Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three
months orless,whicharesubjectto an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of
outstanding bank overdrafts as they are considered an integral part of the Company's cash management."
XIX. Foreign currency transactions
A. All transactions in foreign currency are recorded in the reporting currency, based on closing rates of exchange prevalent on the dates of
therelevanttransactions.
B. Monetary assets and liabilities in foreign currency, outstanding as on the Balance Sheet date , are converted in reporting currency at the
closing rates of exchange prevailing on the said date. Resultant gain or loss is recognized during the year in the Statement of Profit and
Loss.
C. Non monetary assets and liabilities denominated in foreign currencies are carried at the exchange rate prevalent on the date of the
transaction
XX. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief
operating decision maker regularly monitors and reviews the operating result of the whole Company as one segment of "Real Estate Development”
Thus, as defined in Ind AS 108 "Operating Segments” the Company's entire business falls under this one operational segment and hence the
necessary information has already been disclosed in the Balance Sheet and the Statement of Profit and Loss.
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