Significant accounting policies:
a) Basis of Preparation and Presentation of Financial Statements
The financial statements of the company have been prepared in accordance with the Indian Accounting Standards('Tnd
AS1') as notified by the Ministry of corporate Affairs pursuant to section 133 of the companies Act, 2013 (''Act1'), the
companies (Indian Accounting Standards) Rules, 2015, as amended, and other applicable provisions oftheAct.
The Balance Sheet, Statement of Profit and Loss and Statement of Changes in Equity have been prepared and presented
in the format prescribed in the Division It of the Schedule tit to the Companies Act, 2013. Statement of cash flows has
been prepared and presented as per the requirements of tnd AS 7 Statement of Cash Flows. The disclosure requirements
with respect to the items in the Balance Sheet and Statement ofProfit and Loss Account are presented by way of notes
forming part of financial statements.
The Company has considered a period of twelve months as the operating cycle for classification of assets and liabilities
as current an d n on -curren t.
Basis of Measurement
These financial statements have been prepared based on accrual and going concern principles following the historical
cost conventions except for those financial assets and liabilities that are measured at fair value.
b) Key Estimates & Assumptions
In preparing these tnd AS compliant financial statements, the Management has made judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities (including
contingent liabilities), income and expenses. The Management believes that the estimates used in the preparation of the
financial statements are prudent and reasonable and a continuous evaluation is done on the estimation and judements
based on historical experience and other factors.
c) Inventories
Value of inventories are measured at Cost.
Cost Comprises of Land, Development Rights, Materials, Services, and other expenses attributable to the Project.
Cost of Construction / development (including cost of land) incurred is charged to the standalone statement of profit &
loss Proportionate to area sold and the balance cost is carried over under inventories as WIP
d) Revenue recognition
Revenue from Construction activity is recognized to the extent that it is probable that the economic benefits will flow
from the customer, all significant risks and rewards of ownership are transferred to the customers and it is not
unreasonable to expect ultimate collection andno significant uncertainty exists regarding the amount of Consideration.
Revenue from Construction Activity is recognised at a point in time when significant risks & rewards are transferred to
thecustomeri.e, When thecontrol ofresidential flats is transferred to theCustomers.
Cost of Construed on/Development includes all cost directly related to the project and other expenditure as identified by
themanagement which are reason ably allocable to the project.
e) Property, Plant and Equipment(PPE)
Recognition and Measurement
PPE is recognised when it is probable that future economic benefits associated with the item will flow to the Company
and the cost of the item can be measured reliably. PPE other than freehold land is stated at original cost including import
duties, non-refun dablepurchase taxes and any directly attributable costs of bringing the asset to its working condition for
its intended use, net of tax/duty credits availed, if any, after deducting rebates and trade discounts, less accumulated
depreciation and accumulated impairement losses, if any. If significant parts of an item of PPE have different useful
lives, then they are accounted for as separate items (major components) ofPPE
f) Share Capital
Ordinary shares are classified as equity. Costs directly attributable to issuance ofnew ordinary shares are charged
to profit and loss account on the basis ofpredeterminedperiodin equal proportions.
g) Taxes on Income
Current tax is the expected income tax payable/recoverable in respect of the taxableprofit/(tax loss) for the year and any
adjustment to the tax payable or receivable in respect of previous years. It is measured using the tax rates and tax laws that
have been enacted or substantively enacted by the end of thereporting period.
Deferred tax is recognised in respect of temporary differences between the carrying values of assets and liabilities for
financial reporting purposes and the amount used for tax purposes.
h) Employeebenefits
Sh ort term obi i gati on s:
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employees’services up to the end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
Longterm obligations:
The liabilities for earned leave arenot expected to be settled wholly within 12 months after the end of the period in which
theemployeesrendertherelated service. They are accounted on accrual basis.
Post employment benefits:
The entity operates the Gratuity scheme as defined benefit plan and the obligations for these benefits are recognised
as per the Acturial Valuation
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