1 MATERIAL ACCOUNTING POLICIES
A Company's Background
Macrotech Developers Limited (the Company) is a
public limited company domiciled and incorporated
in India under the Companies Act, 1956 vide CIN -
L45200MH1995PLC093041. The Company's registered
office is located at 412 , Floor - 4, 17 G Vardhaman Chamber,
Cawasji Patel Road, Horniman Circle, Fort, Mumbai -
400001. The Company is primarily engaged in the business
of real estate development.
The Financial Statements are approved by the Company's
Board of Directors at its meeting held on 24-April-2025.
B Material Accounting Policies
I Basis of Preparation
The Standalone financial statements of the Company have been
prepared in accordance with Indian Accounting Standards
('Ind AS') notified under section 133 of the Companies Act
2013, read together with the Companies (Indian Accounting
Standards) Rules, 2015 and amendments if any.
These financial statements have been prepared and presented
under the historical cost convention, on the accrual basis of
accounting except for land as classified under Property, Plant
and Equipment and certain financial assets and financial
liabilities that are measured at fair values at the end of each
reporting period, as stated in the accounting policies set out
below. The accounting policies have been applied consistently
over all the year presented in these financial statements.
The financial statements are presented in Indian Rupees (H)
and all values are rounded to the nearest million except when
otherwise indicated. Transactions and balances with values
below the rounding off, have been reflected as "0" in the
relevant notes to these financial statements.
II Summary of Material Accounting Policies
1 Current and Non-Current Classification
The Company presents assets and liabilities in the Standalone
Balance Sheet based on current/ non-current classification.
An asset is treated as current when it is:
i) Expected to be realised or intended to be sold or
consumed in normal operating cycle.
ii) Held primarily for the purpose of trading
iii) Expected to be realised within twelve months after the
reporting period, or
iv) Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
i) It is expected to be settled in normal operating cycle
ii) It is held primarily for the purpose of trading
iii) It is due to be settled within twelve months after the
reporting period, or
iv) There is no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current
assets and liabilities respectively.
The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash and
cash equivalents.
The operating cycle of the Company's real estate operations
varies from project to project depending on the size of the
project, type of development, project complexities and related
approvals. Accordingly, project related assets and liabilities
are classified into current and non-current based on the
operating cycle of the project. All other assets and liabilities
have been classified into current and non-current based on a
period of twelve months.
2 Property, Plant and Equipment
i. Recognition and measurement
All property, plant and equipment except freehold land
are stated at historical cost less accumulated depreciation.
Building was recorded at fair value as deemed cost as at the
date of transition to Ind AS. Historical cost includes expenditure
that is directly attributable to the acquisition of the items. Cost
includes freight, duties, taxes, borrowing cost and incidental
expenses related to the acquisition and installation of the asset.
Freehold Land is measured at fair value. Valuations are
performed with sufficient frequency to ensure that the carrying
value of revalued asset does not defer materially from
its fair value.
Revaluation surplus is recorded in Other Comphrensive Income
and credited to the Revaluation reserve in Other Equity.
ii. Subsequent costs
Subsequent expenditure is capitalised only when it is probable
that the future economic benefits of the expenditure will flow to
the Company. All other repairs and maintenance are charged
to the Standalone Ind AS Statement of Profit and Loss during
the reporting period in which they are incurred.
iii. 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 Standalone Statement of
Profit and Loss when the item is derecognized.
iv. Capital work in progress
Cost of assets not ready for intended use, as on the Balance
Sheet date, is shown as capital work in progress.
v. Depreciation
Depreciation is calculated on a written down value basis over
the estimated useful lives of the assets as specified in Schedule
II of Companies Act, 2013 except for Site/Sales Offices
,Sample Flats and Aluminium Formwork wherein the estimated
useful lives is determined by the management. Management
believes that such estimated useful lives are realistic and reflect
fair approximation of the period over which the assets are
likely to be used.
Depreciation on addition to property plant and equipment is
provided on pro-rata basis from the date of acquisition.
Depreciation on assets sold during the year is charged to
the Standalone Statement of Profit and Loss up to the month
preceding the month of sale.
Depreciation methods, useful lives and residual values are
reviewed periodically at each financial year end and adjusted
prospectively, as appropriate.
3 Investment Properties
The Property that is held for long term rental yield or for capital
appreciation or both and that is not occupied by the Company
is classified as an Investment Property.
Investment properties are measured initially at cost, including
transaction and borrowing costs. Subsequent to initial
recognition, investment properties are stated at cost less
accumulated depreciation and accumulated impairment
losses, if any.
The Company depreciates investment properties over the
useful life of 60 years from the date of original purchase as
prescribed under Schedule II to the Companies Act, 2013.
Investment properties are derecognized either when they have
been disposed of or when they are permanently withdrawn
from 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.
Amortisation method, useful lives and residual values are
reviewed at the end of each financial year and adjusted,
if appropriate.
4 Intangible Assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible
assets are carried at cost less any accumulated amortisation
and impairment losses.
The useful lives of intangible assets are assessed as either finite
or indefinite. Currently the company has not identified any
Intangible assets other than goodwill to have indefinite life.
Intangible assets with finite lives are amortised over the useful
economic life. The useful economic life and the amortisation
method for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period. The
amortisation expense on intangible assets with finite lives is
recognised in the Standalone Statement of Profit and Loss.
Gains or losses arising from derecognition of an intangible
asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are
recognised in the Standalone Statement of Profit and Loss
when the asset is derecognised.
Intangible assets are amortized proportionately over a period
of five years or over the useful economic life of the assets as
determined by the management, whichever is lower.
Intangible assets with indefinite life are tested for impairment
annually. Impairment losses, if any, are recognised in
Standalone Statement of Profit and Loss.
5 Inventories
Stock of Building Materials and Traded Goods is valued
at lower of cost and net realizable value. Cost is generally
ascertained on weighted average basis.
Finished Stock is valued at lower of Cost and Net
Realizable Value.
Land and Property Development Work-in-Progress is valued
at lower of estimated cost and net realisable value.
Cost for this purpose includes cost of land, shares with
occupancy rights, Transferrable Development Rights, premium
for development rights, borrowing costs, construction /
development cost and other overheads incidental to the
projects undertaken.
Net realizable value is the estimated selling price in the
ordinary course of business, less estimated cost of completion
and the estimated cost necessary to make the sale.
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