(c) Operating Cycle:

The normal operating cycle in respect of
operation relating to under construction real
estate project depends on signing of agreement,
sise of the project, phasing of the project, type
of development, project complexities, approvals
needed. Accordingly, project related assets &
liabilities have been classified into current &
non-current based on operating cycle of the
respective projects.

(d) Use of estimates and judgments :

The preparation of the Standalone financial
statements in conformity with recognition and
measurement principles of Ind AS requires the
Management to make estimates and assumptions
considered in the reported amounts of assets
and liabilities (including contingent liabilities) and
the reported income and expenses during the
year. Estimates and underlying assumptions are
reviewed on an ongoing basis. They are based
on the historical experience and other factors,
including expectations of future events that may
have financial impact on the Company and are
believed to be prudent and reasonable. Future
results could differ due to these estimates and
the differences between the actual results and
the estimates are recognised in the periods in
which the results are known/ materialise.

The areas involving critical estimates and
judgments are:

(i) Evaluation of Percentage Completion:

Determination of revenues under the
percentage of completion method
necessarily involves making estimates,
some of which are of a technical nature,
concerning, where relevant, the percentages
of completion, costs to completion, the
expected revenues from the project or
activity and the foreseeable losses to
completion. Estimates of project income,
as well as project costs, are reviewed
periodically. The effect of changes, if any,
to estimates is recognised in the financial
statements for the period in which such
changes are determined.

(ii) 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 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.

(iii) Impairment of Financial Assets:

The impairment provisions for financial
assets are based on assumptions about the
risk of default and expected loss rates. The
Company uses judgment in making these
assumptions and selecting the inputs to the
impairment calculation, based on Company's
past history, existing market conditions as
well as forward looking estimates at the end
of each reporting period.

(iv) Estimation of useful life of property, plant
and equipment's:

Useful lives of tangible assets are based
on the life prescribed in Schedule II of the
Companies Act, 2013. In cases, where
the useful lives are different from that
prescribed in Schedule II, they are based
on technical advice. Assumptions also need
to be made, when the Company assesses,
whether an asset may be capitalised and
which components of the cost of the asset
may be capitalised.

(v) Recognition and Measurement of Defined
Benefit Obligations:

The obligation arising from defined benefit
plan is determined on the basis of actuarial
assumptions. Key actuarial assumptions
include discount rate, expected return on
plan assets, trends in salary escalation and
attrition rate. The discount rate is determined
by reference to market yields at the end of
the reporting period on government bonds.
The period to maturity of the underlying
bonds correspond to the probable maturity
of the post employment benefit obligations.

(vi) Fair Value Measurement of Financial
Instruments:

When the fair values of the financial assets
and liabilities recorded in the Balance Sheet
cannot be measured based on the quoted
market prices in active markets, their fair
value is measured using valuation technique.

The inputs to these models are taken from
the observable market wherever possible,
but where this is not feasible, a review of
judgment is required in establishing fair
values. Any changes in assumptions could
affect the fair value relating of financial
instruments.

(vii) Classification of Investment property:

The Company determines whether a
property is classified as investment property
or as inventory:

(a) Investment property comprises land
and buildings that are not occupied
for use by, or in the operations of, the
Company, nor normally for sale in the
ordinary course of business, but are
held primarily to earn rental income
and capital appreciation. These
buildings are rented to tenants and are
not intended to be sold in the ordinary
course of business.

(b) Inventory comprises property that is
held for 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.

(viii) Estimation of recognition of deferred tax
assets, availability of future taxable profit
against which tax losses carried forward can
be used.

(ix) Estimation on discounting of retention
money payable.

(e) Measurement of fair values :

The Company's accounting policies and
disclosures require the measurement of fair
values, for financial instruments:-
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, regardless of whether
that price is directly observable or estimated using
another valuation technique. In estimating the fair
value of an asset or a liability, the Company takes
into account the characteristics of the asset or
liability if market participants would take those
characteristics into account when pricing the asset
or liability at the measurement date. Fair value
for measurement and/ or disclosure purposes
in these financial statements is determined on

such a basis, except leasing transactions that are
within the scope of Ind AS 17, and measurements
that have some similarities to fair value but are
not fair value, such as net realisable value in Ind
AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair
value measurements are categorised into Level
1, 2 or 3 based on the degree to which the inputs
to the fair value measurements are observable
and the significance of the inputs to the fair value
measurement in its entirety, which are described
as follows:

• Level 1 inputs are quoted prices (unadjusted)
in active markets for identical assets or
liabilities that the entity can access at the
measurement date

• Level 2 inputs are inputs, other than quoted
prices included within Level 1, that are
observable for the asset or liability, either
directly or indirectly; and

• Level 3 inputs are unobservable inputs for
the asset or liability

The Company recognises transfers between
levels of the fair value hierarchy at the end of the
reporting period during which the change has
occurred.

2.2 Property, Plant and Equipment

All the items of property, plant and equipment are
stated at cost less depreciation and impairment, if any.
Historical cost includes expenditure that is directly
attributable to the acquisition of the items.

Subsequent costs are included in the asset's
carrying amount or recognised as a separate asset,
as appropriate, only 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. The carrying amount of any component
accounted for as a separate asset is derecognised
when replaced. All other repairs and maintenance are
charged to the Statement of Profit and Loss during the
reporting period in which they are incurred.

Depreciation methods, estimated useful lives and
residual value

The Company depreciates its property, plant and
equipment (PPE) over the useful life on straight line
method in the manner prescribed in Schedule II to the
Act. Management believes that useful life of assets are
same as those prescribed in Schedule II to the Act,

The residual values are not more than 5% of the original
cost of the asset. The assets residual values and useful
lives are reviewed, and adjusted if appropriate, at the
end of each reporting period.

Depreciation on additions / deletions is calculated pro¬
rata from the date of such addition / deletion, as the
case maybe.

Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are
included in the Statement of Profit and Loss.

2.3 Investment Properties :-

Investment property is property held to earn rental
income or for capital appreciation or for both, but
normally not for sale in the ordinary course of business,
use in the production or supply of goods or services or
for administrative purposes.

Upon initial recognition, an investment property is
measured at cost. Subsequent to initial recognition,
investment property is measured at cost less
accumulated depreciation and accumulated
impairment losses, if any.

Based on technical evaluation and consequent advice,
the Management believes a period of 60 years as
representing the best estimate of the period over
which investment properties are expected to be used.
Accordingly, the Company depreciates investment
property over a period of 60 years. Any gain or loss on
disposal of investment property is recognised in the
Statement of Profit and Loss.

2.4 Inventories :-

a. Inventories comprise of: (i) Finished Inventories
representing unsold premises in completed
projects (ii) Construction Work in Progress
representing properties under construction /
development and

b. Inventories are valued at lower of cost and net
realisable value

c. Cost of construction / development is charged to
the Statement of Profit and Loss in proportion to
the revenue recognised during the period and
the balance cost is carried over under Inventory
as part of either Construction Work in Progress
or Finished inventories. Cost of construction /
development includes all costs directly related to
the Project (including finance cost attributable to
the project) and other expenditure as identified
by the Management which are incurred for the
purpose of executing and securing the completion
of the Project (net off incidental recoveries /
receipts) up to the date of receipt of Occupation
Certificate of Project from the relevant authorities.

Construction Work in Progress includes cost of land,
premium for development rights, construction costs,
allocated interest and expenses incidental to the
projects undertaken by the Company.

2.5 Investments in subsidiaries, joint ventures and
associates :-

Investments in subsidiaries, joint ventures and
associates are recognised at cost as per Ind AS 27.
Except where investments accounted for at cost shall
be accounted for in accordance with Ind AS 105,
Non-current Assets Held for Sale and Discontinued
Operations, when they are classified as held for sale.

2.6 Financial Instruments:

(a) Financial Assets:-

(i) Classification

The Company classifies financial assets as
subsequently measured at amortised cost,
fair value through other comprehensive
income or fair value through profit or loss on
the basis of its business model for managing
the financial assets and the contractual cash
flow characteristics of the financial asset.

(ii) Initial Recognition and Measurement

All financial assets (not measured
subsequently at fair value through profit
or loss) are recognised initially at fair value
plus transaction costs that are attributable
to the acquisition of the financial asset.
Purchases or sales of financial assets that
require delivery of assets within a time frame
established by regulation or convention in
the market place (regular way trades) are
recognised on the trade date, i.e., the date
that the Company commits to purchase or
sell the asset.

(iii) Subsequent Measurement

For purposes of subsequent measurement
financial assets are classified into two broad
categories:

a. Financial asset at fair value

b. Financial asset at amortised cost
Where assets are measured at fair value,
gains and losses are either recognised
entirely in profit or loss (i.e. fair value
through profit or loss), or recognised in
other comprehensive income (i.e. fair value
through other comprehensive income).

asset is designated at fair value through
profit or loss under the fair value option.
Business Model Test : The financial asset
is held within a business model whose
objective is achieved both by collecting
contractual cash flows and selling the
financial assets

Cash Flow Characteristics Test: The

contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payment of principal and interest on
the principal amount outstanding.

Even if an instrument meets the two
requirements to be measured at
amortised cost or fair value through other
comprehensive income, a financial asset
is measured at fair value through profit or
loss if doing so eliminates or significantly
reduces a measurement or recognition
inconsistency (sometimes referred to as an
‘accounting mismatch') that would otherwise
arise from measuring assets or liabilities or
recognising the gains or losses on them on
different basis.

All other financial assets are measured at
fair value through profit or loss.

(v) De-recognition:

A financial asset (or, where applicable, a
part of a financial asset or part of a group
of similar financial assets) is primarily
derecognised when:

• The rights to receive cash flows from
the asset have expired, or

• The Company has transferred its rights
to receive cash flows from the asset.

(vii) Impairment of Financial Asset

The Company assesses impairment based
on expected credit losses (ECL) model to the
following:

• Financial asset measured at amortised
cost

• Financial asset measured at fair value
through other comprehensive income

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

• 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)

For financial assets other than trade
receivables, as per Ind AS 109, the Company
recognises 12 month expected credit losses
for all originated or acquired financial
assets if at the reporting date the credit
risk of the financial asset has not increased
significantly since its initial recognition. The
expected credit losses are measured as
lifetime expected credit losses if the credit
risk on financial asset increases significantly
since its initial recognition.

The Company follows ‘simplified approach'
for recognition of impairment loss allowance
on trade receivables, considering historical
trend, industry practices and the business
environment in which the Company operates
or any other appropriate basis.

The Company's trade receivables do not
contain significant financing component
and loss allowance on trade receivables is
measured at an amount equal to life time
expected losses i.e. expected cash shortfall.

The impairment losses and reversals are
recognised in Statement of Profit and Loss.

(b) Financial Liabilities:-

(i) Classification

The Company classifies all financial liabilities
as subsequently measured at amortised
cost or at fair value through profit or loss.

(ii) Initial Recognition and Measurement

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

(iii) Subsequent Measurement

After initial recognition, interest bearing
loans and borrowings are subsequently
measured at amortised cost using the
Effective Interest Rate (EIR) method. Gains
and losses are recognised in the Statement
of Profit and Loss when the liabilities are
derecognised.

Amortised cost is calculated by taking
into account any discount or premium on
acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation
is included as finance costs in the Statement
of Profit and Loss.

Any difference between proceeds (net of
transaction cost) and the redemption amount
is recognised in profit or loss over the period
of borrowing using the effective interest rate
method. Fees paid on the establishment of
loan facilities are recognised as transaction
cost of the loan to the extent that it is
probable that some or all of the facility will
be drawn down.

(iv) Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged
or cancelled or expires. When an existing
financial liability is replaced by another from
the same lender on substantially different
terms, or the terms of an existing liability are
substantially modified, such an exchange or
modification is treated as the derecognition
of the original liability and the recognition
of a new liability. The difference in the
respective carrying amounts is recognised
in the Statement of Profit and Loss.

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.

(c) Equity Instruments

An equity instrument is a contract that evidences
residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments
are recognised at the proceeds received net off
direct issue cost.

2.7 Cash and Cash Equivalents :-

For the purpose of presentation in the statement of
cash flows, cash and cash equivalents includes cash
on hand, bank overdraft, deposits held at call with
financial institutions, other short-term highly liquid
investments with original maturities of three months or
less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of
changes in value.

2.8 Revenue Recognition :-

(a) Revenue from contracts with customers :-

The Company undertakes the business of
construction of residential and commercial
properties. The ongoing contracts with customers
are construction of residential & commercial
buildings, and others.

The Company has adopted Ind AS 115, Revenue
from Contracts with Customers, with effect
from 01 April 2018. The Company has applied
the following accounting policy for revenue
recognition:

Revenue from contract with customer is
recognised, on execution of agreement when
control of the goods or services are transferred
to the customer, at an amount that reflects the
consideration 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
performance obligation and recognises revenue
over time. The Company recognises revenue
at the transaction price 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 specific recognition criteria described below
must also be met before revenue is recognised.
The Company recognises revenue from contracts
with customers for ongoing contracts with
customers based on a five step model as set out
in Ind AS 115:

The Company Recognised the revenue using
cost based input method. Revenue is recognised
with respect to stage of completion, which
assessed with reference to the proportion of
contract cost incurred for work performed to the
estimated total cost of completion of contract.
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 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.

Consideration is adjusted for the time value of
money if the period between the transfer of
goods or services and the receipt of payment
exceeds twelve months and there is a significant
financing benefit either to the customer or the
Company.

A 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.
Consideration is adjusted for the time value of
money if the period between the transfer of
goods or services and the receipt of payment
exceeds twelve months and there is a significant
financing benefit either to the customer or the
Company.

A 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.

A contract liability 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. 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 section 2.6 financial
instruments - initial recognition and subsequent
measurement.

(b) Dividend Income

Dividend Income is accounted when the right to
receive the same is established.

(c) Interest Income

Interest income is accounted on accrual basis on
a time proportion basis.

(d) Rental Income :-

Rental Income from investment property is
recognised in standalone statement of profit and
loss on straight-line basis over the term of the
lease except where the rentals are structured to
increase in line with expected general inflation.

(e) Share in Profit from LLP:-

Share in Profit from partnership is recognised
when rights to receive is established

2.9 Current and Deferred Taxes :

(a) Current Tax:

Tax expense comprises of current tax and
deferred tax. Current tax is measured at the
amount expected to be paid to / recovered from
the tax authorities, based on estimated tax liability
computed after taking credit for allowances and
exemption in accordance with the tax laws as
applicable.

(b) Deferred Tax:

Deferred tax is recognised using the balance
sheet approach. Deferred tax assets and
liabilities are recognised for deductible and
taxable temporary differences arising between
the tax base of assets and liabilities and their
carrying amount.

Deferred tax asset are recognised to the extent
that it is probable that taxable profit will be
available against which the deductible temporary
differences and the carry forward of unused tax
credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised.

Deferred tax liabilities and assets measured at
the tax rates that are expected to apply in the
period in which the liability is settled or the asset
realised, based on tax rates (and tax laws) that
have been enacted or substantively by the end of
the reporting period.

The measurement of deferred tax liabilities and
assets reflects the tax consequences that would
follow from the manner in which the Company
expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets
and liabilities

Current and deferred tax for the year:

Current and deferred tax are recognised in profit
or loss, except when they relate to items that
are recognised in other comprehensive income
or directly in equity, in which case, the current
and deferred tax are also recognised in other
comprehensive income or directly in equity
respectively.

2.10 Employee Benefits :

(a) Short term employee benefits:

Short term Employee Benefits are recognised as
an expense on accrual basis at the undiscounted
amount in the statement of profit and loss of the
year in which related service is rendered.

(b) Post Employment Benefits

Unfunded Post employment and other long term
employee benefits are recognised as expense
in the statement of profit and loss for the year in
which the Employees have rendered services.
The expense is recognised at the present value
of the amount payable determined using actuarial
valuation techniques as per actuary report
obtained at the year end.

Re-measurement of Defined Benefit Plans in
respect of post-employment are charged to the
Other Comprehensive Income.

2.11 Share-Based Payments

Employees of the Company also receive remuneration
in the form of share based payments in consideration
of the services rendered.

Equity settled share based payments to employees are
measured at fair value in accordance with Ind AS 102,
share based payments. The fair value determined at
the grant date of the share based payment is expensed
over the vesting period, based on the Company
estimate of equity instruments that will eventually vest,
with a corresponding increase in equity.

2.12 Leases:

Operating Lease

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

As a lessee:-

The Company applies a single recognition and
measurement approach for all leases, except for short
- term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the right
to use the underlying assets. Subsequently, the right
of use asset are measured at cost less accumulated
depreciation and any accumulated impairment loss.
Lease liability are measured at amortised cost using the
effective interest method. The lease payment made,
are apportioned between the finance charge and
the reduction of lease liability, and are recognised
as expense in the Statement of Profit and Loss.

Lease deposits received are a financial liabilities
and are measured at amortised cost under Ind
AS 109 since it satisfies Solely Payment of Principal
and Interest (SPPI) condition. The difference between
the present value and the nominal value of deposit is
considered as deferred rent and recognised over the
lease term. Unwinding of discount is treated as finance
expenses and recognised in the Statement of Profit
and Loss.

The Company has elected to use the recognition
exemptions for lease contracts that, at the
commencement date, have a lease term of 12 months
or less and do not contain a purchase option (short¬
term leases), and lease contracts for which the
underlying asset is of low value (low-value assets).

As a lessor:-

Lease income from operating leases where the
Company is a lessor is recognised in income on
a straight-line basis over the lease term unless
the receipts are structured to increase in line with
expected general inflation to compensate for the
expected inflationary cost increases. The respective
leased assets are included in the balance sheet based
on their nature.

Lease deposits received are financial instruments
(financial liability) and are measured at fair value on
initial recognition. The difference between the fair
value and the nominal value of deposits is considered
as rent in advance and recognised over the lease

term on a straight line basis. Unwinding of discount is
treated as interest expense (finance cost) for deposits
received and is accrued as per the EIR method.

2.13 Borrowing Cost

Borrowing costs are interest and other costs that the
Company incurs in connection with the borrowing of
funds and is measured with reference to the effective
interest rate applicable to the respective borrowing.

Borrowing costs, allocated to qualifying assets,
pertaining to the period from commencement of
activities relating to construction / development of
the qualifying asset up to the time all the activities
necessary to prepare the qualifying asset for its
intended use or sale are complete.

All other borrowing costs are recognised as an
expense in the period which they are incurred.

2.14 Earnings Per Share :

The Company reports basic and diluted earnings per
share in accordance with Ind AS - 33 on ‘Earnings
per Share'. Basic earnings per share is computed
by dividing the net profit or loss for the year by
the weighted average number of Equity shares
outstanding during the year. Diluted earnings per
share is computed by dividing the net profit or loss for
the year by the weighted average number of equity
shares outstanding during the year as adjusted for
the effects of all diluted potential equity shares except
where the results are anti- dilutive.