2. Summary of significant accounting policies
The financial statements have been prepared using the significant accounting policies and measurement bases
summarised as below. These policies are applied consistently for all the periods presented in the financial
statements, except where the Company has applied certain accounting policies and exemptions upon transition to
Ind AS.
a) Basis of preparation
(i) Statement of compliance with Indian Accounting Standards (Ind AS)
These standalone financial statements (“the Financial Statements”) have been prepared in accordance with
the Indian Accounting Standards ('Ind AS') as notified by Ministry of Corporate Affairs ('MCA') under Section
133 of the Companies Act, 2013 ('Act') read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended and other relevant provisions of the Act. The Company has uniformly applied the accounting
policies for the periods presented in this financial statements.
The financial statements for the year ended March 31,2025 were authorized and approved for issue by the
Board of Directors on 28May 2025.
(ii) Accounting Convention
The financial statements have been prepared on going concern basis in accordance with accounting
principles generally accepted in India. Further, the financial statements have been prepared on historical cost
basis except for certain financial assets and financial liabilities and share based payments which are
measured at fair values as explained in relevant accounting policies.
(iii) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per
the requirement of the schedule III unless otherwise stated.
b) Property, plant and equipment
Recognition and initial measurement
Property, plant and equipment are stated at their cost of acquisition. The cost comprises purchase price including
any import duties and other taxes (non refundable), freight, borrowing cost if capitalization criteria are met and
directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and
rebates are deducted in arriving at the purchase price. 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. All other repair
and maintenance costs are recognised in statement of profit or loss as incurred.
Subsequent measurement (depreciation method, useful lives and residual value)
Property, plant and equipment are subsequently measured at cost less accumulated depreciation and impairment
losses. Cost of acquisition is inclusive of freight, duties, taxes (non refundable) and other incidental expenses.
Depreciation on property, plant and equipment is provided on the straight-line basis as per the rates specified in
Schedule II of the Companies Act, 2013.
Depreciation is calculated on pro rata basis from the date on which the asset is ready for use till the date the asset
is sold or disposed.
The residual values, useful lives and method of depreciation are reviewed at the end of each financial year.
The Company fully depreciates the assets having individual value of Rs. 5,000 or less in the year of acquisition.
De-recognition
An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de¬
recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount
of the asset) is recognized in the statement of profit and loss, when the asset is derecognised.
Capital work-in-progress
Capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and advances
paid to acquire property, plant and equipment. Assets which are not ready to use are also shown under capital
work-in-progress.
Transition to Ind AS
The Company had elected to measure all its property, plant and equipment at the previous GAAP carrying amount
as its deemed cost on the date of transition of Ind AS i.e. April 1,2017.
c) Investment Property
Properties held to earn rentals or / and for capital appreciation or both but not for sale in the ordinary course of
business, use in the production or supply of goods or services or for administrative purposes, are categorized as
investment properties. These are measured initially at cost of acquisition, including transaction costs and other
direct costs attributable to bringing asset to its working condition for intended use. Subsequent to initial
recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment
loss, if any. The cost shall also include borrowing cost if the recognition criteria are met. Said assets are
depreciated on straight line basis based on expected life span of assets which is in accordance with Schedule II of
the Act. However, as per Ind AS 40, there is a requirement to disclose fair value as at the balance sheet date.
d) Intangible assets
Recognition and initial measurement
Intangible assets are stated at their cost of acquisition. The cost comprises purchase price including any import
duties and other taxes (non refundable), borrowing cost if capitalization criteria are met and directly attributable
cost of bringing the asset to its working condition for the intended use.
Subsequent measurement (amortisation method, useful lives and residual value)
Intangible assets are amortised over a period of 3 years from the date when the assets are available for use. The
estimated useful life (amortisation period) of the intangible assets is arrived basis the expected pattern of
consumption of economic benefits and is reviewed at the end of each financial year and the amortisation period is
revised to reflect the changed pattern, if any.
Transition to Ind AS
The Company had elected to measure all its intangible assets at the previous GAAP carrying amount as its
deemed cost on the date of transition of Ind AS i.e. April 1,2017.
e) Inventories
Inventories represent Real Estate Properties held for trading and these are measured at Fair Value in the books of
accounts.
f) Revenue recognition
Interest income
Interest income is recorded on accrual basis using the Effective Interest Rate (EIR) method. Additional
interest/overdue interest/penal charges, if any, are recognised only when it is reasonable certain that the ultimate
collection will be made.
Dividend income
Dividend income is recognised at the time when the right to receive is established by the reporting date.
Investment Income
Profit/Loss on Sale of investments is recognised at the time of sale/redemption.
Rental income
Rental Income is accounted for on accrual basis.
Commission income
Income from business correspondent services is recognised as and when the services are rendered as per agreed
terms and conditions of the contract.
Miscellaneous income
All other income is recognized on an accrual basis, when there is no uncertainty in the ultimate
realization/collection.
g) Borrowing costs
Borrowing costs that are directly attributable to the acquisition and/or construction of a qualifying asset, till the time
such qualifying assets become ready for its intended use, are capitalised. Borrowing cots consists of interest and
other cost that the Company incurred in connection with the borrowing of funds. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged
to the Statement of Profit and Loss as it is incurred basis using the effective interest rate method.
h) Taxation
Tax expense recognized in Statement of Profit and Loss comprises the sum of deferred tax and current tax except
to the extent it is recognized in other comprehensive income or directly in equity.
Current tax comprises the tax payable or receivable on taxable income or loss for the year and any adjustment to
the tax payable or receivable in respect of previous years. Current tax is computed in accordance with relevant tax
regulations. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be
paid or received after considering uncertainty related to income taxes, if any. Current income tax relating to items
recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in
equity).
Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the
recognisedamounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.
Minimum alternate tax ('MAT') credit entitlement is recognised as an asset only when and to the extent there is
convincing evidence that normal income tax will be paid during the specified period. In the year in which MAT credit
becomes eligible to be recognised as an asset, the said asset will be created by way of a credit to the Statement of
Profit and Loss and shown as MAT credit entitlement. This is reviewed at each balance sheet date and the carrying
amount of MAT credit entitlement is written down to the extent it is not reasonably certain that normal income tax
will be paid during the specified period.
Deferred tax is recognised in respect of temporary differences between carrying amount of assets and liabilities for
financial reporting purposes and corresponding amount used for taxation purposes. Deferred tax assets are
recognised on unused tax loss, unused tax credits and deductible temporary differences to the extent it is probable
that the future taxable profits will be available against which they can be used. This is assessed based on the
Company's forecast of future operating results, adjusted for significant non-taxable income and expenses and
specific limits on the use of any unused tax loss. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the
deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date. The measurement of deferred tax reflects the tax consequences that would follow
from the manner in which the Company expects, at the reporting date to recover or settle the carrying amount of its
assets and liabilities. Deferred 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. Deferred tax relating to items recognised outside statement of profit and loss is recognised
outside statement of profit or loss (either in other comprehensive income or in equity).
i) Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, if any, 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.
Other long term employee benefit obligations:
The liabilities, if any, which needs to be settled after 12 months from the end of the period in which the employees
render the related services are measured as the present value of expected future payments to be made in respect
of services provided by employees up to the end of reporting period using the projected unit credit method.
Post-employment obligations:
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present
value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The
defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognised in the period in which they occur, directly in other comprehensive income. They are included in
retained earnings in the statement of changes in equity and in the balance sheet.
Defined contribution plans
Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and
Miscellaneous Provisions Act, 1952 and is charged to the Statement of Profit and Loss.
j) Impairment of non-financial assets
Loan Assets
At each reporting date, the Company assesses whether there is any indication that an asset may be impaired. If
any such indication exists, the Company estimates the recoverable amount of the asset. Recoverable amount is
higher of an asset's net selling price and its value in use. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount
is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the
Statement of Profit and Loss. If at the reporting date there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
Compensation for impairment
Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up are
recognised in statement of profit and loss when the compensation becomes receivable.
k) Impairment of financial assets
Loan assets
The Company follows a 'three-stage' model for impairment based on changes in credit quality since initial
recognition as summarised below:
• Stage 1 includes loan assets that have not had a significant increase in credit risk since initial recognition or that
have low credit risk at the reporting date.
• Stage 2 includes loan assets that have had a significant increase in credit risk since initial recognition but that do
not have objective evidence of impairment.
• Stage 3 includes loan assets that have objective evidence of impairment at the reporting date.
• The Expected Credit Loss (ECL) is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for
Stage 2 and Stage 3 loan assets ECL is the product of the Probability of Default, Exposure at Default and Loss
Given Default, defined as follows:
Probability of Default (PD) - The PD represents the likelihood of a borrower defaulting on its financial obligation
(as per “Definition of default and credit-impaired” above), either over the next 12 months (12 months PD), or over
the remaining lifetime (Lifetime PD) of the obligation.
Loss Given Default (LGD) - LGD represents the Company's expectation of the extent of loss on a defaulted
exposure. LGD varies by type of counterparty, type and preference of claim and availability of collateral or other
credit support.
Exposure at Default (EAD) - EAD is based on the amounts the Company expects to be owed at the time of
default. For a revolving commitment, the Company includes the current drawn balance plus any further amount
that is expected to be drawn up to the current contractual limit by the time of default, should it occur.
Forward-looking economic information (including management overlay) is included in determining the 12-month
and lifetime PD, EAD and LGD. The assumptions underlying the expected credit loss are monitored and reviewed
on an ongoing basis.
Other financial assets
In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has
increased significantly since initial recognition. If the credit risk has not increased significantly since initial
recognition, the Company measures the loss allowance at an amount equal to 12-month expected credit losses,
else at an amount equal to the lifetime expected credit losses. The Company have not traded or invested in Crypto
Currency or virtual currency during the financial year.
When making this assessment, the Company uses the change in the risk of a default occurring over the expected
life of the financial asset. To make that assessment, the Company compares the risk of a default occurring on the
financial asset as at the balance sheet date with the risk of a default occurring on the financial asset as at the date
of initial recognition and considers reasonable and supportable information, that is available without undue cost or
effort, that is indicative of significant increases in credit risk since initial recognition. The Company assumes that
the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is
determined to have low credit risk at the balance sheet date.
Write-offs
Financial assets are written off either partially or in their entirety only when the Company has stopped pursuing the
recovery. Any subsequent recoveries are credited to impairment on financial instrument on statement of profit and
loss.
l) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand (including imprest), demand deposits and short-term highly
liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant
risk of changes in value.
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