1.3 SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
The Standalone Financial Statements have been prepared using the Material Accounting Policy Information and
measurement basis summarized below.
1.4 OVERALL CONSIDERATIONS
The Standalone Financial Statements have been prepared using the Material Accounting Policy Information and
measurement bases that are in effect at 31 March 2025, as summarised below:
1.4.1 INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
Investments in Subsidiaries, Associates and Joint Ventures are carried at cost. The cost comprises price paid to
acquire investment and directly attributable cost.
On each reporting date, consequent upon existence of any external or internal indication to impairment, the
impairment loss shall be recognised as difference between the carrying amount and recoverable amount.
1.4.2 REVENUE RECOGNTION
The Company derives revenues primarily from Constructions contracts and Real Estate Projects. Construction
contracts comprise of geotechnical investigations, topographical surveys, resource planning, preparation of DPR,
obtaining statutory approvals, construction of the building, rectification of defects during defect liability period etc.
(“together called as construction related services”). In case of Redevelopment construction contracts, sale of the
redevelopment properties is also entrusted onto the company in addition to the construction related services. In Real
Estate projects, the contract with customer comprises of delivery of residential/ commercial space, parking slots,
after sale maintenance services etc.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts
collected on behalf of third parties. The Company recognizes revenue when it transfers control over a product or
service to a customer.
a) Project Management Consultancy
In case of PMC contracts, the Company undertakes to perform tasks such as geotechnical investigations, topographical
surveys, resource-planning, preparing detailed engineering designs and supervising execution of works etc. For
contracts where there is one performance obligation, revenue is recognized over time based on the input method of
measuring progress as in these contracts, the customer receives and uses the benefits simultaneously.
Some redevelopment construction contracts include additional deliverables, such as marketing and publicity
services or the services relating to appointment of real estate consultant, e-auction etc. of commercial and
residential areas. These services are separately sold in the market with no dependence on the construction
related services and therefore are accounted for as a separate performance obligation. Where the contracts
include multiple performance obligations, the transaction price is allocated to each performance obligation
based on the stand-alone selling prices. For marketing and publicity services, the performance obligation is to
facilitate and manage the sale process on behalf of client. The performance obligation is satisfied at the time of
booking of sale of unit on behalf of client. The revenue is recognized at a point in time when the performance
obligation is completed.
For maintenance services, revenue is recognized over time as the customer receives and uses the benefits as
the Company performs its obligation.
b) Real Estate
In real estate development contracts, there are multiple promises such as (a) Sale of property, (b) Sale of
additional parking slots and (c) Maintenance services etc. These individual items are sold separately in market
and add value to the customer on an individual basis. Therefore, these services are considered as separate
performance obligations.
The revenue for these performance obligations is recognized based on the stand-alone selling prices.
Revenue for ‘sale of property’ and ‘sale of additional parking slots’ is recognized when control over the property
has been transferred to the customer. The properties have generally no alternative use for the Company due to
contractual restrictions. An enforceable right to payment does not arise until the transfer of control of property
to customer. Revenue is recognized at a point in time when the possession is handed over to the customer
including deemed possession.
Where, the Company enters into a contract for sale of undeveloped land revenue for which is recognised when
possession is handed over and the control is transferred to the customer.
For maintenance services, revenue is recognized over time as the customer receives and uses the benefits as
the Company performs its obligation.
c) Engineering, Procurement and Construction (EPC)
Under EPC Contracts, the Company is required to construct, manufacture or develop an asset on behalf
of a customer, which is considered as a single performance obligation as the bundle of goods or services
represent the combined output for which the customer has contracted with the Company i.e. construction of
the project/asset.
For EPC contracts, transaction price is the price which is contractually agreed with the customer for provision
of services. The revenue is recognized over time based on the input method of measuring progress because in
such contracts, the customer receives and uses the benefits as the Company performs its obligation.
Revenue includes:
1. Work done for which only letters of intent have been received, however, formal contracts/agreements are
in the process of execution.
2. Work executed, and measured by the Company pending certification by the client.
3. Work executed but not measured /partly executed is accounted for at engineering estimate.
4. Extra/Substituted items and the Claims lodged against clients to the extent considered realizable.
1.4.3 PROPERTY, PLANT AND EQUIPMENT
Recognition
Properties Plant and Equipment are stated at their cost of acquisition. The cost comprises purchase price, borrowing
cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the
intended use including decommissioning and restoration costs associated with provisions for asset retirement. Any
trade discount and rebates are deducted in arriving at the purchase price.
Subsequent measurement (Depreciation)
Depreciation on Property, Plant and Equipment is charged on straight line method either on the basis of rates arrived
at with reference to the useful life of the assets evaluated by the Committee consisting of Technical experts and
approved by the Management or rates arrived at based on useful life prescribed under Part C of Schedule II of the
Companies Act, 2013.The following useful lives are applied:
When an asset is acquired or added during the financial year, depreciation is charged based on the proportionate
number of days the asset is available for use within that financial year.
Premium paid on land where lease agreements have been executed for specified period are written off over the
period of lease proportionately.
Property, Plant and Equipment individually costing upto INR 10,000 are fully depreciated in the year of acquisition.
The residual values, useful lives and methods of depreciation of Property, Plant and Equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.
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 included in the Statement of Profit and Loss account when the asset is derecognised.
1.4.4 FINANCIAL INSTRUMENTS
Financial Assets
Initial recognition and measurement
Financial Assets are recognised when the Company becomes a party to the contractual provisions of the Financial
Instrument and are measured initially at fair value adjusted for transaction costs except for trade receivables that do
not have a significant financing component which are measured at transaction price.
Subsequent Measurement
i. Financial Assets at Amortised Cost— A ‘debt instrument’ is measured at the amortized cost if both the
following conditions are met:
• The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and
• Contractual terms of the asset give rise on specified dates to cash flows that are Solely Payments of
Principal and Interest (SPPI) on the principal amount outstanding.
After initial measurement, such Financial Assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. All other financial assets are measured at Fair Value through Other Comprehensive
Income (FVOCI) or Fair Value through Profit And Loss (FVTPL) based on Company’s business model.
ii. Investment in equity instruments— All equity investments in scope of Ind-AS 109 are measured at fair
value. Equity instruments which are held for trading are classified as at fair value through profit and loss
(FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value
through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL)on an instrument to
instrument basis.
iii. Mutual Funds— All mutual funds in scope of Ind-AS 109 are measured at fair value through profit
and loss (FVTPL).
De-recognition of Financial Assets
A Financial Asset is primarily de-recognised 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.
Financial Liabilities
Initial recognition and measurement
All Financial Liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition
of the Financial Liabilities is also adjusted.
Subsequent measurement
Subsequent to initial recognition, these liabilities are measured at Amortised Cost using the Effective
Interest Rate method.
De-recognition of Financial Liabilities
A Financial Liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
Consequently write back of unsettled credit balances and invoked bank guarantee is done on closure of the
concerned project or earlier based on the previous experience of Management and actual facts of each case and
recognised in Other Operating Revenues.
Further 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 de-recognition 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.
1.4.5 IMPAIRMENT OF FINANCIAL ASSETS
In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss for Financial Assets.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company
considers the following —
• All contractual terms of the Financial Assets (including prepayment and extension) over the expected
life of the assets.
• Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
Trade Receivables
As a practical expedient the Company has adopted ‘simplified approach’ using the provision matrix method for
recognition of expected loss on trade receivables. The provision matrix is based on three years rolling average
default rates observed over the expected life of the trade receivables and is adjusted for forward-looking estimates.
These average default rates are applied on total credit risk exposure on trade receivables and outstanding for more
than one year at the reporting date to determine lifetime Expected Credit Losses. Further, in cases where there is
significant increase in credit risk since initial recognition, impairment loss is assessed & provided.
Other Financial Assets
For recognition of impairment loss on Other Financial Assets and Risk Exposure, the Company determines whether
there has been a significant increase in the credit risk since initial recognition and if credit risk has increased
significantly, impairment loss is provided.
1.4.6 IMPAIRMENT OF NON FINANCIAL ASSETS
Carrying amount of assets is reviewed at each reporting date where there is any indication of impairment based on
internal/ external indicators. An impairment loss is recognised in the Statement of Profit and Loss where carrying
amount exceeds recoverable amount of assets. Impairment loss is reversed, if, there is change in recoverable
amount and such loss either no longer exists or has decreased or indication on which impairment was recognised
no longer exists. Recoverable amount is the higher of an asset's fair value less costs of disposal (FVLCD) and its
value in use (VIU).
When estimating VIU, the Company uses cash flow projections based on reasonable and supportable assumptions.
Cash flows are discounted using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset.
1.4.7 INVENTORIES
Inventories are valued as under:
Land Bank— It consists of asset purchased by the Company that it intends to develop later on into residential /
commercial project but on which no construction has commenced. Land is initially recognized at fair value which is
generally the cost or net realizable value whichever is less. However, it is discounted to present value when payment
terms are deferred for a period of more than one year.
Work in Progress— Work-in-Progress includes construction work in progress and unsold portion of completed Real
Estate Projects. Increase / decrease in Work-in-Progress is accounted for as Income or Expenditure for the year, as
the case may be. Valuation of Work-in-Progress including unsold portion of reality project is being done on the basis
of actual cost and overheads incurred which are directly attributable to project, till completion or net realizable value
whichever is less.
Direct Materials, Stores and Spare Parts are valued at lower of cost or net realizable value. Cost is determined on
Weighted Average Cost Method.
Consumables including Cantering, Shuttering and Scaffolding, Loose Tools, Laboratory Equipment, empty
containers & others are valued on the basis of realizable value, based on the engineering estimate. Provision for
obsolescence and slow moving inventory is made based on management’s best estimates of net realizable value of
such inventories.
1.4.8 INCOME TAXES
Income tax comprises current tax and deferred tax. Income tax is recognized in the Statement of Profit and Loss
except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which
case the tax is recognized in the same statement as the related item appears.
Calculation of Current Tax is based on tax rates and tax laws that have been enacted or substantively enacted by
the end of the reporting period.
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
balance sheet, and the amounts attributed to such assets and liabilities for tax purposes. Deferred tax is calculated
using the tax rates expected to apply in the periods in which the assets will be realized or the liabilities settled.
The Current Tax and Deferred Tax so calculated are adjusted for the uncertainty of tax treatment by the tax authorities
at each reporting date.
Deferred Tax Liabilities are generally recognised in full for all taxable temporary differences.
Deferred Tax Assets are recognised to the extent that it is probable that the underlying tax loss, unused tax credits
or deductible temporary difference will be utilized against future taxable income.
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 or credit.
1.4.9 FOREIGN CURRENCY TRANSLATION
Functional and Presentation Currency
The Standalone Financial Statements are presented in Indian Rupee (‘INR’), which is company’s functional Currency.
Foreign Currency Transactions and Balances
Foreign Currency transactions are recorded in the reporting Currency, by applying to the Foreign Currency amount,
the exchange rate between the Reporting Currency and the Foreign Currency at the date of the transaction.
Foreign Currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non¬
monetary items which are measured in terms of historical cost denominated in a Foreign Currency are reported
using the exchange rate at the date of the transaction.
Exchange differences arising on the settlement of monetary items, or on reporting such monetary items of the
Company at rates different from those at which they were initially recorded during the year, or reported in previous
Financial Statements, are recognized as Income/ Expenses in the year in which they arise.
Foreign Operations
For the foreign operations, all assets and liabilities are translated into INR using the exchange rate prevailing at the
reporting date and their Statement of Profit and Loss are translated at date of transaction/average rate prevailing over
the reporting period. Exchange differences are charged or credited to other comprehensive income and recognised
in the foreign currency translation reserve in equity.
1.4.10 POST-EMPLOYMENT BENEFITS AND SHORT-TERM EMPLOYEE BENEFITS
Defined Contribution Plan
Company’s Contribution paid/payable during the year to Provident Fund, EPS 1995 and Company’s Pension
Scheme is recognised in the Statement of Profit and Loss for the year in which the related services are rendered.
The same is paid to a fund administered through separate trusts and by EPFO.
Defined Benefit Plan
Company’s liability towards Gratuity, Post-Retirement Medical Benefits and TA on Superannuation are determined
by independent actuary, at the year-end using the Projected Unit Credit Method.
Actuarial gains or losses are recognised in the Other Comprehensive Income. Liability for Gratuity as per actuarial
valuation is paid to a fund administered through a separate Trust.
Other Long-Term Benefits
Company’s liability towards Leave (Earned and Sick) and Long Service Awards is determined by independent
actuary, at the year-end using the Projected Unit Credit Method. Actuarial gains or losses are recognised in the
Profit and Loss and Other Comprehensive Income respectively.
Short Term Employee Benefits
Short term benefits comprise of employee costs such as Salaries, Bonus, PLI, PRP and Short-term compensated
absences are accrued in the year in which the associated services are rendered by employees of the Company.
Employee Separation Costs
Ex-gratia to employees who have opted for retirement under the Voluntary Retirement Scheme of the Company is
charged to Statement of Profit and Loss in the year of acceptance of the option by the management.
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