2 Material Accounting Policies :
(i) Basis of Preparation
The standalone financial statements of the Company
have been prepared in accordance with the Companies
(Indian Accounting Standards) Rules 2015 ('IND AS')
issued by Ministry of Corporate Affairs ('MCA').
The standalone financial statements for the year ended
31 March 2025 were approved by the Board of
Directors on 28 May, 2025.
The standalone financial statements have been prepared
on a going concern basis in accordance with accounting
principles generally accepted in India. Further, the
standalone financial statements have been prepared on
historical cost basis except for certain financial assets,
financial liabilities, derivative financial instruments
and share based payments which are measured at fair
values as explained in relevant accounting policies. The
standalone financial statements are presented in
Rupees and all values are rounded to the nearest crore,
except when otherwise indicated. Amount having values
less than Rs. 50,000/- are shown as Rs. 0.00 crore.
(ii) Revenue Recognition
The Company follows IND AS 115 for revenue recognition.
Revenue towards satisfaction of a performance obligation
is measured at the amount of transaction price (net of
variable consideration) allocated to that performance
obligations. The transaction price of goods sold and
services rendered is net of variable consideration on
account of various discount and scheme as part of
contract.
Point of Time:
(a) Real estate projects
The company derives revenue from execution of
real estate projects. Revenue from Real Estate
project is recognised in accordance with IND AS 115
which establishes a comprehensive framework in
determining whether how much and when revenue is
to be recognised. Revenue from real estate projects
are recognised upon transfer of control of promised
real estate property to customer at an amount
that reflects the consideration which the company
expects to receive in exchange for such booking and
is based on following 6 steps :
1. Identification of contract with customers:-
The company accounts for contract with a
customer only when all the following criteria are
met:
- Parties (i.e. the company and the customer)
to the contract have approved the contract
(in writing, orally or in accordance with
business practices) and are committed to
perform their respective obligations.
- The company can identify each customer's
right regarding the goods or services to be
transferred.
- The company can identify the payment
terms for the goods or services to be
transferred.
- The contract has commercial substance
(i.e. risk, timing or amount of the company's
future cash flow is expected to change as a
result of the contract) and
- It is probable that the company will collect
the consideration to which it will be entitled
in exchange for the goods or services
that will be transferred to the customer.
Consideration may not be the same due to
discount rate etc.
2. Identify the separate performance obligation in
the contract:-
Performance obligation is a promise to transfer
to a customer:
• Goods or services or a bundle of goods or
services i.e. distinct or a series of goods
or services that are substantially the same
and are transferred in the same way.
• I f a promise to transfer goods or services
is not distinct from goods or services in
a contract, then the goods or services
are combined in a single performance
obligation.
• The goods or services that is promised to
a customer is distinct if both the following
criteria are met:
- The customer can benefit from the
goods or services either on its own or
together with resources that are readily
available to the customer (i.e. the
goods or services are capable of being
distinct) and
- The company's promise to transfer the
goods or services to the customer is
separately identifiable from the other
promises in the contract i.e the goods
or services are distinct within the
context of the contract.
3 Satisfaction of the performance obligation:-
The company recognizes revenue when (or as)
the company satisfies a performance obligation
by transferring a promised goods or services to
the customer.
The real estate properties are transferred when
(or as) the customer obtains control of the
property.
4 Determination of transaction price:-
The transaction price is the amount of
consideration to which the company expects
to be entitled in exchange for transferring
promised goods or services to customer
excluding GST.
The consideration promised in a contract with
a customer may include fixed amount, variable
amount or both. In determining transaction
price, the company assumes that goods or
services will be transferred to the customer
as promised in accordance with the existing
contract and the contract can't be cancelled,
renewed or modified.
5 Allocating the transaction price to the
performance obligation:-
The allocation of the total contract price to
various performance obligation are done
based on their standalone selling prices, the
standalone selling price is the price at which the
company would sell promised goods or services
separately to the customers.
6 Recognition of revenue when (or as) the company
satisfies a performance obligation:
Performance obligation is satisfied at a point
in time if none of the criteria out of the below
three not met.
- The customer simultaneously receives
and consumes a benefit provided by the
company's performance as the company
performs.
- The company's performance creates or
enhances an asset that a customer controls
as asset is created or enhanced or
- The company's performance doesn't
create an asset within an alternative use
to the company and the company has an
enforceable right to payment for
performance completed to date.
The company disaggregates revenue from
real estate projects on the basis of nature of
revenue.
Over a period of time:
Performance obligation is satisfied over time if one of the
criteria out of the following three is met:
- The customer simultaneously receives and
consumes a benefit provided by the company's
performance as the company performs.
- The company's performance creates or enhances an
asset that a customer controls as asset is created or
enhanced or
- The company's performance doesn't create an asset
within an alternative use to the company and the
company has an enforceable right to payment for
performance completed to date.
Therefore the revenue recognition for a performance
obligation is done over time if one of the criteria is
met out of the above three.
(a) Construction Projects
Construction projects where the Company is acting
as contractor, revenue is recognised in accordance
with the terms of the construction agreements.
Under such contracts, assets created does not
have an alternative use and the Company has an
enforceable right to payment. The estimated project
cost includes construction cost, development
and construction material and overheads of such
project. The Company uses cost based input method
for measuring progress for performance obligation
satisfied over time. Under this method, the Company
recognises revenue in proportion to the actual
project cost incurred as against the total estimated
project cost. 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. However, when the total project cost is
estimated to exceed total revenues from the project,
the loss is recognized immediately. As the outcome
of the contracts cannot be measured reliably during
the early stages of the project, contract revenue is
recognised only to the extent of costs incurred in the
statement of profit and loss.
(b) Lease Rental income
Revenue of Lease Rental is recognised over a period
of time on an accrual basis in accordance with the
terms of contract as and when the Company satisfies
performance obligations by delivery services as per
contractual agreed terms.
(c ) Project Management Fee
Project Management fee is accounted as revenue
upon satisfaction of performance obligation as per
agreed terms.
(d) Interest Income
Interest due on delayed payments by customers is
accounted on accrual basis except in cases where
ultimate collection is considered doubtful.
(e) Income from trading sales
Revenue from trading activities is accounted as
revenue upon satisfaction of performance obligation.
(f) Dividend income
Dividend income is recognized when the right to
receive the payment is established.
(iii) Borrowing Costs
Borrowing cost that are directly attributable to the
acquisition or construction of a qualifying asset
(including real estate projects) are considered as part of
the cost of the asset/project. All other borrowing costs
are treated as period cost and charged to the statement
of profit and loss in the year in which incurred.
(iv) Property, Plant and Equipment
Recognition and initial measurement
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. 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. All other repair and maintenance costs are
recognised in statement of profit or loss as incurred.
Transition to IND AS
On transition to IND AS, the Company elected to fair
value land within property, plant and equipment and
used its value as deemed cost.
Subsequent measurement (depreciation and useful
lives)
Property plant and equipment are subsequently
measured at cost net of accumulated depreciation and
accumulated impairment losses, if any. Depreciation on
Property Plant and Equipment is provided on written
down value method based on useful life of assets as
specified in Schedule II to the Companies Act, 2013 as
under:
The Company based on management estimates
depreciates certain item i.e. Shuttering Material
and scaffolding over estimated useful life of 5 years
considering obsolence as against 12 years specified in
Schedule II to Companies Act, 2013. The management of
the Company believes that the estimated useful life of 5
years is realistic and reflects fair approximation of the
period over which the assets are likely to be used.
De-recognition
An item of property, plant and equipment and any
significant part initially recognised is derecognized
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 income
statement when the asset is derecognized.
(v) Intangible Assets
Recognition and initial measurement
Intangible assets 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. Any trade discount and rebates are
deducted in arriving at the purchase price.
Subsequent measurement (amortization and useful
lives)
Intangible assets comprising of ERP & other computer
software are stated at cost of acquisition less
accumulated amortization and are amortised over a
period of four years on straight line method.
(vi) Impairment of Non-Financial Assets
The Company assesses at each balance sheet date
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. If such
recoverable amount of the asset or the recoverable
amount of the cash-generating unit to which the
asset belongs is less than it's carrying amount, the
carrying amount is reduced to its recoverable amount.
The reduction is treated as an impairment loss and is
recognized in the statement of profit and loss.
(a) 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. However, trade
receivables that do not contain a significant financing
component are measured at transaction price.
Subsequent measurement
(1) Financial instruments at amortised cost -
the financial instrument is measured at the
amortised cost if both the following conditions
are met:
(a) The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and
(b) 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 debt instruments are measured at
Fair Value through other comprehensive income
or Fair value through profit and loss based on
Company's business model.
(2) Investment in equity instruments of subsidiaries
(including partnership firms), joint ventures
and associates:
Investment in equity instruments of
subsidiaries, joint ventures and associates
are stated at cost as per IND AS 27 'Separate
Financial Statements'. Where the carrying
amount of an investment is greater than its
estimated recoverable amount, it is assessed
for recoverability and in case of permanent
diminution, provision for impairment is
recorded in statement of Profit and Loss. On
disposal of investment, the difference between
the net disposal proceeds and the carrying
amount is charged or credited to the Statement
of Profit and Loss.
(3) Other Equity investments - All other equity
investments in scope of IND AS 109 are
measured at fair value. Equity instruments
which are held for trading are generally
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). The Company makes such
election on an instrument by instrument basis.
The classification is made on initial recognition
and is irrevocable.
(4) 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.
(b) Financial liabilities
Initial recognition and measurement
All financial liabilities are recognised initially at
fair value and transaction cost that are attributable
to the acquisition of the financial liabilities are
also adjusted. These liabilities are carried at as
amortised cost.
Subsequent measurement
Subsequent to initial recognition, these liabilities
are measured at amortised cost using the effective
interest method. These liabilities include borrowings
and deposits.
A financial liability is de-recognised when the
obligation under the liability is discharged or
cancelled or expired. When an existing financial
liability is replaced by another from the same lender
on substantially different terms, or on 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 or loss.
(c ) Compound financial instrument
Compound financial instrument are separated into
liability and equity components based on the terms
of the contract. On issuance of the said instrument,
the liability component is arrived by discounting the
gross sum at a market rate for an equivalent non¬
convertible instrument. This amount is classified as
a financial liability measured at amortised cost until
it is extinguished on conversion or redemption. The
remainder of the proceeds is recognised as equity
component of compound financial instrument. This
is recognised and included in shareholders' equity,
net of Income tax effects, and not subsequently re¬
measured.
(d) Financial guarantee contracts
Financial guarantee contracts are those contracts
that require a payment to be made to reimburse the
holder for a loss it incurs because the specified party
fails to make a payment when due in accordance with
the terms of a debt instrument. Financial guarantee
contracts are recognised initially as a liability at
fair value, adjusted for transaction costs that are
directly attributable to the issuance of the guarantee.
Subsequently, the liability is measured at the higher
of the amount of expected loss allowance determined
as per impairment requirements of Ind-AS 109 and
the amount recognised less cumulative amortization.
(e) Impairment of financial assets
The Company assesses on a forward looking basis
the expected credit losses associated with its
assets carried at amortised cost and FVOCI debt
instruments. The impairment methodology applied
depends on whether there has been a significant
increase in credit risk. Note 53 details how the
Company determines whether there has been a
significant increase in credit risk.
For trade receivables only, the Company applies
the simplified approach permitted by IND AS 109
Financial Instruments, which requires expected
lifetime losses to be recognised from initial
recognition of the receivables.
(f) 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 realize the assets and settle
the liabilities simultaneously.
(viii) Fair value measurement
Fair value is the price that would be received to sell as
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the
liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most
advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.
A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.
The company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
date are available to measure fair value, maximizing the
use of relevant observable inputs:
• Level 1- Quoted (unadjusted) market prices in active
markets for identical assets or liabilities
• Level 2- Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable
• Level 3- Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognized in the
financial statements on a recurring basis, the Company
determines whether transfer have occurred between
levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.
For the purpose of fair value disclosure, the Company
has determined classes of assets and liabilities on the
basis of nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.
(ix) Inventories and Projects in progress
(a) Inventories
(i) Building material and consumable stores are
valued at lower of cost and net realisable value.
Cost is determined on the basis of the 'First in
First out' method.
(ii) Land is valued at lower of cost and net realisable
value. Cost is determined on average method.
Cost includes cost of acquisition and all related
costs.
(iii) Construction work in progress is valued at lower
of cost and net realisable value. Cost includes
cost of materials, services and other related
overheads related to project under construction.
(iv) Completed real estate project for sale is valued
at lower of cost and net realizable value. Cost
includes cost of land, materials, construction,
services and other related overheads.
(v) Stock in trade is valued at lower of cost and net
realisable value.
(b) Projects in progress
Projects in progress are valued at lower of cost and net
realisable value. Cost includes cost of land, development
rights, materials, construction, services, borrowing
costs and other overheads relating to projects.
(x) Non-current assets held for sale
The Company classifies non-current assets and disposal
groups as held for sale if their carrying amounts will
be recovered principally through a sale/ distribution
rather than through continuing use. Actions required
to complete the sale/ distribution should indicate that
i t i s unlikely that sig nifi can t chang es to the sale wi ll
be mad e or that the d ecision to sell will be withdrawn .
Management must be committed to the sale expected
within one year from the date of classification.
For these purposes, sale transactions include exchanges
of non-current assets for other non- current assets when
the exchange has commercial substance. The criteria for
held for sale classification is regarded met only when
the assets or disposal group is available for immediate
sale in its present condition, subject only to terms that
are usual and customary for sales/ distribution of such
assets (or disposal groups), its sale is highly probable and
it will genuinely be sold, not abandoned. The Company
treats sale of the asset or disposal group to be highly
probable when:
- The appropriate level of management is committed
to a plan to sell the asset (or disposal group);
- An active programme to locate a buyer and complete
the plan has been initiated;
- The asset (or disposal group) is being actively
marketed for sale at a price that is reasonable in
relation to its current fair value,
- The sale is expected to qualify for recognition as
a completed sale within one year from the date of
classification; and
- Actions required to complete the plan indicate that it
is unlikely that significant changes to the plan will be
made or that the plan will be withdrawn.
Non-current assets held for sale and disposal groups
are measured at the lower of their carrying amount and
the fair value less costs to sell. Assets and liabilities
classified as held for sale are presented separately in the
balance sheet.
Property, plant and equipment and intangible assets once
classified as held for sale to owners are not depreciated
or amortised.
(xi) Foreign currency transactions
(a) Functional and presentation currency
The financial statements are presented in currency
INR, which is also the functional currency of the
Company and presented in Crore.
(b) Foreign currency transactions and balances
i. Foreign currency transactions are recorded at
exchange rates prevailing on the date of respective
transactions.
ii. Financial assets and financial liabilities in foreign
currencies existing at balance sheet date are
translated at year-end rates.
iii. Foreign currency translation differences related to
acquisition of imported fixed assets are adjusted
in the carrying amount of the related fixed assets.
All other foreign currency gain and losses are
recognised in the statement of profit and loss.
(xii) Retirement benefits
i. Contributions payable by the Company to the concerned
government authorities in respect of provident fund,
family pension fund and employee state insurance are
charged to the statement of profit and loss.
ii. The Company is having Group Gratuity Scheme with Life
Insurance Corporation of India. Provision for gratuity is
made based on actuarial valuation in accordance with
IND AS-19.
iii. Provision for leave encashment in respect of unavailed
leave standing to the credit of employees is made on
actuarial basis in accordance with IND AS-19.
iv. Actuarial gains/loss resulting from re-measurement of
the liability/asset are included in other comprehensive
income.
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