2.2 SUMMARY OF MATERIAL ACCOUNTING POLICIES

A. Financial Instruments

i) Financial Assets

Financial assets comprise investments in equity instruments, mutual funds, security deposits, inter-corporate deposits, trade receivables, cash
& cash equivalents and other eligible assets.

Initial recognition and measurement

All financial assets are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset (other than
financial assets recorded at fair value through profit or loss) are included in the fair value of the financial assets. Purchase or sale 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.

Subsequent Measurement:

- Financial Assets measured at amortised cost: Financial assets held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payment of principal and interest (SPPI) on principal amount outstanding are measured at amortised cost using effective interest rate (EIR)
method.

They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non¬
current assets. These financial assets are subsequently carried at amortized cost using the effective interest method, less any impairment loss.
The EIR amortisation is recognised as finance income in the Statement of Profit and Loss.

Assets at amortised cost are represented by Inter-corporate deposits, trade receivables, security deposits, cash and cash equivalents and
other eligible current and non-current financial assets.

- Financial assets at fair value through other comprehensive income (FVTOCI): Financial assets held within a business model whose
objective is achieved by both collecting the contractual cash flows and selling the financial assets and the contractual terms of the financial
assets give rise on specified dates to cash flows that are solely payment towards principal and interest (SPPI) on principal outstanding are
subsequently measured at FVTOCI. Fair value movements in financial assets at FVTOCI are recognised in other comprehensive income.
However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain/loss in statement of profit and
loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from equity to profit and loss. Interest
earned is recognised under the expected interest rate (EIR) model.

- Equity instruments other than investment in associates: The management determines at the initial recognition of investments in Equity
instruments whether to measure it at FVTPL or FVTOCI. However, the equity instruments held for trading are always classified at fair value
through Profit or Loss (FVTPL). The classification of investments at FVTOCI is irrevocable. Fair value changes on equity instruments at
FVTOCI, excluding dividends, are recognised in other comprehensive income (OCI). On derecognition of the equity instrument measured at
FVTOCI, cumulative gain or loss previously recognised in OCI are not subsequently transferred to P&L. However, the company may transfer
the cumulative gain or loss within equity.

- Financial assets at fair value through Profit or Loss (FVTPL): Financial assets are measured at FVTPL if it does not meet the criteria
for classification as measured at amortised cost or at fair value through other comprehensive income. Fair value changes are recognised in
Statement of Profit and Loss. Derivative financial instruments are always measured at FVTPL.

Derecognition of financial assets:

Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or the financial asset is
transferred and the transfer qualifies for derecognition. On derecognition of financial asset in its entirety the difference between the carrying
amount (measured at the date of derecognition) and the consideration received (including any new asset obtained less any new liability
assumed) is recognised in Statement of Profit and Loss.

Impairment of financial assets:

Trade receivables, contract assets, receivables under Ind AS 109, investments in debt instruments that are carried at amortised cost,
investments in debt instruments that are carried at FVTOCI are tested for impairment based on the expected credit losses (ECL) for the
respective financial asset. ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense in the
Statement of Profit and Loss. The approach followed by the company for recognising the impairment loss is given below:

a) Trade receivables

An impairment analysis is performed at each reporting date. The expected credit losses over lifetime of the asset are estimated by adopting the
simplified approach using a provision matrix which is based on historical loss rates reflecting current condition and forecasts of future economic
conditions. The company estimates the following provision matrix at the reporting date:

b) Other financial assets

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a
significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment
loss allowance based on 12 month ECL.

ii) Financial liabilities:

Financial liabilities comprise trade payables and other eligible liabilities.

Initial recognition and measurement:

Financial liabilities are initially recognised at fair value. Any transaction costs that are attributable to the acquisition of the financial liabilities
(except financial liabilities at fair value through profit or loss) are deducted from the fair value of financial liabilities.

Subsequent measurement

i) Financial liabilities at amortised cost: The Company has classified the following under amortised cost:

a) Trade payables

b) Other eligible financial liabilities

Amortised cost for financial liabilities represents amount at which financial liability is measured at initial recognition minus the cumulative
amortisation using the effective interest rate (EIR) method of any difference between that initial amount and the maturity amount.

- Financial liabilities at fair value through profit or loss (FVTPL): Financial liabilities at fair value through profit or loss include financial
liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities
are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of
recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to
changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the company may
transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or
loss. The company has not designated any financial liability as at fair value through profit and loss.

Derecognition of financial liabilities

A financial liability shall be derecognised when, and only when, it is extinguished i.e. when the obligation specified in the contract is
discharged or cancelled or expires.

iii) Off setting of financial assets and financial liabilities:

Financial assets and liabilities are offset and the net amount is presented in the balance sheet when, and only when, the Company has a
legal enforceable right to offset the recognised amounts and intends either to settle on a net basis or to realize the assets and settle the
liability simultaneously.

iv) Reclassification of financial assets

The Company determines the classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification
is made for financial assets which are categorised as equity instruments at FVTOCI and financial assets or financial liabilities that are
specifically designated at FVTPL. For financial assets, which are debt instruments, a reclassification is made only if there is a change in the

business model for managing those assets. Changes to the business model are expected to be infrequent. The management determines
change in the business model as a result of external or internal changes which are significant to the Company's operations. A change in the
business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the company
reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of immediately
next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.

B. Property, Plant and Equipment

Property, Plant and Equipment is carried at cost less accumulated depreciation and accumulated impairment losses. The cost comprises its
purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its
working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price. Cost of self constructed
asset include the cost of material, direct labour and any other costs directly attributable to bringing the asset to its working condition for its
intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that
is integral to the functionality of the related equipment is capitalised as part of the equipment.

Gains and losses on disposal of an item of Property, Plant and Equipment are determined by comparing the proceeds from disposal with the
carrying amount of Property, Plant and Equipment and are recognised net within “Other income/ Other expenses” in the Statement of Profit
and Loss

The cost of property, plant and equipment not ready for intended use before such date are disclosed under capital work- in-progress.
Subsequent costs

The cost of replacing part of an item of Property, Plant and equipment is recognised in the carrying amount of the item if it is probable that the
future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the
replaced part is de-recognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in the Statement of Profit
and Loss.

Depreciation

Depreciation on property, plant and equipment is provided on pro-rata basis using written down value method using the rates worked out based
on the useful life and in the manner prescribed in the Schedule II to the Companies Act, 2013.

The estimated useful lives of assets for the current and comparative period of significant items of property, plant and equipment are as follows:

The company follows component approach as envisaged in Schedule II to the Companies Act, 2013. The approach involves identification of
components of the asset whose cost is significant to the total cost of the asset and have useful life different from the useful life of the remaining
assets and in respect of such identified components, useful life is determined separately from the useful life of the main asset.

Assets acquired under finance lease and leasehold improvements are amortized over the lower of estimated useful life and lease term.

Depreciation on additions is provided on a pro-rata basis from the month of acquisition/installation. Depreciation on sale/deduction from property,
plant and equipment is provided for up to the date of sale/adjustment, as the case may be.

Modification or extension to an existing items of property, plant and equipment, which is of capital nature and which becomes an integral part
thereof is depreciated prospectively over the remaining useful life of that asset.

The depreciation method, useful lives and residual value are reviewed at each of the reporting date.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances
under other non-current assets and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress'. Repairs
and maintenance costs are recognized in the Statement of Profit and Loss when incurred. The cost and related accumulated depreciation are
eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement
of Profit and Loss.

C. Intangible assets

Intangible asset are carried at cost of acquisition less amortisation. The cost of an item of intangible asset comprises its purchase price, including
import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its
intended use; any trade discounts and rebates are deducted in arriving at the purchase price.

Amortisation of Intangible assets

Intangible assets are amortised on straight line method on pro-rata basis over a period of three years.

D. Investment property

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are
stated at cost less accumulated depreciation and accumulated impairment loss, if any.

The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria are met. When
significant parts of the investment property are required to be replaced at intervals, the Company depreciates them separately based on their
specific useful lives. All other repair and maintenance costs are recognised in profit or loss as incurred.

The Company depreciates building component of investment property over 60 years on written down value basis from the date of original
purchase as per the requirement of Schedule II of the Companies Act, 2013. The leasehold investment properties are amortised over the term
of the lease.

Though the Company measures investment property using cost based measurement, the fair value of investment property is disclosed in the
notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer.

Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no
future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the
asset is recognised in profit or loss in the period of derecognition.

E. Investment in associate

Investment in associate is recognised at cost less impairment. Dividend income from associate is recognised when its right to receive the
dividend is established.

F. Inventories

Inventories are valued as under:

-Land and plots other than area transferred to construction work-in-progress of constructed properties are valued at lower of cost or
net realisable value. Cost includes land acquisition cost and land development cost. Cost of land and plots is determined on specific
identification basis.

-Construction work-in-progress of constructed properties include the cost of land, internal development costs, external development
charges, construction costs, overheads, borrowing cost, development/construction materials and is valued at lower of cost/estimate cost
and net realisable value.

-Trading of real estate- the cost includes purchase and other costs in bringing the inventory in their present location and condition. Cost
is determined specific identification basis.

G. Foreign currency transactions and balances

Transactions in foreign currencies are initially recognised in the standalone financial statements using exchange rates prevailing on the
date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the relevant functional currency
at the exchange rates prevailing at the reporting date. Non- monetary assets and liabilities denominated in foreign currencies that are
measured at fair value are retranslated to the functional currency at the exchange rate prevailing on the date that the fair value was
determined. Non- monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the
exchange rate prevalent at the date of transaction. Foreign currency differences arising on translation are recognised in the Statement of
Profit and Loss for determination of net profit or loss during the period.

H. Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part
of the cost of that asset. Other borrowing costs are recognized as expenses in the period in which they are incurred. To the extent the
Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Company determines the amount
of borrowings costs eligible for capitalization by applying a capitalization rate to the expenditure incurred on such asset. The capitalization
rate is determined based on the weighted average of borrowing costs applicable to the borrowings of the Company which are outstanding
during the period, other than borrowings made specifically towards purchase of the qualifying asset. The amount of borrowing costs that
the Company capitalizes during a period does not exceed the amount of borrowing costs incurred during that period.

I. Leases

The company as a lessee

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

To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract
involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the

period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for
all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value
leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight¬
line basis over the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and
lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful
life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the
fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows
that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating
Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates of the company.
Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment
if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing
cash flows for the purpose of Cash Flow Statement

The Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are
classified as operating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease
is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

J. Deposits provided to lessor

The company is generally required to pay refundable security deposits in order to obtain property leases from various lessor. Such
security deposits are financial assets and are recorded at fair value on initial recognition. The difference between the initial fair value and
the refundable amount of the deposit is recognized as a lease prepayment. The initial fair value is estimated as the present value of the
refundable amount of security deposit, discounted using the market interest rates for similar instruments.

Subsequent to initial recognition, the security deposit is measured at amortized cost using the effective interest method with the carrying
amount increased over the lease period up to the refundable amount. The amount of increase in the carrying amount of deposit is
recognized as interest income. The lease prepayment is amortized on a straight line basis over the lease term as lease rental expense.

K. Revenue

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration
we expect to receive in exchange for those products or services.

Revenue from the sale of Flats/Plots is measured at the fair value of the consideration received or receivable, net of returns, trade
discounts and volume rebates.

Interest income is recognized as it accrues in Statement of Profit and Loss using the effective interest method.

L. Impairment of non-financial assets

The carrying amount of the Company's non-financial assets, other than deferred tax assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.

The recoverable amount of an asset or cash generating unit is the greater of its value in use and its fair value less costs to sell. In
assessing value in use, the estimated future cash flows are discounted to present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risk specific to the asset. For the purpose of impairment testing, assets that
cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from the continuing use
that are largely independent of cash inflows of other assets or group of assets (the cash generating unit).

An impairment loss is recognized if the carrying amount of an asset or its cash generating unit exceeds its estimated recoverable amount.
Impairment losses are recognised in the Statement of Profit and Loss. Impairment losses are recognised in respect of cash generating

units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of
the other assets in the unit or group of units on a pro rata basis.

Reversal of impairment loss

Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no
longer exists.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss
is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined,
net of depreciation or amortization, if no impairment loss had been recognized directly in other comprehensive income and presented
within equity.

M. Earnings per share (EPS)

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period.

Diluted earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered
for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially
dilutive equity shares are adjusted for bonus shares, as appropriate.

N. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash on hand, cash at banks, demand deposits, short-term deposits with an
balance maturity of three months or less as at the balance sheet date, which are subject to an insignificant risk of changes in value.

For the purpose of Statement of Cash Flows, cash and cash equivalents comprise cash on hand, cash at banks, demand deposits, short¬
term deposits with an balance maturity of three months or less as at the balance sheet date and other short term investments, that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

O. Employee Benefits

i) Short Term Benefits

Employee benefits (other than post employment benefits) which fall due wholly within twelve months after the end of the year in
which the employees render the related service are recognized at the amount expected to be paid for it.

ii) Post Employment Benefits

The Company participates in various employee benefit plans. Post-employment benefits are classified as either defined contribution
plans or defined benefit plans. Under a defined contribution plan, the Company's only obligation is to pay a fixed amount with no
obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial
risks fall on the employee. The expenditure for defined contribution plans is recognized as expense during the period when the
employee provides service. Under a defined benefit plan, it is the Company's obligation to provide agreed benefits to the employees.
The related actuarial and investment risks fall on the Company. The present value of the defined benefit obligations is calculated
using the projected unit credit method.

The Company has the following post employment benefit plans:

Gratuity

In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to eligible employees, at
retirement or termination of employment based on the last drawn salary and years of employment with the Company. The Company's
obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the
projected unit credit method. Actuarial gains or losses are recognized in other comprehensive income and are not reclassified to
profit or loss in subsequent periods.

iii) Other long term employee benefits
Earned Leave Encashment and Sick Leave

The employees of the Company are entitled to earned leaves and sick leaves. The employees can carry forward a portion of the
unutilised earned leaves and utilise it in future periods or receive cash at retirement or termination of employment. The employees
can carry forward the unutilised sick leaves and utilise it in future periods and it lapses at retirement or termination of employment.
The Company records an obligation for earned leave and sick leaves in the period in which the employee renders the services that
increases this entitlement. The Company measures the expected cost of earned leave and sick leave as the additional amount that
the Company expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. The
Company recognizes accumulated earned leave and sick leave based on actuarial valuation. Non-accumulating leave encashment
are recognized in the period in which the absences occur. The Company recognizes actuarial gains and losses immediately in the
statement of profit and loss.