2a. MATERIAL ACCOUNTING POLICIES
I Basis of Preparation

a. The standalone financial statements of the Company
has been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015 read with Section 133
of the Companies Act 2013 (as amended from time to time)
and presentation requirements of Division II of Schedule III
to the Companies Act, 2013, (Ind AS compliant Schedule III),
as applicable to this financial statements.

b. The financial statements are prepared on a historical cost
basis, except for:

i. Certain financial assets and liabilities that are measured
at fair value (refer accounting policy regarding financial
instruments).

ii. Defined benefit plans - plan assets measured at fair
value.

c. Current / Non-Current Classification

The Company presents assets and liabilities in the balance
sheet based on current / non-current classification.

An asset is treated as current when it is:

• Expected to be realized or intended to be sold or
consumed in normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realised within twelve months after the
reporting period, or

• Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

• it is expected to be settled in normal operating cycle.

• it is held primarily for the purpose of trading.

• it is due to be settled within twelve months after the
reporting period, or

• there is no unconditional right to defer its settlement for
atleast twelve months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non¬
current.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash and
cash equivalents. The normal operating cycle in respect
of a real estate project under development depends on
various factors like signing of sale agreements, size of
the project, phasing of the project, type of development,
project-specific complexities, technical and engineering
factors, statutory approvals needed and the realization of
the project receivables into cash & cash equivalents. Based
on these factors, the normal operating cycle is generally in
the range of 3 to 7 years. Accordingly project related assets
& liabilities are classified as current and non-current based
on operating cycle of the respective projects. All other assets
and liabilities are classified as current or non- current based
on an operating cycle of twelve months.

d. Functional and Presentation Currency

The financial statements are presented in Indian Rupee
("INR”) which is also the functional currency of the Company.
All values are rounded off to the nearest lakhs.

II MEASUREMENT OF FAIR VALUES

The Company measures financial instruments, such as
certain investments at fair value at each balance sheet
date. Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
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 principal
or the most advantageous market must be accessible by the
Company.

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 data are
available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable
inputs.

The Company has an established control framework with
respect to the measurement of fair values. The Management
regularly reviews significant unobservable inputs and
valuation adjustments. If third party information is used
to measure fair values, then the Management assesses
the evidence obtained from third parties to support the
conclusion that such valuations meet the requirements of
Ind AS, including the level in the fair value hierarchy in which
such valuations should be classified.

When measuring the fair value of a financial asset or a
financial liability, the Company uses observable market data
as far as possible. Fair values are categorised into different
levels in a fair value hierarchy based on the inputs used in
the valuation techniques as follows.

Level 1: Quoted prices in active markets for identical assets
or liabilities.

Level 2: Inputs other than quoted prices included in Level 1
that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the asset or liability that are not based on
observable market data.

If the inputs used to measure the fair value of an asset or a
liability fall into different levels of the fair value hierarchy,
then the fair value measurement is categorised in its entirety
in the same level of the fair value hierarchy as the lowest
level input that is significant to the entire measurement.

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

III. Property, Plant and Equipment & Depreciation

a. Recognition and Measurement

Items of property, plant and equipment are stated at cost
less accumulated depreciation and impairment losses, if
any. The cost of an item of property, plant and equipment
comprises of:

i. its purchase price, including import duties and non¬
refundable purchase taxes after deducting trade discounts
and rebates.

ii. any costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of
operating in the manner intended by Management.

iii. the initial estimate of the costs of dismantling and removing
the item and restoring the site on which it is located, the
obligation for which the Company incurs either when the
item is acquired or as a consequence of having used the item

d. Reclassification to Investment Property

When the use of a property changes from owner occupied
to investment property, the property is reclassified as
investment property at its carrying value on the date of
reclassification.

e. Derecognition

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 derecognition
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 when the asset
is derecognised.

IV. Investment Property

Investment property is property held to earn rental income
or for capital appreciation or for 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.

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

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
properties 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.

Based on technical evaluation and consequent advice, the
Management believes a period of 60 years as representing
the best estimate of the period over which investment
properties are expected to be used. Accordingly, the Company
depreciates investment property over a period of 60 years.

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

Investment properties are de-recognized either when they
have been disposed off 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 recognized in profit or loss in the period of de-recognition.

V. Intangible Assets

a. Recognition and Measurement

Intangible assets are carried at cost less accumulated
amortisation and impairment losses, if any. The cost of an

intangible asset comprises of its purchase price including any
import duties and other taxes (other than those subsequently
recoverable from the taxing authorities) and any directly
attributable expenditure on making the asset ready for its
intended use.

Expenditure on research and development eligible for
capitalisation are carried as intangible assets under
development where such assets are not yet ready for their
intended use.

b. Subsequent Expenditure

Subsequent expenditure is capitalized only if it is probable
that the future economic benefits associated with the
expenditure will flow to the Company.

c. Amortisation

Intangible assets are amortised over their estimated useful
lives on a straight line basis, not exceeding 7 years commencing
from the date the asset is available to the Company for its use.
The amortization period and the amortization method for an
intangible asset with a finite useful life are reviewed atleast at
the end of each reporting period.

VI. NON CURRENT ASSET HELD FOR SALE

The Company classifies non-current assets as held for sale if
their carrying amounts will be recovered principally through
a sale rather than through continuing use.

Non-current assets classified as held for sale are measured
at the lower of their carrying amount and fair value less
costs to sell. Costs to sell are the incremental costs directly
attributable to the disposal of an asset, excluding finance
costs and income tax expense.

The criteria for held for sale classification is regarded as
met only when the sale is highly probable, and the asset
is available for immediate sale in its present condition.
Actions required to complete the sale / distribution should
indicate that it is unlikely that significant changes to the sale
will be made or that the decision to sell will be withdrawn.
Management must be committed to the sale and 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 asset is
available for immediate sale in its present condition, subject
only to terms that are usual and customary for sales of such
assets, its sale is highly probable; and it will genuinely be
sold, not abandoned. The Company treats sale of the asset
to be highly probable when:

• The appropriate level of management is committed to a
plan to sell the asset,

• An active programme to locate a buyer and complete
the plan has been initiated (if applicable),

• The asset 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.

Property, plant and equipment and intangible are not
depreciated, or amortised assets once classified as held
for sale. Assets and liabilities classified as held for sale are
presented separately from other items in the Balance Sheet.

VII. Financial Instruments

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity. Financial assets and financial
liabilities are recognised when the Company becomes a party
to the contractual provisions of the instruments.

Financial assets except trade receivable and financial
liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities are added
to or deducted from the fair value of the financial assets
or financial liabilities, as appropriate, on initial recognition.
Trade Receivable that do not contain a significant financing
component are measured at transaction price. Transaction
costs directly attributable to the acquisition of financial
assets or financial liabilities measured at fair value through
profit or loss are recognized immediately in the statement
of profit and loss.

A. Financial Assets

All regular way purchases or sales of financial assets are
recognised and derecognised on a trade date basis. Regular
way purchases or sales are purchases or sales of financial
assets that require delivery of assets within the time frame
established by regulation or convention in the market place.
All recognised financial assets are subsequently measured in
their entirety at either amortised cost or fair value, depending
on the classification of the financial assets.

i. Financial Assets at Amortised Cost

Financial assets are subsequently measured at amortised
cost using the effective interest rate method if these financial
assets are held within a business whose objective is to hold
these 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 payments of
principal and interest on the principal amount outstanding.

ii. Financial Assets at Fair Value through Profit or Loss
(FVTPL)

Investments in equity instruments are classified as at FVTPL,
unless the Company irrevocably elects on initial recognition
to present subsequent changes in fair value in other
comprehensive income for investments in equity instruments
which are not held for trading. Other financial assets are
measured at fair value through profit or loss unless it is
measured at amortised cost or at fair value through other
comprehensive income on initial recognition.

iii. Investment in Subsidiaries, Jointly Controlled Entities
and Associates

Investment in subsidiaries, jointly controlled entities and
associates are measured at cost less impairment as per Ind
AS 27 - Separate Financial Statements.

iv. Impairment of Investments

The Company reviews its carrying value of investments
carried at cost annually, or more frequently when there is
indication for impairment. If the recoverable amount is less
than its carrying amount, the impairment loss is accounted
in the statement of profit and loss.

v. Derecognition

A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the Company's balance
sheet) when:

- the right to receive cash flows from the asset have
expired, or

- the Company has transferred its right to receive cash
flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to
a third party under a 'pass-through' arrangement; and
either (a) the Company has transferred substantially all
the risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred
control of the asset.

When the Company has transferred its right to receive cash
flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained
the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and
rewards of the asset, nor transferred control of the asset, the
Company continues to recognise the transferred asset to the
extent of the Company's continuing involvement. In that case,
the Company also recognises an associated liability. The
transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the
Company has retained.

vi. Impairment of Financial Assets

The Company assesses at each date of balance sheet whether
a financial asset or a group of financial assets is impaired.
Ind AS 109 requires expected credit losses to be measured
through a loss allowance. The Company recognises lifetime
expected losses for all contract assets and / or all trade
receivables that do not constitute a financing transaction.
For all other financial assets, expected credit losses are
measured at an amount equal to the 12 month expected
credit losses or at an amount equal to the life time expected
credit losses if the credit risk on the financial asset has
increased significantly since initial recognition.

B. Financial Liabilities and Equity Instruments

i. Classification as Debt or Equity

Debt and equity instruments issued by a Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability and
an equity instrument.

ii. Equity Instruments

An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Company are
recognised at the proceeds received, net of direct issue costs.

iii. Financial Liabilities

All financial liabilities are recognised initially at fair value
and in case of financial liabilities at amortised cost, net of
directly attributable transaction costs. All financial liabilities
are subsequently measured at amortised cost using the
effective interest method. Gains and losses are recognised
in statement of profit and loss when the liabilities are
derecognised as well as through the Effective Interest Rate
(EIR) amortisation process. Amortised cost is calculated by
taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the statement of
profit and loss.

iv. Compound Financial Instruments

The component parts of compound instruments (optionally
convertible debentures) issued by the Company are classified
separately as financial liabilities and equity in accordance
with the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument.
A conversion option that will be settled by the exchange of
a fixed amount of cash or another financial asset for a fixed
number of the Company's own equity instruments is an
equity instrument.

At the date of issue, the fair value of the liability component
is estimated using the prevailing market interest rate for
similar non-convertible instruments. This amount is recorded
as a liability on an amortised cost basis using the effective
interest method until extinguished upon conversion or at the
instrument's maturity date.

The conversion option classified as equity is determined by
deducting the amount of the liability component from the
fair value of the compound instrument as a whole. This is
recognised and included in equity, net of income tax effects,
and is not subsequently remeasured. In addition, the
conversion option classified as equity will remain in equity until
the conversion option is exercised, in which case, the balance
recognised in equity will be transferred to other component
of equity. When the conversion option remains unexercised at
the maturity date of the convertible instrument, the balance
recognised in equity will be transferred to retained earnings.
No gain or loss is recognised in statement of profit and loss
upon conversion or expiration of the conversion option.

Transaction costs that relate to the issue of the convertible
instruments are allocated to the liability and equity
components in proportion to the allocation of the gross
proceeds. Transaction costs relating to the equity component
are recognised directly in equity. Transaction costs relating
to the liability component are included in the carrying amount
of the liability component and are amortised over the lives of
the convertible instrument using the effective interest method.

v. Derecognition

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

C. Reclassification of Financial Assets and Liabilities

The Company determines classification of financial assets
and liabilities on initial recognition. After initial recognition,
no reclassification is made for financial assets which are
equity instruments and financial liabilities. 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 Company's senior
management determines change in the business model as a
result of external or internal changes which are significant
to the Company's operations. Such changes are evident to
external parties. 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 the 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.

D. 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.

VIII. Inventories

Direct expenditure relating to Real Estate Development
activity is inventorized. Other expenditure (including
borrowing costs) during construction period is inventorized
to the extent the expenditure is directly attributable cost of
bringing the asset to its working condition for its intended
use. Other expenditure (including borrowing costs) incurred
during the construction period which is not directly
attributable for bringing the asset to its working condition for
its intended use is charged to the statement of profit and loss.
Direct and other expenditure is determined based on specific
identification to the construction and real estate activity. Cost
incurred / items purchased specifically for projects are taken
as consumed as and when incurred / received.

a. Inventories comprise of: (i) Finished Realty Stock
representing unsold premises in completed projects
(ii) Realty Work in Progress representing properties
under construction / development including land held for
development on which construction activities are yet to
commence and (iii) Raw Material representing inventory
of materials for use in construction which are yet to be
consumed.

b. Inventories other than Raw Material above are valued at
lower of cost and net realisable value. Raw Materials are
valued on a weighted average cost basis.

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

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

Net realizable value is the estimated selling price in the
ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the sale.

IX Revenue Recognition

a. Revenue from Contract with Customers

Revenue is recognized to the extent it is probable that the
economic benefits will flow to the Company and the revenue
can be reliably measured. Revenue towards satisfaction of
a performance obligation is measured at the amount of the
transaction price allocated to that performance obligation.
The transaction price is net of variable consideration on
account of various discounts and scheme offered by the
Company. Revenue is accounted excluding taxes or duties
collected on behalf of the government.

The Company recognizes revenue from contracts with
customers based on a five step model as set out in Ind AS 115.

The Company assesses its revenue arrangements against
specific criteria to determine if it is acting as principal or
agent. The Company has concluded that it is acting as a
principal in all of its revenue arrangements.

The Company generates revenue from Real estate
construction contracts. The sale of completed property is
generally expected to be the only performance obligation
and the Company has determined that it will be satisfied at
the point in time when control transfers.

Contract Balances

Contract asset is the right to consideration in exchange
for goods or services transferred to the customer. If the
Company performs by transferring goods or services to a
customer before the customer pays consideration or before
payment is due, a contract asset is recognised for the earned
consideration that is conditional.

Trade receivable represents the Company's right to an
amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the
consideration is due).

Contract liability is the obligation to transfer goods or
services to a customer for which the Company has received
consideration (or an amount of consideration is due) from
the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a
contract liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract liabilities
are recognised as revenue when the Company performs
under the contract.

Cost to Obtain a Contract

The Company recognises as an asset the incremental costs
of obtaining a contract with a customer if the Company
expects to recover those costs. The Company incurs costs
such as sales commission when it enters into a new contract,
which are directly related to winning the contract. The
asset recognised is amortised on a systematic basis that is
consistent with the transfer to the customer of the goods or
services to which the asset relates.

b. Interest income is accounted on an accrual basis at effective
interest rate (EIR method).

c. Dividend income is recognized when the right to receive the
payment is established.

d. Rent income, Service fees and PMC / Marketing fees are
accounted on accrual basis over tenure of the lease / service
agreement.

X. Income Tax

Income Tax expense comprises current and deferred tax. It
is recognised in Statement of Profit and Loss except to the
extent that it relates to items recognised directly in Equity
or in Other Comprehensive Income.

a. Current Tax

Current Tax comprises the expected tax payable or
receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect
of previous years. It is measured using tax rates enacted or
substantively enacted at the reporting date. Current tax also
includes any tax arising from dividends.

Current tax assets and liabilities can be offset only if the
Company

i. has a legally enforceable right to set off the recognised
amounts and

ii. intends either to settle on a net basis or to realise the
asset and settle the liability simultaneously.

b. Deferred Tax

Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes at the reporting date.

Deferred tax assets are recognised for unused tax credits
and deductible temporary differences to the extent that it is
probable that future taxable profits will be available against
which they can be used. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realised
such reductions are reversed when the probability of future
taxable profits improves.

Unrecognised deferred tax assets are reassessed at each
reporting date and recognised to the extent that it has
become probable that future taxable profits will be available
against which they can be used.

Deferred tax is measured at the tax rates that are expected to
be applied to temporary differences when they reverse using
tax rates 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:

(i) The Company has a legally enforceable right to set off
current tax assets against current tax liabilities and

(ii) The deferred tax assets and the deferred tax liabilities relate
to income taxes levied by the same taxation authority on the
same taxable entity.

The tax rates and tax laws used to compute the amount are those

that are enacted or substantively enacted at the reporting date.

XI. Employee Benefits

a. Short Term Employee Benefits

Short term employee benefits are expensed as the related
service is provided. A liability is recognised for the amount
expected to be paid if the Company has a present legal or
constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be
estimated reliably.

b. Post Employment Benefits

(i) Defined Contribution Plans

Obligations for contributions to defined contribution plans
are expensed as the related service is provided. Prepaid
contributions are recognised as an asset to the extent that a
cash refund or a reduction in future payments is available.

(ii) Defined Benefit Plans

Payment of Gratuity to employees is in the nature of a defined
benefit plan. Provision for Gratuity is recorded on the basis of
actuarial valuation certificate provided by the actuary using
Projected Unit Credit Method.

The Company's net obligation in respect of defined benefit
plans is calculated separately for each plan by estimating
the amount of future benefit that employees have earned in
the current and prior periods, discounting that amount and
deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed
annually by a qualified actuary using the projected unit credit
method. When the calculation results in a potential asset for
the Company, the recognised asset is limited to the present
value of economic benefits available in the form of any future
refunds from the plan or reductions in future contributions to
the plan. To calculate the present value of economic benefits,
consideration is given to any applicable minimum funding
requirements.

Remeasurement of the net defined benefit liability, which
comprise of actuarial gains and losses and the return on
plan assets (excluding interest) and the effect of the asset
ceiling (if any, excluding interest) are recognised immediately
in Other Comprehensive Income (OCI). Net interest expense
/ (income) on the net defined liability / (assets) is computed
by applying the discount rate, used to measure the net
defined liability / (asset). Net interest expense and other
expenses related to defined benefit plans are recognised in
the Statement of Profit and Loss.

When the benefits of a plan are changed or when a plan
is curtailed, the resulting change in benefit that relates to
past service or the gain or loss on curtailment is recognised
immediately in the Statement of Profit and Loss. The Company
recognises gains and losses on the settlement of a defined
benefit plan when the settlement occurs.

(c) Other Long Term Employee Benefits

The Company's liability towards compensated absences
is determined by an independent actuary using Projected
Unit Credit Method. Past services are recognised on a
straight line basis over the average period until the benefits
become vested. Actuarial gains and losses are recognised
immediately in the Statement of Profit and Loss as income
or expense or recognized under Other Comprehensive
Income to the extent such actuarial gains or losses arise
due to experience adjustments. Obligation is measured at
the present value of the estimated future cash flows using a
discounted rate that is determined by reference to the market
yields at the Balance Sheet date on Government Bonds
where the currency and terms of the Government Bonds
are consistent with the currency and estimated terms of the
defined benefit obligation.

XII. Leases

a. Where Company is the Lessee

The Company applies a single recognition and measurement
approach for all leases, except for short-term leases and
leases of low-value assets. The Company recognises lease
liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.

(i) Right-of-use Assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured
at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the amount
of lease liabilities recognised, initial direct costs incurred,
and lease payments made at or before the commencement
date less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the shorter of
the lease term and the estimated useful lives of the assets.

(ii) Lease Liabilities

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease
payments include fixed payments (including in substance
fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a rate,
and amounts expected to be paid under residual value
guarantees.

In calculating the present value of lease payments, the
Company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the

lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect
the accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the
lease term, a change in the lease payments (e.g., changes to
future payments resulting from a change in an index or rate
used to determine such lease payments) or a change in the
assessment of an option to purchase the underlying asset.

(iii) Short Term Leases and Leases of Low Value of Assets

The Company applies the short-term lease recognition
exemption to its short-term leases of machinery and
equipment (i.e., those leases that have a lease term of 12
months or less from the commencement date and do not
contain a purchase option). It also applies the lease of
low-value assets recognition exemption to leases of office
equipment that are considered to be low value. Lease
payments on short-term leases and leases of low-value
assets are recognised as expense on a straight-line basis
over the lease term. Assets of value less than Rs 20 lakhs
are categorized as low value lease assets.

b. Where Company is the Lessor

Leases in which the Company does not transfer substantially
all the risks and rewards incidental to ownership of an asset
is classified as operating leases. Rental income arising is
accounted for on a straight-line basis over the lease terms.
Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the
leased asset and recognised over the lease term on the same
basis as rental income. Contingent rents are recognised as
revenue in the period in which they are earned.

Leases are classified as finance leases when substantially
all of the risks and rewards of ownership transfer from the
Company to the lessee. Amounts due from lessees under
finance leases are recorded as receivables at the Company's
net investment in the leases. Finance lease income is
allocated to accounting periods so as to reflect a constant
periodic rate of return on the net investment outstanding in
respect of the lease.

XIII. Borrowing Cost

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

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

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

XIV. Cash and Cash Equivalents

Cash and cash equivalents as reported in the Balance Sheet
comprise cash at banks and on hand and short term deposits
with an original maturity of three months or less which are
subject to an insignificant risk of changes in value. However,
for the purposes of the Cash Flow Statement, cash and cash
equivalents comprise of cash and short term deposits as
defined in Ind AS 7.

XV. Earnings Per Share

Basic earnings per share is computed by dividing the profit
/ (loss) after tax by the weighted average number of equity
shares outstanding during the year. The weighted average
number of equity shares outstanding during the year is
adjusted for the events for bonus issue, bonus element in a
rights issue to existing shareholders, share split and reverse
share split (consolidation of shares).

Diluted earnings per share is computed by dividing the
profit / (loss) after tax as adjusted for dividend, interest and
other charges to expense or income (net off any attributable
taxes) relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for
deriving basic earnings per share and the weighted average
number of equity shares which could have been issued on
conversion of all dilutive potential equity shares.

XVI. Cash Flow Statement

Cash Flow Statement is prepared under the "Indirect Method"
as prescribed under the Indian Accounting Standard (Ind AS)
7 -Statement of Cash Flows.

Cash and Cash equivalents for the purpose of cash flow
statement comprise of cash at bank and in hand and short
term deposits with original maturity of three months or less.