2. MATERIAL ACCOUNTING POLICIES

2.1 Basis of preparation

The standalone financial statements of the Company have
been prepared in accordance with the Indian Accounting
Standards ('Ind AS') specified under section 133 of the Act,
read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, and presentation requirements
of Division II of Schedule III to the Companies Act, 2013 (Ind
AS compliant Schedule III), as applicable to the standalone
financial statements.

The standalone financial statements have been prepared
on the historical cost basis, except for certain financial
instruments which are measured at fair values at the end
of each reporting period, as explained in the accounting
policies below. Historical cost is generally based on the
fair value of the consideration given in exchange for goods
and services.

The standalone financial statements are presented in
Indian Rupees (INR or Rs.) and all values are rounded off
to the nearest crore with 2 decimals (INR 1,00,00,000),
except when otherwise indicated.

2.2 Summary of material accounting policies

(a) Use of estimates

The preparation of financial statements in conformity
with Ind AS requires the management to make
judgments, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities and the disclosure¬ of contingent
liabilities, at the end of the reporting period. Although
these estimates are based on the management's best
knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in
the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities. The effect
of change in an accounting estimate is recognized
prospectively.

(b) Current versus non-current classification

The Company segregates assets and liabilities into
current and non-current categories for presentation
in the balance sheet after considering its normal
operating cycle and other criteria set out in Ind AS
1, "Presentation of Financial Statements". For this
purpose, current assets and liabilities include the
current portion of non-current assets and liabilities
respectively. Deferred tax assets and liabilities are
always classified as non-current.

The operating cycle is the time between the acquisition
of assets for processing and their realization in cash
and cash equivalents. The Company has identified
period up to four years as its operating cycle.

(c) Property, plant and equipment

Property, plant and equipment are stated at cost,
net of accumulated depreciation and accumulated
impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met
and directly attributable cost of bringing the asset to
its working condition for the intended use. Any trade
discounts and rebates are deducted in arriving at the
purchase price.

Each part of an item of property, plant and equipment
with a cost that is significant in relation to the total
cost of the item is depreciated separately. This
applies mainly to components for machinery. When
significant parts of plant and equipment are required
to be replaced at intervals, the Company depreciates
them separately based on their specific useful lives.
Likewise, when a major inspection is performed, its
cost is recognized in the carrying amount of the plant
and equipment as a replacement if the recognition
criteria are satisfied. All other repair and maintenance
costs are recognized in profit or loss as incurred.

Subsequent expenditure related to an item of property,
plant and equipment is added to its book value only if
it increases the future benefits from its previously
assessed standard of performance. All other expenses
on existing property, plant and equipment, including
day-to-day repair and maintenance expenditure and
cost of replacing parts, are charged to the statement
of profit and loss for the period during which such
expenses are incurred.

Borrowing costs directly attributable to acquisition of
property, plant and equipment which take substantial
period of time to get ready for its intended use are also
included to the extent they relate to the period till such
assets are ready to be put to use.

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.

An item of property, plant and equipment and any
significant part initially recognized is de-recognized
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 Property, plant and
equipment is de-recognized.

Costs of assets not ready for use at the balance sheet
date are disclosed under capital work- in- progress.
Capital work in progress is stated at cost, net of
accumulated impairment loss, if any.

(d) Depreciation on property, plant and equipment and
investment property.

Depreciation is calculated on straight line method
using the following useful lives estimated by the
management, which are equal to those prescribed
under Schedule II to the Companies Act, 2013, except
certain categories of assets whose useful life is
estimated by the management based on planned
usage and technical evaluation thereo

Leasehold improvements are amortised over the
remaining period of lease or their estimated useful life
(10 years), whichever is shorter on straight line basis.

The residual values, useful lives and methods of
depreciation of property, plant and equipment and
investment property are reviewed at each financial
year end and adjusted prospectively, if appropriate.

(e) Intangible assets

Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if
any.

Intangible assets comprising of computer software
are amortized using straight line method over a period
of six years, which is estimated by the management to
be the useful life of the asset.

The residual values, useful lives and methods of

amortization of intangible assets are reviewed at
each financial year end and adjusted prospectively, if
appropriate.

Gains or losses arising from de-recognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognized
in the statement of profit and loss when asset is
derecognized.

(f) 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 recognized in
profit or loss as incurred.

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 de-recognized when the
entity transfers control of the same to the buyer.
Further the entity also derecognises investment
properties 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.

(g) Impairment

A. 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 recognizes 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. Non-financial assets

The Company assesses at each reporting date whether
there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment
testing for an asset is required, the Company
estimates the asset's recoverable amount. An asset's
recoverable amount is the higher of an asset's or
cash-generating unit's (CGU) net selling price and its
value in use. The recoverable amount is determined
for an individual asset, unless the asset does not
generate cash inflows that are largely independent of
those from other assets or groups of assets. Where
the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired

and is written down to its recoverable amount. In
assessing value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset. In determining net selling price,
recent market transactions are taken into account, if
available. If no such transactions can be identified, an
appropriate valuation model is used.

Impairment losses are recognized in the statement
of profit and loss. After impairment, depreciation is
provided on the revised carrying amount of the asset
over its remaining useful life.

(h) Leases

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

Where the Company is lessee

A contract is, or contains, a lease if the contract
involves -

(a) The use of an identified asset,

(b) The right to obtain substantially all the economic
benefits from use of the identified asset, and

(c) The right to direct the use of the identified asset

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.

If ownership of the leased asset transfers to
the Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful
life of the asset.

The right-of-use assets are also subject to impairment.
Refer to the accounting policies in section 2.2(h)
Impairment of non-financial 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 insubstance 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. The lease
payments also include the exercise price of a purchase
option reasonably certain to be exercised by the
Company and payments of penalties for terminating
the lease, if the lease term reflects the Company
exercising the option to terminate. Variable lease
payments that do not depend on an index or a rate are
recognised as expenses (unless they are incurred to
produce inventories) in the period in which the event
or condition that triggers the payment occurs.

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 assets

The Company applies the short-term lease recognition
exemption to its short-term leases 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 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.

Where the Company is the lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental to
ownership of the asset are classified as operating
leases. Assets subject to operating leases are included
under Investment property.

Lease income from operating lease is recognized on a
straight-line basis over the term of the relevant lease
including lease income on fair value of refundable
security deposits, unless the lease agreement explicitly
states that increase is on account of inflation. Costs,
including depreciation, are recognized as an expense
in the statement of profit and loss. 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.

i) Borrowing costs

Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing
of funds.

Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalized/
inventorised as part of the cost of the respective asset.
All other borrowing costs are charged to statement of
profit and loss.

The Company treats as part of general borrowings
any borrowing originally made to develop a qualifying
asset when substantially all of the activities necessary
to prepare that asset for its intended use or sale are
complete.

(i) Inventories

Direct expenditure relating to real estate activity is
inventorised. Other expenditure (including borrowing
costs) during construction period is inventorised 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 real estate activity.

i. Work-in-progress: Represents cost incurred in
respect of unsold area (including land) of the real

The Company considers whether there are
other promises in the contract that are
separate performance obligations to which
a portion of the transaction price needs to
be allocated. In determining the transaction
price, the Company considers the effects
of variable consideration, the existence of
significant financing components, non-cash
consideration, and consideration payable to
the customer, if any.

Revenue from real estate development is
recognised at the point in time, when the
control of the asset is transferred to the
customer.

Revenue consists of sale of undivided share
of land and constructed area to the customer,
which have been identified by the Company as
a single performance obligation, as they are
highly interrelated/ interdependent.

The performance obligation in relation to
real estate development is satisfied upon
completion of project work and transfer of
control of the asset to the customer.

For contracts involving sale of real estate unit,
the Company receives the consideration in
accordance with the terms of the contract in
proportion of the percentage of completion
of such real estate project and represents
payments made by customers to secure
performance obligation of the Company under
the contract enforceable by customers. Such
consideration is received and utilised for
specific real estate projects in accordance
with the requirements of the Real Estate
(Regulation and Development) Act, 2016.
Consequently, the Company has concluded
that such contracts with customers do not
involve any financing element since the same
arises for reasons explained above, which is
other than for provision of finance to/from the
customer.

Further, for projects executed through joint
development arrangements not being jointly
controlled operations, wherein the land owner/
possessor provides land and the Company
undertakes to develop properties on such
land and in lieu of land owner providing land,
the Company has agreed to transfer certain
percentage of constructed area or certain
percentage of the revenue proceeds, the
revenue from the development and transfer

of constructed area/revenue sharing
arrangement in exchange of such development
rights/ land is being accounted on gross
basis on launch of the project. Revenue is
recognised over time using input method, on
the basis of the inputs to the satisfaction of
a performance obligation relative to the total
expected inputs to the satisfaction of that
performance obligation.

The revenue is measured at the fair value of
the land received, adjusted by the amount
of any cash or cash equivalents transferred.
When the fair value of the land received
cannot be measured reliably, the revenue is
measured at the fair value of the estimated
construction service rendered to the land
owner, adjusted by the amount of any cash or
cash equivalents transferred. The fair value so
estimated is considered as the cost of land in
the computation of percentage of completion
for the purpose of revenue recognition as
discussed above.

(ii) 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.

(iii) 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. Lease income

The Company's policy for recognition of revenue
from operating leases is described in note 2.2(h).

c. Share in profit/ loss of Limited Liability
Partnerships ("LLPs") and partnership firm

The Company's share in profits/losses from
LLPs and partnership firm, where the Company
is a partner, is recognised as income/loss in the
statement of profit and loss as and when the right
to receive its profit/ loss share is established by the
Company in accordance with the terms of contract
between the Company and the partnership entity.

d. Recognition of revenue from other operating
activities

Lease management fee is recognised over period
of time as per terms of the contract.

Assignment / cancellation fee is recognised at the
point in time as per terms of the contract.

Commission fee is recognised at the point in time
as per terms of the contract.

Sale of scrap is recognised at the point in time
when control of the asset is transferred to the
customer, generally on dispatch of the goods.

B. Other Income

a. Interest income

Interest income, including income arising
from other financial instruments measured at
amortised cost, is recognised using the effective
interest rate method.

b. Dividend income

Revenue is recognised when the Company's

right to receive dividend is established, which is
generally when shareholders approve the dividend.

(l) Foreign currency translation

Functional and presentation currency

Items included in the financial statements of the
Company are measured using the currency of the
primary economic environment in which the Company
operates ('the functional currency'). The financial
statements are presented in Indian rupee (INR),
which is the Company's functional and presentation
currency.

Foreign currency transactions and balances

i) Initial recognition - Foreign currency transactions
are recorded in the reporting currency, by applying
to the foreign currency amount the exchange rate
between the reporting currency and the foreign
currency at the date of the transaction.

ii) Conversion - Foreign currency monetary items are
retranslated using the exchange rate prevailing at
the reporting date. Non-monetary items, which are
measured in terms of historical cost denominated
in a foreign currency, are reported using the
exchange rate at the date of the transaction. Non¬
monetary items, which are measured at fair value
or other similar valuation denominated in a foreign
currency, are translated using the exchange rate at
the date when such value was determined.

iii) Exchange differences - The Company accounts
for exchange differences arising on translation/
settlement of foreign currency monetary items as
income or as expense in the period in which they
arise.

(m) Retirement and other employee benefits

Retirement benefits in the form of state governed
Employee Provident Fund and Employee State
Insurance are defined contribution schemes
(collectively the 'Schemes'). The Company has no
obligation, other than the contribution payable to
the Schemes. The Company recognizes contribution
payable to the Schemes as expenditure, when an
employee renders the related service. The contribution
paid in excess of amount due is recognized as an asset
and the contribution due in excess of amount paid is
recognized as a liability.

Gratuity, which is a defined benefit plan, is accrued
based on an independent actuarial valuation, which
is done based on project unit credit method as at

the balance sheet date. The Company recognizes the
net obligation of a defined benefit plan in its balance
sheet as an asset or liability. Gains and losses through
re-measurements of the net defined benefit liability/
(asset) are recognized in other comprehensive
income. In accordance with Ind AS, re-measurement
gains and losses on defined benefit plans recognized
in OCI are not to be subsequently reclassified to
statement of profit and loss. As required under Ind
AS compliant Schedule IN, the Company recognizes
re-measurement gains and losses on defined benefit
plans (net of tax) to retained earnings.

The Company treats accumulated leave expected to be
carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such
long-term compensated absences are provided for
based on the actuarial valuation using the projected
unit credit method, made at the end of each financial
year. Actuarial gains/losses are immediately taken
to the statement of profit and loss. The Company
presents the accumulated leave liability as a current
liability in the balance sheet, since it does not have an
unconditional right to defer its settlement for twelve
months after the reporting date.

(n) Share-based payments

Employees (including senior executives) of the
Company receive remuneration in the form of share-
based payments, whereby employees render services
as consideration for equity instruments (equity-
settled transactions).

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model. Further details
are given in note 43.

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in
equity, over the period in which the performance and/
or service conditions are fulfilled. The cumulative
expense recognised for equity-settled transactions
at each reporting date until the vesting date reflects
the extent to which the vesting period has expired and
the Company's best estimate of the number of equity
instruments that will ultimately vest. The expense or
credit in the statement of profit and loss for a period
represents the movement in cumulative expense
recognised as at the beginning and end of that period
and is recognised in employee benefits expense.

Service and non-market performance conditions are
not taken into account when determining the grant date

fair value of awards, but the likelihood of the conditions
being met is assessed as part of the Company's best
estimate of the number of equity instruments that
will ultimately vest. Market performance conditions
are reflected within the grant date fair value. Any
other conditions attached to an award, but without
an associated service requirement, are considered
to be non-vesting conditions. Non-vesting conditions
are reflected in the fair value of an award and lead to
an immediate expensing of an award unless there are
also service and/or performance conditions.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met. Where
awards include a market or non-vesting condition,
the transactions are treated as vested irrespective
of whether the market or non-vesting condition is
satisfied, provided that all other performance and/or
service conditions are satisfied.

When the terms of an equity-settled award are
modified, the minimum expense recognised is
the grant date fair value of the unmodified award,
provided the original vesting terms of the award are
met. An additional expense, measured as at the date
of modification, is recognised for any modification
that increases the total fair value of the share-based
payment transaction, or is otherwise beneficial to the
employee. Where an award is cancelled by the entity or
by the counterparty, any remaining element of the fair
value of the award is expensed immediately through
profit or loss.

The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.

(o) Income taxes

Income tax expense comprises current tax expense
and the net change in the deferred tax asset or liability
during the year.

Current and deferred tax are recognized in the
statement of profit and loss, except when they relate
to items that are recognized in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognized in
other comprehensive income or directly in equity,
respectively.

i. Current income tax

Current income tax for the current and prior

periods are measured at the amount expected

to be recovered from or paid to the taxation
authorities based on the taxable income for
that period. The tax rates and tax laws used to
compute the amount are those that are enacted or
substantively enacted by the balance sheet date.

ii. Deferred income tax

Deferred income tax is recognized using the
balance sheet approach, deferred tax is recognized
on temporary differences at the balance sheet
date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting
purposes, except when the deferred income tax
arises from the initial recognition of goodwill
or an asset or liability in a transaction that is
not a business combination and affects neither
accounting nor taxable profit or loss at the time of
the transaction.

Deferred income tax assets are recognized for all
deductible temporary differences, carry forward
of unused tax credits and unused tax losses, to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences, and the carry forward of unused tax
credits and unused tax losses can be utilized.

The carrying amount of deferred income tax
assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to
allow all or part of the deferred income tax asset
to be utilized.

Deferred income tax assets and liabilities are
measured at the tax rates that are expected to
apply in the period when the asset is realized or the
liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted
at the balance sheet date.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity)
in correlation to the underlying transaction either
in OCI or in equity.