2. Significant Accounting Policies
Basis of Preparation and Presentation
a. The financial statements have been prepared on a historical cost basis, except for certain financial
instruments that are measured at fair value, as explained in the accounting policies below.
b. The Financial Statements of the Company have been prepared to comply with the Indian
Accounting standards ('Ind AS'), including the rules notified under the relevant provisions of the
Companies Act, 2013.
c. The Company's Financial Statements are presented in Indian Rupees (Rs.), which is also its
functional currency, and all values are rounded to the nearest thousand except when otherwise
indicated.
Summary of Significant Accounting Policies
1. Current and Non-Current Classification
(i) The Company presents assets and liabilities in the Balance Sheet based on Current/ Non-Current
classification.
(ii) An asset is treated as Current when it is -
1. Expected to be realised or intended to be sold or consumed in normal operating cycle.
2. Held primarily for the purpose of trading.
3. Expected to be realised within twelve months after the reporting period, or
4. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period.
(i) All other assets are classified as non-current.
(iv)A liability is current when:
1. It is expected to be settled in normal operating cycle.
2. It is held primarily for the purpose of trading.
3. It is due to be settled within twelve months after the reporting period, or
4. There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.
The Company classifies all other liabilities as non-current.
(ii) Deferred tax assets and liabilities are classified as non-current assets and liabilities.
2. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities on the date of the financial statements and
the results of operations during the reporting periods. Although these estimates are based on
management's knowledge of current events and actions, actual results may differ from these estimates.
Any revisions to accounting estimates are recognized prospectively in the period in which the estimate is
revised and in future periods as applicable.
3. Property, Plant and Equipment and depreciation
(i) Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discount
and rebates less accumulated depreciation and impairment losses, if any. Such cost includes
purchase price, borrowing cost and any cost directly attributable to bringing the assets to
its working condition for its intended use, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the assets. In case of land
the Company has availed fair value as deemed cost on the date of transition to Ind AS.
(ii) Subsequent costs are included in the asset's carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the entity and the cost can be measured reliably.
(iii) Property, Plant and Equipment which are significant to the total cost of that item of
Property, Plant and Equipment and having different useful life are accounted separately.
(iv) Other Indirect Expenses incurred relating to project, net of income earned during the
project development stage prior to its intended use, are considered as pre-operative
expenses and disclosed under Capital Work-in-Progress.
(v) Depreciation on property, plant, and equipment is provided on a straight-line basis over the
estimated useful life of the asset as prescribed in Schedule II to the Companies Act, 2013,
on the depreciable amount.
4. Cash and Cash Equivalents
Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and short-term,
highly liquid investments that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value.
5. Finance Costs
(i) Borrowing costs that are attributable to the acquisition or construction of qualifying assets are
capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use.
(ii) All other borrowing costs are charged to the Statement of Profit and Loss as incurred.
6. Inventories
Inventories are valued as under
(i) Land and Plots which are registered in the name of the company are valued at cost.
(ii) Constructed properties includes the cost of land, internal development costs, external
development charges, construction costs, development/ construction materials, and is
valued at cost or net realisable value, whichever is lower.
(iii) Work in progress includes internal development costs, external development charges,
construction costs, and development / construction materials in respect to the unsold
square footage.
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