1. Corporate information

Sunteck Realty Limited ("the Company") [CIN:
L32100MH1981PLC025346] is primarily engaged in the
business of real estate construction/ real estate development
and incidental services.

The Company is a limited company, domiciled in India. The
Company was incorporated on 1 October 1981 and has its
registered office at 5th Floor, Sunteck Centre Subhash Road,
Vile Parle (East) Mumbai. Maharashtra - 400057.

The Company's shares are listed on two recognised stock
exchanges in India - the Bombay Stock Exchange and the
National Stock Exchange.

These standalone financial statements of the Company for
the year ended 31 March 2026 were approved for issue by
the Board of Directors on 21 April 2026.

2. Material accounting policy information

This note provides a list of the material accounting policy
information adopted in the preparation of these standalone
financial statements. These policies have been consistently
applied to all the years presented, unless otherwise stated.

a) Basis of preparation

The Company has prepared its standalone financial statements
to comply in all material aspects with the provisions of the
Companies Act, 2013 ("the Act") read with Companies (Indian
Accounting Standards) Rules, 2015 (as amended), and other
relevant provisions of the Act and the presentation and
disclosures requirement of Division II of Schedule III to the Act.

The standalone financial statements have been prepared on
a historical cost convention and accrual basis, except for the
certain financial assets, financial liabilities, defined employee
benefit obligations and share based payments, which are
measured either at fair value or amortised cost.

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, regardless of
whether that price is directly observable or estimated using
another valuation technique. In estimating the fair value of
an asset or a liability, the Company takes into account the
characteristics of the asset or liability if market participants
would take those characteristics into account when pricing
the asset or liability at the measurement date.

The Company's normal operating cycle in respect of
operations relating to under construction real estate projects
may vary from project to project depending upon the size
and duration (from launch till occupation certificate period)
of the project, type of development, project complexities and
related approvals. Operating cycle for all completed projects
and other business are based on 12 months period. Assets and
liabilities have been classified into current and non-current

based on the operating cycle of respective businesses.
Deferred tax assets and liabilities are classified as non-current
assets and liabilities.

These standalone financial statements are presented in Indian
rupee (^), which is the functional currency and presentation
currency of the Company. All financial information is
presented in Indian rupees.

Management has assessed the Company's ability to continue
as a going concern considering lease rental inflows, expected
project collections, monetization of completed inventory,
available undrawn facilities and support from capital raised
through warrants. Based on this assessment, the standalone
financial statements have been prepared on a going concern
basis and no material uncertainty has been identified.

The Company reviews its accounting policies annually to
ensure alignment with changes in Ind AS, regulatory guidance,
and evolving business practices. Significant policy judgments
and estimates are reassessed at each reporting date.

b) Revenue recognition

(i) Revenue from real estate development/ sale,
maintenance services, construction and project
management services

Revenue from contracts with customers

Revenue is recognised upon transfer of control of promised
goods or services to customers in an amount that reflects the
consideration to which the Company expects to be entitled, in
accordance with Ind AS 115.

The transaction price includes fixed consideration and variable
consideration, such as escalation clauses, rebates, incentives,
liquidated damages or cancellation charges, only to the extent
that it is highly probable that a significant reversal of revenue
will not occur when uncertainties are resolved.

The Company satisfies the performance obligation and
recognizes revenue over time, if one of the following criteria
is met:

• The customer simultaneously receives and consumes the
benefits provided by the Company's performance as the
Company performs; or

• The Company's performance creates or enhances an
asset that the customer controls as the asset is created
or enhanced; or

• The Company's performance does not create an asset
with an alternative use to the Company and an entity
has an enforceable right to payment for performance
completed to date.

For performance obligations where any one of the above
conditions are not met, revenue is recognized at the point in

time (completed contract basis) at which the performance
obligation is satisfied. This assessment is performed project-
by-project and is revisited upon significant modifications to
customer contracts or project structures.

In case, revenue is recognized over the time, it is being
recognized from the financial year in which the agreement to
sell or any other binding documents containing salient terms
of agreement to sell is executed. In respect of 'over the period
of time', the revenue is recognized based on the percentage-
of-completion method ('POC method') of accounting with cost
of project incurred (input method) for the respective projects
determining the degree of completion of the performance
obligation.

The period over which revenue is recognized is based on
entity's right to payment for performance completed. In
determining whether an entity has right to payment, the entity
shall consider whether it would have an enforceable right to
demand or retain payment for performance completed to
date, if the contract were to be terminated before completion
for reasons other than entity's failure to perform as per the
terms of the contract.

The Company bills to customers for construction contracts as
per agreed terms. The Company adjusts the transaction price
for the effects of the significant financing component included
in the contract price in the case of contracts involving the sale
of property under development, where the Company offers
deferred payment schemes to its customers.

Revenue from construction services being cost plus contracts
is recognised over time and is determined with reference to
the extent performance obligations have been satisfied. The
amount of transaction price allocated to the performance
obligations satisfied represents the recoverable costs
incurred during the period plus the margin as agreed with the
customer.

The revenue recognition from sales of residential and
commercial units and construction services requires forecasts
to be made of total budgeted costs with the outcomes of
underlying construction contracts, which further require
assessments and judgments to be made on changes in work
scopes and other payments to the extent they are probable
and they are capable of being reliably measured. In case,
where the total project cost is estimated to exceed total
revenues from the project, the loss is recognized immediately
in the standalone statement of profit and loss.

Revenue recognised in excess of amounts billed is presented
as a contract asset, while amounts billed in excess of revenue
recognised, including advances received from customers
and deferred revenue, are presented as contract liabilities.
Contract assets are assessed for impairment under the
expected credit loss model in accordance with Ind AS 109.

(ii) Revenue from Joint Development Agreement (JDA)

For projects executed through joint development
arrangements (JDA) not being jointly controlled operations,
wherein the landowner provides rights to develop the land

and the Company undertakes to develop properties on
such land and in lieu of landowner providing land, whereas
the Company agrees to transfer certain percentage of
constructed area or certain percentage of the revenue
proceeds. Basis the terms and conditions of the JDA, the
revenue from the development and transfer of constructed
area/revenue sharing arrangement and the corresponding
land/ development rights received under JDA is measured
at either fair value of development rights or the fair value
of the estimated construction service rendered to the
landowner and the same is accounted on launch of the
project. The fair value is estimated with reference to the
terms of the JDA (whether revenue share or area share)
and the related cost that is allocated to discharge the
obligation of the Company under the JDA. Fair value of the
construction is considered to be the representative fair
value of the revenue transaction and land so obtained. The
management is of the view that the fair value method and
estimates are reflective of the current market condition.
In case of JDA, wherein the Company agrees to transfer
certain percentage of constructed area, revenue from
construction services is recognised over time, 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.

In case of joint development arrangements being jointly
controlled operations, wherein the landowner and the
Company jointly control the arrangement to develop the
project and decisions about the relevant activities require
the unanimous consent of both the parties sharing control,
are accounted in accordance with Ind AS 111. Since both the
parties have separate rights and obligation, the Company
recognizes revenue proportionately to the extent of its share
in the transaction price for its performance obligation.

c) Cost of construction and development

Cost of construction and development, includes cost of
land (cost of development rights/ land under agreements to
purchase) liaisoning costs, estimated internal development
costs, external development charges, overheads, construction
costs and development/ construction materials, which is
charged to the standalone statement of profit and loss
based on the revenue recognized as explained in policy
under revenue recognition, in consonance with the concept
of matching costs and revenue. Final adjustment is made on
completion of the specific project.

"Costs to obtain contracts" such as brokerage fees paid for
obtaining sales contracts, are recognized as assets when
incurred and amortized over the period of time or at the
point in time depending upon recognition of revenue from the
corresponding property sale contract.

d) Income tax

The income tax expense or credit for the period is the tax
payable on the current period's taxable income based on the
applicable income tax rate adjusted by changes in deferred
tax assets and liabilities attributable to deductible temporary

differences (in case of deferred tax assets) and taxable
temporary differences (in case of deferred tax liabilities).

Current income tax

Current income tax assets and liabilities are measured at the
amount expected to be recovered from or paid to the taxation
authorities in accordance with the Income-tax Act. The tax
rates and tax laws used to compute the amount are those that
are enacted or substantively enacted, at the reporting date
where the Company operates and generates taxable income.

Deferred tax

Deferred income tax is provided using the balance sheet
approach on deductible and taxable temporary differences
between the carrying amounts of assets and liabilities in the
standalone financial statements and the corresponding tax
bases used in the computation of taxable profit. Deferred tax
assets and liabilities are not recognized for:

• temporary differences arising on the initial recognition of
assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor
taxable profit or loss at the time of the transaction;

• The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to
be recovered. Unrecognized deferred tax assets are re¬
assessed at each reporting date and are recognized to the
extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.

Deferred tax assets are recognised for all deductible
temporary differences, unused tax losses and carry forward
unused tax credits only if it is probable that future taxable
amounts will be available to utilize those temporary
differences and losses.

Deferred tax liabilities and assets are measured at the tax
rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and
tax laws) that have been enacted or substantively enacted by
the end of the reporting period.

Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities
are offset where the Company has a legally enforceable right
to offset and intends either to settle on a net basis, or to
realize the asset and settle the liability simultaneously.

Current and deferred tax is recognized in standalone
statement of profit and loss, except to the extent that it relates
to items recognized in other comprehensive income (OCI) or
directly in equity. In this case, the tax is also recognized in OCI
or directly in equity, respectively.

Deferred tax assets include Minimum Alternate Tax (MAT) paid in
accordance with the tax laws in India which is likely to give future
economic benefit in the form of availability of setoff against

future income tax liability. Accordingly, MAT is recognized as
deferred tax assets in the standalone balance sheet when the
assets can be measured reliably and it is probable that the future
economic benefit associated with the asset will be realized

e) Leases

The Company assesses whether a contract contains a
lease at inception. As a lessee, the Company recognises a
right-of-use asset and corresponding lease liability at the
commencement date.

Company as a lessee

At the date of the commencement of the lease, the Company
recognizes a right-of-use asset representing its right to use
the underlying asset for the lease term and a corresponding
lease liability for all the lease arrangements in which it is a
lease, except for leases with a term of twelve months or less
(short-term leases) and low value leases.

Lease liabilities are measured using the incremental
borrowing rate determined based on the lease term, nature
of the underlying asset and prevailing market borrowing
rates. Variable lease payments not linked to an index or rate
are expensed as incurred. The Company applies judgement
in determining the lease term, particularly where contracts
include extension or termination options.

The lease arrangements may contain both lease and non-lease
components. The Company allocates the consideration in the
contract to each lease component on the basis of its relative
stand-alone price and the aggregate stand-alone price of the
non-lease components. Non-lease components primarily
comprise maintenance, security, facility management and other
services and are recognised in the Statement of Profit and Loss
as the related services are received. Where permitted under
Ind AS 116, the Company may elect, by class of underlying asset,
not to separate non-lease components from lease components
and instead account for them as a single lease component.

Company as a lessor

Leases in which the Company does not transfer substantially
all the risks and rewards of ownership of an asset are classified
as operating leases. Rental income from operating lease is
recognised on a straight-line basis over the non-cancellable
period of the relevant lease in the Standalone 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 non-cancellable
period on the same basis as rental income.

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.

Lease deposits received are financial instruments

prices, project-specific market conditions, sales velocity and
estimated selling costs.

g) Financial instruments(I) Classification

Financial assets, other than equity instruments, are
subsequently measured at amortized cost, fair value through
other comprehensive income (FVOCI) or fair value through
profit or loss (FVTPL) on the basis of both:

(a) the entity's business model for managing the financial
assets and

(b) the contractual cash flow characteristics of the financial
asset.

For assets measured at fair value, gains and losses will either
be recorded in the standalone statement of profit or loss
or other comprehensive income. For investments in debt
instruments, this will depend on the business model in which
the investment is held. For investments in equity instruments,
this will depend on whether the Company has made an
irrevocable policy choice at the time of initial recognition to
account for the equity investment at fair value through other
comprehensive income.

The Company reclassifies debt investments when and only
when its business model for managing those assets changes.

(II) Measurement

At initial recognition, the Company measures a financial
asset at its fair value, except for trade receivables that do
not contain a significant financing component, which are
measured at their transaction price in accordance with
Ind AS 115. In the case of a financial asset not measured at
fair value through profit or loss, transaction costs that are
directly attributable to the acquisition of the financial asset
are included in the initial measurement. Transaction costs
relating to financial assets measured at fair value through
profit or loss are recognised in the Statement of Profit and
Loss as incurred.

Measurement of loan instruments

Subsequent measurement of debt instruments depends on
the Company's business model for managing the asset and
the cash flow characteristics of the asset. There are three
measurement categories into which the Company classifies
its debt instruments:

• Amortized cost: Assets that are held for collection of
contractual cash flows where those cash flows represent
solely payments of principal and interest are measured
at amortized cost. A gain or loss on a debt investment
that is subsequently measured at amortized cost and is
not part of a hedging relationship is recognized in profit
or loss when the asset is derecognized or impaired.
Interest income from these financial assets is included in
finance income using the effective interest rate method.

• Fair value through other comprehensive income
(FVOCI): Assets that are held for collection of contractual

cash flows and for selling the financial assets, where the
assets' cash flows represent solely payments of principal
and interest, are measured at fair value through other
comprehensive income (FVOCI). Movements in the
carrying amount are taken through OCI, except for
the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses which are
recognized in the standalone statement of profit and loss.
When the financial asset is derecognized, the cumulative
gain or loss previously recognized in OCI is reclassified
from equity to standalone statement of profit or loss and
recognized in other gains/ (losses). Interest income from
these financial assets is included in other income using
the effective interest rate method.

• Fair value through profit or loss: Assets that do not meet
the criteria for amortized cost or FVOCI are measured
at fair value through profit or loss. A gain or loss on a
debt investment that is subsequently measured at fair
value through profit or loss and is not part of a hedging
relationship is recognized in the standalone statement
of profit or loss and presented net in the standalone
statement of profit and loss within other gains/(losses) in
the period in which it arises. Interest income from these
financial assets is included in other income.

Loans to subsidiaries are initially recognised at fair value.
Where loans are granted at below-market terms, the
difference between the transaction value and fair value
is recognised as part of the investment in the subsidiary,
where the funding is considered to be in the nature of long¬
term capital support.

Measurement of equity instruments

The Company subsequently measures all equity investments
at fair value except investment in subsidiary and joint
venture. Where the Company's management has elected
to present fair value gains and losses on equity investments
in other comprehensive income, there is no subsequent
reclassification of fair value gains and losses to profit or
loss. Dividends from such investments are recognised in the
standalone statement of profit or loss as other income when
the Company's right to receive payments is established.

Changes in the fair value of financial assets at fair value through
profit or loss are recognised in the Standalone Statement of
Profit and Loss. Impairment losses (and reversal of impairment
losses) on equity investments measured at FVOCI are not
reported separately from other changes in fair value.

(HI) Impairment of financial assets

In accordance with Ind AS 109, the Company applies the
expected credit loss ("ECL") model for measurement and
recognition of impairment loss on financial assets and credit
risk exposures. The Company follows 'simplified approach' for
recognition of impairment loss allowance on trade receivables.
Simplified approach does not require the Company to track
changes in credit risk. Rather, it recognizes impairment loss
allowance based on lifetime ECL at each reporting date,
right from its initial recognition Further, ECL are measured

incorporating historical experience, current conditions and
forward-looking information, including macro-economic
and sector-specific risks relevant to real estate operations.
Management overlays are applied where historical data does
not fully capture expected credit behaviour.

For recognition of impairment loss on other financial assets
and risk exposure, the Company determines 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 a 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
reverses recognizing impairment loss allowance based on
12-month ECL.

ECL is the difference between all contractual cash flows that
are due to the Company in accordance with the contract and
all the cash flows that the entity expects to receive (i.e., all cash
shortfalls), discounted at the original EIR. Lifetime ECL are
the expected credit losses resulting from all possible default
events over the expected life of a financial instrument. The
12-month ECL is a portion of the lifetime ECL which results
from default events that are possible within 12 months after
the reporting date.

ECL impairment loss allowance (or reversal) recognized
during the period is recognized as income /expense in the
standalone statement of profit and loss.

(Iv) Derecognition of financial assets

A financial asset is derecognized only when

• The Company has transferred the rights to receive cash
flows from the financial asset or

• The Company retains the contractual rights to receive
the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or
more recipients.

Where the entity has transferred an asset, the Company
evaluates whether it has transferred substantially all risks
and rewards of ownership of the financial asset. In such cases,
the financial asset is derecognized. Where the entity has not
transferred substantially all risks and rewards of ownership
of the financial asset, the financial asset is not derecognized.

Where the entity has neither transferred a financial asset
nor retains substantially all risks and rewards of ownership
of the financial asset, the financial asset is derecognized if
the Company has not retained control of the financial asset.
Where the Company retains control of the financial asset, the
asset is continued to be recognized to the extent of continuing
involvement in the financial asset.

h) Classification and subsequent measurement of financial
liabilities

All financial liabilities are recognized initially at its fair
value adjusted by directly attributable transaction costs.

The measurement of financial liabilities depends on their
classification as described below:

Financial liabilities at fair value through profit or loss
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. Gains or losses on liabilities held for trading
are recognized in the standalone statement of profit and loss.

The Company has not designated any financial liability as at
fair value through profit and loss.

Financial liabilities measured at amortized cost

After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortized cost
using the EIR method. Gains and losses are recognized in the
standalone statement of profit and loss when the liabilities
are derecognized.

Amortized 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 amortization is included as
finance costs in the standalone statement of profit and loss.

i) Borrowing costs

Borrowing costs that are directly attributable to the
acquisition/construction of qualifying assets are capitalised
as part of their costs.

Borrowing costs are considered as part of the asset cost when
the activities that are necessary to construct the assets for
their intended use by the management or sale are in progress.

Borrowing costs consist of interest and other costs that
Company incurs in connection with the borrowing of funds.
Other borrowing costs are recognised as an expense, in the
period in which they are incurred.

When revenue is recognised on percentage of completion
basis, the Company excludes such borrowing costs relating to
the post-launch period from its estimates of the balance cost
to completion, and the same is recognised as finance cost in
the Standalone Statement of Profit and Loss.

j) Property, plant and equipment (including capital work
in progress)

Property, plant and equipment are stated at historical cost
less depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Borrowing costs relating to acquisition of property, plant and
equipment which takes 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. Capital
work in progress includes expenditure incurred till the assets
are put to intended use.

Subsequent costs are included in the asset's carrying amount
or recognized as a separate asset, as appropriate, only when

it is probable that future economic benefits associated with
the item will flow to the Company and the cost of the item can
be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognized when replaced.
All other repairs and maintenance are charged to profit or loss
during the reporting period in which they are incurred.

Items of property, plant and equipment that have been retired
from active use and are held for disposal are stated at the
lower of their net book value and net realizable value and are
shown separately in the standalone financial statements. Any
expected loss is recognized immediately in the standalone
statement of profit and loss.

Losses arising from the retirement of, and gains or losses
arising from disposal of property, plant and equipment which
are carried at cost are recognized in the standalone statement
of profit and loss.

k) Depreciation and amortisation

(I) Depreciation is recognized so as to write off the cost of
assets (other than freehold land and properties under
construction) less their residual values over their useful
lives, using the straight-line method. Freehold land is not
depreciated.

(II) Depreciation on property, plant and equipment and
investment property has been provided on pro-rata basis,
on the straight-line method as per the useful life prescribed
in Schedule II to the Companies Act, 2013, except for
furniture and fixtures and air conditioner wherein based on
technical assessment of management, useful life has been
estimated to be different from that prescribed in Schedule
II to the Act. Residual value is considered as 5% of the
original acquisition cost of the assets.

(iii) Amortisation is recognised on a straight-line basis
over their estimated useful lives. The Company amortises
computer software using the straight-line method over the
period of 5 years.

The estimated useful life, residual values and depreciation/
amortisation method are reviewed at the end of each

reporting period, with the effect of any changes in estimate
accounted for on a prospective basis.

l) Investment properties

Investment properties are properties held to earn rentals and/
or for capital appreciation, and not for use in the production or
supply of goods or services, or for administrative purposes, or
for sale in the ordinary course of business.

Investment property is measured initially at its cost, including
related transaction costs and where applicable borrowing
costs. Subsequent to initial recognition, investment properties
are measured at cost less accumulated depreciation and
accumulated impairment losses, in accordance with Ind AS 40.
Subsequent expenditure is capitalized to the asset's carrying
amount only when it is probable that future economic benefits
associated with the expenditure will flow to the Company
and the cost of the item can be measured reliably. All other
repairs and maintenance costs are expensed when incurred.
When part of an investment property is replaced, the carrying
amount of the replaced part is derecognized.

Though the Company measures investment property using
cost based measurement, the fair value of investment property
is disclosed in the notes to the standalone financial statements
and is determined at each reporting date by external registered
valuers having appropriate professional qualifications.

The fair value is determined using generally accepted
valuation techniques, including discounted cash flow (DCF)
models and/or market comparable approaches, as appropriate,
having regard to the nature of the property. The fair value
measurement of investment properties is categorised within
Level 2 or Level 3 of the fair value hierarchy, depending on
the observability of significant inputs used in the valuation.
The Company applies significant judgement in assessing
the reasonableness of the assumptions used by valuers,
particularly in respect of unobservable inputs.

Investment properties are reviewed for impairment in
accordance with Ind AS 36 whenever there is an indication
that the carrying amount may not be recoverable

Reclassification from/to investment property- Transfers to
(or from) investment property are made only when there is a
change in use. Transfers between investment property, owner-
occupied property and inventories do not change the carrying
amount of the property transferred and they do not change the
cost of that property for measurement or disclosure purposes.