Summary of significant accounting policies

i) Current and 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 realised 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 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 the
settlement of the liability for at least twelve
months after the reporting period.

The Company classifies all other liabilities as
non-current.

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

The operating cycle is the time between the
acquisition of assets for processing and their
realization in cash and cash equivalents.

b) Property, Plant and Equipment, depreciation and
amortization

i) Recognition and Measurement :

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

• Its purchase price, including import duties
and non-refundable purchase taxes, after
deducting trade discounts and rebates.

• 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

If significant parts of an item of property, plant
and equipment have different useful lives, then

*The company believes that the useful life of
equipment used in construction work as different
from schedule ii of the Companies Act 2013 best
represents the period over which the assets are
expected to be used.

Assets acquired on lease and leasehold
improvements are amortised over the period of
the lease on straight line basis.

Depreciation method, useful lives and residual
values are reviewed at each financial year-end and
adjusted if appropriate.

) Investment property and depreciation

i) Recognition and measurement:

Investment properties comprises of land and
building 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.

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
management own assessment based upon various
parameters/ valuation report obtained from IBBI
approved valuers.

ii) Depreciation

Depreciation on Investment Property is provided
using the written down value method based
on the useful lives specified in Schedule II to the
Companies Act, 2013 as under :

I nvestment properties are de-recognised when
they have been disposed off or when they are
permanently withdrawn from use and no future
economic benefits is expected from their disposal.
The difference between net disposal proceeds and
carrying amount of asset is recognized in Statement
of profit and loss in the year of de-recognition.

d) Intangible assets and amortization

i) Recognition and Measurement :

Items of Intangible Assets are measured at cost less
accumulated amortisation and impairment losses,
if any. The cost of any intangible asset comprises:

I ts purchase price, including import duties and
non-refundable purchase taxes, after deducting
trade discounts and rebates; and

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.

ii) Subsequent Measurement

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

iii) Amortisation

Intangible assets are amortised over their estimated
useful life using straight line method. Trademark is
amortised over a period of 20 years.

Intangible Assets (other than trademark) are
amortised over a period of six years.

Amortisation method, useful lives and residual
values are reviewed at the end of each financial
year and adjusted if appropriate.

iv) Gain or loss arising from de-recognition of an
intangible asset are measured as the difference
between net disposal proceeds and carrying
amount of asset and are recognised in Statement
of profit and loss in the year in which Intangible
asset is de-recognised.

e) Investment in equity instruments of subsidiary
(including partnership firms), joint venture and
associates

Investment in equity instruments of subsidiaries, joint
ventures and associates are stated at cost as per Ind AS
27 'Separate Financial Statements'. Where the carrying
amount of an investment is greater than its estimated
recoverable amount, it is assessed for recoverability
and in case of permanent diminution, provision for
impairment is recorded in statement of Profit and Loss.
On disposal of investment, the difference between
the net disposal proceeds and the carrying amount is
charged or credited to the Statement of Profit and Loss.

f) Inventories

Inventories are valued as under:

• Land and plots other than area transferred to
Constructed properties at the commencement of
construction are valued at lower of Cost and Net
realisable value. Cost includes land (including
development rights and land under agreement
to purchase) acquisition cost, borrowing cost
capitalised if inventorisation criteria are met,
External and internal development cost and other
directly attributable cost.

• Construction work -in-progress and Finished real
estate properties includes Cost of land (including
development rights and land under agreement
to purchase), External and Internal development
cost, construction cost, overhead, borrowing
cost capitalised if inventorisation criteria are met,
development/ construction materials and is valued
at lower of Cost and Net realisable value.

• Construction/ development material is valued
at lower of Cost and Net realisable value.
Cost comprise purchase price and other cost

incurred in bringing the inventories to their present
location and condition.

Costs are determined on a weighted average basis.

Net realisable 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. The inventory of construction work-in- progress
is not written down below cost if flats /properties are
expected to be sold at or above cost.

g) Revenue from contract or services with customer
and other streams of revenue

Revenue from contracts with customers is recognised
when control of the goods or services are transferred to
the customer at an amount that reflects the consideration
to which the Company expects to be entitled in
exchange for those goods or services. The Company has
generally concluded that it is the principal in its revenue
arrangements because it typically controls the goods
and services before transferring them to the customers.

i) Revenue from contract with customers:

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated
to that performance obligation. The transaction
price of goods sold and services rendered is net
of variable consideration on account of rebates
and discounts. 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.

Revenue is recognised in the Statement of Profit
and Loss to the extent that it is probable that
the economic benefits will flow to the Company
and the revenue and costs, if applicable, can be
measured reliably.

The Company has applied five step model as per Ind
AS 115 'Revenue from contracts with customers'
to recognise revenue in the financial statements.
The Company satisfies a performance obligation
and recognises 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 the entity has an enforceable
right to payment for performance completed
to date.

For performance obligations where any of
the above conditions are not met, revenue is
recognised at the point in time at which the
performance obligation is satisfied.

Revenue is recognised either at point of time or
over a period of time based on various conditions
as included in the contracts with customers.

Point of Time:

Revenue from real-estate projects
Revenue is recognised at the Point in Time w.r.t.
sale of real estate units, including land, plots,
apartments, commercial units, development
rights as and when the control passes on to the
customer which coincides with handing over of
the possession to the customer.

Over a period of time:

Revenue is recognised over period of time for
following stream of revenues:

Revenue from Co-development projects
Co-development projects where the Company
is acting as contractor, revenue is recognised in
accordance with the terms of the co-developer
agreements. Under such contracts, assets created
does not have an alternative use for the company
and the Company has an enforceable right to
payment. The estimated project cost includes
construction cost, development and construction
material, internal development cost, external
development charges, borrowing cost and
overheads of such project.

accounting policies of financial assets in section
2.2 (s) Financial instruments - initial recognition
and subsequent measurement.

Contract liabilities

A 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.

h) Cost of revenue

Cost of real estate projects

Cost of constructed properties, includes cost of
land (including cost of development rights/ land
under agreements to purchase), estimated internal
development costs, external development charges,
borrowing costs, overheads, construction costs and
development/ construction materials, which is charged
to the statement of profit and loss based on the revenue
recognized as explained in accounting policy for revenue
from real estate projects above, in consonance with the
concept of matching costs and revenue. Final adjustment
is made on completion of the specific project.

Cost of land and plots

Cost of land and plots includes land (including
development rights), acquisition cost, estimated
internal development costs and external development
charges, which is charged to the statement of profit and
loss based on the percentage of land/ plotted area in
respect of which revenue is recognised as explained in
accounting policy for revenue from 'Sale of land and
plots', in consonance with the concept of matching cost
and revenue. Final adjustment is made on completion of
the specific project.

Cost of development rights

Cost of development rights includes proportionate
development rights cost, borrowing costs and other
related cost, which is charged to statement of profit
and loss as explained in accounting policy for revenue,
in consonance with the concept of matching cost
and revenue.

i) Borrowing costs

Borrowing costs directly attributable to the acquisition
and/ or construction/ production of an asset that
necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalised as part
of the cost of the asset. All other borrowing costs are
charged to the statement of profit and loss as incurred.
Borrowing costs consist of interest and other costs that
the Company incurs in connection with the borrowing
of funds. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to
the borrowing costs.

j) Taxes

Current income tax

Tax expense recognized in statement of profit and loss
comprises the sum of deferred tax and current tax except
the ones recognized in other comprehensive income or
directly in equity.

Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the
taxation authorities. Current tax is determined as the tax
payable in respect of taxable income for the year and is
computed in accordance with relevant tax regulations.
Current income tax relating to items recognised
outside profit or loss is recognized outside profit or loss
(either in other comprehensive income or in equity).
Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.

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 liabilities are recognised for all taxable
temporary differences, except in respect of taxable
temporary differences associated with investments in
subsidiaries, associates and interests in joint ventures,
when the timing of the reversal of the temporary
differences can be controlled and it is probable that
the temporary differences will not reverse in the
foreseeable future.

Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are
recognised 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 utilised.

The carrying amount of deferred tax assets is reviewed
at each reporting 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 tax
asset to be utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are recognised
to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be
recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting 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). Deferred tax
items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.

k) Foreign Currency transactions

Functional and presentation currency

The standalone financial statements are presented
in Indian Rupees which is also the functional and
presentation currency of the Company.

Transactions and balances

Foreign currency transactions are recorded in the
functional currency, by applying the exchange rate
between the functional currency and the foreign
currency at the date of the transaction.

Foreign currency monetary items outstanding at
the balance sheet date are converted to functional
currency using the closing rate. Non-monetary items
denominated in a foreign currency which are carried at
historical cost are reported using the exchange rate at
the date of the transactions.

Exchange differences arising on settlement of monetary
items, or restatement as at reporting date, at rates
different from those at which they were initially recorded,
are recognized in the statement of profit and loss in the
year in which they arise.

l) Retirement and other employee benefits

Benefits such as salaries, wages and short term
compensation etc. and the expected cost of ex-gratia is
recognized in the period in which the employee renders
the related service.

The Company's Gratuity and Leave encashment schemes
are defined benefit plans. The Company provides for
gratuity covering eligible employees on the basis of
actuarial valuation as carried out by an independent
actuary using the Projected Unit Credit method, which
recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and
measures each unit separately to build up the final
obligation. The obligation is measured at the present
values of the estimated future cash flows. The discount
rates used for determining the present value of
obligation under defined benefit plans is based on the
market yields on Government securities at the balance
Sheet date.

The liability is un-funded. Actuarial gains and losses
arising through re-measurement of net defined benefit
liability/(assets) are recognized in 'Other Comprehensive
Income'. Leave encashment benefits payable to
employees of the Company with respect to accumulated
leave outstanding at the year end are accounted for
on the basis of an actuarial valuation as at the Balance
Sheet date.

Contributions payable by the company to the concerned
government authorities in respect of provident fund,
family pension and employee state insurance are defined
contribution plans. The contributions are recognized as
an expense in the Statement of Profit and Loss during the
period in which the employee renders the related service.
The company does not have any further obligation in
this respect, beyond such contribution. Other employee
benefits are accounted for on accrual basis.

m) Impairment of non financial assets

At each reporting date, the Company assesses whether
there is any indication based on internal/ external factors,
that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount
of the asset. An asset's recoverable amount is the
higher of an asset's or cash-generating unit's (CGU)
fair value less costs of disposal and its value in use.
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. When 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 and the impairment loss,
including impairment on inventories, is recognised in
the statement of profit and loss.

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 fair value less costs of disposal, recent
market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation
model is used. These calculations are corroborated by
valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.

The Company bases its impairment calculation on
detailed budgets and forecast calculation. These budgets
and forecast calculations generally cover a period of
five years. For longer periods, a long term growth rate is
calculated and applied to project future cash flows after
the fifth year.

I f, at the reporting date there is an indication that a
previously assessed impairment loss no longer exists,
the recoverable amount is reassessed and the asset is
reflected at the recoverable amount. Impairment losses
previously recognized are accordingly reversed in the
statement of profit and loss.

n) Cash dividend and non-cash distribution to equity
holders

The Company recognises a liability to make cash or non¬
cash distributions to equity holders when the distribution
is authorized and the distribution is no longer at the

discretion of the Company. As per the corporate laws in
India, a distribution is authorized when it is approved by
the shareholders. A corresponding amount is recognized
directly in equity.

Non-cash distributions are measured at the fair
value of the assets to be distributed with fair value
re-measurement recognized directly in equity.

Upon distribution of non-cash assets, any difference
between the carrying amount of the liability and the
carrying amount of the assets distributed is recognised
in the statement of profit and loss.