2.20 Provisions and contingent liabilities2.20.1 Provisions
Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that the
Company will be required to settle the obligation,
and a reliable estimate can be made of the
amount of the obligation.
The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of the time value of
money is material).
When some or all of the economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain that
reimbursement will be received and the amount
of the receivable can be measured reliably.
Provisions and contingent liabilities are reviewed
at each Balance Sheet date.
2.20.2 Onerous contracts
Present obligations arising under onerous
contracts are recognised and measured as
provisions. An onerous contract is considered
to exist where the Company has a contract
under which the unavoidable costs of meeting
the obligations under the contract exceed the
economic benefits expected to be received from
the contract.
2.20.3 Contingent liabilities
Contingent liability is disclosed in case of:
a) a present obligation arising from past
events, when it is not probable that an
outflow of resources will be required to
settle the obligation; and
b) a present obligation arising from past events,
when no reliable estimate is possible
2.21 Financial instruments
Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the instruments.
Financial assets 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 (other than financial assets and
financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately
in profit or loss. However, trade receivables that do not
contain a significant financing component are measured
at transaction price.
2.21.1 Classification and subsequent measurement
2.21.1.1 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
marketplace. All recognised financial
assets are subsequently measured
at either amortised cost or fair
value depending on their respective
classification.
On initial recognition, a financial asset
is classified as - measured at:
— Amortised cost; or
— Fair Value through Other
Comprehensive Income (FVTOCI) -
debt investment; or
— Fair Value through Other
Comprehensive Income (FVTOCI) -
equity investment; or
— Fair Value Through Profit or Loss
(FVTPL)
Financial assets are not reclassified
subsequent to their initial recognition,
except if and in the period the
Company changes its business model
for managing financial assets.
All financial assets not classified
as measured at amortised cost or
FVTOCI are measured at FVTPL.
Financial assets at amortised cost are
subsequently measured at amortised
cost using effective interest method.
The amortised cost is reduced by
impairment losses. Interest income,
foreign exchange gains and losses
and impairment are recognised in
profit or loss. Any gain and loss on
derecognition is recognised in profit
or loss.
The effective interest method is a
method of calculating the amortised
cost of a debt instrument and of
allocating interest income over
the relevant period. The effective
interest rate is the rate that exactly
discounts estimated future cash
receipts (including all fees and
points paid or received that form an
integral part of the effective interest
rate, transaction costs and other
premiums or discounts) through the
expected life of the debt instrument,
or, where appropriate, a shorter
period, to the net carrying amount on
initial recognition.
Debt investment at FVTOCI are
subsequently measured at fair value.
Interest income under effective
interest method, foreign exchange
gains and losses and impairment are
recognised in profit or loss. Other net
gains and losses are recognised in
Other Comprehensive Income (OCI).
On derecognition, gains and losses
accumulated in OCI are reclassified to
profit or loss.
For equity investments, the
Company makes an election on an
instrument-by-instrument basis to
designate equity investments as
measured at FVTOCI. These elected
investments are measured at fair
value with gains and losses arising
from changes in fair value recognised
in other comprehensive income
and accumulated in the reserves.
The cumulative gain or loss is not
reclassified to profit or loss on
disposal of the investments. These
investments in equity are not held
for trading. Instead, they are held
for medium or long term strategic
purpose.
Equity investments that are not
designated as measured at FVTOCI
are designated as measured at FVTPL
and subsequent changes in fair value
are recognised in profit or loss.
Financial assets at FVTPL are
subsequently measured at fair value.
Net gains and losses, including any
interest or dividend income, are
recognised in profit or loss.
2.21.1.2 Financial liabilities and equity
instruments
Debt and equity instruments issued
by the 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.
Equity instruments
An equity instrument is any contract
that evidences a residual interest
in the assets of the Company after
deducting all of its liabilities. Equity
instruments issued by the Company
is recognised at the proceeds
received, net of directly attributable
transaction costs.
Financial liabilities
Financial liabilities are classified
as measured at amortised cost or
FVTPL. A financial liability is classified
as at FVTPL if it is classified as held-
for-trading or it is a derivative (that
does not meet hedge accounting
requirements) or it is designated as
such on initial recognition. Other
financial liabilities are subsequently
measured at amortised cost using the
effective interest method. Interest
expense and foreign exchange gains
and losses are recognised in profit or
loss. Any gain or loss on derecognition
is also recognised in profit or loss.
2.21.2 Derecognition of financial assets
The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers the
rights to receive the contractual cash flows in a
transaction in which substantially all of the risks
and rewards of ownership of the financial asset
are transferred or in which the Company neither
transfers nor retains substantially all of the risks
and rewards of ownership and does not retain
control of the financial asset.
If the Company enters into transactions whereby
it transfers assets recognised on its balance
sheet, but retains either all or substantially all of
the risks and rewards of the transferred assets,
the transferred assets are not derecognised.
2.21.3 Offsetting
Financial assets and financial liabilities are offset
and the net amount presented in the balance
sheet when, and only when, the Company
currently has a legally enforceable right to set
off the amounts and it intends either to settle
them on a net basis or to realise the asset and
settle the liability simultaneously.
2.21.4 Impairment of financial assets
The Company applies the expected credit loss
(ECL) model for recognising impairment loss on
financial assets. With respect to trade receivables,
the Company measures the loss allowance at an
amount equal to lifetime expected credit losses.
Loss allowances for financial assets measured
at amortised cost are deducted from the gross
carrying amount of the assets. For debt securities
at FVTOCI, the loss allowance is recognised in OCI
and is not reduced from the carrying amount of
the financial asset in the balance sheet.
The gross carrying amount of a financial asset
is written off (either partially or in full) to the
extent that there is no realistic prospect of
recovery. This is generally the case when the
Company determines that the debtor does not
have assets or sources of income that could
generate sufficient cash flows to repay the
amounts subject to the write- off. However,
financial assets that are written off could still
be subject to enforcement activities under the
Company's recovery procedures, taking into
account legal advice where appropriate. Any
recoveries made are recognised in profit or loss.
Investment in Subsidiaries and Joint Ventures
The entire carrying amount of the investment
in subsidiaries, associates and joint ventures is
tested for impairment in accordance with Ind
AS 36 Impairment of Assets as a single asset
by comparing its recoverable amount (higher of
value in use and fair value less costs of disposal)
with its carrying amount. Any impairment loss
recognised forms part of the carrying amount of
the investment.
2.21.5 Derecognition of financial liabilities
The Company derecognizes financial liabilities
when, and only when, the Company's obligations
are discharged, cancelled or have expired.
An exchange between with a lender of debt
instruments with substantially different terms
is accounted for as an extinguishment of the
original financial liability and the recognition of
a new financial liability. Similarly, a substantial
modification of the terms of an existing financial
liability (whether or not attributable to the
financial difficulty of the debtor) is accounted
for as an extinguishment of the original financial
liability and the recognition of a new financial
liability. The difference between the carrying
amount of the financial liability derecognised
and the consideration paid and/or payable is
recognised in profit or loss.
2.22 Segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief Operating Decision Maker. The board of directors
of the Company assesses the financial performance and
position of the Company and makes strategic decisions.
The board of directors, which has been identified as
being the Chief Operating Decision Maker, consists of
the key managerial personnel and the directors who are
in charge of the corporate planning. Refer note 34 of
standalone financial statements.
3. USE OF ESTIMATES AND JUDGEMENTS
In the application of the Company's accounting policies,
which are described in note 2, the management is required
to make judgements, estimates and assumptions about
the carrying amounts of assets and liabilities that are
not readily apparent from other sources. The estimates
and associated assumptions are based on historical
experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is
revised if the revision affects only the period of the
revision and future periods if the revision affects both
current and future periods.
Key sources of estimation uncertainty
In the process of applying the Company's accounting
policies, management has made the following
judgements based on estimates and assumptions, which
have the significant effect on the amounts recognised in
the financial statements:
A. Useful lives of property, plant and equipment
and Intangible Asset
The Company reviews the useful life of property,
plant and equipment and Intangible Asset at the
end of each reporting period. This re-assessment
may result in change in depreciation expense in
future periods.
B. Fair value measurements and valuation
processes
Some of the Company's assets and liabilities are
measured at fair value for financial reporting
purposes. In estimating the fair value of an asset
or a liability, the Company uses market-observable
data to the extent it is available. Where Level 1
inputs are not available, the Company engages
third party valuers, where required, to perform
the valuation. Information about the valuation
techniques and inputs used in determining the
fair value of various assets, liabilities and share
based payments are disclosed in the notes to the
financial statements.
C. Actuarial Valuation
The determination of Company's liability towards
defined benefit obligation to employees is made
through independent actuarial valuation including
determination of amounts to be recognised in
the Statement of Profit and Loss and in other
comprehensive income. Such valuation depends
upon assumptions determined after taking into
account inflation, seniority, promotion and other
relevant factors such as supply and demand
factors in the employment market. Information
about such valuation is provided in notes to the
financial statements.
D. Taxes
Deferred tax assets are recognised for temporary
differences to the extent that it is probable that
taxable profit will be available against which the
losses can be utilised. Significant management
judgement is required to determine the amount
of deferred tax assets that can be recognised,
based upon the likely timing and the level of
future taxable profits together with future tax
planning strategies.
E. Determination of the timing of revenuerecognition on the sale of completed and
under development property
The Company has evaluated and generally
concluded that the recognition of revenue
over the period of time criteria are not met
owing to non-enforceable right to payment for
performance completed to date and, therefore,
recognises revenue at a point in time. The
Company has further evaluated and concluded
that based on the analysis of the rights and
obligations under the terms of the contracts
relating to the sale of property, the revenue
is to be recognised at a point in time when
control transfers which coincides with receipt of
Occupation Certificate.
F. Determination of performance obligations
With respect to the sale of property, the
Company has evaluated and concluded that the
goods and services transferred in each contract
constitute a single performance obligation. In
particular, the promised goods and services in
contracts for the sale of property is to undertake
development of property and obtaining the
Occupation Certificate. Generally, the Company is
responsible for all these goods and services and
the overall management of the project. Although
these goods and services are capable of being
distinct, the Company accounts for them as a
single performance obligation because they are
not distinct in the context of the contract.
G. Impairment of investments
The Company assesses impairment of
investments in subsidiaries, associates and
joint ventures which are recorded at cost. At
the time when there are any indications that
such investments have suffered a loss, if any, is
recognised in the statement of Profit and Loss.
The recoverable amount requires estimates of
operating margin, discount rate, future growth
rate, terminal values, etc. based on management's
best estimate
H. Leases
The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of IND AS 116. Identification of a lease requires
significant judgement. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and the
applicable discount rate.
The Company determines the lease term as the
non-cancellable period of a lease, together with
both periods covered by an option to extend the
lease if the Company is reasonable certain to
exercise that option and period covered by an
option to terminate the lease if the Company is
reasonably certain not to exercise that option.
The Company revises the lease term if there is
a change in the non-cancellable period of the
lease.
The discount rate is generally based on
increment borrowing rate specific to the lease
being evaluated or for a portfolio of leases with
similar characteristics.
I. Net realisable value of inventories
Inventories comprising of finished goods and
construction work- in progress are valued at
lower of cost and net realisable value (NRV). NRV
for completed inventory is assessed by reference
to market conditions and prices existing at
the reporting date and is determined by the
Company, based on comparable transactions
identified by the Company for properties in the
same geographical market serving the same
real estate segment. NRV in respect of inventory
under construction is assessed with reference to
market prices at the reporting date for similar
completed property, less estimated costs to
complete construction and estimate of time
value of money till date of completion.
h. During the year ended 31st March, 2025, the Company had received ' 5,998.80 Lakhs as a consideration for capital reduction of
12,000 Class C equity shares from Joint Venture Company viz Mahindra Homes Private Limited (MHPL). The transaction was completed
on November 26, 2024.
i. During the year ended 31st March, 2025, the Company had invested in 214,500 10% Compulsory Convertible Debentures (CCD) at its
face value of ' 100 each of Ample Parks Project 2 Private Limited. 234,630 8% Compulsory Convertible Debentures of ' 100 each
were converted into equity shares of ' 10 each in the ratio 10 equity shares for each CCD.
j. During the year ended 31st March, 2025, Company had reassessed impairment loss on equity investment held in New Tirupur Area
Development Corporation Limited basis recently available financial information resulting in reversal of impairment loss of ' 51 lakhs.
(iv) Shares reserved for issue under options
The Company has 708,540 (previous year 218,370) equity shares of ' 10/- each reserved for issue under
[refer note 25].
(v) The allotment of 210,634 (previous year 153,189) equity shares of the Company has been kept in abeyance in ac
with Section 206A of the Companies Act, 1956 (Section 126 of the Companies Act 2013), till such time the tit
bonafide owner of the shares is certified by the concerned Stock Exchange or the Special Court (Trial of Offences re
Transactions in Securities).
(*) net of share issue expense of ' 934.97 lakhs
Description of the nature and purpose of Other Equity:
General Reserve: General reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can
be distributed / utilised by the Company in accordance with the Companies Act, 2013
Securities Premium : The Securities Premium is created on issue of shares at a premium.
Share Options Outstanding Account: The Share Options Outstanding Account represents reserve in respect of equity settled share
options granted to the Company's employees in pursuance of the Employee Stock Option Plan.
Retained Earnings: This reserve represents cumulative profits of the Company and effects of remeasurement of defined benefit
obligations. This reserve can be utilised in accordance with the provisions of Companies Act, 2013.
Share Application Money Pending allotment: This represents share application money received from the eligible employees upon
exercise of employee stock option. The same will be transferred to equity share capital account after the allotment of shares to the
applicants.
(b) Loan from a financial institution carrying an interest rate ranging from 9.00% p.a. to 9.50% p.a. (Previous year : 8.75% p.a. to
9.75% p.a.) Linked to SBI 3M MCLR. The Loan is secured with exclusive first charge on land and building of an identified residential
housing project including receivables from sold and unsold units of a residential housing project. The loan is repayable in 13 equal
instalments starting from June 26, after a moratorium period of 24 months. The loan is repaid during current financial year
(c) Loan from a financial institution carrying an interest rate ranging from 9.00% p.a. to 9.50% p.a. (Previous year : 8.50% p.a. to
9.50% p.a.) linked to SBI 3M MCLR. The loan is secured with exclusive first charge on land and building of identified residential
housing projects including receivables from sold and unsold units of residential housing projects. The loan is repayable in 14 equal
instalments starting from August 26, after a moratorium period of 18 months. The loan is repaid during current financial year
Unsecured Borrowings
(a) The cash credit facility is carrying interest rate in the range of 8.55% p.a. to 9.40% p.a. (Previous year 9.30% p.a. to 9.65% p.a.)
(b) Commercial papers is carrying interest rate in the range of 6.00% p.a. to 8.00% p.a. (Previous year 7.32% p.a. to 7.44% p.a.).
There is no amount outstanding as on March 31, 2026.
(c) Working capital loans from banks include carrying interest rate in the range of 6.90% p.a. to 9.50% p.a. (Previous Year 7.45% p.a.
to 9.65% p.a.)
(d) Loans from related party is carrying interest rate in the range of 7.40% p.a. to 8.00% p.a. (Previous year 8.00% p.a.) repayable
after 12 months from the date of drawdown.
(1) Notes :
(a) Amounts received before the related performance obligation is satisfied are included in the balance sheet (Contract liability) as "Advances
received from Customers" in note no. 21 - Other Current Liabilities. Amounts billed for development milestone achieved but not yet paid
by the customer are included in the balance sheet under trade receivables in note no. 11.
(b) During the year, the Company recognised Revenue of ' 73,796.31 lakhs (31st March, 2025: ' 30,373.88 lakhs) from opening contract
liability included in the balance sheet as "Advances received from Customers" in note no. 21 - Other Current Liabilities of ' 234,161.25
lakhs (1st April, 2025 : ' 146,955.87 lakhs).
(c) There were no significant changes in the composition of the contract liabilities and Trade receivable during the reporting period other
than on account of periodic invoicing and revenue recognition.
(d) Amounts previously recorded as contract liabilities increased due to further milestone based invoices raised during the year and decreased
due to revenue recognised during the year on completion of the construction.
(e) Amounts previously recorded as Trade receivables increased due to further milestone based invoices raised during the year and decreased
due to collections during the year.
(f) There are no contract assets outstanding at the end of the year
(g) The aggregate amount of the transaction price allocated to the performance obligations that are completely or partially unsatisfied as
at 31st March, 2026, is ' 646,589.76 lakhs (31st March, 2025 : ' 555,852 lakhs). Out of this, the Company expects, based on current
projections, to recognize revenue of around 14% (31st March, 2025 : 24%). within the next one year and the remaining thereafter. This
includes contracts that can be terminated for convenience with a penalty as per the agreement since, based on current assessment, the
occurrence of the same is expected to be remote.
Share based payment
The Company has granted options to its eligible employees under the Employee Stock Options Scheme 2006 ("ESOS 2006”)
and the Employee Stock Options Scheme 2012 ("ESOS 2012). The options granted under both the schemes are equity settled.
ESOS 2006:- Options granted under ESOS 2006 vest in 4 equal instalments of 25% each on expiry of 12 months, 24 months, 36
months and 48 months respectively from the date of grant. The options may be exercised on any day over a period of five years from
the date of vesting.
ESOS 2012 (Options granted till 16th March, 2021):- Options granted under ESOS 2012 vest in 4 instalments bifurcated as 20% each
on the expiry of 12 months and 24 months, 30% each on the expiry of 36 months and 48 months respectively from the date of grant.
The options may be exercised on any day over a period of five years from the date of vesting.
ESOS 2012 (Options granted from 17th March, 2021):- Options granted under ESOS 2012 vest in 3 equal instalments of 33.33% each
on expiry of 12 months, 24 months, and 36 months respectively from the date of grant. The options may be exercised within a period
of five years from the date of grant.
The other details of the schemes are summarised below:
(iii) During the year ended 31st March, 2026, the Company successfully completed a rights issue of 58,163,456 equity shares of face
value of ' 10 each for a cash price at ' 257 per share, aggregating to ' 149,480.08 Lakhs. The funds are being utilised for the
repayment of the debt, funding acquisition of land parcels and working capital.
(iv) Earnings per share for the comparative periods have been retrospectively adjusted for effect of rights issue during the year
30 FINANCIAL INSTRUMENTSCapital management
The Company's capital management objectives are:
- safeguard its ability to continue as a going concern, so that it can continue to maximise the returns to shareholders and benefits
for other stakeholders
- maintain an optimal capital structure to reduce the cost of capital
The Management of the Company monitors the capital structure using debt equity ratio which is determined as the proportion of total
debt to total equity.
Financial Risk Management Framework
The Company's activities expose it to a variety of financial risks: credit risk, Liquidity risk and market risk. In order to manage the
aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and
responding to each risk factor
CREDIT RISK
(i) Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. Credit risk arises from trade receivables, cash and cash equivalents & other financial assets.
Trade Receivables:
The Company's trade receivables include receivables on sale of residential flats and rent receivable. As per the Company's flat
handover policy a flat is handed over to a customer only upon payment of entire amount of consideration. The rent receivables
are secured by security deposits obtained under the lease agreement. Thus, the Company is not exposed to any credit risk on
receivables from sale of residential flats and rent receivables.
The concentration of credit risk is limited due to the fact that the customer base is large. The Company determines the allowance
for expected credit losses based on historical loss experience adjusted to reflect current and estimated future economic
conditions. Basis this assessment, the allowance for expected credit losses on trade receivables as at 31st March, 2026 is
considered adequate.
Cash and Cash Equivalents, Mutual Funds & Other Financial Assets
For banks and financial institutions, only high rated banks/institutions are accepted. The Company holds cash and cash equivalents
with bank and financial institution counterparties, which are having highest safety ratings based on ratings published by various
credit rating agencies. The Company considers that its cash and cash equivalents have low credit risk based on external credit
ratings of the counterparties.
For Other Financial Assets, the Company assesses and manages credit risk based on reasonable and supportive forward Looking
information. Other Financial Assets are considered to be low credit risk exposure assets.
LIQUIDITY RISK
(i) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate
liquidity risk management framework for the management of the Company's short-term, medium-term and long-term
funding and Liquidity management requirements. The Company manages Liquidity risk by maintaining adequate reserves,
banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by
matching the maturity profiles of financial assets and liabilities.
(ii) Maturities of financial liabilities
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with
agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest
and principal cash flows.
MARKET RISK
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk. The
objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising
the return. All such transactions are carried out within the guidelines set by the Board of Directors.
Future specific market movements cannot be normally predicted with reasonable accuracy.
Currency Risk
Foreign currency risk is the risk that the fair value or the future cash flows of an exposure will fluctuate because of changes in the
foreign exchange rate. The Company undertakes few transactions denominated in foreign currencies only for availing certain services.
Hence Foreign currency risk is not significant in comparison to Company's operations.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt
obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and floating
rate Loans and borrowings.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and
borrowings affected. With all other variables held constant, the Company's profit before tax is affected through the impact on floating
rate borrowings, as follows:
32 LEASES
As lessee
The Company has entered into operating Lease arrangements for its registered office at WorLi, Mumbai, Bangalore and Pune office. The
Company has also entered into lease arrangements for CTC vehicles. The lease is non-cancellable for a period of 1 - 5 years and may
be renewed based on mutual agreement between the parties. The leases have varying terms, escalation clauses and renewal rights.
The Company has recognised right of use assets for these leases, except for short term leases.
33 SEGMENT INFORMATION
The Chief Operating Decision Maker monitors and reviews the performance of the operating segment i.e. construction and development
of real estate projects as a single operating segment. Considering that there is only one reportable segment, there are no additional
disclosures to be provided under Ind AS 108 - Segment information. The Company operates only in India.
34 EMPLOYEE BENEFITS(a) Defined Contribution Plan
The Company's contribution to Provident Fund and Superannuation Fund aggregating ' 642.86 lakhs (31st March, 2025 :
' 554.28 lakhs) has been recognised in the Statement of Profit or Loss under the head Employee Benefits Expense.
(b) Defined Benefit Plans:Gratuity
The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated
as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The benefit vests upon completion
of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment.
In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes contribution to the group
gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.
39 RECENT PRONOUNCEMENTS
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time.
In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April 1, 2025.
The Company has reviewed the amendment and based on its evaluation has determined that it does not have any significant impact
in its financial statements.
In August 2025, MCA notified the following amendments to:
1. I nd AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates to classification of
liabilities as current or non-current and non-current liabilities with covenants. In the context of classifying a liability as current, it
removes the requirement of existence of a right to defer settlement for at least 12 months after the reporting date and instead
requires that the said right should exist on the reporting date and have substance. The amendment also introduces guidance
on classification of liabilities with covenants. The Company has no impact of these amendments in its classification criteria of
current and non-current liabilities.
2. I nd AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April 1, 2025 - The
amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance arrangements and
explain the nature of the arrangements, the carrying amount of liabilities and the range of payment due dates. Ind AS 107 has
been amended to add supplier finance arrangements as a factor that may cause concentration of liquidity risk. The Company has
reviewed the amendment and based on its evaluation has determined that it does not have any significant impact on its financial
statements.
40 NEW WAGE CODE
On 21st November, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations
Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively
"new Labour Codes") - consolidating 29 existing labour laws. In accordance with the new Labour Codes, the Company has currently
estimated the incremental impact on retiral benefits to be ' 360 lakhs. Considering regulatory-driven and non-recurring nature of
this impact, this has been presented under "Exceptional Items" in the standalone financial results. The Company continues to monitor
developments on the Rules to be notified by regulatory authorities, including clarifications/ additional guidance from authorities and
will continue to assess the accounting implications, basis such developments/ guidance.
42 SALE OF UNDERTAKING
Mahindra Blossom Developers Limited ("MBLDL”) has been incorporated on 2nd January, 2026, as a wholly owned subsidiary of the
Company. The Company sold 49% of its equity stake in Mahindra Blossom Developers Limited to Mitsui Fudosan (Asia) Pte Ltd pursuant
to a share purchase arrangement dated 23rd March 2026, at its carrying value. The said share purchase arrangement confers certain
participation rights to Mitsui Fudosan (Asia) Pte Ltd. Consequently, based on an assessment of the rights and obligations arising from
the arrangement, management has determined that Mahindra Blossom Developers Limited meets the definition of a joint venture
in accordance with Ind AS 111 Joint Arrangements. Accordingly Mahindra Blossom Developers Limited has been classified as a joint
venture of the Company with effect from 23rd March 2026.
Subsequent to above, the Company has transferred its Alembic undertaking on a slump sale basis, as defined under Section 2(42C) of
the Income-tax Act, 1961 to Mahindra Blossom Developers Limited as a going concern, pursuant to the terms of the Business Transfer
Agreement, with effect from 23rd March 2026, for a lump sum consideration of ' 55,880 lakhs. Consequent to the transfer, all assets
and liabilities pertaining to the said undertaking have been derecognised from the books of the Company at their respective carrying
amounts. The difference between the consideration received and the net carrying value of the assets and liabilities transferred,
43 OTHER STATUTORY INFORMATIONa) Security of current assets against borrowings
The Company has not been sanctioned working capital Limits in excess of ' 5 crores, in aggregate, at points of time during the
year, from banks or financial institutions on the basis of security of current assets. However, the quarterly returns or statements
comprising quarterly financial results are not filed by the Company to such bank or financial institution as these are published
financial results and are available on the Company's website for public including such banks or financial institutions. These
quarterly financial results are in agreement with the unaudited books of account of the Company of the respective quarters
b) The Company do not have any benami property, where any proceeding has been initiated on or are pending against the Company
for holding benami property.
c) Transactions with struck off companies
During the year ended 31st March 2026, the Company does not have any transactions with companies struck off under section
248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or provide any guarantee, security or
the like to or on behalf of the ultimate beneficiaries
The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the group shall directly or indirectly Lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any
guarantee, security or the like on behalf of the ultimate beneficiaries
e) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the
Income Tax Act, 1961, that has not been recorded in the books of account.
f) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year
g) Registration of Charges or satisfaction with Registrar of Companies (ROC)
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
h) Audit trail
The Company has used accounting softwares for maintaining its books of account that has a feature of recording audit trail of
each and every transaction and same has operated throughout the year creating an edit log of each change made in the books
of account. This feature of recording audit trail has operated throughout the year.
i) Corporate Social responsibility (CSR)
The provision of Section 135 to Companies Act, 2013 on Corporate Social responsibility (CSR) are not applicable to the Company.
44 The Board of Directors of the Company has recommended a dividend of ' 3.50 per share on Equity Share of ' 10 each (35%)
(31st March, 2025: ' 2.80 per share - (28%) subject to approval of members of the Company at the forthcoming Annual General
Meeting.
45 EVENTS AFTER THE REPORTING PERIOD
No material events have occurred after the Balance Sheet date and upto the approval of the financial statements.
46 PREVIOUS YEAR FIGURES
The figures for previous year have been regrouped wherever necessary to confirm to current year's grouping.
|