4.15 Provisions and contingencies
A provision is recognised when the Company has a present
obligation as a result of past events and it is probable
that an outflow of resources will be required to settle the
obligation in respect of which a reliable estimate can be
made. Provisions (excluding retirement benefits) are not
discounted to their present value and are determined based
on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a
present obligation that is not recognised because it is not
probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot
be recognised because it cannot be measured reliably.
The Company does not recognise a contingent liability but
discloses its existence in the financial statements.
4.16 Financial Instruments
a. Initial recognition
The Company recognises financial assets and
financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial
assets and liabilities are recognised at fair value on
initial recognition. Transaction costs that are directly
attributable to the acquisition or issue of financial
assets and financial liabilities, that are not at fair value
through Statement of Profit and Loss, are added to the
fair value on initial recognition. Regular way purchase
and sale of financial assets are accounted for at
trade date.
b. Subsequent measurement
Non-derivative financial instruments
Financial assets carried at amortised cost
A financial asset is subsequently measured at
amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect
contractual cash flows and the contractual terms of
the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest
on the principal amount outstanding.
Financial assets at fair value through other
comprehensive income
A financial asset is subsequently measured at fair value
through other comprehensive income if it is held within
a business model whose objective is achieved by both
collecting contractual cash flows and selling financial
assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the
principal amount outstanding. Further, in cases where
the Company has made an irrevocable election based
on its business model, for its investments which are
classified as equity instruments, the subsequent
changes in fair value are recognised in other
comprehensive income.
Financial assets at fair value through Profit or
loss (FVPL)
A financial asset which is not classified in any of the
above categories are subsequently fair valued through
Statement of Profit and Loss.
Financial liabilities
Financial liabilities are subsequently carried at
amortized cost using the effective interest method,
except for contingent consideration recognised
in a business combination which is subsequently
measured at fair value through Statement of Profit and
Loss. For trade and other payables maturing within
one year from the Balance Sheet date, the carrying
amounts approximate the fair value due to the short
maturity of these instruments.
Investments in Subsidiaries, joint ventures
and associates
I nvestments in subsidiaries, joint ventures and
associates are carried at cost in the financial statements.
c. Derecognition of financial instruments
The Company derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset
and the transfer qualifies for derecognition under Ind
AS 109. A financial liability (or a part of a financial
liability) is derecognised from the Company's Balance
Sheet when the obligation specified in the contract is
discharged or cancelled or expires.
d. Impairment of financial assets
The Company recognises loss allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through Statement of
Profit and Loss. Loss allowance for trade receivables
with no significant financing component is measured at
an amount equal to lifetime ECL. For all other financial
assets, expected credit losses are measured at an
amount equal to the 12-month ECL, unless there has
been a significant increase in credit risk from initial
recognition in which case those are measured at
lifetime ECL. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance
at the reporting date to the amount that is required to
be recognised is recognised as an impairment gain or
loss in Statement of Profit and Loss.
4.17 Operating cycle and basis of classification of assets
and liabilities
The operating cycle is the time between the acquisition
of assets for processing and their realization in cash and
cash equivalents.
a. The real estate development projects undertaken by
the Company is generally run over a period ranging
upto 5 years. Operating assets and liabilities relating
to such projects are classified as current based on an
operating cycle upto 5 years. Borrowings in connection
with such projects are classified as current since they
form part of working capital of the respective projects.
b. Assets and liabilities, other than those discussed in
paragraph (a) above, are segregated into current and
non-current categories for presentation in the balance
sheet after considering its normal operating cycle
and other criteria set out in Ind AS 1, “Presentation
of Financial Statements". Current assets and liabilities
include the current portion of non-current assets
and liabilities respectively. Deferred tax assets and
liabilities are always classified as non-current.
4.18 Cash and cash equivalents
Cash and cash equivalents in the Balance Sheet comprise
cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject
to an insignificant risk of changes in value.
For the purpose of the Statement of Cash Flows, cash and
cash equivalents consist of cash and short-term deposits, as
defined above, as they are considered an integral part of the
Company’s cash management.
4.19 Earnings per share
Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period. The weighted
average number of equity shares outstanding during the
period is adjusted for events such as bonus issue that have
changed the number of equity shares outstanding, without
a corresponding change in resources.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.
4.20 Dividends
Final dividends on shares are recorded as a liability on the
date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the
Company's Board of Directors.
4.21 Statement of Cash Flows
Statement of Cash Flows is prepared under Ind AS 7
‘Statement of Cash Flows’ specified under Section 133 of
the Act. Cash flows are reported using the indirect method.
4.22 Events after the reporting period
If the Company receives information after the reporting
period, but prior to the date of approved for issue, about
conditions that existed at the end of the reporting period, it
will assess whether the information affects the amounts that
it recognises in its financial statements. The Company will
adjust the amounts recognised in its financial statements to
reflect any adjusting events after the reporting period and
update the disclosures that relate to those conditions in light
of the new information. For non-adjusting events after the
reporting period, the Company will not change the amounts
recognised in its financial statements, but will disclose the
nature of the non-adjusting event and an estimate of its
financial effect, or a statement that such an estimate cannot
be made, if applicable.
5 SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements in conformity with Ind
AS requires the Management to make judgements, estimates
and assumptions that affect the reported amounts of assets and
liabilities (including contingent liabilities), income and expenses
and accompanying disclosures. The Management believes that
the estimates used in preparation of the financial statements are
prudent and reasonable. Future results could differ due to these
estimates and the differences between the actual results and the
estimates are recognised in the periods in which the results are
known / materialise.
Significant accounting judgements, estimates and assumptions
used by Management are as below:
• Fair value measurements (Refer note 4.1),
• Determination of performance obligations and timing of
revenue recognition (Refer note 4.2),
• Accounting for revenue and land cost for projects executed
through joint development arrangement (Refer note 4.2),
• Computation of percentage completion for projects in
progress, project cost, revenue and saleable area estimates
(Refer note 4.2),
• Determination of lease term, classification of lease and
estimating incremental borrowing rate (Refer note 4.4),
• Recognition of Deferred Tax Assets (Refer note 4.8),
• Useful lives of investment property; property, plant and
equipment and intangible assets (Refer note 4.9, 4.11 and
4.12),
• Impairment of financial/ non financial assets (Refer note 4.13
and 4.16), and
• Net realisable value of inventory (Refer note 4.14).
i STANDARDS NOTIFIED BUT NOT YET EFFECTIVE
The Company has not early adopted any standard, interpretation
or amendment that has been issued but is not yet effective.
The new and amended standards and interpretations that
are issued, but not yet effective, upto the date of issuance of
Company's financial statements are disclosed below:
Amendments to Ind AS 1 - Classification of Liabilities as Current or
Non-current and Non-current Liabilities with Covenants
I n accordance with Ind AS 1 currently applicable, breach of an
immaterial covenant is ignored in deciding the current vs. non¬
current classification of liabilities. Also, in case of breach of a
material covenant of a non-current loan on or before the reporting
date, the entity can obtain waiver from the lender after the reporting
date and continue to classify the loan as non-current liability.
The amendments clarify that lender waivers obtained after the
reporting date cannot be considered for the purpose of classifying
liabilities as current or non current and require retrospective
application in accordance with Ind AS 8. These amendments are
effective for reporting periods beginning on or after 1 April 2026.
The Amendments will not have any material impact on Company’s
financial statements.
Notes:
i. The Company’s investment properties consists of commercial properties in India. The Management has determined that the investment
properties consist of two classes of assets - office and retail - based on the nature, characteristics and risks of each property.
ii. The Company has determined that the carrying value of Right of use assets represents its fair value considering the terms of the underlying
lease arrangement.
iii. As at 31 March 2026 and 31 March 2025, the fair values of the properties (excluding Right to use assets) are '16,450 Million and ' 14,688
Million respectively. These valuations are based on valuations performed by the management of the Company including valuation for certain
investment properties from registered valuers as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. A valuation
model in accordance with that recommended by the International Valuation Standards Committee has been applied.
iv The fair value of the Company's investment properties have been arrived at using discounted cash flow method. Under discounted cash flow
method, cash flow projections based on reliable estimates of cash flow are discounted. The main inputs used are rental growth rate (5% to
6%), expected vacancy rates (5%), terminal yields (8% to 10%) and discount rates (8% to 12%) which are based on comparable transactions and
industry data.
30c Repayment and other terms:
Repayable in equated monthly instalments ranging from ' 20 million to ' 333 million ending December 2032.
These secured loans are subject to interest rates ranging from 8.85 % to 10.40 % per annum.
30d The Company has borrowings and working capital limits from banks or financial institutions on the basis of security of current assets. In respect
of working capital limits basis security of current assets of the Company there are no requirements of filing quarterly returns or statements with
banks or financial institutions as per the terms of relevant agreements. Further in respect of borrowings, the Company is required to file quarterly
returns or statements with banks or financial institutions as per the terms of the borrowings and the Company has filed quarterly returns or
statements which are in agreement with the books of accounts.
30e I nter corporate deposits and loans from others are subject to interest rates ranging from 0.00% to 12.00% per annum and are repayable
on demand.
30f The Company has raised funds through unsecured commercial papers, having discounted rate of 8.40% to 10.00%, repayable within 12 Months
from the date of issue.
30g These unsecured loans are repayable within 365 days and are subject to interest rates ranging from 9% to 10% per annum.
49 DETAILS OF EXCEPTIONAL ITEMS
Business Transfer Agreement (BTA)
On 27 December 2024, the Company has entered into a Business Transfer Agreement (“BTA”) with Prestige Hospitality Ventures Limited, a wholly
owned subsidiary for transferring certain business undertaking comprising of Mulberry Shades, Underlying land along with all rights at Moxy Outer
Ring Road and equity and preference shares of Prestige Leisure Resorts Private Limited for a consideration of ' 3,130 Million.
50
(a) The Company had entered into a registered Joint Development Agreement (JDA) with a certain land owner (the “Land Owner Company”) to
develop a real estate project (“the Project”). Under the said JDA, the Company acquired development rights over a certain parcel of land of the
Land Owner Company and in exchange was required to provide the Land Owner Company a share in the Project (the "Land Owner Company’s
share”). The Company had incurred Transferrable Development Rights (TDR’s) which are recoverable from the Land Owner Company. The
Company has certain pending claims (including gross receivables of ' 923 Million including towards TDRs) from the Land Owner Company.
Considering the rights of the Company under the JDA, the status of development achieved so far in the Project; the Escrow arrangement with
the Company, Land Owner Company and the Lender of the Land Owner Company (to whom the Land Owner Company’s share of developed
units have been mortgaged), which provides for manner of recovery of TDR dues; the fact that the handing over formalities of the underlying
units are yet to be completed, the Company expects to recover the above gross dues towards TDR’s.
The Land Owner Company has been ordered to be wound up by the Hon’ble High Court of Karnataka during the year ended 31 March 2017,
which is pending adjudication. Pending ultimate outcome of the aforesaid legal proceedings, the management is of the view that no further
adjustments are required in the standalone financial statements.
(b) A search under section 132 of the Income Tax Act (‘the Act’) was conducted during the year ended 31 March 2025 on the Company and
certain group companies. As on the date of the Standalone financial statements, the Company and such group companies have not received
any demand or show cause notice from the Income tax authorities pursuant to such search proceedings. The management has confirmed
that the Company and such group companies have complied with the requirements of the Act and does not expect any further liability on final
assessment of the aforesaid matter.
51 The Company has defined process to take daily back-up of books of account in electronic mode on servers physically located in India. Further,
the Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility
and the same has operated throughout the year for all relevant transactions recorded in the accounting software, except for audit trail feature
is not enabled for direct changes to data when using certain access rights as the audit trail feature is not enabled at the database level insofar
as it relates to SAP S/4 HANA accounting software. Further, no instance of audit trail feature being tampered with was noted in respect of
accounting software where the audit trail has been enabled. Additionally, the audit trail of relevant prior years have been preserved by the
Company as per the statutory requirements for record retention to the extent it was enabled and recorded in the respective years.
54 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities
is to finance the Company’s real estate operations. The Company’s principal financial assets include investments, trade and other receivables, cash
and cash equivalents, bank balances other than cash and cash equivalents and refundable deposits that derive directly from its operations.
The management is of the view that the terms and conditions of the investments made, guarantees provided, security given, land advances, refundable
deposits, current account with partnership firms, loans and advances are not prejudicial to the interest of the Company considering its economic
interest, furtherance of the business and long term trade relationship.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks.
The senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial
risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. It is the Company’s policy that no trading
in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarised below.
I Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market
risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity risk. The Company has no
exposure to commodity prices as it does not deal in derivative instruments whose underlying is a commodity. Financial instruments affected
by market risk include loans and borrowings and refundable deposits.
The sensitivity analysis in the following sections relate to the position as at 31 March 2026 and 31 March 2025. The sensitivity analysis have
been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt are constant.
The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions.
The following assumptions have been made in calculating the sensitivity analysis:
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial
assets and financial liabilities held at 31 March 2026 and 31 March 2025.
Interest rate risk
I nterest 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 long-term and short-term debt
obligations with floating interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. The Company does not have
any interest rate swaps.
Interest rate sensitivity
The following table demonstrates the sensitivity to a possible change in interest rates on that portion of borrowings outstanding at the balance
sheet date. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings,
as follows:
II Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including
refundable joint development deposits, security deposits, loans to employees and other financial instruments.
Trade and other receivables
Trade receivables of the Company comprises of receivables towards sale of properties, rental receivables and other receivables.
Receivables towards sale of property - The Company is not substantially exposed to credit risk as property is handed over on payment of dues.
However the Company make provision for expected credit loss where any property developed by the Company is delayed due to litigation as
further collection from customers is expected to be realised only on final outcome of such litigation.
Receivables towards rental receivables - The Company is not substantially exposed to credit risk as Company collects security deposits
from lessee.
Other Receivables - Credit risk is managed as per the Company’s established policy, procedures and control relating to customer credit
risk management. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date
on an individual basis for major customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of
financial assets.
Refundable joint development deposits
The Company is subject to credit risk in relation to refundable deposits given under joint development arrangements. The management
considers that the risk is low as it is in the possession of the land and the property share that is to be delivered to the land owner under the
joint development arrangements.
Financial Instrument and cash and bank
Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the
Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each
counterparty. Counterparty credit limits are reviewed by the Company’s Board of Directors on an annual basis, and may be updated throughout
the year subject to approval of the Company’s Finance Committee. The limits are set to minimise the concentration of risks and therefore
mitigate financial loss through a counterparty’s potential failure to make payments. The Company’s maximum exposure to credit risk for the
components of the Balance Sheet at 31 March 2026 and 31 March 2025 is the carrying amounts.
III Liquidity risk
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans. The
table below summarises the maturity profile of the Company’s financial liabilities based on contractual payments:
55 CAPITAL MANAGEMENT
For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maintain strong credit rating
and healthy capital ratios in order to support its business and maximise the shareholder value.
The Company, through its Board of Directors manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using debt equity ratio, which is net debt divided by total capital. The
Company includes within net debt, interest bearing loans and borrowings (excluding borrowings from related parties) less cash and cash equivalents,
current investments, other bank balances and margin money held with banks. The disclosure below could be different from the debt and equity
components which have been agreed with any of the lenders.
59 OTHER STATUTORY INFORMATION
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any
Benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(ii) The Company does not have any transactions with companies struck off under section 248 of Companies act, 2013.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) Disclosure requirements where company has advanced or loaned or invested funds
(a) The Company has given Inter Corporate Deposits (‘ICD’) and contributed to Current accounts in partnership firms and limited liabilities
partnership (LLPs), to its subsidiaries, joint ventures and others, which have been further utilised by these subsidiaries, joint ventures and
others for their business purposes and hence not covered under (b) to (d) below
(b) Details of fund advanced or loaned or invested in intermediary by the Company during :
(d) The Company has not provided any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(e) The management of the Company declares that, the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999)
and the Companies Act has been complied with for above transactions in (a), (b) and (c) above and such transactions are not violative of
the Prevention of Money-Laundering Act, 2002 (15 of 2003).
(vi) 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 company shall
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of
the Income Tax Act, 1961).
(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction
on number of Layers) Rules, 2017.
(ix) The Company has not been declared wilful defaulter by any bank or financial institution or other lender.
60 The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four Labour Codes, namely,
Code on Wages, 2019, Code on Social Security, 2020, Industrial Relations Code, 2020 and Occupational Safety, Health and Working Conditions
Code, 2020 (collectively referred to as the ‘New Labour Codes’). The New Labour Codes have been made effective from 21 November 2025.
Based on Company’s assessment, the New Labour Codes do not have a material impact on the Company's financial statement. The Company will
continue to monitor the developments pertaining to New Labour Codes and will evaluate and provide necessary accounting effect on the basis of
such developments as required.
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