2 Significant Accounting Policies
2.1 Basis of preparation
The Standalone Balance Sheet as on March 31, 2025, the
Standalone Statement of Profit and Loss (Including other
comprehensive income), the standalone statement of
changes in Equity and the standalone cash flow statement,
for the year ended 31.03.25, the summary of significant
accounting policies and other explanatory information
(Collectively, the ""Standalone financial statements /
information""). The comparative financial information has
not been included in these Standalone financial statements.
The Standalone Ind AS financial statements has been
prapared by the management of the Company for the
purpose of preparation of Restated Consolidated Financial
Statements for Inclusion in the Red herring prospectus
(RHP) in connection with proposed initial public offer
(""IPO"") of its equity shares, comprising a fresh issue
of equity share (the ""Proposed Offer"") under the
Securities and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2018 as
amended, (the ""SEBI ICDR Regulations"") and relavant
provisions of the companies act, 2013 (the ""Act"").
These financial statements have been prepared on
a going concern basis following the accrual basis
of accounting in accordance with the Generally
accepted Accounting Principles (GAAP) in India (Indian
Accounting standards referred to as "IndAS") as
specified under the section 133 of the Companies Act,
2013 read with Rule 3 of Companies (Indian Accounting
Standard) Rules, 2015 and relevant amendments rules
issued there after and presentation requirements of
Division II of Schedule III to the Companies Act, 2013,
(Ind AS compliant Schedule III). These standalone
financial statements are presented in INR and all
values are rounded to the nearest Lakhs, except when
otherwise indicated.
The financial statements have been prepared on a
historical cost convention, except for the following
assets and liabilities:
i. Certain financial assets and liabilities that is
measured at fair value;
ii. Defined benefit plans-plan assets
measured at fair value.
iii. Investments in equity instruments, other than
investments in subsidiary & associates firm,
measured at fair value through profit & loss
account (FVTPL)."
2.2 Current versus 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.
All other liabilities are classified as non-current.
The operating cycle is the time between the
acquisition of assets and their realisation in cash and
cash equivalents. The Company has identified twelve
months as its operating cycle.
2.3 Property, Plant & Equipments
Property, plant and equipment are stated at their cost
of acquisition. The cost comprises purchase price,
borrowing cost if capitalization criteria are met and
directly attributable cost of bringing the asset to its
working condition for the intended use. Any trade
discount and rebates are deducted in arriving at the
purchase price. 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.
All other repair and maintenance costs are recognized
in statement of profit or loss as incurred.
Subsequent costs are included in asset's carrying amount
or recognized as separate assets, as appropriate,
only when it is probable that future economic benefit
associated with the item will flow to the Company and
the cost of item can be measured reliably.
An item of property, plant and equipment and any
significant part initially recognized is derecognized
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the
carrying amount of the asset) is included in the income
statement when the asset is derecognized.
Capital work- in- progress includes cost of property,
plant and equipment under installation/under
development as at the balance sheet date.
The residual values, useful lives and methods of
depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.
2.4 Intangible assets
Intangible assets acquired separately are measured
on initial recognition at cost. Cost of intangible assets
acquired in business combination is their fair value at
the date of acquisition. Following initial recognition,
intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if any.
Internally generated intangibles, excluding capitalized
development cost, are not capitalized and the related
expenditure is reflected in statement of Profit and Loss
in the period in which the expenditure is incurred. Cost
comprises the purchase price and any attributable
cost of bringing the asset to its working condition for
its intended use.
Intangible assets with indefinite useful lives are not
amortized, but are tested for impairment annually,
either individually or at the cash-generating unit level.
The assessment of indefinite life is reviewed annually
to determine whether the indefinite life continues to
be supportable. If not, the change in useful life from
indefinite to finite is made on a prospective basis. The
Company has assessed indefinite life for such brand
considering the expected usage, expected investment
on brand, business forecast and challenges to establish
a premium electronic segment. These are carried at
historical cost and tested for impairment annually.
An intangible asset is derecognized upon disposal
or when no future economic benefits are expected
from its use or disposal. Gains or losses arising from
disposal of the intangible assets are measured as the
difference between the net disposal proceeds and
the carrying amount of the asset and are recognized
in the statement of profit and loss when the assets
are disposed off.
Depreciation and Amortisation
Depreciation on property, plant and equipment is
calculated on pro-rata basis on straight-line method
using the useful lives prescribed in Schedule II to the
Companies Act 2013.
Followings are the estimated useful lives of various
category of assets used which are aligned with useful
lives defined in schedule II of Companies Act, 2013 /
Useful life of the assets estimated by the management :
The useful lives of intangible assets are assessed as
either finite or indefinite. Intangible assets with finite
lives are amortized over their useful lives and assessed
for impairment whenever there is an indication that the
intangible asset may be impaired. The amortization
period and the amortization method for an intangible
asset with a finite useful life is reviewed at least at the
end of each reporting period. Changes in the expected
useful life or the expected pattern of consumption of
future economic benefits embodied in the asset is
accounted for by changing the amortization period or
method, as appropriate, and are treated as changes
in accounting estimates. The amortization expense on
intangible assets with finite lives is recognized in the
statement of profit and loss.
2.5 Impairment of non-financial assets
The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment
testing for an asset is required, the Company estimates
the asset's recoverable amount. 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. The 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 Companys 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.
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 calculations, which are
prepared separately for each of the Company's CGUs
to which the individual assets are allocated. 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. To estimate cash flow
projections beyond periods covered by the most
recent budgets/forecasts, the Company extrapolates
cash flow projections in the budget using a steady
or declining growth rate for subsequent years, unless
an increasing rate can be justified. In any case, this
growth rate does not exceed the long-term average
growth rate for the products, industries, or country or
countries in which the Company operates, or for the
market in which the asset is used.
Impairment losses of continuing operations, including
impairment on inventories, are recognized in the
statement of profit and loss, except for properties
previously revalued with the revaluation surplus taken to
OCI. For such properties, the impairment is recognized in
OCI up to the amount of any previous revaluation surplus.
For assets excluding goodwill and intangible assets
having indefinite life, an assessment is made at each
reporting date to determine whether there is an
indication that previously recognized impairment
losses no longer exist or have decreased. If such
indication exists, the Company estimates the asset's or
CGU's recoverable amount. A previously recognized
impairment loss is reversed only if there has been a
change in the assumptions used to determine the
asset's recoverable amount since the last impairment
loss was recognized. The reversal is limited so that
the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount
that would have been determined, net of depreciation,
had no impairment loss been recognized for the
asset in prior years. Such reversal is recognized in the
statement of profit and loss unless the asset is carried
at a revalued amount, in which case, the reversal is
treated as a revaluation increase.
As per the assessment conducted by the Company
there were no indications that the non-financial
assets have suffered an impairment loss during the
reporting periods."
2.6 Financial instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
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.
2.6.1 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 in their entirety at either amortised cost
or fair value, depending on the classification of the
financial assets.
2.6.2 Classification of financial assets
Debt instruments that meet the following
conditions are subsequently measured at
amortised cost (except for debt instruments that
are designated as at fair value through profit or
loss on initial recognition):
• the asset is held within a business model
whose objective is to hold assets in order to
collect contractual cash flows: and
• the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest on
the principal amount outstanding.
• Debt instruments that meet the following
conditions are subsequently measured at
fair value through other comprehensive
income (except for debt instruments that are
designated as at fair value through profit or
loss on initial recognition):
• the asset is held within a business model
whose objective is achieved both by
collecting contractual cash flows and selling
financial assets: and
• the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest on
the principal amount outstanding.
Interest income is recognised in profit or loss for
FVTOCI debt instruments. For the purposes of
recognising foreign exchange gains and losses,
FVTOCI debt instruments are treated as financial
assets measured at amortised cost. Thus, the
exchange differences on the amortised cost are
recognised in profit or loss and other changes
in the fair value of FVTOCI financial assets are
recognised in other comprehensive income and
accumulated under the heading of 'Reserve for
debt instruments through other comprehensive
income'. When the investment is disposed of, the
cumulative gain or loss previously accumulated in
this reserve is reclassified to profit or loss.
All other financial assets are subsequently
measured at fair value.
2.6.3 Effective interest method
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.
Income is recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognised in profit or loss and is included in the
"Other income" line item.
2.6.4 Financial assets at fair value through profit or
loss (FVTPL)
initial recognition to present subsequent
changes in fair value in other comprehensive
income for investments in equity
instruments, which are not held for trading.
Debt instruments that do not meet the amortised
cost criteria or FVTOCI criteria (see above) are
measured at FVTPL. In addition, debt instruments
that meet the amortised cost criteria or the
FVTOCI criteria but are designated as at FVTPL
are measured at FVTPL.
A financial asset that meets the amortised cost
criteria or debt instruments that meet the FVTOCI
criteria may be designated as at FVTPL upon
initial recognition if such designation eliminates
or significantly reduces a measurement or
recognition inconsistency that would arise from
measuring assets or liabilities or recognising the
gains and losses on them on different bases,
The Company has not designated any debt
instrument as at FVTPL.
Financial assets at FVTPL are measured at fair
value at the end of each reporting period, with
any gains or losses arising on remeasurements
recognised in profit or loss. The net gain or loss
recognised in profit or loss incorporates any
dividend or interest earned on the financial asset
and is included in the 'Other income' line item.
Dividend on financial assets at FVTPL is recognised
when the Company's right to receive the dividends
is established, it is probable that the economic
benefits associated with the dividend will flow
to the entity, the dividend does not represent a
recovery of part of cost of the investment and the
amount of dividend can be measured reliably.
2.6.5 Investments in equity instruments at FVTOCI
On initial recognition, the Company can make
an irrevocable election (on an instrument-by¬
instrument basis) to present the subsequent
changes in fair value in other comprehensive
income pertaining to investments in equity
instruments. This election is not permitted if
the equity investment is held for trading. These
elected investments are initially measured at fair
value plus transaction costs.
Subsequently, they are measured at fair value with
gains and losses arising from changes in fair value
recognised in other comprehensive income and
accumulated in the 'Reserve for equity instruments
through other comprehensive income'. The
cumulative gain or loss is not reclassified to profit
or loss on disposal of the investments.
A financial asset is held for trading if:
• it has been acquired principally for the
purpose of selling it in the near term; or
• on initial recognition it is part of a portfolio
of identified financial instruments that the
Company manages together and has a recent
actual pattern of short-term profit-taking; or
• it is a derivative that is not designated
and effective as a hedging instrument or a
financial guarantee.
Dividends on these investments in equity
instruments are recognised in profit or loss when
the Company's right to receive the dividends is
established, it is probable that the economic
benefits associated with the dividend win flow
to the entity, the dividend does not represent a
recovery of part of cost of the investment and
the amount of dividend can be measured reliably.
Dividends recognised in profit or loss is included
in the 'Other income' line item.
The Company has not elected for the FVTOCI
irrevocable option for this investment.
2.6.6 Impairment of financial assets
The Company assesses on a forward-looking
basis the expected credit losses associated with
its assets. The impairment methodology applied
depends on whether there has been a significant
increase in credit risk. For trade receivables or
any contractual right to receive cash or another
financial asset that result from transactions that
are within the scope of Ind AS 18, the Company
always measures the loss allowance at an amount
equal to lifetime expected credit losses.
2.6.7 Derecognition of financial assets
The Company derecognises a financial asset when
the contractual rights to the cash flows from the
asset expire, or when it transfers the financial
asset and substantially all the risks and rewards
of ownership of the asset to another party. If the
Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues
to control the transferred asset, the Company
recognises its retained interest in the asset and an
associated liability for amounts it may have to pay.
If the Company retains substantially all the risks
and rewards of ownership of a transferred financial
asset, the Company continues to recognise the
financial asset and recognises a collateralised
borrowing for the proceeds received.
On derecognition of a financial asset in its entirety,
the difference between the asset's carrying
amount and the sum of the consideration received
and receivable and the cumulative gain or loss
that had been recognised in other comprehensive
income and accumulated in equity is recognised
in profit or loss if such gain or loss would have
otherwise been recognised in profit or loss on
disposal of that financial asset.
On derecognition of a financial asset other than
in its entirety (e.g. when the Company retains an
option to repurchase part of a transferred asset),
the Company allocates the previous carrying
amount of the financial asset between the part
it continues to recognise under continuing
involvement, and the part it no longer recognises
on the basis of the relative fair values of those
parts on the date of the transfer. The difference
between the carrying amount allocated to the
part that is no longer recognised and the sum
of the consideration received for the part no
longer recognised and any cumulative gain or loss
allocated to it that had been recognised in other
comprehensive income is recognised in profit or
loss if such gain or loss would have otherwise been
recognised in profit or loss on disposal of that
financial asset. A cumulative gain or loss that had
been recognised in other comprehensive income
is allocated between the part that continues
to be recognised and the part that is no longer
recognised on the basis of the relative fair values
of those parts.
2.7 Financial liabilities and equity instruments
2.7.1 Classification as debt or equity
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.
2.7.2 Equity instruments
Deducting all of its liabilities. Equity instruments
issued by the Company are recognised at the
proceeds received, net of direct issue costs.
Repurchase of the Company's own equity
instruments is recognised and deducted directly
in equity. No gain or loss is recognised in profit or
loss on the purchase, sale, issue or cancellation of
the Company's own equity instruments.
2.7.3 Financial liabilities
All financial liabilities are subsequently measured
at amortised cost using the effective interest
method or at FVTPL.
2.7.4 Financial liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when
the financial liability is either held for trading or it
is designated as at FVTPL.
A financial liability is classified as held for trading if:
• It has been incurred principally for the
purpose of repurchasing it in the near term; or
• on initial recognition it is part of a portfolio
of identified financial instruments that the
Company manages together and has a recent
actual pattern of short-term profit-taking; or
it is a derivative that is not designated and
effective as a hedging instrument.
A financial liability other than a financial liability
held for trading may be designated as at FVTPL
upon initial recognition if:
• such designation eliminates or significantly
reduces a measurement or recognition
inconsistency that would otherwise arise;
• the financial liability forms part of a Company
of financial assets or financial liabilities or
both, which is managed and its performance
is evaluated on a fair value basis, in
accordance with the Company's documented
risk management or investment strategy, and
information about the Company is provided
internally on that basis; or
• it forms part of a contract containing one
or more embedded derivatives, and Ind AS
109 permits the entire combined contract
to be designated as at FVTPL in accordance
with Ind AS 109.
Financial liabilities at FVTPL are stated at fair value,
with any gains or losses arising on remeasurement
recognised in Statement of Profit and Loss. The
net gain or loss recognised in Statement of Profit
and Loss incorporates any interest paid on the
financial liability and is included in the 'other gains
and losses' line item in the Statement of Profit
and Loss. The Company derecognises financial
liabilities when, and only when, the Company's
obligations are discharged, cancelled or they
expire. The difference between the carrying
amount of the financial liability derecognised and
the consideration paid and payable is recognised
in Statement of Profit and Loss.
2.7.5 Other financial liabilities:
Other financial liabilities (including borrowings
and trade and other payables) are subsequently
measured at amortised cost using the effective
interest method.
The effective interest method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense over
the relevant period. The effective interest rate is
the rate that exactly discounts estimated future
cash payments (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 financial liability, or (where appropriate)
a shorter period, to the net carrying amount on
initial recognition.
2.7.6 Derecognition of financial liabilities
The Company derecognises 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 payable is recognised
in profit or loss.
2.8 Investment in Subsidiaries
The investment in subsidiaries are carried at cost
as per IND AS 27. The Company regardless of the
nature of its involvement with an entity (the investee),
determines whether it is a parent by assessing whether
it controls the investee. The Company controls an
investee when it is exposed, or has rights, to variable
returns from its involvement with the investee and has
the ability to affect those returns through its power
over the investee.
Thus, the Company controls an investee if and only if it
has all the following:
• power over the investee;
• exposure, or rights, to variable returns from its
involvement with the investee and
• the ability to use its power over the investeeto
affect the amount of the returns.
Investments are accounted in accordance with Ind
AS 105 when they are classified as held for sale. On
disposal of investment, the difference between its
carrying amount and net disposal proceeds is charged
or credited to the statement of profit and loss.
2.9 Inventories
Inventories comprise of: (i) Construction materials
and consumables (ii) Construction Work-In-Progress
representing properties under construction/development
(iii) Finished Inventories representing unsold units in
completed projects
The construction materials and consumables are valued
at lower of cost or net realisable value.
The construction work in progress is valued at lower
of cost or net realisable value. Cost includes cost of
land, development rights, rates and taxes, construction
costs, borrowing costs, other direct expenditure,
allocated overheads and other incidental expenses.
Finished stock of completed projects and stock in trade
of units is valued at lower of cost or net realisable value.
2.10 Revenue recognition
Revenue from contacts with customer is recognized
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.
Revenue is measured based on the transaction price
which is the consideration, adjusted for discount
and other credits, if any, as specified in the contract
with customer. The company presents revenue from
contracts with customer net of indirect taxes in its
statement of profit and loss. 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 arrangement.
Income from property development
The company considers whether there are other
promises in the contract that are separate performance
obligations to which a portion of the transaction price
needs to be allocated in determining the transaction
price, the company considers the effect of variable
consideration, the existence of significant financing
components, non-cash consideration, and consideration
payable to the customer (if any).
The company satisfies a performance obligation
and recognize the revenue over the time if the
company's performance does not create an asset
with an alternative use to the Company and it has an
enforceable right to receive payment for performance
completed till the date on the basis of the agreement
entered with customers, otherwise revenue is
recognized point in time. The revenue is recognized
at the point in time when the control of the asset is
transferred to the customer and the performance
obligation is satisfied i.e. on transfer of legal title of
the residential unit and on completion of project and
occupation certificate is received.
In respect of property under development, Company
starts recognising the revenue once the construction
linked milestone is achieved with respect to project
cost incurred and work progress.
When it is not possible to reasonably measure the
outcome of a performance obligation and the company
expect to recover the cost incurred in satisfying the
performance obligation revenue is recognized only
to the extent of the cost incurred until such time
that it can reasonably measure the outcome of the
performance obligation
The company becomes entitled to invoice customers for
construction of residential and commercial properties based
on achieving a series of construction-linked milestones.
When the company satisfies a performance obligation
by delivering the promised goods or services it creates a
contract asset based on the amount of consideration earned
by the performance. Any amount previously recognized as a
contract asset is reclassified to trade receivable at the point
when the company has the right to receive the consideration
that is unconditional. If a customer pays consideration before
the company transfer goods or services to the customer, the
contract liability is recognized when the payment is made or
the payment is due (whichever is earlier). Contract liabilities
are recognized as revenue, when the Company performs
under the contract.
2.11 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 temporary differences and to unused tax losses.
The current income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted
at the end of the reporting period in the countries
where the company and its subsidiaries and associates
operate and generate taxable income. Management
periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the
liability method on temporary differences arising
between the tax bases of assets and liabilities and their
carrying amount in the financial statement. Deferred
income tax is determined using tax rates (and laws)
that have been enacted or substantially enacted by the
end of the reporting period and are excepted to apply
when the related deferred income tax assets is realized
or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available
to utilise those temporary differences and losses.
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 off set 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 recognised in the
Statement of profit and loss, except to the extent that
it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly
in equity, respectively.
2.12 Employee Benefits:
2.12.1 Short-term obligations
Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the
period in which the employees render the related
service are recognized in respect of employee
service upto the end of the reporting period and
are measured at the amount expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligations
in the balance sheet.
2.12.2 Post-employment
Defined contribution plan
The Company makes specified monthly
contribution towards employee provident fund
to Employees' Provident Fund. The Company's
contributions to the fund are recognised in the
Statement of Profit and Loss in the financial year
to which the employee renders the service.
Defined benefit plan
The Company's gratuity scheme is a defined
benefit plan. The present value of obligation under
such defined benefit plan is determined based on
actuarial valuation carried at the year-end using the
Projected Unit Credit Method, which recognises
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 value
of the estimated future cash flows. The discount
rate used for determining the present value of the
obligation under defined benefit plans, is based on
the market yields on Government securities as at
the balance sheet date.
The Company recognizes the following changes
in the net defined benefit obligation under
Employee benefit expense in statement of
profit or loss:
• Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements
• Net interest expense or income
Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return
on plan assets (excluding amounts included in
net interest on the net defined benefit liability),
are recognized immediately in the Balance
Sheet with a corresponding debit or credit to
retained earnings through other comprehensive
income in the period in which they occur.
Remeasurements are not reclassified to profit or
loss in subsequent periods.
2.13 Leases
The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
2.13.1 As a lessee
The Company's lease asset classes primarily
comprise of lease for office and other premises.
The Company applies a single recognition and
measurement approach for all leases, except
for short-term leases and leases of low value
assets. The Company recognises lease liabilities
to make lease payments and right-of-use assets
representing the right to use the underlying assets.
(a) Right-of-use assets (ROU)
The Company recognises right-of-use assets
at the commencement date of the lease (i.e.,
the date the underlying asset is available
for use). Right-of-use assets are measured
at cost, less any accumulated depreciation
and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount
of lease liabilities recognized, initial direct
costs incurred, and lease payments made at
or before the commencement date less any
lease incentives received. Right-of-use assets
are depreciated on a straight-line basis
over the shorter of the lease term and the
estimated useful lives.
If ownership of the leased asset transfers to
the Company at the end of the lease term or
the cost reflects the exercise of a purchase
option, depreciation is calculated using the
estimated useful life of the asset. The right-
of-use assets are also subject to impairment.
(b) Lease Liabilities
At the commencement date of the lease,
the Company recognises lease liabilities
measured at the present value of lease
payments to be made over the lease term.
The lease payments include fixed payments
(including insubstance fixed payments) less
any lease incentives receivable, variable
lease payments that depend on an index
or a rate, and amounts expected to be paid
under residual value guarantees. The lease
payments also include the exercise price of
a purchase option reasonably certain to be
exercised by the Company and payments
of penalties for terminating the lease, if the
lease term reflects the Company exercising
the option to terminate. Variable lease
payments that do not depend on an index
or a rate are recognized as expenses (unless
they are incurred to produce inventories) in
the period in which the event or condition
that triggers the payment occurs.
In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement
date because the interest rate implicit in the
lease is not readily determinable.
After the commencement date, the amount
of lease liabilities is increased to reflect the
accretion of interest and reduced for the lease
payments made. In addition, the carrying
amount of lease liabilities is remeasured
if there is a modification, a change in the
lease term, a change in the lease payments
(e.g., changes to future payments resulting
from a change in an index or rate used to
determine such lease payments) or a change
in the assessment of an option to purchase
the underlying asset.
Lease payments are allocated between
principal and finance cost. The finance cost
is charged to profit or loss over the lease
period so as to produce a constant periodic
rate of interest on the remaining balance of
the liability for each period.
Variable lease payments that depend on
sales are recognized in profit or loss in the
period in which the condition that triggers
those payments occur.
Lease liability and ROU assets have been
separately presented in the Balance Sheet
and lease payments have been classified as
financing cash flows. Lease liabilities have
been included in financial liabilities.
(c) Short-term leases and leases of low-value
assets
The Company applies the short-term lease
recognition exemption to its short-term leases
(i.e., those leases that have a lease term of 12
months or less from the commencement date
and do not contain a purchase option). It also
applies the lease of low-value assets recognition
exemption to leases that are considered to be
low value. Lease payments on short-term leases
and leases of low-value assets are recognized
as expense on a straight-line basis over
the lease term.
2.13.2 Company as a lessor
Leases for which the Company is a lessor
is classified as a finance or operating lease.
Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership
to the lessee, the contract is classified as a finance
lease. All other leases are classified as operating
leases. For operating leases, rental income is
recognised on a straight-line basis over the term
of the relevant lease.
2.13.3 Transition to Ind AS
The following is the summary of practical
expedients elected on initial application:
• Applied a single discount rate to a portfolio
of leases of similar assets in similar economic
environment with a similar end date
• Applied the exemption not to recognise
right-of-use assets and liabilities for leases
with less than 12 months of lease term on the
date of initial application, variable lease and
low value asset.
• Excluded the initial direct costs from the
measurement of the right-of-use asset at the
date of initial application.
2.14 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
monitors the operating results of all product segments
separately for the purpose of making decisions about
resource allocation and performance assessment.
The operating segments have been identified on the
basis of the nature of products/services. Further:
• Segment revenue includes sales and other income
directly identifiable with / allocable to the segment
including inter-segment revenue.
• Expenses that are directly identifiable with
/ allocable to segments are considered for
determining the segment result. Expenses
which relate to the Company as a whole and
not allocable to segments are included under
unallocable expenditure.
• Income which relates to the Company as a whole
and not allocable to segments is included in
unallocable income.
• Segment assets and liabilities include those
directly identifiable with the respective segments.
Unallocable assets and liabilities represent the
assets and liabilities that relate to the Company as
a whole and not allocable to any segment.
2.15 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,
bonus element in a rights issue, share split, and reverse
share split (consolidation of shares) if any 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 effect of all potentially dilutive equity shares.
2.16 Borrowing costs
Borrowing costs that are directly attributable to real
estate project development activities are inventorised
/ capitalized as part of project cost.
Borrowing costs are inventorised / capitalised as part
of project cost when the activities that are necessary
to prepare the inventory / asset for its intended
use or sale are in progress. Borrowing costs are
suspended from inventorisation / capitalisation when
development work on the project is interrupted for
extended periods and there is no imminent certainty
of recommencement of work.
All other borrowing costs are expensed in the period
in which they occur. Borrowing costs consist of interest
and other costs that the Company incurs in connection
with the borrowing of funds.
2.17 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits
with an original maturity of three months or less, that
are readily convertible to a known amount of cash and
subject to an insignificant risk of changes in value.
For the purpose of presentation in the statement of
cash flows, cash and cash equivalents includes cash
on hand, deposit held at call with financial institutions,
other short-term, highly liquid investments with original
maturities of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and
bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.
2.18 Foreign currency translation
Functional and presentation currency
The Company's Financial Statements are presented in
Indian rupee (H) which is also the Company's functional
currency. Foreign currency transaction are recorded on
initial recognition in the functional currency, using the
exchange rate prevailing at the date of transaction.
Measurement of foreign currency item at the
balance sheet date:
• Foreign currency monetary assets and liabilities
denominated in foreign currency are translated
at the exchange rates prevailing on the
reporting date.
• Non-monetary items that are measured in
terms of historical cost in a foreign currency are
translated using the exchange rates at the dates
of the initial transactions.
Exchange differences:
Exchange differences arising on settlement or
translation of monetary items are recognised as income
or expense in the Statement of Profit & Loss.
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