2 Significant Accounting Policies
2.1 Basis of preparation
The Standalone Balance Sheet as on March 31, 2024, 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 31.03.24, 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 "SEBIICDR Regulations") and rclavant 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 and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS
compliant Schedule III). These standalone financial statements arc presented in INR and all values arc rounded to the nearest Lakhs, except
when otherwise indicated.
The financial statements have been prepared on a historical cost convention, except for tire 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
thorugh 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 arc 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 arc 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.
4 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 :
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 OC1. 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 docs 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) arc
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 th
principal amount outstanding.
Debt instruments that meet the following conditions arc 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 th
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.
/Ml other financial assets arc 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 che 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 recover}' 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 actus
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 gam 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 arc classified as at FVTPL when the financial liability is cither 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 actus
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 Companying 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 lnd 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 cf 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 arc 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 otner 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 follo wing:
• 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 investee to 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 i3 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 arc 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 or. 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 cf the asset ceiling, excluding amounts included in net interest on the
net defined benefit liability and the return on plan assets (exoluding amounts included in net interest on the net defined benefit liability), arc
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 arc 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 i3 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 arc 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 u'ork 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 arc presented in Indian rupee (?) 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 arc 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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