Significant accounting policies
2.T Basis of Preparation of Financial Statements
The financial statements have been prepared rising the significant accounting policies and measurement basis summarised
below. These were used throughout all periods presented in the financial statements.
(a) Statement of Compliance with Ind AS
These financial statements have been prepared in accordance with Indian Accounting Standards (hereinafter referred
to as the 'Ind AS') notified under Section 133 of the Compan ies Act, 201 3 (the "Act") read with the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
(b) Current / non-current classification
All assets and liabilities have been classified as current or non-current as per the Company's operating cycle and other
criteria set out in the Schedule III to the Companies Act, 201 3. Based on the nature of services and the time between
the rendering of service and their realization in cash and cash equivalents, the Company has ascertained its operating
cycle as 1 2 months for the purpose of current and non-current classification of assets and liabilities. Deferred tax
assets and liabilities are classified as non-current assets and non-current liabilities, as the case may be.
(c) Presentation of financial statements
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the
Schedule III to the Companies Act, 201 3 ("the Act"). The statement of cash flows has been prepared and presented as
per the requirements of Ind AS 7 "Statement of Cash flows". The disclosure requirements with respect to items in the
Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of
notes forming part of the financial statements along with the other notes required to be disclosed under the notified
Accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Amounts in the financial statements are presented in Indian Rupees in Lakhs rounded off to two decimal places as
permitted by Schedule III to the Companies Act, 201 3. Per share data are presented in Indian Rupees to two decimal
places.
(d) Use of estimates
The preparation of financial statements in conformity with Ind AS requires the Management to make estimates and
assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of
revenue and expenses for the year and disclosures of contingent liabilities as at the Balance Sheet date. The estimates
and assumptions used in the accompanying financial statements are based upon the Management's evaluation of
the relevant facts and circumstances as at the date of the financial statements. Actual results could differ from these
estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates,
if any, are recognized in the year in which the estimates are revised and in any future years affected. Refer Note 3
for detailed discussion on estimates and judgments.
2.2 Property, plant and equipment
Recognition and Initial measurement
Property, plant and equ ipment 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 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 measurement (depreciation and useful lives)
Property, plant and equipment are subsequently measured at cost less accumulated depreciation and impairment losses.
Depreciation methods, estimated useful lives
Depreciation on property, plant and equipment is provided on a straight-line basis, computed on the basis of useful lives
prescribed in Schedule II to the Act:
Depreciation on addition to property, plant and equipment is provided on pro-rata basis from the date of acquisition.
Depreciation on sale from property plant and equipment is provided up to the date preceding the date of sale. Gains and
losses on disposals are determined by comparing proceeds with carrying amount. These are included in Statement of Profit
and Loss under 'Other Income'.
Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified
as capital advances under other non-current assets and the cost of assets not put to use before such date are disclosed under
'Capital work-in-progress'.
Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and adjusted
prospectively, as appropriate.
2.3 Foreign Currency Transactions
(a) Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in
which the entity operates ('the functional currency'). The financial statements are presented in Indian rupee (INR),
which is the Company's functional and presentation currency.
(b) Transactions and balances
On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the
exchange rate between the functional currency and the foreign currency at the date of the transaction. Gains/Losses
arising out of fluctuation in foreign exchange rate between the transaction date and settlement date are recognised in
the Statement of Profit and Loss.
All monetary assets and liabilities in foreign currencies are restated at the year end at the exchange rate prevailing at
the year end and the exchange differences are recognised in the Statement of Profit and Loss.
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.
2.4 Fair value measurement
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable
2.5 Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into
account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.
Recognition of revenue from real estate development
Revenue from real estate projects is recognized upon transfer of control and ownership of such real estate/ property, as
per the terms of the contracts entered into with buyers, which generally coincides with the firming of the sales contracts/
agreements/ other legally enforceable documents
Projects are executed through joint development arrangements not being jointly controlled operations, wherein the
Company provides land to possessor and the possessor undertakes to develop properties on such land, the possessor has
agreed to transfer certain percentage of constructed area or certain percentage of the revenue proceeds, the revenue from
the development and transfer of constructed area/revenue sharing arrangement in exchange of such development rights/
land is being accounted on hand over the property to the customer.
Other Income
Interest Income is recognised on accrual basis using effective interest method (EIR) as set out in Ind AS 109, Financial
Instruments, and where no significant uncertainty as to measurability or collectability exists.
2.6 Taxes
Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net profit or loss
for the year.
(a) Current income tax
Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the year end date. Current tax assets and tax liabi lities are offset where the entity 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.
(b) Deferred tax
Deferred income tax is provided in full, using the balance sheet approach, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in financial statements. Deferred income tax is also
not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred
income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of
the year and are expected to apply when the related deferred income tax asset is realised 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 utilize those temporary differences and losses.
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 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 and deferred tax is recognized in 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.
2.7 Inventories
Inventories primarily constitute land and related development activities, which is valued at lower of cost or Net Realizable
Value. Net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion
and estimated costs necessary to make the sale.
As regards assets transferred form Property, plant & equipment (PPE), the carrying cost as per the PPE block has been con¬
sidered as cost which is much less than the Net realizable value.
Cost comprises of all expenses incurred for the purpose of acquisition of land, development of the land and other related
direct expenses.
2.8 Impairment of non-financial assets
At each reporting date, the Company assesses whether there is any indication based on internal/external factors, that an
asset may be impaired. If any such indication exists, the recoverable amount of the asset or the cash generating unit is
estimated. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying
amount. The carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and
is recogn ized in the statement of profit and loss. If, at the reporting date, there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
Impairment losses previously recognized are accordingly reversed in the statement of profit and loss.
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