Nature and purpose of Reserves

(a) Capital Reserve

Capital reserve represents amount transferred from the transferor companies pursuant to various schemes of amalgamations and demerger. It is utilised in accordance with the provisions of Companies Act, 2013.

(b) General Reserve

Under the erstwhile Indian Companies Act,1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement of mandatory transfer of a specified percentage of the net profit to general reserve has been withdrawn though the Company may transfer such percentage of its profits for the financial year as it may consider appropriate. Declaration of dividend out of such reserve shall not be made except in accordance with rules prescribed on this behalf under the Companies Act, 2013.

(c) Securities Premium Reserve

Securities premium reserve is created due to the premium on the issue of shares. These reserves shall be utilised in accordance with the provisions of the Companies Act, 2013.

(d) Retained Earnings

The cumulative gain or loss arising from the operations which is retained by the Company is recognised and accumulated under surplus in the Statement of Profit and Loss.

(e) Share warrants

Share warrant is a warrant option issued by the Company that gives the warrant holder a right to subscribe equity shares at a pre determined price on or after a pre determined time period.

(f) Cash flow hedging reserve

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in the fair value of the designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be reclassified to statement of profit and loss in the period in which the underlying hedged transaction occurs.

* The Finance and Investment Committee of the Board of Directors at its meeting held on January 18, 2024, allotted 1,68,91,891 equity shares of face value of ' 2 each to eligible qualified institutional buyers at the issue price of ' 296 per equity share (including share premium of ' 294 per equity share), through Qualified Institutions Placement.

The Finance and Investment Committee of the Board of Directors at its meeting held on March 1, 2024, allotted 9,02,527 equity shares of face value of ' 2 each to Gagandeep Credit Capital Private Limited (entity belonging to the public category) at the issue price of ' 277 per equity share (including share premium of ' 275 per equity share), through preferential issue.

(b) Right, preference and restrictions attached to shares

The Company has only one class of equity shares having a par value of ' 2 per share. Each shareholder is eligible for one vote per share held and carries a right of dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of an interim dividend.

In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

(c) Dividend

The final dividend on shares is recorded as a liability on the date of approval by the shareholders and the interim dividend is recorded as a liability on the date of declaration by the Company's Board of Directors. Income tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits.

The Company declares and pays dividends in Indian rupees. The Finance Act, 2020, has repealed the Dividend Distribution Tax (DDT). Companies are now required to pay/distribute dividends after deducting applicable taxes. The remittance of dividends outside India is also subject to withholding tax at applicable rates.

The Board of Directors in their meeting held on April 24, 2024, recommended a final dividend @ 36.50% i.e. Re. 0.73 per equity share (face value of ' 2 per equity share) for the financial year ended March 31, 2024. This payment is subject to the approval of shareholders in the ensuing Annual General Meeting of the Company and if approved, would result in a net cash outflow of approximately ' 24.96 crores.

The Company does not have any default as on the Balance Sheet date in repayment of loan or interest.

Loans from related parties represents non-interest bearing unsecured loans, which loans are repayable, wherever stipulated or as mutually agreed. There is no repayment of principal or payment of interest due by the Company as at the year end.

The Company has utilised the borrowings from lenders for the specific purpose for which it was taken. The quarterly returns filed by the Company with the banks in respect of working capital facilities are in agreement with the books of account.

(ii) The Company extends business and financial support to certain subsidiaries/associate companies, which are in losses and are reliant upon the Company to meet their respective business requirements.

29 (i) The Finance and Investment Committee of the Board of Directors at its meeting held on January 18, 2024, allotted

1,68,91,891 equity shares to eligible qualified institutional buyers at the issue price of ' 296 per equity share (including a

share premium of ' 294 per equity share), through Qualified Institutions Placement ("QIP Issue"), aggregating to ' 500 crores (Rupees Five Hundred Crores Only) under the provisions of Chapter VI of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

(ii) The Board of Directors at its meeting held on December 14, 2023, approved the preferential issue of upto 902,527 fully

paid equity shares of the face value of ' 2 per equity share, at an issue price of ' 277, including a premium of ' 275 each,

per equity share to M/s Gagandeep Credit Capital Private Limited (entity belonging to Public Category) aggregating upto ' 25 crores (Rupees Twenty Five Crores Only) and upto 17,85,714 fully convertible warrants ("warrants"), each carrying a

right exercisable by the warrant holder to subscribe to one equity share of the face value of ' 2 per warrant, at an issue price (including the warrant subscription price and the warrant exercise price) of ' 280 (Rupees Two Hundred Eight Only) per warrant, to Shri Ashok Sarin Anant Raj LLP (entity belonging to Promoter Group category) aggregating upto ' 50 crores (Rupees Fifty Crores Only), in accordance with the provisions of the Act, read with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, (SEBI ICDR Regulations). The aforesaid preferential issue was further approved by the shareholders of the Company at the Extra-Ordinary General Meeting held on January 13, 2024.

Further, the Finance and Investment Committee of Board of Directors at its meeting held on March 1, 2024, allotted the aforesaid 9,02,527 fully paid equity share of the face value of ' 2 (Rupees Two) per equity share, on a preferential basis to Gagandeep Credit Capital Private Limited (entity belonging to Public category) on receipt of 100% of issue price from the allottees in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The Company is utilising the proceeds of the QIP to prepay its outstanding borrowings and for general corporate purposes in accordance with placement documents and with respect to Preferential Issue, the funds have been utilised for the purpose for which it was raised.

Consequent to the abovementioned allotments, the paid-up equity share capital of the Company stands increased to ' 68,37.82 lakhs consisting of 34,18,90,753 equity shares of face value of ' 2 each.

30 The Finance and Investment Commitee of Board of Directors of the Company at its meeting held on August 26, 2023 allotted 500 (Five Hundred), secured, unlisted, redeemable, non-convertible debentures ('Debentures') of ' 10,00,000 (Rupees Ten Lakhs Only) on a private placement basis to Touchstone Trust Scheme IV.

The funds so raised have been utilised for the purposes it was raised. There is no deviation or variation in the utilisation of funds raised as per Regulation 32 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

31 During the year, the Company redeemed secured, unlisted, redeemable, non-convertible debentures of ' 260.39 Crores (including early redemption of ' 25 Crores) and ' 110 Crores, issued to Touchstone Trust Scheme II and India Real Estate II Scheme III of Apollo Global Management respectively.

32 Inventory includes Development Rights acquired for ' 1,02,562.87 lakhs (' 1,04,341.75 lakhs), being payments made to subsidiary companies under Development Agreements to acquire irrevocable rights over land whereby the Company is entitled to construct, market and sell the development on the same.

33 In the opinion of the Board, all assets other than fixed assets and non current investments, have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

34 As per Indian Accounting Standard-110 on "Consolidated Financial Statements" issued by the "Ministry of Corporate Affairs, Government of India, the Company has presented consolidated financial statements separately in this annual report.

35 The State Government of Haryana did not fulfil its obligations in the matter of granting sales tax exemption. The Company had filed a writ petition before the Hon'ble High Court of Punjab and Haryana, Chandigarh, which was admitted and is yet to be fully disposed of. The Company has been advised that no liability is likely to arise on account of sales tax, and accordingly, no provision has been made by the Company in its books of account.

36 RETIREMENT BENEFIT PLANS

(i) In accordance with the Ind AS-19 on "Employee Benefits" issued by the Ministry of Corporate Affairs, Government of India, the Company has recognised its liability towards defined benefit plans being gratuity liability of ' 268.38 lakhs (' 201.66 lakhs) and leave encashment liability of ' 57.92 lakhs (' 46.93 lakhs).

(e) The discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

(f) The estimates of future salary increase considered in the actuarial valuation take into account factors like inflation, seniority, promotion and other relevant factors.

(g) The employees are assumed to retire at the age of 58 years.

(h) The mortality rates considered are as per the published rates under the Indian Lives Mortality (2012-2014) ultimate table.

37 Balances grouped under trade receivables, trade payables and loans and advances recoverable in cash or in kind are subject to confirmation from subjective parties.

(ii) Non cancellable operating lease

All the operating leases entered into by the Company are cancellable on serving a notice of one to three months, hence, no further disclosure is required.

(iii) Contingent rent recognised

Total contingent rent recognised as income in the Statement of Profit and Loss for the period is Nil.

(iv) General description of lessor's significant leasing policy

All lease agreements entered into by the Company have an initial lock-in-period, thereafter, which the agreement is extendable or cancellable. Further, some of lessees are required to deposit some amount as security which is non-interest bearing and refundable at the time on termination of lease.

44 Segment reporting

An operating segment is one whose operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. The Company has identified the chief operating decision maker as its Managing Director. The Chief Operating Decision Maker reviews performance of real estate business on an overall business.

The Company's business activities which are primarily real estate development and related activities fall within a single reportable segment as the management of the Company views the entire business activities as real estate development. Accordingly, there are no additional disclosures to be furnished in accordance with the requirement of Ind AS 108 - Operating Segments with respect to a single reportable segment.

(c) The Company during the year ended March 31, 2024, spent ' 194.10 lakhs towards ongoing projects, out of which ' 4.72

lakhs were spent on approved ongoing projects towards unspent CSR amount for financial year 2021-22, in line with the

CSR Policy of the Company.

47 FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques:

(i) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

(ii) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly

or indirectly observable.

(iii) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

48 FINANCIAL INSTRUMENTSCapital Management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

49 FINANCIAL RISK MANAGEMENT OBJECTIVES

The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support the Company's operations. The Company's principal financial assets include inventory, trade and other receivables, cash and cash equivalents and land advances that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Company's senior management provides assurance that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board of Directors reviews and agrees on policies for managing each of these risks, which are summarised below:

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/ real-estate risk. Financial instruments affected by market risk include loans and borrowings.

(b) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including refundable joint development deposits, security deposits, loans to employees and other financial instruments. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets.

Trade receivables

(i) Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances before transfer of ownership, therefore, substantially eliminating the Company's credit risk in this respect.

(ii) Receivables resulting from other than sale of properties: Credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively.

(c) Financial Instrument and cash deposits

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, the Company's treasury maintains flexibility in funding by maintaining availability under committed credit lines. The management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows.

51 OTHER STATUTORY INFORMATION

(i) The Company do not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(iv) The Company has not traded or invested in Cryptocurrency or Virtual Currency during the year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries); or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company do not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income-tax Act, 1961).

(viii) The Company has not been declared a wilful defaulter by any bank or financial institution or Government or any Government authority or other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(ix) The Company has a process whereby periodically all derivative contracts are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/accounting standards for material foreseeable losses on such derivative contracts has been made in books of account.

(x) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013, read with the Companies (Restriction on number of layers) Rules, 2017.

54 The figures have been rounded off to the nearest Rupees lakhs.

55 The figures in brackets pertain to the previous year unless otherwise indicated.

56 The figures for the corresponding previous year have been regrouped/recast, where ever necessary, to confirm with this year's presentation.

The accompanying notes 1 to 56 form an integral part of the standalone financial statements.