7 Provisions, Contingent Liabilities and Contingent Assets
Provisions arc rerognised when there is a present legal or constructive obligation as a result of a past event and it is
probable [i.e. more likely than not) that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation, Such provisions are determined
based on management estimate of the amount required to settle the obligation at the balance sheet date. When the
Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a standalone asset
only when the reimbursement is virtually certain.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is
recognised as a finance costs
Present obligations arising tinder onerous contracts are recognised and measured as provisions. An onerous contract is
considered to exist when a contract under which Lhe unavoidable costs of meeting the obligations exceed the economic
benefits expected to be received from it.
Contingent Liabilities are disclosed on the basis of judgment of management/independent experts. These are reviewed
at each balance sheet date and are adjusted to reflect the current management estimate.
Contingent Assets are not recognized, however, disclosed tn Financial statement when inflow of economic benefits is
probable,
S Revenue Recognition
The Company derives revenues primarily from sale of completed property and proportionate revenue of property'
under development.
Completed Inventory Property
The sale of completed property constitutes a single performance obligation and that is satisfied at the point in time
when control transfers.
Inventory Property under Development
Contracts relating to the sale of property under development is considered as a single performance obligation because
it provides a significant service of integrating the goods and services (the inputs) into the completed property ;the
combined output) which the customer has contracted to buy
Revenue from Contracts with customers relating to property under development is recognised over time as it has
concluded that, at all times, it has an enforceable right to payment for performance completed (o date and it has no
alternative use for the said assset. Therefore, control transfers over time for these contracts
For contracts that meet the over lime revenue recognition criteria, performance is measured using an input method, by
reference to the costs Incurred to the satisfaction of a performance obligation (e g., resources consumed, labour hours
expended, costs incurred, time elapsed) relative to the total expected inputs to the completion of the property
Revenue from contract with customers is recognised upon transfer of control of promised Services to customers in an
amount that reflects the consideration the Company expects to receive in exchange for those services Revenue from
the sale of services is recognised at the point in time when control is transferred to the customer.
Use of significant judgements in revenue recognition
• Judgement is also required to determine the transaction price for the contract. The transaction price couJd be either a
fixed amount of Consideration m variable consideration with elements such a$ discounts. Any Consideration payable
to the customer is adjusted to the transaction price, unless it is a payment for a distinct product or service from the
customer. The estimated amount of variable consideration is adjusted in the transaction price only to the extent that it
is highly probable that a significant reversal tn the amount of cumulative revenue recognised will not occur and is
reassessed at the end of each reporting period.
The Company exercises judgement in determining whether the performance obligation is satisfied at a point in time or
over a period of time. The Company considers indicators such as how customer consumes benefits as services are
rendered or who controls the asset as it is being created or existence of enforceable right to payment for performance to
date and alternate use of such product or service, transfer of significant risks and rewards to the customer, acceptance
of delivery by the customer, etc.
Company collects and spends money towards mainiainenoe of the completed projects where society is yel to be
formed or where the affairs of the maintenance of building constructed by them has not been handed over to the
society. Revenue is recognized at a point in time when the bill is raised to the customer fat collection of maintain*!nee
charges
Interest income on Financial Assets as subsequently measured at amortized cost is recognised on a tune-proportion
basis using the HR method.
When a receivable is impaired, the Company reduces the carrying amount to its recoverable amount, being the
estimated future cash flows discounted at the original effective interest rate of the instrument, and continues
unwinding the discount as interest income.
9 Borrowing Costs
Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of
borrowing? with reference to the effective interest rate applicable to the respective borrowings.
Borrowing cost pertaining to development of long term projects are transferred to Construction work in progress, as
pari of the cost of the projects uptu the time all the activities necessary to prepare these projects fur its intended use or
sale are complete,
All other borrowing costs are recongrd.wd as expense in the period in which they are incurred
10 Employee Benefits
Short-term Employees Benefits
All short term employees benefits such as salaries, wages, allowances, performance incentive, employee welfare costs,
exgratia are recognised during the period in which the employee render services and are measured at undiscounted
amount expected to be paid when the Liabilities are settled.
Post-employment benefits
The Company provides the following post-employment benefits:
i) Defined benefit plans such as gratuity and
ii) Defined Contribution plans such as provident fund.
Defined benefits plans
The cost of providing defined benefit plans such as gratuity is determined on the basis of present value of defined
benefits obligation which is computed using the projected unit credit method with independent actuarial valuation
made at the end of each annual reporting period, which recognizes each period of service as given rise to additional
unit of employees benefit entitlement and measuring each unit separately to build up the final obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and
the fair value of plan Assets. This cost is included in employee benefit expense in the Statement of Profit and Loss
except those included in cost of Assets as permitted.
Re-measurements comprising of actuarial gains and losses arising from experience adjustments and change in
actuarial assumptions, the effect of change in Assets ceiling (if applicable) and the return on plan asset (excluding net
interest as defined above) are recognised in other comprehensive income (OG) Except those included in cost of Assets
as permitted in the period in which they occur. Re-measurements are not reclassified to the Statement of Profit and
Loss in subsequent periods.
Service cost (including current service cost, past Service Cost, as well as gains and losses on Curtailments and
settlements) is recognised in the Statement of Profit and Loss except those included in cost of Assets as permitted in the
period in which they occur.
Defined Contribution Plans
Contributions to the Provident Fund arc made at a prc-determincd rale and charged to the statement of Profit and
Loss,
11 Income Taxes
Income tax expense represents the sum ol tax currently payable and deferred tax. Tax is recognized in the Statement
of Profit and Loss, except to the extent that it relates to items recognized directly in equity or in other comprehensive
income.
Current Tax
Current tax is the expected tax payable/ receivable on the taxable income/ los$ for the year using applicable tax rates
for the relevant period, and any adjustment to taxes in respect of previous years. Interest expenses and penalties, if
any, related to income tax are included in finance cost and oihei expenses respectively, Interest Income, if any, related
to Income lax is included in Other Income
Deferred Tax
Deferred lax ia recognised on temporary differences between the carrying amounts of Assets and Liabilities in the
balance sheet and the corresponding tax bases used in the computation of taxable profit. Deferred tax Liabilities are
generally recognised for all taxable temporary differences. Deferred tax Assets are generally recognised for alJ
deductible temporary differences, unabsorbed losses and unabsorbed depreciation to the extent that if is probable that
future taxable profits will be available against which those deductible temporary differences, unahorbed losses and
Unabsorbed depredation can be utilised. Such deferred tax Assets and liabilities are not recognised if the temporary
difference arises from initial recognition of Assets and Liabilities in a transaction that affects neither the taxable profit
nor the accounting profit.
The carrying amount of deferred tax Assets is reviewed at each balance sheet date and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax Assets and Liabilities are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have beer enacted or substantively
enacted by the balance sheet date The measurement of deferred tax Liabilities and Assets reflects the tax consequences
that would Follow from the manner in which the Company expects, at: the reporting date, to recover or settle the
carrying amount of its Assets and Liabilities.
Deferred tax Assets and Liabilities are offset when there is a legally enforceable right to set off current tax Assets
against current tax Liabilities and when they relate to income taxes levied by the same taxation authority and the
Company intends to settle its current tax Assets and Liabilities on a ret basis,
12 Current versus Non-current classification
The Company presents Assets and Liabilities in the Balance Sheet based on current/non-current classification.
a) An asset is current when it is:
* Expected to be realized or intended to be sold or consumed in the 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.
b) A liability is current when:
* ft is expected to be settled in the normal operating cycle,
Ý It is held primarily for the purpose of trading,
* Jt 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'Ciurent
c) Deferred tax Assets and Liabilities are classified as Nan-current Assets and Liabilities.
d) The normal operating Cycle in respect of operation relating td under construction real estate project depends on
signing of agreement, size of the project, phasing of the project, type of development, proiect complexities, approvals
needed And realisation of project into cash And cash equivalents and range from 3 to 5 years. Accordingly project
related Assets And Liabilities have been classified into current And non-current based on operating cycle of respective
projects.
13 Earnings per Share:
Basic earnings per share is calculated by dividing the profit from continuing operations and total profit, both
attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding
during the year.
C Ministry of Corporate Affairs (MCA) vide notification dated 24th March 2021, has amended Schedule HI to the
Companies Act, 2013 to enltance the disclosure requirements in Financial statements. The Financial statements have
been prepared after incorporating the amendments to the extent they are applicable
D Recent accounting pronouncements
Ministry of Corporate Affairs (MCA) notifes new standards, ammendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA
has not notified any new standard or ammendments to existing standards applicable to the Company
NOTE 27
A. CATTTAl MANAGEMENT
Fo: th* purpose of Company's Capital m; capital includes Lsjued liquify CipilaJ, and Retired tarmriga attributable to the Equity Holders
cd the Company, The primary objivtive of the Company'* Capita] Mftn.ijtemcnt u to maximise the Shaft Holder Value
The Company manages its capital structure and makes adjustments in the light of chanijes m economic1 renditions and requirements of the fmarvr_5J
povwwitj and to cuntlnue tfi * going cunosm To maintain or adjust the oipitil xinirfun!, the Company may adjust the dividend payment to
Rhanehold er*. Tie turn capita] to shareholders or issue new shares.
The Company morn tore-capiiif using a ratio of Nil Debt' bo 'Equity'. Fur this purpose net debt w deftml u nnal borrowings If-ssCimh i< Bank
Balances and Other Current Investments.
The Company 's Net Del* hr Equity Ratios are as toll jws:
B- FINANCIAL RISK MANAGEMENT
The Company's prr.-^pe. Financial laabditien :.;mpr-.-j(: Loans and Boirvw-ngs, Trade and Gthe Fdyabtes, The main purpose ot these t inn;'..: jJ
Lubilibn is to finance the operatic™ of lie Company The principal Financial Anris include Trade aid Other Rcoivtbb, tnuntmmb in Mutual
The Company has assessed nwkel risk, credit risk and liquidity risk to its financial iiibiliiif5.
t| Muriel Rink
Market «!5k is trie nslc pj loss or to tore earrunB!, ItoJ values or casruwws mat may JiesiiJt Ijnm achange W tire puce of a tmanoal instrument, as a
remit of m tonal rules and ether pner rikkj. PinwciaL instruments affected by market risks, primarily mciuda loans A boiruwinp, inVestmmis and
other TECEivaijIeF, payables and barrewingp.
Interest Rate Rinks
Interest rate risk tin be either fair value interest rate or cash flow interest nte risk, Jw value merest rate risk is ihe ris* of changes in fair values qf
fixed inters* bearing Investments penalise of fluctuationt in the inlerent »H, Cash flow fartertst rets risk i» the ri*k iha! the future cash (tow* of floating
merest bearing investments will fluctuate because of fluctuation? in the interest rates
Exposure lo Interest rate risk
The Gompanys interest rate risk arises from borrowings, liorfowings issued at fixed rales exposes to iair value interest rate risk. The interest rate
pjofileaf the Company's itib'rnt-btarinE finuivuil jnritnjmenli as reptirtoii to toe murjeeirenl of the Company Li as futtuwa
Fair valut sensitivity analysis forfixed-rilt instrument!
The Company does not account tor any fixed-rate financial asse-j. or financial liabiliiiw at lair value through profit nr loss. TVreJur^ a diangp In
interest rates it the reporting due would not iftori profit or loss.
Commodity Price Risk
The Company s aoii'.-iti&ire exposed to steel and cement price risk_s and therefore its overall risk uwjgemtnt program focuses on the volatile ns tore
of the fed and cement markd, thus seeking to nunimizepolentLai adverse effects on the group ? Grurcial pertomance on account of itxh volatility.
The Board reviews risk, nunigement policies.
Foreign Currency Risks
ruTTPnrr risk u-nnt material, as tttt Company's primsiy busing?, arrivirirv are within fndrr and does not have significant exposure in toretgr. currency
in Credit Rc»k
Credit risk is the risk of financial Ion to the Compuny if s customer or counterparty to* financial instrutnak fob to meet its-mntractuaL obligations,
inJ atrsti principally from the Company's receivab ,-.3 from customers and investments In debt st'Cimtius.
The-carrying amount of following Financial nurti wprcwmtfi the maximum credit exposure
Trade tod Other Receivable*
The Company r exposure to cmiii risk ir influenced toniftly by the indMihjiil duf&ncristirt of mch CUltwner. Hinder credit ru^ wnfi regard* to
trade receivable is almost negligjhk Ln case of its residential sale business as the satn-f is done in the fact ths: incase of its residential sell business rt
does nut handover possession till endue ou Islanding Is received
The Ageing of trade rweivijlfi is as follows:
Jn*‘«lto«ltl la Debt Sec aril it*, LtmJltd Liability FartncrthlpC, Leans to Related Tartlet end Project Depwit*
TV Company has nvettmants in rrutual funds, limited liability partnership firms and priced deposits. The acitlernern of such irscnirvnis 9 linked to
the completion of the res pectYe underlying project), Such Financial Aasete ere nut impaired as on the re porting, date.
Cash and Bank balances
The Company holds cash and cash equivalents with banks which ere having highest safety rankings and hence has e low credit nsk.
iii) Liquidity Risk
1 Jtpridity risk a thr risk thal the Company wsLI Cltrounlrr difficulty In mpcting thr nbti gatinni. a viixiurJ with in financial liabilities that are Killed by
delivering cash or another financial asset The Company's approach to ounagirg liquidity is to ensure, as far as possible, that ifwi]J hasp sufficient
liquidity to meet its UabuLbcs when they era due, Ýinfer both normal and stressed conditions, without incurring nnacrcplatic losses or flaking damage
to the Company's reputation
Management monitors ratling forecasts of the Company'* liquidity position on the basis of expected cash ffcrwm, HiLs monitoring includes financial
ratios and tikes into atvount the nrcesnibility of cash and cash equivalents.
The Com par.v has access to hinds from debt markets through bank foan. The Company invests its surplus funds m bank fixed deposit and debt based
mutual fund*
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