h) Provisions and contingencies:

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable 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. If the effect of the time
value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value
of money and the risks specific to the liability. Unwinding
of the discount is recognized in the Statement of Profit and
Loss as a finance cost. Provisions are reviewed at each
balance sheet date and are adjusted to reflect the current
best estimate. Provisions are not recognized for future
operating losses.

Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises
from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made. Information on
contingent liability is disclosed in the notes to the financial
statements. Contingent assets are not recognized.

However, when the realization is virtually certain, then
the related asset is no longer a contingent asset, but it is
recognized as an asset.

) Income Taxes:

Income tax expense consists of current and deferred tax.
Current Income Tax:

Current Income Tax liabilities are measured at the amount
expected to be paid to the taxation authorities using the
tax rates and tax laws that are enacted or substantively
enacted at the end of the reporting period. Management
periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations
are subject to interpretation and creates provisions where
appropriate.

Deferred Tax:

Deferred Tax is provided, using the liability method, on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts in the financial
statements. Deferred Income Tax is determined using the
tax rates and tax laws that are enacted or subsequently
enacted at the end of the reporting period.

Deferred Tax liabilities are recognised for all temporary
differences. Deferred tax assets are recognised for all
deductible temporary differences, the carry forward of
unused tax credits 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 against
current tax liabilities and the deferred tax balances relate to
the same taxation authority. Current tax asset and liabilities
are offset where the company has a legally enforceable
right and intends either to settle on net basis, or to realise
the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the statement
of profit & 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.

) 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. It is
determined for an individual asset, unless the asset does
not generate cash inflows that are largely independent
of those from other assets or a groups of assets. Where

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. An impairment
loss is recognised immediately in profit or loss.

In assessing the value in use, the estimated future cash
flows are discounted to their present value using 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.

When an impairment loss subsequently reverses, the
carrying amount of the asset or a CGU is increased to
the revised estimate of its recoverable amount, but so
that the increased carrying amount does not exceed the
carrying amount that would have been determined had no
impairment loss been recognised for the asset or CGU in
prior years. A reversal of an impairment loss is recognised
immediately in profit or loss.

B) Other Accounting Policies:

a) Functional and presentation of currency:

The financial statements are presented in Indian Rupees,
which is the Company's functional currency, and all
amounts are rounded to the nearest rupees in Lakhs,
unless otherwise stated.

b) Measurement of fair values:

A number of the Company's accounting policies and
disclosures require measurement of fair values, for both
financial and non-financial assets and liabilities.

Fair values are categorized into different levels in a fair
value hierarchy based on the inputs used in the valuation
techniques as follows.

- Level 1: quoted prices (unadjusted) in active markets
for identical assets and liabilities.

- Level 2: inputs other than quotes prices included in
Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived
from prices).

- Level 3: inputs for the asset or liability that are not
based on observable market data (unobservable
inputs).

When measuring the fair value of an asset or a liability, the
Company uses observable market data as far as possible.
If the inputs used to measure the fair value of an asset or
a liability fall into different levels of the fair value hierarchy,
then the fair value measurement is categorised in its entirely
in the same level of the fair value hierarchy as the lowest
level input that is significant to the entire measurement.

The Company recognises transfers between levels of
the fair value hierarchy at the end of the reporting period
during which the change has occurred.

Further information about the assumptions made in
measuring fair values is included in the following notes:

- Refer Note 39 - financial instruments

c) Property, Plant and Equipment:

De-recognition

An asset's carrying amount is written down immediately
to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount.

An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Gain
and loss on disposal or retirement of an item of property,
plant and equipment is determined by comparing the sales
proceeds with the carrying amount. These are recognised
in profit or loss.

d) Intangible assets:

Identifiable intangible assets are recognised when the
Company controls the asset and, it is probable that
future economic benefits attributed to the asset will flow
to the Company and the cost of the asset can be reliably
measured.

Intangible assets with finite useful lives that are acquired
separately are measured on initial recognition at cost.
Following initial recognition, such intangible assets
are carried at cost less accumulated amortisation and
accumulated impairment losses.

Amortisation methods and periods

Estimated useful life of Intangible assets are considered
as 5 years. Intangible assets are amortised over its useful
life using the straight-line method. The amortisation period
and the amortisation method for an intangible asset are
reviewed 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 are
considered to modify the amortisation period or method,
as appropriate, and are treated as changes in accounting
estimates. The amortisation expense on intangible assets
with finite life is recognised in the statement of profit
and loss.

Software is amortised over useful life of 5 years.
Derecognition:

An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use or
disposal. Gains or losses arising from derecognition of
an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of the

asset, are recognised in profit or loss when the asset is
derecognised.

e) Investment property:

An investment property is derecognized upon disposal or
when the investment property is permanently withdrawn
from use and no future economic benefits are expected
from the disposal. Any gain or loss arising on Derecognition
of the property (calculated as the difference between the
net disposal proceeds and the carrying amount of the
asset) is included in Statement of Profit and Loss in the
period in which the property is derecognized.

Subsequent expenditure

Subsequent costs are included in the asset's carrying
amount or recognised 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 recognised in statement
of profit and loss as incurred. Any gain or loss on disposal of
investment property calculated as the difference between
the net proceeds from disposal and the carrying amount
of the item is recognised in Statement of Profit and Loss.
Though the Company measures investment property using
cost-based measurement, the fair value of investment
property is disclosed in the note no 6.06 of the standalone
financial statements.

Depreciation

Depreciation on Investment Property has been provided
as per Written down Value method as per the useful life
indicated in Part ‘C' of Schedule II of the Act which is 60
years.

f) Cash and cash equivalents:

Cash and cash equivalents includes cash on hand and at
banks, deposits held at call with banks and 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.

g) 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 (“chief operating decision maker”
as defined under Ind AS 108) assesses the financial
performance and position of the Company and makes
strategic decisions.

h) Foreign currency transactions:

The transactions denominated in currencies other than
the Company's functional currency (foreign currencies)
are translated at the exchange rate prevailing on the

date of transaction. Monetary items denominated in
foreign currencies at the reporting date are translated into
functional currency using the exchange rate prevailing at
that date. Non-monetary items that are to be carried at
historical cost are recorded using exchange rate prevailing
on the date of transaction. Non- monetary items that
are carried at fair value, that are denominated in foreign
currencies, are retranslated at the rates prevailing at the
date when the fair value was determined. Any income or
expenses on account of exchange difference either on
settlement or on translation is recognised as profit or loss.

i) Financial Instrument:

Financial Assets

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instruments of another entity. Classifications of financial
instruments are in accordance with the substance of the
contractual arrangement and as per the definitions of
financial assets, financial liability and an equity instruments.
Financial Assets.

i) Initial recognition and measurement:

At initial recognition, the Company measures a
financial asset (other than financial asset at fair value
through profit or loss) at its fair value plus or minus,
transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of
financial assets carried at fair value through profit and
loss are expensed in the statement of profit & loss.

Subsequent measurement:

For the purpose of subsequent measurement, financial
assets are classified in four categories:

• Debt instrument at amortised cost:

Assets that are held within a business model for
collection of contractual cash flows where those
cash flows represent solely payments of principal
and interest are measured at amortised cost. A gain
or loss on a debt investment that is subsequently
measured at amortised cost and is not part of a
hedging relationship is recognised in profit or loss
when the asset is derecognised or impaired. Interest
income from these financial assets is included in other
income using the effective interest rate method.

• Debt instrument at fair value through other
comprehensive income (FVTOCI):

Assets that are held within a business model for
collection of contractual cash flows and for selling
the financial assets, where the asset's cash flows
represent solely payments of principal and interest, are
measured at fair value through other comprehensive
income (FVTOCI).

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.

• Debt instrument at fair value through profit and loss
(FVTPL):

Financial assets that do not meet the criteria for
amortised cost or FVTOCI 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. Financial assets
at FVTPL are measured at fair value at the end of each
reporting period, with any gains or losses arising on
remeasurement 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.

• Equity instruments:

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.

Investments in equity instruments, other than
Investments in the nature of equity in subsidiaries, are
classified as at FVTPL, unless the Company irrevocably
elects on initial recognition to present subsequent
changes in fair value in other comprehensive income
as stated above.

ii) De-recognition:

A financial asset is primarily derecognised i.e.,
removed from Company's financial statement when:

• The rights to receive cash flows from asset have
expired or

• The Company has transferred its right to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without
material delay to a third party under ‘pass- through'
arrangement and either;

a) The Company has transferred substantially all
the risks and rewards of the assets,

b) The Company has neither transferred nor
retained substantially all the risks and rewards
of the asset, but has transferred control of the
asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if and
to what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognise the transferred
asset to the extent of the Company's continuing
involvement. In that case, the Company also
recognises an associated liability. The transferred
asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
company could be required to repay.

On derecognition of a financial asset in its entirety, the
difference between the asset's carrying amount and the
sum of the consideration received and receivable and
the cumulative gain or loss that had been recognised
in other comprehensive income and accumulated in
equity is recognised in profit or loss if such gain or loss
would have otherwise been recognised in profit or loss
on disposal of that financial asset.

iii) Foreign exchange gains and losses:

The fair value of financial assets denominated in
a foreign currency is determined in that foreign
currency and translated at the spot rate at the end of
each reporting period.

For foreign currency denominated financial assets
measured at amortised cost and FVTPL, the exchange
differences are recognised in profit or loss except for
those which are designated as hedging instruments in
a hedging relationship.

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.

Financial Liabilities and equity instruments:

• De - recognition:

A financial liability is de-recognised when the obligation
under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the de-recognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in profit or loss.

• Offsetting of Financial Instruments:

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

j) Classification of assets and liabilities as
current and non - current:

The Company presents assets and liabilities in Balance
Sheet based on current/non-current classification.

An asset is classified as current when it is:

a) Expected to be realised or intended to be sold or
consumed in normal operating cycle,

b) Held primarily for the purpose of trading,

c) Expected to be realised within twelve months after the
reporting period, or

d) Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

a) It is expected to be settled in normal operating cycle,

b) It is held primarily for the purpose of trading,

c) It is due to be settled within twelve months after the
reporting period, or

d) There is no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash or
cash equivalents. Based on the nature of activities of the
Company and the normal time between acquisition of
assets and their realisation in cash or cash equivalents,
the Company has determined its operating cycle as twelve
months for the purpose of classifications of its assets and
liabilities as current and non-current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

k) Other Income:

Interest income

Interest income from financial assets is recognised when
it is probable that the economic benefits will flow to the
Company. Such interest income is recognised using
effective interest rate method. The effective interest rate
is the rate that discounts estimated future cash receipts
through the expected life of financial assets to the carrying
amount of financial assets.

Interest on income tax refund is recognised on receipt of
refund order.

Dividends

Dividends are recognised when the shareholder's right to
receive payment is established.

(l) Contract asset

A contract asset (Trade Receivable) is the right to
consideration in exchange for goods or services
transferred to the customer. If the Company performs
part of its obligation by transferring goods or services to
a customer before the customer pays consideration or
before payment is due, a contract asset is recognized for
the earned consideration when that right is conditional on
the Company's future performance.

Contract liability

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration from the customer. If a customer
pays consideration before the Company transfers goods or
services to the customer, a contract liability is recognized
when the payment is received. Contract liabilities are
recognized as revenue when the Company performs under
the contract.

m) Employees benefits:

i) Short-term Employee Benefits:

Short-term employee benefit obligations are measured
on an undiscounted basis and are expensed as the
related service is provided. A liability is recognised
for the amount expected to be paid, if the Company
has a present legal or constructive obligation to pay
this amount as a result of past service provided by
the employee, and the amount of obligation can be
estimated reliably.

All employees benefits payable wholly within 12
months of rendering services are classified as Short
Term obligations. Benefits such as salaries, wages,
short term compensated absences, performance
incentives, expected cost of bonus and ex-gratia are
recognised during the period in which the employees
renders related services at the undiscounted amount
of the benefits expected to be paid in exchange for
that service.

ii) Share-based payment transactions

Share-based compensation benefits are provided to
employees via Employee Stock Option Plan to the
subsidiary companies of The Phoenix Mills Limited,
the Parent.

The grant date fair value of options granted under the
Employee Option Plan is recognised as an employee
benefits expense with a corresponding increase
in equity, on a straight-line basis, over the vesting
period, based on the Company's estimate of equity
instruments that will eventually vest. At the end of
each period, the company revises its estimates of the
number of options that are expected to vest based
on the non-market vesting and service conditions.
It recognises the impact of the revision to original
estimates, if any, in the Statement of profit and loss,
with a corresponding adjustment to other equity.

iii) Other long-term benefits

The Company has other long-term benefits in the
form of compensated absences. The present value of
the other long-term employee benefits is determined
based on actuarial valuation using the projected unit
credit method. The rate used to discount defined
benefit obligation is determined by reference to
market yields at the Balance Sheet date on Indian
Government Bonds for the estimated term of
obligations.

Actuarial gains or losses arising on account of
experience adjustment and the effect of changes in
actuarial assumptions are recognised as profit or loss.

Gains or losses on the curtailment or settlement of
other long-term benefits are recognised when the
curtailment or settlement occurs.

n) Borrowing Costs:

General and specific borrowing costs that are directly
attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the period of
time that is required to complete and prepare the asset for
its intended use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get ready
for their intended use or sale.

Interest income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for
such capitalisation.

Other borrowing costs are expensed in the period in which
they are incurred.

Borrowing costs consist of interest and other costs that are
incurred in connection with the borrowing of funds.

o) Earnings per share:

Basic earnings per share is calculated by dividing the net
profit or loss (after tax) for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year.

Diluted earnings per share is calculated by dividing the net
profit or loss (after tax) for the year attributable to equity
shareholders and the weighted average number of equity
shares outstanding during the year, both adjusted for the
effects dilutive potential equity shares.

4 Critical accounting estimates,
assumptions and judgements:

The preparation of the financial statements requires
management to make estimates, judgements and
assumptions that affect the reported balances of assets
and liabilities, disclosure of contingent liabilities as on
the date of financial statements and reported amounts of
income and expenses during the period. Uncertainty about
these assumptions and estimates could result in outcomes
that require a material adjustment to the carrying amount
of assets or liabilities affected in future periods.

The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date
have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the
next financial year. The Company based its assumptions
and estimates on parameters available when the financial
statements were prepared. Existing circumstances and
assumptions about future developments, however, may
change due to market changes or circumstances arising
that are beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

In the process of applying the Company's accounting
policies, management has made the following estimates

and judgements, which have significant effect on the
amounts recognized in the financial statement:

(a) Depreciation and useful lives of Property,
Plant and Equipment including Investment
Property

Property, plant and equipment including Investment
Properties are depreciated over the estimated useful lives
of the assets, after taking into account their estimated
residual value. Management reviews the estimated useful
lives and residual values of the assets annually in order
to determine the amount of depreciation to be recorded
during any reporting period. The useful lives and residual
values are based on the Company's historical experience
with similar assets and take into account anticipated
technological changes. The depreciation for future periods
is adjusted if there are significant changes from previous
estimates.

(b) Investment Property

Fair value of Investment Properties is based on valuations
performed by an accredited registered valuer. The fair value
of the Company's Investment properties has been arrived
at using discounted cash flow method. Under discounted
cash flow method, cash flow projections based on reliable
estimates of cash flow are discounted. The main inputs
used are rental growth rate, terminal yields and discount
rates which are based on comparable transactions and
industry data.

(c) Recoverability of trade receivables

Judgments are required in assessing the recoverability
of overdue trade receivables and determining whether
a provision against those receivables is required. The
Company uses a provision matrix to determine impairment
loss allowance on its trade receivables. The provision
matrix is based on its historically observed default rates
over the expected life of the trade receivables and is
adjusted for forward-looking estimates. At every reporting
date, the historical observed default rates are updated and
changes in the forward-looking estimates are analyzed.

(d) Defined Benefit plan

The cost of the defined benefit plan and other post¬
employment benefits and the present value of such
obligation are determined using actuarial valuations. An
actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate, future
salary increases, mortality rates and attrition rate. Due to
the complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly sensitive
to changes in these assumptions. All assumptions are
reviewed at each reporting date.

(e) Provisions:

Provisions are recognized in the period when it becomes
probable that there will be a future outflow of funds resulting
from past operations or events and the amount of cash
outflow can be reliably estimated. The timing of recognition
and quantification of provisions require the application of
judgement to existing facts and circumstances, which can
be subject to change. Since the cash outflows can take
place many years in the future, the carrying amounts of
provisions are reviewed regularly and adjusted to take
account of changing facts and circumstances.

(f) Impairment of financial assets:

The impairment provisions for financial assets are based
on assumptions about risk of default and expected cash
loss rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment
calculation, based on Company's past history, existing
market conditions as well as forward looking estimates at
the end of each reporting period.

Estimates and judgements are based on historical
experience and other factors, including expectations
of future events that may have a financial impact on the
Company and that are believed to be reasonable under the
circumstances. They are continually evaluated.

(g) Fair Value measurement:

When the fair values of financials assets and financial
liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets, their
fair value is measured using valuation techniques, which
involve various judgements and assumptions.

(h) Tax expense and related contingencies:

The Company's tax jurisdiction is India. Significant
judgements are involved in determining the provision for
income taxes, including amount expected to be paid/
recovered for uncertain tax positions. Significant judgement
is involved in determining house property income and
business income. Further, significant judgement is
exercised to ascertain amount of deferred tax asset
(DTA) that could be recognized based on the probability
that future taxable profits will be available against which
DTA can be utilized and amount of temporary difference
in which DTA cannot be recognized on want of probable
taxable profits.

(i) Assessment of carrying value of
investments in subsidiaries and associates:

In developing the assumptions and estimates in relation to
assessing the carrying value of Investments in Equity Shares
and Investments in Optionally Convertible Debentures
(OCD)/ Optionally Fully Convertible Debentures (OFCD)
of subsidiaries and associates, the Management has
considered the economic conditions prevailing as at the
date of approval of these financial statements and has
used internal and external sources of information to the
extent determined by it.

6.01 The Company's investment properties consists of Retail Mall and Commercial properties in India. The Management has
determined that the investment properties consist of One class of asset - Retail Mall and Commercial Property - based on the
nature, characteristics and risks of each property.

6.02 Right on Leasehold Land consist of long term lease rights for the property situated at Phoenix Palladium, Senapati Bapat Marg,
Lower Parel, Mumbai.

6.03 Contractual Obligation

Refer note 46(a) for disclosure of contractual commitments for the acquisition of investment properties.

6.04 Capitalised Borrowing cost

No borrowing costs were capitalised during the current year and previous year.

6.05 Investment Property Pledge as security

Freehold Land and Building included in Investment Property Under Construction (excluding the building under construction at
Phoenix Palladium named as Rise II) are Secured by Registered Mortgage in respect of certain immovable properties situated
at Phoenix Palladium, Senapati bapat marg, Lower Parel, Mumbai and hypothecation of rentals receivable from licensees on
pari pasu basis against the borrowings.

Refer note no 20 and 23

The Company has created a charge, by way of mortgage, on 12,714.25 square meters of its land on Plot B for the loan taken
by its subsidiary, Pallazzio Hotels & Leisure Limited (PHLL) from the banks. The Company has developed a mixed use retail
structure on the said land. Loan amount outstanding for the year end is INR 24,243.39 lakhs (31 March 2024: INR 29,420.87
lakhs).

6.06 The Company's investment properties consist of Retail Mall which has been determined based on the nature, characteristics
and risks of each property. As at 31 March 2025 and 31 March 2024, the fair values of the properties are INR 6,21,200 lakhs
and INR 5,61,120 lakhs respectively.

The fair value of investment property has been determined by external, independent registered property valuers, having
appropriate recognised professional qualification and recent experience in the location and category of the property being
valued. A valuation model in accordance with that recommended by the international valuation standards committee had
been applied. The Company obtains independent valuations for its investment properties annually and fair value measurement
has been categorised as Level 3. The fair value has been arrived using discounted cash flow projections based on reliable
estimates of future cash flows considering growth in rental of 5% (31 March 2024 : 5%) and discount rate of 12% (31 March
2024 : 12.15%).

Note : The above amount does not include the unamortised processing fees of INR 404.74 Lakhs paid at the time of borrowing.
Above borrowing are secured by:

1) First Pari Passu Mortgage\charge on Undivided share of land to the extent of approximately 8,279.24 sq. metres in Plot
A out of total area of Plot A admeasuring approximately 21,020.24 sq. metres which comprises of existing and proposed
structures with BUA approximately 37,535.52 sq. metres on Plot A and existing structure with BUA approximately
14,737.42 sq. metres on Plot B alongwith entire car parking spaces of P1, P2, and P3 levels situated above Sai Podium
at Block 41/47 and entire car parking spaces of P4 and P5 levels situated above Palladium Mall at Block 34/14B.

The above is part of Larger Property situated at Phoenix Mills Compound, 462, Senapati Bapat Marg, Lower Parel,
Mumbai - 400 013, in the state of Maharashtra, India.

It is hereby clarified that the security excludes -

(i) The portion of MCGM Leasehold Land admeasuring 11,811 sq. mtrs and

(ii) Plutocrat UDS in Plot A to the extent of 13,629.2 sq. mts.

(iii) Plot B Land (Land underneath Palladium Mall)

2) First pari-passu charge by way of hypothecation on all current assets, movables and inflows from existing & future sales,
leasing, leave & license, CAM, receivables in relation to the Project situated at Phoenix Palladium comprising various
zones like Palladium, Sky Zone, Courtyard etc (along with undivided share of the FSI on land) at Senapati Bapat Marg,
Lower parel.

3) First exclusive charge on DSRA in the form of a fixed deposit to be maintained with Bank, and First Pari- Passu charge on
Escrow A/c and All Current A/c.

Interest is calculated on T-Bill / REPO spread / applicable margin. Average rate of Interest varies in the range of of
8.29% p.a. to 8.60% p.a. ( PY 8.58% p.a. to 8.63% p.a ) during the FY 2024-25. Interest is calculated on reference rate
as published by RBI applicable margin.

These gratuity plan typically expose to the company to actuarial risks such as: investment risk, interest risk, longevity risk and
salary risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds. For other defined benefit plans, the discount rate is
determined by reference to market yield at the end of reporting period on high quality corporate bonds when there is a deep
market for such bonds, if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the
return on the plan debt investments.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of mortality of plan
participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the
plan's liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As
such, an increase in salary of plan participants will increase the plan's liability.

36 Share-based payment arrangements:

A. Description of share-based payment arrangements

i. Share option programmes (equity-settled)

The Company has granted stock options under the following employee stock option scheme:

1. 33,90,000 Equity Shares were reserved for allotment of equity shares under Employee Stock Option Scheme 2007
(‘ESOP 2007'). The ESOP 2007 was approved by the Shareholder on January 31,2008 and was valid for 10 (Ten) years
and thereafter no Grants were allowed be made under the ESOP 2007. All the options granted in ESOP 2007 were vested
as per the vesting plan and the last date for exercising the options granted on October 24, 2016 was October 23, 2024
the ESOP 2007 has expired and is no longer in effect.

During the year 6,550 Equity Shares have been issued and allotted to the eligible employees against exercise of Options
under ESOP 2007.

2. 31,00,000 Equity Shares are reserved for allotment of equity shares under Employee Stock Option Scheme 2018. Post
Bonus Issue, as on September 23, 2024, 59,11,612 Equity Shares are reserved for allotment of equity shares under
Employee Stock Option Scheme 2018.

During the year 74,653 Equity Shares have been issued and allotted to the eligible employees against exercise of Options
under ESOP 2018.

Each option when exercised would be converted into one fully paid-up equity share of INR 2 each of the Company. The
options granted under ESOP 2007 and options granted under the ESOP 2018 scheme carry no rights to dividends and
no voting rights till the date of exercise.

Fair valuation techniques:

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant
data available.

The following methods and assumptions were used to estimate the fair values

1. Fair value of the Quoted Equity Shares are based on price of equity share on stock exchange.

2. Fair value of the Mutual funds, Debt Securities and listed prefernces shares are based on published NAV price .

3. Fair value of unquoted equity shares and Compulsory Convertible Debentures is Fair value under level 3 of hierarchy.

4. Fair value of Long term Borrowings is calculated based on discounted cash flow.

5. Fair value of Financial Assets & Financial Liability (except Long term Borrowings) are carried at amortised cost and is not
materially different from it's carrying cost.

40 Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

‘Amount transferred to separate Unspent CSR A/c as per requirement of companies act 2013.

Contributed INR 270.49 Lakhs (31 March 2024 : INR 80.10 Lakhs) during the current financial year to related party and others.

The CSR unspent amount relates to ongoing projects that have been identified by the Board. The unspent amount for these
ongoing projects, which spans over a period of three years, has been transferred to the “Unspent CSR Account” and the
transferred amount shall be spent as per obligation within three financial years of the date of such transfer.

#Refer note no 42

45 Capital management

The primary objective of the Company's capital management is to maximize the Shareholder's value. The Company's primary
objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and
safeguard the Company's ability to continue as a going concern in order to support its business and provide maximum returns
for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No
changes were made in the objectives, policies or processes during the year ended March 31,2025 and March 31,2024.

For the purpose of the Company's capital management, capital includes issued capital, share premium and all other equity
reserves. Net debt includes, interest bearing loans and borrowings less cash and short term deposits.

46 Capital Commitment and Contingent liabilities
A Capital Commitment :

Estimated amount of contracts remaining to be executed on capital account and not provided for in the accounts is INR
2,587.58 Lakhs (31 March 2024 : INR 5,834.33 Lakhs) net of advance paid.

B Contingent liabilities

a The Income tax assessments of the Company have been completed up to Assessment Year 2022-23. The disputed tax
demand outstanding upto the said Assessment year is INR 13,137.82 Lakhs (31 March 2024 : INR 14,366.66 Lakhs).The
Company as well as the Income Tax Department are in appeal before the Authorities. The impact thereof, if any, on the tax
position can be ascertained only after the disposal of the appeals. Accordingly, the accounting impact if any arising there from
will be considered in the year of the disposal of the said appeals. Out of the above amount, INR 4,630.57 Lakhs (31 March
2024 : INR 4,643.86 Lakhs) pertain to matters where ITAT orders are in favour of the Company and the income tax department
is in appeal before honourable High court.

b The Company has received demand on traces for TDS default for Assessment Year 2014-2015 to 2019-2020 amounting to
INR 69.46 Lakhs (31 March 2024 : INR 69.46 Lakhs).The Company has filed an appeal with CIT (A) against the said demand.

c The Company has received an order of Commissioner of GST & Central Excise from Service Tax Department, in respect of the
Service Tax on renting of immovable property related matter filed by Retailers Association of India (RAI). The order seeks to
recover the interest for delayed payment of service tax at an appropriate rate. The company has filed an appeal with CESTAT
against the said order. The interest liability on such delayed payment of service tax shall be determined on the basis of the
Supreme Court judgement on the RAI members' Service Tax matters, which is pending before honourable Supreme court.

d Demand notices received on account of arrears of Provident Fund dues aggregating to INR 24.72 Lakhs (31 March 2024 : INR
24.72 Lakhs) are disputed by the Company. The Company has paid INR 10.00 Lakhs against the said PF. demands to the
PF authorities.

e Outstanding guarantees given by Banks of INR 77.22 Lakhs (31 March 2024 : INR 77.22 Lakhs).

f As per the hotel operating agreement, PML had given unconditional and irrevocable guarantee on behalf of the Pallazzio Hotels

& Leisure Limited ( PHLL) to Starwood Hotels & Resorts India Private Limited. The said guarantee is outstanding in the current
year for an amount of INR 4,192.55 Lakhs and was also outstanding in the previous year for an amount of INR 4,464.50 Lakhs.
Further, the Company has also committed to support PHLL as and when the need arises by infusing the required funds.

g The Company has committed to provide financial support to Starboard Hotels Private Limited as and when the need arises by

infusing the required funds to meets its obligation of debts and other liabilities (current as well as in future).

h In Suit No.7537 of 1981 (HC Suit No. 337 of 1981) (in the matter of Cotton Corporation of India (CCI) v/s. the Phoenix Mills
Limited (PML)), by an order dated 4th July 2018, the Bombay City Civil Court has directed PML to pay a sum of INR 79.66
Lakhs along with interest thereon. PML has challenged the said order in First Appeal No.140 of 2019 and the same is pending
adjudication before the Hon'ble Bombay High Court.

i The Company has decided to litigate the amount paid under protest during the course of GST Investigation in financial year
2023-24 amounting to INR 862.92 Lakhs (31 March 2024 : 1,997.69 Lakhs) and the same is pending before appellate forum,
thus the same has been accounted for as Balance with Government Authorities.

j During the Financial Year 2024-25, Company has received order against Show Cause Notices from GST department for
Financial Year 2017-18, 2018-19 and 2020-21 raising demand of INR 326.48 Lakhs (31 March 2024 : Nil), INR 21.45 Lakhs
(31 March 2024 : Nil), INR 144.26 Lakhs (31 March 2024 : Nil) respectively inclusive of interest and penalty on account
of issues related to applicability of place of supply on one of the services rendered by the company and GST input credit
availed by Company on certain expenses. The company has filed appeal against the order for FY 2018-19 before JC (A) .The
Company is in the process of filling appeal against the order for FY 2017-18 and 2020-21 before appropriate forum.

k. The above litigations are not expected to have any material adverse effect on the financial position of the Company.

47 Municipal Corporation of Greater Mumbai (MCGM) had raised demand of INR 3,002.18 Lakhs (31 March 2024 : INR 2,548.18
lakhs) towards property tax for the period April 2010 - March 2025, which was hiked by imposing value added taxes.

The Company had filed a writ petition bearing number 872 of 2016 dated 21^st March 2016 before the Bombay High Court
challenging the property tax assessment of PML and the bills raised by MCGM from financial year 2010 up till financial year
2023. The High Court vide its order dated 24^th April 2019 quashed the Capital Value Rules and allowed PML to pay 50% (fifty
per cent) of the amount demanded (“Interim Order”). MCGM had challenged the Interim Order before the Supreme Court
via Special Leave to Appeal [C] No(s). 17009 / 2019. The Honorable Supreme Court in its interim order dated 29 July 2019
granted PML interim relief to pay the property tax basis the previous Interim Order of Bombay High Court and admitted the
petition. PML has, in accordance with the directions of the Honorable Supreme Court, duly made payments of the amounts
specified under the Interim Order. The Supreme Court vide its order dated 7^th November 2022 upheld the order passed
by the Bombay High Court and disposed off the said SLP MCGM had challenged the Order dated 7th November 2022
before the Supreme Court via Review Petition (Civil) No. 298 of 2023. The Honorable Supreme Court vide its order dated
14^th March 2023 dismissed the said review petition.

49 Particulars of loans given investments made, guarantees given and securities
provided :

The company has complied with provision of section 186 (1) of the Companies Act 2013 (“the Act”), with respect to investments
made. The Company being infrastrucure facilities provider as defined under section 186 of the Act read with Schedule VI of
the Act. The provisions of section 186 (other than clause 1) of the Act with respect to investment, loans given, guarantees and
security provided are not applicable”.

52 Additional regulatory information required by Schedule III

i) Details of benami property held

No proceedings have been initiated on or are pending against the company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii) Borrowing secured against current assets

Filing of Quarterly returns / stock statements with HDFC Bank Limited, Kotak Mahindra Bank Limited and HSBC India are not
applicable to Phoenix Mills Limited loan facilities and hence, reporting Quarterly return/statements reconciliation with books of
accounts is not applicable.

iii) Wilful defaulter

The Company have not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

iv) Relationship with struck off companies

The Company has no transaction with Struck off companies under Companies Act, 2013 or Companies Act, 1956.

v) Registration of charges or satisfaction with Registrar of Companies

All the charges created or satisfied during the year was registered with registrar of companies within the due time.

vi) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

vii) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current financial year.

viii) Undisclosed Income

The Company has not surrendered or disclosed any income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account.

ix) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

x) Valuation of Property, Plant and Equipment, Intangible Asset

The Company has not revalued its Property, Plant and Equipment (including right-of-use assets) or intangible assets during the
current or previous year.

(Refer note no 5 and 8)

xi) Utilisation of borrowed funds, equity and share premium

The borrowings obtained by the company from banks have been applied for the purposes for which such loans were taken.

xii) Disclosure under Rule 11e

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other persons or entities, including foreign entities (“’’Intermediaries””), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever (“’’Ultimate Beneficiaries””) by or on behalf of the Company or provide
any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company has not received any funds from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with
the understanding, whether recorded in writing or otherwise, that the Company shall, 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
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries”