(u) Provisions, contingent assets and contingent
liabilities
Provisions are recognized only when there is a
present obligation (legal or constructive), as a result
of past events, and it is probable that an outflow
of resources embodying economic benefits will be
required to settle the obligation and when a reliable
estimate of the amount of obligation can be made
at the reporting date. Provisions are discounted to
their present values, where the time value of money
is material, using a current pre-tax rate that reflects,
when appropriate, 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 cost.
When the Company expects some or all of a
provision to be reimbursed, the reimbursement is
recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense
relating to a provision is presented in the statement
of profit and loss net of any reimbursement.
Contingent liability is disclosed for:
• Possible obligations which will be confirmed
only by future events not wholly within the
control of the Company; or
• Present obligations arising from past events
where it is not probable that an outflow
of resources will be required to settle the
obligation or a reliable estimate of the amount
of the obligation cannot be made.
Contingent assets are neither recognised nor
disclosed except when realisation of income is
virtually certain, related asset is disclosed.
(v) Cash and cash equivalents
Cash and cash equivalents for the purposes of
statement of cash flow comprise cash at bank
and in hand and short-term bank deposits with an
original maturity of three months or less.
(w) Income taxes
Tax expense comprises current and deferred tax.
Current and deferred tax is recognised in statement
of profit and loss except to the extent that it relates
to items recognised directly in equity or other
comprehensive income.
The current income-tax charge is calculated on the
basis of the tax laws enacted at the balance sheet
date. Management periodically evaluates positions
taken in tax returns with respect to situations
in which applicable tax regulation is subject to
interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be
paid to the tax authorities.
Deferred tax is provided in full, on temporary
differences arising between the tax base of assets
and liabilities and their carrying amounts in the
financial statements. Deferred tax is determined
using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting
period and are expected to apply when the related
deferred tax asset is realised or the deferred
tax liability is settled. Deferred tax assets are
recognised for all deductible temporary differences
and unused tax losses only if it is probable that
future taxable amounts will be available to utilise
those temporary differences and losses.
I n the situations where the company is entitled
to a tax holiday under the Income-tax Act, 1961
enacted in India, no deferred tax (asset or
liability) is recognized in respect of temporary
differences which reverse during the tax holiday
period, to the extent the concerned entity’s gross
total income is subject to the deduction during
the tax holiday period. Deferred tax in respect of
temporary differences which reverse after the tax
holiday period is recognized in the year in which
the temporary differences originate. However, the
Company restricts recognition of deferred tax assets
to the extent it is probable that sufficient future
taxable income will be available against which such
deferred tax assets can be realized. For recognition
of deferred taxes, the temporary differences which
originate first are considered to reverse first.
Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority.
Minimum Alternate Tax (MAT) paid in a year is
charged to the statement of profit and loss as
current tax for the year. The deferred tax asset
is recognised for MAT credit available only to the
extent that it is probable that the respective entity
will pay normal income tax during the specified
period, i.e., the period for which MAT credit is
allowed to be carried forward. In the year in which
the entity recognizes MAT credit as an asset, it is
created by way of credit to the statement of profit
and loss and shown as part of deferred tax asset.
The Company reviews the “MAT credit entitlement”
asset at each reporting date and writes down the
asset to the extent that it is no longer probable that
it will pay normal tax during the specified period.
(x) Non-current assets held for sale and discontinued
operations
The Company classifies non-current assets as held
for sale if their carrying amounts will be recovered
principally through a sale rather than through
continuing use. Actions required to complete the
sale should indicate that it is unlikely that significant
changes to the sale will be made or that the decision
to sell will be withdrawn. Management must be
committed to the sale expected within one year
from the date of classification.
The criteria for held for sale classification is
regarded met only when the assets or disposal
group is available for immediate sale in its present
condition, subject only to terms that are usual and
customary for sales of such assets, its sale is
highly probable; and it will genuinely be sold, not
abandoned. The Company treats sale of the asset
to be highly probable when:
i. The appropriate level of management is
committed to a plan to sell the asset;
ii. An active programme to locate a buyer and
complete the plan has been initiated;
iii. The asset is being actively marketed for sale
at a price that is reasonable in relation to its
current fair value;
iv. The sale is expected to qualify for recognition
as a completed sale within one year from the
date of classification; and
v. Actions required to complete the plan indicate
that it is unlikely that significant changes
to the plan will be made or that the plan
will be withdrawn.
Non-current assets held for sale are measured at
the lower of their carrying amount and the fair value
less costs to sell. Assets and liabilities classified
as held for sale are presented separately in the
standalone balance sheet.
Investment property once classified as held for sale
is not depreciated or amortised.
(y) Critical estimates and judgements
The preparation of the Company’s financial
statements requires management to make
judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities.
Uncertainty about these judgements, assumptions
and estimates could result in outcomes that require
a material adjustment to the carrying amount of
assets or liabilities affected in future periods.
Judgements
Impairment of non-financial assets
The evaluation of applicability of indicators of
impairment of assets requires assessment of several
external and internal factors which could result in
deterioration of recoverable amount of the assets.
Impairment of financial assets
The Company estimates the recoverable amount of
trade receivables and other financial assets where
collection of the full amount is expected to be no
longer probable. For individually significant amounts,
this estimation is performed on an individual basis
considering the length of time past due, financial
condition of the counter- party, impending legal
disputes, if any and other relevant factors.
Recognition of deferred tax assets
The extent to which deferred tax assets can be
recognized is based on an assessment of the
probability of the Company’s future taxable income
against which the deferred tax assets can be utilized.
Provisions
At each balance sheet date basis the management
judgment, changes in facts and legal aspects, the
Company assesses the requirement of provisions
against the outstanding contingent liabilities.
However, the actual future outcome may be
different from this judgement.
Contingencies
In the normal course of business, contingent
liabilities may arise from litigation, taxation and
other claims against the Company. A tax provision
is recognised when the Company has a present
obligation as a result of a past event; it is probable
that the Company will be required to settle that
obligation. Where it is management’s assessment
that the outcome cannot be reliably quantified or
is uncertain the claims are disclosed as contingent
liabilities unless the likelihood of an adverse
outcome is remote. Such liabilities are disclosed in
the notes but are not provided for in the financial
statements. When considering the classification
of a legal or tax cases as probable, possible or
remote there is judgement involved. This pertains
to the application of the legislation, which in certain
cases is based upon management’s interpretation
of country specific tax law, in particular India, and
the likelihood of settlement. Management uses
in-house and external legal professionals to inform
their decision. Although there can be no assurance
regarding the final outcome of the legal proceedings,
the Company does not expect them to have a
materially adverse impact on the Company’s
financial position or profitability.
Leases
The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses significant
judgement in assessing the lease term (including
anticipated renewals) and the applicable discount
rate. The Company determines the lease term as
the non-cancellable period of a lease, together
with both periods covered by an option to extend
the lease if the Company is reasonably certain
to exercise that option; and periods covered by
an option to terminate the lease if the Company
is reasonably certain not to exercise that option.
In assessing whether the Company is reasonably
certain to exercise an option to extend a lease,
or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances
that create an economic incentive for the Company
to exercise the option to extend the lease, or not
to exercise the option to terminate the lease.
The Company revises the lease term if there is a
change in the non-cancellable period of a lease.
Estimates
Revenue and inventories
The estimates around total budgeted cost i.e.,
outcomes of underlying construction and service
contracts, which further require estimates to
be made for changes in work scopes, claims
(compensation, rebates, etc.), the cost of meeting
other contractual obligations to the customers and
other payments to the extent they are probable,
and they are capable of being reliably measured.
For the purpose of making these estimates, the
Company used the available contractual and
historical information and also its expectations of
future costs. The estimates of the saleable area
are also reviewed periodically and effect of any
changes in such estimates is recognised in the
period such changes are determined.
Estimation of net realisable value for inventory
I nventory is stated at the lower of cost and net
realisable value (NRV). NRV for completed
inventory is assessed by reference to market
conditions and prices existing at the reporting
date and is determined by the Company, based on
comparable transactions identified by the Company
for properties in the same geographical market
serving the same real estate segment. NRV in
respect of inventory under construction is assessed
with reference to market prices at the reporting date
for similar completed property, less estimated costs
to complete construction and an estimate of the
time value of money to the date of completion.
Accounting for revenue and land cost for projects
executed through joint development arrangements
with revenue sharing arrangement
For projects executed through joint development
arrangements with revenue sharing arrangements,
the Company has evaluated that land owners
are engaged in the same line of business as the
Company and such contracts are not contracts with
customers, but a transaction for purchase of land/
development rights.
The corresponding land/ development rights
received under joint development arrangement
is measured at the fair value of the estimated
consideration payable to the land owner and the
same is accounted on launch of the project. The fair
value is estimated with reference to the terms of the
joint development arrangement. Such assessment
is carried out at the launch of the real estate
project and is reassessed at each reporting period.
The management is of the view that the fair value
method and estimates are reflective of the current
market condition.
Accounting for revenue and land cost for projects
executed through joint development arrangements
with area share arrangement
For projects executed through joint development
with area share arrangement, the Company has
evaluated that land owners are not engaged in
the same line of business as the Company and
hence, has concluded that such arrangements
are contracts with customers. The revenue from
the development and transfer of constructed area
and the corresponding land/ development rights
received under joint development arrangements
is measured at the fair value of the estimated
construction service to be rendered to the
land-owners plus an appropriate margin and the
same is accounted from launch of the project.
The fair value is estimated with reference to the
terms of the joint development arrangements
and the related cost that is allocable to discharge
the obligation of the Company under the joint
development arrangements. The management is of
the view that the fair value method and estimates
are reflective of the prevailing market condition at
the relevant time.
Useful lives of depreciable/amortisable assets
Management reviews its estimate of the useful lives
of depreciable/amortisable assets at each reporting
date, based on the expected utility of the assets.
Uncertainties in these estimates relate to technical
and economic obsolescence that may change the
utilisation of assets.
Fair value measurement
Management applies valuation techniques to
determine the fair value of financial instruments
(where active market quotes are not available).
This involves developing estimates and assumptions
consistent with how market participants would price
the instrument.
Fair valuation of investment property
Investment property is stated at cost. However, as
per Ind AS 40, there is a requirement to disclose fair
value as at the balance sheet date. The Company
engaged independent valuation specialists to
determine the fair value of its investment property
as at reporting date. Sales comparison method/
market survey method under market approach
is used to estimate the market value of the land.
Cost of construction method under cost approach
is adopted for building valuation. The determination
of the fair value of investment properties requires
the prevailing market rates for similar size plots in
the same locality which is to be considered after
enquiries being done from local property dealers
and real estate agents.
Defined benefit obligation (DBO)
Management’s estimate of the DBO is based
on a number of underlying assumptions such
as standard rates of inflation, mortality, discount
rate and anticipation of future salary increases.
Variation in these assumptions may significantly
impact the DBO amount and the annual defined
benefit expenses.
(a) The Company had been eligible for deduction under section 80-IBA of Income-tax Act, 1961 (subject to
compliance of conditions specified under that section) in respect of its profits and gains derived from the business
of developing and building its housing project. Pursuant to Taxation Laws (Amendment) Act, 2019 effective 1
April 2019, domestic companies have the option to pay corporate income tax at the lower rate (‘new tax regime’),
subject to certain conditions. As at 31 March 2024, the Company did not have plans to opt the new tax regime
considering the value of deductions under the Income- tax Act, 1961 were greater than the benefit that would
have accrued by opting the new tax regime and consequently, the Company had not created deferred tax asset
in respect of timing differences that shall reverse during the tax holiday period.
The Company reassesses the above- mentioned tax regime options as at each reporting date. As at 31
March 2025, the Company taking into account the future business projections and outlook, has decided to opt
for the new tax regime under Section 115BAA effective current financial year and the consequential impact
thereof, has been considered in the current tax and deferred tax computation for the current year.
Based on the future business projections of taxable earnings, the Company has recognized deferred tax
asset (net) amounting to ' 576.70 million as at 31 March 2025, on carry forward business losses [pertaining to
assessment year 2022-23 to assessment year 2024-25 and eligible for carry forward for 8 subsequent years
from the respective assessment year], unabsorbed depreciation [having indefinite time period for carryforward
and set off] and other timing/ temporary differences, at the tax rates at which such assets are expected to
be realized. The management is reasonably certain of realization of the above-mentioned deferred tax asset
in near future.
d. Aggregate number of shares issued, for consideration other than cash
(i) During the year ended 31 March 2022, the Board of Directors of the Company had approved share split of
equity shares from ' 10 per share to ' 1 per share and the same was duly approved by the shareholders of the
Company. Accordingly, the number of issued, subscribed and fully paid up shares had increased from 5,687,940
shares to 56,879,400 shares.
Further, during the year ended 31 March 2022, the Company had also issued 56,879,400 bonus shares in the
ratio of 1:1 to the existing shareholders as on 23 March 2022 by utilising the securities premium account."
(ii) During the year ended 31 March 2023, the Board of Directors and the Shareholders of the Company had passed
a resolution to convert all CCDs of the Company into equity shares in connection with the Initial Public Offer
by the Company. Accordingly, such CCDs were converted into 11,089,554 equity shares at ' 417 per equity
share (including '416 per share as securities premium) in accordance with the terms of the agreements with
the CCD holders.
Trade receivables
The Company closely monitors the credit-worthiness of customers, thereby, limiting the credit risk. The Company
uses a simplified approach (lifetime expected credit loss model) for the purpose of computation of expected
credit loss for trade receivables. Trade receivables also include receivables from group companies where the
credit risk is assessed as low.
Cash and cash equivalents and other bank balances
Credit risk related to cash and cash equivalents and bank deposits is managed by only diversifying bank deposits
and accounts in different banks. Credit risk is considered low because the Company deals with reputed banks.
Loans and other financial assets
Loans and other financial assets measured at amortized cost includes security deposits and other receivables.
Credit risk related to these financial assets is managed by monitoring the recoverability of such amounts
continuously. With respect to other financial assets, credit risk is considered low because the Company is in
possession of the underlying asset. Further, the Company creates provision by assessing individual financial
asset for expectation of any credit loss basis expected credit loss model.
ii) Concentration of financial assets
The Company carries on the business as a real estate developer including provision of construction
services. Loans and other financial assets majorly represents loans to related parties and deposits given for
business purposes.
b) Credit risk exposure
i) Provision for expected credit losses
The Company provides for 12 month expected credit losses for following financial assets:
The credit risk for cash and cash equivalents and other bank balances is considered negligible, since the
counterparties are reputable banks with high quality external credit ratings. Loan is given to subsidiaries.
Accordingly, credit risk for loan is considered negligible. Other financial assets includes fixed deposits, unbilled
revenue, land advances, security deposits receivable for which credit risk is considered negligible considering
the Company is already in possession of the property against which the deposit/advance is given and significant
part of unbilled revenue is due from subsidiary companies.
Expected credit loss for trade receivables under simplified approach
As at 31 March 2025 and 31 March 2024, the Company considered the individual probabilities of default of its
financial assets (other than trade receivables) and determined that in respect of counterparties with low credit
risk, no default events other than mentioned above are considered to be possible within the 12 months after the
reporting date. In respect of trade receivables, the Company measures the loss allowance at an amount equal
to lifetime expected credit losses using a simplified approach.
The Company measures the expected credit loss of trade receivables based on historical trend, industry
practices and the business environment in which the entity operates. Loss rates are based on the actual credit
loss experience and past trends. Based on historical data, loss of collection on receivables is not material.
Hence, no additional provision is required.
B) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity
is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.
Maturities of financial liabilities
The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their
contractual maturities.
iii) Foreign exchange risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with
respect to the USD. Foreign exchange risk arises from recognised liabilities denominated in a currency that is
not the functional currency of any of the Company. Considering the low volume of foreign currency transactions,
the Company's exposure to foreign currency risk is limited.
There are no unhedged foreign currency exposures as at 31 March 2025 and 31 March 2024.
Customer related and other matters
(a) During the year ended 31 March 2025, the Company received orders from the Haryana RERA authority, awarding
delay compensation in favour of certain customers with respect to 1 of its real estate project. The Company has filed
an appeal before the Hon'ble Haryana Real Estate Appellate Tribunal ('HREAT') and deposited ' 6.59 million (31
March 2024: Nil) under protest. The appeal is currently pending for hearing.
The management has assessed the matter in consultation with its legal experts and is of the view that no material
liability shall devolve on the Company, in respect of the above matter, requiring any adjustment in these standalone
financial statements.
(b) Litigation with contractor - Refer Note G
(c) The Company has certain other litigations involving customers, vendors, contractors labourers and land-owners
in the normal course of business. The management has assessed the above matters in consultation with its legal
experts and is of the view that no material liability shall devolve on the Company, requiring any adjustment in these
standalone financial statements.
A For assessment year 2014-15, an order was passed by DCIT Central Circle (4), New Delhi on 27 March 2023
against the Company raising demand of ' 1.04 millions on account of various additions. On this, the Company
had filed a rectification request before assessing officer on 31 March 2023 which is currently pending disposal.
The said demand has been currently adjusted with the refund claim for assessment year 2022-23.
B For assessment year 2015-16, an order was passed by DCIT Central Circle (4), New Delhi on 28 March 2023
against the Company raising demand of ' 4.38 millions on account of various additions. On this, the Company
had filed an appeal before National Faceless Appeal Centre (NFAC), Delhi on 19 April 2023. In the said matter,
CIT(A) has passed an order on 22 February 2025 against the Company. In response, the Company has filed an
appeal before ITAT, Delhi which is yet to be heard. The said demand has been currently adjusted with the refund
claim for assessment year 2022-23.
C For assessment year 2016-17, an order was passed by DCIT Central Circle (4), New Delhi on 27 March 2023
against the Company raising demand of ' 13.28 millions on account of various additions. On this, the Company
had filed an appeal before National Faceless Appeal Centre (NFAC), Delhi on 19 April 2023. In the said matter,
CIT(A) has passed an order on 22 February 2025 against the Company. In response, the Company has filed an
appeal before ITAT, Delhi which is yet to be heard. The said demand has been currently adjusted with the refund
claim for assessment year 2022-23.
D For assessment year 2016-17, an order was passed by DCIT Circle-23(2), New Delhi against the Company
raising demand of ' 111.88 millions on account of various additions. On this, the Company filed an appeal before
Commissioner of CIT(A) and CIT(A) passed an order dated 16 September 2019 in favour of the Company.
On 20 November 2019, Income tax department had filed an appeal before ITAT. On 7 February 2025, the order
has been passed by ITAT in favor of the Company.
E For assessment year 2019-20, an order was passed by DCIT Central Circle (4), New Delhi on 27 March 2023
against the Company raising demand of ' 1.21 millions on account of various additions. On this, the Company
had filed a rectification request before assessing officer on 31 March 2023 which is currently pending disposal.
The said demand has been currently adjusted with the refund claim for assessment year 2022-23.
F For financial year 2018-19, an order has been passed by the Sales Tax offiicer (SGST Delhi) on 16 April 2024
raising a demand against the company of ' 1.96 million. On this, the Company had filed an appeal on 13
July 2024. Subsequently, the Company had withdrawn the appeal and filed the waiver application for Amnesty
Scheme u/s 128A on 6 March 2025 and further, had deposited the entire demand of tax (excluding interest and
penalty of ' 0.99 million as the same is eligible for waiver). The said application is yet to be approved by the
GST authorities.
The Company has assessed that it has strong likelihood of succeeding in the above matters and therefore,
no adjustments are required in the standalone financial statements.The future cash outflows in respect of
the above litigations/demands are determinable only on receipt of judgement/ decision pending with various
forums/ authorities.
G The Company had executed Agreement/ Work Orders/LOI with a contractor and its group companies during
the previous periods, for executing civil work at project sites and had given advances aggregating to ' 286.93
millions (gross).
The progress of work by the contractor was slow due to inadequate deployment of requisite technical manpower,
labour equipment and plant and machinery at site, that resulted in overall slow progress at the project sites.
Consequently, the Company's management served notice informing termination of the contracts and recovery of
the advances given. The management of the Company has also filed complaint u/s 138 of Negotiable Instrument
Act against the contractor and its group companies. The management of the Company believes that this matter
will not have any impact on the ongoing projects as new contractors have already been appointed.
The management of the Company has obtained a legal assessment from their legal counsel on the said matter.
On the basis of such legal opinion, and assessment of the financial strength of the contractor and its group
companies, the work already completed alongwith the construction assets and equipments of the contractor
in Company's possession. The management of the Company is confident of recovering the due amount.
However, considering the financial capability of the contractor and passage of time, the Company, during the
current year on conservative and prudent basis, has recorded the provision towards the unsecured exposure
amounting to ' 83.70 millions in these standalone financial statements.
* Other related parties includes Key Managerial Personnel and entities in which Key Managerial Personnel or close members are
interested and entities exercising significant influence over the Company.
"Directors Ravi Aggarwal, Pradeep Kumar Aggarwal, Devender Aggarwal and Lalit Kumar Aggarwal and their relatives have also
given personal guarantees against long term and short term borrowing facilities availed by the Company. (refer note 20D)
***Certain subsidairy companies have also given corporate gurantee and created charge against their assets for borrowings
obtained by the Company. (refer note 20D)
d) Others - The Company has provided its inventories as security against the borrowing facilities taken by subsidiaries
companies namely Sternal Buildcon Private Limited, Signatureglobal Homes Private Limited, Signatureglobal
Developers Private Limited and Sarvpriya Securities Private Limited (entity in which Key Managerial Personnel and
Relatives of Key Managerial Personnel are interested).
e) Terms and conditions:-
All transactions with related parties are made on the terms equivalent to those that prevail in arm's length transactions
and within the ordinary course of business. Outstanding balances at respective year ends are unsecured and
settlement is generally done in cash.
40 CAPITAL MANAGEMENT
Net debts comprise of non-current and current debts (including trade payables and other financial liabilities) as reduced
by cash and cash equivalents, other bank balances and current investments. Equity comprises all components of equity
including other comprehensive income.
The objective of Company's capital management structure is to ensure that there remains sufficient liquidity within the
Company to carry out committed work requirements. The Company manages its capital structure and makes adjustments
to it, in light of changes to economic conditions. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital, issue new shares for cash, repay debt, put in place new debt facilities or
undertake other such restructuring activities as appropriate.
The above sensitivity analysis is based on a change in an assumption of discount rate from 7.15% for the year ended
31 March 2024 to 6.65% for the year ended 31 March 2025, while holding all other assumptions constant. In practice,
this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of
the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit
obligation calculated with the projected unit credit method at the end of the reporting year) has been applied which was
applied while calculating the defined benefit obligation liability recognised in the balance sheet.
Further, there is no change in the method of valuation.
Compensated absences (unfunded)
Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance
sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of
benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected
to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed
by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience
and changes in actuarial assumptions are credited or charged to the statement of profit and loss in the year in which such
gains or losses are determined.
Based on the independent actuarial valuation, only a certain amount of provision has been presented as current while the
remaining amount has been presented as non-current. The same is in line with the Company’s leave policy as employees
do not have unconditional right to avail leaves at any time within next one year. During the current year, an amount of
' 54.00 million (31 March 2024: ' 30.27 million) has been recognised in the statement of profit and loss.
42 LEASES
a) Company as a lessee
The Company has leases for office space and buildings. With the exception of short-term leases and leases of low-value
underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. The Company
has presented its right-of-use assets in the balance sheet separately from other assets.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to
another party, the right-of-use asset can only be used by the Company. The Company is prohibited from selling or pledging
the underlying leased assets as security. Further, the Company is required to pay maintenance fees in accordance with
the lease contracts.
Notes:
A Since the change in ratio is less than 25%, no explanation is required to be furnished.
B Variance in ratio is attributable to increase in borrowings as the Company has availed additional loans during the year.
C Variance in the ratio is attributable to the increase in revenue recognition during the current year on account of higher
number of units for which revenue recognition conditions got fulfilled during the year.
D Variance in ratio is attributable to increase in earnings on account of higher revenue recognition on real estate projects.
46 The Ministry of Corporate Affairs (MCA) has prescribed requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies,
which uses accounting software for maintaining its books of account, shall use only such accounting software which has
a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of
account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The accounting software used for maintaining accounting records of the Company has a feature of recording audit trail
(edit log) facility and the same has been enabled and operated throughout the year for all relevant transactions recorded in
the software at the application level. The 'Independent Service Auditor's Assurance Report on the Description of Controls,
their Design and Operating Effectiveness' ('Type 2 report' issued in accordance with ISAE 3402, Assurance Reports on
Controls at a Service Organization’) was available for part of the year. This report does not provide information on audit
trail (edit logs) for any direct changes made at the database level.
Further, the accounting software used for maintaining accounting records of the customer and channel partner master has
a feature of recording audit trail (edit log) facility and the same has been enabled and operated throughout the year for
all relevant transactions recorded in the software at the application level. The 'Independent Service Auditor's Assurance
Reports on the Description of Controls, their Design and Operating Effectiveness' ('Type 2 report' issued in accordance
with ISAE 3402, Assurance Reports on Controls at a Service Organization’) was available. However, the audit trail logs
are retained for six months for any direct data changes made at the database level. Furthermore, the accounting software
used for maintenance of payroll related records has a feature of recording audit trail (edit log) facility and the same has
been enabled and operated throughout the year for all relevant transactions recorded in the software. However, the audit
trail logs from 1 August 2023 (date of implementation of software) to 31 March 2024 have not been preserved for the
details of who made the changes i.e., User Id and when the changes were made i.e., timestamp at the application level by
the Company as per the statutory requirements for record retention.
R
C The Company has not advanced or loaned or invested funds to any person or any entity, including foreign entities j!
(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.
D The Company has not received any fund from any person or any entity , 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 a or on
behalf of the Funding Party (Ultimate Beneficiaries); or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
E The Company does not have any transactions and outstanding balances during the current as well previous year with
Companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
F The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
G The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
H The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
I The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year 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
J The Company has not been declared as a ‘Wilful Defaulter’ by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the
Reserve Bank of India.
K The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
L The title deeds of all the immovable properties including investment properties held by the Company are held in the
name of the Company.
M The Company has not revalued its property, plant and equipment and right to use assets (ROUs) during the year.
N The figures of previous year have been regrouped/ reclassed to make them comparative with those of current year
wherever considered necessary. The impact of such reclassification/regrouping is not material to the standalone
financial statements.
48 The Company is engaged in the business of providing infrastructural facilities as per Section 186(11) read with Schedule
IV of the Act. Accordingly, disclosures under section 186 of the Act are not applicable to the Company.
49 CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES*
In accordance with the provisions of section 135 of the Act, Schedule VII and Companies (Corporate Social Responsibility
Policy) Rules, 2014, the Company was required to spend ' Nil (31 March 2024: Nil) for Corporate Social Responsibility
activities. The Company has voluntarily incurred corporate social responsibility expenditure of ' 11.59 millions during the
current financial year (31 March 2024: ' 2.00 millions) for promoting education of under previleged children, promoting
healthcare and empowering women. The details of corporate social responsibility activities are as follows:
(iii) The Company does not carry any provisions for corporate social responsibility expenses for the current year and in
any previous year.
(iv) The Company does not have any ongoing project as at 31 March 2025 and in any previous year.
50 During the year ended 31 March 2024, the Company had completed its Initial Public Offer ('IPO') of 18,961,038 Equity
shares having face value of ' 1 each, at an issue price of ' 385 per equity share (including share premium of ' 384 per
share), comprising offer for sale of 3,298,701 shares by selling shareholder aggregating to ' 1,270.00 million and a fresh
issue of 15,662,337 shares aggregating to ' 6,030.00 million. The equity shares of the Company were listed on BSE
Limited ('BSE') and National Stock Exchange of India Limited ('NSE') on 27 September 2023.
51 As per Ind AS 108 "Operating Segments", if a financial report contains both consolidated financial results and the separate
financial results of the Parent Company, segment information may be presented on the basis of the consolidated financial
statements. Thus, disclosure required on segment information has been furnished in consolidated financial statements.
This is summary of material accounting policy information and other explanatory information referred to in our
report of even date.
For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Signatureglobal (India) Limited
Firm's Registration No.: 001076N/N500013
Deepak Mittal Ravi Aggarwal Pradeep Kumar Aggarwal
Partner Managing Director Chairman and Whole Time Director
Membership No.: 503843 DIN-00203856 DIN-00050045
Sanjeev Kumar Sharma M R Bothra
Chief Financial Officer Company Secretary
Membership No. 094855 Membership No. F6651
Place: Gurugram Rajat Kathuria
Date: 15 May 2025 Chief Executive Officer
| 