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Nifty 25,966.40 +0.58%

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Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

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Accounting Policies of Sri Ramakrishna Mills (Coimbatore) Ltd. Company

Mar 31, 2025

1 Corporate Information

Sri Ramakrishna Mills (Coimbatore) Limited CIN:L17111TZ1946PLC000175 is a Public Limited Company under the Companies Act of 2013 having registered office at
1493, Sathyamangalam Road, Ganapathy Post, Coimbatore - 641006. The Companies Equity shares are listed in Bombay Stock Exchange. The Company has complied
with the provisions of the applicable Accounting Standards as notified under Companies (Accounting Standards) Rules, as amended and in force, under the provisions of the
Companies Act, 2013

2 Basis of preparation of financial statements
Statement of Compliance

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain
financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (âthe Actâ) (to the extent notified) and guidelines issued by the Securities
and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015
and amendments thereto.

Previous Year figures are regrouped and reclassified wherever considered necessary to confirm to current year classification.

Basis of preparation and presentation

For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under
section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

The financial statements for the year ended March 31, 2025 are the eighth financial statements the Company has prepared in accordance with Ind AS with the date of
transition as April 1, 2016.

Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities on
the date of the financial statements. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to
accounting estimates is recognised prospectively in current and future periods.

Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is the Companyâs functional currency. All financial information presented in INR has been rounded
to the nearest Lakhs (up to two decimals).

The financial statements are approved for issue by the Companyâs Board of Directors on May 30, 2025.

2A Critical accounting estimates and management judgments

In application of the material accounting policies, which are described in note 3, the management of the Company is required to make judgements, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and
other factors that are considered to be relevant.

Information about significant areas of estimation, uncertainty and critical judgements used in applying accounting policies that have the most significant effect on the amounts
recognised in the financial statements is included in the following notes:

i) Revenue Recognition

The Companyâs contracts with customers could include promises to transfer multiple products and services to a customer. The Company assesses the products / services
promised in a contracts and identifies distinct performance obligations in the contract. Identification of distinct performance obligation involves judgement to determine
the deliverables and the ability of the customer to benefit independently from such deliverables.Judgement is also required to determine the transaction price for each of
the contract and to ascribe the transaction price to each distinct performance obligation. The transaction price could be either a fixed amount of customer consideration
or variable consideration. The transaction price is also adjusted for the effects of the time value of money if the contract includes a significant financing component.
Any consideration payable to the customer is adjusted to the transaction price, unless it is a payment for a distinct product or service from the customer. The Company
exercises judgement in determining whether the performance obligation is satisfied at a point in time or over a period of time. The Company considers indicators such
as how customer consumes benefits as services are rendered or who controls the asset as it is being created or existence of enforceable right to payment for performance
to date and alternate use of such product or service, transfer of significant risks and rewards to the customer, acceptance of delivery by the customer, etc. Revenue for
Real Estate contracts are recognised using percentage-of-completion method. The Company uses judgement to estimate amounts of the future cost-to-completion of the
contracts on the basis of estimates furnished/agreed, which is used to determine the degree of the completion of the performance obligation.

ii) Property, Plant and Equipment (PPE)

The residual values and estimated useful life of PPE is assessed by the technical team at each reporting date by taking into account the nature of asset, the estimated
usage of the asset, the operating condition of the asset, past history of replacement and maintenance support. Under the previous GAAP (Indian GAAP), the property,
plant and equipment were carried in the balance sheet at cost less accumulated depreciation. The company has elected to continue to measure the property, plant and
equipment at their previous GAAP values. Hence, no fair valuation or retrospective application of Ind AS 16 is required.

iii) Current tax

Calculations of income taxes for the current period are done based on applicable tax laws and managementâs judgement and decision, by evaluating positions taken in tax
returns and interpretations of relevant provisions of law.

iv) Deferred Tax Assets

Significant management judgement is exercised by reviewing the deferred tax assets at each reporting date to determine the amount of deferred tax assets that can be
retained/ recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

v) Fair value

Management uses valuation techniques in measuring the fair value of financial instruments where active market quotes are not available. In applying the valuation
techniques, management makes maximum use of market inputs and uses estimates and assumptions that are, as far as possible, consistent with observable data that
market participants would use in pricing the instrument. Where applicable data is not observable, management uses its best estimate about the assumptions that market
participants would make. These estimates may vary from the actual prices that would be achieved in an armâs length transaction at the reporting date.

vi) Impairment of Trade Receivables

The impairment assessment for trade receivables are done based on assumptions about risk of default and expected loss rates. The assumptions, selection of inputs
for calculation of impairment are based on management judgement considering the past history, market conditions and forward looking estimates at the end of each
reporting date.

vii) Impairment of Non-financial assets (PPE)

The impairment assessment of non-financial assets is determined based on estimation of value of recoverable amount of such assets. The assumptions used in
computing the value of recoverable amount are based on management judgement considering the timing of future cash flows, discount rates and the risks specific to the
asset.

viii) Defined Benefit Plans and Other long term employee benefits

The cost of the defined benefit plan and other long term employee benefits, and the present value of such obligation are determined by the independent actuarial valuer. An
actuarial valuation involves making various assumptions that may differ from actual developments in future. Management believes that the assumptions used by the actuary
in determination of the discount rate, future salary increases, mortality rates and attrition rates are reasonable. Due to the complexities involved in the valuation and its
long term nature, this obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

ix) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities could not be measured based on quoted prices in active markets, management uses valuation
techniques including the Discounted Cash Flow (DCF) model, to determine its fair value The inputs to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgement is exercised in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility.

x) Lease

Ind-AS 116 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind-AS 116, this assessment should be carried out at the
inception of the contract or arrangement. The determination of whether an agreement is, or contains, a âRight of useâ is based on the substance of the agreement at the
date of inception. Accounting of Right of Use is based on Ind-AS 116.

xi) Provisions and contingencies

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances
known at the reporting date. The actual outflow of resources at a future date may therefore vary from the figure estimated at end of each reporting period.

2B Recent accounting pronouncements
New amendments issued

Ministry of Corporate Affairs (âMCAâ) notifies New Standards or amendments to the existing Standards under Companies (Indian Accounting Standards) Amendment
Rules, as issued from time to time. For the year ended 31.03.2025, MCA has notified IndAS -117 Insurance Contracts and amendments to IndAS-116- Lease, relating to
Sale and Leaseback transactions applicable w.e.from April 1, 2024. There has been no impact on the financial statements on account of these amendments.

New Standards and amendments issued but not effective

- On 7 May 2025, MCA notifies the amendments to Ind AS 21 âEffects of Changes in Foreign Exchange Ratesâ. These amendments aim to provide clearer guidance on
assessing currency exchangeability and estimating exchange rates when currencies are not readily exchangeable. The amendments are effective for annual periods beginning
on or after 1 April 2025. The Company is currently assessing the probable impact of these amendments on its financial statements.

3 Material Accounting Policies

a) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

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

ii) Held primarily for the purpose of trading

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

iv) 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 current when:

i) It is expected to be settled in normal operating cycle

ii) It is held primarily for the purpose of trading

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

iv) 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.

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

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified 12 months
as its operating cycle excepting for Real Estate Contracts, wherein the operating cycle is the time agreed in the respective contracts.

b) Fair value measurement

The Company has applied the fair value measurement wherever necessitated at each reporting period.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

i) In the principal market for the asset or liability;

ii) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and the
best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use
of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 : Quoted (unadjusted) market prices in active market for identical assets or liabilities;

Level 2 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and
Level 3 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

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

The Company has designated the respective team leads to determine the policies and procedures for both recurring and non - recurring fair value measurement. External
valuers are involved, wherever necessary with the approval of Companyâs board of directors. Selection criteria include market knowledge, reputation, independence and
whether professional standards are maintained.

For the purpose of fair value disclosure, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risk of the asset or
liability and the level of the fair value hierarchy as explained above. The component wise fair value measurement is disclosed in the relevant notes.

c) Revenue Recognition
Revenue from Sale of goods

Effective from 01-04-2018, Revenue is recognized as per Ind-AS 115, using the Five Step model that is applied to recognize revenue and which focusses on transfer of
control of goods and services by an entity to its customers to recognize revenue. The Five Step model requires the following a) identify the contract with the customers
b) identify the performance obligation in the contract c) Determine the transaction Price d) Allocate the Transaction price to the Performance Obligations e) Recognize
Revenue when (or) as the entity satisfies its performance obligations.

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment.

Revenue from Real Estate

Revenue from real estate development include land taken up under development by extending contract of licence to a developer by sharing the developed real estate
with him. Performance obligation in respect of such real estate assets is to deliver land to developer/villas and apartments to customers.The customer simultaneously
receives the benefits of such contract and further the company has no alternate use over such asset and has an enforceable right of payment over such asset. The
Company has made careful judgement and satisifed that the Performance obligations in the Contracts are satisfied over time. Therefore the revenue from the above is
recognised over time to the extent the satisfaction of Performance obligation and its progress and consequent obtention of economic benefits and potential cash flows to
the company. The revenue from that part of the Land licenced towards Developerâs Share is contracted to be discharged by Developer by construction of superstructure
in respect of land ownerâs share agreed. Therefore the total revenue for the transfer of land towards Developers share is the originally agreed cost of construction of the
super structure belonging to the company as per customary business practice. The revenue from transfer of control during an year is recognised to the extent of land in
respect of which substantial progress made in the performance obligation by the Developer eventhough the legal title may remain with the company. The contractual
obligation of the Company and Developer are transacted at consideration originally agreed and discharged as above. Revenue in respect of the Villas belonging to the
Company and contracted for sale is recognised on the basis of percentage of completion of performance obligation with the Customer. The Company recognizes the
completed performance obligations and recognizes revenue taking into account the transaction price and therefore the remaining transaction price will represent the
remaining performance obligation. The Company while recognizing income evaluates completion of the contract performance obligation and its timing on technical
judgement.

Revenue from Sale of other Real Estate Assets are recognized on completion of bundled legal obligation attached therewith.

Commission Income

Commission Income is recognised when the services are rendered as per performance obligation under the terms of the agreement if any and when no significant
uncertainty as to its determination or realisation exists.

Sale of scrap

Scrap sale is recognised at the fair value of consideration received or receivable upon transfer of control.

Interest Income

Interest income is recorded using the effective interest rate (EIR) method. EIR is the rate that exactly discounts the estimated future cash payments or receipts over the
expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial
liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument
(for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.

Rental Income

Rental income from operating lease is recognised on a straight line basis over the term of the relevant lease.

Contract Asset/Liability

If a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional (ie a receivable), before the company transfers a
good or service to the customer, the company presents the contract as a contract liability (Customer Advances/Advance against Sales) when the payment is made
or the payment is due (whichever is earlier). A contract liability is an entityâs obligation to transfer goods or services to a customer for which the entity has received
consideration (or an amount of consideration is due) from the customer. If the Company performs by transferring goods or services to a customer before the customer
pays consideration or before payment is due, the entity shall present the contract as a contract asset, excluding any amounts presented as a receivable. A
contract asset is an entityâs right to consideration in exchange for goods or services that the entity has transferred to a customer. An entity shall assess a
contract asset for impairment in accordance with Ind -AS 109.

d) Property, plant and equipment

Deemed cost option for first time adopter of Ind AS

Under the previous GAAP (Indian GAAP), the property, plant and equipment were carried in the balance sheet at cost less accumulated depreciation. The company has
elected to continue to measure the property, plant and equipment at their previous GAAP values.

Presentation

Property, plant and equipment and capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost
includes the cost of replacing part of the plant and equipment and borrowing costs of a qualifying asset, if the recognition criteria are met. When significant parts of plant
and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All other repair and maintenance
costs are recognised in profit or loss as incurred.

Advances paid towards the acquisition of tangible assets outstanding at each balance sheet date, are disclosed as capital advances under long term loans and advances
and the cost of the tangible assets not ready for their intended use before such date, are disclosed as capital work in progress.

Component Cost

All material/ significant components have been identified for our plant and have been accounted separately. The useful life of such component are analysed independently
and wherever components are having different useful life other than plant they are part of, useful life of components are considered for calculation of depreciation.

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits
embodied within the part will flow to the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognised in the statement of profit
and loss as incurred.

Machinery spares/ insurance spares that can be issued only in connection with an item of fixed assets and their issue is expected to be irregular are capitalised.
Replacement of such spares is charged to revenue. Other spares are charged as revenue expenditure as and when consumed.

Derecognition

Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount
of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

e) Depreciation on property, plant and equipment

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount for assets is the cost of an asset, or other
amount substituted for cost, less 5% being its residual value. Depreciation is provided on straight line method (for Plant & Machinery and Electrical Machinery) and on
written down value method (for all other Assets), over the useful lives as is specified in Schedule II to the Companies Act, 2013.

f) Inventories

Inventories are carried at the lower of cost and net realisable value. Cost includes cost of purchase and other costs incurred in bringing the inventories to their present
location and condition. Costs are determined on weighted average/FIFO method as follows:

(i) Raw materials, stores, spares and consumables, Waste: At purchase cost including other cost incurred in bringing materials/consumables to their present
location and condition on Weighted Average Method. Spares are considered to have useful life of less than 12 months and hence classified under inventories.Stock
of Stores and Packing materials, Spares (with less than 12 months useful lives) is valued on Weighted Average method.

(ii) Work-in-process: At material cost, conversion costs and appropriate share of production overheads

(iii) Finished goods: Under FIFO Method At material cost, conversion costs and an appropriate share of production overheads.

(iv) Real Estate Inventories: Real Estate inventories consisting of Land are carried at Cost/Deemed Cost. In respect of Construction of Super Structures, the WIP is
valued at Cost at agreed Cost of Construction.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the
sale.

g) Financial Instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value. However, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset are also added to the cost of the financial asset. Purchases or sales of financial assets that require delivery of assets
within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company
commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified on the basis of their contractual cash flow characteristics and the entityâs business model of
managing them.

Financial assets are classified into the following categories:

â¢ Financial instruments (other than equity instruments) at amortised cost

â¢ Financial Instruments (other than equity instruments) at Fair value through Other comprehensive income (FVTOCI)

â¢ Other Financial Instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

â¢ Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Financial instruments (other than equity instruments) at amortised cost

The Company classifies a financial instruments (other than equity instruments) at amortised cost, if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows; and

b) Contractual terms of the asset give rise on specified dates to cash flows that are Solely Payments of Principal and Interest (SPPI) on the principal amount
outstanding.

Such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The
losses arising from impairment are recognised in the profit or loss.

Financial Instruments (other than equity instruments) at FVTOCI

The Company classifies a financial instrument (other than equity instrument) at FVTOCI, if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The assetâs contractual cash flows represent SPPI.

The financial instruments included within the FVTOCI category are measured as at each reporting date at fair value. Fair value movements are recognized in the other
comprehensive income (OCI). However, the Company recognizes finance income, impairment losses and reversals and foreign exchange gain or loss in the profit and
loss statement. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to profit and loss. Interest earned whilst
holding FVTOCI debt instrument is reported as interest income using the EIR method.

Financial instruments (other than equity instruments) at FVTPL

The Company classifies all other financial instruments, which do not meet the criteria for categorization as at amortized cost or as FVTOCI, as at FVTPL.

Financial instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. Where the Company
makes an irrevocable election of classifying the equity instruments at FVTOCI, it recognises all subsequent changes in the fair value in OCI, without any recycling of the
amounts from OCI to profit and loss, even on sale of such investments.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

Financial assets are measured at FVTPL except for those financial assets whose contractual terms give rise to cash flows on specified dates that represents SPPI, are
measured as detailed below depending on the business model:

Derecognition

A financial asset is primarily derecognised when:

â¢ The rights to receive cash flows from the asset have expired, or

â¢ The Company has transferred its rights 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 a âpass-throughâ arrangement and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (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 Companyâs 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.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial
assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance.

b) Financial assets that are debt instruments and are measured at FVTOCI

c) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and
Ind AS 115.

The Company follows âsimplified approachâ for recognition of impairment loss allowance on:

â¢ Trade receivables or contract revenue receivables; and

â¢ All lease receivables resulting from transactions within the scope of Ind AS 116.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime
Expected Credit Loss (ECL) at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit
risk since initial recognition. If credit risk has not increased significantly, 12 months ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since
initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 months ECL is a portion of
the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to
receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows, the Company considers all contractual terms of the financial instrument
(including prepayment, extension, call and similar options) over the expected life of the financial instrument and Cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.

ECL allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss. This amount is reflected under the head
âother expensesâ in the profit and loss. The balance sheet presentation of ECL for various financial instruments is described below:

â¢ Financial assets measured as at amortised cost, contractual revenue receivables and lease receivables: ECL is presented as an allowance, which
reduces the net carrying amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

â¢ Financial assets measured at FVTOCI: Since financial assets are already reflected at fair value, impairment allowance is not further reduced from its value
Rather, ECL amount is presented as âaccumulated impairment amountâ in the OCI.

For assessing increase in credit risk and impairment loss, the company combines financial instruments on the basis of shared credit risk characteristics with the objective
of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely basis.

For impairment purposes, significant financial assets are tested on individual basis at each reporting date. Other financial assets are assessed collectively in groups that
share similar credit risk characteristics. Accordingly, the impairment testing is done on the following basis:

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL and as at amortised cost.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation
is included as finance costs in the statement of profit and loss.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Companyâs financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading, if they are incurred for the purpose of repurchasing in the near term.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently
transferred to profit and loss. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised
in the statement of profit or loss. The company has not designated any financial liability as at fair value through profit and loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in
profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Derecognition of financial liabilities

A financial liability is derecognised 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
derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or
loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which
are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for
managing those assets. Changes to the business model are expected to be infrequent. The Companyâs senior management determines change in the business model as
a result of external or internal changes which are significant to the Companyâs operations. Such changes are evident to external parties. A change in the business model
occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the
reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The
Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

The following table shows various reclassification and how they are accounted for:

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.

h) Foreign currency transactions and translations
Transactions and balances

Transactions in foreign currencies are initially recorded by the Company at the functional currency spot rates at the date at which the transaction first qualifies for
recognition. However, for practical reasons, the Company uses an average rate, if the average approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange
differences arising on settlement or translation of monetary items are recognised in profit or loss.

arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e.,
translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

The Company enters into forward exchange contract wherever necessary to hedge its risk associated with Foreign currency fluctuations. The premium or discount
arising at the inception of a forward exchange contract is amortized as expense or income over the life of the contract. In case of monetary items which are covered by
forward exchange contract, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference. Any profit or loss arising
on cancellation of a forward exchange contract is recognized as income or expense for that year.

i) Borrowing Costs

Borrowing cost include interest computed using Effective Interest Rate method, amortisation of ancillary costs incurred and exchange differences arising from
foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs that are directly attributable to the acquisition, construction, production of a qualifying asset are capitalised as part of the cost of that asset which takes
substantial period of time to get ready for its intended use. The Company determines the amount of borrowing cost eligible for capitalisation by applying capitalisation rate to
the expenditure incurred on such cost. The capitalisation rate is determined based on the weighted average rate of borrowing cost applicable to the borrowings of the Company
which are outstanding during the period, other than borrowings made specifically towards purchase of the qualifying asset. The amount of borrowing cost that the Company
capitalises during the period does not exceed the amount of borrowing cost incurred during that period. All other borrowings costs are expensed in the period in which they occur.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible
for capitalisation. All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

j) Segment Reporting

Operating Segments are reported in the manner consistent with the internal reporting to the chief operating decision maker (CODM) as per IndAS 108. The Board of
Directors of the company assesses the financial performance and position of the company and makes strategic decisions and have been identified as being the chief
operating decision maker.

k) Taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable
income. The Company during the year 2019-20 has adopted the provisions of Sec.115BAA of the Income tax Act. Accordingly no Minimum Alternate Tax (MAT)
is applicable from FY:2019-20 onwards. Further no Current tax on the profits is applicable considering the unabsorbed losses available to the company and income
declared.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax
items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in respect of tax
matters with respect to situations in which applicable tax regulations are subject to interpretation and establishes 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 for financial
reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilised. Where there is deferred tax assets arising from carry forward of unused tax losses and unused tax
credits, they are recognised to the extent of deferred tax liability.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items
are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation authority.

l) Retirement and other employee benefits
Short-term employee benefits

A liability is recognised for short-term employee benefit in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in
exchange for that service.

Defined contribution plans

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident
fund. The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related service. If the contribution
payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a
liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date,
then excess is recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.

Defined benefit plans

The Companyâs Defined Benefit plan comprises Gratuity. The cost of providing benefits under such defined benefit plan is determined using the projected unit credit
method.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability
and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a
corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent
periods.

Other long term employee benefits

Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by
the Company in respect of services provided by the employees up to the reporting date.

m) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is,
or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets,
even if that right is not explicitly specified in an arrangement.

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 and the applicable discount rate.

For arrangements entered into prior to 1 April 2016, the Company has determined whether the arrangement contain lease on the basis of facts and circumstances existing
on the date of transition.

Company as a lessee

Effective April 1, 2019, the Company adopted Ind AS 116 âLeasesâ in respect of lease contracts outstanding on April 1,2019 using modified retrospective method. The
Company has made a detailed evaluation of all the Leases where it is a lessee, on an individual basis. Based on such evaluation, the Company has concluded that all the
Lease Agreements entered into by the Company and where it is a lessee, are in the nature of short-term leases and hence in accordance with para 5 & 6 of Ind-AS 116,
the Company has exercised the Right of use Asset recognition exemption option available in respect of short term leases and recognized the lease payments associated
with those leases as an expense in the statement of profit and loss, on either a straight-line basis over the lease term or another systematic basis (if that basis is more
representative of the pattern of the lesseeâs benefit). The Company recognizes a lease as a short term lease in accordance with Ind-AS 116, only if the Lease Arrangement
(including any addendum thereto) has all of the following characteristics: a) It is for a period of 12 months or less b) it does not grant a renewal or extension option to
the lessee c) It does not grant a purchase option to the lessee. A lease with the above characteristics is considered as a short-term lease even if there is a past practice
of the lease being renewed upon expiry of the lease term for a further period of 12 months (with the mutual consent of both the lessor and the lessee). Consequently all
the disclosure requirements in Ind-AS 116 in respect of such Leases, where the Company is a lessee, is not applicable.

Company as a lessor

Lease income from operating leases where the company is a lessor is recognised in income on a straightline basis over the lease term unless the receipts are structured to
increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet
based on their nature and materiality.

n) 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 assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs (CGU)
fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets. When 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.

Mar 31, 2024

3 Material Accounting Policies

a) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

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

ii) Held primarily for the purpose of trading

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

iv) 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 current when:

i) It is expected to be settled in normal operating cycle

ii) It is held primarily for the purpose of trading

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

iv) 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.

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

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified 12 months as its operating cycle excepting for Real Estate Contracts, wherein the operating cycle is the time agreed in the respective contracts.

b) Fair value measurement

The Company has applied the fair value measurement wherever necessitated at each reporting period.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

i) In the principal market for the asset or liability;

ii) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and the best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 : Quoted (unadjusted) market prices in active market for identical assets or liabilities;

Level 2 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and Level 3 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

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

The Company has designated the respective team leads to determine the policies and procedures for both recurring and non - recurring fair value measurement. External valuers are involved, wherever necessary with the approval of Companyâs board of directors. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

For the purpose of fair value disclosure, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risk of the asset or liability and the level of the fair value hierarchy as explained above. The component wise fair value measurement is disclosed in the relevant notes.

c) Revenue Recognition Revenue from Sale of goods

Effective from 01-04-2018, Revenue is recognized as per Ind-AS 115, using the Five Step model that is applied to recognize revenue and which focusses on transfer of control of goods and services by an entity to its customers to recognize revenue. The Five Step model requires the following a) identify the contract with the customers b) identify the performance obligation in the contract c) Determine the transaction Price d) Allocate the Transaction price to the Performance Obligations e) Recognize Revenue when (or) as the entity satisfies its performance obligations.

Revenue is measured at the transaction price received or receivable, taking into account contractually defined terms of payment.

Revenue from Real Estate

Revenue from real estate development include land taken up under development by extending contract of licence to a developer by sharing the developed real estate with him. Performance obligation in respect of such real estate assets is to deliver land to developer/villas and apartments to customers.The customer simultaneously receives the benefits of such contract and further the company has no alternate use over such asset and has an enforceable right of payment over such asset. The Company has made careful judgement and satisifed that the Performance obligations in the Contract/s are satisfied over time. Therefore the revenue from the above is recognised over time to the extent the satisfaction of Performance obligation and its progress and consequent obtention of economic benefits and potential cash flows to the company. The revenue from that part of the Land licenced towards Developerâs Share is contracted to be discharged by Developer by construction of superstructure in respect of land ownerâs share agreed. Therefore the total revenue for the transfer of land towards Developers share is the originally agreed cost of construction of the super structure belonging to the company as per customary business practice. The revenue from transfer of control during an year is recognised to the extent of land in respect of which substantial progress made in the performance obligation by the Developer eventhough the legal title may remain with the company. The contractual obligation of the Company and Developer are transacted at consideration originally agreed and discharged as above. Revenue in respect of the Villas belonging to the Company and contracted for sale is recognised on the basis of percentage of completion of performance obligation with the Customer. The Company recognizes the completed performance obligations and recognizes revenue taking into account the transaction price and therefore the remaining transaction price will represent the remaining performance obligation. The Company while recognizing income evaluates completion of the contract performance obligation and its timing on technical judgement.

Revenue from Sale of other Real Estate Assets are recognized on completion of bundled legal obligation attached therewith.

Commission Income

Commission Income is recognised when the services are rendered as per performance obligation under the terms of the agreement if any and when no significant uncertainty as to its determination or realisation exists.

Sale of scrap

Scrap sale is recognised at the transaction price received or receivable upon transfer of control.

Interest Income

Interest income is recorded using the effective interest rate (EIR) method. EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.

Rental Income

Rental income from operating lease is recognised on a straight line basis over the term of the relevant lease.

Contract Asset/Liability

If a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional (ie a receivable), before the company transfers a good or service to the customer, the company presents the contract as a contract liability (Customer Advances/Advance against Sales) when the payment is made or the payment is due (whichever is earlier). A contract liability is an entityâs obligation to transfer goods or services to a customer for which the entity has received consideration (or an amount of consideration is due) from the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, the entity shall present the contract as a contract asset, excluding any amounts presented as a receivable. A contract asset is an entityâs right to consideration in exchange for goods or services that the entity has transferred to a customer. An entity shall assess a contract asset for impairment in accordance with Ind -AS 109.

d) Property, plant and equipment

Deemed cost option for first time adopter of Ind AS

Under the previous GAAP (Indian GAAP), the property, plant and equipment were carried in the balance sheet at cost less accumulated depreciation. The company has elected to continue to measure the property, plant and equipment at their previous GAAP values.

Presentation

Property, plant and equipment and capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs of a qualifying asset, if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in profit or loss as incurred.

Advances paid towards the acquisition of tangible assets outstanding at each balance sheet date, are disclosed as capital advances under long term loans and advances and the cost of the tangible assets not ready for their intended use before such date, are disclosed as capital work in progress.

Component Cost

All material/ significant components have been identified for our plant and have been accounted separately. The useful life of such component are analysed independently and wherever components are having different useful life other than plant they are part of, useful life of components are considered for calculation of depreciation.

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within he part will flow to the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognised in the statement of profit and loss as incurred

Machinery spares/ insurance spares that can be issued only in connection with an item of fixed assets and their issue is expected to be irregular are capitalised. Replacement of such spares is charged to revenue. Other spares are charged as revenue expenditure as and when consumed.

Derecognition

Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

Depreciation for PPE on additions is calculated on pro-rata basis from the date of such additions. For deletion/ disposals, the depreciation is calculated on pro-rata basis up to the date on which such assets have been discarded/ sold. Additions to fixed assets, costing Rs 5000 each or less are fully depreciated retaining its residual value. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

f) Inventories

Inventories are carried at the lower of cost and net realisable value. Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Costs are determined on weighted average/FIFO method as follows:

(i) Raw materials, stores, spares and consumables, Waste: At purchase cost including other cost incurred in bringing materials/consumables to their present location and condition on Weighted Average Method. Spares are considered to have useful life of less than 12 months and hence classified under inventories.Stock of Stores and Packing materials, Spares (with less than 12 months useful lives) is valued on Weighted Average method.

(ii) Work-in-process: At material cost, conversion costs and other cost directly attibutable to bring the goods to present location and condition.

(iii) Finished goods: Under FIFO Method, At material cost, conversion costs and other cost directly attibutable to bring the goods to present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

g) Financial Instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value. However, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset are also added to the cost of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified on the basis of their contractual cash flow characteristics and the entityâs business model of managing them.