Notes to Accounts of Sunteck Realty Ltd.

Mar 31, 2025

m) Provisions, contingencies and commitments

A provision is recognized when the Company has a present obligation as a result of past event, it is probable
that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can
be made. Provisions are not recognized for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood
of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management''s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the present
value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific
to the liability. The increase in the provision due to the passage of time is recognized as interest expense.

A disclosure for contingent liabilities is made where there is:

(i) a possible obligation that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity; or

(ii) a present obligation that arises from past events but is not recognized because it is not probable that an
outflow of resources embodying economic benefits will be required to settle the obligation; or the amount
of the obligation cannot be measured with sufficient reliability.

Contingent assets are not recognized in the financial statements. However, it is disclosed only when an inflow
of economic benefits is probable. Commitments are future liabilities for contractual expenditure, classified and
disclosed as estimated amount of contracts remaining to be executed on capital account and not provided for.

n) Employee benefits:

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognized in respect of employees'' services up to the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are settled.

(ii) Compensated absences

The Company presents the leave as a current liability in the balance sheet, to the extent it does not have an
unconditional right to defer its settlement for twelve months after the reporting date. Where the Company
has the unconditional legal and contractual right to defer the settlement for a period beyond twelve months,
the same is presented as non-current liability.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plan such as gratuity; and

(b) defined contribution plan such as provident fund.

Gratuity obligations

The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plan is the present
value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The
defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the
estimated future cash outflows by reference to market yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement
of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognized in the period in which they occur, directly in other comprehensive income. They are included in
retained earnings in the statement of changes in equity and in the balance sheet.

Defined contribution plan

The Company pays provident fund contributions to publicly administered provident funds as per local
regulations. The Company has no further payment obligations once the contributions have been paid. The
contributions are accounted for as defined contribution plans and the contributions are recognized as employee
benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash
refund or a reduction in the future payments is available.

o) Business combination

Business combinations, other than common control business combinations, are accounted for using the purchase
(acquisition) method. The cost of an acquisition is measured as the fair value of the assets transferred, liabilities
incurred or assumed and equity instruments issued at the date of exchange by the Company. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at
fair value at the date of acquisition. Transaction costs incurred in connection with a business acquisition are
expensed as incurred.

The cost of an acquisition also includes the fair value of any contingent consideration measured as at the date of
acquisition. Any subsequent changes to the fair value of contingent consideration classified as liabilities, other
than measurement period adjustments, are recognised in the statement of profit and loss.

Common Control transactions, including combinations involving entities or businesses and cases wherein the
activities and operation of Transferor Companies does not constitute a Business as defined in Ind AS 103, are
accounted for using the pooling of interests method. The assets and liabilities of the combining entities are
reflected at their carrying amounts. The identity of the reserves shall be preserved and shall appear in the financial
statements of the Transferee Company in the same form in which they appeared in the financial statements of
the transferor. The difference, if surplus, between the carrying value of assets, liabilities and reserves pertaining
to the Transferor Company, as appearing in the consolidated financial statements, and the carrying value of
investment in the equity shares of the Transferor Company in the books of accounts of the Transferee Company
credited to capital reserve in the books of Transferee Company and presented separately from other capital
reserves. If the difference is a deficit, then the same is adjusted against the existing capital reserve and revenue
reserve of the Transferee Company, in that order, and unadjusted remaining amount, if any, shall be recorded
separately in amalgamation adjustment deficit account under ''Other Equity''.

p) Investment in subsidiaries and joint ventures

Investments in subsidiaries and joint ventures are recognised at cost as per Ind AS 27.

These standalone financial statements have been prepared in accordance with amended Schedule III to the
Companies Act 2013.

q) Cash flow statement

The Statement of Cash flows has been prepared under indirect method, whereby profit or loss before tax is
adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The
Cash flow from operating, investing and financing activities are segregated.

r) Recent pronouncements

Ministry of Corporate Affairs (''MCA'') notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March
2025, MCA has notified amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, which
is applicable to the Company w.e.f. 1^st April, 2024. The Company has reviewed the new pronouncements and
based on its evaluation has determined that it doesn''t have any significant impact in its financial statements.

Further, MCA notified Ind AS 117, a comprehensive standard that prescribe, recognition, measurement and
disclosure requirements, to avoid diversities in practice for accounting insurance contracts and it applies to
all companies i.e., to all "insurance contracts” regardless of the issuer. However, Ind AS 117 is not applicable
to the entities which are insurance companies registered with IRDAI. The Company has reviewed the new
pronouncements and based on its evaluation has determined that these amendments do not have a significant
impact on the Company''s financial statements..

s) New and amended standards

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. MCA, via notification dated 7 May
2025, announced amendments to the Companies (Indian Accounting Standards) Rules, 2015. The effective
date for adoption of this amendment is annual periods beginning on or after 1 April 2025. These changes are
made under the Companies Act, 2013, in consultation with the National Financial Reporting Authority. These
amendments are not expected to have a material impact on the Company or future reporting periods and on
foreseeable future transactions

Amendment to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates- The key amendments
include definition of whether a currency is exchangeable, and the process by which an entity should assess
this exchangeability, provide guidance on estimation of spot exchange rate in cases where currency is not
exchangeable and additional disclosure requirements.

t) These standalone financial statements have been prepared in accordance with amended Schedule III to the
Companies Act, 2013.

Other accounting policy information

u) Foreign currency transactions

(i) Functional and presentation currency

The financial statements are presented in Indian rupee (''), which is Company''s functional and presentation
currency. Functional Currency is the currency of a primary economic environment in which the Company
operates.

(ii) Initial recognition

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction.
Exchange differences arising on foreign exchange transactions settled during the year are recognized in
the Statement of Profit and Loss for the year.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement
of Profit and Loss, within finance costs.

(iii) Measurement of foreign currency items at the balance sheet date

Foreign currency monetary items of the Company are translated at the closing exchange rates. Non¬
monetary items that are measured at historical cost in a foreign currency, are translated at the exchange
rate prevailing on the date of the transaction. Non-monetary items that are measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value was determined.
The gain 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 the fair value of the item. Exchange differences arising
out of these transactions are recognised in the Statement of Profit and Loss.

(iv) Foreign operations

The result and financial position of foreign operations (none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the presentation currency are translated into the
presentation currency as follows:

• assets and liabilities are translated at the closing rate at the date of that balance sheet

• income and expenses are translated at average exchange rates (unless this is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case
income and expenses are translated at the dates of the transactions), and

• all resulting exchange differences are recognised in other comprehensive income.

v) Rent

Rental income arising from operating leases on investment properties is accounted for on a straight line basis
over the lease term agreed with the respective tenant and included in operating revenue in the standalone
financial due to operating nature.

w) Maintenance income

Income arising from billing of maintenance charges to tenants/customers is recognised in the period in which
the services are being rendered. A receivable is recognised by the Company when the services are rendered as
this is the case of point in time recognition where consideration is unconditional because only the passage of
time is required. Further, the Company considers the terms of the contract and its customary business practices
to determine the transaction price.

x) Interest

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to
the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis,
by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net
carrying amount on initial recognition.

y) Forfeiture income

Forfeiture income is recognized on cancellation of unit by unitholder and when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably.

z) Dividend income

Dividend income from investments is recognized when the Company''s right to receive payment has been
established (provided that it is probable that the economic benefits will flow to the Company and the amount of
income can be measured reliably).

aa) Profit /Loss from Partnership Firms / Limited Liability Partnerships (LLP)

Share of profit / loss from firms/ LLPs in which the entity is a partner is accounted for in the financial period
ending on (or before) the date of the balance sheet on the basis of financial statements and as per the terms of
the respective partnership deed.

Other income is recognized as and when due or received, whichever is earlier.
bb) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and demand deposits with
an original maturity of three months or less and highly liquid investments that are readily convertible into known
amounts of cash and which are subject to an insignificant risk of changes in value.

For the purpose of statement of cash flows, cash and cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s
cash management.

cc) Impairment of non- financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the
asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s
(CGU) fair value less costs of disposal and its value in use.

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 group of assets.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no
such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated
by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

dd) Interest income from financial assets

Interest income from debt instruments is recognized using the effective interest rate method. The effective
interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to the gross carrying amount of a financial asset. 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.

ee) Offsetting financial instruments

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

ff) Intangible assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an
intangible asset comprises of its purchase price, including any import duties and other taxes (other than those
subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the
asset ready for its intended use. Subsequent expenditure is capitalized only if it is probable that the future
economic benefits associated with the expenditure will flow to the Company.

Intangible assets under development (IUD) comprises of direct cost, related incidental expenses and attributable
borrowing cost, if any, on intangible assets which are not ready for their intended use. IUD usually pertain to
a product development project which has reached a defined milestone according to an established project
management model and its technological and economic feasibility is viable. Expenditure on research activities
is recognised in statement of profit and loss as incurred. Intangible assets under development are subject to
impairment testing at each reporting date and assessed for impairment and impairment loss, if any.

gg) Share-based payments

The Company operates equity-settled share based remuneration plans for its employees. All services received
in exchange for the grant of any share-based payment are measured at their fair values on the grant date and
is recognised as an employee expense, in the profit or loss with a corresponding increase in equity, over the
period that the employees become unconditionally entitled to the options. The increase in equity recognised
in connection with share-based payment transaction is presented as a separate component in equity under
"Employee stock options reserve”. The amount recognised as an expense is adjusted to reflect the actual
number of stock options that vest. Grant date is the date when the Company and employees have shared an
understanding of terms and conditions on the arrangement.

Where employees are rewarded using share based payments, the fair value of employees'' services is determined
indirectly by reference to the fair value of the equity instruments granted. This fair value is appraised at the grant
date and excludes the impact of non-market vesting conditions (for example profitability and sales growth). All

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share-based remuneration is ultimately recognised as an expense in profit or loss. If vesting periods or other
vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate
of the number of share options expected to vest. Non-market vesting conditions are included in assumptions
about the number of options that are expected to become exercisable. Estimates are subsequently revised
if there is any indication that the number of share options expected to vest differs from previous estimates.
Any adjustment to cumulative share-based compensation resulting from a revision is recognised in the current
period. The number of vested options ultimately exercised by holder does not impact the expense recorded in
any period.

Market conditions are taken into account when estimating the fair value of the equity instruments granted. Upon
exercise of share options, the proceeds received, net of any directly attributable transaction costs, are allocated
to share capital up to the nominal (or par) value of the shares issued with any excess being recorded as share
premium.

hh) Contributed equity

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all
of its liabilities. Equity instruments issued by a Company are recognized at the proceeds received, net of direct
issue costs.

ii) Dividend

The final dividend on shares is recorded as a liability on the date of approval by the shareholders. Interim
dividend is recognised as a liability on the date of declaration by the Company''s Board of Directors.

jj) Earnings per share

Basic earnings per share is computed by dividing the profit/ (loss) for the year by the weighted average number
of equity shares outstanding during the year. The weighted average number of equity shares outstanding during
the year is adjusted for treasury shares, bonus issue, and bonus element in a rights issue to existing shareholders,
share split and reverse share split.

Diluted earnings per share is computed by dividing the profit/ (loss) for the year as adjusted for dividend, interest
and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity
shares, by the weighted average number of equity shares considered for deriving basic earnings per share and
the weighted average number of equity shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares
would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are
deemed to be converted as at the beginning of the period, unless they have been issued at a later date.

kk) Rounding of amounts

The financial statements and notes are presented in Indian Rupee (?) and all values are presented in (?) lakhs and
rounded off to the extent of 2 decimals, unless otherwise stated.

ll) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting, nature of the products /
process, organization structure as well as differential risks and returns, provided to the Board of Directors, which
constitute as chief operating decision maker (''CODM'').

2.1 Use of estimates and judgements

The preparation of the standalone financial statements, in conformity with the recognition and measurement
principal of Ind AS, requires the management to make estimates and assumptions in the application of accounting
policies that affect the reported amounts of assets, liabilities, income, expenses and disclosures of contingent
assets and liabilities at the date of these standalone financial statements and the results of operation during the
reported period. Although these estimates are based upon management''s best knowledge of current events
and actions, actual results could differ from these estimates which are recognized in the period in which they are
determined.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are described below. The Company based its assumptions and estimates on parameters
available when the financial statements were prepared.

Existing circumstances and assumptions about future developments, however, may change due to market
changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
financial statements in the period in which changes are made and, if material, their effects are disclosed in the
notes to the financial statements.

i. Useful lives of property, plant and equipment and investment properties

Property, plant and equipment and investment property represent a significant proportion of the asset base
of the Company. The charge in respect of periodic depreciation is derived after determining an estimate
of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and
residual values of Company''s assets are determined by the management at the time the asset is acquired
and reviewed periodically, including at each reporting date.

ii. Classification of assets and liabilities into current and non-current

The management classifies the assets and liabilities into current and noncurrent categories based on
management''s expectation of the timing of realization of the assets or timing of contractual settlement of
liabilities.

iii. Compensation liability in case of project under development

The management requires to make estimates of payments to be made in connection with the temporary
accommodation facilities provided to the tenants and corpus payments for acquiring land developments
rights in case of redevelopment projects.

iv. Impairment of financial and non- financial assets

In assessing impairment, management estimates the recoverable amounts of each asset (in case of non¬
financial assets) based on expected future cash flows and uses an estimated interest rate to discount them.
Estimation uncertainty relates to assumptions about future cash flows and the determination of a suitable
discount rate.

v. Fair value measurements of financial instruments

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. Management bases its assumptions on observable data as
far as possible but this is not always available. In that case, management uses the best information available.
Estimated fair values may vary from the actual prices that would be achieved in an arm''s length transaction
at the reporting date.

vi. Revenue recognition

The Company recognizes revenue from sale of residential and commercial units (including other fee such
as club house charges etc.) and construction services over the time of completion of project where criteria
of Ind AS 115 are met. This requires the Company to estimate the efforts or costs expended to date as
a proportion of the total efforts or costs to be expended. Efforts or costs expended have been used to
measure progress towards completion as there is a direct relationship between input and productivity.

vii. Expected credit loss

The Company applies Expected Credit Losses ("ECL”) model for measurement and recognition of loss
allowance on the following: • Trade receivables and lease receivables. • Financial assets measured at
amortised cost (other than trade receivables and lease receivables). • Financial assets measured at fair value
through other comprehensive income (FVTOCI). In accordance with Ind AS 109 - Financial Instruments, the

Company applies ECL model for measurement and recognition of impairment loss on the 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 115 - Revenue from Contracts with Customers.

For this purpose, the Company follows ''simplified approach'' for recognition of impairment loss allowance
on the trade receivable balances. 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 ECLs at each
reporting date, right from its initial recognition.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on
portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over
the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting
date, the historical observed default rates are updated and changes in the forward-looking estimates are
analysed.

In case of other assets, the Company determines if there has been a significant increase in credit risk of
the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an
amount equal to twelve months ECL is measured and recognised as loss allowance. However, if credit risk
has increased significantly, an amount equal to lifetime ECL is measured and recognised as loss allowance.

viii. Provisions, contingent liabilities, contingent assets and capital commitments

The Company exercises judgement in determining if a particular matter is possible, probable or remote.
The Company also exercises judgement in measuring and recognising provisions and the exposures
to contingent liabilities related to pending litigation or other outstanding claims subject to negotiated
settlement, mediation, government regulation, as well as other contingent liabilities. Judgement is necessary
in assessing the likelihood that a pending claim will succeed, or a liability will arise and to quantify the
possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process,
actual losses may be different from the originally estimated provision. Provisions are reviewed at each
balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the provision is reversed.

ix. Share-based payments

Estimating fair value for share-based payment requires determination of the most appropriate valuation
model. The estimate also requires determination of the most appropriate inputs to the valuation model
including the expected life of the option, volatility and dividend yield and making assumptions about them.

x. Recognition of deferred tax assets

In assessing the realizability of deferred income tax assets, management considers whether some portion
or all the deferred income tax assets will not be realized. The ultimate realization of deferred income tax
assets is dependent upon the generation of future taxable income during the period in which the temporary
differences become deductible. Management considers the scheduled reversals of deferred income tax
liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based
on the level of historical taxable income and projections for future taxable income over the periods in
which the deferred income tax assets are deductible, management believes that the Company will realize
the benefits of those deductible differences. The amount of the deferred income tax assets considered
realizable, however, could be reduced in the near term if estimates of future taxable income during the
carry forward period are reduced.

xi. Defined benefit obligation

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

xii. Accounting for revenue and land cost for projects executed through joint development arrangements

For projects executed through joint development arrangements (JDA), the revenue from the development
and transfer of constructed area/revenue sharing arrangement and the corresponding land/ development
rights received under JDA is measured at the fair value of the estimated consideration payable or
construction service rendered to the landowner. The fair value is estimated with reference to the terms of the
JDA (whether revenue share or area share) and the related cost that is allocated to discharge the obligation
of the Company under the JDA. Fair value of the construction is considered to be the representative fair
value of the revenue transaction and land so obtained. The management is of the view that the fair value
method and estimates are reflective of the current market condition.

Borrowing costs, pertaining to development of long term projects during active development, are
transferred to construction work in progress, as part of the cost of the projects till the time all the activities
necessary to prepare these projects for its intended use or sale are complete.

Fair value and valuation technique of investment property

The Company''s investment properties consists of two class of assets i.e. commercial/ retail mall and residential
properties, which have been determined based on the nature, characteristics and risks of each property. The fair
values of the properties reflected are after accounting for any transfer/ sale/ disposal during the year.

The fair value of investment properties have been determined by external, independent registered property
valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, having appropriate
recognised professional qualification and recent experience in the location and category of the property being
valued in conjunction with valuer assessment services undertaken by approved valuer.

The Company obtains independent valuation for its investment property at least annually and fair value
measurements are categorized as Level 2 and 3 measurement for residential properties and commercial/ retail
mall respectively in the fair value hierarchy. The valuation has been taken considering values arrived using the

6.1 (a) During the year, the Company has subscribed 2,478,000 (31^st March, 2024: 41,500) preference shares

of USD 1 each in its subsidiary Sunteck Lifestyle International Private Limited, Mauritius for an aggregate
amount of '' 2,111.98 lakhs (31^st March, 2024: '' 34.20 lakhs).

(b) During the year, the Company has subscribed 681,200 (31^st March, 2024: Nil) 8% optionally convertible
redeemable preference shares of USD 1 each issued at USD 10 in its subsidiary Sunteck Lifestyle International
Private Limited, Mauritius for an aggregate amount of '' 5,850.83 lakhs (31^st March, 2024: Nil).

6.2 Piramal Sunteck Realty Private Limited (PSRPL), a joint venture company, has completed the buy back of Nil
(31^st March, 2024 : 112,600) fully paid-up equity shares (of which 50% i.e. Nil (31^st March, 2024 : 56,300) equity
shares was of Sunteck Realty Limited) having face value of '' 10 each at price of '' 1,110 per equity share on a
proportionate basis from its existing equity shareholders.

6.3 Mithra Buildcon LLP (''''LLP”), wherein the Company held 99.50% stake/ interest as partner, has been converted
into private company limited by shares namely Mithra Buildcon Private Limited ("MBPL”), with effect from 9^th May,
2024 and it continues to be subsidiary of the Company. Pursuant to such conversion, MBPL has issued 9,950
equity shares at face value of '' 10 each (representing 99.50% stake) to the Company towards the fixed capital of
'' 1.00 lakhs.

6.4 On 27^th February, 2024 Sundunes Real Estate Private Limited was incorporated, as a wholly owned subsidiary,
wherein the Company has subscribed 10,000 equity shares of face value of '' 10 per share each amounting to
'' 1.00 lakh on 23^rd April, 2024.

6.5 During the current year, the name has been changed from Sunteck YM Realty Private Limited to Promineo
Buildcon Private Limited with effect from 6^th March, 2025.

Nature and purpose of other equity and reserves :

(a) Capital reserve on merger

During merger, the excess of net assets taken over the cost of consideration paid is treated as capital reserve on
account of merger. Capital reserve is usually not distributed as dividends to shareholders.

(b) Securities premium

Securities premium is used to record the premium on issue of financial securities such as equity shares, preference
shares, employee stock options plan/ employee stock option scheme etc. The reserve is utilised in accordance
with the provision of the Companies Act, 2013.

(c) Share based payment reserve

Share based payment reserve is used to recognise the fair value of options on the grant date, issued to employees
under employee stock option plan.

(d) General reserve

General reserves are created out of profits and kept aside for general purpose and financial strengthening of the
Company, they don''t have any special purpose to fulfil and can be used for any purpose in future.

(e) Retained earnings

Retained earnings represents the cumulative profits of the Company, effects of measurements of defined
benefits obligations and on derecognition of equity instrument routed through OCI.

(f) Equity instrument through other comprehensive income

Equity instrument through other comprehensive income represents the investment is revalued at fair value at
each year end, with the gain or loss being taken through other comprehensive income.

37.1 I ncome Tax department officials conducted a survey under Section 133A of the Income Tax Act, 1961 at the
premises of the Company. The survey proceedings were concluded on 24^th December, 2021. During the previous
year, the Company has received demand orders from the Income Tax Department for an amount of '' 7,573.13 lakhs
for AY 2019-20 to AY 2021-22 in case of Sunteck Realty Limited, '' 1,664.29 lakhs for AY 2018-19 to AY 2020-21 and
'' 7,215.00 lakhs for AY 2017-18 to AY 2021-22 in case of erstwhile subsidiaries Skystar Buildcon Private Limited
and Starlight Systems (I) Private Limited respectively (Refer note 61). The Company has filed an appeal against such
orders which is still under process as at 31^st March, 2025 and is confident that matter will be resolved in favour of the
Company. The impact of the same to the extent not provided for is shown under contingent liabilities.

(iv) The Company has received a legal notice from an individual in the earlier years seeking production of certain
documents in relation to a legal suit which involves one of the co-venturer. In view of management, the Company
have been unnecessarily made party to the legal suit and is not involved in any manner with respect to the
matters alleged in the legal suit. The Company through its legal counsel had responded to the legal notice
stating that suit against the Company be dismissed in limine.

(v) The Honourable Supreme Court, has passed a decision on 28^th February, 2019 in relation to inclusion of certain
allowances within the scope of "Basic wages" for the purpose of determining contribution to provident fund
under the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952. The Company, based on legal
advice, is awaiting further clarifications in this matter in order to reasonably assess the impact on its financial
statements, if any. Accordingly, the applicability of the judgement to the Company, with respect to the period
and the nature of allowances to be covered, and resultant impact on the past provident fund liability, cannot be
reasonably ascertained, at present.

Note: It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above
pending resolution of the respective proceedings mentioned under i), ii), iii), iv) and v) above. The Company does not
expect any reimbursements in respect of the above contingent liabilities. Future cash outflows in respect of the above
are determinable only on receipt of judgments / decisions pending with various forums / authorities. The Company
does not expect any outflow of economic resources in respect of the above and therefore no provision is made in
respect thereof.

| 39 | Leases (Company as a lessor)

(a) Initial direct cost such as legal cost, brokerage cost etc. are amortised over the non-cancellable lease period.

(b) The Company''s significant leasing arrangements are in respect of operating leases for commercial and residential
premises. Lease income from operating leases is recognised on a straight-line basis over a period of lease. The
total future minimum lease rentals receivable for non-cancellable operating leases as at balance sheet date are
as under :

ESOS scheme 2019

The Nomination and Remuneration Committee, in the current year, by way of resolution passed by circulation dated
04^th October, 2024, granted 336,068 stock options to the eligible employees of the Company, its subsidiaries and
joint venture, under Sunteck Realty Limited Employees'' Stock Option Scheme 2019 ("ESOS 2019").

The Nomination and Remuneration Committee, in the current year, in its meeting held on 20^th January, 2025, granted
2,143 stock options to the eligible employees of the Company under Sunteck Realty Limited Employees'' Stock
Option Scheme 2019 ("ESOS 2019").

ESOS scheme 2022

The shareholders of the Company in the Annual General Meeting held on 23^rd September, 2022 had approved
''Sunteck Realty Limited Employees'' Stock Option Scheme 2022'' (ESOS 2022) to issue up to 1,400,000 equity shares
of the face value of '' 1 each of the Company to the employees of the Company and its subsidiary in terms of ESOS
2022 formulated and approved by the Board of Directors. As at 31^st March, 2025, no grants have been made under
ESOS 2022.

(b) Compensated absences

The Compensated absences cover the Company''s liability for sick and earned leave.

The liability is presented as current, since the Company does not have an unconditional right to defer settlement
for any of these obligations. The expense recognised during the year towards compensated absences is '' 185.09
lakhs (31^st March, 2024: '' 52.59 lakhs)

(c) Defined contribution plans
Provident fund

The Company also has certain defined contribution plans. The contributions are made to provident fund in India
for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered
provident fund administered by the government. The obligation of the Company is limited to the amount
contributed and it has no further contractual nor any constructive obligation. Amount recognised as an expense
during the year towards defined contribution plan is '' 151.62 lakhs (31^st March, 2024 : '' 147.12 lakhs).

(d) Post-employment obligations (Gratuity)

The Company provides gratuity a defined benefit retirement plan covering eligible employees of the Company
as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years or
more are eligible for gratuity. The gratuity plan is a non-funded plan.

Movement in present value of obligation and net assets

The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the
years are as follows:

Sensitivity analysis
Description of Risk Exposures

Valuations are performed on certain basic set of pre-determined assumptions which may vary over time. Thus, the
Company is exposed to various risks in providing the above benefit which are as follows:

Interest rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in
an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of liability.

Liquidity risk: This is the risk that the Company is not able to meet the short term benefit payouts. This may arise due
to non availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold
in time.

Salary escalation risk: The present value of the above benefit plan is calculated with the assumption of salary increase
rate of plan participants in future. Deviation in the rate of increase in salary in future for plan participants from the
rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The
Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972
(as amended from time to time).

Asset-Liability Matching: The Company has purchased insurance policy, which is basically a year-on-year cash
accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year.
The insurance company, as part of the policy rules, makes payment of all gratuity outgoes happening during the
year (subject to sufficiency of funds under the policy). The policy. thus, mitigates the liquidity risk. However, being a
cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company
is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a
increase in liability corresponding increase in the asset).

| 44 | Fair value measurements
(i) Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participant at the measurement date.
This section explains the judgments and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values
are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in
determining fair value, the Company has classified its financial instruments into the three levels prescribed under
the accounting standard. An explanation of each level follows underneath the table.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments
(including bonds) which are traded in the stock exchanges are valued using the closing price as at the reporting
period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the counter derivatives) is determined using valuation techniques which maximise the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value
an instrument are observable, the instrument is included in level 2.

Valuation techniques

(i) The fair values of investment in equity instruments (quoted) is based on the bid price of respective
investment as at the reporting date.

ii) The fair values of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the
issuers of these mutual fund units in the published statements as at reporting date. NAV represents the
price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem
such units from the investors. The fair values of investment in equity instruments (quoted) is based on the
bid price of respective investment as at the reporting date.

iii) Fair value of non-current other financial assets, loans and other financial liabilities approximate their carrying
amounts due to the fact that it is estimated by discounting future cash flows using market rates of interest
as at reporting date.

iv) Fair value of long term borrowings approximate their carrying amounts due to the fact that long term
borrowings are availed at floating rates of interest which are based on market interest rates and in case of
fixed rate borrowings the interest rate is equal to the market interest rate as at reporting date.

| 45 | Financial risk management

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects
on the financial performance, the Company''s risk management is carried out by a corporate treasury and corporate
finance department under policies approved by the board of directors and top management. The Company''s treasury
identifies, evaluates and mitigates financial risks in close cooperation with the Company''s operating units. The board
provides the guidance for the overall risk management, as well as policies covering specific areas.

This note explains the sources of risks which the entity is exposed to and how the entity manages the risk and the
related impact in the financial statement.

(A) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their contractual terms
and obligations. To manage this, the Company periodically assess financial reliability of customers, taking into
account the financial condition, current economic trends, and analysis of historical bad debts and ageing of
accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there
is a significant increase in credit risk the Company compares the risk of default occurring on the asset as at the
reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive
forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s
ability to meet its obligations,

iv) Significant changes in the value of the collateral supporting the obligation or in the equity of the third-party
guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a trade receivable
failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the
Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries
are made, these are recognized in statement of profit and loss.

Credit risk is managed at Company level.

For other financial assets, the Company assesses and manages credit risk based on internal control and credit
management system. The finance function consists of a separate team who assess and maintain an internal credit
management system. Internal credit control and management is performed on a Company basis for each class
of financial instruments with different characteristics.

The Company considers whether there has been a significant increase in credit risk on an ongoing basis
throughout each reporting period. It considers available reasonable and supportive forward-looking information.

Macroeconomic information (such as regulatory changes, market interest rate or growth rates) are also considered
as part of the internal credit management system.

A default on a financial asset is when the counterparty fails to make payments as per contract. This definition
of default is determined by considering the business environment in which entity operates and other macro¬
economic factors.

The Company exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However credit risk with regards to trade receivable is almost negligible in case of its residential and commercial
sale and rental business. The same is due to the fact that in case of its residential and commercial sale business
it does not handover possession till entire outstanding is received. Similarly in case of rental business, the
Company keep 3 to 12 months rental as deposit from the occupants (Refer notes 12.2 and 12.5).

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and
financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

For the credit risk on loans, the Company avoids the concentration of credit risk by spreading them over several
counterparties with good credit rating profile and sound financial position. The Company''s exposure and credit
ratings of its counterparties are monitored on an ongoing basis. Based on historical experience and credit
profiles of counterparties, the Company does not expect any significant risk of default.

The carrying amounts of financial assets represent th

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Mar 31, 2024

viii. Provisions, contingent liabilities, contingent assets and capital commitments

The Company exercises judgement in determining if a particular matter is possible, probable or remote. The Comapny also exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims subject to negotiated settlement, mediation, government regulation, as well as other contingent liabilities. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual losses may be different from the originally estimated provision. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

ix. Share-based payments

Estimating fair value for share-based payment requires determination of the most appropriate valuation model. The estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the option, volatility and dividend yield and making assumptions about them.

x. Recognition of deferred tax assets

I n assessing the realisability of deferred income tax assets, management considers whether some portion or all the deferred income tax assets will not be realised. The ultimate realisation of deferred income tax assets is dependent upon the generation of future taxable income during the period in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, management believes that the Company will realise the benefits of those deductible differences. The amount of the deferred income tax assets considered realisable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.

xi. Defined benefit obligation

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

xii. Accounting for revenue and land cost for projects executed through joint development arrangements

For projects executed through joint development arrangements (JDA), the revenue from the development and transfer of constructed area/revenue sharing arrangement and the corresponding land/ development rights received under JDA is measured at the fair value of the estimated consideration payable or construction service rendered to the landowner. The fair value is estimated with reference to the terms of the JDA (whether revenue share or area share) and the related cost that is allocated to discharge the obligation of the Company under the JDA. Fair value of the construction is considered to be the representative fair value of the revenue transaction and land so obtained. The management is of the view that the fair value method and estimates are reflective of the current market condition.

Borrowing costs, pertaining to development of long term projects during active development, are transferred to construction work in progress, as part of the cost of the projects till the time all the activities necessary to prepare these projects for its intended use or sale are complete.

c) Revenue recognition

(i) Revenue from real estate development/sale, maintenance services, construction and project management services

Revenue from contracts with customers

Revenue is recognised on satisfaction of performance obligation upon transfer of control of promised products (residential or commercial completed units) or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue and trade receivables are recorded at transaction price, which is the consideration, adjusted for discounts and other credits, if any, as specified in the contract with customers.

The Company satisfies the performance obligation and recognises revenue over time, if one of the following criteria is met:

• The customer simultaneously receives and consumes the benefits provided by the Company''s performance as the Company performs; or

• The Company''s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

• The Company''s performance does not create an asset with an alternative use to the Company and an entity has an enforceable right to payment for performance completed to date.

For performance obligations where any one of the above conditions are not met, revenue is recognised at the point in time (completed contract basis) at which the performance obligation is satisfied.

I n case, revenue is recognised over the time, it is being recognised from the financial year in which the agreement to sell or any other binding documents containing salient terms of agreement to sell is executed. In respect of ''over the period of time'', the revenue is recognised based on the percentage-of-completion method (''POC method'') of accounting with cost of project incurred (input method) for the respective projects determining the degree of completion of the performance obligation.

The period over which revenue is recognised is based on entity''s right to payment for performance completed. In determining whether an entity has right to payment, the entity shall consider whether it would have an enforceable right to demand or retain payment for performance completed to date, if the contract were to be terminated before completion for reasons other than entity''s failure to perform as per the terms of the contract.

The Company bills to customers for construction contracts as per agreed terms. The Company adjusts the transaction price for the effects of the significant financing component included in the contract price in the case of contracts involving the sale of property under development, where the Company offers deferred payment schemes to its customers.

Revenue from construction services being cost plus contracts is recognised over time and is determined with reference to the extent performance obligations have been satisfied. The amount of transaction price allocated to the performance obligations satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the customer.

The revenue recognition from sales of residential and commercial units and construction services requires forecasts to be made of total budgeted costs with the outcomes of underlying construction contracts, which further require assessments and judgments to be made on changes in work scopes and other payments to the extent they are probable and they are capable of being reliably measured. In case, where the total project cost is estimated to exceed total revenues from the project, the loss is recognised immediately in the statement of profit and loss.

Revenue recognised in excess of invoicing is classified as contract asset while invoicing in excess of revenue recognised (billing in excess of contract revenue), deferred revenue i.e. where revenue is being recognised post completion of the project and advance from customers are classified as contract liabilities.

(ii) Revenue from Joint Development Agreement (JDA)

For projects executed through joint development arrangements (JDA) not being jointly controlled operations, wherein the landowner provides rights to develop the land and the Company undertakes to develop properties on such land and in lieu of landowner providing land, whereas the Company agrees to transfer certain percentage of constructed area or certain percentage of the revenue proceeds. Basis the terms and conditions of the JDA, the revenue from the development and transfer of constructed area/revenue sharing arrangement and the corresponding land/ development rights received under JDA is measured at either fair value of development rights or the fair value of the estimated construction service rendered to the landowner and the same is accounted on launch of the project. The fair value is estimated with reference to the terms of the JDA (whether revenue share or area share) and the related cost that is allocated to discharge the obligation of the Company under the JDA. Fair value of the construction is considered to be the representative fair value of the revenue transaction and land so obtained. The management is of the view that the fair value method and estimates are reflective of the current market condition. In case of JDA, wherein the Group agrees to transfer certain percentage of constructed area, revenue from construction services is recognised over time, on the basis of the inputs to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation.

In case of joint development arrangements being jointly controlled operations, wherein the landowner and the Group jointly control the arrangement to develop the project and decisions about the relevant activities require the unanimous consent of both the parties sharing control, are accounted in accordance with Ind AS 111. Since both the parties have separate rights and obligation, the Group recognises revenue proportionately to the extent of its share in the transaction price for its performance obligation.

d) Cost of Construction and Development

Cost of construction and development , includes cost of land (cost of development rights/ land under

agreements to purchase) liaisoning costs, estimated internal development costs, external development

charges, overheads, construction costs and development/ construction materials, which is charged to the statement of profit and loss based on the revenue recognised as explained in policy under revenue recognition, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the specific project.

"Costs to obtain contracts” such as brokerage fees paid for obtaining sales contracts, are recognised as assets when incurred and amortised over the period of time or at the point in time depending upon recognition of revenue from the corresponding property sale contract.

e) Income tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to deductible temporary differences (in case of deferred tax assets) and taxable temporary differences (in case of deferred tax liabilities).

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 in accordance with the Income-tax Act. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date where the Company operates and generates taxable income.

Deferred tax

Deferred income tax is provided using the balance sheet approach on deductible and taxable temporary differences between the carrying amounts of assets and liabilities in the standalone financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax assets and liabilities are not recognised for:

• temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss at the time of the transaction;

• The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 are recognised for all deductible temporary differences, unused tax losses and carry forward unused tax credits only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

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

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. Current tax assets and tax liabilities are offset where the Company 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.

Current and deferred tax is recognised in statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income (OCI) or directly in equity. In this case, the tax is also recognised in OCI or directly in equity, respectively.

Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India which is likely to give future economic benefit in the form of availability of setoff against future income tax liability. Accordingly, MAT is recognised as deferred tax assets in the balance sheet when the assets can

be measured reliably and it is probable that the future economic benefit associated with the asset will be realised.

f) Leases

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange of the consideration.

Company as a lessee

At the date of the commencement of the lease, the Company recognises a right-of-use asset representing its right to use the underlying asset for the lease term and a corresponding lease liability for all the lease arrangements in which it is a lease, except for leases with a term of twelve months or less (short-term leases) and low value leases.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the non-cancellable period of the relevant lease in the Statement of Profit and Loss. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the non-cancellable period on the same basis as rental income.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

Lease deposits received are financial instruments (financial liability) and are measured at fair value on initial recognition. The difference between the fair value and the nominal value of deposits is considered as rent in advance and recognised over the lease terms on straight line basis. Unwinding of discount is treated as interest expense (finance cost) for deposit received and is accrued as per the EIR method.

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

h) Financial instruments

(i) Classification

Financial assets, other than equity instruments, are subsequently measured at amortised cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL) on the basis of both:

(a) the entity''s business model for managing the financial assets and

(b) the contractual cash flow characteristics of the financial asset.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

The Company reclassifies debt investments when and only when its business model for managing those assets changes.

(ii) Measurement

At initial recognition, the Company measures a financial asset other than trade receivables at its fair value, in the case of a financial asset not carried at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Measurement of loan instruments

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

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

• Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

• Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss

within other gains/(losses) in the period in which it arises. Interest income from these financial assets is included in other income.

Measurement of equity instruments

The Company subsequently measures all equity investments at fair value except investment in subsidiary and joint venture. Where the Company''s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such investments are recognised in profit or loss as other income when the Company''s right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in the Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.

(iii) Impairment of financial assets

I n accordance with Ind AS 109, the Company applies the expected credit loss ("ECL”) model for measurement and recognition of impairment loss on financial assets and credit risk exposures. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. Simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime 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 whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month 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 recognizing impairment loss allowance based on 12-month ECL.

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

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income / expense in the statement of profit and loss.

(iv) Derecognition of financial assets

A financial asset is derecognised only when

• The Company has transferred the rights to receive cash flows from the financial asset or

• The Company retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

i) Classification and subsequent measurement of financial liabilities

All financial liabilities are recognised initially at its fair value adjusted by directly attributable transaction costs. The measurement of financial liabilities depends on their classification as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss 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 statement of profit and loss.

The Company has not designated any financial liability as at fair value through profit and loss. Financial liabilities measured at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of profit and loss when the liabilities are derecognised.

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.

j) Borrowing costs

Borrowing costs that are directly attributable to the acquisition/construction of qualifying assets are capitalised as part of their costs.

Borrowing costs are considered as part of the asset cost when the activities that are necessary to prepare the assets for their intended use or sale are in progress.

Borrowing costs consist of interest and other costs that Company incurs in connection with the borrowing of funds. Other borrowing costs are recognised as an expense, in the period in which they are incurred.

Pursuant to a clarification issued by the International Accounting Standards Board (''IASB'') in relation to borrowing costs on real-estate projects where revenue is recognised on percentage of completion basis, the Company has with effect from 1 April 2019 excluded such borrowing costs relating to the post-launch period from its estimates of the balance cost to completion, and the same is recognised as finance cost in the Statement of Profit and Loss.

k) Property, plant and equipment (including capital work in progress)

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Borrowing costs relating to acquisition of property, plant and equipment which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use. Capital work in progress includes expenditure incurred till the assets are put into intended use.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Items of property, plant and equipment that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the statement of profit and loss.

Losses arising from the retirement of, and gains or losses arising from disposal of property, plant and equipment which are carried at cost are recognised in the statement of profit and loss.

l) Depreciation and amortisation

(i) Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. Freehold land is not depreciated.

(ii) Depreciation on property, plant and equipment and investment property has been provided on prorata basis, on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013, except for furniture and fixtures and air conditioner wherein based on technical assessment of management, useful life has been estimated to be different from that prescribed in Schedule II to the Act. Residual value is considered as 5% of the original acquisition cost of the assets.

(iii) Amortisation is recognised on a straight-line basis over their estimated useful lives. The Company amortises computer software using the straight-line method over the period of 5 years.

The estimated useful life, residual values and depreciation/amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

m) Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the company, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognised.

Though the company measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes.

Reclassification from/to investment property- Transfers to (or from) investment property are made only when there is a change in use. Transfers between investment property, owner-occupied property and inventories do not change the carrying amount of the property transferred and they do not change the cost of that property for measurement or disclosure purposes.

n) Provisions, contingencies and commitments

A provision is recognised when the Company has a present obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

A disclosure for contingent liabilities is made where there is:

(i) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or

(ii) a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability.

Contingent assets are not recognised in the financial statements. However, it is disclosed only when an inflow of economic benefits is probable. Commitments are future liabilities for contractual expenditure, classified and disclosed as estimated amount of contracts remaining to be executed on capital account and not provided for.

o) Employee benefits:

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Compensated absences

The Company presents the leave as a current liability in the balance sheet, to the extent it does not have an unconditional right to defer its settlement for twelve months after the reporting date. Where the Company has the unconditional legal and contractual right to defer the settlement for a period beyond twelve months, the same is presented as non-current liability.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plan such as gratuity; and

(b) defined contribution plan such as provident fund.

(iv) Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

(v) Defined contribution plan

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

p) Business combination

Business combinations, other than common control business combinations, are accounted for using the purchase (acquisition) method. The cost of an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the date of exchange by the Company. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at fair value at the date of acquisition. Transaction costs incurred in connection with a business acquisition are expensed as incurred.

The cost of an acquisition also includes the fair value of any contingent consideration measured as at the date of acquisition. Any subsequent changes to the fair value of contingent consideration classified as liabilities, other than measurement period adjustments, are recognised in the statement of profit and loss.

Common Control business combinations, i.e. business combinations involving entities or businesses under common control, are accounted for using the pooling of interests method. The assets and liabilities of the combining entities are reflected at their carrying amounts. The identity of the reserves shall be preserved and shall appear in the financial statements of the transferee in the same form in which they appeared in the financial statements of the transferor. The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor shall be transferred to capital reserve and should be presented separately as Common Control Transactions Capital reserve.

q) Investment in subsidiaries and joint ventures

Investments in subsidiaries and joint ventures are recognised at cost as per Ind AS 27.

These standalone financial statements have been prepared in accordance with amended Schedule III to the Companies Act 2013.

r) Cash flow statement

The Statement of Cash flows has been prepared under indirect method, whereby profit or loss before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The Cash flow from operating, investing and financing activities are segregated.

s) Recent pronouncements

Ministry of corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

t) New and amended standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31st March, 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1st April, 2023.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments had no impact on the Company''s Standalone financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s Standalone financial statements.

These standalone financial statements have been prepared in accordance with amended Schedule III to the Companies Act, 2013.

.1 Summary of other accounting policy information

1. Foreign currency transactions

(i) Functional and presentation currency

The financial statements are presented in Indian rupee (''), which is Company''s functional and presentation currency. Functional Currency is the currency of a primary economic environment in which the Company operates.

(ii) Initial recognition

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the Statement of Profit and Loss for the year.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement of Profit and Loss, within finance costs.

(iii) Measurement of foreign currency items at the balance sheet date

Foreign currency monetary items of the Company are translated at the closing exchange rates. Nonmonetary items that are measured at historical cost in a foreign currency, are translated at the exchange rate prevailing on the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The gain 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 the fair value of the item. Exchange differences arising out of these transactions are recognised in the Statement of Profit and Loss.

(iv) Foreign operations

The result and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• assets and liabilities are translated at the closing rate at the date of that balance sheet

• i ncome and expenses are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and

• all resulting exchange differences are recognised in other comprehensive income.

2. Rent

Rental income arising from operating leases on investment properties is accounted for on a straight line basis over the lease term agreed with the respective tenant and included in operating revenue in the standalone financial due to operating nature.

3. Maintenance income

I ncome arising from billing of maintenance charges to tenants/customers is recognised in the period in which the services are being rendered. A receivable is recognised by the Company when the services are rendered as this is the case of point in time recognition where consideration is unconditional because only the passage of time is required. Further, the Company considers the terms of the contract and its customary business practices to determine the transaction price.

4. Interest

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

5. Forfeiture income

Forfeiture income is recognised on cancellation of unit by unitholder and when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

6. Dividend

Dividend income from investments is recognised when the Company''s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).

7. Profit /Loss from Partnership Firms / Limited Liability Partnerships (LLP)

Share of profit / loss from firms/ LLPs in which the entity is a partner is accounted for in the financial period ending on (or before) the date of the balance sheet on the basis of financial statements and as per the terms of the respective partnership deed.

Other income is recognised as and when due or received, whichever is earlier.

8. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and demand deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

For the purpose of statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

9. Impairment of non- financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use.

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 group of assets.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

10. Interest income from financial assets

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. 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.

11. Offsetting financial instruments

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

12. Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset comprises of its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

I ntangible assets under development (IUD) comprises of direct cost, related incidental expenses and attributable borrowing cost, if any, on intangible assets which are not ready for their intended use. IUD usually pertain to a product development project which has reached a defined milestone according to an established project management model and its technological and economic feasibility is viable. Expenditure on research activities is recognised in statement of profit and loss as incurred. Intangible assets under development are subject to impairment testing at each reporting date and assessed for impairment and impairment loss, if any.

13. Share-based payments

The Company operates equity-settled share based remuneration plans for its employees. All services received in exchange for the grant of any share-based payment are measured at their fair values on the grant date and is recognised as an employee expense, in the profit or loss with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. The increase in equity recognised in connection with share-based payment transaction is presented as a separate component in equity under "Employee stock options reserve”. The amount recognised as an expense is adjusted to reflect the actual number of stock options that vest. Grant date is the date when the Company and employees have shared an understanding of terms and conditions on the arrangement.

Where employees are rewarded using share based payments, the fair value of employees'' services is determined indirectly by reference to the fair value of the equity instruments granted. This fair value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example profitability and sales growth). All share-based remuneration is ultimately recognised as an expense in profit or loss. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Non-market vesting conditions are included in assumptions about the number of options that are expected to become

exercisable. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any adjustment to cumulative share-based compensation resulting from a revision is recognised in the current period. The number of vested options ultimately exercised by holder does not impact the expense recorded in any period.

Market conditions are taken into account when estimating the fair value of the equity instruments granted. Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs, are allocated to share capital up to the nominal (or par) value of the shares issued with any excess being recorded as share premium.

14. Contributed equity

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company are recognised at the proceeds received, net of direct issue costs.

15. Dividend

The final dividend on shares is recorded as a liability on the date of approval by the shareholders. Interim dividend is recognised as a liability on the date of declaration by the Company''s Board of Directors.

16. Earnings per share

Basic earnings per share is computed by dividing the profit/ (loss) for the year by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares, bonus issue, and bonus element in a rights issue to existing shareholders, share split and reverse share split.

Diluted earnings per share is computed by dividing the profit/ (loss) for the year as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.

17. Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the requirement of Schedule III to the Companies Act, 2013 unless otherwise stated.

18. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting, nature of the products / process, organisation structure as well as differential risks and returns, provided to the Board of Directors, which constitute as chief operating decision maker (''CODM'').

Fair value and valuation technique of investment property

The Company''s investment properties consists of two class of assets i.e. commercial/retail mall and residential properties, which have been determined based on the nature, characteristics and risks of each property. The fair values of the properties reflected are after accounting for any transfer/ sale/ disposal during the year.

The fair value of investment property has been determined by external, independent registered property valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, having appropriate recognised professional qualification and recent experience in the location and category of the property being valued in conjunction with valuer assessment services undertaken by approved valuer.

The Company obtains independent valuation for its investment property at least annually and fair value measurements are categorized as Level 2 and 3 measurement for residential properties and commercial/ retail mall respectively in the fair value hierarchy. The valuation has been taken considering values arrived using the following methodologies:

(a) Discounted cash flow method, net present value is determined based on projected cash flows discounted at an appropriate rate; or

(b) Sales comparable method, which compares the price or price per unit area of similar properties being sold in the marketplace

Description of Risk Exposures

Valuations are performed on certain basic set of pre-determined assumptions which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

Interest rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of liability.

Liquidity risk: This is the risk that the Company is not able to meet the short term benefit payouts. This may arise due to non availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary escalation risk: The present value of the above benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Acti 1972 (as amended from time to time).

44 FAIR VALUE MEASUREMENTS (i) Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participant at the measurement date.

This section explains the judgments and estimates made in determining the fair values of the financial instru

---

Mar 31, 2023

Estimation of fair value :

The fair value of investment properties are based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair valuation is based on prevailing market value is a result of demand/ supply, merits/ demerits of properties and various locational, social, economical, political factors and circumstances. Pravailing market value can be estimated through market survey, through dependable data/ sale instances, local estate developers/ brokers, our database, real estate portal enquiries and verbal enquiries in neighbourhood area. The value of furniture, fixtures movable items are not considered in our valuation. This valuation is based on valuations performed by an accredited independent valuer. The fair value measurement is categorised in level 3 fair value hierarchy.

The fair valuation is based on discounted cash flow method (DCF). This valuation is based on valuation performed by an accredited independent valuer. The fair value measurement is categorised in level 3 fair value hierarchy due to use of unobservable inputs.

Under the DCF method, fair value is estimated using assumptions regarding the benefits and liabilities of ownership over the asset''s life including an exit or terminal value. This method involves the projection of a series of cash flows from property. To this projected cash flow series, a market-derived discount rate is applied to establish the present value of the income stream associated with the asset. The exit yield is normally separately determined and differs from the discount rate.

The duration of the cash flows and the specific timing of inflows and outflows are determined by events such as rent reviews, lease renewal, escalation. The appropriate duration is typically driven by market behaviour that is a characteristic of the class of real property. Periodic cash flow is typically estimated as gross income less nonrecoverable expenses, repairs & maintenance cost, other operating and management expenses. The series of periodic net operating income, along with an estimate of the terminal value anticipated at the end of the projection period, is then discounted.

(iii) During the year, properties aggregating Nil (31 March 2022: '' 930.58 lakhs) has been transferred from inventories to investment properties.

(iv) The Company has no restriction on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

(v) During the year, properties aggregating gross block of '' 301.24 lakhs (31 March 2022 : Nil) and net block of '' 250.62 lakhs (31 March 2022: Nil) has been transferred from investment properties to property, plant and equipment pursuant to change in use.

Refer note 42 for information on investment properties pledged as security by the Company.

Refer note 39 for information regarding future lease rentals receivable.

Refer note 53 for details of title deeds of immovable properties.

6.1 During the year, the Company has subscribed 153,000 (31st March, 2022: 242,000) preference shares of USD 1 each in its subsidiary Sunteck Lifestyle International Private Limited, Mauritius for an aggregate amount of '' 121.76 Lakhs (31st March, 2022: '' 179.13 Lakhs).

6.2 On 7th October, 2022, Piramal Sunteck Realty Private Limited (PSRPL), a joint venture company, has completed the buy back of 194,900 fully paid-up equity shares (of which 50% i.e. 97,450 equity shares was of the Company) having face value of '' 10 each at price of '' 1,110 per equity share.

6.3 On 30th March, 2022, a wholly owned subsidiary, Sunteck Infracon Private Limited ("SIPL”) was incorporated wherein the Company has subscribed 10,000 equity shares of SIPL at face value of '' 10 per share aggregating '' 1 Lakhs on 23rd May, 2022 at par.

6.4 On 26th April, 2022, a wholly owned subsidiary, Sunteck Realtors Private Limited ("SRPL”) has been incorporated wherein the Company has subscribed 10,000 equity shares of SRPL at face value of '' 10 per share aggregating '' 1 Lakhs 23rd May, 2022 at par.

6.5 During the current year, pursuant to the approval of its Board, the Company has converted 3,881 Compulsorily Convertible Debentures (CCDs) of '' 33,857.84 Lakhs to Optionally Convertible Debentures (OCDs) and 770 OCDs (31st March, 2022: 1055 OCDs) have been redeemed at face value for an amount aggregating to '' 6,717.48 Lakhs.

6.6 (a) During the current year, Starlight System (I) LLP (''''LLP”), wherein the Company held 98% stake/ interest as

partner, has been converted into private company limited by shares namely Starlight System (I) Private Limited ("SSIPL”), with effect from 29th April, 2022 and it continues to be subsidiary of the Company. Pursuant to such conversion, on 28th June, 2022, SSIPL has issued 9,800 equity shares at face value of '' 10 each (representing 98% stake) to the Company towards the fixed capital of '' 0.98 Lakhs .

(b) During the current year, the Company has subscribed 62,005 Optionally Convertible Debentures of face value of '' 100,000 each aggregating '' 62,005.00 Lakhs of Starlight System (I) Private Limited ("SSIPL”), by conversion of partial loan balance, which represents current capital investments and accumulated balance towards the share of profit/loss of the Company till the date of conversion i.e. 29th April, 2022 from Starlight System (I) LLP ("LLP”) into a private company.

(c) During the current year, pursuant to the approval of its Board of Directors, the Company has redeemed 2,550 Optionally Convertible Debentures (OCDs) of '' 2,550.00 Lakhs (31st March, 2022: Nil) at face value.

*** All these investments (being strategic in nature) are measured at fair value through other comprehensive income (''FVTOCI'') since these are not held for trading purposes and thus disclosing their fair value fluctuation in profit and loss will not reflect the purpose of holding. No dividend have been received from such investments during the year.

$ Refer note 45 for information on price risk

12.3 Trade receivables are non-interest bearing and are generally on credit terms of 15 days.

12.4 Refer note 42 for trade receivables offered as security against borrowings.

12.5 The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. The Company does not expects the significant risk in current and subsequent period, hence no additional ECL is recognised. Further, there has been improvement in the credit quality of the instrument, basis this there has been reversal of ECL in the current period.

(ii) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity share having a par value of '' 1 each with an entitlement of one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(iii) Shares held by subsidiaries

6,000,000 (31st March, 2022: 6,000,000) equity shares of '' 1 each fully paid up out of issued, subscribed and paid up share capital are held by its subsidiary companies.

(v) The Company has not issued any bonus shares, issued shares for consideration other than cash nor has been any buy back of shares during the period of five years immeditely preceeding 31st March, 2023 and 31st March, 2022.

(vi) During the current year, the Company has issued 27,799 (31 March 2022: 51,505) equity shares of face value of '' 1 each at a premium of '' 224 per equity share and 924 (31 March 2022: 4,000) equity shares of face value of '' 1 each at a premium of '' 324 per equity share pursuant to exercise of Employee Stock Option Schemes (ESOS) by the holders.

(vii) Shares reserved for issue under options

For details of shares reserved for issue under the employee stock option scheme (ESOS) of the Company (Refer note 40)

Nature and purpose of other equity and reserves :

(a) Capital reserve on merger

During merger, the excess of net assets taken over the cost of consideration paid is treated as capital reserve on account of merger. Capital reserve is usually not distributed as dividends to shareholders.

(b) Securities premium

Securities premium is used to record the premium on issue of financial securities such as equity shares, preference shares, employee stock options plan/ employee stock option scheme etc.. The reserve is utilised in accordance with the provision of the Companies Act, 2013.

(c) Share based payment reserve

Share based payment reserve is used to recognise the fair value of options on the grant date, issued to employees under employee stock option plan.

(d) General reserve

General reserves are created out of profits and kept aside for general purpose and financial strengthening of the Company, they don''t have any special purpose to fulfill and can be used for any purpose in future.

(e) Retained earnings

Retained earnings represents the cumulative profits of the Company and effects of measurements of defined benefits obligations routed through OCI.

(f) Equity instrument through other comprehensive income

Equity instrument through other comprehensive income represents the investment is revalued at fair value at each year end, with the gain or loss being taken through other comprehensive income.

38 CONTINGENT LIABILITIES AND COMMITMENTS		('' in Lakhs)
Particulars	As at 31st March, 2023	As at 31st March, 2022
(i) Claims not acknowledged as debts by the Company	-	82.32
(ii) Disputed income tax matters	39.26	214.33

(iii) The Company have received a legal notice from an individual in the earlier years seeking production of certain documents in relation to a legal suit which involves one of the co-venturer. The Company have been unnecessarily made party to the legal suit and is not involved in any manner with respect to the matters alleged in the legal suit. The Company through its legal counsel had responded to the legal notice stating that suit against the Company be dismissed in limine.

(iv) The Honourable Supreme Court, has passed a decision on 28th February, 2019 in relation to inclusion of certain allowances within the scope of ''''Basic wages” for the purpose of determining contribution to provident fund under the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952. The Company, based on legal advice, is awaiting further clarifications in this matter in order to reasonably assess the impact on its financial statements, if any. Accordingly, the applicability of the judgement to the Company, with respect to the period and the nature of allowances to be covered, and resultant impact on the past provident fund liability, cannot be reasonably ascertained, at present.

Note: It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings mentioned under i), ii), iii) and iv) above. The Company does not expect any reimbursements in respect of the above contingent liabilities. Future cash outflows in respect of the above are determinable only on receipt of judgments / decisions pending with various forums / authorities. The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.

('' in Lakhs)
Particulars	As at 31st March, 2023	As at 31st March, 2022
(v) Capital and others commitments	593.56	144.86

Expense arising from share-based payment transactions

During the year, provision relating to share-based payment transactions (Employee Stock Option Plan) has been recognised as employee benefit expense amounting to '' 44.81 Lakhs (31st March, 2022: '' 0.35 Lakhs ).

Provision relating to share based payment transactions has been reversed amounting to '' 23.44 Lakhs (31st March, 2022: '' 55.67 Lakhs ) relating to employees of subsidiary companies is disclosed under other current financial assets.

ESOS scheme 2022

During the financial year ended 31st March, 2023, the shareholders of the Company in the Annual General Meeting held on 23rd September, 2022 have approved ''Sunteck Realty Limited Employees'' Stock Option Scheme 2022'' (ESOS 2022) to issue up to 14,00,000 equity shares of the face value of '' 1 each of the Company to the employees of the Company and its subsidiary in terms of ESOS 2022 formulated and approved by the Board of Directors. During the year, no grants have been made under ESOS 2022.

(b) Compensated absences

The Compensated absences cover the Company''s liability for sick and earned leave.

The liability is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. The expense recognised during the year towards compensated absences is '' 48.47 Lakhs (31st March, 2022: '' 15.84 Lakhs )

(c) Defined contribution plans Provident fund

The Company also has certain defined contribution plans. The contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. Amount recognised as an expense during the year towards defined contribution plan is '' 106.66 Lakhs (31st March, 2022: '' 79.51 Lakhs ).

(d) Post-employment obligations (Gratuity)

The Company provides gratuity a defined benefit retirement plan covering eligible employees of the Company as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years or more are eligible for gratuity. The gratuity plan is a non-funded plan.

44 FAIR VALUE MEASUREMENTS

(i) Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participant at the measurement date.

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges are valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments.

- the use of discounted cash flow for fair value at amortised cost.

45 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance, the Company''s risk management is carried out by a corporate treasury and corporate finance department under policies approved by the board of directors and top management. The Company''s treasury identifies, evaluates and mitigates financial risks in close cooperation with the Company''s operating units. The board provides the guidance for the overall risk management, as well as policies covering specific areas.

This note explains the sources of risks which the entity is exposed to and how the entity manages the risk and the related impact in the financial statement.

(A) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their contractual terms and obligations. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant changes in the value of the collateral supporting the obligation or in the equity of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a trade receivable failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in statement of profit and loss.

Credit risk is managed at Company level.

For other financial assets, the Company assesses and manages credit risk based on internal control and credit management system. The finance function consists of a separate team who assess and maintain an internal credit management system. Internal credit control and management is performed on a Company basis for each class of financial instruments with different characteristics.

The Company considers whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. It considers available reasonable and supportive forward-looking information.

Macroeconomic information (such as regulatory changes, market interest rate or growth rates) are also considered as part of the internal credit management system.

A default on a financial asset is when the counterparty fails to make payments as per contract. This definition of default is determined by considering the business environment in which entity operates and other macroeconomic factors.

The Company exposure to credit risk is influenced mainly by the individual characteristics of each customer. However credit risk with regards to trade receivable is almost negligible in case of its residential and commercial sale and rental business. The same is due to the fact that in case of its residential and commercial sell business it does not handover possession till entire outstanding is received. Similarly in case of rental business, the Company keep 3 to 12 months rental as deposit from the occupants (Refer notes 12.2 and 12.5).

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding to meet obligations when due. Due to the dynamic nature of the underlying businesses, the Company''s treasury maintains flexibility in funding by maintaining sufficient cash and bank balances available to meet the working capital requirements. Management monitors rolling forecasts of the Company''s liquidity position (comprising the unused cash and bank balances along with liquid investments) on the basis of expected cash flows. This is generally carried out at the Company level in accordance with practice and limits set by the Company. These limits vary to take into account the liquidity of the market in which the Company operates.

(i) Maturities of financial liabilities

The tables below analyse the Companies financial liabilities into relevant maturity groupings based on their contractual maturities for :

All non-derivative financial liabilities, and the amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk (i) Price risk

- Exposure

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at "fair value through Other Comprehensive Income."

- Sensitivity

The table below summarises the impact of increases/ decreases of the BSE index on the Company''s equity and gain/ loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company''s equity instruments moved in line with the index.

(ii) Foreign currency risk (unhedged)

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (''). The risk is measured through a forecast of highly probable foreign currency cash flows. The Company does not cover foreign currency exposure with any derivative instruments. The Company also imports certain materials which are denominated in USD which exposes it to foreign currency risk. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies, including minimising cross currency transactions, using natural hedge to minimise the impact to results of the exchange rate movements. The unhedged exposures are maintained and kept to minimum feasible.

(iii) Cash flow and fair value interest rate risk - Interest rate risk management:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

46 CAPITAL MANAGEMENT (a) Risk management

The Company''s objectives when managing capital are to :

1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

2. Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, reduce debt or sell assets.

Proposed dividend

The Board of Directors have recommended a equity dividend of '' 1.50 per equity share of the face value of '' 1 each to the shareholders for the financial year ended 31st March, 2023. The same is subject to the approval of the shareholders of the Company at the Annual General Meeting and therefore not recognised as liability as at the Balance Sheet date.

c) Final / Interim dividend received

During the year, the Company has received dividend income from its subsidiaries and joint venture company aggregating '' 60.56 Lakhs (31st March, 2022: '' 52.60 Lakhs ) and '' 1,126.00 Lakhs (31st March, 2022: Nil) respectively.

(iv) The significant payment terms:

Construction-linked plans (CLP):

Under this plan, the unit holder can book a unit by paying a booking amount. Further, the balance amount is required to be paid as per the construction milestones as mentioned in the agreement.

Subvention scheme:

Under this scheme, the unit holder can book a unit by paying an agreed initial amount and balance amount is funded by the bank/ financial institution (FI) based on the construction linked payment schedule as per the agreed terms between the Company, the unit holder and the bank/ FI. Related finance cost for the agreed period is included in the contract price.

55 OTHER STATUTORY INFORMATION(i) Utilisation of borrowed funds and share premium

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

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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

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

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(iii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

(iv) The Company has complied with the number of layers as prescribed under section 2(87) of the Companies Act, 2013.

(v) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or discharged 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.)

(vi) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(vii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(viii There are no transactions or outstanding balances with struck off companies as at and for the year''s ended 31st March, 2023 and 31st March, 2022.

(ix) The Company has not entered into any scheme of arrangement which has an accounting impact on the current and previous financial year.

(x) The Company is not required to submit quarterly statements carrying financial information to the banks and financial institution for such nature of facility obtained by the Company for the years ended 31st March, 2023 and 31st March, 2022.

56 SEGMENT REPORTING a) Business segment

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Company''s Chairman and Managing director (CMD) is identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators, however, the Company is primarily engaged in only one segment viz., ''Real Estate/Real Estate Development and Related Activities'' and that most of the operations are in India. Hence, the Company does not have any other reportable Segments as per Indian Accounting Standard 108 "Operating Segments”.

b) Entity wide disclosures

None of the customers for the years ended 31st March, 2023 and 31st March, 2022 constituted 10% or more of the total revenue of the Company.

57 The Board of Directors of the Company at its meeting held on 10th November, 2022, approved the Scheme of Amalgamation of Starlight Systems (I) Private Limited (the wholly owned subsidiary of the Company) with the Company pursuant to the provisions of Sections 230 to 232 and other applicable provisions of the Companies Act, 2013. The Company has filed the necessary application with the National Company Law Tribunal (''NCLT'') which is pending for approval.

58 Other non-current financial assets as at 31st March, 2023 include '' 1,402.73 Lakhs , (31st March, 2022: '' 1,402.73 Lakhs) representing amount receivable from a partnership firm (''Firm'') in which the Company was associated as a partner till 6th October, 2020, which is presently under dispute with respect to alleged illegal sale of the firm''s assets by the other partner. The Company had received arbitration award dated 4th May, 2018 in its favour in respect of this matter which has been further challenged by the other partner in the Hon''ble Bombay High Court, which has neither been admitted as yet nor any stay granted against the award. Basis the status of the case, favourable arbitration award and legal opinion, Management is confident of recovering the aforesaid dues and therefore, no provision has been considered necessary at this stage. Further, considering the dispute, the Company has not accounted for its share of profits or losses for the period from 2015 till 6th October, 2020, as the financial statements from the partnership firm are not available. Since there were no operations in the partnership firm since 2015, Management does not expect the impact of such share of profits or losses, not accounted, to be material.

59 As the Company is engaged in the business of providing infrastructure facilities, the provisions (including disclosure requirements) of Section 186 of the Companies Act, 2013 with respect to loans made, guarantee given or security provided, are not applicable to the Company.

60 Non-current investments as at 31st March, 2023 include '' 26,097.78 Lakhs (31 March 2022: '' 25,976.02 Lakhs) representing investment in its wholly owned subsidiary, Sunteck Lifestyle International Private Limited (SLIPL), which had further acquired 50% share in joint venture company, GGICO Sunteck Limited (GGICO), through its wholly owned subsidiary, Sunteck Lifestyle Limited (SLL), for development of real-estate project in Dubai. Further, the Company''s other non-current financial assets include receivable from SLL amounting to '' 584.49 Lakhs . SLL has incurred losses during initial years and net-worth has been partially eroded. Development of the project undertaken by GGICO has been delayed on account of certain disputes with the other joint venture partner. SLL has obtained favourable order from the court of Dubai International Finance Centre against the claim made by other joint venture partner for termination of joint venture. Further, SLL has initiated arbitration before London Court of International Arbitration (LCIA) against the other partner, alleging that other partner has not obtained necessary regulatory and statutory approvals for commencing the construction activity as specified in the Joint Venture Agreement (JVA). The other JV partner has also initiated arbitration before LCIA against SLL and the Company alleging non-compliance of certain conditions of the JVA and seeking termination of the joint venture. During the previous year, partial award was given by LCIA (in arbitration initiated by SLL) confirming that SLL was not in breach of any joint venture condition, the termination of the joint venture is held to be invalid and also awarded reimbursement of certain payments made by SLL. The other party has filed a necessary application in the Singapore Court to partially set aside the award in respect of monetary compensation awarded. During the current year, basis the submission made by both the parties, the Arbitration Tribunal has granted stay in arbitration proceedings till 30th June, 2023 pending before the LCIA, to enable both the parties to mutually resolve the pending issues related to the dispute. Basis legal opinion, the management is of the view that such claims are not tenable against the Company and SLL. Further, based on estimated future business results once the project resumes and considering the contractual tenability, present status of negotiation / discussion / arbitration / litigations, Management believes that the realisable amount of investment in subsidiaries is higher than the carrying value of the non-current investments and other non-current financial assets due to which these are considered as good and recoverable as at 31st March, 2023.

61 Subsequent to 31st March, 2023, the Board of Directors of the Company at its meeting held on 26th May, 2023, approved the Scheme of Amalgamation of Skystar Buildcon Private Limited, Advaith Infraprojects Private Limited, Magnate Industries Private Limited (w.e.f 17th May, 2023 Magnate Industries LLP has been converted into private company limited by shares) and Shivay Brokers Private Limited, which are wholly owned subsidiaries, with the Company pursuant to the provisions of Sections 230 to 232 and other applicable sections and provisions of the Companies Act, 2013. The said Scheme of Amalgamation is presently subject to the requisite statutory and regulatory approvals.

62 On 29th March, 2022, the Board of Directors of Rammit Corporate Solutions Private Limited ("Rammit''''), has passed a resolution for approving scheme of merger of Prija Trading Private Limited "Prija'''' with Rammit in accordance with provisions of Section 233 of the Companies Act, 2013 (''the Scheme”). The Scheme has been approved by the relevant authority by an order dated 30th May, 2022 which has been filed with Registrar of Companies on 30th May, 2022. Considering that both Rammit and Prija are wholly owned subsidiary, there is no impact of the Scheme on the standalone financial statements.

---

Mar 31, 2022

Estimation of fair value :

The fair value of investment properties are based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017 except for investment property amounting to '' 930.58 Lakhs (fair value amounting to '' 5,217.58 Lakhs) has been arrived on the basis of recent selling price of related units of the same project.

The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location, demand, restrictive entry to the complex, age of building. This valuation is based on valuations performed by an accredited independent valuer. The main inputs used by them are the prevalent market rate. The fair value measurement is categorised in level 3 fair value hierarchy.

(iii) The Company is in process of transferring the land and building in the name of the Company gross block aggregating '' 366.60 Lakhs (31^st March, 2021: '' 366.60 Lakhs) as a result of amalgamation wherein the title deeds are in the name of transferor and '' 1,456.22 Lakhs (31^st March, 2021: '' 1,456.22 Lakhs) constructed as per the Joint Development Agreement with the land owners, which will be transferred in the name of the Company after formation of condominium (Refer note 54).

(iv) During the year properties valuing of '' 930.58 Lakhs (31^st March, 2021: Nil) has been transferred from inventories to investment properties.

(v) The Company has no restriction on the realisability of its investment property and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Refer note 42 for information on investment properties pledged as security by the Company.

Refer note 39 for information regarding future lease rentals receivable.

Refer note 54 for details of title deeds of immovable properties.

6.1 During the year, the Company has subscribed 242,000 (31^st March 2022: 905,300) preference shares of USD 1 each in its subsidiary Sunteck Lifestyle International Private Limited, Mauritius for an aggregate amount of '' 179.13 Lakhs (31^st March 2022: '' 667.33 Lakhs).

6.2 The Company has given a "non disposal undertaking” to the lenders of Piramal Sunteck Realty Private Limited for equity shares of Piramal Sunteck Realty Private Limited.

6.3 On 2^nd November 2021, a wholly owned subsidiary, Sunteck Lifespace Private Limited ("SLPL”) has been incorporated wherein the Company has subscribed 10,000 equity shares of SLPL at face value of '' 10 per share aggregating '' 1.00 lakh.

6.4 During the current year, pursuant to the approval of its Board, Satguru Corporate Services Private Limited has converted 1,055 Compulsorily Convertible Debentures (CCDs) to Optionally Convertible Debentures (OCDs) and the OCDs have been redeemed at face value for an amount aggregating to '' 9,203.82 Lakhs.

(ii) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity share having a par value of '' 1 each with an entitlement of one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(iii) Shares held by subsidiaries

6,000,000 (31^st March, 2021: 6,000,000) equity shares of '' 1 each fully paid up out of issued, subscribed and paid up share capital are held by subsidiary companies.

(a) Capital reserve on merger

During merger, the excess of net assets taken over the cost of consideration paid is treated as capital reserve on account of merger.

(b) Common control transactions capital reserve

During merger of entities having common control, the excess of net assets taken over the net liabilities is treated as Common control transactions capital reserve. Common control transactions capital reserve is usually not distributed as dividends to shareholders.

(c) Securities premium

Securities premium is used to record the premium on issue of financial securities such as equity shares, preference shares, compulsory convertible debentures, employee stock options plan/ employee stock option scheme. The reserve is utilised in accordance with the provision of the Companies Act, 2013.

(d) Share based payment reserve

Share based payment reserve is used to recognise the fair value of options on the grant date, issued to employees under employee stock option plan.

(e) General reserve

General Reserves are created out of profits and kept aside for general purpose and financial strengthening of the Company, they don''t have any special purpose to fulfill and can be used for any purpose in future.

(f) Retained earnings

Retained earnings represents the cumulative profits of the Company and effects of measurements of defined benefits obligations routed through OCI.

(g) Equity instrument through other comprehensive income

Equity instrument through other comprehensive income represents the investment is revalued at fair value at each year end, with the gain or loss being taken through other comprehensive income.

NOTE 38 CONTINGENT LIABILITIES AND COMMITMENTS		('' in Lakhs)
Particulars	As at 31st March, 2022	As at 31st March, 2021
(i) Claims not acknowledged as debts by the Company	82.32	75.96
(ii) Disputed income tax matters	214.33	336.96

(iii) The Company have received a legal notice from an individual in the earlier years seeking production of certain documents in relation to a legal suit which involves one of the co-venturer. The Company have been unnecessarily made party to the legal suit and is not involved in any manner with respect to the matters alleged in the legal suit. The Company through its legal counsel had responded to the legal notice stating that suit against the Company be dismissed in limine.

(iv) The Honourable Supreme Court, has passed a decision on 28^th February, 2019 in relation to inclusion of certain allowances within the scope of "Basic wages” for the purpose of determining contribution to provident fund under the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952. The Company, based on legal advice, is awaiting further clarifications in this matter in order to reasonably assess the impact on its financial statements, if any. Accordingly, the applicability of the judgement to the Company, with respect to the period and the nature of allowances to be covered, and resultant impact on the past provident fund liability, cannot be reasonably ascertained, at present.

Note: It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect of the above contingent liabilities. Future cash outflows in respect of the above are determinable only on receipt of judgments / decisions pending with various forums / authorities. The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.

Expense arising from share-based payment transactions

During the year, provision relating to share-based payment transactions (Employee Stock Option Plan) has been recognised as employee benefit expense amounting to '' 0.35 Lakhs (31^st March, 2021: expenses provision reversal recognised as other operating revenue of '' 21.00 Lakhs).

Provision relating to share based payment transactions has been reversed amounting to '' 55.67 Lakhs (31^st March, 2021: Share based payment expenses '' 1.54 Lakhs) relating to employees of subsidiary companies is disclosed under other current financial assets.

(b) Compensated absences

The Compensated absences cover the Company''s liability for sick and earned leave.

The liability is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. The expense recognised during the year towards compensated absences is '' 15.84 Lakhs (31^st March, 2021: '' 29.49 Lakhs)

(c) Defined contribution plans Provident fund

The Company also has certain defined contribution plans. The contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. Amount recognised as an expense during the year towards defined contribution plan is '' 79.51 Lakhs (31^st March, 2021: '' 66.29 Lakhs).

(d) Post-employment obligations (Gratuity)

The Company provides gratuity a defined benefit retirement plan covering eligible employees of the Company as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years or more are eligible for gratuity. The gratuity plan is a non-funded plan.

(i) Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participant at the measurement date.

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges are valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments.

- the use of discounted cash flow for fair value at amortised cost.

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance, the Company''s risk management is carried out by a corporate treasury and corporate finance department under policies approved by the board of directors and top management. The Company''s treasury identifies, evaluates and mitigates financial risks in close cooperation with the Company''s operating units. The board provides the guidance for the overall risk management, as well as policies covering specific areas.

This note explains the sources of risks which the entity is exposed to and how the entity manages the risk and the related impact in the financial statement.

(A) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their contractual terms and obligations. To manage this, the Company periodically assess financial reliability of customers, taking into account

the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant changes in the value of the collateral supporting the obligation or in the equity of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a trade receivable failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in statement of profit & loss.

Credit risk is managed at Company level.

For other financial assets, the Company assesses and manages credit risk based on internal control and credit management system. The finance function consists of a separate team who assess and maintain an internal credit management system. Internal credit control and management is performed on a Company basis for each class of financial instruments with different characteristics.

The Company considers whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. It considers available reasonable and supportive forward-looking information.

Macroeconomic information (such as regulatory changes, market interest rate or growth rates) are also considered as part of the internal credit management system.

A default on a financial asset is when the counterparty fails to make payments as per contract. This definition of default is determined by considering the business environment in which entity operates and other macroeconomic factors.

The Company exposure to credit risk is influenced mainly by the individual characteristics of each customer. However credit risk with regards to trade receivable is almost negligible in case of its residential and commercial sale and rental business. The same is due to the fact that in case of its residential and commercial sell business it does not handover possession till entire outstanding is received. Similarly in case of rental business, the Company keep 3 to 12 months rental as deposit from the occupants.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, no additional provision has been considered necessary in respect of trade receivables, other than what is already provided for. Refer note 12.2 for ageing analysis of trade receivables.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding to meet obligations when due. Due to the dynamic nature of the underlying businesses, the Company''s treasury maintains flexibility in funding by maintaining sufficient cash and bank balances available to meet the working capital requirements. Management monitors rolling forecasts of the Company''s liquidity position (comprising the unused cash and bank balances along with liquid investments) on the basis of expected cash flows. This is generally carried out at the Company level in accordance with practice and limits set by the Company. These limits vary to take into account the liquidity of the market in which the Company operates.

(i) Maturities of financial liabilities

The tables below analyse the Companies financial liabilities into relevant maturity groupings based on their contractual maturities for :

All non-derivative financial liabilities, and the amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(i) Price risk

- Exposure

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at "fair value through Other Comprehensive Income."

- Sensitivity

The table below summarizes the impact of increases/ decreases of the BSE index on the Company''s equity and gain/ loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company''s equity instruments moved in line with the index.

(ii) Foreign currency risk (unhedged)

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (''). The risk is measured through a forecast of highly probable foreign currency cash flows. The Company does not cover foreign currency exposure with any derivative instruments. The Company also imports certain materials which are denominated in USD which exposes it to foreign currency risk. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies, including minimising cross currency transactions, using natural hedge to minimise the impact to results of the exchange rate movements. The unhedged exposures are maintained and kept to minimum feasible.

(iii) Cash flow and fair value interest rate risk - Interest rate risk management:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

NOTE 46 CAPITAL MANAGEMENT (a) Risk management

The Company''s objectives when managing capital are to :

1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

2. Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, reduce debt or sell assets.

The Company maintains its capital structure and makes adjustments, if required in light of changes in economic conditions and the requirements of the financial covenants. Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debts divided by total equity and intends to manage optimal gearing ratios. In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define the capital structure requirements.

Proposed dividend

The Board of Directors have recommended a equity dividend of '' 1.50 (31^st March 2021: '' 1.50) per equity share of the face value of '' 1 each to the shareholders other than Promoter/Promoter group and '' 1.50 (31^st March 2021: '' 0.75) per equity share of the face value of '' 1 each to Promoter/Promoter group for the financial year ended 31^st March 2022. The same is subject to the approval of the shareholders of the Company at the Annual General Meeting and therefore not recognised as liability as at the Balance Sheet date

(iv) The significant payment terms:Construction-linked plans (CLP):

Under this plan, the unit holder can book a unit by paying a booking amount. Further, the balance amount is required to be paid as per the construction milestones as mentioned in the agreement.

Subvention scheme:

Under this scheme, the unit holder can book a unit by paying an agreed initial amount and balance amount is funded by the bank/ financial institution (FI) based on the construction linked payment schedule as per the agreed terms between the Company, the unit holder and the bank/ FI. Related finance cost for the agreed period is included in the contract price.

Reason for shortfall: The Company believes that CSR should be in the field which has substantial social impact and which co-relate with the philosophy of the Company to improve the quality of life. During the financial year ended 31^st March 2022, the Company has earmarked projects which are active and ongoing and will make efforts to spend the unspent amount on these ongoing projects. The unspent amount has been already transferred to the dedicated Unspent CSR Account.

II. The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding

Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(iii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

(iv) The Company has complied with the number of layers as prescribed under section 2(87) of the Companies Act, 2013.

(v) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or discharged 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.)

(vi) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(vii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(viii) There are no transactions or outstanding balances with struck off companies as at and for the year ended 31^st March, 2022 and 31^st March, 2021.

(ix) The Company has not entered into any scheme of arrangement which has an accounting impact on the current and previous financial year.

(x) The Company is not required to submit quarterly statements carrying financial information to the banks and financial institution for such nature of facility obtained by the Company for the years ended 31^st March, 2022 and 31^st March, 2021.

NOTE 57 SEGMENT REPORTINGa) Business segment

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Company''s Chairman and Managing director (CMD) is identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators, however, the Company is primarily engaged in only one segment viz., ''Real Estate/Real Estate Development and Related Activities'' and that most of the operations are in India. Hence, the Company does not have any other reportable Segments as per Indian Accounting Standard 108 "Operating Segments”.

b) None of the customers for the years ended 31^st March, 2022 and 31^st March, 2021 constituted 10% or more of the total revenue of the Company.

NOTE 58 On 18^th February, 2022, the Company through its wholly owned step down subsidiary, Industele Property Private Limited has acquired 99% of the equity stake in Rammit Corporate Solutions Private Limited (RCSPL) by conversion of 100 Optionally Convertible Debentures into 1,000,000 equity shares of face value of '' 10 each. As a result of such conversion, RCSPL and Prija Trading Private Limited, wholly owned subsidiary of RCSPL have become step down subsidiaries of the Company.

NOTE 59 Other non-current financial assets as at 31^st March 2022 include '' 1,402.73 lakhs (31^st March 2021: '' 1,402.73 lakhs), representing amount receivable from a partnership firm (''Firm'') in which the Company was associated as a partner till 6^th October 2020, which is presently under dispute with respect to alleged illegal sale of the firm''s assets by the other partner. The Company had received arbitration award dated 4^th May 2018 in its favour in respect of this matter which has been further challenged by the other partner in Bombay High Court, which has neither been admitted as yet nor any stay granted against the award. Basis the status of the case, favourable arbitration award and legal opinion, Management is confident of recovering the aforesaid dues and therefore, no provision has been considered necessary at this stage. Further, considering the dispute, the Company has not accounted for its share of profits or losses for the period from 2015 till 6^th October 2020, as the financial statements from the partnership firm are not available. Since there were no operations in the partnership firm since 2015, Management does not expect the impact of such share of profits or losses, not accounted, to be material.

NOTE 60 As the Company is engaged in the business of providing infrastructure facilities, the provisions (including disclosure requirements) of Section 186 of the Companies Act, 2013 with respect to loans made, guarantee given or security provided, are not applicable to the Company.

NOTE 61 Excepti onal item for the year ended 31^st March, 2021 represents balance written off in respect of trade receivables amounting to '' 603.50 Lakhs as considered no longer recoverable.

NOTE 62 IMPACT OF COVID 19

The Company has used the principles of prudence in applying judgements, estimates and assumptions based on the current assessment and do not foresee any significant impact of pandemic on the Company''s financials for the year ended 31^st March, 2022. However, the Management is continuously monitoring the current COVID-19 developments and possible effects that may result from the current pandemic on it''s financial conditions, liquidity, operations and actively working to minimise the impact of this unprecedented situation.

NOTE 63 Non-current investments as at 31^st March 2022 include '' 25,976.02 lakhs (31^st March 2021: '' 25,796.90 lakhs) representing investment in its wholly owned subsidiary, Sunteck Lifestyle International Private Limited (SLIPL), which had further acquired 50% share in joint venture company, GGICO Sunteck Limited (GGICO), through its wholly owned subsidiary, Sunteck Lifestyle Limited (SLL), for development of real-estate project in Dubai. Further, the Company''s other non-current financial assets include receivable from SLL amounting to '' 775.09 lakhs (31^st March 2021: '' 751.74 lakhs). SLL has incurred losses during initial years and net-worth has been partially eroded. Development of the project undertaken by GGICO has been delayed on account of certain disputes with the other joint venture partner. SLL has obtained favourable order from the court of Dubai International Finance Centre against the claim made by other joint venture partner for termination of joint venture. Further, SLL has initiated arbitration before London Court of International Arbitration (LCIA) against the other partner, alleging that other partner has not obtained necessary regulatory and statutory approvals for commencing the construction activity as specified in the Joint Venture Agreement (JVA). During the previous year, the other JV partner has also initiated arbitration before LCIA against SLL and the Company alleging non-compliance of certain conditions of the JVA and seeking termination of the joint venture. During the current year, partial award has been given by LCIA (in arbitration initiated by SLL) confirming that SLL was not in breach of any joint venture condition, the termination of the joint venture is held to be invalid and also awarded reimbursement of certain payments made by SLL. Basis legal opinion, the management is of the view that such claims are not tenable against the Company and SLL. Further, based on estimated future business results once the project resumes and considering the contractual tenability, present status of negotiation / discussion / arbitration / litigations, Management believes that the realisable amount of investment in subsidiaries is higher than the carrying value of the non-current investments and other non-current financial assets due to which these are considered as good and recoverable as at 31^st March 2022.

NOTE 64 On 30^th March, 2022, a wholly owned subsidiary, Sunteck Infracon Private Limited ("SIPL”) was incorporated wherein the Company has subscribed 10,000 equity shares of SIPL at face value of '' 10 per share aggregating '' 1 Lakh on 23^rd May, 2022 at par.

NOTE 65 On 26^th April, 2022, a wholly owned subsidiary, Sunteck Realtors Private Limited ("SRPL”) has been incorporated wherein the Company has subscribed 10,000 equity shares of SRPL at face value of '' 10 per share aggregating '' 1 Lakh at par.

NOTE 66 On 22^nd March 2022, the Board of Directors of Industele Property Private Limited ("Industele'''') has passed a resolution for withdrawal of Scheme of merger of Rammit Corporate Solutions Private Limited (''''Rammit'''') and Prija Trading Private Limited ("Prija'''') with Industele pursuant to the provisions of Section 230 to 232 of the Companies Act, 2013 which was earlier approved by the Board of Directors.

Further on 29^th March 2022, the Board of Directors of Rammit, has passed a resolution for approving scheme of merger of Prija with Rammit in accordance with provisions of Section 233 of the Companies Act, 2013 ("the Scheme”). The Scheme has been approved by the relevant authority by an order dated 30^th May 2022 which has been filed with Registrar of Companies on 30^th May 2022. Considering that both Rammit and Prija are wholly owned subsidiary, there is no impact of the Scheme on the standalone financial statements.

NOTE 67 The figures for the previous periods have been regrouped/ rearranged wherever necessary to conform to the current period''s classification in order to comply with the requirements of the amended schedule III to the Companies Act, 2013 effective 1^st April 2021.

This is the summary of significant accounting policies and other explanatory information referred to in our audit report

of even date.

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Mar 31, 2021

(i) Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participant at the measurement date. This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges are valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments.

- the use of discounted cash flow for fair value at amortised cost.

NOTE 47 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance, the Company''s risk management is carried out by a corporate treasury and corporate finance department under policies approved by the board of directors and top management. The Company''s treasury identifies, evaluates and mitigates financial risks in close cooperation with the Company''s operating units. The board provides the guidance for the overall risk management, as well as policies covering specific areas.

This note explains the sources of risks which the entity is exposed to and how the entity manages the risk and the related impact in the financial statement.

(A) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their contractual terms and obligations. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant changes in the value of the collateral supporting the obligation or in the equity of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a trade receivable failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in statement of profit & loss.

Credit risk is managed at Company level.

For other financial assets, the Company assesses and manages credit risk based on internal control and credit management system. The finance function consists of a separate team who assess and maintain an internal credit management system. Internal credit control and management is performed on a Company basis for each class of financial instruments with different characteristics.

The Company considers whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. It considers available reasonable and supportive forward-looking information. Macroeconomic information (such as regulatory changes, market interest rate or growth rates) are also considered as part of the internal credit management system.

A default on a financial asset is when the counterparty fails to make payments as per contract. This definition of default is determined by considering the business environment in which entity operates and other macroeconomic factors.

The Company exposure to credit risk is influenced mainly by the individual characteristics of each customer. However credit risk with regards to trade receivable is almost negligible in case of its residential and commercial sale and rental business. The same is due to the fact that in case of its residential and commercial sell business it does not handover possession till entire outstanding is received. Similarly in case of rental business, the group keep 3 to 12 months rental as deposit from the occupants.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, no additional provision has been considered necessary in respect of trade receivables, other than what is already provided for.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding to meet obligations when due. Due to the dynamic nature of the underlying businesses, the Company''s treasury maintains flexibility in funding by maintaining sufficient cash and bank balances available to meet the working capital requirements. Management monitors rolling forecasts of the Company''s liquidity position (comprising the unused cash and bank balances along with liquid investments) on the basis of expected cash flows. This is generally carried out at the Company level in accordance with practice and limits set by the Company. These limits vary to take into account the liquidity of the market in which the Company operates.

(i) Maturities of financial liabilities

The tables below analyse the Companies financial liabilities into relevant maturity groupings based on their contractual maturities for :

All non-derivative financial liabilities, and the amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk (i) Price risk

- Exposure

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at "fair value through Other Comprehensive Income."

- Sensitivity

The table below summarises the impact of increases/ decreases of the BSE index on the Company''s equity and gain/ loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company''s equity instruments moved in line with the index.

(iv) The significant payment terms:Construction-linked plans (CLP):

Under this plan, the unit holder can book a unit by paying a booking amount. Further, the balance amount is required to be paid as per the construction milestones as mentioned in the agreement.

Subvention scheme:

Under this scheme, the unit holder can book a unit by paying an agreed initial amount and balance amount is funded by the bank/ financial institution (FI) based on the construction linked payment schedule as per the agreed terms between the Company, the unit holder and the bank/ FI. Related finance cost for the agreed period is included in the contract price.

(v) Transaction price remaining performance obligation

The aggregate amount of the transaction price allocated to the unsatisfied performance obligations (including completely unsatisfied obligations in case of pre-sales) as at the year end is '' 60,042.02 lakhs (31st March, 2020 : '' 70,865.45 lakhs). Out of this, the Company expects, based on current projections, to recognize revenue in the following time bands:

Disclosure of payable to suppliers as defined under the "Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Company regarding the status of registration of such suppliers under the said Act, as per the intimation received from them, on requests made by the Company.

NOTE 54 During the current year, the Company has changed the method of revenue recognition from percentage of completion method to completed contract method in respect of certain real-estate projects pursuant to re-assessment of certain criteria to recognise revenue over the period of time towards satisfaction of performance obligation, re-assessing the contract for accounting under principal versus agent consideration, accounting for joint development arrangements and classification of unbilled revenue (contract assets) as specified in Ind-AS 115 - ''Revenue from Contract with Customers''. Management believes that considering the contractual terms, in respect of certain projects, an enforceable rights to payment does not arise until the development of the project is completed and therefore it would be more accurate on a comparative basis to recognise the revenue on transferring of control of property promised to the customers on completion of the projects. Further, pursuant to a clarification issued by International Accounting Standards Board (''IASB'') in relation to borrowing costs on real-estate projects where revenue is recognised on percentage of completion basis, the Company has excluded such borrowing costs relating to the post-launch period from its estimates of the balance cost to completion, and the same are now recognised as finance cost in the Statement of Profit and Loss. Further the Company has classified term loans as current borrowings and certain investment basis the operating cycle of the project, whereas basis the guidance available in Division II - Ind AS Schedule III to the Companies Act, 2013, the term loans have been reclassified to long term borrowings and current portion of long-term borrowing under other financial liabilities and current investments has been reclassified as non-current investments. Further, the Company re-evaluated various matters under litigation in accordance with Ind-AS- 37, Provisions, Contingent Liabilities and Contingent Assets and accounted the liabilities.

Pursuant to the impact of aforesaid changes, the Company has restated the financial statements for the comparative periods, in accordance with the requirements of Ind-AS 8 - ''Accounting Policies, Changes in Accounting Estimates and Errors''. Retained earnings (other equity) as at 1st April, 2019 within the statement of changes in equity has also been restated to adjust the impact of such adjustments relating to prior periods. The impacts of aforesaid restatements are as follows:

a) Business segment

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Company''s Chairman and Managing director (CMD) is identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators, however, the Company is primarily engaged in only one segment viz., ''Real Estate/Real Estate Development and Related Activities'' and that most of the operations are in India. Hence, the Company does not have any other reportable Segments as per Indian Accounting Standard 108 "Operating Segments”.

b) Entity wide discosures

None of the customers for the years ended 31st March, 2021 and 31st March, 2020 constituted 10% or more of the total revenue of the Company.

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The Hon''ble National Company Law Tribunal (NCLT), vide its order dated 8th August, 2019, approved the Scheme of Amalgamation/Arrangement (the "Scheme”) for the merger of wholly owned subsidiaries, Amenity Software Private Limited, Magenta Computer Software Private Limited and Sunteck Fashions & Lifestyles Private Limited (hereinafter collectively referred to as the "Transferor companies”) with the Company (hereinafter referred to as the "Transferee Company”). As per the said scheme, the appointed date is 1st April, 2018. The Scheme became effective upon filing of NCLT order with the Registrar of Companies.

Pursuant to the said Scheme, all assets and liabilities of Transferor companies were transferred to and vested in the Transferee Company from the appointed date, however, in this financial statements, amalgamation has been accounted for, using the pooling of interest method, effective from the beginning of the preceding period, i.e. 1st April, 2018, as specified under the Appendix C of the Ind AS 103 - "Business Combinations". The assets and liabilities of the Transferor companies are recorded at their carrying amounts and balance of post-acquisition retained earning has been transferred to general reserves. Investment of the Transferee Company in the equity shares of Transferor companies has been cancelled. The difference between the amount of investments cancelled by the Transferee Company and aggregate amount of share capital and pre-acquisition reserves of the Transferor companies has been recorded as Common control transactions capital reserve. Formal transfer, in statutory records, of immovable property in the name of the Company will be done in the due course.

NOTE 57 Other non-current financial assets as at 31st March, 2021 include '' 1,402.73 lakhs (31st March, 2020 : Current loans '' 686.16 lakhs, Non current investment '' 707.54 lakhs, Other current financial assets: '' 3.72 lakhs; 01st April, 2019: Current loans '' 468.29 lakhs, Non current investment '' 707.54 lakhs, Other current financial assets: '' 3.72 lakhs), representing amount receivable from a partnership firm (''Firm'') in which the Company was associated as a partner till 6th October 2020 which is presently under dispute with respect to alleged illegal sale of the firm''s assets by the other partner. The Company had received arbitration award dated 4th May, 2018 in its favour in respect of this matter which has been further challenged by the other partner in Bombay High Court, which has neither been admitted as yet nor any stay granted against the award. Basis the status of the case, favourable arbitration award and legal opinion, Management is confident of recovering the aforesaid dues and therefore, no provision has been considered necessary at this stage. Further, considering the dispute, the Company has not accounted for its share of profits or losses for the period from 2015 till 6th October, 2020 as the financial statements from the partnership firm are not available. Since there are no operations in the partnership firm since 2015, Management does not expect the impact of such share of profits or losses, not accounted, to be material.

NOTE 58 As the Company is engaged in the business of providing infrastructure facilities, the provisions (including disclosure requirements) of Section 186 of the Companies Act, 2013 with respect to loans made, guarantee given or security provided, are not applicable to the Company.

NOTE 59 Exceptional item for the year ended 31st March, 2021 represents balance written off in respect of trade receivables amounting to '' 603.50 lakhs (31st March, 2020 - Nil) as considered no longer recoverable.

NOTE 60 IMPACT OF COVID 19

The outbreak of COVID-19 pandemic has disrupted regular business operations of the Company due to the lock down restrictions and other emergency measures imposed by the Government from time to time. Although the business operations have recommenced post relaxation of lockdowns, the Company remains watchful of the potential impact pursuant to the second wave of the pandemic on resuming normal business operations on a continuous basis. The Company has also adopted measures to curb the spread of infection in order to protect the health of its employees and ensures business continuity with minimal disruption. The management has taken into account the possible impacts of known events, upto the date of the approval of the financial statement, arising from COVID-19 pandemic on the carrying value of the assets and liabilities as at 31st March, 2021. However, there exists significant estimation uncertainty in relation to the future impact of COVID-19 pandemic on the Company and, accordingly, the actual impact in the future may be different from those presently estimated. The Company will continue to monitor any material change to the future economic conditions and consequential impact on the standalone financial statement.

NOTE 61 Non-current investments as at 31st March, 2021 include '' 25,796.90 lakhs representing investment in its wholly owned subsidiary, Sunteck Lifestyle International Private Limited (SLIPL), which had further acquired 50% share in joint venture Company, GGICO Sunteck Limited (GGICO), through its wholly owned subsidiary, Sunteck Lifestyle Limited (SLL), for development of real-estate project in Dubai. Further, the Company''s other non-current financial assets include receivable from SLL amounting to ''751.74 lakhs. SLL has incurred losses during initial years and net-worth has been partially eroded. Development of the project undertaken by GGICO has been delayed on account of certain disputes with the other joint venture partner. SLL has obtained favourable order from the court of Dubai International Finance Centre against the claim made by other joint venture partner for termination of joint venture. Further, SLL has initiated arbitration before London Court of International Arbitration (LCIA) during previous period against the other partner, alleging that other partner has not obtained necessary regulatory and statutory approvals for commencing the construction activity as specified in the Joint Venture Agreement (JVA). During the current year, the other JV partner has also initiated arbitration before LCIA against SLL and the Company alleging non-compliance of certain conditions of the JVA and seeking termination of the joint venture. Both the arbitration have been admitted and arbitrator has also been appointed and the arbitration proceedings have also commenced. Basis legal opinion, the management is of the view that such claims are not tenable against the Company and SLL. Further, based on estimated future business results once the project resumes and considering the contractual tenability, present status of negotiation / discussion / arbitration / litigations which includes claims due from the joint venture partner if the joint venture is dissolved, Management believes that the realisable amount of investment in subsidiaries is higher than the carrying value of the non-current investments and other non-current financial assets due to which these are considered as good and recoverable as at 31st March, 2021.

NOTE 62 Figures pertaining to previous year have been regrouped/ reclassified wherever found necessary to conform to current year''s presentation other than restatement impacts as stated in note 54 above.

This is the summary of significant accounting policies and other explanatory information referred to in our audit report of even date.

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Mar 31, 2018

Background

Sunteck Realty Limited (‘The Company’) is primarily engaged in the business of real estate/ real estate development and incidental services

1. Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the company’s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted clue to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

Critical estimates and judgements

The areas involving critical estimates or judgements are:

- Recognition of revenue and related real estate development cost

- Estimated Fairvalueof financial instruments

- Estimated credit loss of trade receivables

Estimation of fair value :

The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location, demand, restrictive entry to the complex, age of building.

This valuation is based on valuations performed by an accredited independent valuer. The main inputs used by them are the prevalent market rate. The fair value measurement is categorised in level 3 fair value hierarchy.

Refer note no. 41 for information on investment property pledged as security by the company.

Refer note no. 38 for information regarding future lease rentals receivable.

Nature & purpose of other equity and reserves :

(a) Capital reserve :

Capital reserve is created out of capital profits and are usually not distributed as dividends to shareholders.

(b) Securities premium account :

Securities premium reserve is used to record the premium on issue of financial securities such as equity shares, preference shares, compulsory convertible debentures. The reserve is utilised in accordance with the provision of the Act.

(c) General reserve:

General Reserves are created out of profits and kept aside for general purpose and financial strengthening of the company, they don’t have any special purpose to fulfill and can be used for any purpose in future.

(d) Share based payment reserve:

Share based payment reserve is used to recognise the fair value of options on the grant date, issued to employees under value employee stock option plan.

(e) Debenture redemption reserve:

The Company creates a debenture redemption reserve out of the profits under Companies Act, 2013 which is available for distribution to share holders for the purpose of redemption of debentures.

(f) Share application money pending allotment

Share application money received towards employee stock option plan 2013.

2 Income tax expense

This note provides an analysis of the Company’s income tax expense, shows amounts that are recognised directly in equity and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the Company’s tax positions.

Note : The Company’s pending litigations comprise mainly claims against the Company, property disputes, proceedings pending with tax and other authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

3 Leases

(a) Initial direct cost such as legal cost, brokerage cost etc. are charged immediately to statement of profit and loss.

The total future minimum lease rentals receivable for non - cancellable operating leases at balance sheet date is as under :

4 Share-based payments

Employee stock option plan

The establishment of the Sunteck Realty Limited “Employee Stock Option Plan (ESOP 2013)” and “Employee Stock Option Scheme (ESOS 2017)” was approved by shareholders at the annual general meeting held on 28th March, 2013 and 26th September 2017 respectively. The ESOP 2013 and ESOS 2017 are designed to provide incentives to eligible directors and employees of the Company and its subsidiaries. These are equity settled share based payments. The details of which are given here under :

When exercisable, each option is convertible into one equity share. Options are granted without any consideration and carry no dividend or voting rights.

Set out below is a summary of options granted under each plan:

The fair value at grant date is determined by a valuer using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The fair value of each option is estimated on the date of grant based on the following assumptions :

*The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information.

Expense arising from share-based payment transactions

Expenses arising from share-based payment transactions (Employee Stock Option Plan) recognised in statement of profit and loss as part of employee benefit expense Rs. 65.80 lakhs (Previous Year Rs. 11.19 lakhs).

(i) Compensated absences

The Compensated absences cover the Company’s liability for sick and earned leave.

Out of total provision, the amount of the provision of Rs. 2.20 lakhs (Previous Year Rs. 2.21 lakhs) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

(ii) Post-employment obligations Gratuity

The Company provides for gratuity for the employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity.

(iii) Defined contributions plans

The Company also has certain defined contribution plans . Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. Amount recognised as an expense during the year towards defined contribution plan is Rs. 31.71 lakhs (Previous Year Rs. 26.35 lakhs).

Balance sheet amounts - Gratuity

The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year are as follows:

5 Related Party Disclosures as per Ind As 24 Name of entity

1 Relationships :

(i) Name of related parties where control exists irrespective of whether transaction has occurred or not

a Subsidiaries

Advaith Infraprojects Private Limited Amenity Software Private Limited

Celina Buildcon and Infra Private Limited (for the period from 20th February, 2017 to 27th March, 2017)

Clarissa Facility Management LLP

Eleanor Lifespaces Private Limited (upto 17th June, 2016)

Denise Realties Private Limited (upto 12th December, 2016)

Magenta Computer Software Private Limited

Mithra Buildcon LLP

Sahrish Construction Private Limited Satguru Corporate Services Private Limited.

Satguru Infocorp Services Private Limited Skystar Buildcon Private Limited Starlight Systems (I) LLP Starlight Systems Private Limited Starteck Lifestyles Private Limited Sunteck Fashions & Lifestyles Private Limited Sunteck Infraprojects Private Limited Sunteck Lifestyle International Private Limited Sunteck Lifestyle Management DMCC Sunteck Lifestyles Limited Sunteck Property Holding Private Limited Sunteck Real Estates Private Limited Sunteck Realty Holdings Private Limited

b Associates:

Topzone Mercantile Company LLP (upto 1st October, 2016)

c Joint Venture

Assable Buildcon LLP (upto 25th March, 2017)

GGICO Sunteck Limited

Kanaka & Associates (Partnership Firm) (refer note no. 54)

Nariman Infrastructure LLP

Pathway Buildcon LLP (upto 25th March, 2017)

Piramal Sunteck Realty Private Limited Uniworth Realty LLP

(ii) List of other related parties with whom transaction has been entered into in the ordinary course of business a Key managerial personnel

Mr. Kamal Khetan - Chairman & Managing Director

Mr. AtulPoopal -ExecutiveDirector

Mrs. Rachana Hingarajia - Company Secretary

Mr. Sumesh Mishra - Chief Operating Officer

Mr. Jitendra Mehta - Chief Financial Officer (w.e.f. 16th August, 2017)

b Entities over which Key Managerial Personnel with his relative having significant influence:

Eskay Infrastructure Development Private Limited Glint Infraprojects Private Limited Astha Trust

Nivedita Mercantile and Financing Limited SW Capital Private Limited SW Commodities Private Limited Starteck Infraprojects Private Limited SW Investment Limited

Assable Buildcon LLP (w.e.f. 26th March, 2017)

Pathway Buildcon LLP (w.e.f. 26th March, 2017)

Notes:

(i) No balances in respect of the related parties has been provided for/written off / written back,

(ii) The provisions (including disclosure requirement) of Section 186 of the Companies Act, 2013 with respect to loans made, guarantee given or security provided, are not applicable to the Company, since the Company is engaged in the business of providing infrastructure facilities.

(iii) Related party relationship is as identified by the management and relied upon by the auditors.

(iv) # less than Rs. 500

Note :

1 None of the above mentioned parties hold shares of the Company, except Starlight Systems Private Limited and Sat-guru Infocorp Services Private Limited which holds 3,000,000 (adjusted for share sub-division as stated in note no. 19) shares each (previous year 1,500,000 shares) in the Company.

2 For investments refer note no. 6 and 10.

6 Fair value measurements

(i) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges are valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the use of discounted cash flow for fair value at amortised cost

The Company’s activities expose it to business risk, interest rate risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance, the Company’s risk management is carried out by a corporate treasury and corporate finance department under policies approved by the board of directors and top management. Company’s treasury identifies, evaluates and mitigates financial risks in close cooperation with the Company’s operating units. The board provides guidance for overall risk management, as well as policies covering specific areas.

(A) Credit Risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations,

iv) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.

Credit risk is managed at segment as well as Company level. For banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the Company assesses and manages credit risk based on internal control and credit management system. The finance function consists of a separate team who assess and maintain an internal credit management system. Internal credit control and management is performed on a Company basis for each class of financial instruments with different characteristics.

The Company considers whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. It considers available reasonable and supportive forward-looking information.

Macroeconomic information (such as regulatory changes, market interest rate or growth rates) are also considered as part of the internal credit management system.

A default on a financial asset is when the counterparty fails to make payments as per contract. This definition of default is determined by considering the business environment in which entity operates and other macroeconomic factors.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding to meet obligations when due. Due to the dynamic nature of the underlying businesses, Company’s treasury maintains flexibility in funding by maintaining sufficient cash and bank balances available to meet the working capital requirements. Management monitors rolling forecasts of the Company’s liquidity position (comprising the unused cash and bank balances along with liquid investments) on the basis of expected cash flows. This is generally carried out at Company level in accordance with practice and limits set by the Company. These limits vary to take into account the liquidity of the market in which the Company operates.

(i) Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for: all non-derivative financial liabilities, and the amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Price Risk

- Exposure

The Company’s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at “fair value through other comprehensive income”.

-Sensitivity

The table below summarizes the impact of increases/decreases of the BSE index on the Company’s equity and gain/loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company’s equity instruments moved in line with the index.

(ii) Foreign Currency Risk

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (Rs.). The risk is measured through a forecast of highly probable foreign currency cash flows. The Company does not cover foreign currency exposure with any derivative instruments. The Company also imports certain materials which are denominated in USD which exposes it to foreign currency risk

(iii) Cash flow and fair value interest rate risk

- Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the companies long-term debt obligations with floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

- Interest rate risk exposure

The exposure of the Company’s borrowings to interest rate changes at the end of the reporting period are as follows:

* Sensitivity is calculated based on the assumption that amount outstanding as at reporting dates were utilised for the whole financial year.

7 Capital management

(a) Risk management

The Company’s objectives when managing capital are to :

1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

2. Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, reduce debt or sell assets.

8 Details regarding project-in-progress

The Completion of projects and Management estimation of future cost to be incurred on projects in progress for calculating their net realizable value have been relied upon by the auditors, these being matters of technical nature and owing to the future uncertainties.

9 Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Company’s Chief operating officer (COO) and Chairman and Managing director (CMD) are identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators, however the Company is primarily engaged in only one segment viz., ‘Real Estate/Real Estate Development and Related Activities’ and that most of the operations are in India. Hence the Company does not have any reportable Segments as per Indian Accounting Standard 108 “Operating Segments”.

10 The Company’s normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and other business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

11 The accounts of certain trade receivables, trade payables, loans and advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However, there is no indication of dispute on these accounts, other than those mentioned in the financial statements. The management does not expect any material difference affecting the current year’s financial statements on such reconciliation/adjustments.

12 The Company is a partner in a partnership firm, Kanaka & Associates, in which the Company has total exposure comprising of capital invested, loans given and other receivables aggregating to Rs. 949.23 lakhs (Previous Year Rs. 902.05 Lakhs). Since, there is some dispute with the other partner, the financial statements of the firm are not available and therefore, the Company has not accounted for its share of profit or loss for the year from the said firm. The management is hopeful of recovering/ realising the aforesaid exposure in due course of time, as the Company has received the favourable arbitration award and hence, no provision is considered necessary at this stage.

13 The Company has overdue trade receivables of Rs. 1,203.50 Lakhs in respect of which necessary steps for its recovery has been taken including filing of legal case. The management is confident of recovering the said due and therefore no provision, in their opinion, is considered necessary at this stage.

14 Event occurring after balance sheet date:

The Board of Directors has recommended equity dividend of Rs. 1.50 per share (Previous year Rs. 3.00) for the financial year 2017-18. (refer note no. 45).

15 Ind AS 115 Revenue from Contracts with Customer (the new revenue recognition standard) has been notified by Ministry of Corporate Affairs (MCA) on March 28, 2018 and will be effective from April 1, 2018. Ind AS 115 will supersede all current revenue recognition requirements under Ind AS, including the “Guidance Note on Accounting for Real Estate Transactions”. Ind AS 115 provides guidance on how the entity shall recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is currently assessing the impact of application of Ind AS 115 on Company’s financial statements.

16 Figures pertaining to previous year have been regrouped / reclassified wherever found necessary to conform to current year’s presentation.

---

Mar 31, 2017

1. CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgment in applying the company''s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted clue to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

Critical estimates and judgments

The areas involving critical estimates or judgments are:

- Recognition of revenue and related real estate development cost

- Estimated Fair value of financial instruments

- Estimated credit loss of trade receivables

Estimation of fair value :

The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location, demand, restrictive entry to the complex, age of building.

This valuation is based on valuations performed by an accredited independent valuer. The main inputs used by them are the Prevalent market rate. The fair value measurement is categorized in level 3 fair value hierarchy.

(iii) Refer Note 17 for information on Investment property pledged as security by the Company.

(iv) Refer Note 32 for information regarding future lease rentals receivable.

Nature & Purpose of other Equity and Reserves :

(a) Capital Reserve :

Capital reserve is created out of capital profits and are usually not distributed as dividends to shareholders.

(b) Securities Premium Account :

Securities Premium Reserve is used to record the premium on issue of financial securities such as Equity shares, Preference Shares, Compulsory Convertible Debentures. The reserve is utilized in accordance with the provision of the Act.

(c) General Reserve:

General Reserves are created out of profits and kept aside for general purpose and financial strengthening of the company, it doesn''t have any special purpose to fulfill and can be used for any purpose in future.

(d) Share Based Payment Reserve:

Share based payment reserve is used to recognize the fair value of options on the grant date, issued to employees under value Ind AS employee stock option plan.

(e) Debenture Redemption Reserve:

The Company creates a debenture redemption reserve out of the profits which is available for distribution to share holders for the purpose of redemption of debentures.

(f) Share Application Money Pending Allotment

Share application money received towards employee stock option plan 2013.

Note: The company''s pending litigations comprise mainly claims against the company, property disputes, proceedings pending with Tax and other Authorities. The company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

32 Leases

(a) The Company has leased various offices under "non-cancellable operating leases”.

(b) Initial direct cost such as legal cost, brokerage cost etc. are charged immediately to Statement of Profit and Loss.

(i) Leave obligations

The lease obligations cover the Company''s liability for sick and earned leave.

The amount of the provision of Rs. 2.21 lakhs (31st March, 2016 Rs. 0.59 lakhs 1st April, 2015 Rs. 0.06 lakhs) is presented as current, since the group does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the group does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

(ii) Post-employment obligations Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

(iii) Defined contributions plans

The Company also has certain defined contribution plans . Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. Amount recognized as an expense during the period towards defined contribution plan is Rs. 26.35 lakhs (31st March, 2016 Rs. 20.02 lakhs).

Additional Details

Methodology Adopted for Assured Life Mortality (ALM) - Projected Unit Credit Method

Sensitivity analysis is an analysis which will give the movement in liability if the assumptions were not proved to be Usefulness and Methodology adopted for Sensitivity true on different count.

^analysis This only signifies the change in the liability if the difference between assumed and the actual is not following the parameters of the sensitivity analysis

Stress Testing of Assets - Not Applicable - as benefit is unfunded

Investment Strategy - Not Applicable - as benefit is unfunded

Comment on Quality of Assets - Not Applicable - as benefit is unfunded

Management Perspective of Future Contributions - Not Applicable - as benefit is unfunded

2. Related Party Disclosures as per Ind As 24 Name of entity

1 Relationships : a Subsidiaries

Starlight Systems Private Limited Satguru Infocorp Services Private Limited Amenity Software Private Limited Magenta Computer Software Private Limited Skystar Buildcon Private Limited Sunteck Property Holdings Private Limited Sahrish Constructions Private Limited Sunteck Lifestyles International Private Limited Sunteck Lifestyle Limited Sunteck Lifestyle Management JLT Sunteck Realty Holdings Private Limited Sunteck Fashions & Lifestyles Private Limited Advaith Infraprojects Private Limited Satguru Corporate Services Private Limited.

Starteck Lifestyle Private Limited Starlight Systems (I) LLP Mithra Buildcon LLP

Celina Buildcon and Infra Private Limited (for the period from 20th February, 2017 to 27th March, 2017) Clarissa Facility Management LLP (From 22 nd Novemenber, 2016)

Sunteck Real Estates Private Limited Sunteck Infraprojects Private Limited Denise Realties Private Limited Eleanor Lifespaces Private Limited

b Joint Venture

GGICO Sunteck Limited

Piramal Sunteck Realty Private Limited

Uniworth Realty LLP

Nariman Infrastructure LLP

Pathway Buildcon LLP

Assable Buildcon LLP

Kanaka & Associates (Partnership Firm) (refer note no. 45)

c Associates:

Topzone Mercantile Company LLP (Upto 1st October, 2016)

d Entities over which Key Managerial Personnel with his relative having significant influence:

Nivedita Mercantile and Financing Limited SW Capital Private Limited SW Commodities Private Limited SW Investment Limited

e Key management personnel

Mr. Kamal Khetan - Chairman & Managing Director

Mr. Jignesh Sanghavi - Executive Director (Retired on 29th September, 2015)

Mr. Atul Poopal - Executive Director (From 29th September, 2015)

Mrs. Rachana Hingarajia - Company Secretary

Mr. Sumesh Mishra - Chief Operating Officer (From 29th May, 2015)

3. Fair value measurements (i) Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges are valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the use of discounted cash flow for fair value at amortized cost

The carrying amounts of trade receivables, trade payables, other payables, cash and cash equivalents and other bank balances are considered to be the same as their fair values, due to their short-term nature. The fair values for security deposits is calculated based on cash flows discounted using a current lending rate. This is classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

4. Financial risk management

The Company''s activities expose it to business risk, interest rate risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance, the Company''s risk management is carried out by a corporate treasury and corporate finance department under policies approved by the board of directors and top management. Company''s treasury identifies, evaluates and mitigates financial risks in close cooperation with the Company''s operating units. The board provides guidance for overall risk management, as well as policies covering specific areas.

(A) Credit Risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive looking forward information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding to meet obligations when due. Due to the dynamic nature of the underlying businesses, Company''s treasury maintains flexibility in funding by maintaining sufficient cash and bank balances available to meet the working capital requirements. Management monitors rolling forecasts of the group''s liquidity position (comprising the unused cash and bank balances along with liquid investments) on the basis of expected cash flows. This is generally carried out at Company level in accordance with practice and limits set by the group. These limits vary to take into account the liquidity of the market in which the Company operates.

(i) Maturities of financial liabilities

The tables below analyse the group''s financial liabilities into relevant maturity groupings based on their contractual maturities for: all non-derivative financial liabilities, and the amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

Specified Bank Notes is defined as Bank Notes of denominations of the existing series of the value of five hundred rupees and one thousand rupees.

The disclosures with respects to ''Permitted Receipts'', ''Permitted Payments'', ''Amount Deposited in Banks'' and ''Closing Cash in Hand as on 30th December, 2016 is understood to be applicable in case of SBNs only.

5. First-time adoption of IND AS Transition to IND AS

These are the Company''s first consolidated financial statements prepared in accordance with IND AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31st March, 2017, the comparative information presented in these financial statements for the year ended 31st March, 2016 and in the preparation of an opening IND AS balance sheet at 1st April, 2015 (the Company''s date of transition). In preparing its opening IND AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Company''s Act 2013 (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to IND AS has affected the Company''s financial position, financial performance set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable IND AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to IND AS.

A.1 IND AS optional exemptions A.1.1 Deemed cost

IND AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to IND AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by IND AS 38 Intangible Assets and investment property covered by IND AS 40 Investment Properties.

Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.

A.1.2 Investments in subsidiaries, joint ventures and associates

"IND AS 101 provides an exemption that a first-time adopter which account for its investments in subsidiaries, joint ventures and associates in accordance with IND AS 27, ''Separate Financial Statements'' shall measure those investments at one of the following amounts in its separate opening IND AS Balance Sheet:

(a) cost determined in accordance with IND AS 27: or

(b) deemed cost. The deemed cost of such an investment shall be its:

(i) fair value at the entity''s date of transition to IND ASs in its separate financial statements; or

(ii) previous GAAP carrying amount at that date.

Accordingly, the company has elected to apply this exemption and investment( i.e. in Equity Instruments) in subsidiaries, joint ventures and associates are carried at its previous GAAP carrying amount.

A.2 IND AS mandatory exceptions

A.2.1 Estimates

An entity estimates in accordance with IND ASs at the date of transition to IND AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

IND AS estimates as at 1st April, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with IND AS at the date of transition as these were not required under previous GAAP:

1. Investment in equity instruments carried at FVPL or FVOCI;

2. Investment in debt instruments carried at FVPL

A.2.2 Classification and measurement of financial assets

IND AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to IND AS.

B. Reconciliations between previous GAAP and IND AS

IND AS 101 requires an entity to reconcile equity, total comprehensive income for prior periods. The following tables represent the reconciliations from previous GAAP to IND AS.

1 Fair valuation of investments

Under the previous GAAP, investments in equity instruments and debentures were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under IND AS, these investments are required to be measured at fair value (other than investments in subsidiaries and joint ventures).

2 Deferred tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. IND AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of IND AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Previous GAAP.

3 Borrowings

Under previous GAAP, transaction costs were charged to profit or loss as and when incurred with a corresponding adjustment to inventories. IND AS 109 these transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method.

4 Proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. However, under IND AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend and Dividend distribution tax included under provisions has been reversed with corresponding adjustment to retained earnings.

5 Employee stock option expense

Under the previous GAAP, the cost of equity-settled employee share-based plan were recognized using the intrinsic value method. However ,under IND AS, the cost of equity settled share-based plan is recognized based on the fair value of the options as at the grant date.

6 Security deposits

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under IND AS, all financial assets are required to be recognized at fair value. Accordingly, the group has fair valued these security deposits under IND AS. Difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent.

7 Revenue Recognition

Under IND AS, method of Revenue recognition is required to be ''Percentage of completion method'' from the earlier followed ''completed units method''. Consequent to the change in the method, cost of construction, commission & brokerage, unbilled revenue and prepaid expense have been changed accordingly.

( refer point (c) of significant accounting policies for revenue recognition conditions)

8 Other Comprehensive income

Under IND AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ''Other comprehensive income'' includes remeasurements of defined benefit plans and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

9 Reconciliation of Cash Flow Statement

The IND AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, IND AS adoption has no impact on the net cash flow for the year ended 31st March, 2016 as compared with the previous GAAP.

10. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Company''s Chief operating officer (COO) and Chairman and Managing director (CMD) are identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators, however the Company is primarily engaged in only one segment viz., ''Real Estate/Real Estate Development and Related Activities'' and that most of the operations are in India. Hence the Company does not have any reportable Segments as per Indian Accounting Standard 108 "Operating Segments”.

11. The Company''s normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and other business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

12. The accounts of certain trade receivables, trade payables, loans and advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However, there is no indication of dispute on these accounts, other than those mentioned in the financial statements. The management does not expect any material difference affecting the current year''s financial statements on such reconciliation/adjustments.

13. The Company is a partner in a partnership firm, Kanaka and Associates, in which the Company has total exposure comprising of capital invested, and other receivables aggregating to Rs. 902.05 lakhs . Pending settlement of dispute with the other 50% partner and non availability of financial statement for the current year, the Company has not accounted for its share of profit/(loss) for the year. Necessary steps for resolving the dispute, including filing arbitration petition in the High Court, have been taken. The management does not expect any material financial impact on settlement of dispute.

14 Event Occurring After Balance Sheet Date: The Board of Directors has recommended Equity dividend of Rs. 3 per share (Previous year Rs. 2) for the financial year 2016-17. (Refer Note 38).

15. The Company has overdue trade receivables of Rs. 1,203.50 Lakhs in respect of which necessary steps for its recovery has been taken including filing of legal case. The management is confident of recovering the said due and therefore no provision, in their opinion, is considered necessary at this stage.

16. Figures pertaining to Previous Year have been regrouped / reclassified wherever found necessary to conform to Current Year presentation.

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Mar 31, 2016

b. Terms/rights attached to Equity shares

The Company has only one class of equity share having value of Rs. 2 each with an entitlement of one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors are subject to the approval of the shareholders in the ensuing annual general meeting. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

c. Shares held by Subsidiaries

3,000,000 (Previous Year 3,000,000) equity shares out of issued, subscribed and paid up share capital are held by subsidiary Companies.

The Company uses the intrinsic value-based method of accounting for the compensation cost of stock options. Intrinsic value is the amount by which the quoted market price of the underlying shares as on date of the grant exceeds the exercise price of the option. Had the compensation cost of stock options been determined in the manner consistent with the fair value approach based on Black and Scholes model, the Company''s net profit would be lower by Rs. 9,939,184, (Previous Year: lower by Rs. 16,101,908) and Basic/Diluted earnings per share would be Rs. 22.09 (Previous year : Rs. 11.61) as against reported Basic / Diluted earnings per shares of Rs. 22.24 (Previous year 11.86)

Terms and Conditions for Short-Term Borrowings Non Convertible Debentures

a) 2,000 (Previous year Nil) @ 11.75% Non-Convertible Debentures Series "A” of Rs. 1,00,000 each

b) Repayment Terms: Redeemable at par on 13th January, 2017

c) For security : Refer note no. 4 above.

Term Loan From a Bank

a) The term loan is secured by:

i) First mortgage charge over the property (i.e land situated at Andheri, in the name of Poonam CHS, to be developed by the Company for Project - Signia Pride) and the rights to develop the said property. Charge on all present and future current assets relating to the said project.

ii) Assignment of receivables from the project - Signia Pride and assignment of rights to develope the aforesaid property

b) The rate of interest on above loan facility is sum of SBI Base rate and 1.25% spread per annum. During the year, Base rate was 9.30% p.a. (Previous year N.A.)

c) Repayment schedule (refer table below)

Term Loan From Others - LIC Housing Finance Limited

a) First mortgage charge over the property (i.e project land and structure thereon of project "Signia High” situated at Borivali and assignment of receivables from the project - Signia High

b) The interest rate on above term loan is base rate less 1.50% spread per annum. During the year, base rate 14.70% p.a. (Previous year 15.50% p.a.)

c) Repayment schedule (refer table below)

Bank Overdraft

The Company has a overdraft facility with a limit of Rs. 203,300,000 (previous year Rs. 220,000,000) from Kotak Mahindra Bank Limited. The same is secured by way of mortgage of a portion of 4th floor in wing A and wing B of the building "Sunteck Centre”. The rate of interest on the said overdraft facility is base rate plus 2.50% spread per annum. During the year, base rate was in the range of 9.50% - 10.00% p.a. (Previous year 10.00% p.a.)

1. Related Party Disclosures As per Accounting Standard 18, the disclosures of related parties and transactions with them are given below: 1 Name of the Related Parties : (i) Related parties where control exists, irrespective of whether transaction has been entered into or not: a Subsidiary Companies :

Amenity Software Private Limited Magenta Computer Software Private Limited Satguru Infocorp Services Private Limited Starlight Systems Private Limited Sunteck Property Holdings Private Limited Sunteck Realty Holdings Private Limited Skystar Buildcon Private Limited Sahrish Construction Private Limited Sunteck Fashion & Lifestyle Private Limited Advaith Infraprojects Private Limited Starteck Lifestyle Private Limited Satguru Corporate Services Private Limited

Sunteck Real Estates Private Limited (From 13th December, 2015)

Sunteck Infraprojects Private Limited (From 17th December, 2015)

Denise Realties Private Limited (From 17th October, 2015)

Eleanor Lifespaces Private Limited (From 17th October, 2015)

Sunteck Lifestyle International Private Limited (Foreign Subsidiary)

Sunteck Lifestyles Limited (Foreign & Step down Subsidiary)

Sunteck Lifestyles Management JLT (Foreign & Step down Subsidiary)

b LLPs :

Starlight Systems (I) LLP Mithra Buildcon LLP

(ii) Other related parties with whom transactions has been entered during the year a Joint Ventures :

GGICO Sunteck Limited

Piramal Sunteck Realty Private Limited

Uniworth Realty LLP

Nariman Infrastructure LLP

Pathway Buildcon LLP

Assable Buildcon LLP

Kanaka & Associates (Partnership Firm)

b Associates:

Topzone Mercantile Company LLP

c Key Management Personnel

Mr. Kamal Khetan - Chairman & Managing Director

Mr. Jignesh Sanghavi - Executive Director (Retired on 29th September, 2015)

Mr. Atul Poopal - Executive Director (From 29th September, 2015)

Mrs. Rachana Hingarajia - Company Secretary

Mr. Sumesh Mishra - Chief Operating Officer (From 29th May, 2015)

d Entities over which Key Management Personnel with his relative having significant influence:

Nivedita Mercantile And Financing Limited S W Capital Private Limited

S W Commodities Private Limited

Note : Related party relationship is as identified by the management and relied upon by the Auditors.

2. Pursuant to enactment of the Companies Act, 2013 (the Act), the Company had, effective 1st April, 2014, reviewed and revised the useful life of certain tangible fixed assets, in accordance with Schedule II of the Act. The Company had given impact of Rs.455,862 on account of assets whose useful life has already been exhausted on 1st April, 2014 to Retained Earnings. Further, in case of assets acquired prior to 1st April,2014, the carrying value of assets is depreciated over the remaining useful life determined by the Schedule II of the Act. Consequently, depreciation expense for the previous year was higher by Rs.2,878,224.

3. As the Company is primarily engaged in only one business segment Viz. " Real Estate/ Real Estate Development and related activities” and substantial activities are carried out in India, there are no separate reportable segments as per Accounting Standard -17 " Segment Reporting”.

4. The Company''s normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and other business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

5. a. I n the opinion of the board, all the assets other than fixed assets and non- current investments have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.

b. The accounts of certain trade receivables, trade payables, loans and advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However there is no indication of dispute on these accounts, other than those mentioned in the financial statements. The management does not expect any material difference affecting the current year''s financial statements on such reconciliation/adjustments.

6. Undistributed accumulated profits amounting to Rs. 14,217,692 in the previous year (included in current account balance in LLP) represents accumulated profit of the investee company, namely Starlight Systems

(I) Private Limited which was converted into LLP on 22nd March,2013. The said accumulated profit can be distributed by the LLP after 21st March, 2016 .

46 Pursuant to the approval to the Scheme of Amalgamation/Arrangement (the ''Scheme'') by the Hon''ble Bombay High Court vide its Order dated 19th December, 2014, all assets and liabilities of erstwhile Sanchit Derivatives Private Limited, (referred to as the "Transferor company” hereinafter), were transferred to and vested in the Company (referred to as the "Transferee company” hereinafter) from 15th January, 2014, the appointed date. The Scheme became effective on 14th February, 2015 upon filing of court order with the Registrar of Companies, Maharashtra. Accordingly, the effect of the Scheme was given in financial statements of financial year 2014-15.

The amalgamation had been accounted for under the Purchase method as specified by the Accounting Standard AS - 14 "Accounting for Amalgamations” prescribed under section 133 of the Companies Act, 2013 (''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014. As on the appointed date, the Transferor company was holding 8,863,845 equity shares of face value of Rs. 2 each of the Transferee company as Investment, which has been cancelled pursuant to the scheme. 8,863,845 equity shares of face value of Rs. 2 each of the Transferee company has been issued to shareholders of Transferor company towards purchase consideration. The difference between excess of the net assets value of the Transferor Company transferred

& recorded by the Transferee Company at their respective book values after cancellation of investments, over purchase consideration was recorded as Capital reserve.

7. The Company is a partner in a partnership firm, Kanaka & Associates, in which the Company has total exposure comprising of capital invested, and other receivables aggregating to Rs. 86,130,854. Pending settlement of dispute with the other 50% partner and non availability of financial statement for the current year, the Company has not accounted for its share of loss for the year. Necessary steps for resolving the dispute, including filing arbitration petition in the High Court, have been taken. The management does not expect any material financial impact on settlement of dispute.

8 . The Company has overdue trade receivables of Rs. 120,350,000 (previous year Rs. 120,350,000) in respect of which necessary steps for its recovery has been taken including filing of legal case . The management is confident of recovering the said due and therefore no provision, in their opinion, is considered necessary at this stage.

9. Figures pertaining to Previous Year have been regrouped / reclassified wherever found necessary to conform to Current Year presentation.

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Mar 31, 2015

1. Terms/rights attached to Equity shares

"The Company has only one class of equity share having value of Rs. 2 each with an entitlement of one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors are subject to the approval of the shareholders in the ensuing annual general meeting. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders. "

2. Shares held by Subsidiaries

3,000,000 (Previous Year 3,000,000) equity shares out of issued, subscribed and paid up share capital are held by subsidiary Companies.

The Company uses the intrinsic value-based method of accounting for the compensation cost of stock options. Intrinsic value is the amount by which the quoted market price of the underlying shares as on date of the grant exceeds the exercise price of the option. Had the compensation cost of stock options been determined in the manner consistent with the fair value approach based on Black and Scholes model, the Company's net profit would be lower by Rs. 16,101,908, (Previous Year: lower by Rs. 9,764,198) and Basic/Diluted earning per share would be Rs. 11.61 (Previous year : Rs. 21.66) as against reported Basic / Diluted earning per shares of Rs. 11.86 (Previous year 21.81)

3.Terms and Conditions for Secured Loan

From a Bank - ICICI bank Limited

a) The term loan is secured by way of mortgage of land situated at borivali (realty project - signia high) and andheri (realty project - sunteck grandeur) and receivables thereon.

b) The term loan is further secured by way of lien on fixed deposits with bank of Rs. Nil; (Previous Year Rs. 23,484,464).

c) The interest rate on above term loan was I-base rate plus 4.5% spread.

d) Repayment schedule of secured term loan (refer note below)

From Others - LIC Housing Finance Limited

a) The term loan is secured by way of mortgage of land situated at borivali (realty project - signia high) and receivables thereon.

b) The interest rate on above term loan is LHPLR less 1.5% spread. Current LHPLR is 15.5%

c) Repayment schedule of secured term loan (refer note below)

4. Contingent liabilities and commitments

a) Contingent Liabilities (to the extent not provided for)

Income Tax Matters 6,207,795 6,207,795

Guarantee given on behalf of a step down subsidiary by way of Standby letter of Credit 1,549,122,300 -

Total 1,555,330,095 6,207,795

b) The Company's pending litigations comprise of claims against the Company and proceedings pending with tax and other authorities. The Company has reviewed all its pending litigations and proceedings and disclosed the contingent liabilities, wherever applicable in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

5. Related Party Disclosures

1 Name of the Related Parties :

(i) Related parties where control exists, irrespective of whether transaction has occurred or not: a Subsidiary Companies/ LLP :

Amenity Software Private Limited

Magenta Computer Software Private Limited

Satguru Infocorp Services Private Limited

Starlight Systems Private Limited

Sunteck Property Holdings Private Limited

Sunteck Realty Holdings Private Limited

Skystar Buildcon Private Limited

Sahrish Construction Private Limited

Sunteck Fashion & Lifestyle Private Limited

Advaith Infraprojects Private Limited (From 01st October, 2014)

Starteck Lifestyle Private Limited (From 01st October, 2014)

Satguru Corporate Services Private Limited (Step down Subsidiary From 01st October, 2014) Sunteck Lifestyle International Private Limited (Foreign Subsidiary)

Sunteck Lifestyles Limited (Foreign & Step down Subsidiary)

Sunteck Lifestyles Management JLT (Foreign & Step down Subsidiary from 20th March, 2014)

Starlight Systems (I) LLP

Mithra Buildcon LLP (From 08th August, 2014)

(ii) Related Parties with whom transactions have taken place during the year a Joint Ventures :

Piramal Sunteck Realty Private Limited Uniworth Realty LLP Nariman Infrastructure LLP Pathway Buildcon LLP Assable Buildcon LLP Kanaka & Associates (Partnership Firm) b Other Associates:

Topzone Mercantile Company LLP c Key Management Personnel:

Mr. Kamal Khetan - Chairman & Managing Director Mr. Jignesh Sanghavi - Executive Director Mrs. Rachana Hingarajia - Company Secretary

Note : Related party relationship is as identified by the management and relied upon by the Auditors.

6. Pursuant to enachment of Companies Act, 2013 ( the Act), the Company has, effective 1st April, 2014, reviewed andrevised the useful life of certain tangible fixed assets, in accordance with Schedule II of the Act. Accordingly, the Company has given impact of Rs.455,862 on account of assets whise useful life already exhausted on 1st April,2014 to Retained Earnings. Further, in case of assets acquired prior to 1st April,2014, the carrying value of assets is depreciated over the remaining useful life determined by the Schedule II of the Act. Consequently, depreciaion expenses for the year are higher by Rs.2,878,224/-.

7. As the company is primarily engaged in only one business segment Viz. " Real Estate/ Real Estate Development and related activities" and substantial activities are carried out in India, there are no separate reportable segments as per Accounting Standard -17 " Segment Reporting".

8. The Company's normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and other business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

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

b. The accounts of certain trade receivables, trade payables, loans and advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However there is no indication of dispute on these accounts, other than those mentioned in the financial statements. The management does not expect any material difference affecting the current year's financial statements on such reconciliation/adjustments.

10. Undistributed accumulated profits amounting to Rs. 14,217,692 (included in current account balance in LLP) represents accumulated profit of the investee company, namely Starlight Systems (I) Private Limited which was converted into LLP on 22nd March,2013. the said accumulated profit can be distributed by the LLP after the end of 3 years for the date of conversion.

11. "Pursuant to the approval to the Scheme of Amalgamation/Arrangement (the 'Scheme') by the Hon'ble Bombay High Court vide its Order dated 19th December, 2014, all assets and liabilities of erstwhile Sanchit Derivatives Private Limited, (referred to as the "Transferor company" hereinafter), were transferred to and vested in the Company (referred to as the "Transferee company" hereinafter) from 15th January, 2014, the appointed date. The Scheme became effective on 14th February, 2015 upon filing of court order with the Registrar of Companies, Maharashtra. Accordingly, the effect of the Scheme has been given in this financial statements.

The amalgamation has been accounted for under the Purchase method as specified by the Accounting Standard AS - 14 "Accounting for Amalgamations" prescribed under section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014. As on the appointed date, the Transferor company was holding 8,863,845 equity shares of face value of Rs. 2 each of the Transferee company as Investment, which has been cancelled pursuant to the scheme. 8,863,845 equity shares of face value of Rs. 2 each of the Transferee company has been issued to shareholders of Transferor company towards purchase consideration. The difference between excess of the net assets value of the Transferor Company transferred & recorded by the Transferee Company at their respective book values after cancellation of investments, over purchase consideration has been recorded as Capital reserve. "

12. Figures pertaining to Previous Year have been regrouped / reclassified wherever found necessary to conform to Current Year presentation.

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Mar 31, 2014

(Amount in Rs.)

Particulars 31.03.14 31.03.13

1 Contingent liabilities and commitments

a) Contingent Liabilities (to the extent not provided for) Income Tax Matters 6,207,795 -

Total 6,207,795 -

2 Related Party Disclosures

1 Name of the Related Parties :

(i) Related parties where control exists, irrespective of whether transaction has occurred or not: a Subsidiary Companies:

Amenity Software Private Limited

Magenta Computer Software Private Limited

Satguru Infocorp Services Private Limited

Starlight Systems Private Limited

Sunteck Property Holdings Private Limited

Sunteck Realty Holdings Private Limited (From 25th April 2013)

Skystar Buildcon Private Limited

Sahrish Construction Private Limited

Eleanor Lifespaces Private Limited (formerly known as Signature Island

Buildcon Private Limited) (up to 31st December, 2013)

Sunteck Fashion & Lifestyle Private Limited (from 15th March 2014)

Sunteck Lifestyles International Private Limited (Foreign Subsidiary) (From 25th October 2013)

Sunteck Lifestyle Limited (Foreign Subsidiary) (From 6th November 2013)

Advaith Infraprojects Private Limited

Starlight Systems (I) LLP

(ii) Related Parties with whom transactions have taken place during the year a Joint Ventures :

Piramal Sunteck Realty Private Limited

V3 Designs LLP (upto 17th May 2013)

Uniworth Realty LLP

Nariman Infrastructure LLP

Pathway Buildcon LLP

Assable Buildcon LLP

Kanaka and Associates (Partnership Firm)

b Other Associates:

Topzone Mercantile Company LLP

c Key Management Personnel:

Mr. Kamal Khetan – Chairman & Managing Director Mr. Jignesh Sanghavi – Whole Time Director

Note : Related party relationship is as identified by the management and relied upon by the Auditors.

3 Exceptional item in the Previous Year, represents amount paid towards stamp duty and registration charges (crystalised during the Previous Year) on account of amalgamation of two Companies with the holding Company in the year 2008-09

4 The Company''s normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and other business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

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

b. The accounts of certain trade receivables, trade payables, loans and advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However there is no indication of dispute on these accounts, other than those mentioned in the financial statements. The management does not expect any material difference affecting the current year''s financial statements on such reconciliation/adjustments.

6 One of the investee company is being covered under the definition of "Subsidiary" as per section 2(87) of the Companies Act, 2013, therefore the same has been disclosed as subsidiary, even though the same is not a subsidiary company as per provisions of Accounting Standard 21 consolidated financial statements.

7 Share of profit from Limited Liability Partnership (LLP) represents accumulated profit of the investee Company, namely Starlight Systems (I) Private Limited which was converted in the LLP during the Previous Year. The carrying value of investment of Rs. 80,000 was in terms of the LLP agreement considered as fixed capital. The aforesaid accumulated profit included in ''current account balance in LLP'' can be distributed by the LLP after the end of 3 years from the date of conversion. i.e. 22nd March, 2013.

8 Figures pertaining to Previous Year have been regrouped / reclassified wherever found necessary to conform to Current Year presentation.

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Mar 31, 2013

1 Lease

a. Initial direct cost such as Legal cost, Brokerage cost etc. are charged immediately to Statement of Profit and Loss.

c. Lease income recognized in Statement of Profit and Loss for the year ended 31st March, 2013 is Rs. 56,834,625/-(Previous Year Rs. 55,419,887).

2 Related Party Disclosures

1 Name of the Related Parties :

(i) Related Parties where control exists, irrespective of whether transcation has occured or not:

a Subsidiary Companies:

Amenity Software Private Limited

Magenta Computer Software Private Limited

Satguru Infocorp Services Private Limited

Starlight Systems Private Limited

Sunteck Property Holdings Private Limited

Skystar Buildcon Private Limited

Starlight Systems (I) Private Limited (up to 21st March, 2013)

Sahrish Construction Pvt. Ltd.(from 10th July, 2012)

Eleanor Lifespaces Pvt. Ltd. (formerly known as Signature Island Buildcon Pvt. Ltd.)

(ii) Related Parties with whom transactions have taken place during the year

a Joint Ventures :

Piramal Sunteck Realty Private Limited

Piramal Sunteck Realty Mauritius Limited (up to 14th September, 2012)

Piramal Sunteck International Limited (up to 14th September, 2012)

V3 Designs LLP

Uniworth Realty LLP

Nariman Infrastructure LLP

Pathway Buildcon LLP

Assable Buildcon LLP

Starlight Systems (I) LLP (from 22nd March, 2013)

b Partnership Firm:

Kanaka and Associates

c Other Associates:

Topzone Mercantile Company LLP

d Key Management Personnel:

Mr. Kamal Khetan – Chairman & Managing Director Mr. Jignesh Sanghavi – Whole Time Director

e Entity/Person/s having Significant Influence:

Starteck Infraprojects Private Limited

Note : Related party relationship is as identified by the management and relied upon by the Auditors.

3. Investments in Joint Ventures and the company''s share in their Assets & Liabilities, Income & Expenditure, Profit & Loss and Contingent Liability.

The interest of the Company in Joint ventures is listed below :

Piramal Sunteck Realty Private Limited (PSRPL) -50%

Piramal Sunteck Realty Mauritius Limited (PSRML) -50%

Piramal Sunteck International Limited (PSIL) -50%

Nariman Infrastructure LLP (NIL) -50%

Uniworth Realty LLP (URL)-50%

V3 Designs LLP (VDL) -50%

Assable Buildcon LLP (ABL) 50%

Pathway Buildcon LLP (PBL) 50%

Kanaka and Associates (Partnership Firm)50%

4 Exceptional item represents amount paid towards stamp duty and registration charges (crystalised during the year) on account of amalgamation of two companies with the company in the year 2008-09.

5 The Company''s normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and other business is based on 12 months period. Assets and Liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

6 a. In the opinion of the management, all the assets other than fixed assets and non- current investments have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

b. The accounts of certain Trade Receivables, Trade Payables, Loans and Advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However there is no indication of dispute on these accounts, other than those mentioned in the Financial Statements. The management does not expect any material difference affecting the current year’s financial statements on such reconciliation/adjustments.

7 Share of Profit from LLP represents accumulated profit of the investee company, namely starlight System (I) Pvt. Ltd. which was converted in the Limited Liability Partnership(LLP) during the year.The carrying value of investment of Rs. 80,000 has in terms of the LLP agreement considered as fixed capital.The aforesaid accumulated profit included in '' Current account balance in LLP'' can be distributed by the LLP after the end of 3 years from the date of conversion. i.e. 22nd March, 2013.

8 Previous year''s figures have been regrouped / rearranged wherever necessary to conform to current year''s classification.

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Mar 31, 2012

1 Contingent liabilities and commitments (to the extent not provided for)



(Amount in Rs.)

a. Contingent Liabilities 31.03.12 31.03.11

(i) Income tax 3,845,122 1,070,059

(ii) Stamp duty and registration charges arising on amalgamation or reconstruction of various companies carried out as per High Court Order's under section 394 of the Companies Act, 1956 Amount not ascertainable Amount not ascertainable

Total (a) 3,845,122 1,070,059

Commitments

Company's share in a corporate guarantee given to a Bank on behalf of a partnership firm in which company is a partner towards credit facility 12,607,204 64,092,072

Total (b) 12,607,204 64,092,072

Total (a) (b) 16,452,326 65,162,131

b. The Maharashtra Chambers of Housing Industry ('MCHI') had filed a writ petition in Bombay High Court challenging the levy of Value Added Tax ('VAT') w.e.f. June 20, 2006 under MVAT Act, 2002 on sale of premises under construction which has been recently dismissed by the Bombay High Court and has ordered to pay the MVAT liability. Under the premises ownership agreement / letter of allotment entered into by the Company, such liability ultimately needs to be borne by the purchaser of the premises, for which the Company is in process of sending the demand letters to the purchasers of the premises to pay MVAT liability and hence, no provision thereof is considered necessary.

c. The Maharashtra Chambers of Housing Industry (MCHI) had filed a writ petition with Bombay High Court challenging the levy of service tax on construction of complex and residential service introduced in the Budget of 2010 which has been recently dismissed by the Bombay High Court and has ordered to pay the service tax liability amount. Further, MCHI has filed a writ petition with Supreme Court challenging the Bombay High Court order which has been admitted by the Apex Court. Meanwhile, the Company has deposited the service tax liability amount to the government authorities/service tax department. No provision of interest liability is considered necessary as the same will be recovered from the customer.

2 Related Party Disclosures

1 Relationships:

Parties where control exists a Subsidiary Companies:

Amenity Software Private Limited

Magenta Computer Software Private Limited

Satguru Infocorp Services Private Limited

Starlight Systems Private Limited

Sunteck Property Holdings Private Limited

Skystar Buildcon Private Limited

Starlight Systems (I) Private Limited

b Step-down Subsidiary Companies

Signature Island Buildcon Private Limited

c Joint Ventures:

Piramal Sunteck Realty Private Limited

Piramal Sunteck Realty Mauritius Limited

Piramal Sunteck International Limited

V3 Designs LLP

Uniworth Realty LLP

Nariman Infrastructure Private Limited (upto 21st September, 2011)

Nariman Infrastructure LLP (from 22nd September, 2011)

Pathway Buildcon LLP

Assable Buildcon LLP

Kanaka and Associates

d Other Associates:

Topzone Mercantile Company LLP

e Key Management Personnel:

Mr. Kamal Khetan – Chairman & Managing Director Mr. Jignesh Sanghavi – Whole Time Director

f Entity/Person/s having Significant Influence:

Starteck Infraprojects Private Limited

Note : Related party relationship is as identified by the management and relied upon by the Auditors.

3 Investments in Joint Ventures and the company's share in their assets and liabilities

The interest of the Company in Joint ventures is listed below :

Piramal Sunteck Realty Private Limited (PSRPL) -50%

Nariman Infrastructure Private Limited (NIPL) - 50% (upto 21st September, 2011)

Nariman Infrastructure LLP (NIL) -50% (from 22nd September, 2011)

Uniworth Realty LLP (URL)-50%

V3 Designs LLP (VDL) -50%

Assable Buildcon LLP (ABL) 50%

Pathway Buildcon LLP (PBL) 50%

Kanaka and Associates (Partnership Firm)50%

4 The Company's normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and other business is based on 12 months period. Assets and Liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

5 a. In the opinion of the management, any of the assets other than fixed assets and non- current investments have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

b. The accounts of certain Trade Receivables, Trade Payables, Loans and Advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However there is no indication of dispute on these accounts, other than those mentioned in the Financial Statements. The management does not expect any material difference affecting the current year's financial statements on such reconciliation/adjustments.

6 Current year's financial statements have been presented in accordance with the Revised Schedule VI, previous year's figures have been regrouped / rearranged wherever necessary to conform to current year's classification.

7 The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

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Mar 31, 2011

1. Contingent Liabilities, not provided for, exist in respect of:

i) The stamp duty and registration charges arising on amalgamation or reconstruction of various companies carried out as per High Court Order's under section 394 of the Companies Act, 1956. The amount of whereof is not ascertainable at present.

ii) Company's share in a Corporate Guarantee for Rs. 64,092,072 (Previous year Rs. Nil) given to a Bank towards credit facility on behalf of a partnership firm in which company is a partner.

iii)

Name of Nature of Dues Amount (Rs.) Paid Period to which Forum where Statute against amount relates disputes is pending demand

Income Tax Demand u/s 156 1,063,893 (including - F.Y2008-2009 (A.Y CIT(A) Act, 1961 interest upto date of 2009-10) demand

2. A) In the opinion of the management, value on realization of current assets, loans and advances in the ordinary course of business will be at least equal to the amount at which they have been stated in the financial statements.

B) The accounts of certain Debtors, Creditors and Advances are subject to confirmations, reconciliations and adjustments if any. The Management does not expect any material difference affecting the current year financial statements on such reconciliation/ adjustments.

3. In the absence of necessary information with the Company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said Act could not be complied and disclosed.

4. A) Related Party Disclosures

a) Names of Related Parties and Nature of Relationships

I. Subsidiary Companies Amenity Software Private Limited

Magenta Computer Software Private Limited

Satguru Infocorp Services Private Limited

Starlight Systems Private Limited

Sunteck Property Holdings Private Limited

Skystar Buildcon Private Limited

Piramal Sunteck Realty Private Limited (up to15th March, 2011)

Step Down Subsidiaries

Piramal Sunteck Realty Mauritius Limited (upto15th March, 2011)

Piramal Sunteck International Limited (upto15th March, 2011)

II. Joint Ventures

Piramal Sunteck Realty Private Limited (from16th March, 2011) Kanaka and Associates

V3 Design Private Limited (from 31st December, 2010 till 27th March, 2011)

V3 Designs LLP (from 28th March, 2011)

Uniworth Realty Private Limited (from 31st December, 2010 to23rd March, 2011)

Uniworth Realty LLP (from 24th March, 2011)

Nariman Infrastructure Private Limited ((from 31st December, 2010)

III. Associates

Topzones Mercantile Co. Private Limited (Upto 29th March, 2011)

Topzones Mercantile Company LLP (from 30thMarch,2011)

IV. Key Management Personnel

Mr.Kamal Khetan– Chairman & Managing Director

Mr. Jignesh Sanghavi–Whole Time Director

V. Entity/Person/s having Significant Influence

Mrs. Manisha Khetan–RelativeofKey Managerial Person

Starteck Infra projects Private Limited.

B) Investments in Joint Ventures

The interest of the Company in Joint venturesislisted below :

a. Piramal Sunteck Realty Private Limited (PSRPL) -50%

b. Nariman Infrastructure Private Limited (NIPL) -50%

c. Uniworth Realty Private Limited (URPL)-50%

d. Uniworth Realty LLP (URL)-50%

e. V3Designs Private Limited (VDPL)-50%

f. V3Designs LLP (VDL) -50%

g. Kanaka and Associates (Partnership Firm) (Kanaka)-50%

5. The Government of Maharashtra had amended the provisions of Maharashtra Value Added Tax Act, 2002 ('MVAT Act'), and to provide that Value Added Tax ('VAT') is leviable under the provisions of MVAT Act on sale of premises under construction by the enterprise engaged in the business of construction. Maharashtra Chambers of Housing Industry ('MCHI') had filed a writ petition challenging the constitutional validity of the amendment. By the Interim Order dated December 7, 2007, the Hon'ble Bombay High Court, has directed to MCHI members not to register as Dealer under the provisions of MVAT Act and no order of assessment be passed. This stay of the Hon'ble Bombay High Court is still pending clearance. Further, By virtue of the Premises Ownership Agreement entered into by the Company with the purchasers of the premises, the purchaser is liable to pay, and the Company is entitled to recover, any tax/duty etc that may be leviable on the said transaction and hence the Company does not have any liability in connection with the same.

6. The Maharastra Chambers of Housing Industry (MCHI) has filed a writ petition with Mumbai High Court challenging the constitutional validity of levying service tax on construction of complex service introduced in the Budget of 2010. The Mumbai High court has granted interim stay on recovery of the service tax vide its order dated July 23, 2010. The Mumbai High Court has granted Further interim relief to petitioners on February 18, 2011 and passed the order to deposit the amount collected from clients against service tax in the high court till the final judgment and the same will be refunded along with interest if the judgment will be in favor of petitioners. The final judgment of Honorable Mumbai High Court on the said matter is still pending.

By virtue of the Premises Ownership Agreement / Letter of Allotment entered into by the Company with the purchasers of the premises, the purchaser is liable to pay, and the Company is entitled to recover, any tax that may beleviable on the said transaction and hence Company does not have any liability in connection with the same. Company has already send demand letters to clients to pay the service tax amount as per interim order of honorable Mumbai High Court& will deposit the same in court.

7. Lease

a) All the initial direct payment are charged to Profit and Loss Account.

8. The Company operates in Single Segment i.e. Real Estate Real Estate Development and therefore Segment Reporting as per AS-17 is not applicable.

9. Other information pursuant to provision of Paragraph 3, 4A, 4C & 4D of Part II of Schedule VI of the Companies Act, 1956 are either Nil or Not Applicable.

10. Previous year's figures have been regrouped / reclassified where necessary to conform to the current year's classification.

11. During the year there is no un hedged Foreign Transactions entered by the Company.

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Mar 31, 2010

1. Contingent Liabilities

In the opinion of the management, there is no contingent liability other than the stamp duty and registration charges which is payable as per High Court Order under section 394 of the Companies Act, 1956 in respect of amalgamation or reconstruction of companies, the amount of which is not quantifiable at present. Adequate provision has been made for all known liabilities, except interest and penalty as may arise.

2. In the opinion of the management, value on realization of fixed assets, current assets, loans and advances in the ordinary course of business will be at least equal to the amount at which they have been stated in the financial statements.

3. The balances of some of the loans and advances and creditors are subject to confirmation.

4. In the absence of necessary information with the Company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said Act could not be complied and disclosed.

5. Related Party Disclosures

A) Names of Related Parties and Nature of Relationships

I. Subsidiary Companies

Amenity Software Private Limited Magenta Computer Software Private Limited Satguru Infocorp Services Private Limited Starlight Systems Private Limited Piramal Sunteck Realty Private Limited

II. Joint Venture

Kanaka & Associates (Partnership Firm)

III. Entity over which Company exercise significant influence

Eskay Infrastructure Development Private Limited Satguru Capital & Finance Private Limited Satguru Derivatives & Commodity Private Limited Buteo Finance & Investments Limited

IV. Key Management Personnel

Mr. KamalKhetan Mrs. Manisha Khetan

6. Previous years figures have been regrouped, rearranged, reclassified to the extent possible.

7. The Company operates in Single Segment i.e. Realty and Construction.

8. Other information pursuant to provision of Paragraph 3, 4A, 4C & 4D of Part II of Schedule VI of the Companies Act, 1956 are either Nil or Not Applicable.