(l) Provisions, contingent liabilities, onerous
contracts and contingent asset
Provision
A provision is recognized when the Company has
a present obligation (legal or constructive) as a
result of past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. If the effect of the time value of money is
material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used, the
increase in the provision due to the passage of time
is recognized as a finance cost. The expense relating
to a provision is presented in the statement of profit
and loss net of any reimbursement.
When the company expects some or all of a
provision to be reimbursed, the reimbursement is
recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense
relating to a provision is presented in the statement
of profit and loss net of any reimbursement.
Contingent liabilities
A contingent liability is 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 Company or a
present obligation that is not recognized because
it is not probable that an outflow of resources will
be required to settle the obligation. A contingent
liability also arises in extremely rare cases where
there is a liability that cannot be recognized because
it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses it
in the standalone financial statements, unless the
possibility of an outflow of resources embodying
economic benefits is remote.
Onerous contract
I f the Company has a contract that is onerous,
the present obligation under the contract is
recognised and measured as a provision. However,
before a separate provision for an onerous
contract is established, the Company recognises
any impairment loss that has occurred on assets
dedicated to that contract.
An onerous contract is a contract under which the
unavoidable costs (i.e. the costs that the Company
cannot avoid because it has the contract) of
meeting the obligations under the contract exceed
the economic benefits expected to be received
under it. The unavoidable costs under a contract
reflect the least net cost of exiting from the contract,
which is the lower of the cost of fulfilling it and any
compensation or penalties arising from failure
to fulfil it. These estimates are reviewed at each
reporting date and adjusted to reflect the current
best estimates.
Contingent assets
Contingent assets are neither recognised nor
disclosed except when realisation of income is
virtually certain, related asset is disclosed.
(m) Cash dividend to equity holders of
the Company
The Company recognizes a liability to make cash
distributions to equity holders of the Company when
the distribution is authorised and the distribution
is no longer at the discretion of the Company. Final
dividends on shares are recorded as a liability on
the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of
declaration by the Company's Board of Directors.
(n) Cash and cash equivalents
The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant
risk of change in value and having original maturities
of three months or less from the date of purchase,
to be cash equivalents. Cash and cash equivalents
in the balance sheet comprise cash on hand and
bank balances which are unrestricted for withdrawal
and usage.
For the purpose of the standalone cash flow
statement, cash and cash equivalents consist of
cash and short-term deposits, as defined above,
net of outstanding bank borrowings repayable on
demand as they are considered an integral part of
the Company's cash management.
(o) Standalone Statement of Cash Flows
Standalone Statement of Cash Flows is prepared
under Ind AS 7 'Statement of Cash Flows'. Cash Flows
are reported using the indirect method.
The Company classifies cash outflows to acquire
or construct investment property as investing and
rental inflows as operating cash flows.
(p) Earnings per share
Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
year. Partly paid equity shares are treated as a
fraction of an equity share to the extent that they
are entitled to participate in dividends relative
to a fully paid equity share during the reporting
period. The weighted average number of equity
shares outstanding during the period is adjusted
for events such as bonus issue that have changed
the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period
are adjusted for the effects of all dilutive potential
equity shares.
(q) Restatement
The Company restates its standalone financial
statements and presents a third balance sheet as
at the beginning of the preceding period if it applies
an accounting policy retrospectively, makes a
retrospective restatement of items in its standalone
financial statements or reclassifies items in its
financial statements that has a material effect on
the information in the balance sheet at the beginning
of the preceding period.
The Company corrects material prior period errors
retrospectively in the first set of standalone financial
statements approved for issue after their discovery
by (a) restating the comparative amounts for the
prior periods presented in which the error occurred;
or (b) if the error occurred before the earliest prior
period presented, restating the opening balances
of assets, liabilities and equity for the earliest prior
period presented.
(r) Share capital (equity shares)
I ncremental costs directly attributable to the issue
of equity shares are recognised as a deduction from
equity. Income tax relating to transaction costs of an
equity transaction is accounted for in accordance
with Ind AS 12.
(s) Financial instruments
A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
i. Initial recognition and measurement of financial
assets and liabilities
Financial assets and liabilities are recognized when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets and
liabilities are initially measured at fair value, however,
trade receivables and trade payables that do not
contain a significant financing component are
measured at transaction value and investments in
subsidiaries are measured at cost in accordance
with Ind AS 27 - Separate financial statements.
Transaction costs that are directly attributable
to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and
financial liabilities at fair value through profit or
loss) are added to or deducted from the fair value
measured on initial recognition of financial asset or
financial liability.
ii. Financial assets at amortized cost
Financial assets are subsequently measured at
amortized cost if these financial assets are held
within a business whose objective is to hold these
assets in order to collect contractual cash flows
and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.
iii. Financial assets at fair value through other
comprehensive income
Financial assets are measured at fair value through
other comprehensive income if these financial
assets are held within a business whose objective is
achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms
of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and
interest on the principal amount outstanding.
iv. Financial assets at fair value through profit or loss
Financial assets are measured at fair value through
profit or loss unless it is measured at amortized
cost or at fair value through other comprehensive
income on initial recognition. The transaction costs
directly attributable to the acquisition of financial
assets and liabilities at fair value through profit or
loss are immediately recognized in statement of
profit and loss.
v. Debt instruments at amortized cost
A 'debt instrument' is measured at the amortized
cost if both the following conditions are met:
a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and
b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.
After initial measurement, such financial assets are
subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortized 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 amortization
is included in finance income in the profit or loss.
The losses arising from impairment are recognized
in the profit or loss. This category generally applies
to trade and other receivables.
vi. 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. This category also includes derivative financial
instruments entered into by the Company that are
not designated as hedging instruments. Gains or
losses on liabilities held for trading are recognized
in the profit or loss.
vii. Financial liabilities at amortized cost
Financial liabilities are subsequently carried at
amortized cost using the effective interest ('EIR')
method. Interest-bearing loans and borrowings are
subsequently measured at amortized cost using
EIR method. For trade and other payables maturing
within one year from the balance sheet date, the
carrying amounts approximate fair value due to the
short maturity of these instruments.
viii. De-recognition of financial instruments
The Company derecognizes a financial asset when
the contractual rights to the cash flows from the
financial asset expire or it transfers the financial
asset and the transfer qualifies for de-recognition
under Ind AS 109. A financial liability (or a part
of a financial liability) is derecognized when the
obligation specified in the contract is discharged or
cancelled or expires.
ix. Reclassification of financial assets
The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for
financial instruments.
x. Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realize the assets and settle
the liabilities simultaneously.
xi. Fair value of financial instruments
In determining the fair value of its financial
instruments, the Company uses following hierarchy
and assumptions that are based on market
conditions and risks existing at each reporting date.
Fair value hierarchy:
All assets and liabilities for which fair value is
measured or disclosed in the standalone financial
statements are categorized within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair value
measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable
• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable
For assets and liabilities that are recognized in the
standalone financial statements on a recurring basis,
the Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.
xii. Investment in subsidiaries (including LLPs) and
joint venture:
Investment in subsidiaries and joint venture is
carried at cost as per Ind AS 27 'Separate Financial
Statements'. Where the carrying amount of an
investment is greater than its estimated recoverable
amount, it is assessed for recoverability and in case
of permanent diminution, provision for impairment
is recorded in statement of Profit and Loss. On
disposal of investment, the difference between the
net disposal proceeds and the carrying amount
is charged or credited to the Statement of Profit
and Loss.
(t) Impairment
Financial assets
The Company assesses at each date of balance
sheet whether a financial asset or a group of financial
assets is impaired and measures the required
expected credit losses through a loss allowance.
The Company recognizes lifetime expected losses
for all contract assets and / or all trade receivables
that do not constitute a financing transaction. For
all other financial assets, expected credit losses
are measured at an amount equal to the 12-month
expected credit losses or at an amount equal to the
life-time expected credit losses if the credit risk on
the financial asset has increased significantly since
initial recognition.
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
assets or cash-generating unit's (CGU) net selling
price and its value in use. The recoverable amount
is determined for an individual asset, unless the
asset does not generate cash inflows that are
largely independent of those from other assets or
groups of assets. Where the carrying amount of an
asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down
to its recoverable amount. 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 net selling price, recent market
transactions are taken into account, if available. If no
such transactions can be identified, an appropriate
valuation model is used.
I impairment losses are recognized in the statement
of profit and loss. After impairment, depreciation
is provided on the revised carrying amount of the
asset over its remaining useful life.
Where an impairment loss subsequently reverses,
the carrying amount of the asset (or a cash¬
generating unit) is increased to the revised estimate
of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying
amount that would have been determined had no
impairment loss been recognized for the asset (or
cash-generating unit) in prior years. A reversal of
an impairment loss is recognized immediately in
the statement of profit and loss, unless the relevant
asset is carried at a revalued amount, in which case
the reversal of the impairment loss is treated as a
revaluation increase.
2.3 Significant accounting judgments,
estimates and assumptions
(a) Revenue from contracts with customers
The Company considers following factors that
significantly affect the determination of the amount
and timing of revenue from contracts with customers:
i) Identification of performance obligation
Revenue consists of sale of undivided share
of land and constructed area to the customer,
which have been identified by the Company
as a single performance obligation, as they are
highly interrelated/ interdependent. In assessing
whether performance obligations relating to
sale of undivided share of land and constructed
area are highly interrelated/ interdependent,
the Company considers factors such as:
• whether the customer could benefit
from the undivided share of land or the
constructed area on its own or together
with other resources readily available to the
customer; and
• whether the entity will be able to fulfil its
promise under the contract to transfer the
undivided share of land without transfer of
constructed area or transfer the constructed
area without transfer of undivided share
of land.
ii) Timing of satisfaction of performance
obligation
Revenue from sale of real estate units is
recognised when (or as) control of such units
is transferred to the customer. The entity
assesses timing of transfer of control of such
units to the customers as transferred over time
if one of the following criteria are met:
• The customer simultaneously receives
and consumes the benefits provided by
the entity's performance as the entity
performs; or
• The entity's performance creates or enhances
an asset that the customer controls as the
asset is created or enhanced; or
• The entity's performance does not create
an asset with an alternative use to the entity
and the entity has an enforceable right to
payment for performance completed to date.
I f control is not transferred over time as above,
the entity considers the same as transferred at
a point in time.
For contracts where control is transferred at
a point in time, the Company considers the
following indicators of the transfer of control of
the asset to the customer when the:
• Entity obtains a present right to payment for
the asset;
• Entity transfers significant risks and rewards
of ownership of the asset to the customer;
• Entity transfers legal title of the asset to the
customer; or
• Entity transfers physical possession of the
asset to the customer; and
• Customer has accepted the asset.
iii) Accounting for revenue and land cost
for projects executed through joint
development arrangements (‘JDA’)
For projects executed through joint
development arrangements, the Company has
evaluated that landowners are not engaged in
the same line of business as the Company and
hence has concluded that such arrangements
are contracts with customers. The revenue from
the development and transfer of constructed
area/revenue sharing arrangement and the
corresponding land/ development rights
received under JDA is measured at 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 the representative fair value of
the revenue transaction and land so obtained.
Such assessment is carried out at the launch
of the real estate project and is not reassessed
thereafter. The management is of the view
that the fair value method and estimates are
reflective of the current market condition.
iv) Significant financing component
For contracts involving sale of real estate unit,
the Company receives the consideration in
accordance with the terms of the contract in
proportion of the percentage of completion
of such real estate project and represents
payments made by customers to secure
performance obligation of the Company under
the contract enforceable by customers. Such
consideration is received and utilised for
specific real estate projects in accordance with
the requirements of the Real Estate (Regulation
and Development) Act, 2016. Consequently, the
Company has concluded that such contracts
with customers do not involve any financing
element since the same arises for reasons
explained above, which is other than for
provision of finance to/from the customer.
(b) Estimation of net realizable value for
inventory (including land advance)
I nventory is stated at the lower of cost and net
realizable value (NRV).
NRV for completed inventory is assessed by
reference to market conditions and prices existing
at the reporting date and is determined by the
Company, based on comparable transactions
identified by the Company for properties in the
same geographical market serving the same real
estate segment.
NRV in respect of inventory under construction is
assessed with reference to market prices at the
reporting date for similar completed property,
less estimated costs to complete construction
and estimate of time value of money till date
of completion.
With respect to land advances, NRV is based on the
present value of future cash flows, which depends
on the estimate of, the expected date of completion
of project, the estimation of sale prices, construction
costs and discount rate used.
(c) Impairment of financial and non-financial
assets
The Company assesses at each date of balance
sheet whether a financial asset or a group of financial
assets (except financial assets valued through fair
value through profit or loss) is impaired. Ind AS 109
requires expected credit losses to be measured
through a loss allowance. The Company recognizes
lifetime expected losses for all contract assets and
/ or all trade receivables that do not constitute a
financing transaction. For all other financial assets,
expected credit losses are measured at an amount
equal to the 12-month expected credit losses or at
an amount equal to the life time expected credit
losses if the credit risk on the financial asset has
increased significantly since initial recognition.
I mpairment exists when the carrying value of an
asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs
of disposal and its value in use. The fair value less
costs of disposal calculation is based on available
data from binding sales transactions, conducted at
arm's length, for similar assets or observable market
prices less incremental costs for disposing of the
asset. The value in use calculation is based on a DCF
model. The cash flows are derived from the budget for
the next five years and do not include restructuring
activities that the Company is not yet committed to
or significant future investments that will enhance
the asset's performance of the CGU being tested.
The recoverable amount is sensitive to the discount
rate used for the DCF model as well as the expected
future cash-inflows and the growth rate used for
extrapolation purposes. These estimates are most
relevant to disclosure of fair value of investment
property recorded by the Company.
(d) Defined benefit plans - Gratuity
The cost of the defined benefit gratuity plan and
other post-employment medical benefits and
the present value of the gratuity obligation are
determined using actuarial valuations. An actuarial
valuation involves making various assumptions that
may differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases 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.
The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate for plans operated in India, the
management considers the interest rates of
government bonds. The mortality rate is based on
publicly available mortality tables. Those mortality
tables tend to change only at interval in response
to demographic changes. Future salary increases
are based on expected future inflation rates and
expected salary increase thereon.
(e) Fair value measurement of financial
instruments
When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active
markets, their fair value is measured using valuation
techniques including the DCF model. The inputs to
these models are taken from observable markets
where possible, but where this is not feasible, a
degree of judgment is required in establishing fair
values. Judgments include considerations of inputs
such as liquidity risk, credit risk and market risk.
Changes in assumptions about these factors could
affect the reported fair value of financial instruments.
(f) Measurement of financial instruments at
amortized cost
Financial instruments are subsequently measured
at amortized cost using the effective interest ('EIR')
method. The computation of amortized cost is
sensitive to the inputs to EIR including effective
rate of interest, contractual cash flows and the
expected life of the financial instrument. Changes
in assumptions about these inputs could affect the
reported value of financial instruments.
(g) Useful life and residual value of property, plant
and equipment and investment property
The useful life and residual value of property,
plant and equipment and investment property
are determined based on evaluation made by the
management of the expected usage of the asset, the
physical wear and tear and technical or commercial
obsolescence of the asset. Due to the judgments
involved in such estimates the useful life and
residual value are sensitive to the actual usage in
future period.
(h) Valuation of investment property
Investment property is stated at cost. However,
as per Ind AS 40 'Investment Property' there is a
requirement to disclose fair value as at the balance
sheet date. The Company engaged independent
valuation specialists to determine the fair value
of its investment property as at reporting date.
The determination of the fair value of investment
properties requires the use of estimates such as
future cash flows from the assets and discount rates
applicable to those assets.
(i) Provision for litigations and contingencies
Provision for litigations and contingencies is
determined based on evaluation made by the
management of the present obligation arising from
past events the settlement of which is expected to
result in outflow of resources embodying economic
benefits, which involves judgments around ultimate
outcome and measurement of the obligation amount.
Due to judgments involved in such estimation the
provision is sensitive to the actual outcome in
future periods.
(j) Classification of property
The Company determines whether a property is
classified as investment property or inventory
as below.
I nvestment property comprises land and buildings
(principally office and retail properties) that are not
occupied substantially for use by, or in the operations
of, the Company, nor for sale in the ordinary course
of business, but are held primarily to earn rental
income and capital appreciation. These buildings are
substantially rented to tenants and not intended to
be sold in the ordinary course of business.
I nventory comprises property that is held for sale
in the ordinary course of business. Principally,
this is residential and commercial property that
the Company develops and intends to sell before
or during the course of construction or upon
completion of construction.
(k) Deferred tax asset
The extent to which deferred tax assets can be
recognized is based on an assessment of the
probability of the future taxable income against
which the deferred tax assets can be utilized.
(l) Lease
The Company enters into leasing arrangements
for various assets. The classification of the leasing
arrangement as a finance lease or operating lease and
corresponding period used for accounting is based
on an assessment of several factors, including, but
not limited to, transfer of ownership of leased asset
at end of lease term, lessee's option to purchase
and estimated certainty of exercise of such option,
proportion of lease term to the asset's economic
life, proportion of present value of minimum lease
payments to fair value of leased asset and extent of
specialized nature of the leased asset.
2.4Changes in accounting policies and
disclosures
(a) Standards issued but not yet effective
The Ministry of Corporate Affairs notifies new
standard or amendments to the existing standards.
There is amendment to Ind AS 21 "Effects of Changes
in Foreign Exchange Rates" such amendments would
have been applicable from 01 April 2025.
The Effects of Changes in Foreign Exchange
Rates specify how an entity should assess
whether a currency is exchangeable and how
it should determine a spot exchange rate when
exchangeability is lacking. The amendments also
require disclosure of information that enables
users of its financial statements to understand
how the currency not being exchangeable into the
other currency affects, or is expected to affect, the
entity's financial performance, financial position and
cash flows.
The amendments are effective for the period on or
after 01 April 2025. When applying the amendments,
an entity cannot restate comparative information.
The Company has reviewed the new pronouncement
and based on its evaluation has determined that
these amendments do not have a significant impact
on the Company's Standalone Financial Statements.
(b) Standards issued/amended and became
effective
The Ministry of Corporate Affairs vide notification
dated 9 September 2024 and 28 September
2024 notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024 and
Companies (Indian Accounting Standards) Third
Amendment Rules, 2024, respectively, which
amended/ notified certain accounting standards
(see below), and are effective for annual reporting
periods beginning on or after 1 April 2024:
• Insurance contracts - Ind AS 117; and
• Lease Liability in Sale and Leaseback -
Amendments to Ind AS 116
These amendments did not have any material impact
on the amounts recognised in prior periods and are
not expected to significantly affect the current or
future periods.
Note:
a) Transition to Ind AS
On transition to Ind AS (i.e. April 01, 2015), the Company has elected to continue with the carrying value of all
Investment properties measured as per the previous GAAP as the deemed cost of Investment properties.
b) Contractual obligations
The contractual commitments pending for the acquisition of investment properties as at March 31, 2025 is
t Nil (March 31, 2024: t Nil).
c) Leasing arrangements
I nvestment properties comprises a number of commercial properties (broadly categorized into two class
of assets i.e., office properties and retail properties depending on the nature, characteristics and risks of
each property) that are leased to third parties and related parties under operating leases (cancellable and
non-cancellable) with varying lease terms (upto 18 years), escalation clauses and renewal clauses. The
Company has classified these leases as operating leases, because they do not transfer substantially all of
the risks and rewards incidental to the ownership of the assets. Certain lease arrangement also includes
variable rent determined based on percentage of sales of lessee. The Company is also required to maintain
the property over the lease term.
b) Refer note 34(a)(v) for details of contractual obligations to construct or develop investment property
under development.
c) Investment property under development whose completion is overdue or has exceeded its cost compared
to its original plan
There are no projects in progress under 'Investment property under development' whose completion is
overdue or has exceeded its cost compared to its original plan.
d) Fair value
As the properties are under development, the Company has determined that the fair value of the properties
is not reliably measurable and expects that the fair value of the properties to be reliably measurable when
construction is complete. Hence, the carrying amount is best approximation of fair value of the properties.
f) Refer note 33 for details of Investment property under development pledged as security for borrowings.
f) Investment property under development pledged as security
Refer note 33 for details of Investment property under development pledged as security for borrowings.
g) Title deeds of immovable property not held in the name of the Company
Refer note 4(g) for details of immovable properties included in 'Investment property under development'
not held in the name of the Company.
Nature and purpose of reserve
a) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for
limited purposes as per provisions of Companies Act, 2013.
b) Share option outstanding account
Share based payments is used to record the fair value of equity-settled share based payment transactions
with employees. The amounts recorded in this account are transferred to securities premium upon exercise
of stock options by employees. In case of lapse, corresponding balance is transferred to retained earnings.
c) General reserve
The general reserve is used from time to time to transfer profits from retained earnings for
appropriation purposes.
d) Retained earnings
The cumulative gain or loss arising from the operations which is retained by the Company is recognised
and accumulated under surplus in the statement of profit and loss.
G During the current year, the Company has remeasured its deferred tax liabilities relating to temporary
differences associated with investments in subsidiaries at the long term capital gains tax rate that are
expected to apply to the period when the liability is settled, based on tax rates (and tax laws) that have
been enacted by the end of the reporting period resulting in reversal of deferred tax liabilities amounting
to t 7,677 lakhs.
H The Company has not entered into any such transaction which is not recorded in the books of accounts
that has been surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)
34 Commitments and contingencies
a. Commitments
(i) The Company has given ' 38,784 lakhs (March 31, 2024: ' 39,944 lakhs) as advances/deposits for purchase of
land/ joint development. Under the agreements executed with the land owners, the Company is required to
make further payments and/or give share in area/ revenue from such development in exchange of undivided
share in land based on the agreed terms/ milestones.
(ii) In connection with Company's investments in certain subsidiaries, the Company has entered into
shareholders agreement with other shareholders wherein it has certain commitments including further
investment in accordance with the terms of the agreement.
(iii) The Company has entered into a power purchase agreement with a party wherein the Company has
committed minimum purchase of power.
(iv) The Company is committed to provide financial support to some of its subsidiaries to ensure that these
entities operate on going concern basis and are able to meet their debts and liabilities as they fall due.
(v) As at March 31, 2025, the estimated amount of contract remaining to be executed on capital account
(investment property under development) not provided for is 5 38,683 lakhs (As at March 31, 2024: 5 40,730)
c. Other Litigations:
(i) The Company has outstanding balance of 5 860 lakhs that are under litigation, out of the advances paid
towards one Joint Development Agreement. The performance obligations under the said Joint Development
agreement are fulfilled hence the company initiated procedure for recovery of the balance advance and
other recovery of additional costs as per terms of the said agreement with Landowner. However, Landowner
has filed arbitration challenging the same and both parties have filed claims and counter claims. Based
on the overall assessment and legal evaluation, the underlying advances are considered as good and
recoverable by the management.
(ii) Apart from the above, the Company is also subject to certain legal proceedings and claims, which have
arisen in the ordinary course of business, including certain litigation for commercial development or land
parcels held for construction purposes, either through joint development arrangements or through outright
purchases. These cases are pending with various courts and are scheduled for hearings. After considering
the circumstances and legal evaluation thereon, the management believes that these cases will not have
an adverse effect on the standalone financial statements.
Note:The Company does not expect any reimbursement in respect of the above contingent liabilities and it is
not practicable to estimate the timing of the cash outflows, if any, in respect of aforesaid matters and it is not
probable that an outflow of resources will be required to settle the above obligations/claims.
c. Other transactions:
1 The Company has received ' 423 lakhs (March 31, 2024: Nil) towards accumulated shared profits from BILLP
and invested ' 174 lakhs ( March 31,2024 : 381 Lakhs) towards capital contribution.
2 The Company has made donation to BFT of ' 740 lakhs (March 31, 2024: ' 600 lakhs).
3 The Company has invested ' 326 lakhs in various unlisted Optionally Convertible Debentures of ' 100 each
in BPPL, and invested 312 lakhs in Optinally Convertible Redeemable Preference shares and redeemed
debentures ' 13,759 lakhs during the year. Also refer note 7 with respect to carrying value of investments
held as at year end.
4 The Company has invested ' 1,552 lakhs in various unlisted Optionally Convertible Debentures of ' 100 each
in BPPL, and invested ' 2,055 lakhs in Optinally Convertible Redeemable Preference shares and redeemed
debentures ' 3,913 lakhs during the year. Also refer note 7 with respect to carrying value of investments
held as at year end.
5 The company has received ' 325 lakhs (March 31,2024 : Nil) towards the redemption of Optionally Convertible
Redeemable Preference shares from ACPL.
6 The Company has paid '3,826 lakhs (March 31, 2024: ' 1,867 Lakhs ) to M.R. Jaishankar towards its share of
collections from Brigade Atmosphere Project and Brigade Oak Tree Project(Joint Development Project).
7 The Company has entered into various reimbursement of expense and income transactions with related
parties whereby the total reimbursement expenses received is 637 lakhs (March 31, 2024: 1,089 lakhs), total
reimbursement expenses paid is 816 lakhs (March 31, 2024: 3 lakh) and the total reimbursement income
received is 77 lakhs (March 31, 2024: 12 lakhs)
d. Other information:
Outstanding balances at the year-end are unsecured and carry interest upto 12% and settlement occurs in
cash. The Company has not recorded any provision/ write-off of receivables relating to amounts owed by
related parties.
Note: In respect of the transactions with the related parties, the Company has complied with the provisions of
Section 177 and 188 of the Companies Act, 2013 where applicable, and the details have been disclosed above,
as required by the applicable accounting standards.
37 Defined benefit plan - Gratuity
The Company has gratuity as defined benefit retirement plans for its employees. 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 at the rate of 15 days basic salary for each year of service until the
retirement age. As at March 31, 2025 and March 31, 2024 the plan assets were invested in insurer managed funds.
It is exposed to the following types of risks:
Interest rate risk: A fall in the discount rate which is linked to the Government Security rate will increase the
present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark
to market value of the assets depending on the duration of asset.
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries
of members. As such, an increase in the salary of the members more than assumed level will increase the
plan's liability.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which
is determined by reference to market yields at the end of the reporting period on government bonds. If the
return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively
balanced mix of investments in government securities, and other debt instruments.
Asset liability matching risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested
in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only,
plan does not have any longevity risk.
Concentration risk: Plan is having a concentration risk as all the assets are invested with the insurance company.
The following tables summarise the components of net benefit expenses recognised in the statement of profit
and loss and the funded status and amount recognised in the balance sheet.
38 Share based payments
The Company provides share-based payment schemes to its employees. The relevant details of the scheme
and the grants are as below:
Employees Stock Option Scheme (‘ESOP 2017’): The Company instituted this scheme pursuant to the Board of
Directors and Shareholders' resolution dated August 08, 2017 and September 21, 2017, respectively. As per ESOP
2017, the Company granted 25,16,597 (till March 31, 2024: 25,16,597) options comprising equal number of equity
shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The options
would vest equally 25% every year with exercise period of five years from the date of respective vesting. The
contractual life (comprising the vesting period and the exercise period) of options granted is 9 years from date
of such grant.
Employees Stock Option Scheme (‘ESOP 2022’): The Company instituted this scheme pursuant to the Board of
Directors and Shareholders' resolution dated March 25, 2022 and May 4, 2022, respectively. As per ESOP 2022,
the Company granted 13,37,658 (till March 31, 2024: 13,37,658) options comprising equal number of equity shares
in one or more tranches to the eligible employees of the Company and its subsidiaries. The options would vest
equally 25% based on the individual performance every year , with exercise period of five years from the date
of respective vesting. The contractual life (comprising the vesting period and the exercise period) of options
granted is 9 years from date of such grant.
(*)Investment in equity shares and preference shares of subsidiaries and joint venture are measured as per Ind AS 27, 'separate
financial statements' and have been excluded above.
Note:
The management assessed that the carrying values of cash and cash equivalents, trade receivables, current
investments, current loans, trade payables, current borrowings and other current financial assets and liabilities
approximate their fair values largely due to the short-term maturities.
b) Fair value hierarchy
Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped
into three Levels of fair value hierarchy. The three Levels are defined based on the observability of significant
inputs to the measurement, as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for the asset or liability.
There have been no transfers between the levels during the year
Note:
Valuation technique used to determine fair value
The following methods and assumptions were used to estimate the fair values:
• Refer note 4(f) with respect to investment property
• The quoted investments (mutual funds) are valued using the quoted market prices in active markets.
• The fair values of the unquoted equity shares have been estimated using a DCF model. The valuation requires
management to make certain assumptions about the model inputs, including forecast cash flows, discount
rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably
assessed and are used in management's estimate of fair value for these unquoted equity investments.
41 Financial risk management objectives and policies
The Company's principal financial liabilities, other than derivatives, comprise borrowings, trade and other
payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's
principal financial assets include loans, investments, trade receivables, cash and bank balances and other
receivables that derive directly from its operations.
i) Interest rate risk
I nterest 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.
1) Liabilities
The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest
rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate
because of a change in market interest rates. The Company's variable rate borrowing is subject to interest rate
fluctuations. Below is the overall exposure of the borrowing:
b) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk primarily from trade receivables (net
of advances/ payables), refundable deposits under joint development arrangements (JDA), security deposits,
cash and bank balances, loans, investment carried at amortised cost and other financial assets. The Company
continuously monitors defaults of customers and other counterparties and incorporates this information into
its credit risk controls. The carrying amounts of financial assets, unbilled revenue and contract assets represent
the maximum credit exposure.
Based on business environment in which the Company operates, a default on a financial asset is considered when
the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting
defaults are based on actual credit loss experience and considering differences between current and historical
economic conditions.
Credit risk management
(i) Credit risk related to cash and bank balance (including bank deposits) is managed by only accepting highly
rated banks and diversifying bank deposits and hence evaluated to be very low.
(ii) The Company's trade receivables in respect of real estate segment does not have any expected credit
loss since the handover/ possession of residential/commercial units to the customers in case of real estate
arrangements is not processed till the time the Company collects the entire receivables. Given the nature
of leasing business operations, the Company's trade receivables has low credit risk as the Company holds
security deposits equivalents ranging from three to six months rentals. Further, historical trends indicate
any shortfall between such deposits held by the Company and amounts due from customers have not
been material.
(iii) The Company is subject to credit risk in relation to refundable deposits given under joint development
arrangements. The management considers that the risk is high as it is in the possession of the land and the
property share that is to be delivered to the land owner under the joint development arrangements.
(iv) Other financial assets includes investments in debt instruments in subsidiaries, loans to subsidiaries and
joint ventures, and others. Credit risk related to these other financial assets is managed by monitoring the
recoverability of such amounts continuously, while at the same time internal control system are in place
ensure the amounts are within defined limits.
c) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company's reputation.
The Company has an established liquidity risk management framework for managing its short term, medium
term and long term funding and liquidity management requirements. The Company's exposure to liquidity risk
arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the
liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit
facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments
in a timely and cost-effective manner.
42 Capital management
The Company's objectives of capital management is to maximize the shareholder value. In order to maintain or
adjust the capital structure, the Company may adjust the return to shareholders, issue/ buyback shares or sell
assets to reduce debt. The Company manages its capital structure and makes adjustments in light of changes
in economic conditions and the requirements of the financial covenants.
The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt
as below:
• Equity includes equity share capital and all other equity components attributable to the equity holders
• Net debt includes borrowings (non-current and current) less cash and other bank balance.
I n order to achieve the objective of maximize shareholders value, the Company's capital management, amongst
other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that
define capital structure requirements. Any significant breach in meeting the financial covenants would allow the
bank to call borrowings. There have been no breaches in the financial covenants of borrowings.
44 Shares issued under QIP
On September 05, 2024, the Company has completed the offering of its equity shares through a qualified
institutions placement ("QIP") in accordance with the provisions of Chapter VIII of the Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the "SEBI ICDR
Regulations"). Pursuant to the QIP, the Company had allotted 1,30,43,478 equity shares of face value of 5 10 each
at an issue price of 5 1,150 per share (including a share premium of 5 1,140 per share) aggregating to 5 150,000
lakhs to qualified institutional buyers. Effective September 06, 2024, these equity shared were listed for trading
on the National Stock Exchange of India Limited and BSE Limited.
45 Additional Disclosures
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act,
1988 and rules made thereunder.
(ii) The Company does not have any transactions with companies struck off.
(iii) 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
(iv) 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
(v) During the year, the investments made, guarantees provided, security given and the terms and conditions
of the grant of all loans and advances in the nature of loans and guarantees to companies, firms, Limited
Liability Partnerships or any other parties are not prejudicial to the Company's interest.
46 The Company has defined process to take daily back-up of books of account in electronic mode on servers
physically located in India.
The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021
requiring companies, which uses accounting software for maintaining its books of account, shall use only such
accounting software which has a feature of recording audit trail of each and every transaction, creating an
edit log of each change made in the books of account along with the date when such changes were made and
ensuring that the audit trail cannot be disabled.
The Company has used an accounting software for maintaining its books of account which has a feature of
recording audit trail (edit log) facility and the same has been enabled throughout the year for all relevant
transactions recorded in the software at the application level. The accounting software is operated by a third-
party software service provider and in absence of any information on the existence of audit trail feature at
database level in the Independent Service Auditor's 'Type 2 report' issued in accordance with ISAE 3402
Assurance Engagements Other Than Audits or Reviews of Historical Financial Information', we are unable to
demonstrate whether the audit trail feature at the database level of the said software was enabled and operated
throughout the year.
47 The standalone financial statement for the previous year includes re-classifications for correction of certain
items in accordance with Ind AS 8, "Accounting Policies, Changes in Accounting Estimates and Errors" which are
described in more detailed as below:
(i) Security deposits paid under joint development agreement as at 31 March 2024 amounting to 5 31,416 lakhs,
earlier presented as 'Loans' is now reclassified and presented under 'Other financial assets' (current and non¬
current); and
(ii) Materials purchased and issued to sub-contractor of the Company for the year ended 31 March 2024
amounting to 5 11,704 lakhs, earlier presented as 'Sub-contractor costs' is now reclassified and presented
under 'Cost of raw materials, components and stores consumed'.
Other previous year's figures have been regrouped or reclassified wherever necessary to conform with the
current year's figures. The impact of such other reclassification / regrouping is not material to the standalone
financial statements.
48 No material events have occurred between the standalone balance sheet date to the date of issue of these
standalone financial statements that could affect the values stated in the standalone financial statements as
at 31 March 2025.
As per our report of even date attached For signatories on behalf of the Board of Directors of
For Walker Chandiok & Co LLP Brigade Enterprises Limited
Chartered Accountants
Firm registration number: 001076N/N500013
Manish Agrawal M.R. Jaishankar Pavitra Shankar
Partner Chairman Managing Director
Membership no.: 507000 DIN: 00191267 DIN: 08133119
Jayant Bhalchandra Manmadkar P. Om Prakash
Chief Financial Officer Company Secretary &
Membership No: 047863 C°mpliance °fficer
Membership No:F5435
New Delhi Bengaluru
May 14, 2025 May 14, 2025
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