Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the company has present
determined obligations as a result of past events and an outflow
of resources embodying economic benefits will be required to
settle the obligations. Provisions are recognised at the best
estimate of the expenditure required to settle the present
obligation at the balance sheet date.

If the effect of the time value of money is material, provisions
are discounted using a current pre tax rate that reflects, where
appropriate, the risks specific to the liability. Where discounting

is used, the increase in the provision due to the passage of time
is recognised as a finance cost.

A Contingent liability is not recognised but disclosed in the notes

to the accounts, unless the probability of an outflow of resources
is remote.

A contingent asset is generally neither recognised nor disclosed.

2.20 Earnings per share

The Basic earnings per share (EPS) is calculated by dividing
the net profit or loss for the year attributable to the equity

shareholders by the weighted average number of equity shares
outstanding during the year.

For the purpose of calculating Diluted earnings per share, the net
profit or loss for the year attributable to the equity shareholders

and the weighted average number of equity shares outstanding
during the year are adjusted for the effects of all dilutive potential
equity shares.

2.21 Dividends

Provision is made for the amount of any dividend declared, being
appropriately authorised and no longer at the discretion of the
company, on or before the end of the reporting period but not

distributed at the end of the reporting period.

2.22 Exceptional items

Exceptional items refer to items of income or expense within
statement of profit and loss from ordinary activities which are
non-recurring and are of such size, nature or incidence that
their separate disclosure is considered necessary to explain the

performance of the company.

2.23 Impairment of 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 groups of assets. When the carrying amount of an asset or
CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

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.

Impairment losses of continuing operations, including impairment
on inventories, are recognised in the statement of profit and loss.

2.24 Critical accounting estimates

Property, plant and equipment

Property, plant and equipment 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 management at the time
the asset is acquired and reviewed periodically, including at each
financial year end. The lives are based on historical experience
with similar assets as well as anticipation of future events, which
may impact their life, such as changes in technology.

Intangible assets

The company tests whether intangible assets have suffered
any impairment on an annual basis. The recoverable amount
of a cash generating unit is determined based on value in use
calculations which require the use of assumptions.

Investment property

The charge in respect of periodic depreciation on investment
properties 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 investment
properties are determined by management at the time the asset
is acquired and reviewed periodically, including at each financial
year end. The lives are based on historical experience with similar
assets as well as anticipation of future events, which may impact
their life, such as changes in technology.

Revenue Recognition

Determination of revenue under the satisfaction of performance
obligation at a point in time method necessarily involves making
estimates, some of which are of a technical nature, concerning
where relevant, the timing of satisfaction of performance
obligations, costs to completion, the expected revenues from
the project or activity and the foreseeable losses to completion.
The company recognises revenue when the company satisfies
its performance obligations.

Selling costs

Project wise unaccrued selling expenses carried forward are
reviewed by the management annually and compared with
the standard costs. The standard selling costs and selling
costs expected to be incurred in future are estimated by the

management annually project-wise keeping in mind various
factors such as location of the project, market scenario, sales
volume, pricing, etc.

Inventories

Inventories comprising of land/development rights, completed
units and project development forming part of work-in-progress

are valued at lower of cost and net realisable value. Net Realisable

value is based upon the estimates of the management. The
effect of changes, if any, to the estimates is recognised in the
standalone financial statements for the period in which such
changes are determined.

Trade Receivable

As per Ind AS 109, the company is required to apply expected
credit losses model for recognizing the provision for doubtful

debts. The expected credit losses are determined based on the
past trends & assumptions.

Recognition and measurement of defined benefit obligations

The obligations arising from defined benefit plan is determined
on the basis of actuarial assumptions. Key actuarial assumptions
include discount rate, trends in salary escalation and attrition

rate. The discount rate is determined by reference to market
yields at the end of the reporting period on government

securities, the period to maturity of the underlying securities
correspond to the probable maturity of the post-employment

benefit obligation.

Recognition of Deferred Tax Asset

The deferred tax assets in respect of unabsorbed losses is
recognised based on reasonable certainty of the projected

profitability, determined on the basis of approved business plans,
to the extent that sufficient taxable income will be available to
absorb the unabsorbed losses.

Provisions and contingencies

The recognition and measurement of other provisions are based
on the assessment of the probability of an outflow of resources,
and on past experience and circumstances known at the Balance
sheet date. The actual outflow of resources at a future date may
therefore vary from the amount included in other provisions.