7. Provision

i. Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a 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.

8. Investments

i. Investments are classified into current and non-current investments. Current investments are stated at the lower of cost and fair value. Non-current investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, separately for each individual non-current investment.

ii. Investments that are readily realisable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as “Current investments”.

iii. All other investments are classified as “Non-current investments”.

9. Revenue recognition

(i) Sale of Land & Undivided Share of Land (UDS)

1. Sale of land and UDS (excluding land under agreement to sell) is recognised in the financial year in which the sale deed is executed.

(ii) Revenue from Construction Contracts:

The Company has adopted Ind AS 115, Revenue from Contracts with Customers, with effect from 01 April 2018.

1. The Company recognises revenue from contracts with customers when it satisfies a performance obligation by transferring promised good or service to a customer. The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. A performance obligation is satisfied over time if the customer simultaneously receives and consumes the benefits provided by the Company's performance as the Company performs. In cases where performance obligations are not satisfied over time, they are satisfied at a point in time, which is when control of the goods or services is transferred to the customer For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

2. Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or service to a customer excluding amounts collected on behalf of a third party. Variable consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance. Payment terms agreed with a customer are as per business practice and there is no financing component involved in the transaction price.

3. Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in Statement of Profit and Loss immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfil a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

(iii) Advances received from customers in respect of contracts are treated as liabilities and adjusted against progress billing as per terms of the contract.

(iv) Amounts due from contract customers represents the amount expected to be collected from customers for completed contract work.

(v) Interest Income

1.Interest from various Short Term/ Long Term investments is recognised on time proportion basis, taking into account the amount outstanding and the rate applicable

10. Interest from customers under agreements to sell

(j) Interest income from customers under agreements to sell or construction is recognized on a cash basis when received.

11. Cost of revenue

(i) Land and plots development costs include land acquisition cost, internal development costs and external development charges, which are not charged to the Statement of Profit and Loss. They are carried forward as work in progress.

(ii) Cost of constructed properties and properties under construction includes cost of land (excluding land under agreements to purchase), internal development costs, external development charges, construction costs and development/ construction materials, which is charged to the Statement of Profit and Loss based on the percentage of revenue recognised as per accounting policy (7) above, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the applicable project.

12. Segment Reporting

(i) The Company is managed as a single operating unit that provides Property Development Services only and therefore, has only one reportable business segment. Further, the operations of the Company are limited within one geographical segment. Hence the disclosure required by this standard is presently not applicable to the Company.

13. Tax Expenses

(i) The tax expenses for the period comprises of current tax and deferred income tax. T ax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the Other Comprehensive Income. In which case, the tax is also recognised in Other Comprehensive Income.

(ii) Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the Income Tax authorities, based on tax rates and laws that are enacted at the Balance sheet date.

(iii) Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax losses can be utilised.

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. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

14. Employee Benefits

(i) Defined Contribution Plan

The company is not liable for contributions to defined contribution schemes such as provident fund, employees' state insurance, labour welfare fund and superannuation scheme.

(ii) Short-term Benefits

Short-term employee benefits such as salaries, wages, performance incentives etc. are recognised as expenses at the undiscounted amounts in the Statement of Profit and Loss of the period in which the related service is rendered.

15. Contingent liabilities

(i) Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company not acknowledged as debts are treated as contingent liabilities. In respect of statutory dues that are disputed and contested by the Company, contingent liabilities are disclosed but not provided for.

16. Earnings per share

(i) Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for events including a bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares).

(ii) 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.

Contract Assets: Contract assets represent the Company's right to consideration for work completed but not yet billed as of the reporting date. These assets are reclassified to receivables when the right to payment becomes unconditional, typically upon the issuance of an invoice to the customer. For the period ended 31 March 2024, an assessment was conducted in accordance with Ind AS 109, and no impairment of contract assets was recognized.

Contract Liabilities: Contract liabilities primarily consist of advance payments received from customers for residential and commercial units under construction. Revenue related to these contract liabilities is recognized over time using the Percentage of Completion method, as the Company progresses towards fulfilling its performance obligations under the contract.

Amounts Due from Contract Customers: These represent the gross unbilled amounts expected to be collected from customers for work performed up to the reporting date. The amount is measured at cost plus profit recognized to date, less progress billings and recognized losses, if any.

Amounts Due to Contract Customers: These represent the excess of progress billings over the revenue recognized (including attributable profits) for the contract work performed to date. The measurement of these amounts includes all costs directly attributable to specific projects, as well as an allocation of fixed and variable overheads incurred in the Company's contract activities, based on normal operating capacity.

31 Financial Instruments, Financial Risk and Capital Management

31.1 Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

312 Subsequent measurement

(a) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset 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.

(b) Financial assets at fair value through other comprehensive income (FVOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model 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.

(c) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(d) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method,

313 Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized.

31.4 In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions

that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized.

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

35 Contingent Liabilities And CommitmentsThe total outstanding demand of Income Tax is Rs. 8,12,14,228 as on date.

The matter is pending at various stages of appeal. Based on the interpretations of relevant provisions of the Income tax Act, the Company has been legally advised that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary. gg Corresponding figures for the previous period have been regrouped wherever necessary to confirm the current period classification.

Place: Chennai As per our report of even date attached

Date: 30/05/2024

For and on behalf of the Board for GASM DANSR AND CO

Firm Reg No: 005986S

SD/- SD/- (Chartered Accountants)

(Anop Chand Jain) (Gajraj Jain)

Managing Director Joint Managing Director SD/-

(V Ranga Rao)

SD/- SD/- Partner

(Nitesh Jain) (Bilal Mohammed Ali) Membership No: 024963

CFO Company Secretary