Devoted Construction Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Note 1- significant accounting policies and other explanatory information for the year ended March 31, 2024

1.1 Company Overview

Devoted Construction Limited (DCL) ("the Company”) is a public company limited by shares incorporated on 10/05/2016 under the Companies Act, 1956 (now replaced by the Companies Act, 2013). The Company is engaged in Real Estate Activities. The registered office of the Company is located at M 55, Third Floor, Greater Kailash II, New Delhi 110048 and its CIN is L45500DL2016PLC299428.

1.2 Basis of Preparation of Financial Statements

The Financial Statement of the Devoted Construction Limited ("the Company") have been prepared to comply in all material aspects with the accounting standards notified by the companies (Accounting Standard) Rules, read with rule 7 to the Companies (Accounts) Rules, 2014 in respect of section 133 to the Companies Act, 2013. As per the notification provided by MCA [vide its press release No. 11/11/2009 dated 2nd, January, 2015] companies whose securities are listed or in the process of listing on SME exchanges shall not be required to apply Ind AS. The Financial statements are prepared under the historical cost convention, on an accrual basis of accounting. The accounting policies applied are consistent with those used in previous year.

1.3 Accounting Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles, requires the management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as atthe date of financial statements and the result of operation during the reported period. Although these estimates are based upon the management''s best knowledge of current events and actions, actual results could differ from these estimates which are recognised in the period in which they are determined.

1.4 Use of Estimates

The presentation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which results are known / materialized.

1.5 Current and Non Current Classification

All assets and liabilities are classified into current and non-current.

An asset is classified as current when it is expected to be realised in, or is intended for sale within 12 months or it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for atleast 12 months after the reporting date.

A liability is classified as current when it is expected to be settled within 12 months or the Company does not have an unconditionalright to defer settlement of the liability for atleast 12 months after the reporting date.

1.6 Cash and Cash equivalents

Cash comprises cash in hand and current account balance with banks. Cash equivalents are short term balances, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.7 Inventories

Inventories includes development rights which are valued at historical Cost representing acquisition cost, borrowing cost, estimated internal development costs and external development charges. Development rights represent amount paid under agreement to purchase land/ development rights and borrowing cost incurred by the Company to acquire development rights.

Inventories of traded goods are valued at cost or estimated realizable value whichever is lower.

1.8 Borrowing costs

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalised as part of the cost ofsuch assets (inventory), in accordance with Accounting Standard 16 "Borrowing Costs". A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Capitalization of borrowing costs is suspended in the period during which the active development is delayed due to, other than temporary, interruption. All other borrowing costs are charged to the statement of profit and loss as incurred.

1.9 Taxation

Tax expense for the year comprises current income tax and deferred tax. Current income tax is determined in respect of taxable income with deferred tax being determined as the tax effect of timing differences representing the difference between taxable income and accounting income that originate in one period, and are capable of reversal in one or more subsequent period(s). Such deferred tax is quantified using rates and laws enacted or substantively enacted as at the end of the financial year.

1.10 Revenue Recognition

Revenue from the sale of goods is recognized at the time of transfer of property or at the time of transfer of significant risk and rewards of the ownership to the buyer and the company retains no effective control of the goods transferred to a degree usually associated with the goods and there is no significant uncertainty exist regarding the amount of the consideration that will be derived from the sale of goods. Trade Discounts and volume rebates are deducted in determining revenue. Goods and Services Tax is deducted from the turnover.

1.11 Provision, Contingent Liabilities and Contingent Assets

a. Provision involving substantial degree of estimation in measurement are recognised when there is present obligation as result of past event and it is probable that there will be an outflow of resources.

b. Contingent liabilities are not recognized but are disclosed in the notes to financial statements and notes thereto. Contingent assets are neither recognised nor disclosed in the financial statement

1.12 Earnings Per Share

Basic earnings per share is 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 period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity share 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 weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

1.13 Cash flow statement

Cash flow are reported using indirect method, whereby net profit/(loss) before tax is adjusted for the effects of transactions of a non- cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, investing and financing activities of the company are segregated.

1.14 Employee benefits Short-term employee benefits

All employee benefits payable/available within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries and wages etc., are recognized in the Statement of Profit and Loss in the period in which the employee renders the related service. Since, number of employees doesn''t exceed the ceiling limit on any day during the accounting year hence, The Payment of Gratuity Act, 1972 and The Payment of Bonus Act, 1965 are not applicable to the company.

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Mar 31, 2024

Note 1- significant accounting policies and other explanatory information for the year ended March 31, 2024

1.1 Company Overview

Devoted Construction Limited (DCL) ("the Company") is a public company limited by shares incorporated on
10/05/2016 under the Companies Act, 1956 (now replaced by the Companies Act, 2013). The Company is
engaged in Real Estate Activities. The registered office of the Company is located at M-55, Third Floor, Greater
Kailash II, New Delhi -110048 and its CIN is L45500DL2016PLC299428.

1.2 Basis of Preparation of Financial Statements

The Financial Statement of the Devoted Construction Limited ("the Company") have been prepared to comply in
all material aspects with the accounting standards notified by the companies (Accounting Standard) Rules, read
with rule 7 to the Companies (Accounts) Rules, 2014 in respect of section 133 to the Companies Act, 2013. As per
the notification provided by MCA [vide its press release No. 11/11/2009 dated 2nd, January, 2015] companies
whose securities are listed or in the process of listing on SME exchanges shall not be required to apply Ind AS. The
Financial statements are prepared under the historical cost convention, on an accrual basis of accounting. The
accounting policies applied are consistent with those used in previous year.

1.3 Accounting Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles, requires
the management to make estimates and assumption that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities as atthe date of financial statements and the result of operation during
the reported period. Although these estimates are based upon the management''s best knowledge of current
events and actions, actual results could differ from these estimates which are recognised in the period in which
they are determined.

1.4 Use of Estimates

The presentation of Financial Statements requires estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of financial statements and the reported amount of revenue and
expenses during the reporting period. Difference between the actual results and estimates are recognized in
the period in which results are known / materialized.

1.5 Current and Non Current Classification

All assets and liabilities are classified into current and non-current.

An asset is classified as current when it is expected to be realised in, or is intended for sale within 12 months
or it is cash or cashequivalent unless it is restricted from being exchanged or used to settle a liability for atleast 12
months after the reporting date.

A liability is classified as current when it is expected to be settled within 12 months or the Company does not
have an unconditionalright to defer settlement of the liability for atleast 12 months after the reporting date.

1.6 Cash and Cash equivalents

Cash comprises cash in hand and current account balance with banks. Cash equivalents are short term balances,
highly liquid investments that are readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.

1.7 Inventories

Inventories includes development rights which are valued at historical Cost representing acquisition cost,
borrowing cost, estimated internal development costs and external development charges. Development rights

Note 1- significant accounting policies and other explanatory information for the year ended March 31, 2024

represent amount paid under agreement to purchase land/ development rights and borrowing cost incurred by
the Company to acquire development rights.

Inventories of traded goods are valued at cost or estimated realizable value whichever is lower.

1.8 Borrowing costs

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalised
as part of the cost ofsuch assets (inventory), in accordance with Accounting Standard 16 "Borrowing Costs". A
qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use.
Capitalization of borrowing costs is suspended in the period during which the active development is delayed due
to, other than temporary, interruption. All other borrowing costs are charged to the statement of profit and loss
as incurred.

1.9 Taxation

Tax expense for the year comprises current income tax and deferred tax. Current income tax is determined in
respect of taxable income with deferred tax being determined as the tax effect of timing differences representing
the difference between taxable income and accounting income that originate in one period, and are capable of
reversal in one or more subsequent period(s). Such deferred tax is quantified using rates and laws enacted or
substantively enacted as at the end of the financial year.

During the financial year 2022-23, deferred tax has not been recognised due to virtual uncertainty of its realisation.

1.10 Revenue Recognition

Revenue from the sale of goods is recognized at the time of transfer of property or at the time of transfer of
significant risk and rewards of the ownership to the buyer and the company retains no effective control of the
goods transferred to a degree usually associated with the goods and there is no significant uncertainty exist
regarding the amount of the consideration that will be derived from the sale of goods. Trade Discounts and
volume rebates are deducted in determining revenue. Goods and Services Tax is deducted from the turnover.