4.15 Provisions and contingencies

A provision is recognised when the Company has a
present obligation as a result of past events and 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 (excluding retirement
benefits) are not discounted to their present value and
are determined based on the best estimate required to
settle the obligation at the Balance Sheet date. These
are reviewed at each Balance Sheet date and adjusted
to reflect the current best estimates.

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognised
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 recognised because it cannot
be measured reliably. The Company does not recognise
a contingent liability but discloses its existence in the
financial statements.

4.16 Financial Instruments

a. Initial recognition

The Company recognises financial assets and
financial liabilities when it becomes a party to
the contractual provisions of the instrument. All
financial assets and liabilities are recognised at
fair value on initial recognition. Transaction costs
that are directly attributable to the acquisition or
issue of financial assets and financial liabilities,
that are not at fair value through Statement of
Profit and Loss, are added to the fair value on
initial recognition. Regular way purchase and sale
of financial assets are accounted for at trade date.

b. Subsequent measurement
Non-derivative financial instruments
Financial assets carried at amortised cost

A financial asset is subsequently measured at
amortised 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.

Financial assets at fair value through other
comprehensive income

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. Further, in cases where the Company
has made an irrevocable election based on its
business model, for its investments which are
classified as equity instruments, the subsequent
changes in fair value are recognised in other
comprehensive income.

Financial assets at fair value through profit and
loss (FVPL)

A financial asset which is not classified in any of
the above categories are subsequently fair valued
through Statement of Profit and Loss.

Financial liabilities

Financial liabilities are subsequently carried at
amortized cost using the effective interest method,
except for contingent consideration recognised in
a business combination which is subsequently
measured at fair value through Statement of Profit
and Loss. For trade and other payables maturing
within one year from the Balance Sheet date, the
carrying amounts approximate the fair value due
to the short maturity of these instruments.

Investments in Subsidiaries, joint ventures and
associate

Investments in subsidiaries, joint ventures and
associate are carried at cost in the financial
statements.

c. Derecognition of financial instruments

The Company derecognises 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
derecognition under Ind AS 109. A financial liability
(or a part of a financial liability) is derecognised
from the Company’s Balance Sheet when the
obligation specified in the contract is discharged
or cancelled or expires.

d. Impairment of financial assets

The Company recognises loss allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through Statement
of Profit and Loss. Loss allowance for trade
receivables with no significant financing component
is measured at an amount equal to lifetime ECL. For
all other financial assets, expected credit losses are
measured at an amount equal to the 12-month ECL,
unless there has been a significant increase in credit
risk from initial recognition in which case those are
measured at lifetime ECL. The amount of expected
credit losses (or reversal) that is required to adjust the
loss allowance at the reporting date to the amount
that is required to be recognised is recognised as an
impairment gain or loss in Statement of Profit and
Loss.

4.17 Operating cycle and basis of classification of assets
and liabilities

a. The real estate development projects undertaken
by the Company is generally run over a period
ranging upto 5 years. Operating assets and
liabilities relating to such projects are classified as
current based on an operating cycle upto 5 years.
Borrowings in connection with such projects
are classified as current since they form part of
working capital of the respective projects.

b. Assets and liabilities, other than those discussed
in paragraph (a) above, are classified as current to
the extent they are expected to be realised / are
contractually repayable within 12 months from
the Balance Sheet date and as non-current, in
other cases.

Current versus non-current classification

The Company presents assets and liabilities in
the Balance Sheet based on current/ non-current
classification. An asset is treated as current when
it is:

- Expected to be realised or intended to be sold
or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised within twelve months
after the reporting period, or

- Cash or cash equivalents unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating
cycle;

- It is held primarily for the purpose of trading;

- I t is due to be settled within twelve months
after the reporting period, or

- There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

4.18 Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.

For the purpose of the Statement of Cash Flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, as they are considered an
integral part of the Company’s cash management.

4.19 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 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.

4.20 Dividends

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.

4.21 Statement of Cash Flows

Statement of Cash Flows is prepared under Ind AS 7
'Statement of Cash Flows’ specified under Section 133
of the Act. Cash flows are reported using the indirect
method.

4.22 Events after the reporting period

If the Company receives information after the
reporting period, but prior to the date of approved for
issue, about conditions that existed at the end of the
reporting period, it will assess whether the information
affects the amounts that it recognises in its financial
statements. The Company will adjust the amounts
recognised in its financial statements to reflect any
adjusting events after the reporting period and update
the disclosures that relate to those conditions in light
of the new information. For non-adjusting events after
the reporting period, the Company will not change the
amounts recognised in its financial statements, but will
disclose the nature of the non-adjusting event and an
estimate of its financial effect, or a statement that such
an estimate cannot be made, if applicable.

SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements in conformity
with Ind AS requires the Management to make judgements,
estimates and assumptions that affect the reported amounts
of assets and liabilities (including contingent liabilities),
income and expenses and accompanying disclosures. The
Management believes that the estimates used in preparation
of the financial statements are prudent and reasonable.
Future results could differ due to these estimates and the
differences between the actual results and the estimates are
recognised in the periods in which the results are known /
materialise.

Significant accounting judgements, estimates and
assumptions used by Management are as below:

• Fair value measurements (Refer note 4.1),

• Determination of performance obligations and timing
of revenue recognition (Refer note 4.2),

• Accounting for revenue and land cost for projects
executed through joint development arrangement
(Refer note 4.2),

• Computation of percentage completion for projects
in progress, project cost, revenue and saleable area
estimates (Refer note 4.2),

• Determination of lease term, classification of lease and
estimating incremental borrowing rate (Refer note 4.4),

• Recognition of Deferred Tax Assets (Refer note 4.8),

• Useful lives of investment property; property, plant and
equipment and intangible assets (Refer note 4.9, 4.11
and 4.12),

• Impairment of financial/ non financial assets (Refer
note 4.13 and 4.16), and

• Net realisable value of inventory (Refer note 4.14).

STANDARDS NOTIFIED BUT NOT YET EFFECTIVE

The new and amended standards and interpretations that
are issued, but not yet effective, upto the date of issuance of
Company’s financial statements are disclosed below:

The Ministry of Corporate Affairs has notified Amendment
to the following Ind AS which are effective from 1 April 2025.

Ind AS 21, The Effects of Changes in Foreign Exchange
Rates

The amendment specifies how an entity should assess 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. When applying the amendments, an entity cannot
restate comparative information. The Company has
evaluated the amendment and there is no material impact
on its financial statements.

Notes:

i. The Company’s investment properties consists of commercial properties in India. The Management has determined that
the investment properties consist of two classes of assets - office and retail - based on the nature, characteristics and
risks of each property.

ii. The Company has determined that the carrying value of Right of use assets represents its fair value considering the terms
of the underlying lease arrangement.

iii. As at 31 March 2025 and 31 March 2024, the fair values of the properties (excluding Right to use assets) are ' 14,688
Million and ' 14,367 Million respectively. These valuations are based on valuations performed by the management of
the Company including valuation for certain investment properties from registered valuers as defined under Rule 2 of
Companies (Registered Valuers and Valuation) Rules, 2017. A valuation model in accordance with that recommended by
the International Valuation Standards Committee has been applied.

iv. The fair value of the Company’s investment properties have been arrived at using discounted cash flow method. Under
discounted cash flow method, cash flow projections based on reliable estimates of cash flow are discounted. The main
inputs used are rental growth rate (5% to 6%), expected vacancy rates (5%), terminal yields (8% to 10%) and discount rates
(8% to 12%) which are based on comparable transactions and industry data.

Security Details :

Mortgage of certain immovable properties financed under the loan.

Charge over the project material and other assets related to the projects.

Repayment and other terms :

Repayable in equated monthly instalments ranging from ' 1 million to ' 9 million ending February 2029.

These loans are subject to interest rates ranging from 7.11% to 11.24% per annum.

26e Refer Note No.30 for current maturities of long-term debt.

26f The Company has borrowings and working capital limits from banks or financial institutions on the basis of security of
current assets. In respect of working capital limits, there are no requirements of filing quarterly returns or statements with
banks or financial institutions as per the terms of relevant agreements. Further in respect of borrowings, the Company is
required to file quarterly returns or statements with banks or financial institutions as per the terms of the borrowings and
the Company has filed quarterly returns or statements which are in agreement with the books of accounts.

26g Secured, Redeemable non convertible debentures

During the year ended 31 March 2019, the Company had issued 3,500 rated, unlisted, secured redeemable, non-convertible
debentures (NCDs) (A Rating) of Rs 1,000,000 each, having tenor upto August 2023, aggregating ' 3,500 Million on a
private placement basis. These NCDs were secured by exclusive charge by way of mortgage over certain projects of the
Company (hereinafter referred to as "mortgaged property"), exclusive charge over receivables from sale of mortgaged
property and exclusive charge over debt service reserve account and escrow accounts of mortgaged property. The NCDs
were repayable in two tranches, Tranche 1 - ' 1,000 Million in August 2021 and Tranche 2 - ' 2,500 Million in August 2023
carry a coupon rate of 10.50%. During the year ended 31 March 2022 and year ended 31 March 2024, the Company has
redeemed the Tranche 1 NCDs and Tranche 2 NCDs respectively.

During the year ended 31 March 2022, the Company had issued 2,400 Series A senior, secured, redeemable, rated, listed,
non-convertible debentures (NCDs) (A Rating) of Rs 1,000,000 each at par, having tenor upto 29 November 2024 and
2,600 Series B senior, secured, redeemable, rated, listed, non-convertible debentures (A Rating) of Rs 1,000,000 each
at par, having tenor upto 29 November 2026 aggregating ' 5,000 Million. These NCDs were secured by way of exclusive
charge on the immovable project situated in Bengaluru owned by the Company and immovable properties situated in Goa
and Bidadi owned by a Subsidiary Company and a Firm. These NCDs carry a coupon rate of 8.90%. During the year ended
31 March 2025, the Company has redeemed both Series A and Series B NCDs respectively.

~| SEGMENT INFORMATION

The Chief Operating Decision Maker reviews the operations of the Company as a real estate development and related activity,
which is considered to be the only reportable segment by the Management. Hence, there are no additional disclosures to be
provided under Ind-AS 108 - Segment information with respect to the single reportable segment, other than those already
provided in these financial statements. The Company is domiciled in India. The Company’s revenue from operations from
external customers relate to real estate development in India and the non-current assets of the Company are located in India.

47 EMPLOYEE BENEFIT PLANS

(i) Defined Contribution Plans : The Company contributes to provident fund and employee state insurance scheme
which are defined contribution plans.

The Company has recognized the following amounts in the Statement of Profit and Loss under defined contribution
plan whereby the Company is required to contribute a specified percentage of the payroll costs to fund the benefits:

(a) The Company had entered into a registered Joint Development Agreement (JDA) with a certain land owner (the
"Land Owner Company") to develop a real estate project ("the Project"). Under the said JDA, the Company acquired
development rights over a certain parcel of land of the Land Owner Company and in exchange was required to provide
the Land Owner Company a share in the Project (the "Land Owner Company’s share"). The Company had incurred
Transferable Development Rights (TDR’s) which are recoverable from the Land Owner Company. The Company has
certain pending claims (including gross receivables of ' 923 Million including towards TDRs) from the Land Owner
Company.

Considering the rights of the Company under the JDA, the status of development achieved so far in the Project; the
Escrow arrangement with the Company, Land Owner Company and the Lender of the Land Owner Company (to
whom the Land Owner Company’s share of developed units have been mortgaged), which provides for manner of
recovery of TDR dues; the fact that the handing over formalities of the underlying units are yet to be completed, the
Company expects to recover the above gross dues towards TDR’s.

The Land Owner Company has been ordered to be wound up by the Hon’ble High Court of Karnataka during the year
ended 31 March 2017, which is pending adjudication. Pending ultimate outcome of the aforesaid legal proceedings,
the management is of the view that no further adjustments are required in the standalone financial statements.

(b) A search under section 132 of the Income Tax Act ('the Act’) was conducted during the quarter ended 31 March
2025 on the Company and certain group companies. As on the date of the Standalone financial statements, the
Company and such group companies have not received any demand or show cause notice from the Income tax
authorities pursuant to such search proceedings. The management has confirmed that the Company and such
group companies have complied with the requirements of the Act and does not expect any further liability on final
assessment of the aforesaid matter.

The sensitivity analysis in the following sections relate to the position as at 31 March 2025 and 31 March 2024. The
sensitivity analysis have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest
rates of the debt are constant.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post
retirement obligations; provisions.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is
based on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.

Interest rate risk

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 and short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. The
Company does not have any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a possible change in interest rates on that portion of borrowings
outstanding at the balance sheet date. With all other variables held constant, the Company’s profit before tax is affected
through the impact on floating rate borrowings, as follows:

53 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance the Company’s real estate operations. The Company’s principal financial assets include
investments, trade and other receivables, cash and cash equivalents, bank balances other than cash and cash equivalents, land
advances and refundable deposits that derive directly from its operations.

The management is of the view that the terms and conditions of the investments made, guarantees provided, security given,
land advances, refundable deposits, current account with partnership firms, loans and advances are not prejudicial to the
interest of the Company considering its economic interest, furtherance of the business and long term trade relationship.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the
management of these risks. The senior management ensures that the Company’s financial risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the
Company’s policies and risk objectives. It is the Company’s policy that no trading in derivatives for speculative purposes may
be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised
below.

I Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and
commodity risk. The Company has no exposure to commodity prices as it does not deal in derivative instruments whose
underlying is a commodity. Financial instruments affected by market risk include loans and borrowings and refundable
deposits.

II 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 from its operating activities (primarily trade receivables)
and from its financing activities, including refundable joint development deposits, security deposits, loans to employees
and other financial instruments.

Trade and other receivables

Trade receivables of the Company comprises of receivables towards sale of properties, rental receivables and other
receivables.

Receivables towards sale of property - The Company is not substantially exposed to credit risk as property is handed over
on payment of dues. However the Company make provision for expected credit loss where any property developed by the
Company is delayed due to litigation as further collection from customers is expected to be realised only on final outcome
of such litigation.

Receivables towards rental receivables - The Company is not substantially exposed to credit risk as Company collects
security deposits from lessee.

Other Receivables - Credit risk is managed as per the Company’s established policy, procedures and control relating to
customer credit risk management. Outstanding customer receivables are regularly monitored. The impairment analysis is
performed at each reporting date on an individual basis for major customers. The maximum exposure to credit risk at the
reporting date is the carrying value of each class of financial assets.

Refundable joint development deposits

The Company is subject to credit risk in relation to refundable deposits given under joint development arrangements.
The management considers that the risk is low 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.

Financial Instrument and cash and bank

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in
accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and
within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company’s Board of
Directors on an annual basis, and may be updated throughout the year subject to approval of the Company’s Finance
Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through a
counterparty’s potential failure to make payments. The Company’s maximum exposure to credit risk for the components
of the Balance Sheet at 31 March 2025 and 31 March 2024 is the carrying amounts.

III Liquidity risk

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank
deposits and loans. The table below summarises the maturity profile of the Company’s financial liabilities based on
contractual payments:

54 CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other
equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management
is to maintain strong credit rating and healthy capital ratios in order to support its business and maximise the shareholder
value.

The Company, through its Board of Directors manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company
may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors
capital using debt equity ratio, which is net debt divided by total capital. The Company includes within net debt, interest bearing
loans and borrowings (excluding borrowings from related parties) less cash and cash equivalents, current investments, bank
balances other than cash and cash equivalents. The disclosure below could be different from the debt and equity components
which have been agreed with any of the lenders.

59 OTHER STATUTORY INFORMATION

(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 Prohibition of Benami Property Transactions Act, 1988 and rules
made thereunder.

(ii) The Company does not have any transactions with companies struck off under section 248 of Companies act, 2013.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) Disclosure requirements where company has advanced or loaned or invested funds

(a) During the year, the Company has given Inter Corporate Deposits ('ICD') aggregating to ' 4,206 million to its
subsidiaries, joint ventures and others, which have been further utilised by the said subsidiaries, joint ventures and
others for their business purposes and hence not covered under (b) to (d) below

(b) Details of fund advanced or loaned or invested in Intermediary by the Company

(d) The company has not provided any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(e) The management of the Company declares that, the relevant provisions of the Foreign Exchange Management Act,
1999 (42 of 1999) and the Companies Act has been complied with for above transactions in (a), (b) and (c) above and
such transactions are not violative of the Prevention of Money-Laundering Act, 2002 (15 of 2003).

(vi) 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

i. 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

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company does not have 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).

(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.

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

Reason for variance: Variance is less than 25% hence not applicable.

Signatures to Notes 1 to 60

As per our report of even date attached

For S.R. Batliboi & Associates LLP For and on behalf of the board of directors of

Chartered Accountants Prestige Estates Projects Limited

ICAI Firm registration number: 101049W / E300004 CIN : L07010KA1997PLC022322

per Sudhir Kumar Jain Irfan Razack Rezwan Razack

Partner Chairman & Managing Director Joint Managing Director

Membership No.: 213157 DIN: 00209022 DIN: 00209060

Amit Mor Manoj Krishna JV

Chief Financial Officer Company Secretary

Place: Bengaluru Place: Bengaluru

Date: 29 May 2025 Date: 29 May 2025