Garnet Construction Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1. Figures for the quarter ended March 31, 2021 and March 31, 2020 represent the difference between audited figures for the financial year and the limited reviewed figures for the nine month period ended December 31, 2020 and December 31, 2019 respectively. The audited standalone financial results for the year ended March 31, 2021 have been reviewed by the Audit Committee of the Board and subsequently approved by the Board of Directors at its meeting held on June 30, 2021. The statutory auditors have expressed an unmodified audit opinion. The standalone financial results are prepared in accordance with the Indian Accounting Standards (Ind As) as prescribed under section 133 of the companies Act, 2013.



2. Loss reported by the Company for the quarter ended March 31, 2021 is primarily on account of valuation of construction work-in-progress at lower of Cost and Net Realisable Value as per Ind AS 2 on "Inventories".



3. Inventories and work-in-progress are stated at the lower of cost and net realisable value. Net realisable value is determined based on estimated selling price, less further costs expected to be incurred to completion and disposal. Finished goods are valued at raw material cost plus costs of construction, comprising labor costs and an attributable proportion of administration overheads.



4. Since the nature of the real estate business of the Company is such that profit / (loss) does not necessarily accrue evenly over the period, the result of the quarter may not be representative of the profit / (loss) for the period.



5. The Company has aligned its policy of revenue recognition with Ind AS 115 " Revenue from Contracts with Customers " which is effective from April 1, 2018. Accordingly , revenue in realty business is recognised on delivery of units to customers as against recognition based on percentage completion method hitherto in accordance with the guidance note issued by ICAI.



Previous period figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current period's classification.