Embassy Developments Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2017

1. The Company has adopted Indian Accounting Standards ('Ind AS') from 1 April 2016 as prescribed under section 133 of the Companies Act 2013, read with relevant rules issued thereunder and accordingly, these standalone financial results for all the periods presented have been prepared in accordance with the recognition and measurement principles as stated therein.

2. During the quarter, pursuant to the judgment passed by the Hon’ble Supreme Court of India, a refund of approximately Rs. 70,095 Lakhs, net of tax deducted at source, (being the auction price along with interest) has been received from the Delhi Development Authority ('DDA') by Kenneth Builders & Developers Private Limited (a 100% subsidiary of Indiabulls Infrastructure Limited (formerly Indiabulls Infrastructure Private Limited) ('associate entity')) in relation to the land situated at Village Tehkhand, Maa Anand Mai Marg, New Delhi ('Tehkhand Land') which was earlier allotted by DDA for development of residential project. The Company and FIM Limited (managed by Farallon Capital Management LLC and its affiliates), were holding 26% and 74% equity stake respectively in the associate entity. Further, in compliance with the directions of the Hon’ble Supreme Court of India, possession of the Tehkhand Land has been handed over to DDA. The Company has also acquired entire stake of FIM Limited in associate entity, for a total consideration of approximately Rs. 38,189 Lakhs and with this associate entity has become 100% subsidiary of the Company.

3. Figures for the quarters ended 31 March 2017 and 31 March 2016 represents the balancing figures between the audited figures for the full financial year and published year to date figures upto third quarter of the respective financial year.

4. During the quarter, Indiabulls Infrastructure Limited (formerly Indiabulls Infrastructure Private Limited), a 100% subsidiary of the Company, has acquired 100% stake in India Land and Properties Limited (‘ILPL’) for an aggregate consideration of Rs. 68,500 Lakhs. ILPL owns a commercial complex of 3 towers with a total constructed area of 2.67 million square feet and leasable area of 1.94 million square feet spread over a total land area of over 8.84 acres in Ambattur, Chennai.

5. During the quarter, the Company has further invested in fully paid-up equity shares in one of its wholly owned subsidiary amounting to Rs. 11,595.75 Lakhs.

6. Pursuant to the share buyback offer, during the quarter ended 31 March 2017, the Company has bought back 202.50 Lakhs fully paid up equity shares of Rs. 2 each. This was over and above 80 Lakhs fully paid up equity shares of Rs. 2 each bought back in the previous quarter. Subsequent to the quarter end, the Company further bought back 57.96 Lakhs fully paid equity shares of Rs. 2 each, thereby buying back an aggregate of 340.46 Lakhs fully paid up equity shares of Rs. 2 each for an aggregate consideration of Rs. 27,205.61 Lakhs. The 340.46 Lakhs bought back shares represented 56.74% of the Maximum Offer Shares i.e. 600 Lakhs equity shares and the aggregate consideration of Rs. 27,205.61 Lakhs for 340.46 Lakhs bought back shares represented 50.38% of the Maximum Buyback Size of Rs. 54,000 Lakhs. The Board constituted committee at it’s meeting held on 10 April 2017, thus decided to make an early close to the Company’s buyback offer with effect from 10 April 2017.

7. The Company is evaluating various available restructuring options of streamlining its existing ‘residential', ‘commercial' and ‘leasing' businesses by segregating ‘commercial and leasing' business carried on by itself and/or through its special purpose vehicles (SPVs) and vesting the same into ‘Indiabulls Commercial Assets Limited' (ICAL) (a 100% subsidiary of the Company) and restructuring/reorganizing its businesses by either (i) restructuring by way of placing ICAL as a separate holding company under the Company to hold its assets and investments relating to ‘commercial & leasing' business segment and to undertake the business and operations of ‘commercial and leasing' business segment and/or explore opportunities to bring in strategic investments; or (ii) by reorganizing its existing businesses by way of a demerger of the undertakings, business, activities and operations pertaining to its commercial and leasing business segments.

8. The Company's primary business segment is reflected based on principal business activities carried on by the Company. As per Indian Accounting Standard 108 as notified under the Companies (Indian Accounting Standards) Rules, 2015 as specified in Section 133 of the Companies Act, 2013, the Company operates in one reportable business segment i.e. real estate project advisory and construction and development of infrastructure/real estate projects and is primarily operating in India and hence, considered as single geographical segment.

9. Reconciliation of equity attributable to the shareholders of the Company:



Rs. In Lakhs

As at

31 March 2016

(Audited)

Total equity reported under previous GAAP 634,816.73

Impact of effective interest rate adjustment on borrowings 1,878.63

Impact of financial assets at fair value through profit and loss 1,254.76

Impact of financial assets at fair value through other comprehensive income 15,295.48

Impact of financial assets at amortised cost (20,826.61)

Impact of employee share based payment at fair value 586.68

Deferred tax impact 6,234.21

Total equity under Ind AS 639,239.88





Reconciliation of net profit after tax as previously reported under Indian GAAP and Ind AS for the quarter and year ended 31 March 2016:



3 months ended

31 March 2016

(Audited) Previous year ended

31 March 2016

(Audited)

Net profit as per previous Indian GAAP 11.08 5,515.96

Impact of effective interest rate adjustment on borrowings 1,674.11 1,304.77

Impact of financial assets at fair value through profit and loss 143.27 551.70

Impact of financial assets at amortised cost (1,194.20) 544.69

Impact of employee share based payment at fair value (230.38) (921.50)

Deferred tax impact (127.66) (438.48)

Actuarial gain through other comprehensive income (3.33) (1.95)

Net profit for the period under Ind AS 272.89 6,555.19