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Dhani Services Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

Notes to the unaudited standalone financial results:

1 These standalone financial results of Indiabulls Ventures Limited ('IBVL', 'the Company') for the quarter and nine months ended 31 December 2018 have been reviewed by the Audit Committee and subsequently approved at the meeting of the Board of Directors held on 14 January 2019.

2 The Company has adopted Indian Accounting Standards ("Ind AS") effective 1 April 2018 (transition date being 1 April 2017) and accordingly, these financial results for the quarter and nine months ended 31 December 2018 have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS prescribed under section 133 of the Companies Act, 2013 ('the Act') read with the relevant rules issued thereunder and the other relevant provisions of the Act.

3 The changes in financial reporting requirements arising from new standards, modification to the existing standards, guidelines issued by the Ministry of Corporate Affairs, if any, may result in adjustments to these financial results for the current and previous period.

4 The comparative financial information for the corresponding quarter and nine months ended 31 December 2017 are based on the previously issued standalone financial results, prepared in accordance with the accounting standards specified under Section 133 of the Act, read with the relevant rules issued thereunder and other accounting principles generally accepted in India ('the previous GAAP') and are adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS. The opening balance sheet as at 1 April 2017 and financial statements for the year ended 31 March 2018 would be finalised and subjected to audit at the time of annual financial statements for the year ending 31 March 2019.

5 During the quarter ended 31 December 2018, the Company has issued and allotted an aggregate of 27,985,452 Compulsorily Convertible Debentures of face value of Rs. 550 each ('CCDs'), for a value aggregating to Rs. 153,920 lakhs, to certain foreign investors. These CCDs will be compulsorily converted into fully paid-up equity shares of the face value of Rs. 2 each of the Company (the ‘Equity Shares’), at a conversion price of Rs. 550 per Equity Share (including a premium of Rs. 548 per Equity Share), within eighteen months from the date of the allotment (‘Maturity Date’) and if any or all of the CCDs are not converted prior to the Maturity Date, all of the CCDs, outstanding as on Maturity Date would be compulsorily converted into Equity Shares at a conversion price of Rs. 550/- per Equity Share (including a premium of Rs. 548/- per Equity Share) on the said Maturity Date. Further these CCDs shall bear an interest @ 14.9% p.a., payable quarterly, calculated on the face value of CCDs, commencing from the date of allotment and until the date of conversion into the Equity Shares.

6 The Company engages in stock broking and related activities only. Hence, no separate information for segment wise disclosure is given in accordance with the requirements of Ind AS 108 - Operating Segments.





7 Reconciliation of net profit after tax reported in accordance with the previous GAAP to total comprehensive income reported in accordance with Ind AS is given below for the quarter and nine months ended 31 December 2017:



Particulars "Quarter ended

31 December 2017" "Nine Months ended

31 December 2017"

"Amount

(in Rs. Lakh)" "Amount

(in Rs. Lakh)"

(Unaudited) (Unaudited)

Net profit under the previous GAAP 830.30 4,281.94

Actuarial (loss)/gain on gratuity benefit recognised in other comprehensive income 15.10 20.75

Measurement of employee share based payments at fair value (300.76) (416.51)

Reversal of straightlining of rental expense 4.05 29.32

Financial assets carried at amortised cost 9.62 30.43

Financial liabilities carried at amortised cost (1.20) 6.29

Allowance for expected credit losses (18.56) (18.25)

Impact of financial guarantee 93.50 94.52

Tax impact on above 79.40 98.62

Net profit as per Ind AS 711.45 4,127.11

Other comprehensive income (net of tax) (53.36) (57.90)

Total comprehensive income as per Ind AS 658.09 4,069.21