3.21 Provisions
A provision is recognised when the enterprise has a
present obligation (legal or constructive) as a result
of a past event and it is probable that an outflow
of resources embodying economic benefit will be
required to settle the obligation, and a reliable
estimate can be made of the amount of obligation.
Provisions are not discounted to their present value
and are determined based on 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.
3.22 Contingent liabilities and contingent assets
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 standalone financial statements.
Contingent assets are disclosed only when inflow
of economic benefits therefrom is probable and
recognized only when realization of income is
virtually certain.
3.23 Onerous contracts
A contract is considered to be onerous when the
expected economic benefits to be derived by the
Company from the contract are lower than the
unavoidable cost of meeting its obligations under
the contract. The provision for an onerous contract
is measured at the present value of the lower of the
expected cost of terminating the contract and the
expected net cost of continuing with the contract.
Before such a provision is made, the Company
recognises any impairment loss on the assets
associated with that contract.
3.24 Significant accounting judgements, estimates and
assumptions
The preparation of standalone financial statements
in conformity with the recognition and measurement
principles of Ind AS requires management to make
judgements, estimates and assumptions that affect
the reported balances of revenues, expenses, assets
and liabilities and the accompanying disclosures, and
the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result
in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in
future periods.
Judgements
In the process of applying the accounting policies,
management has made the following judgements,
which have the most significant effect on the amounts
recognised in the standalone financial statements:
Classification of property
The Company determines whether a property is
classified as investment property or inventory:
The Company is developing a township project
containing various types of real estate development.
Based on the intention of use, the land and related
development cost have been classified as either
investment property, property plant & equipment or
have been inventorised.
Investment property comprises land and buildings
(principally offices, commercial and school property)
that are not occupied substantially for use by, or in
the operations of, the Company, nor for sale in the
ordinary course of business, but are held primarily to
earn rental income and capital appreciation. These
buildings are substantially rented or intended to be
rented to tenants and not intended to be sold in the
ordinary course of business. Inventory comprises of
property that is held for sale in the ordinary course
of business. Principally, this is residential property that
the Company develops and intends to sell before or
on completion of construction/development.
The Company based its assumptions and estimates
on parameters available on the reporting period
about future developments. The above judgements
may change due to market changes or circumstances
arising that are beyond the control of the Company.
Such changes are reflected in the assumptions
when they occur.
3.25 Earnings before finance costs, depreciation,
amortisation and tax
The Company has elected to present earnings before
finance cost, depreciation, amortisation and tax as
a separate line item on the face of the Statement of
Profit and Loss.
3.26 Leases
A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a
period of time in exchange for consideration.
Company as a lessee
The Company, at the inception of a contract,
assesses whether the contract is a lease or not lease.
To assess whether a contract conveys the right to
control the use of an identified asset, the Company
assesses whether:
(i) the contract involves the use of an identified asset;
(ii) the Company has the right to obtain substantially
all the economic benefits from use of the asset
throughout the period of use; and
(iii) the Company has the right to direct the
use of the asset.
Right-of-use assets
The Company recognises right-of-use asset
representing its right to use the underlying asset for the
lease term at the lease commencement date. The cost
of the right of-use asset measured at inception shall
comprise of the amount of the initial measurement
of the lease liability adjusted for any lease payments
made at or before the commencement date less any
lease incentives received, plus any initial direct costs
incurred and an estimate of costs to be incurred by
the lessee in dismantling and removing the underlying
asset or restoring the underlying asset or site on which
it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted
for any re-measurement of the lease liability. The
right-of-use assets is depreciated using the straight¬
line method from the commencement date over the
shorter of lease term or useful life of right-of-use asset
unless the lease transfers ownership of the underlying
assets to the Company by the end of the lease term
or the cost of the right-of-use asset reflects that the
Company will exercise a purchase option. In that case
right-of-use asset will be depreciated over the useful
life of the underlying asset, which is determined on the
same basis as those of plant property and equipment.
Right of-use assets are tested for impairment
whenever there is any indication that their carrying
amounts may not be recoverable. Impairment loss, if
any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the
present value of the lease payments that are not
paid at the commencement date of the lease or
transition to Ind AS 116 (Leases), whichever earlier.
The lease payments are discounted using the interest
rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined,
the Company uses incremental borrowing rate. For
leases with reasonably similar characteristics, the
Company, on a lease by lease basis, may adopt
either the incremental borrowing rate specific to
the lease or the incremental borrowing rate for the
portfolio as a whole. The lease payments shall include
fixed payments, variable lease payments, residual
value guarantees, exercise price of a purchase
option where the Company is reasonably certain to
exercise that option and payments of penalties for
terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease.
The lease liability is subsequently re-measured by
increasing the carrying amount to reflect interest on
the lease liability, reducing the carrying amount to
reflect the lease payments made and re-measuring
the carrying amount to reflect any reassessment or
lease modifications or to reflect revised in-substance
fixed lease payments. The Company recognises the
amount of the re-measurement of lease liability due
to modification as an adjustment to the right-of-use
asset and statement of profit and loss depending
upon the nature of modification. Where the carrying
amount of the right-of-use asset is reduced to zero
and there is a further reduction in the measurement
of the lease liability, the Company recognises
any remaining amount of the re-measurement in
statement of profit and loss.
The Company applies the low-value asset
recognition exemption on a lease-by-lease basis, if
the lease qualifies as leases of low-value assets. In
making this assessment, the Company also factors
below key aspects:
• The assessment is conducted on an absolute
basis and is independent of the size, nature, or
circumstances of the lessee.
• The assessment is based on the value of the
asset when new, regardless of the asset's age at
the time of the lease.
• The lessee can benefit from the use of the
underlying asset either independently or in
combination with other readily available
resources, and the asset is not highly dependent
on or interrelated with other assets.
• If the asset is subleased or expected to be
subleased, the head lease does not qualify as a
lease of a low-value asset.
Lease payments on short-term leases and leases
of low-value assets are recognised as expense on a
straight-line basis over the lease term.
The company presents the right-of-use asset in the
appropriate line item of the balance sheet as if they
were owned and disclose in the notes the line items
which include such assets.
3.27 Debenture Redemption Reserve
In accordance with section 71 of the Companies Act,
2013 read along with circular issued by Ministry of
Corporate Affairs No 4/2013 the Company is required
to create a debenture redemption reserve amounting
to 10% of the value of redeemable debentures out
of profits of the Company available for distribution.
During the year ended March 31, 2026 and March 31,
2025, there are no profits available for distribution
hence there is no requirement to create a debenture
redemption reserve.
3.28 Unbilled Revenue
A contract asset is the right to consideration in
exchange for goods or services transferred to the
customer. The Company based on the contractual
terms and past experience determines the
performance obligation satisfaction over time.
Unbilled revenue is recognised for the service
rendered where final invoice is not raised for the
service. Unbilled revenue is disclosed under "financial
assets" in balance sheet.
3.29 Share Warrants
Share warrants issued by the Company entitle the
holders to subscribe to equity shares of the Company
at a predetermined exercise price within the specified
exercise period, subject to the terms and conditions
of the warrant issue.
The consideration received on issue of share
warrants, including any upfront subscription amount,
is recognised within equity as Share Warrant
Application Money Pending Allotment, where the
warrants satisfy the definition of an equity instrument
under applicable accounting standards. Such amount
is not subsequently remeasured.
Upon exercise of the warrants, the amount received
on issue of the warrants together with the balance
consideration received on exercise is transferred
to Equity Share Capital and Securities Premium,
as appropriate.
Where the warrants lapse or expire unexercised,
the amount received on issue of such warrants is
transferred within equity to an appropriate reserve
in accordance with the applicable provisions of the
Companies Act, 2013 and other applicable regulatory
requirements. No gain or loss is recognised in the
Statement of Profit and Loss on such lapse or expiry.
3.30 Employee Benefits
Employee benefits are recognised as an expense in
the Statement of Profit and Loss when the related
service is rendered by employees.
a) Short-term employee benefits
Short-term employee benefits, including salaries,
wages, bonus, expected to be settled wholly
within twelve months after the end of the
reporting period, and other employee benefits,
are recognised as an expense in the period
in which the related services are rendered.
Liabilities for such benefits are measured at the
undiscounted amount expected to be paid.
b) Defined contribution plans
The Company's contributions to defined
contribution plans, including provident fund,
employee state insurance and other applicable
statutory contribution schemes, are recognised
as an expense in the Statement of Profit and Loss
in the period during which the employees render
the related services. The Company has no further
obligation beyond its contributions to such plans.
c) Defined benefit plans
The Company's gratuity obligation is a defined
benefit plan. The liability recognised in the
Balance Sheet in respect of the defined benefit
plan is the present value of the defined benefit
obligation at the reporting date, less the fair
value of plan assets, where applicable.
The defined benefit obligation is determined
annually by an independent actuary using the
projected unit credit method. The present value
of the obligation is determined by discounting
the estimated future cash outflows using market
yields at the reporting date on government
bonds that have terms approximating the terms
of the related obligation.
Remeasurements comprising actuarial gains
and losses, the return on plan assets (excluding
amounts included in net interest on the net
defined benefit liability/asset), and any change
in the effect of the asset ceiling are recognised
immediately in Other Comprehensive Income
and are not reclassified to the Statement of
Profit and Loss in subsequent periods.
Past service cost is recognised immediately in
the Statement of Profit and Loss in the period of
a plan amendment or curtailment. Net interest
on the net defined benefit liability (asset) is
recognised in finance costs.
The Company measures its gratuity obligation
based on the applicable provisions of the Code
on Social Security, 2020 and the rules notified
thereunder, to the extent such provisions are
applicable as at the reporting date.
d) Other long-term employee benefits
Liabilities for long-term compensated absences
and other long-term employee benefits are
determined using the projected unit credit
method at the reporting date. Actuarial gains
and losses arising from remeasurements are
recognised immediately in the Statement of
Profit and Loss.
e) Termination benefits
Termination benefits are recognised as an
expense when the Company can no longer
withdraw the offer of those benefits or when the
Company recognises costs for a restructuring
that is within the scope of the applicable
accounting standards and involves the payment
of termination benefits, whichever is earlier.
3.31 Employee Share-based Payments
The Company accounts for employee share-based
payment arrangements in accordance with the
principles of Ind AS.
Equity-settled share-based payments are measured
at the fair value of the stock options on the grant
date. The grant date fair value is recognised over
the vesting period based on the best estimate of the
number of options expected to vest.
Where stock options are granted to employees of the
Company, the grant date fair value is recognised as an
employee benefit expense in the Statement of Profit
and Loss, with a corresponding credit to the Employee
Stock Options Outstanding Account under equity.
Where stock options are granted by the Company to
employees of its subsidiary companies, the grant date
fair value of such options is recognised as an increase
in the carrying amount of the Company's investment
in the respective subsidiary, with a corresponding
credit to the Employee Stock Options Outstanding
Account under equity. Such amounts are recognised
over the vesting period based on the estimate of the
number of options expected to vest.
The estimate of the number of options expected to
vest is revised at each reporting date, and the impact
of any revisions is recognised prospectively over the
remaining vesting period.
Upon exercise of the options, the proceeds received
together with the balance standing in the Employee
Stock Options Outstanding Account relating to such
options are transferred to equity share capital and
securities premium, as applicable.
Options that lapse or are forfeited due to failure
to satisfy vesting conditions are reversed to the
extent required under the applicable accounting
standard. Upon expiry of vested options that remain
unexercised, the balance in the Employee Stock
Options Outstanding Account relating to such options
is transferred within equity, without any impact on the
Statement of Profit and Loss.
3.32 Recent accounting pronouncements
i) Standards issued and made effective
The Ministry of Corporate Affairs ("MCA") notified
new standards or amendment to existing
standards under Companies (Indian Accounting
Standards) Rules 2015 as issued from time to time.
1. Amendments to Ind AS 1 - Classification of
liabilities as current or non-current liabilities with
covenants
MCA via notification dated August 13, 2025
announced amendments to Ind AS 1, Presentation
of Financial Statements, which elaborate on
guidance set out in Ind AS 1 by:
• Clarifying that the right to defer settlement
of a liability for at least 12 months after the
reporting period;
- Must have substance; and
- Must exist at the end of the
reporting period;
• Stating that management’s expectations
around whether the settlement of a liability
would be deferred or not, does not impact
the classification of the liability;
• Including requirements of liabilities that
can be settled using an entity’s own
instruments; and
• Stating that at the reporting date, the entity
does not consider covenants that will need
to be complied with in the future when
considering the classification of the debt as
current and non-current.
In addition an entity is required to disclose
when a liability arising from a loan agreement
is classified as non-current and the entity’s right
to defer settlement is contingent on compliance
with future covenants within twelve months.
The amendments have resulted in additional
disclosures (refer Note 13), but have not had
an impact on the classification of the Group’s
liabilities as at the balance sheet date.
2. Amendments to Ind AS 21 - Lack of
exchangeability
MCA via notification dated May 07, 2025,
announced amendments to Ind AS 21, The effects
of Changes in Foreign Exchange Rates, to specify
how an entity should assess whether 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.
The amendments do not impact on the
Company’s financial statements.
3. Amendments to Ind AS 7 and Ind AS 107 - Supplier
finance arrangements
MCA via notification dated August 13, 2025
announced amendments to Ind AS 7, Statement
of Cash Flows and Ind AS 107, Financial Instrument:
Disclosures and which introduced disclosure
requirements with the objective to enable users
of financial statements to assess how supplier
finance arrangements affects an entity’s
liabilities, cashflows and exposure to liquidity risk.
The amendments do not impact on the
Company’s financial statements.
4. Amendments to Ind AS 12 - International tax
reform - pillar two model rules
MCA via notification dated August 13, 2025
announced amendments to Ind AS 12, Income
taxes, which includes:
• A temporary exception to the recognition
and disclosure of deferred taxes arising
from the implementation of the pillar two
model rules; and
• Additional disclosure requirements targeted
at a reporting entity’s exposure to income
taxes in period in which the pillar two model
legislation is enacted or substantively
enacted but not yet in effect.
• The amendments do not impact on the
Company’s financial statements.
ii) Standards notified but not yet effective
During the year ended March 31, 2026,
MCA has notified following new standards
or amendments to the existing standards
applicable to the Company:
1. Amendments to Ind AS 1 - Classification of liabilities
as current or non-current liabilities with covenants
Paragraph 74 of Ind AS 1 currently effective
for the year ended March 31, 2026 requires
the entity not to classify the liability as
current, if there is a breach of a material
covenant of a long-term loan arrangement
on or before the end of the reporting
period with the effect that the liability
becomes payable on demand on the
reporting date, however, the lender agreed,
after the reporting period and before
the approval of the financial statements
for issue, not to demand payment as a
consequence of the breach.
MCA vide notification dated August 13,
2025, has introduced amendment under
paragraph 74 of Ind AS 1 which required
the entity to classify the liability under
the aforementioned situation because,
at the end of the reporting period, it does
not have the right to defer its settlement
for at least twelve months after that date.
Such amendment has been made effective
for annual reporting period beginning on
or after April 01, 2026 retrospectively in
accordance with Ind AS 8.
The amendment is not expected to have
a material impact on the Company’s
financial statements.
i) Investment property comprises of cost of freehold land at Embassy Springs, freehold land at Boulevard Club, building
and other assets at Boulevard Club.
ii) A part of the investment properties have been leased out to lessees / held for lease on operating lease basis.
iii) Plant and machinery, furniture and fixtures , electrical equipments , office equipments , computers and operating
supplies are physically attached to the building and are an integral part thereof; hence, they are considered as part
of investment property.
iv) Refer note 45 for disclosure of contractual commitments for the acquisition of investment properties.
(b) Determination of Fair value
The fair value of investment property has been determined by external independent property valuers, having
appropriate recognised professional qualifications and recent experience in the location and category of the
property being valued. The independent valuers provide the fair value of the investment property annually.
The Company has used "Direct Comparison Method", "Discounted Cash Flow Method" and "Depreciated Replacement
Cost Method" for assessing the fair value of the property as on March 31, 2026 and as on March 31, 2025.
The "Direct Comparison Method" is based on the comparison of the property to similar positioned properties in the
region. Wherein, the property is accorded premium / discounts based on various factors to arrive at achievable
market value of the property as on the date of valuation. The result is the best estimate of value, the valuer can
attribute and is an estimate. This methodology uses market information such as quoted / transacted value of
various comparable.
The "Depreciated Replacement Cost Method" is adopted to value the existing built-up structures at the subject
property. In this approach, the current replacement cost of the structures (given the current condition of the property)
is evaluated after giving regards to parameters such as construction specifications, age of the building, etc. and the
same is depreciated based on parameters such as age, remaining useful life, etc. of the structures to assess the
depreciated replacement cost of the existing built-up structure at the subject property.
In the "Discounted Cash Flow Method", the future cash flows from the property are forecasted using precisely stated
assumptions. This method allows for the explicit modelling of income associated with the property. These future
financial benefits are then discounted to a present day value at an appropriate discount rate.
Para 97 of Ind AS 113 Fair value measurements states that for each class of assets and liabilities not measured at fair
value in the balance sheet but for which the fair value is disclosed, an entity shall disclose the information required
by paragraph 93(b), (d) and (i). However, the said para states that an entity is not required to provide the quantitative
disclosures about significant unobservable inputs used in fair value measurements categorised within Level 3 of
the fair value hierarchy required by paragraph 93(d). Therefore, no disclosure in relation to sensitivity analysis of
significant unobservable inputs used in fair value measurements of Investment property and Investment property
under development (including capital advances) has been provided in the standalone financial statements.
The fair value measurement for all of the investment property has been categorised as a Level 3 fair value based on
the inputs to the valuation technique used.
(c) Restriction on realisability
The above said property is placed as collateral security for the secured loan availed by the Company.
Refer note 24 for information on charge created.
(d) Reclass from Investment property to inventories
During the year ended March 31, 2026, the Company reclassified certain land from investment property to inventories
based on a change in its intended use.
i) Investment property under development comprises of infrastructure cost incurred for the development of property
predominantly for the club house and school development.
ii) Refer note 73 for Investment property under development ageing schedule.
iii) During the year ended March 31, 2026, the Company reclassified certain assets from investment property under
development to inventories consequent to a change in the intended use of the underlying land.
Note (a): The Company has placed the shares held as security against loan taken by Embassy Orange Developers
Limited (formerly known as Embassy Orange Developers Private Limited).
Note (b): The Company accounted for the impairment of investments in equity shares of Summit Developments
Limited (formerly known as Summit Developments Private Limited) based on a fair valuation report.
Note (c) : The Company has opted to account for investments in subsidiaries, joint ventures and associates at cost as
per Ind-AS 27 'Separate financial statements.
A The investments are being carried at zero value pursuant to a business combination (refer note 50).
$ The investments are pledged towards Non-convertible debentures issued by certain subsidiary companies.
* The investments are sold during the year to its subsidiaries.
# The companies have been struck off during the year.
Refer note 48 for information on subsidiaries and step down subsidiaries of the Company.
(iii) Rights, preferences and restrictions attached to equity shares and preference shares
The holders of equity shares are entitled to receive dividends as declared from time to time, and are entitled to one
vote per share at meetings of the Company. In the event of liquidation of the Company, all preferential amounts, if
any, shall be discharged by the Company. The remaining assets of the Company shall be distributed to the holders
of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date.
All shares rank equally with regard to the Company’s residual assets, except that holders of preference shares
participate only to the extent of the face value of the shares.
(v) Shares allotted by way of bonus shares and for consideration other than cash
During the year ended March 31, 2025, the Company had issued 60,91,05,999 equity shares pursuant to a scheme of
amalgamation (refer note 50). There have been no issue of shares by way of bonus shares or issue of shares pursuant
to contract without payment being received in cash for the period of five years immediately preceding the balance
sheet date apart from the above mentioned 60,91,05,999 shares issued pursuant to a scheme of amalgamation.
(vi) During the year ended March 31, 2021, the Company, through its established trust “EMBDL - Employee Welfare Trust
(formerly known as 'Indiabulls Real Estate Limited - Employees Welfare Trust')“ (“the trust”) had in compliance with
SEBI (Share Based Employee Benefits) Regulations, 2014 purchased its 31,25,164 equity shares from the open market,
for the implementation and administration of its employees benefit schemes. During the year ended March 31, 2023,
the trust had sold 25,25,164 equity shares in the open market and passed on the benefit to the Company which in
turn passed on the benefit to the eligible employees. The trust still holds 6,00,000 equity shares of the Company as
at the year ended March 31, 2026 (March 31, 2025: 6,00,000 equity shares). The face value of these shares have been
deducted from the paid-up share capital of the Company.
(vii) Aggregate number of shares bought back
There have been no buy back of shares for consideration other than cash for the period of five years immediately
preceding the balance sheet date.
(viii) During the year ended March 31, 2025, the Company had allotted 9,13,55,606 equity shares of face value of H 2 per
share through preferential allotment and received on amount aggregating to H 10,187.06 millions.
(ix) Share warrants*
During the year ended March 31, 2025, pursuant to the approval of the shareholders and in accordance with
the applicable provisions of the Companies Act, 2013 and Chapter V of the SEBI (Issue of Capital and Disclosure
Requirements) Regulations, 2018, the Company issued share warrants on a preferential basis to identified investors.
Each warrant is convertible into one fully paid-up equity share of the Company upon payment of the exercise
price within the prescribed exercise period of 18 months from the date of allotment. Upon exercise of the warrants
and receipt of the consideration, the Company allots the corresponding equity shares, which rank pari passu in all
respects with the existing equity shares of the Company.
Nature and purpose of other reserves:
(a) Capital reserve
The balance represents (i) excess of net assets acquired over the consideration transferred pursuant to an
amalgamation, and (ii) share warrant application money forfeited in accordance with Regulation 169(3) of Chapter
V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations.
(b) Securities premium
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilized in accordance
with the provision of Section 52(2) of Companies Act, 2013.
(c) Retained earnings
Retained earnings are the profits/(loss) that the Company has earned till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders. Retained earnings include re-measurement (loss)/gain on
defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.
(d) Equity portion of interest free loans
It represents the equity component arising on fair valuation of the said loans as required under Ind AS 109. During the
year ended March 31, 2026, the reserve has been moved to retained earnings.
(e) Equity portion of corporate guarantee received (net of guarantee given)
It represents the equity component arising on fair valuation of the corporate guarantee on loan taken and given as
required under Ind AS 109. During the year, to the extent of corporate gurantee given (net of received) and which are
extingused, the respective equity components are transferred to retainted earnings.
(f) Equity component of compulsorily convertible debentures
It represents the equity component arising from the fair valuation of debentures as required under Ind AS 109. During
the year ended March 31, 2025 the compulsorily convertible debentures were converted into equity shares, and the
related equity component was reclassified into equity share capital and securities premium.
(g) Share based payment reserve
The Company had created “EMBDL - Employee Welfare Trust (formerly known as 'Indiabulls Real Estate Limited -
Employees Welfare Trust')” (”the trust”) for the implementation of schemes namely employees stock options plans,
employees stock purchase plan and stock appreciation rights plan. The Company treats the trust as its extension
and the Company’s own shares held by the trust are treated as treasury shares. The premium over face value of the
acquired treasury shares are presented as a deduction from the securities premium. The original cost of treasury
shares and the proceeds of any subsequent sale are presented as movements in equity.
During the year ended March 31, 2026, the Company has launched a new Employee Stock Option Scheme - 2025
('ESOS 2025'). For further details, refer note 62.
(h) General Reserve
Pursuant to the Scheme of Amalgamation being accounted for as a reverse acquisition under Ind AS 103, the
legal share capital of the Company reflects the equity shares issued by Embassy Developments Limited (formerly
known as Equinox India Developments Limited and earlier known as Indiabulls Real Estate Limited), while the pre¬
combination share capital of NAM Estates Private Limited, being the accounting acquirer, has been reclassified to
General Reserve. Accordingly, the balance in General Reserve includes the historical share capital of the accounting
acquirer as at the effective date of the Scheme.
(a) Non-convertible debentures (“NCDs“) - balance as at March 31, 2026: K 2,821.76 millions (as at March 31, 2025:
Nil). The unamortized upfront fees on borrowing amounts to K 18.76 millions (March 31, 2025: Nil)
The Company entered into debenture trust deed dated January 29, 2026 for issue of 40,000 unlisted, unrated,
secured, redeemable NCDs having face value of H 0.100 million each for an aggregate of H 4,000.00 millions. During
the year ended March 31, 2026, the Company has issued 27,500 NCDs aggregating to H 2,750.00 millions.
The NCDs carry a coupon rate of 11.00% per annum compounded monthly with a total yield of 18.30% per annum on
internal rate of return (“IRR“) basis.
The NCDs are redeemable at 10% each in quarterly tranches commencing from April 30, 2027. The NCD are fully
redeemable by July 31, 2029.
Secured by way of mortgage of below properties:
1. A first-ranking exclusive mortgage over, inter alia, all piece and parcel of land admeasuring 10.689 acres (43,260.17
square meter) (“the Project Land”) carved out of 14 acres 13.66 guntas, situated at Hegganahalli village, Kundana
hobli, Devanahalli Taluk, Bengaluru in favour of the debenture trustee.
2. A first-ranking exclusive charge over, inter alia ,all rights, title, interest, benefits, claims and demands in all
receivables, bank accounts, movable assets, current and general assets and intangible assets w.r.t The Project
Land in favour of the Debenture Trustee.
(b) HDFC Bank Limited - balance as at March 31, 2026, including current maturities of long-term debt: K 7,000.37
millions (as at March 31, 2025, including current maturities of long-term debt: K 12,136.33 millions). The
unamortized transaction cost on borrowing amounts to K 24.47 millions (March 31, 2025: K 66.07 millions)
1. As per the terms & conditions, borrowings are guaranteed by JV Holding Private Limited, Embassy Property
Development Private Limited, Embassy Infra Developers Limited (formerly known as Embassy Infra Developers
Private Limited), Udhyaman Investments Private Limited, OMR Investments LLP and Grove Ventures.
2. Personal guarantee of a Director and a relative of the director of the Company.
3. Mortgage of scheduled receivable of sold and unsold units under the documents entered into with the customers
of the projects. Scheduled receivable are the receivable/cash flows/revenues including booking amounts arising
out of or in connection with or relating to the above projects.
4. Applicable rate of interest as may be fixed or revised time to time.
5. Repayment terms:
Company will ensure that the maximum principal outstanding from the date of first disbursement of the loan
does not exceed as per the schedule below:
(c) Kotak Mahindra Bank Limited - balance as at March 31, 2026: J 254.65 millions (as at March 31, 2025: Nil). The
unamortized upfront fees on borrowing amounts to J 5.03 millions (March 31, 2025: Nil)
The applicable rate of interest shall be Kotak MCLR plus 1.95% (applicable MCLR period 1 year)
The loan shall be repayable in quarterly tranches of H 250.00 millions each commencing from January 16, 2028.
Secured by way of mortgage of below properties:
1. A first-ranking and exclusive mortgage over 96,427 and 78,622 square meter of Floor Area Ratio (“FAR“) utilised
for construction and development of Project Embassy Verde and Embassy Edge arising out of total project land
admeasuring to 37 acres 37 guntas situated at Hegganahalli Village and Nagamangala Village, Devanahalli
Taluk, Bengaluru.
2. A first-ranking and exclusive charge over the project receivables and Escrow account /any other investments
where the project receivables are held.
3. A first-ranking pari-passu charge over the amenities developed / to be developed on 5,620 square meter of FAR
arising out of total project land.
(d) Vehicle Loans from Kotak Mahindra Prime Limited - amounting to: J 23.06 millions (March 31, 2025: J 55.14
millions) - including current maturities of long term debt
(i) Secured by hypothecation of motor vehicles.
(ii) These loans carry an interest rate of 7.74% to 10.07%.
(iii) The principal amount has to be repaid up to 60 equated monthly instalments.
(e) Vehicle Loans from Axis Bank, ICICI Bank and HDFC Bank - amounting to: J 190.24 millions (March 31, 2025:
J 143.19 millions) - including current maturities of long term debt
(i) Secured by hypothecation of motor vehicles.
(ii) These loans carry an interest rate of 7.60% to 10.01%.
(iii) The principal amount has to be repaid up to 60 equated monthly instalments.
(f) Inter-corporate deposits from related party
The Company has availed inter-corporate deposits from a related party. The inter-corporate deposits is repayable
on such intervals as may be agreed upon by the parties. The inter-corporate deposits outstanding as on March 31,
2026 is Nil (March 31, 2025: H 7,195.43 millions). Interest rate applicable to the inter-corporate deposits is 13.25% p.a.
effective from January 25, 2025.
*Refer note 49 for details of transactions with related parties.
includes interest accrued.
(a) During the year ended March 31, 2025, the Company had issued 1,200 unlisted, non-convertible debentures ('NCDs')
of H 1.00 million each. The NCDs are carrying an interest rate of 12.00% per annum. The NCDs have been repaid on
September 5, 2025.
(b) Inter - corporate deposit from related parties
The Company has availed various inter-corporate deposits from related parties as stated below:
i) Interest free inter-corporate deposits amounting to H 5,433.96 millions (March 31, 2025: H 1,494.78 millions);
ii) Inter-corporate deposits of H 1,643.37 millions (March 31, 2025: H 1,551.90 millions) (including interest accrued) at
interest rate of 9.50% per annum;
iii) Inter-corporate deposits of H 1,412.07 millions (March 31, 2025: H 1,658.75 millions) (including interest accrued) at
interest rate of 6.50% per annum;
iv) Inter-corporate deposits of H 257.49 millions (March 31, 2025: H 181.29 millions) (including interest accrued). Interest
rate applicable to the inter-corporate deposits is 13.25% per annum effective from January 25, 2025.
All the above inter-corporate deposits are repayable on demand.
(c) Intercorporate deposit from others
The Company has availed inter-corporate deposit of H730.00 millions from others with interest rate 18.00% p.a. The
outstanding balance as on March 31, 2026 is Nil (March 31, 2025: H 730.00 millions).
44 Exceptional Items
a) During the year ended March 31, 2025, the exceptional item of H 280.00 millions pertains to stamp duty payable for
transferring the title of the assets pursuant to the scheme of amalgamation (refer note 50). During the year ended
March 31, 2026, there has been a reversal of H 5.00 millions on actualisation of stamp duty cost.
b) Effective November 21, 2025, the Government of India consolidated 29 existing labour regulations into four labour
codes, namely, the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and
the Occupational Safety, Health and Working Conditions Code, 2020, collectively referred to as the ‘New Labour
Codes’. The New Labour Codes have resulted in a one-time material impact in provision for employee benefits on
account of recognition of past service costs. Based on the requirements as per the New Labour Codes and relevant
Accounting Standard, the Company has assessed and accounted the estimated impact as exceptional Item in the
statement of profit and loss for the year ended March 31, 2026 amounting to H 8.44 millions. Upon notification of
the related rules to the New Labour Codes by the Government and any further clarification from the Government
on other aspects of the New Labour Codes, the Company will evaluate and account for additional impact, if any,
determined in subsequent periods.
Note
(a) H 4.37 millions pertains to Mariana Infrastructure Limited (erstwhile wholly owned subsidiary) which has been sold
during the year ended March 31, 2020 and as per definitive agreement, any tax demands relating to periods prior to
the date of definitive agreement shall be borne by the Company. The matter is pending before CIT(A).
(b) The Company has filed an appeal before the Additional Commissioner (Appeals-II) against demand received for
H 2.23 millions for the period July 2017 to March 2018. The Company has paid H 0.22 millions under protest.
(c) The Company has received a demand of H 186.27 millions for the FY 2019-20 w.r.t short payment of tax for amount
received from Government of Maharashtra for cancellation of agreement to construct public library. The Company
is yet to file appeal.
(d) The Company has provided support letter to several of its subsidiaries wherein it has accepted to provide the
necessary level of financial support to enable the subsidiary to operate as a going concern and meet its obligations
as and when they fall due.
(e) The Company has received favourable orders from the Income Tax Appellate Tribunal (ITAT) in respect of the income
tax matters pertaining to Assessment Years 2018-19 and 2022-23. The Income Tax Department has filed appeals
before the Hon’ble High Court of Bombay against the said orders. The aggregate amount involved in these matters
is H 32.07 million. Accordingly, the matter continues to be disclosed as a contingent liability.
(f) The Company had filed appeals against various demands raised by the Income Tax and Goods and Services
Tax (GST) authorities. These appeals have been decided in favour of the Company. Subsequently, the respective
authorities have filed further appeals before the appropriate appellate forums, which are pending adjudication
as at the reporting date. Based on the favourable orders received and the merits of the cases, the management
believes that no material outflow of economic resources is expected in respect of these matters.
46 Other litigations
(a) The Company has several cases pending against it towards the title of land acquired by it. Management, based on
legal advice obtained and also based on the court rulings (in favour of the Company), believe that the title to the
land held by it is good and marketable. The future expected cash outflow out of the above pending cases/litigations
cannot be ascertained, hence no amounts has been quantified.
(b) The Company has received stay order from Hon’ble High Court of Karnataka on levy of GST on corporate guarantee.
In view of the stay granted to the Company, the matter is subjudice and the Company is of the opinion that no
provisioning is required w.r.t the levy of GST.
(c) Certain buyers of residential projects being developed by the subsidiary companies (“Developer”) of
Embassy Developments Limited (formerly known as Equinox India Developments Limited and earlier known
as Indiabulls Real Estate Limited) (“EDL” / “the Company”) have filed their grievances against the respective
Developer(s) before different Courts / Forums/ Authorities etc., wherein though they have made EDL, as
a party to the complaint, without seeking any specific relief against the Company. The Company has
responded to the complaints, stating that there are no allegations against the Company and has no role in
the alleged transaction, as the Company is neither a developer of the project nor any payment made by
any allottee to the Company. As such the name of the Company is to be deleted from the array of the parties.
Based on the above facts and defence taken in these matters and the independent legal advice from the Counsels,
the management believes that there is a reasonable likelihood that there is no liability that will devolve on the
Company in respect of these matters.
(d) The Company had a wholly owned subsidiary M/s Sinnar Thermal Power Limited (“STPL”) which was carrying on
power generation business. Subsequently in the financial year 2010-2011 STPL was demerged into a third party entity.
Post demerger STPL was not under the control of the Company and was managed by a separate promoter entity not
related to the Company viz Rattan India Power Limited and Rattan India Enterprises Limited (the New Promoters).
During the previous years, financial years 2010-2011, 2013-2014, and 2016-2017, STPL had approached a consortium
of banks for certain credit facilities. Accordingly, along with other consortium members, the lender, then known as “
Syndicate Bank”, specifically sanctioned credit facilities aggregating to H 1,444.00 millions to STPL. The Company had
issued a conditional corporate guarantee guaranteeing equity infusion into STPL only in case if equity is not infused
by the New Promoters. Further post demerger and transfer of control to New Promoter in the financial year 2017-18,
STPL defaulted in repayment of facilities availed from the consortium and was classified as a Non-Performing Asset
(NPA) and is undergoing CIRP process.
The lender invoked the corporate guarantee on the Company and the New Promoters pursuant to which, a Corporate
Insolvency Resolution Process (“CIRP”) and related appointment of an Interim Resolution Professional (“IRP”) was
initiated against the Company through an order dated December 9, 2025 of the National Company Law Tribunal
(“NCLT”), Delhi Bench, under the provisions of the Insolvency and Bankruptcy Code, 2016 (“Code”).
Immediately pursuant to the CIRP being initiated against the Company, the Company had filed an appeal with
National Company Law Appellate Tribunal (“NCLAT”) and vide NCLAT’s order dated December 11, 2025, the CIRP and
IRP appointment has been stayed pending adjudication of the appeal by NCLAT. Subsequent to detailed hearings,
NCLAT pronounced its judgement on May 04, 2026, allowing the Company’s appeal and dismissing the Section 7
application filed by the lender. Pursuant to this order, the Parent Company is no longer under CIRP.
Apart from the above, as of March 31, 2026, and March 31, 2025, there are no contingent liabilities and commitments
to be reported.
(v) The Company has entered into lease arrangements that include extension and termination options. These
options are negotiated to provide operational flexibility and enable the Company to align its lease commitments
with its business requirements. Management applies significant judgement in assessing whether it is reasonably
certain that such extension or termination options will be exercised. Accordingly, the lease term used for
measuring the lease liability and the corresponding right-of-use asset reflects the period determined by
management, including the impact of extension and termination options where their exercise is considered
reasonably certain.
49 Related party transactions
The Hon'ble National Company Law Appellate Tribunal, New Delhi Bench, ("NCLAT") on January 07, 2025 approved the
scheme of amalgamation of NAM Estates Private Limited ("NAM") and Embassy One Commercial Property Developments
Private Limited ("EOCPDPL") with Embassy Developments Limited ("EDL") and their respective shareholders and creditors
("Scheme") pursuant to sec 230 to 232 of the companies Act, 2013 and other applicable provisions of the Act, read with
Companies (Compromises, Arrangements and Amalgamations) Rules, 2016. Pursuant to the NCLAT Order, EDL and Nam
have filed the certified true copy of the court order with the respective jurisdictional Registrar of Companies on January
24, 2025 thereby giving effect to the Scheme ("Effective date").
Subsequent to the Scheme becoming effective, existing shareholders of NAM, that is, JV Holding Private limited ("JVHPL")
along with its subsidiaries/affiliates became largest shareholder of the Company and was declared as promoter/
promoter group of the Company. Hence, the business acquisition has been treated as reverse acquisition for financial
reporting purposes in accordance with Ind AS 103, with NAM as the accounting acquirer/legal acquiree and Embassy
Developments Limited as accounting acquiree/ legal acquirer.
Accordingly, these standalone financials presented under the name of Embassy Developments Limited (legal acquirer)
represents the continuation of the standalone financials of NAM (accounting acquirer) except for capital structure.
The financial statements (balance sheet, statement of profit and loss and statement of cash flows) for the year ended
March 31, 2025 comprises of the results of twelve months operations of NAM and operations of EDL (pre - acquisition) from
January 24, 2025 to March 31, 2025.
The related party transactions with respect operation of EDL disclosed pertains to twelve months operations of NAM for
the year ended March 31, 2025 along with operations of EDL (pre- acquisition) from January 24, 2025 to March 31, 2025.
Note:
(1) Includes employee stock compensation expense pertaining to key management personnel for the year ended
March 31, 2026 of H 18.20 millions (March 31, 2025: Nil). The above does not include post-employment benefits
such as gratuity and other defined benefit obligations, as these are determined for the Company as a whole
based on an actuarial valuation and are not separately attributable to individual key management personnel.
(2) The Company has received Corporate Guarantee and certain security from the parties stated above for a loan
taken from HDFC Bank Limited. The loan outstanding as on reporting date is H 6,997.95 millions.
(3) The Company has paid advance of H 3,850 millions during the year ended March 31, 2025 and H 64.74 millions
during the year ended March 31, 2026. As on June 25, 2025, the Company has completed acquisition of 100%
shareholding in Squadron Developers Limited (formerly known as Squadron Developers Private Limited).
(4) The investments are being carried at zero value pursuant to the business combination (refer note 50).
(5) The Company has issued a corporate guarantee in favour of Lam Research (India) Private Limited towards
the performance and payment obligations of its wholly owned subsidiary, Embassy East Business Park Limited
(formerly known as Embassy East Business Park Private Limited), under the Sub-Lease Deed and Agreement to Sell.
50 Scheme of Amalgamation between Embassy Developments Limited("EDL") and NAM Estates Private
Limited ("NAM") and Embassy One Commercial Property Developments Private Limited ("EOCPDPL").
The Board of Directors of NAM Estates Private Limited ("NAM") in its meeting held on August 18, 2020 approved the Scheme
of Amalgamation ('Scheme') amongst the NAM Estates Private Limited, Embassy One Commercial Property Developments
Private Limited ("EOCPDPL") and Embassy Developments Limited (formerly known as Equinox India Developments Limited
and earlier known as Indiabulls Real Estate Limited) ("EDL") under sections 230 to 232 and other applicable provisions of
the Companies Act, 2013. The Scheme provides for amalgamation of the NAM, EOCPDPL into EDL and the companies filed
respective applications with the National Company Law Tribunal (Bengaluru Bench) & National Company Law Tribunal
(Chandigarh Bench) for the approval of the Scheme.
The National Company Law Tribunal (Bengaluru Bench) approved the Scheme on April 22, 2022, however the National
Company Law Tribunal (Chandigarh Bench) withheld the Scheme pursuant to order dated May 09, 2023. Further an
appeal was filed before Hon’ble National Company Law Appellate Tribunal (“NCLAT”) against the order issued by National
Comany Law Tribunal (Chandigarh Bench).
The Hon'ble NCLAT - New Delhi Bench, on January 07, 2025 approved the scheme of amalgamation of NAM and EOCPDPL
with EDL and their respective shareholders and creditors ("Scheme") pursuant to sec 230 to 232 of the Companies Act,
2013 and other applicable provisions of the Act, read with Companies (Compromises, Arrangements and Amalgamations)
Rules, 2016. Pursuant to the NCLAT Order, EDL and NAM filed the certified true copy of the court order with the respective
jurisdictional Registrar of Companies on January 24, 2025 ("Effective date") thereby giving effect to the scheme excluding
part IV of the scheme titled as “Amalgamation of the Amalgamating of Company 2 with the Amalgamated Company”,
involving inter alia the amalgamation of Embassy One Commercial Property Developments Private Limited.
Pursuant to the effectiveness of the Scheme, the Company has allotted 60,91,05,999 equity shares of H 2 each to the
existing shareholders who were holding shares of NAM on the record date. Further the existing share capital of EDL held
by NAM was cancelled pursuant to the Scheme. Further as per the approved scheme the name of the Company was
changed from Equinox India Developments Limited to Embassy Developments Limited.
Subsequent to the scheme becoming effective, existing shareholders of NAM, that is, JV Holding Private limited ("JVHPL")
along with its subsidiaries/affiliates became largest shareholder of the Company and were declared as promoter/
promoter group of the Company. Hence, the business acquisition has been treated as reverse acquisition for financial
reporting purposes in accordance with Ind AS 103, with NAM as the accounting acquirer/legal acquiree and EDL as
accounting acquiree/legal acquirer.
In accordance with the applicable Indian accounting standard 103 - Business Combinations, the relevant assets and
liabilities of EDL (accounting acquiree/legal acquirer) and certain relevant assets have been fair valued as on effective
date of the merger. The major class of assets being investments in subsidiaries have been fair valued and are recognised
at their respective fair value.
Accordingly, these standalone financials presented under the name of Embassy Developments Limited (legal acquirer)
represents the continuation of the standalone financials of NAM (accounting acquirer) except for capital structure. The
standalonefinancialsreflectstheassetsandliabilitiesofNAMmeasuredattheirpre-combinationcarryingvalueandacquisition
date fair value of identified assets and liabilitiestaken over with respectto EmbassyDevelopments Limited andits subsidiaries.
In the view of the above reverse merger accounting treatment, the financial statements of the accounting acquiree i.e.
EDL (pre-acquisition) have been included from the effective date of the Scheme i.e. January 24, 2025.
The financial statements (balance sheet, statement of profit and loss and statement of cash flows) for the year ended
March 31, 2025 comprises of the results of twelve months operations of NAM and operations of EDL (pre-acquisition) from
January 24, 2025 to March 31, 2025. Hence, the financial statements presented for the year ended March 31, 2025 are not
comparable with the current period.
Revenue and profit/(loss) contribution
The acquired business contributed revenue from operation of H 76.71 millions and loss of H 109.32 millions to the Company
for the period March 31, 2025.
If the acquisition had occurred on April 01, 2024, consolidated pro-forma revenue and loss for the year ended March 31,
2025 would have been H 21,294.46 millions and H 478.16 millions respectively.
51 Impairment of Goodwill
Goodwill represents residual asset values attributable to unidentified intangible assets acquired by accounting
acquirer. Goodwill recognised will not be deductible for tax purpose. The acquisition date fair value of accounting
acquiree’s identifiable assets and liabilities under reverse acquisition are based on independent valuations obtained by
the Company. Goodwill recognized on business combination are tested for impairment at least annually or based on
impairment indicators.
The entities acquired/merged in previous years are now fully integrated with the Company’s existing business and,
accordingly, are monitored together as a single cash-generating unit ("CGU").
The Company has performed its annual impairment assessment of goodwill by determining the recoverable amount of
the CGU based on fair value. The valuation incorporates projections of future cash flows and a terminal value estimated
using the Gordon Growth Model. Key assumptions applied include a weighted average cost of capital of 16.30% per
annum.The long-term growth rate has been determined with reference to external macroeconomic data and does not
exceed the expected growth rate of the relevant industry.
Based on the assessment, management believes that any reasonable change in key assumptions will not cause the
carrying amount of the CGU to exceed its recoverable amount. Accordingly, no impairment of goodwill has been
recognised as at March 31, 2026.
52 Asset held for sale
For the year ended March 31, 2026, the Company along with a subsidiary have entered into a share purchase agreement for
sale of shares of its another subsidiary for a total consideration of H 1,000.00 millions. Subsequent to the year ended March
31, 2026, the Company and its subsidiary have received the agreed due consideration and have transferred the shares.
54 Earnings per share
Basic earnings per share amounts are calculated by dividing the profit/(loss) for the year attributable to equity holders by
the number of equity shares outstanding during the year. Diluted Earnings per share ("EPS") amounts are calculated by
dividing the profit/(loss) attributable to equity holders.
56 Segment reporting
In accordance with the requirements of Ind AS 108 - "Segment Reporting", the Company is primarily engaged in the
business of real estate development and has no other primary reportable segments. The Board of Directors of the
Company has been identified as the Chief Operating Decision Maker ("CODM"), it is responsible for allocating resources
to and assessing the performance of the Company's operating segments. The CODM monitors the operating results of
the business as a single segment, hence no separate segment needs to be disclosed. Thus the segment revenue, segment
result, total carrying amount of segment assets, total carrying amount of segment liabilities, total cost incurred to acquire
segments assets, the total amount of charge for depreciation and amortisation during the year are all as reflected in the
financial statements. As the Company operates in India alone, there is no separate geographical segment.
57 Expenditure on corporate social responsibility activities
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility ("CSR")
activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture,
healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects.
The funds were primarily allocated and utilized through out the year on these activities which are specified in Schedule
VII of the Companies Act, 2013.
58 Wilful Defaulter:
No bank or financial institution has declared the Company as "Wilful defaulter" during the year ended March 31, 2026 and
March 31, 2025.
59 Details in respect of Utilization of Borrowed funds and share premium shall be provided in respect of:
During the year ended March 31, 2026 and March 31, 2025 no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or
entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
During the year ended March 31, 2026 and March 31, 2025, the Company has not received any fund from any party(s)
(Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other
persons or entities identified by or on behalf of the funding party (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
60 Registration of charges or satisfaction with Registrar of Companies:
All applicable cases where registration of charges or satisfaction is required with Registrar of Companies have been done.
No registration or satisfaction is pending for the year ended March 31, 2026 and March 31, 2025.
61 Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017 and no layers of companies has been established beyond the
limit prescribed as per above said section/rules, during the year ended March 31, 2026 and March 31, 2025.
62 Share based payments
a) Employees Stock Options Plan 2010
During year ended March 31, 2011, the board and shareholders of the Company have given their consent to launch
of the Employee Stock Option Plan - 2010 (“ESOP 2010”) covering stock options or other benefits not exceeding
3.00. 00.000, representing 3,00,00,000 equity shares of face value of H 2 each of the Company. The ESOP 2010 was
further modified pursuant to the resolution of the Compensation Committee dated April 19, 2021, to include stock
appreciation rights (“SARs”) as part of the ESOP 2010. Accordingly ESOP 2010 comprises of:
i. Employees Stock Option Scheme - 2010 (“Stock Option Scheme”);
ii. Employees Stock Purchase Plan 2010 (“Stock Purchase Plan”); and
iii. Stock Appreciation Rights Plan 2010 (“Stock Appreciation Rights Plan”).”
In terms of the Stock Appreciation Rights Plan, the Employee Welfare Trust (formerly known as “Indiabulls Real Estate
Limited - Employees Welfare Trust”)” (“the Trust”) had acquired 31,25,164 Equity Shares from the secondary market
during financial year 2020-2021, out of which 25,25,164 Equity Shares had been disposed off upon exercise of rights
by the eligible employees and 6,00,000 Equity Shares are currently held by the Trust.
b) Employees Stock Options Plan 2011
During year ended March 31, 2012, the board and shareholders of the Company had approved launch of Employee
Stock Option Scheme 2011 (“IBREL ESOS 2011”) covering stock options not exceeding 1,50,00,000, representing
1.50.00. 000 equity shares of face value of H2 each. However, no grant has been ever made under IBREL ESOS 2011.
c) Employee Stock Option Scheme - 2025 (‘ESOS 2025’)
The Board and shareholders at their meeting, dated February 25, 2025 and March 25, 2025, respectively, approved the
launch of “Embassy Developments Limited Employee Stock Option Scheme - 2025” (“Embassy ESOS 2025”), prepared
in accordance with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits
and Sweat Equity) Regulations, 2021, as amended (“SEBI SBEB Regulations”). The Embassy ESOS 2025 comprises of
Stock Options (“SO”) and Performance Stock Unit (“PSU”) (collectively hereinafter referred to as “Option or Options”)
granted to the Eligible Employees of the Company and its subsidiaries which are convertible into maximum of
4.50.00. 000 Equity Shares of the Company.
64 Employee benefits obligations
A. Defined contribution plan
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions
into a separate entity and will have no legal or constructive obligation to pay further amounts. The Company
makes specified monthly contributions towards Government administered provident fund scheme. Obligations for
contributions to defined contribution plans are recognised as an employee benefit expense in profit or loss in the
periods during which the related services are rendered by employees.
B. Defined benefit plan
Gratuity
The Company has a defined benefit gratuity plan in India. Gratuity is payable to eligible employees in accordance
with the applicable statutory provisions governing gratuity benefits. The gratuity obligation has been actuarially
valued considering the provisions of the Code on Social Security, 2020 relating to the definition of wages for
gratuity purposes. Accordingly, the gratuity liability has been computed based on the revised definition of wages as
prescribed under the Code, wherever applicable. The gratuity plan is unfunded.
66 The following disclosures represents the loans or advances in the nature of loans are granted to promoters, Directors,
KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person, that are:
(a) repayable on demand; or
(b) without specifying any terms or period of repayment,
68 Financial instruments - risk management
The Company's financial assets majorly comprise of loans to related parties, other receivable from related parties,
trade receivables and cash & cash equivalents. The Company's financial liabilities majorly comprises of borrowings,
trade payables.
The Company is exposed to credit risk, liquidity risk and interest rate risk arising out of operations and the use of financial
instruments. The Board of Directors have overall responsibility for establishment and review of the Company's risk
management framework.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems
are reviewed regularly to reflect changes in market conditions affecting business operations and the Company's activities.
(a) Credit risk
In order to mitigate the credit risk on receivables, the Company does business only with recognised third parties
thereby reducing the credit risk. Credit risk on cash and cash equivalent is limited as the Company generally
transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit
rating agencies.
Loss allowance measured at 12 month expected credit loss for financial assets for which credit risk has not increased
significantly since initial recognition.
(b) Interest rate risk
Interest rate risk is the risk that the 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 its
long-term debt obligations with floating interest rates.
Exposure to interest rate risk:
The interest rate profile of the Company's interest-bearing financial instruments as reported to the management of
the Company is as follows:
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or
loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
Sensitivity analysis for variable rate instruments
A reasonably possible change of 1.00% in interest rates at the reporting date would have increased/(decreased)
equity and profit and loss by the amounts shown below. This analysis assumes that all other variables, in particular
foreign currency exchange rates, remain constant.
Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage
of funds. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial
assets and liabilities. The Company’s objective is to maintain a balance between continuity of funding and flexibility.
The Company has a dedicated treasury management team which monitors on a daily basis the fund positions/
requirements of the Company. The treasury management team plans the cash flows of the Company by planning
and identifying future mismatches in funds availability and reports the planned & current liquidity position to the top
management and board of directors of the Company.
Exposure to liquidity risk
The table below summarises the maturity profile of the Company’s financial assets and liabilities at the end of the
reporting period based on contractual undiscounted cash flows:
The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which
sales, purchases and borrowings are denominated and the respective functional currencies of transacting parties.
The functional currency of the Company is “Rs.” However, the Company’s foreign currency exposure as at March 31,
2026 is not material and, accordingly, the associated currency risk is considered minimal. The Company monitors
its foreign currency exposures on an ongoing basis and manages the risk through appropriate treasury and
operational practices.
As at 31 March 2026, the Company do not have any outstanding forward exchange contracts or other derivative
financial instruments for managing foreign currency risk.
Note 1: The change in ratio is primarily attributable to decrease in loans and increase in equity share capital.
Note 2: The change in ratio is primarily attributable to decrease in earnings before interest, taxes, and depreciation.
Note 3: The change in ratio is due to loss during the year ended March 31, 2026.
Note 4: The change in ratio primarily on account of an increase in project inventory arising from ongoing development
activities, whereas revenue recognition is linked to the stage of completion and timing of project handovers.
Note 5: The change in ratio is due to decrease in turnover during the year ended March 31, 2026.
Note 6: The change in ratio is due to increase in investments during the year ended March 31, 2026.
*The ratios as required under Schedule III to the Act, to the extent not applicable has not been furnished.
Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio are not meaningful for the Company due to the nature of its business. The
Company is engaged in real estate development, where revenue recognition, customer collections, and supplier payments are project-based and
linked to construction milestones rather than recurring credit sales or purchases. Accordingly, these ratios do not provide meaningful information
regarding the Company's operational performance and have therefore not been presented.
75 Capital management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all
other equity reserves attributable to the equity holders of the parent. The primary objective of the Company's capital
management is to maximise the shareholder value.
The Company manages the capital structure based on an adequate gearing which yields higher share holder value
which is driven by the business requirements for capital expenditure and cash flow requirements for operations and
plans of business expansion and consolidation. Accordingly based on the relative gearing and effective operating cash
flows generated, the Company manages the capital either by raising required funds through debt, equity or through
payment of dividends.
76 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.
(ii) The Company has not traded or invested in crypto currency or virtual currency during the year ended March 31, 2026
and March 31, 2025.
(iii) 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).
(iv) In the opinion of the board of directors, all assets have a value on realization in the ordinary course of the business at
least equal to the amounts at which they are stated and provision for all known liabilities have been made.
(v) The Company did not have any long-term contracts including derivative contracts for which there were any
foreseeable losses.
(vi) In respect of amounts as mentioned under Section 125 of the Companies Act, 2013, there were no dues required to be
credited to the Investor Education and Protection Fund as at March 31, 2026 and March 31, 2025.
77 As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule 3(1) of the Companies (Accounts) Rules,
2014, from the financial year commencing 01 April 2023, every company which uses accounting software for maintaining
its books of account, shall use only such accounting software which has a feature of recording audit trail of each and
every transaction, creating an edit log of each change made in the books of account along with the date when such
changes were made and ensuring that the audit trail cannot be disabled. The interpretation and guidance on what level
edit log and audit trail needs to be maintained evolved during the year and continues to evolve.
The Company has used accounting software for maintaining its books of account for the year, which has feature of
recording audit trail (edit log) facility at application level as well as database level and the same has operated throughout
the year for all relevant transactions recorded in the software. Recording of audit trail (edit logs) can be disabled using
restricted privileged rights for direct data changes at database level. Since the company has other necessary controls
in place, which are operating effectively, this feature will not adversely impact its data and audit log retention directly at
database level.
Furthermore, the audit trail has been preserved by the Company as per the statutory requirements for record retention.
78 Previous year numbers have been regrouped/reclassified wherever considered necessary.
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