I. Economy Overview
• The Indian economy powered through 2022 despite a shaky
geopolitical environment and the threat of a looming recession in large, developed
economies. India emerged as the fastest-growing large economy in the world and was one of
the few bright spots in an otherwise bleak global economic environment during the year.
While the outlook on the global economy did not improve significantly as we stepped into
2023, global sentiment on the Indian economy continued to strengthen due to its growing
stature as a potential alternative to China and its standing as the worlds largest
democracy.
• The Indian economy has had a smooth sailing so far in 2023 due
to sustained GDP growth and reducing inflationary pressures; the central bank also shifted
its stance to support growth. However, global financial volatility and subdued business
sentiment may pose some challenges. As GDP growth in Q1 belied expectations, a few
agencies decided to raise their FY2023-24 growth forecasts for India, while others
continued to lower their projections in view of the global macroeconomic turmoil.
Currently, most agencies peg the countrys growth in the range of 5.5-6.5%.
II. Industry Overview
• The Indian real estate market had recovered well in 2022,
residential demand scaled a nine-year high, while the office market posted a robust
recovery compared to markets in the developed world, which were still trying to find their
feet. In H1 2023, the real estate market has achieved levels close to those seen last
year.
• While headline demand levels during H1 2023 indicate the
resilience of the market, their underlying components are undergoing a significant amount
of churn, possibly pointing to a pivotal point in its evolution. For instance, in the
office space, the occupiers preference for flex spaces scaled a historic high, while in
the residential market, the sales volumes of the erstwhile dominant affordable segment
have been convincingly eclipsed by those of the mid-segment.
• Some rationalization witnessed in H1 2023 from the 2022 peak
levels; however, the second half of the year is expected to be stronger on account of a
healthy supply pipeline, approaching festive season and stabilizing mortgage rates.
III. Indian housing market persists with a bullish trend, defying
economic headwinds
• The residential market has been on a strong recovery path as the
economy emerged from the pandemics shadow. While low interest rates and comparatively low
residential prices sparked the revival in demand, the momentum in residential sales
sustained even as interest rates rose. The residential market breached a nine-year high in
terms of annual residential sales in 2022 in an inflationary environment that caused
increasing concerns on economic growth across the world. Thus, while the momentum looked
strong, it remained to be seen if it would sustain in 2023.
• The RBI has hiked the repo rate by 250 bps since May 2022 and
the last 25 bps hike in Q1 2023 pushed home loan rates within striking distance of those
existing in pre-pandemic 2019. Regardless, the residential market stepped into 2023 on a
relatively stable footing with the first half of the year registering sales of 0.16 mn
units, 1% lower in YoY terms. While this is the second highest sales volume in almost 10
years, the YoY growth has plateaued in H1 2023 compared to the strong double- digit growth
seen in the preceding four half yearly periods. This can be read as an indicator of market
consolidation or as saturation but given the Indian economys relative outperformance in
FY2024 as well, we believe this pause in growth is probably transient in nature.
• The relative stability in sales was sustained across all markets
with the YoY percentage change in sales levels not exceeding single digits for any. Sales
grew the most in the Hyderabad market at 5% YoY while slipping in the larger markets of
Mumbai and Bengaluru at -8% and -2% YoY.
• The consistent sales volumes have spurred intense development
activity over the past two years. The volume of units launched has exceeded that of sales
in the past three half yearly periods, an event that has not occurred since H2 2014. 0.17
mn units were launched during H1 2023 which translates to an 8% growth in YoY terms.
• The share of sales in the <INR 5 mn ticket size price segment
reduced from 43% in H2 2020 to 32% in H1 2023. While its share of sales has reduced over
time, it was still the largest segment in terms of sales volumes till H1 2022. H1 2023
marks the second half-yearly period in which this this segments volumes have been
eclipsed by the mid-size segment.
• Conversely, during the same reference period, the share of
annual sales in the INR 5-10 mn and >10 mn ticket-size categories grew from 36% to 38%
and 21% to 30% respectively. The higher income segments were not as impacted by income
disruptions caused by pandemic exigencies as was initially expected. Besides, the high
savings rate due to the initial weak sentiments and lockdown periods played their part in
fueling the current wave of demand.
• While sales volumes have been stable in H1 2023, prices have
grown in the range of 2% to 10% across all markets with Mumbai, Bengaluru and NCR growing
by 6%, 5% and 5% YoY respectively. This also marks the third consecutive half-yearly
period of YoY growth in prices across all markets. Even in sequential terms, prices have
either stayed steady or grown across markets during the period.
• With the supply of units exceeding that of sales during H1 2023,
the unsold inventory grew by 7% YoY to 0.47 mn units. And while the market is carrying
more inventory, the consistently high sales volumes in H1 2023 have pushed down the
Quarters to Sell (QTS) level from 7.8 to 6.7 quarters during this period. QTS measures the
number of quarters required to exhaust the unsold inventory and is calculated by dividing
the existing unsold inventory by the average sales of the eight trailing quarters from the
analysis period to avoid seasonal volatility. Generally, a lower QTS level denotes greater
sales traction and better market health.
• Demand remained consistently high in H1 2023 even as annual
growth slipped marginally. The industry continues to consolidate with residential
developments steadily shifting into the hands of stronger developers who have been able to
weather the economic storm created by the pandemic. While ready inventory remains a strong
preference for homebuyers, developers are also finding takers for their under-
construction inventory. With inflationary forces subsiding, the RBI has shifted its stance
to prioritize economic growth by maintaining liquidity which is supportive of real estate
demand and bodes well for the market for the remainder of the year.
a) MMR Market Overview
• Mumbai continues to maintain its position as the largest market
in terms of real estate sales with sale of 40,798 units in the first half of 2023. While
the growth in sales remained steady compared to the second half of 2022, the city has
witnessed an 8% YoY decline in the total sales during the first half of 2023. The market
has maintained the elevated sales level even as the growth rate is tapering.
• The optimism for sales momentum to improve continues to remain
high supported by factors such as the expected rise in income levels and the strong desire
for homeownership, which continue to be key drivers for residential sales in the Mumbai
market.
• Although there was a minor dip in residential market
transactions, the number of new project launches continued to remain robust. In H1 2023, a
substantial supply of 50,546 units was added, marking the highest number since the first
half of 2014. Nonetheless, developers remain cognizant of consumer sentiment and
affordability. 70% of the supply added in 2022 are in suburban markets like the Western
Suburbs, Thane, Peripheral Central Suburbs and Central Suburbs.
• In the first half of 2023, a significant proportion of the
properties transacted in Mumbai remained within the less than INR 5 mn ticket size range.
Although their share has decreased from 50% in H1 2022 to 46% in H1 2023, it continued to
represent a significant portion of the market. Meanwhile, the INR 5-10 mn ticket size
category has experienced growth, accounting for 37% of the market share in H1 2023
compared to 22% in H1 2022. This shift towards the INR 5-10 mn category can be attributed
to the rise in property prices and value mix of homes sold during this period.
• The weighted average residential property prices have recorded
an upward movement in H1 2023 by 6% YoY. The increased raw material prices coupled with
strong demand were the primary drivers for developers to opt for price rise.
• The unsold inventory has risen by 7% YoY in H1 2023 on account
of the massive supply added in the market. However, the Quarters- to-Sell has reduced from
12 quarters in 2021 to 8.4 quarters in H1 2023. This reduction indicates a faster pace of
property sales and suggests that the market is absorbing the available inventory more
efficiently.
• The Mumbai Metropolitan Regions (MMR) residential market is set
to experience robust growth and expansion in the upcoming quarters. With its status as a
leading financial and commercial hub, the region continues to attract a diverse
population, including professionals and investors. This influx of people, coupled with
limited available land, is expected to drive demand for residential properties, leading to
potential price appreciation. Additionally, the governments continued focus on
infrastructure development and urban planning initiatives will enhance connectivity and
further boost the attractiveness of MMRs real estate market.
b) Gurugram Market Overview
• In line with past trends, Gurugram remains a key hub for primary
residential sales in NCR. Since H2 2019, Gurugrams share in NCRs total sales volume has
only expanded with each half-yearly period. From a 12% share in H2 2019, Gurugrams share
has grown to 52% in H1 2023. New launches in multiple formats such as independent floors,
gated plotted developments and high-rise apartment projects from credible developers have
ensured healthy sales velocity in its various locations. Large township projects on Golf
Course Extension Road, New Gurugram and along the Dwarka Expressway are witnessing healthy
sales velocity now that the expressways completion is visibly imminent.
• Gurugrams high rise living resonates well with both first
generation and second-generation homebuyers looking for a lifestyle upgrade, a trend that
has only picked up post the pandemic outbreak. Connectivity between the main areas of
Gurugram and its developing peripherals is being enhanced continually to support its real
estate boom. Gurugram Metropolitan Development Authority (GMDA) has invited bids for
construction and upgradation of the Southern Peripheral Road (SPR). This upcoming
infrastructure upgrade will take place on the Golf Course Extension Road and the present
Southern Peripheral Road from Vatika Chowk to Kherki Daula and ease congestion in 25
sectors along this stretch, which will benefit the residential projects over the long
haul.
• A high residential demand has also revitalized the new launches
activity in Gurugram. In H1 2023, new launches in Gurugram comprised 82% of NCRs total
launch pie. From a mere 19% share in H1 2021, Gurugrams share has swelled to 82% in the
current review period as many new projects have been launched in the developing
peripherals. Robust homebuying demand supported by enhanced connectivity has been
instrumental in developers taking exposure on Golf Course Extension Road, New Gurugram and
Dwarka Expressway.
IV. Opportunities & Challenges
a) Indian housing market poised to uphold its momentum in the
forthcoming quarters
• The Indian residential sector has been on a roll in the first
half of 2023 with both housing sales and new launches scaling new heights. Housing sales
across the top 7 cities in H1 2023 have already reached over 63% of the total sales in
entire 2022 despite rise in both interest rates and housing prices. This itself indicates
the undeterred demand for housing across the top 7 cities & and looking at the present
scenario, it is very likely that similar growth trends may continue in the second half of
2023 as well. Many factors point towards this anticipated growth in the residential
segment in the second half as well.
• Firstly, with inflation under control, RBI may not increase the
repo rates any further rather it is quite likely that it may reduce it in its next
monetary policy, making home loans slightly cheaper.
• Secondly, there has been robust land acquisition across the top
7 cities, indicating strong vibrancy in the market. Many Tier 1 developers have a strong
pipeline of new launches in the coming quarters. This is largely because they are
recording robust sales across their projects. In fact, the unfettered demand for housing
across the country has also enabled the top 8 listed developers to reduce their debt from
INR 405 Bn in FY20 to over INR 230 bn in FY23 - recording a decline of 43 in the period.
This decline in net debt is essentially because of the boosted sales and revenues
collected by these listed developers. These developers sales volumes have surpassed
pre-pandemic levels and are headed for a new peak. With improved cash flows over the last
few years, their debt has thus reduced significantly.
• Other parameters including the stock market etc. also reflect
positive trends which in a way are likely to positively impact the residential market.
• Thus, going forward, we anticipate residential demand to remain
steady and be driven primarily by the end users, which will inevitably prevent any
unnatural speculative spikes. Grade A developers will continue to dominate the residential
market and gain more market share, which will help your Company in creating opportunities
to grow further.
b) Challenges
• While the management of your Company is confident of creating
and exploiting the opportunities, it also finds the following challenges:
o Unanticipated delays in project approvals
o Availability of accomplished and trained labour force
o Increased cost of manpower
o Rising cost of construction lead by increase in commodity prices o
Growth in auxiliary infrastructure facilities; and
Notes: Each project, exclusive of phases is counted as a single project
(1) Above figures include Sky projects. The ownership of the Sky
projects is with IPPL, which is currently owned by certain third parties. However, IBREL
has a right to purchase
Sky projects, through purchase of IPPL from its current owners
(2) Refer note on Nashik SEZ
o Over regulated environment Sources:
• Knight Frank Research (India Real Estate H1 2023)
• CBRE Research ("India Market Monitor Q2 2023")
• Anarock Research (Residential Market Viewpoints - Pan India,
Mumbai Metropolitan Region, National Capital Region Q2 2023)
V. Company Overview
Indiabulls Real Estate Limited, one of the leading real estate
developers in the Mumbai Metropolitan Region ("MMR") and the National Capital
Region ("NCR") of India, was incorporated in 2006 with its focus on construction
and development of residential, commercial and SEZ projects across major Indian metros.
Geographically, our strategic focus is on the key markets of MMR and NCR, we are also
present in various parts of India across Jodhpur, Vadodara, Vizag and Indore. We are an
independently managed, professionally run company having a diversified presence in
residential real estate developments with a well-balanced mix of high-value &
high-volume products across Mid-income, Premium and Luxury price categories. We are listed
on the Bombay Stock Exchange, India ("BSE") & National Stock Exchange, India
("NSE") and our global depository receipts ("GDRs") are listed on the
Luxembourg Stock Exchange. The companys long term debt rating by Infometrics and
Brickworks at IVR A and BWR A+ respectively.
Our core competency lies in managing the real estate value chain as we
have in-house capabilities to deliver a project from conceptualization to completion. We
believe that a significant competitive differentiator for us has been our history in
delivering strategically located large scale projects with high quality construction and
sustainable practices. Our adept technical and design team aim to ensure efficient and
quality developments. We believe we have the human capital and technology-enabled systems
to successfully manage large construction projects with years of on-ground industry
experience. We place an emphasis on safety in all phases of construction. We believe that
our understanding of the relevant real estate market, positive perception, innovative
design and marketing and branding techniques enable us to attract customers.
The Group has successfully delivered 19 projects across India, spanning
a developable area of ~30 million sq. ft and has ~12 million sq.ft of unsold inventory
across 6 cities & 15 projects and holds a land bank of over 3,000+ acres near to major
metropolitans; one of the largest land banks among listed Indian real estate developers.
It has delivered iconic commercial developments of over 3.3 million sq. ft. in Mumbai
namely - One International Centre & One World Center and in the residential segment
our flagship projects in Mumbai include Blu Estate & Club & Sky Forest, apart from
delivering projects in Gurugram, Chennai, Madurai, Ahmedabad and Thane.
a) Quick Snapshot
c) Our Competitive Strengths
Your Company continues to capitalize on the market opportunities by
leveraging its key strengths:
• Significant inventory of completed projects or projects with OC
or are near completion - We believe that customers in India have started to prefer
completed projects or projects with OC or are near completion; COVID-19 pandemic has
further accentuated this trend. Our significant inventory of completed projects and
projects with OC or are near completion would allow us to cater for the preferences of
prospective buyers.
• Strategically located projects in the attractive MMR and NCR
markets - We have a track record of delivering a quality portfolio of assets, which is
strategically located in the attractive markets of MMR and NCR. The strategic locations of
our projects offer significant competitive advantage in terms of higher absorption and
higher average base selling price.
• Quality construction - Highest quality construction is the key
driver for achieving long-term results. The Company employs the most advanced construction
equipment, cutting-edge technologies like advanced jump-form technology, advanced vertical
transportation system, wind tunnel engineering and finest quality raw materials.
• Strong Sales and Marketing Capabilities - Our marketing and
sales team track market trends which enables us to position our projects appropriately in
terms of location and price points and creates a cohesive marketing strategy catered for
each project.
• Focus on sustainable development - We believe in sustainable and
environment-friendly practices, and have implemented the following practices across our
developments: solar energy systems, rainwater harvesting and percolation pits,
eco-friendly landscaping, water saving features, efficient fagade designs that reduces
glass reflection, thereby maximizing daylight and reducing energy consumption, efficient
water usage through sewage treatment plant recycling, organic waste treatment and energy
efficient buildings with eco-friendly equipment.
• Significant Debt Headroom - Follows conservative debt practice
coupled with enough cash balance which provides a significant leveraging opportunity for
further expansions
• Transparency - Follows a strong culture of corporate governance
and ensures transparency and high levels of business ethics
d) Strategy & Way Forward
VI. Business Review
a) FY2023 Performance Review
i. Key Highlights
iii. Profit & Loss Statement (Extract)
| Particulars |
FY2023(UJ |
|
| FY2022 |
|
|
|
<* Cr) |
(? Cr) |
| Revenue |
648 |
1,541 |
| EBITDA |
(434) |
95 |
| Adjusted EBITDA*11* |
(40) |
95 |
| F inance Costs |
28 |
110 |
| Depreciation |
12 |
12 |
| Profit Before Tax (PBT) |
(563) |
(27) |
| Tax Charge/ (Credit) |
45 |
110 |
| Profit After Tax (PAT) |
(608) |
(137) |
| Adjusted Profit After Tax (FAT)1 |
025) |
(137) |
Notes: Figures adjusted for following one off items (1) During Q3FY23
& FY2023, the Company had divested its 100% stake, to sell a land parcel admeasuring
approximately 35 acres, at Sector 104, Dwarka Expressway, Gurugram Haryana, for an
aggregate consideration of X240 Cr. The Company has incurred a loss of 189.4 Cr on this
transaction (2) Exceptional item for Q4FY23 and FY2023, includes net effect of38.8 Cr due
to write off/back of payables of 368.2 Cr and write off / back of receivables of 329.4
Cr in certain subsidiaries based on one-time internal assessments of the new management
(3) Cost of sales for Q4FY23 and FY2023 are higher by 254 Cr on account of one-time
exercise undertaken by the new management to reassess and revise cost to complete for
various ongoing projects (4) Above figures include Sky projects. The ownership of the Sky
projects is with IPPL, which is currently owned by certain third parties. However, IBREL
has a right to purchase Sky projects, through purchase of IPPL from its current owners
v. Significant Changes in Key Financial Ratios:
In compliance with the requirements of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as amended, significant changes (change of
25% or more from FY 2021-22 to FY 2022-23) in the key financial ratios applicable to the
Company, are as under:
Return on Average Equity (Net worth)
The Return on Average Equity of the Company on a consolidated basis, as
on March 31, 2023 stood at (17.13%) as against (3.92)% as on March 31, 2022.
This decrease in the ratio is primarily due to the following reasons :
i) During the quarter ended 31 December 2022, pursuant to a Share
Purchase Agreement, dated December 23, 2022, the Company had divested its 100% stake, on a
fully diluted basis, in its wholly owned subsidiaries Juventus Estate Limited, and Mabon
Properties Limited, which collectively own the land parcel admeasuring approximately 35
acres, at Sector 104, Dwarka Expressway, Gurugram, Haryana. With this, Juventus Estate
Limited, Mabon Properties Limited and Milkyway Buildcon Limited (which is a 100%
subsidiary of Juventus
Estate Limited) ceased to be the subsidiaries of the Company w.e.f.
December 23, 2022, for an aggregate consideration of 2,400.0 million. The group had
incurred a loss of 1,893.6 million on a consolidated basis on this divestment.
ii) In Q4 FY 2023 the management of the Company undertook a pending
cost analysis for completion of the undergoing and near completed projects, on an overall
group basis. It was observed that in certain projects, the cost of completion vs the
earlier budgeted cost were not comparative and certain shortcomings in the budgeted costs
were observed, due to various reasons. The management taking a prudent view, booked a
provision for such costing shortfall, in respective projects, in Q4 2023. The quantum of
such one-time provisioning is 2540.0 million.
Interest Coverage Ratio
The interest coverage ratio of the Company on a consolidated basis was
(17.52) for FY 2022-23 as compared to 0.86 for FY 2021-22.
Operating Profit Ratio
The operating profit ratio of the Company on a consolidated basis for
FY 2022-23 stood at (9.21)% as compared to 17.14% for FY 2021-22.
Net Profit Margin (%)
The Net Profit margin ratio of the Company on a consolidated basis was
(103.55)% for FY 2022-23 as compared to (11.23%) for FY 2021-22.
Current Ratio
The current asset ratio of the Company on a consolidated basis has
improved from 1.87 for FY 2021-22 to 2.45 for FY 2022-23.
Debt Equity Ratio
The Debt Equity ratio for the Company on a consolidated basis has
improved from 38.23% for FY 2021-22 to 6.97% for FY 2022-23
There has been no significant change in the other key financial ratios,
as applicable to the Company.
The following is the presentation of certain significant ratios after
adjusting the consolidated numbers of the Company for the two adjusting items as described
in the notes to Return on Average Equity (Networth) above
Return on Average Equity (Net worth)
The Return on Average Equity of the Company on a consolidated basis, as
on March 31, 2023 stood at (4.63)%as against (3.92)% as on March 31, 2022.
Interest Coverage Ratio
The interest coverage ratio of the Company on a consolidated basis was
(1.48) for FY 2022-23 as compared to 0.86 for FY 2021-22.
Operating Profit Ratio
The operating profit ratio of the Company on a consolidated basis for
FY 2022-23 stood at 34.07% as compared to 17.14% for FY 2021-22.
Net Profit Margin (%)
The Net Profit margin ratio of the Company on a consolidated basis was
(27.99)% for FY 2022-23 as compared to (11.23)% for FY 2021-22.
b) Net Surplus from Pojects
Net Surplus from projects at Rs 5,997 Cr. Surplus from OC / near
completion projects at ^901 Cr; pending costs of Rs 503 Cr fully covered through
receivables with ~1.4x cover
c) Cash, Debt & Equity
Gross debt stood at Rs 224 Cr vs. Rs 1,310 in FY2022, at an avg. ROI of
12.8% with 0.1x debt to equity. Cash & cash equivalents at ^534 Cr; Net cash positive
of Rs 310 Cr post debt. Total equity stands at Rs 3,026 Cr.
h) Update on Merger with Embassy Group
• The Board of Directors of the Company in its meeting held on
August 18, 2020, have approved the Scheme of Arrangement (Scheme) amongst the Company,
NAM Estates Private Limited ("NAM Estates") and Embassy One Commercial Property
Development Private Limited ("NAM Opco"), both Embassy group entities.
• The Scheme provides for a cashless composite scheme of
amalgamation of NAM Estates and NAM Opco into the Company, in accordance with applicable
regulations, subject to necessary statutory and other approvals. Upon effectiveness of the
Scheme, the Company will issue its equity shares, in accordance with the approved share
swap ratios, pursuant to which Company is being valued at 92.50 per share. The Scheme
had been granted approval by Competition Commission of India ("CCI") and
SEBI/Stock exchanges. The Equity shareholders of the Company, at their meeting held on
February 12, 2022, has also approved the Scheme with 99.9987% majority. Further, the NCLT
Bengaluru Bench has also approved the Scheme on April 22, 2022.
• However, the NCLT, Chandigarh Bench, on May 9, 2023, pronounced
an order, pursuant to which the sanction to the Merger has been withheld. The Company has
filed an appeal before Honble National Company Law Appellate Tribunal ("NCLAT")
against the order issued by NCLT Chandigarh and the matter was heard on Jul 25, 2023,
wherein notices have been issued to the IT department. Next hearing scheduled on Sep 08,
2023.
i) London Receivables
• A resolution was purportedly passed by the Operations Committee
of the Board (comprising the erstwhile management) on February 07, 2023, authorizing
execution of amendments of the Share Purchase Agreement executed on November 01, 2019
("SPA") by the Companys subsidiary Brenformexa Limited
("Brenformexa") with Clivedale Overseas Limited ("Clivedale"), an
entity controlled by the erstwhile promoters of the Company. Under the terms of this SPA,
out of a total consideration of GBP 200 million, an amount equal to GBP 61.85 million
(~^629 Crores) remains due and payable from Clivedale to Brenformexa ("Balance
Amounts").
• The Board and the current management consider any purported
actions taken, Balance Amounts waived, or agreements signed under the authority of this
resolution to be unauthorized and void ab initio.
• The Board in its meeting held on 10 August, 2023 has approved
the taking of preventive steps & any actions required with respect to Clivedale/third
parties to ensure the recovery of the aforesaid Balance Amounts owed to Brenformexa by
Clivedale under the said SPA. As a prudent measure, the Board, in consultation with the
statutory auditors, has decided to create a provision of ~^629 Crores in its books of
accounts for the quarter ended June 30, 2023, against the potential inability to recover
the Balance Amounts.
j) Nashik SEZ
• M/s Indiabulls Industrial Infrastructure Limited
("MIL") a subsidiary of the Company, had in August 2007 entered into a Share
Purchase Agreement ("SPA") with Maharashtra Industrial Development Corporation
("MIDC") which allowed IIIL to enter into lease deeds with MIDC on approximately
2,500 acres of land ("Land") situated in Sinnar, Nashik district, Maharashtra.
The Land was to be developed as industrial plots within the Special Economic Zone
("SEZ") framework. IIIL has paid a premium of ^67.7 Crores to MIDC for the Land.
• Development on the Land has been carried out with respect to a
1350 MW power plant, along with basic infrastructure (such as roads, water, power,
administrative blocks, etc), a 38 km SEZ boundary wall, 8MLD freshwater pipeline, customs
office inside SEZ, solar streetlights, telecom and broadband connectivity. Further, to
rehabilitate the Project Affected Persons ("PAPs") the Company has paid the plot
fee towards the PAPs, along with basic infrastructure (such as bitumen roads, RCC water
tank, water pipeline, electric pole network, solar streetlight, WBM road (14 km), culverts
etc).
• While IIIL was in the process of planning and conducting further
development on the Land, MIDC has issued a termination notice purporting to terminate the
Lease Deed based on an alleged lapse by the Company with respect to completing development
and rehabilitating PAPs within the stipulated timelines. The Company believes this notice
to be unlawful and is evaluating legal options to defend itself / seek redressal against
the unlawful termination.
k) Human Resources
• The Companys businesses are managed by a team of competent and
passionate leaders, capable of enhancing your Companys standing in the competitive
market. The Companys employees have a defining role in significantly accelerating its
growth and transformation, thereby enhancing its position as one of the largest corporate
houses. The Company has a structured recruitment process with a diverse talent pool. The
focus is on recruiting people who have the right mindset for working at Indiabulls,
supported by structured training programs and internal growth opportunities. The Company
has a strong team of employees, who are aligned and dedicated towards the Companys goal.
The Companys focus is on unlocking the peoples potential and further developing their
functional, operational, and behavioral competencies. The belief "great people create
great organization" has been at the core of the Companys approach to its people.
• Key action points taken were as follows:
o To strengthen the front ending team, professionals were added to the
Construction, Sales/ Marketing function.
o As on 31 March 2023, the Group has 511 employees.
l) Internal Controls & Their Adequacy
• The Company has a proper and adequate system of internal
controls commensurate with the size of the Company and the nature of its business to
ensure that all the assets are safeguarded and protected against loss from unauthorized
use or disposition and those transactions are authorized, recorded and reported correctly
and adequately. •
• The Companys internal controls are supplemented by internal
audits, review by management and documented policies, guidelines and procedures. The
system has been designed to ensure that financial and other records are reliable for
preparing financial information and for maintaining accountability of assets. All
financial and audit control systems are also reviewed by the Audit Committee of the Board
of Directors of the Company.
VII. Cautionary Statement
• Statements in this report on Management Discussions and Analysis
describing the Companys objectives, estimates and expectations may be forward looking
statements based on certain assumptions and expectations of future events. Actual results
might differ substantially or materially from those expressed or implied. The Company here
means the consolidated entity consisting of all its subsidiaries. Similarly, Companys
land bank and Companys project means the consolidated land bank and project of the
Company as consolidated entity along with all its subsidiaries. The Company assumes no
responsibility nor is under any obligation to publicly amend, modify or revise any
forwardlooking statements based on any subsequent developments, information or events.
+91-9892691696
