Housing Development & Infrastructure Ltd — Interim / Quarterly Report 2021

Apr 12, 2021

$12^th$ April, 2021

National Stock Exchange of India Limited, "Exchange Plaza", C-1, Block G, Bandra Kurla Complex, Bandra (East), Mumbai-400051

BSE Limited 25^th Floor, New Trading Ring, Rotunda Building, PJ Towers, Dalal Street, Fort, Mumbai-400001

Security Symbol: HDIL

Subject: Intimation under Regulation 30 and 33 of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015 regarding Outcome of the Meeting and submission ofStandalone Unaudited Financial Results for the quarter and nine months ended 31st December, 2019 of FY 2019-20.

DearSir,

Script Code: 532873

This is in continuation to our letter dated 2^nd April, 2021 and 6^th April 2021 regarding the intimation of date of meeting of Directors for consideration and confirmation of the Standalone Unaudited Financial Results of the Company for the quarter and nine months ended 31^st December, 2019.

As your good self is already aware that HousingDevelopmentandInfrastructureLimited ('the Company') is undergoing Corporate Insolvency Resolution Process ('CIRP') vide Hon'ble National Company Law Tribunal, Mumbai Bench order dated 20 August, 2019 ('Order'), in terms of the provisions of Insolvency and Bankruptcy Code, 2016 ('IBC') and the regulations framed thereunder. Pursuant to the said Order and in accordance with the provisions of IBC, the powers of the Board of Directors and responsibility for managing the affairs of the Company is vested in Mr. Abhay Narayan Manudhane, in the capacity of the Resolution Professional ('RP').

This is to inform you that the Resolution Professional has considered and taken on record the Financial Results of the Company for the quarter and nine months ended 31^st December, 2019of FY 2019-20. In accordance with Regulation 30 and 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI LODR Regulations'), the Standalone Unaudited Financial Results of the Company for the quarter and nine months ended 31^st December, 2019of FY 2019-20 along with the Limited Review Report thereonis enclosed herewith.

These financial statements have been signed by the RP while exercising the powers of the Board of Directors of the Corporate Debtor, which has been conferred upon him in terms of the provisions of Section 17 of the Code. The RP has signed these financial statements in good faith, solely for the purpose of compliance and discharging his duty under the Code, and subject to the following disclaimers:

• (i) The RP has furnished and signed the report in good faith and accordingly, no suit, prosecution or other legal proceeding shall lie against the RP in terms of Section 233 of the Code. The financial results enclosed herewith is accepted by the RP in his fiduciary capacity without accepting any personal liability and is only in compliance with the statutory requirement under Regulation 15(2A) of SEBI LODR Regulation and accordingly, no suit, prosecution or other legal proceeding shall lie against the RP. The RP is not liable for any error or misstatement of facts and figures, if any, in the accounts and/ or any disclosure or non-disclosure in the accounts.
• (ii) No statement, fact, information (whether current or historical) or opinion contained herein should be construed as a representation or warranty, express or implied, of the RP including, his authorized representatives and advisors;
• (iii)The RP, in review of the financial results and while signing this statement of financial results, has relied upon the assistance provided by the available Officers of the Corporate Debtor. The statement of financial results of the Corporate Debtor has been taken on record by the RP solely on the basis of

Registered Office: 9-01, HDIL Towers, AnantKanekarMarg, Bandra (East), Mumbai-400051 Tel: +91 2226583500; Website: www.hdil.in; CINNo. L70100MH1996PLC101379

and relying on the statement of the management of the Corporate Debtor. For all such information and data, the RP has assumed that such information and data are in the conformity with the Companies Act. 2013 and other applicable laws with respect to the preparation of the financial statements and that they give true and fair view of the position of the Corporate Debtor as on the date and period indicated therein. Accordingly, the RP is not making any representations regarding accuracy, veracity or completeness of the data or information in the financial statements.

(iv) In terms of the provisions of the Code, the RP is required to undertake a review of certain transactions. Such review has been initiated and the RP may be required to accordingly act on the results of such review in terms of the provisions of the Code.

Regulation 33(3)(b) of the SEBI LODR Regulations, 2015 provides that in case the listed entity has Subsidiaries, in addition to the requirement at clause (a) of sub-regulation (3), the listed entity shall also submit quarterly/year-to-date consolidated financial results. There are 5 (Five) Subsidiaries of the Corporate Debtor. The RP is not in a position to provide the consolidated financial results, as the Subsidiaries of the Corporate Debtor are separate legal entities and the RP is facing huge difficulty in obtaining relevant data from the said Subsidiaries. In view of the above, the RP is constrained to submit the standalone financial results.

The report of Resolution Professional is enclosed herewith as Annexure 1.

The meeting was commenced at 3 p.m. and concluded at $\sqrt{\text{g}}$ -gp.m.

Kindly consider the same for your records.

Thanking you,

For Housing Development and Infrastructure Limited

Abhay Narayan Manudhane Resolution Professional

Encl: As above

REPORT OF THE RESOLUTION PROFESSIONAL

I. Abhay N. Manudhane, have been appointed as an Interim Resolution Professional (IRP) by Hon'ble National Company Law Tribunal (NCLT), Mumbai Bench for conduct of Corporate Insolvency Resolution Process (CIRP) of M/s Housing Development and Infrastructure Ltd (Corporate Debtor) vide Order no. CP (IB) -27/I&BP/MB/2019 dated 20th August, 2019. Thereafter, the Committee of Creditors (CoC) of the Corporate Debtor appointed the undersigned as Resolution Professional for the Corporate Debtor ("RP").

As per the requirements of Insolvency and Bankruptcy Code, 2016, (Code) the IRP/RP has to ensure that the Corporate Debtor remains going concern during CIRP. As the Corporate Debtor is a listed Company and is required to prepare and submit quarterly and year to date financial results as per Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR Regulation), the RP ensured preparation and submission of standalone financial results and statement of assets and liabilities for the quarter and period ended31^st December, 2019. The standalone financial results and statement of assets and liabilities for the quarter and period ended31^st December, 2019 enclosed herewith have been drawn as per accounting practices followed by the Corporate Debtor and records available with the Corporate Debtor.

These financial statements of the Corporate Debtor for the quarter and period ended31st December, 2019mainly pertain to period prior to commencement of the CIRP. Out of the 6 Directors on the suspended Board of Corporate Debtor, 4 Non-Executive Independent Directors had tendered resignation, which CoC has not accepted and Executive Chairman and Vice Chairman & Managing Director are in Judicial Custody and are not available. The Chief Financial Officer and Company Secretary had also resigned which was also not accepted by the CoC. In the absence of the Chief Financial Officer, Company Secretary and other officials who were primarily responsible for closure of accounts and financial reporting, the RP has made all practical and reasonable efforts from time to time to gather details to prepare these financial statements, despite various challenges and complex circumstances, has tried to put in best possible efforts to provide information required by the Auditors for the purpose of carrying out the limited review of the financial statements of the Corporate Debtor.

The RP presumed that the records made available to him are genuine and are properly maintained by the previous management, comprising of Board of Directors and such information and data are in the conformity with the Companies Act, 2013 and other applicable laws with respect to the preparation of the financial results and that they give true and fair view of the position of the Corporate Debtor as of the dates and period indicated therein. The RP, in review of financial results and signing this financial statement has relied upon the assistance provided by the available Officers of the Corporate Debtor.

These financial statements have been signed by the RP while exercising the powers of the Board of Directors of the Corporate Debtor, which has been conferred upon him in terms of the provisions of Section 17 of the Code. The RP has signed these financial statements in good faith, solely for the purpose of compliance and discharging his duty under the Code, and subject to the following disclaimers:

Registered Office: 9-01, HDIL Towers, Anant Kanekar Marg, Bandra (East), Mumbai-400051 Tel: +91 2226583500; Website: www.hdil.in; CINNo. L70100MH1996PLC101379

• (i) The RP has furnished and signed the report in good faith and accordingly, no suit, prosecution or other legal proceeding shall lie against the RP in terms of Section 233 of the Code. The financial results and statement of assets and liabilities enclosed herewith is accepted by the RP in his fiduciary capacity without accepting any personal liability and is only in compliance with the statutory requirement under Regulation 15(2A) of SEBI LODR Regulation and accordingly, no suit, prosecution or other legal proceeding shall lie against the RP. The RP is not liable for any error or misstatement of facts and figures, if any, in the accounts and/ or any disclosure or non-disclosure in the accounts.
• (ii) No statement, fact, information (whether current or historical) or opinion contained herein should be construed as a representation or warranty, express or implied, of the RP including, his authorized representatives and advisors;
• (iii) The RP, in review of the financial results and while signing this statement of financial results, has relied upon the assistance provided by the available Officers of the Corporate Debtor. The statement of financial results of the Corporate Debtor for the quarter and period ended 31^st December, 2019 has been taken on record by the RP solely on the basis of and relying on the statement of the management of the Corporate Debtor. For all such information and data, the RP has assumed that such information and data are in the conformity with the Companies Act. 2013 and other applicable laws with respect to the preparation of the financial statements and that they give true and fair view of the position of the Corporate Debtor as on the date and period indicated therein. Accordingly, the RP is not making any representations regarding accuracy, veracity or completeness of the data or information in the financial statements.
• (iv)In terms of the provisions of the Code, the RP is required to undertake a review of certain transactions. Such review has been initiated and the RP may be required to accordingly act on the results of such review in terms of the provisions of the Code.

Regulation 33(3)(b) of the SEBI LODR Regulations, 2015 provides that in case the listed entity has Subsidiaries, in addition to the requirement at clause (a) of sub-regulation (3), the listed entity shall also submit quarterly/year-to-date consolidated financial results. There are 5 (Five) Subsidiaries of the Corporate Debtor. The RP is not in a position to provide the consolidated financial results, as the Subsidiaries of the Corporate Debtor are separate legal entities and the RP is facing huge difficulty in obtaining relevant data from the said Subsidiaries. In view of the above, the RP is constrained to submit the standalone financial results.

RAYAN MAN SOLVENCE REG. NO.:

200054/2017-18 /10128

OFFSSTON

For Housing Development and Infrastructure Limited

Abhav N Manudhane Resolution Professional Date: 12^th April 2021 Place: Mumbai

dayal and lohia

chartered accountants

Independent Auditor's Report on Quarterly and Half Yearly Unaudited Standalone Financial Results of Housing Development & Infrastructure Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To, The Resolution Professional, Housing Development & Infrastructure Limited Mumbai.

• 1. We have reviewed the accompanying statement of unaudited standalone financial results of Housing Development & Infrastructure Limited ("the Company") for the quarter and half year ended 31st December, 2019, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the Regulation") as amended, read with SEBl Circular No. ClR/CFD/CMDI/44/2019 dated 29th March, 2019 ("the Circular").
• 1. The Company was admitted under the Insolvency and Bankruptcy Code, 2016 ("IBC") on 20th August 2019 vide the order of Hon'ble NCLT (Mumbai Bench). However, the Interim Resolution Professional ("IRP") took charge of the Corporate Debtor on 26th August 2019. The Committee of Creditors (CoC) confirmed the appointment of Shri. Abhay Narayan Manudhane as the Resolution Professional ("RP") (IBBI Regn No: IBBI/IPA-001/IP-P00054/2017-18/10128) in their meeting held on 08th January 2020.
• 1. The preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 (Ind AS 34), "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, read with the Circular, is the responsibility of the RP. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

BASIS FOR DISCLAIMER OF CONCLUSION

Following, amongst others, are some of the important reasons because of which we were not able to obtain sufficient and appropriate audit evidence in order to form a conclusion:

1. Note from the Resolution Professional ("RP")

• a. The RP faced several operational problems while compiling details and finalising accounts due to exodus of critical employees in finance, accounts, banking, secretarial and other departments. No information could be gathered from the management as promoter directors were taken into judicial custody within a month of taking charge by the IRP. Some of the key officials / KMP resorted to non-cooperation which compelled the RP to file an application u/s 19(2) of IBC with the Hon'ble NCLT, Mumbai Bench. At the same time, the investigation by various investigating authorities were going on and the Company officials were engaged in providing details to them on priority. In the intervening period, the previous statutory auditor tendered her resignation due to ill health and could not provide critical information relating to the accounts for previous year(s) wherein she acted as the statutory auditor. The matter further worsened due to nationwide lockdown on account of Covid-19.
• b. Ultimately with available skeleton staff, efforts were made by the RP and his team with the help of externally hired accounting agency to complete the accounts on the basis of whatever information was available on best effort basis. Several serious irregularities were noticed by the RP as also by the transaction cum forensic auditors appointed by the RP which hampered the finalisation of accounts. In addition, due to the reasons mentioned in the notes below, RP was unable to compile true and fair accounts of the Company for the quarter ending on 31st December, 2019.
• c. The quarterly results are prepared and published only for the purpose of meeting the compliances as per SEBI (LODR) Regulations, 2015 and comparative figures of the earlier periods have been taken as published by the earlier management and have not been verified by us.

2. Opening Balances

• a. Due to absence of information including the backup papers and calculations as also due to nonavailability of the erstwhile management and key managerial staff, prior period's closing balances i.e., opening balances for the period under review could not be reconciled with the audited financial statements.

• b. As required by SA 510, "Initial Audit Engagements Opening Balances", the auditor is required to obtain sufficient appropriate audit evidence about whether:

• opening balances contain misstatements that materially affect the current period's financial statements; and

• appropriate accounting policies reflected in the opening balances have been consistently applied in the current period's financial statements, or changes thereto are properly accounted for and adequately presented and disclosed in accordance with the applicable financial reporting framework.

In this regard, as stated in the above-mentioned note, due to lack of sufficient and appropriate evidence, we are unable to comment on the closing balances of the prior period.

3. Non-Current Assets – Property, Plant & Equipment

a. As per Para 9 of Ind AS 36 states that, "An entity shall assess at the end of each reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the entity shall estimate the recoverable amount of the asset."

In view of the uncertainty of resumption of the Company's operations, the management is required to make an assessment of impairment to the carrying value of its assets. Pending resolution of Corporate Insolvency Resolution Process ("CIRP) at the year end, we have been informed that the management has not been able to perform any assessment to determine any impairment to the carrying value of these assets. Consequently, we are unable to conclude if any impairment needs to be recognized to the carrying value of these assets and its consequential effects.

• b. The RP has been unable to amortize the intangible assets due to absence of vital information such as cost of acquisition and useful life.
• c. The opening balances of the fixed assets as per audited financial statements and books of accounts do not match. Since no reconciliation or information is available, we are unable to comment on the same.

4. Investment Property

• a. For the quarter ending 31st December, 2019, due to absence of sufficient information, the Company has not assessed any of the investments for impairment as per Para 9 of Ind AS 36 given at sr. no. 3a above.
• b. The Company has not valued the said investments at Fair Value as per the requirements of the Indian Accounting Standards.
• c. Para 36 of Ind AS 17 states that, "Lessors shall recognise assets held under a finance lease in their balance sheets and present them as a receivable at an amount equal to the net investment in the lease."

However, for the quarter ending 31st December, 2019, the Company has not carried out such calculations or presentation for the adjustments required to be made under Ind AS 17.

5. Non-Current Investments

• a. We have not been provided with any details, ownership documents or any supporting information with respect to the investments in subsidiaries and shares.
• b. For the quarter ending 31st December, 2019, due to absence of sufficient information, the Company has not assessed any of the above investments for impairment as per Para 9 of Ind AS 36 given at sr. no. 3a above.
• c. The Company has not valued the said investments at Fair Value as per the requirements of the Indian Accounting Standards.
• d. Guruashish Construction Private Limited, a wholly owned subsidiary of the Company has been ordered to be liquidated under the Insolvency and Bankruptcy Code, 2016 by the Hon'ble National Company Law Tribunal. Accordingly, the fair value of the investment as on 31st December, 2019 stands at nil. However, the Company has provided for the same only at the end of the year.
• e. Due to the non-availability of audited financial statements of the subsidiaries and associates of the Company, the Company has been unable to prepare the consolidated financial statements of the group for the quarter and half-year ending 31st December, 2019.

6. Other Non-Current Financial Assets

a. Details and documents relating to guarantee obligation commission were not provided to us for verification and therefore we cannot comment on the same.

7. Inventories

a. RP has stated that physical verification of the inventory has been carried out at the time of taking charge of the Company and the discrepancies, to the extent ascertained, have been adjusted in the books by making appropriate provisions at the year end. Therefore, no provisions are made as on 31st December, 2019.

8. Current Investments

• a. We have not been provided with any details, ownership documents or any supporting information with respect to investments made by the Company in partnership firms.

• b. For the quarter ending 31st December, 2019, due to absence of sufficient information, the Company has not assessed any of the above investments for impairment as per Para 9 of Ind AS 36 given at sr. no. 3a above.

• c. The Company has not valued the said investments at Fair Value as per the requirements of the Indian Accounting Standards.

• d. Due to the non-availability of audited financial statements of the partnership firms, the Company has been unable to prepare the consolidated financial statements of the group for the quarter and half-year ending 31st December, 2019.

9. Trade receivables

a. Given the on-going resolution process and the ageing of trade receivables outstanding in the books of accounts, the recoverability of such debtors is in question. However, provisions have been created for the same by the Company only at the year end. Therefore, there is no provision for doubtful debts as on 31st December, 2019.

10. Cash and Cash Equivalents

• a. Physical cash balance verification for petty cash book was carried out by the RP on 29th July, 2020 wherein the physical cash was found short by INR 0.29 lakhs. Further, No physical cash was available against the book balances in the Main Cash Book and Imprest Cash to Employees. The reason for the discrepancies could not be ascertained and therefore, no effect of the same has been given in the accounts. No cash balance verification has been done for quarter ending 31st December, 2019 due to which we are unable to comment on the same.
• b. Balance confirmations from the banks could not be obtained for any of the accounts maintained in the name of the Company.
• c. All bank accounts could not be reconciled with the bank statements due to non-availability of details.
• d. Owing to the above limitations, we are unable to express an opinion on cash & cash equivalents and the receipts and payments transactions during the period under review.

11. Other Bank Balances

a. Due to lack of relevant information, the Company has not been able to estimate and thereby account for the interest accrued on the deposits for quarter ending 31st December, 2019.

12. Other Financial Assets

a. Proper documentation or balance confirmations from the parties regarding loans given by the Company to its subsidiaries were not available for verification. The Company has provided for such loans only at the year end and not as on quarter ending 31st December, 2019.

13. Other Current Assets

a. The Company has given advances to vendors and towards land purchase / tenancy / claims / development rights. However, proper documentation or balance confirmations from the parties were not available for verification. The Company has provided for such loans only at the year end and not as on quarter ending 31st December, 2019.

14. Reserves and Surplus

a. We refer to Debenture Redemption Reserve (DRR) being reflected in the books at INR 22,489.52 lakhs at the beginning of the financial year. On the first day of the financial year (April 01, 2019), the entire amount has been nullified and transferred to General Reserves. Consequently, the balance of DRR as on 31st December, 2019 is NIL.

As per Section 71 of Companies Act, 2013, "Where debentures are issued by a company under this section, the company shall create a debenture redemption reserve account out of the profits of the company available for payment of dividend and the amount credited to such account shall not be utilised by the company except for the redemption of debentures."

However, the company has reversed the entire balance of the said Reserve but the debentures have not been redeemed. No reasoning or documents for such adjustment was made available to us. Therefore, no comment is being made on the same.

15. Non-Current Provisions

a. As per Para 66 of Ind AS 19 – "Employee Benefits",

In order to measure the present value of the post-employment benefit obligations and the related current service cost, it is necessary:

• (a) to apply an actuarial valuation method;
• (b) to attribute benefit to periods of service; and
• (c) to make actuarial assumptions

However, during the quarter, due to lack of appropriate information, the Company has not been able to obtain an actuarial valuation as required under the provisions of Ind AS 19. Hence, the provisions have been made based on the estimates of last year.

16. Current Borrowings - Term Loans and Debentures

a. As statutorily required, the IRP made a public announcement on 29th August 2019 inviting claims from creditors of the Company. In response to the public announcement, the IRP received claims of INR 7,97,536.02 lakhs from financial creditors (including INR 1,06,877.21 lakhs from home buyers), INR 1,31,900.00 lakhs from operational creditors and INR 1,160.14 lakhs from the employees.

• b. In case of Non-Convertible Debentures, cheques towards repayment were issued on the last day of every financial year, thereby showing payment and nullifying the liability. The said cheques were reversed on the very next day, i.e., on the first day of the next financial year, thereby reinstating the liability again. Neither the debenture statement nor a satisfactory explanation for such transactions could be obtained from the erstwhile management/concerned officers.
• c. For the quarter ending on 30th June, 2019, Ind AS adjustments relating to unwinding of finance cost amounting to INR 23.26 lakhs have been made in the books of accounts. However, the relevant documents and calculations could not be obtained from the erstwhile management. Hence similar adjustment, if any, has not been made for subsequent period.

17. Trade Payables

a. Some of the Expenses have been accounted for but the same have not been credited to the respective vendor's personal accounts. They are reflected in the control accounts maintained by the Company.

18. Other Current Liabilities

a. We have not received any workings, calculations or statements quantifying the liabilities of any statutory dues, including Service Tax, VAT, Tax Deducted at Source (TDS) Tax Collected at Source (TCS), Provident Fund, ESIC, Profession Tax and Goods & Services Tax (GST) for quarter ending 31st December, 2019.

19. Revenue and Other Income:

• a. As per the Accounting Policy mentioned in the audited financials for F.Y. 2018-2019, the Company stated that it follows "Project Completion Method" which is a deviation from the requirement of Ind AS 18. Ind AS 18 prescribes the "percentage of completion method" for recognition of revenue. However, in absence of complete information about the on-going projects of the Company and the total estimated costs, the same could not be followed.
• b. The Company has not made any adjustments for IND AS recognition of Lease revenue for quarter ending 31st December, 2019.

20. Expenses:

• a. Cost of Sales includes credits relating to "Settlement Cost of Projects" for which we have not received any explanation or documents from the Company.
• b. Due to non-availability of complete information, cost of material consumed is not calculated from changes in work in progress. The said figure is arrived at based on the figures appearing in the books of accounts.

21. Ongoing investigations:

a. The Company is faced with certain on-going investigations initiated by governmental authorities such as Enforcement Directorate (ED), Economic Offences Wing (EOW), Serious Fraud Investigation Office (SFIO) and Central Bureau of Investigation (CBI). However, the outcome of such investigations and its effect on the financial statements cannot be ascertained.

22. Comparative figures:

a. Comparative figures of the earlier periods have been taken as published by the earlier management and have not been verified by us.

MATERIAL UNCERTAINTY RELATING TO GOING CONCERN

The Company has been referred to National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 (the Code), and there is considerable decline in level of operations of the Company and it continues to incur losses. The Company is a co-obligor and has received demand notices in respect of borrowings of other obligors / borrowers. Since Corporate Insolvency Resolution Process (CIRP) is currently in progress, as per the Code, it is required that the Company be managed as a going concern during CIRP. Accordingly, the results are continued to be prepared on going concern basis. However, there exists a material uncertainty about the ability of the Company to continue as a "Going Concern". The same is dependent upon the resolution plan to be approved by the Hon'ble National Company Law Tribunal. The appropriateness of the preparation of the results on going concern basis is critically dependent upon CIRP as specified in the Code. Necessary adjustments required on the carrying amount of assets and liabilities are not ascertainable at this stage.

DISCLAIMER OF CONCLUSION

Because of the significance of the matters described under the "Basis for disclaimer of conclusion" para, we have not been able to obtain sufficient appropriate evidence as to whether the Statement has been prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India or state whether the Statement has disclosed the information required to be disclosed in terms of the Regulation, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Dayal and Lohia Chartered Accountants Firm Regn. No. 102200W

ANIL LOHIA Digitally signed by ANIL LOHIA Date: 2021.04.12 16:15:13 +05'30'

Anil Lohia (Partner) M No. 31626

UDIN : 21031626AAAAEN1665 Place : Mumbai, Date : 12th April, 2021

HOUSING DEVELOPMENT AND INFRASTRUCTURE LIMITED REGISTERED OFFICE : 9-01, HDIL TOWERS, ANANT KANEKAR MARG, BANDRA EAST, MUMBAI - 400 051 CIN NUMBER - L70100MH1996PLC101379

WEB ADDRESS - www.hdil.in

UNAUDITED FINANCIAL RESULTS For the Quarter & Nine Month ended 31st December 2019

	PARTI						(Rs. In lakhs)
			Ouarter Ended		Nine Month Ended		Year ended
Sr.		31st December			30th Sept 2019 31st December 31st December 31st December		31st March
N o	Particulars	2019		2018	2019	2018	2019
		$\mathbf{I}$	$\overline{2}$	$\overline{3}$	$\overline{\mathbf{4}}$	$\overline{5}$	6
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
		180.98	34,633.71	8,807.00	41,238.27	55,467.00	58,376.30
	Net Sales/Income from Operations	138.49	428.59	388.00	943.45	1,271.00	1,744.13
$\overline{2}$	Other Income	319.46	35,062.31	9,195.00	42,181.72	56,738.00	60,120.43
$\overline{\mathbf{3}}$	Total Income
4	Total Expenditure
	(a) Cost of Raw Materials Consumed	305.71	33,732.01	3,322.00	41,951.72	12,644.00	22,882.45
	(c) Changes in inventories of finished goods,	۵	46,797.36	(502.00)	43,223.36	13,583.00	1,224.01
	work-in-progress and stock-in-trade
	(d) Employees benefit expenses	492.86	496.36	521.00	1,527.22	1,701.00	2,230.44
	(f) Finance Cost	0.20	7,698.38	4,226.00	11,094.58	15,630.00	19,186.67
	(g) Depreciation	113.25	511.47	106.00	744.72	408.00	539.43
	(h) Other Expenditure	121.23	3,288.61	444.00	757.79	1,907.00	2,269.81
	(i) Total Expenses	1,033.24	92,524.20	8,117.00	99,299.39	45,873.00	48,332.81
	5 Profit from operations before exceptional items	(713.78)	(57, 461.90)	1,078.00	(57, 117.67)	10,865.00	11,787.62
	and extra ordinary items (3-4)
6	Exceptional items		333.51		333.51
7	Profit before extra ordinary items (5-6)	(713.78)	(57, 795.40)	1,078.00	(57, 451.18)	10,865.00	11,787.62
8	Extraordinary items
	Profit before Tax (7-8)	(713.78)	(57, 795.40)	1,078.00	(57, 451.18)	10,865.00	11,787.62
	10 Provision for Taxation
	i) Income Tax		(228.00)	193.00		2,319.00	2,246.13
	ii) Deferred Tax (Refer Note no 6)		(30.48)	(31.00)		(69.00)	(76.63)
	iii) Tax for Earlier Years
	Total Tax Expenses		(258.48)	162.00		2,250.00	2,169.50
	11 Profit for the period (9-10)	(713.78)	(57, 536.92)	916.00	(57, 451.18)	8,615.00	9,618.12
	12 Other Comprehensive Income (OCI)
	Items that will not be reclassified to Profit or Loss
	i) Remeasurement gain/(loss) on defined benefit plan
			(19.00)	(65.00)		(70.00)	(46.00)
	Total Other Comprehensive Income (OCI) net of tax		(19.00)	(65.00)		(70.00)	(46.00)
	13 Total Comprehensive Income (11-12)	(713.78)	(57, 555.92)	851.00	(57, 451.18)	8,545.00	9,572.12
	14 Paid Up Equity Share Capital	47,400.40	47,400.40	45,400.40	47,400.40	45,400.40	45,400.00
	(Face Value of Rs. 10/- Per Share)
	15 Reserves Excluding Revaluation			ц	10,67,904.00	11,25,391.00	11,26,171.56
	16 Earning Per Share (EPS) in Rs.
	a) Basic EPS (not annualised)	(0.15)	(12.27)	0.19	(12.24)	1.88 1.88	2.11 2.11
	b) Diluted FPS (not annualised)	(0.15)	(12.27)	0.19	(12.24)

HOUSING DEVELOPMENT AND INFRASTRUCTURE LIMITED

REGISTERED OFFICE : 9-01, HDIL TOWERS, ANANT KANEKAR MARG, BANDRA EAST, MUMBAI - 400 051

CIN NUMBER - L70100MH1996PLC101379

WEB ADDRESS - www.hdil.in

(Rs. In lakhs) Nine Month Ended Quarter Ended Sr Year ended 31st December 30th Sept 2019 31st December 31st December 31st December 31st March N₀ Particulars 2018 2018 2019 2019 2019 (Audited) (Unaudied) (Unaudied) (Unaudied) (Unaudied) (Unaudited) 1 Segment revenue 41,238.27 55,467.00 58,376.30 880700 180.98 34.633.71 Construction Business ä. 58,376.30 41,238.27 55,467.00 8.807.00 Net sales / Income from operations 180.98 34,633.71 2 Segment result Profit after depreciation but before interest and taxation 30,974.29 $(46,023,10)$ 26,495.00 5.304.00 $(713.58)$ $(49, 763.52)$ Construction Business 26 495 00 30,974.29 $(46,023,10)$ $(49,763.52)$ 5,304.00 $(713.58)$ Total Less: 19,186.67 15,630.00 4,226.00 11,094.58 $0.20$ 7,698.38 i) Interest ii) Other un- allocable expenses - net $(57, 461.90)$ 1,078.00 $(57, 117.67)$ 10,865.00 11,787.62 $(713.78)$ Profit before Tax & Exceptional item 333.51 333.51 Exceptional item 11,787.62 $(57, 451.18)$ 10,865.00 1.078.00 $(713.78)$ $(57, 795.40)$ Profit hefore tax $\overline{\mathbf{3}}$ Capital employed (Segment Assets-Segment Liabilities) 11,84,893.13 11.19.143.33 11,84,893.13 11,19,143.33 11, 19, 143.33 11,19,773.91 Construction Business

Segmentwise revenue, results and capital employed under Clause 41 of the Listing Agreement

Notes:

$\mathbf{1}$

The Company was admitted under the Insolvency and Bankruptcy Code, 2016 ("IBC") on 20th August 2019 vide the order of Hon'ble NCLT (Mumbai Bench). However, the Interim Resolution Professional ("IRP") took charge of the Corporate Debtor on 26th August 2019. The Committee of Creditors (CoC) confirmed the appointment of Shri. Abhay Narayan Manudhane as the Resolution Professional ("RP") in their meeting held on 08th January 2020.

The RP faced several operational problems while compiling details and finalising accounts due to exodus of critical employees in finance, accounts, banking, secretarial and other departments. No information could be gathered from the management as promoter directors were taken into judicial custody within a month of taking charge by the IRP. Some of the key officials / KMP resorted to non-cooperation which compelled the RP to file an application $\psi$ 's 19(2) of IBC with the Hon'ble NCLT, Mumbai Bench. At the same time, the investigation by various investigating authorities were going on and the Company officials were engaged in providing details to them on priority. In the intervening period, the previous statutory auditor tendered her resignation due to ill health and could not provide critical information relating to the accounts for previous year(s) wherein she acted as the statutory auditor. The matter further worsened due to nationwide lockdown on account of Covid-19.

Ultimately with available skeleton staff, efforts were made by the RP and his team with the help of externally hired accounting agency to complete the accounts on the basis of whatever information was available on best effort basis. Several serious irregularities were noticed by the RP as also by the transaction cum forensic auditors appointed by the RP which hampered the finalisation of accounts. In addition, due to the reasons mentioned in the notes below, RP was unable to compile true and fair accounts of the Company.

The quarterly results are prepared and published only for the purpose of meeting the compliances as per SEBI (LODR) Regulations, 2015 and comparative figures of the earlier periods have been taken as published by the earlier management and have not been verified by us.

Due to non-availability of sufficient information, RP has not been able to re-group and re-state the figures for the previous quarter / half year / year.

Due to absence of information including the backup papers and calculations as also due to non-availability of the erstwhile management and key managerial $\overline{2}$ staff, prior period's closing balances i.e., opening balances for the period under review could not be reconciled with the audited financial statements.

As reported by the transaction cum forensic auditors, there were numerous misstatements and errors in the classification and presentation of information in the financial statements of the prior years. However, due to non-availability of complete information, the said misstatements and errors could not be rectified.

• As per the Accounting Policy mentioned in the audited financials for F.Y. 2018-2019, the Company stated that it follows "Project Completion Method" which is a deviation from the requirement of Ind AS 18. Ind AS 18 prescribes the "percentage of completion method" for recognition of revenue. However, in absence $3^{\circ}$ of complete information about the on-going projects of the Company and the total estimated costs, the same could not be followed.
• Due to non-availability of complete information, cost of material consumed is not calculated from changes in work in progress. The said figure is arrived at $\overline{\mathbf{4}}$ based on the figures appearing in the books of accounts.
• The Company has created Employee's Group Gratuity Fund with Life Insurance Corporation of India, and obtained Group Gratuity Assurance Policy from LIC 5 for the benefit of employees.
• Cost of material consumed includes credits of INR 9,106.08 lakhs relating to "Settlement Cost of Projects". No information or explanation is available for the 6 same
• In the absence of information, Interest Received Ind AS adjustment and Finance Expenses Ind AS adjustment are not made in the quarter.
• In absense of availability of Information & details, we have considered the amount of deffered tax during the quarter and nine months ended as appeared in the 8 books and the same has been calculated at 31.03.2020 in Annual Financial Statement.
• In absense of availability of information / details, Third quarter results has been prepared by deducting amount of Half yearly results from Nine month results. 9 In absence of vital information such as cost of acquisition and useful life, Intangible assets are not amortize. 10
• 11 Due to absence of information Investments are not valued at Fair Value as per the requirements of the Indian Accounting Standards.
• 12 Guruashish Construction Private Limited, a wholly owned subsidiary of the Company has been ordered to be liquidated under the Insolvency and Bankruptcy Code, 2016 by the Hon'ble National Company Law Tribunal. Accordingly, the fair value of the investment as at the quarter and nine months end stands at nil. However, the same has been provided for only at the end of the year.
• 13 Due to the non-availability of audited financial statements of the subsidiaries and associates of the Company, the Company has been unable to prepare the consolidated financial statements of the group for the quarter and nine months ending 31st December, 2019.
• 14 RP has carried out physical verification of the inventory at the time of taking charge of the Company and the discrepancies, to the extent ascertained, have been adjusted in the books by making appropriate provisions at the year end. Therefore, no provisions are made as on 31st December, 2019
• 15 Due to absence of sufficient information, investments in partnership firm are not assessed for impairment, if any
• 16 The recoverability of debtors is in question. However, provisions have been created for the same only at the year end. Therefore, there is no provision for doubtful debts during the quarter and nine months ending 31st December, 2019.
• 17 Physical cash balance verification for petty cash book was carried out by the RP on 29th July, 2020 wherein the physical cash was found short by INR 0.29 lakhs. Further, No physical cash was available against the book balances in the Main Cash Book and Imprest Cash to Employees. The reason for the discrepancies could not be ascertained and therefore, no effect of the same has been given in the accounts. No cash balance verification has been done for quarter ending 31st December, 2019 due to which we are unable to comment on the same.
• 18 All bank accounts could not be reconciled with the bank statements due to non-availability of details
• 19 Fixed Deposits amounting to INR 11,888.86 lakhs have been encashed on 19th August, 2019 i.e. just a day before the commencement of the CIRP process by the erstwhile promoters. The remaining deposits are seized by various government authorities.
• 20 Due to lack of relevant information, the Company has not been able to estimate and thereby account for the interest accrued on the deposits for quarter ending 31st December, 2019
• 21 Regarding Loans Given to Subsidiaries has been provided only at the year end and not as on quarter ending 31st December, 2019.
• 22 The Company has given advances to vendors and towards land purchase / tenancy / claims / development rights. However, proper documentation or balance confirmations from the parties were not available for verification. The Company has provided for such loans only at the year end and not as on quarter ending 31st December, 2019
• 23 Debenture Redemption Reserve (DRR) being reflected in the books at INR 22,489.52 lakhs at the beginning of the financial year. On the first day of the financial year (April 01, 2019), the entire amount has been nullified and transferred to General Reserves. Consequently, the balance of DRR as on 31st December, 2019 is NIL but the debentures have not been redeemed.
• 24 Due to lack of appropriate information, the Company has not been able to obtain an actuarial valuation as required under the provisions of Ind AS 19. Hence, the provisions have been made based on the estimates of last year
• 25 Due to non availability of information Ind AS adjustments relating to unwinding of finance cost is not made during the quarter.

26 The Company has not made any adjustments for IND AS recognition of Lease revenue for quarter ending 31st December, 2019.

27 The Company is faced with certain on-going investigations initiated by governmental authorities such as Enforcement Directorate (ED), Economic Offences Wing (EOW), Serious Fraud Investigation Office (SFIO) and Central Bureau of Investigation (CBI). However, the outcome of such investigations and its effect on the financial statements cannot be ascertained.

28 The Third Quarter Results were taken on records on 12th April 2021.

As per my report 2 evendate

YAN MAN uness OLVENCY REG. NO. $-001/IP$ TRRIAT 4/2017-18 /10128 Abhay Manudhane OFESSIONA Resolution Professional IBBI Regn No:IBBI/IPA-001/IP-P00054/2017-18/10128

Place: Mumbai Date: 12th April, 2021

HOUSING DEVELOPMENT AND INFRASTRUCTURE LIMITED REGISTERED OFFICE : 9-01, HDIL TOWERS, ANANT KANEKAR MARG, BANDRA EAST, MUMBAI - 400 051 CIN NUMBER - L70100MH1996PLC101379

WEB ADDRESS - www.hdil.in

				(Rs. In Lakhs)
Particulars	Quarter	ending Nine Month Ended Corresponding		Year Ended
			31st December 2019 31st December 2019 Quarter Ended 31st 31st March 2019
			December 2018
	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
Total Income from operations (net)	319.46	42,181.72	9,195.00	60,120.43
Net Profit / (Loss) for the period (before Tax,
Exceptional and/or Extra ordinary items)
	$-713.78$	$-57,117.67$	1,078.00	11,787.62
Net Profit / (Loss) for the period before Tax (after
Exceptional and/or Extra ordinary items)
	$-713.78$	$-57451.18$	1078.00	11787.62
Net Profit / (Loss) for the period after tax,
Exceptional and or extraordinary items)
	$-713.78$	$-57451.18$	916.00	9618.12
Total Comprehensive Income for the period
[Comprising Profit/(Loss) for the period (after tax)
and other Comprehensive Income (after tax)]
	(713.78)	(57, 451.18)	851.00	9,572.12
Equity Share Capital	47,400.40	47,400.40	45,400.40	45,400.00
Reserves (Excluding Revaluation Reserve as shown
in the Balance Sheet of previous year
	0.00	10,67,904.00	0.00	11,26,171.56
Earning Per Share (before extraordinary items) (of
Rs. 10/- each)
Basic - Rs.	$-0.15$	$-12.25$	0.19	2.11
Diluted - Rs.	$-0.15$	$-12.25$	0.19	2.11
Earning Per Share (after extraordinary items) (of
Rs. 10/- each)
			0.19	2.11
Basic - Rs.	$-0.15$	$-12.24$ $-12.24$	0.19	2.11
Diluted - Rs.	$-0.15$

Extract of Unaudited Financial Results for the Quarter & Nine Month ended 31st December 2019

Place: Mumbai Date: 12th April, 2021

For Housing Development and Infrastructure Limited M UIN NO.:-TREM $001$ /IP $7 - 18$ /10128 OFESSION

Abhay Manudhane Resolution Professional TBBI Regn No:IBBI/IPA-001/IP-P00054/2017-18/10128