Lodha Developers Limited — Interim / Quarterly Report 2022

Nov 15, 2021

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November 15, 2021

BSE Limited

The National Stock Exchange of India Limited

Corporate Relationship Department Limited Phiroze Jeejeebhoy Towers Corporate Communications Department Dalal Street Exchange Plaza, 5[th] floor Mumbai 400 001 Bandra Kurla Complex, Bandra (East) Mumbai 400 051 BSE Scrip Code : 543287 NSE Scrip Symbol : LODHA Debt Segment - DB - LDPL23 & DB-LODL23

Sub: Outcome of the Committee for Fund Raise Meeting held on November 15, 2021

Dear Sir/ Madam,

We wish to inform you that the Committee for Fund Raise (“ Committee ”) at its meeting held today i.e. November 15, 2021 has, inter alia , approved the unaudited condensed consolidated interim financial statements as at and for the six months ended September 30, 2021 along with the review report issued by MSKA & Associates, Chartered Accountants, Statutory Auditors of the Company and a copy of the same is attached her ewith.

The meeting of the Committee commenced at 2:00 p.m. and concluded at 3:30 p.m.

We request you to take the above on record and the same be treated as compliance under the applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

Thanking you,

Yours faithfully,

For Macrotech Developers Limited

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Sanjyot Rangnekar Company Secretary and Compliance Officer

Encl: As above.

Macrotech Developers Limited : Lodha Excelus , NM Joshi Marg, Mahalaxmi, Mumbai 400 011, India • T + 91 22 6133 4400 Regd. Office : 412, Floor-4, 17G Vardhaman Chamber, Cawasji Patel Road, Horniman Circle, Fort, Mumbai 400 001, India CIN: L45200MH1995PLC093041

www.lodhagroup.in

Report on Review of the Unaudited Condensed Interim Consolidated Financial Statements

To the Board of Directors of Macrotech Developers Limited

We have reviewed the accompanying Unaudited Condensed Interim Consolidated Financial Statements of Macrotech Developers Limited (“the Company or Holding Company”) and its subsidiaries (including Limited Liability Partnership) (together referred to as the “the Group”), its associate and jointly controlled entities, which comprise the Unaudited Condensed Interim Consolidated Balance Sheet as at September 30, 2021 and the Unaudited Condensed Interim Consolidated Statement of Profit and Loss, including other comprehensive income, Unaudited Condensed Interim Consolidated Cash Flow Statement and the Unaudited Condensed Interim Consolidated Statement of Changes in Equity for the six-months period then ended and a summary of select explanatory notes (together hereinafter referred to as the “Unaudited Condensed Interim Consolidated Financial Statements”). The Unaudited Condensed Interim Consolidated Financial Statements have been prepared by the Company solely in connection with a proposed fund-raising transaction in accordance with the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended.

Responsibilities of Management for the Unaudited Condensed Interim Consolidated Financial Statements

The Holding Company‟s Board of Directors is responsible for the preparation of these Unaudited Condensed Interim Consolidated Financial Statements in accordance with the recognition and measurement principles laid down as per the requirements of Indian Accounting Standard (Ind AS 34) “Interim Financial Reporting” specified under section 133 of the Companies Act, 2013 (the “Act”), read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Unaudited Condensed Interim Consolidated Financial Statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Unaudited Condensed Interim Consolidated Financial Statements

We conducted our review in accordance with the Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditors of the Entity”, issued by the Institute of Chartered Accountants of India. This standard require that we plan and perform the review to obtain moderate assurance as to whether the Unaudited Condensed Interim Consolidated Financial Statements are free from material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion. Our responsibility is to express a conclusion on the Unaudited Condensed Interim Consolidated Financial Statements based on our review.

Emphasis of Matter

We draw attention to Note 5(viii) to the Unaudited Condensed Interim Consolidated Financial Statements which describes the management's assessment of the COVID-19 pandemic on the Group's Interim Financial Statements and the extent to which it with impact the Group's operations is dependent upon future developments, which remain uncertain.

Our conclusion, as mentioned below, on the Unaudited Condensed Interim Consolidated Financial Statements is not modified in respect of the above matter.

Conclusion

Based on our review conducted as above and based on the consideration of the review reports of other auditors referred to in Other Matters paragraph below, nothing has come to our attention that causes us to believe that the accompanying Unaudited Condensed Interim Consolidated Financial Statements are not prepared, in all material respects, in accordance with the recognition and measurement principles of Ind AS 34 as specified under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India.

Other matters

• (i) We did not review the Interim Financial Statements of 13 subsidiaries included in the Unaudited Condensed Interim Consolidated Financial Statements, whose Interim Financial Statements reflect total assets of Rs. 5,165.63 crores as at September 30, 2021 and Total Income of Rs.242.92 crores, total loss after tax of Rs. 14.38 crores and total comprehensive loss of Rs.14.38 crores and cash inflow (net) of Rs. 45.18 crores for the six-months period ended September 30, 2021, as considered in the Unaudited Condensed Interim Consolidated Financial Statements. The Unaudited Condensed Interim Consolidated Financial Statements also include Group‟s share of net loss after tax in respect of 3 subsidiaries of a joint venture of Rs. NIL for the six-months period ended September 30, 2021.These Interim Financial Statements have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Unaudited Condensed Interim Consolidated Financial Statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and joint venture is based solely on the reports of the other auditors and the procedures performed by us as stated above.

• (ii) The Unaudited Condensed Interim Consolidated Financial Statements includes the Interim Financial Statements of 2 subsidiaries which have not been reviewed by their auditor, whose Interim Financial Statements reflect total assets of Rs. 7.45 crores as at September 30, 2021 and Total Income of Rs. 0.02 crores, total net loss after tax of Rs. 0.05 crores and total comprehensive loss of Rs. 0.05 crores and cash outflow (net) of Rs. 0.03 crores for the six-months period ended September 30, 2021, as considered in the Unaudited Condensed Interim Consolidated Financial Statements. The Unaudited Condensed Interim Consolidated Financial Statements also includes the Group‟s share of net profit after tax of Rs.0.65 crores for the six-months period ended September 30, 2021, as considered in the Unaudited Condensed Interim Consolidated Financial Statements, in respect of 1 associate and 2 joint ventures [including its subsidiaries other than as referred in para (i) above], based on their Interim Financial Statements which have not been reviewed by their auditors. These Interim Financial Statements have been furnished to us by the management and our conclusion on the Unaudited Condensed Interim Consolidated Financial Statements in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, associate and joint ventures is based solely on such management prepared Interim Financial Statements. According to the information and explanations given to us by the Management, these Interim Financial Statements are not material to the Group.

• (iii) The Group had prepared separate Statement of Unaudited Consolidated Financial Results (the „Consolidated Financial Results‟) for the six-months ended September 30, 2021, in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting”, on which we had issued a separate auditor‟s review report dated October 21, 2021. These Unaudited Consolidated Financial Results were prepared for submission by the Holding Company

pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

• (iv) The Group had prepared separate Statement of Unaudited Consolidated Financial Results for the six-months ended September 30, 2020 in accordance with the recognition and measurement principles laid down in lnd AS 34 'lnterim FinanciaI Reporting' and on which we had issued a separate auditor‟s review report dated November 8, 2020 for the purpose of internaI management review.

Our conclusion on the Unaudited Condensed Interim Consolidated Financial Statements is not modified in respect of the above matters.

Restriction of use

The accompanying Unaudited Condensed Interim Consolidated Financial Statements have been prepared solely in connection with a proposed fund-raising transaction by the Company in accordance with the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. Accordingly, this report should not be used, referred to or distributed for any other purpose.

For MSKA & Associates Chartered Accountants

ICAI Firm Registration No. 105047W

Bhavik L. Shah Partner Membership No. 122071 UDIN: 21122071AAAANX8351

Place: Mumbai Date: November 15, 2021

MACROTECH DEVELOPERS LIMITED

UNAUDITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEET AS AT 30TH SEPTEMBER, 2021

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Notes As at As at
30-September-21 31-March-21
₹ in Crore ₹ in Crore
(Unaudited) (Audited)
ASSETS
Non-Current Assets
Property, Plant and Equipment 1,104.80 1,122.57
Capital Work-in-Progress - 6.29
Investment Property 270.14 276.65
Goodwill 542.59 546.68
Other Intangible Assets 0.25 0.40
Investments accounted for using the Equity Method 59.70 58.72
Financial Assets
Investments 108.79 222.49
Loans 3,971.46 3,499.01
Other Financial Assets 344.11 253.88
Deferred Tax Assets (net) 127.58 209.86
Non - Current Tax Assets (net) 247.90 209.24
Other Non-Current Assets 39.37 66.51
Total Non-Current Assets 6,816.69 6,472.30
Current Assets
Inventories 28,229.04 28,300.71
Financial Assets
Investments 72.09 1,298.18
Loans 242.03 452.85
Trade Receivables 695.09 654.53
Cash and Cash Equivalents 558.40 227.58
Bank Balances other than Cash and Cash Equivalents 138.78 139.22
Other Financial Assets 849.98 827.87
Other Current Assets 1,033.14 934.87
Total Current Assets 31,818.55 32,835.81
Total Assets 38,635.24 39,308.11
EQUITY AND LIABILITIES
Equity
Equity Share Capital 447.32 395.88
Other Equity
Security Premium 2,606.14 212.79
Retained Earnings 3,515.72 2,960.88
Other Reserves 847.29 1,029.41
Equity attributable to Owners of the Company 7,416.47 4,598.96
Non-Controlling Interests 494.48 526.89
Total Equity 7,910.95 5,125.85
Non-Current Liabilities
Financial Liabilities
Borrowings 2 4,372.05 4,267.58
Trade Payables
Due to Micro and Small Enterprises 32.77 69.20
Due to Others 42.15 95.96
Other Financial Liabilities 170.76 163.60
Provisions 18.40 16.05
Other Non-Current Liabilities 94.19 95.09
Deferred Tax Liabilities (net) 15.40 0.07
Total Non-Current Liabilities 4,745.72 4,707.55
Current Liabilities
Financial Liabilities
Borrowings 3 10,776.35 13,925.31
Trade Payables
Due to Micro and Small Enterprises 250.99 292.93
Due to Others 847.53 1,239.70
Other Financial Liabilities 2,451.68 2,202.63
Provisions 6.07 5.19
Current Tax Liabilities (net) 52.41 51.96
Other Current Liabilities 11,593.54 11,756.99
Total Current Liabilities 25,978.57 29,474.71
Total Liabilities 30,724.29 34,182.26
Total Equity and Liabilities 38,635.24 39,308.11
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Significant Accounting Policies See accompanying notes to the Unaudited Condensed Interim Consolidated Financial Statements

As per our attached report of even date For MSKA & Associates Chartered Accountants Firm Registration Number: 105047W

Bhavik L. Shah (Partner) Membership No. 122071

For and on behalf of the Board of Directors of Macrotech Developers Limited

Mukund Chitale (Chairman) DIN: 00101004

Abhishek Lodha (Managing Director and CEO) DIN: 00266089

Sushil Kumar Modi (Chief Financial Officer)

Sanjyot Rangnekar (Company Secretary) Membership No. F4154

Place : Mumbai Date : 15-November-2021

MACROTECH DEVELOPERS LIMITED

UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2021

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Particulars Notes For the six months ended For the six months ended
30-September-21 30-September-20
₹ in Crore ₹ in Crore
(Unaudited) (Unaudited)
I INCOME
Revenue from Operations 4 3,729.20 1,400.91
Other Income 184.82 159.81
Total Income 3,914.02 1,560.72
II [EXPENSES]
Cost of Projects 2,493.38 1,079.41
Employee Benefits Expense 181.64 125.05
Finance Costs 401.30 545.27
Depreciation, Amortisation and Impairment Expense 37.06 38.12
Other Expenses 286.51 105.55
Total Expenses 3,399.89 1,893.40
III [Profit/ (Loss) Before Exceptional item and Share of Net Profit/ ]
514.13 (332.68)
(Loss) in Associate and Joint Venture (I-II)
Share of Net Profit/ (Loss) in Associate and Joint Ventures 0.65 (0.02)
IV [Profit/ (Loss) Before Exceptional Items and Tax] 514.78 (332.70)
Exceptional Items 10 - (460.00)
V [Profit/ (Loss) Before Tax] 514.78 (792.70)
VI Tax Expense:
Current Tax (6.96) (18.61)
Deferred Tax (123.71) 315.32
Total Tax Expense (130.67) 296.71
VII [Profit/ (Loss) for the period] 384.11 (495.99)
VIII [Other Comprehensive Income (OCI)]
A Items that will not be reclassified to Statement of Profit and Loss
Re-measurement of defined benefit plans (2.08) (0.44)
Income Tax effect 0.72 0.15
(1.36) (0.29)
B Items that will be reclassified to Statement of Profit and Loss
Foreign Currency Translation Reserve (1.97) 2.65
Total Other Comprehensive Income/ (Loss) (net of tax) (A+B) (3.33) 2.36
IX [Total Comprehensive Income/ (Loss) for the period (VII+VIII)] 380.78 (493.61)
Profit/ (Loss) for the period attributable to: 384.11 (495.99)
(i) Owners of the Company 381.32 (497.64)
(ii) Non Controlling Interest 2.79 1.65
384.11 (495.99)
Other Comprehensive Income / (Loss) for the period attributable to: (3.33) 2.36
(i) Owners of the Company (3.33) 2.36
(ii) Non Controlling Interest (0.00) -
(3.33) 2.36
Total Comprehensive Income/ (Loss) for the period attributable to: 380.78 (493.61)
(i) Owners of the Company 377.99 (495.26)
(ii) Non Controlling Interest 2.79 1.65
380.78 (493.61)
Earnings per Equity Share (in ₹ ) (Not Annualised): 16
(Face value of ₹ 10 per Equity Share)
Basic 8.60 (12.57)
Diluted 8.59 (12.57)
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Significant Accounting Policies 1

See accompanying notes to the Unaudited Condensed Interim 1 - 17 Consolidated Financial Statements

As per our attached report of even date For and on behalf of the Board of Directors of Macrotech Developers For MSKA & Associates Limited Chartered Accountants Firm Registration Number: 105047W

Mukund Chitale Abhishek Lodha (Chairman) (Managing Director and CEO DIN: 00101004 DIN: 00266089

Bhavik L. Shah Sushil Kumar Modi Sanjyot Rangnekar (Partner) (Chief Financial Officer) (Company Secretary) Membership No. 122071 Membership No. F4154

Place : Mumbai Date : 15-November-2021

MACROTECH DEVELOPERS LIMITED

UNAUDITED CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2021

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For the six months ended For the six months ended
30-September-21 30-September-20
₹ in Crore ₹ in Crore
(Unaudited) (Unaudited)
(A) Operating Activities
Profit/ (Loss) before tax 514.78 (792.70)
Adjustments for :
Depreciation, Amortisation and Impairment Expense 37.06 38.12
Share of Net (Profit)/ Loss in Associate (0.65) 0.02
Exceptional Items - 460.00
Net Unrealised Foreign Exchange Differences 27.98 (38.29)
Interest Income (162.68) (138.83)
Finance Costs 1,101.32 1,276.01
Provision for Share based payment 8.61 -
Gain on Sale of Investments (3.02) -
-
Gain on Sale of Investment Property (6.32)
Reversal of diminution in value of investment (8.71) -
Sundry Balances / Excess Provisions written off/ back (net) 0.14 (4.94)
Provision for/ (Write back of) Doubtful Receivables and Advances / Deposits 0.01 5.85
Gains arising from fair valuation of financial instruments (3.65) (7.07)
Dividend on Current Investments (1.14) (0.33)
Working Capital Adjustments:
(Increase)/ Decrease in Trade and Other Receivables (145.24) 261.10
(Increase) / Decrease in Inventories 71.66 (233.78)
Decrease/ (Increase) in Trade and Other payables (435.99) 10.50
Cash Generated from / (used in) Operating Activities 994.16 835.66
Income Tax refund received /(Income Tax Paid) (Net) (45.17) 98.06
Net Cash Flows from Operating Activities 948.99 933.72
(B) Investing Activities
Sale of Property, Plant and Equipment 9.03 0.47
Purchase of Property, Plant and Equipment (4.97) (0.82)
Net Investment in Bank Deposits (196.53) (3.88)
Sale / (Purchase) of Non-Current Investments (net) 98.99 (23.71)
Sale of Current Investments (net) 1,232.75 0.88
Interest received 44.40 116.19
Loans (Given)/ Received back (Net) (25.62) (287.08)
Dividend on Current Investments Received 1.14 0.33
Net Cash Flows from/ (used in) Investing Activities 1,159.19 (197.62)
(C) Financing Activities
Finance Costs Paid (1,079.61) (422.97)
Proceeds from Borrowings 833.60 248.32
Proceeds from Issue of Share Capital (Including Secuirty Premium) 2,407.77 -
-
Repayment of Part of Optionally Convertible Debentures (33.51)
Repayment of Borrowings (3,905.61) (526.80)
Net Cash Flows used in Financing Activities (1,777.36) (701.45)
(D) Net Increase in Cash and Cash Equivalents (A+B+C) : 330.82 34.65
Cash and Cash Equivalents at the beginning of the period 227.58 118.54
Exchange difference on translation of foreign currency Cash and Cash Equivalent - 2.65
Cash and Cash Equivalents at period end 558.40 155.84
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Note :

The above Unaudited Condensed Interim Consolidated Cash flow statement has been prepared under the indirect method as set out in Ind AS - 7 specified under Section 133 of the Companies Act 2013.

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Significant Accounting Policies See accompanying notes to the Unaudited Condensed Interim Consolidated Financial Statements

As per our attached report of even date For MSKA & Associates Chartered Accountants Firm Registration Number: 105047W

Bhavik L. Shah (Partner) Membership No. 122071

For and on behalf of the Board of Directors of Macrotech Developers Limited

Mukund Chitale Abhishek Lodha (Chairman) (Managing Director and CEO) DIN: 00101004 DIN: 00266089 Sushil Kumar Modi Sanjyot Rangnekar (Chief Financial Officer) (Company Secretary) Membership No. F4154

Place : Mumbai Date : 15-November-2021

MACROTECH DEVELOPERS LIMITED

UNAUDITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2021

(A) EQUITY SHARE CAPITAL

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₹ in Crore
Particulars As at As at
30-September-21 31-March-21
Balance at the beginning of the reporting period/ year 395.88 395.88
Issued during the period/ year 51.44 -
Balance at the end of the reporting period/ year 447.32 395.88
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(B) OTHER EQUITY

As at 1-April-21 Profit for the period Other comprehensive loss Total Comprehensive Income for the period Particulars	₹ in Crore Capital Redemption Reserve Capital Reserve on Merger Security Premium Debenture Redemption Reserve Share Based Payment Reserve Retained Earnings Revaluation Reserve Foreign Currency Translation Reserve 0.42 (0.10) 212.79 582.97 - 2,960.88 430.39 15.73 4,203.08 526.89 4,729.97 - - - - - 381.32 - - 381.32 2.79 384.11 - - - - - (1.36) - (1.97) (3.33) - (3.33) - - - - - 379.96 - (1.97) 377.99 2.79 380.78 - - - - - - - - - (33.51) (33.51) - - - (188.75) - 188.75 - - - - - - - - - - (13.87) - - (13.87) (1.69) (15.56) - - 2,393.35 - 8.60 - - - 2,401.95 - 2,401.95 0.42 (0.10) 2,606.14 394.22 8.60 3,515.72 430.39 13.76 6,969.15 494.48 7,463.63 Capital Redemption Reserve Capital Reserve on Merger Security Premium Debenture Redemption Reserve Share Based Payment Reserve Retained Earnings Revaluation Reserve Foreign Currency Translation Reserve 0.42 (0.10) 212.79 1,354.91 - 2,147.55 430.39 10.48 4,156.44 519.16 4,675.60 (497.64) (497.64) 1.65 (495.99) (0.29) 2.65 2.36 - 2.36 - - - - - (497.93) - 2.65 (495.28) 1.65 (493.63) 0.42 (0.10) 212.79 1,354.91 - 1,649.62 430.39 13.13 3,661.16 520.81 4,181.97 Total Total Equity attributable to Shareholders of the Group Non Controlling Interest Reserves and Surplus Other Reserves through OCI Reserves and Surplus Other Reserves through OCI Total Equity attributable to Shareholders of the Group Non Controlling Interest Total
Repayment of part of Optionally Convertible Debenture
Transfer (from) / to Impact on acquisition of non controling interest Change during the period As at 30-September-21 As at 1-April-20 Profit for the period Other comprehensive loss Total Comprehensive Income/(loss) for the period As at 30-September-20 Particulars

(i) Capital Redemption Reserve - Amount transferred from share capital on redemption of issued shares.

(ii) Capital Reserve - Amount of Share capital issued on merger.

(iii) Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.

(iv) Debenture Redemption Reserve (DRR)- Pursuant to the notification GSR 574(E) dated 16-August-19, in reference to amendment in rule 18, sub rule 7 of the Companies (Share Capital and Debentures) Rules, 2014, the company has not transferred amount from retained earnings to DRR during the year ended 31-March-20 and onwards. Further, DRR created up to 31 March 2019, was transferred to retained earnings in proportion to the repayments made with respect to such debentures for which it was initially created. (v) Share Based Payment Reserve - The fair value of the equity-settled share based payment transactions with employees is recognised in the Consolidated Statement of Profit and Loss with corresponding credit to Share Based Payment Reserve.

(vi) Revaluation Reserve - Gains arising on the revaluation of certain class of Property, Plant and Equipment.

(vii) Foreign Currency Translation Reserve - Gains / losses arising on retranslating the net assets of overseas entities.

Significant Accounting Policies

1

See accompanying notes to the Unaudited Condensed Interim Consolidated 1 - 17 Financial Statements

As per our attached report of even date For MSKA & Associates Chartered Accountants Firm Registration Number: 105047W

For and on behalf of the Board of Directors of Macrotech Developers Limited

Mukund Chitale Abhishek Lodha (Chairman) (Managing Director and CEO) DIN: 00101004 DIN: 00266089

Bhavik L. Shah

(Partner) Membership No. 122071

Sushil Kumar Modi Sanjyot Rangnekar (Chief Financial Officer) (Company Secretary) Membership No. F4154

Place : Mumbai Date : 15-November-2021

MACROTECH DEVELOPERS LIMITED NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2021

1 SIGNIFICANT ACCOUNTING POLICIES

A Group's Background

The Unaudited Condensed Interim Consolidated financial statements comprise financial statements of Macrotech Developers Limited (the Company), its subsidiaries (collectively, the Group), associates and jointly controlled entity for the six months ended 30-September2021.

The Company is a public limited company domiciled and incorporated in India under the Companies Act, 1956 vide CIN - L45200MH1995PLC093041. The Company’s registered office is located at 412 , Floor - 4, 17 G Vardhaman Chamber, Cawasji Patel Road, Horniman Circle, Fort, Mumbai - 400001. The Group is primarily engaged in the business of real estate development.

The Unaudited Condensed Interim Consolidated Financial Statements are approved by the Committee for fund raise at its meeting held on 15-November-2021.

B Basis of Preparation

The Unaudited Condensed Interim Consolidated Financial statements for the six months ended 30th September, 2021 have been prepared in accordance with recognition and measurement principles laid down in Indian Accounting Standard 34 'Interim Financial Reporting' (Ind AS 34) prescribed under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standard) Rules, as amended from time to time.

The Unaudited Condensed Interim Consolidated Financial Statements do not include all the information and disclosure required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at and for the year ended 31 March, 2021.

The Unaudited Condensed Interim Consolidated Financial Statements have been prepared for the purpose of proposed fund-raising transaction in accordance with the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. Accordingly, these are not statutory consolidated Ind AS financial statements of the Group as required under Section 129 of the Companies Act,2013.

C New Standards, interpretations and amendments adopted by the Group

The accounting policies adopted in the preparation of Unaudited Condensed Interim Consolidated Financial Statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements as at and for the year ended 31-March2021, except additional policies applicable from current period /applicable with respect to Ind AS 34 "Interim Financial Statement' as set out in Note D below .

The unaudited condensed interim consolidated financial statements are presented in Indian Rupees ( ₹ ) and all values are rounded to the nearest crores except when otherwise indicated.

D Additional Policies

(i) Shared based Payments

Equity-settled share based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant date of the equity-settled share based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in Consolidated Statement of Profit and Loss such that the cumulative expenses reflects the revised estimate, with a corresponding adjustment to the Share Based Payments Reserve. The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share

(ii) Current income tax

Current income tax assets and liability have been determined based on management's estimate of the weighted average effective annual income tax rate expected for the full financial year under Ind AS 34.

MACROTECH DEVELOPERS LIMITED

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2021

2 Non-Current Borrowings Secured Term Loans From Banks From Others Senior Notes Non Convertible Debentures Vehicle Loans Unsecured Loans / Inter Corporate Deposit from Related Parties (Refer Note 11) Less: Current Maturities of Long Term Debt (Refer Note 3) Total previous period₹42,179/- 3 Current Borrowings Secured Term Loans From Banks From Others Non Convertible Debentures Cash Credit / Overdraft Facility Current Maturities of Long Term Debt Total	As at 30-September-21 ₹ in Crore 56.83 1,172.85 1,667.01 1,510.55 - 24.83 4,432.07 (60.02) 4,372.05 3,459.35 4,906.78 2,092.00 258.20 60.02 10,776.35	As at 31-March-21 ₹ in Crore - 707.24 1,639.49 1,786.85 0.00 160.03 4,293.61 (26.03) 4,267.58 4,215.98 5,926.76 3,129.30 627.24 26.03 13,925.31

4 Revenue from Operations Income from Property Development Sale of Land / Development Rights Sale of Building Materials Income from Lease Rentals Other Operating Revenue (Net)	30-September-21 30-September-20 ₹ in Crore ₹ in Crore 3,220.91 1,253.48 395.18 83.95 41.41 11.63 19.60 11.78 52.10 40.07 3,729.20 1,400.91 For the six months ended

MACROTECH DEVELOPERS LIMITED

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2021

• 5 Significant Accounting Judgements, Estimates and Assumptions

• (i) Useful Life of Property, Plant and Equipments, Intangible Assets and Investment Properties The Group determines the estimated useful life of its property, plant and equipments , investment properties and intangible assets for calculating depreciation/ amortisation. The estimate is determined after considering the expected usage of the assets or physical wear and tear. The Group periodically reviews the estimated useful life and the depreciation/ amortisation method to ensure that the method and period of depreciation/ amortisation are consistent with the expected pattern of economic benefits from these assets.

• (ii) Impairment of Non-Financial Assets Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. An assessment is carried to determine whether there is any indication of impairment in the carrying amount of the Group's assets. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

• (iii) Income Taxes

• Significant judgments are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

• (iv) Defined Benefit Plans (Gratuity and Leave Encashment Benefits)

The costs of providing pensions and other post-employment benefits are charged to the Consolidated Statement of Profit and Loss in accordance with Ind AS 19 ‘Employee benefits’ over the period during which benefit is derived from the employees’ services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates.

• (v) Fair Value Measurement of Financial Instruments When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions.

• (vi) Revaluation of Property, Plant and Equipment

The Group measures Land classified as property, plant and equipment at revalued amounts with changes in fair value being recognised in Other Comprehensive Income (OCI) . The Group has engaged an independent valuer to assess the fair value periodically. Land is valued by reference to market-based evidence, using comparable prices adjusted for specific market factors such as nature, location and condition of the property.

• (vii) Valuation of inventories

The determination of net realisable value of inventory includes estimates based on prevailing market conditions, current prices and expected date of commencement and completion of the project, the estimated future selling price, cost to complete projects and selling cost.

• (viii) Estimation uncertainty due to coronavirus (COVID-19) pandemic

The outbreak of corona virus (COVID-19) pandemic globally and in India is causing disturbance and slowdown of economic activity. Due to lockdown announced by the Government, the Group operations were slowed down in compliance with applicable regulatory orders. The operations and economic activities have gradually resumed with requisite precautions. The Group continues to monitor the situation and take appropriate action, as considered necessary in due compliance with the applicable regulations.

The management has used the principles of prudence in applying judgments, estimates and assumptions based on the current conditions. In assessing the liquidity position and recoverability of assets such as Goodwill, Inventories, Financial assets and Other assets, based on current indicators of future economic conditions, the Group expects to recover the carrying amounts of its assets. However, the actual impact of COVID-19 pandemic on the Group's future operations remain uncertain and dependant on spread of COVID-19 and steps taken by the Government to mitigate the economic impact and may differ from the estimates as at the date of approval of these Unaudited Condensed Interim Consolidated Financial Statements. The Group is closely monitoring the impact of COVID-19 on its financial condition, liquidity, operations, suppliers and workforce.

• 6 Company Information

The Subsidiaries, Associates, Joint Venture and Limited Liability Partnership considered in the Unaudited Condensed Interim Consolidated Financial Statement are :

a) Subsidiaries

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Sr. Principal Country of Percentage of Holding as on
Name of the Company
No. activities Incorporation 30-September-21 31-March-21
1 Anantnath Constructions and Farms Pvt. Ltd. Real Estate India 100.00% 100.00%
2 Apollo Complex Pvt. Ltd. Real Estate India 100.00% 100.00%
3 Bellissimo Constructions and Developers Pvt. Ltd. Real Estate India 100.00% 100.00%
4 Bellissimo Estate Pvt. Ltd. Real Estate India 100.00% 100.00%
5 Brickmart Constructions And Developers Pvt. Ltd. [1] Real Estate India 100.00% 100.00%
6 Center for Urban Innovation Real Estate India 100.00% 100.00%
7 Palava Induslogic 3 Pvt. Ltd. (Classichomes Developers & Real Estate India
100.00% 100.00%
Farms Pvt. Ltd) [2]
8 Copious Developers and Farms Pvt. Ltd. [7] Real Estate India - 100.00%
9 Cowtown Infotech Services Pvt. Ltd. Support service India 100.00% 100.00%
activities
10 Cowtown Software Design Pvt. Ltd. Support service India 100.00% 100.00%
activities
11 Palava Industrial and Logistics Park Pvt. Ltd. (Formerly Real Estate India 100.00% 100.00%
Grandezza Supremous Thane Pvt. Ltd.)
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MACROTECH DEVELOPERS LIMITED

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2021

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Sr. Principal Country of Percentage of Holding as on
Name of the Company
No. activities Incorporation 30-September-21 31-March-21
12 Homescapes Constructions Pvt. Ltd. [3] Real Estate India 100.00% 100.00%
13 Lodha Developers Canada Ltd. [4] Marketing and Canada - 100.00%
Sales activities
14 Lodha Developers International (Netherlands) B. V. Real Estate Netherlands 100.00% 100.00%
15 Lodha Developers International Ltd. Marketing and Mauritius 100.00% 100.00%
Sales activities
16 Lodha Developers U.S. Inc. Marketing and United States 100.00% 100.00%
Sales activities
17 Luxuria Complex Pvt. Ltd. Real Estate India 100.00% 100.00%
18 MMR Social Housing Pvt. Ltd. Real Estate India 100.00% 100.00%
19 National Standard (India) Ltd. Real Estate India 73.94% 73.94%
20 Odeon Theatres and Properties Pvt. Ltd. Real Estate India 100.00% 100.00%
21 One Place Commercials Pvt. Ltd. Real Estate India 100.00% 100.00%
22 Palava City Management Pvt. Ltd. Facility India 100.00% 100.00%
Management
Services
23 Palava Dwellers Pvt. Ltd. Real Estate India 98.03% 98.03%
24 Palava Induslogic 2 Pvt. Ltd. [5 @] Real Estate India - 100.00%
25 Palava Institute of Advanced Skill Training Real Estate India 100.00% 100.00%
26 Primebuild Developers and Farms Pvt. Ltd. [6] Real Estate India 100.00% 100.00%
27 Ramshyam Infracon Pvt. Ltd. [7] Real Estate India - 100.00%
28 Renover Green Consultants Pvt. Ltd. Real Estate India 100.00% 100.00%
29 Roselabs Finance Ltd. Real Estate India 74.25% 74.25%
30 Sanathnagar Enterprises Ltd. Real Estate India 72.71% 72.71%
31 Simtools Pvt. Ltd. Real Estate India 53.46% 53.46%
32 Sitaldas Estate Pvt. Ltd. Real Estate India 100.00% 91.18%
@ Considered as Joint Venture w.e.f. 28-September-21
1 Incorporated on 26-November-20.
2 Incorporated on 28-January-21.
3 Incorporated on 03-December-20.
4 Dissolved w.e.f. 20-August-21
5 Incorporated on 19-February -21.
6 Incorporated on 13-November-20.
7 Merged with the Company w.e.f 18-June-21
b) Associate/ Joint Venture
Sr. Country of Percentage of Holding as on
Name of the Company Relationship
No. Incorporation 30-September-21 31-March-21
1 Kora Constructions Pvt. Ltd. Associate India 44.00% 44.00%
2 Altamount Road Property Private Limited Joint Venture India 49.00% 49.00%
3 Lodha Developers UK Ltd Joint Venture United Kingdom 51.00% 51.00%
4 Grosvenor Street Apartments Ltd. [#] Joint Venture United Kingdom 51.00% 51.00%
5 Lodha Developers 1GSQ Holdings Ltd. [#] Joint Venture Jersey Island 53.45% 53.45%
6 Lodha Developers 1GSQ Ltd. [#] Joint Venture Jersey Island 53.45% 53.45%
7 Lodha Developers 48 CS Ltd. [#] Joint Venture Jersey Island 53.45% 53.45%
8 Lodha Developers Dorset Close Ltd. [#] Joint Venture Jersey Island 53.45% 53.45%
9 Lodha Developers International (Jersey) III Ltd. [#] Joint Venture Jersey Island 53.45% 53.45%
10 1GSQ Leaseco Ltd. [#] Joint Venture United Kingdom 51.00% 51.00%
11 New Court Developers Ltd. [#] Joint Venture United Kingdom 51.00% 51.00%
12 New Court Holdings Ltd. [#] Joint Venture United Kingdom 51.00% 51.00%
13 Lincoin Square Apartments Ltd. [#] Joint Venture United Kingdom 51.00% 51.00%
14 1GS Investments Limited [1#] Joint Venture United Kingdom 53.45% 53.45%
15 1GS Residences Limited [1#] Joint Venture United Kingdom 53.45% 53.45%
16 1GS Properties Investments Limited (Formerly GS Penthouse Joint Venture United Kingdom 53.45% 53.45%
Limited) [2#]
17 Palava Induslogic 2 Pvt. Ltd. [3 ] Joint Venture India 100.00% -
1 w.e.f 07-July-20
2 w.e.f 23-September-20
3 Considered as Joint Venture w.e.f. 28-September-21
# Subsidiaries of Lodha Developers UK Ltd.
c) Limited Liability Partnerships
Sr. Country of Percentage of Holding as on
No. [Name of the Limited Liability Partnerships] Registration 30-September-21 31-March-21
1 Bellissimo Buildtech LLP India 100.00% 100.00%
7 Commitments and Contingencies
a. Commitments
Particulars 30-September-21 31-March-21
₹ in Crore ₹ in Crore
Estimated amount of contracts remaining to be executed on capital account is and not provided for (net 22.41 0.83
of advances).
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*Above amount includes share of Associate /Joint ventures

MACROTECH DEVELOPERS LIMITED

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2021

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b. Contingent Liabilities
Claims against the company not acknowledged as debts 30-September-21 31-March-21
₹ in Crore ₹ in Crore
(i) Disputed Demands of Customers excluding amounts not ascertainable. 275.64 285.56
(ii) Corporate Guarantees Given 29.99 154.86
(iii) Disputed Taxation Matters 258.90 264.39
(iv) Disputed Land related Legal cases 67.69 83.89
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• Represents Outstanding amount of the Loan / Balances guaranteed.

(i) The Contingent Liabilities exclude undeterminable outcome of pending litigations.

(ii) The Group has assessed that it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

• 8 In case of pending appeals filed by the Income Tax Department against the favourable orders, the management is confident that the outcome would be favourable and hence no contingent liability is disclosed.

• 9 Pursuant to the Order of the Collector of Stamps levying stamp duty and penalty in respect of Agreement to Lease entered in to with Mumbai Metropolitan Regional Development Authority (MMRDA) for Wadala Truck Terminal plot and the Order of the Hon’ble Bombay High Court, the Company has deposited ₹ 202.50 crore with the Office of the Collector of Stamps. The Order of Chief Controlling Revenue Authority (CCRA) in appeal upholding the Order of Collector of Stamps levying penalty of ₹ 271.34 crore has been stayed by the Hon’ble Bombay High Court through an order dated 8-December-17.

• 10 Exceptional Items

• Given the economic uncertainty created by COVID-19 coupled with significant business disruptions, the Group is anticipating further losses in UK projects because of the delay in the completion of the project. Therefore, the Group has reassessed its loan receivables and made an additional provision of ₹ 460.00 crore against the said loans during the period ended 30-September-2020 and had disclosed the same as an “Exceptional item”.

• 11 Related Party Transactions

Information on Related Party Transactions as required by Ind AS 24 - 'Related Party Disclosures'

A. List of Related Parties:

(As identified by the management) I Person having Control or Joint Control or Significant Influence

Mangal Prabhat Lodha (upto 24-July-2020)

Abhishek Lodha

II Close family members of person having control* / KMP (with whom the company had transactions)

Mangal Prabhat Lodha (w.e.f 25-July-2020)

Manjula Lodha Vinti Lodha

Nitu Lodha

Sahil Lodha

• *Pursuant to an arrangement

III Holding Company

Sambhavnath Infrabuild and Farms Pvt. Ltd.

IV Subsidiaries of Holding Company

• 1 Bellissimo Properties Development Pvt. Ltd. 2 Bellissimo Healthy Constructions and Developers Pvt. Ltd. (w.e.f. 14-July-21)

V Others (Entities controlled by person having control or joint control, with whom the Group had transactions)

• 1 Sitaben Shah Memorial Trust 2 Bellissimo Healthy Constructions and Developers Pvt. Ltd. (upto 13-July-21) 3 Mumbai Mile Regeneration Association

VI Associate

• 1 Kora Construction Pvt. Ltd.

VII Joint Venture

• 1 Altamount Road Property Private Limited 2 Lodha Developers UK Ltd. 3 Grosvenor Street Apartments Ltd. ** (Formerly Known as Holland Park Residences Holdings Ltd.) 4 Lodha Developers 1GSQ Holdings Ltd. ** 5 Lodha Developers 1GSQ Ltd. ** 6 Lodha Developers 48 CS Ltd. 7 Lodha Developers Dorset Close Ltd. 8 Lodha Developers International (Jersey) III Ltd. 9 1GSQ Leaseco Ltd.

• 10 New Court Developers Ltd. 11 New Court Holdings Ltd. 12 Lincoin Square Apartments Ltd. 13 1GS Investments Limited (w.e.f 07-July-20) 14 1GS Residences Limited (w.e.f 07-July-20) 15 1GS Properties Investments Limited (Formerly GS Penthouse Limited) (w.e.f 23-September-20) 16 Palava Induslogic 2 Pvt. Ltd. (w.e.f. 28-September-21) ** Subsidiaries of Lodha Developers UK Ltd.

MACROTECH DEVELOPERS LIMITED

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2021

VIII Key Management Person (KMP)

• 1 Abhishek Lodha (Managing Director and CEO)

• 2 Berjis Minoo Desai (Independent Director) (upto 17-August-20)

• 3 Mukund M. Chitale (Independent Director and Chairman)

• 4 Rajendra Lodha (Whole Time Director)

• 5 Rajinder Pal Singh (Non Executive Director)

• 6 Ashwani Kumar (Independent Director) (w.e.f 08-April-20)

• 7 Raunika Malhotra (Whole Time Director) (w.e.f 26-June-20)

• 8 Sushil Kumar Modi - CFO (w.e.f. 26-June-20)

• 9 Lee Polisano - (Independent Director) (w.e.f 30-July-21)

IX Directors of Holding Company

• 1 Ashish Gaggar (upto 20-May-21)

• 2 Govind Agarwal

• 3 Manoj Vaishya (w.e.f. 20-May-21)

• B. Balances Outstanding and Transactions during the period/ year ended with related parties are as follows:

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(i) Outstanding Balances ( ₹ in crore)
Sr. As at As at
No. [Nature of Transactions] Relationship 30-September-21 31-March-21
1 Investments Holding Company - 1,325.70
Subsidiary of Holding Company - 19.84
Joint Ventures 109.57 76.66
Associates 14.00 13.96
Others - 70.82
2 Loans given Holding Company - 154.83
Joint Ventures 3,843.49 3,363.00
Person having control/ Close family members of person - 18.55
having control
Close family members of person having control 28.00 9.45
Close family members of KMP 1.98 1.98
3 Other Current Assets Joint Ventures - 7.81
Others 0.00 0.00
4 Trade Receivables Others 13.43 -
Joint Ventures 4.00 -
5 Other Financial Assets Holding Company - 19.78
Joint Ventures 112.32 216.11
6 Loans taken Others - 83.19
Subsidiary of Holding Company 24.83 76.85
7 Other Financial Liabilities Holding Company - 0.01
Person having control 0.45 6.40
KMP 3.36 10.63
Close family members of person having control 1.15 51.56
Others - 0.00
Close family members of KMP 0.90 2.33
8 Other Non - Current Liabilities Joint Ventures 54.42 54.93
9 Other Current Liabilities Close family members of person having control 25.08 151.46
Person having control 3.40 27.01
KMP 7.24 -
Close family members of KMP 1.40 36.02
Others - 28.81
10 Guarantees taken Holding Company 2,233.43 2,303.43
Person having control 11,485.54 13,352.87
11 Guarantees given Holding Company - 16.15
Joint Ventures 29.99 30.23
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• Net of Provision as on 30-September-2021 ₹ 1,086.99 crore (31-March-2021 ₹ 1,096.07 crore)

(ii) Disclosure in respect of transactions with Related Parties: 1 Income from Construction Contracts Altamount Road Property Pvt. Ltd. 2 Sale of Land Palava Induslogic 2 Pvt. Ltd. 3 Income From Property Development Sitaben Shah Memorial Trust Sahil Lodha 4 Interest Income Lodha Developers UK Ltd. Lodha Developers 1GSQ Ltd. Sambhavnath Infrabuild and Farms Pvt. Ltd. Altamount Road Property Pvt. Ltd. Sr No Particulars

(₹ in Crore) For the six months ended For the six months ended 30-September-21 30-September-20 Joint Venture 2.95 6.78 Joint Venture 153.78 - Others 40.57 - Close family members of KMP 25.08 Joint Venture 3.46 2.88 Joint Venture 108.85 105.00 Holding Company 28.33 8.74 Joint Venture 0.42 - Relationship

MACROTECH DEVELOPERS LIMITED

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2021

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For the six months For the six months
Sr
No [Particulars] Relationship ended ended
30-September-21 30-September-20
5 Remuneration paid
Person having control/ Close family
Mangal Prabhat Lodha 2.25 1.13
members of person having control
Abhishek Lodha Person having control 2.40 1.20
Rajendra Lodha KMP 0.19 0.23
Rajinder Pal Singh KMP 0.45 0.45
Manjula Lodha Close family members of person 0.48 0.27
having control
Vinti Lodha Close family members of person 0.48 0.27
having control
Nitu Lodha Close family members of KMP 0.21 0.22
Manoj Vaishya Directors of Holding Company 0.20 -
Ashish Gaggar Directors of Holding Company 0.16 0.15
Govind Agarwal Directors of Holding Company 0.20 0.09
Sushil Kumar Modi KMP 5.85 -
Raunika Malhotra KMP 1.78 -
Sahil Lodha Close family members of KMP 0.24 0.24
6 Commission and Sitting Fees
Mukund Chitale KMP 0.06 0.01
Berjis Desai KMP - 0.01
Ashwini Kumar KMP 0.02 0.01
Lee Polisano (Rs. 25,000- 30-September-2021) KMP 0.00 -
7 Rent Expenses
Mangalprabhat Lodha Person having control/ Close family - 1.02
members of person having control
Abhishek Lodha Person having control - 0.72
Manjula Lodha Close family members of person - 0.54
having control
Vinti Lodha Close family members of person - 1.32
having control
8 Donation / Corporate Social Responsibility
Sitaben Shah Memorial Trust Others 1.60 0.53
9 Loans / Advances given / (returned) - Net
Lodha Developers International (Jersey) III Ltd. Joint Venture (11.65) 150.13
Lodha Developers 1GSQ Ltd. Joint Venture (105.49) (61.28)
Lodha Developers UK Ltd. Joint Venture 370.88 (39.94)
Sambhavnath Infrabuild and Farms Pvt. Ltd. Holding Company (154.83) -
10 Loans / Advances taken / (returned) - Net
Bellissimo Healthy Constructions and Developers Pvt. Ltd. Others (83.19) (80.00)
Sitaben Shah Memorial Trust Others - 13.10
Bellissimo Properties Development Pvt. Ltd. Subsidiary of Holding Company (52.01) 76.84
11 Redemption of Debentures / Preference Shares
Bellissimo Properties Development Pvt. Ltd. Subsidiary of Holding Company 19.84 -
Sambhavnath Infrabuild and Farms Pvt. Ltd. Holding Company 1,325.70 1.85
12 Advances Received against Agreement to Sell
Mr. Mangalprabhat Lodha Person having control/ Close family - 2.00
members of person having control
Mr. Sahil Lodha Close family members of KMP - 0.05
13 Other Operating Income (Rent Income)
Sitaben Shah Memorial Trust Others - 0.00
Altamount Road Property Pvt. Ltd. Joint Venture 0.51 0.90
14 Investments
Altamount Road Property Pvt. Ltd. Joint Venture 2.45 2.88
Palava Induslogic 2 Private Limited Joint Venture 29.85 -
Sambhavnath Infrabuild and Farms Pvt. Ltd. Holding Company - 22.62
15 Sale of Investments
Sambhavnath Infrabuild and Farms Pvt. Ltd. Holding Company 77.55 -
16 Guarantees taken
Sambhavnath Infrabuild and Farms Pvt. Ltd. Holding Company 500.00 -
Abhishek Lodha Person having control 715.00 -
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The carrying amount of financial assets and financial liabilities measured at amortised cost in the Unaudited Condensed Interim Consolidated Financial Statements are a reasonable approximation of their fair values since the Group does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

12 Financial Instrument measured at Amortised Cost

MACROTECH DEVELOPERS LIMITED

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2021

• 13 Fair Value Measurement

The following table provides the fair value measurement hierarchy of the Group’s financial assets and financial liabilities.

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Fair value measurement using
Particulars Significant
Quoted prices in Significant
Total Unobservable
active markets observable inputs
inputs
(Level 1) (Level 2) (Level 3)
₹ in crore ₹ in crore ₹ in crore ₹ in crore
As at 30-September-21
Financial Assets measured at fair value through profit and loss
Investment in Mutual Funds 72.03 72.03 - -
Investment in Equity Shares 0.56 0.06 0.50 -
Investment in Debentures - - - -
72.59 72.09 0.50 -
As at 31-March-21
Financial Assets measured at fair value through profit and loss
Investment in Mutual Funds 71.86 71.86 - -
Investment in Equity Shares 5.11 0.06 5.05 -
Investment in Debentures 64.32 - 64.32 -
141.29 71.92 69.37 -
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There have been no transfers between Level 2 and Level 3 during the above financial period.

• 14 Financial Risk Management Objectives and Policies

The Group's principal financial liabilities comprise mainly of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Group's operations. The Group's principal financial assets include loans and advances, trade and other receivables, cash and cash equivalents and Other balances with Bank.

The Group is exposed through its operations to the following financial risks:

• Market risk

• Credit risk, and

• Liquidity risk.

The Group has evolved a risk mitigation framework to identify, assess and mitigate financial risk in order to minimize potential adverse effects on the Group's financial performance. There have been no substantive changes in the Group's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated herein.

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables, loans and derivative financial instruments.

(i) Interest Rate Risk

The Group is exposed to cash flow interest rate risk from long-term borrowings at variable rate. Currently the Group has external borrowings (excluding short-term overdraft facilities) which are fixed and floating rate borrowings. The Group achieves the optimum interest rate profile by refinancing when the interest rates go down. However this does not protect Group entirely from the risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest payments. The Group believes that it achieves an appropriate balance of exposure to these risks.

ii) Foreign Currency Risk

Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee.

b) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Group’s customer base, including the default risk of the industry and country, in which customers operate, has less influence on the credit risk.

The Group has entered into contracts for the sale of residential and commercial units on an installment basis. The installments are specified in the contracts. The Group is exposed to credit risk in respect of installments due. However, the legal ownership of residential and commercial units are transferred to the buyer only after all the installments are recovered. In addition, installment dues are monitored on an ongoing basis with the result that the Group’s exposure to credit risk is not significant. The Group evaluates the concentration of risk with respect to trade receivables as low, as none of its customers constitutes significant portions of trade receivables as at the period end.

Credit risk from balances with banks and financial institutions is managed by Group's treasury in accordance with the Group’s policy. The Group limits its exposure to credit risk by only placing balances with local banks and international banks of good repute. Given the profile of its bankers, management does not expect any counterparty to fail in meeting its obligations.

c) Liquidity Risk

Liquidity risk is the risk that the Group will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The Group has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Group’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group manages the liquidity risk by maintaining adequate funds in cash and cash equivalents.

MACROTECH DEVELOPERS LIMITED

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2021

The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments.

Particulars As at 30-September-21 Borrowings $ Trade Payables Other financial liabilities As at 31-March-21 Borrowings $#^ Trade Payables Other financial liabilities	< 1 year 1 to 5 years > 5 years Total ₹ in crore ₹ in crore ₹ in crore ₹ in crore 2,887.42 11,477.28 693.01 15,057.71 1,098.51 74.93 - 1,173.44 2,120.20 502.24 - 2,622.44 6,106.13 12,054.45 693.01 18,853.59 3,127.65 13,990.34 834.39 17,952.38 1,532.63 165.16 - 1,697.79 2,202.63 163.60 - 2,366.23 6,862.91 14,319.10 834.39 22,016.40

• Borrowings are stated before adjusting loan issue cost and premium on debentures

$ Borrowings less than one year include ₹ 958.65 crore (31-March-21 ₹ 1,178.89 crore) in respect of which Group has made an application for deferment of the Date of Commencement of Commercial Operations & consequently shift in the repayment schedule, pending final approval from the sanctioning authorities.

The maturity profile of Borrowings is stated after considering moratorium announced by Reserve Bank of India.

^ Borrowings include ₹ 877.11 crore and ₹ 973.04 crore payable within 1 year and 1 to 5 years respectively which was paid subsequent to balance sheet date 31-March-2021, out of IPO proceeds.

15 Initial Public Offer

The Company has completed the Initial Public Offering (IPO) of its equity shares comprising a fresh issue of 5,14,40,328 equity shares having a face value of ₹ 10 each at premium of ₹ 476 per share aggregating ₹ 2,500 crore. Pursuant to the IPO, the equity shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited with effect from 19-April-2021. IPO expenses of ₹ 55.21 crore net of taxes has been adjusted against Securities Premium.

The proceeds from IPO were ₹ 2,407.77 crore (net of issue related expenses including GST).

Details of utilisation of IPO proceeds is as under:

Details of utilisation of IPO proceeds is as under:
Particulars	Objects of the Issue	Utilised	Unutilised amount
	as per Prospectus
Reduction of the aggregate outstanding borrowings	1,500.00	1,500.00	-
Acquisition of land or land development rights	375.00	164.12	210.88
General Corporate Purpose	532.77	532.77	-
Total	2,407.77	2,196.89	210.88

Unutilised amount were temporarily invested in deposits/bank balances with Scheduled Commercial Banks.

16

Basic and Diluted Earnings Per Share Particulars For the six months ended For the six months ended 30-September-21 30-September-20 Basic earnings per share: a) Profit for the period (₹in Crore) 381.32 (497.64) b) Weighted average no. of Equity Shares outstanding during the period 44,33,83,002 39,58,78,000 c) Face Value per Equity Share (₹) 10 10 d) Basic earnings per share (₹) (not annualised) 8.60 (12.57) Diluted earnings per share: a) Profit for the period (₹in Crore) 381.32 (497.64) b) Weighted average no. of Equity Shares outstanding during the period 44,39,92,443 39,58,78,000 c) Diluted earnings per share (₹) (not annualised) 8.59 (12.57)

MACROTECH DEVELOPERS LIMITED

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2021

17 The figures for the corresponding previous year/ period have been regrouped/ reclassified, wherever considered necessary, to make them comparable with current periods classification.

As per our attached report of even date For and on behalf of the Board of Directors of Macrotech Developers Limited For MSKA & Associates Chartered Accountants Firm Registration Number: 105047W Mukund Chitale Abhishek Lodha (Chairman) (Managing Director and CEO) DIN: 00101004 DIN: 00266089 Bhavik L. Shah Sushil Kumar Modi Sanjyot Rangnekar (Partner) (Chief Financial Officer) (Company Secretary) Membership No. 122071 Membership No. F4154 Place : Mumbai Date : 15-November-2021