EdelARC/567 /2019-2020

Department of Corporate Services (Listing) BSE Limited

14th Floor, P J Towers, Dalal Street,

Fort, Mumbai- 400 001.

Dear Sir / Madam,

May 14,2019

Sub: Submission of Financial Results for the year ended March 31, 2019 as per Regulation 52 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

With reference to the captioned subject, we enclose the following:

a) Financial Results for the year ended March 31, 2019 duly approved by the Audit Committee and the Board of Directors of the Company at their meeting held on May 13, 2019;

b) Annual Audit Report issued by the Auditors of the Company; and

M/ s. S.R. Batliboi & Co. LLP, the Auditors of the Company have issued an unmodified opinion of the financial results.

c) Information as required pursuant to Regulation 52(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Certificates of the Debenture Trustees, required under Regulation 52(5) of the Listing Regulations is being sent separately.

Kindly take the above on record.

Thanking you,

Yours faithfully, For Edelwe·

End: As above

econstruction Company Limited

Edelweiss Asset Reconstruction Company Limited Corporate Identity Number: U67100MH2007PLC174759 Registered Office : Edelweiss House, Off CST Road, Kalina, Mumbai 400098 <ll+91 22 4088 6090 I 6620 3~49 New Delhi Office : UGF-1, Mercantile House, 15, Kasturba Gandhi Marg, New Delhi 110001 www.edelwe1ssarc.com

S G LLP 12th Floor, The Ruby .R. BATL/80/ & 0. 29 Senapati Bapat Marg Dadar (West)

Chartered Accountants Mumbai- 400 028, India

To

Tel : +91 22 6819 8000

Independent Auditor's Report On Standalone Financial Results Pursuant to the Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Board of Directors Edelweiss Asset Reconstruction Company Limited

1 . We have audited the accompanying statement of lnd AS financial results of Edelweiss Asset Reconstruction Company Limited ('the Company') for the half year and year ended March 31, 2019 ('the Statement') attached herewith, being submitted by the Company pursuant to the requirements of Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('the Regulation'), read with SEBI Circular No. CIRIIMD/DF1/69/2016 dated August 10, 2016 ('the Circular'). This Statement has been prepared on the basis of the audited financial statements for year ended March 31, 2019, which is the responsibility of the Company's management and has been approved by the Board of Directors of the Company. Our responsibility is to express an opinion on the Statement based on our audit of the financial statements as at and for the year ended March 31, 2019, prepared in accordance with Indian Accounting Standards ('lnd AS') specified under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India and the relevant requirements of the Regulation and the Circular.

2. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the Statement is free of material misstatements.

3. An audit involves performing procedures to obtain sufficient audit evidences about the amounts and disclosures in the Statement. The procedures selected depend on the auditor's judgement including the assessment of material misstatement of the Statement, whether due to fraud or error. In making those risk assessment, the auditor considers internal controls relevant to the Company's preparation and fair presentation of the Statement in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the Statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

4. In our opinion and to the best of our information and according to the explanations given to us, , the Statement:

i. is presented in accordance with the requirements of the Regulation, read with the Circular, in this regard; and

ii. gives a true and fair view of the net profit including other comprehensive income and other financial information of the Company for the year ended March 31, 2019

5. The comparative lnd AS financial information of the Company for the year ended March 31, 2018, included in these standalone lnd AS financial results, are based on the previously issued financial results prepared in accordance with recognition and measurement principles as specified under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India and audited by the predecessor auditor whose report for the year ended March 31, 2018 dated May 2, 2018 expressed an unmodified conclusion on these financial results, as adjusted for the differences in the accounting principles adopted by the Company on transition to the lnd AS, which have been audited by us.

6. Further, we report that the figures for the half year ended March 31, 2019 represent the derived figures between the audited figures in respect of the financial year ended March 31, 2019 and the published figures for the half year ended September 30, 2018, which were subjected to a limited review, as required under the Regulation and the Circular.

For S.R. BATLIBOI & CO. LLP

S.R. Bathbol & Co. LLP, a Limited Liability Partnership w1th LLP Identity No. AA8·4294 Reqd. Office: 22. Camac Street. Block '8', 3rd floor, Kolkata·700 0!6

Edelweiss Asset Reconstruction Company Limited Corporate Identity Number: U67100MH2007PLC174759 € Ed e I e Iss Re~istered Office: Edelwe1~s House, Off. C.S.T. Road, Kalina, Mumbai · 400 098 W I Tel. •91·22·4088 6090 Fax. ~91 ·22·4019 4900 . . Ideas create, values protect website: www.edelwe1ssarc. m e·ma1l: earc.cs@edelwelssfm.com

Statement of Standalone Financial Results for the half year and the year ended March 31, 2019

---------~-- _ ..,.,...,.,..-------- (~in Millions except per share data) f- ___ Half year ended ___ +---- Year ended

Particulars March March March March 31,2019 31,2018 31,2019 31,2018

Revenue from operations (a) Interest income -

----------1--...l.(A~u=dlted) -1- (Unaudited) (Audited) --+--(A~dlte~.L_

254.ii7 - 197.80 - f- --541.6~ 1---

248.95 10,005.87 8,429.91 3,113.24 (1.0_10.33)

13,660.79 7~~ 7.97 24.99

C (b) Fee and commission income -­!-- \(c) N~n fair valu;chan9es (Refer Note .2) jTotai"revenue from o~ns ___ '----+----

2 Other Income

5,293.06 4,497.41 2,078.94 - _(1,327.35) 7,626.87 - 3,367.86

7.96 24.95 --13,668.76 I-693.52

- >-----5,919.56 4,233.86

383.76 --~ 16.99 17.22

292.89 1.33 --- - --297.33 297.25

6,910.53 4,~ 6,758.:..23 2,791.08 2,408.03 989.43

3 Total Income (1+2) -------------I-----t-£. l Ex~ __ T (a) Finance costs

~ (b) Emp!£_yee benefits expense -- 241.~~ 1-- ~.42 (c) Depreciation and amortisation expense 8~ -·- ____§J!2+----(d) Impairment on financial instruments (~- _ 41.74

(e) Other expenses ___ ------11--- 190.76 200.97 !Total expenses --- 3,615.49 2,592.55

5 Proflti(Loss) before tax (3·4) ---------+----'4,!..;,019.34 800.26 ,... 6 Tax exp~ 1,435.15 __ 298.69

7,634.83 3,392.81

3,205.79 2,121 .60

1 ,6§_2;.44 611.90 461.07 255.00 Current tax - --- --- 974.08 43.69 745.59 377.53 .l Deferred tax __ __

7 } Net Profit I (Loss) ~period (5~)- __ -+------=2,,584.19 1- 501.57 --~4,c:;3~50.20 1,801.65 8 Other Comprehensive Income __ -+--- (0.46) f- ___ (0.02) ___ (~ 1----(0.02)

9 8

(A) (i) Items that will no~classified to profit..£!:..!2.ss (0.71 (~)+---- (O.I.!) _ (0.0}) (ii) Income tax relating to items that will not be 0_25 0.01 0.25

l!eclas~profit or loss -1--- __ _ Total Comprehensive Income (7+8)_ __ 2,583.73 501 .55 __ 4,349:.:...7.:..4 -J--

0.01

1,8ii"1.63

Earnings Per Share (~) (Face Value of~ 10/- each)

~ (Not A~sed) -- --- 1 2-.2-7-1------2- .-38 +----• Diluted (Not Annualised) ----------1------9:::.:·.::;82=-+ 1.91

20.66 16.53

8.56 6.85

------Notes:

1) Edelweiss Asset Reconstruction Company Limited (the 'Company') has prepared audited financial results (the 'Statement') for the half year ended March 31, 2019 in accordance with Regulation 52 of the SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015 and the Accounting Standards specified under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended and the relevant provision of the Companies Act, 2013, as applicable.

·---- ·-·------ ·-, SIGNED Hm~~ENTlFICATION BV()"QJ ~~er.j.

.--- \~ )~~b~-1.':' n R f.:\-0 '8 01 > ' ' L1· P .:~ . r \.. :.::. .t ~ • • 1 ~ l..'l • -

MUMBAI

Edelweiss Asset Reconstruction Company Limited Corporate Identity Number: U67100MH2007PLC174759 € Ed I ' Registered Office: Edelweiss House, Off. C.S.T. Road, Kalina, Mumbai 0 400 098 e we Iss Tel: ~91·22·4088 6090 Fax: ~91·22·4019 4900 Ideas create values protect webSite: www.edelwe1ssarc.m e·ma1l: earc.cs@edelwelssfm.com 0

2) The reconciliation of Net Profit for the half year and the year ended 31 March 2018 as reported under erstwhile Indian GAAP and lnd AS are summarised as below:

Particulars

-eported under Indian GAAP Net profit after tax as r

l ind AS adjustments incr reported under Indian G

easing I (decreasing) net profit as AAP:

---

-

Effective interest rate on financial assets and liabilities (net)

-vision Expected credit loss pro

Fair valuation of assets and liabilities ESOP fair value charge __ _

Others ustments

s

---

Tax effect on above adJ. Net profit as per lnd A

Other Comprehensive I

Total Comprehensive

ncome after tax as per lnd AS

Income as per lnd AS

(~ in Millions) ---Half year Ended Year Ended March 31, 2018 March 31, 2018

(Unaudited) (Audited)

877.36 1,783.27

----

528.87 600.98

(29.49) (29.49)

(1 ,054.46) (519.56} !-

(0.42 1.11 0.46 0.46

178.16 (33.15 502.01 1,802.09

(0.46) (0.46)

501 .55 1,801.63 - -The reconciliation of Equity as reported under erstwhile Indian GAAP and lnd AS are summarised as below:

Particulars

Shareholder's Equity as reported under Indian GAAP

lnd AS adjustments increasing/ (decreasing) networth as reported under ,;,;,ln;.;:d,;,:ia"'n'-G:..;AA;.;:,;,;,P...;: ________ _

(~ In M.!.!!!_ons)

As at March 31, 2018

(Audited)

10,774.94

Effective interest rate on financial assets and liabilities (net) 2,821.49

Expected credit loss provision __ (29.49)

Fair valuation of assets and liab;;.;il;.;;iti.;.es;;_, _______ +-- (1,000.59)

Tax effect on above adjustments (981 .16) Shareholder's Equity as per lnd AS

3) The comparative financial information for the corresponding year ended March 31, 2018 included in these lnd AS financial results of the Company, are based on the previously issued financial results prepared in accordance with recognition and measurement principles as specified under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India and audited by the predecessor auditor, as adjusted for the differences in the accounting principles adopted by the Company on transition to the lnd AS, which have been audited by the Statutory Auditors.

4) The financial results for the half year ended March 31, 2018 have been restated as per lnd AS and have not been subjected to Limited review or audit. The management has exercised due diligence to ensure that the financial results provide a true and fair view of the Company's affairs.

5) The results for the half year ended March 31, 2019 being the derived figures between audited figures in respect of full financial year ended March 31, 2019 and the published year to date figures up to the half year of the current financial year which was subject to limited review by Statutory Auditors of the Company.

6) The above financial results of the Company are reviewed and recommended by the Audit Committee and have been approved by the Board of Directors at their meeting held on May 13, 2019.

0

7) Includes realised gain of Rs.2,218.85 mn for the year ended March 31 , 2019 (Previous Year Rs.141.37 mn) and Rs.1,972.82 mn for current half year ended March 31, 2019 and Rs.136.39 mn for corresponding half year ended March 31, 2018.

8) The Company operates in a single reportable operating segment of distressed credit business as per the requirment of lnd AS 108- Operating Segment.

9) Information as required by Regulation 52(4) of the Securities Exchange Board of India ("SEBI") (Listing Obligations and Disclosure Requirements) Regulations ,2015 as per "Annxure-A".

--·-·------ - -,

Date: May 13,2019 Place : Mumbai

For and on behalf of the Board of Directors Edelweiss Asset Reconstruction Company Limited

~(·;~At,..---{_ Raj Kumar Bansal Managing Director and Chief Executive Officer DIN :00122506

Edelweiss Asset Reconstruction Company Limited Corporate Identity Number: U67100MH2007PLC174759 € Ed I ' Registered Office: Edelweiss House, Off. C.S.T. Road, Kalina, Mumbai . 400 098 e we Iss Tel: +91·22·4088 6090 Fax: +91·22·4019 4900 website: www.edelweissarc.in e·mail: earc.cs@edelweissfin.com Ideas create, values protect

Balance Sheet as at March 31 , 2019

ASSETS

Financial assets

(a) Cash and cash equivalents (b) Bank balances other than {a) above (c) Trade receivables (d) Loans (e) Investments (f) Other financial assets Sub-total - Financial assets

Non-financial assets

(a) Current tax assets {net) (b) Property, Plant and Equipment (c) Other Intangible assets (d) Other non-financial assets Sub-total - Non-financial assets

TOTAL ASSETS

LIABILITIES AND EQUITY

Financial liabilities

(a) Payables {I) Trade payables

(i) total outstanding dues of micro enterprises and small enterprises (ii) total outstanding dues of creditors other than micro enterprises and small enterprises

{b) Debt securities (c) Borrowings (other than debt securities)

(d) Deposits (e) Other financial liabilities Sub-total - Financial liabilities

Non-financial l iabilities

{a) Current tax liabilities (net)

(b) Provisions (c) Deferred tax liabilities (net) (d) Other non-financial liabilities Sub-total - Non-financial liabilities

Equity

(a) Equity share capital (b) Instruments entirely equity in nature (c) Other equity Total Equity

TOTAL LIABILITIES AND EQUITY

(~In Millions)

[

Mmh --r-March 31, 2019 31, 2018

(A~U (Audited)

375.63 215.05

4,174.05

2,399.39 61,094.17

50.00 68,308.29

0.00 8.07 7.88

79.41 95.36

68,403.65

142.09 42,262.94

2,483.55 3,600.00

150.13 48,638.71

28.29 18.67

1,779.24 589.43

2,415.63

2,105.26 332.00

14,912.05 17,349.31

68,403.65

54.97 223.65

3,395.83 2,474.73

48,147.87 50.00

54,347.05

116.00 8.87

17.78 278.70 421 .35

54,768.40

164.92 26,035.82 11,750.14 3,600.00

170.12 41,721.00

11 .73 1,033.90

41 6.58 1,462.21

2,1 05.26 244.00

9,235.93 11,585.19

54,768.40

Note: The disclosure is an extract of the audited Balance Sheet as at March 31,2019 and March 31 , 2018, prepared in complinace with the lnd

AS.

Date: May 13, 2019 Place: Mumbai

For and on behalf of the Board of Directors Edelweiss Asset Reconstruction Company Limited

.!Zo/ /ct!~ A~ Raj Kumar Bansal Managing Director and Chief Executive Officer

DIN :00122506

Edelweiss Asset Reconstruction Company Limited

Re8iStered Office: Edelweiss House. Off. C.S.T Rood, Kalina. Mumbal 400 098 e we Iss Corporate Identity Number: U67100MH2007PLC174759 € Ed 1 '

Tel: 191·22·4088 6090 Fax: t91·22·4019 4900 ldoll'i crnnto valuo•_. p rotf:c: t

website: www.cdclwcissarc. in e-mail' care c•h cdclwcTssfm com

Annexure -A

Information as required p ursuant to Regulation 52(4) o f SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015

a) Details of Credit Rating:

Instrument category ICRA CRISIL CARE BRICKWORK

i) Long Term Instruments long Term NCO and BLR long Term NCO and long Term NCO and BLR Long Term NCO BLR

Rating ICRA AA- & ICRA AA(SO) CRISIL AA (SO )IS table CARE AA- (SO) and BWRAA+(SO) AND CRISIL AA-/Stable I rARE AA ISO\.

ill. Short Term Instruments CPs-ST CPs-ST CPs-ST -Rating ICRAA1+ CRISILA1+ CARE A 1 + (SO)

iii) Market linked debentures a. lonQ Term Lonq Term-SP Lonq Term-SP lonq Term-SP -Rating PP-MLO ICRA AA(SO) CRISIL PP-MLD CARE PP-MLD AA (SO)

AartSOl/Stabte -

During the period from October 1, 2018 to March 31 , 2019 there was no change in credit rating.

b) Profit. Reserves & Rat ios:

Part iculars Year ended

March 31 2019 March 31 2018 a Net profit after tax 4,349.74 1,801.63 b Networth' 17,349.31 11.585.19

c) Oebt-equi!y_ Ratio .. 2.79 3.57

d) Capital redemption reserve - -e) Debenture redemption reserve 2.961 .18 1,778.40

f) Debt Service CoveraQe Ratio'" 0.69 1.13

!l) Interest Service Coveraqe Ratio' " 2.14 1.66

The Company has maintianed adequate asset cover for fulfill ing debenture obligation in respect of the Secured, Redeemable Non - Convertible Debentures issued by the Company. The debentures are secured by charge on Security Receipts and/or mortgage of immovable Jl(operty.

' Net worth = Share Capital + Reserves & Surplus - Deferred tax assets "Debt-equity ratio= Total Debt (long Term borrowing+ Short Term borrowing + Current Maturities of long term debts) I Net worth ' " Debt Service Coverage Ratio= Earnings before interest and tax I (Interest+ Principal Repayment in next 12 months) ""Interest Service Coverage Ratio = Earnings before interest and tax /Interest

ACUITE

Long Term NCO

ACUITE AA+/stabie

-

Edelweiss Asset Reconstruction Company Limited Corporate Identity !lumber: U671 00MH2007PLC174759 € Ed I ' Registered Office: Edelweiss House, Off. C.S.T Road, Kalina, Mumbol . 400 098 e we Iss Tel: +91 ·22·4088 6090 f ax: •9 1 22 ·4019 4900 ldoiHs crof\lo vrt luos protect website: WVIYt.cdclwcfssarc.fn c·mall' care csr.t1Cdelwclssfm com

c) Details of previous due date, next d ue date for the payment of interest and repayment of principal of non-convertib le debentures :

Sr. Debenture I Product Code Previo us due date for Whether Paid or Not Next due date for No. payment of Interest I payment o f Interest I Redempt ion (Princ ipal

Principal (From October Principal (From April 1, +Interest) (Rupees in 1, 2018 to March 31, 2019 to September 30, Millions)

201 9) 2019)

1 DD Dated- 14-June-2016 13-Dec-18 Yes NA NA 2 J8F601A 17-Dec-18 Yes NA NA 3 DD Dated- 04-Dec-2018 31-Dec-18 Yes NA NA 4 18F601A 01-Jan-19 Yes NA NA 5 18G601A 09-Jan-19 Yes NA NA 6 J8G601A 21 -Jan-19 Yes NA NA 7 J8G602A 23-Jan-19 Yes NA NA 8 DD Dated- 04-Dec-2018 31-Jan-19 Yes NA NA 9 DO Dated- 18-Feb-2016 22-Feb-19 Yes NA NA 10 DD Dated- 04-Dec-2018 28-Feb-19 Yes NA NA 11 DD Dated- 04-Dec-2018 31-Mar-19 Yes NA NA 12 DO Dated- 04-Dec-2018 NA NA 30-Acr-19 42.53 13 DO Dated- 04-Dec-2018 NA NA 31-May-19 43.95 14 DD Dated- 04-Dec-2018 NA NA 30-Jun-19 42.53 15 DO Dated- 04-Dec-2018 NA NA 31-Jul-19 43.95 16 DD Dated- 04-Dec-2018 NA NA 31-Aug-19 43.95 17 DO Dated- 04-Dec-2018 NA NA 30-Sep-19 42.53 18 DO Dated- 16-June-2016 NA NA 14-Jun-19 1107.50 19 DO Dated- 14-June-2016 NA NA 14-Jun-19 274.81 20 DO Dated- 14-June-2016 NA NA 14-Jun-19 54.95 21 DO Dated -7-Julv-2016 NA NA 05-Jui-19 276.88 22 DO Dated-14-Julv-2016 NA NA 15-Jul-19 2215.00 23 G9G602A NA NA 22-Jui-19 67.04 24 DO Dated-25-July-2016 NA NA 25-Jul-19 2219.60 25 E8E604A NA NA 30-Sep-19 69.50 26 F6F601A NA NA 27-Jun-19 2.00 27 F6F601A NA NA 28-Jun-19 4.00 28 F6G601A NA NA 03-Jui-18 18.50 29 F6G602A NA NA 04-Jul-18 5.00 30 F1F601A NA NA 05-Jul-18 26.25 31 121701A NA NA 12-Sep-18 53.10 32 DO dated March 28, 2017 28-Dec-18 and 28-Mar-19 Yes 28-Jun-19 and 28-Sep-19 10.6 and 10.5 33 DO dated March 29, 2017 28-Dec-18 and 28-Mar -19 Yes 28-Jun-19 and 28-Sep-19 5.70 and 5.70 34 DD dated April 26, 2017 28-Dec-18 and 28-Mar-19 Yes 28-Jun-19 and 28-Sep-19 5 .80 and 5. 70 35 DD dated April 27, 2017 28-Dec-1 8 and 28-Mar-19 Yes 28-Jun-19 and 28-Sep-19 9 .20 and 9.00 36 DD dated August 18, 2017 28-Dec-18 and 28-Mar-19 Yes 28-Jun-19 and 28-Sep-19 6.50 and 6.50 37 DO dated August 28, 2017 28-Dec-18 and 28-Mar-19 Yes 28-Jun-19 and 28-Sep-19 12.20 and 12.20 38 DO dated November 20. 2017 28-Dec-18 and 28-Mar-19 Yes 28-Jun-19 and 28-Sep-19 4.90 and 4.90 39 DO dated October 03, 2018 28-Dec-18 and 28-Mar-19 Yes 28-Jun-19 and 28-Sep-1 9 16.50 and 16.50 40 DO dated January 10, 2019 28-Dec-18 and 28-Mar-19 Yes 28-Jun-19 and 28-SeP-19 3.60 and 3.60 41 DO dated March 29, 2019 NA NA 28-Jun-19 and 28-Sep-19 3.60 and 3.60

Notes: 1) The Company has paid all the due amount of interesV principal on the respective due dates during the financial year ended March 31, 201g.

2) The details with regards to interesVprincipal are provided in the respect of those series in respect of which the interesVprincipal payment was due in the previous 6 months (i.e. October 1, 2018 to March 31 , 201g) of falling due in the next 6 months (i.e. Apri1 1, 2019 to September 30, 2019).

)