Sobha Ltd Annual Report 2022-2023

Building on
Our Momentum
Annual Report
2023
A pattern of excellence
Founded in 1995, SOBHA is a leading national real estate
brand known for international quality delivered at scale
through its unique backward integration model. The company
is recognized for on-time delivery of homes while offering
the highest standards of excellence and living experiences.
SOBHA has completed 128 mn. sft. across 528 projects in 27
cities spanning 14 states as of March 31, 2023.
SOBHA lays a strong emphasis on product quality achieved by

adopting new methodologies, technology and sustainability
practises while adhering to the highest safety standards.
The Company epitomizes ‘Passion at work,’ ingrained in each
Sobhaite across all its locations and operations.
Annual Report 2022 - 2023 1
Foreword
SOBHA is renowned for providing homes with international quality standards since its inception. It has
established itself as a trusted and preferred brand in the real estate sector known for unmatched reliability
and dependability. SOBHA is seen as a leading organization that establishes new industry benchmarks
through innovative designs and engineering while embracing modern sustainability practises. As the brand
continues to grow and diversify, SOBHA remains steadfast in its dedication to delivering exceptional products
and enriching living experiences, driven by a deep-rooted passion for excellence.
SOBHA’s success and evolution as a leading national brand lies in its DNA – understanding of the markets
and customer needs, together with the strong competence of its people, robust processes, operational
discipline and the highest standards of execution. The fully backward integration model continues to be the
backbone of SOBHA’s commitment to timely delivery of exceptional homes.
SOBHA’s expansion into the new residential markets of Trivandrum and Hyderabad this year, clearly reflects
its ability to capitalize, scale and execute on the opportunities arising from growing demand while meeting
the evolving needs. The high sales velocity and consistent quarterly performance witnessed during the year
across most markets reiterate the continuing affinity and preference that customers have for the SOBHA
brand.
In addition to SOBHA’s strong real estate performance, the Concrete Products, and Glazing and Metals Works
divisions did exceptionally well during the year, recording their highest annual revenues since inception,
contributing significantly to the Company’s performance.
Upholding its promise to deliver exceptional quality, SOBHA employs a robust training and certification
program that ensures continuous enhancement of skills and competencies of its teams. Periodic training
and recertification are carried out for engineers and technicians through the SOBHA Academy, while other
functional teams are provided with regular professional training opportunities.
SOBHA has also been conferred with some of the leading renowned real estate awards. During the
year Economic Times awarded SOBHA as one of the best Real Estate Brands in the country, while the
Brand X Report from Track2Realty recognized SOBHA at the top spot across six categories. SOBHA was
also conferred the BAM’s Builder of the Year – Large Category award that it won in 2018 and 2019 as well.
SOBHA’s sustainability focus is seen across its operations and projects, with many practises in this area
regarded as industry benchmarks. As part of its continuing sustainability commitment, SOBHA has made
provisions for EV charging in its projects as there is a growing acceptance of EV vehicles in India.
CSR efforts have been an integral part of SOBHA’s compassionate social development. As part of its focus to
provide quality education, SOBHA Icon was set up in 2010. SOBHA is thrilled to share that this year, children
from SOBHA Icon won scholarships from prestigious institutions and also secured good positions in leading
companies across the country.
As SOBHA embarks on new opportunities and challenges alike, the people behind its ongoing success
pride themselves for delivering consistent excellence. SOBHA’s thirst for delivering nothing but the best is
fundamental to its DNA that assures of a brighter future with strong financials.
Riding on the strong performance we have had, we foray into the future by ‘building on our momentum,’ and
continue on our journey of excellence.
2
Building on Our Momentum
Contents
Annual Report
Building on 2023
Our Momentum
20 Chairman’s Message
22 Board of Directors
05 24 Board Committees
24 Corporate Information
Building on 1
25 Directors’ Report
Our Momentum 86 Corporate Governance Report
111 Share Price Performance
Markets and Operating Environment 114

Projects and Work Done in 2022-23 121
114
Environment, Health and Safety 124
Corporate Social Responsibility 127
2 Management
Research and Development 132
Employees 133 Report
Risk Management Report 135
Operational and Financial Analysis 140
147
147 CEO & CFO Certification
148 Independent Auditors’ Report
Financial Statements 3
166 Standalone Financial Statements
- Standalone 171 Notes to the Standalone Financial Statements
Independent Auditors’ Report 248 248

Consolidated Financial Statements 264 4 Financial Statements
Notes to Consolidated Financial Statements 269 - Consolidated
355
Notice of the Annual 5
General Meeting
Glossary 366
6
366
Fiscal 2023 - Quarterly Highlights 367 Additional
3 years Financial Highlights 368 Information
4 Building on Our Momentum
SOBHA’s growth and success have been truly remarkable over the past year.
The Company’s commitment to delivering international quality products on
time has been unwavering. This has enhanced the trust and confidence of
its customers, which is also reflected in our record sales performance with
a healthy delivery run rate. With an even stronger resolve, we continue our
growth journey by building on the momentum we have achieved.
Building on
Our Momentum
Fuelled by unwavering dedication to excellence
The Financial Year 2022-23 has been In its quest to better communities, SOBHA’s
extraordinary for many reasons. CSR efforts continue to help raise standards
SOBHA registered consistent record of living, improved access to primary
sales and improved cash flow each healthcare, and provide livelihood to the
quarter recording a total sale of more deprived segments of our population.
5.65 mn. sft. during the year. The luxury
Staying competitive for the years
segment (> Rs 2 Cr.) contributed to 36%
ahead requires resilience. To that
of sales, up from 25% in FY21-22 while
end, SOBHA has developed a strong
the SOBHA Dream Series segment
financial and operational model that
(< Rs 1 Cr.) also continued to see
will ensure consistent performance and
good traction. SOBHA also achieved
sustainable growth.
its highest ever price realisation
and delivered 3.96 mn. sft. across In its pursuit of raising the standards and
the country. benchmarks of quality in the Indian real
estate sector, SOBHA continues to remain
Concrete Products and Glazing and
committed and dedicated to creating value
Metal Works divisions recorded their
for all its stakeholders by building on the
best ever annual revenue numbers
momentum that we have achieved.
with good operational performance
during the year.
As a leading industry brand, SOBHA’s

commitment to customers goes
beyond just delivering high-quality SOBHA has delivered projects
products and services. Better material totalling 128 mn. sft. across 27 cities in
selection, and adopting new building 14 states with 35.84 mn. sft. currently
methodologies that help conserve under development. Over the last
water and energy, remained a focus five years SOBHA has had a healthy
for the Company. Continuing its delivery run rate of 5 mn. sft. annually.
commitment to making our planet more
sustainable, SOBHA also introduced
EV charging points in its projects.
Cultivating pattern of
excellence
SOBHA has delivered excellence consistently for glass, SS & MS railings, architectural metal works,
over 27 years in real estate – a pattern that we balustrades, railings, and more; wooden products
are recognized for. As the most trusted brand ranging from doors, windows and panelling to
known for international quality products and living cabinets, cupboards, loose furniture; and custom-
experiences, SOBHA has a relentless focus on built joinery work; wide range of mattresses of
raising standards – in design, construction, building Economy, Deluxe, Super Deluxe & Premium quality;
materials and technology used across its projects. home furniture, furnishing products and other
home accessories.
Over the decades, the Company has strengthened
its DNA drawing inspiration from the vision of its At the core, SOBHA is about an unyielding
founder, Mr. PNC Menon, ‘Transform the way people commitment to delivering nothing but the best – it
perceive ‘Quality’.’ It is a vision that forever fuels is how we operate, perform and deliver.
the ‘Passion at work’ that the organisation thrives
on. This is reflected in the meticulous planning and The Company has built a strong culture of ownership
execution and adherence to exacting standards, and customer focus. Our core operating principles
which are part of SOBHA’s DNA. rest on complete transparency and promise of the
SOBHA brand. Our disciplined approach based on
SOBHA, in addition to developing residential and a strong governance model, culture of integrity and
commercial spaces, manufactures a wide range compliance with undiluted responsibility ensures a
of world class products. These include concrete solid foundation of trust and reliability.
products such as concrete blocks, pavers,
kerb stones, water drainage channels, paving The trust and credibility that customers have in
slabs, elite landscape products and Glass Fiber SOBHA have only grown several folds over the
Reinforced Concrete (GFRC) products; aluminium years, contributing significantly to the Company’s
windows, doors and louvers, glass skylights, business, presence and brand equity.
canopies and partitions, automatic sliding doors,
Sustainability across
the board
SOBHA has deeply embedded sustainability SOBHA’s efforts include harvesting rainwater
practises across it’s operations and projects, through collection tanks for roof-based
evident in the several measures it has taken run-offs and recharge pits for land-based
since inception. So much so, SOBHA has its run-offs. The land-based run-offs augment
own environmental engineering department that depleting groundwater resources and save potable
is involved in projects from the time they are water from municipal supply or groundwater.
conceptualized. The team conducts studies from
As a prerequisite, an effective system of solid waste
sustenance of water tables and noise pollution
management is implemented at all SOBHA projects.
levels to groundwater testing, and ensuring
The aim is to design and follow a comprehensive
feasibility of effective drainage systems.
Integrated Solid Waste Management (ISWM)
SOBHA’s environmental engineering team also system in its projects, which is both environmentally
works with IGBC-accredited officials. This helps and economically sustainable. The integrated solid
ensure that projects are designed and executed waste management system operates on the 4R
keeping the latest regulations and standards principles – Reduce, Reuse, Recycle and Recover
in mind. The Company has also invested in – the basic components of waste.
a dedicated laboratory for water testing to
SOBHA also installs Organic Waste Converters
ascertain physicochemical and microbiological
(OWCs) in its projects to convert organic waste
parameters that may have a direct impact on
such as vegetable waste, meat waste, leaves,
human well-being.
fruits, flowers into valuable compost that can
The Concrete Products Division uses green be used for organic farming activities. The
materials like ground granulated blast furnace technology adopted by SOBHA does not involve
slag and fly ash to reduce carbon footprint and a heating system, thus saving energy. Incidentally
contribute to the preservation of natural resources. this technology is also approved by the Pollution
Control Board.
Rainwater harvesting has emerged as one of the
most viable options to meet the increasing water
requirements of an expanding population.
SOBHA has adopted the Business Responsibility and

Sustainability Report (BRSR) for FY 2022-23 to provide
enhanced disclosures on its ESG practises and priorities.
The BRSR is based on NGRBC principles on the social,
environmental and economic responsibilities of business.
10 Building on our momentum
Recognizing brand
excellence
The recognition that SOBHA receives is a reflection of the collective efforts of every team with undiluted
commitment and passion for excellence. They are proof that diligence and hard work do not go unrecognised.
And for a year that has witnessed exceptional performance on all accounts, being conferred with distinguished
awards only shows that we are acknowledged for delivering on our brand promise.
Best Real Builder of the Ranked #1

Estate Brand Year (Large (Across six
Category) categories)
Economic Times
Realty Convention BAM Awards Track2Realty
2022 2022 Brand X Report
2022
Haryana State National Safety

Safety Welfare Council –
& Health Kerala Chapter
Awards 2023
2023
SOBHA is humbled and grateful for the accolades Continuing the successful run of 2018 and 2019,
it has received for corporate, sustainability and SOBHA won the ‘Builder of the Year – Large
CSR - over 220 awards since its inception. Category’ at the Builders, Architects, and Building
Material (BAM Awards) in 2022.
This year too, SOBHA is a proud recipient of
some prestigious awards. SOBHA ranked as a top ET Realty conferred SOBHA with the Best Realty
brand for the sixth time in Track2Realty’s Brand X Brand – reassuring not just every Sobhaite, but our
Report. In the 10 th
edition of this report, SOBHA stakeholders and customers too, that we continue
topped across six categories and. These included to deliver the best.
Top National Brand; Top South Indian Brand;
Top Residential Brand; Top Super Luxury Brand;
Company with Top CSR across India; and Public
Perception – Consumer Confidence Index.
Health and safety –

critical to success
Wellbeing is of paramount importance to SOBHA, Republic Day Celebrations in January 2023.
with every employee being responsible and The National Safety Council-Kerala Chapter
committed to building a strong health and safety also awarded the Marina One Kochi project
culture with the support of a dedicated team. ‘Outstanding Safety Performance’ as part of the
Health and safety practises have evolved over 52nd Safety Week celebrations in March 2023.
time through numerous improvements, active
The awards conferred on SOBHA recognise the
employee participation, and feedback.
collective efforts of every team in developing
Regular training programmes and safety audits industry-leading practises and processes that
are also conducted across our operations and have enabled the Company to achieve operational
project sites. This year SOBHA was the runner- excellence while safeguarding the health and
up in two categories – Longest Accident-Free safety of its people.
Period’ and ‘Best First Aid’ at the Haryana State
Safety, Welfare, and Health Awards as part of the
SOBHA Real Estate

As a leader in real estate, SOBHA has continually SOBHA has completed 191 real estate
set benchmarks and delivered impeccable developments totaling 70.34 mn. sft. across 7
international quality across its portfolio. Our cities as of March 31st, 2023.
commitment to quality is unmatched, with designs
SOBHA also takes pride in being at the forefront
that are contemporary, yet one of a kind.
of sustainable development and adopting
Upholding the highest standards in the industry, contemporary technologies. Unique to SOBHA is
we strive to exceed customer expectations its own dedicated environmental engineering team
and maintain a record of excellence in design, that designs all environmental services in-house:
construction, and delivery. Our projects have been water treatment plants, sewage treatment plants,
recognised with numerous awards for their unique organic waste converters, rainwater harvesting
style, thematic approach, construction quality, and treatment plants, and water bodies.
functional designs. With years of experience in the
industry, our team of highly qualified professionals
is dedicated to providing superior quality
to our customers.
SOBHA Contractual
SOBHA Contractual provides international- communities that will serve as hubs for economic
quality services from project conceptualization, growth and social progress.
planning, and design to engineering and execution
Trained and certified through the SOBHA
for external clients. With a team of experienced
Academy, the Contractual team of experts has
professionals, this division offers clients solutions
the remarkable ability to cater to the diverse
tailored to their requirements and budget.
requirements of customers. SOBHA’s self-reliant
The portfolio of executed projects ranges backward-integration model also allows for
from office spaces to convention centres and better control over quality and delivery, offering
multiplex theatres, IT/ITES offices, R&D centres, the advantage of providing integrated solutions
hotels, hostels, and many more. Each project with immense benefits in terms of cost and
is unique, requiring a skillful combination of operational efficiencies.
architectural design, engineering expertise, and
construction management.
Our clients include renowned corporates such

as Infosys, Taj Group, Dell, HP, Timken, Biocon, Continuing its winning streak in large
Institute of Public Enterprises (IPE), LuLu, and the project orders, our Contracts team
Azim Premji Foundation. These projects are not
has won two prestigious ‘NWCM -
only aesthetically designed but also functional
— to meet the needs of clients while also being
Commercial Development’ and ‘HUB
environmentally friendly and energy efficient. With 05-Commercial Development’ orders
these developments, we can aim to create vibrant to be developed at Karle Town Center,
Bangalore totalling 2.54 mn. sft.
SOBHA Manufacturing
SOBHA is the only real estate company in India to
have complete backward integration with all the
in-house competencies from design to delivery,
including skilled technicians and a comprehensive
manufacturing setup. This allows the Company
to have better control over quality and deliveries,
which is made possible by having stringent quality
standards, processes, skilled manpower, and a
strong supply chain.
SOBHA has established four main manufacturing

facilities that make use of modern equipment from
around the world, with highly skilled and trained
technicians working in these factories. Each of
these facilities is focused on excellence, with
workers receiving regular training and certification
to ensure sustained and high levels of quality.
These factories are not only self-sustaining but
also revenue-generating units that are constantly
pushing the boundaries of performance.
SOBHA’s four main factories in

Bangalore are spread over 25 acres
with about 1.13 mn. sft. of shopfloor
footprint.
The Company’s commitment to

delivering high-quality products and
services has earned it a reputation
as a trustworthy and reliable partner
for customers seeking innovative
designs, and world-class execution,
with contemporary sustainable
practises embedded.
Glazing and Metal Works

The Glazing and Metal Works division of SOBHA is
a state-of-the-art facility that ensures top-notch
quality products that add to the overall aesthetics
and functionality of projects.
SOBHA specialises in making unitized panels, with

a current capacity of 360 sq. m. of panels per
day and a production rate of 80 panels per day.
The factory’s capabilities extend to making semi-
unitized panels, doors, windows, PEB structures,
balustrades, railings, and decorative fencing.
Shop floor employees are trained periodically

to ensure standards of quality are maintained.
Currently, 50% of employees in the factory have
been with SOBHA for over 15 years.
In addition to adhering to standard safety and

quality regulations and having an ISO certification,
the Glazing and Metal Works Division is increasingly
using solar power for its operations as part of a
continued focus on good sustainability practises.
The Glazing and Metal Works Division

achieved its highest ever revenues in
FY 2022-23, a new record since its
inception.
Interiors
SOBHA’s Interiors division offers a wide range
of products that meet the needs for stylish and
durable interiors. The division offers a wide variety
of products, such as doors, a comprehensive
wooden product line of loose, fitted, upholstered,
and wooden furniture, fitted furniture such as
wardrobes, TV units, kitchens, storage units,
wooden panelling and ceiling works, customised
wooden joinery, decorative gypsum painting, and
tabletops.
The Interiors division adopts the best in

engineering standards, practises, and technology
and uses some of the finest woodworking
machines to ensure superior workmanship and
immaculate finishes. From design to delivery,
each manufacturing stage is subject to stringent
quality checks to ensure that the end product
meets customer expectations.
Through its comprehensive range of products

and services, SOBHA’s Interiors division is well-
equipped to provide sustainable and durable
interior solutions for large external projects and
homes alike.
Concrete Products
SOBHA’s concrete products manufacturing unit is
an advanced facility with highly skilled technicians
who work on the latest machinery, best-in-class
processes, and quality materials to produce a wide
range of quality products.
Multiple shop floors produce a variety of products,

including pavers, kerbs, solid and hollow blocks,
GFRC (Glass Fiber Reinforced Concrete) products,
and precast concrete products. All raw materials
are sourced only from trusted and reputed partners
and undergo rigorous testing in the well-equipped
laboratory to ensure that they meet the highest
standards of quality.
Through its focus on innovation and quality,

SOBHA’s concrete products division is setting new
standards in the industry. The use of advanced
technology and strict quality control measures
enable the division to produce products that
are not only durable and long-lasting but also
visually pleasing.
SOBHA’s Concrete Products division

had a remarkably successful year,
achieving the highest annual revenue
numbers since its establishment.
Mattresses
SOBHA Restoplus brand of spring mattresses
was launched in 2007, keeping in mind the need
for comfortable, durable, hygienic, scientifically
designed and aesthetically superior mattresses.
The product range includes thirty-six plus
mattress combinations, including sleep and bath
accessories. Mattresses come in a variety of
designs and features, from pocketed, bonnell,
re-bonded and foam to rolled, coir and pure
latex mattresses.
To ensure consistent and high quality, an extremely

stringent process is followed - starting from testing
of incoming material, quality checks during the
processing stage, and final checks of finished
goods. A ‘sleep laboratory’ has been set up to
ensure high quality and reliability of designs and
materials used, including final product quality.
The mattress facility incorporates the latest

manufacturing processes and specialized
equipment imported from European countries and
America. A skilled workforce is regularly trained
to ensure better productivity and consistent
product quality.
The Company places a high emphasis on

employee health and safety while striving to
improve overall wellbeing. Additionally, the
factory is increasingly using solar energy to
power its operations, as part of SOBHA’s
commitment to sustainability.
Restoplus celebrated 15 years of

delivering restful sleep to millions
of customers in October 2022.
Launched in 2007, the Division has a
286-strong dealership network, and is
a member of the International Sleep
Product Association.
metercube
metercube is SOBHA’s one-stop solution for home
buyers, allowing them the flexibility to elegantly
furnish and decorate their homes through a
wide range of interior packages available online.
metercube’s interior packages offer semi-finished
options with kitchens and wardrobes, as well as
fully furnished homes for living, bedrooms, and
more.
metercube’s full-fledged in-house design and

engineering, interior design, strategic sourcing,
manufacturing, and warehouse operations ensure
the quality and timely delivery of all goods and
services offered.
Customers can experience the full range of

metercube’s offerings at their flagship store located
at 1 SOBHA Mall, St. Marks Road, Bangalore. Overall,
metercube is a one-stop solution for home buyers,
offering a range of products and services under
one roof with a convenient and seamless buying
experience.
20 Chairman’s message
Building on Our Momentum

Expanding geographical presence, record-breaking
performance, and commitment to excellence and
sustainability
FY 22–23 has been an exceptional year for
SOBHA, with each quarter being a record-breaking
performance. Our sales team, with the tremendous
support of our marketing team, has outperformed
on all fronts. We achieved a 15% growth in sales
square footage area, reaching 5.65 mn.sft. The
sales value also grew by 34.3% to Rs. 51.98 billion,
and we saw an improved average price realisation
of 16.7% compared to the previous year.
Our flagship market, Bangalore, continued to

demonstrate strength with an impressive growth
rate of 16.8%, contributing 69.3% to the total sold.
We also achieved significant growth in our NCR
market, which grew by 14%. Additionally, GIFT
City, Kerala, and Tamil Nadu showcased steady
growth throughout the year. I am particularly proud
to announce the completion of over five million
square feet in SOBHA Dream Acres, Bangalore, our
first pre-cast project in Bangalore. This remarkable
achievement represents a significant milestone for
Dear shareholders and us, as we have successfully delivered an emerging
friends of SOBHA, technology in India on a large scale. Leveraging

our backward integrated design and construction
I am pleased to share with you the positive capabilities, we swiftly adapted this technology
developments and achievements of SOBHA over to meet local requirements while upholding the
the past year, as we continue to build on the highest standards of quality. This accomplishment
momentum we have gained. It has been a year showcases our commitment to innovation, efficient
of remarkable growth, challenges, and invaluable execution, and delivering exceptional results to
learning experiences. I am immensely proud to say our valued customers.
that we have emerged stronger, capitalising on A recent report indicates a significant rise of over
our momentum and positioning ourselves for even 150% in the sale of luxury residential properties in
greater success in the future. India during the last quarter of FY 22–23. This trend
Throughout the year, we have strategically presents ample opportunities for us to deliver our
taken steps to strengthen our brand and expand best to discerning customers who continue to
our presence across the country. We have place their trust in the SOBHA brand.
made our residential debut in two new cities, I am delighted to inform you that we have achieved
Thiruvananthapuram and Hyderabad, which has the highest-ever net debt reduction in our history.
further increased our geographic footprint. Our net debt has been reduced by Rs. 6.97 billion,
resulting in a net-debt equity ratio of 0.66. This Sustainability is a core focus for us at SOBHA. We
achievement was made possible due to a significant have implemented contemporary and effective
increase in our cashflow, which improved by 32.6% practises in our operations and projects that
to reach Rs. 52.82 billion, a new record. Real estate strongly reflect our commitment to sustainability.
collections also increased significantly by 35.7%, Some examples include rainwater harvesting,
and contracts and manufacturing achieved growth the use of organic waste converters, designs
of 20.6%. that maximise natural lighting and ventilation,
basements designed to minimise the use of
Our Concrete Products and the Glazing and Metal
exhaust fans, LED lights in common areas, and
Works Division recorded healthy performances,
more. Moving forward, our goal is to include EV
achieving record sales turnovers. Specifically, our
charging points as a standard feature in all our
Concrete Products Division recorded its highest
forthcoming launches.
quarterly and monthly billing and collections,
which have made a substantial contribution to our SOBHA’s journey is made possible by our immensely
overall business. talented team, who consistently work their magic.
I extend my gratitude to every Sobhaite for making
SOBHA’s commitment to excellence, sustainable
every SOBHA dream come true. I would also like
projects, and Corporate Social Responsibility
to thank our Board for their unwavering support
(CSR) efforts has been consistently recognised.
and guidance and express my appreciation to our
This year, we received three significant brand
customers for their confidence and trust in the
awards. The Economic Times Realty Conclave
SOBHA brand.
acknowledged SOBHA as one of the top real estate
brands in the country. In the Brand X Track2Realty Wishing you and your families a secure and
2022 report, we secured the first position across prosperous future.
six categories, further validating our industry
Ravi PNC Menon
leadership. Additionally, we were honoured with
the Builders, Architects, and Building Material
(BAM) award for Builder of the Year in the large
category, an accolade we have also proudly Chairman
received in 2018 and 2019. These prestigious Sobha Ltd.
awards endorse the strength of the SOBHA
brand, affirming our commitment to delivering
contemporary designs, meticulous detailing, and
world-class construction quality. However, beyond
the recognition and awards, our true drive stems
from our unwavering dedication to providing
customers with exceptional, international quality
and living experiences.
SOBHA is dedicated to making a positive impact

through our CSR initiatives, focusing on education,
healthcare, women’s empowerment, support for
the elderly, and various environmental initiatives.
We are committed to compassionate social
development and continuously deepen our efforts
in these areas.
INFORMATION FOR OUR
22 Annual Report 2022 - 2023

SHAREHOLDERS
BOARD OF DIRECTORS
Sitting from left to right MR. RAVI PNC MENON

CHAIRMAN
MS. SRIVATHSALA K N
Independent Director Mr. Ravi PNC Menon is the Chairman of the Company.
He holds a degree in Bachelor of Science in Civil
MR. ANUP S SHAH Engineering from Purdue University, USA. He has
Independent Director 19 years of experience in the field of construction
and real estate development. Till 31st March, 2023,
MR. RAVI PNC MENON as an Executive Director, he was responsible for
Chairman developing the strategic vision of the Company,
establishing the organisations’ goals and objectives
MR. RAMAN MANGALORKAR and directing the Company towards their fulfilment.
Independent Director He played a key role in the successful integration
of pre-cast technology into our construction
Standing from left to right methodology. He plays an influential and prominent
role in augmenting the product delivery levels of the
Company, attaining of superior standards of quality,
MR. R V S RAO
Independent Director new product launches and customer relationship
management.
MR. JAGADISH NANGINENI He has resigned from the position of Executive
Managing Director Director w.e.f. close of 31st March, 2023 and
continues as Non-executive Non-Independent
Director and Chairman effective 01st April, 2023. As
a Non-executive Chairman he continues to support
as a mentor and guides the Senior Management in
INFORMATION FOR OUR
SHAREHOLDERS
the areas of business strategy, quality assurance, real estate transactions, leases, development
technology advancement, design and engineering, agreements and joint ventures. He specialises
sales and marketing, product delivery, project in commercial and property documentation,
execution, risk mitigation, process and information corporate and commercial litigation, property
technology and customer satisfaction. related issues, land laws, arbitration and alternative
dispute resolutions.
MR. JAGADISH NANGINENI
MANAGING DIRECTOR MS. SRIVATHSALA K N
INDEPENDENT DIRECTOR
Mr. Jagadish Nangineni is the Managing Director of
the Company. He has over 21 years of experience Ms. Srivathsala K N is an Independent Director of the
in the field of real estate, technology, consulting Company. She is an entrepreneur, strategic business
and has been associated with SOBHA since advisor, financial planner, active angel investor,
November 2009. He is entrusted with the overall start-up expert and a mentor. She is the founder of
responsibility of managing the affairs of the four organisations - Fintrans Investment Advisors,
Company and achieving the targets of the Company. Wintrans Consultancy, Eleasee and Vandyam
He plays an instrumental role in leading the growth Prasada Foods. She is a mentor at Prahlad Kakkar’s
of the Company in all operational businesses and Institute of Branding and Entrepreneurship and IIT
related functions. Mr. Jagadish Nangineni holds Bombay and Kharagpur. She guides students on
MBA from the Indian Institute of Management, financial planning and entrepreneurship. Besides
Calcutta and has done Bachelor of Technology this, she has conducted several training and
(B.Tech) in Civil Engineering from Indian Institute of awareness programmes on entrepreneurship and
Technology, Bombay. financial literacy for corporates, public and students.
Ms. Srivathsala K N is a certified financial planner
MR. R V S RAO and an accounting technician from the Institute of
INDEPENDENT DIRECTOR Chartered Accountant of India. She holds a Master’s
degree in Commerce from the Bangalore University.
Mr. R V S Rao is an Independent Director of
the Company. He holds a Bachelor’s degree in MR. RAMAN MANGALORKAR
Commerce from the University of Mysore and a INDEPENDENT DIRECTOR
Bachelor’s degree in law from Bangalore University.
He is a fellow member of Indian Institute of Banking Mr. Raman Mangalorkar is an Independent Director
and Finance. He has over 51 years of experience of the Company. He is an entrepreneur and
in the areas of banking and finance. He has served currently running a health-tech startup in the life
on the Board of Directors of Housing Development extension and age reversal space. He has worked
Finance Corporation Limited. As a United States as Chief Executive Officer (CEO) of Jubilant Agri and
Agency for International Development (USAID) Consumer Products Limited and as the Managing
Consultant, he was the team leader that reviewed Director of Highstreet Capital in the Private Equity
operations and made recommendations for the space. He worked with A.T. Kearney as the Head of
Housing Finance Company, Ghana, Africa. He the Consumer and Retail Practice for Asia Pacific on
also led the consultancy team, which advised a variety of projects around the world including in
the National Development Bank of Sri Lanka in the USA, UK, Switzerland, Japan, Korea and South
establishing its mortgage finance business. He is an America. Before this, he focused on the Corporate
Finance and Treasury functions with Federal Mogul
associate of the Indian Institute of Bankers and a life
in Detroit. Mr. Raman Mangalorkar has more than
member of the All India Management Association.
thirty years’ experience of industry, consulting and
private equity and worked across the globe on a
MR. ANUP S SHAH
wide range of strategic, operational and organization
INDEPENDENT DIRECTOR
issues. His areas of expertise includes formulating
Mr. Anup S Shah is an Independent Director of business strategies, transforming supply chains and
the Company. He holds a Bachelor’s degree in managing large scale program implementations
commerce from HR College, Mumbai and a degree especially in the Retail and Consumer industries.
in law from Government Law College, Mumbai. He Mr. Raman Mangalorkar completed his Masters in
has over 39 years of experience in the field of law, Business Administration from Indiana University
specifically real estate law. Since founding his own (Kelley School of Business) with specializations in
firm in 1993, he has advised developers, builders Finance and MIS. He also has a Master’s in commerce
and foreign and domestic investors in structuring from Bangalore University.
INFORMATION FOR OUR

SHAREHOLDERS
COMMITTEES OF CORPORATE
THE BOARD INFORMATION
AUDIT COMMITTEE COMPANY SECRETARY AND
COMPLIANCE OFFICER
Mr. Raman Mangalorkar (Chairman)
Mr. R V S Rao Mr. Vighneshwar G Bhat
Mr. Jagadish Nangineni
Ms. Srivathsala K N CHIEF FINANCIAL OFFICER
Mr. Yogesh Bansal
STAKEHOLDERS RELATIONSHIP COMMITTEE
STATUTORY AUDITORS
Ms. Srivathsala K N (Chairman)
Mr. Ravi PNC Menon M/s. Walker Chandiok & Co LLP
Mr. Raman Mangalorkar Chartered Accountants
Mr. Jagadish Nangineni 5th Floor, 65/2, Block A,Bagmane Tribid,
Bagmane Tech Park, C V Raman Nagar,
NOMINATION, REMUNERATION AND Bengaluru-560093.
GOVERNANCE COMMITTEE
Mr. Anup S Shah (Chairman) BANKERS AND FINANCIAL INSTITUTIONS
Mr. R V S Rao Aditya Birla Finance Limited
Mr. Ravi PNC Menon Aditya Birla Housing Finance Limited
Mr. Raman Mangalorkar Arka Fincap Limited
Axis Bank
CORPORATE SOCIAL RESPONSIBILITY Bajaj Housing Finance Limited
COMMITTEE
Bank of Baroda
Mr. Anup S Shah (Chairman) Bank of India
Ms. Srivathsala K N Catholic Syrian Bank
Mr. Jagadish Nangineni Canara Bank
DBS Bank India Limited
SHARE TRANSFER COMMITTEE DCB Bank Limited
Mr. Jagadish Nangineni (Chairman) Deutsche Bank
Mr. Ravi PNC Menon Dhana Lakshmi Bank
Ms. Srivathsala K N HDFC Bank
HDFC Limited
RISK MANAGEMENT COMMITTEE ICICI Bank
Mr. Anup S Shah (Chairman) IDBI Bank
Mr. Ravi PNC Menon Indian Bank
Mr. Jagadish Nangineni IndusInd Bank
Mr. Yogesh Bansal Karnataka Bank
Karur Vysya Bank
Kotak Mahindra Bank Limited
REGISTERED AND CORPORATE OFFICE
Kotak Mahindra Investments Limited
Sobha Limited
Punjab National Bank
‘SOBHA’
RBL Bank Limited
Sarjapur-Marathahalli Outer Ring Road (ORR),
South Indian Bank
Devarabisanahalli, Bellandur Post,
Bangalore - 560 103. Standard Chartered Bank
Tel: +91 80 4932 0000 State Bank of India
www.sobha.com Tata Capital Financial Services Limited
CIN: L45201KA1995PLC018475 Union Bank of India
INFORMATION FOR OUR
SHAREHOLDERS
DIRECTORS’ REPORT
Dear Members,
Your Directors have pleasure in presenting the 28th Annual Report on the business and operations of the
Company together with the audited results for the financial year ended March 31, 2023.
FINANCIAL HIGHLIGHTS (₹ In million)
Standalone Consolidated
Particulars
2022-23 2021-22* 2022-23 2021-22*
Total Revenue 34,258.65 26,352.24 34,024.33 26,452.27
Operating Expenditure 29,879.04 20,369.65 29,405.97 20,284.50
Earnings before Interest, Depreciation and Amortisation 4,379.61 5,982.59 4,618.36 6,167.77
Depreciation and Amortisation 638.71 678.16 678.37 718.27
Finance Cost 2,423.80 2,993.70 2,490.24 3,083.25
Profit Before Tax 1,317.10 2,310.73 1,449.75 2,366.25
Tax Expenses 364.21 619.25 407.70 634.35
Profit after Tax 952.89 1,691.48 1,042.05 1,731.90
*Pursuant to Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, the financial statements for the previous
reporting periods were restated.
BUSINESS AND OPERATIONS B. FINANCIAL OVERVIEW
A. BUSINESS OVERVIEW Standalone

SOBHA primarily operates across the During financial year 2022-23, the Company
following business verticals: had on a standalone basis, earned total
• Real Estate – Development of residential revenues of ₹34,258.65 million as compared
and commercial properties under to ₹26,352.24 million in the previous year,
SOBHA brand name. an increase of 30% y-o-y. The Profit before
• Contractual – EPC (Engineering, Tax during the year was ₹1,317.10 million as
procurement and construction) contracts against ₹2,310.73 million in the previous year,
catering to external institutional clients. decreased by 43.03% and Profit after Tax
during the year was ₹952.89 million as against
• Manufacturing – Construction sector
₹1,691.48 million in the previous year, that is,
related production capabilities like
Concrete, Glazing, Interiors etc., decreased by 43.67%.
supporting in-house projects as well
Consolidated
servicing external clients.
A summary of completed and ongoing The consolidated revenues of the Company
projects as on March 31, 2023 has been during the financial year 2022-23 were
provided in the Management Discussion and ₹34,024.33 million, an increase of 28.62%
Analysis Report titled ‘Management Report’ from the previous year. The Profit before
which forms a part of the Annual Report. Tax decreased by 38.73% and Profit after
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Tax (after considering minority interest) is ₹2,000,000,000 divided into 150,000,000

decreased by 39.83% as compared to the equity shares of ₹10 each and 5,000,000
financial year 2021-22. preference shares of ₹100 each. At the
beginning of the year under review, the
Transfer to Reserves issued, subscribed and fully paid up capital
Your Directors propose to transfer was ₹948,458,530 divided into 94,845,853
₹95.29 million of the current profits to the equity shares of ₹10 each. There was no
General Reserve. change in the issued, subscribed and fully
paid up share capital of the Company during
Dividend the year under review. Sobha Limited is a
public limited company and its equity shares
The Company aims to follow a consistent are listed on the National Stock Exchange of
dividend pay-out while striving to achieve India Limited and BSE Limited.
a trade-off between deployment of internal
accruals for growth and the payment of B. CHANGES IN SUBSIDIARIES, JOINT
dividend. VENTURES AND ASSOCIATES
The Board of Directors, subject to the As on date, the Company has six direct
approval of the shareholders at the ensuing subsidiaries and five step-down subsidiaries.
Annual General Meeting are pleased to The Company also has an economic interest
recommend a dividend of ₹ 3.00 per equity in a partnership firm which has 6 subsidiaries.
share of ₹ 10 each. During the year under review, there is no
change in Subsidiaries, Joint Ventures and
The Dividend Distribution Policy is
Associates of the Company.
available on the Company’s website at
h t t p s : // w w w. s o b h a . c o m / w p - c o n te n t /
uploads/2020/10/153630151720180907.pdf BOARD OF DIRECTORS AND ITS
COMMITTEES
C. OPERATIONAL OVERVIEW
A. COMPOSITION OF THE BOARD OF
Completed Projects DIRECTORS
During the year under review, the Company As on March 31, 2023, the Board of Directors
executed and handed over 5.78 million square of the Company comprised six Directors of
feet real estate projects and 0.62 million which, four are Non-executive Independent
square feet of contractual projects resulting Directors and two are Executive Directors.
in an aggregate development of 6.40 million The composition of the Board of Directors
square feet. is in compliance with Regulation 17 of
SEBI (Listing Obligations and Disclosure
The Company has completed construction Requirements) Regulations, 2015 (Listing
of 128 million square feet of area since its Regulations) and Section 149 of the
inception. Companies Act, 2013.
Ongoing Projects The Company has received necessary

declarations from the Independent Directors
The Company currently has real estate stating that they meet the criteria of
projects aggregating 30.60 million square independence as specified in Section 149(6)
feet of developable area. It has 5.24 million of the Companies Act, 2013 and Regulation
square feet of ongoing contractual projects 25(8) of the Listing Regulations.
which are in various stages of construction.
The Company has a geographic footprint in B. CHANGES IN DIRECTORS AND KEY
MANAGERIAL PERSONNEL
27 cities across 14 states in India.
Mr. Jagadish Nangineni, was appointed as
SHARE CAPITAL RELATED MATTERS an Additional Director in the capacity
of Whole-time Director designated as
A. SHARE CAPITAL
Managing Director effective April 01, 2022.
The authorized share capital of the Company His appointment was approved by the
INFORMATION FOR OUR
SHAREHOLDERS
shareholders by passing resolutions through as an Annexure to the Notice convening the
postal ballot on June 09, 2022. Annual General Meeting. Specific information
Mr. Raman Mangalorkar, was appointed about the nature of Mr. Jagadish Nangineni’s
as an Additional Director in the capacity expertise in specific functional areas and the
of Non-executive Independent Director names of the companies in which he holds
effective April 01, 2022. His appointment directorship and membership/chairmanship
was approved by the shareholders by of the Board Committees has also been
passing a resolution through postal ballot on provided in the Notice convening the Annual
June 09, 2022. General Meeting.
Mr. Ravi PNC Menon, resigned from the E. PERFORMANCE EVALUATION

position of Whole-time (Executive) Director
effective close of March 31, 2023 and would In terms of Section 134 (3) (p) read with
continue as Non-Executive Director and Articles VII and VIII of Schedule IV of the
Chairman of the Company with effect from Companies Act, 2013, the Board has carried
April 01, 2023. out an annual performance evaluation of its
own performance and that of its statutory
C. MEETINGS committees - the Audit Committee,
Stakeholders’ Relationship Committee,
During the year under review, the Board of Nomination, Remuneration and Governance
Directors met five times on the following Committee and that of the Individual
dates: Directors.
1. May 20, 2022 The Board assessed the performance and
2. August 09, 2022 the potential of each of the Independent
Directors with a view to maximizing their
3. November 14, 2022 contribution to the Board. As envisaged
4. February 07, 2023 by the Act, the Independent Directors
reviewed the performance of the Chairman
5. March 06, 2023
of the Board at a Meeting especially called
In accordance with the provisions of the for that purpose. At the same Meeting, a
Companies Act, 2013, a separate meeting of review of the Executive Directors was also
the Independent Directors of the Company carried out.
was held on March 31, 2023.
F. DIRECTORS’ RESPONSIBILITY
D. RE-APPOINTMENT OF DIRECTORS STATEMENT
RETIRING BY ROTATION According to the information and
Pursuant to the provisions of Section 152 explanations obtained, pursuant to Section
of the Companies Act, 2013, Mr. Jagadish 134(5) of the Companies Act, 2013, your
Nangineni, Director and Managing Director Directors hereby confirm, that:
(DIN: 01871780) is liable to retire by rotation a. In the preparation of the annual
at the ensuing Annual General Meeting accounts, the applicable accounting
and being eligible offers himself for standards have been followed along
re-appointment. The Board of Directors with proper explanations relating to
based on the recommendation of Nomination, material departures;
Remuneration and Governance Committee,
b. the directors have selected such
has recommended the re-appointment of
accounting policies and applied them
Mr. Jagadish Nangineni, Director designated
consistently and made judgments
as Managing Director, retiring by rotation.
and estimates that are reasonable
The Notice convening the Annual General and prudent so as to give a true and
Meeting includes the proposal for fair view of the state of affairs of the
re-appointment of Mr. Jagadish Nangineni as Company at the end of the financial
a Director of the Company. A brief resume of year and of the profit of the Company
Mr. Jagadish Nangineni has been provided for that period;
INFORMATION FOR OUR

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c. proper and sufficient care was taken were duly considered and accepted by
for the maintenance of adequate the Board of Directors. There were no
accounting records in accordance instances of non-acceptance of such
with the provisions of this Act for recommendations.
safeguarding the assets of the Company
and for preventing and detecting fraud B. STATUTORY AUDITORS
and other irregularities;
At the Twenty Seventh Annual General
d. the annual accounts have been Meeting held on August 10, 2022 the
prepared on a going concern basis; members appointed M/s. Walker Chandiok
e. internal financial controls to be followed & Co LLP, Chartered Accountants (Firm
by the Company have been laid down Registration No. 001076N/N500013) as
and such internal financial controls are Statutory Auditors of the Company in
adequate and operating effectively; and place of BSR & Co. LLP, retiring statutory
auditors, for a period of 5 years from the
f. proper systems have been devised to
conclusion of 27th Annual General Meeting
ensure compliance with the provisions
till the conclusion of the 32nd Annual General
of all applicable laws and that such
Meeting.
systems were adequate and operating
effectively. The Statutory Auditors expressed an
unmodified opinion in the audit reports with
AUDIT RELATED MATTERS respect to audited financial statements for
the financial year ended March 31, 2023.
A. AUDIT COMMITTEE
There are no qualifications or adverse
The composition of the Audit Committee as remarks in the Statutory Auditors’ Report
on March 31, 2023 was: which require any explanation from the
1. Mr. Raman Mangalorkar (Independent Board of Directors.
Director) – Chairman
C. SECRETARIAL AUDIT
2. Mr. Jagadish Nangineni (Managing
Director) – Member Secretarial Audit of the Company for the
3. Mr. R V S Rao (Independent Director) - year ended March 31, 2023 was conducted
Member by Mr. Nagendra D Rao, Practicing Company
Secretary. The Secretarial Audit Report
4. Ms. Srivathsala K N (Independent
issued by Mr. Nagendra D Rao, in accordance
Director) - Member
with the provisions of Section 204 of the
Companies Act, 2013 is provided separately
The Audit Committee was reconstituted at the
in the Annual Report (Annexure A).
Board meeting held on November 14, 2022.
Mr. RVS Rao ceased to be Chairman of the There are no qualifications or adverse
Audit Committee w.e.f. November 14, 2022 remarks in the Secretarial Audit Report which
and continued as member of the Committee. require any explanation from the Board of
Mr. Raman Mangalorkar was appointed Directors.
as a Member of Audit Committee
w.e.f. April 01, 2022 and was appointed as D. COST AUDIT
Chairman of the Audit Committee w.e.f.
The Cost Audit Report for the financial
November 14, 2022.
year 2021-22 was filed with the Ministry of
The terms of reference, the powers, roles Corporate Affairs, New Delhi within the due
and responsibilities of the Audit Committee date prescribed under the Companies (Cost
are in accordance with the requirements Records and Audit) Rules, 2014. There are no
mandated under Section 177 of the qualifications or adverse remarks in the Cost
Companies Act, 2013 and Regulation 18 of Audit Report which require any explanation
the Listing Regulations. from the Board of Directors.
During the period under review, the advice The Board of Directors, based on the
and suggestions by the Audit Committee recommendation of the Audit Committee,
INFORMATION FOR OUR
SHAREHOLDERS
have appointed M/s. Srinivas and Co, Cost relating to the remuneration for the
Accountants (Firm Registration No: 000278) Directors, Key Managerial Personnel and
as the Cost Auditors of the Company for senior management personnel of the
the financial year 2022-23. In terms of Rule Company. The committee also postulates
14 of the Companies (Audit and Auditors) the methodology for effective evaluation
Rules, 2014, the remuneration payable to of the performance of Individual Directors,
the Cost Auditors for financial year 2022-23 committees of the Board and the Board
is subject to ratification by the shareholders as a whole which should be carried
of the Company. The Notice convening out by the Board, committee or by an
the Annual General Meeting contains the independent external agency and review its
proposal for ratification of the remuneration implementation and compliance. Nomination
payable to the Cost Auditors. and Remuneration Policy is reproduced in
Annexure B to this report. The Nomination
E. INTERNAL AUDIT AND INTERNAL and Remuneration Policy is also available
FINANCIAL CONTROLS on the Company’s website at https://www.
The Internal Audit Team is responsible for sobha.com/wp-content/uploads/2022/03/
assurance with regard to the effectiveness, amended-Nomination-and-Remuneration-
accuracy and efficiency of the internal control Policy.pdf.
systems and processes in the Company.
The Internal Audit Team is independent, B. THE RISK MANAGEMENT FRAMEWORK
designed to add value and empowered to The Company has developed and
improve the Company’s processes. It helps implemented a risk management framework
the Company accomplish its objectives by detailing the various internal and external
bringing a systematic, disciplined approach risks faced by the Company and methods and
to evaluate and improve the effectiveness procedures for identifying, monitoring and
of risk management and control and mitigating such risks. The Board of Directors
governance processes. of the Company has constituted a Risk
There are adequate internal financial Management Committee which is entrusted
controls in place with reference to the with the task of evaluating, monitoring
financial statements. During the year under and reviewing the risk management plan
review, the Internal Audit Team and the and procedures of the Company. The risk
Statutory Auditors tested these controls and management function is supporting the
no significant weakness was identified either internal control mechanism of the Company
in the design or operations of the controls. and supplements the internal and statutory
A report issued by the Statutory Auditors, audit functions.
M/s. Walker Chandiok & Co LLP, on the
There was no offence or fraud that needs to
Internal Financial Controls forms a part of the
be reported by the Statutory Auditors as per
Annual Report.
Section 143 (12) of the Companies Act, 2013.
POLICY MATTERS
C. CORPORATE SOCIAL RESPONSIBILITY
A. NOMINATION AND REMUNERATION POLICY
POLICY Over the past decades, the Company has
The Nomination, Remuneration and been actively engaged in delivering maximum
Governance Committee of the Board of value to the society. The Company lays
Directors is responsible for recommending significant emphasis on the economic, social
the appointment of the Directors and senior empowerment and sustainable development
management to the Board of Directors of of the communities around which it
the Company. The Company has in place operates. The Company believes that its
a Nomination and Remuneration Policy achievements do not refer only to its growth
containing the criteria for determining but also spread to society. Accordingly, the
qualifications, positive attributes and Company through Sri Kurumba Educational
independence of a Director and policy & Charitable Trust, a public charitable trust,
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has adopted three village panchayats - in terms of Chapter V of the Companies Act,
Vadakkencherry, Kizhakkencherry and 2013 read with the Companies (Acceptance
Kannambra in Palakkad district of Kerala, of Deposit) Rules, 2014, during the year
each consisting of two villages, to improve under review. As such, no amount of
the lifestyle of the people at the grassroots principal or interest was outstanding as on
level. date of this report.
The Corporate Social Responsibility Policy,
C. TRANSFER TO THE INVESTOR
as formulated by the Corporate Social
EDUCATION AND PROTECTION FUND
Responsibility Committee and approved by
the Board of Directors is available on the In compliance with Section 124 of the
Company’s website at https://www.sobha. Companies Act, 2013, the dividends
com/wp-content/uploads/2023/06/CSR- pertaining to financial year 2014-15 which
Policy.pdf were lying unclaimed with the Company
In terms of Section 134 of the Companies Act, were transferred to the Investor Education
2013 read with the Companies (Corporate and Protection Fund during financial year
Social Responsibility Policy) Rules, 2014, 2022-23. The details of unclaimed dividends
the annual report on the Corporate Social transferred to the Investor Education and
Responsibility activities of the Company is Protection Fund has been detailed in the
given in Annexure C to this report. Corporate Governance Report which forms
a part of the Annual Report.
D. VIGIL MECHANISM As required under Section 124 of the
The Company has established a vigil Companies Act, 2013 and the Rules made
mechanism to promote ethical behaviour thereunder, 3,087 equity shares, in respect
in all its business activities. It has in place of which dividend had not been claimed
a mechanism for employees and directors by the shareholders for seven consecutive
to report any genuine grievances, illegal years or more, were transferred to the
and unethical behaviour, suspected fraud Investor Education and Protection Fund
or violation of laws, rules and regulations during the year under review. The details of
or conduct to the Vigilance Officer and the the shares and shareholders are available on
Audit Committee of the Board of Directors. the Company’s website.
The policy also provides for adequate
protection to whistle blower against D. SIGNIFICANT OR MATERIAL ORDERS
victimization or discriminatory practices. The PASSED BY REGULATORS/COURTS
policy is available on the Company’s website
During the year under review, there were no
at https://www.sobha.com/wp-content/
significant or material orders passed by the
uploads/2020/10/153630159420180907.pdf
regulators or courts or tribunals impacting
During the year under review, the the going concern status and Company’s
Company did not receive any complaints operations in future.
relating to unethical behaviour, actual
or suspected fraud, or violation of the E. HUMAN RESOURCES
Company’s Code of Conduct from any
Employee relations continue to be cordial at
employee or Directors.
all levels and in all divisions of the Company.
The Board of Directors would like to express
OTHER MATTERS
its sincere appreciation to all the employees
A. DEBENTURES for their continued hard work and steadfast
dedication.
There were no outstanding debentures as
on March 31, 2023. As on March 31, 2023, the Company had an
organizational strength of 3,406 employees.
B. DEPOSITS
Details about the employees are provided in
The Company has not accepted any deposits a separate section in the Annual Report.
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F. DISCLOSURE UNDER THE SEXUAL Standards issued by the Institute of Company
HARASSMENT OF WOMEN AT Secretaries of India have been complied with
WORKPLACE (PREVENTION, PROHIBITION pursuant to the Companies Act, 2013 and
AND REDRESSAL) ACT, 2013 the rules made thereunder.
The Company has adopted a policy on
K. MANAGEMENT DISCUSSION AND
prevention and redressal of sexual harassment
at the workplace. Pursuant to the provisions ANALYSIS REPORT
of the Sexual Harassment of Women at the In accordance with the requirements of
Workplace (Prevention, Prohibition and the Listing Regulations, the Management
Redressal) Act, 2013, the Company has in Discussion and Analysis Report titled
place an Internal Complaints Committee ‘Management Report’ is presented in a
for prevention and redressal of complaints separate section in the Annual Report.
of sexual harassment of women at the
workplace. No complaints were received by L. ANNUAL RETURNS
the Company during the year under review. In accordance with the Companies Act, 2013,
the annual returns in the prescribed format are
G. AWARDS AND RECOGNITIONS
available under the link https://www.sobha.
During financial year 2022-23, the com/wp-content/uploads/2023/07/2022-
Company was conferred with various 2023-Annual-Return-MGT-7.pdf
awards and recognitions, the details of
which are given in a separate section in the M. PARTICULARS OF LOANS, GUARANTEES
Annual Report. AND INVESTMENTS
H. CORPORATE GOVERNANCE In terms of Section 134 of the Companies Act,

2013, the particulars of loans, guarantees
In accordance with Regulation 34(3) read and investments made by the Company
with Schedule V of the SEBI (Listing under Section 186 of the Companies Act,
Obligations and Disclosure Requirements)
2013 are detailed in Notes to Accounts of the
Regulations, 2015, a separate report on
Financial Statements.
corporate governance forms part of this
report.
N. RELATED PARTY TRANSACTIONS
A certificate from Mr. Nagendra D Rao,
During the year, the Company did not
Practicing Company Secretary affirming
enter into any contract/arrangement/
compliance with the various conditions of
transaction with a related party which can
corporate governance in terms of the Listing
be considered as material in terms of the
Regulations is given in Annexure D to this
report. policy on related party transactions laid
down by the Board of Directors. Related
I. CODE OF CONDUCT party transactions, if any, pursuant to the
Listing Regulations were approved by the
The Company has laid down a Code of
Audit Committee from time to time prior
Conduct for the Directors as well as for
to entering into the transactions. The
all senior management of the Company.
related party transactions undertaken
As prescribed under Regulation 17 of the
during financial year 2022-23 are detailed
Listing Regulations, a declaration signed by
in the Notes to Accounts of the Financial
the Managing Director affirming compliance
Statements.
with the Code of Conduct by the Directors
and senior management personnel of the Further, during the year under review, there
Company for financial year 2022-23 forms were no contracts or arrangements entered
part of the Corporate Governance Report. with related parties referred to the criteria
mentioned in Sub-section (1) of Section 188
J. DISCLOSURE ON CONFIRMATION WITH of the Companies Act, 2013. Therefore, there
SECRETARIAL STANDARDS
is no requirement to report any transaction
The Directors confirm that the Secretarial in Form AOC-2.
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O. CONSERVATION OF ENERGY, TECHNOLOGY Companies Act, 2013, except as disclosed

ABSORPTION AND FOREIGN EXCHANGE elsewhere in this report, no material changes
EARNINGS AND OUTGO and commitments which could effect the
companies financial position have occurred.
In terms of Section 134 of the Companies Act,
2013 read with Rule 8(3) of the Companies S. BUSINESS RESPONSIBILITY AND
(Accounts) Rules, 2014, the details of energy SUSTAINABILITY REPORT
conservation, technology absorption,
foreign exchange earnings and outgoings As required under Regulation 34 of the Listing
are given as Annexure E to this report. Regulations, the Business Responsibility and
Sustainability Report is given in Annexure G
P. REMUNERATION DETAILS OF DIRECTORS, to this report.
KEY MANAGERIAL PERSONNEL AND
EMPLOYEES T. ADDITIONAL INFORMATION TO
SHAREHOLDERS
Details of remunerations of Directors, Key
Managerial Personnel and the statement All important and pertinent investor
of employees in receipt of remuneration information such as financial results, investor
exceeding the limits prescribed under presentations, press releases, new launches
Section 134 of the Companies Act, 2013 read and project updates are made available on
with Rule 5 of the Companies (Appointment the Company’s website (www.sobha.com)
and Remuneration of Managerial Personnel) on a regular basis.
Rules, 2014 is provided in Annexure F to this
report. ACKNOWLEDGEMENTS
The Directors would like to place on record their
Q. FINANCIAL POSITION AND sincere appreciation of the Company’s customers,
PERFORMANCE OF SUBSIDIARIES, JOINT vendors and bankers for their continued support
VENTURES AND ASSOCIATES
to the Company during the year. The Directors
In terms of Section 134 of the Act and Rule also wish to acknowledge the contribution made
8(1) of the Companies (Accounts) Rules, 2014, by employees at all levels for steering the growth
the financial position and performance of of the organization. We thank the Government of
the subsidiaries is given as an annexure to India, the state governments and other government
the Consolidated Financial Statements. agencies for their assistance and cooperation and
look forward to their continued support in the
R. MATERIAL CHANGES AND future. Finally, the Board would like to express its
COMMITMENTS
gratitude to the members for their continued trust,
In terms of Section 134(3) (I) of the cooperation and support.
For and on behalf of the Board of Directors of Sobha Limited
Sd/- Sd/-
Place : Bangalore Ravi PNC Menon Jagadish Nangineni
Date : May 29, 2023 Chairman Managing Director
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ANNEXURE A
To,
The Members,
Sobha Limited,
SOBHA, Sarjapur-Marathahalli Outer Ring Road (ORR),
Bengaluru –560 103.
My report of even date is to be read along with this letter.
MANAGEMENT’S RESPONSIBILITY
It is the responsibility of the management of the Company to maintain secretarial records, devise proper
systems to ensure compliance with the provisions of all applicable laws and regulations and to ensure that
the systems are adequate and operate effectively.
AUDITOR’S RESPONSIBILITY
1. My responsibility is to express an opinion on these secretarial records, standards and procedures

followed by the Company with respect to secretarial compliances.
2. I believe that audit evidence and information obtained from the Company’s management is adequate
and appropriate for me to provide a basis for my opinion.
3. Wherever required, I have obtained the management’s representation about the compliance of laws,
rules and regulations and happening of events etc
Disclaimer
The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the
efficacy or effectiveness with which the management has conducted the affairs of the Company.
Sd/-
Nagendra D. Rao
Practising Company Secretary
Membership No. FCS – 5553
Certificate of Practice – 7731
Peer Reviewed Unit
Place : Bengaluru Peer Review Certificate No.: 672/2020
Date : May 29, 2023 UDIN: F005553E000403225
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FORM NO. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2023
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
Sobha Limited,
SOBHA, Sarjapur-Marathahalli Outer Ring Road (ORR),
Bengaluru – 560 103.
I have conducted the secretarial audit of the compliance of the applicable statutory provisions and the
adherence to good corporate practices by SOBHA LIMITED (hereinafter called “the Company”). Secretarial
Audit was conducted in the manner that provided me a reasonable basis for evaluating the corporate
conducts/statutory compliances and expressing my opinion thereon.
Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other
records maintained by the company and also the information provided by the company, its officers, agents
and authorized representatives during the conduct of the secretarial audit, I hereby report that in my
opinion, the company has, during the audit period covering the financial year ended on 31st March, 2023
complied with the statutory provisions listed hereunder and also that the Company has proper Board-
processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting
made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by
the Company for the financial year ended on 31st March,2023 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made there under;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the
extent of Foreign Direct Investment and Overseas Direct Investment;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of
India Act,1992 (‘SEBI Act’):-
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018 [Not Applicable as the company has not raised any Share Capital by Issue
of Shares during the financial year under review].
(d) Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2021 [Not
Applicable to the Listed Entity during the financial year under review]
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2021
[Not Applicable as the Listed Entity has not raised any funds by issue of listed debentures
during the financial year under review;
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)
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Regulations, 1993 regarding the Companies Act and dealing with clients [Not Applicable as
the Company is not registered as Registrar to Issue and Share Transfer Agent during the
financial year under review];
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 [Not
Applicable as the Company has not delisted/propose to delist its equity shares from any
stock exchange during the financial year under review]; and
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 [Not
Applicable as the Company has not bought back/propose to buyback any of its securities
during the financial year under review];
(vi) The Laws as are applicable specifically to the Company are as under:
a) Real Estate (Regulation & Development) Act, 2016;
b) Transfer of Property Act, 1882;
c) Indian Easements Act, 1882;
d) Registration Act, 1908;
e) The Building and Other Construction Workers (Regulation of Employment and Conditions of
Service) Act, 1996;
f) Indian Stamp Act, 1899 and
g) Karnataka Stamp Act, 1957.
I have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
(ii) The Listing Agreements entered into by the Company with BSE Limited and National Stock Exchange
of India Limited.
(iii) The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. mentioned above.
I further report that:
1. The settlement application filed in respect of the show cause notice dated 24th September, 2021
issued by Securities and Exchange Board of India (SEBI), was accepted by them. SEBI has asked that
the settlement amount be paid by the Other Noticees, excluding the Company, which has been duly
paid by the other noticees on 30th July, 2022. Accordingly, adjudication proceedings initiated against
the Company and other noticees were disposed off.
2. The Company had entered into a joint development arrangement with certain Landowners in Gurugram,
Haryana, in earlier years. In respect of this transaction, the Enforcement Directorate (‘ED’) after due
investigation has filed a complaint with Adjudicating Authority -PML, alleging certain irregularities in the
manner of allotment and pricing of certain plots under this project or payment of applicable fees and
charges by the Company or the landowners, with respect to the terms and conditions mentioned in
the development policy of Haryana Development and Regulation of Urban Areas Act (HDRUAA), 1975
and the bilateral agreement between the land owners and Directorate of Town and Country Planning,
Haryana (DTCP) resulting in provisional attachment of land parcels with value of Rupees 2,016 million
held by Technobuild Developers Private Limited (TDPL) over which the Company has absolute rights
through a Memorandum of Understanding entered with TDPL and its affiliates.
During the year, the Company is in receipt of Show Cause Notice from Adjudicating Authority and the
Company has duly filed detailed responses to allegations made in Show Cause Notice.
The Company, based on its overall assessment and independent legal opinion obtained, believes that
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these transactions have been carried out in accordance with all the applicable laws and regulations
and the said bilateral agreement.
3. In the earlier year, the Company, in process of renewal of Fire Department clearance for one of the
project, was found to be defective. On becoming aware of this fact, the Company immediately took
remedial steps and obtained renewed approvals, which were then re-submitted with the local body
for regularization. However, the local body has cancelled the Occupancy Certificate, against which
the Company has filed an appeal with Karnataka Appellate Tribunal challenging the cancellation of
Occupancy Certificate. The Karnataka Appellate Tribunal has stayed the cancellation order of local
body. The Company is working with the local body for restoration of the Occupancy Certificate and
the Company believes that the said matter has no material impact on the Company.
4. The Company, while modifying a charge, instead of filing modification of Charge, has inadvertently
filed satisfaction of Charge. Upon realizing the error, which was unintentional and inadvertent, the
Company has filed application in the specified form before the Ministry of Corporate Affairs, for
rectification of omission. The matter is in progress and outcome is awaited.
The Board of Directors of the company is duly constituted with proper balance of Executive Directors,
Non-Executive Directors and Independent Directors. The changes in the composition of the Board
of Directors that took place during the period under review were carried out in compliance with the
provisions of the Act.
Except to the extent of 1 (One) Board Meeting held on March 6, 2023 convened by shorter notice,
(which has been attended by all the Directors including Independent Directors) adequate notice has
been given to all directors to schedule the other Board Meetings, agenda and detailed notes on
agenda were sent at least seven days in advance and a system exists for seeking and obtaining
further information and clarifications on the agenda items before the meeting and for meaningful
participation at the meeting.
As per the Minutes of the Board of Directors duly recorded and signed by the Chairman, the decisions
were unanimous and no dissenting views were required to be recorded.
I further report that there are adequate systems and processes in the company commensurate with
the size and operations of the company to monitor and ensure compliance with applicable laws, rules,
regulations and guidelines.
I further report that during the audit period, the company has passed following Special Resolution at the
Annual General Meeting held on August 10, 2022 which is having major bearing on the Company’s Affairs
in pursuance of the above referred Laws, Rules, Regulations, Guidelines, Standards, etc.
1. Issue of Non-Convertible Debentures on private placement basis.
I further report that, as per the information and explanation provided by the company, the company is in
compliance with the requirement of Structured Digital Database under SEBI (Prohibition of Insider Trading)
Regulations, 2015.
Sd/-
Nagendra D. Rao
Peer Reviewed Unit
Date : May 29, 2023 UDIN: F005553E000403225
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ANNEXURE B
NOMINATION AND REMUNERATION POLICY
The Board of Directors of Sobha Limited have • Re-election by members of any

constituted the Nomination, Remuneration and director who are liable to retire by
Governance Committee in accordance with rotation as per the Company’s Articles
the provisions of the Companies Act, 2013 and of Association.
Listing Agreement entered into with the Stock
• Any matters relating to the continuation
Exchanges.
in office of any director at any time.
I. TERMS OF REFERENCE OF THE
COMMITTEE: 7. To formulate a policy relating to the
remuneration of directors, key managerial
1. To identify, review, assess, recommend personnel and other employees.
and lead the process for appointments of
Executive, Non-Executive and Independent 8. To define and articulate the Company’s
Directors to the Board and Committees overall corporate governance structures and
thereof and to regularly review the to develop and recommend to the Board of
structure, size and composition, balance Directors the Board’s Corporate Governance
of skills, knowledge and experience of the Guidelines.
Board and Board Committees and make
recommendations to the Board or, where 9. To receive reports, investigate, discuss
appropriate, the relevant committee with and make recommendations in respect of
regard to any adjustments that are deemed breaches or suspected breaches of the
necessary. Company’s Code of Conduct.
2. To formulate criteria for evaluation of 10. To review and monitor the Company’s
Independent Directors and the Board. policies and practices on compliance with
legal and regulatory requirements and
3. To evaluate the performance of the Chairman
to develop, review and monitor the code
and other members of the Board on an
annual basis and to monitor and evaluate the of conduct applicable to employees and
performance and effectiveness of the Board Directors.
and Board Committees and the contribution 11. To perform such functions as may be detailed
of each director to the Company. The
in the Listing Regulations, Companies Act,
Committee shall also seek the views of
2013 and the relevant Rules made there
executive directors on the performance of
under.
non-executive directors.
4. To devise a policy on Board diversity.

II. DEFINITIONS:
5. To identify persons who are qualified to
become directors and who may be appointed 1. Key Managerial Personnel:
in senior management in accordance with Key Managerial Personnel has the same
the criteria laid down and recommend to the meaning as ascribed to it under the
Board their appointment and removal. Companies Act, 2013 as may be amended
6. To make recommendations to the Board on from time to time.
the following matters: 2. Senior Management:
• Re-appointment of any executive Senior Management has the same meaning

and non-executive director at the as ascribed to it under the Code of Conduct
conclusion of their specified term of the Company as may be amended from
of office. time to time.
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III. POLICY ON APPOINTMENT AND unless such directorship is within the limits
REMOVAL OF DIRECTORS, KEY prescribed by law in this behalf.
MANAGERIAL PERSONNEL AND SENIOR
MANAGEMENT: Limits on Committee Membership: The
number of Chairmanship or membership
A. ELIGIBILITY OR CRITERIA FOR of committees held by a person shall
APPOINTMENT: be within the limits prescribed by law in
Educational Qualification: No person shall this behalf in order to be considered for
be eligible for appointment as a Director, appointment as a Whole-time Director/
Key Managerial Personnel and/or Senior Independent Director of the Company.
Management Personnel unless he/she
possesses at least a bachelors’ degree in a B. TERM OF OFFICE:
recognized and relevant field. Educational
qualification over and above the bachelors’ Whole-time Director:
degree, though not mandatory, shall be i. Th e Wh o l e -ti m e D i re c to r(s) of th e
preferable. However, the requirement of Company shall be appointed for a term not
minimum educational qualification can exceeding five years at a time.
be waived if the candidate showcases
exceptional knowledge, talent, creativity ii. The Whole-time Director(s) shall be eligible
and/or aptitude for the position. for re-appointment for further terms not
exceeding five years at a time subject to
Experience: A person shall be eligible for
the approval of members of the Company.
appointment as a Director, Key Managerial
Personnel and/or Senior Management iii. No such re-appointment shall be made
Personnel if he/she possess adequate earlier than one year before the expiry of
experience in the respective field(s). Between the current term.
two candidates possessing same/similar
educational qualification, the person with Independent Director(s):
more experience will ordinarily be preferred.
Experience in diverse fields will be given due i. An Independent Director shall hold office for
weightage. a term up to five consecutive years on the
Board of Directors of the Company.
Integrity: The person considered for
appointment shall be a person of integrity ii. An Independent Director shall be eligible for
and good standing. No person convicted of re-appointment for another term up to five
any offence involving moral turpitude shall consecutive years on passing of a special
be considered for appointment to post of a resolution in this regard by the members of
Director, Key Managerial Personnel and/or the Company.
Senior Management.
iii. No Independent Director shall hold office
Age: A person shall not be considered for for more than two consecutive terms. An
appointment to the post of a Whole-time Independent Director shall be eligible for re-
Director of the Company if he/she has appointment after the expiry of three years
attained the age of seventy years. of ceasing to be an Independent Director
where he/she has served for two consecutive
Independence: No person shall be terms.
appointed as an Independent Director
of the Company unless he/she meets Key Managerial Personnel and Senior
the criteria of independence as specified Management:
in the Companies Act, 2013 and Listing
Agreement. The term of office of Key Managerial
Personnel and Senior Management of the
Limits on Directorship: No person shall Company shall be in accordance with the
be appointed as a Whole-time Director/ prevailing Human Resource policy of the
Independent Director of the Company Company.
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C. REMOVAL OF DIRECTOR, KEY the Committee, the executive directors and
MANAGERIAL PERSONNEL AND SENIOR non-executive directors.
MANAGEMENT OF THE COMPANY:
The Independent Directors of the Company are
The Committee shall recommend to the experts in their respective fields. They bring
Board of Directors, the removal from office with them specialized skills, vast repertoire of
of any Director, Key Managerial Personnel knowledge and a wide diversity of experience
and/or Senior Management Personnel of the and perspectives. In view of their significant
Company: expertise, the Independent Directors may
i. Whenever a Director, Key Managerial recommend the mechanism for evaluating the
Personnel and/or Senior Management performance of the Board as a whole as well as
Personnel of the Company incurs any individual directors.
disqualification specified under any
In lieu of such recommendation, the criteria for
applicable law which renders their position
Performance Evaluation laid down below may
untenable.
be considered. However, the below mentioned
ii. Whenever a Director, Key Managerial criteria is only suggestive and the Board/
Personnel and/or Senior Management Directors may consider such other criteria as they
Personnel of the Company is found guilty may deem necessary for effective evaluation of
of violating the Code of Conduct, the Code performance.
of Conduct for Prevention of Insider Trading
of the Company and/or such other policy as BOARD OF DIRECTORS:
may be decided by the Committee.
i. Establishment of distinct performance
iii. Whenever a Director, Key Managerial objectives and comparison of performance
Personnel and/or Senior Management against such objectives.
of the Company acts in a manner which
ii. Contribution of the Board to the development
is manifestly against the interests of the
of strategy.
Company. In case of any proceedings under
this sub-clause, the concerned Director, iii. Contribution of the Board in developing
Key Managerial Personnel and/or Senior and ensuring robust and effective risk
Management of the Company shall be management system.
given an opportunity of being heard by the
iv. Response of the Board to problems or crises
Committee.
that have emerged.
IV. PERFORMANCE EVALUATION: v. Suitability of matters being reserved for the
i. The performance evaluation of each director Board under the Listing Agreement.
will be carried out by the Committee in the first
vi. Relationship between the board and its main
instance. It shall place its recommendations
committees and between the committees
before the Board of Directors.
themselves.
ii. The performance evaluation of Independent
Directors shall be done by the entire Board vii. Communication of the Board with the
of Directors (excluding the director being management team, key managerial
evaluated). It shall take into consideration the personnel and other employees.
views of the Committee. viii. Knowledge of latest developments in the
iii. The Independent Directors shall review the regulatory environment and the market.
performance of non-independent directors ix. Appropriateness, quality and timeliness of
and the Board as a whole. The Independent
flow of information to the Board.
Directors shall take into consideration the
views of the Committee. x. Adequacy and quality of feedback by the
Board to management on its requirements.
iv. The Independent Directors shall review
the performance of the Chairperson of the xi. Adequacy of frequency and length of board
company, taking into account the views of and committee meetings.
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xii. Appropriate mix of knowledge and skills development of new business ideas or
in the composition of the board and its verticals.
committees.
iii. Contribution of Whole-time Director towards
the top line and/or bottom line of the
COMMITTEES OF THE BOARD OF DIRECTORS:
Company where such contribution is capable
i. Suitability of matters being reserved for the of measurement.
Committee(s).
iv. Contribution of Whole-time Director in
ii. Communication of the Committee(s) with implementing the strategy set by the Board
the management team, key managerial of Directors of the Company.
personnel and other employees.
v. Knowledge and understanding of current
iii. Appropriateness, quality and timeliness of industry and market conditions.
flow of information to the Committee(s).
vi. Contribution of Whole-time Director in
iv. Adequacy and quality of feedback by identifying, understanding and mitigating the
the Committee(s) to management on its risks faced by the Company.
requirements.
vii. Contribution of Whole-time Director in
v. Adequacy of frequency and length of the identifying and exploiting new business
committee meetings. opportunities for the Company.
vi. Appropriate mix of knowledge and skills in viii. Level of preparedness for the meetings of
the composition of the committees. the Board and Committees.
ix. Attendance at the meetings of the Board

INDEPENDENT DIRECTORS:
and Committees of which such Whole-time
i. Level of preparedness for the meetings of Director is a member.
the Board and Committees.
V. POLICY RELATING TO THE
ii. Willingness to devote time and effort to REMUNERATION OF DIRECTORS, KEY
understand the Company and its business. MANAGERIAL PERSONNEL AND SENIOR
MANAGEMENT:
iii. Quality and value of their contributions at
Board and Committees meetings. A. Remuneration Criteria: The guiding principle
while determining the level and composition
iv. Contribution of their knowledge and
of remuneration is the competitiveness
experience to the development of strategy
required to attract, retain and motivate
of the Company.
competent personnel. While deciding the
v. Effectiveness and pro-activeness in recording remuneration of Directors, Key Managerial
and following up their areas of concern. Personnel and Senior Management,
the following factors shall be taken into
vi. Relationship with fellow board members,
consideration:
key managerial personnel and senior
management. a. availability of talented, skilled and
experienced professionals.
vii. Knowledge and understanding of current
b. industry standards.
industry and market conditions.
c. profitability of the Company and growth
viii. Attendance at the meetings of the Board prospects.
and Committees of which the Independent
B. Payment of Remuneration:
Director is a member.
i. The Committee shall recommend the
WHOLE-TIME DIRECTOR(S): payment of remuneration (including any
revision thereof) to the Directors of the
i. Contribution of the Whole-time Director in
Company including the Independent
achieving the Business Plan of the Company.
Directors which shall be subject to the
ii. Contribution of Whole-time Director in the approval of the Board of Directors. It shall
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also be approved by the shareholders of the and amenities as per the Human Resource
Company, wherever required. policy of the Company in force or as may be
ii. The remuneration of Key Managerial approved by the Board from time to time.
Personnel and Senior Management Personnel
D. Remuneration of Independent Directors:
shall be determined by the Company in
accordance with the prevailing HR Policy of Commission: Each Independent Director
the Company. shall be paid remuneration by way of
Commission as recommended by the
C. Remuneration of Whole-time Directors,
Committee which shall be approved by the
Key Managerial Personnel and Senior
Management: Board of Directors. Such Commission shall
be within the overall limits approved by the
Basic Salary: shareholders of the Company.
Each Whole-time Director, Key Managerial Sitting Fees: The Independent Director
Personnel and Senior Management may receive remuneration by way of fees
personnel shall be paid a monthly for attending the meetings of Board or
remuneration. The monthly remuneration Committee thereof as may be decided by
of Whole-time Director as recommended the Board of Directors from time to time.
by the Committee shall be approved by
the Board of Directors and also by the E. Limits on Remuneration:
shareholders of the Company if required.
i. The overall remuneration paid by the
Accommodation or House Rent Allowance: Company to the Directors including
Independent Directors shall not exceed 11%
Each Whole-time Director shall be provided
of the net profits of the Company for that
with rent-free furnished accommodation
or up to a specified % of the basic salary financial year.
as House Rent Allowance in lieu of ii. The remuneration paid by the Company to all
accommodation. Key Managerial Personnel its whole-time directors shall not exceed 10%
and Senior Management personnel shall of the net profits of the Company for that
be provided with a specified % of the basic
financial year.
salary as House Rent Allowance.
iii. The remuneration paid by the Company to
Performance Incentives: its Independent Directors (excluding sitting
Each Whole-time Director shall be eligible fess) shall not exceed 1% of the net profits of
for performance incentives which shall the Company for that financial year.
not exceed a specified % of profits of the iv. If, in any financial year, the Company has
Company.
no profits or its profits are inadequate, the
Key Managerial Personnel and Senior Company shall pay remuneration to its
Management personnel shall be eligible for Whole-time Directors, Managing Directors,
performance incentives as per the prevailing any non-executive director including
Human Resource policy of the Company in Independent Director in accordance with the
this regard. The incentive is linked to the provisions of Schedule V of the Companies
performance of the Company in general and Act, 2013. If the remuneration payable
their individual performance is measured
exceeds the limits laid down in Schedule V,
against specific Key Result Areas, which are
then Company shall obtain the prior approval
aligned with the Company’s objectives.
of the Shareholders by passing Special
Perquisites and Other Allowances: Resolution.
Each Whole-time Director, Key Managerial v. Revision of existing remuneration may be

Personnel and Senior Management recommended by the Committee to the
personnel shall be entitled to such Board which should be within the limits
perquisites, allowances, benefits, facilities approved by the shareholders.
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ANNEXURE C
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
1. BRIEF OUTLINE OF CSR POLICY.

The Board of Directors upon the recommendation of the Corporate Social Responsibility Committee,
have identified the following areas listed in Schedule VII of the Companies Act, 2013 for carrying
out its CSR activities:
I. Eradicating hunger, poverty and malnutrition, promoting health care including preventive health
care and sanitation including contribution to the Swatch Bharat Kosh set-up by the Central
Government for the promotion of sanitation and making available safe drinking water;
II. Promoting education, including special education and employment enhancing vocation skills
especially among children, women, elderly and the differently abled and livelihood enhancement
projects;
III. Promoting gender equality, empowering women, setting up homes and hostels for women and
orphans; setting up old age homes, day care centres and such other facilities for senior citizens
and measures for reducing inequalities faced by socially and economically backward groups;
IV. Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal
welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and
water including contribution to the Clean Ganga Fund set-up by the Central Government for
rejuvenation of river Ganga;
V. Protection of national heritage, art and culture including restoration of buildings and sites of
historical importance and works of art; setting up public libraries; promotion and development
of traditional art and handicrafts;
VI. Measures for the benefit of armed forces veterans, war widows and their dependents, [Central
Armed Police Forces (CAPF) and Central Para Military Forces (CPMF)veterans and their
dependents including widows];
VII. Training to promote rural sports, nationally recognised sports, paralympic sports and olympic
sports;
VIII. Contribution to the prime minister’s national relief fund or Prime Minister’s Citizen Assistance
and Relief in Emergency Situations Fund (PM CARES Fund) or any other fund set up by the
central govt. for socio economic development and relief and welfare of the schedule caste,
tribes, other backward classes, minorities and women;
IX. Contribution to incubators or research and development projects in the field of science,
technology, engineering and medicine, funded by the Central Government or State Government
or Public Sector Undertaking or any agency of the Central Government or State Government;
X. Contributions to public funded Universities; Indian Institute of Technology (IITs); National
Laboratories and autonomous bodies established under Department of Atomic Energy(DAE);
Department of Biotechnology (DBT); Department of Science and Technology (DST);
Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha
and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other
bodies, namely Defense Research and Development Organisation (DRDO);Indian Council of
Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific
and Industrial Research (CSIR), engaged in conducting research in science, technology,
engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).
XI. Rural development projects.
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XII. Slum area development.
XIII. Disaster management, including relief, rehabilitation and reconstruction activities.
XIV. Such other areas as may be included in Schedule VII of the Companies Act, 2013 from time to
time.
The projects/programmes may be undertaken by an Implementation Agency or the Company directly

provided that such projects/programmes are in line with the activities enumerated in Schedule VII of
the Companies Act, 2013.
2. COMPOSITION OF CSR COMMITTEE FOR THE YEAR ENDED MARCH 31, 2023.
The Corporate Social Responsibility (CSR) Committee comprises of the following members:
Name of Director Designation/Nature of Number of meetings Number of meetings

Directorship of CSR Committee of CSR the committee
held during the year. attended during the year.
Mr. Anup S Shah (Chairman) Non-executive
4 3
Independent Director
Ms. Srivathsala K N (Member) Non-executive
4 4
Mr. Jagadish (Member) Executive –
4 4
Nangineni Managing Director
3. The details of Corporate Social Responsibility Policy, Composition of CSR Committee and CSR Projects
approved by the Board are disclosed on the website of the company.
The web-links are as follows:
• CSR Policy and Projects: https://www.sobha.com/wp-content/uploads/2023/06/CSR-Policy.pdf
• Composition of CSR Committee: https://www.sobha.com/wp-content/uploads/2022/11/
Composition-of-Committees.pdf
4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried
out in pursuance of sub-rule (3) of rule 8, if applicable – Not Applicable, however, Company has
voluntarily conducted Impact Assessment.
5. (a) Average net profit of the Company as per sub-section (5) of section 135: ₹2,666.19 million.
(b) Two percent of average net profit of the Company as per sub-section (5) of section 135:
₹53.32 million.
(c) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years: Nil.
(d) Amount required to be set-off for the financial year, if any: Nil.
(e) Total CSR obligation for the financial year [(b)+(c)-(d)]: ₹53.32 million.
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project):
₹194.68 million.
(b) Amount spent in Administrative Overheads: ₹3.72 million.
(c) Amount spent on Impact Assessment, if applicable: ₹1.10 million.
(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: ₹199.50 million.
INFORMATION FOR OUR

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(e) CSR amount spent or unspent for the Financial Year:
Total Amount Amount Unspent

Spent for the
Total Amount transferred to Amount transferred to any fund specified under
Financial Year
Unspent CSR Account as per Schedule VII as per second proviso to sub-
(₹ in million)
subsection (6) of section 135 section (5) of section 135
Amount Date of transfer Name of the Fund Amount Date of transfer
₹199.50 - - - - -
(f) Excess amount for set-off, if any: Nil.
Sl. No. Particular Amount (₹ in million)

(i) Two percent of average net profit of the Company as per sub-section (5) of section 135 53.32
(ii) Total amount spent for the Financial Year 199.50
(iii) Excess amount spent for the Financial Year [(ii)-(i)] -
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous -
Financial Years, if any
(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)] -
7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:
Preceding Amount Balance Amount Amount Amount Deficiency,

Financial transferred Amount in Spent transferred to a remaining if any
Year(s) to Unspent Unspent in The Fund as specified to be
CSR Account CSR Account Financial under Schedule spent in
under under Year (in Rs) VII as per second succeeding
subsection subsection (6) proviso to Financial
(6) of section of section 135 subsection (5) of Years (in
135 (in Rs.) (in Rs.) section 135, if any Rs)
FY-1 - - - - - -
FY-2 - - - - - -
FY-3 - - - - - -
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility
amount spent in the Financial Year:
Yes ü No
If yes, enter the number of Capital assets created/acquired. 32
Furnish the details relating to such asset(s) so created or acquired through Corporate Social
Responsibility amount spent in the Financial Year:
Short Pincode Date of Amount

particulars of of the creation of CSR
the property property amount Details of entity/Authority/beneficiary of the registered owner
or asset(s) or spent
[including asset(s)
complete
address and CSR
location of the Registration Name Registered address
property] Number
Sri Kurumba Anugraha 30/40,

LED Monitor
678684 12/11/2022 6,608 CSR00003295 Educational And Sreepuram, Punkunnam,
Acer 18.5inch
Charitable Trust Thrissur – 680002, Kerala
Grass cutting
machine
INFORMATION FOR OUR
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Short Pincode Date of Amount Details of entity/Authority/beneficiary of the registered owner
the property property amount
[including asset(s) CSR
complete Registration Name Registered address
address and Number
location of the
property]
Pump Set 678684 10/05/2022 11,400 CSR00003295 Educational And Sreepuram, Punkunnam,
Sound System 678684 18/11/2022 172,500 CSR00003295 Educational And Sreepuram, Punkunnam,
Water Heater 678684 28/04/2022 8,900 CSR00003295 Educational And Sreepuram, Punkunnam,
Office chair 678684 30/04/2022 24,100 CSR00003295 Educational And Sreepuram, Punkunnam,
Interacive Flat
Panel
Printer 678684 01/07/2022 9,800 CSR00003295 Educational And Sreepuram, Punkunnam,
Projector 678684 17/12/2022 88,000 CSR00003295 Educational And Sreepuram, Punkunnam,
CCTV Camera 678683 07/01/2023 97,853 CSR00003295 Educational And Sreepuram, Punkunnam,
LED TV (32”
Impex)
Office chair 678683 05/04/2022 15,500 CSR00003295 Educational And Sreepuram, Punkunnam,
Steel Alamara 678683 10/03/2023 5,750 CSR00003295 Educational And Sreepuram, Punkunnam,
Grass cutting
machine
EPBS System 678683 31/03/2023 320,960 CSR00003295 Educational And Sreepuram, Punkunnam,
Air Conditioner 678683 19/09/2022 49,200 CSR00003295 Educational And Sreepuram, Punkunnam,
CCTV Camera 678683 27/03/2023 83,784 CSR00003295 Educational And Sreepuram, Punkunnam,
Projector 678683 24/01/2023 42,480 CSR00003295 Educational And Sreepuram, Punkunnam,
Security cabin
gate
INFORMATION FOR OUR

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Short Pincode Date of Amount Details of entity/Authority/beneficiary of the registered owner

the property property amount
[including asset(s) CSR
complete Registration Name Registered address
address and Number
location of the
property]
STP Motor 678683 02/12/2022 63,000 CSR00003295 Educational And Sreepuram, Punkunnam,
STP- Sri Kurumba Anugraha 30/40,
Sludge Bag 678683 31/12/2022 226,560 CSR00003295 Educational And Sreepuram, Punkunnam,
FilterSystem Charitable Trust Thrissur – 680002, Kerala
Hardware 678683 13/04/2022 23,558 CSR00003295 Educational And Sreepuram, Punkunnam,
Fire Hydrant
System
Laptop 678683 11/06/2022 72,000 CSR00003295 Educational And Sreepuram, Punkunnam,
Computer 678683 19/07/2022 42,126 CSR00003295 Educational And Sreepuram, Punkunnam,
Monitor 678683 25/08/2022 7,906 CSR00003295 Educational And Sreepuram, Punkunnam,
Mobile Phone 678683 21/02/2023 28,999 CSR00003295 Educational And Sreepuram, Punkunnam,
Office furniture Sri Kurumba Anugraha 30/40,
(Chair-2,Table- 678683 18/03/2023 16,000 CSR00003295 Educational And Sreepuram, Punkunnam,
1,Fol.cot-2) Charitable Trust Thrissur – 680002, Kerala
Printer 678683 10/02/2023 79,800 CSR00003295 Educational And Sreepuram, Punkunnam,
9. Specify the reason(s), if the Company has failed to spend two percent of the average net profit as per
subsection (5) of section 135- NA
For Sobha Limited
Sd/- Sd/-
Place : Bangalore Mr. Anup S Shah Mr. Jagadish Nangineni
Date : May 29, 2023 Chairman of CSR Committee Member, CSR Committee
INFORMATION FOR OUR
SHAREHOLDERS
ANNEXURE D
CORPORATE GOVERNANCE COMPLIANCE CERTIFICATE
To
The Members,
Sobha Limited,
“Sobha”,
Sarjapur-Marathahalli Outer Ring Road,
Devarabisanahalli,
Bellandur Post,
I have examined the compliance of the conditions of Corporate Governance by Sobha Limited (‘the
Company’) for the year ended on March 31, 2023, as stipulated under Regulations 17 to 27, clauses (a)
to (m) and (t) of sub- regulation (2) of Regulation 46 and para C, D and E of Schedule V of the Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI
Listing Regulations”).
The compliance of the conditions of Corporate Governance is the responsibility of the management of
the Company. My examination was limited to the review of procedures and implementation thereof, as
adopted by the Company for ensuring compliance with conditions of Corporate Governance. It is neither
an audit nor an expression of opinion on the financial statements of the Company.
In my opinion and to the best of my information and according to the explanations given to me and the
representations made by the Directors and the Management, I certify that the Company has complied
with the conditions of Corporate Governance as stipulated in the SEBI Listing Regulations for the year
ended on March 31, 2023.
I further state that such compliance is neither an assurance as to the future viability of the Company nor
of the efficiency or effectiveness with which the management has conducted the affairs of the Company.
Sd/-
Nagendra D. Rao
Peer Reviewed Unit
Date : May 29, 2023 UDIN: F005553E000403225
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ANNEXURE E
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO
(Pursuant to section 134 of the Act and Rule 8(3) of the Companies (Accounts) Rules, 2014)
A. CONSERVATION OF ENERGY II. STEPS TAKEN BY THE COMPANY FOR

UTILIZING ALTERNATIVE SOURCES OF
I. STEPS TAKEN OR IMPACT ON ENERGY
CONSERVATION OF ENERGY a. Provision of back-up solar power for
The Company has adopted the following common area lighting in residential
projects.
energy conservation measures:
b. At SOBHA corporate office, 90% of
a. Use of energy efficient lamps, control
the power is supplied by a solar power
gears, ballast VFDs highly efficient plant.
motors and PV cells.
c. Sobha Glazing factory provided with
b. Use of LED Light fixtures in the common 225 KW and Sobha Interior factory
areas of residential projects. provided with 750 KW roof top solar
power plant in view of utilizing alternate
c. Use of external street light fixtures with source of energy.
timers.
d. More than 2.36 million units of solar
d. Use of lighting software in the design power utilized across the SOBHA
stage of our projects. facilities resulted in 2,000 tons of
carbon footprint savings.
e. Use of motion sensors and occupancy
sensors with electronic drivers. e. Use of heat pumps and solar water
heaters instead of geysers to reduce
f. Use of best quality wires, cables, power consumption.
switches and low self-power loss
breakers wherever essential. III. CAPITAL INVESTMENT ON ENERGY
CONSERVATION EQUIPMENT
g. Following standard specifications like
colour codes, independent neutral and The Company continues to make project
earthing for each circuit to curb energy level investments for reduction in
consumption of energy. Capital investment
leakage.
on energy conservation equipment cannot
h. Use of low- loss electronic ballast. be quantified.
i. Selection of high efficiency transformers, B. TECHNOLOGY ABSORPTION

DG sets and other equipment.
I. EFFORTS MADE TOWARDS TECHNOLOGY
j. Introduction of auto-correction power ABSORPTION
factor capacitor panels for common
The Company uses German tools,
area loads. waterproofing techniques and follows
k. The use of separate energy meters European standards in all its construction
activities. Sobha uses both indigenous and
for major common area loads so that
imported technologies for implementation
power consumption can be monitored
at all its projects. The Company has taken
and efforts can be made to minimize the following initiatives in the area of
the same. technology:
l. Use of energy efficient lifts with group 1. Introduction of laser plummets for
control in residential projects. accurate marking.
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2. Introduction of “Scaff board” for safety III. EXPENDITURE INCURRED ON RESEARCH
of workforce who work at heights. AND DEVELOPMENT
The Company had carried out R&D in the
3. Software for BBS to generate fast and
following areas:
accurate bar bending schedules.
1. Basement flooring – Upgradation from
4. “Grab & Trolley” for block shifting. Epoxy to PU flooring.
5. “Debris Crusher” for crushing & recycling 2. Basement expansion joint.

the debris generated at the site. 3. Refabrication of aluminium formwork
materials.
6. Instead of cast – in-situ coping for
the terrace parapet and compound 4. Alternate Vendors for the materials.
walls, precast methodology has been 5. Alternate system for the False ceiling in
introduced and implemented. toilets.
7. Adoption of power feeders for spindle 6. Chamber covers for external area.
machine instead of manual feeding. 7. Benefits derived as a result of the above
R&D.
8. To optimize the manpower cost and
for better productivity, we were Benefits derived as a result of the above R&D
experimented with some special simple
The benefits derived from the above ensure
tools such as wire stripper, portable that the final product delivered by the Company
drilling machine, which resulted in conforms to international standards.
excellent results.
Future plan of action
9. Introduction of EV Charging points at
The success of R&D initiatives in the construction
some of the projects.
industry primarily depends on the selection
The Company derives benefits in the form of of the right method of construction, type of
cost reduction, fewer customer complaints machines and kind of materials. It also depends
on integrating the planning and training process
and better quality of the end products. The
within the Company and it has to be understood
above initiations and implementations have as an ongoing process.
been made after continuous market research
- trial and testing for quality, durability and Expenditure on R&D
compatibility in consideration of cost and The R&D activity of the Company forms part of
time for developing new systems and project implementation and cannot be quantified.
better technologies at par with international
standards.
C. FOREIGN EXCHANGE EARNINGS
AND OUTGO
II. IMPORTED TECHNOLOGY Total expenditure in foreign exchange:
No technology was imported by the Company ₹59.17 million.
during the last three financial years. Total income in foreign exchange: ₹0.12 million.
Sd/- Sd/-
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ANNEXURE F
REMUNERATION DETAILS OF DIRECTORS AND EMPLOYEES
(Pursuant to section 134 of the Act and Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014)
i. Ratio of remuneration of each director to the median remuneration of the employees and percentage
increase in remuneration:
Ratio of Comparison of KMP

% Increase in
Sl. Remuneration remuneration against
Name of Director/KMP Designation Remuneration
No. to Median the Company’s
Y-O-Y
Remuneration performance
The revenues increased
by 30%, the Profit
before Tax and
Profit after Tax have
1 Mr. Ravi PNC Menon* Chairman 217.34 2.74 decreased by 43.03%
and 43.67% respectively
on a standalone basis.
On a consolidated basis,
the revenues were
increased by 28.62%,
the Profit before Tax
decreased by 38.73%
2 Mr. Jagadish Nangineni Managing Director 74.47 NA
and Profit after Tax by
39.83% as compared to
the previous financial
year 2021-22.
Independent
3 Mr. R V S Rao 4.90 12.37
Director
Independent
4 Mr. Anup Shah 4.81 13.83
Director
Independent
5 Ms. Srivathsala KN 5.03 16.67
Director
Independent Not applicable.
6 Mr. Raman Mangalorkar 4.86 NA
Director
Chief Financial
7 Mr. Yogesh Bansal 15.16 20.44
Officer
Company
8 Mr. Vighneshwar G Bhat Secretary & 11.64 10.47
Compliance Officer
* Mr. Ravi PNC Menon resigned from the position of Whole-time Director and Key Managerial Personnel of the Company with
effect from close of 31st March, 2023 and re-designated as a Non-executive Director and Chairman w.e.f. 01st April, 2023.
ii. The median remuneration of employees during the financial year was ₹444,566/- (Rupees Four
Lakhs Forty-Four Thousand Five Hundred Sixty-Six only)
iii. The percentage increase in the median remuneration of employees in the financial year
2022-23 was 6.17%.
iv. The number of permanent employees on the rolls of the Company as on March 31, 2023 was
3,406 plus 16 consultants.
v. The average increase in median remuneration during the financial year 2022-23 was 6.17%.
During the same period, the revenues has increased by 30%, the Profit before Tax and Profit
after Tax have decreased by 43.03% and 43.67% respectively on a standalone basis. On a
consolidated basis, the revenues were higher by 28.62%, the Profit before Tax by 38.73% and
Profit after Tax by 39.83% respectively as compared to the previous financial year 2021-22.
vi. Average percentile increase in the salaries of employees other than the managerial personnel
INFORMATION FOR OUR
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during 2022-23 was 9.39%. The percentile increase in managerial remuneration during the same
period was 6.17%. The percentile increase in managerial remuneration was on account of the
fixed and variable component of remuneration payable to the managerial personnel as per the
terms and conditions of their appointment.
vii. The key parameters for any variable component of remuneration availed by the directors: The
Whole-time Directors are entitled to receive a fixed salary comprising of basic salary, allowances
and perquisites. They are also eligible for performance incentives up to a specified percentage
or amount as the case may be. The break-up of the remuneration is provided in the Corporate
Governance Report forming part of the Annual Report.
viii. There was no employee whose remuneration was in excess of the remuneration of the highest
paid director during the financial year.
ix. The remuneration is as per the Nomination and Remuneration Policy formulated by the
Nomination, Remuneration and Governance Committee and approved by the Board of Directors
of the Company.
Statement pursuant to Section 134 of the Companies Act, 2013 and Rule 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
Nature of Date of
Gross Expe- Previous
Sl. Employment Qualifica- commence-
Name Age Designation Remunera- rience Employment
No (Contractual tion ment of Em-
tion (Years) held
or otherwise) ployment
(A) Employed throughout the financial year
Mr. Ravi PNC Permanent Not

1 42 Chairman 96,623,939 B.S.C.E 19 08.06.2004
Menon Employee Applicable
Greenbox
B Tech Realty &
Mr. Jagadish Managing Permanent
2 44 33,106,963 Civil, 21 12.11.2009 Highstreet
Nangineni Director Employee
PGDM Capital,
Bangalore
Mr. Sumeet
Executive Vice Permanent B. Com, Atlas
3 Suresh 42 19,158,043 17 26.11.2019
President Employee PGDM Machinery
Chunkhare
Mr. Gaurav Chief Sales Permanent B.Sc, Square

4 50 27,913,479 26 05.01.2017
Bhatia Officer Employee MMM Yards
Permanent B.Sc,
5 Mr. Sanjith P 40 Vice President 13,007,170 18 22.08.2005 -
Employee MBA
Mr. Vitas
Senior General Permanent BSc.,
6 Vazhappilly 41 11,920,817 17 21.02.2011 HDFC Bank
Manager Employee MBA
Lazar
Edelweiss
Mr. Amrit Permanent BA,
7 41 Vice President 14,321,216 22 09.08.2021 Real Estate
Mishra Employee PGDM
Advisory
(B) Employed for part of the financial year None
(C) Employed for whole or part of the financial year None
Notes:
1. Gross Remuneration comprises salary, allowances, Company’s contribution to provident fund and
taxable value of perquisites.
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2. An employee would be qualified to be included in Category (A), (B) or (C) on the following basis:
For (A) if the aggregate remuneration drawn by him during the year was not less than ₹10,200,000 per
annum.
For (B) if the aggregate remuneration drawn by him during the part of the year was not less than
₹850,000 per month.
For (C), if the aggregate remuneration drawn by him during the year or part of the year was in excess
of the remuneration drawn by the Managing Director or Whole-time Director and holds by himself or
along with his spouse and dependent children, not less than 2% of the equity shares of the Company.
3. None of the employees mentioned above are relatives of any Director of the Company.
4. All the employees referred above are/were in full-time employment of the Company and there is
no other employee who is in receipt of remuneration in terms of the provisions of Section 134 of
the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014.
Sd/- Sd/-
INFORMATION FOR OUR
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ANNEXURE G
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
I Detail of the Listed Entity
1. Corporate Identity Number : L45201KA1995PLC018475

2. Name of the Company : Sobha Limited
3. Year of incorporation : 07/08/1995
4. Registered office Address : Sobha, Sarjapur – Marathahalli Outer Ring Road (ORR),
Devarabisanahalli, Bellandur Post, Bangalore – 560 103.
5. Corporate office Address : Sobha, Sarjapur – Marathahalli Outer Ring Road (ORR),
Devarabisanahalli, Bellandur Post, Bangalore – 560 103.
6. Email ID : investors@sobha.com
7. Telephone : +91 80 49320000, +91 80 49320444
8. Website : www.sobha.com
9. Financial Year Reported : 2022-23
10. Name of the Stock Exchange(s) : National Stock Exchange of India Limited and BSE Limited
where shares are listed
11. Paid Up Capital : ₹948,458,530
12. Name and contact details (telephone, : Vighneshwar G Bhat
email address) of the person who may Contact No. +91 80 49320000
be contacted in case of any queries on E-mail ID - investors@sobha.com
the BRSR report
13. Reporting boundary : Disclosure under this report is made on a Standalone basis
II Product/services
14. Details of business activities (accounting for 90% of the turnover):
Description of % of turnover
S.No Description of business activity
Main Activity of the entity
1. Construction of Residential projects 70.65
2. Construction Construction of Commercial projects 0.96
3. Execution of Contractual projects (custom–designed turnkey projects) 13.82
Building completion and finishing services - Manufacturing activities related to:
4. Manufacturing (i) Interiors, (ii) Glazing and Metal Works and (iii) Concrete products and Mattress 12.44
division
15. Details of product/services sold by the Company (accounting for 90% of the turnover):
Description of % of turnover
S.No Description of business activity
Main Activity of the entity
1. Construction of Residential projects 70.65
2. Construction Construction of Commercial projects 0.96

3. Execution of Contractual projects (custom–designed turnkey projects) 13.82
Building completion and finishing services - Manufacturing activities related to:
4. Manufacturing (i) Interiors, (ii) Glazing and Metal Works and (iii) Concrete products and Mattress 12.44
division
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III Operations
16. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of Projects/plants Number of offices Total
Regional Offices: 12
(The Company’s headquarter is in Bangalore and its
National Projects: 50 regional offices are at Gurgaon, Chennai, Coimbatore, 62
Thrissur, Pune, Cochin, Trivandrum, Hosur, Calicut,
Hyderabad and GIFT City (Gujarat))
Factories: Interior 2
Glazing and Metals Works: 3
Nil 8
Concrete Products Division: 2
Mattress Division: 1
International Nil 2 2
17. Markets served by the Company

a. Number of Locations:
Locations Number
14 (Karnataka, Maharashtra, Kerala, Tamil Nadu, Gujarat, Haryana, Telangana,

National (No. of States) Himachal Pradesh, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh, Uttarakhand,
West Bengal)
International (No. of Countries) Nil
b. What is contribution of exports as a percentage of the total turnover of the entity ?

Nil
c. A brief on type of customers

Included among our diverse range of clientele are residential and retail customers, as well as institutional
and commercial customers.
IV Employees
18. Details as at the end of the financial year
a. Employees and Workers (including differently-abled):
Male Female
S.No. Particulars Total (A)
No. (B) % (B/A) No. (C) % (C/A)
Employees
1. Permanent (D) 3,406 2,984 88 422 12
2. Other than Permanent (E) 16 16 100 - -
3. Total employees (D + E) 3,422 3,000 88 422 12
Workers
4. Permanent (F) - - - - -
5. Other than Permanent (G) 22,853 22,345 98 508 2
6. Total workers (F + G) 22,853 22,345 98 508 2

INFORMATION FOR OUR
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b. Differently-abled Employees and Workers:
Male Female
S.No. Particulars Total (A)
No. (B) % (B/A) No. (C) % (C/A)
Differently abled employees
1. Permanent (D) 05 02 40 03 60
2. Other than Permanent (E) - - - - -
3. Total differently abled employees (D + E) 05 02 40 03 60
Differently abled workers
4. Permanent (F) NIL NIL NIL NIL NIL
5. Other than permanent (G) NIL NIL NIL NIL NIL
6. Total: differently abled workers (F + G) NIL NIL NIL NIL NIL
19. Participation/Inclusion/Representation of women:
Category Total No. and percentage of females

(A) No. (B) % (B/A)
Board of Directors 6 1 16.67
Key Managerial Personnel* 4 - -
Note: Key Managerial Personnel includes Managing Director and Chairman, which form part of Board of Directors.
20. Turnover rate for permanent employees and workers (Disclose trends for the past 3 years):
FY 2020-2021 (Turnover
FY 2022-2023 (Turnover FY 2021-2022 (Turnover rate
rate in the year prior to the
rate in current FY) in previous FY)
previous FY)
Male Female Total Male Female Total Male Female Total
Permanent Employees 36% 42% 38% 39% 49% 41% 29% 37% 30%
Permanent Workers NA NA NA NA NA NA NA NA NA
V. Holding, Subsidiary and Associate Companies (including joint ventures)
21. Names of holding subsidiary/associate companies/joint ventures:
% of Does the entity indicated

Indicate whether
shares at column A, participate in
Name of the holding/subsidiary/associate holding/Subsidiary/
S.No. held by the Business Responsibility
companies/joint ventures (A) Associate/Joint
listed initiatives of the listed
Venture
entity entity? (Yes/No)
1. Sobha Developers (Pune) Limited Subsidiary 100% Yes

2. Sobha Highrise Ventures Private Limited Subsidiary 100% Yes
3. Sobha Assets Private Limited Subsidiary 100% No
4. Sobha Tambaram Developers Limited Subsidiary 100% No
5. Sobha Nandambakkam Developers Limited Subsidiary 100% No
6. Sobha Construction Products Private Limited Subsidiary 100% No
7. Sobha Contracting Private Limited* Stepdown Subsidiary 100% No
8. Kilai Builders Private Limited** Stepdown Subsidiary 100% No
9. Sobha Interiors Private Limited** Stepdown Subsidiary 100% No
10. Kuthavakkam Builders Private Limited** Stepdown Subsidiary 100% No
11. Kuthavakkam Realtors Private Limited** Stepdown Subsidiary 100% No
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Partnership Firm
12. Sobha City wherein Sobha has 100% 100% No
economic interest
13. Valasai Vettikadu Realtors Private Limited*** Stepdown Subsidiary 100% No
14. Vayaloor Properties Private Limited*** Stepdown Subsidiary 100% No
15. Vayaloor Realtors Private Limited*** Stepdown Subsidiary 100% No
16. Vayaloor Real Estate Private Limited*** Stepdown Subsidiary 100% No
17. Vayaloor Developers Private Limited*** Stepdown Subsidiary 100% No
18. Vayaloor Builders Private Limited*** Stepdown Subsidiary 100% No
19. CVS Tech Park Private Limited Associate 49% No
* Sobha Contracting Private Limited is a wholly owned subsidiary of Sobha Highrise Ventures Private Limited. Hence a stepdown
subsidiary of Sobha Limited.
** Kilai Builders Private Limited, Sobha Interiors Private Limited, Kuthavakkam Builders Private Limited and Kuthavakkam Realtors
Private Limited are wholly owned subsidiary of Sobha Developers (Pune) Limited. Hence, a stepdown subsidiary of Sobha Limited.
*** Sobha City Firm Holding 100% equity shares of the Valasai Vettikadu Realtors Private Limited, Vayaloor Properties Private
Limited, Vayaloor Realtors Private Limited, Vayaloor Real Estate Private Limited, Vayaloor Developers Private Limited and
Vayaloor Builders Private Limited.
22 . CSR Details
(i) Whether CSR is applicable as per Section 135 of Companies Act, 2013: Yes
(ii) Turnover (in ₹): 34,258.65 million
(iii) Net worth (in ₹): 23,410.68 million
23. Transparency and Disclosure Compliances
Complaints/Grievances on any of the principles (Principles 1 to 9) under National Guidelines on

Responsible Business Conduct:
FY 2023 FY 2022
Grievance Redressal Current Financial Year Previous Financial Year
Stakeholder
Mechanism in Place
Group
(Yes/No) (If yes, then Complaints Complaints
from whom Number of Number of
provide web-link for pending pending
complaint is Complaints Complaints
grievance redress resolution at Remarks resolution at Remarks
received filed during filed during
policy) close of the close of the
the year the year
year year
Communities NA Nil Nil Nil Nil Nil Nil
Investors Yes. There is a

(other than dedicated email
shareholders) address for submitting Nil Nil Nil Nil Nil Nil
the grievance by the
Investors
Shareholders Yes. There is a

dedicated email
address for submitting
the grievance by
the shareholders
in addition to stock
exchanges and SEBI.
21 Nil - 27 Nil -
The contact details of
the relevant officers
are also published
in the annual report
and on website of the
Company.
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Employees and Yes. Grievance
workers redressal mechanisms
are available in intranet Nil Nil Nil Nil Nil Nil
as per the Company’s
HR policy.
Customers Yes. Grievance

redressal mechanisms 5,340 34 Nil 6,607 Nil Nil
are available
Value Chain
Nil NA NA NA NA NA NA
Partners
Other (please
- - - - - - -
specify)
24. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental
and social matters that present a risk or an opportunity to your business, rationale for identifying the same,
approach to adapt or mitigate the risk along-with its financial implications, as per the following format
Indicate Financial implications of

Material
whether risk Rationale for identifying In case of risk, approach the risk or opportunity
S.No issue
or opportunity the risk /opportunity to adapt or mitigate (Indicate positive or
identified
(R/O) negative implications)
1. Customer Opportunity - - Positive
2. Employee Opportunity - - Positive
3. Labour/ Risk • Business continuity • Skill-based training at

Contractors risk SOBHA Academy
• Work stoppage • Community
caused by Labour/ Development Negative
Contractors program
dissatisfaction leading
to revenue loss • Health and safety
training programs
4. Community Opportunity - - Positive
5. Health & Risk • Risk to Brand Image • ISO/IMS certified for

Safety quality management
• Regulatory - Legal (ISO 9001)
action for non-
compliance with • Environmental
mandatory statutory management
requirement (ISO14001)
• Occupational Negative
health and safety
management
(ISO45001)
• Safety, Health and
well-being programs
for all workforce
6. Water Opportunity - - Positive
7. Waste Opportunity - - Positive
8. Energy Opportunity - - Positive

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9. Supply Risk • Disruption - Work • Code of Conduct

Chain stoppage due to for suppliers and
non-compliant contractors
operations or
misconduct • Training workshops
• Regulatory - • Raising awareness

on ESG & related Negative
Legal action for
non-compliance with implications
mandatory statutory
requirement
• Delay in project
execution
10. Innovation Opportunity - - Positive
SECTION B: MANAGEMENT AND PROCESS DISCLOSURE
This section is aimed at helping businesses demonstrate the structures, policies and processes put in place
towards adopting the NGRBC Principles and Core Elements.
P1 Businesses should conduct and govern themselves with integrity and in a manner that is Ethical,
Transparent and Accountable.
P2 Businesses should provide goods and services in a manner that is sustainable and safe.
P3 Businesses should respect and promote the well-being of all employees, including those in their
value chains.
P4 Businesses should respect the interests of and be responsive to all its stakeholders.
P5 Businesses should respect and promote human rights.
P6 Businesses should respect and make efforts to protect and restore the environment.
P7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner
that is responsible and transparent.
P8 Businesses should promote inclusive growth and equitable development.
P9 Businesses should engage with and provide value to their consumers in a responsible manner.
P P P P P P P P P
S.No Disclosure Questions
1 2 3 4 5 6 7 8 9
Policy and management processes
1. a Whether your entity’s policy/policies cover

each principle and its core elements of the Yes Yes Yes Yes Yes Yes Yes Yes Yes
NGRBCs. (Yes/No)
b. Has the policy been approved by the Wherever necessary, the policies were placed before the Board and
Board? (Yes/No) requisite approvals were obtained.
Internal policies are available for employees only. For other policies
c. Web Link of the Policies, if available please refer to the link:
https://www.sobha.com/investor-relations-downloads.php
2. Whether the entity has translated the policy Yes

into procedures. (Yes/No)
3. Do the enlisted policies extend to your value External stakeholders are communicated to the extent applicable to
chain partners? (Yes/No) the stakeholders. The policies are also uploaded on the website of
the Company for easy access.
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4. Name of the national and international codes/ Sobha is a certified company for quality management (ISO 9001),
certifications/labels/standards (e.g. Forest environmental management (ISO14001) and occupational health and
Stewardship Council, Fairtrade, Rainforest safety management (ISO45001). It has obtained ISO/IMS certification
Alliance, Trustea) standards (e.g. SA 8000, for its quality, environmental and safety management systems.
OHSAS, ISO, BIS) adopted by your entity and
mapped to each principle.
5. Specific commitments, goals and targets set We are in the process of re-evaluating our existing sustainability
by the entity with defined timelines, if any. standards and setting the goals and targets in line with the NGRBC/
GRI framework.
6. Performance of the entity against the specific We are in the process of re-evaluating our existing sustainability
commitments, goals and targets along-with standards and setting the goals and targets in line with the NGRBC/
reasons in case the same are not met. GRI framework.
Governance, leadership and oversight
7. Statement by director responsible for the SOBHA is committed to make the business sustainable and socially
business responsibility report, highlighting ESG responsible. We prioritize the conservation of natural resources and
related challenges, targets and achievements improving operational efficiencies to minimize our environmental
(listed entity has flexibility regarding the footprint. We aim to build resilience in our business and among our
placement of this disclosure). stakeholders and we monitor our activities and their environmental
and social impacts to ensure that we create value for all stakeholders.
8. Details of the highest authority responsible for Board of Directors supported by the Managing Director who briefs
implementation and oversight of the Business the Board on subject matter periodically.
Responsibility policy(ies).
9. Does the entity have a specified Committee No. However, the respective areas of the ESG matters are
of the Board/Director responsible for decision monitored by the identified individual namely the Departmental
making on sustainability related issues? (Yes/ Heads of the respective departments.
No). If yes, provide details.
10 Details of Review of NGRBCs by the Company:
Subject for Review Indicate whether review was Frequency (Annually/Half

undertaken by Director/ yearly/Quarterly/Any other –
Committee of the Board/Any please specify)
other Committee
P P P P P P P P P P P P P P P P P P
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
Performance against above policies and Managing Director Quarterly and Annually
follow up action
Board/Board Committee
Board Notes Quarterly and Annually
Compliance with statutory requirements of Managing Director Quarterly and Annually

relevance to the principles and rectification of
Board/Board Committee
any non-compliances
Board Notes Quarterly and Annually
11. Has the entity carried out independent P1 P2 P3 P4 P5 P6 P7 P8 P9

assessment/evaluation of the working of its
policies by an external agency? (Yes/No). If The Company is ISO/IMS certified for quality management (ISO
yes, provide name of the agency. 9001) by NVT Quality Certification International, environmental
management (ISO14001) by Bureau Veritas, occupational health and
safety management (ISO45001) by Bureau Veritas.
Additionaly, the Kerala Statistical Institute, the Government agency

of Kerala had conducted impact assessment of Company’s CSR
activities.
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12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
Questions P1 P2 P3 P4 P5 P6 P7 P 8 P 9
The entity does not consider the Principles material
to its business (Yes/No)
The entity is not at a stage where it is in a position
to formulate and implement the policies on specified
principles (Yes/No)
NA
The entity does not have the financial or/human and
technical resources available for the task (Yes/No)
It is planned to be done in the next financial year
(Yes/No)
Any other reason (please specify)
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and
Core Elements with key processes and decisions. The information sought is categorized as “Essential” and
“Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated
to file this report, the leadership indicators may be - voluntarily disclosed by entities which aspire to
progress to a higher level in their quest to be socially, environmentally and ethically responsible.
PRINCIPLE 1: Businesses should conduct and govern themselves with integrity and in a manner that
is Ethical, Transparent and Accountable.
Essential Indicators:
1. Percentage coverage by training and awareness programmes on any of the Principles during the
financial year:
%age of person
Total number
in respective
of training and Topics/principles covered under the training and its
Segment category covered
awareness impact
by the awareness
programmes held
programmes
Directors of the Company, at the time of their appointment,

are familiarized on the Company’s Core Values, Code
of Conduct, including the purpose and the business it
operates and social responsibilities. At each meeting of
the Board/Audit Committee, members also deliberate on
key regulatory matters that helps to reflect and focus on
Board of key strategies. As a part of Board, Audit and CSR agenda,
5 100
Directors members also discuss various sustainable and Governance
initiatives of the Company, including regulatory and
economic trends. Key Regulatory changes, amendments
etc. are circulated regularly.
Business, strategy, risk assessment, mitigation etc., are
also covered on periodical basis.
Topics pertaining to Key Regulatory issues, recent
regulatory updates and amendments etc. are circulated
Key Managerial
5 regularly. the Code of Conduct is also familiarized, which 100
Personnel
helps the KMP’s to drive the Company’s values and purpose
in all key business activities.
Employees other
than BOD and 12 As provided in P3 100
KMPs
Workers 12 As provided in P3 100
2. Details of fines/penalties/punishment/award/compounding fees/settlement amount paid in

proceedings (by the entity or by directors/KMPs) with regulators/law enforcement agencies/judicial
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institutions, in the financial year, in the following format.
(Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI
(Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):
Monetary
NGRBG Name of regulatory/ Amount Brief of the Case Has an appeal
Principle enforcement agencies/ (In ₹) been preferred?
judicial institution (Yes/No)
Penalty/fine - Nil - - -
SEBI had initiated inquiry on
certain transactions entered by the
Company in the previous years (Few
of them were prior to the Public
Issue in 2006. SEBI, While issuing the
show-cause Notice to the Company
and four of it’s Key Managerial
Personnel in the year 2017, (including
the then three Executive directors)
Securities and Exchange gave an option of settlement of the
Settlement - 29,250,000 No
Board of India (SEBI) case without admitting or denying
the guilt. Accordingly the Company
and other Noticees have opted for
the settlement of the case. SEBI
ordered that except the Company,
any of the other Noticee(s) jointly and
severally pay the settlement amount
from their personal account. One of
the Noticee paid the said settlement
amount from the personal account.
Compounding
- - - - -
fee
Non-Monetary
NGRBG Name of regulatory/ Amount Brief of the Case Has an appeal
Principle enforcement agencies/ (In ₹) been pre-
judicial institution ferred? (Yes/
No)
Imprisonment - NA Nil NA NA
Punishment - NA Nil NA NA
3. Of the instances disclosed in Question 2 above, details of the Appeal/Revision preferred in cases
where monetary or non-monetary action has been appealed.
Case Details Name of the regulatory/enforcement agencies/judicial institutions

Nil NA
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if
available, provide a web-link to the policy.
The Company does not encourage corruption and/or unethical practices. The Company has a Code
of Conduct that provides guidance on ethics, bribery and corruption related matters. The code is
applicable to all internal and external stakeholders. The code may be accessed on the Company’s
website at: https://www.sobha.com/wp-content/uploads/2023/02/SOBHA-CODE-OF-CONDUCT.pdf
5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any

law enforcement agency for the charges of bribery/corruption:
FY 2022-23 (Current Financial Year) FY 2021-22 (Previous Financial Year)

Directors Nil Nil
KMPs Nil Nil
Employees Nil Nil
Workers Nil Nil
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6. Details of complaints with regard to conflict of interest
FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Number Remarks Number Remarks
Number of complaints received in relation to
NIL
issues of Conflict of Interest of the Directors
Number of complaints received in relation to
NIL
issues of Conflict of Interest of the KMPs
7. Provide details of any corrective action taken or underway on issues related to fines/penalties/action
taken by regulators/law enforcement agencies/judicial institutions on cases of corruption and conflicts
of interest.
Not applicable.
Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the
financial year:
Total number of awareness Topic/principles covered %age of value chain partners covered (by value of
programmes held under the training business done with such partners) under the awareness
programmes
In the Company’s Supplier code of Conduct and general terms and conditions, the Company has emphasized
on all integrity aspects which are applicable to all suppliers.
2. Does the entity have processes in place to avoid/manage conflict of interests involving members of
the Board? (Yes/No) If Yes, provide details of the same.
Yes. The Directors while joining the Boards of other companies and during the acquisition or disposal
of the shares/interest held in other companies disclose to the Board of directors on their interest
to avoid the conflict. They do not participate in the discussion or voting on the matter which they
have interest. Any conflict of interest arising with the Board Members needs to be reported to the
Chairman of the Audit Committee/Chairman of the Board. The directors are also bound by the Code
of Conduct for directors. The code may be accessed on the Company’s website at: https://www.
sobha.com/wp-content/uploads/2023/02/SOBHA-CODE-OF-CONDUCT.pdf
PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe.
Essential Indicators
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve
the environmental and social impacts of product and processes to total R&D and capex investments
made by the entity, respectively.
Current Financial Previous Financial Details of improvements in environment and social impact
Year (in ₹) Year (in ₹)
R&D - - 1. Wastage Reduction at all stages of the Process

2. Development of Environment friendly Products
3. Recycling of Foam and Re Bonded Foam Scrap contributing to
the Circular Economy
4. Reduction in Usage of Polythene for Packing
5. Usage of eco-friendly Packaging
6. Reduction in usage of A4 stationery
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Capex .02% .01% 1. Air curtain is provided to avoid escaping of foul smell from STP &
OWC. Also, it avoids the insects or pests from entering the plant.
2. Acoustic Hood for Blowers are provided to reduce the noise level
generated within the STP.
3. Diffusers - EDI make membranes have more oxygen transfer
efficiency. Hence the power consumption is less.
4. Ultrafiltration is provided for the removal of organic molecules
and viruses as well as a range of salts.
5. It removes 90% of pathogens and does not require chemicals
except for cleaning membranes.
Note: Most of the expenditure incurred in R & D and Capital budget are the project costs and are ongoing.
Hence, not separable and not provided separately.
2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No) No
b. If yes, what percentage of inputs were sourced sustainably? NA
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing
at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other
waste.
Biodegradable waste in occupied projects are treated in an organic waste converter and the resulting
compost is used as manure in the landscaped areas of the projects. All other wastes are handed over
to authorized vendors.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes/No). If
yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan
submitted to Pollution Control Boards? If not, provide steps taken to address the same.
Not Applicable
1. Has the entity conducted Life Cycle Perspective/Assessments (LCA) for any of its products (for
manufacturing industry) or for its services (for service industry)? If yes, provide details in the following
format?
NIC Code Name of % of total Boundary for which the Whether conducted Results communicated
Product/ Turnover Life Cycle Perspective/ by independent in public domain (Yes/
Service contributed Assessment was external agency No). If yes, Provide the
conducted (Yes/No) web-link.
2. If there are any significant social or environmental concerns and/or risks arising from production or
disposal of your products/services, as identified in the Life Cycle Perspective/Assessments (LCA) or
through any other means, briefly describe the same along with action taken to mitigate the same:
Name of Product/Service Description of the risk/concern Action Taken
3. Percentage of recycled or reused input material to total material (by value) used in production (for
manufacturing industry) or providing services (for service industry).
Indicate input material Recycled or re-used input material to total material

FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
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4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused,
recycled and safely disposed, as per the following format:
FY 2022-23 Current Financial Year FY 2021-22 Previous Financial Year
Re-Used Recycled Safely Disposed Re-Used Recycled Safely Disposed
Plastics (including
- - - - - -
packaging)
E-waste - - - - - -
Hazardous waste - - - - - -
Other waste - - - - - -
5. Reclaimed products and their packaging materials (as percentage of products sold) for each product
category.
Indicate product category Reclaimed products and their packaging materials as % of total products sold in
respective category
PRINCIPLE 3 Businesses should respect and promote the well-being of all employees, including those
in their value chains.
1. a. Details of measures for the well-being of employees:
% of workers covered by
Total Accident Maternity Paternity Day Care
Health insurance
Category (A) insurance benefits Benefits facilities
Number Number % Number Number Number
% (B/A) % (D/A) % (E/A) % (F/A)
(B) (C) (C/A) (D) (E (F)
Permanent workers
Male 2,984 2,984 100 2,984 100 - - 2,984 100 - -
Female 422 422 100 422 100 422 100 - - 326 77
Total 3,406 3,406 100 3,406 100 422 100 2,984 100 326 77
Other than Permanent workers
Male 16 16 100 16 100 - - - - - -

Female - - - - - - - - - - -
Total 16 16 100 16 100 - - - - - -
b. Details of measures for the well-being of workers:
% of workers covered by
Total Health insurance Accident Maternity Paternity Day Care
Category (A insurance benefits Benefits facilities
Number % (B/A) Number % Number % Number % (E/A) Number %
(B) (C) (C/A) (D) (D/A) (E (F) (F/A)
Permanent workers
Male NA NA NA NA NA NA NA NA NA NA NA
Female NA NA NA NA NA NA NA NA NA NA NA
Total NA NA NA NA NA NA NA NA NA NA NA
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Other than Permanent workers
Male 22,345 351 1.57 22,345 100 - - - - - -
Female 508 35 6.88 508 100 - - - - - -
Total 22,853 386 1.69 22,853 100 - - - - - -
2. Details of retirement benefits, for Current Financial Year and Previous Financial Year:
Benefits FY 2022-23 (Current Financial Year) FY 2021-22 (Previous Financial Year)
No. of No. of No. of

Deducted and No. of workers Deducted and
employees employees employees
deposited with covered as deposited with
covered as covered as covered as
the authority a % of total the authority
a % of total a % of total a % of total
(Y/N/N.A.) workers (Y/N/N.A.)
employees employees employees
PF 100 100 Yes 100 100 Yes
Gratuity 100 100 No 100 100 No
ESI 100 100 Yes 100 100 Yes
Others
– please NA NA NA NA NA NA
specify
3. Accessibility of workplaces
Are the premises/offices of the entity accessible to differently abled employees and workers, as per the
requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken
by the entity in this regard.
Yes, the premises/offices of the entity accessible to differently abled employees and workers, as per the
requirements of the Rights of Persons with Disabilities Act, 2016.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act,
2016? If so, provide a web-link to the policy.
Yes, a section of HR manual defines the equal opportunity policy of the company, i.e. SOBHA considers
its staff its most important assets and devotes considerable resources towards ensuring their well-being
and the establishment of a productive environment. SOBHA is an ‘equal opportunity employer’ that is
committed to hiring staff regardless of gender, race, creed, marital status, or national origin. SOBHA actively
strives to attract, retain and develop staff of the highest quality. The Company will strive to provide a fair
and equitable treatment to its staff, encourage opportunities for personal growth, discourage all forms of
discrimination, provide a safe and well-equipped environment and most importantly, provide opportunity for
staff participation in matters that affect the staff and their work.
5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Permanent employees Permanent workers

Gender Return to work rate Retention rate Return to work rate Retention rate
Male 100% 100%
Female 100% 100% Not Availed
Total 100% 100%
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6. Is there a mechanism available to receive and redress grievances for the following categories of
employees and worker? If yes, give details of the mechanism in brief.
Yes/No (If Yes, then give details of the mechanism in brief)

Permanent Workers NA.
Other than Permanent Workers The grievance can be raised with their respective Supervisors, Manager, Project
Heads, Business Head and Plant Head and will be resolved with the necessary action
based on the circumstances.
Permanent Employees Employees can raise their grievances with their superiors or HR Managers. They can
raise their feedback or file complaints on the HR helpline facility available on Sobha
intranet. Our whistle blower policy enables employees to communicate their concerns
about unethical practices by writing an e-mail available on our intranet.
Other than Permanent Employees The mentioned policy is applicable for this category also.
7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

Total No. of employees/ Total No. of employees/
Category employees/ workers in respective employees/ workers in respective
workers in category, who are part % (B/A) workers in category, who are part % (D/C)
respective of association(s) or respective of association(s) or
category (A) Union (B) category (C) Union (D)
Total
Permanent
Employees
Male Nil Nil Nil Nil Nil Nil
Female Nil Nil Nil Nil Nil Nil
Total No. of employees/ Total No. of employees/
Category employees/ workers in respective employees/ workers in respective
workers in category, who are part % (B/A) workers in category, who are part % (D/C)
respective of association(s) or respective of association(s) or
category (A) Union (D) category (C) Union (D)
Total
Permanent
Workers
Male Nil Nil Nil Nil Nil Nil
Female Nil Nil Nil Nil Nil Nil
8. Details of training given to employees and workers:

On Health and On Skill On Health and On Skill
Category Total safety measures upgradation Total safety measures upgradation
(A) (D)
No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees
Male 3,006 1,561 51.93 3,490 116.10 3,007 1,451 48.25 2,250 74.82
Female 418 40 9.57 258 61.72 378 52 13.76 143 37.83
Total 3,424 1,601 46.76 3,748 109.46 3,385 1,503 44.40 2,393 70.69
Workers
Male 12,267 13,400 109.23 8,016 65.35 3,495 3,914 111.99 2,566 73.42
Female 260 240 92.30 128 49.23 102 - - 64 62.75
Total 12,527 13,640 108.88 8,144 65.01 3,597 3,914 108.81 2,630 73.12
Note: Contractor Employees ( Technicians) count is considered for workers. Sub contractors data is not considered.
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9. Details of performance and career development reviews of employees and worker:
Category FY 2022-23 (Current Financial Year) FY 2021-22 (Previous Financial Year)

Total (A) No. (B) % (B/A) Total (C) No. (D) % (D/C)
Employees
Male 2,629 2,261 86.00
Female In Progress 378 322 85.19
Total 3,007 2,583 85.90
Workers
Male
Female NA
Total
10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity?
(Yes/No). If yes, the coverage such system?
Yes. ISO 45001.
b. What are the processes used to identify work-related hazards and assess risks on a routine and non-
routine basis by the entity?
SOBHA staying up-to-date to control risks and adapting to modern demands HIRA is one idea we
are adhering to for risk control that can keep workplace safety measures in place. Concept of inputs
(minimize the risk of hazards entering), processes (contain risks during procedures) and outputs
(minimize exporting risk).
Two different sorts of monitoring techniques are used by SOBHA to inspect the workplace. One
is active monitoring, which help us to keep track of how management arrangements are created,
developed, installed and used. We regularly audit our facilities, including our factories, offices and
projects. We do routine health surveillance to spot risks and get rid of those that are bad for health.
Routinely scheduled function check procedures for important plant components.
The second way, reactive methods of monitoring, uses the evidence of subpar health and safety
practices that may be applied to other areas of a business, such as: looking into accidents and
occurrences; keeping track of cases of illness and sickness absence records. This helping us to identify
root causes of incidents and prevent similar incidents from occurring in the future.
SOBHA takes a systematic and coordinated approach to managing workplace risks. We use risk
assessment to identify and eliminate risks and we prefer hierarchy to prioritize measures to combat
risks. We also use engineering controls and collective measures to minimize risks. Finally, we use PPE
as a last resort only when necessary.
At SOBHA, we use the safety manager’s monthly reports and the department head’s audits, plans for
corrective action and improvement targets to gather independent data on the effectiveness, reliability
and efficiency of the entire health and safety management system. Effectiveness is increased by
gathering data through face-to-face interviews, document analysis and visual observations. Through
both proactive and reactive monitoring, SOBHA evaluates their performance. As part of active
monitoring, we regularly review papers from each department relevant to health and safety and check
buildings and plants every two weeks to fill in any gaps. Environmental monitoring records, such as
those for water testing, DG stack height and noise testing and air monitoring testing, are kept on file
and updated on a regular basis.
Additionally, Health and safety audits conducted by internal or external auditors to assess the
effectiveness of health and safety management system. Which include reviewing policies and
procedures, conducting interviews with employees and inspecting the workplace. The safety manager
will carry out a biweekly Audit to identify any flaws in the management system.
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Reactive monitoring allows us to identify standards that require improvement by evaluating injuries,
illnesses, accidents and near-misses. Detailed information from the accident reports is used to examine
incidents and determine their causes.
c. Whether you have processes for workers to report the work related hazards and to remove themselves
from such risks. (Y/N)
SOBHA nurture to perpetuate a system of roles and responsibilities for health and safety inside the
organization, from senior management to front-line employees; for employees to report dangers at
work, SOBHA has provided reporting channels, such as a reporting hotline, an email address, or an
online reporting form. The Company frequently make aware of these reporting options and urge to
use them through training. And an on-site suggestion box installed at project site so individuals can
report anonymously submit ideas, any unsafe condition/unsafe act to rectify for enhancing safety in
and around project for improvement throughout time.
By including workers in danger assessments and safety committees and by delivering training on
hazard recognition and reporting, SOBHA encourage employee participation in hazard reporting.
Employees at SOBHA have been given the authority to create a “stop work” authority, which enables
them to stop working if they believe a task or activity to be unsafe or if they notice a hazard that
poses a major risk. Through training, workers were made aware of this authority and management
offered assistance.
SOBHA swiftly looks into hazard reports (preliminary incident investigation and detailed incident
investigation reports), determines the hazard’s underlying cause and implements the necessary
corrective measures to resolve the hazard and stop it from happening again. The second step in the
accident investigation process involves examining all the paperwork, witness data, picture procedures,
methods, etc.
Overall, SOBHA makes sure that employees are aware of the reporting mechanisms and hazard
reporting protocols so they can report risks without worrying about repercussions. By putting these
procedures in place, SOBHA encourages a culture of safety in which employees are given the authority
to recognize and resolve hazards at work.
d. Do the employees/worker of the entity have access to non-occupational medical and healthcare
services? (Yes/No)
Yes, the employees of SOBHA have access to non-occupational medical health care services. In
particular, we provided preventive health care services. Recently, a specialist oncology doctor’s team
conducted a free cancer awareness session and camp at SCO for our employees on March 10, 2023,
in honors of World Cancer Day. Both male and female employees showed up for the medical
examination. Mammography and all other smoking cessation programmes, nutrition counselling and
general screenings are provided without charge.
To boost employee morale, we are mandatorily giving general medical care, such as routine check-
ups, vaccinations and treatment for common illnesses and injuries, pre-joining medical screening and
tri-monthly medical examinations, to all segments of the workforce. They can access a medical care
service known as a medical care center and an MBBS doctor at any time for medical crises, both
occupational and non-occupational.
We have been maintained half-yearly medical test reports (vision test) of operators and drivers. And it
is a necessary lawful action to track all operators of a crane, winch, or other lifting appliance, transport
equipment or vehicle in order to protect our safety and safety of our workers.
To ensure their fitness, workers over the age of 45 are occasionally (once a year) subjected to medical
examinations. In order to promote employee well-being and foster a positive working culture, SOBHA
arranges non-occupational medical and healthcare services.
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11. Details of safety related incidents, in the following format:
FY 2022-23 (Current FY 20221-22 (Previous

Safety Incident/Number Category
Financial Year) Financial Year)
Employees 4 2
Lost Time Injury Frequency Rate (LTIFR) (per
one million-person hours worked)
Workers 4 4
Employees 4 2
Total recordable work-related injuries
Workers 4 4
Employees - -
No. of fatalities
Workers - -
Employees - -
High consequence work-related injury or ill-
health (excluding fatalities)
Workers - -
12. Describe the measures taken by the entity to ensure a safe and healthy work place.
For a safe and healthy workplace, SOBHA conducts risk assessments to assess the risks to employee’s
health and safety in the workplace and take steps to mitigate these risks. This includes identifying
potential hazards and taking steps to eliminate or control them.
SOBHA establishes procedures for safe work practices through an operational control procedure and
often conducts training to aware employees. This can include procedures for handling hazardous
materials, operating machines and responding to emergencies.
We frequently provide regular safety training sessions pertaining to eight major risk hazards, hazard
identification and risk assessment, the occupational control process, legal obligations, the usage of
personal protective equipment and the application of safety norms and protocols. The business also
does routine safety audits to spot potential risks and take corrective action. To ensure that their
medical needs are met, SOBHA additionally gives its employees access to medical facilities and health
insurance. These actions show how committed the business is to providing a secure and healthy work
environment for all of its workers.
SOBHA nurtures and perpetuates a system of roles and responsibilities for health and safety inside
the organization, from senior management to front-line employees. Additionally, it is controlled or
overseen by Setting key objectives and reviewing against them, planning, reviewing and auditing
to ensure legal compliance, setting performance standards and effective implementation of plans,
allocation of specific responsibilities, individual job descriptions with H&S responsibilities. SOBHA
always monitors their staff’s competence and helps them nurture themselves by identifying training
needs.
SOBHA provided suitable information, instruction and training for their employees to enable them to
make effective use of the PPE provided to protect them against workplace hazards to their health
and safety.
13. Number of Complaints on the following made by employees and workers:
Filed during Pending Remarks Filed during the Pending Remarks

the year resolution at the year resolution at
end of year the end of year
Working Conditions Nil Nil Nil Nil Nil Nil
Health & Safety Nil Nil Nil Nil Nil Nil

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14. Assessments for the year:
% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Health and safety practices 90
Working Conditions 90
15. Provide details of any corrective action taken or underway to address safety-related incidents (if any)
and on significant risks/concerns arising from assessments of health & safety practices and working
conditions.
NA
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A)
Employees (Y/N) (B) Workers (Y/N)
Yes, the Company has covered all the permanent and other than permanent employees under the
scheme of group personal accident policy and other than permanent workers covered under the
Employees Compensation policy.
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted
and deposited by the value chain partners.
Company adheres by all the statutory compliance as applicable under various Statutory Laws and
same is applicable to the Value chain partners as well. The records are verified based on the periodic
audit process within the internal audit team.
3. Provide the number of employees/workers having suffered high consequence work related
injury/ill-health/fatalities (as reported in Q11 of Essential Indicators above), who have been are
rehabilitated and placed in suitable employment or whose family members have been placed in
suitable employment:
Total no. of affected employees/workers No. of employees/workers that are rehabilitated

and placed in suitable employment or whose
family members have been placed in suitable
employment
FY 2022-23 (Current FY 2021-22 (Previous FY 2022-23 (Current FY 2021-22 (Previous

Financial Year) Financial Year) Financial Year) Financial Year)
Employees - - - -
Workers - - - -
4. Does the entity provide transition assistance programs to facilitate continued employability and the
management of career endings resulting from retirement or termination of employment? (Yes/No) No
5. Details on assessment of value chain partners:
% of value chain partners (by value of business done with such partners) that were assessed
Health and safety practices NA
Working Conditions NA
6. Provide details of any corrective actions taken or underway to address significant risks/concerns arising
from assessments of health and safety practices and working conditions of value chain partners.
NA
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PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders.
1. Describe the processes for identifying key stakeholder groups of the entity.
Yes, the Company has mapped its internal and external stakeholders. The key stakeholders of the
Company includes its Customers, Regulatory Authorities including Government, Employees, Vendors,
Contractors, Bankers, Investors and Shareholders.
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each
stakeholder group.
Stakeholder Whether identified Channels of communication Frequency of Purpose and scope of

Group as Vulnerable & (Email, SMS, Newspaper, Pam- engagement engagement including key
Marginalized Group phlets, Advertisement, Com- (Annually/Half topics and concerns raised
(Yes/No) munity Meetings, Notice Board, yearly/Quar- during such engagement
Website), Other terly/others –
please specify)
Customers No Newsletter, Brochures, Meetings As per product • Product quality and safety
and Social media. launches
• Adequate information on
products
• Amenities related to
ventilation, natural lighting,
space for work from-
home, use of IoT and
other technologies
• Timely delivery
• Maintenance of privacy/
Confidentiality
• Customer satisfaction and
feedback
Regulatory No Conferences organized by CII, Quarterly (as Statutory compliance

Authorities FICCI and other bodies. required)
including • Transparency in
Government Policy advocacy initiatives with disclosures
CREDAI
• Tax revenues
Press Releases, Quarterly
financial and operational update, • Sound corporate
Annual Reports, Stock Exchange governance
filings, issue specific meetings, • Mechanisms
representations
Vendors No
Media No Press Releases, Quarterly As and when Performance reporting,

Results, Annual Reports, AGM required good practices, show cases,
(shareholders interaction), awards and achievements,
initiatives etc. are discussed
Access information and media and reported
interactions
Contractors No
Investors No Public notifications, newspaper Quarterly and Updating the latest

and Share- advt. website of the Company from time to time developments, performance,
holders Press Releases, Info desk – an of the Company
online service, dedicated email
ID for Investor Grievances,
Quarterly Results, Annual
Reports, AGM (Shareholders
interaction), Quarterly investor
presentation, Investors meets,
stock exchange filings and
corporate website.
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Employees No Group Email Mpower Company Continuous To create awareness

magazine Innerve is circulated
among employees through
internal email communication
system (group mail)
Community No CSR initiatives at all Locations Quarterly (A A detailed report is attached

(A detailed report is attached to detailed report is to the Annual Report
the Annual Report) attached to the
Annual Report)
1. Provide the processes for consultation between stakeholders and the Board on economic,
environmental and social topics or if consultation is delegated, how is feedback from such consultations
provided to the Board.
NA
2. Whether stakeholder consultation is used to support the identification and management of

environmental and social topics (Yes/No). If so, provide details of instances as to how the inputs
received from stakeholders on these topics were incorporated into policies and activities of the
entity.
NA
3. Provide details of instances of engagement with and actions taken to, address the concerns of
vulnerable/marginalized stakeholder groups.
NA
PRINCIPLE 5: Businesses should respect and promote human rights.
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the
entity, in the following format:
Company has a Code of Conduct which regulates practices relating to the non-employment of child
labour, assuring safety measures etc. This Code is applicable to the Company, its subsidiaries as well
as to the contractors engaged by the Company.
Category FY 2022-23 Current Financial Year FY 2021-22 Previous Financial Year
Total No. of employees/ % (B/A) Total (C) No. of employees/ % (D/C)

(A) workers covered (B) workers covered (D)
Employees
Permanent NA NA NA NA NA NA
Other than permanent NA NA NA NA NA NA
Total Employees NA NA NA NA NA NA
Workers
Permanent NA NA NA NA NA NA
Other than permanent NA NA NA NA NA NA
Total Employees NA NA NA NA NA NA
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2. Details of minimum wages paid to employees and workers, in the following format:
Equal to More than Equal to More than

Category Total minimum wage Minimum Wage Total minimum wage Minimum Wage
(A) (D)
Employees
Permanent
Male 2,984 - - 2,984 100 2,614 - - 2,614 100
Female 422 - - 422 100 378 - - 378 100
Equal to More than Equal to More than

Category Total Total
minimum wage Minimum Wage minimum wage Minimum Wage
(A) (D)
Other than
Permanent
Male 16 - - 16 100 15 - - 15 100
Female - - - - - - - - - -
Workers
Permanent
Male NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Female NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Other than
Permanent
Male 22,345 18,989 85 3,356 15 16,064 13,233 83 2,831 17
Female 508 298 59 210 41 423 329 78 94 22
3. Details of remuneration/salary/wages, in the following format:
Male Female
Number Median remuneration/ Number Median remuneration/

salary/wages of respective salary/wages of respective
category category
Board of Directors (BOD) 5 2,180,000 1 2,240,000
Key Managerial Personnel* 4 19,924,137 - -
Employees other than BOD

2,980 484,051 422 439,811
and KMP
Workers - - - -
* Remuneration paid to Key Managerial Personnel includes remuneration paid to Chairman and Managing
Director, which forms part of Board of Directors.
4. Do you have a focal point (Individual/Committee) responsible for addressing human rights impacts or
issues caused or contributed to by the business? (Yes/No)
The primary focal point for addressing the human rights issues are respective Project Heads/Business
Head/Plant Heads. If need be, the Company constitute committee(s) to address the impacts/issues
related to the human rights.
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5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
The grievance can be raised with their respective Head of the Department/Project Heads/Business
Head/Plant Heads and will be resolved with the necessary action based on the circumstances.
6. Number of Complaints on the following made by employees and workers:
FY2022-23 Current Financial Year FY 20221-22 Previous Financial Year
Filed Pending Filed Pending

during resolution at Remarks during resolution at the Remarks
the year the end of year the year end of year
Sexual Harassment NIL NIL NIL NIL NIL NIL
Discrimination at workplace NIL NIL NIL NIL NIL NIL
Child Labour NIL NIL NIL NIL NIL NIL
Forced Labour/Involuntary
NIL NIL NIL NIL NIL NIL
Labour
Wages NIL NIL NIL NIL NIL NIL
Other human rights related issues NIL NIL NIL NIL NIL NIL
7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
The complainant can approach the HR department directly or to the HODs with their grievance. Appropriate
inquiries will be conducted by the Company as per the applicable laws and appropriate actions, as may
deem fit will be taken. Alternatively, the employees may report their grievance, complaints related to
discrimination and harassment cases through the help desk available in company intranet portal.
8. Do human rights requirements form part of your business agreements and contracts? (Yes/No) No.
9. Assessments for the year:
% of your plants and offices that were assessed (by entity or statutory
authorities or third parties)
Child Labour Nil
Forced Labour/Involuntary Labour Nil
Sexual Harassment Nil
Discrimination at workplace Nil
Wages Nil
Others – please specify Nil
10. Provide details of any corrective actions taken or underway to address significant risks/concerns
arising from the assessments at Question 9 above.
NA
1. Details of a business process being modified/introduced as a result of addressing human rights
grievances/complaints.
NA
2. Details of the scope and coverage of any Human rights due-diligence conducted.
NA
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3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of
the Rights of Persons with Disabilities Act, 2016?
Yes
4. Details on assessment of value chain partners:
The Company expects its value chain partners to uphold the same values and business ethics as per
company norms. However, no formal examinations of value chain partner have been conducted.
% of value chain partners (by value of business done with such partners) that
were assessed
Child Labour NA
Forced Labour/Involuntary Labour NA
Sexual Harassment NA
Discrimination at workplace NA
Wages NA
Others – please specify NA
5. Provide details of any corrective actions taken or underway to address significant risks/concerns
arising from the assessments at Question 4 above.
NA
PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment.
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following
format:
FY 2022-23 (Current FY 2021-22 (Previous

Parameter
Total electricity consumption (A) 64,314 GJ 64,148 GJ
Total fuel consumption (B) 2,253.6 GJ 1,814.4 GJ
Energy consumption through other sources (C)- Solar 8,719.2 GJ 8,503.2 GJ
Total energy consumption (A+B+C) 75,286.8 GJ 74,465.6 GJ
Energy intensity per rupee of turnover (Total energy

2.268 kJ 2.812 kJ
consumption/turnover in rupees)
Energy intensity (optional) – the relevant metric may be

selected by the entity
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external
agency? (Y/N) If yes, name of the external agency.
No.
2. Does the entity have any sites/facilities identified as designated consumers (DCs) under the
Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose
whether targets set under the PAT scheme have been achieved. In case targets have not been
achieved, provide the remedial action taken, if any.
No.
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3. Provide details of the following disclosures related to water, in the following format:
Parameter FY 2022-23 (Current FY 2021-22 (Previous

Water withdrawal by source (in kilolitres)
(i) Surface water - -

(ii) Groundwater 137.9 ML 89.3 ML
(iii) Third party water 1,056 ML 933.3 ML
(iv) Seawater/desalinated water - -
(v) Others Rainwater Harvesting 88.7 ML 56.4 ML
Total volume of water withdrawal (in kilolitres) 1,282.6 ML 1,079 ML
(i + ii + iii + iv + v)
Total volume of water consumption (in kilolitres) 1,282.6 ML 1,079 ML
Water intensity per rupee of turnover (Water consumed/turnover) 0.038 litre/₹ 0.040 litre/₹
Water intensity (optional) – the relevant metric may be selected by the
entity
No
4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its
coverage and implementation.
Treated wastewater from our projects and factories are recycled for flushing and reused for irrigation
purposes in the landscaped areas of the projects. Excess treated water is also being used for
construction purposes, Avenue plantations and also sold to third party vendors for further use.
5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:
All parameters are within the limits prescribed as per National Ambient Air Quality Standards (NAAQS)
No
6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the
following format:
Parameter Unit FY 2022-23 (Current FY2021-22 (Previous

Total Scope 1 emissions (Break-up of the GHG Metric tonnes of 1,108.6 826.9
into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if CO2 equivalent
available)
Total Scope 2 emissions (Break-up of the GHG Metric tonnes of 16,257.15 16,215
into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if CO2 equivalent
available)
Total Scope 1 and Scope 2 emissions per rupee
CO2 0.52 g 0.64 g
of turnover
Total Scope 1 and Scope 2 emission intensity
(optional) – the relevant metric may be selected
by the entity
No.
7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide
details.
The Company does not have a dedicated project related to reducing Green House Gas emissions.
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However, the Company’s corporate office has wheeled in 1,420 MW offsite renewable energy and
generated approximately 1002 MW in onsite installations in its factories (Sobha Glazing & Metals Limited
and Sobha Interiors Limited) in FY 2022-23.
8. Provide details of waste management by the entity, in the following format:
Parameter FY 2022-23 (Current Financial Year) FY 2021-22 (Previous Financial Year)

Total Waste generated (in metric tonnes)
Plastic waste (A) 43.14 MT 36 MT
E-waste (B) 1.12 MT -
Bio-medical waste (C) 0.88 MT 0.07 MT
Construction and demolition waste (D) 307.11 MT 229.01 MT
Battery waste (E) 0.31 MT 0.12 MT
Radioactive waste (F) NA NA
Other Hazardous waste. Please specify, DG Spent Oil- 6559 lit DG Spent Oil- 7307 lit
if any. (G) Used Oil filters- 291 nos. DG Used Oil filters- 104 nos.
Cotton Waste- 10.56 MT Cotton Waste- 6.51 MT
Other Non-hazardous waste generated Biodegradable Waste- 733.4 MT Biodegradable Waste- 496.25 MT
(H). Please specify, if any. Non-Biodegradable Waste- 326.9 MT Non-Biodegradable Waste- 362.58 MT
(Break-up by composition i.e. by
materials relevant to the sector)
Total (A+B + C + D + E + F + G + H) 1,423.42 MT 1,130.54 MT
291 nos. 104 nos.
6,559 lit 7,307 lit
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations
(in metric tonnes)
Category of waste
(i) Recycled - -
(ii) Re-used 733.4 MT 496.25 MT
(iii) Other recovery operations 696.02 MT 634.29 MT
291nos. (DG used oil filters) 104 nos. (DG used oil filters)
6559 lit (DG spent oil) 7307 lit (DG spent oil)
Disposed through authorized vendors Disposed through authorized vendors
Total
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
(i) Incineration
(ii) Landfilling NIL
(iii) Other disposal operations
Total
No
9. Briefly describe the waste management practices adopted in your establishments. Describe the
strategy adopted by your Company to reduce usage of hazardous and toxic chemicals in your
products and processes and the practices adopted to manage such wastes.
Biodegradable solid waste is treated in-site in organic waste converters and the compost generated
is used as manure in landscaped areas of projects. Non-biodegradable waste is handed over to
authorized vendors. Hazardous waste is handed over to authorized recyclers.
10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks,
wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation
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zones etc.) where environmental approvals/clearances are required, please specify details in the
following format:
S. No. Location of operations/ Type of operations Whether the conditions of environmental approval/
offices clearance are being complied with? (Y/N) If no, the
reasons thereof and corrective action taken, if any.
1 Bangalore Construction projects Yes
2 Kochi Construction projects Yes
3 Kozhikode Construction Projects Yes
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable
laws, in the current financial year:
Name and brief details of EIA Notification No. Date Whether Results Relevant
project conducted by communicated Web link
independent in public domain
external agency (Yes/No)
(Yes/No)
Proposed Residential S.O.1533 14.09.2006 Yes Yes http://

Building and Clubhouse at EC22B039KA174585 (26.09.2022) bitly.ws/
Panathur, Bangalore Bdzb
12. Is the entity compliant with the applicable environmental law/regulations/guidelines in India; such
as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution)
Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such
non-compliances, in the following format:
S. No. Specify the law/regulation/ Provide details Any fines/penalties/action taken by Corrective
guidelines which was not of the non- regulatory agencies such as pollution action taken, if
complied with compliance control boards or by courts any
NA
1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-
renewable sources, in the following format:

From renewable sources
Total electricity consumption (A)
Total fuel consumption (B)
Energy consumption through other sources (C)
Total energy consumed from renewable sources (A+B+C)
From non-renewable sources
Total electricity consumption (D)
Total fuel consumption (E)
Energy consumption through other sources (F)
Total energy consumed from non-renewable sources (D+E+F)
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2. Provide the following details related to water discharged

Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
No treatment
With treatment – please specify level of treatment
(ii) To Groundwater
No treatment
(iii) To Seawater
No treatment
(iv) Sent to third-parties
No treatment
(v) Others
No treatment
Total water discharged (in kilolitres)
3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
For each facility/plant located in areas of water stress, provide the following information:
i. Name of the area
ii. Nature of operations
iii. Water withdrawal, consumption and discharge in the following format:

Water withdrawal by source (in kilolitres)
(i) Surface water
(ii) Groundwater
(iii) Third party water
(iv) Seawater/desalinated water
(v) Others
Total volume of water withdrawal (in kilolitres)
Total volume of water consumption (in kilolitres)
Water intensity per rupee of turnover (Water consumed/
turnover)
Water intensity (optional) – the relevant metric may be selected
by the entity
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Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water
No treatment
(ii) Into Groundwater
No treatment
(iii) Into Seawater
No treatment
(iv) Sent to third-parties
No treatment
(v) Others
No treatment
Total water discharged (in kilolitres)
4. Please provide details of total Scope 3 emissions & its intensity, in the following format:
Parameter Unit FY 2022-23 FY 2021-22

Total Scope 3 emissions (Break-up of Metric tonnes of

the GHG into CO2, CH4, N2O, HFCs, PFCs, CO2 equivalent
SF6, NF3, if available)
Total Scope 3 emissions per rupee of

turnover
(Total Scope 3 emission intensity

(optional) – the relevant metric may be
selected by the entity
5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above,
provide details of significant direct & indirect impact of the entity on biodiversity in such areas along-
with prevention and remediation activities.
6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to
improve resource efficiency, or reduce impact due to emissions/effluent discharge/waste generated,
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please provide details of the same as well as outcome of such initiatives, as per the following format:
Sr. No Initiative undertaken Details of the initiative (Web-link, if any, Outcome of the initiative
may be provided along-with summary)
7. Does the entity have a business continuity and disaster management plan? Give details in 100 words/
web link.
8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity.
What mitigation or adaptation measures have been taken by the entity in this regard.
9. Percentage of value chain partners (by value of business done with such partners) that were assessed
for environmental impacts.
PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in
a manner that is responsible and transparent
1. a. Number of affiliations with trade and industry chambers/associations.
Yes. the Company is a member of CREDAI Bangalore, Gurgaon and Gujarat a forum of real estate
developers.
b. List the top 10 trade and industry chambers/associations (determined based on the total members
of such body) the entity is a member of/affiliated to.
S. No. Name of the trade and industry chambers/ Reach of trade and industry chambers/associations
associations (State/National)
1 CREDAI Bangalore, Gurgaon and Gujarat State
2. Provide details of corrective action taken or underway on any issues related to anti competitive
conduct by the entity, based on adverse orders from regulatory.
Name of authority Brief of the case Corrective action taken
NA
1. Details of public policy positions advocated by the entity
S. No. Public policy Method Whether Frequency of Review by Web Link, if

advocated resorted for information Board (Annually/Half yearly/ available
such advocacy available in public Quarterly/Others – please
domain? (Yes/No) specify)
NA
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PRINCIPLE 8 Businesses should promote inclusive growth and equitable development
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable
laws, in the current financial year.
Whether conducted Results

SIA
Name and brief Date of by independent communicated in Relevant Web
Notification
details of project notification external agency public domain (Yes/ link
No.
(Yes/No) No)
Education NA NA Yes No No
Sobha Health Care NA NA Yes No No
Hermitage and Women

NA NA Yes No No
Empowerment
Green Initiatives NA NA Yes No No
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being
undertaken by your entity, in the following format:
S.No Name of Project for State District No. of Project % of PAFs Amounts paid to
which R&R is ongoing Affected Families covered by R&R PAFs in the FY (In
(PAFs) INR)
NA
3. Describe the mechanisms to receive and redress grievances of the community.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
Directly sourced from MSMEs/small

producers
Sourced directly from within the district

and neighbouring districts
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact
Assessments (Reference: Question 1 of Essential Indicators above):
Details of negative social impact identified Corrective action taken
NA
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational
districts as identified by government bodies:
S.No State Aspirational District Amount spent (In INR)
Nil
Note: Company execute its CSR activities through its CSR arm Sri Kuramba Educational and Charitable
Trust, a public Trust in 3 village panchayat limit of Kerala state.
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3. (a) Do you have a preferential procurement policy where you give preference to purchase from
suppliers comprising marginalized/vulnerable groups? (Yes/No)
Majority of the Company’s procurement is of industrial origin and procured in bulk. The Company
does not have a preferential procurement policy to purchase from suppliers comprising marginalized/
vulnerable groups.
(b) From which marginalized/vulnerable groups do you procure?
NA
(c) What percentage of total procurement (by value) does it constitute?
NA
4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your
entity (in the current financial year), based on traditional knowledge:
S.No Intellectual Property based on Owned/Acquired Benefit shared (Yes/ Basis of calculating
traditional knowledge (Yes/No) No) benefit share
NA
5. Details of corrective actions taken or underway, based on any adverse order in intellectual property
related disputes wherein usage of traditional knowledge is involved.
Name of authority Brief of the Case Corrective action taken

NA
6. Details of beneficiaries of CSR Projects:
S.No CSR Project No. of persons benefitted from CSR % of beneficiaries from vulnerable and
Projects marginalized groups
Detailed report is placed as a part of the Management Report
PRINCIPLE 9 Businesses should engage with and provide value to their consumers in a responsible
manner.
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Please refer the attachment for the SOP
2. Turnover of products and/services as a percentage of turnover from all products/service that carry
information about:
As a percentage to total turnover
Environmental and social parameters relevant to the product
Safe and responsible usage NA
Recycling and/or safe disposal

INFORMATION FOR OUR

SHAREHOLDERS
3. Number of consumer complaints in respect of the following:
FY 2022-23 Remarks FY 2021-22 Remarks

Received Pending Received Pending

during the resolution at during the resolution at
year end of year year end of year
Data privacy Nil NA Nil NA
Advertising Nil NA Nil NA
Cyber-security NA
Delivery of essential NA
services
Restrictive Trade Nil NA Nil NA

Practices
Unfair Trade Practices Nil NA Nil NA
Others
(i) Project related 5,340 34 6,607 -

queries/complaints
(ii) Consumer disputes 8 21 5 17
RERA Related cases 22 41 26 39
4. Details of instances of product recalls on account of safety issues:
Number Reasons for recall
Voluntary recalls
NA
Forced recalls
5. Does the entity have a framework/policy on cyber security and risks related to data privacy? (Yes/No)
If available, provide a web-link of the policy.
No.
6. Provide details of any corrective actions taken or underway on issues relating to advertising and
delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances
of product recalls; penalty/action taken by regulatory authorities on safety of products/services.
NA
1. Channels/platforms where information on products and services of the entity can be accessed
(provide web link, if available).
All the information about products and services of the entity is available in the public domain on the
website. Also, for our business partners on the sales side, Company keeps them up-to-date with all
our project information, latest schemes, communication, incentive plans and many others. Link to
access the website: www.sobha.com
2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or
services.
Process of handover of infrastructure assets to society/association involves the handover of all
INFORMATION FOR OUR
SHAREHOLDERS
relevant documents (test reports, commissioning certificates, warranty certificates, work completion
report, Operation & Maintenance manuals, Consent to Operate, as built drawings, etc.) pertaining to
each of the assets and satisfactory demonstration of the infrastructure/asset in good condition.
3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.

From the time the customers/residents occupy the property, the Company manages the complete
maintenance of the project including all day-to-day grievances of the occupants. During the initial two
years of DLP (Defect Liability Period), the company handholds the occupants till the time the resident
welfare committee is constituted, which may then choose to handover the maintenance management
to third party or choose to be with the Company as an external maintenance management party on
completion of 2 years.
4. Does the entity display product information on the product over and above what is mandated as per
local laws? (Yes/No/Not Applicable) If yes, provide details in brief. Did your entity carry out any survey
with regard to consumer satisfaction relating to the major products/services of the entity, significant
locations of operation of the entity or the entity as a whole? (Yes/No)
Yes, the entity displays the information about the product and its various features within the product.
The company is bound by RERA however the product brochures also inform the customer about the
sustainability features and the related customer benefits. Provision of signages within the product
also guides the customers to identify the features and its usage. Customer satisfaction is ensured by
having continuous engagement right from the day of possession till society handover, timely response
to their grievances and prompt service support. We do take feedback from our customers through
customer surveys in which we request the customer to share feedback about their experience of
the product, their journey throughout the possession of their flat, etc. These feedbacks provide an
opportunity to us to understand the customer pain points and liking of the sustainability and other
features and thereby improve on the offerings and processes.
5. Provide the following information relating to data breaches:

a. Number of instances of data breaches along-with impact : NA
b. Percentage of data breaches involving personally identifiable information of customers: NA
CORPORATE GOVERNANCE REPORT

COMPANY’S PHILOSOPHY responsibility of ensuring concord between
SOBHA is committed to high standards shareholders’ expectations, the Company’s
of corporate governance and believes in plans and the management’s performance.
conducting its business lawfully, with integrity The Board is also responsible for developing
and in an ethical manner. The Company is and approving the mission of the Company’s
determined to provide in time, correct and business, its objectives and goals and the
complete information, as required, to all its strategy for achieving these.
RESPONSIBILITY
stakeholders. SOBHA regularly interacts with all The Company meets the requirements of the
CORPORATE
the stakeholders; its borders are expanding; its Listing Regulations in terms of the composition
environment is changing ever faster and its social of its Board.
responsibilities are growing. The Company firmly
The strength of the Board as on March 31, 2023,
believes that good Corporate Governance can
was six Directors. The Board is headed by the
be achieved by promoting corporate fairness,
Non-executive Chairman (up to March 31, 2023
transparency and accountability. To achieve
Mr. Ravi PNC Menon, Chairman of the Board
Corporate Governance of the highest standards,
was an Executive Director) and comprises of
SOBHA has adopted a comprehensive Corporate
eminent personalities with expertise in diverse
Governance policy.
fields. As on the date of this report, there are
six Directors on the Board. The composition
BOARD OF DIRECTORS of the Board as on March 31, 2023 comprised
The Board, as defined in Sobha Limited’s four Non-executive Independent Directors and
Corporate Governance principles, has the two Executive Directors, including one woman
The composition of the Board of Directors as on March 31, 2023 was:
Name Designation Category Date of Director- Committee Committee Names of the listed entities
appoint- ships* chairman- member- including this entity where the
ment ships** ships** person is a Director and category
of directorship
Mr. Ravi PNC Chairman Executive June 08, 1 listed - 1 Sobha Limited – Executive
Menon$ 2004 entity Director
Mr. Jagadish Managing Executive April 1, 13 (1 listed - 2 Sobha Limited – Managing

Nangineni Director 2022 entity) Director
Mr. R V S Rao Independent Non- June 28, 1 listed - 1 Sobha Limited – Non-Executive
Director Executive 2006 entity Independent Director
Mr. Anup S Shah Independent Non- June 28, 5 (3 listed 3 5 Sobha Limited – Non-Executive
Director Executive 2006 entities) Independent Director
Puravankara Limited –
Non-Executive
Stove Kraft Limited –

Non-Executive
Ms. Srivathsala K N Independent Non- January 12 (1 listed 1 2 Sobha Limited – Non-Executive

Director Executive 4, 2020 entity) Independent Director
Mr. Raman Independent Non- April 1, 2 (1 listed 1 2 Sobha Limited – Non-Executive

Mangalorkar Director Executive 2022 entity) Independent Director
* Includes directorship in both public (listed and unlisted) and private limited companies.
** Includes memberships/chairmanships of only the Audit Committee and Stakeholders’ Relationship Committee of all Public
companies.
$
Mr. Ravi PNC Menon resigned from the position of Whole-time Director and re-designated as Non-executive Non- Independent
Director and Chairman w.e.f. April 01, 2023.
Independent Director. Consequent to change Inter-se relationships among Directors

in the composition of the Board effective There are no inter-se relationships between our
April 1, 2023, the current composition of the Board members.
Board comprise of one Executive Director, one
Non-Executive Non-Independent Director and BOARD MEETINGS
four Non-Executive Independent Directors. The Board has the responsibility of monitoring
The Company does not have any Nominee the Company’s progress towards achieving its
Director. goals and revising and altering its direction in
light of changing circumstances. Board meetings
The composition of the Board of Directors are scheduled as required under the Listing
RESPONSIBILITY
satisfies the requirements of Regulation 17 of Regulations, the Companies Act, 2013 and
CORPORATE
the Listing Regulations read with Section 149 of the Rules made thereunder and as required
the Companies Act, 2013 and the rules made under business exigencies. At every quarterly
thereunder. scheduled meeting, the Board reviews recent
developments, if any, the regulatory compliance
As per the declarations received by the position and proposals for business growth that
Company, none of the Directors are disqualified impact the Company’s strategy.
under Section 164(2) of Companies Act, 2013 The Board meetings are usually held at the
read with the Companies (Appointment and Company’s Registered and Corporate Office
Qualification of Directors) Rules, 2014. or other locations at Bangalore or through VC/
OVAM, as permitted by the regulations.
The Directors have made necessary disclosures
stating that, they did not hold directorships in The Company, as required by the regulations,
more than seven listed companies during the convened at least one Board meeting in a
quarter and the maximum time gap between
year 2022-23 pursuant to Regulation 17A of
any two meetings was not more than 120 days.
the Listing Regulations. Also, the membership
of the committees (Audit Committee and the The dates of the Board meetings held during
Stakeholders’ Relationship Committee) shall financial year 2022-23 are:
not exceed more than 10 committees and/or
Date of the Total No. of
are acting as chairpersons in more than five Meeting Strength of Directors
committees in terms of Regulation 26 of the BOD Present
Listing Regulations. May 20, 2022 6 5

August 09, 2022 6 5
The Company has obtained Directors and
November 14, 2022 6 6
Officers’ insurance (‘D and O Insurance’) for all
February 07, 2023 6 6
its Directors of such quantum and for such risks
March 06, 2023 6 6
as determined by its Board of Directors.
Details of the Directors’ attendance in Board meetings and the previous Annual General Meeting are:
Director Board Meetings/Annual General Meeting (AGM)
May 20, August 09, November 14, February 07, March 06, AGM
2022 2022 2022 2023 2023 August 10,
2022
Mr. Ravi PNC Menon ü ü ü ü ü ü

Mr. Jagadish Nangineni ü ü ü ü ü ü
Mr. R V S Rao ü ü ü ü ü ü
Mr. Anup S Shah  ü ü ü ü ü
Ms. Srivathsala K N ü ü ü ü ü ü
Mr. Raman Mangalorkar ü  ü ü ü 
AGENDA FOR THE MEETINGS AND of senior officers just below the Board level
INFORMATION FURNISHED TO THE BOARD including appointment or removal of the
The agenda for the meetings is arranged by Chief Financial Officer and the Company
the Company Secretary in consultation with the Secretary.
Chairman and Managing Director. The agenda • Show cause, demand, prosecution notices
along with detailed notes and necessary and penalty notices which are materially
supporting documents are circulated to the important.
Directors within the timelines prescribed by the
regulations. The Company provides a separate • Non-compliance with any regulatory,
window for meetings of Independent Directors statutory or listing requirements and
RESPONSIBILITY
and facilitates independent consultations with the shareholders’ services such as non-payment
Statutory Auditors and Internal Auditors of the of dividend and delay in share transfers etc.
CORPORATE
Company, if necessary. The Company also has a • Sale of investments, subsidiaries and assets
well-defined process in place for placing vital and which are material in nature and not in the
sufficient information before the Board. normal course of business.
All items mentioned under Regulation 17(7) read • Any issue, which involves possible public or
with Part A of Schedule II to the Listing Regulations product liability claims of a substantial nature,
are covered to the fullest extent. Extensive including any judgement or order which
information and presentations are made to the may have passed strictures on the conduct
Board on the following matters among others: of the Company or taken an adverse view
regarding another enterprise that may have
Information placed before the Board
negative implications for the Company.
• Minutes of meetings of audit committee and
• Significant labour problems and their
other committees of the board of directors.
proposed solutions. Any significant
• Annual operating/business plans, budgets developments on the human resources/
and any updates. industrial relations front, such as signing of
• Capital budgets and any updates. wage agreements and the implementation
of the Voluntary Retirement Scheme etc.
• Operational performance of the Company, a
comparison of the budget with the actuals. • Presentations covering sales, delivery,
finance, compliance and risk management
• Financial analysis of the performance with a
ratio analysis. practices.
• Quarterly Unaudited and Annual Audited • The Company’s safety performance,

Financial Results of the Company and its including a report on serious and fatal
operating division or business segments. accidents, dangerous occurrences, any
material effluent or pollution problems.
• Cash flows with a focus on financial
obligations, timelines for payment of credit • Material litigations by and against the
facilities and interest. Company.
• Financial statements and minutes of • Any material default in financial obligations

subsidiary companies. to and by the Company, or substantial non-
payment for goods sold by the Company.
• Joint ventures, collaborations and
acquisitions undertaken by the Company. • Report on the Corporate Social Responsibility
(CSR) activities of the Company.
• Transactions that involve substantial
payments towards goodwill, brand equity or • Key regulatory updates and their impact on
intellectual property. the Company.
• Quarterly details of foreign exchange • Minutes of the meetings of the Board of
exposures and the steps taken by the Directors of the subsidiaries.
management to limit the risks of adverse • Other such information as may be required
exchange rate movements, if material. by law or otherwise to be placed before
• Information on recruitment and remuneration the Board.
Compliances Related to Board/Committee Company Secretary in practice stating that none

Meetings of the Directors on the Board of the Company
have been debarred or disqualified from being
The Company is in compliance with the provisions
appointed or continuing as directors of companies
of the Listing Regulations pertaining to the
by the Board/Ministry of Corporate Affairs or any
intimation of notice of Board Meeting, publication
such statutory authority forms part of this report
of the results and outcome of the meeting etc. The
as Annexure A.
information is also made available to the investors
on the Company’s website, www.sobha.com
Resolutions Passed by Circulation
Appointment and Re-appointment of Directors During the financial year 2022-23, the Board of
RESPONSIBILITY
Directors has passed two circular resolutions on
Mr. Jagadish Nangineni, was appointed as an
CORPORATE
April 5, 2022 and May 4, 2022 respectively.
Additional Director in the capacity of Whole-time
Director designated as Managing Director During the financial year 2022-23, the Audit
effective April 01, 2022. His appointment Committee has passed two circular resolutions on
was approved by the shareholders by October 21, 2022.
passing resolutions through postal ballot on
June 09, 2022. Directors’ Compensation
Mr. Raman Mangalorkar was appointed as The Board of Directors, basis recommendations of
an Additional Director in the capacity of the Nomination, Remuneration and Governance
Non-executive Independent Director effective Committee, is responsible for the appointment
April 01, 2022. His appointment was approved by and re-appointment of Directors and determining
the shareholders by passing a resolution through their remuneration subject to approval by the
postal ballot on June 09, 2022. shareholders at the General Meeting/through
postal ballot. Remunerations for the Board of
Mr. Ravi PNC Menon has resigned from the
position of Whole-time director effective Directors are approved by the shareholders and
close of March 31, 2023 and re-designated disclosed separately in the Notes to Accounts.
as Non-executive Non-Independent Director As on March 31, 2023, the Company had two
and Chairman, w.e.f. April 01, 2023. The current Executive/Whole-time Directors. Remuneration
overall composition of the Board constitutes the for Whole-time Director(s) consists of a fixed salary
requisition of the Listing Regulations. and/or performance incentive/commission on the
consolidated profits earned by the Company.
In terms of Section 152 of the Companies Act, 2013, The Executive Directors of the Company are not
not less than two-third of the total number of entitled to sitting fees for attending Board or
Directors of a public company shall be liable to Committee meetings.
retire by rotation and one-third of such Directors
shall retire every year. Further, Independent Independent Directors’ Compensation
Directors shall not be liable to retire by rotation.
The Company has an eminent pool of
Mr. Jagadish Nangineni, Director and Managing Independent Directors who, with their expertise
Director of the Company is liable to retire and diverse experience, contribute to the
by rotation at the ensuing Annual General development of the Company’s strategies. The
Meeting and being eligible offers himself for the Independent Directors meet the criteria defined
re-appointment. The Board has recommended under the Companies Act, 2013 and the Listing
the re-appointment of Mr. Jagadish Nangineni as Regulations. A confirmation of independence has
Director retiring by rotation.
been obtained from all the Independent Directors
of the Company. The Board hereby confirms that
Certificate pursuant to Regulation 34(3) in its opinion, the Independent Directors fulfill the
and Schedule V, Para C, Clause (10)(i) of the conditions specified in the Listing Regulations
SEBI (Listing Obligations and Disclosure and are independent of the management.
Requirements) Regulations, 2015.
Apart from receiving the Director’s remuneration/
A certificate issued by Mr. Nagendra D Rao, sitting fees, Independent Directors do not have any
material pecuniary relationships or transactions the approval of the shareholders. The members
with the Company, its promoters, its management of the Company at the 24th Annual General
or its subsidiaries and associate companies except Meeting held on August 09, 2019, approved
to the extent permitted under the applicable laws, paying remuneration to Non-Executive Directors
which in the opinion of the Board may affect the at a rate not exceeding one per cent per annum
independence of their judgement. of the net profits of the Company for a period of
The Directors, being experts in their respective five years commencing from April 01, 2019.
fields such as Finance (Banking, Accounts, Audits), The Directors, excluding the Executive
Technical (Civil Engineering etc.), Administration, Directors, who attend the Board meetings are
Management, Retail Business and Legal (Real
RESPONSIBILITY
entitled to sitting fees of ₹20,000 per meeting.

Estate), are able to contribute effectively to
Non-Executive Directors who are members of
CORPORATE
Company’s overall performance.

various committees of the Board are entitled to
Further, a separate meeting of Independent sitting fees of ₹10,000 per meeting which they
Directors was held on March 31, 2023. Out of attend.
four Independent Directors, three Directors
were present and due to other pre-occupations, COMMITTEES OF THE BOARD OF DIRECTORS
the fourth director was unable to attend the As required under the Companies Act, 2013
meeting. and Listing Regulations and to cater to specific
Pursuant to Section 197 of the Companies matters, the Board of Directors has constituted
Act, 2013, a Director who is neither in whole-time various committees as detailed below, which are
employment of the Company nor a Managing entrusted with such powers and functions as
Director may be paid remuneration, subject to detailed in their terms of reference.
The following are the details of the remuneration paid/payable to the Directors for financial year 2022-23:
(Amount in ₹)
Name Salary Perquisites Contribution to Commission/ Sitting Total
Provident Fund Incentive fees
Mr. Ravi PNC Menon 67,869,939 4,142,700 4,063,500 20,547,800 - 96,623,939
Mr. Jagadish Nangineni 12,500,363 37,200 21,600 20,547,800 - 33,106,963
Mr. R V S Rao - - - 2,000,000 180,000 2,180,000
Mr. Anup S Shah - - - 2,000,000 140,000 2,140,000

Ms. Srivathsala K N - - - 2,000,000 240,000 2,240,000
Mr. Raman Mangalorkar - - - 2,000,000 160,000 2,160,000
Note: The details of the nature of contract are provided in the extracts of the Nomination and Remuneration Policy. None of the
Directors are entitled to severance fee.
Directors’ Shareholding
The shareholding of the Directors of the Company as on March 31, 2023 was:
Name of the Director Category No. of equity shares %

Mr. Ravi PNC Menon Executive /Whole-time Director 3,185,930 3.36
Mr. Jagadish Nangineni Managing Director 2,400 0.00

Mr. R V S Rao Non- Executive Independent Director - -
Mr. Anup S Shah Non- Executive Independent Director 4,300 0.00
Ms. Srivathsala K N Non- Executive Independent Director - -
Mr. Raman Mangalorkar Non- Executive Independent Director - -
Total 3,192,630 3.36
Committees as Mandated Under the Companies • Review of qualifications in the Draft Audit
Act, 2013 and Listing Regulations Report and suggesting action points.
1. Audit Committee • Establishing and reviewing the scope of the
Independent Audit including the observations
2. Stakeholders’ Relationship Committee
of the auditors and a review of the quarterly,
3. Nomination, Remuneration and Governance half-yearly and annual financial statements
Committee before submission to the Board.
4. Corporate Social Responsibility Committee • The committee shall have post-audit

discussions with the Independent Auditors
5. Risk Management Committee to ascertain any areas of concern.
RESPONSIBILITY
• Establishing the scope and frequency of the
CORPORATE
Other Committees: Share Transfer Committee
internal audit, reviewing the findings of the
1. AUDIT COMMITTEE Internal Auditors and ensuring the adequacy
The Audit Committee supports the Board by of internal control systems.
overseeing the quality and integrity of the • Reviewing and monitoring the auditors’
accounting, auditing and reporting practices of independence and the performance and
the Company and its compliance with legal and effectiveness of the audit process.
regulatory requirements. It ensures objectivity, • To look into reasons for substantial defaults in
credibility and correctness of the Company’s payments to depositors, debenture holders,
financial reporting and disclosure processes, shareholders and creditors.
internal controls, risk management policies and
processes, tax policies and compliance and legal • To look into matters pertaining to the
requirements and associated matters. Director’s Responsibility Statement with
respect to compliance with accounting
As required under Section 177 of the Companies standards and accounting policies.
Act, 2013, the Audit Committee should comprise
• Appointment, remuneration and terms
of at least three Directors with Independent
of appointment of Statutory and Internal
Directors forming the majority. As per Regulation 18
Auditors and approval of payment to
of the Listing Regulations, the Committee should
Statutory Auditors for any other services
comprise of at least three members of which
rendered by them.
at least two-third should be independent. As
on March 31, 2023 the Audit Committee of the • Compliance with the stock exchange’s
Company had four members, out of which, three legal requirements concerning financial
were Independent Directors. statements to the extent applicable.
The powers, roles and terms of reference of • Reviewing the adequacy of the internal
the committee are in consonance with the audit function, if any, including the structure
of the Internal Audit Department, staffing
requirements under Section 177 of the Companies
and seniority of the officer heading the
Act, 2013 and Regulation 18 of the Listing
department, reporting structure and
Regulations.
coverage and frequency of internal audits.
Terms of Reference • Discussions with Internal Auditors on any
• Regular review of accounts, accounting significant findings and follow ups thereon.
policies, financial and risk management • Reviewing the findings of any internal
policies, disclosures, etc. investigations by the Internal Auditors into
• Review of major accounting entries based on matters where there is suspected fraud or
exercise of judgement by a management and irregularities or a failure of the internal control
review of significant adjustments arising out of systems of a material nature and reporting
the audit. the matter to the Board.
• Oversight of the listed entity’s financial • Approving the appointment of the Chief
reporting process and disclosure of its financial Financial Officer after assessing the
information to ensure that the financial candidate’s qualifications, experience and
statement is correct, sufficient and credible. background.
• The committee shall look into any related • Records of related party transactions and
party transactions, that is, the Company’s a statement of significant related party
transactions of a material nature with transactions submitted by the management.
promoters or the management, their • Management letters/letters of weaknesses in
subsidiaries, or relatives, etc., that may internal control issued by Statutory/Internal
have potential conflict with the interests of Auditors.
the Company at large, including approval
• Internal audit reports related to weaknesses
or any subsequent modifications of such
in internal controls.
transactions.
• The appointment, removal and terms of
• Scrutiny of inter-corporate loans and
RESPONSIBILITY
remuneration of the head of the internal

investments.
audit function.
CORPORATE
• Valuation of the Company’s undertakings or

• Statement of deviations:
assets, wherever necessary.
– Quarterly statements of deviations
• Evaluation of internal financial controls and
including the report of the monitoring
risk management systems.
agency, if applicable, submitted to the
• Reviewing the functioning of the vigil stock exchange in terms of Regulation
mechanism. 32(1) of the Listing Regulations.
• Monitoring the end use of funds raised – Annual statement of funds used for
through public offers and related matters. purposes other than those stated in the
• Reviewing the utilization of loans and/or offer document/prospectus/notice in
advances from/investments by the holding terms of Regulation 32(7) of the Listing
company in the subsidiary exceeding ₹100 Regulations.
crore or 10 per cent of the asset size of As required under Regulation 18 of the Listing
the subsidiary, whichever is lower including Regulations, the Chairman of the Audit Committee
exis ti n g l oa ns /a dva n ces / i nves tm e nt s is an Independent Director. All members are
existing as on the date of coming into force financially literate and have financial management
of this provision. expertise. Mr. Vighneshwar G Bhat, Company
• Such other matters as may from time to time Secretary and Compliance Officer of the Company,
be required by any statutory, contractual acted as the Secretary to the Committee.
or other regulatory requirements to be
Meetings
attended by the Audit Committee.
The quorum of the Committee is two members or
Powers of the Audit Committee one-third of the total members of the Committee,
• Investigating any activity within its terms of whichever is greater with at least two Independent
reference. Directors..
• Seeking information from any employee. The Audit Committee met five times during
Financial Year 2022-23. There was no gap of more
• Obtaining outside legal or other professional
than 120 days between two meetings.
advice.
• Securing attendance of outsiders with The dates of the meetings held during the
relevant expertise, if it considers necessary. financial year are:
Review of information by the Audit Committee Meeting strength members
• Management discussions and analysis of the of the present
Committee
financial condition and results of operations.
May 20, 2022 4 4
• Financial statements and the Draft Audit
August 09, 2022 4 3
Report, including quarterly/half-yearly
November 14, 2022 4 4
financial information.
February 07, 2023 4 4
• Reports relating to compliance with laws and
March 06, 2023 4 4
risk management.
The composition and attendance of the members of the Audit Committee are:
Audit Committee meetings

Name Category May 20, August November February March 06,
2022 09, 2022 14, 2022 07, 2023 2023
Mr. Raman Non-Executive
Chairman ü  ü ü ü
Mangalorkar* Independent
Non-Executive
Mr. RVS Rao Member ü ü ü ü ü
Independent
Non-Executive
Ms. Srivathsala KN Member ü ü ü ü ü
Independent
RESPONSIBILITY
Mr. Jagadish
Member Managing Director ü ü ü ü ü
Nangineni
CORPORATE
* Audit Committee was re-constituted at the Board Meeting held on November 14, 2022 and Mr. Raman Mangalorkar was appointed
as Chairman of the Committee w.e.f November 14, 2022 in place of Mr. RVS Rao.
Invitees Terms of Reference

The Chairman of the Board, the Chief Financial • Resolving the grievances of security holders
Officer, Head of Internal Audit and the Statutory of the listed entity including complaints
Auditors attended all the Audit Committee related to transfer/transmission of shares,
meetings held during Financial Year 2022-23 as non-receipt of Annual Report, non-receipt of
invitees. However, the Head of Internal Audit and declared dividends, issue of new/duplicate
the Statutory Auditors did not attend the meeting certificates and general meetings.
held on March 6, 2023. • Review of measures taken for effective
exercise of voting rights by shareholders.
2. STAKEHOLDERS’ RELATIONSHIP
• Review of adherence to the service standards
COMMITTEE
adopted by the listed entity with respect
The Stakeholders’ Relationship Committee of to various services being rendered by the
the Board of Directors deals with stakeholder Registrar and Share Transfer Agents.
rela t i o n s a n d s h a re /d e b e n t u re h o l d e r s ’ • Review of the various measures and initiatives
grievances including matters related to non- taken by the listed entity for reducing
receipt of the Annual Report, non-receipt of the quantum of unclaimed dividends and
the declared dividend and other such issues ensuring timely receipt of dividend warrants/
as may be raised by them from time to time. It annual reports/statutory notices by the
ensures that investor grievances/complaints/ shareholders of the Company.
queries are redressed in a timely manner and to
Compliance Officer
the satisfaction of the investors. The committee
oversees the performance of the Registrar and Mr. Vighneshwar G Bhat, Company Secretary &
Share Transfer Agents of the Company relating to Compliance Officer, is the Compliance Officer for
investor services. complying with requirements of securities laws.
In accordance with Regulation 20 of the Listing Meetings

Regulations read with Section 178 of the
The quorum for the committee’s meeting is any
Companies Act, 2013, the committee comprises
two members present for the meeting.
four Directors. The Chairman of the Committee,
Ms. Srivathsala K N, is a Non- Executive The Stakeholders’ Relationship Committee met
Independent Director. The Company Secretary three times during financial year 2022-23:
and Compliance Officer of the Company acted as Date of the Total strength No. of
the Secretary to the Committee. Meeting of the members
Committee present
The terms of reference of the committee are in May 20, 2022 4 4
consonance with the requirements mandated
August 09, 2022 4 3
under Section 178 of the Companies Act, 2013
November 14, 2022 4 4
and Regulation 20 of the Listing Regulations.
The composition and attendance of the members of the Stakeholders’ Relationship Committee are:
Stakeholders' Relationship
Committee meetings
Name Category
May 20, August 09, November
2022 2022 14, 2022
Ms. Srivathsala KN Chairperson Non-Executive Independent ü ü ü
Mr. Ravi PNC Menon* Member Executive Director ü ü ü
Mr. Jagadish Nangineni Member Managing Director ü ü ü

RESPONSIBILITY
Mr. Raman Mangalorkar Member Non-Executive Independent ü  ü

CORPORATE
* Mr. Ravi PNC Menon has been designated as Non-Executive Non-independent Director and Chairman w.e.f. April 01, 2023.
Investor Grievances and Queries

The queries received and resolved to the satisfaction of the investors during financial year 2022-23 are:
Particulars Balance as on Received during Resolved during Balance as on

April 1, 2022 the year the year March 31, 2023
SEBI SCORES Website - - - -
Registrar of Companies - - - -
Stock Exchange - - - -
Non-Receipt/Revalidation
21 21
of Dividend Warrants - -
Miscellaneous - - - -
Total - 21 21 -
3. NOMINATION, REMUNERATION AND performance of Individual Directors, recommends

GOVERNANCE COMMITTEE the remuneration policy for Directors, key
managerial personnel and other employees,
The Nomination, Remuneration and Governance
recommends to the Board all remunerations, in
Committee of the Board of Directors recommends
whatever form, payable to the senior management
the nomination of Directors, key managerial
and also deals with the Company’s governance
personnel and senior management of the
related matters.
Company and carries out an evaluation of the
The composition and attendance of the members of the Nomination, Remuneration and Governance
Committee are:
Nomination, Remuneration and

Governance Committee’s Meetings
Name Category
May 20, August 09, March 06,
2022 2022 2023
Mr. Anup S Shah Chairman Non-Executive Independent  ü ü
Mr. RVS Rao Member Non-Executive Independent ü ü ü
Mr. Ravi PNC Menon Member Executive Chairman ü ü ü
Mr. Raman Mangalorkar Member Non-Executive Independent ü  ü

Terms of Reference remuneration for the Directors, key

managerial personnel and other employees.
• To identify, review, assess, recommend and
lead the process for appointment of Executive, • To define and articulate the Company’s
Non-Executive and Independent Directors overall Corporate Governance structure
to the Board and Committees thereof and and to develop and recommend to the
to regularly review the structure, size and Board of Directors the Board’s Corporate
composition, balance of skills, knowledge Governance Guidelines.
and experience of the Board and the Board’s • To receive reports, investigate, discuss
committees and make recommendations and make recommendations with respect
to the Board or, where appropriate, to to breaches or suspected breaches of the
RESPONSIBILITY
the relevant committee with regard to any Company’s Code of Conduct.
CORPORATE
adjustments that are deemed necessary. • To review and monitor the Company’s
• To formulate criteria for evaluating policies and practices on compliance with
Independent Directors and the Board of legal and regulatory requirements and to
Directors. develop, review and monitor the Code of
Conduct and Compliance Manual applicable
• To evaluate the performance of the Chairman
to employees and Directors.
and other members of the Board on an
annual basis and to monitor and evaluate • Such other matters as may from time to time
the performance and effectiveness of the be required by any statutory, contractual
Board and the Board’s committees and the or other regulatory requirements to be
contribution of each Director to the Company. attended to by such a committee.
The committee shall also seek the views of
Executive Directors on the performance of Meetings
Non-Executive Directors. The quorum for a meeting is either two members
• Whether to extend or continue the terms of or one-third of the members of the committee,
appointment of Independent Directors based whichever is greater, including at least one
on a report of their performance evaluation. Independent Director being present for the meeting.
• To devise a policy for the Board’s diversity. The Nomination, Remuneration and Governance
Committee met three times during financial
• To identify persons who are qualified
year 2022-23:
to become directors and who may be
appointed in senior management positions Date of the Total No. of
in accordance with the criteria laid down and Meeting strength members
recommend to the Board their appointment of the present
and removal. Committee
• To recommend to the Board all remuneration, May 20, 2022 4 3

in whatever form, payable to Board members August 09, 2022 4 3
and key managerial personnel.
March 06, 2023 4 4
• To make recommendations to the Board on
the following matters: As required under Regulation 19 of the Listing
– Re-appointment of any Executive and Regulations, the committee comprises of four
Non-Executive Director at the conclusion Directors. The Chairman of the Committee,
of his/her specified term of office. Mr. Anup S Shah, is a Non-Executive
Independent Director. Mr. Vighneshwar G Bhat,
– Re-election by members of any
Company Secretary and Compliance Officer of
Director who is liable to retire by
the Company acted as the Secretary to the
rotation as per the Company’s Articles
committee.
of Association.
The Nomination and Remuneration Policy
– Any matters relating to the continuation
contains the criteria for evaluating the Board,
in office of any Director at any time.
its committees and Directors. The policy
• To formulate a policy relating to the is available on the Company’s website at
https://www.sobha.com/wp-content/uploads/2022/03/ • Monitor the Corporate Social Responsibility

amended-Nomination-and-Remuneration-Policy.pdf Policy of the Company from time to time.
and also forms a part of the Directors’ Report.
• Prepare an annual report on Corporate Social
4. CORPORATE SOCIAL RESPONSIBILITY Responsibility initiatives for inclusion in the
COMMITTEE Board’s Report.
The Corporate Social Responsibility Committee • Perform such functions as may be detailed
of the Board of Directors is entrusted with the in the Companies Act, 2013 and the relevant
responsibility of formulating and monitoring rules made thereunder and any other
the Company’s Corporate Social Responsibility applicable legislation.
RESPONSIBILITY
Policy. The Corporate Social Responsibility Policy

Meetings
CORPORATE
is available on the Company’s website at https://

www.sobha.com/wp-content/uploads/2023/06/CSR- The quorum for a meeting is any two members
Policy.pdf present for the meeting.
The role and terms of reference of the committee
The committee met four times during financial
are as per the requirements mandated under
year 2022-23:
Section 135 of the Companies Act, 2013 and the
relevant rules made thereunder.
Meeting strength members
Terms of Reference of the present
Committee
• Formulating the Corporate Social
May 20, 2022 3 2
Responsibility Policy which shall indicate the
activities to be undertaken by the Company. August 09, 2022 3 3
November 14, 2022 3 3
• Recommend the amount of expenditure to
be incurred on the aforesaid activities. February 07, 2023 3 3
The composition and attendance of the members of the Corporate Social Responsibility Committee are:
Corporate Social Responsibility

Committee meetings
Name Category
May 20, August 09, November February
2022 2022 14, 2022 07, 2023
Mr. Anup S Shah Chairman Non-Executive Independent  ü ü ü
Ms. Srivathsala KN Member Non-Executive Independent ü ü ü ü
Mr. Jagadish Nangineni Member Managing Director ü ü ü ü
The Company Secretary and Compliance Officer of the Company acted as the Secretary to the Committee.
5. RISK MANAGEMENT COMMITTEE systems (including reporting and internal

audit systems), in conjunction with existing
The Risk Management Committee of the Board
business processes and systems to manage
of Directors is entrusted with the responsibilities
the Company’s material business risks.
of establishing policies to monitor and evaluate
the Company’s risk management systems, • Receive reports from, review with and
specifically covering cyber security. provide feedback to the management on the
categories of risks that the Company faces,
Terms of Reference including but not limited to credit, market,
liquidity and operational risks, exposures
• Oversee and approve the Company’s risk
in each category, significant concentration
management, internal compliance and
within those risk categories, the metrics
control policies and procedures.
used for monitoring the exposures and the
• Oversee the design and implementation of management’s views on the acceptable and
the risk management and internal control appropriate levels of these risk exposures.
• Establish policies for the monitoring and • Recommend to the Board or the Audit
evaluation of risk management systems to Committee of the Board, as it deems
assess the effectiveness of these systems appropriate, any area within its terms of
in minimizing risks that may adversely affect reference where an action or improvement
the Company’s business. is needed.
• Oversee and monitor the management’s • Review its own performance, constitution
documentation of the material risks that and terms of reference to ensure that it
the Company faces and update them as is operating at maximum effectiveness
events change and risks shift. and recommend any changes it considers
RESPONSIBILITY
• Review reports on any material breach necessary to the Board for approval.
of risk limits and the adequacy of the
CORPORATE
proposed actions undertaken. Meetings
• In consultation with the Audit Committee, The quorum for a meeting is any two members
review and discuss the following with the present or one-third of the members whichever
management: is higher present for the meeting. The
i. Key guidelines and policies governing Company Secretary and Compliance Officer
the Company’s significant processes of the Company acted as the Secretary to the
for risk assessment and risk Committee.
management; and
The Committee met two times during financial
ii. The Company’s major risk exposures year 2022-23:
and the steps that the management
has taken to monitor and control such
exposures. Meeting strength members
of the present
• Report the proceedings of the committee
Committee
to the Board or the Audit Committee
June 06, 2022 4 4
of the Board at its regular meetings on
all matters that fall within its terms of December 03, 4 3
2022
reference.
The composition and attendance of the members of the Risk Management Committee are:
Risk Management Committee meetings

Name Category
June 06, 2022 December 03, 2022
Mr. Anup S Shah Chairman Non-Executive Independent ü 

Mr. Ravi PNC Menon Member Chairman ü ü
Mr. Jagadish Nangineni Member Managing Director ü ü
Mr. Yogesh Bansal Member Chief Financial Officer ü ü
OTHER COMMITTEES: • To look into requests for the re-materialization

of shares.
SHARE TRANSFER COMMITTEE
• To issue duplicate share certificates in lieu of
The Share Transfer Committee of the Board of original share certificates.
Directors specifically addresses matters relating to
transfer, split, consolidation, dematerialization and • To issue split share certificates as requested
re-materialization of shares. by a member.
• To take all such steps as may be necessary
Terms of Reference in connection with the transfer, transmission,
• To look into requests for transfer and splitting and issuing of duplicate share
transmission of shares. certificates in lieu of original share certificates.
Composition e. A statement of all significant transactions and

As on March 31, 2023, the Share Transfer arrangements entered by the subsidiaries.
Committee comprised Mr. Jagadish Nangineni –
CODE OF CONDUCT
Chairman, Mr. Ravi PNC Menon – Member and
Ms. Srivathsala KN – Member of the Committee. In terms of Regulation 17 of the Listing Regulations,
the Company has adopted a Code of Conduct
Meetings
for the Company’s Board of Directors and senior
The quorum for a meeting is any two members management personnel. The code is circulated to
present for the meeting. all the Directors and senior management personnel
During the year under review, the Committee and their compliance is affirmed by them for
RESPONSIBILITY
held a meeting for issuance of duplicate share 2022-23. The Code of Conduct adopted by the
CORPORATE
certificate and approval of dematerialization of Company has been posted on its website.
the share.
DISCLOSURES CONFIRMATION OF
THE CODE OF CONDUCT BY
Related Party Transactions
THE MANAGING DIRECTOR
Pursuant to Regulation 23 of the Listing
Regulations, the Board of Directors formulated This is to confirm that the Company
a Policy on Related Party Transactions has adopted a Code of Conduct for its
which can be accessed from the Company’s Board members and senior management
website a t https://www.sobha.com/wp-content/ personnel and the same is available on the
uploads/2022/08/RPT-policy.pdf Company’s website.
Disclosures of related party transactions is part
I confirm that the Company has, in respect
of the Notes to Accounts section of the Annual
of the financial year ended March 31, 2023,
Report.
received from the senior management
During the year under review, there were no personnel of the Company and the
materially significant related party transactions members of the Board, a declaration of
which may have potential conflict with the compliance with the Code of Conduct as
interests of the Company at large. applicable to them.
Subsidiary Monitoring Framework Sd/-

The Company does not have any material Jagadish Nangineni
subsidiary as defined under the Listing Managing Director
Regulations and the Material Subsidiary Policy Place : Bangalore
of the Company. Date : May 29, 2023
The Company monitors the performance of
subsidiary companies, inter alia, by the following
Code of Conduct for Prevention of Insider
means: Trading
a. Financial statements, in particular investments The Company has adopted a Code of Conduct
made by the subsidiaries are reviewed by for Prevention of Insider Trading in terms of SEBI
the Company’s Audit Committee. (Prohibition of Insider Trading) Regulations, 2015.
This code is applicable to all Promoters, Directors,
b. Review of annual business plans and
Key Managerial Personnel and Designated
budgets.
Persons. The code is available on the Company’s
c. Review of budget versus actuals and an website at https://www.sobha.com/wp-content/
analysis of the variance. uploads/2022/02/codeofconduct_20220211.pdf
d. All the minutes of Board meetings of the As required under SEBI Insider Trading Regulations,
subsidiaries are placed before the Company’s the Board of Directors has formulated a
Board regularly. structured digital database for tracking
compliance of insider trading activities. The Directors are bifurcated into:

database covers all the designated persons
I. Initial or Preliminary
and is hosted on the Company’s server.
During their appointment, Independent
Vigil Mechanism Directors are apprised of their roles, duties
A comprehensive vigil mechanism to ensure and responsibilities in the Company. A detailed
ethical behaviour in all its business activities and letter containing the Company’s expectations,
a system for employees to report any illegal, the rights, powers, responsibilities and liabilities
unethical behaviour, suspected fraud or violation of the Independent Directors and the policies
of laws, rules and regulations or conduct of the Company are issued to the Independent
RESPONSIBILITY
to the Chief Vigilance Officer and the Audit Directors during their appointment. The
Committee of the Board of Directors is in place Independent Directors are required to adhere
CORPORATE
in the Company. The mechanism adequately to these.
insulates whistle blowers against victimization or
discriminatory practices. II. Continual or Ongoing
Updates on the affairs of the Company, including
All such reports are taken up for consideration at
operational and financial details are provided to
appropriate intervals depending on the gravity of
the Independent Directors on a quarterly basis.
the matter reported so that adequate measures
Further, immediate updates on significant issues, if
can be initiated in right earnest at appropriate
any, are provided to all the Directors immediately
levels. The Company further confirms that no
on the occurrence of such an event. Periodical
personnel have been denied access to the Audit
presentations are made to the Independent
Committee.
Directors on the Company’s strategies and
business plans. The Independent Directors are
FAMILIARIZATION PROGRAMMES
also regularly informed about material regulatory
The familiarization programmes for Independent and statutory updates affecting the Company.
As required under Schedule V of the Listing Regulations, the skills/expertise/competence of Board

members are provided below:
Name Designation Category Skills/expertise/competence
Mr. Ravi PNC Chairman Executive Expertise in construction and real estate
Menon* development along with product delivery,
project execution, quality control, technology
advancement, process and information
technology and customer satisfaction.
Mr. Jagadish Managing Director Executive Expertise in real estate, consulting and
Nangineni technology.
Mr. R V S Rao Independent Non- An expert in banking and finance.

Director Executive
Mr. Anup S Shah Independent Non- Expertise in law, specifically real estate laws.
Director Executive
Ms. Srivathsala K N Independent Non- Expertise in strategic business advisory,

Director Executive financial planning, active angel investment,
start-up business.
Mr. Raman Independent Non- Expertise in strategic, operational, retail

Mangalorkar Director Executive business and organization related matters.
* Mr. Ravi PNC Menon was re-designated as Non–executive Non-independent director and Chairman w.e.f. April 01, 2023.
Detailed skills/experience/expertise of each of the Directors are provided elsewhere in the Annual Report.
Details of the familiarization programmes imparted to the Independent Directors are given on the
Company’s website at https://www.sobha.com/wp-content/uploads/2023/02/Familiarization-Programme.pdf
COMPLIANCES payable to the Statutory Auditors of the Company

is as follows:
In general, there was no instance of non-
compliance with any legal requirements on any Name Amount (₹ in million)
matter relating to the capital market nor was any
restriction imposed by any stock exchange or
SEBI during the last three years. Audit fees [includes fees for 14.16
limited reviews]
The Company complied with the applicable
Out of pocket expenses 1.39
provisions of the Regulations, Acts, Rules,
Notifications and Circulars related to stock Other services 1.15
RESPONSIBILITY
exchanges/SEBI/other statutory authorities on all Total 16.70

CORPORATE
matters related to capital markets. There are no

penalties or strictures imposed on the Company DISCLOSURE UNDER THE SEXUAL
by the stock exchanges/SEBI/any other statutory HARASSMENT OF WOMEN AT THE
authority relating to the above. WORKPLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013:
Management Discussion and Analysis Report
The Management Discussion and Analysis Report The Company has always believed in providing
titled ‘Management Report’ forms a part of the a safe and harassment-free workplace for every
Annual Report. It includes, among other things, a individual working on the Company’s premises
discussion on the following: through various interventions and practices.
The Company always endeavours to create
• Industry structure and developments and provide an environment that is free from
• Risks and concerns discrimination and harassment including sexual
harassment.
• Discussion on financial performance with
respect to operational performance The following is a summary of sexual harassment
complaints received and disposed of during
• Human resources
financial year 2022-23:
• Outlook
a. Number of complaints filed during the
Corporate Governance Compliance Certificate financial year: NIL
The Corporate Governance Compliance b. Number of complaints disposed of during the
Certificate for the year ended March 31, 2023, financial year: NIL
issued by Mr. Nagendra D. Rao, Practicing
c. Number of complaints pending as at the end
Company Secretary in terms of the Listing
of the financial year: NIL
Regulations is annexed to the Directors’ Report
and forms a part of the Annual Report.
COMPLIANCE OF NON-MANDATORY
Secretarial Audit Report REQUIREMENTS
The Secretarial Audit Report for the year ended Part-E of Schedule-II of the Listing Regulations
March 31, 2023, issued by Mr. Nagendra D. Rao, contains certain non-mandatory requirements
Practicing Company Secretary in accordance with that a company may implement at its discretion.
the provisions of Section 204 of the Companies Disclosures on compliance of mandatory
Act, 2013 forms a part of the Annual Report. requirements and adoption (and compliance)/non-
adoption of the non-mandatory requirements is
CEO/CFO Certificate made in the Corporate Governance Report of the
The Chief Executive Officer (CEO)/Chief Financial Annual Report. The status of compliance of non-
Officer (CFO) certification in terms of the Listing mandatory requirements is as follows:
Regulations forms part of the Annual Report.
A. The Board
Remuneration to Statutory Auditors The details required to be provided with respect to
During financial year 2022-23, the fees paid/ the Non-executive Chairman are not applicable as
the Chairman of the Board was Executive Chairman D. Separate Posts of Chairman and CEO
till the financial year ended March 31, 2023.
The Company has appointed separate persons to
B. Shareholders’ Rights the posts of Chairman and Managing Director.
The half-yearly declaration of financial performance E. Reporting by the Internal Auditor
together with the summary of significant events
The Internal Auditor reports to the Audit
in the last six months are not individually provided
to the shareholders. However, information on Committee of the Board of Directors of the
financial and business performance is provided in Company. The Audit Committee is empowered to
the ‘Investors section’ of the Company’s website, hold separate meetings and discussions with the
RESPONSIBILITY
www.sobha.com on a quarterly basis. Internal Auditor.
CORPORATE
C. Modified opinion(s) in the Audit Report F. Compliance of regulations 17 to 27
The audited financial statements of the Company The Company complied with Corporate
for Financial Year 2022-23 do not contain any Governance requirements specified in
qualifications and the Statutory Auditors Report/ Regulations 17 to 27 and Clauses (b) to (i) of
Secretarial Audit Report does not contain Sub-regulation (2) of Regulation 46 of SEBI
any adverse remarks. The Audit Reports are (Listing Obligations and Disclosure Requirements)
unmodified reports. Regulations, 2015.
COMPANY INFORMATION
Annual General Meeting

The details of the Annual General Meetings convened during the last three years are as follows:
Financial Date and Venue Special Resolutions

Year Time
2021-2022 August Through Video 1. Issue of Non-Convertible Debentures

10, 2022, Conferencing (VC)/Other on a private placement basis.
at 3:00 pm Audio-Visual Means (OAVM)

2. Re-appointment of Mr. Ravi PNC
Menon (DIN: 02070036) as Whole-time
Director designated as Chairman of the
Company.

2. Amendment to the Memorandum of
Association of the Company.
Extraordinary General Meeting

No Extraordinary General meeting was held during financial years 2020-21, 2021-22 and 2022-23.
Postal Ballot
Pursuant to Section 110 of the Companies Act, 2013, read with the Rule 22 of the Companies (Management
and Administration) Rules, 2014, the Company had passed three resolutions through Postal Ballot by
Electronic Voting during the financial years 2022-23 on June 9, 2022.
Resolutions passed on June 09, 2022.

• Voting Pattern of the resolution passed through Postal Ballot are as follows:
A. Appointment of Mr. Jagadish Nangineni (DIN: 01871780) as a Director of the Company (Ordinary
Resolution):
Particulars Physical E-voting Total

No. of shares held - 94,845,853 94,845,853
Total number of votes Polled - 83,007,245 83,007,245
Total number of valid votes - 83,007,245 83,007,245
RESPONSIBILITY
Votes cast in favor of the Resolution - 65,315,958 65,315,958

CORPORATE
Votes cast against the Resolution - 17,691,287 17,691,287
B. Appointment of Mr. Jagadish Nangineni (DIN: 01871780) as a Whole-time Director designated as

Managing Director (Special Resolution):

No. of shares held - 94,845,853 94,845,853
Votes cast against the Resolution - 17,620,885 17,620,885
C. Appointment of Mr. Raman Mangalorkar (DIN:01866884) as a Non-Executive Independent

Director (Special Resolution):

No. of shares held - 94,845,853 94,845,853
Votes cast against the Resolution - 2,475 2,475
MEANS OF COMMUNICATION
Website Appropriate information relating to the Company and its performance, including
financial results, press releases pertaining to important developments,
performance updates and corporate presentations are regularly posted on the
Company’s website www.sobha.com
The ‘Investors section’ provides up-to-date information to shareholders on
matters such as the shareholding pattern, outcome of Board and general
meetings, stock performance, unclaimed equity shares, unclaimed dividends
and investor presentations.
Financial Results Quarterly, half-yearly and annual financial results are published in an English
newspaper (Business Line) and a regional language newspaper (Prajavani).
NEAPS Stock exchange intimations are electronically submitted to NSE through the
NSE Electronic Application Processing System (NEAPS).
BSE Listing Centre Stock exchange intimations are electronically submitted to BSE through the
BSE Listing Centre.
Annual Report The Chairman’s Message, Directors’ Report, the Management Discussion
and Analysis Report and the Corporate Governance Report form part of the
Company’s Annual Report and are available on the Company’s website.
Investor Servicing The contact details for investor queries are given elsewhere in this
Report. The Company has a designated e-mail ID, investors@sobha.com for
investor servicing.
Stakeholder An online survey is available on the Company’s website for addressing
Satisfaction Survey stakeholders’ grievances and for their feedback on the efficacy of investor
services.
RESPONSIBILITY
List of all Credit Term loans IND AA-/Stable
Ratings obtained
CORPORATE
by the entity along Fund-based Working Capital limits INDAA-/Stable/IND A1+
with revisions, if any,
thereto during the
Non-fund-based Working Capital limits INDAA-/Stable/IND A1+
relevant financial year Non-Convertible Debentures WD (Withdrawn)
RECOMMENDATION OF DIVIDEND AND DIVIDEND PAYMENT DATE
The Board of Directors has recommended a dividend of ₹3.00 per equity share of ₹10 which is subject to
the approval of the members in the ensuing Annual General meeting.
In terms of Section 123 of the Companies Act, 2013, the dividend amount will be deposited in a separate
bank account within 5 days from the date of the Annual General meeting and will be paid to the shareholders
within the prescribed time.
DIVIDEND HISTORY
The dividends declared by the Company in the previous seven years are:
Financial year Rate of dividend (%) Dividend per equity share of ₹10 each
2015-16 20.00 2.00
2016-17* 25.00 2.50
2017-18** 70.00 7.00
2018-19 70.00 7.00
2019-20 70.00 7.00
2020-21 35.00 3.50
2021-22 30.00 3.00
* A buy-back of 1,759,192 equity shares at ₹330 per share amounting to ₹58.05 crore was carried out during financial year 2016-17.
** A buy-back of 1,458,823 equity shares at ₹425 per share amounting to ₹62.00 crore was carried out during financial year 2017-18.
OTHER INFORMATION
Listing fee The Company paid annual listing fees for Financial Year 2023-24 to BSE Limited and
the National Stock Exchange of India Limited.
Listing on stock The equity shares of the Company are listed on the National Stock Exchange of India
exchanges Limited (NSE) and BSE Limited (BSE).
Reconciliation of the In terms of Regulation 76 of the SEBI (Depositories and Participants) Regulations,
share capital audit 2018, reconciliation of the Share Capital Audit is conducted every quarter by
Mr. Natesh K., Practicing Company Secretary to reconcile the total admitted capital
with the National Securities Depository Limited (NSDL), the Central Depository
Services (India) Limited (CDSL) and physically with the shareholders and the total
issued and listed capital. The report is forwarded to the stock exchanges within the
prescribed timeline, where the shares of the Company are listed.
Outstanding GDRs/ADRs/ As on March 31, 2023, the Company did not have any outstanding GDRs/ADRs/
Warrants/Convertible Warrants/Convertible Instruments.
Instruments and their
impact on equity
Plant locations of the Glazing and Metal Division:
divisions
• Plot No. 10, Bommasandra Industrial Area, Bommasandra Jigani Link Road, Jigani
Post, Opposite to Biocon, KIADB Industrial Area, Anekal Taluk, Bangalore – 560105.
• Plot No. # G-6, SIPCOT Industrial Park, 2nd Cross Road, Irungulam - Mambakkam,
Sri Perumbudur, Kancheepuram Dist., Chennai – 602 105.
• Plot No. - 345, Phase-V, Sector-56, HSIIDC, Kundli Industrial Area, Dist.-Sonipat,
RESPONSIBILITY
Haryana-131 028.
CORPORATE
Interiors Division:
• Plot No. 9, KIADB Industrial Area, Jigani-Bommasandra Link Road, Hennagara (Post),
Anekal Taluk, Bommasandra, Bangalore– 560105.
• Plot No. A-915 R I I CO I ndustrial Area B hiwadi, Tehsil Ti jara Distt. Alwar,
Rajasthan -301019.
Concrete Products Division:
• Plot No. # 329, Bommasandra Jigani Link Road, Industrial Area, Jigani, Anekal Taluk,
Bangalore – 560 105.
• Sector 106, 108, 109, Babupur, Near New Palam Vihar, Gurugam, Haryana – 122 017.
SOBHA Mattress Division:
• Plot No. 9, KIADB Industrial Area, Jigani Bommasandra Link Road, Bommasandra,
Hennagara Post, Anekal Taluk, Bangalore– 560 105.
STOCK CODE DETAILS
Particulars International Securities National Stock Exchange of BSE Limited

Identification Number India Limited
Company | Stock Code INE671H01015 SOBHA 532784
The Bloomberg code for the Company is SOBHA:IN.

The Reuters code is SOBH.NS (NSE) and SOBH.BO (BSE).
STOCK PRICE DATA
National Stock Exchange of India Limited BSE Limited (BSE)

(NSE)
High Low Average Volume High Low Average Volume
No. No.
April-22 746.95 628.15 691.06 7,030,887 744.85 629.00 691.54 570,489

May-22 656.00 482.65 545.72 10,379,228 655.15 481.95 546.08 704,835
June-22 585.00 480.20 531.63 5,639,179 584.80 480.35 531.12 324,409
July-22 717.80 538.00 651.90 16,455,401 718.95 537.40 651.48 809,843
August-22 735.00 670.50 699.65 5,312,911 734.90 670.05 699.55 470,752
September-22 750.85 631.10 690.37 5,673,909 750.00 631.20 690.46 479,295
October-22 667.80 618.05 639.61 2,097,927 668.00 618.30 639.38 218,930
November-22 657.00 607.00 625.31 3,075,602 655.80 604.00 625.45 160,405
December-22 679.80 522.00 598.41 5,450,285 679.00 527.50 598.55 385,989
National Stock Exchange of India Limited BSE Limited (BSE)

(NSE)
High Low Average Volume High Low Average Volume
No. No.
January-23 622.80 564.10 588.96 3,491,980 623.25 562.05 588.70 429,240

February-23 613.65 560.20 580.45 1,696,207 612.70 560.05 580.78 123,114
March-23 584.90 412.10 513.97 19,053,070 585.40 412.40 513.79 1,057,921
The Company’s share price performance vis-à-vis broad-based indices during financial year 2022-23
RESPONSIBILITY
forms part of the Annual Report.
CORPORATE
SHAREHOLDING PATTERN
Distribution of Shareholding as on March 31, 2023:
Range of equity No. of % of total Number of % of Issued

shares held shareholders shareholders shares capital
1 – 500 91,695 97.31 4,026,119 4.25
501 – 1,000 1,345 1.43 1,014,092 1.07
1,001 – 2,000 614 0.65 902,583 0.95
2,001 – 3,000 176 0.19 449,327 0.48
3,001 – 4,000 80 0.08 286,248 0.30
4,001 – 5,000 61 0.06 287,240 0.30
5,001 – 10,000 95 0.10 685,308 0.72
10,001 and above 167 0.18 87,194,936 91.93
Total 94,233 100.00 94,845,853 100.00
SHARE CAPITAL HISTORY
Date of No. of Face Issue Nature of Reasons for Allotment Cumulative Cumulative
allotment Equity Value Price Consid- No. of paid-up
Shares (₹) (₹) eration Equity share capital
Shares (₹)
August Subscribers to
30 10 10 Cash 30 300
07, 1995 memorandum
February
1,174,729 10 10 Cash Further allotment 1,174,759 11,747,590
11, 1998
March
25, 1998
October
16, 1998
December
855,000 10 10 Cash Further allotment 5,964,582 59,645,820
22, 1998
March
25, 1999
July 11,
2002
June Bonus issue in the ratio
42,280,960 10 10 - 63,421,440 634,214,400
28, 2006 of 2:1
Preferential allotment-pre-
October
97,245 10 617 Cash IPO placement to Bennett, 63,518,685 635,186,850
28, 2006*
Coleman & Co. Limited
Preferential allotment pre-

October IPO placement to Kotak
486,223 10 617 Cash 64,004,908 640,049,080
28, 2006** Mahindra Private Equity
Trustee Limited
8,014,705 equity shares
were allotted to the public
and 882,120 equity shares
December
8,896,825 10 640 Cash were allotted pursuant 72,901,733 729,017,330
12, 2006***
to employee reservation
pursuant to the initial
public offering
RESPONSIBILITY
July Qualified Institutional

25,162,135 10 209.40 Cash 98,063,868 980,638,680
03, 2009**** Placement
CORPORATE
July 21,
1,759,192 10 330.00 Cash Buyback 96,304,676 963,046,760
2016$
October 12,
1,458,823 10 425.00 Cash Buyback 94,845,853 948,458,530
2017^
* Pursuant to a Shareholders’ Agreement dated October 25, 2006, 97,245 equity shares were issued and allotted to Bennett,
Coleman & Co. Limited, at a price of ₹617 per equity share including a share premium of ₹607 per equity share, aggregating ₹60
million.
** Pursuant to a subscription agreement dated October 26, 2006, 486,223 equity shares issued and allotted to Kotak at a price of
₹617 per equity share including a share premium of ₹607 per equity share, aggregating ₹299.99 million.
*** 8,896,825 equity shares of ₹10 each were issued as fully paid-up shares.
**** 25,162,135 equity shares of ₹10 each were issued as fully paid-up shares by way of Qualified Institutional Placement.
$ 1,759,192 equity shares of ₹10 each were bought back from the shareholders at a price of ₹330 per share.
^ 1,458,823 equity shares of ₹10 each were bought back from the shareholders at a price of ₹425 per share.
SHARES HELD IN PHYSICAL AND DEMATERIALIZED FORM
As on March 31, 2023, 99.99 per cent of the Company’s shares were held in dematerialized form and the
rest in physical form. The following is a break-up of the equity shares held in electronic and physical forms:
Description No. of shareholders No. of shares % of equity

NSDL 38,922 81,258,289 86.61
CDSL 55,306 13,587,536 13.39
Physical 5 28 0.00
Total 94,233 94,845,853 100.00
ADDITIONAL SHAREHOLDER INFORMATION
Unclaimed Dividend
Pursuant to Section 124 of the Companies Act, 2013, the amount lying unpaid or unclaimed in the Unpaid
Dividend Account of the Company for a period of seven years from the date of transfer of the dividend
amount to the Unpaid Dividend Account shall be transferred by the Company to the Investor Education
and Protection Fund established by the Central Government.
During financial year 2022-23, the Company was required to transfer to the Investor Education and
Protection Fund, the dividend declared in the Annual General meeting held on July 15, 2015. Accordingly,
the Company transferred an amount of ₹471,037 (Rupees four lakh seventy one thousand thirty seven
only) to the Investor Education and Protection Fund.
The details of the unclaimed dividends along with the names and addresses of the shareholders were
published on the Company’s website. Individual communication to each of the shareholders who had not
claimed the dividend continuously for the previous seven years was sent to their registered addresses.
The said details were also uploaded on the website of the Ministry of Corporate Affairs.
The following table provides the dates of declaration of dividend after the shares were listed and the
corresponding date when unclaimed dividends are due to be transferred to the Central Government:
Financial Date of declaration Last date for claiming Unclaimed amount as Due date for transfer
year of dividend unpaid dividend on March 31, 2023 (₹) to IEPF Fund
2015-16 August 03, 2016 September 04, 2023 144,358.00 October 03, 2023
RESPONSIBILITY
CORPORATE
Members can claim the unpaid dividend from the Company before transfer to the Investor Education and
Protection Fund. Members who have so far not encashed the dividend warrant(s) are requested to make
their claim to the Secretarial Department at the Registered and Corporate Office of the Company or send
an e-mail to investors@sobha.com
UNCLAIMED EQUITY SHARES
In terms of Regulation 39(4) of the Listing Regulations, unclaimed equity shares shall be transferred to
an ‘Unclaimed Suspense Account’ opened by the Company for the purpose and the equity shares lying
therein shall be dematerialized with a Depository Participant. The voting rights of such equity shares
remain frozen till the rightful owner claims the shares.
Accordingly, the Company has opened a Demat account with Depository Participant Geojit BNP Paribas
Financial Services Limited. The following table provides details of the equity shares lying in the Unclaimed
Suspense Account:
Financial Aggregate no. of Number of shareholders Number of Aggregate no. of

year shareholders and who approached the shareholders to shareholders and
outstanding equity Company for transfer of whom equity outstanding equity
shares as on equity shares during the shares were shares as on
April 01, 2022 year transferred March 31, 2023
83 shareholders 83 shareholders and
2022-23 and 841 outstanding 841 outstanding equity
- -
equity shares shares
Allottees who have not claimed their equity shares are requested to make their claim to the
Secretarial Department at the Registered and Corporate Office of the Company or send an e-mail
to investors@sobha.com
Pursuant to the notification issued by Ministry of Corporate Affairs, Government of India, the Company
has transferred the following equity shares to the designated IEPF’s Demat account:
Base year Number of shareholders No. of equity shares transferred to IEPF’s Demat account
2009-10 175 2,470
2010-11 64 1,550
2011-12 62 1,413
2012-13 45 2,574
2013-14 58 827
2014-15 133 3,087
GENERAL SHAREHOLDER INFORMATION
Corporate Identification Number L45201KA1995PLC018475
Registered and Corporate Office SOBHA Limited, ‘SOBHA’, Sarjapur–Marathahalli Outer Ring Road
(ORR), Devarabisanahalli, Bellandur Post, Bangalore –560 103
Date and Venue of the Annual Date: August 08, 2023

General Meeting (AGM)
Time: 3:00 PM
RESPONSIBILITY
Venue: Pursuant to Circular Nos 14/2020, 17/2020, 20/2020 dated

April 8, 2020, April 13, 2020, May 5, 2020, Circular No. January 13,
CORPORATE
2021 and Circular 10/2022 dated 28th December 2022, issued by

the Ministry of Corporate Affairs (MCA) and Circular No. SEBI/HO/
CFD/CMD1/CIR/P/2020/79 dated May 12, 2020 SEBI/HO/CFD/
CMD2/CIR/P/2021/11SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated
January 15, 2021, also vide its Circular No. SEBI/HO/CFD/PoD-2/P/
CIR/2023/4 dated January 05, 2023, issued by the Securities and
Exchange Board of India (hereinafter collectively referred to as
‘Circulars’), the Annual General Meeting of the Company (“AGM”) is
convened through Video Conferencing/Other Audio Visual Means
(VC/OAVM).and as such, there is no requirement to have venue for
the AGM. For details, please refer to the Notice of AGM
Financial Year The financial year of the Company starts from April 01 of every
year and ends on March 31 of the following year.
Book Closure The Record date is Friday, July 28, 2023 and the date of the book
closure is Saturday, July 29, 2023.
Dividend Payment Date If approved by the shareholders in the ensuing Annual General
meeting, the dividend will be paid on or before September 06, 2023.
Declaration of Financial Results for For quarter ending June 30, 2022 – August 09, 2022.
Financial Year 2022-23
For quarter ending September 30, 2022 – November 14, 2022.
For quarter ending December 31, 2022 – February 07, 2023.
For year ending March 31, 2023 – May 29, 2023.
Tentative Dates for Declaration of For quarter ending June 30, 2023 – Second week of August 2023.
Financial Results for 2023-24
For quarter ending September 30, 2023 – Second week of
November 2023.
For quarter ending December 31, 2023 – Second week of February
2024.
For the year ending March 31, 2024 –Third week of May 2024.
Correspondence Details of Various Authorities
The Securities and Exchange Board Securities and Exchange Board of India
of India SEBI Bhavan, Plot No.C4-A, ‘G’ Block, Bandra Kurla Complex,
Bandra (East), Mumbai - 400051
Tel: 1800 266 7575
Website: www.sebi.gov.in | www.scores.gov.in
National Stock Exchange of India National Stock Exchange of India Limited

Limited Exchange Plaza, Plot No. C/1, G Block, Bandra Kurla Complex,
Bandra (East), Mumbai – 400 051
Tel: +91 22 2659 8100 - 8114
Website: www.nseindia.com
BSE Limited BSE Limited
Floor 25, P.J Towers, Dalal Street, Mumbai – 400 001
Tel: +91 22 2272 1233/4
Website: www.bseindia.com
National Securities Depository National Securities Depository Limited
RESPONSIBILITY
Limited 4th Floor, “A” Wing, Trade World, Kamala Mills Compound, Senapati
CORPORATE
Bapat Marg, Lower Parel, Mumbai – 400 013
Tel: +91 22 2499 4200
Website: www.nsdl.co.in
Central Depository Services (India) Central Depository Services (India) Limited
Limited 17th floor, P J Towers, Dalal Street, Fort, Mumbai – 400 001
Tel: +91 2272 8658 | +91 2272 8645
Website: www.cdslindia.com
R&T Agents M/s Link Intime India Private Limited
C-101,247 Park, L B S Marg, Vikhroli West, Mumbai-400083.
Tel: 022-49186000
Fax Number:022-49186060
Email: rnt.helpdesk@linkintime.co.in
Share Transfer System

Share transfers will be registered and returned within a period of 15 days from the date of receipt, subject
to the documents being valid and complete in all respects. Share transfers and other communication
regarding share certificates and change of address etc., may be addressed to the R&T Agents as mentioned
earlier.
Commodity price risk or foreign exchange risk and hedging activities

The Company had no exposure in commodities and hence the disclosure is not required to be given.
For a detailed discussion on foreign exchange risk and hedging activities, please refer to Management
Discussion and Analysis Report.
Nomination
Pursuant to the provisions of Section 72 of the Companies Act, 2013 read with Companies (Share Capital and
Debentures) Rules, 2014, members may file nominations in respect of their shareholdings/debenture holdings:
i. For shares held in physical form, members are requested to give the nomination request to Registrar
and Share Transfer Agents of the Company.
ii. For shares held in a dematerialized form, members are requested to give the nomination request to
their respective Depository Participants directly.
E-voting
Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with the Companies (Management
and Administration) Rules, 2014, the Company provides a remote e-voting facility to the shareholders. The
Company has availed the services of the Link Intime India Private Limited for providing the necessary
e-voting platform to members of the Company for the ensuing Annual General meeting.
For detailed information on the e-voting procedure, members may please refer to the Notes to the Notice
of the Annual General meeting.
Website Disclosures
Corporate Social
Responsibility https://www.sobha.com/wp-content/uploads/2023/06/CSR-Policy.pdf
Policy
Vigil Mechanism https://www.sobha.com/wp-content/uploads/2020/10/153630159420180907.pdf
Code of Conduct https://www.sobha.com/wp-content/uploads/2023/02/SOBHA-CODE-OF-CONDUCT.pdf
Nomination and
Remuneration https://www.sobha.com/wp-content/uploads/2022/03/amended-Nomination-and-Remuneration-Policy.pdf
RESPONSIBILITY
Policy
Code of Conduct
CORPORATE
for Prevention of https://www.sobha.com/wp-content/uploads/2022/02/codeofconduct_20220211.pdf

Insider Trading
Material Subsidiary
https://www.sobha.com/wp-content/uploads/2022/11/Material-subsidiary-policy.pdf
Policy
Policy on Related
https://www.sobha.com/wp-content/uploads/2022/08/RPT-policy.pdf
Party Transactions
Policy on
Determination
of Materiality https://www.sobha.com/wp-content/uploads/2021/09/153630154920180907.pdf
of Events and
Information
Policy on
Preservation of https://www.sobha.com/wp-content/uploads/2020/10/153630157420180907.pdf
Documents
Terms and
Conditions of
Appointment https://www.sobha.com/wp-content/uploads/2020/10/153630451520180907.pdf
of Independent
Directors
Composition
of Various
https://www.sobha.com/wp-content/uploads/2022/11/Composition-of-Committees.pdf
Committees of the
Board of Directors
Dividend
https://www.sobha.com/wp-content/uploads/2020/10/153630151720180907.pdf
Distribution Policy
ADDRESS FOR CORRESPONDENCE
For any queries, please write to: For queries relating to financial statements,
please write to:
Mr. Vighneshwar G Bhat
Company Secretary & Compliance Officer Mr. Yogesh Bansal
SOBHA Limited Chief Financial Officer
‘SOBHA’, Sarjapur – Marathahalli Outer Ring Road SOBHA Limited
(ORR), Devarabisanahalli, ‘SOBHA’, Sarjapur – Marathahalli Outer Ring Road
Bellandur Post, Bangalore– 560 103 (ORR), Devarabisanahalli,
Board Line: +91 80 4932 0000 | Extension: 6024 Bellandur Post, Bangalore– 560 103
E-mail: investors@sobha.com Telephone: +91 80 4932 0000 | Extension: 5026
E-mail: investors@sobha.com
SHARE PRICE PERFORMANCE

20
1 Year Chart - Sobha vs NIFTY Sobha NIFTY
10
% Change in Closing Price
-10
-20
-30
-40
RESPONSIBILITY
-50
CORPORATE
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
1 Year Chart - Sobha vs NSE Realty Sobha NSE Reality

5
0
-5
-10
-15
-20
-25
-30
-35
-40
-45
20 1 Year Chart - Sobha v Sensex Sobha Sensex

10
-10
-20
-30
-40
-50
1 Year Chart - Sobha vs BSE Realty Sobha BSE Realty

5
0
-5
-10
-15
-20
-25
-30
-35
-40
-45
CATEGORY WISE DISTRIBUTION OF SHAREHOLDERS AS ON MARCH 31, 2023

CATEGORY WISE DISTRIBUTION OF SHAREHOLDERS AS ON MARCH 31, 2023
Promoter and Promoter Group : 52.26%

RESPONSIBILITY
CORPORATE
Foreign Portfolio Investor : 13.76%
Mutual Funds : 11.25%
Corporate Bodies : 11.34%
Others : 11.39%
SHAREHOLDING MOVEMENTS
Particulars No. of Shares as on % No. of Shares as on % Change

March 31, 2023 March 31, 2022 in %
Promoter and Promoter Group 49,565,693 52.26 49,307,693 51.99 0.27
FPI 13,048,253 13.76 15,329,875 16.16 -2.41
Mutual Funds 10,667,123 11.25 11,027,306 11.63 -0.38
Corporate Bodies 10,752,343 11.34 10,143,233 10.69 0.64
Financial Institutions 170 0.00 170 0.00 0.00
Others 10,812,271 11.39 9,037,576 9.53 1.87
Total 94,845,853 100.00 94,845,853 100.00
MARKET CAPITALISATION
80000
70000
60000
50000
₹ in millions
40000
30000
20000
10000
ANNEXURE A
CERTIFICATE PURSUANT TO REGULATION 34(3) AND SCHEDULE V
PARA C CLAUSE (10)(I) OF THE SEBI (LISTING OBLIGATIONS AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
To,
RESPONSIBILITY
The Members,
Sobha Limited
CORPORATE
SOBHA, Sarjapur-Marathahalli Outer Ring Road (ORR)
I have examined the relevant registers, records, forms and returns filed, notices and disclosures
received from the Directors, minutes books, other books and papers of SOBHA LIMITED having CIN
L45201KA1995PLC018475 and having registered office at 'SOBHA', Sarjapur - Marathahalli Outer Ring Road
(ORR) Devarabisanahalli, Bellandur Post, Bangalore 560103 (hereinafter referred to as ‘the Company’),
produced before me by the Company for the purpose of issuing this Certificate, in accordance with
Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as ‘the
LODR’), as amended from time to time.
In my opinion and to the best of my information and according to the verifications (including DIN
status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the
Company, its officers and Management Representation Letter of even date, I hereby certify that none
of the Directors who were on the Board of the Company as on 31st March, 2023 have been debarred
or disqualified from being appointed or continuing as Directors of the Companies by the Securities and
Exchange Board of India, Ministry of Corporate Affairs, or any other Statutory Authority.
Ensuring the eligibility of every Director on the Board is the responsibility of the management of the
Company. Our responsibility is to express an opinion on these based on our verification.
I have conducted necessary verification as much as is appropriate to obtain reasonable assurance about
the eligibility or disqualification of the Directors on the Board of the Company.
This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
Sd/-
Nagendra D. Rao
Peer Reviewed Unit
Date : May 29, 2023 UDIN: F005553E000403137
MANAGEMENT REPORT
MARKETS AND OPERATING ENVIRONMENT
MACROECONOMIC OVERVIEW strengthened their balance sheets, to recover
losses from previous Capex investments. They are
Financial Year 2023 witnessed a mix of economic
now ready to embark on fresh capacity building to
trends and conditions across different regions
fuel their next growth cycle. Government focus on
globally. The major advanced economies
rapidly building physical and digital infrastructure,
experienced varying degrees of performance.
aided by increased budget allocations will lead to
The United States witnessed moderate 2.1%
higher wealth generation and financial inclusion,
growth in 2022, despite raising their interest
going forward. The government's focus on
rates from 0.25% in March-2022 to 5.25% in May-
2023 to combat inflationary pressures. Sudden attracting foreign capital through initiatives such
rapid increase in repo rates has led to building as "Make in India", “China Plus One strategy” and
up of some stress in their financial system, even “ease of doing business” reforms continued to be
witnessed a few banks collapse since beginning relevant.
of 2023. Repercussions of such rapid monetary FY 2023 witnessed a mixed FDI flow into India.
tightening may not be completely done away While some sectors attracted significant
with. The Eurozone, on the other hand, faced with investments, others faced challenges. Global
challenges due to supply chain disruptions caused
MANAGEMENT
financial market trends also influenced India's

by geopolitical situation and lingering effects of domestic markets during FY 2023. Volatility in
the pandemic, managed to grow at 3.5%. Japan international stock markets, changes in interest
REPORT
struggled with a slow recovery and deflationary rates by major central banks and shifts in investor
pressures and grew by 1.1%. China remained a key sentiment had spillover effects on Indian equities
player, with a focus on rebalancing its economy and capital flows, which remained volatile through
and implementing structural reforms, was also the year. With increase in interest rates real estate
reeling under late effects of Covid and registered stocks became out of favor with investors during
meagre growth of 3.0% in 2022. Overall, the world second and third quarter of FY 2023, recovering
economy clocked a moderate growth of 3.4% in moderately towards the end of the year.
FY 2023.
India's GDP touched USD 3.75 trillion in FY 2023
In contrast, India, as world's fifth largest economy, and according to the OECD, India is set to be the
has been a bright spot in FY 2023, registering
fastest growing economy in the G-20 over next
growth of 7.2%, underscoring the country's
few years, despite decelerating global demand
economic resilience amid geopolitical conflicts
and the tightening of monetary policy to manage
and global headwinds. Though very significantly
inflationary pressures.
influenced by global economic trends, supply
chains and commodity prices, FY 2023 had both SECTOR OVERVIEW
positive and negative impacts on the economy.
India has fully come out of pandemic induced The India real estate market size reached
slowdown with K-shaped recovery, where some USD 256.8 Billion in 2022. According to a study by
sectors have grown better than others, Real IMARC Group, it is expected to reach USD 780.6
Estate being one of the sectors which recovered Billion by 2028 with an expected CAGR of 9.2%
fast and strong. The Indian economy benefited during 2023-2028. The Real estate sector in India
from increased public investment, a revival in contributes about 6-7% to India’s GDP. It is also
consumer demand and significant progress in the second highest employment generator in the
structural reforms. Inflation remained persistent country. In addition to the growth of traditional
in the first half of the fiscal, leading to increase segments like residential, commercial and retail,
in repo rates by RBI to the tune of 2.5% during this will also be partly driven by newer segments
the year. Economic activity has remained strong such as warehousing, logistics, industrial
and resilient, reflected in record GST collections. parks, data centers, student housing, co-living
Most businesses have done very well and have and senior assisted living facilities, as well.
The Indian residential real estate witnessed a delivery of our products. We continue to be laser
V-shaped recovery from two years of pandemic- focused on our product design and construction
induced lockdowns and consequent economic quality above anything else. To delight home
slowdown across Tier I, II and III cities. Demand buyers and exceed their expectations has been
remained strong throughout the year despite our constant endeavour, which has given us the
increasing property prices, interest rates and an recognition and reputation of delivering best
expectation of a global slowdown. Most prominent quality homes in the market. SOBHA has ongoing
developers across the country have performed presence in 11 cities across 7 states. Company is
well, recording their best sales this year. present in Bangalore, Gurgaon (NCR), Chennai,
Coimbatore, Thrissur, Kochi, Calicut, Trivandrum,
Consolidation in the sector remained buoyant,
Hyderabad, Pune and GIFT City (Gujarat).
with demand getting polarized towards credible
developers with established track record and a Despite a challenging start to the year, mired in
reputed brand. This trend is expected to continue geopolitical tensions, supply chain disruption
with larger share coming to bigger developers led spike in commodity prices and lingering
increasingly. Having said that, during the year, trepidations of a global slowdown - SOBHA was
we also witnessed multiple Tier II developers able to deliver best ever operational performance
managed to ease their financial distress and during the financial year 2022-23. Company has
resume operations. A prominent trend in FY 2023 witnessed strong performance across regions and
was demand gyrating towards premium residential all residential segments that it operates in. New
projects, reflected in growth of luxury home sales in launches with differentiated designs, crafted by
FY 2022-23. Sobha Ltd. caught on to the emerging our in-house design studio, keeping in view the
MANAGEMENT
trend in the market and redesigned some projects fast changes in consumer demand has supported
to suit demand for larger homes, post pandemic. our business growth during the year. Demand
REPORT
These have been very well accepted by our has clearly moved towards bigger sized units to
customers. cater to additional space for specific utilities –
like Office work, personal Work-out area, Kid’s
Another area which saw significant improvement room, permanent maid’s room etc. Identifying the
is use of technology to enhance efficiency with behavioural and cyclical trends emerging ahead of
renewed focus on design and incorporation of the curve and customizing our product offering to
sustainable and green building concepts. With suit these requirements of the times - shall remain
tools like Building Information Modeling (BIM), our priority.
AI, drone tech etc. Real estate developers are
With SOBHA’s unique Self-Reliant model, strong
bringing in higher efficiency into the development
brand name and unmatched execution capabilities,
process, while improving their adherence to
the Company continues to deliver all the projects
environmental norms.
on time. The Company currently has ongoing real
India's robust macroeconomic fundamentals, estate projects aggregating to 30.60 million square
including a large domestic market and a young, feet of developable area and 20.75 million square
expanding workforce, contribute to its economic feet of saleable area and ongoing contractual
strength. The government's sustained focus on projects aggregating to 5.24 million square feet
policies promoting manufacturing and innovation under various stages of construction.
further enhances its growth potential. Domestic
As on 31st March 2023, Company has delivered
consumption remains a key driver and as the
overall 128.00 million square feet of developable
middle class expands and urbanization continues,
area across Real Estate and Contractual businesses.
the demand for homes is poised to rise.
Since its inception, the Company has completed
real estate projects measuring 70.33 million
OUTLOOK OF OUR MARKETS
square feet of developable area commensurate to
A. REAL ESTATE 52.28 million square feet of saleable area.
SOBHA is the foremost backward integrated During the year, the Company has completed
company in real estate space. Since inception, the construction activities to the extent of
as a company, it has been a conscious policy to 5.78 million square feet of total developable
develop all skillsets in-house, in order to maintain area corresponding to 3.97 million square feet of
an absolute control over the quality and timely saleable area.
BANGALORE • SOBHA Sentosa - Luxury Residential project

located right next to SOBHA Dream Acres,
Sobha Ltd. started its operations from Bangalore
with total saleable area of 779,066 square
and is headquartered in the city. This market
feet in South Bangalore.
contributed 69.3% to overall sales volume in FY
2022-23 . • SOBHA Victoria Park – Project spread
over 6.5 acres, in North Bangalore with
During the year, we completed projects with 588,451 square feet of saleable area
2.93 million square feet of saleable area only in comprising of Row Houses and Apartments.
Bangalore. Some of the major projects completed
are mentioned below: • SOBHA Royal Crest – Luxury project with 3
and 4 BHK apartments only, near Banshankari,
• In SOBHA Dream Acres, we have completed West Bangalore with saleable area of
Wing 25, 26, 29, 34, 35, 36 with a total 654,429 square feet.
developable and saleable area of 1.05 million
square feet and 0.78 million square feet GURGAON - NCR
respectively. SOBHA Dream Acres project Company started its operation in NCR market
along with other projects across regions during the year 2011-12 with the launch of its
continue to be completed and handed over villa project “International City” in Gurgaon.
before stipulated timelines. Since inception After experiencing positive feedback, Company
Company has delivered 6.53 million square launched it’s second project ‘SOBHA City’, which
feet of developable area in the project. was an apartment project and is one of the single
Construction of this project is carried out using largest group housing projects in Gurgaon.
MANAGEMENT
Pre-cast technology.
During the year 2022-23, we completed SOBHA
• We have delivered entire project of SOBHA City – Tower A2, B2, C2 totaling about 0.69 million
REPORT
HRC Pristine with 1.34 million square feet of square feet of developable area.
developable area located at Jakkur north side In total, the Company has ongoing projects
of Bangalore. aggregating to 3.91 million square feet of
• Also completed SOBHA Forest Edge with developable area and 2.61 million square feet
0.64 million square feet of developable area, of saleable area, which will be developed and
delivered in phases.
project located in West Bangalore, in the
backdrop of Turahalli forest. Under the SOBHA City, the Company is currently
working on 3.42 million square feet of developable
Presently, in Bangalore, the Company has ongoing
area and 2.33 million square feet of saleable area.
projects aggregating to 17.19 million square feet of
Under the International City the Company is
total developable area and 11.71 million square feet working on 0.43 million square feet of developable
of saleable area. area and 0.28 million square feet of super built-up
Company has launched the following projects in area.
the current financial year. During FY 2022-23, Company has relaunched 6
• SOBHA Galera - A rowhouse project located towers in SOBHA City, after re-designing them to
in East Bangalore, spread over 4.08 acres. adapt to changing customer preferences. These
re-designed units are larger with additional space
The project comprises of 40 row houses with
provided for home office. It was very well accepted
total saleable area of 131,102 square feet.
in the market enabling us to make historic sales on
• SOBHA Oakshire - A rowhouse project located its launch.
next to SOBHA Lifestyle, close to Bangalore
International airport. The project comprises CHENNAI
of 80 row houses spread over 8.86 acres Chennai is known as automobile capital of India.
comprising saleable area of 275,486 square feet. It is home for large automobile and auto-ancillary
• SOBHA Insignia - A boutique super-luxury units along with considerable contribution from IT
project in Bhoganahalli, South East Bangalore, and ITES sectors.
with 33 apartments and a saleable area of Presently, the Company has 2 ongoing projects,
80,251 square feet. aggregating to 0.56 million square feet of total
developable area and 0.35 million square feet of feet of saleable area.
super built-up area - SOBHA Arbor and SOBHA
"SOBHA Marina One" is a Joint venture project
Gardenia.
along with Puravankara group. Located on the
SOBHA Arbor a luxury apartment project with marine drive, with 2.61 million square feet of
0.39 million square feet of developable area and developable area.
0.29 million square feet of saleable area. It is
"SOBHA Atlantis", located near the Kaniyampuzha
envisioned to be a luxurious residential enclave,
river, is slightly inside the city with 1.34 million
featuring the very best in SOBHA’s sustainable
square feet of developable area.
luxury living segment with beautiful landscapes
all around the project, The Arboretum, organic THRISSUR
gardens and plenty of aesthetic green features.
Company entered the Thrissur market in 2007-08
SOBHA Gardenia is a villa project spread across with its landmark project “SOBHA City”, one of a
6.85 acres of lush greenery, with a truly upscale kind first Integrated Township project in Kerala.
eco-friendly living.
Presently, the Company has 3 ongoing projects,
COIMBATORE "SOBHA Lake Edge", "SOBHA Silver Estate" and
"SOBHA Metropolis" aggregating 1.47 million
The Company ventured into the Coimbatore square feet of total developable area and 0.96
market in the year 1998-99 with the plotted million square feet of saleable area.
development project of ‘SOBHA Harishree
Gardens’ and launched its first Villa development, TRIVANDRUM
MANAGEMENT
SOBHA Emerald in the year 2008-09.
Trivandrum (Thiruvananthapuram) is the capital city
Company currently has 2 ongoing projects namely, of Kerala characterized by with its calm beaches,
REPORT
"SOBHA West Hill" with 0.03 million square feet back waters and rich culture. It is also famous as
of developable area and 0.02 million square the Information technology capital of the state,
feet of saleable area and "SOBHA Verdure" with since it is home to the first and largest IT park in
0.16 million square feet of developable area and India, Technopark, established in 1990. The district
0.11 million square feet of saleable area. is home to more than 9% of total population of
Kerala.
CALICUT
During the year, Company has launched it’s first
Company has been operating in Calicut since project in Trivandrum.
2013-14 with the first project of "SOBHA Bela
Encosta", a Luxury Villa Development. • "SOBHA Meadows - Whispering Hill"– Luxury
apartment project with a saleable area of
Presently, the Company has one ongoing project 196,420 square feet, designed on theme
that aggregates to 0.13 million square feet of total of living close to nature. Project is located
developable area and 0.08 million square feet of just 7 km away from Technopark, one of the
saleable area. largest IT hub of India. One-of-a-kind, nature-
rich living set in the evergreen city - these
KOCHI residences are designed carefully to maintain
Kochi is referred to as the commercial capital of the natural contours with about 70% open
Kerala. The City is a major port city, growing at spaces and allows you to explore a lifestyle
a rapid pace - home to a number of technology that’s pro nature. Developable area of the
and industrial campuses such as Info Park, Cochin project is about 0.23 million square feet.
Special Economic Zone and KINFRA Export
Promotion Industrial Park, Smart City at Kakkanad PUNE
and Cyber City. The company ventured into Kochi The Company ventured into the Pune market in the
market in the year 2013-14 with the launch of year 2007-08 with the project "SOBHA Carnation",
SOBHA Atlantis. a Super Luxury multi-storied apartment project.
Presently, the Company has 2 ongoing project in Currently we have one project in progress,
the city, aggregating to 3.95 million square feet "SOBHA Nesara" with a developable area of
of total developable area and 2.58 million square 0.94 million square feet and a total saleable area of
0.62 million square feet. The project located near industry boom in the city, it is one of the prime
the pristine foothills of NDA Hills, offers wide lush go-to destination of young India pursuing career in
greens for views, a bounty of birdlife for tweets technology domain.
and a healthier lifestyle.
During the year 2022-23, Company has launched
it’s first project in the Hyderabad market.
GIFT CITY - GUJARAT
• "SOBHA Waterfront" – This is luxury
Gujarat International Finance-Tech city (GIFT) –
apartment project located in Somajiguda,
A Global Financial Hub, GIFT City is India's first
the heart of Hyderabad city, overlooking
operational smart city. Founded by Prime Minister
famous Hussain Sagar Lake. It is being
Shri. Narendra Modi, it is a business district
developed over 4.03 acres land parcel and
promoted by government of Gujarat through a comprises of 4 towers with a total saleable
Joint-Venture Company. The objective behind the area of 654,661 square feet. The 3 BR and
set-up of GIFT City is that it aims to tap into India’s 4 BR apartments between 1,948 square feet
huge potential for proving financial services by to 3,287 square feet are designed to offer
offering world-class infrastructure and facilities to comfortable and spacious living spaces with
leading global financial institutions and companies. stunning views of the lake and cityscape. Total
Currently Company has 2 ongoing projects here developable area of project is about 0.80 million
- "SOBHA Dream Heights" is in affordable project square feet.
category with developable area of 0.81 million
square feet and saleable area of 0.52 million square SALES PERFORMANCE:
feet, "SOBHA Avalon" is an apartment project with During the year, SOBHA sold 5.65 million square
MANAGEMENT
developable area of 0.42 million square feet and feet of new saleable area which is historic best
saleable area of 0.32 million square feet. performance. Total value of these sales was at
REPORT
₹51,978 million with an average price realization

HYDERABAD of ₹9,200 per square feet. SOBHA share of sales
Hyderabad, capital city of Telangana, is one of value stood at ₹42,313 million.
the fastest growing cities in India and poised SOBHA’s primary focus remains on residential
to become the vibrant urban centre and next business to generate positive cash flows through
technology hub for the country. City known for speedy delivery and revenue realisation and to
its historic legacy and cultural diversity is now ensure appropriate investment in the best available
on an accelerated growth path. Due to rapid IT opportunities.
50,000
51,978
40,000 Sales Value (₹ in million)
42,313
30,000
38,702
31,225 31,372 32,684

20,000 28,806
25,401
23,827 24,759
10,000
2018-19 2019-20 2020-21 2021-22 2022-23
Total sales value (incl JD share) Sobha share of sales value

Average Price Realization (₹/square feet)

10,000
9,200
9,000
7,749 7,817 7,883
8,000
7,075
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2018-19 2019-20 2020-21 2021-22 2022-23
New Sales (in million square feet)
MANAGEMENT
4.00
REPORT
3.50
3.00
Area in million square feet
2.50
2.00
1.50
1.00
0.50
Bangalore* NCR Kerala* Tamil Nadu* Pune GIFT City Hyderabad
 FY 2018-19 2.95 0.35 0.43 0.29 0.01 0.01 -
 FY 2019-20 3.06 0.24 0.28 0.28 0.07 0.13 -
 FY 2020-21 2.73 0.37 0.57 0.18 0.09 0.07 -
 FY 2021-22 3.35 0.68 0.38 0.16 0.17 0.17 -
 FY 2022-23 3.92 0.78 0.42 0.16 0.06 0.21 0.10
* Kerala includes Trivandrum, Thrissur, Calicut and Kochi

* Tamil Nadu includes Chennai and Coimbatore
* Bangalore is inclusive of Mysore
B. COMMERCIAL Overall, since inception the Company has

SOBHA has developed two commercial rent delivered 57.66 million square feet of contractual
yielding assets. Company owns a total leasable works and we have 5.24 million square feet of
area of 476,785 square feet across these area under execution in 3 cities across India.
2 properties – (1) Thrissur's most iconic landmark: While SOBHA values long-standing relationship
the "SOBHA City Mall" and (2) in Bangalore “One with few of our select clients which contribute
Sobha Mall" located right at the city centre. to major scope of our total work done in this
As of March 2023, the Company has two vertical, there is emphasis on diversifying the
commercial malls in this business vertical. client base and reduce SOBHA’s risk-portfolio.
We are actively involved in major contractual
• ‘SOBHA City Mall’ at Thrissur has a total
projects across India helping us with geographical
leasable area of 0.32 million square feet out
diversity and multi-client approach. The Company
of which SOBHA’s share of leasable area is
has delivered projects for LuLu group, Biocon,
0.28 million square feet. It is an iconic landmark
Dell, Bosch, Syngene, Taj Hotels, HCL, Wipro,
in the city, commenced its operations from
Infosys, ITC Hotels, Huawei Technologies, Manipal
December-2015.
group, GAR Corporation, etc.
• ‘One SOBHA Mall’ in Bangalore is with total
leasable area of 0.22 million square feet, During the year we have added new projects
SOBHA’s share being 0.19 million square in Karle SEZ Hub in North Bangalore for
feet. Located in the heart of Bangalore, development of two commercial blocks
this commercial development is host to of 2.54 million square feet.
MANAGEMENT
the topmost of brands from Retail, F&B, SOBHA’s ability and capacity to deliver high quality,
Entertainment and Hospitality industries. The custom designed turnkey projects and the domain
REPORT
mall is poised to become Bangalore's next go knowledge to address the tough challenges have
to destination for shopping and recreation. gained a loyal customer base for the contract
division. In the contractual vertical, SOBHA has
C. CONTRACTUAL
delivered across 27 cities in 14 States.
During the year 2022-23 the Company has
Company seeks to expand its contractual
completed 0.62 million square feet of contractual
operations while preserving its margins.
projects.
Contracts - Completed (in million square feet) Contracts - Ongoing (in million square feet)
0.27
15.57
42.09
4.96
Infosys Non-Infosys Infosys Non-Infosys

PROJECTS AND WORK DONE

SOBHA has set a high standard in the industry with II. COMPLETED PROJECTS
the consistent delivery of residential projects with
The financial year 2022-23 has witnessed the
world class construction quality and aesthetics.
overall completion of 6.40 million square feet
This is achieved on the back of a completely of developable area and 4.59 million square
vertically integrated business model. SOBHA has feet saleable built-up area in Real Estate and
a very high focus on product design, done by Contractual vertical put together.
in-house team of competent architects in our own
design studio. We maintain control over quality A. REAL ESTATE
and timeliness by deploying our own construction
SOBHA, during the year 2022-23 has
team and technicians at project sites. Over the
completed 5.78 million square feet of
years, this has been recognized and appreciated
developable area and 3.97 million square feet
well by our customers, validated by continuous
of saleable built-up area.
demand in the market for SOBHA products. In
FY 2023, SOBHA has delivered developable As of March 2023, in "SOBHA Dream
area of 5.78 million square feet of residential and Acres" project in Bangalore, the Company
0.62 million square feet of contractual projects. has delivered 6.53 million square feet of
developable area since the start of the
project. Remaining phases of development
I. OVERALL EXECUTION
are in progress and on schedule. Construction
MANAGEMENT
SOBHA has completed overall developable of this project is carried out using Pre-cast
area of 128.00 million square feet of area since technology, supported by our precast plant
REPORT
its operation in 1995. The Company has been located right next to the project site.
steady in launching new real estate projects and
During the year 2022-23 we have completed
executing new contractual projects. Ongoing
Wing 25, 26, 29, 34, 35 and 36 with a total
projects are excluded from the purview of overall developable and salable area of 1.05 million
execution since, on an average, a real estate square feet and 0.78 million square feet
project takes around 3 to 5 years to complete. respectively.
In FY 2023, we have completed and handed
Execution Track Record over "SOBHA HRC Pristine" with 1.34 million
[Area in million square feet] square feet of developable area, located
in Jakkur (North Bangalore, near the
2022-23 128.00
international airport), offering a noise-free,
clean and lush environment – a green oasis
2021-22 121.60
tucked away in the bustling cityscape.
2020-21 113.82 We have also completed "SOBHA Forest

Edge" with 0.64 million square feet of
2019-20 111.26 developable area. Project is located in the
backdrop of Turahalli forest. It is protected
2018-19 105.40
forest in middle of the city spread over
5,090 acres. Home owners can wake up
2017-18 94.05 to the refreshing sounds of nature, bask
in the freshness of clean air amidst lush
0 20 40 60 80 100 120
greenery, go for stroll in the forest right next
to their homes and make the most out of a
 Cumulative  Real Estate  Contracts cosmopolitan neighbourhood, as well.
2017-18 94.05 2.58 3.22
2018-19 105.40 9.75 1.60
During the year 2022-23, we have also
2019-20 111.26 3.98 1.88
completed "SOBHA City" – Tower A2, B2,
2020-21 113.82 0.23 2.33
C2, in Gurgaon, NCR and handed over 0.69
2021-22 121.60 4.07 3.71 million square feet of developable area.
2022-23 128.00 5.78 0.62 Since its inception, the Company has
Real Estate Completed - Location wise break-up Real Estate Completed - Product Mix
[Area in million square feet] [Area in million square feet]
Bangalore 40.66 55.85

Apartments 37.86 50.23
Coimbatore n 3.16 n 3.86

Plots
Calicut n 0.11 n 0.19 n 5.27 n 6.90
Thrissur n 2.36 n 2.30 Club Houses,

Others n 3.32 n 4.30
Chennai n 2.30 n 2.90
Gurugram n 2.01 n 2.38 Row Houses n 3.21 n 4.29
Mysore n 0.80 n 1.58

Villas n 2.62 n 4.62
Pune n 0.88 n 1.20
0 10 20 30 40 50 60 0 23 45 68 90
Saleable Built-up Area Developed Area Saleable Built-up Area Developed Area
completed real estate projects measuring 70.34 million square feet of developable area and
52.28 million square feet of saleable built-up area.
MANAGEMENT
B. CONTRACTUAL
REPORT
During the financial year 2022-23, the Company has completed 0.62 million square feet spread across
5 cities. Since the starting of its operations, SOBHA has completed 57.66 million square feet of area
for various clients in 27 cities across India. The Company has executed over 42.07 million square feet
of area for single and largest client, ‘Infosys’.
Contracts completed Projects (Area in million square feet)
Bangalore 13.33
Mysore 10.64
Pune 6.52
Hyderabad 6.29
Chennai 4.48
Mangalore 2.57
Trivandrum 5.36
Kochi 1.74
Bhubaneshwar 1.55
Chandigarh 1.37
Jaipur 0.70
Roorkee 0.45
Coimbatore 0.30
Gurugram 0.28
Nagpur 0.57
Others 1.51
Note: Others include Durgapur, Greater Noida, Salem, Baddi, Indore, Kolkata, Ooty, Calicut and Mumbai.
III. ON-GOING PROJECTS

The Company is currently executing 35.84 million square feet of developable area and 25.99 million
square feet of super built-up area in real estate and contractual verticals put together.
A. REAL ESTATE
SOBHA currently has on-going real estate projects aggregating 30.60 million square feet of
developable area and 20.75 million square feet of saleable built-up area spread across 11 cities.
Real Estate ongoing - Location wise break-up Real Estate ongoing - Product Mix
[Area in million square feet] [Area in million square feet]
Coimbatore n 0.13 n 0.19 Commercial n 0.01 n 0.01

Trivandrum n 0.20 n 0.23
Calicut n 0.08 n 0.13 Villas n 0.82 n 1.28
Chennai n 0.35 n 0.56
Hyderabad n 0.65 n 0.80 Row Houses n 0.16 n 0.24
Pune n 0.64 n 0.94
Residential n 0.29 n 0.39
GIFT City n 0.84 n 1.23
Thrissur n 0.96 n 1.47 Plots n 0.34 n 0.50
Kochi n 2.58 n 3.95
Gurgaon n 2.61 n 3.91 Apartments n 19.14 n 28.18
Bangalore n 11.71 n 17.19
MANAGEMENT
0 8 15 23 30 0 5 10 15 20 25 30 35
Saleable Area Developable Area Saleable Area Developable Area
REPORT
B. CONTRACTUAL
SOBHA has on-going contractual projects aggregating 5.24 million square feet spread across 3 cities.
Contracts ongoing projects (Area in million square feet)
Bangalore 4.69
Nagpur 0.06
Sonipat 0.49
ENVIRONMENT, HEALTH AND SAFETY

Ensuring a healthy and safe work environment construction activities, SOBHA uses pre-cast
involves developing safe, high quality and elements which comes with many advantages.
environment friendly processes, working They are fast to make, consume less labour, lead
practices and activities that prevent or reduce to minimal wastage and do not need plastering
the risk of harm to the people working in that work. These pre-cast elements use minimum
environment. It also involves complying with resources while also reducing wastage at the
environmental regulations such as managing same time.
waste or air emissions for reducing the Company’s
carbon footprint. ENERGY SAVING MEASURES
At SOBHA, procedures are in place for identifying SOBHA practices energy conservation by
workplace hazards and reducing accidents and installing solar panels for lighting common areas
exposure to harmful situations and substances and solar water heaters in all its projects. Some of
thus providing a safe work environment to the highlights in its energy saving measures are:
its workers. This includes training employees • The SOBHA Glazing and Metal Works factory
in accident prevention, accident response, provided with 225kW and the SOBHA Interior
emergency preparedness and use of protective factory provided with 750kW roof top solar
clothing and equipment. power plants as an alternate source of
MANAGEMENT
SOBHA is an ISO 9001, ISO 14001 and OHSAS 18001 energy.

certified Company for its quality, environment • At the SOBHA Corporate Office, 90 per cent
REPORT
and safety management systems. of the power is wheeled from the solar
power plant.
ENVIRONMENT
• Around 2.36 million units of solar power
SOBHA strives to ensure that its construction, were used across SOBHA’s facilities which
development activities and real estate operations resulted in saving the carbon footprint by
are environment-friendly. The Company complies 2,000 tons.
with all environmental and occupational health
• Use of heat pumps and solar water heaters
and safety laws and regulations such as the
instead of geysers to reduce power
Water (Prevention & Control of Pollution)
consumption.
Act, 1974; amendment 1988 and the rules made
thereunder, the Air (Prevention & Control of
Pollution) Act, 1981 and the rules and orders RAINWATER HARVESTING
made thereafter; the Environment (Protection) SOBHA has made significant efforts towards
Rules, 1986; Environmental Impact Assessment harvesting rainwater to address the acute
Notification, 2006; and Hazardous Waste problem of water scarcity. Rainwater harvesting
(Management, Handling & Transboundar y has emerged as one of the most viable options for
movement) Rules, 2008, Construction and meeting the water requirements of an increasing
Demolition Waste Management Rules, 2016 and population. It also helps restore depleted aquifers,
the amendment made thereafter, across all its thus enhancing sustainable water yields in areas
projects wherever applicable. The Company also surrounding SOBHA’s project sites.
focuses on minimizing emissions and increasing
Rainwater harvesting is done in two ways –
the use of renewable resources both in its
through collection tanks for roof-based runoffs
construction activities and during the operations
and through recharge tanks with recharge
phase in its manufacturing facilities where all
bores/ percolation pits for land-based runoffs.
attempts are made to keep the carbon footprint
Wherever feasible in residential projects, even
low by following the best industry practices.
surface runoff is collected in storage tanks and
The Company has installed a pre-cast unit after treatment, the water is used for primary
for its construction activities. Instead of using purposes further reducing the demand for
the conventional block work or bricks for its external fresh water. Water from the terrace
runoffs is treated and reused, thus reducing the within the project. Inorganic waste is given to
need for getting water from external sources authorized waste recyclers for further processing.
or extracting groundwater to meet a project’s
Air curtains are provided at the entrance of OWC
requirements.
rooms to prevent the odour from escaping into
the open area. Fly catchers are provided to
SEWAGE TREATMENT PLANTS
prevent houseflies, insects etc. from entering
SOBHA uses specially designed Sewage the OWC rooms. A weighing scale is provided in
Treatment Plants (STPs) to treat the wastewater the OWC rooms to track the quantity of organic
generated in its buildings. The treated water waste generated at the project site.
is used for econdary activities like flushing
Organic waste generated in SOBHA project
toilets, watering landscape areas and cleaning
sites during the construction stages is diverted
common areas. The STPs help reduce a project’s
to nearby piggery farms and the local municipal
consumption of fresh water in its various
corporation while the inorganic waste is handed
activities.
over to authorized waste recyclers. All these
STPs use a hybrid technology – the Activated efforts help the Company restore eco-sanitation
Sludge Process (ASP) – Extended Aeration wherever it works.
System (EAS) or Sequential Batch Reactor (SBR)
followed by the Ultra Filtration (UF) technology for WATER TREATMENT PLANTS (WTPS)
enhancing the quality of the final treated sewage.
For ensuring safe and healthy drinking water,
This process conforms with the standards set by
SOBHA provides treated water with Dual Media
the Pollution Control Board.
MANAGEMENT
Filters and Reverse Osmosis units in all its
Acoustic enclosures are provided for air blowers projects. The RO treated water is provided at one
REPORT
to mitigate noise pollution that can possibly be point in the kitchen for drinking, while water for
caused in the vicinity. Ozonators are provided non-potable domestic purposes is supplied after
at STPs’ exhaust and fresh air ducts to remove basic treatment.
odour in addition to improving the quality of
air for the operators working inside the plant LABORATORY FACILITY FOR WATER
room. Air curtains are also provided at the STPs’ TESTING
entrance to prevent the odour from escaping
SOBHA has a functional chemical laboratory
into the open area. SOBHA conducts regular
and a microbiological laboratory at the SOBHA
educational programmes for its construction
Academy to analyse water samples for
workers on the dos and don’ts of using natural
physicochemical and microbiological parameters.
resources. The Company also constructs
This laboratory is managed by qualified personnel
dedicated STPs at the residential quarters for
and equipped with instruments like the pH meter,
construction workers and treated sewage is used
DO meter with probe, COD reactor, Spectro
for dust suppression.
flex meter, BOD incubator, centrifuge, a water
distillation unit, laminar flow, biological incubator,
ORGANIC WASTE CONVERTERS electron microscope, digital colony counter and
SOBHA has been successfully using Organic autoclave which are essential for ascertaining the
Waste Converters (OWCs) across all its quality of the water from physicochemical and
projects in India. It is mandatory to use solid microbiological points of view.
waste management plants during the operational
phase of all projects and the integrated solid HEALTH AND SAFETY
waste management system operates on the
SOBHA strongly believes that Environment,
principle of the 4Rs – Reduce, Reuse, Recycle
Health and Safety (EHS) are an integral part of
and Recover.
our day-to-day activities at the workplace. Safety
Waste is segregated at the household level into is integrated in the Company’s core processes
organic and inorganic waste and collected in to help inculcate the value of health and safety
separate bins. OWCs help convert organic waste among its workforces. Continuous efforts are
into compost, which is subsequently used as made to increase and improve awareness
organic manure for the landscape and plantations and understanding about the value of safety
and health programmes across the spectrum few projects and on time provided closure
including management leadership and workers. reports.
A systematic approach at finding and fixing
• Specific trainings to Sales, Marketing and
hazards in the workplace form a part of these
Clients.
programmes.
• Implemented the SOP for client site tour and
The EHS management system at SOBHA
implementation.
is successful because it is partnered by an
effective leadership and owned by every • Provided safety training to all sales and
employee of the Company. This shows a marketing personnel (site and SCO), including
demonstrably strong commitment to EHS from clients.
the top management in implementing industrial
• Achieved 60 per cent of trainings on Health
best practices and achieving the Company’s
and Safety measures for all the permanent,
goal of zero accidents.
Contractor (Technicians) and sub-contractor
employees.
EXISTING / NEW PRACTICES AND
IMPLEMENTATION: • Revised Safety signages display for the
Project and Workmen camps.
• Implementation of heavy equipment and
machineries statutory inspections and OEM • Revised Safety net installation process to
inspections, including trainings to all the prevent falling objects. From 4mtr inclined
operators. installation of net (45 Degree angle) to 8mtr
(Horizontal manner) and at the height of
MANAGEMENT
• Revised safety documents, i.e., records,

6mtr from ground level.
checklist and formats including KPA.
REPORT
• Safety hard barricades revised from red and HEALTH

white to yellow and black.
• Projects and offices, for all the pantry and
• Revised safety signages display for the canteen staff mandatory health check-ups is
project and workmen workplaces. done.
• Revised safety net spread at entrance of
the buildings from peripheral to horizontal ACHIEVEMENT:
manner. • Achieved zero fatal accidents with
• Safety net spread made mandatory for all 44.2 million manhours for pan-India projects
neighbouring properties (SOBHA or others) in FY 2022-23.
• Zero complaint regarding safety PPE at pan- • Marina One Kochi was conferred Outstanding
India projects. Safety Practices by the National Safety
Council (Kerala Chapter) at the 52nd National
• Visits and spot inspections by government
Safety Week celebrations in March 2023. In
officials.
addition to already existing practices, during
• Government officials from factories audited 2022-23.
REPORT ON CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) takes on Exercise (SEME) with the following objectives:
a whole new meaning at Sobha Limited, the
• To identify and enlist genuine beneficiary
only backward integrated real estate player in
families from the three panchayats (six
the country. CSR at SOBHA Group is a sincere
villages) using clear-cut norms and terms.
devotion that stems out of genuine concern and
drive to provide comprehensive and sustainable • To generate qualitative and multi-
social development to rural India. It is in this dimensional ‘Baseline Reports’ about the
context that SOBHA, under the aegis of Sri beneficiary families to implement specific
Kurumba Educational and Charitable Trust (the programmes and activities for their
Trust), initiated ‘Graamasobha,’ a unique social well-being.
developmental initiative for Vadakkencherry,
• To devise target-based, area-specific
Kizhakkencherry and Kannambra grama
empowerment programs and activities
panchayats in Palakkad district of Kerala in 2006.
for key human development verticals
This is the eighteenth year of our social like education, health, employment, housing,
responsibility activities and programmes, etc.
whereby the Trust could bring about tremendous • To design an effective mechanism to
changes in the lives of people. It is humbling measure and monitor processes and the
to note that we could play a pioneering role in pace of the empowerment programs of
MANAGEMENT
championing the cause of social empowerment the Trust.
of people at the bottom of the society.
REPORT
Mainly, SOBHA’s CSR activities focus on:
In this social engineering process, education has
been the core premise on which we undertook • Education for girls
most of our activities and programmes in an • Healthcare
institutional format and have been successful
to a large extent in revamping the educational • Looking after the aged and needy
narratives in this otherwise backward district of • Women empowerment
Kerala. In this context, the contribution of The
SOBHA Academy and SOBHA Icon has been • Green initiatives
extremely inspiring. The impact of SOBHA An external agency – Kerala Statistical Insitute –
Healthcare has been similar and significant in did an impact assessment of the activities of the
making primary healthcare easily accessible. Trust for the past two decades this year. Their
SOBHA and the Trust have together tried their report is promising.
best to deliver the responsibilities entrusted on A summar y of the Trust’s activities and
them in a most empathetic manner. programmes during the F Y ended March
31, 2023, are provided below:
The Trust has identified nearly 4,525 families
(around 17,311 people) from the Below Poverty
A. THE SOBHA ACADEMY
Line (BPL) bracket, issuing beneficiary identity
cards to the adopted families. As a result, the Since its inception in 2007, the SOBHA
Trust has detailed and authentic data about each Academy, with a view of uplifting the weaker
beneficiary and their individual requirements. The sections of the society through quality and
Graamasobha model was developed basis this free education, has been rendering its selfless
data. The lives of thousands of underprivileged service in its service area of three panchayats,
citizens are getting positively transformed viz. Kizhakkencherry, Vadakkencherry and
through this growth model, which has a bottom- Kannambra. The school provides its entire
up, long-term approach towards poverty service free of cost. It is one of the several
alleviation. The beneficiary families have been humanitarian, educational, healthcare and
selected through an in-depth scientific poverty women’s empowerment activities undertaken
mapping called Social Empowerment Mapping by Sri Kurumba Educational and Charitable Trust,
the CSR arm of Sobha Limited. Focused mainly country after passing the higher secondary
on the holistic development of the students, education from The Sobha Academy, bears
the SOBHA Academy admits only children testimony to the excellent training it has been
from socio-economic backward sections. All providing since its inception. A good number
applications that come to the SOBHA Academy of students crack the competitive examinations
are carefully scrutinised to ensure that only the such as NEET, JEE and KEAM every year.
most deserving candidates are given admission. Most of these students ensure their seat in
The selected students undergo a medical the professional colleges without any special
fitness test and their final selection is done coaching by private institutions. This exemplifies
through an open draw. 90 girls were admitted the possibility of a person achieving success
to LKG through the process of drawing lots in irrespective of any kind of adverse circumstances
the academic year 2022-23. if they are provided with quality education and
befitting opportunities.
The Academy, which follows the CBSE curriculum,
provides all academic and related cost on fees
B. SOBHA ICON
and books, transportation, food, healthcare and
the like free. During 2022-23, 1,142 students were SOBHA Icon was started in 2010 as a constructive
on the rolls from LKG to Class 12. step towards improving the academic performance
and communication skills of students in our CSR
Academics area. It has three segments:
Achieving academic excellence is at the heart • An Academic Advancement Program for

of all educators and academic institutions. An high school students (8th-10th)
MANAGEMENT
important measure of this pursuit is how the

• An intensive Higher Secondary Education
institution has performed, the most important
Program (11th-12th) towards college enrolment
REPORT
of which is the annual Board Examinations

conducted by the CBSE. students of Class X • A mentoring program for undergraduate
and XII who appeared for the 2021-22 Board studies
Examinations bagged 100% success in the CBSE
SOBHA Icon, a social empowerment education
examinations with high marks. initiative, has brought wonders to three otherwise
lesser-known panchayats in Kerala’s Palakkad
Enhancement of teachers’ skills
district by sending their children for education to
As a part of teacher empowerment programme, premier centers of learning across the country.
various workshops and seminars are organized Icon is an illustrative case for educational policy
periodically throughout the year. Apart from the makers about what happens to students from
regular training programmes, a four-day special disadvantaged families, when quality educational
workshop on ‘Our Responsibility to Children’ resources, facilities and services are provided in
School Level Training Programme, a capacity- a sustained manner by a committed team with a
building programme for teacher /educators was sense of purpose. Icon has designed a replicable
organized. model for driving students toward personal
excellence, emerging as a brand worth emulating.
An interactive session on counselling the
students was conducted for the teaching staff The SOBHA Icon is not an affiliated school, but a
on student behaviour, emotions and issues teaching and learning center that functions within
associated with the living environment. the scope of the Kerala State Council for Open
and Lifelong Education. Students are provided
Students appearing for their board examinations
with books, uniforms and food in addition to
are guided and motivated by the school
regular and tuition classes by qualified teachers.
counsellor regarding their career choices. The
Students also undergo a series of personal
Academy facilitates regular seminars, workshops,
development activities and are exposed to real-
counselling and awareness sessions in addition
world life problems and opportunities, where
to annual workshops to help students prepare
they are motivated to pursue higher goals.
for the board examinations.
There are no failures so far. In fact, Icon has a
The quality of the students pursuing higher consistent record of academic excellence and
education in various reputed universities in the 100 per cent enrolment in colleges.
Undergraduate Admissions 6. Laboratory with automatic haematology

and bio-chemistry analyzers
Undergraduate admissions of all alumni stand
completed. It is heartening to note that Icon 7. Minor operation theatre
students have continued to receive admission
8. Pharmacy
to prestigious universities like Plaksha in Mohali,
Punjab; LPU; St. Thomas, Thrissur; CVV; NIFT; 9. Ophthalmology department with automatic
Intituste of Hotel Management, Kovalam; digital equipment, auto refractometer, slit
Ambedkar Law University, Tamil Nadu; Victoria lamp, indirect and direct ophthalmoscope
College, Palakkad and other prestigious 10. Dental Department with Ultra-Modern
institutions across India. Unit with PLANMECA RVG Unit, Intra Oral
Camera, Fiber Optic Twin Beam Micro
Many students have joined the HCL-TechBee
Motors.
program, which is a work integrated learning
program or WILP and found to be extremely 11. Physiotherapy Unit with Short Wave
useful for our students. Diathermy, Ultrasound Therapy, Interferential
Therapy, Traction Unit (Cervical and
Placements Lumbar), TENS, Wax Therapy and Portable
TENS.
Placements have been reported by many Icons
alumna pursuing different programs. There are The following beneficiaries avail free healthcare
placements in L&T, Four Seasons, Oberoi, HDFC, facilities under SOBHA Healthcare:
etc. Those doing B.Sc and B.Ed in Azim Premji
MANAGEMENT
• Beneficiary families of the three selected
University have received placements in various
panchayats
schools across the country. About 15 students
REPORT
have qualified for the UGC JRF/NET so far and • Residents of SOBHA Hermitage
are in various stages of further education or • Students of The SOBHA Academy, who
placement. are screened once a year for medical/
Efforts are in progress to set up a system and ophthalmology /dental care
process to take Icon to the next level, making • Families from Ward 19 of Vadakkencherry
it more relevant and useful for its beneficiaries. Panchayat
The Icon program is being intensely reviewed
• Sri Kurumba Educational and Charitable
and the new format will be in place from next
Trust Staff and their family members
academic year.
• Project workers
C. SOBHA HEALTHCARE
In total, SOBHA Healthcare treated 14,694
Established in February 2007 to provide free outpatients during 2022-23, which included 1,115
primary healthcare facilities to the residents dental patients, 559 ophthalmology patients
of SOBHA Hermitage, students of The and 13,020 general patients. On an average, 47
SOBHA Academy and identified BPL families patients were treated each day at the centre.
of Kizhakkencherry, Vadakkencherry and In the last financial year, 14 outreach medical
Kannambra panchayats of Palakkad district, camps were conducted with special emphasis
Kerala. on age-related health problems prevailing
The following facilities are available: in the community. The core concept of the
outreach medical camp was to promote healthy
1. Cardiac and pulse oximetry ageing in the community. A total of 712 people
2. Centralized oxygen, suction provision attended the camps. The program is continuing
successfully.
3. 3 and 12 Channel ECGs
Medical camps were organized for the students
4. Digital ultrasound scanning system and
at Moolamkode and beneficiaries of the
ECHO test
community feeding program and appropriate
5. 300 MA X-Ray with computerized Radiology (CR) counselling, guidance and treatment extended
to them. Widespread anaemia had been noted is in operation. Special arrangements are in
and remedial action was taken. place for their living, safety, security and
welfare at absolutely no cost. The widowed
Bone health evaluation was done using the
mothers and their children live together. All
bone mineral density scan (BMD scan), which
mothers have been encouraged to continue
was followed by a regular exercise programme
and nutritional support for the elderly. their education and many have completed their
graduation and others are catching up. All are
employed at The SOBHA Academy, earning a
Composition of General Patients
respectable remuneration.
Children of young mothers: Their children are

admitted to The SOBHA Academy, obtaining
16%
37% quality education. Further, the Trust has
3% constructed and allotted self-contained flats
2% for these young mothers and their children.
 Hypertensive
Patients The Trust also provides monthly provisions that
 Diabetic Patients include vegetables, fruits, milk and personal
 CVA (stroke) Patients 42%
accessories to these families – for free. There
 Chronic Kidney Disease
Patients are 10 young mothers and their 16 children living
 Heart Disease Patients at these quarters. Support is also provided if
the young mothers want to get re-married. It
is remarkable that out of earlier 18, 7 young
MANAGEMENT
D. SOBHA HERMITAGE widows have been remarried with the support

of the Trust.
REPORT
Besides the young, SOBHA firmly believes in

looking after the elderly. SOBHA Hermitage,
G. SOBHA RURAL WOMEN EMPOWERMENT
which was set up with the specific aim of
INITIATIVE
providing shelter and assistance to the elderly
from weaker sections of society, has now The Trust extends financial support to many more
become a home for senior citizens and young widowed mothers and their children through
widows and their children. Besides providing the Rural Women’s Empowerment initiative,
residents a roof over their head, SOBHA which has taken 50 widowed mothers and their
Hermitage also makes sure they are provided all children under its wing. They are provided with a
necessary amenities to lead comfortable lives. basic monthly living allowance, clothing, medical
Residents have independent rooms, access to and other personal accessories. Educational
a library, a common television room, a gym and expenses of their children are met by the Trust
internet. While there is a doctor-on-call during to give them adequate opportunity to come up
non-working hours, residents can also avail in life.
round-the-clock medical facilities provided by
paramedical staff. The Hermitage has an in- H. SOBHA DOWRY-FREE SOCIAL WEDDING
house clinic. Cultural and social activities and PROGRAM
celebrating the birthdays of residents are also
The Trust conducts mass social weddings to
organised at the Hermitage.
help families save unnecessary expenses. This
E. SOBHA ACADEMY HOSTEL is aimed at preventing poor families from falling
into a debt trap when they take a loan against
The Sobha Academy hostel started with 24 their property just to see their daughters get
girl students. Later it was increased to 82 girl married and to ensure all weddings are dowry-
students of 10th, 11th and 12th grades. free. To date, the Trust has conducted 667
weddings. It helps approximately 40 women get
F. SOBHA YOUNG MOTHERS
married each year and provides basic resources
REHABILITATION PROGRAMME
to couples to begin their married life. The couple
A comprehensive rehabilitation package for and their parents are also given pre-marriage
young mothers (widows) living in the Hermitage counselling.
I. SOBHA COMMUNITY CENTRE AND to own a home requires immense heart and
POOR FEEDING PROGRAM investment. The government and several
agencies and individuals have made consistent
SOBHA Community Centre is a beautiful and
attempts to come up with a viable solution.
spacious structure, playing host to various
community mobilization programmes, including SOBHA and the Trust have initiated a massive
medical camps, orientation and training classes community home project wherein they will
and social weddings. Every day, this Centre build 1000 homes for deserving families of
provides food to 70 poor senior citizens. Kizhakkenchery Panchayat. The project will be
implemented in different phases, beginning with
J. GREEN INITIATIVES the most deserving 100 women-headed families
SOBHA’s green philosophy of development is getting houses during 2023-2024. The Trust
widely accepted, including at CSR project areas. has planned the eligibility of these families in a
The entire campus was constructed with minimum transparent and strategic manner. Single-storied
carbon footprint and without making much houses will be constructed in two types: 1BHK
change to the natural surroundings. Large-scale (600 sq. ft) and 2 BHK (725 sq. ft).
rain harvesting methods and processes are put
in place, planting of more than 3000 trees and FUTURE INITIATIVES
herbs and preserving the existing flora and fauna • One school is proposed to be constructed
to the extent possible has been undertaken. The
in Bangalore, modelled on The SOBHA
Trust cultivates vegetables, fruits and paddy at
Academy.
Moolamcode, Anakkappara and Mangalam for
MANAGEMENT
in-house use. The Trust also has huge waste • Modelled on SOBHA Icon, similar institutions
management plants that process the generated are planned across Kerala.
REPORT
waste. All the CSR project campuses are plastic-
• A replicable model village incorporated with
free, no-smoking and non-alcoholic areas, thus
Sustainable Development Goals (SDGs)
striving to achieve sustainable lifestyle. The
is planned, which will have the potential
power laundry at SOBHA Hermitage runs on
to make a significant impact across the
steam generator by a boiler to conserve the
globe. The model village aims to provide
electrical energy. In addition, solar panels are
a blueprint for replicable, scalable and
installed at SOBHA Hermitage, which supplies to
sustainable development in India that
around 30% of total energy consumption.
can be adapted to different regions and
K. SOBHA DIGITAL ACADEMY AND SOCIAL cultures, nationally and internationally. This
DEVELOPMENT CENTRE is an effort to consolidate and strengthen
our social, economic, educational and
Efforts to build two small new institutions in health interventions since 1994 and put
2023 at Moolamkode is in progress. SOBHA them in a new format. The idea is to make
Digital Academy will provide graduate courses in them more impactful and measurable
data science, electronic embedded systems (by and showcasing and presenting holistic
IITM) analytics and e-businesses in association interventions to national and global policy
with premier institutions at the central level. A and decision makers. This will also motivate
Social (Sustainability) Development Centre will
capable people to follow similar paths. The
also be set up in Moolamkode this year to add
new format will be called Sobha Graam.
momentum to the social empowerment activities
and programs and to promote a sustainable • Additional classrooms and 750-seater
living culture. auditorium for The SOBHA Academy
• Girls’ dormitory with 500-capacity.

L. SOBHA COMMUNITY HOUSING PROJECT
• Adminis t r a t i v e building-cum- guest
Owning a home is a dream and the backbone of
accommodation.
a family’s social security. Solving the pertinent
issue of families, particularly the poor, wanting • ‘Devi Home’ at Moolamkode for women.
RESEARCH AND DEVELOPMENT

Research and development activities at SOBHA materials are refabricated to fit the current
contributed a considerable quantum in its requirements. This method is cost-effective
successful business and has ensured that the as materials are reused.
Company remains competitive in its product
mix. SOBHA uses an in-house virtual application 4. ALTERNATE VENDORS FOR
and idea space to encourage employees to submit MATERIALS
ideas for process improvements and simplification
of the process mechanisms. These ideas are Alternate vendors for materials like formwork,
divided using four broad parameters – quality, waterproofing, concrete, PVC tile bead, etc.
feasibility, safety and customer orientation. The are developed by extensively studying and
suitable ideas are implemented across projects testing the materials.
for improving the Company’s business practices.
During Financial Year 2022-23, the focus was on 5. ALTERNATE SYSTEM FOR FALSE
much-needed process and product improvement CEILING IN TOILETS
since it contributes to SOBHA’s strength and helps The development of an alternate false
it retain its self-reliant nature while providing best- ceiling system for toilets included the
in-class products to its consumers. design, selection of appropriate material
In 2022-23, SOBHA explored the following and functionality of the system, all of which
MANAGEMENT
areas to make its product mix better than the improves the aesthetics.
competition’s.
REPORT
6. CHAMBER COVERS FOR EXTERNAL

1. BASEMENT FLOORING – AREA
UPGRADATION FROM EPOXY TO PU To enhance the appearance of external
FLOORING
areas, SOBHA developed ductile iron
Polyurethane floors are generally softer and chamber covers.
more elastic and flexible in nature, giving
better resistance to scratching. 7. CONCRETE PRODUCTS
• Developed a high-end superplasticizer
2. BASEMENT EXPANSION JOINT
for in-house use for paver and block
Earlier the basement expansion joints were manufacturing.
treated then filled with PU sealant and left
exposed. To improve the aesthetics, an • Made some inroads into developing
in-house aluminium strip was developed at green technologies for block making
the Glazing and Metal works factory to cover which will be as per international
these joints. practices for adopting low carbon
technologies replacing cement.
3. REFABRICATION OF ALUMINIUM • New innovative product development
FORMWORK MATERIALS has been taken up as per customer
T h e ava i l a b l e a l u m i n i u m fo r m wo r k requirements in paver blocks.
EMPLOYEES
We continue to nurture a culture where our TRAINING AND DEVELOPMENT
employees can thrive and deliver their best. In an
Training and developing employees are a must for
extremely competitive talent market, SOBHA has
the success of any organization. This can be done
made concerted efforts to build meaningful and through ensuring that employees’ skills, abilities
deep engagements with reputed colleges across and knowledge are constantly updated – both to
the country to strengthen our employer brand and meet world standards and satisfy discerning and
attract the best talent. We have cemented our demanding customers’ needs. Training also helps
position as an employer of choice in our industry. employees move up in their career paths and
helps them take on more responsibilities. SOBHA
SOBHA’s inclusive culture is free from barriers
too benefits as a Company through this training
where everyone feels they belong and can thrive.
as it helps it to plan succession roles, address the
Our people strategy is geared towards creating
challenges of changing technologies and opens
a good employee experience through diverse
possibilities of widening the scope of the work that
learning opportunities, strong careers and reliable it does.
brand. Our employees are our strength and we
have created a working environment where they At SOBHA, the organisational training and
feel included, heard and respected. development plan includes in-house and external
workshops/seminars as per need. Every training
SOBHA’s organisational strength as on 31st March, provided to employees has resulted in boosting
MANAGEMENT
2023 was 3406 employees as against 3007 as on their productivity, increasing employee satisfaction,
31st March, 2022. fostering organizational learning culture, creating
REPORT
A comparative table depicting the employee strength as against the cumulative delivery is given below:
3,555
3,600 150.0
3,354 3,406
3,219
3,046 3,061 3,007
2,857 128.00
2,741
2,698 121.60
2,700 105.40 112.5
113.82
111.26
94.05
86.73
81.64
70.54
1,800 75.0
62.93
900 37.5
0 0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Organisational Strength Cumulative Delivery (Mn Sqft)

a safe working environment and the upgradation During 2022-23, 106 planned behavioural training
and updation of technology. It has also led to programmes were conducted for employees at
improvements in leadership and management skills different levels in which 1060 employees out of
and quality, higher productivity and the resultant 1,226 employees were trained.
optimum ROI.
In addition, 106 Adhoc Behavioural, Technical and
Training at SOBHA is broadly divided into Technical, Technician Supervisor training programmes were
Behavioural and Adhoc (mainly sales). conducted during the year, which were attended
by 637 employees at different levels.
TECHNICAL TRAINING
Technical employees are trained at different OTHER TRAINING
levels to help them master the latest technological Other training included 56 training programmes for
developments in the field. During FY 2022-23, the sales team and 54 department-centric training
89 technical training and induction programmes programmes, which were attended by 1,052
were conducted in Bangalore, Chennai, Kerala, employees.
NCR, Pune and other locations where SOBHA
has projects and 758 out of 783 employees were In all, the Leadership Development and Training
trained. A total of eight candidates (management team has conducted 960 training programmes
trainees) were trained for a period of 13 days. covering 10,607 participants including employees
on non-Sobha rolls during the year FY 2022-23.
Thirty training programs were conducted for
technician supervisors for both – workers on the TRAINING, A CONTINUOUS EXERCISE
MANAGEMENT
rolls of SOBHA and contractual workers. Out of 218

employees, 199 were trained during the year. SOBHA’s training wing, SOBHA Academy, conducts
training on a regular basis. Employees are regularly
REPORT
BEHAVIOURAL TRAINING assessed based on their performance and skills

and corresponding training is provided to them to
At SOBHA, behavioural training is equally important
further enhance their skills.
as it empowers employees to leverage their positive
skills. Such training enhances employees’ ability
EMPLOYEE COMMUNIQUES
to handle conflicts, creating win-win situations,
accommodating changes and following a dynamic SOBHA publishes the in-house magazine Innerve,
approach. Since behavioural training polishes which communicates news and developments in
skills and develops talent, it also contributes to the organization to its employees. The magazine
an individual’s overall development. Such training carries information about the different customer
at SOBHA covers a range of subjects including handovers that take place each quarter, how the
team building, time management and developing Company has performed in the particular quarter
motivational, leadership and interpersonal skills. and profiles of employees and teams.
RISK MANAGEMENT REPORT

SOBHA’s financial position and the results of its risks regularly to ensure it has internal controls.
operations are subject to certain risks and liabilities This system includes:
that may affect its performance and ability to
• Policies and procedures
achieve its objectives. These are factors that the
Company believes could lead to its actual results • Communication, supervision and continuous
differing materially from expected and previous monitoring
results. However, there are other risks and • Training programs and
uncertainties that may also affect the Company’s
• Processes for taking the issues to appropriate
performance and ability to achieve its objectives
levels of senior management
not currently known to the Company or deemed
immaterial.
A well-embedded risk management and internal
• Inaccurate data
control system are in place at SOBHA. It is the DATA • Inadequate information
• Invalid or unreliable predictive models
responsibility of the business units, support & ANALYSIS • lack of understanding of market
functions, functional departments and regions fundamentals
within the Company to set up, operate, maintain

and monitor an appropriate risk management
and internal control system within their area of
MANAGEMENT
responsibility. This responsibility includes the UNFORESEEN
• Changes in real estate law
• Other regulatory changes
identification and management of risks. CHANGES • Changes in the competitive environment
REPORT
• Other changes
The Risk Management Committee performs
independent reviews based on a set of defined
key controls. Further, it closes the loop through
regular assessments of the design and operational RISK MANAGEMENT PROCESS
effectiveness of the risk management and internal
control system. Real estate risk can be caused by The risk management process is another form of
many factors, which could be within and outside of decision-making that can be understood through
a company’s control. It is, therefore, important that the Risk Management chart provided below:
a company have a risk mitigation and management
policy in place.
RISK
MANAGEMENT
PROGRAMME
RISK ASSESSMENT AND RESPONSE
• Identify all risks • Identify alternative • Implement
Risk assessments are carried out at various levels • Establish risk controls • Monitor and
tolerance • Evaluate: feedback
at SOBHA, where we take a six-step approach to cost/benefit
risk assessments: • Select controls
• Develop
• Risk assessment planning RISK
programme plan
OPERATE RISK
MANAGEMENT MANAGEMENT
• Risk identification STRATEGY PROGRAMME
• Risk rating
• Evaluation and risk response
• Reporting This system helps SOBHA facilitate its abilities to
respond appropriately to risks and in achieving
• Periodic monitoring and review
its objectives and ensuring compliance with the
Our risk assessment focuses on short-term
applicable RERA law and its statutory obligations.
risks and emerging risks in the risk areas such
as Strategic, Operational, Financial, Legal and The listing agreement with the stock exchanges
Compliance. SOBHA has implemented an mandates the identification, minimization and
Enterprise Risk Management (ERM) program periodical review of these risks and uncertainties.
through which it reviews and assesses significant However, it is not possible for the Company to
implement controls to adequately respond to all volatile. A drop in land prices may erode the book
the risks that it may face and there can be no value carrying the cost of land, which in turn could
complete assurance provided that the steps affect a company’s profitability.
that it undertakes to address certain risks,
including those listed below will manage these OWNERSHIP AND LAND TITLE RISKS
risks effectively or at all. The key risk factors are Lack of information and low transparency coupled
listed here to get a brief overview of the types with age old property related issues and risk of
of uncertainties that are prevailing in the existing legal disputes and their related costs are key risks
scenario. in the real estate segment in India leading to the
slackening of overall growth of the real estate
RISK CONTROL MECHANISMS sector.
Insurance coverage is an appropriate way of
managing disaster-related risks. Apart from MACROECONOMIC RISKS
a sufficient insurance coverage, SOBHA also Interest rates, inflation and exchange rate risks are
takes appropriate measures to ensure that the amongst the important macroeconomic indicators
structural design of its buildings conforms to the which are subject to several factors which primarily
applicable construction standards in the various have to do with the government, monetary and
regions that it is operating in. The properties of tax policies, domestic/international economic
the Company are insured against natural risks, and political conditions and other factors beyond
like fire, flood, earthquakes, etc., with periodical a company’s control. Changes in interest rates
review of adequacy, rates and risks covered under may increase a company’s cost of borrowing and
MANAGEMENT
professional advice. Risks beyond the Company’s impact its profitability. These risk factors will be
control include: a driving factor in the development of the real
REPORT
estate sector.
NATURAL AND MANMADE DISASTERS
REGULATORY RISKS
Natural disasters include earthquakes, fires,
droughts, floods or pandemic (such as COVID-19) Local, state and central regulatory bodies control
and manmade disasters include acts of terrorism the real estate sector through laws and regulations
and war. governing the acquisition, construction and
development of land including zoning, permitted
RISKS RELATED TO THE SECTOR land use, fire safety standards, height of buildings
and access to water and other utilities. SOBHA’s
SALES MARKET RISKS business is subject to all these laws and regulations.
Any delay in obtaining an approval under these
Modern day businesses including those in the real
laws and regulations will expose the business to
estate sector are customer-centric and driven
higher risks.
by market sentiment and competition. Though
everyone aspires to own a home, there is a
LEGAL RISKS
chance that the decision to purchase the same
be deferred due to certain changes in existing SOBHA is involved in some legal proceedings
economic or market conditions. relating to the land it owns and claims in relation
to taxation matters. Any adverse decision here
LAND-RELATED RISKS may have a significant effect on the company’s
business, prospects and financials.
For any construction company, land is a primary
input and non-availability of an appropriate parcel
POLITICAL RISKS
of land at a strategic place at a reasonable price
can lead to an increase in its prices. Such a situation Changes in government policy, social and civil
with its resultant increase in the price of land unrest and political developments in or affecting
can have an adverse impact on the company’s India could impact the Company’s business
performance. Further, availability of land, its use interests. Specific laws and policies affecting real
and development are subject to approvals by estate, foreign investments and other matters
various local authorities under applicable local affecting investments in the company’s securities
laws and regulations. This makes the price of land could also change.
RISKS RELATED TO THE ECONOMY associated with debt financing and may be
An economic slowdown and uncertainty in the required to dedicate a portion of its cash flows
economic system like the natural risks associated towards the repayment of its debt commitments.
with the construction sector are beyond the It may not be possible to generate adequate
control of a company so also the risks that have cash flows in certain extreme scenarios to service
to do with the economy. A sluggish economy or principal and interest payments. In certain cases,
even recession in a specific industry such as IT/ lenders also have the right to recall a loan. Such
ITES can lead to a decrease in sales or market an event could impact SOBHA’s liquidity and
rates for residential projects. credit rating.
In extreme cases of an economic downturn, LIQUIDITY RISKS

a company may also run the risk of customer
insolvency though the registration of property The real estate industry has its own challenges
happens only on the receipt of all the dues and dynamics. The time required to liquidate a
from a customer. These factors could decrease real estate property can vary depending on the
the revenue generation from some or all the quality and location of the property. Therefore,
company’s businesses, adversely impacting its SOBHA may not be able to liquidate its assets
business and future growth. promptly in response to economic, real estate
market or other conditions.
Further, uncertainties in the national or global
economic scenario, a changing demographic CREDIT RISKS
profile of the country and inflation also have
a bearing on the functioning of a company In most cases, SOBHA develops properties on a
MANAGEMENT
operating in the real estate sector. In India, a joint venture basis. Credit risks arise when its JV
real estate company’s business is dependent partners do not discharge their obligations and,
REPORT
on the easy availability of finance. An economic in such circumstances, SOBHA may be required
slowdown can result in fund shortages as lenders to make additional investments in a joint venture
may want to act safe. or become liable for the other party’s obligations.
PROJECT IMPLEMENTATION RISKS

RISKS WITHIN THE CONTROL OF SOBHA
Real estate projects are vulnerable to several
CUSTOMER RISKS implementational problems such as regulatory
SOBHA operates in 12 cities which contribute to compliances which may cause project start
the Company’s revenue. A significant portion of up delays, construction delays, cost overruns
sales from real estate operations is generated and unavailability of skilled labour, accidents
in Bengaluru. A decline in the revenue in this and quality gaps. SOBHA’s operations may be
real estate market or a shift in customer loyalty unfavourably impacted if these risks are not
may have an adverse effect on its business and mitigated on a real-time basis.
operating results.
INPUT COST RISKS
Contractual businesses depend solely on
orders received from corporate entities for Many times, operations of a real estate project are
their construction requirements. A substantial subject to budget overruns due to several factors
portion of the revenue from contractual projects like increase in construction costs, growing sub-
is generated from major clients operating in the contracted service costs and increase in labour
information technology sector. costs. Increased operating expenses may affect
SOBHA’s profit margins if it is not able to sell
BORROWING RISKS the properties with desired margins. There is a
chance of reduction in demand if the selling price
Construction activities, which are a major
of unsold properties is increased.
contributor to SOBHA’s revenue are capital-
intensive and require a significant expenditure on
SUPPLY CHAIN RISKS
land acquisition and development. An efficient
borrowing strategy has placed SOBHA ahead of If suppliers of raw materials curtail, discontinue, or
its competition with respect to borrowing costs. disrupt the supply of materials, SOBHA’s ability to
However, SOBHA is subject to risks normally meet its material requirements for projects could
be impaired, which could lead to a disruption in CYBER SECURITY RISK

construction schedules and projects may not be
As a customer-centric organization, we need
completed on time.
to regularly give updates to customers, interact
with third parties and service providers. Today, a
WORKFORCE RISKS
lot of emphasis is given to real-time information,
The construction industry is highly dependent on which inadvertently means exposing our system
workforce and its ability to retain that workforce. and data to the outside world. Although a lot
Employee attrition could have an adverse impact of care is taken through digital certification
on SOBHA’s businesses. SOBHA’s performance and methodologies, there continue to remain
could also be affected if it is unable to identify, concerns over different security risks associated
attract and retain key employees like engineers with it. Moreover, with the advent of mobility,
and architects. the ecosystem has been ever demanding into
making mobility solutions that further add to data
COMPETITION RISKS and information exposure risks as well as security
risks.
The residential real estate sector is highly
competitive. Other developers undertaking
similar projects within the same regional markets RISK CONTAINMENT STRATEGY AND
are in direct competition with SOBHA. Due to the MEASURES TAKEN FOR RISK MITIGATION
fragmented nature of the real estate development SO B HA a lways s trives to p ro d u ce
business, adequate information about small and customer-centric and high-value products for
medium level competitors’ projects may not quality conscious and niche customers. This is
MANAGEMENT
be available and SOBHA could run the risk of evident from the customer support that it got
underestimating the supply in the market. during the recent economic reforms initiated by
REPORT
the Central Government. SOBHA’s customers are

DIVERSIFICATION AND INVESTMENT RISKS not dependent on external resources and are able
Though SOBHA is a backward integrated to manage their financial requirements internally.
company, expanding into new businesses or The Company has a dedicated and robust
new geographies exposes it to new risks, such in-house sales and marketing team, which is
as low levels of familiarity with the development entrusted with the task of generating enquiries
of properties in the specific area or market for for its products and transforming them into sales.
new project development. Competitors may This reduces dependency on external agents and
be better known in these markets and may brokers.
also enjoy better relationships with vendors/
SOBHA also has a dedicated Customer
suppliers/landowners/ joint-venture partners
Relationship Management (CRM) Department
and customers.
to cater to customer feedback, resolving their
queries and grievances, addressing their issues,
IT AND SYSTEM RISK
streamlining the purchase process and receiving
SOBHA uses an Enterprise Resource Planning feedback. An online portal has been designed
system for integrating its core and backend for customers where they can share their views
activities like architecture, engineering, projects and check the status of the projects. The CRM
and costing. A breakdown of existing IT systems Department’s core responsibility is ensuring
or a delay in implementation could disrupt the smooth and hassle-free transfers of products to
Company’s ability to track, record and analyze the the satisfaction of the customers.
work in progress, or result in the loss of valuable
Taking calculated risks is a part of all businesses.
data. These risks relate to the following:
A business’ growth depends on the Company’s
• System capability ability to absorb the risks related to the sector.
• System reliability After a careful evaluation of the risks, SOBHA has
been steadily expanding its geographic presence
• Data integrity risks
in the real estate domain. This diversification
• Coordinating and interfacing risks has reduced its dependency on a single market,
• Information Security Bangalore, which at one point accounted for all its
sales. Bengaluru now contributes only 65-70 per employment opportunities in Tier-II cities and
cent of its sales. larger numbers of nuclear families will contribute
to a substantial increase in demand for real estate
To avoid dependency on a single large client
and corporate space in the future.
in the contractual vertical, SOBHA is making a
conscious effort to enlarge its corporate client The dedicated and strong in-house Legal
base. Enlarging this client base includes tapping Department at SOBHA along with the outside
into a big pool of corporates and institutions to experts, ensures the minimization of legal and
ensure that its dependence on any one client regulatory risks. The Company is a member of
is reduced. Out of the projects currently under trade associations like CREDAI and active in
progress, the share of contractual orders received making joint representations to the government
from other clients has increased. and regulators on common issues faced by the
sector.
SOBHA has a proven track record in servicing
its debt obligations. The gearing levels of the SOBHA also has a strong IT team to support all
Company have been efficiently managed in IT-related matters. The Company has also begun
previous fiscal years, bringing down the gearing implementing the new ERP system, wherein we
ratio. Every investment avenue is evaluated based have done away with redundant and non-value
on the risks and rewards attached to it. add processes to make us more agile; optimized
processes that help reduce time in decision
The Company takes strategic decisions making; identified roadblocks that came in the
with respect to land acquisition. Effective way of taking quicker and relevant actions;
methodologies are in place for managing the land cleaned up thousands of data fields and data sets
MANAGEMENT
portfolio. Requisite due diligence is carried out that affected data integrity; and introduced new
before acquiring land or entering partnerships for and robust processes that make us more efficient
REPORT
joint ventures or joint development. as a team and work with greater speed.
SOBHA has adopted a standard process for SOBHA’S foray into new geographies is based
ensuring product quality. Technology related on a thorough analysis of prevailing market
to the industry is upgraded periodically by conditions and the regulatory environment.
comparing it to global standards, which helps Several contractual projects have been
minimize implementation risks. The in-house successfully executed in different cities across
Quality, Safety and Technology Department is India and hence, there is a good understanding
in-charge of addressing quality issues of the of the local factors at play. The Company also
products. engages locally available workforce resources.
Vendors supplying key materials have long- The Company has a Risk Management Committee
standing relationships with SOBHA. Since the for evaluating the risk of each category. The
Company is a backward integrated organization, committee assists in identifying and assessing
key inputs are sourced in-house, reducing risks so that appropriate mitigation mechanisms
dependency on external suppliers. can be devised. The Audit Committee reviews
and advises the management on all categories
Comparatively, the attrition rate in the Company
of risks that the Company faces, the exposure
is below industry/sector average. To minimize
in each category and on the acceptable and
attrition and retaining talent, SOBHA has adopted
appropriate levels of these exposures. It also
effective and employee friendly policies.
monitors the steps taken by the management
SOBHA is confident that with the economic to control such exposures and ensures that the
and sector specific reforms introduced by the overall risk exposure is within the Company’s
Government in the recent past, the outlook for risk capacity and risk appetite. The Board of
long-term demand for the real estate sector in Directors of the Company are also apprised of
India is stable and positive. The emergence of the risks faced by the Company and timely risk
Tier-II and Tier-III cities, urbanization, large-scale management measures taken for mitigating them.
OPERATIONAL AND FINANCIAL ANALYSIS

As we close a Financial Year, it gives us immense cities to our operating portfolio.
pleasure to record our historic best operational
The Company is confident to perform even better in
performance during Financial Year 2022-23.
the coming financial years with customers showing
We started the year with a cautious outlook – strong preference for SOBHA brand, in context of
Geopolitical tension driven supply chain disruptions our superior execution capabilities and reputation
had led to sudden spike in commodity prices, of quality products delivered on agreed timelines.
inflationary pressures led central banks globally Sustainable all-rounded disciplined growth is our
to raise interest rates, serious concerns regarding driving mantra on this next growth trajectory.
advanced economies slowing down or even slipping We shall continue with our sharp focus on cash
into recession etc. RBI too got onto interest rate flow management, which helped us significantly
hike regime and through the year, has raised the reduce our Net debt to Equity ratio to 0.66 as on
repo rates by 2.50%, to reign in commodity price March 31, 2023. Going forward, higher cash flow
led inflationary situation in first half of the year. In generation would support growth investments
this backdrop, growth was expected to slow down, to build a very strong pipeline for the future. We
especially in IT/ITES sector, which is main demand expect P&L margins to improve as well, once more
source for Real Estate in cities like Bangalore, recent projects come up for revenue recognition.
Pune, Gurgaon and Hyderabad, due to their higher We have a strong launch pipeline in Bangalore and
dependence on exports to advanced economies. other cities. We believe that being a pioneer in
use of advanced operational methodologies, best
MANAGEMENT
Despite these headwinds India maintained its

growth trajectory and was a bright spot in the world practices in the sector, use of technology tools and
greater digital presence, Company should be able
REPORT
economy in FY 2022-23 – reflected in highest ever

tax collections, rapid pace of launch and completion to perform better, both financially and operationally
of infrastructure projects and overall improvement in the coming years.
in trade balances and fiscal parameters. Real In this backdrop, we present our financial and
estate demand remained strong throughout the operational performance for the year 2022-23.
year, across all cities of our operations. Industry
consolidation continued at a rapid pace which Following are the key financial results for fiscal
augurs well for large developers with reputed year 2022–23:
brand name and track record of timely delivery, • Registered a turnover of ₹34,024 million
along with ability to tap the potential market space
• ₹25,238 million of revenues from real estate
opportunities across geographies.
operations
Given the inflationary conditions in the beginning • ₹7,863 Million of revenues from contracts and
of the year, we set out with clear objective of manufacturing operations and ₹923 million of
protecting margins in our projects. Through the revenue from Other Income
year we have raised prices across projects in all
• PBT of ₹1,450 million
locations, which have been absorbed seamlessly in
the market, validating strength of the SOBHA brand. • PAT of ₹1,042 million
We started the year with historic best quarterly • Collections of ₹52,823 million
sales in Q1-FY23 and bettered our performance • Net operational cash flows stands at
every quarter, to record the best ever annual sales ₹10,559 million
in this fiscal year 2022-23. We have sold 5.65 million
• Total sales value of ₹51,978 million and Sobha’s
square feet of saleable built-up area with an
Share of ₹42,313 million
average price realization of ₹9,200 per square feet.
(FY 2022 average price realization was ₹7,883 per • Average Price realization is at ₹9,200 per
square feet). We are very pleasantly surprised with square feet
customer’s confidence in SOBHA products and our • Net Debt to Equity ratio as on March 31, 2023
execution capabilities. is 0.66.
We have also launched our first projects in On operational parameters, the Company has:
Hyderabad and Trivandrum during the course of • Completed development of 128.00 million
the financial year 2022-23, thereby adding two new square feet of total area since inception
• Execution of 35.84 million square feet of NEW SALES

developable area is in progress
SOBHA recorded highest ever sales in the
• Execution presence across 13 Cities covering operating history of the Company since 1995,
7 States pan India, in Real Estate and supported by strong demand for SOBHA products
Contractual business in the market and consistent new project launches.
• Completed delivery of 6.40 million square feet • During the financial year, the Company
in the Real Estate and Contracts projects in registered new sales SBA of 5.65 million
2022-23 square feet with total value of ₹51,978 million
at an average price realization of ₹9,200 per
square feet.
Revenues (₹ in million) The classification of new sales in terms of price

band is as follows:
2022-23 34,024 Sales Mix (by values) as per Product Price Range
(₹ in million)
2021-22 26,453
MANAGEMENT
2020-21 21,904
REPORT
<10 Million 10 to 20 Million 20 to 30 Million Above 30 Million
Profit before Tax (₹ in million) < 10 10 to 20 20 to 30 Above

million million million 30 million
 2018-19 6,549 13,205 7,364 4,107
 2019-20 9,896 13,984 3,489 1,437
2022-23 1,450
 2020-21 5,984 15,406 6,430 3,552
CAGR -45.44%
 2021-22 8,358 20,524 6,949 2,872

2021-22  2022-23 12,563 20,899 5,623 12,893
2,367
Sales mix (by Saleable area) as per Product Price

2020-21 686 Range [in million square feet]
Profit after Tax (₹ in million)
2022-23 1,042
<10 Million 10 to 20 Million 20 to 30 Million Above 30 Million
< 10 10 to 20 20 to 30 Above
2021-22 1,732 million million million 30 million
 2018-19 1.18 1.75 0.72 0.38
 2019-20 1.68 1.88 0.36 0.15
 2020-21 1.03 1.96 0.67 0.35
2020-21 557
 2021-22 1.35 2.57 0.68 0.31
 2022-23 1.74 2.36 0.54 1.01
OUR CUSTOMERS Resident vs Non-resident split of our customer

base is provided below:
The Company, on an ongoing basis, analyses
the customer base constantly to understand
the demand mix better and generate marketing
insights. Below chart represents profession wise
distribution of our customer profiles for sales done 91% 91% 93% 89% 87% 91%
in FY 2023. We have a healthy mix of customer

profiles, with IT/ITES being majority contributor.
It reflects depth of our geographical presence
across IT driven cities – Bangalore, Gurgaon, Pune
and Hyderabad. About 72% of our customers fall
under salaried category, which includes 52% from
IT/ITES and 20% from Non-IT industries. In addition
to this, 9% of customers are from Business and
Entrepreneur category.
Profession Profile
9% 9% 7% 11% 13% 9%
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

MANAGEMENT
16%
IT / ITES Professionals
Resident Indians Non-Resident Indians
REPORT
3%
Non-IT Professionals
52%
9%
Business /
Entrepreneurs
REAL ESTATE
Customer centricity is at the core of our
Medical /
Pharmaceutical business strategy in addition to the Company’s
20%
ability to consistently deliver quality products
Others*
in the real estate space. The real estate
operations of the Company are currently
* Others include agriculturists, government employees etc.
spread across 11 cities.
Following is the topline performance of the

Age Profile Real Estate Vertical:
₹ in million
41 - 50 16% Particulars Revenue Share of total
28% Real Estate Revenue (%)
31 - 40
2022-23 25,238 74.18
14%
2021-22 18,437 69.70
21 - 30
2020-21 13,103 60.19
Above 50 2019-20 22,801 59.59
42%
Project Launches
During the year, the Company has launched

the following real estate projects –
SOBHA operates a representative Sales office in
Dubai to market Company’s products among the • SOBHA Sentosa, Bangalore, luxury
NRI/NR community. However, the resident Indians apartment project measuring total saleable
continue to dominate the overall customer mix. area of 0.78 million square feet
• SOBHA Royal Crest, Bangalore, luxury ₹ in million

apartment project measuring total saleable Revenue Share of total
area of 0.65 million square feet Particulars
Contractual Revenue (%)
• SOBHA Victoria Park, Bangalore, luxury 2022-23 3,622 10.65

project with mix of apartments and row 2021-22 4,633 19.09
houses, measuring total saleable area of 2020-21 5,325 24.58
0.59 million square feet 2019-20 10,181 26.61
• SOBHA Insignia, Bangalore, luxury

apartment project measuring total saleable MANUFACTURING
area of 0.08 million square feet SOBHA has pioneered complete vertical
• SOBHA Oakshire, Bangalore, luxury row integration in Real Estate industry in India. It is the
houses measuring total saleable area of only Company with own manufacturing facilities
0.10 million square feet to cater to building materials. Company has the
infrastructure, capabilities, skills and resources
• SOBHA Galera, Bangalore, luxury row
to deliver a project from conceptualisation to
houses measuring total saleable area of
completion with all in-house teams, backed by
0.13 million square feet
this unique strength. This gives the company an
• SOBHA Town park - Brooklyn Towers, absolute control over the product quality and
Bangalore, apartment project measuring execution timelines to meet requisite standards.
total saleable area of 0.60 million square Construction materials manufactured in our own
MANAGEMENT
feet facility help us to ensure that the products
are superior in quality and the Company has a
• SOBHA Meadows Whispering-Hills,
minimal dependence on external suppliers. We
REPORT
Trivandrum, apartment project measuring
believe this model has been one of the most
total saleable area of 0.20 million square
important factors for our successful execution
feet
track record without compromising on the quality.
• SOBHA Waterfront, Hyderabad, super
Our manufacturing divisions comprises of Glazing
luxury apartment project measuring total
and Metal Works, Interiors and Furnishing Works
saleable area of 0.34 million square feet
and Concrete Works, which supplements our
In total, we have launched new projects to the core business of real estate and contracting.
tune of 3.96 million square feet of saleable area Each of these manufacturing divisions is also a
during the financial year 2022-23. profit centre by itself and is efficiently servicing
3rd party clients as well.
CONTRACTING
GLAZING AND METAL WORKS
During the year 2022-23, revenue from
this vertical contributed around 11% to the The Company owns one of the largest Glazing
Company’s topline. The contracts vertical and Metal factories in India, located in Bangalore.
has been executing orders ranging from civil The facility is spread across 7.3 acres of land
structures, finishes, MEP works, metal and with a 2,322 square metre (25,000 square
glazing works and interior furnishings for feet) state-of-the-art manufacturing unit, with
various reputed clients. future expansion capability up to 11,148 square
metre (120,000 square feet) space facility. The
We have added a new project for development
factory is equipped with advanced machinery
of 2.54 million square feet of commercial
like CNC profile cutting machine, TIG welding
buildings in Karle HUB in Bangalore, taking
machines, ACP routing machine, Milling machines
the total ongoing contractual orders under
etc. Apart from Bangalore, the Company has
execution to 5.24 million Square Feet. The
also established two Glazing and Metal Works
contractual operations will continue to be a
Divisions, one each in Chennai and Sonepat
complimentary source of steady revenue.
(near NCR). The Products manufactured in the
Following is the performance of the Contracts said facilities include aluminium doors, windows,
Vertical: structural glazing, MS and SS metal fabrications,
aluminium composite panel, SS cladding, CASH FLOWS

architectural metal works and pre-engineered
The cash flow summary for the financial year
buildings.
2022-2023 under direct cash flow method is
as follows:
INTERIORS
₹ in million
The interior and furnishing division of the
Particulars 2022-23
Company is one of the largest wood working/
joinery facilities in India. The division has Operational cash inflow 52,823
two highly mechanized factories with total Operational cash outflow 42,263
floor area of 255,000 square feet located
Net operational cashflow 10,559
at Bommasandra, Bangalore. The division is
equipped with imported machineries from Spain, Financial outflow (Interest and Taxes) 2,056
Italy and Germany. Other than Bangalore unit,
Net operational cash inflow after
Company also has an Interiors Division plant in 8,218
financial outflow
Alwar. The product range includes large scale
corporate and residential interiors, solid wood Net Cash flow 6,972
veneer paneled doors and MDF paneled doors,
customized joinery works like paneling, partitions, The Company has collected ₹52,823 million
tables, loose furniture like chairs, sofas, Cots and during the year from real estate, contractual
modular kitchens etc. and manufacturing activities. After expending
MANAGEMENT
on construction expenses for real estate,

CONCRETE PRODUCTS contractual, manufacturing activities, overheads,
REPORT
taxes and TDS etc, the net operating cash

The Company has a fully automated concrete
flows were ₹10,559 million.
product division which uses remote controlling
systems. The manufacturing facility in Bangalore Out of the above, the Company has utilised
spread over 32,000 square meter (over 8 acres ₹2,056 million towards payment of interest and
land parcel) manufactures concrete products of other finance processing charges.
international quality. The unit has the imported The Company has spent ₹3,386 million towards
technologies from Germany (Masa Plant) and land payments during the year and also
England. In addition, the Company has opened collected ₹2,469 million from sale of Land.
concrete products division in Gurgaon. The In addition to this, the Company incurred
unit are manufacturing ready-to-use products, ₹328 million towards capex expenditure,
including concrete blocks, pavers, kerb stones,
water drainage channels, paving slabs and
related landscape. The facility has a production
capacity of 28,000 Blocks/day or 20 million Collections (₹ in billion)
Landscaping products.
52.82
Following is the performance of the Manufacturing
Vertical:
₹ in million
39.82
Sales 2022-23 2021-22 2020-21 2019-20
Glazing and
2,626 1,208 1,452 2,194 30.77
Metal Works
Interiors 831 738 799 1,871
Retail 134 77 8 6
Concrete
649 520 411 486
Products
Total 4,240 2,543 2,670 4,559
Share of 2020-21 2021-22 2022-23
12.46 9.61 12.19 11.92
Revenue (%)
₹202 million towards CSR contribution and ₹23,369 million in the previous year. The net
₹285 million for dividend (including tax). debt to equity ratio stood at 0.66.
Net cashflows generated by the Company in
2022-23 was ₹6,972 million. BORROWING COST
As of March 2023, Company’s average
DEBT borrowing cost stood at 8.93%.
The Company seeks to maintain an optimum
level of low-cost debt financing, which is utilised
for execution of various projects viz. residential, Borrowing Cost (%)
commercial and contractual.
As on March 31, 2023, the net debt of the
Company was ₹16,396 million as compared to 9.72
9.69
Composition of Borrowings
9.04
8.93
8.40
MANAGEMENT
32%
REPORT
2018-19 2019-20 2020-21 2021-22 2022-23
During the year, the borrowings of the

68%
Company have been rated by:
- ICRA as ‘A+’ (Stable)
- India Ratings and Research (Ind-Ra) as
‘IND AA-‘ (Stable)
NET WORTH
Term Loan Cash Credit / Overdraft
The net worth of the Company as on
March 31, 2023 was ₹24,947 million.
Net Debt to Equity Net Worth (₹ in million)
1.25
24,947
0.97
24,230
0.66
22,838
2020-21 2021-22 2022-23 2020-21 2021-22 2022-23

FIXED ASSETS of increase in inventories by ₹11,094 million

and decrease in Trade receivables by ₹1,924
During the financial year 2022-23, the gross
million and decrease in other Current Assets
addition to Fixed Assets was ₹462 million. This
by ₹6,530 million. The decrease in Other
is about 6% addition on Gross Fixed assets
Current Assets is mainly due to reclassification
of FY 2021-22 on account of investment in
of some Land Advances from Current to Non-
scaffolding items and additions to Plant and
Current Assets.
Machinery.
CURRENT LIABILITIES
CURRENT ASSETS
During the financial year 2022-23, the Current
During the financial year 2022-23, the Current
Liabilities increased by ₹7,314 million, mainly
Assets increased by ₹5,187 million as compared
due to increase in Advance from Customers
to the previous year. This is mainly on account
led by higher Sales & Collections in FY 2023.
PURSUANT TO SCHEDULE V READ WITH REGULATION 34(3) AND 53(F) OF SEBI (LODR)
REGULATIONS 2015, STATEMENT OF CHANGES IN KEY FINANCIAL RATIOS ARE PROVIDED BELOW:
Consolidated Standalone
Particulars Reason for Change
MANAGEMENT
FY 2023 FY 2022 Change % FY 2023 FY 2022 Change %
On account of increase
REPORT
Inventory in revenue which lead to

0.33 0.24 38.75 0.36 0.25 41.20
Turnover Ratio increase in cost of goods
sold.
Current Ratio 1.11 1.14 -2.82 1.09 1.13 -3.17 NA
Debtors
2.80 2.85 -1.67 2.77 2.82 -1.69 NA
Turnover Ratio
Interest
Coverage Ratio 0.48 0.44 8.63 0.46 0.44 3.99 NA
(times)
Debt Equity
0.81 1.03 -22.15 0.83 1.07 -22.37 NA
Ratio
Net Profit Due to higher margin in land

0.03 0.07 -53.44 0.03 0.07 -56.88
Margin (%) sale in the previous year.
Operating Profit Due to higher margin in land

0.12 0.21 -43.79 0.11 0.20 -45.75
Margin (%) sale in the previous year.
Return on Net Due to higher margin in land

0.04 0.07 -42.41 0.04 0.08 -46.08
worth(%) sale in the previous year.
CHIEF EXECUTIVE OFFICER AND CHIEF

FINANCIAL OFFICER CERTIFICATE
[AS PER REGULATION 17 AND PART B OF SCHEDULE II OF THE SECURITIES
AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE
REQUIREMENTS) REGULATIONS, 2015]
We certify that:
A. We have reviewed financial statements and the cash flow statement for the financial year ended
March 31, 2023 and that to the best of our knowledge and belief:
(1) these statements do not contain any materially untrue statement or omit any material fact or
contain statements that might be misleading;
(2) these statements together present a true and fair view of the Company’s affairs and are in
compliance with existing accounting standards, applicable laws and regulations.
MANAGEMENT
B. There are, to the best of our knowledge and belief, no transactions entered into by the Company
during the year which are fraudulent, illegal or violative of the Company’s code of conduct.
REPORT
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and
that we have evaluated the effectiveness of internal control systems of the Company pertaining to
financial reporting and we have disclosed to the auditors and the audit committee, deficiencies in the
design or operation of such internal controls, if any, of which we are aware and the steps we have
taken or propose to take to rectify these deficiencies.
D. We have indicated to the auditors and the Audit committee
1) significant changes in internal control over financial reporting during the financial year ended
March 31, 2023;
(2) significant changes in accounting policies during the financial year ended March 31, 2023 and that
the same have been disclosed in the notes to the financial statements; and
(3) instances of significant fraud of which we have become aware and the involvement therein, if any,
of the management or an employee having a significant role in the Company’s internal control
system over financial reporting.
Sd/- Sd/-
Place : Bangalore Yogesh Bansal Jagadish Nangineni
Date : May 08, 2023 Chief Financial Officer Managing Director
INDEPENDENT AUDITORS’ REPORT

To the Members of Sobha Limited
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of Sobha Limited (‘the Company’),
which comprise the Balance Sheet as at 31 March 2023, the Statement of Profit and Loss (including
Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity
for the year then ended, and notes to the standalone financial statements, including a summary of the
significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, and
based on the consideration of the reports of the other auditor as referred to in paragraph 16 below,
the aforesaid standalone financial statements give the information required by the Companies Act,
2013 (‘the Act’) in the manner so required and give a true and fair view in conformity with the Indian
Accounting Standards (‘Ind AS’) specified under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the
state of affairs of the Company as at 31 March 2023, and its profit (including other comprehensive
income), its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing specified under section
143(10) of the Act. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Standalone Financial Statements section of our report. We
are independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India (‘ICAI’) together with the ethical requirements that are relevant to our
audit of the standalone financial statements under the provisions of the Act and the rules thereunder,
and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
FINANCIAL STATEMENTS
Code of Ethics. We believe that the audit evidence we have obtained together with the audit evidence
obtained by the other auditor, in terms of their report referred to in paragraph 16 of the Other Matter
section below is sufficient and appropriate to provide a basis for our opinion.
STANDALONE
Emphasis of Matter
4. We draw attention to Note 39(5) to the accompanying standalone financial statement, regarding
the search operation carried out by the Income Tax Department at various business premises of
the Company and certain other group companies during March 2023. As the Company and certain
other group companies have not received any communication on the findings of the investigation
by the Income Tax department till date, the impact of this matter on the accompanying standalone
financial Statement for the year ended 31 March 2023 and the adjustments (if any) required to these
accompanying standalone financial statement, is presently not ascertainable. Our opinion is not
modified in respect of this matter.
Key Audit Matters
5. Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the standalone financial statements of the current period. These matters were addressed
in the context of our audit of the standalone financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
6. We have determined the matters described below to be the key audit matters to be communicated in
our report.
INDEPENDENT AUDITORS’ REPORT (continued)

Key Audit Matter (continued)
Key audit matter How our audit addressed the key audit matter
1. Revenue recognition for sale of residential

units
The Company applies Ind AS 115, Revenue from Our audit procedures on revenue recognised from
Contracts with Customers (Ind AS 115) for recognition sale of residential units included, but were not
of revenue from sale of residential units and revenue limited to the following:
from joint development agreements. Refer note 2.2(a)
• Evaluated the appropriateness of accounting
(I)(i) and 25 to the standalone financial statements
policy for revenue recognition on sale of
for accounting policy and related disclosures.
residential units in terms of principles enunciated
Revenue is recognised upon transfer of control of under Ind AS 115;
residential units to customers for an amount which
• Assessed the management evaluation of
reflects the consideration the Company expects to
determining revenue recognition from sale of
receive in exchange for those units. The point of
residential units at a point in time in accordance
revenue recognition is normally based on the terms
with the requirements under Ind AS 115;
as included in the intimation for the handover of
unit to the customer on completion of the project, • Obtained and understood the revenue
and substantial collection is received. The Company recognition process, evaluated the design
recognises the revenue at a point in time upon and performed test of controls over revenue
handover/deemed handover of the residential units. recognition including determination of point
of transfer of control and completion of
For contracts involving sale of residential units, the
performance obligations on a sample basis;
Company receives the consideration in accordance
with the terms of the contract in proportion of the • Inspected, on a sample basis, underlying
percentage of completion of such real estate project customer contracts and sale deed/ handover
and represents payments made by customers to documents, evidencing the transfer of control
secure performance obligation of the Company of the residential units to the customer based
under the contract enforceable by customers. on which revenue is recognised at a point in
The assessment of such consideration received time, and whether the contracts with customers
from customers involves significant judgment in involved any financing element; and
determining if the contracts with customers involves
STANDALONE
• Visited certain sites during the year for selected
any financing element.
projects to understand the nature, status and
For revenue contracts forming part of joint progress of the projects.
development arrangements that are not jointly
For projects executed during the year in accordance
controlled operations (‘JDA’), the revenue from
with JDAs, we have performed the following
the development and transfer of constructed
procedures on a sample basis:
area/revenue share with corresponding land/
development rights received by the Company • Obtained and understood the revenue
is measured at the fair value of the estimated recognition process and performed test of
construction service rendered by the Company controls over revenue recognition including
to the landowner under JDA. Such revenue is fair valuation of estimated construction service
recognised over a period of time in accordance with revenue under JDA;
the requirements of Ind AS 115.
• Obtained and examined the computation of the
Ind AS 115 requires significant judgment in fair value of the construction service under JDA
determining when ‘control’ of the residential units with reference to project cost estimates and
is transferred to the customer. Further, for projects mark up considered by the management;
executed through JDA, significant estimate is
undertaken by management for determining the fair
value of the estimated construction service.

Revenue recognition for sale of residential units

(cont’d)
Considering the significance of management • Obtained the JDAs entered into by the Company,
judgements and estimates involved and the including addendums thereto and compared
materiality of amounts involved, aforementioned the ratio of constructed area/ revenue sharing
revenue recognition is identified as a key audit arrangement between the Company and the
matter. landowner as mentioned in the agreement to
the computation statement prepared by the
management; and
• Tested the computation for recognition of
revenue over a period of time for revenue
contracts forming part of JDA and management’s
assessment of stage of completion of projects
and project cost estimates.
Assessed the adequacy of disclosures included in
the standalone financial statements in compliance
with the requirements of Ind AS 115.
2. Revenue recognition for contractual

construction projects
The Company recognises revenue over a period Our audit procedures on revenue recognition for
of time in accordance with Ind AS 115, Revenue contractual construction projects included, but
from Contracts with Customers (Ind AS 115). Refer were not limited to the following:
note 2.2(a)(I)(ii) and 25 to the standalone financial

statements for accounting policy and related
policy on revenue recognition for contractual
disclosures.
construction projects in terms of principles
The Company recognises revenue from enunciated under Ind AS 115;
STANDALONE
construction contracts on the basis of stage

• Evaluated the design and tested operating
of completion (input method) based on the
effectiveness of key controls around budgeting
proportion of contract costs incurred at reporting
of project cost, approval of purchase orders,
date, relating to the total estimated costs of the
recording of actual cost, raising of invoices and
contract at completion. The recognition of revenue
estimating the cost to complete the project;
is therefore dependent on estimates in relation to
total estimated costs of each such contract, which • Assessed management evaluation of
is subject to inherent uncertainty as it requires determining revenue recognition for contractual
ascertainment of progress of the project, cost construction projects over a period of time in
incurred till date and balance cost to be incurred to accordance with the requirements of Ind AS 115;
complete the project.
• On a sample basis, tested costs incurred
Significant judgments are also involved in by examining underlying invoices and other
determining when the underlying performance applicable documents;
obligations are satisfied and also determining
• For sample invoices raised during the year,
expected losses, when such losses become
verifying the underlying documents including
probable based on the expected total contract cost.
invoices, work orders and customer acceptance;
Cost contingencies are included in these estimates
to take into account specific risks of uncertainties
or disputed claims against the Company, arising
within each contract. These contingencies are
reviewed by the Management on a regular basis

Revenue recognition for contractual

construction projects(cont’d)
throughout the life of the contract and adjusted • Compared actual cost with budgeted cost to
where appropriate. determine percentage of completion of the
project; and
Considering the significance of management
judgements and estimates involved and the • Assessed the adequacy of disclosures included
materiality of amounts involved, revenue in the standalone financial statements in
recognition from construction contracts is identified compliance with the requirements of Ind AS 115.
as a key audit matter.
3. Assessing the recoverability of carrying value

of Inventories, advances paid towards land
procurement and deposits paid under joint
development arrangements (JDA)
Refer note 2.2(c), 2.2(d), 2.2(o), 10, 14 and 13 to the Our procedures in assessing the carrying value of
standalone financial statements for accounting the inventories, land advances and deposits paid
policies on inventories, advances paid towards under JDA included, but were not limited to the
land procurement and deposits paid under JDA following:
(financial asset) and related financial disclosures.
As at 31 March 2023, the carrying value of the policies with respect to inventories, land
inventory comprising of Work in progress, Stock advances and deposits paid under JDA in
of residential units in completed projects and terms of principles enunciated under applicable
land stock is ₹ 80,259.42 million, land advances accounting standards;
is ₹ 9,648.96 million and refundable deposits
• Evaluated the design and tested operation of
paid under JDA is ₹ 3,406.74 million, represents a
internal controls related to testing NRV/ net
significant portion of the Company’s total assets.
recoverable value with carrying amount of
The inventories are carried at lower of cost and net inventory, land advances and deposits paid
STANDALONE
realisable value (‘NRV’). The determination of the under JDA;
NRV involves estimates based on prevailing market
• Inquired with management to understand key
conditions and taking into account the estimated
assumptions used in determination of the NRV/
future selling price, cost to complete projects and
net recoverable value; and
selling costs.
• Obtained and tested the computation/
Advances paid by the Company to the seller/
assessment of the NRV/ net recoverable value
intermediary towards outright purchase of land is
on a sample basis.
recognised as land advance under other assets
during the course of transferring the legal title to For inventory balance:
the Company, whereupon it is transferred to land
• Compared the NRV to recent sales in the project
stock under inventories. Further, deposits paid
or to the estimated selling price;
under joint development arrangements are in the
nature of non-refundable/refundable deposits, for • Obtained and assessed the Company’s
acquiring the development rights. On the launch methodology applied and assumptions used
of the project, the non-refundable amount is in assessing the net realisable value based on
transferred as land cost to work-in-progress. current market conditions and having regard
to expected launch of the project, project
development plan and expected future sales;
• Compared the estimated construction costs
to complete each project with the Company’s
updated budgets; and

Assessing the recoverability of carrying value

development arrangements (JDA)
The aforesaid deposits and advances are carried • For land stock, on a sample basis, obtained the
at the lower of the amount paid/payable and fair valuation reports or the published guidance
net recoverable value, which is based on the values and reviewed the valuation methodology,
management’s assessment including the expected key estimates and assumptions adopted in the
date of commencement and completion of valuation. Involved auditor’s valuation expert,
the project and the estimate of sale prices and where such fair valuation reports were obtained.
construction costs of the project.
For land advances/ deposits paid under JDA
We identified the assessment towards
• Obtained an update on the status of the
recoverability of carrying value of inventory, land
land acquisition/ project progress from the
advances and deposits paid under JDA as a key
management and verified the underlying
audit matter due to the significance of the balance
documents for related developments in respect
to the standalone financial statements as a whole
of the land acquisition to assess Company’s
and the involvement of estimates and judgement in
rights over the land parcels in subject and
the assessment.
expected recoverability of land advances /
deposits paid under JDA; and
• Carried out external confirmation procedures
on sample basis to obtain evidence supporting
the carrying value of land advance and deposits
paid under JDA.

the standalone financial statements in compliance
with the applicable accounting standards.
STANDALONE
4. Assessment of certain transactions entered

into by the Company and recoverability of
balances, on which regulatory proceedings
are ongoing
The Company had entered into a joint development Our audit procedures on this matter included, but
arrangement with certain landowners in Gurugram, were not limited to the following:
Haryana, in earlier years. In respect of this
• Obtained an understanding from the
transaction, the Enforcement Directorate (‘ED’)
management with respect to process
after due investigation has filed a complaint
and controls followed by the Company
with Adjudicating Authority, Prevention of
for identification, monitoring of significant
Money Laundering (‘AA-PML’), alleging certain
developments and impact analysis in relation to
irregularities in respect of the manner of allotment
the litigations, including completeness thereof;
and pricing of certain plots under this project
or payment of applicable fees and charges by
the Company or the landowners, with respect
to the terms and conditions mentioned in the
development policy of Haryana Development and
Regulation of Urban Areas Act (HDRUAA), 1975 and
the bilateral agreement between the land owners

Assessment of certain transactions entered into

by the Company and recoverability of balances,
on which regulatory proceedings are ongoing
and Directorate of Town and Country Planning, • Gaining an understanding of the ongoing
Haryana (DTCP) resulting in provisional attachment regulatory proceedings through discussions
under the Prevention of Money Laundering with the management, and reading the
Act, 2002 (‘PMLA’) of land parcels with value of underlying case related documents,
₹2,016.05 million held by Technobuild Developers communications and legal opinions to ensure
Private Limited (‘TDPL’) disclosed under Note 39(4). consistency with the explanations provided to
The Company has entered into a Memorandum of us. and we have also assessed the objectivity,
Understanding (‘MoU’) with TDPL for acquiring land experience, competence and independence of
parcels using advances extended by the Company, management’s expert;
of equivalent value. As per the MoU, TDPL and its
• Evaluated and challenged the Company’s
affiliates cannot transfer land parcels without prior
assessment of recoverability of the balances
approval of the Company and the Company has
outstanding as at the balance sheet date,
absolute rights over land parcels acquired by TDPL
the business rationale for entering these
and its affiliates acquired from such advance given transactions, including considering the
by the Company. developments on the matter subsequent to the
balance sheet date;
As part of the inquiry process, the Company and
its officers have been asked to provide contracts, • Engaged auditor’s expert, who obtained an
documents and justification in respect of this understanding of the current status of the
transaction by the concerned authorities. The litigation, reviewed independent legal opinion
Company and its officers have been responding to obtained by the management and considered
the queries raised / documents sought from time relevant legal provisions and available
to time. During the year, the Company is in receipt precedents to validate the conclusions made
of Show Cause Notice (SCN) under the PMLA from by the management’s expert;
AA-PML and the Company in consultation with its
• Communicated and discussed periodic updates
STANDALONE
legal counsel has responded to allegations made
on these transactions with those charged with
in SCN.
governance, including the recoverability and
The Company, based on its overall assessment management’s business rationale aspects for
and independent legal opinion obtained, believes these transactions; and
that these transactions have been carried out
• Assessed and validated the adequacy and
in accordance with all the applicable laws and
appropriateness of the disclosures made by
regulations and the said bilateral agreement and
the management in the standalone financial
has not identified any adverse material impact to
statements.
the standalone financial statements.
Considering the significance of the matter which
involves uncertainty of outcome due to ongoing
proceedings in AA-PML and significant judgements
and estimates by the Company on the assessment
of the legality and outcome of the above case, this
is considered as a key audit matter.
Considering this matter is also fundamental to the
understanding of the user of standalone financial
statement, we draw attention to Note 39(4) of the
standalone financial statements.

5. Restatement in accordance with Ind AS 8,

Accounting Policies, Changes in Accounting
Estimates and Errors “(Ind AS 8)”
The accounting policies for restatement of Our audit procedures on this matter included, but
standalone financial statements are set out in Note were not limited to the following:
2.2(u) to the standalone financial statements.
• Obtained an understanding of the management
During the current year, the Company has process for identification of restatement
made restatements relating to (i) capitalisation adjustments to be made in the standalone
of borrowing cost (ii) accounting for Joint financial statements;
Development Arrangement (JDAs) [not being
• Evaluated the design and tested the operating
jointly controlled operations] (iii) accounting for
effectiveness of internal controls relevant to
significant financing element in customer contracts
restatement adjustments;
and various other restatements which has been
explained in Note 45 of the standalone financial • Evaluated the appropriateness of the
statements. Amongst other things, the aforesaid implementation of accounting policies and
restatements required detailed re-computation ensured compliance with the requirements
of capitalisation of eligible borrowing costs for of the respective accounting standards and
earlier years, detailed assessment of all ongoing related authoritative pronouncements;
JDAs entered into by the Company and required
• Obtained and tested the computation/ workings
significant judgements and estimates to be made
involved in restatement and understood from
on part of the management. Further, assessment
the management, the rationale in view of
of consideration received from customers involves
the applicable accounting standards for the
significant judgment in determining if the contracts
restatement adjustments carried out in the
with customers involves any financing element.
standalone financial statements;
Considering the quantum of amounts involved, the

• Obtained and assessed the relevant contracts/
audit efforts required to audit such restatements in-
agreements for impact assessment of
depth, frequent interactions with the management
restatement adjustments; and
and those charged with Governance, the
STANDALONE
restatement is identified as a key audit matter for • Ensured that all restatement adjustments have
the current year audit. been dealt with and disclosed in the standalone
financial statement in accordance with Ind AS
The above matter is also considered fundamental
8, Accounting Policies, Changes in Accounting
to the understanding of the user of standalone
Estimates and Errors as well as the respective
financial statement on account of the restatement
accounting standards (including division II of
of comparative financial information for various
Schedule III), as relevant.
corrections of material prior period errors and
reclassifications, which are further described in
Note 45 of the standalone financial statements.
Information other than the Consolidated Financial Statements and Auditor’s Report thereon
7. The Company’s Board of Directors are responsible for the other information. The other information
comprises the information included in the Annual Report but does not include the standalone financial
statements and our auditor’s report thereon. The Annual Report is expected to be made available to
us after the date of this auditor’s report.
Our opinion on the standalone financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the standalone financial statements or our knowledge obtained in the audit or otherwise appears
to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
8. The accompanying standalone financial statements have been approved by the Company’s Board
of Directors. The Company’s Board of Directors are responsible for the matters stated in section
134(5) of the Act with respect to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position, financial performance including
other comprehensive income, changes in equity and cash flows of the Company in accordance with
the Ind AS specified under section 133 of the Act 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 Company 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 design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation
of the standalone financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
9. In preparing the financial statements, the Board of Directors are responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Board of Directors either intend
to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
10. Those Board of Directors are also responsible for overseeing the Company’s financial reporting
process.
STANDALONE
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
11. Our objectives are to obtain reasonable assurance about whether the standalone financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but
is not a guarantee that an audit conducted in accordance with Standards on Auditing will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these standalone financial statements.
12. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the
Act we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible
for expressing our opinion on whether the Company has adequate internal financial controls with
reference to standalone financial statements in place and the operating effectiveness of such controls;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management;
• Conclude on the appropriateness of management use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern; and
• Evaluate the overall presentation, structure, and content of the financial statements, including the
disclosures, and whether the standalone financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
13. We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
14. We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
15. From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the standalone financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
STANDALONE
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Other Matter
16. The standalone financial statements include the Company’s share in the net profit of₹ 19.06 million
for the year ended 31 March 2023, in respect of share of profit from partnership firm in which the
Company has invested, whose financial statements have not been audited by us. These financial
statements have been audited by the other auditor whose report has been furnished to us by the
management, and our opinion on the standalone financial statements, in so far as it relates to the
amounts and disclosures included in respect of this partnership firm, and our report in terms of sub-
section (3) of Section 143 of the Act in so far as it relates to the aforesaid partnership firm, is based
solely on the report of such other auditor.
Our opinion is not modified in respect of this matter with respect to our reliance on the work done by
and the report of other auditor.
17. The standalone financial statements of the Company for the year ended 31 March 2022 were audited
by the predecessor auditor, B S R & Co. LLP, who have expressed an unmodified opinion on those
standalone financial statements vide their audit report dated 20 May 2022.
Report on Other Legal and Regulatory Requirements

18. As required by section 197(16) of the Act based on our audit, we report that the Company has paid
remuneration to its directors during the year in accordance with the provisions of and limits laid down
under section 197 read with Schedule V to the Act.
19. As required by the Companies (Auditor’s Report) Order, 2020 (‘the Order’) issued by the Central
Government of India in terms of section 143(11) of the Act we give in the Annexure I, a statement on
the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
20. Further to our comments in Annexure I, as required by section 143(3) of the Act based on our audit,
we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit of the accompanying
standalone financial statements;
b) In our opinion, proper books of account as required by law have been kept by the Company so
far as it appears from our examination of those books;
c) The standalone financial statements dealt with by this report are in agreement with the books of
account;
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under
section 133 of the Act;
e) On the basis of the written representations received from the directors and taken on record
by the Board of Directors, none of the directors is disqualified as on 31 March 2023 from being
appointed as a director in terms of section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference to standalone
financial statements of the Company as on 31 March 2023 and the operating effectiveness of such
controls, refer to our separate Report in Annexure II wherein we have expressed an unmodified
opinion; and
g) With respect to the other matters to be included in the Auditor’s Report in accordance with rule
11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best
of our information and according to the explanations given to us:
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i. The Company, as detailed in note 39 to the standalone financial statements, has disclosed
the impact of pending litigations on its financial position as at 31 March 2023;
ii. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses as at 31 March 2023;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company during the year ended 31 March 2023; ;
iv. a. The management has represented that, to the best of its knowledge and belief, as disclosed
in note 47(iv) to the standalone financial statement, no funds have been advanced or loaned
or invested (either from borrowed funds or securities premium or any other sources or
kind of funds) by the Company to or in any persons or entities, including foreign entities
(‘the intermediaries’), with the understanding, whether recorded in writing or otherwise,
that the intermediary shall, whether, directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Company (‘the
Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf the Ultimate
Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, as disclosed
in note 47(v) to the standalone financial statement, no funds have been received by the
Company from any persons or entities including foreign entities (‘the Funding Parties’),
with the understanding, whether recorded in writing or otherwise, that the Company shall,
whether directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries’) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures performed as considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
management representations under sub-clauses (a) and (b) above contain any material
misstatement.
v. The final dividend paid by the Company during the year ended 31 March 2023 in respect of
such dividend declared for the previous year is in accordance with section 123 of the Act to
the extent it applies to payment of dividend;
As stated in note 19 to the accompanying standalone financial statements, the Board of
Directors of the Company have proposed final dividend for the year ended 31 March 2023
which is subject to the approval of the members at the ensuing Annual General Meeting.
The dividend declared is in accordance with section 123 of the Act to the extent it applies to
declaration of dividend.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies which
use accounting software for maintaining their books of account, to use such an accounting
software which has a feature of audit trail, with effect from the financial year beginning on
1 April, 2023 and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors)
Rules, 2014 (as amended) is not applicable for the current financial year.
For Walker Chandiok & Co LLP

Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Manish Agrawal
Partner
STANDALONE
Membership No: 507000

UDIN: 23507000BGYESJ5744
Bengaluru
29 May 2023.
Annexure I referred to in Paragraph 19 of the Independent Auditor’s Report of even date to

the members of Sobha Limited on the standalone financial statements for the year ended 31
March 2023
In terms of the information and explanations sought by us and given by the Company and the books of
account and records examined by us in the normal course of audit, and to the best of our knowledge
and belief, we report that:
(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative
details and situation of property, plant, and equipment, right of use assets and investment
property.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(b) The Company has a regular program of physical verification of its property, plant and equipment,
right of use assets and investment property under which the assets are physically verified in a
phased manner over a period of three years, which in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets. In accordance with this program, certain
property, plant, and equipment, right of use assets and investment property were verified
during the year and no material discrepancies were noticed on such verification..
(c) The title deeds of all the immovable properties (including investment properties) held by the
Company (other than properties where the Company is the lessee and the lease agreements are
duly executed in favor of the lessee) disclosed in note 4 and note 5 to the standalone financial
statements are held in the name of the Company. For title deeds of immovable properties in
the nature of Land and Building situated at Bengaluru, Karnataka with gross carrying values
of ₹ 1,942.40 million as at 31 March 2023, which have been mortgaged as security for loans or
borrowings taken by the Company, confirmations with respect to title of the Company have
been directly obtained by us from the respective lenders..
(d) The Company has not revalued its Property, Plant and Equipment including Right of Use assets
or intangible assets during the year.
(e) No proceedings have been initiated or are pending against the Company for holding any benami
property under the Prohibition of Benami Property Transactions Act, 1988 (as amended) and
STANDALONE
rules made thereunder.
(ii) (a) The inventories held by the Company primarily real estate segment comprise of stock of units
in completed projects, work in progress of projects under development (including land stock).
Having regard to the nature of inventory, the management has conducted physical verification
of inventory by way of verification of title deeds, site visits conducted and continuous project
progress monitoring by competent persons, at reasonable intervals during the year and
no material discrepancies were noticed on such physical verification. The other inventories
comprising of raw material (including that of real estate segment), work in progress and finished
goods has been physically verified by the management at reasonable intervals during the
year. In our opinion, the coverage and procedures of such verification by the management is
appropriate and no discrepancy of 10% or more in aggregate for each class of inventory were
noticed. In respect of inventory lying with third parties, these have substantially been confirmed
by the third parties
(b) As disclosed in note 20 to the standalone financial statements, the Company has been
sanctioned a working capital limit in excess of ₹ 5 crore by banks and financial institutions based
on the security of current assets. The quarterly returns/statements, in respect of the working
capital limits have been filed by the Company with such banks and financial institutions and
such returns/statements are in agreement with the books of account of the Company for the
respective periods which were not subject to audit/review.
Annexure I referred to in Paragraph 19 of the Independent Auditor’s Report of even date to the
members of Sobha Limited Sobha limited on the standalone financial statements for the year
ended 31 March 2023 (continued)
(iii) (a) The Company has made investments in and provided loans to Subsidiaries during the year as
per details given below:
(In ₹ million)
Particulars Guarantees Loans
Aggregate amount provided/granted during the
year: - 850.00
Subsidiaries
Balance outstanding as at balance sheet date in
respect of above cases: 998.78 675.51
Subsidiaries
(b) The Company has not provided any guarantee or given any security or granted any
advances in the nature of loans during the year. Further, in our opinion, and according
to the information and explanations given to us, the investments made and terms and
conditions of the grant of all loans are, prima facie, not prejudicial to the interest of the
Company.
(c) According to the information and explanations given to us, loans granted by the Company
amounting to ₹675.51 million are repayable on demand and terms and conditions for
payment of interest thereon have not been stipulated. Further, such loans and interest
thereon have not been demanded for repayment as on date.
(d) There is no overdue amount in respect of loans or advances in the nature of loans granted
to such companies.
(e) The Company has not granted any loan or advance in the nature of loan which has fallen
due during the year. Further, no fresh loans were granted to any party to settle the overdue
loans/advances in nature of loan that existed as at the beginning of the year.

(f) The Company has granted loans which are repayable on demand as per details below:
STANDALONE
(In ₹ million)
Particulars All Parties Promoters Related Parties
Aggregate of loans/advances in nature
of loan 850.00 - 850.00
- Repayable on demand (A)
- Agreement does not specify any - - -
terms or period of repayment (B)
Total (A+B) 850.00 - 850.00
Percentage of loans/advances in nature
100% - 100%
of loan to the total loans
(iv) In our opinion, and according to the information and explanations given to us, the Company has
complied with the provisions of sections 185 of the Act in respect of loans and guarantees and
security provided by it, as applicable. As the Company is engaged in providing infrastructural facilities
as specified in Schedule VI of the Act, provisions of section 186 except sub-section (1) of the Act are
not applicable to the Company. In our opinion, and according to the information and explanations
given to us, the Company has complied with the provisions of sub-section (1) of section 186 in respect
of investments, as applicable.
(v) In our opinion, and according to the information and explanations given to us, the Company has not
accepted any deposits or there are no amounts which have been deemed to be deposits within the
meaning of sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as
amended). Accordingly, reporting under clause 3(v) of the Order is not applicable to the Company.
(vi) The Central Government has specified maintenance of cost records under sub-section (1) of section
148 of the Act in respect of the business activities of the Company. We have broadly reviewed the
books of account maintained by the Company pursuant to the Rules made by the Central Government
for the maintenance of cost records and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. However, we have not made a detailed examination of
the cost records with a view to determine whether they are accurate or complete.
(vii) (a) In our opinion, and according to the information and explanations given to us, undisputed statutory
dues including provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of
customs, duty of excise, goods and service tax, value added tax, cess and other material statutory
dues, as applicable, have generally been regularly deposited with the appropriate authorities by
the Company, though there have been slight delays in a few cases. Further, no undisputed amounts
payable in respect thereof were outstanding at the year-end for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, there are no statutory dues referred in
sub-clause (a) which have not been deposited with the appropriate authorities on account of any
dispute except for the following:
Amount Period to which

Gross
Name of the paid under the amount Forum where dispute is
Nature of dues Amount
statute Protest relates pending
(₹ million)
(₹ million) (Financial year)
Karnataka Value Demand of Tax, Interest 2007-08 to
683.68 207.74 High Court of Karnataka
added tax, 2003 and/or penalty 2017-18
Appeal filed with VAT
Kerala Value added Demand of Tax, Interest 2010-11 and 2012-
63.20 13.66 Appellate Tribunal at
tax, 2003 and/or penalty 13 to 2013-14
Trivandrum
Andhra 2004-05 and
Demand of Tax, Interest Sales Tax Appellate
Pradesh,Value 40.00 16.28 2006-07 to
and/or penalty Tribunal, Andhra Pradesh
added tax, 2005 2007-08
Central Excise and
Demand of Tax, Interest -
STANDALONE
Customs Act, 1962 1.30 2010-11 Service Tax Appellate
and/or penalty
Tribunal,Bangalore
2010-11, 2017-18
Income Tax Act, Demand of Tax, Interest Commissioner of Income
101.46 12.89 and 2019-20 to
1961 and/or penalty Tax, Bangalore
2020-21
Income Tax Act, Demand of Tax, Interest 2008-09 to ITAT- Income tax
8.21 -
1961 and/or penalty 2009-10 appellate tribunal
Income Tax Act, ITAT- Income tax 2013-14 and Deputy Commissioner of
406.33 -
1961 appellate tribunal 2015-16 Income tax, Bangalore
Finance Act,1994 Central Excise and
Demand of Tax, Interest 2006-07 to
(Service Tax 560.34 125.78 Service Tax Apellate
and/or penalty 2017-18
provisions) Tribunal,Bangalore
The West Bengal,
Demand of Tax, Interest WBCTO Appellate and
Value added tax, 1.86 0.86 2009-10
and/or penalty Revision Board
2003
(viii) According to the information and explanations given to us, no transactions were surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961)
which have not been previously recorded in the books of accounts.
(ix) (a) According to the information and explanations given to us, the Company has not defaulted in repayment
of its loans or borrowings or in the payment of interest thereon to any lender. Further, according to
the information and explanations given to us, loans amounting to ₹ 6,321.45 million are repayable on
demand and terms and conditions for payment of interest thereon have been stipulated and the
payment of interest is regular. Further, such loans have not been demanded for repayment as on date.
(b) According to the information and explanations given to us including representation received from the
management of the Company, and on the basis of our audit procedures, we report that the Company
has not been declared a willful defaulter by any bank or financial institution or government or any
government authority.
(c) In our opinion and according to the information and explanations given to us, money raised by way of
term loans were applied for the purposes for which these were obtained.
(d) In our opinion and according to the information and explanations given to us, and on an overall
examination of the standalone financial statements of the Company, funds raised by the Company on
short term basis have, prima facie, not been utilized for long term purposes.
(e) According to the information and explanations given to us and on an overall examination of the
standalone financial statements of the Company, the Company has not taken any funds from any
entity or person on account of or to meet the obligations of its subsidiaries, associates or joint
ventures.
(f) According to the information and explanations given to us, the Company has not raised any loans
during the year on the pledge of securities held in its subsidiaries, joint ventures or associate
companies.
(x) (a) The Company has not raised any money by way of initial public offer or further public offer (including
debt instruments), during the year. Accordingly, reporting under clause 3(x)(a) of the Order is not
applicable to the Company.
(b) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, the Company has not made any preferential allotment or private placement
of shares or (fully, partially or optionally) convertible debentures during the year. Accordingly, reporting
under clause 3(x)(b) of the Order is not applicable to the Company.
(xi) (a) To the best of our knowledge and according to the information and explanations given to us, no
fraud by the Company or no material fraud on the Company has been noticed or reported during the
period covered by our audit.
(b) According to the information and explanations given to us including the representation made to us by
STANDALONE
the management of the Company, no report under sub-section 12 of section 143 of the Act has been
filed by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors)
Rules, 2014, with the Central Government for the period covered by our audit.
(c) According to the information and explanations given to us including the representation made to us by
the management of the Company, there are no whistle-blower complaints received by the Company
during the year.
(xii) The Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Accordingly,
reporting under clause 3(xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us, all transactions entered
into by the Company with the related parties are in compliance with sections 177 and 188 of the Act,
where applicable. Further, the details of such related party transactions have been disclosed in the
standalone financial statements, as required under Indian Accounting Standard (Ind AS) 24, Related
Party Disclosures specified in Companies (Indian Accounting Standards) Rules 2015 as prescribed under
section 133 of the Act.
(xiv) (a) In our opinion and according to the information and explanations given to us, the Company has an
internal audit system as per the provisions of section 138 of the Act which is commensurate with
the size and nature of its business.
(b) We have considered the reports issued by the Internal Auditors of the Company till date for the
period under audit.
(xv) According to the information and explanation given to us, the Company has not entered into any non-
cash transactions with its directors or persons connected with its directors and accordingly, reporting
under clause 3(xv) of the Order with respect to compliance with the provisions of section 192 of the Act
are not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act,
1934. Accordingly, reporting under clauses 3(xvi)(a),(b) and (c) of the Order are not applicable to the
Company.
(d) Based on the information and explanations given to us and as represented by the management
of the Company, the Group (as defined in Core Investment Companies (Reserve Bank) Directions,
2016) does not have any CIC.
(xvii) The Company has not incurred any cash losses in the current financial year as well as the immediately
preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year. Accordingly, reporting under
clause 3(xviii) of the Order is not applicable to the Company.
(xix) According to the information and explanations given to us and on the basis of the financial ratios,
ageing and expected dates of realisation of financial assets and payment of financial liabilities, other
information accompanying the standalone financial statements, our knowledge of the plans of the
Board of Directors and management and based on our examination of the evidence supporting the
assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty
exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one year from the
balance sheet date. We, however, state that this is not an assurance as to the future viability of the
company. We further state that our reporting is based on the facts up to the date of the audit report
and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one
year from the balance sheet date, will get discharged by the company as and when they fall due.
(xx) According to the information and explanations given to us, the Company does not have any unspent
amounts towards Corporate Social Responsibility in respect of any ongoing or other than ongoing
project as at the end of the financial year. Accordingly, reporting under clause 3(xx) of the Order is
not applicable to the Company.
STANDALONE
(xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of standalone
financial statements of the Company. Accordingly, no comment has been included in respect of said
clause under this report.
Manish Agrawal
Partner
Bengaluru
29 May 2023
Annexure II to the Independent Auditor’s Report of even date to the members of Sobha
Limited on the standalone financial statements for the year ended 31 March 2023
Independent Auditor’s Report on the internal financial controls with reference to the standalone
financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the
Act’)
1. In conjunction with our audit of the standalone financial statements of Sobha Limited (‘the Company’)
as at and for the year ended 31 March 2023, we have audited the internal financial controls with reference
to standalone financial statements of the Company as at that date.
Responsibilities of Management and Those Charged with Governance for Internal Financial
Controls
2. The Company’s Board of Directors is responsible for establishing and maintaining internal financial
controls based on the internal financial controls with reference to standalone financial statements
criteria established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (‘the Guidance
Note’) issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of the Company’s business, including adherence
to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and
errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable
financial information, as required under the Act.
Auditor’s Responsibility for the Audit of the Internal Financial Controls with Reference to Financial
Statements
3. Our responsibility is to express an opinion on the Company’s internal financial controls with reference
to standalone financial statements based on our audit. We conducted our audit in accordance with
the Standards on Auditing issued by the ICAI prescribed under Section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls with reference to standalone financial statements,
and the Guidance Note issued by the ICAI. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls with reference to standalone financial statements
were established and maintained and if such controls operated effectively in all material respects.
STANDALONE
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the
internal financial controls with reference to standalone financial statements and their operating
effectiveness. Our audit of internal financial controls with reference to standalone financial
statements includes obtaining an understanding of such internal financial controls, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the standalone financial
statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the Company’s internal financial controls with reference to standalone
financial statements.
Meaning of Internal Financial Controls with Reference to Standalone Financial Statements
6. A company’s internal financial controls with reference to standalone financial statements is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of standalone financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial controls with reference to standalone
financial statements include those policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of
the company;(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of standalone financial statements in accordance with generally accepted accounting
Annexure II to the Independent Auditor’s Report of even date to the members of Sobha
Limited on the standalone financial statements for the year ended 31 March 2023 (continued)
principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the
company’s assets that could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Standalone Financial Statements
7. Because of the inherent limitations of internal financial controls with reference to standalone financial
statements, including the possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation
of the internal financial controls with reference to standalone financial statements to future periods are
subject to the risk that the internal financial controls with reference to standalone financial statements
may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, adequate internal financial controls with
reference to standalone financial statements and such controls were operating effectively as at 31
March 2023, based on the internal financial control with reference to standalone financial statements
criteria established by the Company considering the essential components of internal control stated in
the Guidance Note issued by the ICAI.

Manish Agrawal
Partner
STANDALONE
Bengaluru
29 May 2023.
SOBHA LIMITED
STANDALONE BALANCE SHEET AS AT 31 MARCH 2023
(All amounts in ₹ millions, unless otherwise stated)
Particulars Note As at 31 March 2023 As at 31 March 2022 As at 1 April 2021

Restated(*) Restated(*)
ASSETS
Non-current assets
Property, plant and equipment 4 2,315.59 2,346.13 2,720.52
Investment property 5 2,767.92 2,168.14 2,119.03
Investment property under development 6 - - 700.58
Intangible asset under development 7 17.62 - -
Other intangible assets 8 0.06 0.14 0.21
Right of use assets 38 187.36 229.25 278.21
Financial assets
(i) Investments 9 4,521.29 4,398.54 3,975.63
(ii) Trade receivables 11 795.18 654.56 521.01
(iii) Loans 12 229.52 - -
(iii) Other financial assets 13 373.55 1,372.18 1,263.47
Income tax assets (net) 33 70.96 - -
Deferred tax asset (net) 33 138.80 189.27 215.91
Other non-current assets 14 9,297.10 3,699.54 4,542.44
20,714.95 15,057.75 16,337.01
Current assets
Inventories 10 82,866.90 72,830.38 71,388.28
Financial assets
(i) Trade receivables 11 2,097.60 3,502.14 1,934.98
(ii) Cash and cash equivalents 15 2,723.51 1,346.04 1,572.88
(iii) Bank balance other than (ii) above 16 1,681.32 384.34 392.61
(iv) Loans 12 437.65 342.88 303.45
(v) Other financial assets 13 4,718.79 4,884.69 5,802.94
Other current assets 14 6,078.94 12,783.64 12,948.23
100,604.71 96,074.11 94,343.37
Total assets 121,319.66 111,131.86 1,10,680.38
EQUITY AND LIABILITIES
Equity
Equity share capital 17 948.46 948.46 948.46
Other equity 18 22,462.22 21,833.80 20,483.29
Total equity 23,410.68 22,782.26 21,431.75
Liabilities
Non-current liabilities
Financial liabilities
(i) Borrowings 20 5,586.13 3,006.79 2,767.76

(ii) Lease liabilities 38 204.77 202.79 218.20
Provisions 22 228.85 174.70 151.46
6,019.75 3,384.28 3,137.42
Current liabilities
STANDALONE
(i) Borrowings 20 13,808.23 21,304.74 26,524.02

(iii) Trade payables
(A) Total outstanding dues of micro enterprises and small
23 - - -
enterprises; and
(B) Total outstanding dues of creditors other than micro enterprises
23 5,956.15 4,415.08 5,008.76
and small enterprises
(iv) Other financial liabilities 21 8,585.15 6,982.88 6,660.30
Other current liabilities 24 63,308.89 51,854.43 47,631.57
Provisions 22 202.77 154.55 138.50
Current tax Liabilities (net) 33 - 202.94 87.08
91,889.23 84,965.32 86,111.21
Total liabilities 97,908.98 88,349.60 89,248.63
Total equity and liabilities 121,319.66 111,131.86 110,680.38
(*) The comparative information is restated on account of correction of errors. Refer Note 45
Summary of significant accounting policies 2.2
The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date
For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of Sobha Limited
ICAI Firm registration number: 001076N/N500013 Ravi PNC Menon Jagadish Nangineni
Chairman Managing Director
DIN: 02070036 DIN: 01871780
Manish Agrawal
Partner
Yogesh Bansal Vighneshwar G Bhat
Membership No.: 507000
Chief Financial Officer Company Secretary and
Compliance Officer
ACS16651
Bengaluru Bengaluru
29 May 2023 29 May 2023
SOBHA LIMITED
STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2023
Particulars Note Year ended Year ended

31 March 2023 31 March 2022
Restated(*)
Income
Revenue from operations 25 33,280.86 25,471.27
Other income 26 977.79 880.97
Total income 34,258.65 26,352.24
Expenses
Land purchase cost 10,493.24 2,070.99
Cost of materials consumed 27 3,659.79 1,982.21
Purchase of project materials 9,491.24 5,180.10
Changes in Inventories of raw materials, land stock, work in progress and 28 (9,955.85) (1,225.29)
finished goods
Sub-contractor cost 8,100.68 6,381.37
Employee benefits expense 29 2,944.75 2,512.16
Finance cost 30 2,423.80 2,993.70
Depreciation and amortisation expense 31 638.71 678.16
Other expenses 32 5,145.19 3,468.11
Total expenses 32,941.55 24,041.51
Profit before tax 1,317.10 2,310.73
Tax expenses
Current tax 33 300.31 589.58
Deferred tax charge 33 63.90 29.67
Tax expense 364.21 619.25
Profit for the year 952.89 1,691.48
Other comprehensive income
STANDALONE
Item that will not be reclassified to profit or loss
Re-measurement on defined benefit plan 37 (53.36) (12.04)
Income tax relating to above 33 13.43 3.03
Other comprehensive income for the year, net of tax (39.93) (9.01)
Total comprehensive income for the year 912.96 1,682.47
Earnings per equity share [nominal value of ₹ 10 per share]

Basic and diluted (in ₹) 10.05 17.83
Manish Agrawal DIN: 02070036 DIN: 01871780
Partner
Membership No.: 507000 Yogesh Bansal Vighneshwar G Bhat
Compliance Officer
Bengaluru Bengaluru ACS16651
29 May 2023 29 May 2023
SOBHA LIMITED
STANDALONE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023
Year ended year ended

Particulars
31 March 2023 31 March 2022
Restated
A. Cash flows from operating activities
Adjustments to reconcile profit before tax to net cash flows from operating activities
Depreciation and amortization 638.71 678.16
Gain on sale of property, plant and equipment and Investment property (1.00) (351.00)
Finance costs (including fair value change in financial instruments) 2,423.80 2,993.70
Finance income (including fair value change in financial instruments) (329.53) (331.72)
Reversal of impairement loss on financial assets (50.55)
Share of (profit) /loss from partnership firm (19.06) 5.73
Impairment of property, plant and equipment 58.70 -
Allowance for credit losses 313.83 14.98
Bad debts written off - 3.54
Provision for land advances 168.16 -
Liabilities written back (327.56) (6.00)
Other advances written off 60.95 -
Operating profit before working capital changes 4,253.55 5,318.12
Working capital adjustments
Changes in trade receivables 959.16 (1,717.17)
Changes in inventories (10,036.52) (1,442.10)
Changes in other current and non-current financial assets 1,181.92 1,284.00
Changes in other current and non-current assets 880.00 978.60
Changes in trade payables 1,868.63 (593.68)
Changes in provisions 102.37 39.29
Changes in other current financial liabilities 1,602.26 325.00
Changes in other current liabilities 11,472.69 4,306.00
Cash generated from operating activities 12,284.06 8,498.06
Income tax paid (net of refund) (557.35) (465.00)

Net cash flows from operating activities (A) 11,726.71 8,033.06
B. Cash flow from investing activities

STANDALONE
Purchase of property, plant and equipment, investment property and intangible assets (1,221.37) (256.52)
Proceeds from sale of property, plant and equipment and investment property 68.00 661.31
Loans to subsidiaries (850.00) (9.43)
Loans repaid by subsidiaries 549.84 -
Contribution to Partnership firm (103.69) (417.13)
Investments in fixed deposits (net) (1,304.97) (74.00)
Interest income 98.24 32.05
Net cash flows used in investing activities (B) (2,763.95) (63.72)
C. Cash flow from financing activities

Repayments of current borrowings (net) (6,438.87) (8,842.36)
Proceeds from non-current borrowings 2,723.80 4,286.72
Repayment of non-current borrowings (1,311.45) (419.99)
Repayment of principal portion of lease liabilities (52.10) (48.17)
Repayment of interest portion of lease liabilities (27.26) (30.83)
Interest paid (2,194.55) (2,809.70)
Dividend paid on equity shares (284.86) (331.97)
Net cash flows used in financing activities (C) (7,585.29) (8,196.30)
Net increase/(decrease) in cash and cash equivalents (A+B+C) 1,377.47 (226.96)

Cash and cash equivalents at the beginning of the year 1,346.04 1,573.00
Cash and cash equivalents at the end of the year (Refer Note 15) 2,723.51 1,346.04
Less: Book overdraft from scheduled banks (Refer Note 21) (1,025.86) (271.10)
Net Cash and cash equivalents at the end of the year 1,697.65 1,074.94
SOBHA LIMITED
STANDALONE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 (continued)
Note:
(i) Changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes:
Non-cash changes
Liabilities As at 1st April Cash flow Amortization Accrued Initial As at 31
2022 of transaction Interest recognition of March 2023
cost Lease Liability
Borrowings from bank and other parties 23,816.44 (4,531.43) 109.35 - - 19,394.36
Non-convertible debentures 495.09 (495.09) - - - -
Interest on Borrowings 34.05 (2,194.55) - 2,188.65 - 28.15
Unclaimed dividend 2.32 (0.32) - - - 2.00
Lease liabilities 253.49 (79.36) - 27.26 31.42 232.81
Non-cash changes
Non-convertible debentures - 500.00 (4.91) - - 495.09
The comparative information is restated on account of correction of errors. Refer Note 45

The above Standalone Cash Flow Statement has been prepared under the “Indirect Method’ as set out in the Ind AS 7, ‘Statement of Cash flow’
DIN: 02070036 DIN: 01871780
Manish Agrawal
STANDALONE
Partner
Compliance Officer
ACS16651
Bengaluru Bengaluru
29 May 2023 29 May 2023
SOBHA LIMITED
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2023
A. Equity share capital*
Amount
Balance as at 1 April 2021 948.46

Changes in equity share capital during the year -
Balance as at 31 March 2022 948.46

B. Other equity**
Attributable to owners of the Company

Reserves and Surplus Items of OCI Total
Capital redemp- Securities General Retained Other items
tion reserve premium reserve earnings of OCI
Balance as at 1 April 2021 (as previously reported) 119.47 9,328.92 4,235.65 8,239.58 (1.34) 21,922.28
Impact of correction of errors (Refer Note 45) - - - (1,438.99) - (1,438.99)
Balance as at 1 April 2021 (Restated) 119.47 9,328.92 4,235.65 6,800.59 (1.34) 20,483.29
Total comprehensive income for the year ended 31 March
2022 (Restated)
Profit for the year - - - 1,691.98 - 1,691.98
Other comprehensive income - - - - (9.01) (9.01)
Total comprehensive income for the year (restated) - - - 1,691.48 (9.01) 1,682.47
Transfer to other reserves
General reserve - - 112.85 (112.85) - -
Total transfer to other reserves - - 112.85 (112.85) - -

Transaction with owners, recorded directly in equity
Dividend - - - (331.96) - (331.96)
Total distribution to owners - - - (331.96) - (331.96)
Balance as at 31 March 2022 (Restated) 119.47 9,328.92 4,348.50 8,039.42 (10.35) 21,833.80
Balance as at 31 March 2022 (previously reported) 119.47 9,328.92 4,348.50 8,923.29 (10.35) 22,709.83
Impact of correction of errors (Refer Note 45) (876.03) - (876.03)
Total comprehensive income for the year ended 31 March 2023
STANDALONE
Profit for the year - - - 952.89 - 952.89

Total comprehensive income for the year - - - 952.89 (39.93) 912.96
General reserve - - 95.29 (95.29) - -
Dividend - - - (284.54) - (284.54)
Balance As at 31 March 2023 119.47 9,328.92 4,443.79 8,620.32 (50.28) 22,462.22

(*) Refer Note 17
(**) Refer Note 18
Partner Yogesh Bansal Vighneshwar G Bhat
Membership No.: 507000 Chief Financial Officer Company Secretary and
Compliance Officer
29 May 2023 29 May 2023
SOBHA LIMITED
NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Corporate information
Sobha Limited (the ‘Company’) was incorporated on 07 August 1995 under the provision of
erstwhile Companies Act, 1956. The Company is engaged in the business of real estate construction,
development, sale, management and operation of all or any part of townships, housing projects,
commercial premises and other related activities. The Company is also engaged in manufacturing
activities related to interiors, glazing and metal works and concrete products which also provides
backward integration to Sobha’s turnkey projects.
The Company is a public limited company, incorporated and domiciled in India and has its registered
office at, Sarjapur – Marathahalli Outer Ring Road (ORR), Devarabisanahalli, Bellandur Post, Bengaluru
- 560 103. The Company’s equity shares are listed on two recognized stock exchanges in India namely
National Stock Exchange of India Limited and BSE Limited.
2.1 Basis of preparation

a. Statement of Compliance
The standalone financial statements of the Company have been prepared in accordance with
the Indian Accounting Standards (Ind-AS) specified under section 133 of the Companies Act
2013 read with the Companies (Indian Accounting Standards) Rules 2015 and other accounting
principles generally accepted in India.
The standalone financial statements for the year ended 31 March 2023 were authorized and
approved for issue by the Board of Directors on 29 May 2023. The revision to financial statements
is permitted by Board of Directors after obtaining necessary approvals or at the instance of
regulatory authorities as per provisions of Companies Act, 2013.
b. Functional and presentation currency
These standalone financial statements are presented in Indian Rupee (‘₹’) which is also the
functional and presentation currency of the Company. All amounts have been rounded-off to
STANDALONE
the nearest million (two decimals), unless otherwise indicated.
c. Basis of measurement
These standalone financial statements have been prepared on going concern basis under the
historical cost basis except for certain financial instruments which are measured at fair value at
the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services.
d. Use of estimates
The preparation of financial statements in conformity with Ind AS requires the management to
make judgments, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the
reporting period. The Management believes that, although these estimates used in preparation
of the financial statements are prudent and reasonable and are based on the management’s best
knowledge of current events and actions, uncertainty about these assumptions and estimates
could result in the outcomes requiring a material adjustment to the carrying amounts of assets or
liabilities. The effect of change in an accounting estimate is recognized prospectively. Significant
management judgement in applying accounting policies and estimation uncertainty have been
disclosed in note 2.3.
SOBHA LIMITED
e. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date, regardless
of whether that price is directly observable or estimated using another valuation technique.
In estimating the fair value of an asset or a liability, the Company takes into account the
characteristics of the asset or liability if market participants would take those characteristics into
account when pricing the asset or liability at the measurement date. Fair value for measurement
and/or disclosure purposes in these financial statements is determined on such a basis, except
for leasing transactions that are within the scope of Ind AS 116, ‘Leases’, and measurements that
have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2,
‘Inventories’, or value in use in Ind AS 36, ‘Impairment of assets’.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used
in the valuation techniques have been disclosed in note 2.2(o)(xi).
f. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current
classification.
The Company classifies an asset as current asset when:
- it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
- it holds the asset primarily for the purpose of trading;
- it expects to realise the asset within twelve months after the reporting period; or
- the asset is cash or a cash equivalent unless the asset is restricted from being exchanged
or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when –

- it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
STANDALONE
- it holds the liability primarily for the purpose of trading;

- the liability is due to be settled within twelve months after the reporting period; or
- it does not have an unconditional right to defer settlement of the liability for at least twelve
months after the reporting period. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity instruments do not affect its
classification.
All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their
realisation in cash or cash equivalents.
The real estate development projects undertaken by the Company generally run over a period
ranging up to 5 years. Based on the nature of service and the time between the acquisition of
assets for development and their realization in cash and cash equivalents, Operating assets
and liabilities relating to such projects are classified as current based on an operating cycle as 5
years. For all other assets and liabilities the Company has considered twelve months.
SOBHA LIMITED
2.2 Significant accounting policies
a) Revenue recognition
I. Revenue from contracts with customers
Revenue from contracts with customers is recognised when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services. Revenue is measured based on
the transaction price, which is the consideration, adjusted for discounts and other credits, if any,
as specified in the contract with the customer. The Company presents revenue from contracts
with customers net of indirect taxes in its statement of profit and loss.
The Company considers whether there are other promises in the contract that are separate
performance obligations to which a portion of the transaction price needs to be allocated. In
determining the transaction price, the Company considers the effects of variable consideration,
the existence of significant financing components, non-cash consideration, and consideration
payable to the customer (if any).
The Company has applied five step model as per Ind AS 115 ‘Revenue from contracts with
customers’ to recognise revenue in the standalone financial statements. The Company satisfies
a performance obligation and recognises revenue over time, if one of the following criteria is
met:
a) The Customer simultaneously receives and consumes the benefits provided by the
Company’s performance as the Company performs; or
b) The Company’s performance creates or enhances an asset that the customer controls as
the asset is created or enhanced; or
c) The Company’s performance does not create an asset with an alternative use to the
Company and the entity has an enforceable right to payment for performance completed
to date.
STANDALONE
For performance obligations where any of the above conditions are not met, revenue is
recognised at the point in time at which the performance obligation is satisfied.
Revenue is recognised either at point of time or over a period of time based on various
conditions as included in the contracts with customers.
The billing schedules agreed with customers include periodic performance-based billing and/
or milestone-based progress billings. Revenues in excess of billing are classified as unbilled
revenue, while billing in excess of revenues is classified as contract liabilities (which we refer to
as deferred revenues).
i) Recognition of revenue from sale of real estate property
Revenue from real estate development of residential unit is recognised at the point in time,
when the control of the asset is transferred to the customer, which generally coincides
with transfer of physical possession of the residential unit to the customer ie., handover/
deemed handover of the residential units. Deemed handover of the residential units is
considered upon intimation to the customers about receipt of occupancy certificate and
receipt of substantial sale consideration.
Revenue consists of sale of undivided share of land and constructed area to the customer,
which have been identified by the Company as a single performance obligation, as they
are highly interrelated/interdependent.
SOBHA LIMITED
Further, for projects executed through joint development arrangements not being jointly
controlled operations, wherein the land owner/possessor provides land and the Company
undertakes to develop properties on such land and in lieu of land owner providing land,
the Company has agreed to transfer certain percentage of constructed area or certain
percentage of the revenue proceeds, the revenue from the development and transfer
of constructed area/revenue sharing arrangement in exchange of such development
rights/land is being accounted on gross basis on launch of the project. Revenue is
recognised over time using input method, on the basis of the inputs to the satisfaction
of a performance obligation relative to the total expected inputs to the satisfaction of
that performance obligation.
The revenue is measured at the fair value of the land received, adjusted by the amount
of any cash or cash equivalents transferred. When the fair value of the land received
cannot be measured reliably, the revenue is measured at the fair value of the estimated
construction service rendered to the land owner, adjusted by the amount of any cash or
cash equivalents transferred. The fair value so estimated is considered as the cost of land
in the computation of percentage of completion for the purpose of revenue recognition
as mentioned above.
For contracts involving sale of real estate unit, the Company receives the consideration in
accordance with the terms of the contract in proportion of the percentage of completion of
such real estate project and represents payments made by customers to secure
performance obligation of the Company under the contract enforceable by customers.
Such consideration is received and utilised for specific real estate projects in accordance
with the requirements of the Real Estate (Regulation and Development) Act, 2016.
Consequently, the Company has concluded that such contracts with customers do not
involve any financing element since the same arises for reasons explained above, which is
other than for provision of finance to/from the customer.
ii) Recognition of revenue from contractual projects

STANDALONE
Revenue from contractual project is recognised over time, using an input method with
reference to the stage of completion of the contract activity at the end of the reporting
period, measured based on the proportion of contract costs incurred for work performed
to date relative to the estimated total contract costs.
The Company recognises revenue only when it can reasonably measure its progress in
satisfying the performance obligation. Until such time, the Company recognises revenue
to the extent of cost incurred, provided the Company expects to recover the costs
incurred towards satisfying the performance obligation.
When it is probable that total contract costs will exceed total contract revenue, the
expected loss is recognised as an expense immediately when such probability is
determined.
iii) Recognition of revenue from sale of land and development rights

Revenue from sale of land and development rights is recognised upon transfer of all
significant risks and rewards of ownership of such real estate/property, as per the terms
of the contracts entered into with buyers, which generally coincides with the firming of
the sales contracts/agreements. Revenue from sale of land and development rights is
only recognised when transfer of legal title to the buyer is not a condition precedent for
transfer of significant risks and rewards of ownership to the buyer.
SOBHA LIMITED
iv) Recognition of revenue from glazing works
Revenue from glazing projects is recognised over time, using an output method with
period, measured based on the proportion of the budgeted cost associated to the units
produced/installed for work performed to date relative to the total contractual obligation
of production/installation of such units.
The Company recognises revenue only when it can reasonably measure its progress in
satisfying the performance obligation. Until such time, the Company recognises revenue
to the extent of cost incurred, provided the Company expects to recover the costs
incurred towards satisfying the performance obligation.
determined.
v) Recognition of revenue from interior works and sale of concrete products and scrap
Revenue is recognised when control of the goods are transferred to the customer at an
amount that reflects the consideration to which the Company expects to be entitled in
exchange for those goods. Revenue excludes indirect taxes and is after deduction of any
trade discounts.
vi) Recognition of revenue from maintenance and other services

Revenue in respect of maintenance services and other services is recognised on an
accrual basis, in accordance with the terms of the respective contract as and when the
Company satisfies performance obligations by delivering the services as per contractual
agreed terms.
vii) Other operating income
STANDALONE
Interest on delayed receipts, cancellation/forfeiture income, transfer fees, marketing fee
from customers are recognised based upon underlying agreements with customers and
when reasonable certainty of collection is established.
viii) Contract balances

Contract asset is the right to consideration in exchange for goods or services transferred
to the customer. If the Company performs by transferring goods or services to a customer
before the customer pays consideration or before payment is due, a contract asset is
recognised for the earned consideration that is conditional.
Trade receivable represents the Company’s right to an amount of consideration that is
unconditional (i.e., only the passage of time is required before payment of the consideration
is due).
Contract liability is the obligation to transfer goods or services to a customer for which
the Company has received consideration (or an amount of consideration is due) from
the customer. If a customer pays consideration before the Company transfers goods or
services to the customer, a contract liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract liabilities are recognised as revenue
when the Company performs under the contract.
SOBHA LIMITED
ix) Cost to obtain a contract

The Company recognises as an asset the incremental costs of obtaining a contract with
a customer if the Company expects to recover those costs. The Company incurs costs
such as sales commission when it enters into a new contract, which are directly related
to winning the contract. The asset recognised is amortised on a systematic basis that is
consistent with the transfer to the customer of the goods or services to which the asset
relates.
II. Rental income from operating leases

Rental income receivable under operating leases (excluding variable rental income) is recognized
in the statement of profit and loss on a straight-line basis over the term of the lease including
lease income on fair value of refundable security deposits. Rental income under operating leases
having variable rental income is recognized as per the terms of the contract.
III. Dividend income

Revenue is recognised when the shareholders’ or unit holders’ right to receive payment is
established, which is generally when shareholder approve the dividend.
IV. Share in profit/loss of Limited liability partnership (LLPs) and partnership firms
The Company’s share in profits/losses from LLPs and partnership firm, where the Company is a
partner, is recognised as income/loss in the statement of profit and loss as and when the right
to receive its profit/loss share is established by the Company in accordance with the terms of
contract between the Company and the partnership entity. Share in profit/loss is recorded under
Partners Current Account.
V. Interest income
Interest income, including income arising from other financial instruments, is recognised using the
effective interest rate method.
STANDALONE
b) Borrowing cost
Borrowing costs consist of interest and other costs that an entity incurs in connection with the
borrowing of funds.
Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a
substantial period of time to get ready for their intended use are capitalised as part of the cost of that
asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.
The Company treats as part of general borrowings any borrowing originally made to develop a
qualifying asset when substantially all of the activities necessary to prepare that asset for its intended
use or sale are complete.
c) Inventories
Inventories are valued at the lower of cost and net realisable value. Cost is determined based on a
weighted average basis. Net realizable value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated costs necessary to make the sale.
I. Related to real estate and contractual activity
Direct expenditure relating to real estate activity is inventorised. Other expenditure (including
borrowing costs) during construction period is inventorised to the extent the expenditure is
directly attributable cost of bringing the asset to its working condition for its intended use. Other
expenditure (including borrowing costs) incurred during the construction period which is not
SOBHA LIMITED
directly attributable for bringing the asset to its working condition for its intended use is charged
to the statement of profit and loss. Direct and other expenditure is determined based on specific
identification to the real estate activity. Cost incurred/items purchased specifically for projects
are taken as consumed as and when incurred/received.
i) Work-in-progress (Real Represents cost incurred in respect of projects where

estate) the revenue is yet to be recognized and includes
cost of land (including development rights and non-
refundable deposits paid, if any under joint development
arrangements (‘JDA’)), internal development costs,

external development charges, construction costs,
overheads, borrowing cost etc. Land/development rights
received under JDA is measured at the fair value of the
estimated construction service rendered to the land
owner and the same is accounted on launch of the project.
ii) Stock of units/plots in Represents cost incurred in respect of completed real

completed real estate estate project net cost of revenue.
projects
iii) Building materials Cost comprises of purchase price and other costs incurred
in bringing the inventories to their present location and
condition.
iv) Land stock Represents land other than area transferred to work-
in-progress at the commencement of construction.
Cost comprises of purchase price under agreement to
purchase, stamp duty, registration charges, brokerage
STANDALONE
cost and other incidental expenses.
II. Related to glazing, interiors and concrete products activity

i) Raw material, components Cost includes cost of purchase and other costs incurred
and stores in bringing the inventories to their present location and
condition.
ii) Work-in-progress and Cost includes cost of direct materials and labour and a
Finished goods proportion of manufacturing overheads based on normal
operating capacity.
d) Advance paid towards land procurement

Advances paid by the Company to the seller/intermediary towards outright purchase of land is
recognised as land advance under other assets during the course of obtaining clear and marketable
title, free from all encumbrances and transfer of legal title to the Company, whereupon it is transferred
to land stock under inventories. Management is of the view that these advances are given under
normal trade practices and are neither in the nature of loans nor advance in the nature of loans. (Refer
note 14)
SOBHA LIMITED
e) Foreign currency transactions and balances
i) Initial recognition
Foreign currency transactions are recorded in the functional currency, by applying the exchange
rate between the functional currency and the foreign currency at the date of the transaction.
ii) Conversion
Foreign currency monetary items are retranslated using the exchange rate prevailing at
the reporting date. Non-monetary items, which are measured in terms of historical cost
denominated in a foreign currency, are reported using the exchange rate at the date of the
transaction. Non-monetary items, which are measured at fair value or other similar valuation
denominated in a foreign currency, are translated using the exchange rate at the date when
such value was determined.
iii) Exchange differences

The Company accounts for exchange differences arising on translation/settlement of foreign
currency monetary items as income or as expense in the period in which they arise.
f) Property, plant and equipment
i) Recognition and initial measurement

Property, plant and equipment at their initial recognition are stated at their cost of acquisition.
Cost of an item of property, plant and equipment comprises its purchase price, borrowing costs
(if capitalization criteria are met), import duties, non-refundable taxes and directly attributable
cost of bringing the asset to its working condition for its intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price. The Company identifies and determines
cost of each component/part of the asset separately, if the component/part have a cost which
is significant to the total cost of the asset and has useful life that is materially different from
that of the remaining asset.
The cost of a self-constructed item of property, plant and equipment comprises the cost of
STANDALONE
materials, direct labour, borrowing costs (if capitalization criteria are met) and any other costs
directly attributable to bringing the asset to working condition for its intended use.
Advances paid towards the acquisition of property, plant and equipment outstanding at each
balance sheet date is classified as capital advances under other non-current assets.
ii) Subsequent measurement

Items of property, plant and equipment are measured at cost, less accumulated depreciation
and any accumulated impairment losses, if any. When significant parts of plant and equipment
are required to be replaced at intervals, the Company depreciates them separately based on
their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised
in the carrying amount of the plant and equipment as a replacement if the recognition criteria
are satisfied.
iii) Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits
associated with the expenditure will flow to the Company and the cost of the item can be
measured reliably. All other expenses on existing property, plant and equipment, including day-
to-day repair and maintenance expenditure and cost of replacing parts, are charged to the
statement of profit and loss for the period during which such expenses are incurred.
SOBHA LIMITED
iv) Derecognition
An item of Property, plant and equipment and any significant part initially recognized is de-
recognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
income statement when the Property, plant and equipment is de-recognized.
g) Investment property
Investment property is property held either to earn rental income or for capital appreciation or
for both. Upon initial recognition, an investment property is measured at cost, including related
transaction costs. The cost comprises purchase price, cost of replacing parts, borrowing cost,
if capitalization criteria are met and directly attributable cost of bringing the asset to its working
condition for the intended use. Any trade discount and rebates are deducted in arriving at the
purchase price.
The cost of a self-constructed item of Investment property comprises the cost of materials,
direct labour, borrowing costs (if capitalization criteria are met) and any other costs directly
attributable to bringing the asset to working condition for its intended use.
Subsequent to initial recognition, investment property is measured at cost less accumulated
depreciation and accumulated impairment losses, if any. When significant parts of the investment
property are required to be replaced at intervals, the Company depreciates them separately
based on their specific useful lives.
associated with the expenditure will flow to the Company and the cost of the item can be
measured reliably. All other repair and maintenance costs are recognised in statement of profit
STANDALONE
or loss as incurred.
iv) Derecognition
Investment property is derecognised either when control of the same is transferred to the buyer
or when it is permanently withdrawn from use and no future economic benefit is expected from
its disposal. Any gain or loss on disposal of investment property (calculated as the difference
between the net proceeds from disposal and the carrying amount of the item) is recognised in
profit or loss.
v) Reclassification from / to investment property
Transfers to (or from) investment property are made only when there is a change in use. Transfers
between investment property, owner-occupied property and inventories do not change the
carrying amount of the property transferred and they do not change the cost of that property
for measurement or disclosure purposes.
vi) Fair value disclosure
Though the Company measures investment property using cost-based measurement, the fair value
of investment property is disclosed in the notes. Fair values are determined based on an annual
evaluation performed by an accredited external independent valuer.
SOBHA LIMITED
h) Depreciation on property, plant and equipment and Investment property

Depreciation is calculated on written down value basis using the following useful lives prescribed under
Schedule II of the Act, except where specified.
Useful lives estimated by the

Particulars management
(in years)
Property, plant and equipment
Factory buildings 30
Buildings - other than factory buildings 60
Buildings - temporary structure for precast plant 8
Buildings - temporary structure 3
Plant and machinery
i. General plant and machinery 15
ii. Plant and machinery - Civil construction 12
iii. Plant and machinery - Electrical installations 10
iv. Plant and machinery - Precast plant 8
v. Plant and machinery - Others 3-5
Furniture and fixtures 10
Motor vehicles - Two wheelers 10
Motor vehicles - Four wheelers 8
Computers
i. Computer equipment 3
ii. Servers and network equipment 6
STANDALONE
Office equipment 5
Investment property
Buildings - One Sobha 46-48
Plant and machinery
ii. Plant and machinery 12
Office equipments 5
The Company, based on technical assessment made by technical expert and management estimate,
depreciates certain items of building and plant and equipment over estimated useful lives which are
different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management
believes that these estimated useful lives are realistic and reflect fair approximation of the period over
which the assets are likely to be used.
Steel scaffolding items are depreciated using straight line method over a period of 6 years, which is
estimated to be the useful life of the asset by the management based on planned usage and technical
advice thereon. These lives are higher than those indicated in Schedule II.
SOBHA LIMITED
Leasehold land is amortized on a straight-line basis over the balance period of lease
Freehold land is not depreciated and is stated at cost less impairment loss, if any.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.
i) Capital work-in-progress and intangible assets under development

Capital work-in-progress and intangible assets under development represents expenditure incurred
in respect of capital projects/intangible assets under development which are not yet ready for their
intended use and are carried at cost less accumulated impairment loss, if any.
Depreciation/amortisation is not provided on capital work-in-progress and intangible assets under
development until construction/installation are complete and the asset is ready for its intended use.
j) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less accumulated amortization and accumulated
impairment losses, if any. Intangible assets, comprising of software and intellectual property rights
are amortized on a straight line basis over a period of 3 years, which is estimated to be the useful life
of the asset and assessed for impairment whenever there is an indication that the intangible asset
may be impaired. The amortisation period and the amortisation method for an intangible asset with
a finite useful life are reviewed at least at the end of each reporting period. Gains or losses arising
from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the Statement of Profit or Loss
when the asset is derecognised.
k) Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.
STANDALONE
I. Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except
for short-term leases and leases of low-value assets. The Company recognises lease liabilities
to make lease payments and right-of-use assets representing the right to use the underlying
assets.
i) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease
(i.e. the date the underlying asset is available for use). Right-of-use assets are measured
at cost, less any accumulated depreciation and impairment losses and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use assets includes the amount
of lease liabilities recognised, initial direct costs incurred and lease payments made at or
before the commencement date less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the lease term.
If ownership of the leased asset transfers to the Company at the end of the lease term
or the cost reflects the exercise of a purchase option, depreciation is calculated using the
estimated useful life of the asset.
SOBHA LIMITED
The right-of-use assets are also subject to impairment. Refer to the accounting policies in
note 2.2(p)(ii) on impairment of non-financial assets.
ii) Lease liabilities
At the commencement date of the lease, the Company recognises lease liabilities
measured at the present value of lease payments to be made over the lease term. The
lease payments include fixed payments (including in-substance fixed payments) less
any lease incentives receivable, variable lease payments that depend on an index or
a rate and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to
be exercised by the Company and payments of penalties for terminating the lease, if
the lease term reflects the Company exercising the option to terminate. Variable lease
payments that do not depend on an index or a rate are recognised as expenses in
the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit
in the lease is not readily determinable. After the commencement date, the amount of
lease liabilities is increased to reflect the accretion of interest and reduced for the lease
payments made. In addition, the carrying amount of lease liabilities is remeasured if there is
a modification, a change in the lease term, a change in the lease payments (e.g. changes to
future payments resulting from a change in an index or rate used to determine such lease
payments) or a change in the assessment of an option to purchase the underlying asset.
iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases
(i.e. those leases that have a lease term of 12 months or less from the commencement
date and do not contain a purchase option). It also applies the lease of low-value assets
recognition exemption to leases of assets that are considered to be low value. Lease
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payments on shortterm leases and leases of low value assets are recognised as expense
on a straight-line basis over the lease term.
II. Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental
to ownership of the asset are classified as operating leases. Assets subject to operating
leases are included under Investment property.
Lease income from operating lease is recognized on a straight-line basis over the term
of the relevant lease including lease income on fair value of refundable security deposits,
unless the lease agreement explicitly states that increase is on account of inflation. Costs,
including depreciation, are recognized as an expense in the statement of profit and loss.
Initial direct costs incurred in negotiating and arranging an operating lease are added to
the carrying amount of the leased asset and recognised over the lease term on the same
basis as rental income.
SOBHA LIMITED
l) Retirement and other employee benefits
i) Employee Provident Fund and Employee State Insurance
Retirement benefits in the form of state governed Employee Provident Fund and Employee
State Insurance are defined contribution schemes (collectively the ‘Schemes’). The Company
has no obligation, other than the contribution payable to the Schemes. The Company recognizes
contribution payable to the Schemes as expenditure, when an employee renders the related
service. The contribution paid in excess of amount due is recognized as an asset and the
contribution due in excess of amount paid is recognized as a liability.
ii) Gratuity
Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability
recognised in the balance sheet in respect of gratuity is the present value of the defined benefit/
obligation at the balance sheet date, together with adjustments for unrecognised actuarial gains
or losses and past service costs. The defined benefit/ obligation is calculated at or near the
balance sheet date by an independent actuary using the projected unit credit method. This
is based on standard rates of inflation, salary growth rate and mortality. Discount factors are
determined close to each year-end by reference to market yields on government bonds that
have terms to maturity approximating the terms of the related liability. Service cost and net
interest expense on the Company’s defined benefit plan is included in statement of profit and
loss. Actuarial gains/ losses resulting from re-measurements of the liability are included in other
comprehensive income in the period in which they occur and are not reclassified to profit or loss
in subsequent periods.
The Company makes contributions to Sobha Developers Employees Gratuity Trust (‘the
trust’) to discharge the gratuity liability to employees. Provision towards gratuity, a defined
benefit plan, is made for the difference between actuarial valuation by an independent
actuary and the fund balance, as at the year-end.
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iii) Compensated absences
Accumulated leave, which is expected to be utilized within the next twelve months, is treated
as short-term employee benefit. The Company measures the expected cost of such absences
as the additional amount that it expects to pay as a result of the unused entitlement that has
accumulated at the reporting date.
The Company presents the entire leave as a current liability in the balance sheet, since it does
not have an unconditional right to defer its settlement for 12 months after the reporting date.
iv) Other short-term benefits

Short-term employee benefits comprising employee costs including performance bonus is
recognized in the statement of profit and loss on the basis of the amount paid or payable for
the period during which services are rendered by the employee.
m) Provisions, contingent assets and contingent liabilities
i) Provisions
Provisions are recognized only when there is a present obligation (legal or constructive), as
a result of past events and it is probable that an outflow of resources embodying economic
SOBHA LIMITED
benefits will be required to settle the obligation and when a reliable estimate of the amount
of obligation can be made at the reporting date. Provisions are discounted to their present
values, where the time value of money is material, using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
When the Company expects some or all of a provision to be reimbursed, the reimbursement
is recognised as a separate asset, but only when the reimbursement is virtually certain. The
expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.
ii) Onerous contracts
If the Company has a contract that is onerous, the present obligation under the contract is
recognised and measured as a provision. However, before a separate provision for an onerous
contract is established, the Company recognises any impairment loss that has occurred on
assets dedicated to that contract.
An onerous contract is a contract under which the unavoidable costs (i.e. the costs that the
Company cannot avoid because it has the contract) of meeting the obligations under the contract
exceed the economic benefits expected to be received under it. The unavoidable costs under a
contract reflect the least net cost of exiting from the contract, which is the lower of the cost of
fulfilling it and any compensation or penalties arising from failure to fulfil it. These estimates are
reviewed at each reporting date and adjusted to reflect the current best estimates.
iii) Contingent liabilities
A contingent liability is a possible obligation that arises from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation that
is not recognized because it is not probable that an outflow of resources will be required
to settle the obligation. A contingent liability also arises in extremely rare cases where
there is a liability that cannot. be recognized because it cannot be measured reliably. The
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Company does not recognize a contingent liability but discloses it in the financial statements,
unless the possibility of an outflow of resources embodying economic benefits is remote.
iv) Contingent assets

Contingent assets are neither recognised nor disclosed except when realisation of income is
virtually certain, related asset is disclosed.
n) Income taxes
Income tax expense comprises current tax expense and the net change in the deferred tax asset or
liability during the year. Current and deferred tax are recognized in the statement of profit and loss,
except when they relate to items that are recognized in other comprehensive income or directly in
equity, in which case, the current and deferred tax are also recognized in other comprehensive income
or directly in equity, respectively.
i) Current income tax

Current income tax for the current and prior periods are measured at the amount expected
to be recovered from or paid to the taxation authorities based on the taxable income for that
period. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the balance sheet date.
SOBHA LIMITED
ii) Deferred income tax

Deferred income tax is recognized on temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes, except when the deferred income tax arises from the initial recognition
of goodwill or an asset or liability in a transaction that is not a business combination and
affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred income tax assets are recognized for all deductible temporary differences, carry
forward of unused tax credits and unused tax losses, to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available
to allow all or part of the deferred income tax asset to be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to
apply in the period when the asset is realized or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at the balance sheet date.
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to
set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax
liabilities relate to income taxes levied by the same tax authority.
Deferred tax relating to items recognized outside profit or loss is recognized outside profit or
loss (either in other comprehensive income or in equity). Deferred tax items are recognized in
correlation to the underlying transaction either in OCI or directly in equity.
o) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
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i) Initial recognition and measurement of financial assets and liabilities
Financial assets and liabilities are recognized when the Company becomes a party to the
contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair
value, however, trade receivables and trade payables that do not contain a significant financing
component are measured at transaction value and investments in subsidiaries are measured at
cost in accordance with Ind AS 27 - Seperate financial statements. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from the fair value measured on initial recognition of financial asset or financial liability.
ii) Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost if these financial assets are held
within a business whose objective is to hold these assets in order to collect contractual cash
flows and the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
iii) Financial assets at fair value through other comprehensive income
Financial assets are measured at fair value through other comprehensive income if these financial
assets are held within a business whose objective is achieved by both collecting contractual cash
SOBHA LIMITED
flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
iv) Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortized
cost or at fair value through other comprehensive income on initial recognition. The transaction
costs directly attributable to the acquisition of financial assets and liabilities at fair value through
profit or loss are immediately recognized in statement of profit and loss.
v) Debt instruments at amortized cost

A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost
using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account
any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
The EIR amortization is included in finance income in the profit or loss. The losses arising from
impairment are recognized in the profit or loss. This category generally applies to trade and
other receivables.
vi) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in
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the near term. This category also includes derivative financial instruments entered into by the
Company that are not designated as hedging instruments. Gains or losses on liabilities held for
trading are recognized in the profit or loss.
vii) Financial liabilities at amortized cost

Financial liabilities are subsequently carried at amortized cost using the effective interest (‘EIR’)
method.
Interest-bearing loans and borrowings are subsequently measured at amortized cost using EIR
method. For trade and other payables maturing within one year from the balance sheet date,
the carrying amounts approximate fair value due to the short maturity of these instruments.
viii) De-recognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire or it transfers the financial asset and the transfer qualifies for
derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized
when the obligation specified in the contract is discharged or cancelled or expires.
ix) Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition.
After initial recognition, no reclassification is made for financial instruments.
SOBHA LIMITED
x) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
xi) Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses following hierarchy
and assumptions that are based on market conditions and risks existing at each reporting date.
Fair value hierarchy:
All assets and liabilities for which fair value is measured or disclosed in the standalone financial
statements are categorized within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value measurement as a whole:
● Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or
liabilities
● Level 2 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
value measurement is unobservable
For assets and liabilities that are recognized in the standalone financial statements on a recurring
basis, the Company determines whether transfers have occurred between levels in the hierarchy
by re-assessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
xii) Investment in equity instruments of subsidiaries (including partnership firms), joint ventures
and associates
Investment in equity instruments of subsidiaries, joint ventures and associates are stated at cost
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as per Ind AS 27 ‘Separate Financial Statements’. Where the carrying amount of an investment
is greater than its estimated recoverable amount, it is assessed for recoverability and in case
of permanent diminution, provision for impairment is recorded in statement of Profit and Loss.
On disposal of investment, the difference between the net disposal proceeds and the carrying
amount is charged or credited to the Statement of Profit and Loss.
p) Impairment
i) Financial assets
The Company assesses at each date of balance sheet whether a financial asset or a group
of financial assets (except financial assets valued through fair value through profit or loss) is
impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance.
The Company recognizes lifetime expected losses for all contract assets and / or all trade
receivables that do not constitute a financing transaction. For all other financial assets, expected
credit losses are measured at an amount equal to the 12-month expected credit losses or at an
amount equal to the life time expected credit losses if the credit risk on the financial asset has
increased significantly since initial recognition.
SOBHA LIMITED
ii) Non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may
be impaired. If any indication exists, or when annual impairment testing for an asset is required,
the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the
higher of an asset’s or cash-generating unit’s (CGU) net selling price and its value in use. The
recoverable amount is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets.
Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific
to the asset. In determining net selling price, recent market transactions are taken into account,
if available. If no such transactions can be identified, an appropriate valuation model is used.
Impairment losses are recognized in the statement of profit and loss. After impairment,
depreciation is provided on the revised carrying amount of the asset over its remaining useful
life.
iii) Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-
generating unit) is increased to the revised estimate of its recoverable amount, but so that
the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognized for the asset (or cash-generating unit) in
prior years. A reversal of an impairment loss is recognized immediately in the statement of profit
and loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of
the impairment loss is treated as a revaluation increase .
q) Segment reporting
i) Identification of segments
In accordance with Ind AS 108 – Operating Segment, the operating segments used to present
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segment information are identified on the basis of information reviewed by the Company’s
management to allocate resources to the segments and assess their performance. An operating
segment is a component of the Company that engages in business activities from which it earns
revenues and incurs expenses, including revenues and expenses that relate to transactions
with any of the Company’s other components. Results of the operating segments are reviewed
regularly by the Managing Director who has been identified as the chief operating decision
maker (CODM), to make decisions about resources to be allocated to the segment and assess
its performance.
ii) Inter-segment transfers

The Company generally accounts for intersegment sales and transfers at appropriate margins.
iii) Unallocated items

Unallocated items include general corporate asset, liability, income and expense items which are
not allocated to any business segment.
iv) Segment accounting policies

The Company prepares its segment information in conformity with the accounting policies
adopted for preparing and presenting the standalone financial statements of the Company as
a whole.
SOBHA LIMITED
r) Cash dividend to equity holders of the Company

The Company recognizes a liability to make cash distributions to equity holders of the Company when
the distribution is authorized and the distribution is no longer at the discretion of the Company. Final
dividends on shares are recorded as a liability on the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors.
s) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.
Partly paid equity shares are treated as a fraction of an equity share to the extent that they are
entitled to participate in dividends relative to a fully paid equity share during the reporting period. The
weighted average number of equity shares outstanding during the period is adjusted for events such
as bonus issue that have changed the number of equity shares outstanding, without a corresponding
change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares, if any.
t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, that are readily convertible to a known
amount of cash and subject to an insignificant risk of changes in value.
u) Restatement
The Company restates its financial statements and presents a third balance sheet as at the beginning
of the preceding period if it applies an accounting policy retrospectively, makes a retrospective
restatement of items in its financial statements or reclassifies items in its financial statements that has
a material effect on the information in the balance sheet at the beginning of the preceding period.
The Company corrects material prior period errors retrospectively in the first set of financial statements
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approved for issue after their discovery by (a) restating the comparative amounts for the prior periods
presented in which the error occurred; or (b) if the error occurred before the earliest prior period
presented, restating the opening balances of assets, liabilities and equity for the earliest prior period
presented.
2.3 Significant accounting judgements, estimates and assumptions

Significant accounting judgements, estimates and assumptions used by management are as below
Determination of performance obligations and timing of revenue recognition on revenue from
real estate development [Refer note 2.2(a)(I)(i)]
Existence of a significant financing component in contract with customers [Refer note 2.2(a)(I)(i)]
Accounting for revenue and land cost for projects executed through joint development
arrangement [Refer note 2.2(a)(I)(i)]
Computation of percentage completion for projects in progress, project cost, revenue and
saleable area estimates [Refer note 2.2(a)(I)(ii)]
Estimation of net realizable value for inventory [Refer note 2.2(c)], land advance and refundable
deposits paid under JDA [Refer note 2.2 (d)]
SOBHA LIMITED
Provision for litigations and contingencies [Refer note 2.2(m)]

Useful life and residual value of property, plant and equipment, investment property and
intangible assets [Refer note 2.2(h)]
Evaluation of indicators and impairment of financial and non-financial assets [Refer note 2.2(p)]
Classification of property as investment property or inventory [Refer note 2.2(g)]
Fair value measurement disclosures [Refer note 2.2(o)]
Provision for tax [Refer note.2.2(n)]
3 Recent accounting pronouncements

The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On
March 31 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023,
as below:
Ind AS 1, Presentation of Financial Statements – This amendment requires the entities to disclose their
material accounting policies rather than their significant accounting policies. The effective date for
adoption of this amendment is annual periods beginning on or after 01 April 2023.
Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors – This amendment has
introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities
distinguish changes in accounting policies from changes in accounting estimates. The effective date for
adoption of this amendment is annual periods beginning on or after 01 April 2023.
Ind AS 12, Income Taxes – This amendment has narrowed the scope of the initial recognition exemption
so that it does not apply to transactions that give rise to equal and offsetting temporary differences.
The effective date for adoption of this amendment is annual periods beginning on or after 01 April
2023.
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The amendments are extensive and the Company will evaluate the same to give effect to them as
required by law.
New and amended standards adopted by the Company.

The Ministry of Corporate Affairs had vide notification dated 23 March 2022 notified Companies (Indian
Accounting Standards) Amendment Rules, 2022 which amended certain accounting standards, and
are effective 1 April 2022. These amendments did not have any impact on the amounts recognised in
current period and are not expected to significantly affect the future periods.
SOBHA LIMITED
4. Property, plant and equipment
Freehold Factory Other Plant and Scaffolding Furniture Vehicles Computers Office Total
land buildings buildings machinery items and fixtures equipment
Cost
As at 1 April 2021 (Restated) 81.90 664.81 1,085.02 1,919.44 1,891.19 44.93 12.71 164.76 31.60 5,896.36
Additions during the year - - 0.01 54.27 118.97 2.89 0.03 32.97 4.14 213.28
Disposal during the year (14.82) (12.24) - (11.84) (28.79) - (0.11) (1.61) (0.04) (69.45)
As at 31 March 2022 (Restated) 67.08 652.57 1,085.03 1,961.87 1,981.37 47.82 12.63 196.12 35.70 6,040.19
Disposal during the year - - - (24.40) (12.52) (0.18) (0.01) (2.72) (0.34) (40.17)
As at 31 March 2023 67.08 652.57 1,123.95 1,997.33 2,352.46 52.00 16.21 227.85 40.62 6,530.07
Accumulated depreciation
and impairment loss
As at 1 April 2021 (Restated) - 400.00 349.22 1,106.45 1,126.92 33.01 7.96 128.03 24.25 3,175.84
Charge for the year - 68.69 39.95 209.57 187.69 2.95 0.84 27.79 3.79 541.27
Disposal during the year - (7.49) - (9.52) (4.39) - (0.07) (1.54) (0.04) (23.05)
As at 31 March 2022 (Restated) - 461.20 389.17 1,306.50 1,310.22 35.96 8.73 154.28 28.00 3,694.06
Impairment loss 2.85 - 55.62 0.24 - - - - - 58.71
As at 31 March 2023 2.85 529.13 491.64 1,427.05 1,502.32 38.90 9.76 180.80 32.03 4,214.48
Net carrying value

As at 31 March 2023 64.23 123.44 632.31 570.28 850.14 13.10 6.45 47.05 8.59 2,315.59
As at 31 March 2022 (Restated) 67.08 191.37 695.86 655.37 671.15 11.86 3.90 41.84 7.70 2,346.13
Note:
a) Contractual obligations
The contractual commitments pending for the acquisition of property, plant and equipment as at 31 March 2023 is ₹ 250.03 (31 March 2022: ₹ 146.80)
b) Property, plant and equipment pledged as security
Refer Note.43 for details of Property, plant and equipment pledged as security for borrowings.
c) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favor of the lessee),
are held in the name of the Company.
Annual Report 2022 - 2023
d) The Company has not revalued its property, plant and equipment during the current or previous year.
e) The comparative information is restated on account of correction of errors. Refer Note 45
191
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SOBHA LIMITED
5 Investment property
Other assets forming part of Building
Particulars Right to Buildings Plant and Furniture Office Total
Use - Land machinery and equipment
fixtures
Cost
As at 1 April 2021 (Restated) 142.84 1,924.60 143.49 0.66 0.28 2,211.87
Additions during the year - 114.23 - - - 114.23
Disposal during the year - - - - - -
As at 31 March 2022 (Restated) 142.84 2,038.83 143.49 0.66 0.28 2,326.10
Additions during the year - 671.30 1.67 0.07 3.76 676.80
As at 31 March 2023 142.84 2,710.13 145.16 0.73 4.04 3,002.90
Accumulated depreciation and amortisation

As at 1 April 2021 (Restated) - 62.50 29.61 0.54 0.19 92.84
Charge for the year 3.01 41.49 20.61 0.01 - 65.12
As at 31 March 2022 (Restated) 3.01 103.99 50.22 0.55 0.19 157.96
Charge for the year 3.01 56.39 16.95 0.01 0.66 77.02
As at 31 March 2023 6.02 160.38 67.17 0.56 0.85 234.98
Carrying amount
As at 31 March 2023 136.82 2,549.75 77.99 0.17 3.19 2,767.92
As at 31 March 2022 (Restated) 139.83 1,934.84 93.27 0.11 0.09 2,168.14
a. The investment property is constructed/ developed on a leasehold land where the company is the lessee and the
lease agreement is duly executed in favour of the lessee. As the Right-of-use assets meet the definition of investment
property, and hence presented within ‘investment property.
b. Investment property comprises of commercial property and various clubhouses, that is leased to third parties. Each of
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the leases contains an initial non-cancellable period of 2-3 years. The Company has no restrictions on the realisability
of its investment property.
c. Fair value of investment property
The fair value of Investment property is ₹ 5,878.10 (31 March 2022: ₹ 4,432). The valuations is based on valuation
performed by an accredited independent valuer and is a registered valuer as defined under Rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017. The fair value of the Company’s investment properties have been arrived
at using discounted cash flow method, direct comparison approach, and depreciated replacement cost method. Under
discounted cash flow method, cash flow projections based on reliable estimates of cash flow are discounted. The main
inputs used are rental growth rate, expected vacancy rates, discount rates, and transacted values of similar properties
which are based on comparable transactions and industry data. The fair value measurement of the investment property
has been categorised as a Level 3 fair value (discounted cash flow method) and level 2 fair value (direct comparison and
depreciated replacement cost method) based on the inputs to the valuation technique used (Refer Note 40b)
d. Investment property pledged as security
Refer Note.43 for details of investment property pledged as security for borrowings.
e. Amounts recognised in profit or loss
Particulars 31 March 31 March
2023 2022
Rental income derived from investment properties (Refer Note 25B) 318.09 310.48
Direct operating expenses (including repairs and maintenance) that generated rental income (31.10) (55.50)
Direct operating expenses (including repairs and maintenance) that did not generate rental income - -
Profit arising from investment properties before depreciation and indirect expenses 286.99 254.98
Less: Depreciation (77.02) (65.12)
Profit arising from investment properties before indirect expenses 209.97 189.86
f. The comparative information is restated on account of correction of errors. Refer Note 45

SOBHA LIMITED
6 Investment property under development

Amount
As at 1 April 2021 700.58
Additions during the year -
Disposals during the year (refer note 'a') (637.27)
Capitalised during the year (63.31)
As at 31 March 2022 -
Disposals during the year -
Capitalised during the year -
As at 31 March 2023 -
a. During the year ended 31 March 2022, the Company has relinquished its right over partial constructed property
in favour of a third party for a upfront consideration as mutually agreed upon and the resultant gain amounting to
₹31.74 is disclosed under ‘Other income’ as ‘Profit on sale of investment property’.
7 Intangible asset under development

Software
As at 1 April 2021 -
Additions during the year 17.62
As at 31 March 2023 17.62
Contractual obligations
The contractual commitments pending for the acquisition of intangible asset under development as at 31 March 2023 is ₹ 13.93
(31 March 2022: ₹Nil)
Ageing of intangible assets under development as at 31 March 2023
Particulars Amount in intangible assets under development for a period of
Less than 1 1-2 Years 2-3 Years More than 3 Total
year years
Projects in progress * 17.62 - - - 17.62
Projects temporarily suspended - - - - -
Total 17.62 - - - 17.62
STANDALONE
(*) There are no projects in progress under ‘Intangible assets under development’ whose completion is overdue or has
exceeded its cost compared to its original plan.
8 Intangible assets
Intellectual
Software Total
property rights
Cost
As at 1 April 2021 15.33 0.05 15.38
Additions during the year 0.26 - 0.26
As at 31 March 2022 15.59 0.05 15.64
Additions during the year - - -
As at 31 March 2023 15.59 0.05 15.64
Amortisation
As at 1 April 2021 15.12 0.05 15.17
Charge for the year 0.33 - 0.33
As at 31 March 2022 15.45 0.05 15.50
Charge for the year 0.08 - 0.08
As at 31 March 2023 15.53 0.05 15.58
Carrying amount
As at 31 March 2023 0.06 - 0.06
As at 31 March 2022 0.14 - 0.14
Note: The Company has not revalued its intangible assets during the current or previous year.
SOBHA LIMITED
9 Investments (Non-Current)
Note As at As at
Particulars
31 March 2023 31 March 2022
Investment in equity instruments A 1,385.32 1,385.32
Investment in preference shares B 77.00 77.00
Investments in partnership firm C 1,909.56 1,787.41
Investments in Limited Liability Partnership (LLP) firm D 1,149.33 1,148.73
Investments in Government or trust securities E 0.08 0.08
4,521.29 4,398.54
No. of shares Amount

31 March % of 31 March % of As at As at
2023 holding 2022 holding 31 March 31 March
2023 2022
Investments carried at cost
Trade investments (valued at cost unless stated otherwise)
A Investment in equity instruments (Unquoted)

Investment in subsidiaries
(i) Sobha Highrise Ventures Private Limited (#)
Class A equity shares of ₹ 10 each (in ₹) fully paid-up 199,999 100% 199,999 100% 2.00 2.00
Class C equity shares of ₹ 33.90 each (in ₹) fully paid-up 10,200,000 100% 10,200,000 100% 345.78 345.78
Class D equity shares of ₹ 10 each (in ₹) fully paid-up 2,500,000 100% 2,500,000 100% 25.00 25.00
(ii) Sobha Developers (Pune) Limited (*) 5,26,320 100% 5,26,320 100% 986.41 986.41
(iii) Sobha Nandambakkam Developers Limited (^) 50,000 100% 50,000 100% 13.74 13.74
(iv) Sobha Tambaram Developers Limited (^) 50,002 100% 50,002 100% 2.24 2.24
(v) Sobha Assets Private Limited (^) 10,000 100% 10,000 100% 0.10 0.10
(vi) Sobha Construction Products Private Limited (^) 1,000,000 100% 1,000,000 100% 10.00 10.00
1,385.27 1,385.27
Investment in associate
(i) C.V.S.Tech Park Private Limited 4,900 49% 4,900 49% 0.05 0.05
STANDALONE
B Investment in preference shares (Unquoted)

(Refer note '(i)' below)
Investment in subsidiary
Sobha Highrise Ventures Private Limited (#) 7,700,000 100% 7,700,000 100% 77.00 77.00
C Investments in partnership firm (refer note '(ii)' below)

In Subsidiary
99% (31 March 2023 - 99%) share in the profits of partnership firm:
Sobha City
- Capital account 399.99 399.99
- Current account 1,381.57 1,259.42
- Additional consideration paid for acquisition of capital 128.00 128.00
1,909.56 1,787.41
D Investments in Limited Liability Partnership (LLP) firm
In Joint Venture
50% (31 March 2023 - 50%) share in the profits of partnership firm:
Kondhwa Projects LLP
1,149.33 1,148.73
Total investments carried at cost 4,521.21 4,398.46
SOBHA LIMITED
Investments at amortized cost

E Investment in Government or trust securities (unquoted)
National savings certificates 0.08 0.08
Total investments carried at amortised cost 0.08 0.08
Total investments 4,521.29 4,398.54
Aggregate amount of quoted investments and market value thereof - -

Aggregate amount of unquoted investments 4,521.29 4,398.54
Aggregate amount of impairment in value of investments - -
(^) Represents equity shares of ₹10/- each (in ₹) and fully paid up
(*) Represents equity shares of ₹ 1/- each (in ₹) and fully paid up
(#) Represents multiple class of equity shares (Class A, Class C and Class D) of face value ₹10/- each (in ₹) and fully paid up
and compulsorily convertible preference shares of ₹10/- (in ₹) each and fully paid up
The principle place of business of all the investments of the Company is India
Note
(i) The Company has subscribed to 0.001% unsecured, non-cumulative, Compulsorily Convertible Preference shares
(CCPSs) of ₹10/- each (in ₹). At the option of holder, these CCPSs are convertible into fixed number of equity shares in
one or more tranches within a period of 19 years from the date of allotment.
(ii) The particulars of partners of the partnership firm, their capital contribution and profit sharing ratio is as under:
Name of partners As at 31 March 2023 As at 31 March 2022

Share of profit Capital Share of profit Capital
(%) (%)
Investment in Sobha City
Sobha Limited 99% 399.99 99% 399.99
Sobha Developers (Pune) Limited 1% 0.01 1% 0.01
100% 400.00 100% 400.00
(iii) The Company has complied with number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
STANDALONE
10 Inventories
(Valued at cost or net realisable value, which ever is lower)
As at As at
Particulars
31 March 2023 31 March 2022
Restated
Raw materials, components and stores 717.54 636.87

Building materials 1,336.47 75.80
Land stock (*) 5,635.90 3,232.70
Work-in-progress
- Real estate projects (*) 60,665.72 56,880.19
- Others 491.94 955.86
Stock of units in completed real estate projects 13,957.80 10,990.05
(*)
Finished goods 61.53 58.91
82,866.90 72,830.38
(*)Refer note 43 for details of inventories pledged as security for borrowings.
Note:
The write-down (net) of inventories to net realisable value for the year ended 31 March 2023 is ₹ 124 (31 March
2022: ₹ Nil). This was recorded as an initially expense during the respective years and included in ‘changes in
inventories’ in standalone statement of profit and loss.
SOBHA LIMITED
11 Trade receivables
Non-current Current
As at As at As at As at
31 March 2023 31 March 2022 31 March 2023 31 March 2022
Restated Restated
Trade receivables considered good - unsecured 795.18 654.56 2,669.94 3,792.07

Trade receivables - credit impaired - - 29.12 29.12
795.18 654.56 2,699.06 3,821.19
Less: Impairment allowance (allowance for credit loss)
Trade receivables considered good - unsecured - - (572.34) (289.93)
Trade receivables - credit impaired - - (29.12) (29.12)
Net trade receivables 795.18 654.56 2,097.60 3,502.14
Note:
a. Trade receivables due by firms or private companies - - 212.01 211.57
in which the director of the Company is a partner or a
director or a member
b. Trade receivables from other related parties - - 311.48 139.15
c. Refer Note.43 for details of Trade receivables pledged

as security for borrowings.
d. Trade receivable ageing schedule
Outstanding for following periods from due date of payment

As at 31 March 2023
Not due Less than 6 months- 1-2 years 2-3 years More than Total
6 months 1 year 3 years
Undisputed Trade receivables-considered good 1,006.41 1,029.70 508.66 268.28 202.33 449.74 3,465.12
Undisputed Trade receivables - which have - - - - -
significant increase in credit risk
STANDALONE
Undisputed Trade receivables-credit impaired - - - - - 29.12 29.12

Disputed Trade receivables-considered good - - - - - -
Disputed Trade receivables - which have - - - - - - -
Disputed Trade receivables-credit impaired - - - - - - -
Total 1,006.41 1,029.70 508.66 268.28 202.33 478.86 3,494.24

As at 31 March 2022 (Restated) Not due Less than 6 months- 1-2 years 2-3 years More than Total
6 months 1 year 3 years
Undisputed Trade receivables-considered good 817.14 869.54 1,875.92 261.34 270.32 352.37 4,446.63
Undisputed Trade receivables - which have - - - - -
Disputed Trade receivables - which have - - - - - - -
Total 817.14 869.54 1,875.92 261.34 270.32 381.49 4,475.75
e. Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days
SOBHA LIMITED
12 Loans
Non-current Current
31 March 31 March 31 March 31 March
2023 2022 2023 2022
Restated
Loans to related parties (refer note 35)

Loans receivables considered good – unsecured 229.52 - 437.65 342.88
Loans receivables – credit impaired 8.34 - - -
237.86 - 437.65 342.88
Less: Allowances for credit loss
Loans receivables – credit impaired (8.34) - - -
Net loans 229.52 - 437.65 342.88
Note
Loans and advances to Directors / KMP / As at 31 March 2023 As at 31 March 2022
Related Parties repayable on demand Amount Percentage Amount Percentage
outstanding of Total outstanding of Total
Related parties 675.51 100% 342.88 100%
675.51 100% 342.88 100%
There are no loans due from directors or other officers either severally or jointly with any other person.
13 Other financial assets
Non- Current Current
STANDALONE
Restated Restated
Unsecured, considered good
Refundable deposits towards joint development 180.00 1,190.56 3,226.74 2,772.61
agreement
Security deposits 42.51 38.57 127.21 133.38
External/Internal development charges - - 1,284.84 1,893.82
Other advances - - 80.00 84.88
Fixed deposits with marturity for more than 12
months
- Pledged/ under lien/ earmarked/ margin money 151.04 143.05 - -
Unsecured, credit impaired

Refundable deposits towards joint development - - - 50.55
agreement
Allowances for credit loss - - - (50.55)
373.55 1,372.18 4,718.79 4,884.69
Note: Refer Note 43 for details of deposits pledged as security for borrowings
SOBHA LIMITED
14 Other assets
Non-current Current
Restated Restated
Land advances * 9,021.93 3,376.17 627.03 7,160.77
Advances recoverable in kind - - 883.18 499.87
Prepaid expenses - - 1,013.08 711.40
Balances with statutory/ government authorities - - 982.03 1,086.89
Unbilled revenue ^ - - 1,801.76 3,324.71
Other receivables 275.17 323.37 771.86 -
Unsecured, considered doubtful

Land advances 168.16 15.00 - -
Less: Provision for doubtful advances (168.16) (15.00) - -
9,297.10 3,699.54 6,078.94 12,783.64
(*) Advances for land though unsecured, are considered good as the advances have been given based on arrangements/
memorandum of understanding executed by the Company and the Company/ seller/ intermediary is in the course of
obtaining clear and marketable title, free from all encumbrances, including for certain properties under litigation.
(^) Classified as non-financial asset as the contractual right to consideration is dependent on completion of contractual
milestones.
Note
Non-current Current
Restated Restated
STANDALONE
a Advances recoverable in kind from firms or - - 10.02 -

companies in which the director of the Company
is a partner or a director
b Includes from related parties
Land advances (refer note 35) 8,212.92 2,914.29 - 5,547.84
Advances recoverable in kind (refer note 35) - - 304.91 253.93
Unbilled revenue - - 73.47 237.24
15 Cash and cash equivalents
As at As at
31 March 2023 31 March 2022
Balances with banks in current accounts 2,590.10 1,255.23

Cash on hand 8.36 15.83
Cheques/ drafts on hand 125.05 74.98
2,723.51 1,346.04
Note: Includes amount held in escrow account for projects under 1,755.66 546.54
Real Estate Regulation and Development Act, 2016, to be utilised for
project specific purposes.
SOBHA LIMITED
16 Bank balance other than cash and cash equivalents

As at As at
31 March 2023 31 March 2022
Earmarked bank balances

– On unclaimed dividend account 2.00 2.32
Fixed deposits with banks with maturity less than 12 months (*)
- Pledged/ under lien/ earmarked/margin money 1,679.32 382.02
1,681.32 384.34
(*) Refer Note 43 for details of deposits pledged as security for borrowings.
17 Equity share capital

31 March 2023 31 March 2022
No of shares Amount No of shares Amount
Authorised shares (*)
Equity shares of ₹10 each (in ₹) 150,000,000 1,500.00 150,000,000 1,500.00
Issued, subscribed and fully paid-up shares

Equity shares of ₹10 each (in ₹) fully paid up 94,845,853 948.46 94,845,853 948.46
Total issued, subscribed and fully paid-up share capital 94,845,853 948.46 94,845,853 948.46
(a) Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting year
31 March 2023 31 March 2022
No of shares Amount No of shares Amount
Equity shares
At the beginning of the year 94,845,853 948.46 94,845,853 948.46
STANDALONE
Outstanding at the end of the year 94,845,853 948.46 94,845,853 948.46
(*) Excludes 5,000,000, 7% Redeemable preference shares of ₹ 100 each (in ₹ ) amounting to ₹ 500 (31 March 2022: ₹ 500)
(b) Terms/rights attached to equity shares

The Company has issued only one class of equity shares having a par value of ₹10 per share (in ₹) fully paid up. Each holder
of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held
by the shareholders.
(c) Details of equity shareholders holding more than 5% shares in the Company
31 March 2023 31 March 2022

Name of the Shareholder
No of shares % Holding No of shares % Holding
Equity shares of ₹10 each (in ₹) fully paid up
Mrs. Sobha Menon 2,87,26,420 30.29% 2,87,26,420 30.29%
Mr. P.N.C. Menon 1,23,19,259 12.99% 1,20,61,259 12.72%
Mr. P.N.C. Menon (inclusive of joint holding with Mrs. Sobha Menon) 52,89,054 5.58% 52,89,054 5.58%
Anamudi Real Estates LLP 94,75,096 9.99% 94,75,096 9.99%
Schroder International Selection Fund Emerging Asia 55,41,913 5.84% 55,41,913 5.84%
Franklin India Focused Equity Fund 58,28,613 6.15% 55,75,003 5.88%
SOBHA LIMITED
(d) Details of shares held by promoters
As at 31 March 2023
31 March 2023 31 March 2022
Promoter Name No.of shares % of total % change No.of shares % of total % change during
shares during the year shares the year
Mrs. Sobha Menon 28,736,420 30.29 % - 28,726,420 30.29% -
Mr. P.N.C. Menon 12,319,259 12.99% 0.27% 12,061,259 12.72% -
Mr. P.N.C. Menon (inclusive of joint 5,289,054 5.58% - 5,289,054 5.58% -
holding with Mrs. Sobha Menon)
Mr. Ravi PNC Menon 3,185,930 3.36% - 3,185,930 3.36% -
(e) There have been no buy back of shares, issue of bonus shares and issue of shares pursuant to contract without payment
being received in cash for the period of 5 years immediately preceding the reporting date.
(f) There are no shares reserved for issue under options and contracts/ commitments for sale of shares/disinvestments.
18 Other equity
As at 31 March 2023 As at 31 March 2022

Restated
Capital redemption reserve 119.47 119.47
Securities premium 9,328.92 9,328.92
General reserve 4,443.79 4,348.50
Retained earnings 8,570.04 8,036.91
22,462.22 21,833.80
Nature and purpose of reserve

(a) Capital redemption reserve
The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company’s own equity
instruments to capital redemption reserve.
(b) Securities premium
Securities premium reserve is used to record the premium received on issue of shares by the Company. The reserve
STANDALONE
can be utilised in accordance with the provision of Section 52(2) of Companies Act, 2013.
(c) General reserve
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.
As the general reserve is created by a transfer from one component of equity to another and is not an item of other
comprehensive income, items included in general reserve will not be reclassified subsequently to profit and loss.
(d) Retained earnings
The cumulative gain or loss arising from the operations which is retained by the Company is recognised and
accumulated under surplus in the statement of profit and loss.
19 Distribution made and proposed
31 March 2023 31 March 20222

Final dividend on equity shares declared and paid
₹3 per share for the year ended 31 March 2022 284.54 -
₹3.5 per share for the year ended 31 March 2021 - 331.96
284.54 331.96
Details of proposed final dividend on equity shares (*)

₹3 per share for the year ended 31 March 2023 284.54 -
₹3 per share for the year ended 31 March 2022 - 284.54
284.54 284.54
(*) Proposed dividend on equity shares are subject to the approval of the shareholders at the ensuing annual general
meeting and are not recognised as a liability as at respective balance sheet dates.
SOBHA LIMITED
20 Borrowings
As at As at
31 March 2023 31 March 2022
Restated
Non-current borrowings
Term loans (Secured)
- from banks 8,301.62 9,228.51
- from other parties 3,033.83 2,044.38
11,335.45 11,272.89
Less: Current maturities of long term borrowings (5,749.32) (8,266.10)
Total non-current borrowings 5,586.13 3,006.79
Current borrowings
Debentures (Secured)
8.75%, unlisted, redeemable, Non Convertible Debentures of ₹ 500 each - 495.09
- from banks 813.04 4,585.99
- from other parties 928.02 1,688.08
Loans repayable on demand
- from banks 3,991.21 3,276.22
Cash credit from banks 2,326.64 2,993.26
Current maturities of long term borrowings 5,749.32 8,266.10
Total current borrowings 13,808.23 21,304.74
Note:
STANDALONE
(i) The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly
returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the
books of accounts.
(ii) The Company has not been declared willful defaulter by any bank, financial institution, government or any government
authority.
Particulars As at As at Effective Security Details Repayment terms

31 March 31 March interest
2023 2022 rate
Term loans 2,789.15 4,094.41 8%-10% Secured by way of Repayable in 10 equal

from banks a. equitable mortgage on immovable properties of the quarterly installments,
project after a moratorium
period of 39 months
b. equitable mortgage on vacant land parcels from the date of first
c. hypothecation of Escrow balances, other current assets disbursement.
and receivables (both present and future) of the project
Term loans 1,475.98 1,527.98 8%-10% Secured by way of Repayable in 153

from banks a. mortgage of Investment Property and hypothecation of monthly installments,
current assets and receivables relating to the Investment after a moratorium
Property period of 3 months
from the date of first
b. hypothecation of Escrow account and Debt Service disbursement.
Reserve account
SOBHA LIMITED

2023 2022 rate
from banks a. first charge on the Company's share of Inventory in the quarterly installments,
period of 42 months
b. equitable mortgage on vacant land parcels
and Company's share of receivables (both present and
future) of the project and Debt Service Reserve account
Term loans 558.39 698.28 7%-9% Security charge by way of Repayable in 15 equal
from banks a. equitable mortgage of immovable property of the quarterly installments,
Subsidiary project after a moratorium
period of 3 months
b. first Charge on Escrow balances and all assets of the
Subsidiary project
disbursement.
c. Corporate security from subsidiary
Term loans 462.51 456.29 8%-10% Secured by way of Repayable in 10 equal
period of 51 months
and receivables (both present and future) of the project and
Debt Service Reserve account
from banks a. first charge on Property, Plant and Equipment quarterly installments
disbursement
Term loans 195.78 194.71 8%-10% Secured by way of Repayable in 48
period of 30 months
b. hypothecation of receivables (both present and future)

disbursement.
Term loans 684.96 - 8%-10% Security charge by way of Repayable in 36 equal
STANDALONE
period of 12 months
b. first charge on all assets of the Subsidiary project
disbursement.
Term loans 524.55 - 8%-10% Secured by way of Repayable in 24
from banks a. first charge on the Company's share of Inventory of the monthly installments,
period of 36 months
b. hypothecation of Escrow balances and Company's share
of receivables (both present and future) of the project and
disbursement.
Term loans - 91.17 8%-10% Secured by way of Repayable in 6
period of 12 months
of receivables (both present and future) of the project
disbursement.
from banks a. hypothecation of receivables (both present and future) quarterly installments
of the project from the date of
disbursement
b. exclusive charge on immoveable property of the
Company
from others a. mortgage of property owned by Subsidiary Company quarterly installments,
after a moratorium
b. mortgage of building owned by the Company
period of 6 months
c. corporate guarantee of Subsidiary Company from the date of first
disbursement.
SOBHA LIMITED

2023 2022 rate
Term loans 1,012.98 - 8%-10% Secured by way of Repayable in 24
from others a. first charge on the Company's share of Inventory of the monthly installments,
period of 48 months
disbursement.
Term loans 797.90 - 8%-10% Secured by way of Repayable in 24 equal
from others a. equitable mortgage on the Company's share of monthly installments,
Inventory of the project after a moratorium
period of 24 months
c. hypothecation of Escrow balances and Company's share disbursement.
period of 24 months
b. hypothecation of Escrow balances and Company's share from the date of first
of receivables (both present and future) of the project disbursement.
period of 24 months
b. first charge on the vacant land parcels from the date of first
from others a. first charge on the Company's share of Inventory in the monthly installments,
period of 6 months
STANDALONE
period of 24 months
from others a. equitable mortgage on vacant land parcels monthly installments
b. hypothecation of Company's share of receivables (both disbursement.
present and future) of the project
from others a. equitable mortgage on immovable properties of the quarterly installments,
period of 54 months
c. hypothecation of receivables (both present and future) disbursement.
of the project
from others a. first charge on the Company's share of Inventory in the quarterly installments,
period of 6 months
Sub - total 11,335.45 11,272.89

SOBHA LIMITED

2023 2022 rate
Current borrowings
Debentures - 495.09 8.75% Secured by way of Repayable in 30 equal
(Secured) a. first charge on the Company's share of Inventory in the monthly installments,
period of 24 months
b. hypothecation of Escrow balances, other current assets
disbursement.
future) of the project
Loans from 1,178.53 1,783.96 8%-10% Secured by way of Repayable on demand.
banks a. first charge on receivables and inventory of the
contracting business and concrete product division
b. first charge on identified moveable fixed assets of the
company
c. hypothecation of receivables of project
d. equitable mortgage on vacant land parcels
Loans from 696.42 697.69 8%-10% Secured by way of Repayable on demand.
banks a. first charge on inventory, receivables and other current
assets of the Manufacturing division.
b. Equitable mortgage on vacant land parcels
Term loans 551.03 479.30 8%-10% Security charge by way of Repayable in 10
period of 30 months
b. equitable mortgage on vacant land
parcels
disbursement.
c. hypothecation of other current assets and receivables
(both present and future) of the project
banks a. first charge on the Company's share of Inventory in the
project
Loans from 1,490.25 - 8%-10% Secured by way of Repayable on demand.
STANDALONE
banks a. first charge on inventory of the project

company
period of 36 months
disbursement.
c. fund shortfall undertaking by the director of the
Company towards funding of underlying projects*
Loans from 219.75 - 8%-10% Secured by way of Repayable on demand.
banks a. first charge on the Company's share of Inventory of the
project
from banks a. first charge on the Company's share of Inventory in the monthly installments,
period of 33 months
disbursement.
c.fund shortfall undertaking by the director of the Company
towards funding of underlying projects*
SOBHA LIMITED

2023 2022 rate
Term loans - 569.16 8%-10% Secured by way of Repayable in 24 equal
period of 30 months
Term loans - 511.60 8%-10% Secured by way of equitable mortgage on immovable Repayable in 10
from banks properties of the project quarterly installments,
after a moratorium
period of 16 months
disbursement.
Loans from - 510.00 8%-10% Secured by way of Repayable on demand.
banks a. equitable mortgage on vacant land parcels
of the project
from banks a. equitable mortgage on immovable properties of the monthly installments
project from the date of first
disbursement.
Term loans - 450.36 8%-10% Secured by way of Repayable in equal
from banks a. first charge on the immoveable property of the project monthly installments,
after a moratorium
b. first charge over the receivables of the project period of 6 months
disbursement.
period of 30 months
STANDALONE
from banks a. first charge on the immoveable property of the project monthly installments
from the date of
b. first charge over the receivables of the project disbursement.
from banks a. equitable mortgage on vacant land parcels quarterly installments,
after a moratorium
b. hypothecation of receivables (both present and future) period of 30 months
of the project from the date of first
disbursement.
disbursement.
from banks a. first charge on inventory, receivables and other current quarterly installments,
assets (both present and future) of the project. after a moratorium
period of 36 months
c. hypothecation of Escrow balances disbursement.
of the project
SOBHA LIMITED

2023 2022 rate
Term loans 678.68 - 8.40% Secured by way of Repayable in 30
from other a. equitable mortgage on immovable properties of the monthly installments,
parties project after a moratorium
period of 24 months
b. hypothecation of receivables (both present and future) from the date of first
of the project. disbursement.
from other a. equitable mortgage on the Company's share of monthly installments,
parties Inventory of the project after a moratorium
period of 24 months
period of 24 months
b. first charge on the vacant land parcels from the date of first
period of 24 months
from other a. equitable mortgage on vacant land parcels monthly installments
parties from the date of
b. hypothecation of Escrow balances, Company's share of disbursement.
receivables (both present and future) of the project

period of 24 months
STANDALONE

from other a. first charge on the Company's share of Inventory in the monthly installments,
period of 24 months
b. hypothecation of Escrow balances, other current assets from the date of first
and Company's share of receivables (both present and disbursement.
future) of the project
Cash credit 838.68 1,473.89 9%-11% Secured by way of Repayable on demand.
a. equitable mortgage on vacant land parcels
of projects
Cash credit 707.77 574.66 8%-10% Secured by way of receivables of the project Repayable on demand.
Cash credit 276.72 231.02 8%-10% Secured by way of Repayable on demand.
a. first charge on receivables and inventory of the
company
a. first charge on inventory, receivables and other current
SOBHA LIMITED

2023 2022 rate
a. first charge on the Company's share of Inventory in the
project
company
a. first charge on receivables (both present and future) of
the project
b. equitable mortgage on the vacant lands
company
STANDALONE
Cash credit 272.54 - 8%-10% Secured by way of Repayable on demand.
a. first charge on the Company's share of Inventory of the
project
company
company
SOBHA LIMITED

2023 2022 rate
company
Cash credit - 129.55 8%-10% Secured by way of Repayable on demand.
of the project
of the project
company
company

STANDALONE

company
company
company
Sub - total 8,058.91 13,038.64
Total
19,394.36 24,311.53
borrowings
(*) Refer Note 35

SOBHA LIMITED
21 Other financial liabilities
As at As at
31 March 2023 31 March 2022
Restated
Current
Payable to land owner for acquisition of land/developmental rights 3,133.03 1,182.74
Security deposit received towards
-Maintenance services 2,026.89 2,011.03
-Lease deposit 90.57 74.76
Letter of credit payable 1,346.96 2,701.64
Book overdraft 1,025.86 271.10
Revenue share payable under joint development agreement 604.00 380.93
Interest accrued but not due on borrowings 28.15 34.05
Deferred lease rental 9.23 3.53
Unclaimed dividend* 2.00 2.32
Capital creditors 2.19 2.36
Payable to related parties (refer note 35) 1.89 38.03
Others 314.38 280.39
Total other financial liabilities 8,585.15 6,982.88
*Investor Protection and Education Fund is credited for unclaimed dividends when due.
22 Provisions
Non-current Current
2023 2022 2023 2022
STANDALONE
Provision for employee benefits
Provision for gratuity (refer note 37) 228.85 174.70 85.68 73.12
Provision for compensated absence - - 117.09 81.43
228.85 174.70 202.77 154.55
This space is intentionally left blank

STANDALONE
210
SOBHA LIMITED
23 Trade payables
As at As at
31 March 2023 31 March 2022
Restated
Dues of micro enterprises and small enterprises - -
Dues of creditors other than micro enterprises and small enterprises 5,956.15 4,415.08
5,956.15 4,415.08
Trade Payable Ageing

As at 31 March 2023 Unbilled dues Less than 1 1-2 years 2-3 years More than 3 Total
/ Not Due year years
Total outstanding dues of micro enterprises and small enterprises - - - - - -

Total outstanding dues of creditors other than micro enterprises and small 2,289.86 3,348.16 103.65 61.65 153.62 5,956.15
enterprises
Disputed dues of micro enterprises and small enterprises - - - - - -
Disputed dues of creditors other than micro enterprises and small enterprises - - - - - -
2,289.86 3,348.16 103.65 61.65 153.62 5,956.15

As at 31 March 2022 (Restated) Unbilled dues Less than 1 1-2 years 2-3 years More than 3 Total
/ Not Due year years
Total outstanding dues of micro enterprises and small enterprises - - - - - -
Total outstanding dues of creditors other than micro enterprises and small 1,456.22 2,146.03 151.66 113.73 547.44 4,415.08
enterprises
Disputed dues of micro enterprises and small enterprises - - - - - -
Disputed dues of creditors other than micro enterprises and small enterprises - - - - - -
1,456.22 2,146.03 151.66 113.73 547.44 4,415.08
Note
A Details of dues to Micro and Small Enterprises as per Micro, Small and Medium Enterprises Development Act, 2006
The information as required under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information
available with the Company.
Particulars 31 March 2023 31 March 2022
i. Principal amount remaining unpaid to any supplier as at the year end - -
ii. Interest due thereon - -
iii. Amount of interest paid by the Company in terms of section 16 of the MSMED, along with the amount of the payment made to the supplier beyond the - -
appointed day during the accounting year.
iv. Amount of interest due and payable for the year of delay in making payment (which have been paid but beyond the appointed day during the year) but - -
without adding the interest specified under the MSMED, 2006
v. Amount of interest accrued and remaining unpaid at the end of the accounting year - -
vi. The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to - -
the small enterprise for the purpose of disallowance as a deductible expenditure under the MSMED Act, 2006
SOBHA LIMITED
24 Other liabilities
As at As at
31 March 2023 31 March 2022
Restated
Contract liabilities
-Advance from customers 50,878.07 40,386.10
-Mobilisation advance 621.99 759.26
-Liability under joint development agreement* 11,414.70 10,384.34
-Deferred revenue 168.70 117.16
Withholding taxes payable 120.54 63.77
Others 104.89 143.80
63,308.89 51,854.43
(*) Represents amount payable to landowners where the Company has entered into joint development arrangements
with landowners for joint development of properties on land in lieu of which, the Company has agreed to transfer certain
percentage of constructed area or certain percentage of the revenue proceeds, net of revenue recognised.
25 Revenue from operations

Year ended Year ended
31 March 2023 31 March 2022
Restated
A Revenue from contract with customers
I Sale of products
Income from of constructed properties, plots and other development activities 23,512.01 16,150.03
Income from sale of land and development rights (net) - 1,270.98
Income from glazing works 2,626.08 1,207.87
Income from interior works 863.37 737.70
Income from concrete blocks 649.08 520.10
II Sale of services
Income from contractual activity 4,599.42 4,955.99
STANDALONE
Income from maintenance and other services 363.80 183.62
III Other operating revenue
Forfeiture income 138.64 -
Interest collected from customer 62.75 21.87
Transfer fees 67.30 33.67
Marketing fee 16.51 21.67
Scrap sales 63.81 57.29
Total (A) 32,962.77 25,160.79
B Rental income
Rental income from operating leases (refer note 38) 318.09 310.48
Total (A+B) 33,280.86 25,471.27
Additional disclosures required under Ind AS 115
A Disaggregated revenue information

Set out below is the disaggregation of the Company’s revenue from contracts with customers by timing of transfer of
goods or services
31 March 2023 31 March 2022
Restated
Revenue recognition at a point of time 22,451.00 16,299.67
Revenue recognition over period of time 10,511.77 8,861.12
32,962.77 25,160.79
SOBHA LIMITED
B Contract balances
The following table provides information about receivables and contract liabilities from contract with customers:
Particulars Year ended Year ended
31 March 2023 31 March 2022
Contract assets Restated
Unbilled revenue 1,801.76 3,324.71
Total contract assets 1,801.76 3,324.71
Advance from customers 51,500.06 41,145.36
Liability under joint development agreement 11,414.70 10,384.34
Deferred revenue 168.70 117.16
Total contract liabilities 63,083.46 51,646.86
Receivables
Trade receivables 2,892.78 4,156.70
Total receivables 2,892.78 4,156.70
Unbilled revenue is initially recognised for revenue earned on account of contracts where revenue is recognised over
the period of time as receipt of consideration is conditional on successful completion of performance obligations as
per contract. Once the performance obligation is fulfilled and milestones for invoicing are achieved, contract assets are
classified to trade receivables. Such unbilled revenue is classified as non-financial asset because the right to consideration
depends on completion of contractual milestones.
Contract liabilities include advances received from customers as well as deferred revenue representing transaction price
allocated to outstanding performance obligations.
C Significant changes in contract liabilities balances during the year are as follows:
As at 31 March 2023 As at 31 March 2022 (Restated )

STANDALONE
Particulars Advances Payable Deferred Advances Payable Deferred

from to land Revenue from to land Revenue
customers owner customers owner
Opening balance 41,145.36 10,384.34 117.16 34,207.20 13,081.60 160.89

Additions during the year (net) 31,608.40 4,316.63 168.70 20,833.25 - 117.16
Revenue recognised during the year (21,253.70) (3,286.27) (117.16) (13,895.09) (2,697.26) (160.89)
Closing balance 51,500.06 11,414.70 168.70 41,145.36 10,384.34 117.16
D Significant changes in unbilled revenue balances during the year are as follows:
Particulars As at As at
31 March 2023 31 March 2022
Restated
Opening balance 3,324.71 3,476.92
Revenue recognised during the year 7,242.01 7,171.80
Billed during the year (8,764.95) (6,337.74)
Cumulative catch up adjustments to revenue - (986.27)
Closing balance 1,801.76 3,324.71
SOBHA LIMITED
E Reconciliation of revenue recognised with contract revenue:
31 March 2023 31 March 2022
Restated
Contract revenue 32,962.77 25,160.79
Revenue recognised 32,962.77 25,160.79
The performance obligation of the Company in case of sale of residential plots, villas, apartments, commercial space and
development management of such properties is satisfied once the project is completed and control is transferred to the customers.
The customer makes the payment for contract price as per installment stipulated in customer’s agreement which can be cancelled
by the customer for convenience.
The transaction price of the remaining performance obligation (unsatisfied or partly satisfied) as at 31 March 2023 is ₹ 117,002.90
(31 March 2022 is ₹ 85,348.17). The same is expected to be recognised within 1 to 5 years
26 Other Income

31 March 2023 31 March 2022
Restated
Interest income on
-Bank deposits 43.66 28.17
-Loans to related parties 39.85 33.88
-Unwinding of discount on refundable deposits 231.29 269.67
-Refundable deposits 38.87 -
-Others 14.73 -
Share in profits of partnership firm investments (post tax) 19.06 -
Other non-operating income (net of expenses directly attributable to
STANDALONE
such income)
-Liabilities no longer required written back 327.54 6.00
-Facilitation charges 179.50 140.69
-Gain on foreign exchange difference (net) 1.16 -
-Profit on sale of property, plant and equipment (net) 0.92 322.48
-Profit on sale of investment property (net) - 31.74
-Reversal of impairement of refundable deposit 50.55 -
-Others 30.66 48.34
977.79 880.97
27 Cost of material consumed

31 March 2023 31 March 2022
Restated
Inventory at the beginning of the year 636.87 545.68
Add: Purchases during the year 3,740.46 2,073.40
Less: Inventory at the end of the year 717.54 636.87
Cost of material consumed 3,659.79 1,982.21
SOBHA LIMITED
28 Changes in inventories of raw materials, land stock, work in progress and finished goods

31 March 2023 31 March 2022
Restated
Inventories at the end of the year
Land stock 5,635.90 3,232.70
Work-in-progress 61,157.66 57,836.05
Stock in trade - flats 13,957.80 10,990.05
82,149.36 72,193.51
Inventories at the beginning of the year

Building materials 75.80 77.55
Land stock 3,232.70 5,016.85
Work-in-progress 57,836.05 54,457.54
72,193.51 70,968.22
Increase (9,955.85) (1,225.29)
29 Employee benefits expense

31 March 2023 31 March 2022
Restated
Salaries, wages and bonus 2,664.55 2,307.17

Contribution to provident and other funds 89.79 80.19
Gratuity expenses (refer note 37) 40.24 36.11
Compensated absence 69.72 37.57
STANDALONE
Staff welfare expenses 80.45 51.12

2,944.75 2,512.16
30 Finance costs (*)

31 March 2023 31 March 2022
Restated
Interest expense
- on borrowings 1,968.52 2,583.55
-unwinding of discount on land cost payable 189.01 111.24
-on leases 27.26 30.83
-on others 104.38 59.28
Other borrowing cost
-letter of credit charges 85.08 157.17
-bank guarantee charges 18.88 18.72
-bank and other charges 30.67 32.91
Total 2,423.80 2,993.70
(*) Includes finance expense capitalised to inventory (The rate used to 2,165.96 2,805.38
determine the amount of borrowing costs eligible for capitalisation is the
effective interest rate of the underlying borrowings which is in the range of 7%
to 11%) Capitalisation rate 31.03.2023 - 10% (31.03.2022 - 10%)
SOBHA LIMITED
31 Depreciation and amortization expense

31 March 2023 31 March 2022
Restated
Depreciation of property, plant and equipment 492.21 541.27
Depreciation of investment properties 77.02 65.12
Depreciation of right of use assets 69.40 71.44
Amortization of intangible assets 0.08 0.33
638.71 678.16
32 Other expenses
31 March 2023 31 March 2022
Restated
License fees and plan approval charges 646.13 199.22
Power and fuel 588.69 483.49
Water charges 28.66 31.68
Freight and forwarding charges 266.45 232.39
Rent (refer note 38) 157.90 170.54
Rates and taxes 192.39 187.41
Insurance 129.16 110.20
Property maintenance expenses 107.44 147.92
Repairs and maintenance
Plant and machinery 52.62 36.92
Others 70.53 50.11
Advertising and sales promotion 409.48 385.96
Brokerage and discounts 324.49 173.28
Donation 0.95 0.30
Corporate social responsibility expenditure (Refer note 'B') 199.50 120.50
STANDALONE
Travelling and conveyance 305.37 236.10
Printing and stationery 38.72 28.10
Legal and professional fees 369.63 358.44
Directors’ commission and sitting fees (refer note 35) 8.71 6.73
Payment to auditor (Refer note 'A') 17.66 13.62
Exchange difference (net) - 0.45
Allowance for credit losses (including amounts written off) 313.83 14.98
Security charges 192.01 184.23
Share of loss on investment in partnership firm - 5.73
Miscellaneous expenses 437.11 286.27
5,145.19 3,468.11
A Payment to the auditor

31 March 2023 31 March 2022
Audit fees (including limited review's) 14.16 11.50
Certification fees 1.15 1.00
Reimbursement of expenses 1.39 1.12
16.70 13.62
SOBHA LIMITED
B Details of CSR expenditure:

31 March 2023 31 March 2022
a. Amount required to be spent by the Company during the year 44.56 63.18
b. Amount approved by the Board to be spent during the year 199.50 120.50
c. Amount spent during the year
(i) Construction/acquisition of any asset - -
(ii) On purposes other than above 199.50 120.50
d. Shortfall at the end of the year Nil Nil
e. Nature of CSR activities Social Social
empowerment empowerment
f. Details of related party transactions 199.50 120.50
- Sri Kurumba Educational and Charitable Trust (Refer Note.35)
33 Income tax
The significant components of income tax expense for the years ended 31 March 2023 and 31 March 2022 are -
A Amounts charged to statement of profit and loss

Particulars
31 March 2023 31 March 2022
Current income tax:
Current income tax charge 300.31 589.58
Deferred tax:
Relating to origination and reversal of temporary differences 63.90 29.67

Income tax expense reported in the statement of profit and loss 364.21 619.25
B Income tax recognised in other comprehensive income

STANDALONE
Deffered tax credit net loss on remeasurements of 13.43 3.03

defined benefit plans
Income tax charge to other comprehensive income 13.43 3.03
C Reconciliation of tax expense and the accounting profit multiplied by Company’s domestic tax rate for
31 March 2023 and 31 March 2022
31 March 2023 31 March 2022
Accounting profit before income tax 1,317.10 2,310.73

Tax on accounting profit at statutory income tax rate 25.17% (31 March 2022: 331.47 581.54
25.17%)*
Permanent adjustments 37.54 36.27
Tax impact on (profit)/ loss from partnership firm (4.80) 1.44
364.21 619.25
* The Company has elected to exercise the option permitted under Section 115BAA of the Income-tax Act, 1961
as introduced by the Taxation Laws (Amendment) Ordinance, 2019 from the year ended 31 March 2021 and
has accordingly re-measured its deferred tax assets/(liabilities) basis the rate prescribed in the said section.
Further, the MAT credit available from earlier years has been reversed in the previous year on the exercise of this
said option.
SOBHA LIMITED
D Deferred tax
Deferred tax assets and liabilities relates to the following- [DTA/(DTL)]
Balance as at Movement in Movement in Balance as at
Particulars 01 April 2022 statement of OCI 31 March 2023
Restated Profit and Loss
Deferred tax assets arising out of

Property, plant and equipment and 66.01 (25.44) - 40.57
investment property
Provision for compensated absence 20.50 8.97 - 29.47
Provision for gratuity 65.41 0.33 13.43 79.17
Provision for exgratia 11.62 7.02 - 18.64
Expected credit losses 80.30 73.19 - 153.49
Others 6.00 8.47 - 14.47
249.84 72.54 13.43 335.81
Deferred tax liabilities arising out of
On account of difference in IndAS 115 (60.57) (136.44) - (197.01)
and ICDS III
(60.57) (136.44) - (197.01)
Net deferred tax assets 189.27 (63.90) 13.43 138.80
Balance as at Movement in Movement in Balance as at

Particulars 01 April 2021 statement of OCI 31 March 2022
Restated Profit and Loss Restated
Deferred tax assets arising out of

Property, plant and equipment 9.40 56.61 - 66.01
Provision for exgratia - 11.62 - 11.62
Expected credit losses 100.58 (20.28) - 80.30
STANDALONE
Others 18.31 (12.31) - 6.00
199.08 44.70 3.03 249.84
Deferred tax liabilities arising out of
On account of difference in IndAS 115 and 16.83 (74.37) - (60.57)
ICDS III
16.83 (74.37) - (60.57)
Net deferred tax assets 215.91 (29.67) 3.03 189.27
E The Company has not entered into any such transaction which is not recorded in the books of account that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)
F Income tax assets (net)

Advance Income tax (net of provisions) 70.96 -
70.96 -
G Current tax liabilities (net)
Current tax liabilities (net of advance tax) - 202.94
- 202.94
SOBHA LIMITED
34 Earnings per share [‘EPS’]

Restated
Net Profit after tax attributable to equity shareholders 952.89 1,691.48
Weighted average number of equity shares used in calculating basic and 94,845,853 94,845,853
diluted EPS
Nominal value per equity share ( in ₹) 10 10
Earnings per share ( in ₹)
- Basic and diluted 10.05 17.83
The Company does not have any potential diluted equity shares and therefore basic and diluted EPS are same.
35 Related party disclosures
a) Name of the related parties and the nature of its relationship with the Company’s as below
Subsidiaries
Direct Subsidiaries
Sobha City
Sobha Highrise Ventures Private Limited
Sobha Developers (Pune) Limited
Sobha Assets Private Limited
Sobha Tambaram Developers Limited
Sobha Nandambakkam Developers Limited
Sobha Construction Products Private Limited
Subsidiaries of Sobha City

STANDALONE
Vayaloor Properties Private Limited

Vayaloor Builders Private Limited
Vayaloor Developers Private Limited
Vayaloor Real Estate Private Limited
Vayaloor Realtors Private Limited
Valasai Vettikadu Realtors Private Limited
Subsidiaries of Sobha Highrise Ventures Private Limited

Sobha Contracting Private Limited
Subsidiaries of Sobha Developers (Pune) Limited

Kilai Builders Private Limited
Kuthavakkam Builders Private Limited
Kuthavakkam Realtors Private Limited
Sobha Interiors Private Limited
Joint Venture
Associate
C.V.S.Tech Park Private Limited
SOBHA LIMITED
Key Shareholder
Mr. P. N. C. Menon
Mrs. Sobha Menon
Key Management Personnel (‘KMP’)

Mr. Ravi PNC Menon - Chairman
Mr. J. C. Sharma - Vice Chairman and Managing Director (till 31 March 2022)
Mr. T P Seetharam - Whole-time Director (till 31 March 2022)
Mr. Jagadish Nangineni - Managing Director (with effect from 01 April 2022)
Additional related parties (‘KMP’s) as per Companies Act, 2013 with whom transactions have taken place
Mr. Subhash Bhat - Chief Financial Officer (till 14 November 2021)
Mr. Yogesh Bansal - Chief Financial Officer (with effect from 15 November 2021)
Mr. Vighneshwar G Bhat - Company Secretary
Other Directors
Mr. Anup Shah
Mr. R V S Rao
Mrs. Srivathsala KN
Mr. Sumeet Jagdish Puri (till 07 October 2021)
Mr. Raman Mangalorkar (with effect from 01 April 2022)
Relatives of key management personnel

Mrs. Sudha Menon
Post employment-benefit plan entity
Sobha Developers Employees Gratuity Trust
Other related parties

Mannur Properties Private Limited
STANDALONE
Mannur Real Estate Private Limited
Puzhakkal Developers Private Limited
Sobha Aviation and Engineering Services Private Limited
Sobha Contracting LLC, Dubai
Sobha Glazing & Metal Works Private Limited
Sobha Projects & Trade Private Limited
Sobha Puravankara Aviation Private Limited
Sobha Renaissance Information Technology Private Limited
Sobha Space Private Limited
Sobha Technocity Private Limited
Sri Durga Devi Property Management Private Limited
Sri Kurumba Educational and Charitable Trust
Sri Parvathy Land Developers Private Limited
Technobuild Developers Private Limited
Mapedu Realtors Private Limited
Mapedu Builders Pvt Limited
Chikmangaloor Properties Private Limited
Rusoh Marina Properties Private Limited
Thakazhi Developers Private Limited
Thakazhi Realtors Private Limited
Moolamcode Traders Private Limited
SOBHA LIMITED
B Details of the transactions with the related parties:
For the year For the year

Particulars ended ended
31 March 2023 31 March 2022
Restated
I. Transaction with wholly owned subsidiaries
Income from contractual activity
Sobha City 10.52 32.50
Sobha Highrise Ventures Private Limited 416.08 100.96
Kilai Builders Private Limited 50.52 53.50
Sobha Contracting Private Limited 272.19 117.46
Income from interior works

Income from lease rental services

Purchase of project items

Share in profit/ (loss) of partnership firm

Sobha City 19.06 (5.73)
Interest income on unsecured loans to related parties

Sobha Developers (Pune) Limited 5.64 0.77
Sobha Assets Private Limited 9.82 4.04
STANDALONE

Kuthavakkam Builders Private Limited 0.14 -
Amount contributed to partnership current account

Sobha City 273.78 757.44
Amount withdrawn from partnership current account

Sobha City 170.69 335.06
Allowance for credit loss

Sobha Assets Private Limited 8.34 -
Refund of advance by the related party

Sobha Construction Products Private Limited - 0.22
Sobha Nandambakkam Developers Limited - 7.69
Security Deposit adjusted towards Rent

Sobha Interiors Private Limited 14.00 14.00
Advance paid towards purchase of goods or services

Sobha Assets Private Limited - 1.64
SOBHA LIMITED

31 March 2023 31 March 2022
Restated
Refundable deposits paid towards joint development
Sobha Highrise Ventures Private Limited 20.00 -
Refundable deposits adjusted towards joint development

Unsecured loans - Loan given to

Sobha Contracting Private Limited 23.00 -
Unsecured loans - Loan repaid by

Sobha Contracting Private Limited 12.47 -
Corporate guarantee received

Corporate guarantee given extinquised
STANDALONE
Corporate guarantee received extinquised
Kilai Builders Private Ltd 5,750.00 -
Security received
Sobha Contracting Private Limited 1,238.20 -
Sobha Highrise Ventures Private Limited - 685.75
II. Transaction with Joint venture

Kondhwa Projects LLP 0.60 6.21
III. Transaction with other related parties

Income/(Loss) from sale of land and development rights
Chikmangaloor Properties Private Limited 0.97 -
Thakazhi Developers Private Limited 16.25 -
Thakazhi Realtors Private Limited 6.64 -
Rusoh Marina Properties Private Limited (0.01) -
Mapedu Realtors Private Limited (0.15) -
Mapedu Builders Private Limited (0.14) -
SOBHA LIMITED

31 March 2023 31 March 2022
Restated
Sobha Projects & Trade Private Limited - 70.14
Income from glazing works

Sri Kurumba Educational and Charitable Trust 0.30 1.71

Mr. Anup Shah 0.04 1.80
Income from concrete blocks/works

Sobha Projects & Trade Private Limited 11.57 -
Subcontractor and other charges

Sobha Projects & Trade Private Limited 382.96 530.59
Aircraft hire charges

Sobha Puravankara Aviation Private Limited 129.37 110.57
CSR expenditure - Donation

Land advance
Technobuild Developers Private Limited 200.00 -
STANDALONE

Sri Parvathy Land Developers Private Limited 0.01 0.03
Sri Durga Devi Property Management Private Limited 0.06 0.05

Technobuild Developers Private Limited 247.43 339.52
Puzhakkal Developers Private Limited 52.20 -
Sri Parvathy Land Developers Private Limited 106.48 -
Sri Durga Devi Property Management Private Limited 43.10 -
Provision for land advances


Sobha Glazing & Metal Works Private Limited 5.50 5.50
Contribution to plan assets

Sobha Developers Employees Gratuity Trust 26.90 18.30
SOBHA LIMITED

31 March 2023 31 March 2022
Restated
Guarantees received
Sri Durga Devi Property Management Private Limited 1,100.00 -
Sri Parvathy Land Developers Private Limited 1,100.00 -
Guarantees extinguished
Directors’ remuneration
Mr. J. C. Sharma (till 31 March 2022) - 35.04
Mr. Ravi PNC Menon 92.49 80.38
Mr.T P Seetharam (till 31 March 2022) - 6.44
Mr. Jagadish Nangineni (with effect from 01 April 2022) 33.08 -
Dividend paid (payment basis)

Mr. Subhash Bhat (till 14th November 2021) - 0.00
Mr. R V S Rao 0.05 0.05
Salary (including perquisites)
Mr. Vighneshwar G Bhat 5.18 4.69
Mr. Yogesh Bansal (with effect from 15th November 2021) 6.74 2.08
STANDALONE
Directors’ sitting fees and commission
Mr. R V S Rao 2.18 1.94
Mr. Sumeet Jagdish Puri (till 7th October 2021) - 0.99
Mrs. Srivathsala KN 2.23 1.92
Mr. Raman Mangalorkar (with effect from 01 April 2022) 2.16 -
IV. Transaction with key shareholders

Mr. P. N. C. Menon 36.18 42.21
Mrs. Sobha Menon 86.18 100.54
Mr. P. N. C. Menon and Mrs. Sobha Menon (jointly held shares) 15.87 18.51
SOBHA LIMITED
C Details of balances receivable from and payable to related parties are as follows:
31 March 2023 31 March 2022
I. Balances receivable from and payable to wholly owned subsidiaries
Advances recoverable in cash or in kind

Sobha Interior Private Limited 51.41 -
Sobha Nandambakkam Developers Limited 0.78 -
Trade receivables
Contract Asset (Unbilled Revenue)

Sobha City 1.97 51.97
Kilai Builders Private Limited - 41.81
Advance from customers

Sobha Nandambakkam Developers Limited - 7.69

Sobha Tambaram Developers Limited 39.27 6.92
Kilai Builders Private Limited 1.41 181.04
STANDALONE
Refundable deposits towards joint development

Right of use Assets

Sobha Interiors Private Limited 84.00 98.00
Unsecured loan to related parties

Includes interest accured

SOBHA LIMITED
31 March 2023 31 March 2022
Allowance for credit loss

Guarantees and Collaterals provided

Sobha Assets Private Limited - 227.32
Sobha City 998.78 998.78
Guarantees received
Kilai Builders Private Limited - 5,750.00
Sobha Interiors Private Limited 1,100.00 1,100.00
Security received
Sobha Interiors Private Limited 1,802.32 1,806.21
Sobha Highrise Ventures Private Limited 1,238.20 -
Sobha Contracting Private Limited 1,149.81 790.53
Sobha City 1,555.88 1,714.08
II. Balances receivable from and payable to joint ventures & associates
In partners current account
Kondhwa Projects LLP 1,149.28 1,148.68
Sobha City 1,381.57 1,259.42
STANDALONE
III. Balances receivable from and payable to other related parties
Land advance
Technobuild Developers Private Limited 8,152.41 8,199.84
Puzhakkal Developers Private Limited - 52.20
Sri Durga Devi Property Management Private Limited - 43.10

Right of use Assets


Sobha Glazing & Metal Works Private Limited 10.02 -
Sobha Aviation and Engineering Services Private Limited - 0.01
Thakazhi Developers Private Limited - 0.05
Thakazhi Realtors Private Limited - 0.04
SOBHA LIMITED
Sobha Space Private Limited - 0.01

31 March 2023 31 March 2022
Mannur Real Estate Private Limited - 0.15

Mannur Properties Private Limited - 0.02
Sobha Technocity Private Limited - 0.02
Moolamcode Traders Private Limited - 0.02
Trade receivables
Mapedu Realtors Private Limited 0.35 2.18
Mapedu Builders Private Limited - 1.24
Chikmangaloor Realtors Private Limited - 0.42
Chikmangaloor Properties Private Limited - 2.23
Allapuzha Fine Real Estate Private Limited - 1.45
Rusoh Modern Properties Private Limited - 1.49
Rusoh Marina Properties Private Limited - 0.52
Santhavellur Developers Private Limited - 0.02
Santhavellur Realtors Private Limited - 0.02
Santhavellur Builders Private Limited - 0.01

Trade payables
STANDALONE

Mapedu Builders Private Limited 0.11 -
Rusoh Marina Properties Private Limited 0.02 -
Other Payables
Sobha Glazing & Metal Works Private Limited - 50.14
Guarantees received
Sri Durga Devi Property Management Private Limited 1,100.00 1,500.00
Sri Parvathy Land Developers Private Limited 1,100.00 1,500.00
Security Received
D Payable to key management personnel/director of the Company

SOBHA LIMITED
31 March 2023 31 March 2022
Commission to independent directors 8.00 5.95

Commission to Chairman, Vice Chairman & Managing Director 41.10 38.97
49.10 44.92
E Compensation of key management personnel of the Company
31 March 2023 31 March 2022
Short-term employee benefits 137.49 121.86

Other benefits* 41.10 38.97
178.59 160.83
*As the liability for gratuity and leave encashment is provided on actuarial basis for the Company as whole, the
amount pertaining to the directors are not included above.
Note
The director of the Company has given fund shortfall undertaking for cetain borrowings towards funding of the
respective underlying projects. Refer note 20
36 Segment information
Basis of segmentation
An operating segment is a component of the Company that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Company’s other components, and for which discrete financial information is available. All operating
segments’ operating results are reviewed regularly by the Company’s Managing Director (MD) to make
decisions about resources to be allocated to the segments and assess their performance.
STANDALONE
The Company has two reportable segments, as described below, which are the Company’s strategic
business units. These business units offer different products and services, and are managed separately
because they require different marketing strategies. For each of the business units, the Company’s MD
reviews internal management reports on at least a quarterly basis.
The MD monitors the operating results of its business units separately for the purpose of making decisions
about resource allocation and performance assessment. Accordingly, the company has identified following
as its reportable segment for the purpose of Ind AS 108:
a) Real estate segment;
b) Contractual and manufacturing segment.
Real Estate segment (RE) comprises development, sale, management and operation of all or any part of
townships, housing projects, also includes leasing of self owned commercial premises.
The operation of the Contractual and Manufacturing segment (CM) comprises development of commercial
premises and other related activities, also includes manufacturing activities related to interiors, glazing and
metal works and concrete products.
Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss
in the financial statements. Also, the Company’s financing (including finance costs and finance income) and
income taxes are managed on a overall basis and are not allocated to operating segments.
SOBHA LIMITED
The following tables present revenue and profit information for the Company’s operating segments for the
year ended 31 March 2023 and 31 March 2022 respectively:
Business segments

31 March 2023 31 March 2022
Restated
Segment revenue
Real estate 24,542.91 18,049.61
Contractual and manufacturing 10,339.95 8,213.78
Total segment revenue 34,882.86 26,263.39
Inter segment revenues (1,602.00) (792.12)
Net revenue from operations 33,280.86 25,471.27
Segment result
Real estate 5,441.85 7,385.34
Contractual and manufacturing 131.10 (89.71)
Total segment results 5,572.95 7,295.63
Finance costs (2,423.80) (2,993.70)

Other unallocable expenditure (2,528.01) (2,596.77)
Share of profits/ (losses) in a subsidiary partnership firm 19.06 (5.73)
Other income (including finance income) 676.89 611.30
Profit before taxation 1,317.09 2,310.73

Income taxes (364.21) (619.25)
Profit after taxation 952.88 1,691.48
STANDALONE
The following table presents assets and liabilities information for the Company’s operating segments as at 31
March 2023 and 31 March 2022 respectively:-
Particulars As at 31 March As at 31 March

2023 2022
Restated
Segment assets
Real estate 99,713.48 88,954.11
Total segment assets 106,232.24 96,833.11
Unallocated assets 15,087.42 14,298.75
Total assets 121,319.66 111,131.86
Segment liabilities
Real estate 64,975.03 49,241.22
Total segment liabilities 71,214.40 55,613.95
Unallocated liabilities 26,694.58 32,735.65
Total liabilities 97,908.98 88,349.60
SOBHA LIMITED

2023 2022
Restated
Capital employed
Real estate 34,738.35 39,712.90
Contractual and manufacturing 279.39 1,506.27
Unallocated capital employed (11,607.16) (18,436.90)
Total capital employed 23,410.58 22,782.27
Current taxes, deferred taxes and certain financial assets and liabilities are considered as unallocated as they
are also managed on a Company basis.

31 March 2023 31 March 2022
Capital expenditure Restated
Real estate 407.72 130.30
Contractual and manufacturing 84.74 42.54
Unallocated capital expenditure 732.01 65.20
Total capital expenditure 1,224.47 238.04
Capital expenditure consists of additions of property, plant and equipment, intangible assets, investment
property, investment property under development and intangible assets under development
Information of revenue and non-current operating assets based on location has not been furnished since there
are no revenue generated from business activities outside India and there are no non-current operating assets
held by the Company outside India.
Reconciliations to amounts reflected in the financial statements
STANDALONE
(i) Reconciliation of assets

2023 2022
Restated
Segment assets 106,232.24 96,833.11
Investment (refer note 9) 4,521.29 4,398.54
Prepaid expenses (refer note 14) 1,013.08 711.40
Balances with statutory/ government authorities (refer note 14) 982.03 1,086.89
Cash and bank balances (refer note 15 and 16) 4,404.83 1,730.38
Non-current bank balances (refer note 13) 151.04 143.05
Other unallocable assets 4,015.15 6,228.49
Total assets 121,319.66 111,131.86
SOBHA LIMITED
(ii) Reconciliation of liabilities

2023 2022
Restated
Segment liabilities 71,214.40 55,613.95
Borrowings (refer note 20) 19,394.36 24,311.53
Provisions (refer note 22) 431.62 329.25
Liabilities for current tax (net) (refer note 33) - 202.94
Withholding taxes payable (refer note 24) 120.54 63.77
Others payable (refer note 24) 104.89 143.80
Other unallocable liabilities 6,643.17 7,684.36
37 Employment benefit plans

A Defined benefit plan
The Company has gratuity as defined benefit retirement plans for its employees. The Company provides for
gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service
for a period of 5 years are eligible for gratuity at the rate of 15 days basic salary for each year of service until the
retirement age. As at 31 March 2023 and 31 March 2022 the plan assets were invested in insurer managed funds.
It is exposed to the following types of risks:
Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the
liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the
assets depending on the duration of asset.
Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries
of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s
liability.
STANDALONE
Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds. If the return
on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced
mix of investments in government securities, and other debt instruments.
Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested
in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only,
plan does not have any longevity risk.
Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company”
The following tables set out the the funded status of gratuity plans and amount recognised in the balance sheet
for the respective plans:

2023 2022
1 The amounts recognized in the Balance Sheet are as follows:
Present value of defined benefit obligation at the end of the year 318.74 251.17
Less: Fair value of plan assets as at the end of the year 4.21 3.35
Net liability recognised in the balance sheet 314.53 247.82
2 Changes in the present value of defined benefit obligation

Defined benefit obligation as at beginning of the year 251.17 220.36
Current service cost 24.35 22.91
Interest cost 16.10 13.35
SOBHA LIMITED

2023 2022
Benefits paid (26.04) (17.47)

Actuarial (gain) / loss due to demographic assumption changes 6.06 (0.04)
Actuarial (gain) / loss due to financial assumption changes 26.70 (3.49)
Actuarial (gain) / loss due to experience 20.39 15.55
adjustments
Defined benefit obligation as at the end of the year 318.74 251.17
3 Changes in the fair value of plan assets

Fair value as at the beginning of the year 3.35 2.40
Interest on plan assets 0.21 0.15
Actuarial gain / (loss) (0.21) (0.03)
Contributions 26.90 18.30
Fair value as at the end of the year 4.21 3.35
4 Net gratuity cost for the reporting years comprises of following components
Interest income (0.21) (0.15)
Net Gratuity cost 40.24 36.11
5 Other comprehensive income
Actuarial loss on defined benefit obligation (53.15) (12.01)
Return on plan assets excluding interest income (0.21) (0.03)
Loss recognised in other comprehensive income (53.36) (12.04)
STANDALONE
6 Experience adjustment:
On plan defined benefit obligation (gain)/loss 20.39 15.55
On plan assets gain / (loss) (0.21) (0.03)
7 Investment Details
The major categories of plan assets as a percentage of the fair value of the total plan assets are as follows:
31 March 31 March
Particulars
2023 2022
Investment in insurance fund 100% 100%
8 Actuarial assumptions
31 March 31 March
Particulars
2023 2022
Discount rate (p.a) 7.20% 6.41%

Future salary growth (p.a) 12.00% 5.00%
Weighted Average Duration of the Defined Benefit Obligation (years) 3 5
Attrition rate (p.a) 35.00% 15.00%
SOBHA LIMITED
9 Sensitivity Analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Decrease Increase Decrease Increase
Discount rate (+ / -1%) 5.63 5.94 9.39 10.28
Salary growth rate (- / + 1%) 4.64 4.74 8.60 9.16
Attrition rate (+ / -1%) 1.09 1.14 0.59 0.51
The sensitivity analyses above have been determined based on a method that extrapolates the impact on
projected benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the
reporting period.
10 Maturity profile of defined benefit obligation

2023 2022
Within the next 12 months 108.32 49.27
Between 2 and 5 years 197.18 131.96
Beyond 10 years 10.01 68.23
Total expected payments 370.24 339.02
Expected contribution in the next year ₹ 85.67.
B Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952 and Employees State Insurance Scheme as per the Employees’ State
Insurance Act, 1948. The Company has recognized the following amounts in the Statement of Profit and Loss
under defined contribution plan whereby the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits:
STANDALONE

31 March 31 March
2023 2022
Employer’s contribution to provident fund 88.45 78.44
Employer’s contribution to Employees’ state 0.99 1.35
insurance scheme
Contribution to Superannuation Fund 0.35 0.40
Total 89.79 80.19

SOBHA LIMITED
38 Leases
A The Company as a lessor

Assets given on operating lease:
The Company has entered into operating lease agreements with its lessees. Total lease rental income recognized
in the statement of profit and loss for the year is ₹ 318.09 (31 March 2022: ₹ 310.48)
The future minimum lease receivables under operating leases in aggregate are as follows:
Year As at As at
31 March 2023 31 March 2022
Restated
FY 2022-23 - 231.35
FY 2023-24 294.16 241.62
FY 2024-25 273.95 219.03
FY 2025-26 126.15 69.51
FY 2026-27 85.44 24.64
FY 2027-28 75.19 -
More than 5 years 100.30 42.11
Total 955.19 828.26
B The Company as a lessee
The Company has leases for building, vehicles and plant and machinery. With the exception of short-term
leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use
asset and a lease liability except for lease on buildings for which it was agreed that the company shall pay a
security deposit which shall be adjusted to the minimum lease payments and due to which no lease liability in
the same was created and the amount given as security deposit is treated as Right of use asset depreciated
on a straight line basis over the lease period. Variable lease payments which do not depend on an index or a
rate are excluded from the initial measurement of the lease liability and right of use assets. The Company has
presented its right-of-use assets in the balance sheet separately from other assets.
STANDALONE
Lease arrangements for vehicles contain an option to extend the lease for a further term till the vehicle is
handed over to the lessor after the end of lease term as per agreement or for a fixed tenure of 3 to 9 months
as the case may be as per the requirement of Lessee.The Company is prohibited from selling or pledging the
underlying leased assets as security. For leases over Factory buildings, the Company must repair and maintain
those properties in a good state and return the properties with all connections, sanitary, water and drainage
fittings and fixtures as it may exist on the relevant date.
a. Right of use assets
Particulars Other Vehicles Plant and Total

buildings machinery
Cost
As at 1 April 2021 (Restated) 175.50 128.20 90.33 394.03
Additions during the year - 22.48 - 22.48
Disposal during the year - (3.38) - (3.38)
As at 31 March 2022 (Restated) 175.50 147.30 90.33 413.13
As at 31 March 2023 175.50 163.82 90.33 429.65
Accumulated amortisation
Charge for the year 19.50 30.99 20.95 71.44
SOBHA LIMITED
Particulars Other Vehicles Plant and Total

buildings machinery

As at 31 March 2023 58.50 96.01 87.78 242.29
Carrying amount
As at 31 March 2023 117.00 67.81 2.55 187.36
b. Set out below are the carrying amounts of lease liabilities and the movements during the year:
Particulars Amount
As on 1 April 2021 (Restated) 279.18

Interest expense for the year 30.83
Payment of lease liabilities (79.00)
As on 31 March 2022 (Restated) 253.49
As on 31 March 2023 232.81
31 March 2023 31 March 2022
Current 28.04 50.70
Non Current 204.77 202.79
STANDALONE
c. The following are the amounts recognised in the profit & loss
31 March 2023 31 March 2022
Depreciation expenses of right-of-use assets 69.40 71.44
Interest expenses on lease liabilities 27.26 30.83
Expenses relating to short-term leases 156.36 169.31
Expenses relating to lease of Low-value assets 1.54 1.23
Total amount recognised in the profit & loss 254.56 272.81
Total cash out flows towards leases 237.26 249.54
Lease term of the above referred leases range from 11 months to 63 years
d. Information about extension and termination options

Right of use assets Number Range of Average Number of Number of Number of
of leases remaining remaining leases with leases with leases with
extension purchase termination
term(in lease term options option option
years) (in years)
Other buildings 2.00 5.92 6.00 2.00 - -
Plant and Machinery 9.00 0.04 to 0.21 0.11 - 9 -
Vehicles 62.00 0.35 to 4.68 2.52 62.00 62 62
e. The maturity profile for lease liabilities has been provided in note 41 (c)
SOBHA LIMITED
39 Contingent liabilities and commitments
a Contingent liabilities (to the extent not provided for)

Income tax matters in dispute (Refer note 1) - -
i
ii Value added tax, Service tax and customs matters in dispute (Refer note 2) 1,288.38 1,528.94
iii Customer related cases and complaints (Refer note 3) 2.00 -
iv Matters before prevention of money laundering adjudicating authority (refer 2,016.00 -
note 4)
3,306.38 1,528.94
Note - Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the
timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgements/
decisions pending with various forums/authorities.
The Company does not expect the outcome of these proceeding to have a material adverse effect on its financial
position. The Company does not expect any reimbursement in respect of above contingent liability.
1 The Income Tax Authorities have disputed the tax computation for certain years, which are pending before
various forums. Based on the grounds of the appeals, the management believes that there is a reasonably strong
likelihood of obtaining a favourable order. Any income, which may arise out of such litigations will be recognised
only on the receipt basis/ or where right to receive such income is clearly established. Pending the final decisions
on the above matter, no adjustment has been made in these standalone financial statements.
2 There are various disputes pending with the authorities of customs, service tax and value added tax. The
Company is contesting these demands raised by authorities and are pending at various appellate authorities.
The Company has reviewed all its pending litigations and proceedings and has adequately provided for
where provisions are required and disclosed as contingent liabilities where applicable, in its seperate financial
statements. The Company does not expect the outcome of these proceedings to have a materially adverse
effect on its financial position.
3 There are various litigations going on/ complaints filed against the Company primarily in Consumer Redressal
Forum and under the real estate regulation act 2016. The Company is contesting such litigations with the
STANDALONE
respective appellate authorities. The management has reviewed all its pending litigations and proceedings
and has adequately provided for where provisions are required in its seperate financial statements. For most
number of litigations/ complaints, based on the grounds of the appeals, the management believes that there is
a reasonably strong likelihood of succeeding before these authorities and hence, pending the final decisions on
the above matters, no adjustment has been made in these standalone financial statements.
4 The Company had entered into a Joint Development Arrangement with certain land owners in Gurugram, Haryana,
in earlier years. In respect of this transaction, the Enforcement Directorate (‘ED’) after due investigation has filed a
complaint with Adjudicating Authority, Prevention of Money Laundering (‘AA-PML’), alleging certain irregularities
in respect of the manner of allotment and pricing of certain plots under this project or payment of applicable
fees and charges by the Company or the landowners, with respect to the terms and conditions mentioned in the
development policy of Haryana Development and Regulation of Urban Areas Act (HDRUAA), 1975 and the bilateral
agreement between the land owners and Directorate of Town and Country Planning, Haryana (DTCP) resulting in
provisional attachment under the Prevention of Money Laundering Act, 2002 (‘PMLA’) of land parcels with value of
₹ 2,016 disclosed under “Other non-current assets” in the accompanying standalone financial statements, held by
Technobuild Developers Private Limited (‘TDPL’). The Company has entered into a Memorandum of Understanding
(‘MoU’) with TDPL for acquiring land parcels using advances extended by the Company. As per the MoU, TDPL and
its affiliates cannot transfer land parcels without prior approval of the Company and the Company has absolute
rights over land parcels acquired by TDPL and its affiliates acquired from such advance given by the Company
As part of the inquiry process, the Company and its officers have been asked to provide contracts, documents
and justification in respect of this transaction by the concerned authorities. The Company and its officers have
been responding to the queries raised / documents sought from time to time. During the current quarter, the
Company is in receipt of Show Cause Notice (SCN) under the PMLA from AA-PML and the Company has duly filed
detailed responses to allegations made in SCN and the Company is yet to receive the response from AA-PML.
.
SOBHA LIMITED
The management, based on its overall assessment and independent legal opinion obtained, believes that these
transactions have been carried out in accordance with all the applicable laws and regulations and the said bilateral
agreement and has not identified any adverse material impact to the standalone financial statements as at 31
March 2023 or for earlier periods including the recoverability of land advance given against such provisionally
attached ₹ 2,016 land parcels held through TDPL.
5 The Income Tax Department (“the Department”) conducted a Search activity (“the search”) under Section 132
of the Income Tax Act (“the Search”) at various premises of the Company and certain group companies during
March 2023. The Company has provided all the necessary support and cooperation to the Income-tax officials
during the search and provided all the necessary information including documents and data sought by the
Department. As on the date of issuance of these financial results, the Company has only received a notice u/s148
requiring the management to re-file the Income Tax return for AY 2016-17.
While the uncertainty exist regarding the outcomes of the proceedings by the Department, the Company and
certain group companies after considering all available records and facts known to it, has not identified any
adjustments to the current or prior period standalone financial results at this stage.
6 During the current year, one of the customers of Sobha Assets Private Limited (SAPL), a wholly owned subsidiary
of the company has terminated a project development contract entered by it and demanded compensation of
₹2,956 in addition to forfeiture of a ₹227 performance guarantee and ₹26 of deposits alleging that SAPL has
not commenced the contract work. The carrying value of aforesaid project related assets/receivables as at 31
March 2023 in the books of the Company and SAPL is ₹24 and ₹330 respectively. SAPL has filed a petition with
the court of jurisdiction challenging the termination and its grounds, and also filed a counter claim from the
customer towards business losses and other receivables. The Company based on its overall assessment and
independent legal opinion, believes that the aforesaid termination is illegal and will not have any adverse impact
to the financial results and accordingly no provision has been made.
7 In the earlier year, the renewal of Fire Department ‘no objection certificate’ for one of the project procured by
an entrusted person, was found to be defective. On becoming aware of this fact, the Company immediately
took remedial steps and obtained renewed approvals, which were then re-submitted with the local body for
regularization. During the current year, the local body has cancelled the Occupancy Certificate (OC), against
which the Company has filed an appeal with Karnataka Appellate Tribunal challenging the cancellation of OC. The
Karnataka Appellate Tribunal has ordered stay on such cancellation order of the OC. The Company is working with
the local body for resolution of the aforesaid matter. The management is of the view that the aforementioned
event shall not have a material impact on the standalone financial statements of the Company.
STANDALONE
8 The Company is involved in certain litigations for lands being developed/ acquired by it for construction purposes,
either through a Joint Development Agreement or through outright purchases. These cases are pending with
the Civil Courts and scheduled for hearings. After considering the facts and circumstances of each case in detail,
and post consideration of the opinions of the in-house legal council, management believes that these litigations
will not have a material effect on the standalone financial statements.
9 Certain litigations have been filed on the Company by the forest department, Bangalore water supply and
sewage board (BWSSB) on certain real estate projects undertaken by the Company. Also, certain claims have
been laid upon the company under the Land acquisition act, against which the Company has filed various writ
petitions and obtained stay orders from the honorable high court. The impact of all such litigations and claims is
not quantifiable. These litigation/ claims are pending with various courts and are scheduled for hearings. Based
on internal assessment, and post consideration of the opinion of its in-house legal council, the management is
confident that the matter would be decided in its favour, accordingly no adjustment has been made in these
standalone financial statements.
b. Commitments
(a) The contractual commitments pending for the acquisition of property, plant and equipment as at 31 March
2023 is ₹ 250.03 (31 March 2022: ₹ 146.80)
(b) The Company has entered into an aircraft usage agreement with a party wherein the Company along with
certain other parties has committed minimum usage of aircraft. During the year ended 31 March 2023, the
Company incurred ₹ 129.37 (31 March 2022 - ₹ 110.57) towards aircraft usage as per the agreement.
SOBHA LIMITED
40 Fair value measurements
a. The carrying amounts of financial instruments by categories is as follows:
Note As at 31 March 2023 As at 31 March 2022 (Restated)

At cost Fair value At At cost Fair value At
Particulars through amor- through amor-
profit or tised cost profit or tised cost
loss loss
Financial assets
Investments 9 - - 0.08 - - 0.08
Trade receivables 11 - - 2,892.78 - - 4,156.70
Loans 12 - - 667.17 - - 342.88
Cash and bank balances 15 & 16 - - 4,404.83 - - 1,730.38
Other financials assets 13 - - 5,092.34 - - 6,256.87
Total - - 13,057.20 - - 12,486.91
Borrowings 20 - - 19,394.36 - - 24,311.53
Trade payables 23 - - 5,956.15 - - 4,415.08
Other financial liabilities 21 - - 8,585.15 - - 6,982.88
Lease Liabilities 38 232.81 253.49
Total - - 34,168.47 - - 35,962.98
* Investment in equity shares of subsidiaries are measured as per Ind AS 27, ‘separate financial statements’and have been
excluded above.
b. Fair value hierarchy
The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities
As at 31 March 2023 As at 31 March 2022 (Restated)

Particulars Carrying Fair value Carrying Fair value
amount amount
STANDALONE
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Investment properties
2,767.92 - 1,394.10 4,484.00 2,168.14 - - 4,432.00
(disclosure)
2,767.92 - 1,394.10 4,484.00 2,168.14 - - 4,432.00
Notes:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.
Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly or indirectly.
Level 3 inputs are unobservable inputs for the asset or liability.
There have been no transfers between the levels during the year.
Financial instruments carried at amortised cost such as trade receivables, cash and other financial assets, borrowings, trade
payables and other financial liabilities are considered to be same as their fair values, due to their short term nature. For financial
assets and liabilities that are measured at amortised cost, the carrying amounts are equal to the fair values.
Valuation method used for level 3 valuations -

Particulars Valuation technique Unobservable input Relationship of unobservable input with fair value
Fair value of Income approach Discount rate Increase/decrease in discount rate would result in
investment (discounted cash flow decrease/ increase in fair value
property method)
(disclosure only)
Expected vacancy rates Increase/decrease in vacancy rate would result in
decrease/ increase in fair value
Rental growth rate Increase/decrease in rental growth rate would result
in increase/ decrease in fair value
SOBHA LIMITED
41 Financial risk management

The Company’s principal financial liabilities comprise borrowings, trade payables and other financial liabilities. The
main purpose of these financial liabilities is to finance and support the Company’s operations. The Company’s
principal financial assets include instruments, trade and other receivables, cash and bank balances, land advances
and refundable deposits that derive directly from its operations. The Company has exposure to the following risks
arising from financial instruments
Risk Exposure arising from
Market Risk-Interest rate risk (A) Borrowings
Credit Risk (B) Trade receivables, cash and cash equivalents, bank balances, and other
deposits and investments
Liquidity Risk (C) Borrowings, trade payables, and other financial liabilities
Risk Management policy

The Company’s senior management oversees the management of these risks. The Company’s senior
management is supported by a risk management committee that advises on financial risks and the appropriate
financial risk governance framework for the Company. The risk management committee provides assurance to the
Company’s senior management that the Company’s financial risk activities are governed by appropriate policies
and procedures and that financial risks are identified, measured and managed in accordance with the Company’s
policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks.
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 two types of risk: interest rate risk and other price risk, such
as equity price risk and commodity/ real estate risk. The Company does not have a material foreign currency
exposure as at balance sheet date and hence, this risk is not applicable.
The sensitivity analysis in the following sections relate to the position as at 31 March 2023 and 31 March 2022. The
sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed to floating
interest rates of the debt. The analysis exclude the impact of movements in market variables on: the carrying
values of gratuity and other post retirement obligations; provisions.
The below assumption has been made in calculating the sensitivity analysis:
STANDALONE
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks.
This is based on the financial assets and financial liabilities held at 31 March 2023 and 31 March 2022.
(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates
primarily to the Company’s long-term debt obligations with floating interest rates. The Company manages its
interest rate risk by having a balanced portfolio of fixed and variable rate of borrowings. The Company does not
enter into any interest rate swaps.
Below is the overall exposure of the Company to interest rate risk:
Variable rate borrowings 18,715.68 24,311.53

Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion
of borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through
the impact on floating rate borrowings, as follows:
SOBHA LIMITED
Increase/ decrease in interest rate Effect on profit before tax *
31 March 2023
INR +1% (155.77)
INR -1% 155.77
31 March 2022
INR +1% (243.70)
INR -1% 243.70
* determined on gross basis i.e. with out considering inventorisation of such borrowing cost.
(ii) Price risk

The Company’s exposure to price risk arises from investments held and classified in the balance sheet either as fair
value through other comprehensive income or at fair value through profit or loss. To manage the price risk arising
from investments, the Company diversifies its portfolio of assets. There are no investments held by the company
which are measured at fair value either through profit and loss or fair value through other comprehensive income,
hence the Company is not exposed to price risk.
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 Company is exposed to credit risk primarily from trade receivables (net of
advances/ payables), refundable joint development deposits, security deposits, loans and other financial assets
measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties
and incorporates this information into its credit risk controls. The carrying amounts of financial assets, unbilled
revenue and contract assets represent the maximum credit exposure.
The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is
performed for each class of financial instruments with different characteristics. The Company assigns the following
credit ratings to each class of financial/ contract assets based on the assumptions, inputs and factors specific to
the class of financial/ contract assets.
(a) Low credit risk
STANDALONE
(b) Medium credit risk
(c) High credit risk
Based on business environment in which the Company operates, a default on a financial asset is considered
when the counter party fails to make payments within the agreed time period as per contract. Loss rates
reflecting defaults are based on actual credit loss experience and considering differences between current and
historical economic conditions.
The Company provides for expected credit loss based on the following:
Category Asset class exposed to credit risk Allowance for expected credit loss
Low credit risk/ Loans, trade receivables (Category A and 12 Months expected credit loss or
medium credit risk B), cash and cash equivalents, other financial specific allowance whichever is
assets measured at amortised cost higher
High credit risk Trade receivables (Category C) Life time expected credit loss or
specific allowance
SOBHA LIMITED
a. Management of Credit risk
i. Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only selecting highly rated
banks and diversifying bank deposits and accounts in different banks across the country.
ii. Trade receivables

The Company divides its receivables in the following categories based on the credit risk associated with such categories
Category A - Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers
to pay advances before transfer of ownership, therefore, substantially eliminating the Company’s credit risk in this
respect. Company recognises impairment on a specific identification basis for debtors where no security exists.
Category B - Receivables from related parties: The Company has performs construction services for its subsidiaries
which have individual real estate projects. Credit risk in such cases is managed as control is established; Also, such
subsidiaries manage their credit risks by requiring their customers to pay in advance, before transfer of ownership.
For other related parties, the Company actively manages such credit risk by an established process of inter-party
reconciliations, follow ups and active business at an arms length price.
Category C - Receivables resulting from other than sale of properties: Credit risk is managed by each business unit
(primarily pertaining to the contractual and manufacturing business subdivisions) subject to the Company’s established
policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are
regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major clients,
who have a history of prompt payment for more than 5 years with the Company. For other customers, impairment is
tested collectively based on the business sub-segment in which they operate. The maximum exposure to credit risk
at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as
security. The Company’s credit period generally ranges from 30-90 days.
No single customer individually accounted for more than 10% of the trade receivable balance or more than 10% of
the revenue of the company as at 31 March 2023 and 31 March 2022.
iii. Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes refundable deposits paid under joint development
arrangements, security deposits, loans to related parties, and others. Credit risk related to these other financial
assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal
control system are in place ensure the amounts are within defined limits.
STANDALONE
a. Recognition of Expected credit losses

i. Financial assets with credit risk classified as ‘low’/ ‘medium’
Company provides for expected credit losses on financial assets other than trade receivables by assessing individual
financial instruments for expectation of any credit losses.
For cash & cash equivalents, other bank balances and derivative financial instruments - Since the Company deals with
only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, derivative financial
instruments, other bank balances and bank deposits is evaluated as very low.
For refundable deposits (RD) under joint development arrangements (JDA) and security deposits - Credit risk is
considered low because the Company is in possession of the underlying asset.
For trade receivables (category A and B) and other financial assets - Credit risk is evaluated based on Company
knowledge of the credit worthiness of those parties and loss allowance is measured. For such financial assets, the
Company policy is to provide for 12 month expected credit losses upon initial recognition and provide for lifetime
expected credit losses/ specific allowance upon significant increase in credit risk.
Particulars Note Gross Expected Expected Carrying amount

no. carrying probability credit net of impairment
amount of default losses allowance
31 March 2023
Cash and bank balances 15 & 16 4,404.83 0.00% - 4,404.83
Trade receivables (Category A and B) 11 909.35 0.00% 29.12 880.23
Loans 12 237.86 0.00% 8.34 229.52
SOBHA LIMITED
Refundable deposits under JDA 13 3,406.74 0.00% - 3,406.74

Other financials assets 13 1,685.60 0.00% - 1,685.60
Unbilled revenue 14 1,801.76 0.00% - 1,801.76
31 March 2022
Trade receivables (Category A and B) 11 2,012.26 0.00% 29.12 1,983.14
Loans 12 - - -
Refundable deposits under JDA 13 4,013.72 0.00% 50.55 3,963.17
Unbilled revenue 14 3,324.71 0.00% - 3,324.71
ii. Financial assets with credit risk classified as ‘high’

For trade receivables (Category C) - The Company uses an allowance matrix to measure the expected credit
losses of such trade and finance receivables. The measurement is made collectively based on the business sub-
segment in which the respective customers operate. Loss rates are separately measured for customers which
have a history of prompt payment, and are not significantly past due from payment. Based on the industry
practices and the business environment in which the entity operates, management considers that the trade
receivables and loans are in default (credit impaired) if the payments are more than 730 days past due (Net of
advances/ payables). Loss rates are based on actual credit loss experience over the past eleven quarters. In the
current year, the Company has revised its estimation of loss rates.
Expected credit losses measured on the simplified approach
31 March 2023 Weighted Gross Loss Net carrying

average carrying Allowance amount after
loss rate amount loss allowance
Current (Not past due) 1% 1,226.92 12.56 1,214.36
Upto 90 days past due 3% 641.55 18.09 623.46
91 - 180 days past due 5% 49.86 2.64 47.22
181 - 270 days past due 22% 78.32 17.23 61.10
STANDALONE
271 - 360 days past due 31% 16.50 5.11 11.39
361 - 730 days past due 65% 90.81 59.07 31.74
More than 730 days past due 95% 480.94 457.64 23.29
31 March 2022 Weighted Gross Loss Net carrying

average carrying Allowance amount after
loss rate amount loss allowance

91 - 180 days past due 11% 101.05 10.73 90.32
181 - 270 days past due 19% 88.47 17.11 71.36
271 - 360 days past due 22% 61.46 13.65 47.81
361 - 730 days past due 24% 163.00 39.54 123.46
Movement in allowance for credit losses of Trade receivables

Restated
Opening balance 319.05 304.62
Amounts written off (23.08) (0.55)
Net remeasurement of loss allowance 305.50 14.98
Closing balance 601.46 319.05
SOBHA LIMITED
Movement in allowance for credit losses of others
Other financial assets Loans

Particulars
Restated Restated
Opening balance 50.55 - - -
Amounts written off - - - -
Amounts written back (50.55) - - -
Net remeasurement of loss allowance - 50.55 8.34 -
Closing balance - 50.55 8.34 -
Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in
accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within
credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company’s Board of Directors on
an annual basis, and may be updated throughout the year subject to approval of the Company’s Finance Committee. The
limits are set to minimise the concentration of risks and therefore mitigate financial loss through a counterparty’s potential
failure to make payments. The Company’s maximum exposure to credit risk for the components of the statement of financial
position at 31 March 2023 and 31 March 2022 is the carrying amounts.
C. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
The Company has an established liquidity risk management framework for managing its short term, medium term and
long term funding and liquidity management requirements. The Company’s exposure to liquidity risk arises primarily from
mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining
adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure
that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner
The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank
deposits and loans. The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments:
STANDALONE
On demand Less than 1 to 5 years > 5 years Total

one year
31 March 2023
Borrowings (refer note 20) 6,321.46 5,499.11 8,767.22 1,342.27 21,930.06

Trade payables (refer note 23) - 5,956.15 - - 5,956.15
Other financial liabilities (refer 1.89 8,583.26 - - 8,585.15
note 21)
Lease liabilities (refer note 38) - 49.85 113.92 734.57 898.34
Financial guarantee contracts* - 998.78 - - 998.78
6,323.35 21,087.15 8,881.14 2,076.84 38,368.48
31 March 2022
Other financial liabilities (refer 253.85 6,730.03 - - 6,983.88
note 21)
Financial guarantee contracts* - 1,226.10 - - 1,226.10
6,374.46 21,449.53 10,632.32 2,103.35 40,559.66
(*) Based on the maximum amount that can be called for under the financial guarantee contract.
SOBHA LIMITED
42 Capital management
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all
other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital
management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing
borrowings.
As at 31 March As at 31 March
2023 2022
Restated
Borrowings (long-term and short-term) (Note 20) 19,394.36 24,311.53
Other financial liabilities (interest accrued but not due) (Note 21) 28.15 34.05
Net debt 19,422.51 24,345.58
Equity share capital (Note 17) 948.46 948.46
Other equity (Note 18) 22,462.22 21,833.80
Total capital 23,410.68 22,782.26
Capital and net debt 42,833.19 47,127.84

Gearing ratio 45.34% 51.66%
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call
loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans
and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31
March 2023 and 31 March 2022.
43 Assets pledged as security
STANDALONE
The carrying amounts of assets pledged as security for current and non-current borrowings are:
As at 31 March As at 31 March
Particulars
2023 2022
A. Current Restated
Financial assets
Cash and cash equivalents 82.17 76.37
Bank balance other than cash and cash equivalents 39.88 86.38
Non-financial assets
Inventories 39,737.39 36,689.97
Other assets 1,594.70 3,275.33
Total current assets pledged as securities 43,642.48 42,270.82
B. Non-current Assets
Property, plant and equipment 395.95 707.18
Investment property 1,907.47 1,937.81
Financial assets
Other financial assets
Fixed deposits with banks with maturity more than 12 months 64.81 55.78
Total non-current assets pledged as securities 2,368.23 2,700.77
Total assets pledged as security 46,010.71 44,971.59
SOBHA LIMITED
44 Ratios
Ratios Numerator Denominator As at 31 As at 31 % of Explanation for

March March Change change in ratio of
2023 2022 more than 25%
Liquidity ratio
Current ratio Current Assets Current 1.09 1.13 -3.17% NA
Liabilities
Solvency ratio
Debt-Equity Total Debt* Total Equity 0.83 1.07 -22.37% NA
ratio
Debt Service Earnings for debt Debt service 0.46 0.44 3.99% NA
Coverage ratio service = Net = Interest &
profit after Lease Payments
taxes + Non- + Principal
cash operating Repayments
expenses
Profitability ratio
Return on Net Profits after Average 0.04 0.08 -46.08% Due to higher margin
Equity ratio taxes Shareholder’s in land sale in the
Equity previous year
Net Profit ratio Net Profits after Revenue from 0.03 0.07 -56.88% Due to higher margin
taxes operations in land sale in the
previous year
Return on Earnings before Net Worth + 7% 7% -1.74% NA
Capital interest^^ and Total Debt* +
Employed taxes Deferred Tax
Liability
Return on Interest income on Fixed deposit 2% 5% -55.54% Due to increase in
Investment bank deposits with bank the closing balance
of fixed deposits as
at the year end
STANDALONE
Utilisation ratio
Trade Revenue from Average Trade 2.77 2.82 -1.69% NA
Receivable operations^ Receivable
Turnover Ratio
Inventory Cost of goods sold Average 0.36 0.25 41.20% On account of
Turnover ratio Inventory increase in revenue
which lead to
increase in Cost of
goods sold
Trade Payable Purchase of Average Trade 5.11 3.99 28.11% Due to increase
Turnover Ratio project materials, Payables in operations and
sub contractor higher purchases in
cost, other the current year.
expenses
Net Capital Revenue from Working capital 3.82 2.29 66.54% Increase in working
Turnover Ratio operations = Current capital as a result of
assets–Current increase in overall
liabilities operations
* Includes Interest accrued but not due on borrowings

^ Excludes Income from of constructed properties, plots and other development activities
^^ Net of inventorisation
SOBHA LIMITED
45 Restatement
The financial statements for the previous reporting years were restated for correction of certain items in
accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors which are described
in more detailed as below:
(i) The Company had accrued for notional interest on advance from customers involving sale of real estate
unit and had capitalised such interest to project cost. However, the Company received such consideration
in accordance with the terms of the contract in proportion to the completion of such real estate project and
accordingly does not involve any significant financing element.
(ii) The Company has restated the accounting for revenue from the development and transfer of constructed
area/revenue sharing arrangement in exchange of such development rights acquired under Joint Development
Arrangement (JDAs) [not being jointly controlled operations] on gross basis in accordance with guidance on
‘non-cash consideration’ under Ind AS 115, Revenue from Contract with Customer.
(iii) The Company has restated the capitalisation of borrowing cost on lands and land advances wherein no
significant development activity had commenced and projects wherein substantially all activities necessary for
their sale had been completed to capitalise appropriate borrowing cost and other directly attributable project
cost to projects under construction in accordance with relevant Ind AS.
(iv) rectification of certain other items pertaining to (a) accounting of construction contracts, other operating
income and expense (b) right of use asset (c) discounting of retention money and (d) reclassification of
borrowings. Consequential impact of deferred tax has been recorded on these adjustments.
The effect of restatement on financial statement line items for the prior years as follow:
Balance sheet as at 01 April 2021
As
Rectification
Particulars Note previously Restated
of error
reported
Assets
Property, plant and equipment (iv) 2,647.77 72.75 2,720.52
Investment property (iv) 1,691.59 427.44 2,119.03
STANDALONE
Right of use assets (iv) 245.99 32.22 278.21
Trade receivables (non - current) (iv) 423.99 97.02 521.01
Other non-current financial assets (iv) 1,414.40 (150.93) 1,263.47
Deferred tax asset (net) (iv) (258.67) 474.58 215.91
Other non-current assets (i), (iii) 5,200.77 (658.33) 4,542.44
Inventories (i), (ii), (iii) 67,515.27 3,873.01 71,388.28
Loans (iv) - 303.45 303.45
Other current financial assets (iii) 6,021.52 (218.58) 5,802.94
Other current assets (ii) 13,802.75 (854.52) 12,948.23
Equity
Other equity (i), (ii), (iv) 21,922.28 (1,438.99) 20,483.29
Liabilities
Non-current borrowings (iv) 2,767.76 - 2,767.76
Non-current lease liabilities (iv) 67.97 150.23 218.20
Current borrowings (iv) 26,104.02 420.00 26,524.02
Current lease liabilities (iv) 61.98 (1.00) 60.98
Total outstanding dues of creditors other than (iv) 7,339.81 (2,331.05) 5,008.76
micro enterprises and small enterprises
Other current financial liabilities (iv) 5,644.09 1,016.21 6,660.30
Other current liabilities (iv) 42,048.86 5,582.71 47,631.57
SOBHA LIMITED
Balance sheet as at 31 March 2022
Note As previously Rectification Restated

Particulars
reported of error
Assets
Loans (iv) - 342.88 342.88
Other current financial assets (iii) 5,208.33 (323.64) 4,884.69
Equity
Other equity (i), (ii), (iv) 22,709.83 (876.03) 21,833.80
Liabilities
Non-current borrowings (iv) 6,635.92 (3,629.13) 3,006.79
Current borrowings (iv) 17,252.46 4,052.28 21,304.74
Total outstanding dues of creditors other than micro (iv) 6,698.30 (2,283.22) 4,415.08
enterprises and small enterprises
Statement of profit and loss for the year ended 31 March 2022
As previously Rectification
Particulars Note Restated
STANDALONE
reported of error
Revenue from operations (i), (ii), (iv) 27,140.93 (1,669.66) 25,471.27

Other income (iv) 948.66 (67.69) 880.97
Land purchase cost (ii) 1,959.10 111.89 2,070.99

Changes in purchase of project materials, land (i), (ii), (iii) (2,745.78) 1,520.49 (1,225.29)
stock, work in progress and finished goods
Employee benefits expense (iv) 2,294.47 217.69 2,512.16
Finance cost (i), (iii) 7,283.26 (4,289.56) 2,993.70
Depreciation and amortization expense (iv) 680.42 (2.26) 678.16
Other expenses (iv) 3,548.33 (80.22) 3,468.11
Profit before tax 1,526.11 784.62 2,310.73

Tax expenses (i), (ii), (iii), (iv) 397.59 221.66 619.25
Total comprehensive income for the year 1,119.51 562.96 1,682.47
Basic and Diluted EPS 11.90 5.93 17.83
Statement of profit and loss for the year ended 31 March 2022
As previously Rectification
Particulars Note Restated
reported of error
Net cash from operating activities (iv) 7,983.12 49.94 8,033.06

Net cash flows from financing activities (iv) (8,146.36) (49.94) (8,196.30)
SOBHA LIMITED
46 Derivative instruments and unhedged foreign currency exposure

Foreign currency exposure that are not hedged by derivative instruments
or otherwise:
Trade payables 45.91 24.78
47 Additional regulatory information pursuant to the requirement in Division II of

Schedule III to the Companies Act 2013
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
(vi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year
(vii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
STANDALONE
statutory period.
48 As the Company is engaged in providing infrastructural facilities as specified in Schedule VI of the Act, provisions
of section 186 except sub-section (1) of the Act are not applicable to the Company.
49 No material events have occurred between the Balance Sheet date to the date of issue of these standalone
financial statements that could affect the values stated in the financial statements as at 31 March, 2023.
As per our report of even date attached
Partner
Compliance Officer
29 May 2023 29 May 2023
INDEPENDENT AUDITORS’ REPORT

To the Members of Sobha Limited
Report on the Audit of The Consolidated Financial Statements
Opinion
1. We have audited the accompanying consolidated financial statements of Sobha Limited (‘the Holding
Company’) and its subsidiaries (the Holding Company and its subsidiaries together referred to as
‘the Group’), its associate and joint venture, as listed in Annexure I, which comprise the Consolidated
Balance Sheet as at 31 March 2023, the Consolidated Statement of Profit and Loss (including Other
Comprehensive Income), the Consolidated Cash Flow Statement and the Consolidated Statement
of Changes in Equity for the year then ended, and notes to the consolidated financial statements
including a summary of the significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us and
based on the consideration of the reports of the other auditors on separate financial statements
and on the other financial information of the subsidiaries, associate and joint venture, the aforesaid
consolidated financial statements give the information required by the Companies Act, 2013 (‘the
Act’) in the manner so required and give a true and fair view in conformity with the Indian Accounting
Standards (‘Ind AS’) specified under Section 133 of the Act, read with the Companies (Indian
Accounting Standards) Rules, 2015, and other accounting principles generally accepted in India of the
consolidated state of affairs of the Group, its associate and joint venture, as at 31 March 2023, and
their consolidated profit (including other comprehensive income), consolidated cash flows and the
consolidated changes in equity for the year ended on that date.
Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified under Section
143(10) of the Act. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are
independent of the Group, its associate and joint venture in accordance with the Code of Ethics issued
by the Institute of Chartered Accountants of India (‘ICAI’) together with the ethical requirements that
are relevant to our audit of the consolidated financial statements under the provisions of the Act
and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have obtained
together with the audit evidence obtained by the other auditors in terms of their reports referred to
in paragraph 16 of the Other Matters section below, is sufficient and appropriate to provide a basis
for our opinion.
Emphasis of Matter
4. We draw attention to Note 39(5) to the accompanying Consolidated Financial Statements regarding
the search operation carried out by the Income Tax Department at various business premises of the
CONSOLIDATED
Holding Company and certain other group companies during March 2023. As the Holding Company
and certain other group companies have not received any communication on the findings of the
investigation by the Income Tax department till date, the impact of this matter on the accompanying
consolidated financial statements for the year ended 31 March 2023 and the adjustments, (if any)
required to these accompanying consolidated financial Statement, is presently not ascertainable. Our
opinion is not modified in respect of this matter.
Key Audit Matters
5. Key audit matters are those matters that, in our professional judgment and based on the consideration
of the reports of the other auditors on separate financial statements of the subsidiaries, were of most
significance in our audit of the consolidated financial statements of the current period. These matters
INDEPENDENT AUDITORS’ REPORT (CONTINUED)
were addressed in the context of our audit of the consolidated financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.
6. We have determined the matters described below to be the key audit matters to be communicated
in our report.
Key Audit Matter How our audit addressed the key audit matter
1. Revenue recognition for sale of residential

units
The Group applies Ind AS 115, Revenue from Our audit procedures on revenue recognised from
Contracts with Customers (“Ind AS 115”) for sale of residential units included, but were not
recognition of revenue from sale of residential units limited to the following:
and revenue from joint development agreements.
Refer note 2.4(b)(I)(i) and 25 to the consolidated
policy for revenue recognition on sale
financial statements for accounting policy and
of residential units in terms of principles
related disclosures. enunciated under Ind AS 115;
Revenue is recognised upon transfer of control of • Assessed the management evaluation of
residential units to customers for an amount which determining revenue recognition from sale of
reflects the consideration the Group expects to residential units at a point in time in accordance
receive in exchange for those units. The point of with the requirements under Ind AS 115;
revenue recognition is normally based on the terms
as included in the intimation for the handover of • Obtained and understood the revenue
unit to the customer on completion of the project, recognition process, evaluated the design
and substantial collection is received. The Group and performed test of controls over revenue
recognises the revenue at a point in time upon recognition including determination of point
handover/deemed handover of the residential units. of transfer of control and completion of
performance obligations on a sample basis;
For contracts involving sale of residential units, the
Group receives the consideration in accordance • Inspected, on a sample basis, underlying
with the terms of the contract in proportion customer contracts and sale deed/handover
documents, evidencing the transfer of control
of the percentage of completion of such real
of the residential units to the customer based
estate project and represents payments made
on which revenue is recognised at a point in
by customers to secure performance obligation
time, and whether the contracts with customers
of the Group under the contract enforceable by
involved any financing element; and
customers. The assessment of such consideration
received from customers involves significant • Visited sites during the year for selected
judgment in determining if the contracts with projects to understand the nature, status and
customers involves any financing element. progress of the projects.
For revenue contracts forming part of joint For projects executed during the year in CONSOLIDATED
development arrangements that are not jointly accordance with JDAs, we have performed the
controlled operations (‘JDA’), the revenue from following procedures on a sample basis:
the development and transfer of constructed • Obtained and understood the revenue
area/revenue share with corresponding recognition process and performed test of
land/ development rights received by the controls over revenue recognition including
Group is measured at the fair value of the fair valuation of estimated construction service
estimated construction service rendered by revenue under JDA;
the Group to the landowner under JDA. Such

Key Audit Matters (continued)
Revenue recognition for sale of residential

units (cont'd)
revenue is recognised over a period of time in • Obtained and examined the computation of
accordance with the requirements of Ind AS 115. the fair value of the construction service under
JDA with reference to project cost estimates
Ind AS 115 requires significant judgment in
and mark up considered by the management;
determining when ‘control’ of the residential units
is transferred to the customer. Further, for projects • Obtained the JDAs entered into by the Holding
executed through JDA, significant estimate is Company, including addendums thereto and
undertaken by management for determining the compared the ratio of constructed area/
fair value of the estimated construction service. revenue sharing arrangement between the
Holding Company and the landowner as
Considering the significance of management
mentioned in the agreement to the computation
judgements and estimates involved and the
statement prepared by the management; and
materiality of amounts involved, aforementioned
revenue recognition is identified as a key audit • Tested the computation for recognition of
matter. revenue over a period of time for revenue
contracts forming part of JDA and management’s
assessment of stage of completion of projects
and project cost estimates.
the consolidated financial statements in compliance
with the requirements of Ind AS 115.
2. Revenue recognition for contractual

construction projects
The Group recognises revenue over a period of Our audit procedures on revenue recognition for
time in accordance with Ind AS 115, Revenue from contractual construction projects included, but
Contracts with Customers (“Ind AS 115”). Refer note were not limited to the following:
2.4(b)(I)(ii) and 25 to the consolidated financial
statements for accounting policy and related
policy on revenue recognition for contractual
disclosures.
construction projects in terms of principles
The Group recognises revenue from construction enunciated under Ind AS 115;
contracts on the basis of stage of completion (input
• Evaluated the design and tested operating
method) based on the proportion of contract costs
effectiveness of key controls around budgeting
CONSOLIDATED
incurred at reporting date, relating to the total

of project cost, approval of purchase orders,
estimated costs of the contract at completion. The
recording of actual cost, raising of invoices and
recognition of revenue is therefore dependent on
estimating the cost to complete the project;
estimates in relation to total estimated costs of
each such contract, which is subject to inherent • Assessed management evaluation of
uncertainty as it requires ascertainment of progress determining revenue recognition for contractual
of the project, cost incurred till date and balance construction projects over a period of time in
cost to be incurred to complete the project. accordance with the requirements of Ind AS 115;
Significant judgments are also involved in


Revenue recognition for contractual

construction projects (cont'd)
determining when the underlying performance • On a sample basis, tested costs incurred
obligations are satisfied and also determining by examining underlying invoices and other
expected losses, when such losses become applicable documents;
probable based on the expected total contract
• For sample invoices raised during the year,
cost. Cost contingencies are included in these
verifying the underlying documents including
estimates to take into account specific risks of
invoices, work orders and customer acceptance;
uncertainties or disputed claims against the Group,
arising within each contract. These contingencies • Compared actual cost with budgeted cost to
are reviewed by the Management on a regular determine percentage of completion of the
basis throughout the life of the contract and project
adjusted where appropriate.
• Assessed the adequacy of disclosures included
Considering the significance of management in the consolidated financial statements in
judgements and estimates involved and the compliance with the requirements of Ind AS 115.
materiality of amounts involved, revenue
recognition from construction contracts is
identified as a key audit matter.
3. Assessing the recoverability of carrying

value of Inventories, advances paid towards
land procurement and deposits paid under
joint development arrangements (“JDA”)
Refer note 2.4(d), 2.2(e), 2.2(p), 10, 14 and 13 to the Our procedures in assessing the carrying value of
consolidated financial statements for accounting the inventories, land advances and deposits paid
policies on inventories, advances paid towards under JDA included, but were not limited to the
land procurement and deposits paid under JDA following:
(financial asset) and related financial disclosures.
As at 31 March 2023, the carrying value of the policies with respect to inventories, land
inventory comprising of Work in progress, Stock advances and deposits paid under JDA in
of residential units in completed projects and terms of principles enunciated under applicable
land stock is ₹ 84,908.10 million, land advances accounting standards;
is ₹ 9,705.52 million and refundable deposits • Evaluated the design and tested operation of CONSOLIDATED
paid under JDA is ₹ 3,391.06 million, represents a internal controls related to testing NRV/ net
significant portion of the Group’s total assets. recoverable value with carrying amount of
The inventories are carried at lower of cost and net inventory, land advances and deposits paid
realisable value (‘NRV’). The determination of the under JDA;
NRV involves estimates based on prevailing market • Inquired with management to understand key
conditions and taking into account the estimated assumptions used in determination of the NRV/
future selling price, cost to complete projects and net recoverable value; and
selling costs.

Assessing the recoverability of carrying value

development arrangements (“JDA”) (cont'd)
Advances paid by the Group to the seller/ • Obtained and tested the computation/
intermediary towards outright purchase of land is assessment of the NRV/ net recoverable value
recognised as land advance under other assets on a sample basis.
during the course of transferring the legal title
For inventory balance:
to the Group, whereupon it is transferred to land
stock under inventories. Further, deposits paid • Compared the NRV to recent sales in the
under joint development arrangements are in the project or to the estimated selling price;
nature of non-refundable/refundable deposits, for • Obtained and assessed the Holding Company’s
acquiring the development rights. On the launch methodology applied and assumptions used
of the project, the non-refundable amount is in assessing the net realisable value based on
transferred as land cost to work-in-progress. current market conditions and having regard
The aforesaid deposits and advances are carried to expected launch of the project, project
at the lower of the amount paid/payable and development plan and expected future sales;
net recoverable value, which is based on the • Compared the estimated construction costs
management’s assessment including the expected to complete each project with the Holding
date of commencement and completion of Company’s updated budgets; and
the project and the estimate of sale prices and
construction costs of the project. • For land stock, on a sample basis, obtained
the fair valuation reports or the published
We identified the assessment towards guidance values and reviewed the valuation
recoverability of carrying value of inventory, land methodology, key estimates and assumptions
advances and deposits paid under JDA as a key adopted in the valuation. Involved auditor’s
audit matter due to the significance of the balance valuation expert, where such fair valuation
to the consolidated financial statements as a whole reports were obtained.
and the involvement of estimates and judgement
in the assessment. For land advances/ deposits paid under JDA
• Obtained an update on the status of the
land acquisition/ project progress from the
management and verified the underlying
documents for related developments in
respect of the land acquisition to assess

Holding Company’s rights over the land parcels
CONSOLIDATED
in subject and expected recoverability of land

advances / deposits paid under JDA; and
• Carried out external confirmation procedures
on sample basis to obtain evidence supporting
the carrying value of land advance and deposits
paid under JDA.
the consolidated financial statements in compliance
with the applicable accounting standards.

4. Assessment of certain transactions

entered into by the Holding Company
and recoverability of balances, on which
regulatory proceedings are ongoing
The Holding Company had entered into a Our audit procedures on this matter included, but
joint development arrangement with certain were not limited to the following:
landowners in Gurugram, Haryana, in earlier years.
• Obtained an understanding from the
In respect of this transaction, the Enforcement
management with respect to process and
Directorate (‘ED’) after due investigation has filed
controls followed by the Holding Company
a complaint with Adjudicating Authority, Prevention
for identification, monitoring of significant
of Money Laundering (‘AA-PML’), alleging certain
developments and impact analysis in relation to
irregularities in respect of the manner of allotment
the litigations, including completeness thereof;
and pricing of certain plots under this project or
payment of applicable fees and charges by the • Gaining an understanding of the ongoing
Holding Company or the landowners, with respect regulatory proceedings through discussions
to the terms and conditions mentioned in the with the management, and reading the
development policy of Haryana Development and underlying case related documents,
Regulation of Urban Areas Act (HDRUAA), 1975 and communications and legal opinions to ensure
the bilateral agreement between the land owners consistency with the explanations provided to
and Directorate of Town and Country Planning, us and we have also assessed the objectivity,
Haryana (DTCP) resulting in provisional attachment experience, competence and independence of
under the Prevention of Money Laundering management’s expert;
Act, 2002 (‘PMLA’) of land parcels with value of
• Evaluated and challenged the Holding
₹ 2,016.05 million held by Technobuild Developers
Company’s assessment of recoverability of
Private Limited (‘TDPL’) disclosed under Note
39(4). The Holding Company has entered into a the balances outstanding as at the balance
Memorandum of Understanding (‘MoU’) with TDPL sheet date, the business rationale for entering
for acquiring land parcels using advances extended these transactions, including considering the
by the Holding Company, of equivalent value. As developments on the matter subsequent to the
per the MoU, TDPL and its affiliates cannot transfer balance sheet date;
land parcels without prior approval of the Holding • Engaged auditor’s expert, who obtained an
Company and the Holding Company has absolute understanding of the current status of the
rights over land parcels acquired by TDPL and its litigation, reviewed independent legal opinion
affiliates acquired from such advance given by the obtained by the management and considered
Holding Company relevant legal provisions and available
As part of the inquiry process, the Holding Company precedents to validate the conclusions made
and its officers have been asked to provide by the management’s expert;
CONSOLIDATED
contracts, documents and justification in respect
of this transaction by the concerned authorities.
The Holding Company and its officers have been
responding to the queries raised/documents sought
from time to time. During the year, the Holding
Company is in receipt of Show Cause Notice (SCN)
under the PMLA from AA-PML and the Holding
Company in consultation with its legal counsel has
responded to allegations made in SCN.

Assessment of certain transactions

entered into by the Holding Company and
recoverability of balances, on which regulatory
proceedings are ongoing (cont'd)
The Holding Company, based on its overall • Communicated and discussed periodic updates
assessment and independent legal opinion on these transactions with those charged with
obtained, believes that these transactions have governance, including the recoverability and
been carried out in accordance with all the management’s business rationale aspects for
applicable laws and regulations and the said these transactions; and
bilateral agreement and has not identified any
Assessed and validated the adequacy and
adverse material impact to the consolidated
appropriateness of the disclosures made by
financial statements.
the management in the consolidated financial
Considering the significance of the matter which statements.
involves uncertainty of outcome due to ongoing
proceedings in AA-PML and significant judgements
and estimates by the Holding Company on
theassessment of the legality and outcome of the
above case, this is considered as a key audit matter.
Considering this matter is also fundamental to the
understanding of the user of consolidated financial
statements, we draw attention to Note 39(4) of the
consolidated financial statements.
5. Restatement in accordance with Ind AS 8,

Estimates and Errors (“Ind AS 8”)
The accounting policies for restatement of Our audit procedures on this matter included, but
Consolidated financial statements are set out in were not limited to the following:
Note 2.4(v) to the consolidated financial statements.
• Obtained an understanding of the management
During the current year, the Group has made process for identification of restatement
restatements relating to (i) capitalisation adjustments to be made in the consolidated
of borrowing cost (ii) accounting for Joint financial statements;

Development Arrangement (JDAs) [not being
• Evaluated the design and tested the operating
jointly controlled operations] (iii) accounting for
effectiveness of internal controls relevant to
CONSOLIDATED
significant financing element in customer contracts

restatement adjustments;
and various other restatements which has been
explained in Note 45 of the Consolidated financial • Evaluated the appropriateness of the
statements. Amongst other things, the aforesaid implementation of accounting policies and
restatements required detailed re-computation ensured compliance with the requirements
of capitalisation of eligible borrowing costs for of the respective accounting standards and
earlier years, detailed assessment of all ongoing related authoritative pronouncements;
JDAs entered into by the Group and required
significant judgements and estimates to be made

Restatement in accordance with Ind AS 8,

Estimates and Errors (“Ind AS 8”) (cont'd)
on part of the management. Further, assessment • Obtained and tested the computation/ workings
of consideration received from customers involves involved in restatement and understood from
significant judgment in determining if the contracts the management, the rationale in view of
with customers involves any financing element. the applicable accounting standards for the
restatement adjustments carried out in the
Considering the quantum of amounts involved, the
consolidated financial statements;
audit efforts required to audit such restatements
in-depth, frequent interactions with the • Obtained and assessed the relevant contracts/
management and those charged with Governance, agreements for impact assessment of
the restatement is identified as a key audit matter restatement adjustments; and
for the current year audit.
• Ensured that all restatement adjustments
The above matter is also considered fundamental have been dealt with and disclosed in the
to the understanding of the user of consolidated Consolidated financial statement in accordance
financial statements on account of the restatement with Ind AS 8, Accounting Policies, Changes
of comparative financial information for various in Accounting Estimates and Errors as well as
corrections of material prior period errors and the respective accounting standards (including
reclassifications, which are further described in division II of Schedule III), as relevant.
Note 45 of the consolidated financial statements.
Information other than the Consolidated Financial Statements and Auditor’s Report thereon
7. The Holding Company’s Board of Directors are responsible for the other information. The other
information comprises the information included in the Annual Report but does not include the
consolidated financial statements and our auditor’s report thereon. The annual report is expected to
be made available to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
CONSOLIDATED
When we read the Annual Report, if we conclude that there is a material misstatement therein, we
are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
8. The accompanying consolidated financial statements have been approved by the Holding Company’s
Board of Directors. The Holding Company’s Board of Directors are responsible for the matters stated
in section 134(5) of the Act with respect to the preparation and presentation of these consolidated
financial statements that give a true and fair view of the consolidated financial position, consolidated
financial performance including other comprehensive income, consolidated changes in equity and

consolidated cash flows of the Group including its associate and joint venture in accordance with the
Ind AS specified under section 133 of the Act read with the Companies (Indian Accounting Standards)
Rules, 2015, and other accounting principles generally accepted in India. The Holding Company’s
Board of Directors are also responsible for ensuring accuracy of records including financial information
considered necessary for the preparation of consolidated Ind AS financial statements. Further, in
terms of the provisions of the Act the respective Board of Directors of the companies included
in the Group, and its associate company covered under the Act are responsible for maintenance
of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 design, implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that give a true
and fair view and are free from material misstatement, whether due to fraud or error. These financial
statements have been used for the purpose of preparation of the consolidated financial statements
by the Board of Directors of the Holding Company, as aforesaid.
9. In preparing the consolidated financial statements, the respective Board of Directors of the companies
included in the Group and of its associate and joint venture are responsible for assessing the ability
of the Group and of its associate and joint venture to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
10. Those respective Board of Directors are also responsible for overseeing the financial reporting
process of the companies included in the Group and of its associate and joint venture.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
11. Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
12. As part of an audit in accordance with Standards on Auditing specified under section 143(10) of the
Act we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
CONSOLIDATED
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control;
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible
for expressing our opinion on whether the Holding Company has adequate internal financial controls
with reference to consolidated financial statements in place and the operating effectiveness of such
controls;

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management;
• Conclude on the appropriateness of Board of Directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the ability of the Group and its associate and joint
venture to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the consolidated
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group and its associate and joint venture to cease to continue
as a going concern;
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation; and
• Obtain sufficient appropriate audit evidence regarding the financial information/ financial statements
of the entities or business activities within the Group, and its associate and joint venture, to express
an opinion on the consolidated financial statements. We are responsible for the direction, supervision
and performance of the audit of financial statements of such entities included in the consolidated
financial statements, of which we are the independent auditors. For the other entities included in
the consolidated financial statements, which have been audited by the other auditors, such other
auditors remain responsible for the direction, supervision and performance of the audits carried out
by them. We remain solely responsible for our audit opinion.
13. We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
14. We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
15. From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
Other Matters
CONSOLIDATED
16. We did not audit the financial statements of 18 subsidiaries, whose financial statements reflects total
assets of ₹ 10,139.55 million and net assets of ₹ 4,884.85 million as at 31 March 2023, total revenues
of ₹ 1,046.66 million and net cash inflows amounting to ₹ 26.02 million for the year ended on that
date, as considered in the consolidated financial statements. These financial statements have been
audited by other auditors whose reports have been furnished to us by the management and our
opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures
included in respect of these subsidiaries and our report in terms of sub-section (3) of section Section
143 of the Act in so far as it relates to the aforesaid subsidiaries, are based solely on the reports of
the other auditors.
Our opinion above on the consolidated financial statements, and our report on other legal and

regulatory requirements below, are not modified in respect of the above matters with respect to our
reliance on the work done by and the reports of the other auditors.
17. The consolidated financial statements include the Group’s share of net profit (including other
comprehensive income) of ₹ Nil for the year ended 31 March 2023, as considered in the consolidated
financial statements, in respect of 1 associate and 1 joint venture, whose financial information has not
been audited by us. These financial information is unaudited and have been furnished to us by the
management and our opinion on the consolidated financial statements, in so far as it relates to the
amounts and disclosures included in respect of the aforesaid associate and joint venture, is based
solely on such unaudited financial information. In our opinion and according to the information and
explanations given to us by the management, these financial information are not material to the
Group..
Our opinion above on the consolidated financial statements, and our report on other legal and
regulatory requirements below, are not modified in respect of the above matter with respect to our
reliance on the financial information certified by the management.
18. The consolidated financial statements of the Group for the year ended 31 March 2022 were audited
by the predecessor auditor, B S R & Co. LLP, who have expressed an unmodified opinion on those
consolidated financial statements vide their audit report dated 20 May 2022.
Report on Other Legal and Regulatory Requirements
19. As required by section 197(16) of the Act based on our audit and on the consideration of the reports
of the other auditors, referred to in paragraph 16, on separate financial statements of the subsidiaries,
we report that the Holding Company has paid remuneration to its directors during the year in
accordance with the provisions of and limits laid down under Section 197 read with Schedule V to the
Act. Further, we report that 17 subsidiary companies incorporated in India whose financial statements
have been audited under the Act have not paid or provided for any managerial remuneration during
the year. Accordingly, reporting under section 197(16) of the Act is not applicable in respect of such
subsidiary companies. We also report that the provisions of section 197 read with Schedule V to the
Act are not applicable to an associate company incorporated in India, since such company is not a
public company as defined under section 2(71) of the Act.
20. As required by clause (xxi) of paragraph 3 of Companies (Auditor’s Report) Order, 2020 (‘the
Order’) issued by the Central Government of India in terms of section 143(11) of the Act based on the
consideration of the Order reports issued by us and by the respective other auditors as mentioned
in paragraph 16 above, of companies included in the consolidated financial statements and covered
under the Act we report that there are no qualifications or adverse remarks reported in the respective
Order reports of such companies.
21. As required by section 143(3) of the Act, based on our audit and on the consideration of the reports of
the other auditors on separate financial statements and other financial information of the subsidiaries
incorporated in India whose financial statements have been audited under the Act, we report, to the
CONSOLIDATED
extent applicable, that:

a. We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit of the aforesaid consolidated
financial statements;
b. In our opinion, proper books of account as required by law relating to preparation of the aforesaid
consolidated financial statements have been kept so far as it appears from our examination of
those books and the reports of the other auditors;
c. The consolidated financial statements dealt with by this report are in agreement with the
relevant books of account maintained for the purpose of preparation of the consolidated

financial statements;
d. In our opinion, the aforesaid consolidated financial statements comply with Ind AS specified
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015;
e. On the basis of the written representations received from the directors of the Holding Company
and taken on record by the Board of Directors of the Holding and the reports of the statutory
auditors of its subsidiary companies, covered under the Act, none of the directors of the Group
companies and its associate company, are disqualified as on 31 March 2023 from being appointed
as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls with reference to financial
statements of the Holding Company, its subsidiary companies and associate company covered
under the Act, and the operating effectiveness of such controls, refer to our separate report in
‘Annexure II’ wherein we have expressed an opinion; and
g. With respect to the other matters to be included in the Auditor’s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to
the best of our information and according to the explanations given to us and based on the
consideration of the report of the other auditors on separate financial statements and other
financial information of the subsidiaries incorporated in India whose financial statements have
been audited under the Act:
i. The consolidated financial statements disclose the impact of pending litigations on the
consolidated financial position of the Group, its associate and joint venture as detailed in
Note 39 to the consolidated financial statements;
ii. The Holding Company, its subsidiaries, associate company and joint venture did not have
any long-term contracts including derivative contracts for which there were any material
foreseeable losses as at 31 March 2023;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Holding Company during the year ended 31 March
2023. Further, there were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the subsidiary companies and the associate company
covered under the Act, during the year ended 31 March 2023;
iv. a. The respective managements of the Holding Company and its subsidiary companies
incorporated in India whose financial statements have been audited under the Act
have represented to us and the other auditors of such subsidiaries respectively
that, to the best of their knowledge and belief, as disclosed in note 47(iv) to the
accompanying consolidated financial statements, no funds have been advanced or
loaned or invested (either from borrowed funds or securities premium or any other
sources or kind of funds) by the Holding Company or its subsidiary companies to
or in any persons or entities, including foreign entities (‘the intermediaries’), with the
CONSOLIDATED
understanding, whether recorded in writing or otherwise, that the intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Holding Company, or any such subsidiaries,
its associate company or its joint venture (‘the Ultimate Beneficiaries’) or provide any
guarantee, security or the like on behalf the Ultimate Beneficiaries;
b. The respective managements of the Holding Company and its subsidiary companies
incorporated in India whose financial statements have been audited under the Act
have represented to us and the other auditors of such subsidiaries respectively
that, to the best of their knowledge and belief, as disclosed in the note 47(v) to the
accompanying consolidated financial statements, no funds have been received by the

Holding Company or its subsidiary companies from any persons or entities, including
foreign entities (‘the Funding Parties’), with the understanding, whether recorded in
writing or otherwise, that the Holding Company, or any such subsidiaries, its associate
company or its joint venture shall, whether directly or indirectly, lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (‘Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries; and
c. Based on such audit procedures performed by us and that performed by the auditors
of the subsidiaries as considered reasonable and appropriate in the circumstances,
nothing has come to our or other auditors’ notice that has caused us or the other
auditors to believe that the management representations under sub-clauses (a) and (b)
above contain any material misstatement.
v. The final dividend paid by the Holding Company during the year ended 31 March 2023 in
respect of such dividend declared for the previous year is in accordance with section 123 of
the Act to the extent it applies to payment of dividend. Further, the subsidiary companies
and associate company have not declared or paid any dividend during the year ended 31
March 2023.
As stated in note 19 to the accompanying consolidated financial statements, the Board
of Directors of the Holding Company have proposed final dividend for the year ended 31
March 2023 which is subject to the approval of the members at the ensuing Annual General
Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it
applies to declaration of dividend.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies which
use accounting software for maintaining their books of account, to use such an accounting
software which has a feature of audit trail, with effect from the financial year beginning on
1 April 2023 and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors)
Rules, 2014 (as amended) is not applicable for the current financial year.

Manish Agrawal
Partner
UDIN: 23507000BGYESK9813
Bengaluru
CONSOLIDATED
29 May 2023
Annexure I
List of entities consolidated in the consolidated financial statements of Sobha Limited for the year
ended 31 March 2023 (in addition to the Sobha Limited, the Holding Company)
S. No. Name of the Company/Entity Relationship
1 Sobha City Subsidiary
2 Sobha Highrise Ventures Private Limited Subsidiary
3 Sobha Developers (Pune) Limited Subsidiary
4 Sobha Assets Private Limited Subsidiary
5 Sobha Tambaram Developers Limited Subsidiary
6 Sobha Nandambakkam Developers Limited Subsidiary
7 Sobha Construction Products Private Limited Subsidiary
8 Vayaloor Properties Private Limited Step-down subsidiary
9 Vayaloor Builders Private Limited Step-down subsidiary
10 Vayaloor Developers Private Limited Step-down subsidiary
11 Vayaloor Real Estate Private Limited Step-down subsidiary
12 Vayaloor Realtors Private Limited Step-down subsidiary
13 Valasai Vettikadu Realtors Private Limited Step-down subsidiary
14 Sobha Contracting Private Limited Step-down subsidiary
15 Kilai Builders Private Limited Step-down subsidiary
16 Kuthavakkam Builders Private Limited Step-down subsidiary
17 Kuthavakkam Realtors Private Limited Step-down subsidiary
18 Sobha Interiors Private Limited Step-down subsidiary
19 Kondhwa Projects LLP Joint Venture
20 CVS Tech Park Private Limited Associate
This space is intentionally left blank CONSOLIDATED
Annexure II to the Independent Auditor’s Report of even date to the members of Sobha Limited
on the consolidated financial statements for the year ended 31 March 2023
Independent Auditor’s Report on the internal financial controls with reference to consolidated financial
statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)
1. In conjunction with our audit of the consolidated financial statements of Sobha Limited (‘the Holding
Company’) and its subsidiaries (the Holding Company and its subsidiaries together referred to as ‘the Group’),
its associate and joint venture as at and for the year ended 31 March 2023, we have audited the internal
financial controls with reference to financial statements of the Holding Company, its subsidiary companies
and its associate company, which are companies covered under the Act, as at that date.
Responsibilities of Management and Those Charged with Governance for Internal Financial Controls
2. The respective Board of Directors of the Holding Company, its subsidiary companies and its associate
company, which are companies covered under the Act, are responsible for establishing and maintaining
internal financial controls based on the internal financial controls with reference to consolidated financial
statements criteria established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (‘Guidance Note’)
issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of the Company’s business, including adherence to the Company’s
policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely preparation of reliable financial information, as
required under the Act.
Auditor’s Responsibility for the Audit of the Internal Financial Controls with Reference to Consolidated
Financial Statements
3. The audit of internal financial controls with reference to financial statements of the aforementioned associate
company, which is a company covered under the Act, and reporting under Section 143(3)(i) is exempted
vide MCA notification no. G.S.R. 583(E) dated 13 June 2017 read with corrigendum dated 14 July 2017.
Consequently, our responsibility is to express an opinion on the internal financial controls with reference
to financial statements of the Holding Company and its subsidiary companies, as aforesaid, based on
our audit. We conducted our audit in accordance with the Standards on Auditing issued by the ICAI and
prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls
with reference to financial statements, and the Guidance Note issued by the ICAI. Those Standards and
the Guidance Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls with reference to financial
statements were established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls with reference to consolidated financial statements and their operating effectiveness. Our
audit of internal financial controls with reference to consolidated financial statements includes obtaining an
understanding of such internal financial controls, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on the assessed
risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
CONSOLIDATED
material misstatement of the consolidated financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained, and the audit evidence obtained by the other auditors
in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls with reference to financial statements
of the Holding Company and its subsidiary companies as aforesaid.
Meaning of Internal Financial Controls with Reference to Consolidated Financial Statements
6. A company’s internal financial controls with reference to consolidated financial statements is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of consolidated financial statements for external purposes in accordance with generally accepted accounting
Annexure II to the Independent Auditor’s Report of even date to the members of Sobha Limited
on the consolidated financial statements for the year ended 31 March 2023 (continued)
principles. A company's internal financial controls with reference to consolidated financial statements include
those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated
financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorisations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the
Inherent Limitations of Internal Financial Controls with Reference to Financial Statements
7. Because of the inherent limitations of internal financial controls with reference to consolidated financial
statements, including the possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation
of the internal financial controls with reference to consolidated financial statements to future periods are
subject to the risk that the internal financial controls with reference to consolidated financial statements may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate..
Opinion
8. In our opinion and based on the consideration of the reports of the other auditors on internal financial controls
with reference to financial statements of the subsidiary companies, the Holding Company and its subsidiary
companies which are companies covered under the Act, have in all material respects, adequate internal
financial controls with reference to consolidated financial statements and such controls were operating
effectively as at 31 March 2023, based on the internal financial controls with reference to financial statements
criteria established by the Company considering the essential components of internal control stated in the
Guidance Note issued by the ICAI.
Other Matter
9. We did not audit the internal financial controls with reference to financial statements insofar as it relates to
17 subsidiary companies which are covered under the Act, whose financial statements reflect total assets of
₹ 6,819.20 million and net assets of ₹ 3,107.12 million as at 31 March 2023, total revenues of ₹ 696.59 million
and net cash inflows amounting to ₹ 29.98 million for the year ended on that date, as considered in the
consolidated financial statements. The internal financial controls with reference to financial statements in
so far as it relates to such subsidiary companies, have been audited by other auditors whose reports have
been furnished to us by the management and our report on the adequacy and operating effectiveness of the
internal financial controls with reference to financial statements for the Holding Company and its subsidiary
companies, as aforesaid, under Section 143(3)(i) of the Act in so far as it relates to such subsidiary companies
is based solely on the reports of the auditors of such companies. Our opinion is not modified in respect of this
matter with respect to our reliance on the work done by and on the reports of the other auditors.
CONSOLIDATED
Manish Agrawal
Partner
UDIN: 23507000BGYESK9813
Bengaluru
29 May 2023
SOBHA LIMITED
CONSOLIDATED STATEMENT OF BALANCE SHEET AS AT 31 MARCH 2023
Particulars Note As at 31 March 2023 As at 31 March 2022 As at 1 April 2021

Restated(*) Restated(*)
ASSETS
Non-current assets
Property, plant and equipment 4 4,129.98 4,160.93 4,538.79
Investment property 5 4,518.72 3,962.02 3,956.46
Investment property under development 6 67.89 65.03 700.58
Intangible asset under development 7 17.62 - -
Goodwill 8 171.67 171.67 172.90
Other intangible assets 8 2.55 4.69 8.81
Right of use assets 38 103.27 153.18 189.27
Investments accounted for using the equity method 9A 1,149.38 1,148.78 1,142.52
Financial assets
(i) Investments 9B 0.08 0.18 0.18
(ii) Trade receivables 11 795.18 654.56 521.01
(iii) Other financial assets 13 382.60 1,414.05 1,267.32
Income tax assets (net) 33 217.46 116.01 96.75
Deferred tax asset (net) 33 222.38 247.13 278.94
Other non-current assets 14 9,297.99 3,702.29 4,542.69
21,076.77 15,800.52 17,416.22
Current assets
Inventories 10 87,609.75 76,515.79 74,984.00
Financial assets
(i) Trade receivables 11 1,580.16 3,504.53 1,937.18
(ii) Cash and cash equivalents 15 2,793.86 1,390.65 1,637.38
(iii) Bank balance other than (ii) above 16 1,720.18 392.44 404.11
(iv) Loans 12 9.00 11.19 -
(v) Other financial assets 13 4,711.51 4,893.49 5,801.94
Other current assets 14 6,381.20 12,910.63 12,968.92
104,805.66 99,618.72 97,733.53
Total assets 125,882.43 115,419.24 115,149.75
EQUITY AND LIABILITIES

Equity
Equity share capital 17 948.46 948.46 948.46
Other equity 18 23,998.25 23,280.67 21,889.74
Equity attributable to owners of the Holding Company 24,946.71 24,229.13 22,838.20
Non - controlling interest - - -
Total equity 24,946.71 24,229.13 22,838.20
Liabilities
Non-current liabilities
(i) Borrowings 20 6,134.59 3,647.92 3,504.33
Provisions 22 228.85 174.70 151.46
Deferred tax liabilities (net) 33 125.82 116.76 126.48
6,694.03 4,142.17 4,000.47
Current liabilities
(i) Borrowings 20 13,900.90 21,389.35 26,816.34
(iii) Trade payables
(A) Total outstanding dues of micro enterprises and small enterprises;
23 - - -
and
(B) Total outstanding dues of creditors other than micro enterprises and
23 5,986.75 4,469.65 4,986.54
small enterprises
(iv) Other financial liabilities 21 8,970.44 7,578.02 7,579.18
Other current liabilities 24 65,152.80 53,202.73 48,642.43
Provisions 22 202.76 154.55 138.50
Current tax liabilities (net) 33 - 202.94 87.11

94,241.69 87,047.94 88,311.08
Total liabilities 100,935.72 91,190.11 92,311.55
Total equity and liabilities 125,882.43 115,419.24 115,149.75
CONSOLIDATED
The accompanying notes are an integral part of the consolidated financial statements.
Firm registration number: 001076N/N500013 Ravi PNC Menon Jagadish Nangineni
DIN: 02070036 DIN: 01871780
Manish Agrawal
Membership No.: 507000 Chief Financial Officer Company Secretary and Compliance Officer ACS16651
Bengaluru Bengaluru
29 May 2023 29 May 2023
SOBHA LIMITED
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2023
Particulars Note Year ended Year ended

31 March 2023 31 March 2022
Restated(*)
Income
Revenue from operations 25 33,101.14 25,612.60
Other income 26 923.19 839.67
Total income 34,024.33 26,452.27
Expenses
Land purchase cost 10,528.43 2,072.07
Cost of materials consumed 27 3,659.79 1,982.21
Purchase of project materials 9,554.69 5,195.23
Changes in Inventories of raw materials, land stock, work in progress and 28 (11,013.29) (1,533.42)
finished goods
Sub-contractor cost 8,291.69 6,412.58
Employee benefits expense 29 2,944.75 2,511.96
Finance costs 30 2,490.24 3,083.25
Depreciation and amortisation expense 31 678.37 718.27
Other expenses 32 5,439.91 3,643.87
Total expenses 32,574.58 24,086.02
Profit before tax and share of profits/(loss) in associate/joint venture 1,449.75 2,366.25
Share of profit/(loss) in associate/joint venture - -
Tax expenses
Current tax 33 360.46 609.23
Deferred tax charge 33 47.24 25.12
Income tax expense 407.70 634.35
Profit for the year 1,042.05 1,731.90
Other comprehensive income
Item that will not be reclassified to profit or loss
Re-measurement on defined benefit plan 37 (53.36) (12.04)
Income tax relating to above 33 13.43 3.03
Other comprehensive income for the year, net of tax (39.93) (9.01)
Total comprehensive income for the year 1,002.12 1,722.89
Profit attributable to:
Owners 1,042.05 1,731.90
Non-controlling interests - -
Other comprehensive income attributable to:
Owners (39.93) (9.01)
Total comprehensive income attributable to:
Owners 1,002.12 1,722.89
Earnings per equity share [nominal value of ₹ 10 per share]
Basic and diluted (amount in ₹) 34 10.99 18.27
CONSOLIDATED
Membership No.: 507000 Chief Financial Officer Company Secretary and Compliance Officer
ACS16651
Bengaluru Bengaluru
29 May 2023 29 May 2023
SOBHA LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023
Particulars Year ended Year ended 31

31 March 2023 March 2022
Restated(*)
A. Cash flows from operating activities
Adjustments to reconcile profit before tax to net cash flows from operating activities
Depreciation and amortization 678.37 718.27
Gain on sale of property, plant and equipment and Investment property (1.00) (354.00)
Finance costs (including fair value change in financial instruments) 2,490.24 3,083.25
Finance income (including fair value change in financial instruments) (293.32) (286.76)
Reversal of impairement loss on financial assets (50.55)
Allowance for credit loss 372.10 43.03
Liabilities written back (327.96) (6.00)
Operating profit before working capital changes 4,605.35 5,567.58
Working capital adjustments
Changes in trade receivables 1,412.63 (1,748.57)
Changes in inventories (11,093.95) (1,532.45)
Changes in other current and non-current financial assets 1,098.10 1,281.10
Changes in other current and non-current assets 766.56 1,152.14
Changes in trade payables 1,844.86 (517.00)
Changes in provisions 102.36 39.00
Changes in other current financial liabilities 1,512.52 (121.00)
Changes in other current liabilities 11,932.69 4,658.61
Cash generated from operating activities 12,181.12 8,779.41
Income tax paid (net of refund) (679.00) (514.85)
Net cash flows from operating activities (A) 11,502.12 8,264.56
B. Cash flow from investing activities

Purchase of property, plant and equipment, investment property and intangible assets (1,234.05) (200.47)
Proceeds from sale of property, plant and equipment and investment property 68.00 661.49
Investments in fixed deposits (net) (1,326.76) (102.79)
Investment in mutual funds - (6.21)
Interest income 124.39 30.10
Net cash flows (used in)/from investing activities (B) (2,368.43) 382.12
C. Cash flow from financing activities

Repayments from current borrowings (net)
(6,438.83) (9,162.94)
Proceeds from non-current borrowings 2,723.80 4,093.82
Repayment of non-current borrowings (1,404.12) (496.91)
Repayment of principal portion of lease liabilities (52.10) (48.17)
CONSOLIDATED
Repayment of interest portion of lease liabilities (27.26) (30.83)

Interest paid (2,246.65) (2,916.37)
Dividend paid on equity shares (285.32) (332.01)
Net cash flows used in financing activities (C) (7,730.48) (8,893.41)
Net increase/(decrease) in cash and cash equivalents (A+B+C) 1,403.21 (246.73)

Cash and cash equivalents at the beginning of the year 1,390.65 1,637.38
Cash and cash equivalents at the end of the year (Refer Note 15) 2,793.86 1,390.65
Less: Book overdraft from scheduled banks (Refer Note 21) (1,026.00) (290.00)
Net Cash and cash equivalents at the end of the year 1,767.86 1,100.65
SOBHA LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023
Note:
(i) Changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes:
Non-cash changes

Non-convertible debentures 495.09 (495.09) - - - -
Non-cash changes

Non-convertible debentures - 500.00 (4.91) - - 495.09
The above Consolidated Cash Flow Statement has been prepared under the "Indirect Method" as set out in the Ind AS 7, 'Statement
of Cash flow'
Firm registration number: 001076N/N500013
Ravi PNC Menon Jagadish Nangineni
Partner
Chief Financial Officer Company Secretary and Compliance Officer ACS16651
Bengaluru Bengaluru
29 May 2023 29 May 2023
CONSOLIDATED

SOBHA LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2023
a. Equity share capital*

Amount


b. Other equity**
Attributable to owners of the Company

Reserves and Surplus Items of OCI Total
Capital redemp- Securities General Retained Other items
tion reserve premium reserve earnings of OCI
Balance as at 1 April 2021 (as previously reported) 119.47 9,328.92 4,235.65 9,644.35 0.50 23,328.89
Impact of correction of errors (Refer note 45) - - - (1,439.15) - (1,439.15)
Balance as at 1 April 2021 (Restated) 119.47 9,328.92 4,235.65 8,205.20 0.50 21,889.74
Total comprehensive income for the year ended 31
March 2022 (Restated)
Total comprehensive income for the year (Restated) - - - 1,731.90 (9.01) 1,722.89
General reserve - - 112.85 (112.85) - -
Dividend - - - (331.96) - (331.96)
Balance as at 31 March 2022 (as previously reported) 119.47 9,328.92 4,348.50 10,368.37 (8.51) 24,156.75
Impact of correction of errors (Refer note 45) - - - (876.08) - (876.08)
Total comprehensive income for the year - - - 1,042.05 (39.93) 1,002.12
General reserve - - 104.20 (104.20) - -
Dividend - - - (284.54) - (284.54)
Balance As at 31 March 2023 119.47 9,328.92 4,452.70 10,145.59 (48.44) 23,998.25

(*) Refer Note 17
(**) Refer Note 18
CONSOLIDATED

IFirm registration number: 001076N/N500013 Ravi PNC Menon Jagadish Nangineni
Membership No.: 507000 Chief Financial Officer Company Secretary and Compliance Officer ACS16651
Bengaluru Bengaluru
29 May 2023 29 May 2023
SOBHA LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Corporate information
Sobha Limited (the 'Company' or the ‘Holding Company ’) was incorporated on 07 August 1995 under
the provision of erstwhile Companies Act, 1956. The Holding Company along with its subsidiaries,
associate and joint venture (collectively referred to as 'the Group') is engaged in the business of real
estate construction, development, sale, management and operation of all or any part of townships,
housing projects, commercial premises and other related activities. The Company is also engaged in
manufacturing activities related to interiors, glazing and metal works and concrete products which
also provides backward integration to Sobha's turnkey projects.
The Holding Company is a public limited company, incorporated and domiciled in India and has its
registered office at, Sarjapur – Marathahalli Outer Ring Road (ORR), Devarabisanahalli, Bellandur
Post, Bengaluru - 560 103. The Holding Company’s equity shares are listed on two recognized stock
exchanges in India namely National Stock Exchange of India Limited and BSE Limited.
2.1 Basis of preparation

a. Statement of Compliance
The consolidated financial statements of the Group are prepared in accordance with the
Indian Accounting Standards (Ind-AS) specified under section 133 of the Companies Act 2013
read with the Companies (Indian Accounting Standards) Rules 2015 and other accounting
principles generally accepted in India.
The consolidated financial statements for the year ended 31 March 2023 were authorized and
approved for issue by the Board of Directors on 29 May 2023.The revision to consolidated
financial statements is permitted by Board of Directors after obtaining necessary approvals
or at the instance of regulatory authorities as per provisions of Companies Act, 2013.
b. Functional and presentation currency

These consolidated financial statements are presented in Indian Rupee ("₹") which is also the
functional and presentation currency of the Company. All amounts have been rounded-off to
the nearest million (two decimals), unless otherwise indicated.
c. Basis of measurement
These consolidated financial statements have been prepared on going concern basis under
the historical cost basis except for certain financial instruments which are measured at fair
value at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services.
d. Use of estimates
The preparation of consolidated financial statements in conformity with Ind AS requires CONSOLIDATED
the management to make judgments, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities and the disclosure of contingent
liabilities, at the end of the reporting period. The Management believes that, although
these estimates used in preparation of the consolidated financial statements are prudent
and reasonable and are based on the management’s best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or liabilities. The effect
of change in an accounting estimate is recognized prospectively. Significant management
judgement in applying accounting policies and estimation uncertainty have been disclosed
in note 2.5.
SOBHA LIMITED
e. Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date, regardless of
whether that price is directly observable or estimated using another valuation technique.
In estimating the fair value of an asset or a liability, the Group takes into account the
characteristics of the asset or liability if market participants would take those characteristics
into account when pricing the asset or liability at the measurement date. Fair value for
measurement and/or disclosure purposes in these financial statements is determined on such
a basis, except for leasing transactions that are within the scope of Ind AS 116, ‘Leases’, and
measurements that have some similarities to fair value but are not fair value, such as net
realisable value in Ind AS 2, ‘Inventories’, or value in use in Ind AS 36, ‘Impairment of assets’.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs
used in the valuation techniques have been disclosed in note 2.4(p)(xi).
f. Current versus non-current classification

The Group presents assets and liabilities in the balance sheet based on current/ non-current
classification.
The Group classifies an asset as current asset when:
- it expects to realise the asset, or intends to sell or consume it, in its normal operating
cycle;
- it holds the asset primarily for the purpose of trading;
- it expects to realise the asset within twelve months after the reporting period; or
- the asset is cash or a cash equivalent unless the asset is restricted from being exchanged
or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when –

- it expects to realise the asset, or intends to sell or consume it, in its normal operating
cycle;
- it holds the liability primarily for the purpose of trading;
- the liability is due to be settled within twelve months after the reporting period; or
- it does not have an unconditional right to defer settlement of the liability for at least
twelve months after the reporting period. Terms of a liability that could, at the option of
the counterparty, result in its settlement by the issue of equity instruments do not affect
its classification.
All other liabilities are classified as non-current.

CONSOLIDATED
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their
realisation in cash or cash equivalents.
The real estate development projects undertaken by the Group generally run over a period
ranging up to 5 years. Based on the nature of service and the time between the acquisition of
assets for development and their realization in cash and cash equivalents, Operating assets
and liabilities relating to such projects are classified as current based on an operating cycle as
5 years. For all other assets and liabilities the Group has considered twelve months.
SOBHA LIMITED
2.2 Group information

The consolidated financial statements of the Group includes subsidiaries listed in the table below:
Name of investee Principal activities Country of Percentage of ownership/

incorporation voting rights
31 March 2023 31 March 2022
Subsidiaries
Sobha City [‘Partnership firm’] India 100% 100%
Sobha Contracting Pvt Ltd India 100% 100%
Sobha Developers (Pune) Limited India 100% 100%
Sobha Assets Private Limited India 100% 100%
Sobha Highrise Ventures Private Limited India 100% 100%
Sobha Interiors Private Limited India 100% 100%
Sobha Nandambakkam Developers Limited India 100% 100%
Sobha Tambaram Developers Limited India 100% 100%
Sobha Construction Products Private Limited Real estate India 100% 100%
Kilai Builders Private Limited development India 100% 100%
Kuthavakkam Builders Private Limited India 100% 100%
Kuthavakkam Realtors Private Limited India 100% 100%
Vayaloor Properties Private Limited India 100% 100%
Vayaloor Builders Private Limited India 100% 100%
Vayaloor Developers Private Limited India 100% 100%
Vayaloor Real Estate Private Limited India 100% 100%
Vayaloor Realtors Private Limited India 100% 100%
Valasai Vettikadu Realtors Private Limited India 100% 100%
The consolidated financial statements also includes the result of a joint venture, Kondhwa Projects
LLP, which has been accounted for under the equity method of accounting.
The consolidated financial statement also includes the results of associate, C.V.S. Tech Park Private
Limited, which has been accounted for under the equity method of accounting.
2.3 Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company, its
subsidiaries, an associate company and a joint venture. Control is achieved when the Group is CONSOLIDATED
exposed, or has rights, to variable returns from its involvement with the investee and has the ability
to affect those returns through its power over the investee. Specifically, the Group controls an
investee if and only if the Group has:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant
activities of the investee)
• Exposure, or rights, to variable returns from its involvement with the investee and
• The ability to use its power over the investee to affect its returns
Generally, there is a presumption that a majority of voting rights result in control. To support this
presumption and when the Group has less than a majority of the voting or similar rights of an investee,
SOBHA LIMITED
the Group considers all relevant facts and circumstances in assessing whether it has power over an
investee, including:
• The contractual arrangement with the other vote holders of the investee
• Rights arising from other contractual arrangements
• The Group’s voting rights and potential voting rights
• The size of the group’s holding of voting rights relative to the size and dispersion of the holdings
of the other voting rights holders
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the three elements of control. Consolidation of a
subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group
loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated financial statements from the date the
Group gains control until the date the Group ceases to control the subsidiary.
Consolidated financial statements are prepared using uniform accounting policies for like
transactions and other events in similar circumstances. If a member of the group uses accounting
policies other than those adopted in the consolidated financial statements for like transactions
and events in similar circumstances, appropriate adjustments are made to that group member’s
financial statements in preparing the consolidated financial statements to ensure conformity with
the group’s accounting policies.
The financial statements of all entities used for the purpose of consolidation are drawn up to same
reporting date as that of the parent company, i.e., year ended on 31 March 2023.
Consolidation procedure:
(a) Combine like items of assets, liabilities, equity, income, expenses and cash flows of the parent
with those of its subsidiaries. For this purpose, income and expenses of the subsidiary are based
on the amounts of the assets and liabilities recognised in the consolidated financial statements
at the acquisition date.
(b) Offset (eliminate) the carrying amount of the parent’s investment in each subsidiary and the
parent’s portion of equity of each subsidiary. Business combinations policy explains how to
account for any related goodwill.
(c) Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating
to transactions between entities of the Group (profits or losses resulting from intragroup
transactions that are recognised in assets, such as inventory and fixed assets, are eliminated in
full). Intragroup losses may indicate an impairment that requires recognition in the consolidated
financial statements. Ind AS12 Income Taxes applies to temporary differences that arise from the
elimination of profits and losses resulting from intragroup transactions.
CONSOLIDATED
(d Include the results, i.e.profit or loss from the joint venture in the consolidated Statement of profit
and loss.
Investments accounted for using the equity method

An associate is an entity over which the Group has significant influence. Significant influence is the
power to participate in the financial and operating policy decisions of the investee, but is not control
or joint control over those policies.
The considerations made in determining whether significant influence or joint control are similar to
those necessary to determine control over the subsidiaries.
SOBHA LIMITED
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement
have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing
of control of an arrangement, which exists only when decisions about the relevant activities require
unanimous consent of the parties sharing control.The Group’s investments in its joint ventures and
associates are accounted for using the equity method.
Under the equity method, the investment in a joint venture or associate is initially recognised at
cost. The carrying amount of the investment is adjusted to recognise changes in the Group’s share
of net assets of the associate since the acquisition date. Goodwill, if any, relating to the joint venture
or associate is included in the carrying amount of the investment and is not tested for impairment
individually.
The statement of profit and loss reflects the Group’s share of the results of operations of the joint
venture or associate.Any change in OCI of those investees is presented as part of the Group’s OCI.
In addition, when there has been a change recognised directly in the equity of the joint venture
or associate, the Group recognises its share of any changes, when applicable, in the statement of
changes in equity. Unrealised gains and losses resulting from transactions between the Group and the
joint venture or associate are eliminated to the extent of the interest in the joint venture or associate.
If an entity’s share of losses of a joint venture or associate equals or exceeds its interest in the
joint venture or associate (which includes any long term interest that, in substance, form part of the
Group’s net investment in the joint venture or associate), the entity discontinues recognising its share
of further losses. Additional losses are recognised only to the extent that the Group has incurred legal
or constructive obligations or made payments on behalf of the joint venture or associate. If the joint
venture or associate subsequently reports profits, the entity resumes recognising its share of those
profits only after its share of the profits equals the share of losses not recognised.
The aggregate of the Group’s share of profit or loss of a joint venture or associate is shown on the
face of the statement of profit and loss.
The financial statements of joint venture or associate used for the purpose of consolidation are
drawn up to same reporting date as that of the Holding Company, i.e., year ended on March 31st
and are prepared using uniform accounting policies for like transactions and other events in similar
circumstances.
After application of the equity method, the Group determines whether it is necessary to recognise
an impairment loss on its investment in its joint venture or associate. At each reporting date, the
Group determines whether there is objective evidence that the investment in the joint venture or
associate is impaired. If there is such evidence, the Group calculates the amount of impairment as
the difference between the recoverable amount of the joint venture or associate and its carrying
value, and then recognises the loss as ‘Share of profit in joint venture or associate’ in the statement
of profit or loss.
Upon loss of significant influence over the joint venture or associate, the Group measures and CONSOLIDATED
recognises any retained investment at its fair value. Any difference between the carrying amount
of the joint venture or associate upon loss of significant influence and the fair value of the retained
investment and proceeds from disposal is recognised in profit or loss.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. If the Group loses control over a subsidiary, it:
• Derecognises the assets (including goodwill) and liabilities of the subsidiary
• Derecognises the carrying amount of any non-controlling interests
• Derecognises the cumulative translation differences recorded in equity
SOBHA LIMITED
• Recognises the fair value of the consideration received

• Recognises the fair value of any investment retained
• Recognises any surplus or deficit in profit or loss
• Reclassifies the parent’s share of components previously recognised in OCI to profit or loss or
retained earnings, as appropriate, as would be required if the Group had directly disposed of the
related assets or liabilities.
2.4 Significant accounting policies

a) Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition is
measured as the aggregate of the consideration transferred measured at acquisition date fair value
and the amount of any non-controlling interests in the acquiree. For each business combination, the
Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the
proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed
as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at
their acquisition date fair values. For this purpose, the liabilities assumed include contingent liabilities
representing present obligation and they are measured at their acquisition fair values irrespective of
the fact that outflow of resources embodying economic benefits is not probable.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration
transferred and the amount recognised for non-controlling interests, and any previous interest held,
over the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is
measured at cost less any accumulated impairment losses. For the purpose of impairment testing,
goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
Group’s cash-generating units that are expected to benefit from the combination, irrespective of
whether other assets or liabilities of the acquiree are assigned to those units.
Impairment of Goodwill
Goodwill recognized on business combination are tested for impairment at least annually and when
events occur or changes in circumstances indicate that the recoverable amount of the asset or the
cash generating unit to which these pertain is less than the carrying value. The recoverable amount
of the asset or the cash generating units is higher of value-in-use and fair value less cost of disposal.
The calculation of value in use of an asset or a cash generating unit involves use of significant
estimates and assumptions which include turnover, growth rates and net margins used to calculate
projected future cash flows, risk-adjusted discount rate, future economic and market conditions.
CONSOLIDATED
b) Revenue recognition
I. Revenue from contracts with customers
Revenue from contracts with customers is recognised when control of the goods or services
are transferred to the customer at an amount that reflects the consideration to which the
Group expects to be entitled in exchange for those goods or services. Revenue is measured
based on the transaction price, which is the consideration, adjusted for discounts and other
credits, if any, as specified in the contract with the customer. The Group presents revenue
from contracts with customers net of indirect taxes in its statement of profit and loss.
SOBHA LIMITED
The Group considers whether there are other promises in the contract that are separate
performance obligations to which a portion of the transaction price needs to be allocated. In
determining the transaction price, the Group considers the effects of variable consideration,
the existence of significant financing components, non-cash consideration, and consideration
payable to the customer (if any).
The Group has applied five step model as per Ind AS 115 ‘Revenue from contracts with
customers’ to recognise revenue in the consolidated financial statements. The Group satisfies a
performance obligation and recognises revenue over time, if one of the following criteria is met:
a) The customer simultaneously receives and consumes the benefits provided by the
Group’s performance as the Group performs; or
b) The Group’s performance creates or enhances an asset that the customer controls as
the asset is created or enhanced; or
c) The Group’s performance does not create an asset with an alternative use to the
Company and the entity has an enforceable right to payment for performance
completed to date.
For performance obligations where any of the above conditions are not met, revenue is
recognised at the point in time at which the performance obligation is satisfied.
Revenue is recognised either at point of time or over a period of time based on various
conditions as included in the contracts with customers.
The billing schedules agreed with customers include periodic performance-based billing
and / or milestone-based progress billings. Revenues in excess of billing are classified as
unbilled revenue, while billing in excess of revenues is classified as contract liabilities (which
we refer to as deferred revenues).
i) Recognition of revenue from sale of real estate property
Revenue from real estate development of residential unit is recognised at the point
in time, when the control of the asset is transferred to the customer, which generally
coincides with transfer of physical possession of the residential unit to the customer
ie., handover/ deemed handover of the residential units. Deemed handover of the
residential units is considered upon intimation to the customers about receipt of
occupancy certificate and receipt of substantial sale consideration.
Revenue consists of sale of undivided share of land and constructed area to the
customer, which have been identified by the Group as a single performance obligation,
as they are highly interrelated/ interdependent.
Further, for projects executed through joint development arrangements not being jointly
controlled operations, wherein the land owner/ possessor provides land and the Group
undertakes to develop properties on such land and in lieu of land owner providing land,
the Group has agreed to transfer certain percentage of constructed area or certain CONSOLIDATED
percentage of the revenue proceeds, the revenue from the development and transfer
of constructed area/revenue sharing arrangement in exchange of such development
rights/ land is being accounted on gross basis on launch of the project. Revenue is
recognised over time using input method, on the basis of the inputs to the satisfaction
of a performance obligation relative to the total expected inputs to the satisfaction of
that performance obligation.
The revenue is measured at the fair value of the land received, adjusted by the amount
of any cash or cash equivalents transferred. When the fair value of the land received
cannot be measured reliably, the revenue is measured at the fair value of the estimated
SOBHA LIMITED
construction service rendered to the land owner, adjusted by the amount of any cash
or cash equivalents transferred. The fair value so estimated is considered as the cost
of land in the computation of percentage of completion for the purpose of revenue
recognition as discussed above.
For contracts involving sale of real estate unit, the Group receives the consideration
in accordance with the terms of the contract in proportion of the percentage of
completion of such real estate project and represents payments made by customers
to secure performance obligation of the Group under the contract enforceable by
customers. Such consideration is received and utilised for specific real estate projects
in accordance with the requirements of the Real Estate (Regulation and Development)
Act, 2016. Consequently, the Group has concluded that such contracts with customers
do not involve any financing element since the same arises for reasons explained above,
which is other than for provision of finance to/from the customer.
ii) Recognition of revenue from contractual projects
Revenue from contractual project is recognised over time, using an input method
with reference to the stage of completion of the contract activity at the end
of the reporting period, measured based on the proportion of contract costs
incurred for work performed to date relative to the estimated total contract costs.
The Group recognises revenue only when it can reasonably measure its progress in
satisfying the performance obligation. Until such time, the Group recognises revenue to
the extent of cost incurred, provided the Group expects to recover the costs incurred
towards satisfying the performance obligation.
determined.
iii) Recognition of revenue from sale of land and development rights

Revenue from sale of land and development rights is recognised upon transfer of all
significant risks and rewards of ownership of such real estate/property, as per the terms
of the contracts entered into with buyers, which generally coincides with the firming of
the sales contracts/agreements. Revenue from sale of land and development rights is
only recognised when transfer of legal title to the buyer is not a condition precedent for
transfer of significant risks and rewards of ownership to the buyer.
iv) Recognition of revenue from glazing works

Revenue from glazing projects is recognised over time, using an output method with
period, measured based on the proportion of the budgeted cost associated to the units
CONSOLIDATED
produced/installed for work performed to date relative to the total contractual obligation
of production/installation of such units.
The Group recognises revenue only when it can reasonably measure its progress in
satisfying the performance obligation. Until such time, the Group recognises revenue to
the extent of cost incurred, provided the Group expects to recover the costs incurred
towards satisfying the performance obligation.
When it is probable that total contract costs will exceed total contract revenue, the expected
loss is recognised as an expense immediately when such probability is determined.
SOBHA LIMITED
v) Recognition of revenue from interior works and sale of concrete products and scrap
Revenue is recognised when control of the goods are transferred to the customer at
an amount that reflects the consideration to which the Group expects to be entitled in
exchange for those goods. Revenue excludes indirect taxes and is after deduction of
any trade discounts.
vi) Recognition of revenue from maintenance and other services
Revenue in respect of maintenance services and other services is recognised on an

accrual basis, in accordance with the terms of the respective contract as and when the
Group satisfies performance obligations by delivering the services as per contractual
agreed terms.
vii) Other operating income

Interest on delayed receipts, cancellation/forfeiture income, transfer fees, marketing fee
from customers are recognised based upon underlying agreements with customers and
when reasonable certainty of collection is established.
viii) Contract balances

Contract asset is the right to consideration in exchange for goods or services transferred
to the customer. If the Group performs by transferring goods or services to a customer
before the customer pays consideration or before payment is due, a contract asset is
recognised for the earned consideration that is conditional.
Trade receivable represents the Group’s right to an amount of consideration that
is unconditional (i.e., only the passage of time is required before payment of the
consideration is due).
Contract liability is the obligation to transfer goods or services to a customer for which
the Group has received consideration (or an amount of consideration is due) from the
customer. If a customer pays consideration before the Group transfers goods or services
to the customer, a contract liability is recognised when the payment is made or the
payment is due (whichever is earlier). Contract liabilities are recognised as revenue when
the Group performs under the contract.
ix) Cost to obtain a contract

The Group recognises as an asset the incremental costs of obtaining a contract with a
customer if the Group expects to recover those costs. The Group incurs costs such as sales
commission when it enters into a new contract, which are directly related to winning the
contract. The asset recognised is amortised on a systematic basis that is consistent with the
transfer to the customer of the goods or services to which the asset relates.
CONSOLIDATED
II. Rental income from operating leases
Rental income receivable under operating leases (excluding variable rental income) is recognized
in the statement of profit and loss on a straight-line basis over the term of the lease including
lease income on fair value of refundable security deposits. Rental income under operating leases
having variable rental income is recognized as per the terms of the contract.
III. Dividend income

Revenue is recognised when the shareholders’ or unit holders’ right to receive payment is
established, which is generally when shareholder approve the dividend.
SOBHA LIMITED
IV. Interest income

Interest income, including income arising from other financial instruments, is recognised using the
effective interest rate method.
c) Borrowing cost
Borrowing costs consist of interest and other costs that an entity incurs in connection with the
borrowing of funds.
Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a
substantial period of time to get ready for their intended use are capitalised as part of the cost of that
asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.
The Group treats as part of general borrowings any borrowing originally made to develop a qualifying
asset when substantially all of the activities necessary to prepare that asset for its intended use or sale
are complete.
d) Inventories
Inventories are valued at the lower of cost and net realisable value. Cost is determined based on a
weighted average basis. Net realizable value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated costs necessary to make the sale.
I. Related to real estate and contractual activity

Direct expenditure relating to real estate activity is inventorised. Other expenditure (including
borrowing costs) during construction period is inventorised to the extent the expenditure is
directly attributable cost of bringing the asset to its working condition for its intended use.
Other expenditure (including borrowing costs) incurred during the construction period which
is not directly attributable for bringing the asset to its working condition for its intended use is
charged to the statement of profit and loss. Direct and other expenditure is determined based
on specific identification to the real estate activity. Cost incurred/items purchased specifically
for projects are taken as consumed as and when incurred/received.
i) Work-in-progress Represents cost incurred in respect of projects where

(Real estate) the revenue is yet to be recognized and includes cost of
land (including development rights and non-refundable
deposits paid, if any under joint development arrangements
(‘JDA’), internal development costs, external development
charges, construction costs, overheads, borrowing cost
etc. Land/development rights received under JDA is measured
at the fair value of the estimated construction service

rendered to the land owner and the same is accounted on
launch of the project.
CONSOLIDATED
ii) Stock of units/plots in Represents cost incurred in respect of completed real estate
completed real estate project net cost of revenue.
projects
iii) Building materials Cost comprises of purchase price and other costs incurred in
bringing the inventories to their present location and condition.
iv) Land stock Represents land other than area transferred to work-in-
progress at the commencement of construction. Cost
comprises of purchase price under agreement to purchase,
stamp duty, registration charges, brokerage cost and other
incidental expenses.
SOBHA LIMITED
II. Related to glazing, interiors and concrete products activity
i) Raw material, Cost includes cost of purchase and other costs incurred in
components and bringing the inventories to their present location and condition.
stores
ii) Work-in-progress and Cost includes cost of direct materials and labour and a
Finished goods proportion of manufacturing overheads based on normal
operating capacity.
e) Advance paid towards land procurement

Advances paid by the Group to the seller/ intermediary towards outright purchase of land is
recognised as land advance under other assets during the course of obtaining clear and marketable
title, free from all encumbrances and transfer of legal title to the Group, whereupon it is transferred
to land stock under inventories. Management is of the view that these advances are given under
normal trade practices and are neither in the nature of loans nor advance in the nature of loans.
(refer note no.14)
f) Foreign currency transactions and balances
i) Initial recognition
Foreign currency transactions are recorded in the functional currency, by applying the exchange
rate between the functional currency and the foreign currency at the date of the transaction.
ii) Conversion
Foreign currency monetary items are retranslated using the exchange rate prevailing at
the reporting date. Non-monetary items, which are measured in terms of historical cost
denominated in a foreign currency, are reported using the exchange rate at the date of the
transaction. Non-monetary items, which are measured at fair value or other similar valuation
denominated in a foreign currency, are translated using the exchange rate at the date when
such value was determined.
iii) Exchange differences

The Group accounts for exchange differences arising on translation/settlement of foreign
currency monetary items as income or as expense in the period in which they arise.
g) Property, plant and equipment
Property, plant and equipment at their initial recognition are stated at their cost of acquisition.
Cost of an item of property, plant and equipment comprises its purchase price, borrowing costs
CONSOLIDATED
(if capitalization criteria are met), import duties, non-refundable taxes and directly attributable
cost of bringing the asset to its working condition for its intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price. The Group identifies and determines
cost of each component/part of the asset separately, if the component/part have a cost which
is significant to the total cost of the asset and has useful life that is materially different from
that of the remaining asset.
The cost of a self-constructed item of property, plant and equipment comprises the cost of
materials, direct labour, borrowing costs (if capitalization criteria are met) and any other costs
directly attributable to bringing the asset to working condition for its intended use.
SOBHA LIMITED
Advances paid towards the acquisition of property, plant and equipment outstanding at each
balance sheet date is classified as capital advances under other non-current assets.

Items of property, plant and equipment are measured at cost, less accumulated depreciation
and any accumulated impairment losses, if any. When significant parts of plant and equipment
are required to be replaced at intervals, the Group depreciates them separately based on
their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised
in the carrying amount of the plant and equipment as a replacement if the recognition criteria
are satisfied.
associated with the expenditure will flow to the Group and the cost of the item can be
measured reliably. All other expenses on existing property, plant and equipment, including
day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to
the statement of profit and loss for the period during which such expenses are incurred.
iv) Derecognition
An item of Property, plant and equipment and any significant part initially recognized is de-
recognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
income statement when the Property, plant and equipment is de-recognized.
h) Investment property
Investment property is property held either to earn rental income or for capital appreciation or
for both. Upon initial recognition, an investment property is measured at cost, including related
transaction costs. The cost comprises purchase price, cost of replacing parts, borrowing
cost, if capitalization criteria are met and directly attributable cost of bringing the asset to
its working condition for the intended use. Any trade discount and rebates are deducted in
arriving at the purchase price.
The cost of a self-constructed item of Investment property comprises the cost of materials,
direct labour, borrowing costs (if capitalization criteria are met) and any other costs directly
attributable to bringing the asset to working condition for its intended use.

Subsequent to initial recognition, investment property is measured at cost less accumulated
depreciation and accumulated impairment losses, if any. When significant parts of the
CONSOLIDATED
investment property are required to be replaced at intervals, the Group depreciates them
separately based on their specific useful lives.
associated with the expenditure will flow to the Group and the cost of the item can be
measured reliably. All other expenses on existing property, plant and equipment, including
day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to
the statement of profit and loss for the period during which such expenses are incurred.
SOBHA LIMITED
iv) Derecognition
Investment property is derecognised either when control of the same is transferred to the
buyer or when it is permanently withdrawn from use and no future economic benefit is
expected from its disposal. Any gain or loss on disposal of investment property (calculated as
the difference between the net proceeds from disposal and the carrying amount of the item)
is recognised in profit or loss.
v) Reclassification from /to investment property
Transfers to (or from) investment property are made only when there is a change in use.
Transfers between investment property, owner-occupied property and inventories do not
change the carrying amount of the property transferred and they do not change the cost of
that property for measurement or disclosure purposes.
vi) Fair value disclosure
Though the Group measures investment property using cost-based measurement, the fair
value of investment property is disclosed in the notes. Fair values are determined based on an
annual evaluation performed by an accredited external independent valuer.
i) Depreciation on property, plant and equipment and Investment property
Depreciation is calculated on written down value basis using the following useful lives prescribed
under Schedule II of the Act, except where specified.
Particulars Useful lives estimated by the management

(in years)
Property, plant and equipment
Factory buildings 30
Buildings - temporary structure for precast plant 8
Buildings - temporary structure 3
Plant and machinery
ii. Plant and machinery - Civil construction 12
iii. Plant and machinery - Electrical installations 10
iv. Plant and machinery - Precast plant 8
v. Plant and machinery - Others 3-5
CONSOLIDATED
Motor vehicles - Two wheelers 10
Motor vehicles - Four wheelers 8
Computers
i. Computer equipment 3
ii. Servers and network equipment 6
Office equipment 5
SOBHA LIMITED
Particulars Useful lives estimated by the management

(in years)
Investment property
Buildings - One Sobha 46-48
Plant and machinery
ii. Plant and machinery 12
Office equipments 5
The Group, based on technical assessment made by technical expert and management estimate,
depreciates certain items of building and plant and equipment over estimated useful lives which are
different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management
believes that these estimated useful lives are realistic and reflect fair approximation of the period
over which the assets are likely to be used.
Steel scaffolding items are depreciated using straight line method over a period of 6 years, which
is estimated to be the useful life of the asset by the management based on planned usage and
technical advice thereon. These lives are higher than those indicated in Schedule II.
Leasehold land is amortized on a straight-line basis over the balance period of lease
Freehold land is not depreciated and is stated at cost less impairment loss, if any.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.
j) Capital work-in-progress and intangible assets under development

Capital work-in-progress and intangible assets under development represents expenditure incurred
in respect of capital projects/intangible assets under development which are not yet ready for their
intended use and are carried at cost less accumulated impairment loss, if any.
Depreciation/amortisation is not provided on capital work-in-progress and intangible assets under
development until construction/installation are complete and the asset is ready for its intended use.
k) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less accumulated amortization and accumulated
CONSOLIDATED
impairment losses, if any. Intangible assets, comprising of software and intellectual property rights
are amortized on a straight line basis over a period of 3 years, which is estimated to be the useful life
of the asset and assessed for impairment whenever there is an indication that the intangible asset
may be impaired. The amortisation period and the amortisation method for an intangible asset with
a finite useful life are reviewed at least at the end of each reporting period. Gains or losses arising
from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the Statement of Profit or Loss
when the asset is derecognised.
SOBHA LIMITED
l) Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration.
I. Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. The Group recognises lease liabilities to
make lease payments and right-of-use assets representing the right to use the underlying
assets.
i) Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e.
the date the underlying asset is available for use). Right-of-use assets are measured
at cost, less any accumulated depreciation and impairment losses, if any and adjusted
for any remeasurement of lease liabilities. The cost of right-of-use assets includes the
amount of lease liabilities recognised, initial direct costs incurred and lease payments
made at or before the commencement date less any lease incentives received. Right-of-
use assets are depreciated on a straight-line basis over the lease term.
If ownership of the leased asset transfers to the Group at the end of the lease term or
the cost reflects the exercise of a purchase option, depreciation is calculated using the
estimated useful life of the asset.
The right-of-use assets are also subject to impairment. Refer to the accounting policies
in note 2.4(q)(ii) on impairment of non-financial assets.
ii) Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured
at the present value of lease payments to be made over the lease term. The lease
payments include fixed payments (including in-substance fixed payments) less any lease
incentives receivable, variable lease payments that depend on an index or a rate and
amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the
Group and payments of penalties for terminating the lease, if the lease term reflects the
Group exercising the option to terminate. Variable lease payments that do not depend
on an index or a rate are recognised as expenses in the period in which the event or
condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit
in the lease is not readily determinable. After the commencement date, the amount CONSOLIDATED
of lease liabilities is increased to reflect the accretion of interest and reduced for the
lease payments made. In addition, the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term, a change in the lease payments
(e.g. changes to future payments resulting from a change in an index or rate used to
determine such lease payments) or a change in the assessment of an option to purchase
the underlying asset.
SOBHA LIMITED
iii) Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases
(i.e. those leases that have a lease term of 12 months or less from the commencement
date and do not contain a purchase option). It also applies the lease of low-value assets
recognition exemption to leases of assets that are considered to be low value. Lease
payments on shortterm leases and leases of low value assets are recognised as expense
on a straight-line basis over the lease term.
II. Group as a lessor
Leases in which the Group does not transfer substantially all the risks and rewards incidental to
ownership of the asset are classified as operating leases. Assets subject to operating leases
are included under Investment property.
Lease income from operating lease is recognized on a straight-line basis over the term
of the relevant lease including lease income on fair value of refundable security deposits,
unless the lease agreement explicitly states that increase is on account of inflation. Costs,
including depreciation, are recognized as an expense in the statement of profit and loss.
Initial direct costs incurred in negotiating and arranging an operating lease are added to
the carrying amount of the leased asset and recognised over the lease term on the same
basis as rental income.
m) Retirement and other employee benefits
i) Employee Provident Fund and Employee State Insurance
Retirement benefits in the form of state governed Employee Provident Fund and Employee
State Insurance are defined contribution schemes (collectively the ‘Schemes’). The Group has
no obligation, other than the contribution payable to the Schemes. The Group recognizes
contribution payable to the Schemes as expenditure, when an employee renders the related
service. The contribution paid in excess of amount due is recognized as an asset and the
contribution due in excess of amount paid is recognized as a liability.
ii) Gratuity
Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability
recognised in the balance sheet in respect of gratuity is the present value of the defined benefit/
obligation at the balance sheet date, together with adjustments for unrecognised actuarial gains or
losses and past service costs. The defined benefit/ obligation is calculated at or near the balance
sheet date by an independent actuary using the projected unit credit method. This is based on
standard rates of inflation, salary growth rate and mortality. Discount factors are determined
close to each year-end by reference to market yields on government bonds that have terms to
CONSOLIDATED
maturity approximating the terms of the related liability. Service cost and net interest expense on
the Group’s defined benefit plan is included in statement of profit and loss. Actuarial gains/ losses
resulting from re-measurements of the liability are included in other comprehensive income in the
period in which they occur and are not reclassified to profit or loss in subsequent periods.
The Group makes contributions to Sobha Developers Employees Gratuity Trust (‘the Trust’) to
discharge the gratuity liability to employees. Provision towards gratuity, a defined benefit plan,
is made for the difference between actuarial valuation by an independent actuary and the fund
balance, as at the year-end.
SOBHA LIMITED
iii) Compensated absences

Accumulated leave, which is expected to be utilized within the next twelve months, is treated
as short-term employee benefit. The Group measures the expected cost of such absences
as the additional amount that it expects to pay as a result of the unused entitlement that has
accumulated at the reporting date. The Group presents the entire leave as a current liability in
the balance sheet, since it does not have an unconditional right to defer its settlement for 12
months after the reporting date.
iv) Other short-term benefits

Short-term employee benefits comprising employee costs including performance bonus is
recognized in the statement of profit and loss on the basis of the amount paid or payable for
the period during which services are rendered by the employee.
n) Provisions, contingent assets and contingent liabilities

i) Provisions
Provisions are recognized only when there is a present obligation (legal or constructive), as
a result of past events and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and when a reliable estimate of the amount
of obligation can be made at the reporting date. Provisions are discounted to their present
values, where the time value of money is material, using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
When the Group expects some or all of a provision to be reimbursed, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually certain. The expense
relating to a provision is presented in the statement of profit and loss net of any reimbursement.
ii) Onerous contracts
If the Group has a contract that is onerous, the present obligation under the contract is recognised
and measured as a provision. However, before a separate provision for an onerous contract is
established, the Group recognises any impairment loss that has occurred on assets dedicated
to that contract.
An onerous contract is a contract under which the unavoidable costs (i.e. the costs that the
Group cannot avoid because it has the contract) of meeting the obligations under the contract
exceed the economic benefits expected to be received under it. The unavoidable costs under a
contract reflect the least net cost of exiting from the contract, which is the lower of the cost of
fulfilling it and any compensation or penalties arising from failure to fulfil it. These estimates are
reviewed at each reporting date and adjusted to reflect the current best estimates.
iii) Contingent liabilities
A contingent liability is a possible obligation that arises from past events and whose existence CONSOLIDATED
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Group or a present obligation that is not recognized
because it is not probable that an outflow of resources will be required to settle the obligation.
A contingent liability also arises in extremely rare cases where there is a liability that cannot. be
recognized because it cannot be measured reliably. The Group does not recognize a contingent
liability but discloses it in the financial statements, unless the possibility of an outflow of resources
embodying economic benefits is remote.
SOBHA LIMITED
iv) Contingent assets

Contingent assets are neither recognised nor disclosed except when realisation of income is
virtually certain, related asset is disclosed.
o) Income taxes
Income tax expense comprises current tax expense and the net change in the deferred tax asset or
liability during the year. Current and deferred tax are recognized in the statement of profit and loss,
except when they relate to items that are recognized in other comprehensive income or directly in
equity, in which case, the current and deferred tax are also recognized in other comprehensive income
or directly in equity, respectively.
i) Current income tax

Current income tax for the current and prior periods are measured at the amount expected
to be recovered from or paid to the taxation authorities based on the taxable income for that
period. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the balance sheet date.
ii) Deferred income tax

Deferred income tax is recognized on temporary differences at the balance sheet date between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes,
except when the deferred income tax arises from the initial recognition of goodwill or an asset
or liability in a transaction that is not a business combination and affects neither accounting nor
taxable profit or loss at the time of the transaction.
Deferred income tax assets are recognized for all deductible temporary differences, carry
forward of unused tax credits and unused tax losses, to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available
to allow all or part of the deferred income tax asset to be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to
apply in the period when the asset is realized or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at the balance sheet date.
The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set
off current tax assets and current tax liabilities and the deferred tax assets and deferred tax
liabilities relate to income taxes levied by the same tax authority.
Deferred tax relating to items recognized outside profit or loss is recognized outside profit or
loss (either in other comprehensive income or in equity). Deferred tax items are recognized in
CONSOLIDATED
correlation to the underlying transaction either in OCI or directly in equity.
p) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
i) Initial recognition and measurement of financial assets and liabilities

Financial assets and liabilities are recognized when the Group becomes a party to the contractual
provisions of the instrument. Financial assets and liabilities are initially measured at fair value, trade
receivable/trade payable that do not contain a significant financing component are measured
at transaction value and investment in subsidaries are measured at costing accordance with
SOBHA LIMITED
Ind AS 27 - separete finacial statement. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value
measured on initial recognition of financial asset or financial liability.
ii) Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost if these financial assets are held
within a business whose objective is to hold these assets in order to collect contractual cash
flows and the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
iii) Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial
assets are held within a business whose objective is achieved by both collecting contractual
cash flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
iv) Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at
amortized cost or at fair value through other comprehensive income on initial recognition. The
transaction costs directly attributable to the acquisition of financial assets and liabilities at fair
value through profit or loss are immediately recognized in statement of profit and loss.
v) Debt instruments at amortized cost

A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost
using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account
any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
The EIR amortization is included in finance income in the profit or loss. The losses arising from
impairment are recognized in the profit or loss. This category generally applies to trade and
other receivables.
vi) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or CONSOLIDATED
loss. Financial liabilities are classified as held for trading if they are incurred for the purpose
of repurchasing in the near term. This category also includes derivative financial instruments
entered into by the Group that are not designated as hedging instruments. Gains or losses on
liabilities held for trading are recognized in the profit or loss.
vii) Financial liabilities at amortized cost

Financial liabilities are subsequently carried at amortized cost using the effective interest (‘EIR’)
method.
SOBHA LIMITED
Interest-bearing loans and borrowings are subsequently measured at amortized cost using EIR
method. For trade and other payables maturing within one year from the balance sheet date,
the carrying amounts approximate fair value due to the short maturity of these instruments.
viii) De-recognition of financial instruments

The Group derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition
under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized when the
obligation specified in the contract is discharged or cancelled or expires.
ix) Reclassification of financial assets

The Group determines classification of financial assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for financial instruments.
x) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously..
xi) Fair value of financial instruments

In determining the fair value of its financial instruments, the Group uses following hierarchy and
assumptions that are based on market conditions and risks existing at each reporting date.
Fair value hierarchy:
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial
statements are categorized within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value measurement as a whole:
● Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or
liabilities
value measurement is directly or indirectly observable
value measurement is unobservable
For assets and liabilities that are recognized in the consolidated financial statements on a
recurring basis, the Group determines whether transfers have occurred between levels in the
hierarchy by re-assessing categorization (based on the lowest level input that is significant to
the fair value measurement as a whole) at the end of each reporting period.
q) Impairment
i) Financial assets
CONSOLIDATED
The Group assesses at each date of balance sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through
a loss allowance. The Group recognizes lifetime expected losses for all contract assets and /
or all trade receivables that do not constitute a financing transaction. For all other financial
assets, expected credit losses are measured at an amount equal to the 12-month expected
credit losses or at an amount equal to the life time expected credit losses if the credit risk on the
financial asset has increased significantly since initial recognition.
SOBHA LIMITED
ii) Non-financial assets

The Group assesses at each reporting date whether there is an indication that an asset may
be impaired. If any indication exists, or when annual impairment testing for an asset is required,
the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the
higher of an asset’s or cash-generating unit’s (CGU) net selling price and its value in use.
The recoverable amount is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or groups
of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written down to its recoverable amount. In assessing
value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining net selling price, recent market
transactions are taken into account, if available. If no such transactions can be identified, an
appropriate valuation model is used.
Impairment losses are recognized in the statement of profit and loss. After impairment, depreciation
is provided on the revised carrying amount of the asset over its remaining useful life.
iii) Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-
generating unit) is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognized immediately in the statement of profit and loss, unless
the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss
is treated as a revaluation increase .
r) Segment reporting
i) Identification of segments
In accordance with Ind AS 108 – Operating Segment, the operating segments used to present
segment information are identified on the basis of information reviewed by the Group’s
management to allocate resources to the segments and assess their performance. An operating
segment is a component of the Group that engages in business activities from which it earns
revenues and incurs expenses, including revenues and expenses that relate to transactions
with any of the Group’s other components. Results of the operating segments are reviewed
regularly by the Managing Director who has been identified as the chief operating decision
maker (CODM), to make decisions about resources to be allocated to the segment and assess
its performance.
ii) Inter-segment transfers
The Group generally accounts for intersegment sales and transfers at appropriate margins.
CONSOLIDATED
iii) Unallocated items
Unallocated items include general corporate asset, liability, income and expense items which are
not allocated to any business segment.
iv) Segment accounting policies

The Group prepares its segment information in conformity with the accounting policies adopted
for preparing and presenting the consolidated financial statements of the Group as a whole.
SOBHA LIMITED
s) Cash dividend to equity holders of the Group or Holding Company

The Group recognizes a liability to make cash distributions to equity holders of the Group when the
distribution is authorized and the distribution is no longer at the discretion of the Group. Final dividends
on shares are recorded as a liability on the date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the Group’s Board of Directors.
t) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable
to equity shareholders by the weighted average number of equity shares outstanding during the
period. Partly paid equity shares are treated as a fraction of an equity share to the extent that
they are entitled to participate in dividends relative to a fully paid equity share during the reporting
period. The weighted average number of equity shares outstanding during the period is adjusted for
events such as bonus issue that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during
the period are adjusted for the effects of all dilutive potential equity shares, if any.
u) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, that are readily convertible to a known
amount of cash and subject to an insignificant risk of changes in value.
v) Restatement
The Group restates its financial statements and presents a third balance sheet as at the beginning
of the preceding period if it applies an accounting policy retrospectively, makes a retrospective
restatement of items in its financial statements or reclassifies items in its financial statements that
has a material effect on the information in the balance sheet at the beginning of the preceding
period.
The Group corrects material prior period errors retrospectively in the first set of financial statements
approved for issue after their discovery by (a) restating the comparative amounts for the prior
periods presented in which the error occurred; or (b) if the error occurred before the earliest prior
period presented, restating the opening balances of assets, liabilities and equity for the earliest prior
period presented.
2.5 Significant accounting judgements, estimates and assumptions

Significant accounting judgements, estimates and assumptions used by management are as below
CONSOLIDATED
Determination of performance obligations and timing of revenue recognition on revenue from real
estate development [Refer note 2.4(b)(I)(i)]
Existence of a significant financing component in contract with customers [Refer note 2.4(b)(I)(i)]
Accounting for revenue and land cost for projects executed through joint development arrangement
[Refer note 2.4(b)(I)(i)]
Computation of percentage completion for projects in progress, project cost, revenue and saleable
area estimates [Refer note 2.4(b)(I)(i),(ii),(iv)]
Estimation of net realizable value for inventory [Refer note 2.4(d)], land advance and refundable
deposits paid under JDA
SOBHA LIMITED
Provision for litigations and contingencies [Refer note 2.4(n)]

Useful life and residual value of property, plant and equipment, investment property and intangible
assets [Refer note 2.4(i)]
Evaluation of indicators and impairment of financial and non-financial assets [Refer note 2.4(q)]
Classification of property as investment property or inventory [Refer note 2.4(g) & (d)]
Fair value measurement disclosures [Refer note 2.4(p)]
Provision for tax [Refer note 2.4(o)]
3 Recent accounting pronouncements

The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On
March 31 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules,
2023, as below:
Ind AS 1, Presentation of Financial Statements – This amendment requires the entities to disclose
their material accounting policies rather than their significant accounting policies. The effective date
for adoption of this amendment is annual periods beginning on or after 01 April 2023.
Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors – This amendment has
introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities
distinguish changes in accounting policies from changes in accounting estimates. The effective date
for adoption of this amendment is annual periods beginning on or after 01 April 2023.
Ind AS 12, Income Taxes – This amendment has narrowed the scope of the initial recognition
exemption so that it does not apply to transactions that give rise to equal and offsetting temporary
differences. The effective date for adoption of this amendment is annual periods beginning on or
after 01 April 2023.
The amendments are extensive and the Group will evaluate the same to give effect to them as
required by law.
New and amended standards adopted by the Group
The Ministry of Corporate Affairs had vide notification dated 23 March 2022 notified Companies (Indian
Accounting Standards) Amendment Rules, 2022 which amended certain accounting standards, and
are effective 1 April 2022. These amendments did not have any impact on the amounts recognised
in current period and are not expected to significantly affect the future periods.
CONSOLIDATED

CONSOLIDATED
292
SOBHA LIMITED
4 Property, plant and equipment
Freehold Factory Other Plant and Scaffolding Furniture Vehicles Computers Office Total
land buildings buildings machinery items and fixtures equipment
Cost
As at 1 April 2021 (Restated) 1,841.23 720.78 1,085.02 1,920.40 1,891.19 51.60 12.71 166.40 36.42 7,725.75
Disposal during the year (14.82) (12.24) - (11.84) (29.10) - (0.11) (1.61) (0.04) (69.76)
As at 31 March 2022 (Restated) 1,826.41 708.54 1,085.03 1,962.83 1,980.75 54.76 12.63 199.21 40.75 7,870.91
As at 31 March 2023 1,826.41 708.54 1,128.85 1,999.64 2,351.80 58.91 16.25 231.75 46.85 8,369.00
Accumulated depreciation and impairement loss

As at 1 April 2021 (Restated) - 409.95 349.22 1,106.56 1,126.30 34.12 7.96 128.13 24.72 3,186.96
Disposal during the year - (7.49) - (9.86) (4.39) - (0.07) (1.54) (0.04) (23.39)
As at 31 March 2022 (Restated) - 475.44 389.17 1,306.66 1,309.60 37.72 8.73 153.23 29.43 3,709.98
Impairement loss 2.85 - 55.62 0.24 - - - - - 58.71
As at 31 March 2023 2.85 547.26 491.64 1,427.34 1,501.70 42.01 9.76 182.21 34.25 4,239.02
Net carrying value

As at 31 March 2023 1,823.56 161.28 637.21 572.30 850.10 16.90 6.49 49.54 12.60 4,129.98
As at 31 March 2022 (Restated) 1,826.41 233.10 695.86 656.17 671.15 17.04 3.90 45.98 11.32 4,160.93
Note:
a) Contractual obligations
The contractual commitments pending for the acquisition of property, plant and equipment as at 31 March 2023 is ₹250.03 (31 March 2022: ₹146.80).
b) Property, plant and equipment pledged as security
Refer Note.43 for details of Property, plant and equipment pledged as security for borrowings.
c) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), are held in the name of
the Group.
d) The Group has not revalued its property, plant and equipment during the current or previous year.
e) The comparative information is restated on account of correction of errors. Refer Note 45
SOBHA LIMITED
5 Investment property
Other assets forming part of

Building
Freehold Right to Other
Particulars Plant and Furniture Office Total
land Use - Land buildings
machinery and Equipment
fixtures
Cost
As at 1 April 2021 (Restated) 132.47 142.84 3,646.37 307.94 36.81 0.17 4,266.60
Additions during the year - - 114.23 - - - 114.23
As at 31 March 2022 (Restated) 132.47 142.84 3,760.60 307.94 36.81 0.17 4,380.83
Additions during the year - - 671.30 1.66 0.22 3.52 676.70
As at 31 March 2023 132.47 142.84 4,431.90 309.60 37.03 3.69 5,057.53
Accumulated depreciation and amortisation

As at 1 April 2021 (Restated) - - 204.47 91.72 13.79 0.16 310.14
Charge for the year - 3.01 69.69 32.53 3.44 - 108.67
Disposals during the year - - - - - - -
As at 31 March 2022 (Restated) - 3.01 274.16 124.25 17.23 0.16 418.81
Charge for the year - 3.01 84.58 28.32 3.56 0.53 120.00
Disposals during the year - - - - - - -
As at 31 March 2023 - 6.02 358.74 152.57 20.79 0.69 538.81
Carrying amount
As at 31 March 2023 132.47 136.82 4,073.16 157.03 16.24 3.00 4,518.72
As at 31 March 2022 (Restated) 132.47 139.83 3,486.44 183.69 19.58 0.01 3,962.02
a. One investment property is constructed/ developed on a leasehold land where the company is the lessee and the lease
agreement is duly executed in favour of the lessee. As the Right-of-use assets meet the definition of investment property, and
hence presented within ‘investment property.
b. Investment property comprises of commercial properties and club houses that involve lease arrangements. Each of the leases
contains an initial non-cancellable period of 2-3 years. The Group has no restrictions on the realisability of its investment property.
c. Fair value of investment property
The fair value of Investment property is ₹9,054.10 (31 March 2022: ₹7,546). The valuations is based on valuation performed by
an accredited independent valuer and is a registered valuer as defined under Rule 2 of Companies (Registered Valuers and
Valuation) Rules, 2017. The fair value of the Group's investment properties have been arrived at using discounted cash flow
method, direct comparison approach, and depreciated replacement cost method. Under discounted cash flow method, cash
flow projections based on reliable estimates of cash flow are discounted. The main inputs used are rental growth rate, expected
vacancy rates, discount rates, and transacted values of similar properties which are based on comparable transactions and
industry data. The fair value measurement of the investment property has been categorised as a Level 3 fair value (discounted
cash flow method) and level 2 fair value (direct comparison and depreciated replacement cost method) based on the inputs to
the valuation technique used (Refer Note 40b)
d. Investment property pledged as security CONSOLIDATED
Refer Note.43 for details of investment property pledged as security for borrowings.
e. Amounts recognised in profit or loss
Rental income derived from investment properties (Refer note 25B) 478.24 395.82
Direct operating expenses (including repairs and maintenance) generating rental income (193.14) (155.10)
Direct operating expenses (including repairs and maintenance) that did not generate rental income - -
Profit arising from investment properties before depreciation and indirect expenses 285.10 240.72
Less:- Depreciation (120.00) (108.67)
Profit arising from investment properties before indirect expenses 165.10 132.05
f. The comparative information is restated on account of correction of errors. Refer Note 45
SOBHA LIMITED
6 Investment property under development
Amount
As at 1 April 2021 700.58
Disposals during the year (637.27)
Capitalised during the year (63.31)
As at 31 March 2022 65.03
Disposals during the year -
Capitalised during the year -
As at 31 March 2023 67.89
As at 31 March 2022
Amount of Investment property under construction for the period of
Less than 1 year 1-2 Years 2-3 Years More than 3 years Total
Projects in progress 6.75 2.27 56.01 - 65.03
Total 6.75 2.27 56.01 - 65.03
As at 31 March 2023
Amount of Investment property under construction for the period of
Projects in progress 2.86 6.75 2.27 56.01 67.89
Total 2.86 6.75 2.27 56.01 67.89
Note: During the year ended 31 March 2022, the Company has relinquished its right over partial constructed property in favour
of a third party for a upfront consideration as mutually agreed upon and the resultant gain amounting to ₹31.74 is disclosed under
‘Other income’ as ‘Profit on sale of investment property’
The Management is of the view that the fair value of investment properties under development cannot be reliably measured
and hence fair value disclosures pertaining to investment properties under development have not been provided.
7 Intangible asset under development

Amount
Charged to cost of sale -
At 31 March 2022 -

Charged to cost of sale -
As at 31 March 2023 17.62
CONSOLIDATED
Contractual obligations
The contractual commitments pending for the acquisition of intangible asset under development as at 31 March 2023 is
₹13.93 (31 March 2022: ₹ Nil)
Ageing of intangible assets under development as at 31 March 2023

Amount in intangible assets under development for a period of
Particulars
Projects in progress * 17.62 - - - 17.62
Total 17.62 - - - 17.62
(*) There are no projects in progress under 'Intangible assets under development' whose completion is overdue or has exceeded
its cost compared to its original plan.
SOBHA LIMITED
8 Intangible assets
Goodwill Software Intellectual Total

property rights
Cost
As at 1 April 2021 172.90 27.75 0.05 200.70
Deletions during the year (1.23) (1.29) - (2.52)
As at 31 March 2022 171.67 26.72 0.05 198.44
Additions during the year - - - -
Deletions during the year - - - -
As at 31 March 2023 171.67 26.72 0.05 198.44
Amortization and impairment

As at 1 April 2021 - 18.94 0.05 18.99
Charge for the year - 3.09 - 3.09
As at 31 March 2022 - 22.03 0.05 22.08
Charge for the year - 2.14 - 2.14
As at 31 March 2023 - 24.17 0.05 24.22
Carrying amount
As at 31 March 2023 171.67 2.55 - 174.22
As at 31 March 2022 171.67 4.69 - 176.36
Note:
The Group has not revalued its intangible assets during the current or previous year.
Allocation of goodwill to Cash Generating Units

31 March 2023 31 March 2022
Sobha City 123.85 123.85
Kuthavakkam Builders Private Limited 47.82 47.82
171.67 171.67
For impairment testing, goodwill is allocated to a CGU representing the lowest level within the Group at which goodwill is
monitored for internal management purposes. Goodwill is tested for impairment at least annually in accordance with the
Group’s procedure for determining the recoverable value of each CGU. The recoverable amount of the CGU is determined
on the basis of Higher of value in use or Fair Value Less Cost of Disposal (FVLCD). The recoverable amount of the CGU is
determined based on the discounted cash flow approach, using the discount rate and terminal income growth rate from
unobservable market data by the Management for the year ended March 31, 2023. The discount rate applied to the cash flow
projections is 17% and cash flows beyond the five-year period were extrapolated using a growth rate of 8.00%, which was the CONSOLIDATED
same as the long term average growth rate of the real estate industry in the India. The fair value measurement is categorised
as a level 3 fair value based on the inputs in the valuation techniques used. Goodwill acquired through business combinations
have been allocated to the reporting units for impairment testing. As at March 31, 2023, the estimated recoverable amount of
the CGU exceeded its carrying amount. Reasonable sensitivities in key assumptions is unlikely to cause the carrying amount
to exceed the recoverable amount of the cash generating units.
SOBHA LIMITED
9A Investments accounted for using the equity method

As at As at
Particulars
31 March 2023 31 March 2022
Investment in associates (refer note a below) 0.05 0.05
Investments in joint ventures (refer note b below) 1,149.33 1,148.73
1,149.38 1,148.78
% of voting rights Amount

Particulars Principal Place of 31 March 31 March As at As at
activities registration 2023 2022 31 March 2023 31 March 2022
a. Investment in associate
Investment in equity instruments
(Unquoted)
(i) C.V.S.Tech Park Private Limited Real estate India 49% 49% 0.05 0.05
b. Investments in joint venture

In Limited Liability
Partnership (LLP) firm
50% (31 March 2023 - 50%) share in
the profits of LLP
Kondhwa Projects LLP Real estate India 50% 50%
1,149.33 1,148.73
The principle place of business of all the investments of the Company is India
A. Investment in Joint venture (Kondhwa Projects LLP)
As at As at
Particulars
31 March 2023 31 March 2022
Share of the joint venture's statement of financial position :
Non current assets 2,292.06 2,290.66
current assets
Cash and Cash Equivalents 0.02 1.23
Other Current Assets 6.73 6.81

2,298.81 2,298.70
Non current liabilities - -
CONSOLIDATED
Current liabilities 0.16 1.23

Equity 2,298.65 2,297.47
Proportion of group ownership (50%) 1,149.33 1,148.73
Revenue - -
Profit or loss from continuing operations. - -
post-tax profit or loss from discontinued operations. - -
Other comprehensive income - -
Total comprehensive income - -
Group's carrying amount of the investment(50%) 1,149.33 1,148.73
SOBHA LIMITED
B. Investment accounted for using equity method - other investment which are not material (Investment in
associate - C.V.S.Tech Park Private Limited)
As at As at
Particulars
31 March 2023 31 March 2022
i) Profit or loss from continuing operations - -
ii) Total comprehensive income - -
9B Investment
As at As at
Particulars
31 March 2023 31 March 2022
Investments in Government or trust securities 0.08 0.18
Investments at amortized cost
Investment in Government or trust securities (unquoted)
National savings certificates 0.08 0.08
Investments in mutual funds - 0.10
Total investments carried at amortised cost 0.08 0.18
10 Inventories
(Valued at cost or net realisable value, which ever is lower)
Particulars As at 31 March 2023 As at 31 March 2022
Restated
Raw materials, components and stores 717.54 636.87

Land stock (*) 7,225.32 4,319.20
Work-in-progress
- Real estate projects (*) 63,484.04 59,078.88
- Others 491.94 955.86
Stock of units in completed real estate projects (*) 14,198.74 11,325.03
87,609.75 76,515.79
(*) Refer note 43 for details of inventories pledged as security for borrowings.
Note: The write-down (net) of inventories to net realisable value for the year ended 31 March 2023 is ₹124 (31
March 2022: ₹Nil). This was recorded as an expense during the respective years and included in ‘changes in
CONSOLIDATED
inventories’ in consolidated statement of profit and loss.

SOBHA LIMITED
11 Trade receivables
Non-current Current
Restated Restated
Trade receivables
Trade receivables considered good - unsecured 795.18 654.56 2,247.16 3,822.52
Trade receivables - credit impaired - - 29.12 29.12
795.18 654.56 2,276.28 3,851.64
Less: Impairment allowance (allowance for credit loss)
Trade receivables considered good - unsecured - - (667.00) (317.99)
Trade receivables - credit impaired - - (29.12) (29.12)
Net trade receivables 795.18 654.56 1,580.16 3,504.53
Note:
a Trade receivables due by firms or private companies - - 212.01 211.57
in which the director of the Company is a partner or a
director or a member
b Trade receivables from related parties - - 10.06 45.49
c Refer Note 43 for details of Trade receivables pledged

as security for borrowings.
d Trade receivable ageing schedule

As at 31 March 2023
Outstanding for following periods from due date of
payment
Not Due Less than 6 6 months- 1-2 2-3 More than Total
months 1 year years years 3 years
Undisputed Trade receivables-considered good 1,006.41 859.74 295.18 242.97 91.42 546.62 3,042.34
Undisputed Trade receivables - which have - - - - - - -
Disputed Trade receivables-considered good - - - - - - -
Disputed Trade receivables - which have significant - - - - - - -
increase in credit risk
Total 1,006.41 859.74 295.18 242.97 91.42 575.74 3,071.46
As at 31 March 2022 (Restated)

Outstanding for following periods from due date of

payment
Not Due Less than 6 6 months- 1-2 2-3 More than Total
CONSOLIDATED
months 1 year years years 3 years

Undisputed Trade receivables-considered good 817.14 908.48 1,883.08 273.90 295.71 298.77 4,477.08
Undisputed Trade receivables - which have - - - -
Undisputed Trade receivables-credit impaired - - - - 29.12 29.12
Disputed Trade receivables - which have significant - - - - - -
increase in credit risk
Disputed Trade receivables-credit impaired - - - - - -
Total 817.14 908.48 1,883.08 273.90 295.71 327.89 4,506.20
e Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days
SOBHA LIMITED
12 Loans
Non-current Current
2023 2022 2023 2022
Restated
Loans to related parties (refer note 35)
Loans Receivables considered good – - - 9.00 11.19

unsecured
Loans Receivables – credit impaired - - - -
- - 9.00 11.19
Less: Allowances for credit loss
Loans Receivables – credit impaired - - - -
Net loans - - 9.00 11.19
There are no loans due from directors or other officers either severally or jointly with any other person.
13 Other financial assets
Non- Current Current
Restated Restated
Refundable deposits towards joint development 180.00 1,190.56 3,211.06 2,772.61
agreement
Security deposits 51.56 48.21 135.61 142.18
External/Internal development charges - - 1,284.84 1,893.82
Other advances - - 80.00 84.88
Fixed deposits with marturity for more than 12
months
- Pledged/ under lien/ earmarked/ margin money 151.04 175.28 - -
Unsecured, credit impaired CONSOLIDATED

Refundable deposits towards joint development - - - 50.55
agreement
Allowances for credit loss - - - (50.55)
382.60 1,414.05 4,711.51 4,893.49
Note: Refer Note 43 for details of deposits pledged as security for borrowings
SOBHA LIMITED
14 Other assets
Non-current Current
Restated Restated
Land advances * 9,021.93 3,376.18 683.59 7,190.87
Advances recoverable in kind 0.24 2.74 1,015.21 466.67
Prepaid expenses - - 1,017.99 717.48
Balances with statutory/ government authorities - - 1,127.67 1,173.93
Unbilled revernue ^ - - 1,764.53 3,361.68
Other receivables 275.82 323.37 772.21 -
Unsecured, considered doubtful

Land advances 168.16 15.00 - -
Less: Provision for doubtful advances (168.16) (15.00) - -
9,297.99 3,702.29 6,381.20 12,910.63
(*) Advances for land though unsecured, are considered good as the advances have been given based on arrangements/
memorandum of understanding executed by the Company and the Company/ seller/ intermediary is in the course of obtaining
clear and marketable title, free from all encumbrances, including for certain properties under litigation.
(^) Classified as non-financial asset as the contractual right to consideration is dependent on completion of contractual
milestones.
Note
Non-current Current
Restated Restated
a. Advances recoverable in kind from firms or private - - 10.02 -
companies in which the director of the Company is
a partner or a director or a member

b. Includes from related parties
CONSOLIDATED
Land advances (refer note 35) 8,212.92 2,914.29 - 5,547.84

Advances recoverable in kind (refer note 35) - - 215.25 -

SOBHA LIMITED
15 Cash and cash equivalents
Balances with banks in current accounts 2,659.65 1,299.31

Cash on hand 9.16 16.36
Cheques/ drafts on hand 125.05 74.98
2,793.86 1,390.65
Note
a. Includes amount held in escrow account for projects under 1,758.76 553.97
Real Estate Regulation and Development Act, 2016, to be
utilised for project specific purposes.
16 Bank balance other than cash and cash equivalents
As at As at
31 March 2023 31 March 2022
Earmarked bank balances

– On unclaimed dividend account 2.00 2.32
Fixed deposits with banks with maturity less than 12 months (*)
- Pledged/ under lien/ earmarked/ margin money 1,718.18 390.12
1,720.18 392.44
(*) Refer Note 43 for details of deposits pledged as security for borrowings.
17 Equity share capital
31 March 2023 31 March 2022

No. of shares Amount No. of shares Amount
Authorised shares (*)

Equity shares of ₹10 each (in ₹) 150,000,000 1,500.00 150,000,000 1,500.00
Issued, subscribed and fully paid-up shares
Equity shares of ₹10 each (in ₹) fully paid up 94,845,853 948.46 94,845,853 948.46
Total issued, subscribed and fully paid-up share 94,845,853 948.46 94,845,853 948.46
CONSOLIDATED
capital
(a) Reconciliation of the equity shares outstanding at the end of the reporting year
31 March 2023 31 March 2022

No. of shares Amount No. of shares Amount
Equity shares
At the beginning of the year 94,845,853 948.46 94,845,853 948.46
Outstanding at the end of the year 94,845,853 948.46 94,845,853 948.46
SOBHA LIMITED
(b) Terms/ rights attached to equity shares

The Holding Company has issued only one class of equity shares having a par value of ₹10 per share (in ₹) fully
paid up. Each holder of equity shares is entitled to one vote per share. The Holding Company declares and
pays dividend in Indian rupees. The dividend proposed by the Board of Directors of the Holding Company is
subject to the approval of the shareholders in ensuing Annual General Meeting.
In the event of liquidation of the Holding Company, the holders of equity shares would be entitled to receive
remaining assets of the Holding Company, after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the shareholders.
(c) Details of equity shareholders holding more than 5% shares in the Company
31 March 2023 31 March 2022
No. of shares Holding % No. of shares Holding %
Equity shares of ₹10 (in ₹) each fully paid up
Mrs. Sobha Menon 28,726,420 30.29% 28,726,420 30.29%
Mr. P.N.C. Menon 12,319,259 12.99% 12,061,259 12.72%
Mr. P.N.C. Menon (inclusive of joint holding with Mrs. 5,289,054 5.58% 5,289,054 5.58%
Sobha Menon)
Anamudi Real Estates LLP 9,475,096 9.99% 9,475,096 9.99%
Schroder International Selection Fund Emerging Asia 5,541,913 5.84% 5,541,913 5.84%
Franklin India Focused Equity Fund 5,828,613 6.15% 5,575,003 5.88%
(d) Details of shares held by promoters
Promoter Name 31 March 2023 31 March 2022

No.of % of total % change No.of % of total % change
shares shares during the shares shares during the
year year
Mrs. Sobha Menon 28,726,420 30.29% - 28,726,420 30.29% -
Mr. P.N.C. Menon 12,319,259 12.99% 0.27% 12,061,259 12.72% -
Mr. P.N.C. Menon (inclusive of joint 5,289,054 5.58% - 5,289,054 5.58% -
holding with Mrs. Sobha Menon)
Mr. Ravi PNC Menon 3,185,930 3.36% - 3,185,930 3.36% -
(e) There have been no buy back of shares, issue of bonus shares and issue of shares pursuant to contract without payment
being received in cash for the period of 5 years immediately preceding the reporting date
(f) There are no shares reserved for issue under options and contracts/ commitments for sale of shares/ disinvestments.
CONSOLIDATED
* Excludes 5,000,000, 7% Redeemable preference shares of ₹ 100 each (in ₹) amounting to ₹ 500 (31 March 2022: ₹ 500)

SOBHA LIMITED
18 Other equity
Restated
Capital redemption reserve 119.47 119.47
Securities premium 9,328.92 9,328.92
General reserve 4,452.70 4,348.50
Retained earnings 10,097.15 9,483.78
23,998.25 23,280.67
Nature and purpose of reserve

(a) Capital redemption reserve
The Group recognises profit and loss on purchase, sale, issue or cancellation of the Group’s own equity instruments
to capital redemption reserve.
(b) Securities premium
Securities premium reserve is used to record the premium received on issue of shares by the Group. The reserve
can be utilised in accordance with the provision of Section 52(2) of Companies Act, 2013.
(c) General reserve
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.
As the general reserve is created by a transfer from one component of equity to another and is not an item of other
comprehensive income, items included in general reserve will not be reclassified subsequently to profit and loss.
(d) Retained earnings
The cumulative gain or loss arising from the operations which is retained by the Group is recognised and
accumulated under the heading of retained earnings. At the end of the year, the profit after tax is transferred
from the Consolidated statement of profit and loss to Surplus in the statement of profit and loss account.
19 Distribution made and proposed
As at As at
31 March 2023 31 March 2022
Final dividend on equity shares declared and paid

₹ 3 per share for the year ended 31 March 2022 284.54 -
₹ 3.5 per share for the year ended 31 March 2021 - 331.96
284.54 331.96
Details of proposed final dividend on equity shares (*)

₹ 3 per share for the year ended 31 March 2023 284.54 -
₹ 3 per share for the year ended 31 March 2022 - 284.54
284.54 284.54
(*) Proposed dividends on equity shares are subject to the approval of the shareholders at the ensuing annual general
meeting and are not recognised as a liability as at respective balance sheet dates. CONSOLIDATED

SOBHA LIMITED
20 Borrowings
As at As at
31 March 2023 31 March 2022
Restated
- from banks 8,942.75 9,954.25
- from other parties 3,033.83 2,044.38
11,976.58 11,998.63
Less: Current maturities of long term borrowings (5,841.99) (8,350.71)
Total non-current borrowings 6,134.59 3,647.92
Current borrowings
Debentures (Secured)
8.75%, unlisted, redeemable, Non Convertible Debentures of ₹ 500 each - 495.09
- from banks 813.04 4,585.99
- from other parties 928.02 1,688.08
Loans repayable on demand
- from banks 3,991.21 3,276.22
Cash credit from banks 2,326.64 2,993.26
Current maturities of long term borrowings 5,841.99 8,350.71
Total current borrowings 13,900.90 21,389.35
Note:
i) The Group has borrowings from banks and financial institutions on the basis of security of current assets. The
quarterly returns or statements of current assets filed by the Group with banks and financial institutions are in
agreement with the books of accounts.
ii) None of the entities in the Group have been declared wilful defaulter by any bank or financial institution or
government or any government authority.
Carrying amount as at Effective

Particulars 31 March 31 March interest Security Details Repayment terms
2023 2022 rate


b. equitable mortgage on vacant land parcels period of 39 months
c. hypothecation of Escrow balances, other current assets from the date of first
CONSOLIDATED
and receivables (both present and future) of the project disbursement.

Term loans 1,475.98 1,527.98 8%-10% Secured by way of Repayable in 153
from banks a. mortgage of Investment Property and hypothecation of monthly installments,
current assets and receivables relating to the Investment after a moratorium
Property period of 3 months
b. hypothecation of Escrow account and Debt Service from the date of first
Reserve account disbursement.
and Company's share of receivables (both present and future) disbursement.
of the project and Debt Service Reserve account
SOBHA LIMITED

2023 2022 rate

from banks a. mortgage of Investment Property of the Group Company monthly installments,
b. hypothecation of receivables (both present and future) of after a moratorium
the relation to the Investment Property period of 3 months
c. corporate guarantee from the Group Company from the date of first
disbursement.
Term loans 558.39 698.28 7%-9% Security charge by way of Repayable in 15 equal
b. first Charge on Escrow balances and all assets of the period of 3 months
Subsidiary project from the date of first
disbursement.
and receivables (both present and future) of the project and disbursement.
from banks a. first charge on Property, Plant and Equipment quarterly installments
disbursement
b. hypothecation of receivables (both present and future) period of 30 months
disbursement.
Term loans 684.96 - 8%-10% Security charge by way of Repayable in 36 equal
from banks a. equitable mortgage of immovable property of the Group quarterly installments,
b. first charge on all assets of the Group project period of 12 months
disbursement.
b. hypothecation of Escrow balances and Company's share of period of 36 months
receivables (both present and future) of the project and Debt from the date of first
Service Reserve account disbursement.

receivables (both present and future) of the project from the date of first
disbursement.

from banks a. hypothecation of receivables (both present and future) of quarterly installments CONSOLIDATED
the project from the date of
b. exclusive charge on immoveable property of the Company disbursement

from other a. mortgage of property owned by Group Company quarterly installments,
parties b. mortgage of building owned by the Company after a moratorium
b. corporate guarantee of Group Company period of 6 months
disbursement.
SOBHA LIMITED

2023 2022 rate
Term loans 1,012.98 - 8%-10% Secured by way of Repayable in 24

from other a. first charge on the Company's share of Inventory of the monthly installments,
disbursement.

from other a. equitable mortgage on the Company's share of Inventory monthly installments,
parties of the project after a moratorium
c. hypothecation of Escrow balances and Company's share of from the date of first
receivables (both present and future) of the project disbursement.

disbursement.

b. first charge on the vacant land parcels period of 24 months
b. hypothecation of Escrow balances and Company's share of from the date of first

c. hypothecation of Escrow balances, and Company's share from the date of first
of receivables (both present and future) of the project and disbursement.


parties b. hypothecation of Company's share of receivables (both from the date of first
present and future) of the project disbursement.

from other a. equitable mortgage on immovable properties of the quarterly installments,
CONSOLIDATED

c. hypothecation of receivables (both present and future) of from the date of first
the project disbursement.
from other a. first charge on the Company's share of Inventory in the quarterly installments,
c. hypothecation of Escrow balances, and Company's share from the date of first
of receivables (both present and future) of the project and disbursement.
Sub - total 11,976.58 11,998.63
SOBHA LIMITED

2023 2022 rate
Current borrowings
Debentures - 495.09 8.75% Secured by way of Repayable in 30 equal

(Secured) a. first charge on the Company's share of Inventory in the monthly installments,
b. hypothecation of Escrow balances, other current assets period of 24 months
and Company's share of receivables (both present and future) from the date of first
of the project disbursement.
Loans from 1,178.53 1,783.96 8%-10% Secured by way of Repayable on demand.

banks a. first charge on receivables and inventory of the contracting
business and concrete product division
company

banks a. first charge on inventory, receivables and other current
Term loans 551.03 479.30 8%-10% Security charge by way of Repayable in 10

from banks a. equitable mortgage of immovable property of the project quarterly installments,
b. equitable mortgage on vacant land after a moratorium
parcels period of 30 months
c. hypothecation of other current assets and receivables from the date of first
(both present and future) of the project disbursement.

banks a. first charge on the Company's share of Inventory in the
project
and Company's share of receivables (both present and future)
Loans from 1,490.25 - 8%-10% Secured by way of Repayable on demand.

banks a. first charge on inventory of the project
company

receivables (both present and future) of the project and Debt from the date of first
Service Reserve account disbursement.
c. fund shortfall undertaking by the director of the Company
towards funding of underlying projects* CONSOLIDATED
Loans from 219.75 - 8%-10% Secured by way of Repayable on demand.
banks a. first charge on the Company's share of Inventory of the
project
b. hypothecation of Escrow balances and Company's share of
receivables (both present and future) of the project and Debt
Service Reserve account
SOBHA LIMITED

2023 2022 rate

b. hypothecation of Escrow balances, other current assets period of 33 months
of the project and Debt Service Reserve account disbursement.
c. fund shortfall undertaking by the director of the Company
towards funding of underlying projects

Term loans - 511.60 8%-10% Secured by way of equitable mortgage on immovable Repayable in 10
from banks properties of the project quarterly installments,
after a moratorium
period of 16 months
disbursement.

b. hypothecation of receivables (both present and future) of
the project

b. hypothecation of Escrow balances, other current assets disbursement.
Term loans - 450.36 8%-10% Secured by way of Repayable in equal

from banks a. first charge on the immoveable property of the project monthly installments,
b. first charge over the receivables of the project after a moratorium
period of 6 months
disbursement.



from banks a. first charge on the immoveable property of the project monthly installments
CONSOLIDATED
b. first charge over the receivables of the project from the date of
disbursement.

from banks a. equitable mortgage on vacant land parcels quarterly installments,
b. hypothecation of receivables (both present and future) of after a moratorium
the project period of 30 months
disbursement.

b. hypothecation of Escrow balances, other current assets disbursement.
SOBHA LIMITED

2023 2022 rate

from banks a. first charge on inventory, receivables and other current quarterly installments,
assets (both present and future) of the project. after a moratorium
c. hypothecation of Escrow balances from the date of first
disbursement.

the project
Term loans 678.68 - 8.40% Secured by way of Repayable in 30

from other a. equitable mortgage on immovable properties of the monthly installments,
b. hypothecation of receivables (both present and future) of period of 24 months
the project. from the date of first
disbursement.


b. first charge on the vacant land parcels period of 24 months


parties b. hypothecation of Escrow balances, Company's share of from the date of

b. hypothecation of Escrow balances, other current assets period of 24 months CONSOLIDATED
of the project disbursement.
Cash credit 838.68 1,473.89 9%-11% Secured by way of Repayable on demand.

projects
Cash credit 707.77 574.66 8%-10% Secured by way of receivables of the project Repayable on demand.
SOBHA LIMITED

2023 2022 rate

a. first charge on receivables and inventory of the contracting
company


a. first charge on the Company's share of Inventory in the
project
and Company's share of receivables (both present and future)



company

a. first charge on receivables (both present and future) of the
project
b. equitable mortgage on the vacant lands

company

CONSOLIDATED

a. first charge on the Company's share of Inventory of the
project
b. hypothecation of Escrow balances and Company's share of
receivables (both present and future) of the project and Debt
Service Reserve account

company
d. Equitable mortgage on vacant land parcels.
SOBHA LIMITED

2023 2022 rate

company

company

the project

the project

company

company

company
company
c. hypothecation of receivables of project CONSOLIDATED

company
Sub - total 8,058.91 13,038.64
Total 20,035.49 25,037.27

borrowings
(*) Refer Note 35

SOBHA LIMITED
21 Other financial liabilities
As at As at
31 March 2023 31 March 2022
Restated
Current
Payable to land owner for acquisition of land/developmental 3,133.03 1,182.74

rights
Security deposit received towards
-Maintenance services 2,087.41 2,209.39
-Lease deposit 152.37 121.70
Letter of credit payable 1,346.96 2,701.64
Book overdraft 1,025.86 289.92
Revenue share payable under joint development agreement 632.42 380.93
Interest accrued but not due on borrowings 62.39 35.07
Deferred Lease Rental 27.93 22.23
Unclaimed dividend* 2.00 2.32
Capital creditors 2.19 2.36
Payable to related parties (refer note 35) 170.53 338.74
Others 327.35 290.98
Total other financial liabilities 8,970.44 7,578.02

*Investor Protection and Education Fund is credited for unclaimed dividends when due.
22 Provisions
Non-current Current
Provision for employee benefits
Provision for gratuity (refer note 37) 228.85 174.70 85.67 73.12
Provision for compensated absence - - 117.09 81.43
228.85 174.70 202.76 154.55
23 Trade payables
CONSOLIDATED

Restated
Dues of micro enterprises and small enterprises - -
Dues of creditors other than micro enterprises and small 5,986.75 4,469.65
enterprises
5,986.75 4,469.65
SOBHA LIMITED
Trade payable ageing schedule

As at 31 March 2023
Outstanding for following periods from due date
of payment
Particulars Unbilled dues Less than 1-2 years 2-3 years more than Total
/Not Due 1 year 3 years
Total outstanding dues of micro enterprises
- - - - - -
Total outstanding dues of creditors other
2,290.97 3,365.02 108.57 62.27 159.92 5,986.75
than micro enterprises and small enterprises
Disputed dues of micro enterprises and
- - - - - -
small enterprises
Disputed dues of creditors other than micro
- - - - - -
Total 2,290.97 3,365.02 108.57 62.27 159.92 5,986.75
As at 31 March 2022 (Restated)

Outstanding for following periods from due date
of payment
Particulars Unbilled dues Less than 1-2 years 2-3 years more than Total
/Not Due 1 year 3 years
Total outstanding dues of micro enterprises
- - - - - -
Total outstanding dues of creditors other
1,455.68 2,193.85 151.79 117.68 550.65 4,469.65
than micro enterprises and small enterprises
Disputed dues of micro enterprises and
small enterprises - - - - - -
Disputed dues of creditors other than micro

- - - - - -
Total 1,455.68 2,193.85 151.79 117.68 550.65 4,469.65
Note: Details of dues to Micro and Small Enterprises as per Micro, Small and Medium Enterprises Development Act, 2006.
The information as required under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to
the extent such parties have been identified on the basis of information available with the Group.
As at As at
Particulars
31 March 2023 31 March 2022
i. Principal amount remaining unpaid to any supplier as at the year end - -
ii. Interest due thereon - -
iii. Amount of interest paid by the Company in terms of section 16 of the - -
MSMED, along with the amount of the payment made to the supplier
beyond the appointed day during the accounting year. CONSOLIDATED
iv. Amount of interest due and payable for the year of delay in making - -
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specified under the MSMED, 2006
v. Amount of interest accrued and remaining unpaid at the end of the - -
accounting year
vi. The amount of further interest remaining due and payable even in the - -
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprise for the purpose of disallowance as a
deductible expenditure under the MSMED Act, 2006
SOBHA LIMITED
24 Other liabilities

Restated
-Advance from customers 52,912.64 41,888.99
-Mobilisation advance 581.31 571.60
-Liability under joint development agreement* 11,222.11 10,384.34
-Deferred revenue 168.70 117.16
Withholding taxes payable 135.71 70.19
Others 132.33 170.45
65,152.80 53,202.73
* Represents amount payable to landowners where the Company has entered into joint development arrangements with
landowners for joint development of properties on land in lieu of which, the Company has agreed to transfer certain percentage
of constructed area or certain percentage of the revenue proceeds, net of revenue recognised.
25 Revenue from operations

31 March 2023 31 March 2022
A Revenue from contract with customers
I Sale of products
Income from of constructed properties, plots and other 23,937.32 16,175.41
development activities
Income from sale of land and development rights - 1,435.69
Income from glazing works 2,626.08 1,207.87
Income from interior works 831.49 737.70
Income from concrete blocks 649.08 520.10
Income from retail sales 133.93 76.91
II Sale of services
Income from contractual activity 3,622.51 4,633.39
Income from maintenance and other services 470.50 293.68
III Other operating revenue

Forfeiture income 140.96 0.40
CONSOLIDATED
Interest collected from customer 63.01 23.00

Transfer fees 67.30 33.67
Marketing income 16.51 21.67
Scrap sales 64.21 57.29
Total (A) 32,622.90 25,216.78
SOBHA LIMITED
B Rental income
Rental income from operating leases (refer note 38) 478.24 395.82
Total (A+B) 33,101.14 25,612.60
Additional disclosures required under Ind AS 115
(a) Disaggregated revenue information

Set out below is the disaggregation of the Company’s revenue from contracts with customers by timing of
transfer of goods or services

31 March 2023 31 March 2022
Revenue recognition at a point of time 23,159.33 16,678.26
Revenue recognition over period of time 9,463.57 8,538.52
32,622.90 25,216.78
(b) Contract balances
The following table provides information about receivables and contract liabilities from contract with customers:

31 March 2023 31 March 2022
Contract assets Restated
Unbilled revenue 1,764.53 3,361.68
Total contract assets 1,764.53 3,361.68
Advance from customers 53,493.95 42,460.59
Liability under joint development agreement 11,222.11 10,384.34
Deferred revenue 168.70 117.16
Total contract liabilities 64,884.76 52,962.09
Receivables
CONSOLIDATED
Total receivables 2,375.34 4,159.09
Unbilled revenue is initially recognised for revenue earned on account of contracts where revenue is recognised
over the period of time as receipt of consideration is conditional on successful completion of performance
obligations as per contract. Once the performance obligation is fulfilled and milestones for invoicing are achieved,
contract assets are classified to trade receivables. Such unbilled revenue is classified as non-financial asset
because the right to consideration depends on completion of contractual milestones.
Contract liabilities include advances received from customers as well as deferred revenue representing transaction
price allocated to outstanding performance obligations.
SOBHA LIMITED
(c) Significant changes in contract liabilities balances during the year are as follows:

Particulars Advances Payable Deferred Advances Payable Deferred
from to land Revenue from to land Revenue
customers owner customers owner
Opening balance 42,460.59 10,384.34 117.16 35,200.29 13,081.60 160.89

Additions during the year 32,026.97 4,052.75 168.70 20,795.52 - 117.16
(net)
Revenue recognised during (20,993.61) (3,214.98) (117.16) (13,535.22) (2,697.26) (160.89)
the year
Closing balance 53,493.95 11,222.11 168.70 42,460.59 10,384.34 117.16
(d) Significant changes in unbilled revenue balances during the year are as follows:
Particulars As at As at 31
Opening balance 3,361.68 3,429.43

Revenue recognised during the year 6,502.10 6,868.96
Billed during the year (8,099.25) (5,950.44)
Cumulative catch up adjustments to revenue - (986.27)
Closing balance 1,764.53 3,361.68
(e) Reconciliation of revenue recognised with contract revenue:
Particulars As at As at 31
Contract revenue 32,622.90 25,216.78

Revenue recognised 32,622.90 25,216.78
The performance obligation of the Group in case of sale of residential plots, villas, apartments, commercial
space and development management of such properties is satisfied once the project is completed and control
is transferred to the customers. The customer makes the payment for contract price as per installment stipulated
in customer's agreement which can be cancelled by the customer for convenience.
CONSOLIDATED
The transaction price of the remaining performance obligation (unsatisfied or partly satisfied) as at 31 March 2023
is ₹ 115,536.09 (31 March 2022 is ₹ 83,954.21). The same is expected to be recognised within 1 to 5 years
SOBHA LIMITED
26 Other income

31 March 2023 31 March 2022
Interest income on
-Bank deposits 47.30 30.10
-Unwinding of discount on refundable deposits 231.29 256.66
-Refundable deposits 38.87 -
-Others 14.73 -
Other non-operating income (net of expenses directly attributable to such income)
-Liabilities no longer required written back 327.96 6.00
-Facilitation charges 179.50 140.69
-Gain on foreign exchange difference (net) 1.16 -
-Profit on sale of property, plant and equipment (net) 0.92 322.48
-Profit on sale of investment property (net) - 31.74
-Reversal of impairement of refundable deposit 50.55 -
-Others 30.91 52.00
923.19 839.67
27 Cost of material consumed

31 March 2023 31 March 2022
Inventory at the beginning of the year 636.87 545.68

Add: Purchases during the year 3,740.46 2,073.40
Less: Inventory at the end of the year 717.54 636.87
Cost of material consumed 3,659.79 1,982.21
28 Changes in inventories of raw materials, land stock, work in progress and finished
goods
31 March 2023 31 March 2022
Inventories at the end of the year

CONSOLIDATED
Land stock 7,225.32 4,319.20
Work-in-progress 63,975.98 60,034.74
86,892.21 75,878.92
SOBHA LIMITED

31 March 2023 31 March 2022
Inventories at the beginning of the year
Building materials 75.80 77.55
Land stock 4,319.20 15,154.39
Work-in-progress 60,034.74 58,894.32
Stock in trade - flats 11,325.03 322.11
75,878.92 74,563.93
Less: Opening Inventory transferred to capital work in progress - 218.43

75,878.92 74,345.50
Increase (11,013.29) (1,533.42)
29 Employee benefits expense

31 March 2023 31 March 2022
Salaries, wages and bonus 2,664.55 2,307.17

Contribution to provident and other funds 89.79 80.19
Gratuity expenses (refer note 37) 40.24 36.16
Compensated absence 69.72 37.57
Staff welfare expenses 80.45 50.87
2,944.75 2,511.96
30 Finance costs (*)

31 March 2023 31 March 2022
Interest expense
- on borrowings 2,032.87 2,663.11
-unwinding of discount on land cost payable 189.01 111.24
-on leases 27.26 30.83

-on others 104.38 59.28
Other borrowing cost
CONSOLIDATED
-letter of credit charges 85.08 157.17

-bank guarantee charges 18.88 18.72
-bank and other charges 32.76 42.90
Total 2,490.24 3,083.25
(*)Includes finance expense capitalised to inventory (The rate used to 2,260.65 2,900.45
determine the amount of borrowing costs eligible for capitalisation is the
effective interest rate of the underlying borrowings which is in the range of
7% to 11%) Capitalisation rate 31.03.2023 - 10% (31.03.2022 - 10%)
SOBHA LIMITED
31 Depreciation and amortization expense

31 March 2023 31 March 2022
Depreciation of property, plant and equipment 500.83 546.41

Depreciation of investment properties 120.00 108.67
Depreciation of right of use assets 55.40 60.10
Amortization of intangible assets 2.14 3.09
678.37 718.27
32 Other expenses

31 March 2023 31 March 2022
License fees and plan approval charges 654.01 201.69

Power and fuel 663.35 531.48
Water charges 28.66 31.68
Freight and forwarding charges 267.59 235.11
Rent (refer note 38) 165.38 178.44
Rates and taxes 201.13 193.78
Insurance 132.19 113.26
Property maintenance expenses 160.46 168.96
Repairs and maintenance
Plant and machinery 52.62 36.92
Others 87.05 55.06
Advertising and sales promotion 415.48 389.37
Brokerage and discounts 326.20 175.11
Donation 0.95 0.30
Corporate social responsibility expenditure 199.62 121.10
Travelling and conveyance 305.52 236.20
Printing and stationery 39.09 28.48
Communication costs 0.16 0.14
Legal and professional fees 403.80 387.70
Directors’ commission and sitting fees (refer note 35) 8.71 6.73
Payment to auditor 18.70 14.28
Exchange difference (net) - 0.49
Allowance for credit losses (including amounts written off) 372.10 43.03 CONSOLIDATED

Security charges 192.01 184.23
Miscellaneous expenses 457.46 306.79
5,439.91 3,643.87
SOBHA LIMITED
33 Income taxes
The significant components of income tax expense for the years ended 31 March 2023 and 31 March 2022 are -
A. Amounts charged to statement of profit and loss

Particulars
31 March 2023 31 March 2022
Current income tax:
Current income tax charge 360.46 609.23
Deferred tax:
Relating to origination and reversal of temporary differences 47.24 25.12
Income tax expense reported in the statement of profit and loss 407.70 634.35
B Income tax recognised in other comprehensive income

Net loss on remeasurements of defined benefit plans 13.43 3.03
Income tax charge to other comprehensive income 13.43 3.03
C Reconciliation of tax expense and the accounting profit multiplied by Company’s domestic tax rate for
31 March 2023 and 31 March 2022
31 March 2023 31 March 2022
Accounting profit before income tax 1,449.75 2,366.25
Tax on accounting profit at statutory income tax rate 25.17% (31 March 364.90 595.59
2022: 25.17%)*
Adjustments in respect of change in tax rate of subsidiary 0.94 1.00
Permanent adjustments 41.86 37.76
407.70 634.35
* The Group (except sobha city - partnership firm, Tax rate is 34.94% ) has elected to exercise the option
permitted under Section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment)
Ordinance, 2019 from the year ended 31 March 2021 and has accordingly re-measured its deferred tax assets/
(liabilities) basis the rate prescribed in the said section. Further, the MAT credit available from earlier years has
been reversed in the previous year on the exercise of this said option.
CONSOLIDATED

SOBHA LIMITED
D Deferred tax asset / Liability
Deferred tax assets/(liabilities) relates to the following
31 March 2023 31 March 2022

Particulars Deferred tax Deferred tax Deferred tax Deferred tax
asset liability asset liability
Provision for compensated absence 29.46 - 20.49 -
Provision for gratuity 79.16 - 62.38 -
Provision for exgratia 18.64 - 11.62 -
Expected credit losses 145.05 - 76.86 -
Deferred tax asset on tax losses and 26.93 - 13.10 -
unabsorbed depreciation
Others 55.79 - 44.19 -
Property, plant and equipment and investment 40.70 - 66.49 -
property
On account of difference in IndAS 115 and ICDS III - (173.35) - (48.00)
Deferred tax asset/(liability) 395.73 (173.35) 295.13 (48.00)
Deferred tax asset (Net) 222.38 247.13
Deferred tax liability relates to the following
31 March 2023 31 March 2022

Particulars Deferred tax Deferred tax Deferred tax Deferred tax
asset liability asset liability
Expected credit losses 30.16 - 9.80 -
Deferred tax asset on tax losses and 56.59 - 66.16 -
Others - (30.32) - (30.32)
Property, plant and equipment and investment - (269.92) - (248.94)
property
On account of difference in IndAS 115 and ICDS III 87.67 - 86.54 -
174.42 (300.24) 162.50 (279.26)
Deferred Tax (liability) (Net) (125.82) (116.76)
For three subsidiaries, deferred tax assets have been created on tax losses of ₹ 96.73 (31 March 2022 ₹ 45.96)
and unabsorbed depreciation of ₹ 172.19 (31 March 2022 ₹ 195.46)
CONSOLIDATED
Following summarises the movement of Deferred tax asset/ (liability)
Balance as at Movement in Movement in Balance as

Year ended 31 March 2023 31 April 2022 statement of OCI at 31 March
Restated Profit/Loss 2023

Provision for exgratia 11.62 7.02 - 18.64
Expected credit losses 86.66 88.55 - 175.21
SOBHA LIMITED
Balance as at Movement in Movement in Balance as

Year ended 31 March 2023 31 April 2022 statement of OCI at 31 March
Restated Profit/Loss 2023
Deferred tax asset on tax losses and 79.26 4.26 - 83.52

Others 13.87 11.60 - 25.47
Property, plant and equipment and (182.45) (46.77) - (229.22)
investment property
On account of difference in IndAS 115 and ICDS III 38.54 (124.22) - (85.68)
Total 130.37 (47.24) 13.43 96.56
Balance as at Movement in Movement in Balance

1 April 2021 statement of OCI as at 31
Year ended 31 March 2022
Restated Profit/Loss March 2022
Restated

Provision for exgratia - 11.62 - 11.62
Expected credit losses 100.47 (13.81) - 86.66
Deferred tax asset on tax losses and 44.91 34.35 - 79.26
Others 28.94 (15.07) - 13.87
Property, plant and equipment and (214.65) 32.20 - (182.45)
investment property
On account of difference in IndAS 115 and ICDS III 119.81 (81.27) - 38.54
Total 152.46 (25.12) 3.03 130.37
E The Group has not entered into any such transaction which is not recorded in the books of account that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)
F Income tax assets (net)

31 March 31 March
Particulars
2023 2022
Advance Income tax (net of provisions) 217.46 116.01
CONSOLIDATED
217.46 116.01
G Current tax liabilities (net)

31 March 31 March
Particulars
2023 2022
Current tax liabilities (net of advance tax) - 202.94
- 202.94
SOBHA LIMITED
34 Earnings per share [‘EPS’]
31 March 31 March
Particulars
2023 2022
Net Profit after tax attributable to equity shareholders 1,042.05 1,731.90

Weighted average number of equity shares used in calculating basic and 94,845,853 94,845,853
diluted EPS
Nominal value per equity share ( in ₹) 10 10
Earnings per share ( in ₹)
- Basic and diluted 10.99 18.27
35 Related party disclosures
a) Name of the related parties and the nature of its relationship with the Group as below:
Joint Venture
Associate
C.V.S.Tech Park Private Limited
Key Shareholder
Mr. P. N. C. Menon
Mrs. Sobha Menon
Key Management Personnel (‘KMP’)

Mr. Ravi PNC Menon - Chairman
Mr. J. C. Sharma - Vice Chairman and Managing Director (till 31 March 2022)
Mr. T P Seetharam - Whole-time Director (till 31 March 2022)
Mr. Jagadish Nangineni - Managing Director (with effect from 01 April 2022)
Additional related parties (‘KMP’s) as per Companies Act, 2013 with whom transactions have taken place
Mr. Subhash Bhat - Chief Financial Officer (till 14th November 2021)
Mr. Yogesh Bansal - Chief Financial Officer (with effect from 15th November 2021) CONSOLIDATED
Mr. Vighneshwar G Bhat - Company Secretary
Other Directors
Mr. Anup Shah
Mr. R V S Rao
Mrs. Srivathsala KN
Mr. Sumeet Jagdish Puri (till 7th October 2021)
Mr. Raman Mangalorkar (with effect from 01 April 2022)
SOBHA LIMITED
Relatives of key management personnel

Mrs. Sudha Menon
Post employment-benefit plan entity

Sobha Developers Employees Gratuity Trust
Other related parties

Mannur Real Estate Private Limited
Mannur Properties Private Limited
Puzhakkal Developers Private Limited
Sobha Aviation and Engineering Services Private Limited
Sobha Contracting LLC, Dubai
Sobha Glazing & Metal Works Private Limited
Sobha Projects & Trade Private Limited
Sobha Puravankara Aviation Private Limited
Sobha Renaissance Information Technology Private Limited
Sobha Space Private Limited
Sobha Technocity Private Limited
Sri Durga Devi Property Management Private Limited
Sri Kurumba Educational and Charitable Trust
Sri Parvathy Land Developers Private Limited
Technobuild Developers Private Limited
Mapedu Realtors Private Limited
Mapedu Builders Private Limited
Chikmangaloor Properties Private Limited
Rusoh Marina Properties Private Limited
Thakazhi Developers Private Limited
Thakazhi Realtors Private Limited
Moolamcode Traders Private Limited
CONSOLIDATED

SOBHA LIMITED
b) Details of the transactions with the related parties:

31 March 2023 31 March 2022
I. Transaction with joint venture

Kondhwa Projects LLP 0.60 6.21
II. Transaction with other related parties

Income/(Loss) from sale of land and development rights
Chikmangaloor Properties Private Limited 0.97 -
Thakazhi Realtors Private Limited 6.64 -
Rusoh Marina Properties Private Limited (0.01) -
Mapedu Realtors Private Limited (0.15) -
Mapedu Builders Private Limited (0.14) -

Sobha Projects & Trade Private Limited - 70.14
Income from glazing works


Income from concrete blocks/works

Sobha Projects & Trade Private Limited 11.57 -
Purchase of project items

Aircraft hire charges
CONSOLIDATED
CSR expenditure - Donation
Land Advance
Technobuild Developers Private Limited 201.06 -

SOBHA LIMITED

31 March 2023 31 March 2022

Puzhakkal Developers Private Limited 52.20 -
Advances received fom the related party



Contribution to plan assets

Sobha Developers Employees Gratuity Trust 26.90 18.30
Guarantees received
Guarantees extinguished
III. Transaction with key managerial personnel

Directors' remuneration
Mr.T P Seetharam (till 31 March 2022) - 6.44

Mr. Jagadish Nangineni (with effect from 01 April 2022) 33.08 -
CONSOLIDATED

Mr. Subhash Bhat (till 14th November 2021) - -
Mr. R V S Rao 0.05 0.05
SOBHA LIMITED

31 March 2023 31 March 2022
Salary (including perquisites)

Mr. Vigneshwar G Bhat 5.18 4.69
Mr. Yogesh Bansal (with effect from 15th November 2021) 6.74 2.08
Directors' sitting fees and commission

Mr. R V S Rao 2.18 1.94
Mr. Sumeet Jagdish Puri (till 7th October 2021) - 0.99
Mrs. Srivathsala KN 2.23 1.92
Mr. Raman Mangalorkar (with effect from 01 April 2022) 2.16 -
IV. Transaction with key shareholders

Mr. P. N. C. Menon 36.18 42.21
Mrs. Sobha Menon 86.18 100.54
Mr. P. N. C. Menon and Mrs. Sobha Menon (jointly held shares) 15.87 18.51
c) Details of balances receivable from and payable to related parties are as follows:
As at As at
Particulars
31 March 2023 31 March 2022
I. Balances receivable from and payable to joint ventures & associates

In partners current account
Kondhwa Projects LLP 1,149.28 1,148.68
II. Balances receivable from and payable to other related parties

Land advance
Technobuild Developers Private Limited 8,152.41 8,199.84
Sri Durga Devi Property Management Private Limited - 43.10
CONSOLIDATED
Right of use Assets

SOBHA LIMITED
As at As at
Particulars
31 March 2023 31 March 2022

Sobha Aviation and Engineering Services Private Limited - 0.01
Thakazhi Developers Private Limited - 0.05
Thakazhi Realtors Private Limited - 0.04
Sobha Space Private Limited - 0.01
Mannur Real Estate Private Limited - 0.15
Mannur Properties Private Limited - 0.02
Sobha Technocity Private Limited - 0.02
Moolamcode Traders Private Limited - 0.02
Trade receivables
Technobuild Developers Private Limited - 0.07
Thakazhi Developers Private Limited 2.57 0.05
Mapedu Realtors Private Limited 0.35 2.18
Mapedu Builders Private Limited - 1.24
Chikmangaloor Realtors Private Limited - 0.42
Chikmangaloor Properties Private Limited - 2.23
Allapuzha Fine Real Estate Private Limited - 1.45
Rusoh Modern Properties Private Limited - 1.49
Rusoh Marina Properties Private Limited - 0.52
Santhavellur Developers Private Limited - 0.02
Santhavellur Realtors Private Limited - 0.02
Santhavellur Builders Private Limited - 0.01


CONSOLIDATED
Trade payables
Sobha Projects & Trade Private Limited - -
Technobuild Developers Private Limited - -
Mapedu Builders Private Limited 0.11 -
Rusoh Marina Properties Private Limited 0.02 -
Sobha Space Private Limited 14.05 -
SOBHA LIMITED
As at As at
Particulars
31 March 2023 31 March 2022
Other Current financial liabilities

Sobha Space Private Limited 14.05 -
Other Payables
Sobha Glazing & Metal Works Private Limited - 50.14
Guarantees and Collaterals received

Sri Durga Devi Property Management Private Limited 1,100.00 1,500.00
Sri Parvathy Land Developers Private Limited 1,100.00 1,500.00
Security Received
d) Payable to key management personnel/director of the Group
As at As at
Particulars
31 March 2023 31 March 2022
Commission to independent directors 8.00 5.95
Commission to Chairman, Vice Chairman & Managing Director 41.10 38.97
49.10 44.92
*As the liability for gratuity and leave encashment is provided on actuarial basis for the Group as whole,
the amount pertaining to the directors are not included above.
Note
The director of the Company has given fund shortfall undertaking for cetain borrowings towards funding
of the respective underlying projects. Refer note 20
e) Compensation of key management personnel of the Company
As at As at
Particulars CONSOLIDATED
31 March 2023 31 March 2022
Short-term employee benefits 137.49 121.86

Other benefits* 41.10 38.97
178.59 160.83
*As the liability for gratuity and leave encashment is provided on actuarial basis for the Company as whole, the
amount pertaining to the directors are not included above.
Note
The director of the Company has given fund shortfall undertaking for cetain borrowings towards funding of the
respective underlying projects. Refer note 20
SOBHA LIMITED
36 Segment information
Basis of segmentation
An operating segment is a component of the Group that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the
Group’s other components, and for which discrete financial information is available. All operating segments’
operating results are reviewed regularly by the Group’s Managing Director (MD) to make decisions about
resources to be allocated to the segments and assess their performance.
The Group has two reportable segments, as described below, which are the Group's strategic business units.
These business units offer different products and services, and are managed separately because they require
different marketing strategies. For each of the business units, the Group's MD reviews internal management
reports on at least a quarterly basis.
The MD monitors the operating results of its business units separately for the purpose of making decisions
about resource allocation and performance assessment. Accordingly, the Group has identified following as its
reportable segment for the purpose of Ind AS 108:
a) Real estate segment;
b) Contractual and manufacturing segment.
Real Estate segment (RE) comprises development, sale, management and operation of all or any part of
townships, housing projects, also includes leasing of self owned commercial premises.
The operation of the Contractual and Manufacturing segment (CM) comprises development of commercial
premises and other related activities, also includes manufacturing activities related to interiors, glazing and
metal works and concrete products.
Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in
the financial statements. Also, the Group’s financing (including finance costs and finance income) and income
taxes are managed on a overall basis and are not allocated to operating segments.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions
with third parties.
The following tables present revenue and profit information for the Group’s operating segments for the year
ended 31 March 2023 and 31 March 2022 respectively:
Business segments
Particulars For the year ended For the year ended

31 March 2023 31 March 2022
Segment revenue
Real estate 25,372.14 18,513.60
Total segment revenue 34,703.14 26,404.60
Inter segment revenues (1,602.00) (792.00)
Net revenue from operations 33,101.14 25,612.60
Segment result
CONSOLIDATED
Real estate 5,871.77 7,587.04

Contractual and manufacturing (45.34) (119.04)
Total segment results 5,826.43 7,468.00
Finance costs (2,490.00) (3,082.75)

Other unallocable expenditure (2,527.68) (2,602.00)
Other income (including finance income) 641.00 583.00
Profit before taxation 1,449.75 2,366.25
Income taxes (407.70) (634.35)
Profit after taxation 1,042.05 1,731.90
SOBHA LIMITED
The following table presents assets and liabilities information for the Group’s operating segments as at 31 March
2023 and 31 March 2022 respectively:
31 March 2023 31 March 2022
Segment assets
Real estate 104,150.24 93,004.00
Total segment assets 110,669.00 100,883.00
Unallocated assets 15,213.43 14,536.24
Total assets 125,882.43 115,419.24
Segment liabilities
Real estate 67,876.00 51,844.00
Total segment liabilities 74,115.00 58,217.00
Unallocated liabilities 26,820.72 32,973.11
Capital employed
Real estate 36,274.24 41,160.00
Contractual and manufacturing 279.76 1,506.00
Unallocated capital employed (11,607.29) (18,436.87)
Total capital employed 24,946.71 24,229.13
Current taxes, deferred taxes and certain financial assets and liabilities are considered as unallocated as they are
also managed on a Group basis.
Particulars For the year ended For the year ended

31 March 2023 31 March 2022
Capital expenditure
Real estate 468.32 288.82
Contractual and manufacturing 84.74 42.54
Unallocated capital expenditure 732.01 65.20
Total capital expenditure 1,285.07 396.56
Capital expenditure consists of additions of property, plant and equipment, intangible assets and investment
property under development. CONSOLIDATED
Information of revenue and non-current operating assets based on location has not been furnished since there
are no revenue generated from business activities outside India and there are no non-current operating assets
held by the Group outside India.
SOBHA LIMITED
Reconciliations to amounts reflected in the financial statements
(i) Reconciliation of assets
31 March 2023 31 March 2022
Segment assets 110,669.00 100,883.00

Investment (refer note 9) 1,149.33 1,148.73
Prepaid expenses (refer note 14) 1,017.99 962.83
Balances with statutory/ government authorities (refer note 14) 1,127.67 1,508.88
Income tax assets (net) (refer note 33) 217.46 116.01
Deferred tax assets (net) (refer note 33) 222.38 247.13
Cash and bank balances (refer note 15 and 16) 4,514.04 1,783.09
Non-current bank balances (refer note 13) 151.04 175.28
Other unallocable assets 6,813.52 8,594.29
Total assets 125,882.43 115,419.24
(ii) Reconciliation of liabilities
31 March 2023 31 March 2022
Segment liabilities 74,115.00 58,217.00

Borrowings (refer note 20) 20,035.49 25,037.27
Provisions (refer note 22) 202.76 154.55
Deferred tax liabilities (refer note 33) 125.82 116.76
Liabilities for current tax (net) (refer note 33) - 202.94
Withholding taxes payable (refer note 24) 135.71 70.19
Others payable (refer note 24) 132.33 170.45
Other unallocable liabilities 6,188.61 7,220.95
37 Employment benefit plans

A Defined benefit plan
The Group has gratuity as defined benefit retirement plans for its employees. The Group provides for gratuity
for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for
a period of 5 years are eligible for gratuity at the rate of 15 days basic salary for each year of service until the
retirement age. As at 31 March 2023 and 31 March 2022 the plan assets were invested in insurer managed funds.
CONSOLIDATED
It is exposed to the following types of risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of
the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of
the assets depending on the duration of asset.
Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed level will increase
the plan’s liability.
Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which
is determined by reference to market yields at the end of the reporting period on government bonds. If the
SOBHA LIMITED
return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively
balanced mix of investments in government securities, and other debt instruments.
Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is
invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only,
plan does not have any longevity risk.
Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company
The following tables set out the the funded status of gratuity plans and amount recognised in the balance sheet
for the respective plans:

1 The amounts recognized in the Balance Sheet are as follows:
Present value of defined benefit obligation at the end of the year 318.74 251.17
Less: Fair value of plan assets as at the end of the year 4.21 3.35
Net liability recognised in the balance sheet 314.53 247.82
2 Changes in the present value of defined benefit obligation

Defined benefit obligation as at beginning of the year 251.17 220.36
Actuarial (gain) / loss due to demographic assumption changes 6.06 (0.04)
Actuarial (gain) / loss due to financial assumption changes 26.70 (3.49)
Actuarial (gain) / loss due to experience adjustments 20.39 15.55
Defined benefit obligation as at the end of the year 318.74 251.17
3 Changes in the fair value of plan assets

Fair value as at the beginning of the year 3.35 2.40
Interest on plan assets 0.21 0.15
Actuarial gain / (loss) (0.21) (0.03)
Contributions 26.90 18.30
Fair value as at the end of the year 4.21 3.35
4 Net gratuity cost for the reporting years comprises of following components
Interest income (0.21) (0.15)
CONSOLIDATED
Net Gratuity cost 40.24 36.11
5 Other comprehensive income

Actuarial loss on defined benefit obligation (53.15) (12.01)
Return on plan assets excluding interest income (0.21) (0.03)
Loss recognised in other comprehensive income (53.36) (12.04)
6 Experience adjustment:
On plan defined benefit obligation (gain) / loss 20.39 15.55
On plan assets gain / (loss) (0.21) (0.03)
SOBHA LIMITED
7 Investment Details
The major categories of plan assets as a percentage of the fair value of the total plan assets are as follows:

Investment in insurance fund 100% 100%
8 Actuarial assumptions

Discount rate (p.a) 7.20% 6.41%
Future salary growth (p.a) 12.00% 5.00%
Weighted Average Duration of the Defined Benefit Obligation (years) 3 5
Attrition rate (p.a) 35.00% 15.00%
9 Sensitivity Analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Decrease Increase Decrease Increase
Discount rate (+ / -1%) 5.63 5.94 9.39 10.28
Salary growth rate (- / + 1%) 4.64 4.74 8.60 9.16
Attrition rate (+ / -1%) 1.09 1.14 0.59 0.51
The sensitivity analyses above have been determined based on a method that extrapolates the impact on
projected benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the
reporting period.
10 Maturity profile of defined benefit obligation

Within the next 12 months 108.32 49.27

Beyond 10 years 10.01 68.23
Total expected payments 370.24 339.02
Expected contribution in the next year ₹ 85.67.
B Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952 and Employees State Insurance Scheme as per the Employees’ State
Insurance Act, 1948. The Company has recognized the following amounts in the Statement of Profit and Loss
under defined contribution plan whereby the Company is required to contribute a specified percentage of the
CONSOLIDATED
payroll costs to fund the benefits:

31 March 2023 31 March 2022
Employer’s contribution to provident fund 88.45 78.44
Employer’s contribution to Employees’ state insurance scheme 0.99 1.35
Contribution to Superannuation Fund 0.35 0.40
Total 89.79 80.19
SOBHA LIMITED
38 Leases
A The Group as a lessor

Assets given on operating lease:
The Company has entered into operating lease agreements with its lessees. Total lease rental income recognized
in the statement of profit and loss for the year is ₹ 478.24 (31 March 2022: ₹ 338.96)
The future minimum lease receivables under non-cancellable operating leases in aggregate are as follows:
Year As at 31 March 2023 As at 31 March 2022
FY 2022-23 - 195.82
FY 2023-24 248.90 196.36
FY 2024-25 217.76 162.84
FY 2025-26 126.15 69.51
FY 2026-27 85.44 24.64
FY 2027-28 75.19 -
More than 5 years 100.30 42.11
Total 853.74 691.28
B The Group as a lessee

The Group has leases for building, vehicles and plant and machinery. With the exception of short-term leases
and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset
and a lease liability except for lease on buildings for which it was agreed that the company shall pay a security
deposit which shall be adjusted to the minimum lease payments and due to which no lease liability in the
same was created and the amount given as security deposit is treated as Right of use asset depreciated on a
straight line basis over the lease period. Variable lease payments which do not depend on an index or a rate are
excluded from the initial measurement of the lease liability and right of use assets. The Company has presented
its right-of-use assets in the balance sheet separately from other assets.
Lease arrangements for vehicles contain an option to extend the lease for a further term till the vehicle is
handed over to the lessor after the end of lease term as per agreement or for a fixed tenure of 3 to 9 months
as the case may be as per the requirement of Lessee.The Company is prohibited from selling or pledging the
underlying leased assets as security. For leases over Factory buildings, the Company must repair and maintain
those properties in a good state and return the properties with all connections, sanitary, water and drainage
fittings and fixtures as it may exist on the relevant date.
a. Right of use assets
Other Vehicles Plant and Total
buildings machinery
Cost CONSOLIDATED
Deletions during the year - (4.61) - (4.61)
Deletions during the year - (14.90) - (14.90)
Other Adjustmennts (21.62) - - (21.62)
As at 31 March 2023 49.50 163.72 90.33 303.55
SOBHA LIMITED
Other Vehicles Plant and Total

buildings machinery
Accumulated depreciation
Reversal during the year - (4.61) - (4.61)
Reversal during the year - (10.99) - (10.99)
As at 31 March 2023 16.50 96.00 87.78 200.28
Carrying amount
As at 31 March 2023 33.00 67.72 2.55 103.27
b. Set out below are the carrying amounts of lease liabilities and the movements during the year:
Particulars Amount
As on 1 April 2021 (Restated) 279.18
As on 31 March 2022 (Restated) 253.49
As on 31 March 2023 232.81
31 March 2023 31 March 2022
Current 28.04 50.70

Non Current 204.77 202.79
c. The following are the amounts recognised in the profit & loss

CONSOLIDATED
31 March 2023 31 March 2022

Depreciation expenses of right-of-use assets 55.40 60.10
Interest expenses on lease liabilities 27.26 30.83
Expenses relating to short-term leases 163.84 177.21
Expenses relating to lease of Low-value of assets 1.54 1.23
Total amount recogniesed in the profit & loss 248.04 269.37
Total cash out flows towards leases 244.74 257.44
Lease term of the above referred leases range from 11 months to 63 years
SOBHA LIMITED
d. Information about extension and termination options
Number Range of Average Number of Number of Number of

of leases remaining remaining leases with leases with leases with
Right of use assets
term lease term extension purchase termination
(in years) (in years) options option option
Other buildings 2.00 5.92 6.00 2.00 - -
Plant and Machinery 9.00 0.04 to 0.21 0.11 - 9.00 -
Vehicles 62.00 0.35 to 4.68 2.52 62.00 62.00 62.00
e. The maturity profile for lease liabilities has been provided in note 41(C)
39 Contingent liabilities and commitments
a Contingent liabilities (to the extent not provided for)
i Income tax matters in dispute (Refer note 1) 82.07 103.12

ii Value added tax, Service tax and customs matters in dispute (Refer note 2) 1,641.69 1,856.71
iii Customer related cases and complaints (Refer note 3) 2.00 -
iv Matters before prevention of money laundering adjudicating authority Refer 2,016.00 -
note 4)
v Other litigation (Refer note 7 and 9) 15.50 15.50
3,757.26 1,975.33
Note - Pending resolution of the respective proceedings, it is not practicable for the group to estimate the timings of
cash outflows, if any, in respect of the above as it is determinable only on receipt of judgements/decisions pending with
various forums/authorities.
The Group does not expect the outcome of these proceeding to have a material adverse effect on its financial position.
The Group does not expect any reimbursement in respect of above contingent liability
1 The Income Tax Authorities have disputed the tax computation for certain years, which are pending before various
forums. Based on the grounds of the appeals, the management believes that there is a reasonably strong likelihood of
obtaining a favourable order. Any income, which may arise out of such litigations will be recognised only on the receipt
basis/ or where right to receive such income is clearly established. Pending the final decisions on the above matter, no
adjustment has been made in these consolidated financial statements.
2 There are various disputes pending with the authorities of customs, service tax and value added tax. The group is
contesting these demands raised by authorities and are pending at various appellate authorities. The group has
reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and
disclosed as contingent liabilities where applicable, in its consolidated financial statements. The group does not expect
the outcome of these proceedings to have a materially adverse effect on its financial position.
3 There are various litigations going on/ complaints filed against the group primarily in Consumer Redressal Forum CONSOLIDATED
and under the real estate regulation act 2016. The group is contesting such litigations with the respective appellate
authorities. The management has reviewed all its pending litigations and proceedings and has adequately provided for
where provisions are required in its seperate financial statements. For most number of litigations/ complaints, based on
the grounds of the appeals, the management believes that there is a reasonably strong likelihood of succeeding before
these authorities and hence, pending the final decisions on the above matters, no adjustment has been made in these
4 The Holding Company had entered into a Joint Development Arrangement with certain land owners in Gurugram,
Haryana, in earlier years. In respect of this transaction, the Enforcement Directorate (‘ED’) after due investigation has
filed a complaint with Adjudicating Authority, Prevention of Money Laundering (‘AA-PML’), alleging certain irregularities
in respect of the manner of allotment and pricing of certain plots under this project or payment of applicable fees
and charges by the Holding Company or the landowners, with respect to the terms and conditions mentioned in the
development policy of Haryana Development and Regulation of Urban Areas Act (HDRUAA), 1975 and the bilateral
SOBHA LIMITED
agreement between the land owners and Directorate of Town and Country Planning, Haryana (DTCP) resulting
in provisional attachment under the Prevention of Money Laundering Act, 2002 (‘PMLA’) of land parcels with value
of ₹ 2,016 disclosed under “Other non-current assets” in the accompanying consolidated financial statements, held
by Technobuild Developers Private Limited (‘TDPL’). The Holding Company has entered into a Memorandum of
Understanding (‘MoU’) with TDPL for acquiring land parcels using advances extended by the Holding Company. As per
the MoU, TDPL and its affiliates cannot transfer land parcels without prior approval of the Holding Company and the
Holding Company has absolute rights over land parcels acquired by TDPL and its affiliates acquired from such advance
given by the Holding Company.
As part of the inquiry process, the Holding Company and its officers have been asked to provide contracts, documents
and justification in respect of this transaction by the concerned authorities. The Holding Company and its officers have
been responding to the queries raised / documents sought from time to time. During the current quarter, the Holding
Company is in receipt of Show Cause Notice (SCN) under the PMLA from AA-PML and the Holding Company has duly
filed detailed responses to allegations made in SCN and the Holding Company is yet to receive the response from AA-
PML.
The management, based on its overall assessment and independent legal opinion obtained, believes that these
transactions have been carried out in accordance with all the applicable laws and regulations and the said bilateral
agreement and has not identified any adverse material impact to the consolidated financial statements as at 31 March
2023 or for earlier periods including the recoverability of land advance given against such provisionally attached ₹ 2,016
land parcels held through TDPL.
5 The Income Tax Department (“the Department”) conducted a Search activity (“the search”) under Section 132 of the
Income Tax Act (“the Search”) at various premises of the Company and certain group companies during March 2023.
The Company has provided all the necessary support and cooperation to the Income-tax officials during the search
and provided all the necessary information including documents and data sought by the Department. As on the date of
issuance of these financial statements, the Group has only received a notice u/s148 requiring the management to re-file
the Income Tax return for AY 2016-17.
While the uncertainty exist regarding the outcomes of the proceedings by the Department, the Company and certain
group companies after considering all available records and facts known to it, has not identified any adjustments to the
current or prior period consolidated financial statements at this stage.
6 During the current year, one of the customers of Sobha Assets Private Limited (SAPL), a wholly owned subsidiary of
the Group has terminated a project development contract entered by it and demanded compensation of ₹ 2,956 in
addition to forfeiture of a ₹ 227 performance guarantee and ₹ 26 of deposits alleging that SAPL has not commenced
the contract work. The carrying value of aforesaid project related assets/receivables as at 31 March 2023 in the books
of the Group and SAPL is ₹ 24 and ₹ 330 respectively. SAPL has filed a petition with the court of jurisdiction challenging
the termination and its grounds, and also filed a counter claim from the customer towards business losses and other
receivables. The Group based on its overall assessment and independent legal opinion, believes that the aforesaid
termination is illegal and will not have any adverse impact to the financial statements and accordingly no provision has
been made.
7 In the earlier year, the renewal of Fire Department 'no objection certificate' for one of the project procured by an
entrusted person, was found to be defective. On becoming aware of this fact, the Group immediately took remedial
steps and obtained renewed approvals, which were then re-submitted with the local body for regularization. During the
current year, the local body has cancelled the Occupancy Certificate (OC), against which the Group has filed an appeal
with Karnataka Appellate Tribunal challenging the cancellation of OC. The Karnataka Appellate Tribunal has ordered stay
on such cancellation order of the OC. The Group is working with the local body for resolution of the aforesaid matter.
The management is of the view that the aforementioned event shall not have a material impact on the consolidated
financial statements of the Group.

8 The Group is involved in certain litigations for lands being developed/ acquired by it for construction purposes, either
through a Joint Development Agreement or through outright purchases. These cases are pending with the Civil Courts
and scheduled for hearings. After considering the facts and circumstances of each case in detail, and post consideration
CONSOLIDATED
of the opinions of the in-house legal councel, management believes that these litigations will not have a material effect
on the consolidated financial statements.
9 Certain litigations have been filed on the Group by the forest department, Bangalore water supply and sewage board
(BWSSB) on certain real estate projects undertaken by the Group. Also, certain claims have been laid upon the Group
under the Land acquisition act, against which the Group has filed various writ petitions and obtained stay orders from
the honourable high court. The impact of all such litigations and claims is not quantifiable. These litigation/ claims are
pending with various courts and are scheduled for hearings. Based on internal assessment, and post consideration of
the opinion of its in-house legal councel, the management is confident that the matter would be decided in its favour,
accordingly no adjustment has been made in these consolidated financial statements.
10 In one of the subsidiaries, certain charges have been levied by the respective municipal authorities. The Group has
contested against the charges with Honourable High court of karnataka and obtained stay on the same. The group
management is confident that the matter would be decided in favour of the Group, accordingly no provision has been
made in this respect
SOBHA LIMITED
b. Commitments
(a) The contractual commitments pending for the acquisition of property, plant and equipment as at 31 March 2023 is ₹
250.03 (31 March 2022: ₹ 146.80)
(b) The Group has entered into an aircraft usage agreement with a party wherein the Group along with certain other
parties has committed minimum usage of aircraft. During the year ended 31 March 2023, the Group incurred ₹ 129.37 (31
March 2022 - ₹ 110.57) towards aircraft usage as per the agreement.
40 Fair value measurements
a. The carrying amounts of financial instruments by categories is as follows:
As at 31 March 2023 As at 31 March 2022 (Restated)
Particulars Note At cost Fair value At amortised At cost Fair value At amortised
through cost through cost
profit or loss profit or loss
Financial assets
Investments 9B - - 0.08 - - 0.18
Trade receivables 11 - - 2,375.34 - - 4,159.09
Loans 12 - - 9.00 - - 11.19
Cash and bank balances 15 & 16 - - 4,514.04 - - 1,783.09
Other financials assets 13 - - 5,094.11 - - 6,307.54
Total - - 11,992.57 - - 12,261.09
Borrowings 20 - - 20,035.49 - - 25,037.27
Trade payables 23 - - 5,986.75 - - 4,469.65
Other financial liabilities 21 - - 8,970.44 - - 7,578.02
Lease Liabilities 38 - - 232.81 - - 253.49
Total - - 35,225.49 - - 37,338.43
b.
Fair value hierarchy
The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities

Particulars Carrying Fair value Carrying Fair value
amount amount
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Investment Property (disclosure) 4,518.72 - 1,394.10 7,660.00 3,962.02 - - 7,546.00
4,518.72 - 1,394.10 7,660.00 3,962.02 - - 7,546.00
Notes:
CONSOLIDATED
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.
Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly or indirectly.
Level 3 inputs are unobservable inputs for the asset or liability.
There have been no transfers between the levels during the year.
Financial instruments carried at amortised cost such as trade receivables, cash and other financial assets, borrowings, trade
payables and other financial liabilities are considered to be same as their fair values, due to their short term nature. For financial
assets and liabilities that are measured at amortised cost, the carrying amounts are equal to the fair values.
SOBHA LIMITED
Valuation Method used for Level 3 Valuations -
Particulars Valuation Technique Unobservable input Relationship of unobservable input with fair value
Fair value of Income approach Discount rate Increase/decrease in discount rate would result in
Investment property (Discounted cash flow decrease/ increase in fair value
method)
Expected vacancy Increase/decrease in vacancy rate would result in
rates decrease/ increase in fair value
Rental growth rate Increase/decrease in rental growth rate would
result in increase/ decrease in fair value
41 Financial risk management
The Group’s principal financial liabilities comprise borrowings, trade payables and other financial liabilities. The
main purpose of these financial liabilities is to finance and support the Group’s operations. The Group’s principal
financial assets include instruments, trade and other receivables, cash and bank balances, land advances and
refundable deposits that derive directly from its operations. The Group has exposure to the following risks
arising from financial instruments
Risk Exposure arising from

Market Risk-Interest rate risk (A) Borrowings
Credit Risk (B) Trade receivables, cash and cash equivalents, bank balances, and
other deposits and investments
Liquidity Risk (C) Borrowings, trade payables, and other financial liabilities
Risk Management policy

The Group’s senior management oversees the management of these risks. The Group’s senior management
is supported by a risk management committee that advises on financial risks and the appropriate financial risk
governance framework for the Group. The risk management committee provides assurance to the Group’s
senior management that the Group’s financial risk activities are governed by appropriate policies and procedures
and that financial risks are identified, measured and managed in accordance with the Group’s policies and risk
objectives. The Board of Directors reviews and agrees policies for managing each of these risks.
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 two types of risk: interest rate risk and other price risk, such as
equity price risk and commodity/ real estate risk. The Group does not have a material foreign currency exposure
as at balance sheet date and hence, this risk is not applicable.
The sensitivity analysis in the following sections relate to the position as at 31 March 2023 and 31 March 2022.
The sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed to
floating interest rates of the debt. The analysis exclude the impact of movements in market variables on: the
carrying values of gratuity and other post retirement obligations; provisions.
CONSOLIDATED
The below assumption has been made in calculating the sensitivity analysis:
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks.
This is based on the financial assets and financial liabilities held at 31 March 2023 and 31 March 2022.
(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates
primarily to the Group’s long-term debt obligations with floating interest rates. The Group manages its interest
rate risk by having a balanced portfolio of fixed and variable rate of borrowings. The Group does not enter into
any interest rate swaps.
SOBHA LIMITED
Below is the overall exposure of the Group to interest rate risk:

Variable rate borrowings 19,356.81 25,037.27
Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that
portion of borrowings affected. With all other variables held constant, the Group’s profit before tax is affected
through the impact on floating rate borrowings, as follows:
Increase/ decrease in Effect on profit before

interest rate tax *
31 March 2023
INR +1% (199.27)
INR -1% 199.27
31 March 2022
INR +1% (250.11)
INR -1% 250.11
* determined on gross basis i.e. with out considering inventorisation of such borrowing cost.
(ii) Price risk

The Group’s exposure to price risk arises from investments held and classified in the balance sheet either as
fair value through other comprehensive income or at fair value through profit or loss. To manage the price risk
arising from investments, the Group diversifies its portfolio of assets. There are no investments held by the
Group which are measured at fair value either through profit and loss or fair value through other comprehensive
income, hence the Group is not exposed to price risk.
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 primarily from trade receivables (net of
advances/ payables), refundable joint development deposits, security deposits, loans and other financial assets
measured at amortised cost. The Group continuously monitors defaults of customers and other counterparties
and incorporates this information into its credit risk controls. The carrying amounts of financial assets, unbilled
renvenue and contract assets represent the maximum credit exposure.
The Group assesses and manages credit risk based on internal credit rating system. Internal credit rating is
performed for each class of financial instruments with different characteristics. The Group assigns the following
credit ratings to each class of financial contracts/assets based on the assumptions, inputs and factors specific
to the class of financial contracts/assets.
CONSOLIDATED
(a) Low credit risk
(b) Medium credit risk
(c) High credit risk
Based on business environment in which the Group operates, a default on a financial asset is considered when
the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting
defaults are based on actual credit loss experience and considering differences between current and historical
economic conditions.
SOBHA LIMITED
The Group provides for expected credit loss based on the following:
Category Asset class exposed to credit risk Allowance for expected credit loss
Low credit risk/ Loans, trade receivables (Category A and 12 Months expected credit loss or
medium credit risk B), cash and cash equivalents, other financial specific allowance whichever is higher
assets measured at amortised cost
High credit risk Trade receivables (Category C) Life time expected credit loss or
specific allowance
a. Management of Credit risk
i. Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only selecting highly rated
banks and diversifying bank deposits and accounts in different banks across the country.
ii. Trade receivables

The Group divides its receivables in the following categories based on the credit risk associated with such
categories
Category A - Receivables resulting from sale of properties: Customer credit risk is managed by requiring
customers to pay advances before transfer of ownership, therefore, substantially eliminating the Group’s
credit risk in this respect. Group recognises impairment on a specific identification basis for debtors where
no security exists.
Category B - Receivables from related parties: The Group performs construction services for its subsidiaries
which have individual real estate projects. Credit risk in such cases is managed as control is established; Also,
such subsidiaries manage their credit risks by requiring their customers to pay in advance, before transfer of
ownership. For other related parties, the Group actively manages such credit risk by an established process of
inter-party reconciliations, follow ups and active business at an arms length price.
Category C - Receivables resulting from other than sale of properties: Credit risk is managed by each
business unit (primarily pertaining to the contractual and manufacturing business subdivisions) subject to the
Group’s established policy, procedures and control relating to customer credit risk management. Outstanding
customer receivables are regularly monitored. The impairment analysis is performed at each reporting date
on an individual basis for major clients, who have a history of prompt payment for more than 5 years with
the Group. For other customers, impairment is tested collectively based on the business sub-segment in
which they operate. The maximum exposure to credit risk at the reporting date is the carrying value of each
class of financial assets. The Group does not hold collateral as security. The Group’s credit period generally
ranges from 30-90 days.
No single customer individually accounted for more than 10% of the trade receivable balance or more than 10%
of the revenue of the group as at 31 March 2023 and 31 March 2022.
iii. Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes refundable deposits paid under joint development
CONSOLIDATED
arrangements, security deposits, loans to related parties, and others. Credit risk related to these other financial
assets is managed by monitoring the recoverability of such amounts continuously, while at the same time
internal control system are in place ensure the amounts are within defined limits.
a. Recognition of Expected credit losses
i. Financial assets with credit risk classified as ‘low’/medium

Group provides for expected credit losses on financial assets other than trade receivables by assessing
individual financial instruments for expectation of any credit losses.
SOBHA LIMITED
For cash & cash equivalents, other bank balances and derivative financial instruments - Since the Group deals
with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, derivative
financial instruments, other bank balances and bank deposits is evaluated as very low.
For refundable deposits (RD) under joint development arrangements (JDA) and security deposits - Credit risk is
considered low because the Group is in possession of the underlying asset.
For trade receivables (category A and B) and other financial assets - Credit risk is evaluated based on Group’s
knowledge of the credit worthiness of those parties and loss allowance is measured. For such financial assets,
the Group policy is to provide for 12 month expected credit losses upon initial recognition and provide for
lifetime expected credit losses/ specific allowance upon significant increase in credit risk.
Particulars Note no. Gross Expected Expected Carrying

carrying probability credit amount net of
amount of default losses impairment
allowance
31 March 2023
Trade receivables (Category A and B) 11 345.95 0.00% 29.12 316.83
Loans 12 9.00 0.00% - 9.00
Refundable deposits under JDA 13 3,391.06 0.00% - 3,391.06
Unbilled Revenue 14 1,764.53 0.00% - 1,764.53
31 March 2022
Trade receivables (Category A and B) 11 1,469.34 0.00% 29.12 1,440.22
Loans 12 11.19 0.00% - 11.19
Refundable deposits under JDA 13 3,963.17 0.00% 50.55 3,912.62
Unbilled Revenue 14 3,361.68 0.00% - 3,361.68
ii. Financial assets with credit risk classified as ‘high’

For trade receivables (Category C) - The Group uses an allowance matrix to measure the expected credit losses
of such trade and finance receivables. The measurement is made collectively based on the business sub-
segment in which the respective customers operate. Loss rates are seperately measured for customers which
have a history of prompt payment, and are not significantly past due from payment. Based on the industry
practices and the business environment in which the entity operates, management considers that the trade
receivables and loans are in default (credit impaired) if the payments are more than 730 days past due (Net of
advances/ payables). Loss rates are based on actual credit loss experience over the past eleven quarters. In the
current year, the Group has revised its estimation of loss rates.
Expected credit losses measured on the simplified approach
31 March 2023 Weighted Gross carrying Loss Net carrying CONSOLIDATED

average loss amount Allowance amount after
rate loss allowance

91 - 180 days past due 10% 52.24 5.12 47.12
181 - 270 days past due 16% 110.93 17.23 93.71
271 - 360 days past due 25% 20.51 5.11 15.40
361 - 730 days past due 65% 91.00 59.07 31.93
SOBHA LIMITED
31 March 2022 Weighted Gross carrying Loss Net carrying

average loss amount Allowance amount after
rate loss allowance
91 - 180 days past due 8% 138.98 10.73 128.25
181 - 270 days past due 19% 92.47 17.11 75.36
271 - 360 days past due 21% 65.62 13.65 51.97
361 - 730 days past due 23% 175.56 39.54 136.02
Movement in allowance for credit losses of Trade receivables

Restated
Opening balance 347.11 304.62
Amounts written off (23.09) (0.54)
Net remeasurement of loss allowance 372.10 43.03
Closing balance 696.12 347.11
Movement in allowance for credit losses of others
Particulars Other financial assets

31 March 2023 31 March 2022
Restated
Opening balance 50.55 -
Amounts written off - -
Amounts written back (50.55) -
Net remeasurement of loss allowance - 50.55
Closing balance - 50.55
Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Group’s treasury department in
accordance with the Group’s policy. Investments of surplus funds are made only with approved counterparties
and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Group’s
Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the
Group’s Finance Committee. The limits are set to minimise the concentration of risks and therefore mitigate
financial loss through a counterparty’s potential failure to make payments. The Group’s maximum exposure to
credit risk for the components of the statement of financial position at 31 March 2023 and 31 March 2022 is the
carrying amounts.
CONSOLIDATED
C. Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
SOBHA LIMITED
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. The Group also has adequate credit facilities
agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a
timely and cost-effective manner
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use
of bank deposits and loans. The table below summarises the maturity profile of the Group’s financial liabilities
based on contractual undiscounted payments:
On demand Less than 1 to 5 years > 5 years Total

one year
31 March 2023

Other financial liabilities (refer note 21) 1.89 8,968.55 - - 8,970.44
6,323.35 20,650.35 9,461.74 2,168.53 38,603.97
31 March 2022

Other financial liabilities (refer note 21) 38.03 7,419.57 - - 7,457.60
6,158.64 20,637.64 11,799.02 2,340.17 40,935.47
CONSOLIDATED
SOBHA LIMITED
42 Capital management
For the purpose of the Group’s capital management, capital includes issued equity capital, share premium and all
other equity reserves attributable to the equity holders of the parent. The primary objective of the Group’s capital
management is to maximise the shareholder value.
The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Group monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Group includes within net debt and interest bearing
borrowings.
Borrowings (long-term and short-term) (Note 20) 20,035.49 25,037.27

Other financial liabilities (interest accrued but not due) (Note 21) 62.39 35.07
Net debt 20,097.88 25,072.34
Equity share capital (Note 17) 948.46 948.46
Other equity (Note 18) 23,998.25 23,280.67
Total capital 24,946.71 24,229.13
Capital and net debt 45,044.59 49,301.47

Gearing ratio 44.62% 50.86%
In order to achieve this overall objective, the Group's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have
been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2023
and 31 March 2022.
43 Assets pledged as security

The carrying amounts of assets pledged as security for current and non-current borrowings are:

A. Current
Financial assets
Cash and cash equivalents 82.17 76.37
Bank balance other than cash and cash equivalents 39.88 86.38
Inventories 42,332.90 37,726.43

Other assets 1,529.13 3,047.73
Total current assets pledged as securities 46,208.72 43,214.29
CONSOLIDATED
B. Non-current Assets
Property, plant and equipment 433.79 748.91
Investment property 3,427.05 3,497.30
Financial assets
Other financial assets
Fixed deposits with banks with maturity more than 12 months 64.81 75.76
Total non-current assets pledged as securities 3,925.65 4,321.97
Total assets pledged as security 50,134.37 47,536.26

SOBHA LIMITED
44 Additional information pursuant to para 2 of general instructions for the preparation of the consolidated financial
statements for year ended 31 March 2023 and 31 March 2022
31 March 2023
Net assets Share in profit or loss Share in OCI Share in total comprehensive
income
Name of the entity % of consolidated
% of % of % of
total
consolidated Amount consolidated Amount consolidated Amount Amount
comprehensive
net assets profit or loss OCI
income
Parent
Sobha Limited 79.51% 23,410.68 82.99% 952.89 100.00% (39.93) 82.38% 912.96
Subsidiaries
Indian
Sobha City ['Partnership firm'] 6.04% 1,777.73 1.64% 18.79 0.00% - 1.70% 18.79
Vayaloor Properties Private Limited 0.01% 2.07 0.00% - 0.00% - 0.00% -
Vayaloor Builders Private Limited 0.01% 3.44 0.00% - 0.00% - 0.00% -
Vayaloor Developers Private Limited 0.01% 3.33 0.00% - 0.00% - 0.00% -
Vayaloor Real Estate Private Limited 0.01% 3.91 0.04% 0.47 0.00% - 0.04% 0.47
Vayaloor Realtors Private Limited 0.00% 0.69 0.00% (0.01) 0.00% - 0.00% (0.01)
Valasai Vettikadu Realtors Private Limited 0.00% 1.47 0.00% - 0.00% - 0.00% -
Sobha Developers (Pune) Limited 7.32% 2,156.57 1.52% 17.41 0.00% - 1.57% 17.41
Sobha Assets Private Limited 0.00% 0.89 0.03% 0.32 0.00% - 0.03% 0.32
Sobha Highrise Ventures Private Limited 2.16% 637.31 -3.87% (44.39) 0.00% - -4.01% (44.39)
Sobha Interiors Private Limited -0.07% (19.61) 0.49% 5.67 0.00% - 0.51% 5.67
Sobha Construction Products Private Limited 0.04% 10.64 0.04% 0.42 0.00% - 0.04% 0.42
Sobha Contracting Private Limited -0.01% (1.86) -0.03% (0.30) 0.00% - -0.03% (0.30)
Sobha Nandambakkam Developers Limited 0.18% 53.53 0.77% 8.82 0.00% - 0.80% 8.82
Sobha Tambaram Developers Limited 0.40% 117.92 1.28% 14.68 0.00% - 1.32% 14.68
Kilai Builders Private Limited 0.59% 173.26 15.11% 173.44 0.00% - 15.65% 173.44
Kuthavakkam Builders Private Limited -0.06% (18.77) 0.00% (0.03) 0.00% - 0.00% (0.03)
Kuthavakkam Realtors Private Limited -0.06% (17.66) 0.00% (0.03) 0.00% - 0.00% (0.03)
Joint ventures (Investment as per the equity method)
Kondhwa Projects LLP 3.90% 1,149.33 0.00% - 0.00% - 0.00% -
Associates
C.V.S.Tech Park Private Limited 0.00% 0.05 0.00% - 0.00% - 0.00% -
Sub total 100.00% 29,444.92 100.00% 1,148.15 100.00% (39.93) 100.00% 1,108.22
Adjustments arising out of consolidation (4,498.21) (106.10) - (106.10)

Total 24,946.71 1,042.05 (39.93) 1,002.12
347
CONSOLIDATED
CONSOLIDATED
348
SOBHA LIMITED
44 Additional information pursuant to para 2 of general instructions for the preparation of the consolidated financial
statements for year ended 31 March 2023 and 31 March 2022 (continued)
31 March 2022
Net assets Share in profit or loss Share in OCI Share in total comprehensive
income
Name of the entity % of consolidated
% of % of % of
total
consolidated Amount consolidated Amount consolidated Amount Amount
comprehensive
net assets profit or loss OCI
income
Parent
Sobha Limited 79.70% 22,782.26 94.51% 1,691.48 100.00% (9.01) 94.48% 1,682.47
Subsidiaries
Indian
Sobha City ['Partnership firm'] 5.83% 1,665.58 0.72% 12.95 0.00% - 0.73% 12.95
Vayaloor Properties Private Limited 0.01% 2.07 0.00% - 0.00% - 0.00% -
Vayaloor Builders Private Limited 0.01% 3.44 0.00% 0.01 0.00% - 0.00% 0.01
Vayaloor Developers Private Limited 0.01% 3.33 0.00% - 0.00% - 0.00% -
Vayaloor Real Estate Private Limited 0.01% 3.44 0.00% - 0.00% - 0.00% -
Vayaloor Realtors Private Limited 0.00% 0.69 0.00% - 0.00% - 0.00% -
Valasai Vettikadu Realtors Private Limited 0.01% 1.47 0.00% - 0.00% - 0.00% -
Sobha Developers (Pune) Limited 7.49% 2,140.06 1.22% 21.86 0.00% - 1.23% 21.86
Sobha Assets Private Limited 0.00% 0.57 0.04% 0.63 0.00% - 0.04% 0.63
Sobha Highrise Ventures Private Limited 2.38% 681.66 1.51% 26.99 0.00% - 1.52% 26.99
Sobha Interiors Private Limited 0.11% 32.61 0.26% 4.66 0.00% - 0.26% 4.66
Sobha Construction Products Private Limited 0.04% 10.23 0.02% 0.38 0.00% - 0.02% 0.38
Sobha Contracting Private Limited -0.01% (1.56) -0.01% (0.20) 0.00% - -0.01% (0.20)
Sobha Nandambakkam Developers Limited 0.16% 44.72 0.19% 3.35 0.00% - 0.19% 3.35
Sobha Tambaram Developers Limited 0.36% 103.24 1.10% 19.65 0.00% - 1.10% 19.65
Kilai Builders Private Limited 0.00% (0.18) -0.01% (0.21) 0.00% - -0.01% (0.21)
Kuthavakkam Builders Private Limited -0.07% (18.74) 0.00% (0.03) 0.00% - 0.00% (0.03)
Kuthavakkam Realtors Private Limited -0.06% (17.64) 0.46% 8.20 0.00% - 0.46% 8.20
Joint ventures (Investment as per the equity method)
Kondhwa Projects LLP 4.02% 1,149.33 0.00% - 0.00% - 0.00% -
Associates
C.V.S.Tech Park Private Limited 0.05 - -
Sub total 100.00% 28,586.63 100.00% 1,789.72 100.00% (9.01) 100.00% 1,780.71
Adjustments arising out of consolidation (4,357.50) (57.82) - (57.82)
Total 24,229.13 1,731.90 (9.01) 1,722.89
SOBHA LIMITED
45 Restatement
The financial statements for the previous reporting years were restated for correction of certain items in
accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors which are described
in more detailed as below:
(i) The Group had accrued for notional interest on advance from customers involving sale of real estate unit and
had capitalised such interest to project cost. However, the Group received such consideration in accordance
with the terms of the contract in proportion to the completion of such real estate project and accordingly does
not involve any significant financing element.
(ii) The Group has restated the accounting for revenue from the development and transfer of constructed area/
revenue sharing arrangement in exchange of such development rights acquired under Joint Development
Arrangement (JDAs) [not being jointly controlled operations] on gross basis in accordance with guidance on
‘non-cash consideration’ under Ind AS 115, Revenue from Contract with Customer.
(iii) The Group has restated the capitalisation of borrowing cost on lands and land advances wherein no
significant development activity had commenced and projects wherein substantially all activities necessary for
their sale had been completed to capitalise appropriate borrowing cost and other directly attributable project
cost to projects under construction in accordance with relevant Ind AS.
(iv) rectification of certain other items pertaining to (a) accounting of construction contracts, other operating
income and expense (b) right of use asset (c) discounting of retention money and (d) reclassification of
borrowings. Consequential impact of deferred tax has been recorded on these adjustments.
The effect of restatement on financial statement line items for the prior years as follow:
Balance sheet as at 01 April 2021
Particulars Note As previously Rectification Restated

reported of error
Assets
Goodwill (Included under Intangible assets) (iv) 223.32 (50.42) 172.90
CONSOLIDATED
Other current financial assets (iii) 5,718.07 83.87 5,801.94
Equity
Other equity (i), (ii), (iv) 23,328.89 (1,439.15) 21,889.74
SOBHA LIMITED

reported of error
Liabilities
Current borrowings (iv) 26,396.34 420.00 26,816.34
Balance sheet as at 31 March 2022

reported of error
Assets
Goodwill (Included under Intangible assets) (iv) 222.09 (50.42) 171.67
Loans (iv) - 11.19 11.19
Other current financial assets (iii) 4,884.91 8.58 4,893.49
Equity
Other equity (i), (ii), (iv) 24,156.75 (876.08) 23,280.67
Liabilities
Non-current borrowings (iv) 7,277.05 (3,629.13) 3,647.92
CONSOLIDATED
Current borrowings (iv) 17,252.46 4,136.89 21,389.35

SOBHA LIMITED
Statement of consolidated profit and loss for the year ended 31 March 2022

reported of error
Revenue from operations (i), (ii), (iv) 27,308.60 (1,696.00) 25,612.60

Other income (iv) 907.15 (67.48) 839.67
Land purchase cost (ii) 1,960.18 111.89 2,072.07

Changes in purchase of project materials, land (i), (ii), (iii) (3,152.93) 1,619.51 (1,533.42)
stock, work in progress and finished goods
Employee benefits expense (iv) 2,294.47 217.49 2,511.96
Finance cost (i), (iii) 7,498.25 (4,415.00) 3,083.25
Depreciation and amortization expense (iv) 720.09 (1.82) 718.27
Other expenses (iv) 3,724.07 (80.20) 3,643.87
Profit before tax 1,581.60 784.65 2,366.25

Tax expenses (i), (ii), (iii), (iv) 412.77 221.58 634.35
Total comprehensive income for the year 1,159.82 563.07 1,722.89
Basic and Diluted EPS 12.32 5.95 18.27
Consolidated Statement of cash flows for the year ended 31 March 2022

reported of error
Net cash from operating activities (iv) 8,213.88 50.68 8,264.56
Net cash flows from financing activities (iv) (8,842.73) (50.68) (8,893.41)
46 Derivative instruments and unhedged foreign currency exposure
Foreign currency exposure that are not hedged by derivative instruments

or otherwise:
Trade payables 50.71 24.78
47 Additional regulatory information pursuant to the requirement in Division II of CONSOLIDATED

Schedule III to the Companies Act 2013
(i) The Group does not have any Benami property, where any proceeding has been initiated or pending against
the Group for holding any Benami property.
(ii) The Group does not have any transactions with companies struck off.
(iii) The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
SOBHA LIMITED
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(v) The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Group shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vi) The Group has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
(vii) The Group does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(viii) The Group has complied with number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
48 As the Group is engaged in providing infrastructural facilities as specified in Schedule VI of the Act, provisions
of section 186 except sub-section (1) of the Act are not applicable to the Group.
49 No material events have occurred between the Balance Sheet date to the date of issue of these consolidated
financial statements that could affect the values stated in the financial statements as at 31 March 2023.
As per our report of even date attached
Partner
Yogesh Bansal Vighneshwar G Bhat
Chief Financial Officer Company Secretary and Compliance
Officer ACS16651
Bengaluru Bengaluru
29 May 2023 29 May 2023
CONSOLIDATED
Form AOC – I
(Pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of Subsidiaries, Associate Companies / Joint Ventures
Part “A”: Subsidiaries
Particulars Sobha Sobha Sobha Sobha Sobha Sobha Sobha Kilai Builders Sobha Kuthavakkam Kuthavakkam
Developers Highrise Assets Tambaram Nandambakkam Construction Contracting Private Interiors Builders Realtors
(Pune) Ventures Private Developers Developers Products Private Limited** Private Private Private
Limited Private Limited Limited Limited Private Limited* Limited** Limited** Limited**
Limited Limited
Reporting Period 2022-23 2022-23 2022-23 2022-23 2022-23 2022-23 2022-23 2022-23 2022-23 2022-23 2022-23
Reporting ₹ in million ₹ in million ₹ in million ₹ in million ₹ in million ₹ in million ₹ in million ₹ in million ₹ in million ₹ in million ₹ in million
Currency
Share Capital 0.526 206.00 0.100 0.500 0.500 10.000 0.100 0.500 6.000 0.500 0.500
Reserve and 2,156.044 508.30 0.790 117.419 53.534 0.642 (1.960) 172.764 (25.611) (19.268) (18.165)
Surplus
Total Assets 2,347.827 1,885.66 337.088 142.609 71.863 10.649 1,403.997 267.798 130.590 75.567 125.087
Total Liabilities 191.257 1,248.36 336.198 24.690 18.329 0.007 1,405.857 94.534 150.201 94.335 142.752
Investments 1,706.591 - - - - - - - 119.384 - -
Turnover 25.561 168.12 0.464 30.630 23.259 0.554 - 433.267 14.039 - -
Profit before 23.221 (58.73) 0.437 19.709 11.813 0.540 (0.297) 232.121 7.917 (0.027) (0.030)
Taxation
Provision for 5.813 (14.37) 0.113 5.030 2.996 0.124 - 58.677 2.249 - -
Taxation
Profit after 17.408 (44.36) 0.324 14.679 8.817 0.416 (0.297) 173.444 5.668 (0.027) 0.030
Taxation
Proposed - - - - - - - - - - -
Dividend
% Share Holding 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
*Sobha Contracting Private Limited is a wholly owned subsidiary of Sobha Highrise Ventures Private Limited. Hence a stepdown subsidiary of Sobha Limited
**Kilai Builders Private Limited, Sobha Interiors Private Limited, Kuthavakkam Builders Private Limited and Kuthavakkam Realtors Private Limited are wholly owned subsidiary of Sobha Developers
(Pune) Limited. Hence, stepdown subsidiaries of Sobha Limited.
Note:
1. Names of subsidiaries which are yet to commence business: None.

2. Names of subsidiaries which have been liquidated or sold during the year : None.
353
CONSOLIDATED
Part “B”: Subsidiaries

Particulars Sobha City Valasai Vayaloor Prop- Vayaloor Re- Vayaloor Real Vayaloor De- Vayaloor Build-
(Partnership Vettikadu erties Private altors Private Estate Private velopers Pri- ers Private
firm)* Realtors Private Limited** Limited** Limited** vate Limited** Limited**
Limited**
Reporting Period 2022-23 2022-23 2022-23 2022-23 2022-23 2022-23 2022-23
Reporting Currency ₹ in million ₹ in million ₹ in million ₹ in million ₹ in million ₹ in million ₹ in million
Share Capital/ 400*** 0.100 0.100 0.100 0.100 0.100 0.100
Partner's capital
Reserve and 1,377.726 1.369 1.970 0.585 3.808 3.228 3.341
Surplus
Total Assets 3,320.347 1.502 2.107 5.996 4.020 3.367 3.476
Total Liabilities 1,542.621 0.033 0.037 5.311 0.112 0.039 0.035
Investments 0.600 - - - - - -
Turnover 350.071 0.006 0.011 0.002 0.645 0.013 0.019
Profit before 28.448 (0.002) 0.001 (0.007) 0.636 0.003 -
Taxation
Provision for 9.661 - - - 0.116 - -
Taxation
Profit after Taxation 18.787 (0.002) 0.001 (0.007) 0.470 0.003 -
Proposed Dividend - - - - - - -
% Share Holding 100% 100% 100% 100% 100% 100% 100%
* Sobha City* (Partnership firm) is having 100% Investment of Sobha Limited.

** Sobha City Firm Holding 100% equity shares of the Valasai Vettikadu Realtors Private Limited, Vayaloor Properties Private Limited, Vayaloor
Realtors Private Limited, Vayaloor Real Estate Private Limited, Vayaloor Developers Private Limited, and Vayaloor Builders Private Limited.
*** ₹ 400 million [Partner's capital ₹ 400 million includes Partner's capital namely Sobha Limited and Sobha Developers(Pune) Limited].
Note:
1. Names of subsidiaries which are yet to commence business: None
2. Names of subsidiaries which have been liquidated or sold during the year: None
Part “C”: Associates and Joint Ventures

CVS Tech Park Private Limited, an associate of Sobha Limited was incorporated on 5th March, 2018.
Particulars CVS Tech Park Private Limited

Reporting Period 2022-23
Reporting Currency ₹ in million
Share Capital 0.10
Reserve and Surplus -
Total Assets 0.10
Total Liabilities 0.10
Investments -
Turnover -
Profit before Taxation -
Provision for Taxation -

Profit after Taxation -
Proposed Dividend -
CONSOLIDATED
% Share Holding 49%
Sd/- Sd/-
Ravi PNC Menon Jagadish Nangineni
DIN: 02070036 DIN: 01871780
Bengaluru,
29 May 2023
NOTICE OF ANNUAL GENERAL MEETING

NOTICE is hereby given that the Twenty Eighth “RESOLVED THAT in accordance with
Annual General Meeting of the Members of the provisions of Section 152 and other
Sobha Limited will be held on Tuesday, the applicable provisions of the Companies
8th August, 2023 at 3:00 PM through Video Act, 2013, Mr. Jagadish Nangineni
Conferencing (“VC”) / Other Audio Visual Means (DIN: 01871780), who retires by rotation at
(“OAVM”) to transact the following business: this meeting, be and is hereby appointed as
a Director of the Company.”
ORDINARY BUSINESS:
SPECIAL BUSINESS:
1. To receive, consider and adopt:
4. Ratification of remuneration payable to
(a) The standalone financial statements Cost Auditors:
of the Company which includes
the Audited Balance Sheet as at To consider and if thought fit, to pass with
March 31, 2023, the Statement of Profit or without modification(s), the following
resolution as an Ordinary Resolution:
and Loss for the financial year ended
as on that date and the Cash Flow “RESOLVED THAT pursuant to Section
Statement together with reports of the 148 and other applicable provisions, if
Board of Directors and the Statutory any, of the Companies Act, 2013 read
Auditors thereon. with Rule 14 of the Companies (Audit
and Auditors) Rules, 2014, including any
(b) The consolidated financial statements
amendment or re-enactment thereof and
of the Company which includes
any other law for the time being in force, the
the Audited Balance Sheet as at approval of the members of the Company
March 31, 2023, the Statement of Profit be and is hereby accorded for the payment
and Loss for the financial year ended of remuneration not exceeding ₹185,000
as on that date and the Cash Flow (Rupees One lakh and eighty five thousand
Statement together with reports of the only) plus reimbursement of out of pocket
Statutory Auditors thereon. expenses and taxes as may be applicable
2. To declare a dividend on equity shares for from time to time to M/s. Srinivas and
the financial year ended March 31, 2023 and Co., Cost Accountants (Firm Registration
in this regard, to consider and if thought No: 000278), the Cost Auditors of the
Company for the financial year 2022-23.
fit, to pass with or without modification(s),
the following resolution as an Ordinary RESOLVED FURTHER THAT any of the
Resolution: Directors or the Company Secretary and
Compliance Officer of the Company be
“RESOLVED THAT a dividend at the rate
and are hereby severally authorised to do
of ₹3.00/- (Three rupees only) per equity
all such acts, deeds, things, matters, and
share of ₹10/- (Ten rupees) each fully
to execute all such documents as may be
paid-up of the Company, as recommended
required to give effect to this Resolution.”
by the Board of Directors, be and is hereby
declared for the financial year ended 5. Issue of Non-Convertible Debentures on
March 31, 2023 and the same be paid out private placement basis:
of the profits of the Company.” To consider, and if thought fit, to pass with
3. To appoint a Director in place of or without modification(s), the following
Mr. Jagadish Nangineni (DIN: 01871780), resolution as a Special Resolution:
who retires by rotation as a Director and “RESOLVED THAT pursuant to the
ANNUAL GENERAL MEETING
in this regard, to consider and if thought provisions of Section 42, 71 and other
fit, to pass with or without modification(s), applicable provisions, if any, of the
the following resolution as an Ordinary Companies Act, 2013, relevant rules made
Resolution: thereunder and any other law for the
time being in force and the provisions RESOLVED FURTHER THAT for the purpose
contained in the Memorandum and Articles of giving effect to the above resolution, the
of Association of the Company, Securities members hereby authorise the Board of
and Exchange Board of India (Issue and Directors to do all such acts, deeds, matters
Listing of Non-Convertible Securities) and things, settle all question, difficulties
Regulations 2021, the guidelines issued or doubts that may arise in regard to the
by the Securities and Exchange Board of issue or allotment of such Debentures,
India (SEBI), and subject to the approval, utilisation of the issue proceeds and to do
permissions and sanctions of the lenders all acts, deeds and things in connection
of the Company, SEBI, Stock Exchanges, therewith and incidental thereto as the
Reserve Bank of India (RBI), Government Board of Directors may in its absolute
of India and other concerned authorities, discretion deem fit without being required
as may be necessary and subject to to seek any further consent or approval of
such conditions and modifications as may the members or otherwise to the end and
be prescribed or imposed by any of the intent that they shall be deemed to have
aforementioned authorities while granting given their approval thereto expressly by
such approvals, permissions and sanctions, the authority of this resolution.”
which may be agreed to by the Board of
Directors of the Company, the approval of
By Order of the Board of Directors
the members be and is hereby accorded
For Sobha Limited
to the Board of Directors of the Company
to offer or invite subscription for secured Sd/-
or unsecured redeemable non-convertible Place : Bangalore Vighneshwar G Bhat
debentures including but not limited to other Date : 29th May, 2023 Company Secretary
debt securities, in one or more series or & Compliance Officer
tranches, aggregating up to ₹7,000,000,000
(Rupees Seven hundred crores only), on a Registered Office:
private placement basis, on such terms and SOBHA,
conditions as the Board of Directors may, Sarjapur-Marathahalli Outer Ring Road,
from time to time, determine and consider Bellandur Post, Bangalore – 560 103.
proper and beneficial to the Company. CIN: L45201KA1995PLC018475
NOTES:
1. Pursuant to General Circular 10/2022 dated 28th December 2022, issued by the Ministry of Corporate
Affairs (MCA) and SEBI/HO/CFD/PoD-2/P/CIR/2023/4 dated 5th January 2023 issued by the Securities
and Exchange Board of India (hereinafter collectively referred to as ‘Circulars’), the Annual General
Meeting (“AGM”) of the Company is convened through Video Conferencing / Other Audio-Visual
Means (VC/OAVM).
2. In terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
Secretarial Standards issued by the Institute of Company Secretaries of India, additional information
on directors seeking appointment/ re-appointment is provided separately.
3. Statement pursuant to the provisions of Section 102(1) of the Companies Act, 2013 is annexed hereto
and forms part of this Notice.
4. SINCE THIS AGM IS BEING HELD PURSUANT TO THE CIRCULARS THROUGH VC / OAVM, PHYSICAL
ATTENDANCE OF MEMBERS HAS BEEN DISPENSED WITH. ACCORDINGLY, THE FACILITY FOR
APPOINTMENT OF PROXIES BY THE MEMBERS WILL NOT BE AVAILABLE FOR THE AGM AND
HENCE, THE PROXY FORM AND ATTENDANCE SLIP ARE NOT ANNEXED TO THIS NOTICE.
5. Since the AGM being held through VC/OAVM, the Route Map, Attendance Slip and proxy form are
not attached to this Notice.
VOTING THROUGH ELECTRONIC MEANS AND PARTICIPATION AT THE ANNUAL GENERAL MEETING
6. In terms of Section 108 of the Companies Act, 2013 read with the Companies (Management and
Administration) Rules, 2014 (including any statutory modification or re-enactment thereof for the
time being in force), listed companies are required to provide members with the facility to exercise
their votes at general meetings through electronic means. The Company has availed the services
of M/s. Link Intime India Private Limited (Link Intime) for providing the necessary remote e-Voting
platform to the members of the Company.
7. Members may note that the Notice of the Twenty Eighth Annual General Meeting and the Annual
Report 2023 will be available on the Company’s website: www.sobha.com The Notice of Annual
General Meeting shall also be available on the website of M/s. Link Intime India Private Limited. The
Company has published a Public Notice by way of advertisement in a Kannada newspaper and in an
English newspaper with the required details of 28th AGM, for information of the Members.
8. The e-voting period shall commence on Saturday, the 5th Day of August, 2023 at 9:00 AM
and ends on Monday, 7th August, 2023 at 5.00 PM. Once the vote on a resolution is cast by a
shareholder, it cannot be changed subsequently.
9. Members who have acquired the shares of the Company after the dispatch of the Notice of Annual
General Meeting and whose names appear in the Register of Members of the Company or in the
Register of Beneficial owners maintained by the depositories as on the cut-off date i.e. Tuesday,
August 01, 2023 will be eligible to cast their vote through remote e-Voting.
10. The Board of Directors has appointed Mr. Nagendra D Rao, Practising Company Secretary
(Membership No. 5553, COP No. 7731) and in his absence Mr. Natesh K, Practising Company Secretary
(Membership No. 6835, COP No. 7277) as the Scrutinizer for conducting the remote e-voting and
e-Voting during the AGM in accordance with law and in a fair and transparent manner. The Scrutinizer
shall within a period of 2 working days from the conclusion of the annual general meeting, prepare a
Consolidated Scrutinizer’s Report of the votes cast in favour or against, if any, and submit it forthwith
to the Chairman of the Company.
11. The Results declared along with the Scrutinizer’s Report shall be placed on the website of the
Company and on the website of Link Intime.
12. The voting rights of Members shall be in proportion to their shares in the paid-up equity share capital
of the Company as on the cut-off date.
13. The details of the process and manner for remote e-voting are explained herein below:
Login method for Individual shareholders holding securities in demat mode is given below:
Type of shareholders Login Method
Individual 1. Existing IDeAS user can visit the e-Services website of NSDL viz. https://
Shareholders holding eservices.nsdl.com either on a personal computer or on a mobile. On the
securities in demat e-Services home page click on the “Beneficial Owner” icon under “Login”
mode with NSDL: which is available under ‘IDeAS’ section, this will prompt you to enter
your existing User ID and Password. After successful authentication, you
will be able to see e-Voting services under Value added services. Click
on “Access to e-Voting” under e-Voting services and you will be able to
see e-Voting page. Click on company name or e-Voting service provider
name i.e. LINKINTIME and you will be re-directed to “InstaVote” website for
casting your vote during the remote e-Voting period.
2. If you are not registered for IDeAS e-Services, option to register is available
at https://eservices.nsdl.com Select "Register Online for IDeAS Portal” or
click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
3. Visit the e-Voting website of NSDL. Open web browser by typing the
following URL: https://eservices.nsdl.com either on a personal computer
or on a mobile. Once the home page of e-Voting system is launched,
click on the icon "Login" which is available under 'Shareholder/Member'
section. A new screen will open. You will have to enter your User ID (i.e.
your sixteen-digit demat account number hold with NSDL), Password/
OTP and a Verification Code as shown on the screen. After successful
authentication, you will be redirected to NSDL Depository site wherein
you can see e-Voting page. Click on company name or e-Voting service
provider name i.e. LINKINTIME and you will be redirected to “InstaVote”
website for casting your vote during the remote e-Voting period.
Individual 1. Users who have opted for CDSL Easi/Easiest facility, can login through their
Shareholders holding existing user id and password. The option will be made available to reach
securities in demat e-Voting page without any further authentication. The users to login Easi
mode with CDSL: / Easiest are requested to visit CDSL website www.cdslindia.com and click
on login icon & New System Myeasi Tab and then use your existing my easi
username & password.
2. After successful login of Easi/Easiest the user will be able to see the
e-Voting Menu. The Menu will have links of e-Voting service provider i.e.
LINKINTIME. Click on LINKINTIME and you will be redirected to “InstaVote”
website for casting your vote during the remote e-Voting period.
3. If the user is not registered for Easi/Easiest, the option to register is
available at CDSL website www.cdslindia.com and click on login & New
System Myeasi Tab and then click on registration option.
4. Alternatively, the user can directly access e-Voting page by providing demat
account number and PAN No. from a link in www.cdslindia.com home page.
The system will authenticate the user by sending OTP on registered Mobile
& Email as recorded in the demat Account. After successful authentication,
user will be provided links for the respective ESP i.e. LINKINTIME. Click on
LINKINTIME and you will be redirected to “InstaVote” website for casting
your vote during the remote e-Voting period.
Individual 1. You can also login using the login credentials of your demat account through
Shareholders (holding your Depository Participant registered with NSDL/CDSL for e-Voting facility.
securities in demat
2. Upon logging in, you will be able to see e-Voting option. Click on e-Voting
mode) login through
option, you will be redirected to NSDL/CDSL Depository site after successful
their depository
authentication, wherein you can see e-Voting feature. Click on company
participants:
name or e-Voting service provider name i.e. LINKINTIME and you will be
redirected to “InstaVote” website for casting your vote during the remote
e-Voting period.
Login method for Individual shareholders holding securities in physical form/Non-Individual

Shareholders holding securities in Demat mode is given below:
Individual Shareholders of the Company, holding shares in physical form/ Non-Individual Shareholders
holding securities in Demat mode as on the cut-off date for e-Voting may register for e-Voting facility of
Link Intime as under:
1. Open the internet browser and launch the URL: https://instavote.linkintime.co.in
2. Click on “Sign Up” under ‘SHARE HOLDER’ tab and register with your following details: -
A. User ID: Shareholders holding shares in physical form shall provide - Your Event No + Folio
Number registered with the Company. Share holders holding shares in NSDL Demat account shall
provide 8 character DPID followed by 8 digit Client ID; shareholders holding shares in CDSL Demat
account shall provide 16 digit Beneficiary ID.

B. PAN: Enter your 10-digit Permanent Account Number PAN, Shareholders who have not updated
their PAN with the Depository Participant (DP)/Company shall use the sequence number provided
to you, if applicable.
C. DOB/DOI: Enter the Date of Birth (DOB/Date of Incorporation (DOI) (As recorded with your DP/
Company - in DD/MM/YYYY format)
D. Bank Account Number: Enter your Bank Account Number (last four digits), as recorded with your
DP/Company.
Note: Shareholders/members holding shares in physical form but have not recorded ‘C’ and ‘D’, shall
provide their Folio number in ‘D’ above. Shareholders holding shares in NSDL form shall provide 'D'
above.
– Set the password of your choice (The password should contain minimum 8 characters, at least
one special Character (@!#$&*), at least one numeral, at least one alphabet and at least one
capital letter).
– Click “confirm” (Your password is now generated).
3. Click on ‘Login’ under ‘SHARE HOLDER’ tab.
4. Enter your User ID, Password and Image Verification (CAPTCHA) Code and click on ‘Submit’.
Cast your vote electronically:

1. After successful login, you will be able to see the notification for e-Voting. Select ‘View’ icon.
2. E-Voting page will appear.
3. Refer the Resolution description and cast your vote by selecting your desired option ‘Favour/Against’
(If you wish to view the entire Resolution details, click on the ‘View Resolution’ file link).
4. After selecting the desired option i.e. Favour/Against, click on ‘Submit’. A confirmation box will be
displayed. If you wish to confirm your vote, click on ‘Yes’, else to change your vote, click on ‘No’ and
accordingly modify your vote.
Guidelines for Institutional shareholders:

Institutional shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on
the e-Voting system of LIIPL at https://instavote.linkintime.co.in and register themselves as ‘Custodian/
Mutual Fund/Corporate Body’. They are also required to upload a scanned certified true copy of the board
resolution/authority letter/power of attorney etc. together with attested specimen signature of the duly
authorised representative(s) in PDF format in the ‘Custodian/Mutual Fund/Corporate Body’ login for the
Scrutinizer to verify the same.
Helpdesk for Individual Shareholders holding securities in physical mode/ Institutional shareholders:
Shareholders facing any technical issue in login may contact Link Intime INSTAVOTE helpdesk by sending
a request at enotices@linkintime.co.in or contact on: - Tel: 022 – 4918 6000.
Helpdesk for Individual Shareholders holding securities in demat mode:

Individual Shareholders holding securities in demat mode may contact the respective helpdesk for any
technical issues related to login through Depository i.e. NSDL and CDSL.
Login type Helpdesk details

Individual Shareholders Members facing any technical issue in login can contact NSDL helpdesk
holding securities in demat by sending a request at evoting@nsdl.co.in or call at: 022 - 4886 7000
mode with NSDL and 022 - 2499 7000
Individual Shareholders Members facing any technical issue in login can contact CDSL helpdesk
holding securities in demat by sending a request at helpdesk.evoting@cdslindia.com or contact at toll
mode with CDSL free no. 1800 22 55 33
Individual Shareholders holding securities in Physical mode has forgotten the password:
If an Individual Shareholders holding securities in Physical mode has forgotten the USER ID [Login ID] or
Password or both, then the shareholder can use the “Forgot Password” option available on the e-Voting
website of Link Intime: https://instavote.linkintime.co.in
– Click on ‘Login’ under ‘SHARE HOLDER’ tab and further Click ‘forgot password?’
– Enter User ID, select Mode and Enter Image Verification code (CAPTCHA). Click on “SUBMIT”.
In case shareholders is having valid email address, Password will be sent to his/her registered e-mail
address. Shareholders can set the password of his/her choice by providing the information about the
particulars of the Security Question and Answer, PAN, DOB/DOI, Bank Account Number (last four digits)
etc. as mentioned above. The password should contain minimum 8 characters, at least one special
character (@!#$&*), at least one numeral, at least one alphabet and at least one capital letter.
User ID for Shareholders holding shares in Physical Form (i.e. Share Certificate): Your User ID is Event
No + Folio Number registered with the Company.
Individual Shareholders holding securities in demat mode with NSDL/CDSL has forgotten the
password:
Shareholders who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget
Password option available at abovementioned depository/ depository participants website.
– It is strongly recommended not to share your password with any other person and take utmost care to
keep your password confidential.
– For shareholders/members holding shares in physical form, the details can be used only for voting on
the resolutions contained in this Notice.
– During the voting period, shareholders/members can login any number of time till they have voted on
the resolution(s) for a particular “Event”.
General Guidelines:
1. Institutional Shareholders (i.e., other than individuals, HUF, NRI etc.) are required to send a scanned
copy (PDF/JPG format) of the Board Resolution/Authority Letter together with an attested specimen
signature of the duly authorised signatory(ies) who are authorized to vote, to the Scrutinizer through
E-mail: nagendradrao@gmail.com with a copy marked to enotices@linkintime.co.in Thereafter,
members are requested to follow the steps mentioned above to cast their vote.
2. Shareholders can update their mobile numbers and e-mail IDs with M/s Linkintime India Private Limited
by clicking the link https://web.linkintime.co.in/EmailReg/Email_Register.html
3. In case of any queries, shareholders may refer to the Frequently Asked Questions (FAQs) and remote
e-voting user manual for shareholders available on the website of M/s Linkintime India Private Limited
under the help section or send an email to enotices@linkintime.co.in Shareholders may also contact
the Company or its Registrar and Transfer Agents for any assistance in this regard.
4. All documents referred to in the accompanying Notice and Statement annexed thereto shall be open
for inspection at the Registered Office of the Company during normal business hours on any working
day till the date of the Annual General Meeting.
Instructions for members for e-Voting on the day of the AGM are as under:
Once the electronic voting is activated by the scrutinizer/moderator during the meeting, shareholders/
members who have not exercised their vote through the remote e-Voting can cast the vote as under:
1. On the Shareholders VC page, click on the link for e-Voting “Cast your vote”.
2. Enter your 16 digit Demat Account No./Folio No. and OTP (received on the registered mobile number/
registered email Id) received during registration for InstaMEET and click on ‘Submit’.
3. After successful login, you will see “Resolution Description” and against the same, the option “Favour/
Against” for voting.
4. Cast your vote by selecting appropriate option i.e. “Favour/Against” as desired. Enter the number of
shares (which represents no. of votes) as on the cut-off date under ‘Favour/Against’.
5. After selecting the appropriate option i.e. Favour/Against as desired and you have decided to vote,
click on “Save”. A confirmation box will be displayed. If you wish to confirm your vote, click on “Confirm”,
else to change your vote, click on “Back” and accordingly modify your vote.
Instructions for members for attending the AGM through VC/OAVM are as under: -
• Open the internet browser and launch the URL: https://instameet.linkintime.co.in and click on "login".
• Select the “Company” and ‘Event Date’ and register with your following details:
i. Demat Account No. or Folio No: Enter your 16 digit Demat Account No. or Folio No.
ii. Shareholders/members holding shares in physical form shall provide Folio Number registered with the
Company.
iii. PAN: Enter your 10-digit Permanent Account Number (PAN) (Members who have not updated their
PAN with the Depository Participant (DP)/Company shall use the sequence number provided to you,
if applicable).
iv. Mobile No.: Enter your mobile number.
v. Email ID: Enter your email id, as recorded with your DP/Company.
- Click “Go to Meeting” (You are now registered for InstaMeet and your attendance is marked for the
meeting.
DIVIDEND
The Register of Members and the Share Transfer Books of the Company shall remain closed on Saturday,
29th July, 2023.
The dividend if approved by the members at the Annual General Meeting will be deposited in a separate
bank account within 5 days from the date of the Annual General Meeting and the same will be paid to
the shareholders as per the provisions of the Companies Act, 2013 and the Rules made thereunder and
Circulars issued from time to time.
INVESTOR CLAIMS
Members who have not yet encashed their dividend warrants for earlier years are requested to write to
the Secretarial Department at the Registered and Corporate Office of the Company or send an e-mail to:
investors@sobha.com to claim the dividend. Details of unclaimed dividend as on 31.03.2023 are available
in the ‘Investors Section’ of the website of the Company www.sobha.com
During the financial year 2023-24, the Company will be required to transfer to the Investor Education
and Protection Fund, the dividend declared in the Annual General Meeting of the Company held on
August 03, 2016 and which is lying unclaimed with the Company for a period of seven years from the date
of transfer to the Unpaid Dividend Account.
Allottees who have not yet claimed the equity shares allotted to them during the Initial Public Offer (IPO)
of the Company are requested to make their claim to the Secretarial Department at the Registered and
Corporate Office of the Company or send an e-mail to investors@sobha.com Details of unclaimed equity
shares are available in the ‘investors section’ of the website of the Company www.sobha.com
INVESTOR SERVICING
As per Regulation 40 of SEBI Listing Regulations, as amended, securities of listed companies can be
transferred only in dematerialized form with effect from, April 1, 2019, except in case of request received for
transmission or transposition of securities. In view of this and to eliminate all risks associated with physical
shares and for ease of portfolio management, members holding shares in physical form are requested
to consider converting their holdings to dematerialized form. Members can contact the Company or
Company’s Registrars and Transfer Agents, M/s. Link Intime India Private Limited for assistance in this
regard.
To support the ‘Green Initiative’, Members who have not yet registered their email addresses are requested
to register the same with their DPs in case the shares are held by them in electronic form and with the
Company/Registrar and transfer agent M/s. Link Intime India Private Limited, in case the shares are held
by them in physical form.
Members are requested to intimate changes, if any, pertaining to their name, postal address, email
address, telephone/ mobile numbers, Permanent Account Number (PAN), mandates, nominations, power
of attorney, bank details name of the bank and branch details, bank account number, MICR code, IFSC
code, etc., to their DPs in case the shares are held by them in electronic form and to the Company/
Registrar and transfer agent M/s. Link Intime India Private Limited, in case the shares are held by them in
physical form.
As per the provisions of Section 72 of the Act, the facility for making nomination is available for the
Members in respect of the shares held by them. Members who have not yet registered their nomination
are requested to register the same by submitting Form No. SH-13. Members are requested to submit
the said details to their DP in case the shares are held by them in electronic form and to the Company/
Registrar and transfer agent in case the shares are held in physical form.
All Investor Queries/Complaints/Grievances may be addressed to the Secretarial Department at the
Registered and Corporate Office of the Company or by sending an e-mail to investors@sobha.com.
Members can also write to M/s Link Intime India Private Limited, the Registrar and Share Transfer Agents
of the Company, having their office at 247, LBS Marg, Vikhroli (West), Mumbai - 400083 or send an e-mail
to rnt.helpdesk@linkintime.co.in.
OTHERS
1. In compliance with the aforesaid MCA Circulars and SEBI Circulars, Notice of the AGM along with the
Annual Report 2022-23 is being sent only through electronic mode to those Members whose email
addresses are registered with the Company/Depositories. Members may note that the Notice and
Annual Report 2022-23 will also be available on the Company’s website www.sobha.com websites of
the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.
com and www.nseindia.com respectively.
2. Members attending the AGM through VC/OAVM shall be counted for the purpose of reckoning the
quorum under Section 103 of the Act.
3. Pursuant to Finance Act 2020, dividend income will be taxable in the hands of shareholders w.e.f.
April 1, 2020 and the Company is required to deduct tax at source from dividend paid to shareholders
at the prescribed rates.
A Resident individual shareholder with PAN and who is not liable to pay income tax can submit a
yearly declaration in Form No. 15G/15H, to avail the benefit of non-deduction of tax at source by
email to investors@sobha.com, sobhadivtax@linkintime.co.in on or before Friday, 28th July, 2023.
Further no tax shall be deducted on the dividend payable to a resident individual shareholders if the
total amount of dividend to be received from the Company during the Financial Year 2022-23 does
not exceed ₹5,000/-. Shareholders may note that in case PAN is not updated with the Depository
Participant/Registrar of the Company, the tax will be deducted at a higher rate of 20%.
Non-resident shareholders can avail beneficial tax rates under Double Tax Avoidance Agreement
[DTAA] i.e. tax treaty between India and their country of residence. Non- resident shareholders are
required to provide details on applicability of beneficial tax rates and provide following documents:
- Copy of PAN card, if any, allotted by Indian Income Tax Authorities duly self attested by the
member.
- Copy of Tax Residency Certificate [TRC] for the FY2022-23 obtained from the revenue authorities
of country of tax residence duly attested by the member.
- Electronic Form 10-F for Shareholdres having PAN or self declaration in Form 10-F for
Shareholders not having PAN.
- No-PE [permanent establishment] certificate .
- Self Declaration of beneficial ownership by the non-resident shareholder.
- Lower withholding Tax certificate, if any, obtained from the Indian Tax Authorities.
The members/shareholders are required to provide above documents/declarations by sending an
E-mail to rnt.helpdesk@linkintime.co.in on or before Friday, 28th July, 2023. The aforesaid documents
are subject to verification by the Company and in case of ambiguity, the Company reserves its right
to deduct the TDS as per the rates mentioned in the Income Tax Act, 1961.
4. Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 directs
listed companies to send soft copies of the Annual Report to those shareholders who have
registered their e-mail addresses. Sections 101 and 136 of the Companies Act, 2013 read with the
Companies (Management and Administration) Rules, 2014 and Companies (Accounts) Rules, 2014
permit prescribed companies to send a notice and financial statements through electronic mode.
In view of the same, shareholders are requested to update their e-mail IDs with their Depository
Participants where shares are held in dematerialised mode and where the shares are held in physical
form to update the same in the records of the Company in order to facilitate electronic servicing of
annual reports and other documents.
5. Members who would like to express their views or ask questions during the AGM may register
themselves as a speaker by sending their request from their registered email address mentioning
their name, DP ID and Client ID/folio number, PAN, mobile number at investors@sobha.com from
1st August, 2023 (9:00 a.m. IST) to 5th August, 2023 (5:00 p.m. IST). Those Members who have
registered themselves as a speaker will only be allowed to express their views/ask questions during
the AGM. The Company reserves the right to restrict the number of speakers depending on the
availability of time for the AGM.
6. SEBI has mandated the submission of PAN, KYC details and nomination by holders of physical
securities by October 1, 2023, vide its circular dated March 16, 2023. Shareholders are requested to
submit their PAN, KYC and nomination details to the Company’s RTA, M/s Linkintime India Private
Limited, at kyc@linkinindia.co.in The forms for updating the same are available at https://web.
linkintime.co.in
7. In case a holder of physical securities fails to furnish PAN and KYC details before October 1, 2023, in
accordance with the SEBI circular dated March 16, 2023, RTA is obligated to freeze such folios. The
securities in the frozen folios shall be eligible to receive payments (including dividend) and lodge
grievances only after furnishing the complete documents. If the securities continue to remain frozen
as on December 31, 2025, the RTA / the Company shall refer such securities to the administering
authority under the Benami Transactions (Prohibitions) Act, 1988, and / or the Prevention of Money
Laundering Act, 2002.
By Order of the Board of Directors
For Sobha Limited
Place : Bangalore
Date : 29th May, 2023 Sd/-
Vighneshwar G Bhat
Registered Office: Company Secretary & Compliance Officer
SOBHA,
Sarjapur-Marathahalli Outer Ring Road,
Bellandur Post, Bangalore – 560 103.
CIN: L45201KA1995PLC018475
EXPLANATORY STATEMENT ANNEXED TO NOTICE

[PURSUANT TO PROVISIONS OF SECTION 102(1) OF THE COMPANIES ACT, 2013]
Item No. 4 to borrow money from banks and other financial

institutions as a means of finance. The Company
In terms of Section 148 of the Companies Act, 2013
has currently availed project-specific or general
and the Companies (Cost Records and Audit)
purpose borrowings from various banks and
Rules, 2014 as may be amended from time to
financial institutions to finance the execution of
time, the Company is required to get its cost
the projects of the Company.
records audited.
The Board of Directors envisages a continued need
The Board of Directors, based on the
for the funding requirements of the Company to
recommendation of the Audit Committee, have
be met through various components, i.e. equity,
appointed M/s. Srinivas and Co, Cost Accountants
project loans, general purpose corporate loans,
(Firm Registration No: 000278) as the Cost
Auditors of the Company for the financial year borrowings from financial institutions, debentures
2022-23. Further, the Board of Directors, on etc. A mix of these instruments will result in
the recommendations of the Audit Committee, optimum utilisation of funds at an optimum cost
have approved the payment of remuneration and help meet the various business requirements
not exceeding ₹185,000 (Rupees One lakh and of the Company. The Board is therefore,
eighty-five thousand only) plus out of pocket contemplating the feasibility of borrowing
expenses and taxes as may be applicable from money through further issue of Non-Convertible
time to time to the Cost Auditors for undertaking Debentures.
the cost audit of the Company for the financial In terms of Rule 14 of The Companies (Prospectus
year 2022-23. and Allotment of Securities) Rules, 2014, the issue
In terms of Section 148 of the Companies Act, 2013 of Non-Convertible Debentures on a private
read with the Companies (Audit and Auditors) placement basis requires previous approval
Rules, 2014, the remuneration payable to the Cost of the members of the Company by way of a
Auditors has to be ratified by the shareholders of Special Resolution and such an approval shall
the Company. be valid for all the offers or invitation for such
Debentures during the year.
Accordingly, consent of the members is sought
for ratification of the remuneration payable to Accordingly, approval of the members is being
the Cost Auditors for the financial year ending sought to enable the Board of Directors to
March 31, 2023. offer or invite subscriptions for non-convertible
debentures aggregating up to ₹7,000,000,000
None of the other Directors or Key Managerial
(Rupees Seven hundred crores only) as may be
Personnel or their relatives are in any way
required and such approval shall be valid for a
interested or concerned, financially or otherwise
year.
in this Resolution except to the extent of their
shareholding in the Company. None of the Directors or the Key Managerial
Personnel or their relatives are in any way
The Board of Directors recommends the Ordinary
interested or concerned, financially or otherwise,
Resolution set out in Item No. 4 for approval by
in this Resolution except to the extent of their
the Members.
shareholding in the Company.
Item No. 5:
The Board recommends the Special Resolution
The Company in order to execute various set-out in Item 5 of the Notice for approval by
projects, both residential and contractual, has the members.
ADDITIONAL INFORMATION ON DIRECTOR SEEKING RE-ELECTION AT THE ANNUAL GENERAL

MEETING PURSUANT TO SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS),
REGULATIONS 2015 AND SECRETARIAL STANDARDS ON GENERAL MEETINGS:
Name of Director Mr. Jagadish Nangineni

Age 44 Years
Date of First Appointment April 1st, 2022
MBA from the Indian Institute of Management, Calcutta and Bachelor of
Qualifications Technology (B.Tech) in Civil Engineering from Indian Institute of Technology,
Bombay
No. of Board Meetings
attended during the 5
financial year 2022-2023
Experience Overall 21 years and in the Company 14 years of experience.
Mr. Jagadish Nangineni is entrusted with the overall responsibility of
Expertise in specific managing the affairs of the Company and for achieving the targets of the
functional areas Company. He plays an instrumental role in leading the growth mantle of the
Company in all operational businesses and related functions.
Remuneration paid and payable is in accordance with the approval of
shareholders granted vide special resolution passed through Postal Ballot
Details of remuneration on 9th June, 2022. The remuneration paid for the financial year 2022-23
is disclosed in the Corporate Governance Report that forms part of the
Annual Report.
Directorship and
membership of Committees
None
of the Board held in other
listed companies
Sobha Assests Private Limited, Sobha Highrise Ventures Private Limited and
Directorships held in other
Sobha Developers (Pune) Limited
Public Limited companies
[Subsidiaries of Sobha Limited, a public company]
Relationship with other
Directors and Key None
Managerial Personnel
Number of shares held as
2400 equity shares of ₹10 each
on 29th May, 2023
Terms and conditions of The terms and conditions of appointment shall be governed by the approval
appointment of shareholders as set out in the Notice of the Annual General Meeting.

GLOSSARY
ADR American Depository Receipts JD / JV Joint Development / Joint Venture

BBS Bar Bending Schedule KMP Key Managerial Personnel
BSE BSE Limited LED Light-emitting diode
CAGR Compounded Annual Growth Rate Listing SEBI (Listing Obligations and Disclosure
CDSL Central Depository Services (India) Regulations Requirements) Regulations, 2015
Limited MCA Ministry of Corporate Affairs, New Delhi
CEO Chief Executive Officer MD&A Management Discussion & Analysis
CFO Chief Financial Officer MEP Mechanical, Electrical and Plumbing
CIN Corporate Identification Number
NCR National Capital Region
CPD Concretes Product Division
NEAPS NSE Electronic Application Processing
CREDAI Confederation of Real Estate System
Developers Association of India
NECS National Electronic Clearing System
CRM Customer Relationship Management
NEFT National Electronic Fund Transfer
CSR Corporate Social Responsibility
NRI Non Resident Indian
Demat Dematerialised Account
NSDL National Securities Depository Limited
DG Diesel Generator
NSE National Stock Exchange of India
DIN Director Identification Number Limited
EBITDA Earnings before Interest, Depreciation OHSAS Occupational Health Safety
and Amortisation Assessment Series
ECS Electronic Clearing System PAT Profit after Tax
EHS Environment, Healt & Safety
PBDIT Profit before Depreciation, Interest
EPS Earnings Per Share and Tax
ERP Enterprise Resource Planning PBIT Profit before Interest and Tax
EVEN E-Voting Event Number PBT Profit before Tax
FII Foreign Institutional Investors PV Cells Photovoltaic Cells
FSI Floor Space Index QST Quality, Safety and Technology
GDP Gross Domestic Product R&D Research and Development
GDR Global Depository Receipts R&T Agents Registrar and Share Transfer Agents
HUF Hindu Undivided Family RBI Reserve Bank of India
HVAC Heating, Ventilating and Air
RERA Real Estate (Regulation and
Conditioning
Development) Act, 2016
ICRA ICRA Limited [Formerly Investment
ROCE Return on Capital Employed
Information and Credit Rating Agency
of India Limited] ROE Return on Equity
IEPF Investor Education and Protection Fund RTGS Real Time Gross Settlement
IPO Initial Public Offer SBA Super Built-up Area

ISIN International Securities Identification SCORES SEBI Complaint Redress System
Number
SEBI Securities and Exchange Board of India
ISO International Organization for
VFD Variable Frequency Drive
Standardization
WTD Whole-time Director
IT / ITES Information Technology / Information
Technology Enabled Services Y-O-Y Year-on-Year
FISCAL 2023 HIGHLIGHTS

Q1 - 2023
• Revenues of ₹5,737 million with a PBT of ₹85 million and PAT of ₹47 million.
• Collections of ₹11,177 million.
• Average cost of debt as end of Q1-23 stood at 8.45%.
• Sold 1.36 million square feet of area total valued at ₹11,455 million (Sobha Share value of 9,534 million).
• Launched 3 new residential projects of total saleable area of 2.02 million square feet -
SOBHA Sentosa in Bangalore with SBA of 779,066 square feet.
SOBHA Royal Crest in Bangalore with SBA of 654,429 square feet.
SOBHA Victoria Park in Bangalore with SBA of 588,425 square feet.
• Completed 0.32 million square feet of Real Estate projects and 0.19 million square feet of Contractual
projects, totalling 0.51 million square feet of developable area during Q1-23.
Q2 - 2023
• Sold 1.34 million square feet of area, total valued at ₹11,642 million (Sobha Share of ₹9,610 million).
• Launched 3 new residential projects of total saleable area of 0.88 million square feet –
SOBHA Insignia in Bangalore with SBA of 80,251 square feet.
SOBHA Meadows-Whispering hills in Trivandrum with SBA of 1,964,201 square feet. This was our
first project launch in city of Trivandrum.
SOBHA Brooklyn Tower – Town Park with total SBA of 604,222 square feet was launched after
redesigning.
• Completed 1.27 million square feet of developable area during Q2-23 in Real Estate projects.
Q3 - 2023
• Sold 1.48 million square feet of area, total valued at ₹14,247 million (Sobha Share of ₹11,112 million).
Q4 - 2023
• Sold 1.48 million square feet of area total valued at ₹14,634 million (Sobha Share of 12,074 million).
• Launched 3 new residential projects of total saleable area of 1.06 million square feet –
SOBHA Galera in Bangalore with SBA of 131,102 square feet.
SOBHA Oakshire in Bangalore with SBA of 275,486 square feet.
SOBHA Waterfront with SBA of 654,661 square feet, this being our first ever project in city of
Hyderabad
3 YEARS FINANCIAL HIGHLIGHTS (CONSOLIDATED FINANCIALS)

(₹ in million)
Particulars 2022-23 2021-22 2020-21
Financial Performance
Total Income 34,024.33 26,452.27 21,904.00
Profit before depreciation interest and tax (PBDIT) 4,618.36 6,167.77 4,907.35
Depreciation 678.37 718.27 793.67
Profit before interest and tax (PBIT) 3,939.99 5,449.50 4,113.68
Interest 2,490.24 3,083.25 3,361.83
Profit before tax (PBT) 1,449.75 2,366.25 751.85
Profit after tax (PAT) 1,042.05 1,731.90 629.26
Dividend
Equity (paid/proposed) 284.54 284.54 331.96
Rate of dividend 30% 30% 35%
Financial position
Shareholder’s funds 24,946.71 24,229.13 24,277.35
Borrowed fund 20,035.49 25,037.27 30,386.36
Total 44,982.20 49,266.40 54,663.71
Net fixed assets 8,822.41 8,345.85 9,034.34

Investments 1,149.38 1,148.78 1,142.70
Net current and non current assets 34,913.85 39,641.40 44,809.21
Deferred tax assets/(liability) 96.56 130.37 (322.54)
Total 44,982.20 49,266.40 54,663.71
Ratios
EBIDTA Margin 13.57% 23.32% 22.40%
Pre-Tax Margin 4% 9% 3%
Post Tax Margin 3% 7% 3%
Interest coverage ratio 1.58 1.77 1.22
Net debt to EBIDTA (times) 3.55 3.79 5.76
Fixed assets to turnover ratio 26% 32% 41%
Debtors turnover ratio (Net Debtors) 2.80 2.85 6.58
Debtors turnover ratio (Gross Debtors) 2.42 2.48 5.48
Return on Equity (ROE) 4% 7% 2%
Return on Capital Employed (ROCE)* 8% 11% 8%
Earnings per share(EPS) 10.99 18.26 6.57
Book Value 263.02 255.46 255.97
Debt/Equity Ratio 0.81 1.03 1.33
Price Earning Ratio 39.19 38.76 66.55
Price/book value 1.64 2.77 1.71
*EBIT/ Average capital employed.

Figures are regrouped wherever necessary.
Read the online edition
of this Annual Report
SOBHA Limited, Sarjapur – Marathahalli Outer Ring Road, Bellandur Post, Bangalore - 560103
CIN: L45201KA1995PLC018475 | Tel: +91-80-49320000 | www.sobha.com

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Building on

SOBHA lays a strong emphasis on product quality achieved by

Markets and Operating Environment 114

Independent Auditors’ Report 248 248

As a leading industry brand, SOBHA’s

SOBHA has adopted the Business Responsibility and

Best Real Builder of the Ranked #1

Haryana State National Safety

Health and safety –

SOBHA Real Estate

Our clients include renowned corporates such

SOBHA has established four main manufacturing

SOBHA’s four main factories in

The Company’s commitment to

Glazing and Metal Works

SOBHA specialises in making unitized panels, with

Shop floor employees are trained periodically

In addition to adhering to standard safety and

The Glazing and Metal Works Division

The Interiors division adopts the best in

Through its comprehensive range of products

Multiple shop floors produce a variety of products,

Through its focus on innovation and quality,

SOBHA’s Concrete Products division

To ensure consistent and high quality, an extremely

The mattress facility incorporates the latest

The Company places a high emphasis on

Restoplus celebrated 15 years of

metercube’s full-fledged in-house design and

Customers can experience the full range of

Building on Our Momentum

Our flagship market, Bangalore, continued to

friends of SOBHA, technology in India on a large scale. Leveraging

SOBHA is dedicated to making a positive impact

22 Annual Report 2022 - 2023

Sitting from left to right MR. RAVI PNC MENON

24 Annual Report 2022 - 2023

FINANCIAL HIGHLIGHTS (₹ In million)

Total Revenue 34,258.65 26,352.24 34,024.33 26,452.27

Operating Expenditure 29,879.04 20,369.65 29,405.97 20,284.50

Depreciation and Amortisation 638.71 678.16 678.37 718.27

Finance Cost 2,423.80 2,993.70 2,490.24 3,083.25

Profit Before Tax 1,317.10 2,310.73 1,449.75 2,366.25

Tax Expenses 364.21 619.25 407.70 634.35

Profit after Tax 952.89 1,691.48 1,042.05 1,731.90

BUSINESS AND OPERATIONS B. FINANCIAL OVERVIEW

A. BUSINESS OVERVIEW Standalone

26 Annual Report 2022 - 2023

Tax (after considering minority interest) is ₹2,000,000,000 divided into 150,000,000

Ongoing Projects The Company has received necessary

Mr. Ravi PNC Menon, resigned from the E. PERFORMANCE EVALUATION

28 Annual Report 2022 - 2023

30 Annual Report 2022 - 2023

H. CORPORATE GOVERNANCE In terms of Section 134 of the Companies Act,

32 Annual Report 2022 - 2023

O. CONSERVATION OF ENERGY, TECHNOLOGY Companies Act, 2013, except as disclosed

For and on behalf of the Board of Directors of Sobha Limited

My report of even date is to be read along with this letter.

1. My responsibility is to express an opinion on these secretarial records, standards and procedures

34 Annual Report 2022 - 2023