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Notes to Accounts of Prestige Estates Projects Ltd.

Mar 31, 2023

iv. There are no projects where activities has been suspended under capital work-in-progress as at March 31,2023.

v. The Management is of the view that the fair value of investment properties under construction cannot be reliably measured and hence fair value disclosures pertaining to investment properties under construction have not been provided.

vi. Capital work-in progress with carrying amount of '' 1,562 Million (March 31,2022: '' 4,174 Million) have been pledged to secure borrowings of the Company (See Notes 23 & 27). The Capital work-in progress have been pledged as security for bank loans under a mortgage.

i. The Company''s investment properties consists of commercial properties in India. The Management has determined that the investment properties consist of two classes of assets - office and retail - based on the nature, characteristics and risks of each property.

ii. As at March 31, 2023 and March 31, 2022, the fair values of the properties (excluding Right of use assets) are '' 11,188 Million and '' 7,394 Million respectively. These valuations are based on valuations performed by Jones Lang LaSalle Property Consultants India Private Limited and CBRE South Asia Private Limited, an accredited independent and registered valuer defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. A valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied. The fair valuation has been carried out by the Management for material investment properties.

iii. Investment property with carrying amount of '' 6,271 Million (March 31,2022: '' 3,078 Million) have been pledged to secure borrowings of the Company (See Note 23 & 27). The investment property have been pledged as security for bank loans under a mortgage.

iv. The fair value of the Company''s investment properties have been arrived at using discounted cash flow 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, terminal yields and discount rates which are based on comparable transactions and industry data.

23f The Company has borrowings and working capital limits from banks or financial institutions on the basis of security of current assets. In respect of working capital limits, there are no requirements of filing quarterly returns or statements with banks or financial institutions as per the terms of relevant agreements. Further in respect of borrowings, the Company is required to file quarterly returns or statements with banks or financial institutions as per the terms of the borrowings and the Company has filed quarterly returns or statements which are in agreement with the books of accounts.

23g Secured, Redeemable non convertible debentures

During the year ended March 31, 2019, the Company issued 3,500 rated, unlisted, secured redeemable, non-convertible debentures (A Rating) of '' 1,000,000 each, having tenor upto August 2023, aggregating ''3,500 Million on a private placement basis. These debenture are secured by exclusive charge by way of mortgage over certain projects of the Company (hereinafter referred to as "mortgaged property”), exclusive charge over receivables from sale of mortgaged property and exclusive charge over debt service reserve account and escrow accounts of mortgaged property. The debentures are repayable in two tranches, Tranche 1 - ''1,000 Million in August 2021 and Tranche 2 - ''2,500 Million in August 2023 carry a coupon rate of 10.50%. During the year ended March 31, 2022, the Company has redeemed the Tranche 1 debentures.

During the year ended March 31,2022, the Company issued 2,400 Series A senior, secured, redeemable, rated, listed, nonconvertible debentures (NCDs) (A Rating) of '' 1,000,000 each at par, having tenor upto November 29, 2024 and 2,600 Series B senior, secured, redeemable, rated, listed, non-convertible debentures (A Rating) of '' 1,000,000 each at par, having tenor upto November 29, 2026 aggregating ''5,000 Million. These NCDs are secured by way of exclusive charge on the immovable project situated in Bengaluru owned by the Company and immovable properties situated in Goa and Bidadi owned by a Subsidiary Company and a Firm. The debentures carry a coupon rate of 8.90%. In case of Series B NCDs, the Company/ debenture holders has a call / put option to redeem by November 29, 2024.

The Company has created debenture redemption reserve as per Section 71 of the Companies Act, 2013, on a pro rata basis amounting to ''1,018 Million (March 31,2022 - ''564 Million).

27b Security Details :

Mortgage of certain immovable properties of the Company including related inventories, project receivables and undivided share of land belonging to the Company.

Mortgage of certain immovable properties belonging to and Corporate Guarantee from three subsidiary companies and a firm in which the Company is a partner.

Charge over receivables of various projects.

Lien against fixed deposits.

27c Repayment and other terms : Projects Loans

Repayable in Quarterly instalments ending in September 2026 and monthly instalments ending in March 2029.

These secured loans are subject to interest rates ranging from 8.95 % to 9.95 % per annum.

27d Repayment and other terms : Other Loans

Repayable in monthly instalments ending in April 2024 to October 2024.

Personal guarantee of certain directors of the Company.

These secured loans are subject to interest rates ranging from 11.40 % to 12.55 % per annum.

27e In respect of working capital limits basis security of current assets of the Company there are no requirements of filing quarterly returns or statements with banks or financial institutions as per the terms of relevant agreements. Further in respect of borrowings, the Company is required to file quarterly returns or statements with banks or financial institutions as per the terms of the borrowings and the Company has filed quarterly returns or statements which are in agreement with the books of accounts.

27f Inter corporate deposits and loans from others are subject to interest rates ranging from 0.00% to 12.00% per annum and are repayable on demand.

3. The Company enters into construction contracts with its vendors. The final amounts payable under such contracts will be based on actual measurements and negotiated rates, which are determinable as and when the work under the said contracts are completed.

4. The Company has entered into agreements with land owners under which the Company is required to make payments based on the terms/ milestones stipulated under the respective agreements.

5. The Company has entered into joint development agreements with owners of land for its construction and development. Under the agreements the Company is required to pay certain payments/ deposits to the owners of the land and share in built up area/ revenue from such developments in exchange of undivided share in land as stipulated under the agreements. Further the Company has given guarantees in favour of certain Joint Development partners without any commission charged on such guarantees considering the economic interest with such partners. Accordingly, management is of the view that these guarantees are not prejudicial to the interests of the Company.

6. The Company has made commitment to subscribe to further capital in certain of its subsidiaries and jointly controlled entities based on operations of such entities.

7. The Company has Investment in certain subsidiaries which are yet to commence its project activities. The management of the subsidiaries is in process of evaluating/ obtaining relevant approvals for commencement of project and expects recovery of its investments in due course of time.

41

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CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)

('' in Million)

Particulars

As at

March 31, 2023

As at

March 31, 2022

1 Claims against Company not acknowledged as debts

a. Disputed Value Added Tax

248

413

b. Disputed Service Tax

425

404

c. Disputed Income Tax

185

99

d. Others

130

130

The above amounts does not include penalties, if any, that may be levied by the authorities when the disputes are settled.

2 Corporate guarantees given on behalf of other entities (Refer notes 40 & 52)

50,757

49,115

The Company does not expect any reimbursement in respect of the above contingent liability and it is not practicable to estimate the timings of the cash outflows, if any, in respect of matters above pending resolution of the arbitration/ appellate proceedings and it is not probable that an outflow of resources will be required to settle the above obligations/ claims.

3 The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business, including certain litigation for lands acquired by it for construction purposes, either through joint development agreements or through outright purchases. These cases are pending with various courts and are scheduled for hearings. The management believes that these cases will not adversely effect its financial statements.

E3 SEGMENT INFORMATION

The Chief Operating Decision Maker reviews the operations of the Company as a real estate development activity and letting out of developed properties, which is considered to be the only reportable segment by the Management. The Company''s operations are in India only.

WT% EMPLOYEE BENEFIT PLANS

(i) Defined Contribution Plans : The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.

g. Sensitivity analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and employee attrition. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

h. Estimated amount of Gratuity contribution over the next one year is '' 10 Million, one to three years is '' 30 Million and greater than three years is '' 186 Million.

(iii) Other Employee Benefits - Compensated absences

The leave obligations cover the Company''s liability for earned leave and is not funded.

Leave encashment benefit expensed in the Statement of Profit and Loss for the year is '' 16 Million (March 31, 2022: '' 13 Million).

Leave encashment benefit outstanding is '' 67 Million (March 31,2022 : '' 57 Million).

45 There are no foreign currency exposures as at March 31, 2023 (March 31, 2022 - Nil) that have not been hedged by a derivative instrument or otherwise.

46 Refer Annexure I for disclosures under Regulation 34(3) and 53(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the acquisition and Company''s real estate operations. The Company''s principal financial assets include investments, trade and other receivables, cash and cash equivalents, land advances and refundable deposits that derive directly from its operations.

The management is of the view that the terms and conditions of the investments made, guarantees provided, security given, land advances, refundable deposits, current account with partnership firms, loans and advances are not prejudicial to the interest of the Company considering its economic interest and furtherance of the business objectives.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The senior management ensures 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. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

I 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 risk. The Company has no exposure to commodity prices as it does not deal in derivative instruments whose underlying is a commodity. Financial instruments affected by market risk include loans and borrowings and refundable deposits.

The sensitivity analysis in the following sections relate to the position as at March 31, 2023 and March 31, 2022. The sensitivity analysis have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt are constant.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions.

The following assumptions have 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 March 31,2023 and March 31, 2022.

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 and short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. The Company does not have any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a possible change in interest rates on that portion of borrowings outstanding at the balance sheet date. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

II 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 from its operating activities (primarily trade receivables) and from its financing activities, including refundable joint development deposits, security deposits, loans to employees and other financial instruments.

Trade and other receivables

Trade receivables of the Company comprises of receivables towards sale of properties, rental receivables and other receivables.

Receivables towards sale of property - The Company is not substantially exposed to credit risk as property is delivered on payment of dues. However the Company make provision for expected credit loss where any property developed by the Company is delayed due to litigation as further collection from customers is expected to be realised only on final outcome of such litigation.

Receivables towards rental receivables - The Company is not substantially exposed to credit risk as Company collects security deposits from lessee.

Other Receivables - Credit risk is managed as per 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 customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Refundable joint development deposits

The Company is subject to credit risk in relation to refundable deposits given under joint development arrangements. The management considers that the risk is low as it is in the possession of the land and the property share that is to be delivered to the land owner under the joint development arrangements.

Financial Instrument 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 Balance Sheet at March 31,2023 and March 31,2022 is the carrying amounts.

III Liquidity risk

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 payments:

For the purpose of the Company''s capital management, capital includes issued equity capital, securities 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 maintain strong credit rating and healthy capital ratios in order to support its business and maximise the shareholder value.

The Company, through its Board of Directors 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 debt equity ratio, which is net debt divided by total capital. The Company''s policy is to keep the debt equity ratio below 1.00. The Company includes within net debt, interest bearing loans and borrowings (excluding borrowings from group companies) less cash and cash equivalents, current investments, other bank balances and margin money held with banks. The disclosure below could be different from the debt and equity components which have been agreed with any of the lenders.

EW DETAILS OF EXCEPTIONAL ITEMS

a. During the year ended March 31, 2021, the Company had entered into definitive agreements and transferred certain investment and completed commercial projects on a slump sale basis. Of the total agreed consideration, ''1,503 million was deferred on occurrence or non-occurrence of certain contingent events and was not recognised for the year ended March 31,2021.

During the year ended March 31,2022, of the above deferred consideration, the Company had received '' 1,063 million and recognised as an exceptional item. The balance amount of '' 440 million is still deferred as at March 31,2022.

During the year ended March 31,2023, of the above deferred consideration, the Company has received the final amount of '' 204 million and recognised as an exceptional item.

b. During the year ended March 31, 2022, the Company had divested its holdings in Prestige City Estates Private Limited (''PCEPL) to a third-party investor. Post such divestment in Prestige City Estates Private Limited, based on legal advice obtained, the Company did not have any continuing or future obligations for repayment of its share of gain not recorded earlier as required under Ind AS . Accordingly, the amount received and realised amounting to '' 4,371 million had been considered as an exceptional item.

c. During the year ended March 31,2022, the Company had divested directly/ indirectly 50% of stake in Prestige Beta Projects Private Limited and Dashanya Tech Parkz Private Limited. Further the Company had on a slump sale basis transferred a particular business undertaking to Kochi Cyber Green Private Limited for a total consideration of '' 440 million resulting in expectional loss of '' 35 million.

54 Refer Annexure III for Other Statutory Information.

a. The Company had entered into a registered Joint Development Agreement (JDA) with a certain land owner (the "Land Owner Company”) to develop a residential project ("the Project”). Under the said JDA, the Company acquired development rights over a certain parcel of land of the Land Owner Company and in exchange was required to provide the Land Owner Company identified developed units with a certain specified built-up area (the "Land Owner Company''s share”). The Company had also incurred Transferrable Development Rights (TDR''s) of '' 881 Million which are recoverable from the Land Owner Company along with an interest of 12% per annum, from the sale of units from the residential project belonging to the Land Owner Company. Further the Company has pending claims receivable from the Land Owner Company without prejudice to its legal position.

As at March 31,2023, gross receivables due from the Land Owner Company towards TDR''s aggregate to '' 923 Million. The Land Owner Company has been ordered to be wound up by the Hon''ble High Court of Judicature during the year ended 31 March 2017. The land owner Company has challenged the court order, the legal proceedings of which is pending with the Judicature.

Considering the rights of the Company under the JDA, the status of development achieved so far in the Project; the plans for completion of the Project; the Escrow arrangement with the Company, Land Owner Company and the Lender of the Land Owner Company (to whom the Land Owner Company''s share of developed units have been mortgaged), which provides for manner of recovery of TDR dues; the fact that the handing over formalities of the underlying units are yet to be completed, the Company expects to recover the above gross dues towards TDR''s and has accordingly classified them as good and recoverable in the financial statement.

b. As at March 31,2022, the Company was carrying inventory (including development costs) in relation to an ongoing project amounting to '' 2,145 million. The portion of land on which the project was executed was subject to litigation for which the Company had received favourable order from the court of law. However, there were certain writ appeals, filed against the favourable order received by the Company. The outcome of the project and sale of inventory was dependent on the outcome of the writ appeals.

During the year ended March 31, 2023, the writ appeal has been dismissed in favour of the Company.

(d) The Company has not provided any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(e) The management of the Company declares that, the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and the Companies Act has been complied with for above transactions in (a), (b) and (c) above and such transactions are not violative of the Prevention of Money-Laundering Act, 2002 (15 of 2003).

(vi) 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

i. 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

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company does not have any such transaction which is not recorded in the books of accounts 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.

(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.


Mar 31, 2022

a. Assets pledged as security and restriction on titles

Property, plant and equipment with carrying amount of C 3,710 Million (31 March 2021: C 4,005 Million) have been pledged to secure borrowings of the Company (See Notes 24 and 28).

b. The title deeds of all the immovable properties (other than properties where the Company is the lessee) are held in the name of the Company.

iii. Capital projects are modulated, based on the milestones achieved and these projects are executed as per the rolling annual plan.

iv. There are no projects under capital work-in-progress where activities has been suspended as at 31 March 2022.

v. The Management is of the view that the fair value of investment properties under construction cannot be reliably measured and hence fair value disclosures pertaining to investment properties under construction have not been provided.

vi. Capital work-in progress with carrying amount of C 4,174 Million (31 March 2021: C 3,534 Million) have been pledged to secure borrowings of the Company (See Notes 24 & 28). The Capital work-in progress have been pledged as security for bank loans under a mortgage.

i. The Company’s investment properties consists of commercial properties in India. The Management has determined that the investment properties consist of two classes of assets - office and retail - based on the nature, characteristics and risks of each property.

ii. As at 31 March 2022 and 31 March 2021, the fair values of the properties (excluding Right to use assets) are C 7,394 Million and C 7,536 Million respectively. These valuations are based on valuations performed by Jones Lang LaSalle Property Consultants India Private Limited, an accredited independent valuer and is a registered valuer as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. A valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied. The fair valuation has been carried out by the Management for material investment properties.

iii. I nvestment property with carrying amount of C 3,078 Million (31 March 2021: C 2,093 Million) have been pledged to secure borrowings of the Company (See Note 24 & 28). The investment property have been pledged as security for bank loans under a mortgage.

iv. The fair value of the Company’s investment properties have been arrived at using discounted cash flow 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, terminal yields and discount rates which are based on comparable transactions and industry data.

The Company has only one class of equity shares with voting rights having par value of C 10 each. The rights, preferences and restrictions attached to such equity shares is in accordance with the terms of issue of equity shares under the Companies Act, 2013, the Articles of Association of the Company and relevant provisions of the listing agreement.

The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share capital and Debentures) Rules, 2014 (as amended), require the Company to create DRR out of profits of the Company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issued. The Company has created debenture redemption reserve on a pro rata basis.

with banks or financial institutions as per the terms of relevant agreements. Further in respect of borrowings, the Company is required to file quarterly returns or statements with banks or financial institutions as per the terms of the borrowings and the Company has filed quarterly returns or statements which are in agreement with the books of accounts.

24g Secured, Redeemable non convertible debentures

During the year ended 31 March 2019, the Company issued 3,500 rated, unlisted, secured redeemable, nonconvertible debentures (A Rating) of C 1,000,000 each, having tenor upto August 2023, aggregating C 3,500 Million on a private placement basis. These debenture are secured by exclusive charge by way of mortgage over certain projects of the Company (hereinafter referred to as "mortgaged property"), exclusive charge over receivables from sale of mortgaged property and exclusive charge over debt service reserve account and escrow accounts of mortgaged property. The debentures are repayable in two tranches, Tranche 1 - C 1,000 Million in August 2021 and Tranche 2 - C 2,500 Million in August 2023 carry a coupon rate of 10.50%. During the year, the Company has redeemed the Tranche 1 debenture.

During the year ended 31 March 2022, the Company issued 2,400 Series A senior, secured, redeemable, rated, listed, non-convertible debentures (NCDs) (A Rating) of C 1,000,000 each at par, having tenor upto 29 November 2024 and 2,600 Series B senior, secured, redeemable, rated, listed, non-convertible debentures (A Rating) of C 1,000,000 each at par, having tenor upto 29 November 2026 aggregating C 5,000 Million. These NCDs are secured by way of exclusive charge on the immovable project situated in Bengaluru owned by the Company and immovable properties situated in Goa and Bidadi owned by subsidiary Company. The debentures carry a coupon rate of 8.90%. In case of Series B NCDs, the Company/ debenture holders has a call / put option to redeem by 29 November 2024.

The Company has created debenture redemption reserve as per Section 71 of the Companies Act, 2013, on a pro rata basis amounting to C 564 Million (31 March 2021 - C 550 Million).

24h During the year ended 31 March 2021, pursuant to the definitive agreements, the Company had transferred related loans/borrowings in favour of acquirer. During the year ended 31 March 2022, the Company has completed the formalities relating to transfer of associated loans/ borrowings. (Refer note 52a)

24b The Company has borrowings (current/ non current) from banks and financial institutions in the form of Lease Rental Discounting loans, Project loans and General purpose loans which are primarily in the nature of Term Loans based on terms of the sanction letter. The management is of the view that the projects loans and general purpose loans are in the nature of term loans and not working capital loans.

24c Lease Rental Discounting Loans (Included under Term loans)

Security Details :

Mortgage of certain immovable properties of the Company

Charge over the book debts, operating cash flows, revenues and receivables of the projects.

Assignment of rent receivables from various properties.

Lien against fixed deposits.

Repayment and other terms :

Repayable within 120 - 240 instalments commencing from April 2015.

Personal guarantee of certain directors of the Company.

These loans are subject to interest rates ranging from 6.80% to 9.60% per annum.

24d Project loans and general loans (Included under Term loans)

Mortgage of certain immovable properties of the Company

Charge over the project material and other assets related to the projects.

Repayment and other terms :

Repayable in one bullet instalments and monthly repayments over 66 months commencing from April 2021.

Personal guarantee of certain directors of the Company.

These loans are subject to interest rates ranging from 8.20% to 8.85% per annum.

24e Refer Note No.28 for current maturities of long-term debt.

24f I n respect of working capital limits basis security of current assets of the Company there are no requirements of filing quarterly returns or statements

28b Security Details :

Mortgage of certain immovable properties of the Company including related inventories, project receivables and undivided share of land belonging to the Company.

Mortgage of certain immovable properties belonging to and Corporate Guarantee from four subsidiary companies and a firm in which the Company is a partner.

Charge over receivables of various projects.

Lien against fixed deposits.

28c Repayment and other terms :

Repayable in one bullet instalments and monthly repayments with period ranging from 10 - 60 months.

Personal guarantee of certain directors of the Company.

These secured Loans are subject to interest rates ranging from 8.65 % to 11.40 % per annum.

28d In respect of working capital limits basis security of current assets of the Company there are no requirements of filing quarterly returns or statements with banks or financial institutions as per the terms of relevant agreements. Further in respect of borrowings, the Company is required to file quarterly returns or statements with banks or financial institutions as per the terms of the borrowings and the Company has filed quarterly returns or statements which are in agreement with the books of accounts.

28e Inter corporate deposits and loans from others are subject to interest rates ranging from 0.00% to 10.25% per annum and are repayabLe on demand.

3. The Company enters into construction contracts with its vendors. The final amounts payable under such contracts will be based on actual measurements and negotiated rates, which are determinable as and when the work under the said contracts are completed.

4. The Company has entered into agreements with land owners under which the Company is required to make payments based on the terms/ milestones stipulated under the respective agreements.

5. The Company has entered into joint development agreements with owners of land for its construction and development. Under the agreements the Company is required to pay certain payments/ deposits to the owners of the land and share in built up area/ revenue from such developments in exchange of undivided share in land as stipulated under the agreements. Further the Company has given guarantees in favour of certain Joint Development partners without any commission charged on such guarantees considering the economic interest with such partners. Accordingly, management is of the view that these guarantees are not prejudicial to the interests of the Company.

6. The Company has made commitment to subscribe to further capital in certain of its subsidiaries and jointly controlled entities based on operations of such entities.

7. The Company has Investment in certain subsidiaries which are yet to commence its project activities. The management of the subsidiaries is in process of evaluating/ obtaining relevant approvals for commencement of project and expects recovery of its investments in due course of time.

42 CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)

C In Million

Particulars

As at 31 March 2022

As at 31 March 2021

1 Claims against Company not acknowledged as debts

a. Disputed Value Added Tax

413

663

b. Disputed Service Tax

404

384

c. Disputed Income Tax

99

81

d. Others

130

130

The above amounts does not include penalties, if any, that may be levied by the authorities when the disputes are settled.

2 Corporate guarantees given on behalf of other entities (Refer notes 41 & 53)

49,115

84,180

The Company does not expect any reimbursement in respect of the above contingent liability and it is not practicable to estimate the timings of the cash outflows, if any, in respect of matters above pending resolution of the arbitration/ appellate proceedings and it is not probable that an outflow of resources will be required to settle the above obligations/ claims.

3 During the previous years, the Company received judgement from the Hon’ble Supreme Court of India, quashing earlier order of Hon’ble High Court of Madras which had set aside a demand raised by the Chennai Metropolitan Development Authority against the Company pertaining to revised charges on account of Premium Floor Space Index amounting to C 908 million in relation to a residential project under Joint Development Agreement.

Based on the advice of the independent legal counsel, management of the Company believes that the Company has rights under the Joint Development Agreement to recover such additional charges on account of Premium Floor Space from the land owner and is currently in discussions with the land owner. Without prejudice to its rights, the management had made adequate provision.

4 The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business, including certain litigation for lands acquired by it for construction purposes, either through joint development agreements or through outright purchases. These cases are pending with various courts and are scheduled for hearings. The management believes that these cases will not adversely effect its financial statements.

C Company as a lessor

The Company has given Investment properties, plant and machineries and furniture and fixtures owned by the Company under operating lease, which include (a) leases that are renewable on a yearly basis, (b) cancellable at the Company’s option and (c) other long-term leases. The lessee does not have an option to purchase the property at the expiry of the lease term. Further the Company has taken certain properties under lease and has also given such properties on lease under similar terms under which the Company has taken it on lease.

44 SEGMENT INFORMATION

The Chief Operating Decision Maker reviews the operations of the Company as a real estate development activity and letting out of developed properties, which is considered to be the only reportable segment by the Management. The Company’s operations are in India only.

45 EMPLOYEE BENEFIT PLANS

(i) Defined Contribution Plans : The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.

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:

Note: The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

(ii) Defined Benefit Plan : The Company provides gratuity for employees who are in continuous services for a period of 5 years. The amount of gratuity is payable on retirement / termination, computed based on employees last drawn basic salary per month. The Company makes contribution to Life Insurance Corporation (LIC) Gratuity trust to discharge the gratuity liability.

g. Sensitivity analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and employee attrition. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

h. Estimated amount of Gratuity contribution over the next one year is C 10 Million, one to three years is C 30 Million and greater than three years is C 142 Million.

(iii) Other Employee Benefits - Compensated absences

The leave obligations cover the Company’s liability for earned leave and is not funded.

Leave encashment benefit expensed in the Statement of Profit and Loss for the year is C 13 Million (31 March 2021: C 6 Million)

Leave encashment benefit outstanding is C 57 Million (31 March 2021 : C 51 Million).

46 There are no foreign currency exposures as at 31 March 2022 (31 March 2021 - Nil) that have not been hedged by a derivative instrument or otherwise.

47 Refer Annexure I for disclosures under Regulation 34 (3) and 53(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

50 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the acquisition and Company’s real estate operations. The Company’s principal financial assets include investments, trade and other receivables, cash and cash equivalents, land advances and refundable deposits that derive directly from its operations.

The management is of the view that the terms and conditions of the investments made, guarantees provided, security given, land advances, refundable deposits, current account with partnership firms, loans and advances are not prejudicial to the interest of the Company considering its economic interest and furtherance of the business objectives.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The senior management ensures 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. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

I 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 risk. The Company has no exposure to commodity prices as it does not deal in derivative instruments whose underlying is a

The sensitivity analysis in the following sections relate to the position as at 31 March 2022 and 31 March 2021. The sensitivity analysis have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt are constant.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions.

The following assumptions have 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 2022 and 31 March 2021.

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 and shortterm debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. The Company does not have any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a possible change in interest rates on that portion of borrowings outstanding at the balance sheet date. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

II 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 from its operating activities (primarily trade receivables) and from its financing activities, including refundable joint development deposits, security deposits, loans to employees and other financial instruments.

Trade and other receivables

Trade receivables of the Company comprises of receivables towards sale of properties, rental receivables and other receivables.

Receivables towards sale of property - The Company is not substantially exposed to credit risk as property is delivered on payment of dues. However the Company make provision for expected credit loss where any

property developed by the Company is delayed due to litigation as further collection from customers is expected to be realised only on final outcome of such litigation.

Receivables towards rental receivables - The Company is not substantially exposed to credit risk as Company collects security deposits from lessee.

Other Receivables - Credit risk is managed as per 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 customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Refundable joint development deposits

The Company is subject to credit risk in relation to refundable deposits given under joint development arrangements. The management considers that the risk is low as it is in the possession of the land and the property share that is to be delivered to the land owner under the joint development arrangements.

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 Balance Sheet at 31 March 2022 and 31 March 2021 is the carrying amounts.

III Liquidity risk

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 payments:

51 CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, securities 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 maintain strong credit rating and healthy capital ratios in order to support its business and maximise the shareholder value.

The Company, through its Board of Directors 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 debt equity ratio, which is net debt divided by total capital. The Company’s policy is to keep the debt equity ratio below 1.00. The Company includes within net debt, interest bearing loans and borrowings (excluding borrowings from group companies) less cash and cash equivalents, current investments, other bank balances and margin money held with banks. The disclosure below could be different from the debt and equity components which have been agreed with any of the lenders.

52 DETAILS OF EXCEPTIONAL ITEMS

a. During the year ended 31 March 2021, Consequent to the approvals received from a committee of the Board of Directors on 9 November 2020, the Company had entered into term sheet for sale of certain of the Company’s direct/ indirect interest in certain commercial offices, retail and hotel properties, mall management and identified maintenance business (‘Proposed Transaction’). Subsequently the shareholders in their meeting on 11 December 2020, had approved the proposed transaction. As the Company had not entered into any definitive agreements as at 31 December 2020, pursuant to the requirements of Ind AS 105 - Non Current Assets Held for Sale and Discontinued Operations, the Company had classified the assets and liabilities pertaining to the proposed transaction as ‘Assets classified as held for sale/liabilities directly associated with assets classified as held for sale’, and depreciation had not been charged on such assets effective 9 November 2020.

The Company had entered into definitive agreements and transferred 100% equity stake in Prestige Amusements Private Limited and certain completed commercial projects on a slump sale basis. Of the total agreed consideration, C 1,503 million was deferred on occurrence or non-occurrence of certain contingent events and was not recognised as at 31 March 2021. Consequently, the loss of C 813 million arising from the aforesaid transaction was accounted as exceptional item for the year ended 31 March 2021.

During the year ended 31 March 2022, of the above deferred consideration, the Company has received

C 1,063 million and recognised as an exceptional item. The balance amount of C 440 million is still deferred as at 31 March 2022.

b. During the year ended March 31, 2022, the Company has divested its holdings in Prestige City Estates Private Limited (‘PCEPL’) to a third-party investor. Post such divestment in Prestige City Estates Private Limited, based on legal advice obtained, the Company does not have any continuing or future obligations for repayment of its share of gain not recorded earlier as required under Ind AS. Accordingly, the amount received and realised amounting to C 4,371 million has been considered as an exceptional item.

c. During the year ended 31 March 2022, the Company has divested directly/ indirectly 50% of stake in Prestige Beta Projects Private Limited and Dashanya Tech Parkz Private Limited. Further the Company has on a slump sale basis transferred a particular business undertaking to Kochi Cyber Green Private Limited for a total consideration of C 440 million resulting in exceptional loss of C 35 million.


55 REFER ANNEXURE III FOR OTHER STATUTORY INFORMATION.

56 a. The Company had entered into a registered Joint

Development Agreement (JDA) with a certain land owner (the “Land Owner Company”) to develop a residential project (“the Project”). Under the said JDA, the Company acquired development rights over a certain parcel of land of the Land Owner Company and in exchange was required to provide the Land Owner Company identified developed units with a certain specified built-up area (the ""Land Owner Company’s share""). The Company had also incurred Transferrable Development Rights (TDR’s) of C 881 Million which are recoverable from the Land Owner Company along with an interest of 12% per annum, from the sale of units from the residential project belonging to the Land Owner Company. Further the Company has pending claims receivable from the Land Owner Company without prejudice to its legal position.

As at 31 March 2022, gross receivables due from the Land Owner Company towards TDR’s aggregate to C 923 Million. The Land Owner Company has been ordered to be wound up by the Hon’ble High Court of Judicature during the year ended 31 March 2017. The land owner Company has challenged the court order, the legal proceedings of which is pending with the Judicature.

Considering the rights of the Company under the JDA, the status of development achieved so far in the Project; the plans for completion of the Project; the Escrow arrangement with the Company, Land Owner Company and the Lender of the Land Owner Company (to whom the Land Owner Company’s share of developed units have been mortgaged), which provides for manner of recovery of TDR dues; the fact that the handing over formalities of the underlying units are yet to be completed, the Company expects to recover the above gross dues towards TDR’s and has accordingly classified them as good and recoverable in the financial statement.

b. As at March 31, 2022, the Company is carrying inventory (including development costs) in relation to an ongoing project amounting to C 2,145 million. The portion of land on which the project is being executed is subject to litigation for which the Company had received favourable order from the court of law. However, there are certain writ appeals, filed against the favourable order received by the Company. The outcome of the project and sale of inventory is dependent on the outcome of the writ appeals.

The management based on legal opinion obtained, is confident that the above matter would be in favour of the Company and accordingly, no adjustments have been made to the carrying value of the inventory.

The outbreak of COVID-19 pandemic globally and in India has caused significant disturbance and slowdown of economic activities. Due to the lockdown announced by the Government, the Company’s operations were slowed down/ suspended for part of the current period and accordingly the accompanying financial statement are adversely impacted and not fully comparable with those of the earlier periods.

The Company’s management has considered the possible effects that may result from the COVID-19 pandemic on the carrying value of assets including property, plant and equipment, investment property, capital work-inprogress, intangible assets, investments, inventories, loans, receivables, land advances and refundable deposits. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic, the Company, as at the date of approval of these financial statement has used internal and external sources of information to assess the expected future performance of the Company. The Company has performed sensitivity analysis on the assumptions used and based on the current estimates, the Company expects that the carrying amount of these assets are fully recoverable. The management has also estimated the future cash flows with the possible effects that may result from the COVID-19 pandemic and does not foresee any adverse impact on realising its assets and in meeting its liabilities as and when they fall due. The actual impact of the COVID-19 pandemic may be different from that estimated as at the date of approval of these financial statements.

During the year ended 31 March 2022, the business operations of the Company was impacted due to COVID-19 restrictions. Due to the prevailing circumstances, the Company has recognized revenue for the year and the underlying receivables after having regard to the Company’s ongoing discussions with certain customers on best estimate basis.

During the year ended 31 March 2022, the Company’s management has also made a detailed assessment of the progress of construction work on its ongoing projects during the period of lockdown and has concluded that the same was only a temporary slowdown in activities and has accordingly capitalised/ inventorised the borrowing costs incurred in accordance with Ind AS 23.


Mar 31, 2021

i. The Company’s investment properties consists of commercial properties in India. The Management has determined that the investment properties consist of two classes of assets - office and retail - based on the nature, characteristics and risks of each property.

ii. As at March 31, 2021 and March 31, 2020, the fair values of the properties (excluding Right to use assets) are '' 7,536 million and '' 10,570 million respectively. These valuations are based on valuations performed by Jones Lang LaSalle Property Consultants India Private Limited, an accredited independent valuer. A valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied. The fair valuation has been carried out by the Management for material investment properties.

iii. Investment property with carrying amount of '' 2,093 million (March 31, 2020: '' 4,987 million) have been pledged to secure borrowings of the Company (See Note 22 & 26). The investment property have been pledged as security for bank loans under a mortgage.

iv. The fair value of the Company’s investment properties have been arrived at using discounted cash flow 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, terminal yields and discount rates which are based on comparable transactions and industry data.

vi. Investment properties under construction

Capital work-in progress includes investment properties under construction amounting to '' 6,295 million (March 31, 2020 -'' 6,743 million). The Management is of the view that the fair value of investment properties under construction cannot be reliably measured and hence fair value disclosures pertaining to investment properties under construction have not been provided.

Capital work-in progress with carrying amount of '' 3,534 million (March 31, 2020: '' 4,045 million) have been pledged to secure borrowings of the Company (See Notes 22 & 26). The Capital work-in progress have been pledged as security for bank loans under a mortgage.

On January 16, 2020, the Company at the Extra Ordinary General meeting has taken approval from its shareholders for issuance of 13,441,654 equity shares at a price of '' 325 per equity share, on a preferential basis to an investor. Subsequently the Company has received subscription money amounting to '' 4,369 million pursuant to which the Company has allotted the equity shares to the investor on January 24, 2020.

On February 5, 2020, the Company approved allotment of 12,420,000 equity shares at a price of '' 372.50 per equity share to eligible qualified institutional buyers aggregating to '' 4,626 million.

The purpose of the issue of QIP and preferential issue was for use of issue proceeds by the Company for general corporate purposes. As at March 31 2021, the Company utilised '' 8,995 million (March 31 2020 : '' 6,495 million) for general corporate purposes and '' Nil (March 31 2020 - '' 2,500 million) has been kept as fixed deposit with bank.

22 (b) Lease Rental Discounting Loans (Included under Term loans)

Security Details:

Mortgage of certain immovable properties of the Company

Charge over the book debts, operating cash flows, revenues and receivables of the projects.

Assignment of rent receivables from various properties.

Repayment and other terms:

Repayable within 120-180 instalments commencing from April 2015.

Personal guarantee of certain directors of the Company.

These loans are subject to interest rates ranging from 8.99% to 9.40% per annum.

22 (c) Project loans and general loans (Included under Term loans)

Mortgage of certain immovable properties of the Company

Charge over the project material and other assets related to the projects.

Repayment and other terms:

Repayable in one bullet instalments and monthly repayment with period ranging from 24-66 months Personal guarantee of certain directors of the Company.

These loans are subject to interest rates ranging from 9.00% to 10.50% per annum.

22 (d) Refer Note No.28 for current maturities of long-term debt.

22 (e) Secured, Redeemable non-convertible debentures

During the year ended March 31, 2016, the Company issued 500 secured redeemable non-convertible debentures (A Rating) of '' 10,000,000 each in three tranches, having tenor up to five years, aggregating '' 5,000 million on a private placement basis. These debenture are secured by exclusive charge by way of mortgage over certain projects of the Company (hereinafter referred to as ’mortgaged property’), exclusive charge over receivables from sale of mortgaged property and exclusive charge over debt service reserve account and escrow accounts of mortgaged property. The debentures are repayable in three tranches, Tranche 1 - '' 1,500 million on July 24, 2018, Tranche 2 - '' 3,000 million on July 24, 2020 and Tranche 3 - '' 500 million on April 23, 2018 and carry a coupon rate of 11.35%, 11.40% and 11.35% respectively. The Company has a call option to redeem Tranche 2 debenture at the end of 3rd year from the date of allotment i.e. July 24, 2018. As at March 31, 2021 the debentures have been fully redeemed.

During the year ended March 31, 2019, the Company issued 3,500 rated, unlisted, secured redeemable, non-convertible debentures (A Rating) of '' 1,000,000 each, having tenor up to August 2023, aggregating '' 3,500 million on a private placement basis. These debenture are secured by exclusive charge by way of mortgage over certain projects of the Company (hereinafter referred to as ’mortgaged property’), exclusive charge over receivables from sale of mortgaged property and exclusive charge over debt service reserve account and escrow accounts of mortgaged property. The debentures are repayable in two tranches, Tranche 1 - '' 1,000 million in August 2021 and Tranche 2 - '' 2,500 million in August 2023 carry a coupon rate of 10.50%. The Company/ debenture holders has a call option to redeem Tranche 2 debenture at the end of 3rd year from the date of allotment.

The Company has created debenture redemption reserve as per Section 71 of the Companies Act, 2013, on a pro rata basis amounting to '' 550 million (March 31, 2020 - '' 1,045 million).

22 (f) The Company pursuant to definitive agreements (Refer note 50) has transferred the related loans/borrowings in favour of acquirer. The Company is currently in the process of completion of formalities relating to transfer of associated loans/ borrowings and same is expected to be completed by September 2021. Hence, same has not been included above.

26 (b) Security Details:

Mortgage of certain immovable properties of the Company including related inventories, project receivables and undivided share of land belonging to the Company.

Mortgage of certain immovable properties belonging to and Corporate Guarantee from four subsidiary companies and three firms in which the Company is a partner.

Charge over receivables of various projects.

Lien against fixed deposits.

26 (c) Repayment and other terms:

Repayable within 10-60 instalments commencing from October 2018.

Personal guarantee of certain directors of the Company.

These secured loans are subject to interest rates ranging from 8 % to 11.40 % per annum.

26 (d) Inter corporate deposits and loans from other are subject to interest rates ranging from 8.35% to 10.25% per annum and are repayable on demand.

3. The Company enters into construction contracts with its vendors. The final amounts payable under such contracts will be based on actual measurements and negotiated rates, which are determinable as and when the work under the said contracts are completed.

4. The Company has entered into agreements with land owners under which the Company is required to make payments based on the terms/milestones stipulated under the respective agreements.

5. The Company has entered into joint development agreements with owners of land for its construction and development. Under the agreements the Company is required to pay certain payments/ deposits to the owners of the land and share in built up area/revenue from such developments in exchange of undivided share in land as stipulated under the agreements. Further the Company has given guarantees in favour of certain Joint Development partners without any commission charged on such guarantees considering the economic interest with such partners.

6. The Company has made commitment to subscribe to further capital in certain of its subsidiaries and jointly controlled entities based on operations of such entities.

7. The Company has Investment in certain subsidiaries which are yet to commence its project activities. The management of the subsidiaries is in process of evaluating/obtaining relevant approvals for commencement of project and expects recovery of its investments in due course of time.

The Company does not expect any reimbursement in respect of the above contingent liability and it is not practicable to estimate the timings of the cash outflows, if any, in respect of matters above pending resolution of the arbitration/ appellate proceedings and it is not probable that an outflow of resources will be required to settle the above obligations/claims.

3. During the previous year, the Company received judgement from the Hon''ble Supreme Court of India, quashing earlier order of Hon''ble High Court of Madras which had set aside a demand raised by the Chennai Metropolitan Development Authority against the Company pertaining to revised charges on account of Premium Floor Space Index amounting to '' 908 million in relation to a residential project under Joint Development Agreement.

During the previous year ended 31 March 2020, based on the advice of the independent legal counsel, management of the Company believes that the Company has rights under the Joint Development Agreement to recover such additional charges on account of Premium Floor Space from the land owner and is currently in discussions with the land owner. Without prejudice to its rights, the management had made adequate provision.

4. The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business, including certain litigation for lands acquired by it for construction purposes, either through joint development agreements or through outright purchases. These cases are pending with various courts and are scheduled for hearings. The management believes that these cases will not adversely effect its financial statements.

42. SEGMENT INFORMATION

The Chief Operating Decision Maker reviews the operations of the Company as a real estate development activity and letting out of developed properties, which is considered to be the only reportable segment by the Management. The Company’s operations are in India only.

43. EMPLOYEE BENEFIT PLANS

(i) Defined Contribution Plans: The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.

Note: The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

(ii) Defined Benefit Plan: The Company provides gratuity for employees who are in continuous services for a period of 5 years. The amount of gratuity is payable on retirement/termination, computed based on employees last drawn basic salary per month. The Company makes contribution to Life Insurance Corporation (LIC) Gratuity trust to discharge the gratuity liability.

Risk exposure

The defined benefit plan typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

h) Estimated amount of Gratuity contribution over the next one year is '' 10 million, one to three years is '' 30 million and greater than three years is '' 132 million.

(iii) Other Employee Benefits - Compensated absences

The Leave obligations cover the Company’s liability for earned leave and is not funded.

Leave encashment benefit expensed in the Statement of Profit and Loss for the year is '' 6 million (March 31, 2020: '' 13 million).

Leave encashment benefit outstanding is '' 51 million (March 31, 2020: '' 53 million).

44. There are no foreign currency exposures as at March 31, 2021 (March 31, 2020 - Nil) that have not been hedged by a derivative instrument or otherwise.

45. Refer Annexure I for disclosures under Regulation 34 (3) and 53(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

48. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the acquisition and Company’s real estate operations. The Company’s principal financial assets include investments, trade and other receivables, cash and cash equivalents, land advances and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The senior management ensures 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. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

I. 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 risk. The Company has no exposure to commodity prices as it does not deal in derivative instruments whose underlying is a commodity. Financial instruments affected by market risk include loans and borrowings and refundable deposits.

The sensitivity analysis in the following sections relate to the position as at March 31, 2021 and March 31, 2020. The sensitivity analysis have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt are constant.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions.

The following assumptions have 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 March 31, 2021 and March 31, 2020.

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 and short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. The Company does not have any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a possible change in interest rates on that portion of borrowings outstanding at the balance sheet date. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

II. 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 from its operating activities (primarily trade receivables) and from its financing activities, including refundable joint development deposits, security deposits, loans to employees and other financial instruments.

Trade and other receivables

Trade receivables of the Company comprises of receivables towards sale of properties, rental receivables and other receivables.

Receivables towards sale of property - The Company is not substantially exposed to credit risk as property is delivered on payment of dues. However the Company make provision for expected credit loss where any property developed by the Company is delayed due to litigation as further collection from customers is expected to be realised only on final outcome of such litigation.

Receivables towards rental receivables - The Company is not substantially exposed to credit risk as Company collects security deposits from lessee.

Other Receivables - Credit risk is managed as per 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 customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Refundable joint development deposits

The Company is subject to credit risk in relation to refundable deposits given under joint development arrangements. The management considers that the risk is low as it is in the possession of the land and the property share that is to be delivered to the land owner under the joint development arrangements.

Financial instrument 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 Balance Sheet at March 31, 2021 and March 31, 2020 is the carrying amounts.

49. CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, securities 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 maintain strong credit rating and healthy capital ratios in order to support its business and maximise the shareholder value.

The Company, through its Board of Directors 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 debt equity ratio, which is net debt divided by total capital. The Company’s policy is to keep the debt equity ratio below 1.00. The Company includes within net debt, interest bearing loans and borrowings (excluding borrowings from group companies) less cash and cash equivalents, current investments, other bank balances and margin money held with banks. The disclosure below could be different from the debt and equity components which have been agreed with any of the lenders.

50. Consequent to the approvals received from a committee of the Board of Directors on November 9, 2020, the Company had entered into term sheet for sale of certain of the Company’s direct/ indirect interest in certain commercial offices, retail and hotel properties, mall management and identified maintenance business (‘Proposed Transaction’). Subsequently the shareholders in their meeting on December 11, 2020, had approved the proposed transaction. As the Company had not entered into any definitive agreements as at December 31, 2020, pursuant to the requirements of Ind AS 105 - Non-Current Assets Held for Sale and Discontinued Operations, the Company had classified the assets and liabilities pertaining to the proposed transaction as ‘Assets classified as held for sale/liabilities directly associated with assets classified as held for sale’, and depreciation had not been charged on such assets effective November 9, 2020.

The Company has entered into definitive agreements and transferred 100% equity stake in Prestige Amusements Private Limited and certain completed commercial projects on a slump sale basis. Of the total agreed consideration, ''1,503 million is deferred on occurrence or non-occurrence of certain contingent events and has not been recognised as at March 31, 2021. Consequently, the loss of '' 813 million arising from the aforesaid transaction has been accounted as exceptional item for the year ended March 31, 2021.

Note: AH transactions with the related parties are in compliance with Section 177 and 188 of Companies Act, 2013 (if applicable) and the details have been disclosed in the financial statements, as required by the applicable accounting standards except for remuneration of Chief Executive Officer, Chief Financial Officer and Company Secretary.

The Company has been awarded the right to acquire 100% equity share capital of Ariisto Developers Private Limited, in accordance with the Resolution Plan approved by National Company Law Tribunal on March 23, 2021. The Company, will acquire the control upon implementation of the approved Resolution Plan. The Company has given a Bank Guarantee of '' 250 million as of March 31, 2021.

53. The Company had entered into a registered Joint Development Agreement (JDA) with a certain land owner (the ’Land Owner Company'') to develop a residential project (’the Project’). Under the said JDA, the Company acquired development rights over a certain parcel of land of the Land Owner Company and in exchange was required to provide the Land Owner Company identified developed units with a certain specified built-up area (the ''Land Owner Company’s share''). The Company had also incurred Transferrable Development Rights (TDR’s) of '' 881 million which are recoverable from the Land Owner Company along with an interest of 12% per annum, from the sale of units from the residential project belonging to the Land Owner Company. Further the Company has pending claims receivable from the Land Owner Company without prejudice to its legal position.

As at March 31, 2021, gross receivables due from the Land Owner Company towards TDR’s aggregate to '' 923 million. The Land Owner Company has been ordered to be wound up by the Hon’ble High Court of Judicature during the year ended March 31, 2017. The land owner Company has challenged the court order, the legal proceedings of which is pending with the Judicature.

Considering the rights of the Company under the JDA, the status of development achieved so far in the Project; the plans for completion of the Project; the Escrow arrangement with the Company, Land Owner Company and the Lender of the Land Owner Company (to whom the Land Owner Company’s share of developed units have been mortgaged), which provides for manner of recovery of TDR dues; the fact that the handing over formalities of the underlying units are yet to be completed, the Company expects to recover the above gross dues towards TDR’s and has accordingly classified them as good and recoverable in the financial statement.

54. The outbreak of COVID-19 pandemic globally and in India has caused significant disturbance and slowdown of economic activities. Due to the lockdown announced by the Government, the Company’s operations were slowed down/suspended for part of the current period and accordingly the accompanying financial statement are adversely impacted and not fully comparable with those of the earlier periods.

The Company’s management has considered the possible effects that may result from the COVID-19 pandemic on the carrying value of assets including property, plant and equipment, investment property, capital work-in-progress, intangible assets, investments, inventories, loans, receivables, land advances and refundable deposits. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic, the Company, as at the date of approval of these financial statement has used internal and external sources of information to assess the expected future performance of the Company. The Company has performed sensitivity analysis on the assumptions used and based on the current estimates, the Company expects that the carrying amount of these assets are fully recoverable. The management has also estimated the future cash flows with the possible effects that may result from the COVID-19 pandemic and does not foresee any adverse impact on realising its assets and in meeting its liabilities as and when they fall due. The actual impact of the COVID-19 pandemic may be different from that estimated as at the date of approval of these financial statements.

During the year ended March 31, 2021, the business operations of the Company was impacted due to COVID-19 restrictions. Due to the prevailing circumstances, the Company has recognised revenue for the year and the underlying receivables after having regard to the Company’s ongoing discussions with certain customers on best estimate basis.

During the year ended March 31, 2021, the Company’s management has also made a detailed assessment of the progress of construction work on its ongoing projects during the period of lockdown and has concluded that the same was only a temporary slowdown in activities and has accordingly capitalised/ inventorised the borrowing costs incurred in accordance with Ind AS 23.

(A) Related party relationships are as identified by the Company on the basis of information available with them and relied upon by the auditors.

(B) The above amounts exclude reimbursement of expenses.

(C) No amount is / has been written off or written back during the year in respect of debts due from or to related parties.

(D) The closing balances given above under the head Guarantees and Collaterals represent the closing balances of the facilities availed by the recipient of the Guarantee at the year end. The undrawn amounts of the facilities in respect of which the Company or other entities as the case may be are contingently liable are as follows:

Undrawn amount in respect of facilities guaranteed by the Company mentioned above - '' 14,440 Million (31 March 2020

- ''16,040 Million)

Undrawn amount in respect of facilities availed by the Company which are guaranteed by other entities mentioned above

- '' 797 Million (31 March 2020 - '' 520 Million)


Mar 31, 2019

NOTES FORMING PART OF FINANCIAL STATEMENTS

52 REVENUE FROM CONTRACTS WITH CUSTOMERS:

The Company has adopted Ind AS 115 using the modified retrospective method and accordingly has provided the disclosures required by Ind AS 115 for the year ended 31 March 2019 and the comparative information for the year ended 31 March 2018 has not been disclosed:

i) 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.

Rs In Million

Particulars

Year ended 31 March 2019

Timing of transfer of goods or services

Revenue from goods or services transferred to customers at a point in time

9,681

Revenue from goods or services transferred over time

7,157

16,838

ii) Contract balances and performance obligations

Rs In Million

Particulars

Year ended 31 March 2019

Trade receivables

9,785

Contract liabilities *

57,334

67,119

* Contract liabilities represent amounts collected From customers based on contractual milestones pursuant to agreements executed with such customers For construction and sale of residential/ commercial units. The terms of agreements executed with customers require the customers to make payment of consideration as Fixed in the agreement on achievement of contractual milestones though such milestones may not necessarily coincide with the point in time at which the Company transfers control of such units to the customer. The Company is liable For any structural or other defects in the residential/ commercial as per the terms of the agreements executed with customers and the applicable laws and regulations.

Set out below is the amount of revenue recognised From:

Rs In Million

Particulars

Year ended 31 March 2019

Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period

7,162

Revenue recognised in the reporting period from performance obligations satisfied in previous periods

Aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of the end of the reporting period **

85,825

** The Company expects to satisfy the said performance obligations when (or as) the underlying real estate projects to which such performance obligations relate are completed. Such real estate projects are in various stages of development as at 31 March 2019.

iii) Reconciliation the amount of revenue recognised in the statement of profit and loss with the contracted price

Rs ln Million

Particulars

Year ended 31 March 2019

Revenue as per contracted price

9,917

Less: Discount/ rebates

236

Revenue From contract with customers

9,681

iv) Assets recognised From the costs to obtain or Fulfil a contract with a customer

Rs In Million

Particulars

Year ended 31 March 2019

Inventories

40,442

Prepaid expenses (represents brokerage costs pertaining to sale of residential units)

548

v) Impact of adoption of Ind AS 115 Revenue From Contracts with Customers

The impact of adoption of lnd AS 115 Revenue from Contracts with Customers on the financial statements for the year ended 31 March 2019 is tabulated below

The impact of lnd AS 115 on the Company''s retained earnings as at 1 April 2019 is as follows

Rs In Million

Particulars

Increase/ (decrease)

Assets

Inventories

28,154

Trade receivables (Unbilled Revenue)

(5,273)

Prepaid expenses

481

Current account in partnership firms

(5,196)

Deferred tax assets

2,048

Total assets

20,214

Liabilities

Contract liabilities

29,215

Total liabilities

29,215

Total adjustment to retained earnings

(9,001)

Explanation of reasons For transitional impact of adopting Ind AS 115 as at 1 April 2018

For sale of real estate inventory property that were recognised on the percentage-of-completion basis under the previous accounting in accordance with Guidance Note on Accounting for Real Estate Transactions (Ind AS) issued by the Institute of Chartered Accountants of India, the Company has determined that they do not meet the criteria for recognising revenue over time under Ind AS 115 and that control is transferred at a point in time (For details of when control is transferred refer significant accounting policy).

The Company has applied the modified retrospective approach under Ind AS 115 to all contracts as of 01 April, 2018, on account of which the Company has deferred revenue and cost of sales as at that date with respect to contracts that do not meet the revenue recognition criteria under Ind AS 115. Further the incremental costs of obtaining contracts with respect to those contracts has been recognised as an asset under Prepaid expenses. The same has resulted in recognition of contract liabilities, reversal of unbilled revenue, recognition of prepaid expenses and recognition of inventories as at 01 April, 2018. The Company has given impact of application of Ind AS 115 by debit to retained earnings after giving tax effect to transitional adjustments.

Impact on Balance sheet as at 31 March 2019, had the previous Ind AS was followed:

Rs ln Million

Particulars

31 March 2019 (as reported)

Increase/ 31 March 2019 (decrease) (without Ind AS 115 impact)

A.

ASSETS

(1)

Non-current assets

(a)

Property, plant and equipment

1,082

-

1,082

(b)

Capital work-in-progress (including Investment property under construction)

6,595

-

6,595

(c)

Investment property

7,495

-

7,495

(d)

Other intangible assets

227

-

227

(e)

Financial assets

50,364

-

50,364

(f)

Deferred tax assets (net)

2,741

(258)

2,483

(9)

Income tax assets (net)

2,125

-

2,125

(h)

Other non-current assets

1,036

-

1,036

71,665

(258)

71,407

(2)

Current assets

(a)

Inventories

80,621

(11,965)

68,656

(b)

Financial assets

26,623

(1,630)

24,993

(c)

Other current assets

3,982

(294)

3,688

111,226

(13,889)

97,337

Total

182,891

(14,147)

168,744

B.

EQUITY AND LIABILITIES

(1)

Equity

(a)

Equity share capital

3,750

-

3,750

(b)

Other Equity

38,749

(1,150)

37,599

42,499

(1,150)

41,349

(2)

Non-current liabilities

(a)

Financial Liabilities

15,737

-

15,737

(b)

Provisions

122

-

122

(c)

Other non-current liabilities

85

-

85

15,944

-

15,944

(3)

Current liabilities

(a)

Financial Liabilities

51,781

-

51,781

(b)

Other current liabilities

71,303

(12,997)

58,306

(c)

Provisions

1,364

-

1,364

124,448

(12,997)

111,451

182,891

(14,147)

168,744

Explanation of reasons For significant changes

Impact of transitional adjustments in accordance with Ind AS 115 along with impact during the year as detailed in explanation of reasons for significant changes under note to Statement of Profit and loss.

Impact on statement of profit and loss for the year ended 31 March 2019, had the previous Ind AS was Followed:

Rs In Million

Particulars

31 March 2019 (as reported)

Increase/ (decrease)

31 March 2019 (without Ind AS 115 impact)

Revenue

Revenue from Operations

24,411

11,367

35,778

Other Income

1,382

-

1,382

25,793

11,367

37,160

Expenses

(Increase)/ decrease in inventory

(14,051)

11,965

(2,086)

Contractor cost

10,588

-

10,588

Purchase of Project Material

2,460

-

2,460

Purchase of completed units

996

-

996

Land cost

9,043

-

9,043

Rental expense

3,032

-

3,032

Facility management expenses

680

-

680

Rates and taxes

1,693

-

1,693

Employee benefits expense

1,873

-

1,873

Finance costs

4,188

-

4,188

Depreciation and amortisation expense

635

-

635

Other expenses

1,676

294

1,970

22,813

12,259

35,072

Profit before tax

2,980

(892)

2,088

Tax expense :

Current tax

105

-

105

Deferred tax charge/ (credit)

(17)

258

241

88

258

346

Profit after tax

2,892

(1,150)

1,742

Other Comprehensive income

(1)

-

(1)

Total Comprehensive Income

2,891

(1,150)

1,741

Earning per share (equity shares, par value of Rs 10 each)

Basic and diluted EPS (in Rs)

7.71

(3.07)

4.64

Explanation of reasons For significant changes

Impact of Percentage Completion method in relation to sale of real estate inventory property as against at a point of time recognition in Revenue, Cost of sales and differential accounting treatment of incremental costs of obtaining contracts along with consequential tax impact.

53 The Company had entered into a registered Joint Development Agreement (JDA) with a certain land owner (the "Land Owner Company") to develop a residential project ("the Project"). Under the said JDA, the Company acquired development rights over a certain parcel of land of the Land Owner Company and in exchange was required to provide the Land Owner Company identified developed units with a certain specified built-up area (the "Land Owner Company''s share"). The Company had also incurred Transferable Development Rights (TDR''s) of Rs 881 Million (31 March 2018 - Rs 881 Million) which are recoverable from the Land Owner Company along with an interest of 12% per annum, from the sale of units from the residential project belonging to the Land Owner Company.

As at 31 March 2019, gross receivables due from the Land Owner Company towards TDR''s aggregate to Rs 923 Million (31 March 2018 - Rs 923 Million). The Land Owner Company has been ordered to be wound up by the Hon''ble High Court of Judicature during the year ended 31 March 2017. The land owner Company has challenged the court order, the legal proceedings of which is pending with the Judicature. Considering the rights of the Company under the JDA, the status of development achieved so far in the Project; the plans for completion of the Project; the Escrow arrangement with the Company, Land Owner Company and the Lender of the Land Owner Company (to whom the Land Owner Company''s share of developed units have been mortgaged), which provides for manner of recovery of TDR dues; the fact that the Company needs to be a confirming party for registering the sale deed for the underlying units of the Land Owner Company; and that the handing over formalities of the underlying units are yet to be completed, the Company expects to recover the above gross dues towards TDR''s and has accordingly classified them as good and recoverable in the financial statements.

54 During the previous year, the Company has entered into an Memorandum of understanding for sale of certain properties/entities to Prestige Exora Business Parks Limited ("Exora"), whereby the Company and Exora has mutually agreed to convert the amount payable to Exora towards ICD & partnership investments amounting to Rs 6,315 million as advance for purchase of land. During the year, the Company and Exora concluded that the proposed transaction is unlikely to materialise and settled against payable to Exora.

Signatures to Notes 1 to 54

As per our report of even date

For and on behalf of the board of directors of Prestige Estates Projects Limited

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm registration number: 101049W/ E300004

per Adarsh Ranka

Irran Razack Rezwan Razack

Partner

Chairman & Managing Director Joint Managing Director

Membership No.: 209567

DIN: 00209022 DIN: 00209060

Venkat K Naravana VVBS Sarma

Chief Executive Officer Chief Financial Officer

Manoj Krishna JV

Company Secretary

Place: Bengaluru

Place: Bengaluru

Date: 27 May 2019

Date: 27 May 2019


Mar 31, 2018

1 CORPORATE INFORMATION

M/s. Prestige Estates Projects Limited (“the Company”) was incorporated on June 4, 1997 as a company under the Companies Act, 1956 (“the 1956 Act’’). The Company is engaged in the business of real estate development.

The Company is a public limited company incorporated and domiciled in India and has its registered office at Bengaluru, Karnataka, India. Its shares are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

The financial statements have been authorised for issuance by the Company’s Board of Directors on 28 May, 2018.

2 RECENT ACCOUNTING PRONOUNCEMENTS

Standards issued but not yet effective

a. Ind AS 115 Revenue from Contracts with Customers

On March 28, 2018, the Ministry of Corporate Affairs (MCA) has notified Indian Accounting Standard (Ind AS) 115, Revenue from Contracts with Customers.

Under Ind AS 115, revenue is recognised when (or as) the entity satisfies a performance obligation by transferring a promised good or service (i.e., an asset) to a customer (i.e., when (or as) the customer obtains control of that asset) at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Either a full retrospective application or a modified retrospective application is required for accounting periods commencing on or after April 1, 2018.

The Company will adopt Ind AS 115 effective from April 1, 2018. As at the date of issuance of the Company’s financial statements, the Company is in the process of evaluating the requirements of the said standard and the impact on its financial statements in the period of initial application.

b. Amendment to Existing issued Ind AS

The MCA has also carried out amendments of the following accounting standards:

i. Ind AS 21 - The Effects of Changes in Foreign Exchange Rates

ii. Ind AS 40 - Investment Property

iii. Ind AS 12 - Income Taxes

iv. I nd AS 28 - Investments in Associates and Joint Ventures and

v. Ind AS 112 - Disclosure of Interests in Other Entities

The amendment will come into force from April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.

Note:

i. The Company’s investment properties consists of commercial properties in India. The Management has determined that the investment properties consist of two classes of assets - office and retail - based on the nature, characteristics and risks of each property.

ii. As at 31 March 2018 and 31 March 2017, the fair values of the properties are Rs.7,074 million and Rs.3,734 million respectively. These valuations are based on valuations performed by Jones Lang LaSalle Property Consultants India Private Limited, an accredited independent valuer. A valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied. The fair valuation has been carried out by the Management for material investment properties.

iii. The Company has no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements. Investment property with carrying amount of Rs.3,950 million (31 March 2017: Rs.1,104 million) have been pledged to secure borrowings of the Company (See Note 22 & 26). The investment property have been pledged as security for bank loans under a mortgage.

iv. The fair value of the Company’s investment properties have been arrived at using discounted cash flow 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, terminal yields and discount rates which are based on comparable transactions and industry data.

Details of the Company’s investment properties and information about the fair value hierarchy as at 31 March 2018 and 31 March 2017, are as follows:

v. Amounts recognised in Statement of Profit and Loss related to Investment Properties

vi. Investment properties under construction

Capital work-in progress includes investment properties under construction amounting to Rs.5,460 million as at 31 March 2018 (31 March 2017 - Rs.1,650 million). The Management is of the view that the fair value of investment properties under construction cannot be reliably measured and hence fair value disclosures pertaining to investment properties under construction have not been provided. Capital work-in progress with carrying amount of Rs.1,375 million (31 March 2017: Rs.1,049 million) have been pledged to secure borrowings of the Company (See Note 22 & 26). The Capital work-in progress have been pledged as security for bank loans under a mortgage.

7f Refer Note 47 for details of capital account contribution and profit sharing ratio in partnership firms/ limited liability partnership firms

b The Company has only one class of equity shares with voting rights having par value of Rs.10 each. The rights, preferences and restrictions attached to such equity shares is in accordance with the terms of issue of equity shares under the Companies Act, 2013, the Articles of Association of the Company and relevant provisions of the listing agreement.

The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share capital and Debentures) Rules, 2014 (as amended), require the Company to create DRR out of profits of the company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issued. The Company has created debenture redemption reserve on a pro rata basis.

The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering the requirements of the Companies Act, 2013. Thus, the amounts reported above are not distributable in entirety.

Proposed dividend on equity share are subject to approval at the annual general meeting and are not recognised as a liability (including dividend distribution tax thereon) as at 31 March, 2018.

3a Aggregate amount of loans guaranteed by directors

3b Lease Rental Discounting Loans (Included under Term loans)

Security Details :

Mortgage of certain immovable properties of the company

Charge over the book debts, operating cash flows, revenues and receivables of the projects. Assignment of rent receivables from various properties.

Repayment and other terms :

Repayable within 98 - 120 instalments commencing from April 2015.

Personal guarantee of certain directors of the company.

These loans are subject to interest rates ranging from 8.75% to 10.65% per annum.

3c Refer Note No.28 for current maturities of long-term debt.

3d Secured, Redeemable non convertible debentures

During the year ended 31 March 2016, the Company had issued 500 secured redeemable non-convertible debentures (A Rating) of Rs.10,000,000 each in three tranches, having tenor upto five years, aggregating Rs.5,000 million on a private placement basis. These debenture are secured by exclusive charge by way of mortgage over certain projects of the Company (hereinafter referred to as “mortgaged property”), exclusive charge over receivables from sale of mortgaged property and exclusive charge over debt service reserve account and escrow accounts of mortgaged property. The debentures are repayable in three tranches, Tranche 1 -Rs.1,500 million on 24th July 2018, Tranche 2 - Rs.3,000 million on 24th July 2020 and Tranche 3 - Rs.500 million on 23rd April 2018 and carry a coupon rate of 11.35%, 11.40% and 11.35% respectively. The Company has a call option to redeem Tranche 2 debenture at the end of 3rd year from the date of allotment i.e. 24th July 2018.

During the year ended 31 March 2018, the Company has issued 5,000 rated, listed, senior, secured redeemable, non-convertible debentures (A Rating) of Rs.1,000,000 each, having tenor upto June 2022, aggregating Rs.5,000 million on a private placement basis. These debenture are secured by exclusive charge by way of mortgage over certain projects of the Company (hereinafter referred to as “mortgaged property”), exclusive charge over receivables from sale of mortgaged property and exclusive charge over debt service reserve account and escrow accounts of mortgaged property. The debentures are repayable in four equal half yearly instalments commencing from 8th December 2020 and carry a coupon rate of 10% per annum. The Debenture holders has a put option on expiry of 18 months from allotment of debentures, to require the Company to redeem the debentures (in whole or in part) held by it. The Company has a call option to redeem debentures within 3 months after the expiry of 18 months from allotment of debentures.

The Company has created debenture redemption reserve as per Section 71 of the Companies Act, 2013, on a pro rata basis amounting to Rs.967 million (31 March 2017 - Rs.541 million)

4aSecurity Details :

Mortgage of certain immovable properties of the company including inventories and undivided share of land belonging to the Company.

Mortgage of certain immovable properties belonging to and Corporate Guarantee from four subsidiary companies and three firms in which the Company is a partner.

Charge over receivables of various projects.

Lien against fixed deposits.

4b Repayment and other terms :

Repayable within 12 - 60 instalments commencing from April 2016.

Personal guarantee of certain directors of the Company.

These secured loans are subject to interest rates ranging from 9.40 % to 12.50 % per annum.

4cd Inter corporate deposits and other loans are subject to interest rates ranging from 9.25% to 10% per annum.

5a Share of profit from partnership firms for the year ended 31 March 2017 includes an amount of Rs.903 million, being reserves in Subsidiary Companies which were credited to the Company’s current account on conversion of such subsidiary Companies into limited liability partnership firms.

6a Notes relating to Corporate Social Responsibility expenses

(a) Gross amount required to be spent by the company during the year - Rs.106 million (31 March 2017 - Rs.102 million)

(b) Amount spent during the year on:

The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business, including certain litigation for lands acquired by it for construction purposes, either through joint development agreements or through outright purchases. These cases are pending with various courts and are scheduled for hearings. The management believes that these cases will not adversely effect its financial statements.

The Company does not expect any reimbursement in respect of the above contingent liability and it is not practicable to estimate the timings of the cash outflows, if any, in respect of matters above pending resolution of the arbitration/ appellate proceedings and it is not probable that an outflow of resources will be required to settle the above obligations/claims.

7 OPERATING LEASE ARRANGEMENTS

a As a lessee

The Company has taken commercial spaces under operating lease basis which include (a) leases that are renewable on a yearly basis, (b) cancellable at the Company’s option and (c) other long term leases.

b As a lessor

The Company has given Investment properties, plant and machineries and furniture and fixtures owned by the Company under operating lease, which include (a) leases that are renewable on a yearly basis, (b) cancellable at the Company’s option and (c) other long-term leases. The lessee does not have an option to purchase the property at the expiry of the lease term. Further the Company has taken certain properties under lease and has also given such properties on lease under similar terms under which the Company has taken it on lease.

8 SEGMENT INFORMATION

The Chief Operating Decision Maker reviews the operations of the Company as a real estate development activity and letting out of developed properties, which is considered to be the only reportable segment by the Management. The Company’s operations are in India only.

9 EMPLOYEE BENEFIT PLANS

(i) Defined Contribution Plans

The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.

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:

(ii) Defined Benefit Plan :

The Company provides gratuity for employees who are in continuous services for a period of 5 years. The amount of gratuity is payable on retirement / termination, computed based on employees last drawn basic salary per month. The Company makes contribution to Life Insurance Corporation (LIC) Gratuity trust to discharge the gratuity liability.

Risk exposure

The defined benefit plan typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

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 the discount rate, it will create a plan deficit.

The fund’s investments are managed by Life Insurance Corporation of India (LIC), the fund manager. The details of composition of plan assets managed by the fund manager is not available with the company.

Interest Risk A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s investments.

Life expectancy The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

The current service cost and the net interest expense for the year are included in the ‘Employee benefits expense’line item in the Statement of Profit and Loss. The remeasurement of the net defined benefit liability is included in other comprehensive income.

g. Sensitivity analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

h. Estimated amount of Gratuity contribution over the next one year is Rs.5 million, one to three years is Rs.20 million and greater than three years is Rs.78 million

(iii) Other Employee Benefits - Compensated absences

The leave obligations cover the Company’s liability for earned leave and is not funded.

Leave encashment benefit expensed in the Statement of Profit and Loss for the year is Rs.7 million (31 March, 2017: Rs.14 million) Leave encashment benefit outstanding is Rs.46 million (31 March 2017 : Rs.45 million).

10 There are no foreign currency exposures as at 31 March 2018 (31 March 2017 - Nil) that have not been hedged by a derivative instrument or otherwise.

11 Refer Annexure I for disclosures under Regulation 34 (3) and 53(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

12 Details of capital account contribution and profit sharing ratio in partnership firms and limited liability partnership firms:

13 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the acquisition and Company’s real estate operations. The Company’s principal financial assets include investments, trade and other receivables, cash and cash equivalents, land advances and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The senior management ensures 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. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

I 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 risk. The Company has no exposure to commodity prices as it does not deal in derivative instruments whose underlying is a commodity. Financial instruments affected by market risk include loans and borrowings and refundable deposits.

The sensitivity analysis in the following sections relate to the position as at 31 March 2018 and 31 March 2017. The sensitivity analysis 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 following assumptions have 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 2018 and 31 March 2017.

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 and short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. The Company does not have any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a possible change in interest rates on that portion of borrowings outstanding at the balance sheet date. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

II 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 from its operating activities (primarily trade receivables) and from its financing activities, including refundable joint development deposits, security deposits, loans to employees and other financial instruments.

Trade receivables

Trade receivables of the Company comprises of receivables towards sale of properties, rental receivables and other receivables.

Receivables towards sale of property - The Company is not substantially exposed to credit risk as property is delivered on payment of dues . However the Company make provision for expected credit loss where any property developed by the Company is delayed due to litigation as further collection from customers is expected to be realised only on final outcome of such litigation.

Receivables towards rental receivables - The Company is not substantially exposed to credit risk as Company collects security deposits from lessee.

Other Receivables - Credit risk is managed as per 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 customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Refundable joint development deposits

The Company is subject to credit risk in relation to refundable deposits given under joint development arrangements. The management considers that the risk is low as it is in the possession of the land and the property share that is to be delivered to the land owner under the JDA arrangements.

Financial Instrument 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 Balance Sheet at 31 March 2018 and 31 March 2017 is the carrying amounts.

III Liquidity risk

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 payments:

14 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 maintain strong credit rating and healthy capital ratios in order to support its business and maximise the shareholder value.

The Company, through its Board of Directors 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 debt equity ratio, which is net debt divided by total capital. The Company’s policy is to keep the debt equity ratio below 1.00. The Company includes within net debt, interest bearing loans and borrowings (excluding borrowings from group companies) less cash and cash equivalents, current investments, other bank balances and margin money held with banks. The disclosure below could be different from the debt and equity components which have been agreed with any of the lenders.

D. Other parties

(i) Companies in which the directors are interested

Dollar Constructions & Engineers Private Limited Prestige Fashions Private Limited Prestige Garden Estates Private Limited Prestige Golf Resorts Private Limited

Dashanya Tech Parkz Private Limited (Indirect subsidiary w.e.f. 28 March 2017)

Prestige Falcon Retail Ventures Private Limited (Indirect subsidiary w.e.f 28 March 2017)

(ii) Partnership firms and Trusts in which some of the directors and relatives are interested:

23 Carat

Brunton Developers Castlewood Investments Colonial Estates Educate India Foundation Educate India Trust Daffodil Investments INR Holdings INR Property Holdings INR Energy Ventures Morph

Morph Design Company Nebulla Investments Prestige Constructions Prestige Cuisine Prestige Foods

Prestige Property Management & Services (Chennai)

Prestige Foundation Spring Green Sublime

Razack Family Trust The Good Food Co. Window Care

(iii) Key management personnel:

Irfan Razack, Chairman & Managing Director Rezwan Razack, Joint Managing Director Noaman Razack, Director Uzma Irfan, Director

(iv) Relative of key management personnel:

Badrunissa Irfan Almas Rezwan Sameera Noaman Faiz Rezwan Alayna Zaid Mohammed Zaid Sadiq Rabia Razack Anjum Jung Omer Bin Jung Matheen Irfan Sana Rezwan Nihar. A. Sait Danya Noaman Zayd Noaman

E. Related party transactions with Chief Executive Officer, Chief Financial Officer and Company Secreatary have not been disclosed

Details of related party transactions during the year and balances outstanding at the year end are given in Annexure - II Note: The related party relationships are as identified by management which has been relied upon by the auditors.

15 AMALGAMATION

During the year, the Company has received approval from the National Company Law Tribunal (NCLT) for the Scheme of Amalgamation of Downhill Holiday Resorts Private Limited (DHRPL), Foothills Resorts Private Limited (FHRPL), Pennar Hotels and Resorts Private Limited (PHRPL) and Valdel Xtent Outsourcing Solutions Private Limited (VXOSPL), all wholly owned subsidiaries of the Company, with the Company. The appointed date of the Scheme is April 1, 2015. The Company had transitioned to Indian Accounting Standards (‘Ind AS’) prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder from April 1, 2015. The transition was carried out from previously applicable Generally Accepted Accounting Principles (IGAAP). As per the approved Scheme, the accounting for the scheme of amalgamation has been done under IGAAP, applying purchase method of accounting as prescribed in Accounting Standard 14 - “Accounting for Amalgamations” which is different from the requirements of Ind AS 103 on “Business Combinations”. Accordingly, all the assets and liabilities recorded in the books of above wholly owned subsidiaries as at March 31, 2015 have been recorded by the Company at their respective book values as follows and the previously audited financial statements for the year ended upto March 31, 2017 have been restated by the management to give effect of the above scheme:

Further, pursuant to the above scheme, the amount of investments in above wholly owned subsidiaries have been credited in full and Capital reserve of Rs.27 million and Goodwill of Rs.800 million as on April 1, 2015 has been accounted by the Company. The Goodwill arising on above merger is being amortised over the period of 5 years in accordance with the accounting treatment as specified in the scheme.

16 The Company had entered into a registered Joint Development Agreement (JDA) with a certain land owner (the “Land Owner Company”) to develop a residential project (“the Project”). Under the said JDA, the Company acquired development rights over a certain parcel of land of the Land Owner Company and in exchange was required to provide the Land Owner Company identified developed units with a certain specified built-up area (the “Land Owner Company’s share”). The Company had also incurred Transferrable Development Rights (TDR’s) of Rs.881 million (31 March 2017 - Rs.881 million) which are recoverable from the Land Owner Company along with an interest of 12% per annum, from the sale of units from the residential project belonging to the Land Owner Company. As at 31 March 2018, gross receivables due from the Land Owner Company towards TDR’s aggregate to Rs.923 million (31 March 2017 - Rs.888 million). The Land Owner Company has been ordered to be wound up by the Hon’ble High Court of Judicature during the year ended 31 March 2017. The land owner Company has challenged the court order, the legal proceedings of which is pending with the Judicature. Considering the rights of the Company under the JDA, the status of development achieved so far in the Project; the plans for completion of the Project; the Escrow arrangement with the Company, Land Owner Company and the Lender of the Land Owner Company (to whom the Land Owner Company’s share of developed units have been mortgaged), which provides for manner of recovery of TDR dues; the fact that the Company needs to be a confirming party for registering the sale deed for the underlying units of the Land Owner Company; and that the handing over formalities of the underlying units are yet to be completed, the Company expects to recover the above gross dues towards TDR’s and has accordingly classified them as good and recoverable in the financial statements.

17 During the year ended 31 March 2017, the Company, as part of the restructuring of its business into separate verticals, has transferred certain investments, assets and related liabilities held by the Company to Prestige Retail Ventures, Prestige Exora Business Parks Limited, Prestige Hospitality Ventures and Prestige Office Ventures. Consequent to transfer of investments, assets and liabilities to separate entities, the Company has recorded gain on transfer amounting to Rs.2,634 million which has been disclosed as exceptional item. The operations transferred pursuant to restructuring referred to above did not represent a separate major line of business for the Company.

18 During the year, the Company has entered into an Memorandum of understanding for sale/ transfer of certain properties/ entities to Prestige Exora Business Parks Limited (“Exora”), whereby the Company and Exora have mutually agreed to convert the amount payable to Exora towards ICD and partnership investments amounting to Rs.6,315 million as advance for purchase of land.

19 The Ind AS financial statements of the Company for the year ended 31 March 2017 were audited by a firm of chartered accountants other than S.R. Batliboi & Associates LLP. The figures for the year ended 31 March 2017 have been restated for the reasons more fully described in note 53 to the financial statements.


Mar 31, 2017

1. SEGMENT INFORMATION

The Chief Operating Decision Maker reviews the operations of the Company as a real estate development activity and letting out of developed properties, which is considered to be the only reportable segment by the Management. Further, the Company''s operations are in India only.

2. EMPLOYEE BENEFIT PLANS

(i) Defined Contribution Plans : The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.

During the year, 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:

Note: The Contributions payable to the above plan by the Company is at rates specified in the rules of the schemes.

(ii) Defined Benefit Plan : The Company provides gratuity for employees who are in continuous services for a period of 5 years. The amount of gratuity is payable on retirement / termination, computed based on employees last drawn basic salary per month. The Company makes contribution to Life Insurance Corporation (LIC) Gratuity trust to discharge the gratuity liability.

Risk exposure

The defined benefit plan typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

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 the discount rate, it will create a plan deficit.

The fund''s investments are managed by Life Insurance Corporation of India (LIC), the fund manager. The details of composition of plan assets managed by the fund manager is not available with the company.

Interest Risk A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s investments.

Life expectancy The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

The current service cost and the net interest expense for the year are included in the ''Employee benefits expense'' line item in the statement of profit and loss. The remeasurement of the net defined benefit liability is included in other comprehensive income.

g. Sensitivity analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

h. Estimated amount of Gratuity contribution over the next one year is Rs, 3 Million, one to three years is Rs, 12 Million and greater than three years is Rs, 51 Million

(iii) Other Employee Benefits - Compensated absences

The lease obligations cover the group''s liability for earned leave and is not funded.

Leave encashment benefit expensed in the Statement of Profit and Loss for the year is Rs, 14 Million (March 31, 2016: Rs, 13 Million)

Leave encashment benefit outstanding is Rs, 45 Million (March 31, 2016 : Rs, 38 Million) (April 1, 2015 : Rs, 29 Million).

3. There are no foreign currency exposures as at March 31, 2017 (March 31, 2016 - Nil, 1 April 2015 - Nil) that have not been hedged by a derivative instruments or otherwise.

4. Refer Annexure I for disclosures under Regulation 34 (3) and 53(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

5. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the acquisition and Company''s real estate operations. The Company''s principal financial assets include investments, inventory, trade and other receivables, cash and cash equivalents, land advances and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The senior management ensures 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. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

I 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 risk. The Company has no exposure to commodity prices as it does not deal in derivative instruments whose underlying is a commodity. Financial instruments affected by market risk include loans and borrowings and refundable deposits.

The sensitivity analysis in the following sections relate to the position as at March 31, 2017 and March 31, 2016. The sensitivity analysis 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 following assumptions have 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 March 31, 2017 and March 31, 2016.

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 and short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. The Company does not have any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a possible change in interest rates on that portion of borrowings outstanding at the balance sheet date. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

II 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 from its operating activities (primarily trade receivables) and from its financing activities, including refundable joint development deposits, security deposits, loans to employees and other financial instruments.

Trade receivables

Trade receivables of the Company comprises of receivables towards sale of properties, rental receivables and other receivables.

Receivables towards sale of property - The Company is not substantially exposed to credit risk as property is delivered on payment of dues . However the Company makes provision for expected credit loss where any property developed by the Company is delayed due to litigation as further collection from customers is expected to be realized only on final outcome of such litigation.

Receivables towards rental receivables - The Company is not substantially exposed to credit risk as Company collects security deposits from lessee.

Other Receivables - Credit risk is managed as per 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 customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Refundable joint development deposits

The Company is subject to credit risk in relation to refundable deposits given under joint development arrangements. The management considers that the risk is low as it is in the possession of the land and the property share that is to be delivered to the land owner under the JDA arrangements.

Financial Instrument 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 minimize 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 March 31, 2017 and 2016 is the carrying amounts.

III Liquidity risk

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 summarizes the maturity profile of the Company''s financial liabilities based on contractual payments:

6. 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 maintain strong credit rating and healthy capital ratios in order to support its business and maximize the shareholder value.

The Company, through its Board of Directors 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 debt equity ratio, which is net debt divided by total capital. The Company''s policy is to keep the debt equity ratio below 1.00. The Company includes within net debt, interest bearing loans and borrowings (excluding borrowings from group companies) less cash and cash equivalents, current investments, other bank balances and margin money held with banks. The disclosure below could be different from the debt and equity components which have been agreed with any of the lenders.

7. The Company enters into "domestic transactions" with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 (''regulations''). The pricing of such domestic transactions will need to comply with the Arm''s length principle under the regulations. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant which is to be filed with the Income tax authorities.

The Company has undertaken necessary steps to comply with the regulations. The Management is of the opinion that the domestic transactions are at arm''s length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

D. Other parties (i) Company in which the directors are interested

Dollar Constructions & Engineers Private Limited Prestige Fashions Private Limited Prestige Garden Estates Private Limited Prestige Golf Resorts Private Limited

Dashanya Tech Parkz Private Limited (Indirect subsidiary w.e.f. 28 March 2017)

Prestige Falcon Retail Ventures Private Limited (Indirect subsidiary w.e.f 28 March 2017)

(ii) Partnership firms and Trusts in which some of the directors and relatives are interested:

23 Carat

Brunton Developers Castlewood Investments Colonial Estates Educate India Foundation Educate India Trust Razack Family Trust Morph

Morph Design Company Nebulla Investments Prestige Constructions Prestige Cuisine Prestige Foundation Spring Green Sublime

The Good Food Co.

Window Care

(iii) Key management personnel:

Irfan Razack, Chairman & Managing Director Rezwan Razack, Joint Managing Director Noaman Razack, Director Uzma Irfan, Director

(iv) Relative of key management personnel:

Badrunissa Irfan Almas Rezwan Sameera Noaman Faiz Rezwan Mohammed Zaid Sadiq Rabia Razack Anjum Jung Omer Bin Jung Matheen Irfan Sana Rezwan Danya Noaman Zayd Noaman

Note: The related party relationships are as identified by management which has been relied upon by the auditors. Details of related party transactions during the year and balances outstanding at the yearend are given in Annexure - II

NOTES TO FIRST TIME IND AS ADOPTION RECONCILIATION :

Items relating to total equity and Other comprehensive income Impact of fair valuation/ amortized cost basis of recognition of financial assets (net)

Under Indian GAAP, current investments were measured at lower of cost or fair value. Under Ind AS, these financial assets have been classified as FVTPL on the date of transition. The fair value changes are recognized in the statement of profit and loss.

Under Indian GAAP, there are certain security deposits and refundable deposits which are carried at nominal value. Ind AS requires to measure these assets at fair value at inception and subsequently these assets are measured at amortized cost. At inception date, Company recognises difference between deposit fair value and nominal value as deferred lease expenses and same is being recognized as lease expenses on straight line basis over the lease period. Further, Company recognizes notional interest income on

NOTES

Forming part of Financial Statements

these deposit over the lease term. In case of refundable deposits for joint development arrangement, difference between nominal value and fair value of deposit is treated as land cost at inception. Subsequent to intial recognition ,interest income recognized over the period of deposit is reduced from land cost.

Financial liabilities at amortized cost

Under Indian GAAP, there are certain security deposits received from tenants which are carried at nominal value. Ind AS requires to measure these payables at fair value on inception. At inception date, Company recognizes difference between fair value and nominal value as deferred income (shown under advance rent) and same is being recognized as rental income on straight line basis over the period. Further, Company also recognizes notional interest expense on payables over the term.

Gross accounting for joint development arrangements

The Company has entered into certain joint development arrangements. Since the goods exchanged under joint development arrangement i.e. land with constructed area are dissimilar in nature, as per para 12 of Ind AS 18, the exchange is regarded as a transaction which generates revenue. The Company has measured revenue and cost on this exchange in accordance with accounting policy stated in Note 2.5 (a)

Share of profit from partnership firms/ LLP arising due to accounting for real estate’s projects income

Certain partnership firms/ LLP in which the Company has interest have entered into certain joint development arrangements. Such joint development arrangements have been accounted on gross basis accounted as stated above which has resulted in increase in share of profit from such partnership firms/ LLP.

Expected Credit loss allowances on receivables

Under Ind-AS, the Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in statement of profit and loss.

Deferred tax

Indian GAAP required deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences, which was not required under Indian GAAP. In addition, the various transitional adjustments lead to different temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

Items relating to total equity

Revaluation of land (done in earlier years in partnership firms)

Certain partnership firms in which the Company has investments, had revalued land relating to projects under development in earlier years. The Company had accounted this revaluation gain credited by the partnership firm to its current account as Capital reserve under Other Equity. Under Ind-AS this revaluation has been reversed.

Proposed dividend

Under Indian GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of financial statements were considered as adjusting events. Accordingly provision for proposed dividend was recognized as a liability. Under Ind AS such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend has been reversed with corresponding adjustment to retained earnings. Consequently the total equity increased by an equivalent amount.

Items relating to total comprehensive income Defined benefit liabilities

Both under Indian GAAP and Ind AS, the Company has recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

8. The Company had entered into a registered Joint Development Agreement (JDA) with a certain land owner (the "Land Owner Company") to develop a residential project ("the Project"). Under the said JDA, the Company acquired development rights over a certain parcel of land of the Land Owner Company and in exchange was required to provide the Land Owner Company identified developed units with a certain specified built-up area (the "Land Owner Company''s share"). The Company had also incurred Transferrable Development Rights (TDR''s) of Rs, 881 Million (March 31, 2016 - Rs, 881 Million) which are recoverable from the Land Owner Company along with an interest of 12% per annum, from the sale of units from the residential project belonging to the Land Owner Company.

As at March 31, 2017, gross receivables due from the Land Owner Company towards TDR''s aggregate to Rs, 888 Million (March 31, 2016 - Rs, 895 Million). During the year, the Land Owner Company has been ordered to be wound up by the Hon''ble High Court of Judicature. Considering the rights of the Company under the JDA, the status of development achieved so far in the Project; the plans for completion of the Project; the Escrow arrangement with the Company, Land Owner Company and the Lender of the Land Owner Company (to whom the Land Owner Company''s share of developed units have been mortgaged), which provides for manner of recovery of TDR dues; the fact that the Company needs to be a confirming party for registering the sale deed for the underlying units of the Land Owner Company; and that the handing over formalities of the underlying units are yet to be completed, the Company expects to recover the above gross dues towards TDR''s and has accordingly classified them as good and recoverable in the financial statements.

9. During the year ended March 31, 2017, the Company, as part of the restructuring of its business into separate verticals, has transferred certain investments, assets and related liabilities held by the Company to Prestige Retail Ventures, Prestige Exora Business Parks Limited, Prestige Hospitality Ventures and Prestige Office Ventures. Consequent to transfer of investments, assets and liabilities to separate entities, the Company has recorded gain on transfer amounting to '' 2,568 Million which has been disclosed as exceptional item. The operations transferred pursuant to restructuring referred to above did not represent a separate major line of business for the Company.

10. The Board of Directors of the Company at its meeting held on March 31, 2016 has inter alia considered and approved the Scheme of Amalgamation between Prestige Estates Projects Limited and its wholly owned subsidiaries, Downhills Holiday Resorts Private Limited, Foothills Resorts Private Limited, Pennar Hotels and Resorts Private Limited and Valdel Xtent Outsourcing Solutions Private Limited, under section 391 to 394 and other applicable provisions of the Companies Act, 1956 and the provisions of Companies Act, 2013, as may be applicable. The appointed date of the Scheme is April 1, 2015. The said scheme has been reviewed by Securities and Exchange Board of India. The effect of the aforesaid scheme will be given on obtaining requisite statutory approvals from National Company Law Tribunal.

(A) Related party relationships are as identified by the Company on the basis of information available with them and relied upon by the auditors. (B) The above amounts exclude reimbursement of expenses.

(C) No amount is / has been written off or written back during the year in respect of debts due from or to related parties.

(D) The closing balances given above under the head Guarantees and Collaterals represent the closing balances of the facilities availed by the recipient of the Guarantee at the year end. The undrawn amounts of the facilities in respect of which the Company or other entities as the case may be are contingently liable are as follows:

Undrawn amount in respect of facilities guaranteed by the Company mentioned above - Rs, 2,717 Million (March 31, 2016 - Rs, 6,233 Million, April 1, 2015 - Rs, 3,109 Million)

Undrawn amount in respect of facilities availed by the Company which are guaranteed by other entities mentioned above - Rs, 5,799 Million ( March 31, 2016 - Rs, 6,299 Million, April 1, 2015 - Rs, 4,621 Million)


Mar 31, 2016

b The Company has only one class of equity shares with voting rights having par value of '' 10 each. The rights, preferences and restrictions attached to such equity shares is in accordance with the terms of issue of equity shares under the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable, the Articles of Association of the Company and relevant provisions of the listing agreement.

c During the year ended 31st March 2015, the Company successfully completed Qualified Institutional Placement under Chapter VIII of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, which opened on 4th August 2014 and closed on the 8th August 2014. Pursuant to this 2,50,00,000 equity shares of '' 10 each at a premium of '' 235 per share were allotted on 12th August 2014.

4b Security Details :

Mortgage of certain immovable properties of the Company.

Charge over the book debts, operating cash flows, revenues and receivables of the projects.

Hypothecation of equipment & vehicles.

Pledge of certain Mutual Funds held by the Company.

Assignment of rent receivables from various properties.

4c Repayment and other terms :

Repayable within 32 - 120 installments commencing from January 2008.

Personal guarantee of certain Directors of the Company and their relatives.

These loans are subject to interest rates ranging from 10.40% to 12.80% per annum.

4d Refer Note No. 10 for current maturities of long-term debt.

4e During the year, the Company issued 500 secured redeemable non-convertible debentures (A Rating) of Rs, 1,00,00,000 each in three tranches, having tenor upto five years, aggregating Rs, 50,000 Lakhs on a private placement basis. These debentures are secured by exclusive charge by way of mortgage over certain projects of the Company (herinafter referred to as “mortgaged property"), exclusive charge over receivables from sale of mortgaged property and exclusive charge over debt service reserve account and escrow accounts of mortgaged property. The debentures are repayable in three tranches, Tranche 1 - Rs, 15,000 Lakhs on 24th July 2018, Tranche 2 - Rs, 30,000 Lakhs on 24th July 2020 and Tranche 3 - Rs, 5,000 Lakhs on 23rd April 2018 and carry a coupon rate of 11.35%, 11.40% and 11.35% respectively. The Company has a call option to redeem Tranche 2 debentures at the end of 3rd year from the date of allotment i.e. 24th July 2018. The Company has created debenture redemption reserve as per Section 71 of the Companies Act, 2013, on a pro rata basis amounting to Rs, 2,209 Lakhs.

8b Security Details

Mortgage of certain immovable properties of the Company including inventories and undivided share of land belonging to the Company. Charge over receivables of various projects.

Pledge of Mutual Funds held by the Company and certain Directors of the Company.

Lien against fixed deposits.

8c Repayment and other terms

Repayable within 1 - 54 installments commencing from May 2013.

Mortgage of certain immovable properties belonging to and Corporate Guarantee from two subsidiary companies, two wholly owned subsidiary companies and three firms in which the Company is a partner.

Personal guarantee of certain Directors of the Company.

These secured loans are subject to interest rates ranging from 9.2 % to 13.50 % per annum.

Note : The information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 and that given in Trade Payables - Note No. 9a regarding Micro and Small enterprises is determined to the extent such parties have been identified on the basis of the information available with the Company. This has been relied upon by the Auditors.

* In earlier years, land in these partnership firms has been revalued and the Company''s share of such revaluation reserve was credited to Capital reserve in the respective years. Share of profits in the case of these firms includes an aggregate amount of Rs, 4 Lakhs (PY Rs, 150 Lakhs) which has been transferred from the Capital reserve to the Statement of Profit and Loss and represents realised profits arising out of sale / development of the underlying land parcels.

* In earlier years, land in these partnership firms has been revalued and the Company''s share of such revaluation reserve was credited to Capital reserve in the respective years. Share of profits in the case of these firms includes an aggregate amount of '' 648 Lakhs (PY Rs, 1,604 Lakhs) which has been transferred from the Capital reserve to the Statement of Profit and Loss and represents realised profits arising out of sale / development of the underlying land parcels.

26a The details of employee benefits as required under Accounting Standard 15 ''Employee Benefits'' is given below:

(a) Defined Contribution Plan : During the year, 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:

Note: The contributions payable to the above plan by the Company is at rates specified in the rules of the schemes.

(b) Defined Benefit Plan : In accordance with Accounting Standard 15 actuarial valuation based on projected unit credit method as on 31st March 2016 has been carried out in respect of the aforesaid defined benefit plan of Gratuity, the details thereon is given below:

Note:

(i) Composition of plan assets - The fund is managed by LIC, the fund manager. The details of Composition of plan assets managed by the fund manager is not available with the Company.

(ii) The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

(iii) The estimates of future salary increases considered in actuarial valuation take account of inflation, Seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

(iv) Estimated amount of Gratuity contribution over the next one year is Rs, 45 Lakhs.

(c) Other Employee Benefits - Compensated Absences (Leave Salary)

Leave salary benefit expensed in the statement of profit & loss for the year is Rs, 133 Lakhs (PY Rs, 109 Lakhs) and outstanding towards leave

salary is Rs, 377 Lakhs (PY Rs, 291 Lakhs). Leave salary liability is not funded.

(i) The Company avails input credit for service tax and hence no service tax expense is accrued.

(ii) The above fees does not include Nil (PY Rs, 40 Lakhs) towards services rendered for the Qualified Institutional Placement (QIP) which has been considered as share issue expense and set off against the balance available in Securities Premium account.

3. The Company enters into construction contracts with its vendors. The final amounts payable under such contracts will be based on actual measurements and negotiated rates, which are determinable as and when the work under the said contracts are complete

4. The Company has entered into agreements with land owners under which the Company is required to make payments based on the terms/ milestones stipulated under the respective agreements

5. The Company has entered into joint development agreements with owners of land for its construction and development. Under the agreements the Company is required to pay certain payments/ deposits to the owners of the land and share in built up area/ revenue from such developments in exchange of undivided share in land as stipulated under the agreements

6. The Company has provided support letters to several of its investee companies wherein it has accepted to provide the necessary level of financial support to enable the investee companies to operate as a going concern and meet its obligations as and when they fall due

1 OPERATING LEASES

The Company has taken and given commercial spaces under operating lease basis which include (a) leases that are renewable on a yearly basis, (b) cancellable at the Company''s option and (c) other long term leases.

The rental and hire charges income from operating leases included in the Statement of Profit and Loss for the year is Rs, 37,381 Lakhs [PY Rs, 29,352 Lakhs].

Rental expense for operating leases included in the Statement of Profit and Loss for the year is Rs, 21,833 Lakhs [PY Rs, 15,811 Lakhs].

As at 31st March 2016 the future minimum lease rentals payable and receivable towards non-cancellable operating leases are:

2 Refer Annexure I for disclosures under Clause 32 of the Listing Agreement.

3 LIST OF RELATED PARTIES

A. Subsidiary companies

Prestige Leisure Resorts Private Limited ICBI (India) Private Limited

Prestige Valley View Estates Private Limited (converted into LLP w.e.f 31st March 2016)

Prestige Bidadi Holdings Private Limited Village-De-Nandi Private Limited Pennar Hotels & Resorts Private Limited Down Hills Holiday Resorts Private Limited Foothills Resorts Private Limited Prestige Construction Ventures Private Limited Prestige Mangalore Retail Ventures Private Limited Prestige Mysore Retail Ventures Private Limited

Prestige Whitefield Investment & Developers Private Limited (converted into LLP w.e.f 31st March 2016)

Valdel Xtent Outsourcing Solutions Private Limited K2K Infrastructure (India) Private Limited Prestige Shantiniketan Leisures Private Limited Northland Holding Company Private Limited

West Palm Developments Private Limited (converted into LLP w.e.f 31st March 2016)

Cessna Garden Developers Private Limited

Villaland Developers Private Limited (converted into LLP w.e.f 23rd January 2015)

Prestige Amusements Private Limited Prestige Garden Resorts Private Limited

Avyakth Cold Storages Private Limited (Indirect subsidiary w.e.f 1st April 2013)

Dollars Hotel & Resorts Private Limited (Indirect subsidiary w.e.f 14th November 2014)

Exora Business Parks Limited (Indirect subsidiary w.e.f 21st December 2015) (formerly known as Exora business Parks Private Limited)

B. Other parties

(i) Associate companies where there is significant influence

Prestige Garden Constructions Private Limited (upto 19th January 2015)

Babji Realtors Private Limited

City Properties Maintenance Company Bangalore Limited Prestige Projects Private Limited

Exora Business Parks Limited (Indirect subsidiary w.e.f 21st December 2015)

(ii) Joint ventures of the Company

CapitaLand Retail Prestige Mall Management Private Limited Vijaya Productions Private Limited Sai Chakra Hotels Private Limited

Prestige Garden Constructions Private Limited (w.e.f 20th January 2015)

(iii) Company in which the directors are interested

Thomsun Realtors Private Limited Prestige Fashions Private Limited Dollar Constructions & Engineers Private Limited Prestige Garden Estates Private Limited Prestige Golf Resorts Private Limited Dashanya Tech Parkz Private Limited Prestige Falcon Retail Ventures Private Limited

Dollars Hotel & Resorts Private Limited (Indirect subsidiary w.e.f 14th November 2014)

(iv) Partnership firms in which Company is a partner

Prestige Hi-Tech Projects

Prestige Property Management & Services

Eden Investments & Estates

Prestige Ozone Properties

Prestige KRPL Techpark

Prestige Realty Ventures

Silver Oak Projects

Silverline Estates

Prestige Southcity Holdings

PSN Property Management & Services

Prestige Nottinghill Investments

Albert Properties

Prestige Interiors

Prestige Habitat Ventures

Prestige Kammanahalli Investments

Prestige Rattha Holdings

Prestige Sunrise Investments

The QS Company

Villaland Developers LLP (converted into LLP on 23rd January 2015)

Prestige AAA Investments (incorporated on 18th July 2014)

Prestige Alta Vista Holdings (incorporated on 20th November 2014)

Prestige City Properties (incorporated on 21st May 2014)

Prestige Valley View Estates LLP (converted into LLP on 31st March 2016)

West Palm Developments LLP (converted into LLP on 31st March 2016)

Prestige Whitefield Investment & Developers LLP (converted into LLP on 31st March 2016)

(iv) Associates, Partnership firms and Trusts in which some of the directors and relatives are interested 23 Carat

Brunton Developers

Castlewood Investments

Colonial Estates

Educate India Foundation

Educate India Trust

Prestige Constructions

Prestige Whitefield Developers

Morph

Sublime

Window Care

Morph Design Company

Nebulla Investments

Spring Green

Prestige Cuisine

The Good Food Co.

Prestige Foundation C (i) Key management personnel

Irfan Razack, Chairman & Managing Director Rezwan Razack, Joint Managing Director Noaman Razack, Director Uzma Irfan, Director

(ii) Relative of key management personnel:

Badrunissa Irfan Almas Rezwan Sameera Noaman Faiz Rezwan Mohammed Zaid Sadiq Rabia Razack Anjum Jung Omer Bin Jung Matheen Irfan Sana Rezwan Danya Noaman Zayd Noaman

Note: The related party relationships are as identified by management which has been relied upon by the auditors.

Details of related party transactions during the year and balances outstanding at the yearend are given in Annexure - II

4 The Company enters into "domestic transactions” with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 (’regulations''). The pricing of such domestic transactions will need to comply with the Arm''s length principle under the regulations. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant which is to be filed with the Income tax authorities.

The Company has undertaken necessary steps to comply with the regulations. The Management is of the opinion that the domestic transactions are at arm''s length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

5 The Company had entered into a registered Joint Development Agreement (JDA) with a certain land owner (the "Land Owner Company”) to develop a residential project under which the Company had incurred Transferrable Development Rights (TDR) of ''8,806 Lakhs which are recoverable from the Land Owner Company along with an interest of 12% per annum, from the sale of units from the residential project belonging to the Land Owner Company. The Land Owner Company has been served winding up petitions by other parties on account of certain other matters.

As at 31st March 2016, trade receivables include dues from the Land Owner Company towards the TDRs, aggregating to Rs, 8,950 Lakhs (including interest dues outstanding of Rs,154 Lakhs). Considering the status of development achieved so far in the Project; the plans for completion of the Project; the Escrow arrangement with the Company, Land Owner Company and the Lender of the Land Owner Company to whom they said units have been mortgaged, which provides for manner of recovery of TDR dues; the fact that the Company needs to be a confirming party for registering the sale deed for the underlying units of the Land Owner Company; and that the handing over formalities of the underlying units are yet to be completed, the Company expects to recover the above dues in the normal course of business and has accordingly classified them as good and recoverable in the financial statements. The Company has been regularly receiving interest on the dues since the inception of the above arrangements and as at 31st March 2016, interest for only two months is outstanding.

6 Some of the real estate developments and allied activities are carried out through partnership firms, where such operations are directly controlled by the Company and are considered as an extension of the operations of the Company. Accordingly, the Company has classified the share of profits from such partnership firms as part of "Other Operating Income” and consequently, the corresponding figures for the previous years have been reclassified from "Other Income” to correspond to current year’s presentation.

7 The Board of Directors of the Company at its meeting held on 31st March 2016 has inter alia considered and approved the Scheme of Amalgamation between Prestige Estates Projects Limited and its wholly owned subsidiaries, Downhills Holiday Resorts Private Limited, Foothills Resorts Private Limited, Pennar Hotels and Resorts Private Limited and Valdel Xtent Outsourcing Solutions Private Limited, under Section 391 to 394 and other applicable provisions of the Companies Act, 1956 and the provisions of Companies Act, 2013, as may be applicable. The appointed date of the Scheme is 1st April 2015. The said scheme has been filed with the Securities and Exchange Board of India. The effect of the aforesaid scheme will be given on obtaining requisite statutory approvals (including approval of High Court).

8 Previous year’s figures have been regrouped/reclassified wherever necessary to correspond to the current years classification/disclosure.

Guidance vs. achievement: In line with the Company''s ever enduring efforts to ensure highest levels of transparency and investor confidence, the Company sets out guidance values at the beginning of the fiscal. The Company carries out an evaluation of the actual performance against the guidance set at the beginning of the fiscal on a quarterly basis.

An induction pack is handed over to the new inductee, which includes the Company''s Corporate Profile, its Mission, Vision and Values Statement


Mar 31, 2015

Corporate Information

M/s. Prestige Estates Projects Limited ("the Company") was incorporated on 4th June 1997 as a company under the Companies Act, 1956 (the "Act''). The registered office of the Company is in The Falcon House, No.1, Main Guard Cross Road, Bangalore - 560 001, India. The Company is engaged in the business of real estate development.

1. Share issue expenses

Share issue expenses are adjusted against the Securities Premium Account as permissible under Section 52 of the Companies Act, 2013, to the extent any balance is available for utilisation in the Securities Premium Account. Share issue expenses in excess of the balance in the Securities Premium Account is expensed in the Statement of Profit and Loss.

2. SHARE CAPITAL

b The Company has only one class of equity shares with voting rights having par value of Rs. 10 each. The rights, preferences and restrictions attached to such equity shares is in accordance with the terms of issue of equity shares under the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable, the Articles of Association of the Company and relevant provisions of the listing agreement.

c On 23rd September 2009 the company issued 20 bonus shares for every share outstanding then. Accordingly, 2,500 Lakhs equity shares of Rs. 10 each fully paid for each share held by the shareholders were issued by capitalisation of balance in General Reserve and Surplus in statement of profit & loss during the year ended 31st March 2010.

d During the year ended 31st March 2015, the Company successfully completed Qualified Institutional Placement under Chapter VIII of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, which opened on 4th August 2014 and closed on the 8th August 2014. Pursuant to this 2,50,00,000 equity shares of Rs. 10 each at a premium of Rs. 235 per share were allotted on 12th August 2014.

3. Security Details :

Mortgage of certain immovable properties of the company.

Charge over the book debts, operating cash flows, revenues and receivables of the projects. Hypothecation of equipment & vehicles. Pledge of certain Mutual Funds held by the Company Assignment of rent receivables from various properties.

4. Repayment and other terms :

Repayable within 32 - 120 instalments commencing from January 2008. Personal guarantee of certain directors of the company and their relatives.

These loans are subject to interest rates ranging from 11.00% to 13.25% per annum.

5. Refer Note No. 10 for current maturities of long-term debt.

6. Security Details :

Mortgage of certain immovable properties of the company including inventories and undivided share of land belonging to the Company.

Charge over receivables of various projects.

Pledge of Mutual Funds held by the Company and certain Directors of the Company.

Lien against fixed deposits.

7. Repayment and other terms :

Repayable within 1 - 36 instalments commencing from May 2013.

Mortgage of certain immovable properties belonging to and Corporate Guarantee from two subsidiary companies ,a Company under the same management, 3 wholly owned subsidiary companies and a firm in which the Company is a partner.

Personal guarantee of certain directors of the Company.

These secured loans are subject to interest rates ranging from 9.75 % to 15.10 % per annum.

8. Unsecured loans are subject to interest rates ranging from 10% to 15% per annum.

(ii) The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

(iii) The estimates of future salary increases considered in actuarial valuation take account of inflation, Seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

(iv) Estimated amount of Gratuity contribution over the next one year is Rs. 45 Lakhs.

(c) Other Employee Benefits - Compensated Absences (Leave Salary)

Leave salary benefit expensed in the statement of profit & loss for the year is Rs. 109 Lakhs (PY Rs. 74 Lakhs) and outstanding towards leave salary is Rs. 291 Lakhs (PY Rs. 228 Lakhs). Leave Salary liability is not funded.

9. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

Rs. In Lakhs

As at As at Particulars 31st March 2015 31st March 2014

A) Contingent liabilities

1. Claims against Company not acknowledged as debts

a. Disputed Value Added Tax 2,144 2,222

b. Disputed Service Tax 2,231 75

c. Disputed Income Tax 145 125

d. Others 1,241 190

The above amounts does not include penalties, if any, that may be l evied by the authorities when the disputes are settled.

2. Corporate guarantees given on 1,95,563 1,80,958 behalf of companies under the same management *

* (The amount outstanding against such facilities at the balance sheet was Rs. 164,472 Lakhs (PY 177,602 Lakhs) )

B) Commitment

1. Capital commitments (Net of advances) 29,429 31,524

2. Bank guarantees

a. Performance Guarantee (Includes 14,379 14,193 guarantees of Rs. 456 Lakhs (PY Rs. 235 Lakhs) towards obligation for earnings in foreign currency of Rs. 3,647 Lakhs (PY Rs. 1,882 Lakhs), outstanding obligation to be met by 2022-23)

10. The Company enters into construction contracts with its vendors. The final amounts payable under such contracts will be based on actual measurements and negotiated rates, which are determinable as and when the work under the said contracts are completed.

11. The Company has entered into agreements with land owners under which the Company is required to make payments based on the terms/ milestones stipulated under the respective agreements

12. The Company has entered into joint development agreements with owners of land for its construction and development. Under the agreements the Company is required to pay certain payments/ deposits to the owners of the land and share in built up area/ revenue from such developments in exchange of undivided share in land as stipulated under the agreements

13. The Company has provided support letters to several of its investee companies wherein it has accepted to provide the necessary level of financial support to enable the investee companies to operate as a going concern and meet its obligations as and when they fall due.

14. OPERATING LEASE

The Company has taken and given commercial spaces under operating lease basis which include (a) leases that are renewable on a yearly basis, (b) cancellable at the Company's option and (c) other long term leases.

The rental and hire charges income from operating leases included in the Statement of Profit and Loss for the year is Rs. 29,352 Lakhs [PY Rs. 23,171 Lakhs].

Rental expense for operating leases included in the Statement of Profit and Loss for the year is Rs. 15,811 Lakhs [PY Rs. 11,671 Lakhs].

15. SEGMENTAL INFORMATION

The company operates within a single business segment which constitutes real estate development and letting out of developed properties. The Company operates only in India and hence there is no other geographical segment. Hence the disclosure of segment information as per Accounting Standard-17 is not applicable.

16. There are no foreign currency exposures as at 31st March 2015 that have not been hedged by a derivative instruments or otherwise.

36 Refer Annexure I for disclosures under Clause 32 of the Listing Agreement

17. The Company has 50% interest in CapitaLand Retail Prestige Mall Management Private Limited (CRPM), Vijaya Productions Private Limited (VPPL), PSN Property Management Services (PSNPMS), Sai Chakra Hotels Private Limited (SCHPL) and Prestige Garden Constructions Private Limited (PGCPL) (w.e.f 20th January 2015) in India, which has been considered as Joint Ventures. The Company's share of the assets, liabilities, income and expenses is as below :

18. LIST OF RELATED PARTIES

A. Subsidiary companies

Prestige Leisure Resorts Private Limited

ICBI (India) Private Limited

Prestige Valley View Estates Private Limited

Prestige Bidadi Holdings Private Limited

Village-De-Nandi Private Limited

Pennar Hotels & Resorts Private Limited

Down Hills Holiday Resorts Private Limited

Foothills Resorts Private Limited

Prestige Construction Ventures Private Limited

Prestige Mangalore Retail Ventures Private Limited

Prestige Mysore Retail Ventures Private Limited

Prestige Whitefield Investment & Developers Private Limited

Valdel Xtent Outsourcing Solutions Private Limited

K2K Infrastructure (India) Private Limited

Prestige Shantiniketan Leisures Private Limited

Northland Holding Company Private Limited

West Palm Developments Private Limited

Cessna Garden Developers Private Limited

Villaland Developers Private Limited (converted into LLP w.e.f 23th January 2015)

Prestige Amusements Private Limited

Prestige Garden Resorts Private Limited (w.e.f. 28th January 2013)

Avyakth Cold Storages Private Limited (Indirect subsidiary w.e.f 1st April 2013)

Dollars Hotel & Resorts Private Limited (Indirect subsidiary w.e.f 14th November 2014)

B. OTHER PARTIES

(i) Associate companies where there is significant influence:

Prestige Garden Constructions Private Limited (upto 19th January 2015)

Babji Realtors Private Limited

City Properties Maintenance Company Bangalore Limited

Prestige Projects Private Limited

Exora Business Parks Private Limited

(ii) Joint ventures of the Company

Capita Land Retail Prestige Mall Management Private Limited

Vijaya Productions Private Limited

Prestige Garden Resorts Private Limited (upto 27th January 2013)

Sai Chakra Hotels Private Limited

Prestige Garden Constructions Private Limited (w.e.f 20th January 2015)

(iii) Company in which the directors are interested

Thomsun Realtors Private Limited

Prestige Fashions Private Limited

Dollar Constructions & Engineers Private Limited

Prestige Garden Estates Private Limited

Prestige Golf Resorts Private Limited

Dashanya Tech Parkz Private Limited

Prestige Falcon Retail Ventures Private Limited

Dollars Hotel & Resorts Private Limited (Indirect subsidiary w.e.f 14th November 2014)

(iv) Partnership firms in which Company is a partner

Prestige Hi-Tech Projects

Prestige Property Management and Services

Eden Investments & Estates

Prestige Ozone Properties

Prestige KRPL Techpark

Prestige Realty Ventures

Silveroak Projects

Silverline Estates

Prestige Southcity Holdings

PSN Property Management & Services

Prestige Notting Hill Investments

Albert Properties

Prestige Interiors

Prestige Habitat Ventures

Prestige Kammanahalli Investments

Prestige Rattha Holdings

Prestige Sunrise Investments

The QS Company

Villaland Developers LLP (converted into LLP on 23th January 2015)

Prestige AAA Investments (incorporated on 18th July 2014)

Prestige Alta Vista Holdings (incorporated on 20th November 2014)

Prestige City Properties (incorporated on 21st May 2014)

(iv) Associates, Partnership firms and Trusts in which some of the directors and relatives are interested:

23 Carat

Brunton Developers Castlewood Investments Colonial Estates Educate India Foundation Educate India Trust Prestige Constructions Prestige Whitefield Developers Morph RRR Investments Sublime Window Care Morph Design Company Nebulla Investments Spring Green Prestige Cuisine The Good Food Co. Prestige Foundation Geotrix Building Envelope Private Limited

C (i) Key management personnel:

Irfan Razack, Managing Director Rezwan Razack, Joint Managing Director Noam an Razack, Director Venkata Narayana. K, Chief Financial Officer Medha Gokhale, Company Secretary

(ii) Relative of key management personnel:

Badrunissa Irfan Almas Rezwan Sameera Noaman Faiz Rezwan Uzma Irfan

Mohammed Zaid Sadiq Rabia Razack Anjum Jung Omer Bin Jung Matheen Irfan Sana Rezwan Danya Noaman Zayd Noaman

Note: The related party relationships are as identified by management which has been relied upon by the auditors.

Details of related party transactions during the year and balances outstanding at the year end are given in Annexure - II

19. The Company enters into "domestic transactions" with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 ('regulations'). The pricing of such domestic transactions will need to comply with the Arm's length principle under the regulations. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant which is to be filed with the Income tax authorities.

The Company has undertaken necessary steps to comply with the regulations. The Management is of the opinion that the domestic transactions are at arm's length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

20. Previous years figures have been regrouped/reclassified wherever necessary to correspond to the current years classification/ disclosure.


Mar 31, 2014

1 contingent liabilities and commitments (to the extent not provided for)

Rs. in lakhs

Particulars As at As at 31 March 2014 31 March 2013

Contingent Liabilities

1. Claims against Company not acknowledged as debts

a. Disputed Value Added Tax 2,222 124

b. Disputed Service Tax 75 75

c. Disputed Income Tax 125

d. Others 190

2. Corporate guarantees given on behalf of companies under the same management* 1,80,958 1,95,841 *(The amount outstanding against such facilities at the balance sheet was Rs. 177,602 Lakhs (Previous year Rs. 151,554 Lakhs))

Commitment

1. Capital commitments (Net of advances) 31,524 3,518

2. Bank guarantees 14,193 8,759

a. Performance Guarantee (Includes guarantees of Rs. 235 Lakhs (Previous Year Rs. 235 Lakhs) towards obligation for earnings in foreign currency of Rs. 1882 Lakhs (Previous Year Rs. 1,882 Lakhs), outstanding obligation to be met by 2021-22)

3. The Company enters into construction contracts with its vendors. The final amounts payable under such contracts will be based on actual measurements and negotiated rates, which are determinable as and when the work under the said contracts are completed.

4 operating leases

The Company has taken and given commercial spaces under operating lease basis which include (a) leases that are renewable on a yearly basis, (b) cancellable at the Company''s option and (c) other long term leases.

The rental and hire charges income from operating leases included in the Statement of Profit and Loss for the year is Rs 23,171 Lakhs [Previous Year Rs. 20,305 Lakhs].

Rental expense for operating leases included in the Statement of Profit and Loss for the year is Rs. 11,671 Lakhs [Previous Year Rs. 8,935 Lakhs].

5 segmental information

The company operates within a single business segment which constitutes real estate development and letting out of developed properties. The Company operates only in India and hence there is no other geographical segment. Hence the disclosure of segment information as per Accounting Standard-17 is not applicable.

6 Refer Annexure I for disclosures under Clause 32 of the Listing Agreement

7 list of related parties

a. subsidiary companies

Prestige Leisure Resorts Private Limited

ICBI (India) Private Limited

Prestige Valley View Estates Private Limited

Prestige Bidadi Holdings Private Limited

Village-De-Nandi Private Limited

Pennar Hotels & Resorts Private Limited

Down Hills Holiday Resorts Private Limited

Foothills Resorts Private Limited

Prestige Construction Ventures Private Limited

Prestige Mangalore Retail Ventures Private Limited

Prestige Mysore Retail Ventures Private Limited

Prestige Whitefield Investment & Developers Private Limited

Valdel xtent Outsourcing Solutions Private Limited

K2K Infrastructure (India) Private Limited

Prestige Shantiniketan Leisures Private Limited

Northland Holding Company Private Limited

West Palm Developments Private Limited

Cessna Garden Developers Private Limited

Villaland Developers Private Limited

Prestige Amusements Private Limited

Prestige Garden Resorts Private Limited (w.e.f. 28 January 2013)

Avyakth Cold Storage Private Limited (Indirect subsidiary - w.e.f. 01 April 2013)

B. other parties

(i) associate companies where there is significant influence:

Prestige Garden Constructions Private Limited

Babji Realtors Private Limited

City Properties Maintenance Company Bangalore Limited

Prestige Projects Private Limited

Exora Business Parks Private Limited

(ii) joint ventures of the company

CapitaLand Retail Prestige Mall Management Private Limited Vijaya Productions Private Limited

Prestige Garden Resorts Private Limited (upto 27 January, 2013) Sai chakra Hotels Private Limited (w.e.f 3 September, 2012)

(iii) company in which the directors are interested

Thomsun Realtors Private Limited

Prestige Fashions Private Limited

Dollar Constructions & Engineers Private Limited

Prestige Garden Estates Private Limited

Prestige Golf Resorts Private Limited

Dashanya Tech Parkz Private Limited

Dollar Hotels & Resorts Private Limited

(iv) Partnership firms in which company is a partner

Prestige Hi-Tech Projects

Prestige Property Management and Services

Eden Investments & Estates

Prestige Ozone Properties

Prestige KRPL Techpark

Prestige Realty Ventures

Silveroak Projects

Silverline Estates

Prestige Southcity Holdings

PSN Property Management & Services (Joint Venture w.e.f 1 July, 2012)

Prestige Notting Hill Investments

Albert Properties

Prestige Interiors

Prestige Habitat Ventures

Prestige Kammanahalli Investments

Prestige Rattha Holdings

Prestige Sunrise Investments

The QS Company

(v) associates, Partnership firms and trusts in which some of the directors and relatives are interested:

23 Carat

Brunton Developers

Castlewood Investments

Colonial Estates

Educate India Foundation

Educate India Trust

Prestige Constructions

Prestige Whitefield Developers

Morph

RRR Investments

Sublime

Window Care

Morph Design Company

Nebulla Investments

Spring Green

Prestige Cuisine

The Good Food Co.

Prestige Foundation

Geotrix Building Envelope Private Limited

c (i) key management personnel:

Irfan Razack, Managing Director Rezwan Razack, Joint Managing Director Noaman Razack, Director

(ii) relative of key management personnel:

Badrunissa Irfan Almas Rezwan Sameera Noaman Faiz Rezwan uzma Irfan

Mohammed Zaid Sadiq Rabia Razack Anjum Jung Omer Bin Jung Matheen Irfan Sana Rezwan Danya Noaman Zayd Noaman

Note: The related party relationships are as identified by management which has been relied upon by the auditors.

Details of related party transactions during the year and balances outstanding at the year end are given in Annexure - II

8 During the quarter ended 31 December, 2013, the Company was subject to search under Section 132 of the Income Tax Act, 1961. The Company believes that there was no inconsistent information that was noted by the Income Tax authorities during the search and thereafter. As on date the Company has not received communication from the Income Tax authorities regarding the outcome of the search.

9 Trade receivables outstanding as at the balance sheet date include amounts of Rs. 11,073 lakhs relating to dues from certain parties that are outstanding for more than 6 months from the date they became due. The Company is confident of recovering these dues in the normal course of business as the Company continues to have business relationships and arrangements with these parties and the handing over formalities of the underlying properties are yet to be completed.

10 The Company enters into "domestic transactions" with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 (''regulations''). The pricing of such domestic transactions will need to comply with the Arm''s length principle under the regulations. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant which is to be filed with the Income tax authorities.

The Company has undertaken necessary steps to comply with the regulations. The Management is of the opinion that the domestic transactions are at arm''s length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

11 Previous years figures have been regrouped/reclassified wherever necessary to correspond to the current years classification/disclosure.


Mar 31, 2013

1 Corporate Information, Basis of preparation of Financial Statements and significant accounting policies

(i). Corporate Information

M/s. Prestige Estates Projects Limited ( the Company ) was incorporated on June 4, 1997 as a company under the Companies Act, 1956 (the Act ). The registered office of the Company is in The Falcon House, No.1, Main Guard Cross Road, Bangalore - 560 001, India. The Company is engaged in the business of real estate development.

(ii). Basis for preparation of financial statements and significant accouting policies

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The significant accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year and are as follows :

2a Aggregate amount of quoted investments Rs 4 Lakhs (Previous Year Rs. 4 Lakhs) and market value there of is Rs. 23 Lakhs (Previous Year Rs. 17 Lakhs).

2b Aggregate amount of unquoted Investments Rs 8,536 Lakhs (Previous Year Rs. 8,700 Lakhs).

2c Mutual Funds includes unutilised monies from IPO proceeds invested amounting to Rs. Nil (Previous Year Rs.5,000 Lakhs).

3a The donation for the year in Note 28 includes donation made to Bharatiya Janata Party Rs. 1.50 Lakhs (Previous Year Rs. Nil) Communist Party of India (M) Rs.Nil (Previous Year Rs. 0.50/- Lakhs) and Congress Party Rs. Nil (Previous Year Rs. 2/- Lakhs).

4 Contingent Liabilities and commitments (to the extent not provided for)

Rs. In Lakhs Particulars As at As at 31 March 2013 31 March 2012

1. Claims against Company not acknowledged as debts

a. Disputed Value Added Tax 124 124

b. Disputed Service Tax 75 75

2. Corporate guarantees given on behalf of companies under the same management 1,95,841 1,14,475

(The amount outstanding against such facilities at the balance sheet was Rs. 1,51,554 Lakhs (P.Y Rs. 1,14,475 Lakhs))

3. Capital commitments (Net of advances) 3,518 4,168

4. Bank guarantees

Performance Guarantee (Includes guarantees of Rs. 235 Lakhs

P.Y Rs. 230 Lakhs) towards obligation for earnings in foreign currency of Rs. 1,882 Lakhs (P.Y Rs. 1,839 Lakhs), outstanding obligation to be met by 2021-22) 8,759 6,927

5. The company enters into construction contrats with its vendors. The final amounts payable under such contracts will be based on actual measurements and negotiated rates, which are determinable as and when the work under the said contracts are completed.

6. The company has issued a letter of support to one of its subsidiaries under which it has undertaken to support the subsidiary to meet its financial obligations over the next one year.

5 Operating Leases

The Company has taken and given commercial spaces under operating lease basis which include (a) leases that are renewable on a yearly basis, (b) cancellable at the Company s option and (c) other long term leases.

The rental and hire charges income from operating leases included in the Statement of Profit and Loss for the year is Rs 18,205/- Lakhs [Previous Year - Rs. 15,986/- Lakhs].

Rental expense for operating leases included in the Statement of Profit and Loss for the year is Rs. 8,799/- Lakhs [Previous Year- Rs. 6,046/- Lakhs].

6 Segmental Information

The company operates within a single business segment which constitutes real estate development and letting out of developed properties. The Company operates only in India and hence there is no other geographical segment. Hence no seperate disclosure of segment information as per Accounting Standard-17 has been made.

7 Refer Annexure I for disclosures under Clause 32 of the Listing Agreement

8 The Company has 50% interest in CapitaLand Retail Prestige Mall Management Private Limited (CRPM), Prestige Garden Resorts Private Limited (PGRPL) (upto January 28, 2013), Vijaya Productions Pvt Ltd (VPPL) (w.e.f December 12, 2011), PSN Property Management Services (PSNPMS) (w.e.f July 1, 2012) and Sai Chakra Hotels Pvt Ltd (SCHPL) (w.e.f September 3, 2012) in India, which has been considered as Joint Ventures. The Company''s share of the assets, liabilities, income and expenses is as below:

9 Related party disclosures List of related parties

A. Subsidiary companies

Prestige Leisure Resorts Private Limited

ICBI (India) Private Limited

Prestige Valley View Estates Private Limited

Prestige Bidadi Holdings Private Limited

Village-De-Nandi Private Limited

Pennar Hotels & Resorts Private Limited

Down Hills Holiday Resorts Private Limited

Foothills Resorts Private Limited

Prestige Construction Ventures Private Limited

Prestige Mangalore Retail Ventures Private Limited

Prestige Mysore Retail Ventures Private Limited

Prestige Whitefield Investment & Developers Private Limited

Valdel Xtent Outsourcing Solutions Private Limited

K2K Infrastructure (India) Private Limited (formerly known as Team United Engineers (India)

Private Limited)

Prestige Shantiniketan Leisures Private Limited

Northland Holding Company Private Limited

West Palm Developments Private Limited

Cessna Garden Developers Private Limited

Villaland Developers Private Limited

Prestige Amusements Private Limited (w.e.f 31 March, 2012)

Prestige Garden Resorts Private Limited (w.e.f. 28 January 2013)

B. Other parties

(i) Associate companies where there is significant influence:

Prestige Amusements Private Limited (Up to 30 March 2012)

Prestige Garden Constructions Private Limited

Babji Realtors Private Limited

City Properties Maintenance Company Bangalore Limited

Prestige Projects Private Limited

Exora Business Parks Private Limited

(ii) Joint venture of the Company

CapitaLand Prestige Retail Mall Management Private Limited Vjaya Productions Private Limited (w.e.f 12 December, 2011) Prestige Garden Resorts Private Limited (upto 27 January, 2013) Sai chakra Hotels Pvt Ltd (w.e.f 3 September, 2012)

(iii) Company in which the directors are interested

Thomsun Realtors Private Limited

Prestige Fashions Private Limited

Dollar Constructions & Engineers Private Limited

Prestige Garden Estates Private Limited

Prestige Golf Resorts Private Limited

Dashanya Tech Parkz Private Limited

Dollar Hotels & Resorts Private Limited

(iv) Associates, Partnership firms and Trusts in which some of the directors and relatives are interested:

Brunton Developers (Up to 1 September, 2011)

Castlewood Investments

Colonial Estates

Educate India Foundation

Educate India Trust

Prestige Hi-Tech Projects (formerly known as Hi-Tech Properties)

Prestige Constructions

Prestige Property Management and Services

Prestige Whitefield Developers

Prestige Notting Hill Investments

Morph

Eden Investments

Prestige Ozone Properties

RRR Investments (Joint Venture up to 31 March, 2012)

Sublime

Prestige KRPL Techpark

Prestige Realty Ventures

Window Care

Morph Design Company

Albert Properties

Prestige Interiors

Silveroak Projects

Silverline Estates

Nebulla Investments

Prestige Southcity Holdings

PSN Property Management & Services (Joint Venture w.e.f 1 July, 2012)

Prestige Habitat Ventures

Spring Green

Prestige Cuisine

The Good Food Co.

C (i) Key management personnel:

Irfan Razack, Managing Director Rezwan Razack, Joint Managing Director Noaman Razack, Director

(ii) Relative of key management personnel:

Badrunissa Irfan Almas Rezwan Sameera Noaman Faiz Rezwan Uzma Irfan

Mohammed Zaid Sadiq Rabia Razack Anjum Jung Omer Bin Jung Matheen Irfan Sana Rezwan Danya Noaman Zayd Noaman

Note: The related party relationships are as identified by management which has been relied upon by the auditors.

Details of related party transactions during the year and balances outstanding at the year end are given in Annexure - II

10 The Company enters into domestic transactions with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 ( regulations ). The pricing of such domestic transactions will need to comply with the Arms length principle under the regulations. These regulations, inter alia, also required the maintenance of prescribed documents and information including furnishing a report from an accountant which is to be filed with the Income tax authorities.

The Company has undertaken necessary steps to comply with the regulations. The management is of the opinion that the domestic transactions are at arm s length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxaion.

11 Previous years figures have been regrouped/reclassified wherever necessary to correspond to the current years classification/disclosure.


Mar 31, 2012

1. Contingent Liabilities and commitments (to the extent not provided for)

Rs. In Lakhs

As at As at Particulars 31 March 2012 31 March 2011

1. Claims against Company not acknowledged as debts

a. Disputed Value Added Tax 124 124

b. Disputed Service Tax 75 75

2. Bank guarantees

a. Performance Guarantee (Includes guarantees of Rs. 230 Lakhs 6,927 4,369 (P.Y Rs. 221 Lakhs) towards obligation for earnings in foreign currency of Rs. 1839 Lakhs (P.Y Rs. 1768 Lakhs), outstanding to be met by 2021-22)

3. Corporate guarantees given on behalf of companies under 1,14,475 74,766 the same management

4. Capital commitments (Net of advances) 4,168 5,638

2. Operating Lease

The Company has taken and given residential and commercial spaces under operating lease basis which include leases that are renewable on a yearly basis, cancellable at the Company's option and other long term leases.

The rental and hire charges income from operating leases included in the Profit and Loss Statement for the year is Rs 15,986/- Lakhs [Previous Year - Rs. 14,230/- Lakhs] respectively.

Rental expense for operating leases included in the Profit and Loss Statement for the year is Rs.6,046/- Lakhs [Previous Year- Rs. 4,985/- Lakhs].

As at March 31, 2012 the future minimum lease rentals payable and receivable towards non-cancellable operating leases are:

3. Segmental Information

The company operates within a single business segment which constitutes real estate development and letting out of developed properties. The Company operates only in India and hence there is no other geographical segment. Hence the disclosure of segment information as per Accounting Standard-17 is not applicable.

4. The Company is not engaged in trading/manufacturing activity and hence the information as required under paragraph 5(ii) of general instruction, for preparation of Profit & Loss Statement are not applicable.

5. The Company has 50% interest in Partnership firm M/s. RRR Investments (RRR) (upto March 31, 2012), CapitaLand Retail Prestige Mall Management Private Limited (CRPM), Prestige Garden Resorts Private Limited (PGRPL) and Vijaya Productions Pvt Ltd (VPPL) (w.e.f December 12, 2011) in India, which has been considered as Joint Ventures. The Company's share of the assets, liabilities, income and expenses is as below:

6. List of related parties

A. Subsidiary companies

Prestige Leisure Resorts Private Limited

ICBI (India) Private Limited

Prestige Valley View Estates Private Limited

Prestige Bidadi Holdings Private Limited

Village-De-Nandi Private Limited

Pennar Hotels & Resorts Private Limited

Down Hills Holiday Resorts Private Limited

Foothills Resorts Private Limited

Prestige Construction Ventures Private Limited

Prestige Mangalore Retail Ventures Private Limited

Prestige Mysore Retail Ventures Private Limited

Prestige Whitefield Investment & Developers Private Limited

Valdel Xtent Outsourcing Solutions Private Limited

K2K Infrastructure (India) Private Limited (formerly known as Team United Engineers (India) Private Limited )

Prestige Shantiniketan Leisures Private Limited

Northland Holding Company Private Limited

West Palm Developments Private Limited

Cessna Garden Developers Private Limited (w.e.f 12th April 2010)

Villaland Developers Private Limited (w.e.f 31st August 2010)

Prestige Amusements Private Limited (w.e.f 31st March, 2012)

B. Other parties

(i) Associate companies where there is significant influence:

Prestige Amusements Private Limited (Upto 30th March, 2012)

Prestige Garden Constructions Private Limited Babji Realtors Private Limited

City Properties Maintenance Company Bangalore Limited Prestige Projects Private Limited

CapitaLand Prestige Mall Management Private Limited (Joint venture w.e.f 1st January 2010)

Prestige Garden Resorts Private Limited

Exora Business Parks Private Limited (subsidiary upto 30th December 2010)

Vijaya Producations Private Limited ( (Joint Venture w.e.f December 12, 2011)

(ii) Company in which the directors are interested

Thomsun Realtors Private Limited

Prestige Fashions Private Limited

Dollar Constructions & Engineers Private Limited

Prestige Home Finance Limited (Dissolved on 25th February 2011)

Prestige Garden Estates Private Limited Prestige Golf Resorts Private Limited

Kandid Marketing Services Private Limited (Dissolved on 16th March 2011)

(iii) Associates, Partnership firms and Trusts in which some of the directors and relatives are interested:

Brunton Developers (Upto 1st Sept 2011)

Castlewood Investments Colonial Estates Educate India Foundation Educate India Trust

Prestige Hi-Tech Projects (formerly known as Hi-Tech Properties)

Prestige Constructions

Prestige Property Management and Services

Prestige Whitefield Developers

Prestige Notting Hill Investments

Morph

Eden Investments Prestige Ozone Properties

RRR Investments (Joint Venture upto March 31st, 2012)

Sublime

Prestige KRPL Techpark Prestige Realty Ventures Window Care Morph Design Company Albert Properties Prestige Interiors Silveroak Projects Silverline Estates Nebulla Investments Prestige Southcity Holdings Spring Green Prestige Cuisine The Good Food Co.

C (i) Key management personnel:

Irfan Razack, Managing Director Rezwan Razack, Joint Managing Director Noaman Razack, Director

Dr.Pangal Ranganath Nayak, Independent Director Jagdeesh K. Reddy, Independent Director Biji George Koshy, Independent Director Noor Ahmed Jaffer, Independent Director

(ii) Relative of key management personnel:

Badrunissa Irfan Almas Rezwan Sameera Noaman

Faiz Rezwan

Uzma Irfan

Mohammed Zaid Sadiq Rabia Razack Anjum Jung Omer Bin Jung Matheen Irfan Sana Rezwan Danya Noaman Zayd Noaman

Note: The related party relationships are as identified by management which has been relied upon by the auditors.

Details of related party transactions during the year and balances outstanding at the year end are given in Annexure - I

7. The Schedule VI of the Companies Act, 1956, as amended, has become effective from April 1, 2011 for the preparation of financial statements and accordingly the disclosure and presentation have been made in the financial statements. Previous years figures have been regrouped/reclassified wherever necessary to correspond to the current years classification/disclosure.


Mar 31, 2011

1 Initial Public Offer (IPO)

During the year, the Company completed a public issue of 65,573,770 equity shares of Rs 10/- each for cash at a price of Rs 183/- each aggregating to Rs 11,999,999,910/-. The premium of Rs 173/- per equity share amounting to Rs 11,344,262,210/- from the allottment of 65,573,770 equity shares has been credited to securities premium account. The securities premium account stands net of shares issue expenses of Rs 523,253,093/-. Pursuant to the Public Issue, equity shares of the Company have been listed on Bombay Stock Exchange and National Stock Exchange effective 27th October, 2010.

The actual utilization of proceeds of the issue of Rs 11,476,746,817/- (net of share issue expenses) as disclosed in the prospectus is as under:

The unutilised funds as at 31 March 2011 have been temporarily invested in fixed deposits with scheduled banks, investments in mutual funds and in current account balance with scheduled banks.

The actual utilization of IPO proceeds exceeds the amounts mentioned in the offer documents in respect of repayment of certain loans aggregating to Rs 638,400,000/- , acquisition of land aggregating to Rs 762,767,625/- and amount utilized towards projects not mentioned in such offer documents aggregating to Rs 1,344,236,591/-. The Company will request the shareholders for approval/ratification of the utlizatiaon of the IPO proceeds in the ensuing Annual General Meeting.

2. In the Annual General Meeting held on 22nd September 2009 the shareholders have consented for issuance of 20 equity shares of face value of Rs 10/- each as bonus shares for every one share held by the equity shareholders of the Company whose name appear in the register of members as on the record date, by capitalization of general reserve and surplus in Profit and Loss Account. The Board of Directors vide their resolution on 23rd September 2009 have allotted the said bonus shares.

3. Contingencies and commitments

(Amount in Rs )

Sl. Particulars As at As at

No. 31-Mar-11 31-Mar-10

1 Claims against Company not acknowledged as debts

(a) Disputed Value Added Tax 12,423,747 12,423,747

(b) Disputed Service Tax , 7,488,028 7,488,028

2 Bank guarantees

(a) Performance Guarantee (Includes guarantees of Rs 22,097,467/- 436,949,893 311,764,692 [P.Y. - Rs 15,001,467/-] towards obligation for earnings in foreign currency of Rs 176,779,736 [P.Y. - Rs 123,245,836], outstanding to be met by 2018-19)

(b) Financial Guarantee - 18,450,000

3 Corporate guarantees given on behalf of companies under the 7,469,508,409 5,423,950,626 same management

4 Capital commitments (Net of advances) 563,807,301 21,235,174

Segmental information

The Company operates within a single business segment which constitutes real estate development and letting out of developed properties. The Company operates only in India and hence there is no other geographical segment. Hence the disclosure of segment information as per Accounting Standard-17 is not applicable.

5 Related party disclosure

(i) List of related parties A Subsidiary companies

(a) Prestige Leisure Resorts Private Limited

(b) ICBI (India) Private Limited

(c) Prestige Valley View Estates Private Limited

(d) Prestige Bidadi Holdings Private Limited

(e) Village De-Nandi Private Limited

(f) Pennar Hotels & Resorts Private Limited

(g) Downhills Holiday Resorts Private Limited (h) Foothills Resorts Private Limited

(i) Prestige Construction Ventures Private Limited

0 Prestige Mangalore Retail Ventures Private Limited

(k) Prestige Mysore Retail Ventures Private Limited

0 Prestige Whitefield Investment & Developers Private Limited

(m) Valdel Xtent Outsourcing Solutions Private Limited

(n) Team United Engineers (India) Private Limited

(o) Prestige Shantiniketan Leisures Private Limited

0) Northland Holding Company Private Limited

(q) West Palm Developments Private Limited (w.e.f. 22nd Sept 2009)

(r) Cessna Garden Developers Private Limited (w.e.f. 12th April 2010)

(s) Villaland Developers Private Limited (w.e.f. 31 August 2010) B

Other parties with whom transactions during the year:

(i) Associate companies where there is significant influence:

(a) Prestige Amusements Private Limited

0) Prestige Garden Constructions Private Limited

(c) Babji Realtors Private Limited

(d) City Properties Maintenance Company (Bangalore) Limited

(e) Prestige Projects Private Limited

(f) CapitaLand Prestige Mall Management Private Limited (Joint ventures w.e.f. 1st Jan 2010)

(g) Prestige Garden Resorts Private Limited (Joint Ventures w.e.f. 23rd Sept 2009) 0) Exora Business Parks Private Limited (subsidiary upto 30th December 2010)

(i) Vijaya Productions Private Limited

(ii) Company in which the directors are interested

(a) Thomsun Realtors Private Limited

(b) Prestige Fashions Private Limited

(c) Dollar Constructions & Engineers Private Limited

(d) Karnataka Realtors Private Limited (upto 01st Sept 2009)

(e) Prestige Home Finance Limited (Dissolved on 25th Feb 2011)

(f) Prestige Garden Estates Private Limited

(g) Prestige Golf Resorts Private Limited (upto 23rd Sept 2009)

(h) Kandid Marketing Services Private Limited (Dissolved on 16th Mar 2011)

(iii) Associates and Partnership firms in which some of the directors and relatives are interes

(a) Brunton Developers

(b) Castlewood Investments

(c) Colonial Estates

(d) Educate India Foundation

(e) Educate India Trust

(f) HiTech Properties

(g) Prestige Constructions

(h) Prestige Property Management and Services (w.e.f. 1st Sept 2009)

(i) Silverline Estates

(j) Prestige Whitefield Developers

(k) Prestige Nottinghill Investments

(1) Morph

(m) Eden Investments

(n) Prestige Ozone Properties

(o) RRR Investments (Joint Ventures)

(p) Sublime

(q) Prestige KRPL Techpark

(r) Prestige Realty Ventures (w.e.f. 1st Sept 2009)

(s) Window Care

(t) Morph Design Company

(u) Albert Properties

(v) Prestige Interiors (w.e.f. 1st Sept 2009)

(w) Silveroak Projects (w.e.f. 13th Jan 2010)

(x) Nebulla Investments

C (i) Key management personnel:

(a) Irfan Razack, Managing Director

(b) Rezwan Razack, Joint Managing Director

(c) Noaman Razack, Director (w.e.f. 31 January 2011)

(ii) Relative of key management personnel:

(a) Badrunissa Irfan

(b) Almas Rezwan

(c) Sameera Noaman

(d) Fai2 Rezwan

(e) Uzma Irfan

(f) Mohammed Zaid Sadiq

(g) Rabia Razack (h) Anjum Jung

(i) Omer Bin Jung (j) Matheen Irfan (k) Sana Rezwan (1) Danya Noaman (m) Zayd Noaman (n) Saif Ebrahim

Note: The related party relationships are as identified by management which has been relied upon by the auditors. (ii) Details of related party transactions during the year and balances outstanding at the year end are given in Annexure - II. 11 Operating lease

The Company has taken and given residental and commercial spaces under operating lease basis which include leases that are renewable on a yearly basis, cancellable at the Companys option and other long term leases.

The rental and hire charges income from operating leases included in the Profit and Loss Account for the year is Rs 1,423,015,382/- (Previous Year - Rs 1,278,443,881/-) respectively.

Rental expense for operating leases included in the profit and loss account for the year is Rs 498,488,453/- (Previous Year- Rs 408,393,223/-).

As at 31 March 2011 the future minimum lease rentals payable and receivable towards non-cancellable operating leases are:

6. Employee Benefits

The details of employee benefits as required under Accounting Standard 15 Employee Benefits is given below I Defined Contribution Plan

During the year, the Company has recognized the following amounts in the Profit and Loss Account -

II Defined Benefit Plan

In accordance with Accounting Standard 15 actuarial valuation based on projected unit credit method as on 31 March 2011 has been carried out in respect of the aforesaid defined benefit plan of Gratuity the details thereon is given below:

III Other Employee Benefits - Leave Encashment

Leave salary benefit expensed in the Profit and Loss Account for the year is Rs 1,011,180/- (Previous Year - Rs 1,702,982). Leave Salary liability is not funded.

Note: The information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 and that given in Current Liabilities - Schedule 11 regarding Micro and Small Enterprises determined to the extent such parties have been identified on the basis of the information available with the Company. This has been relied upon by the Auditors.

7 The donation for the year in Schedule 20 includes donation made to Communist Pary of India (M) Rs 250,000/- Previous Year (Nil).

8 The Company has 50% interest in Partnership firm M/s RRR Investments (RRR), CapitaLand Retail Prestige Mall Management Private Limited (CRPM) and Prestige Garden Resorts Private Limited (PGRPL) in India, which has been considered as Joint Ventures. The Companys share of the assets, liabilities, income and expenses is as below:

9 Quantitative details

The Company is not a manufacturing or trading Company, hence quantitative and other disclosures as required by paragraph 3(ii)(a), (b) and paragraph 4c of Part II of Schedule VI to the Companies Act, 1956 are not applicable to the Company.

10 Previous years figures have been re-grouped/re-classified wherever necessary to facilitate comparison with those for the current period.

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