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Notes to Accounts of Prestige Estates Projects Ltd.

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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