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Notes to Accounts of Puravankara Ltd.

Mar 31, 2016

b. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of H5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders. The Board has proposed an annual dividend for all shareholders of the Company amounting to H0.78 per equity share (31 Mar 2015 - H 1.55).

d. Aggregate number of bonus shares issued and shares issued for consideration other than cash during the year of five years immediately preceding the reporting date:

The Company has not issued any bonus shares nor there has been any buy back of shares during five years immediately preceding 31 March 2016.

e. Shares reserved for issue under options

On 1 July 2006, the members of the Company approved the Puravankara Projects Limited 2006 Employee Stock Option Scheme (‘ESOS’ or ‘the Plan’) of the Company. The plan provides for the issuance of stock options to eligible employees (including directors of the Company) with the total options issuable under the Plan not to exceed 1,366,080 options and includes a limit for the maximum and minimum number of options that may be granted to each employee. Under the plan, these options vest over a period of four years and can be exercised for a period of one year from vesting. As on 31 March 2016, there are no options outstanding under the above plan.

The Company is also involved in certain litigation for lands acquired by it for construction purposes, either through a Joint Development Agreement or through outright purchases. These cases are pending with the Civil Courts and scheduled for hearings shortly. After considering the circumstances and legal advice received, the management believes that these cases will not adversely affect its financial statements. Further the Company has given certain advances for purchase of land under agreements executed wherein it is required to make further payments based on terms/milestones subject to fulfillment of certain conditions by other party.

On 01 January 2016, the Payment of Bonus (Amendment) Act, 2015 the (''Act'') was notified in the official gazette increasing the minimum wages for payment of statutory bonus with retrospective effect from 01 April 2014. The Hon’ble High Court of Karnataka vide order dated 02 February 2016 stayed the retrospective application of the Act. The Company has provided for the payment of bonus as per the Act for all the locations except Karnataka for which provision has been made for the period on or after 01 April 2015.

A. Defined benefit plan

The Company has gratuity and vacation pay as defined benefit retirement plans for its employees. As at 31 March 2016 and 31 March 2015 the plan assets were invested in insurer managed funds.

B. Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and Employees State Insurance Scheme as per the Employees'' State Insurance Act, 1948. This is a defined contribution plan as per AS 15. Contribution made was H2.70 for the year ended 31 March 2016 (31 March 2015- H2.53).

The statement of profit and loss for the year ended 31 March 2016 includes expenditure amounting to H24.34 (previous year - H50.80), respectively, in respect of completed projects sold during earlier periods.

As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The areas for CSR activities are promoting education, art and culture, healthcare, ensuring environmental sustainability, destitute care and rehabilitation and rural development projects. During the year, the Company has spent H2.21 against H2.58 towards CSR activities.

For details of loans, advances and guarantees given and securities provided to related parties refer note 31.

The Company is engaged in the development and construction of residential and commercial properties which is considered to be the only reportable business segment as per AS 17 on Segment Reporting. The Company operates primarily in India and there is no other significant geographical segment.

The information as required under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company and has been relied upon by the auditors. The Company has not received any claim for interest from any supplier under the said Act.

Prior period comparatives have been regrouped/reclassified wherever necessary to conform to the presentation in the current period.


Mar 31, 2015

Note 1:

a. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board has proposed an annual dividend for all shareholders of the Company amounting to Rs. 1.55 per equity share (31 March 2014- Rs. 1.92).

b. Aggregate number of bonus shares issued and shares issued for consideration other than cash during the period of five years immediately preceding the reporting date:

The Company has not issued any bonus shares nor there has been any buy back of shares during five years immediately preceding 31 March 2015.

c. Shares reserved for issue under options

On 1 July 2006, the members of the Company approved the Puravankara Projects Limited 2006 Employee Stock Option Scheme ('ESOS' or 'the Plan') of the Company. The plan provides for the issuance of stock options to eligible employees (including directors of the Company) with the total options issuable under the Plan not to exceed 1,366,080 options and includes a limit for the maximum and minimum number of options that may be granted to each employee. Under the plan, these options vest over a period of four years and can be exercised for a period of one year from vesting. As on 31 March 2015, there are no options outstanding under the above plan.

Note 2:

On 28 April 2014, the Company entered into a sale deed to sell a portion of its property under development for cash consideration of Rs. 5.75. Additionally, on 02 May 2014, the Company has entered into an agreement to sell additional undivided share (UDS) of its property under development aggregating to 25 percent of the said property for a total cash consideration of Rs. 320.81. Of the total consideration, Rs. 155.81 has been received on execution of the agreement towards the portion of the UDS. The balance consideration amounting Rs. 164.99 and Rs. 0.01 towards remaining 25 percent of the property under development is payable subject to receipt of plan sanction and at the time of registration of the aforesaid transaction, respectively. Consequently, during the quarter ended 30 June 2014, the Company has recognized revenue from sale of land (to the extent of 25 percent of its property under development) amounting to Rs. 161.56. The remaining 25 percent of the property under development shall be recognized as and when the contingencies are resolved.

* Revenue from sale of properties includes nil for the year ended 31 March 2015 (31 March 2014 Rs. 38.03) being the consideration for sale of land.

Note 3:

During the previous years, the Company received an order from the Income Tax Appellate Tribunal (ITAT) directing the Assessing Officer to carry-out the denovo assessment of the income for fiscal 2004 to 2009 in relation to the claim under Section 80-IB for a project of the Company. Based on the aforesaid denovo assessment carried out, a portion of the claim under Section 80-IB was disallowed for the above referred project. The appeal against the said ITAT order is pending before the Hon'ble High Court of Bombay.

During the current year, the Company received favourable orders for fiscal 2010 and 2011 from CIT (Appeals) allowing the claim under Section 80-IB in relation to certain eligible projects. In addition, a portion of the claim under Section 80-IB for a project was disallowed based on the aforesaid ITAT order.

Consequently, the Company recorded a net credit amounting Rs. 27.02 in the financial statements in respect of the eligible claim under Section 80-IB.

Further, during the current year, the Company has received an order for fiscal 2005 and 2006 towards penalty amounting to Rs. 2.54 consequent to the denovo assessment order for those years. The appeal against the demand for penalty which is pending with CIT (Appeals).The management believes that aforesaid open litigations will not have any material affect on the financial statements.

Note 4:

Sublease

The Company has sub let three of the properties under a non cancellable operating lease agreement. Lease income was Rs. 2.81 for the year ended 31 March 2015 (31 March 2014 Rs. 1.65).

Note 5:

Other commitments and contingencies

31 Mar 2015 31 Mar 2014

a) Demand from Service Tax Department 5.43 5.17

b) Demand from Commercial Tax Department 2.26 2.26

c) Penalty under section 271(1)(c) of Income Tax Act, 1961 2.54 -

d) Deduction under Section 80-IB of the Income - tax Act, 1961 - 6.81 (refer note 26)

e) Guarantee given by the Company on behalf of subsidiary 314.63 250.00

f) Company's share of contractual commitments to an associate - 22.39

The Company is also involved in certain litigation for lands acquired by it for construction purposes, either through a Joint Development Agreement or through outright purchases. These cases are pending with the Civil Courts and scheduled for hearings shortly. After considering the circumstances and legal advice received, management believes that these cases will not adversely effect its financial statements. Further the company has given certain advances for purchase of land under agreements executed wherein it is required to make further payments based on terms/milestones subject to fulfilment of certain conditions by other party.

Note 6:

Related party transactions

(i) Subsidiaries

Prudential Housing and Infrastructure Development Limited

Centurions Housing and Constructions Private Limited

Melmont Construction Private Limited

Purva Corporation

Purva Marine Properties Private Limited

Purva Realities Private Limited

Welworth Lanka Holding Private Limited

Welworth Lanka Private Limited

Nile Developers Private Limited

Vaigai Developers Private Limited

Grand Hills Developments Private Limited

Purva Star Properties Private Limited

Purva Sapphire Land Private Limited

Purva Ruby Properties Private Limited

Puravankara Hotels Limited

Starworth Infrastructure and Construction Limited

Provident Housing Limited

Purva Land Limited

Purva Good Earth Properties Private Limited Puravankara (UK) Limited

Pune Projects LLP

(ii) Parties where control exists

Mr. Ravi Puravankara

(iii) Key management personnel Mr. Ravi Puravankara

(iv) Key management personnel- as per section 2(51) of Companies Act 2013*

Mr. Nani R Choksey- Deputy Managing Director of Puravankara Projects Limited

Mr. Anil Kumar A- Chief Financial Officer of Puravankara Projects Limited (resigned with effect from 20 March 2015)

Mr. Jackbastian Kaitan Nazareth- Chief Executive Officer of Puravankara Projects Limited

Mr. Raguram V P- Company Secretary of Puravankara Projects Limited

* Refer Directors' Report on redesignation of Key Management Personnel effective 25 May 2025.

(v) Relatives of key management personnel

Ms. Geeta S Vhatkar

Mr. Ashish Puravankara

(vi) Entities controlled/significantly influenced by key management personnel (other related parties)

Purva Developments

Puravankara Investments

Handiman Services Limited

Dealwel - Proprietorship

Purva Properties and Resorts Private Limited

Dealwel Estates Private Limited

(vii) Associate companies

Keppel Puravankara Development Private Limited

Keppel Magus Development Private Limited (till 27 June 2014)

Propmart Technologies Limited

Sobha Puravankara Aviation Private Limited

Note 7:

Employee benefits

A. Defined benefit plan

The Company has gratuity and vacation pay as defined benefit retirement plans for its employees. As at 31 March 2015 and 31 March 2014 the plan assets were invested in insurer managed funds.

B. Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees' Provident Funds and Miscellaneous Provisions Act, 1952. This is a defined contribution plan as per AS 15. Contribution made was Rs. 2.49 for the year ended 31 March 2015 (31 March 2014 Rs. 1.90).

Note 8:

The Statement of Profit and Loss for the quarter and year ended 31 March 2015 includes expenditure amounting to Rs. 50.80 (previous periods - Rs. 35.65), respectively, in respect of completed projects sold during earlier periods.

Note 9:

Corporate social responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The areas for CSR activities are promoting education, art and culture, healthcare, ensuring environmental sustainability, destitute care and rehabilitation and rural development projects. During the year, the Company has spent Rs. 1.82 against the limit of Rs. 2.50 towards CSR activities.

Note 10:

Segmental information

The Company is engaged in the development and construction of residential and commercial properties which is considered to be the only reportable business segment as per Accounting Standard 17 on Segment Reporting. The Company operates primarily in India and there is no other significant geographical segment.

Note 11:

Disclosures of dues to micro, small and medium enterprises

Based on the information available with the Company, Rs. 4.70 (31 March 2014 - Rs. 3.69) is the amount payable to micro, small and medium enterprises at the Balance Sheet date. These amounts, being retention money, are due only on completion of retention period and are contractually not due as on 31 March 2015 as per the contract with the said parties. Consequently, the management believes that the interest liability under The Micro, Small and Medium Enterprises Development Act, 2006 does not arise and hence no disclosure is required under the said law.

The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company which has been relied upon by the auditors.

Note 12:

Prior period comparatives

Prior period comparatives have been regrouped/reclassified wherever necessary to conform to the presentation in the current period.


Mar 31, 2014

1 Share capital

a. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders

The Board has proposed an annual dividend for all shareholders of the Company amounting toRs. 1.92 per equity share (31 March 2013- Rs. 1) and additionally declared interim dividend amounting to nil (31 March 2013 - Rs. 2.50) as distribution to shareholders excluding promoter (including promoters group) shareholders

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares

d. Aggregate number of bonus shares issued and shares issued for consideration other than cash during the period of five years immediately preceding the reporting date

The Company has not issued any bonus shares nor there has been any buy back of shares during five years immediately preceding 31 March 2014.

e. Shares reserved for issue under options

On 1 July 2006, the members of the Company approved the Puravankara Projects Limited 2006 Employee Stock Option Scheme (''ESOS'' or ''the Plan'') of the Company. The plan provides for the issuance of stock options to eligible employees (including directors of the Company) with the total options issuable under the Plan nottoexceed 1,366,080 options and includes a limitforthe maximum and minimum number of options that may be granted to each employee. Under the plan, these options vest over a period of four years and can be exercised for a period of one year from vesting. As on 31 March 2014, there are no options outstanding under the above plan

2 Leases

The lease expense for cancellable and non-cancellable operating leases was Rs. 108.68 for the year ended 31 March2014(31 March2013-Rs. 106.85). Lease commitments under the non-cancellable operating leases as at the Balance Sheet date were as follows:-

Sublease

The Company has sub let one of the properties under a non cancellable operating lease agreement. Lease ncomewasRs. 16.50 for the year ended 31 March 2014(31 March 2013-Rs. 8.25).

3 Other commitments and contingencies

31 Mar 2014 31 Mar 2013

a) Demand from Service Tax Department 51.71 68.08

b) Demand from Commercial Tax Department 22.64 23.26

c) Deduction under Section 80-IB of the Income - tax Act, 1961 (refer note (i) below) 68.12 140.67

d) Guarantee given by the Company on behalf of subsidiary 2,500.00 2,600.00

e) Company''s share of contractual commitments to an associate 288.70 546.87

(i) The Company has received an order from the Income Tax Appellate Tribunal (ITAT) directing the Assessing officer to carryout the denovo assessment of the income for A.Y 2004-05 to 2009-10 reconsidering the claim under Section 80-IB for a project of the Company. During the quarter ended 31 March 2014, the Assessing Officer carried out the denovo assessment for A.Y 2004-05 to 2009-10, proportionately disallowing the deduction ofRs. 164.47 under Sec 80-IB for the above referred project. Consequent to the ITAT order referred above the income tax department has simultaneously preferred an appeal in the Hon''ble High Court of Bombay challenging the ITAT order. As the appeal against the ITAT order is pending with the Hon''ble High Court, the management has not preferred an appeal against the denovo assessment order. Management believes that the above will not have any affect on these financial statements.

Further, the Company has also received a demand for A.Y 2010-11 and 2011-12 for the above project disallowing the deduction under section 80-IB of the Income tax Act, 1961, wherein the management has filed an appeal with Commissioner of Income Tax (Appeals). The management believes that the above will not have any impact on these financial statements.

(ii) The Company is also involved in certain litigation for lands acquired by it for construction purposes, either through a Joint Development Agreement or through outright purchases. These cases are pending with the Civil Courts and scheduled for hearings shortly. After considering the circumstances and legal advice received, management believes that these cases will not adversely effect its financial statements. Further the company has given certain advances for purchase of land under agreements executed wherein it is required to make further payments based on terms/milestones subject to fulfilment of certain conditions by other party.

4 Related party transactions

(i) Subsidiaries

Prudential Housing and Infrastructure Development Limited

Centurions Housing and Constructions Private Limited

Melmont Construction Private Limited

Purva Corporation

Purva Marine Properties Private Limited

Purva Realities Private Limited

Welworth Lanka Holding Private Limited

Welworth Lanka Private Limited

Nile Developers Private Limited

Vaigai Developers Private Limited

Grand Hills Developments Private Limited (formerly known as Purva Opel Properties Private Limited)

Purva Star Properties Private Limited

Purva Sapphire Land Private Limited

Purva Ruby Properties Private Limited

Puravankara Hotels Limited

Starworth Infrastructure and Construction Limited

Provident Housing Limited

Purva Land Limited

Purva Good Earth Properties Private Limited

Puravankara (UK) Limited

(ii) Parties where control exists

Mr. Ravi Puravankara

(iii) Key management personnel

Mr. Ravi Puravankara

(iv) Relatives of key management personnel

Ms. Geeta S Vhatkar Mr. Ashish Puravankara Ms. Amanda Puravankara

(v) Entities controlled/significantly influenced by key management personnel (other related parties)

Purva Developments

Puravankara Investments

Handiman Services Limited

Dealwel - Proprietorship

Tanya Trust

Amanda Trust

Purva Properties and Resorts Private Limited

Dealwel Estates Private Limited

(vi) Associate companies

Keppel Puravankara Development Private Limited Keppel Magus Development Private Limited Propmart Technologies Limited Sobha Puravankara Aviation Private Limited

5 Employee benefits

A. Defined benefit plan

The Company has gratuity and vacation pay as defined benefit retirement plans for its employees. As at 31 March 2014 and 31 March 2013 the plan assets were invested in insurer managed funds

B. Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. This is a defined contribution plan as per AS 15. Contribution made was Rs. 19.03 for the year ended 31 March 2014 (31 March 2013 -Rs. 19.33).

6 Segmental information

The Company is engaged in the development and construction of residential and commercial properties which is considered to be the only reportable business segment as per Accounting Standard 17 on Segment Reporting The Company operates primarily in India and there is no other significant geographical segment

7 Disclosures of dues to micro, small and medium enterprises

Based on the information available with the Company, Rs. 33.41 (31 March 2013 - Rs. 26.08) is the amount payable to micro, small and medium enterprises at the balance sheet date. These amounts, being retention money, are due only on completion of retention period and are contractually not due as on 31 March 2014 as per the contract with the said parties. Consequently, the management believes that the interest liability under ''The Micro, Small and Medium Enterprises Development Act, 2006'' does not arise and hence no disclosure is required under the said law.

The above information has been determined to the extent such parties have been identified on the basis of nformation provided by the Company which has been relied upon by the auditors.

8 Unhedged foreign currency exposure

Balance as on 31 March 2014 in Hatton National Bank, Srilanka amounted to LKR 0.005 million (31 March 2013-LKR 1.13 million).

Balance as on 31 March 2014 in HSBC, Dubai amounted to AED 0.024 million (31 March 2013 - AED 0.16 million)

9 Transfer pricing

The Finance Act, 2012 has made the detailed Transfer Pricing regulations applicable to ''specific domestic transactions''. Accordingly, the income and/or expenditure arising from such ''specific domestic transactions'' have to be computed having regard to the arm''s length price. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant within the due date of filing the return of income.

The company has undertaken necessary steps to comply with the Transfer Pricing regulations and the prescribed report from the Accountant will be obtained for the year ending 31 March 2014. The management is of the opinion that the above referred 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

10 Prior period comparatives

Prior period comparatives have been regrouped/reclassified wherever necessary to conform to the presentation in the current year.


Mar 31, 2013

31 March 2013 31 March 2012

1. Other commitments and contingencies

a) Demand from Service Tax Department 68.08 46.43

b) Demand from Commercial Tax Department 23.26 5.44

c) Deduction under Section 80-IB of the Income-tax Act, 1961 140.67 147.16

d) Collateral Security given by the Company on behalf of subsidiary 2,090.06 122.50

e) Company''s share of contractual commitments to an associate 546.87

The Company has claimed deduction under Section 80-IB of the Income - tax Act, 1961 on two projects based out at Cochin. The time limit specified by the cited section above for completing the two projects was 31 March 2011. However, the Company was not able to complete the same within the prescribed time limit primarily on account of a court stay in one of the projects and the poor state of reclamation of the land in the other. Based on a legal opinion obtained on the above, the management believe that the deduction under the cited section above will not be denied and these financial statements do not include any adjustments on account of the same.

During the year, the Company has also received an order from ITAT directing the Assessing officer to carryout the denovo assessment of income for A.Y. 2004-05-2009-10 reconsidering the claim under Section 80-IB for a project of the Company. Additionally the Company has also received a demand for A.Y. 2010-11 on the aforementioned issue. Management believes that the above will not have any mpact on these financial statements

The Company is also involved in certain litigation for lands acquired by it for construction purposes, either through a Joint Development Agreement or through outright purchases. These cases are pending with the Civil Courts and scheduled for hearings shortly. After considering the circumstances and legal advice received, management believes that these cases will not adversely effect its financial statements. Further the company has given certain advances for purchase of land under agreements executed wherein it is required to make further payments based on terms/milestones subject to fulfilment of certain conditions by other party.

2. Related party transactions

(i) Subsidiaries:

Prudential Housing and Infrastructure Development Ltd

Centurions Housing and Constructions Pvt. Ltd

Melmont Construction Pvt. Ltd

Purva Corporation

Purva Marine Properties Pvt. Ltd

Purva Realities Pvt. Ltd.

Welworth Lanka Holding Pvt. Ltd

Welworth Lanka Pvt. Ltd.

Nile Developers Pvt. Ltd

Vaigai Developers Pvt. Ltd

Grand Hills Developments Pvt. Ltd. (formerly known as Purva Opel Properties Pvt. Ltd.)

Purva Star Properties Pvt. Ltd

Purva Sapphire Land Pvt. Ltd

Purva Ruby Properties Pvt. Ltd

Puravankara Hotels Ltd

Starworth Infrastructure and Construction Ltd

Provident Housing Ltd

Purva Land Ltd

Purva Good Earth Properties Pvt. Ltd

Puravankara (UK) Ltd.

(ii) Parties where control exists

Mr. Ravi Puravankara

(iii) Key management personnel

Mr. Ravi Puravankara

(iv) Relatives of key management personnel:

Ms. Geeta S Vhatkar Mr. Ashish Puravankara Ms. Amanda Puravankara

(v) Entities controlled by key management personnel (other related parties):

Purva Developments

Puravankara Investments

Handiman Services Ltd

Dealwel - Proprietorship

Tanya Trust

Amanda Trust

Purva Properties and Resorts Pvt. Ltd

Dealwel Estates Pvt. Ltd.

(vi) Associate companies

Keppel Puravankara Development Pvt. Ltd Keppel Magus Development Pvt. Ltd Sobha Puravankara Aviation Pvt. Ltd

3. Employee benefits

A. Defined benefit plan

The Company has gratuity and vacation pay as defined benefit retirement plans for its employees. As at 31 March 2013 and 31 March 2012 the plan assets were invested in insurer managed funds

B. Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. This is a defined contribution plan as per AS 15. Contribution made was Rs.19.33 for the year ended 31 March 2013 (31 March 2012 - Rs.9.09).

4. Segmental information

The Company is engaged in the development and construction of residential and commercial properties which is considered to be the only reportable business segment as per Accounting Standard 17 on Segment Reporting. The Company operates primarily in India and there is no other significant geographical segment

5. Disclosures of dues to micro, small and medium enterprises

Based on the information available with the Company, T27.08 (31 March 2012 - Rs.8.80) is the amount payable to micro, small and medium enterprises at the balance sheet date. These amounts, being retention money, are due only on completion of retention period and are contractually not due as on 31 March 2013 as per the contract with the said parties. Consequently, the management believes that the nterest liability under "The Micro, Small and Medium Enterprises Development Act, 2006" does notarise and hence no disclosure is required under the said law.

The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company which has been relied upon by the auditors

6. Unhedged foreign currency exposure

Balance as on 31 March 2013 in Hatton National Bank, Srilanka amounted to LKR 1.13 million (31 March 2012- LKR 0.11 million)

Balance as on 31 March 2013 in HSBC, Dubai amounted to AED 0.16 million (31 March 2012 - AED 0.09 million)

Balance as on 31 March 2013 in EEFC account with Andhra Bank Bangalore amounted to nil (31 March 2012- USD 0.0003 million)

7. Transfer Pricing

The Finance Act, 2012 has made the detailed Transfer Pricing regulations applicable to ''specific domestic transactions''. Accordingly, the income and/or expenditure arising from such ''specific domestic transactions'' have to be computed having regard to the arm''s length price. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant within the due date of filing the return of income.

The Company has undertaken necessary steps to comply with the Transfer Pricing regulations and the prescribed report from the Accountant will be obtained for the year ended 31 March 2013. The Management is of the opinion that the above referred 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

8. Prior period comparatives

Prior period comparatives have been regrouped/reclassified wherever necessary to conform to the presentation in the current year.


Mar 31, 2012

1. Related party transactions

(i) Parties where control exists

Parties where control exists include: Subsidiaries:

Prudential Housing and Infrastructure Development Limited

Centurions Housing and Constructions Private Limited

Melmont Construction Private Limited

Purva Corporation

Purva Marine Properties Private Limited

Purva Realities Private Limited

Welworth Lanka Holding Private Limited

Welworth Lanka Private Limited

Nile Developers Private Limited

Vaigai Developers Private Limited

Purva Good Earth Properties Private Limited

Purva Star Properties Private Limited

Purva Sapphire Land Private Limited

Purva Ruby Properties Private Limited

Purva Opel Properties Private Limited

Puravankara Hotels Limited

Starworth Infrastructure and Construction Limited

Provident Housing Limited

Purva Land Limited

Key management personnel:

Mr. Ravi Puravankara

(ii) Relative of key management personnel:

Ms. Geeta S. Vhatkar Ms. Aarti Panjabi Mr. Ashish Puravankara Mr. Suresh Puravankara Ms. Amanda Puravankara Ms. Tanya Puravankara Ms. Vishalakshi Puravankara

(iii) Entities controlled by key management personnel (other related parties):

Purva Developments

Uniquepark Constructions Private Limited

Unique Constructions

Welworth

Puravankara Investments

Handiman Services Limited

Dealwel - Proprietorship

Dealwel Finance Corporation

Tanya Trust

Amanda Trust

Purva Properties and Resorts Private Limited

Dealwel Estates Private Limited

2. Employee benefits

A. Defined benefit plan

The Company has gratuity and vacation pay as defined benefit retirement plans for its employees. As at 31 March 2012 and 31 March 2011 the plan assets were invested in insurer managed funds.

B. Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees Provident Funds and Miscellaneous Provisions Act, 1952.

This is a defined contribution plan as per AS15. Contribution made was Rs. 90.89 for the year ended 31 March 2012 (31 Mar 2011 -Rs. 71.57).

3. Segmental information

The Company is engaged in the development and construction of residential and commercial properties which is considered to be the only reportable business segment as per Accounting Standard 17 on Segment Reporting. The Company operates primarily in India and there is no other significant geographical segment.

4. Disclosures of dues to micro, small and medium enterprises

Based on the information available with thecompany,Rs.88.04(31 March 2011 Rs.0.74)is the amount payable to Micro, Small and Medium Enterprises at the Balance Sheet date. These amounts, being retention money, are due only on completion of retention period and are contractually not due as on 31 March 2012 as per the contract with the said parties. Consequently the management feels that the interest liability under'The Micro, Small and Medium Enterprises Development Act, 2006"does not arise and hence no disclosure is required under the said law.

The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company which has been relied upon by the auditors.

5. Unhedged foreign currency exposure

Balance as on 31 March 2012 in Hatton National Bank, Sri Lanka amounted to LKR 1.10 lakh (31 March 2011 LKR 0.76 lakh) Balance as on 31 March 2012 in HSBC, Dubai amounted to AED 0.90 lakh (31 March 2011 AED 0.37 lakh) Balance as on 31 March 2012 in EEFC account with Andhra Bank Bangalore amounted to USD 0.003 lakh (31 March 2011 USD 0.003 lakh)

6. Prior Year Comparatives

The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.


Mar 31, 2011

1 Stock-based Compensation On 1 July 2006, the members of the Company approved the Puravankara Projects Limited 2006 Employee Stock Option Scheme CESOS' or 'the Plan') of the Company. The plan provides for the issuance of stock options to eligible employees (including Directors of the Company) with the total options issuable under the Plan not to exceed 1,366,080 options and includes a limit for the maximum and minimum number of options that may be granted to each employee. Under the plan, these options vest over a period of four years and can be exercised for a period of one year from vesting.

The weighted average exercise price of the options outstanding at 31 March 2011 was Rs465.86 and they had weighted average remaining contractual life of 9 months.

2 Leases

Properties taken on operating lease

3 Other commitments and contingencies

The Company has claimed deduction under section 80 IB of the Income tax act, 1961 on two projects based out at Kochi. The time limit specified by the cited section above for completing the two projects was 31 March 2011. However, the Company was not able to complete the same within the prescribed time limit primarily on account of court stay in one of the projects and poor state of reclamation of the land in the other. Based on the legal opinion obtained on the above, the management believe that the deduction under the cited section above will not be denied.

The Company is also involved in certain litigation for lands acquired by it for construction purposes, either through a Joint Development Agreement or through outright purchases. These cases are pending with the Civil Courts and scheduled for hearings shortly. After considering the circumstances and legal advice received, management believes that these cases will not adversely effect its financial statements.

4 Related party transactions (i) Parties where control exists

Parties where control exists include: Subsidiaries:

Prudential Housing and Infrastructure Development Limited

Centurions Housing and Constructions Private Limited

Melmont Construction Private Limited

Purva Corporation

Purva Marine Properties Private Limited

Purva Realities Private Limited

Puravankara Lanka Holding Private Limited

Puravankara Projects Lanka Private Limited

Nile Developers Private Limited

Vaigai Developers Private Limited

Purva Good Earth Properties Private Limited

Purva Star Properties Private Limited

Purva Sapphire Land Private Limited

Purva Ruby Properties Private Limited

Purva Opel Properties Private Limited

Puravankara Hotels Limited

Starworth Infrastructure & Construction Limited

Provident Housing Limited

Purva Land Limited

Key Management Personnel:

Mr. Ravi Puravankara

(ii) Relative of Key Management Personnel:

Ms. Geeta S. Vhatkar

Ms. Aarti Panjabi

Mr. Ashish Puravankara

Mr. Suresh Puravankara

Ms. Amanda Puravankara

Ms. Tanya Puravankara

Ms. Vishalakshi Puravankara

(iii) Entities controlled by Key Management Personnel (Other Related Parties):

Purva Developments

Unique park Constructions Private Limited

Unique Constructions

Welworth

Puravankara Investments

Handiman Services Limited

Dealwel - Proprietorship

Dealwel Finance Corporation

Tanya Trust

Amanda Trust

Purva Properties and Resorts Private Limited

Deal wel Estates Private Limited

5 Employee benefits

A. Defined benefit plan

The Company has gratuity and vacation pay as defined benefit retirement plans for its employees. As at 31 March 2011 and 31 March 2010 the plan assets were invested in insurer managed funds.

B. Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees Provident Funds and Miscellaneous Provisions Act, 1952. This is a defined contribution plan as per AS 15. Contribution made was Rs7,156,521 for the year ended 31 March 2011 (31 Mar 2010- Rs7,286,356).

6 Segmental Information

The Company is engaged in the development and construction of residential and commercial properties which is considered to be the only reportable business segment as per Accounting Standard 17 on Segment Reporting. The Company operates primarily in India and there is no other significant geographical segment.

7 Additional disclosures under Schedule VI

The Company is not a manufacturing Company and hence the quantitative details required under Para 3, 4C and 4D of Part II of Schedule VI of the Companies Act are not applicable and have not been provided.

8 Disclosures of dues to micro, small and medium enterprises

Based on the information available with the company, Rs73,715/- is the amount payable to Small and Medium Enterprises at the balance sheet date. These amounts, being retention money, are due only on completion of retention period and are contractually not due as on 31 March 2011 as per the contract with the said parties. Consequently the management feels that the interest liability under MSME Act does not arise and hence no disclosure is required under the said law.

The above information and that in Schedule number 15 has

been determined to the extent such parties have been identified on the basis of information provided by the company which has been relied upon by the auditors.

9 Unhedged foreign currency exposure

Balance as on 31 March 2011 in Hatton National Bank, Srilanka amounted to SLR 76,574 (31 March 2010 SLR 8,461,405)

Balance as on 31 March 2011 in HSBC, Dubai amounted to AED 37,958 (31 March 2010 AED 35,019)

Balance as on 31 March 2011 in EEFC account with Andhra Bank Bengaluru amounted to USD 288 (31 March 2010 USD 288)

10 Prior year comparatives

Prior year comparatives have been regrouped/reclassified wherever necessary to conform to the presentation in the current year


Mar 31, 2010

1. Stock-based compensation

On 1 July 2006, the members of the Company approved the Puravankara Projects Limited 2006 Employee Stock Option Scheme (‘ESOS’ or ‘the Plan’) of the Company. The plan provides for the issuance of stock options to eligible employees (including directors of the Company) with the total options issuable under the Plan not to exceed 1,366,080 options and includes a limit for the maximum and minimum number of options that may be granted to each employee. Under the plan, these options vest over a period of four years and can be exercised for a period of one year from vesting.

2. Related party transactions

(i) Parties where control exists

Parties where control exists include:

Subsidiaries:

Prudential Housing and Infrastructure Development Limited

Centurions Housing and Constructions Private Limited

Melmont Construction Private Limited

Purva Corporation

Purva Marine Properties Private Limited

Purva Realities Private Limited

Puravankara Lanka Holding Private Limited

Puravankara Projects Lanka Private Limited

Nile Developers Private Limited

Vaigai Developers Private Limited

Purva Good Earth Properties Private Limited

Purva Star Properties Private Limited

Purva Sapphire Land Private Limited

Purva Ruby Properties Private Limited

Purva Opel Properties Private Limited

Puravankara Hotels Limited

Starworth Infrastructure & Construction Limited

Provident Housing Limited

Purva Land Limited

Key Management Personnel:

Mr. Ravi Puravankara

(ii) Relative of Key Management Personnel:

Ms. Geeta S. Vhatkar Ms. Aarti Panjabi Mr. Ashish Puravankara Mr. Suresh Puravankara Ms. Amanda Puravankara Ms. Tanya Puravankara Ms. Vishalakshi Puravankara

(iii) Entities controlled by Key Management Personnel (Other Related Parties):

Purva Developments

Uniquepark Constructions Private Limited

Unique Constructions

Welworth

Puravankara Investments

Handiman Services Limited

Dealwel – Proprietorship

Dealwel Finance Corporation

Tanya Trust

Amanda Trust

Purva Properties and Resorts Private Limited

3. Employee benefts

A. Defned contribution plan

The Company makes contribution of statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act, 1952. This is a defned contribution plan as per AS 15. Contribution made was Rs.7,286,356 for the year ended 31 March 2010 (31 March 2009 - Rs.10,800,883).

4. Segmental Information

The Company is engaged in the development and construction of residential and commercial properties which is considered to be the only reportable business segment as per Accounting Standard 17 on Segment Reporting. The Company operates primarily in India and there is no other significant geographical segment.

5. Additional disclosures under Schedule VI

The Company is not a manufacturing Company and hence the quantitative details required under Para 3, 4C and 4D of Part II of Schedule VI of the Companies Act are not applicable and have not been provided.

6. Revenues from Projects for the year ended 31 March 2010 includes Rs.454,982,183 from transfer of land developmental rights to the Company’s subsidiary and Rs.1,632,153,150 from sale of land.

7. Prior year comparatives

Prior year comparatives have been regrouped/reclassifed wherever necessary to conform to the presentation in the current year.

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