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Notes to Accounts of Puravankara Ltd.

Mar 31, 2017

1. Deemed carrying cost

For property, plant and equipment existing as on the date of transition to Ind AS, i.e., 01 April 2015, the Company has used previous GAAP carrying value as deemed costs.

2. Contractual obligations

There are no contractual commitments pending for the acquisition of property, plant and equipment as at balance sheet date.

3. Capitalized borrowing cost

There are no borrowing costs capitalized during the year ended 31 March 2017 and 31 March 2016.

4. Property, plant and equipment pledged as security

Details of properties pledged are as per note no.34

5. Deemed carrying cost

For investment property existing as on the date of transition to Ind AS, i.e., 01 April 2015, the Company has used previous GAAP carrying value as deemed costs.

6. The fair valuations are based on valuations performed by CBRE South Asia Private Limited, an accredited independent valuer. They are specialists in valuing these types of investment properties and have used a valuation model in accordance with that recommended by the International Valuation Standards Committee.

Under the DCF method, fair value is estimated using assumptions regarding the benefits and liabilities of ownership over the assets life including an exit or terminal value. This method involves the projection of a series of cash flows on a real property interest. To project the cash flow series, a market-derived discount rate is applied to establish the present value of the income stream associated with the asset. The exit yield is normally separately determined and differs from the discount rate.

The duration of the cash flows and the specific timing of inflows and outflows are determined by events such as rent reviews, lease renewal and related sub-leasing, redevelopment, or refurbishment. The appropriate duration is typically driven by market behavior that is a characteristic of the class of real property. Periodic cash flow is typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives, maintenance cost, agent and commission costs and other operating and management expenses. The series of periodic net operating income, along with an estimate of the terminal value anticipated at the end of the projection period, is then discounted.

Significant increases/ (decreases) in estimated rental value and rent growth per annum in isolation would result in a significantly higher/ (lower) fair value of the properties. Significant increases/ (decreases) in long-term vacancy rate and discount rate (and exit yield) in isolation would result in a significantly lower (higher) fair value. Generally, a change in the assumption made for the estimated rental value is accompanied by:

- A directionally similar change in the rent growth per annum and discount rate (and exit yield)

- An opposite change in the long term vacancy rate.

7. Contractual obligations

There are no contractual commitments pending for the acquisition of investment properties as at balance sheet date.

8. Capitalized borrowing cost

There are no borrowing costs capitalized during the year ended 31 March 2017 and 31 March 2016.

9. Investment properties pledged as security

Details of investment properties pledged are as per note 34

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 year ended 31 March 2015, the Company received favorable 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 had recorded a net credit amounting H27.02 in the financial statements in respect of the eligible claim under Section 80-IB.

Further, during the year ended 31 March 2015, the Company has received an order for fiscal 2005 and 2006 towards penalty amounting to H2.54 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 effect on the financial statements.

During the year ended 31 March 2017, the Company was subjected to proceedings under section 132 of the Income Tax Act, 1961. The Company has made necessary submissions as required under section 132 of the Income Tax Act. The Company did not record additional tax charge since the management is of the view that the final outcome of the disputes should be in favor of the Company and/or the disallowances are mainly on account of temporary differences pending final assessment, no adjustments have been recorded in the financial results for the year ended 31 March 2017.

Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

Deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences and tax loss carry forward can be utilized.

Deferred tax arising on all the items has been recognized in the statement of profit and loss except for deferred tax arising on account of provision for employee benefits, a part of which has been recognized in other comprehensive income on account of actuarial gains and losses.

10. 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 2017.

11. 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 2017, there are no options outstanding under the above plan.

Disclosures of dues to Micro, Small and Medium enterprises

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.

12. During the year ended 31 March 2015, the Company had entered into a sale deed and agreement to sell undivided share (UDS) of its property under development aggregating to 50 percent of the said property for a cash consideration of H320.81. Of the total consideration, H155.81 was received for the 25 percent portion of the land and accordingly recorded as revenue during quarter ended 30 June 2014. The balance consideration amounting to H165 towards the remaining 25 percent was contingent on receiving plan sanction and accordingly it was deferred.

During the year ended 31 March 2017, the above contingency has been resolved and the Company has entered into a supplemental agreement to sale on 26 September 2016 transferring the UDS for a deferred consideration of Rs.165. Consequent to above, the Company has recorded the fair value of Rs.151.59 as revenue for the sale of UDS of its property under development..

13. During the year ended 31 March 2016, the Company had sold a land parcel (included within property under development) located in Bangalore for a cash consideration of Rs.140.00.

Notes to financial instruments

14. The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other financial assets, trade payables and other financial liabilities approximate the carrying amount largely due to short-term maturity of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The Company has measured investments in subsidiaries, associates and joint ventures at the deemed cost. The Company has considered the carrying amount under previous GAAP as the deemed cost.

15. Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data rely as little as possible on entity specific estimates.

Level 3: Inputs for the assets or liabilities that are not based on the observable marked data (unobservable inputs).

Measurement of fair value of financial instruments

The fair value measurement is not applicable since there are no financial assets and liabilities measured at fair value.

16. Credit risk

Credit risk arises from cash and cash equivalents, trade receivables, investments carried at amortized cost and deposits with banks and financial institutions.

Credit risk management

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an on-going basis throughout each reporting period. In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 30 days past due. A default on a financial asset is when the counterparty fails to make contractual payments when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

Expected credit loss for trade receivables under simplified approach

Trade receivables are secured in a form that registry of sold residential/commercial units is not processed till the time the Company does not receive the entire payment. Hence, as the Company does not have significant credit risk, it does not present the information related to ageing pattern. The Company has widespread customer base and no single customer accounted for 10% or more of revenue in any of the years indicated.

During the periods presented, the Company made no write-offs of trade receivables and it does not expect to receive future cash flows or recoveries from collection of cash flows previously written off.

17. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The Company''s objectives when managing capital are to:

Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The company monitors its capital using gearing ratio, which is net debt divided by total equity. Net debt includes long term borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank balances.

18. Subsidiaries

Prudential Housing and Infrastructure Development Limited Centurions Housing and Constructions Private Limited Melmont Construction Private Limited Purva Corporation

Purva Marine Properties Private Limited (until 27 March 2017)

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 (until 27 March 2017)

Starworth Infrastructure and Construction Limited

Provident Housing Limited

Jaganmata Property Developers Private Limited

Jyothishmati Business Centers Private Limited

Vagishwari Land Developers Private Limited

Varishtha Property Developers Private Limited

Purva Pine Private Limited

Purva Oak Private Limited

Purva Land Limited (until 27 March 2017)

Puravankara (UK) Limited (until 01 October 2016)

Purva Good Earth Properties Private Limited (until 06 April 2015)

19 Parties where control exists

Mr. Ravi Puravankara

20. Key management personnel

Mr. Ravi Puravankara Mr. Ashish Puravankara Mr. Nani R Choksey

21. Relatives of key management personnel

Ms. Geeta S Vhatkar

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

Purva Developments Puravankara Investments Handiman Services Limited Dealwel - Proprietorship

23. Associate companies

Keppel Puravankara Development Private Limited

Propmart Technologies Limited

Sobha Puravankara Aviation Private Limited

24. Joint venture

Pune Projects LLP

25. Other related party

Purva Good Earth Properties Private Limited

26.. Defined benefit plan

The Company has gratuity and vacation pay as defined benefit retirement plans for its employees. The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity at the rate of 15 days basic salary for each year of service until the retirement age. As at 31 March 2017 and 31 March 2016 the plan assets were invested in insurer managed funds.

27.. 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 and contribution made was H1.99 for the year ended 31 March 2017 (31 March 2016- H2.70).

28. Sensitivity Analysis Description of Risk Exposures

Valuations are performed on certain basic set of pre-determined assumptions which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of liability (as shown in financial statements). Liquidity Risk: This is the risk that the Company is not able to meet the short term benefit payouts. This may arise due to non availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk: The present value of the above benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic Risk: The company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (for example, increase in the maximum liability on gratuity of INR 10,00,000).

Asset Liability Mismatching or Market Risk: the duration of the liability is longer compared to duration of assets exposing the company to market risks for volatilities/fall in interest rate.

Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

29. Effect of Plan on Entity''s Future Cash Flows

30. Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company

For details of loans, advances and guarantees given and securities provided to related parties refer note 43.

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 Ind AS 108, ''Segment Reporting. The Company operates primarily in India and there is no other significant geographical segment. The Company has widespread customer base and no single customer accounted for 10% or more of revenue in any of the years indicated and hence the Company does not have any concentration risk.

No adjusting or significant non-adjusting events have occurred between 31 March 2017 and the date of authorization of these standalone financial statements.

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2017, the comparative information presented in these financial statements for the year ended 31 March 2016 and in the preparation of an opening Ind AS balance sheet at 1 April 2015 (the Company''s date of transition).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A Ind AS optional exemptions

Ind-AS 101, ''First-time Adoption of Indian Accounting Standards, allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind-AS. The Company has accordingly applied the following exemptions.

32. Deemed cost for property, plant and equipment, investment properties and intangible assets

Ind AS 101 ''First-time Adoption of Indian Accounting Standards'' permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets and investment properties covered by Ind AS 38, ''Intangible Assets'' and Ind AS 40, ''Investment Property'', respectively. Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.

33. Leases

Appendix C to Ind AS 17, ''Leases'' requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, ''Leases'' this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 ''First-time Adoption of Indian Accounting Standards'' provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The Company has elected to apply this exemption for such contracts/arrangements.

34. Investment in subsidiaries, associates and joint ventures

Ind AS 101, ''First-time Adoption of Indian Accounting Standards'' allows a Company to measure investments in subsidiaries, associates and joint ventures at the deemed cost. The Company has considered the carrying amount under previous GAAP as the deemed cost.

35. Ind AS mandatory exemptions

36. Estimates

An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 31 March 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP except as disclosed in note 10 of first time adoption.

37. Classification and measurement of financial assets and liabilities

The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109, ''Financial Instruments'' are met based on facts and circumstances existing at the date of transition.

Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money i.e. the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.

Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:

38. The effects of the retrospective application or retrospective restatement are not determinable;

39. The retrospective application or restatement requires assumptions about what management''s intent would have been in that period;

The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.

40. De-recognition of financial assets and liabilities

Ind AS 101, ''First-time Adoption of Indian Accounting Standards'' requires a first-time adopter to apply the de-recognition provisions of Ind AS 109,''Financial Instruments'' prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101, ''First-time Adoption of Indian Accounting Standards'' allows a first-time adopter to apply the de-recognition requirements in Ind AS 109,''Financial Instruments'' retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109,''Financial Instruments'' to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109,''Financial Instruments'' prospectively from the date of transition to Ind AS.

41. Reconciliations between previous GAAP and Ind AS

Ind AS 101, ''First-time Adoption of Indian Accounting Standards'' requires an entity to reconcile equity, total comprehensive income and cash flows for prior years/periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

42. Investment properties

Under the previous GAAP, investment properties were presented as part of fixed assets or properties held for development. Under Ind AS, investment properties are required to be separately presented on the face of the balance sheet. There is no impact on the total equity or profit as a result of this adjustment.

43 Financial guarantee

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified subsidiary fails to make a payment when due in accordance with the terms of a debt instrument. Under previous GAAP, there was no requirement to account for financial guarantees given by the Company. Under Ind AS, financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109, ''Financial Instruments'' and the amount recognized less cumulative amortization.

44 Borrowings

Ind AS 109, ''Financial Instruments'' requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit or loss or inventorized as a part of project under development, as the case may be over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. Under previous GAAP, these transaction costs were charged to profit or loss or inventorized as a part of project under development as and when incurred. Accordingly, borrowings as at 01 April 2015 and 31 March 2016 have been reduced with a corresponding adjustment to retained earnings.

45 Security deposits

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) were recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has recognized these security deposits at fair value and subsequently measured them at amortized cost. Difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent which would be amortized over a straight line basis over the period of the deposit.

Under the previous GAAP, interest free security deposits towards joint development (that are refundable in cash on completion of the construction) were recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value and subsequently measured them at amortized cost. Accordingly, the Company has measured these security deposits at fair value. Difference between the fair value and transaction value of the security deposit has been recognized as land cost.

46 Other payable

Under previous GAAP, dividends proposed by the board of directors after balance sheet date but before the approval of the financial statements were considered as adjusting events. However, under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting.

Accordingly, the liability for proposed dividend recognized as on transition date has been reversed with corresponding adjustment to opening retained earnings and dividend in the subsequent period has been recognized in the year of approval in the general meeting.

47 Operating leases

Under the previous GAAP, operating lease payments were recognized as an expense in the statement of profit and loss on a straight-line basis. Under Ind AS, operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term except where scheduled increase in rent compensates the Company with expected inflationary costs. Accordingly the lease equalization reserve has been written back with a corresponding adjustment to retained earnings.

48 Revenue

a. Under the previous GAAP, in accordance with the “Guidance Note on Accounting for Real Estate Transactions (Revised 2012)" construction revenue for projects commenced on or after 01 April 2012 or where revenue was recognized for the first time after the aforesaid date, was recognized on percentage of completion method provided the following thresholds have been met:

49. all critical approvals necessary for the commencement have been obtained;

50. the expenditure incurred on construction and development costs is not less than 25 percent of the total estimated construction and development costs;

51. at least 25 percent of the saleable project area is secured by agreements with buyers; and

52. at least 10 percent of the agreements are realized at the reporting date in respect of such contracts

Under Ind AS, in accordance with the "Guidance Note on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable)" construction revenue is recognized for all the projects whether commenced before or after 01 April 2012, provided the thresholds mentioned above have been met. Accordingly, revenue and properties under development for the period ended 31 March 2016 have been adjusted with a corresponding adjustment to retained earnings.

53. Joint development arrangements

Under the previous GAAP, for projects executed through joint development arrangements prior to 01 April 2012, which represent barter transactions, whereby the Company gives up a defined percentage of constructed area in lieu of payment for its share in the land, the Company accounted for such transactions on net basis and did not ascribe any value to the share of land acquired on such basis. Effective 01 April 2012, in accordance with the Guidance Note, developmental rights acquired through joint development arrangement are recorded on a gross basis on the estimated amount to be spent on development or construction of built-up area to be surrendered in lieu of the above rights.

Under Ind AS, the Company accounts for such developmental rights on gross basis for all the projects retrospectively. Accordingly, land cost has been recognized with a corresponding impact to other current liabilities, revenue and properties under development for the period ended 31 March 2016 has been adjusted with a corresponding adjustment to other current liabilities.

54. Borrowing costs

The Company has capitalized its borrowing cost including its processing fees in accordance with the previous GAAP, the adjustment to the same as per note 4 has resulted in a change of percentage of completion and accordingly, revenue for the period ended 31 March 2016 has been adjusted with corresponding adjustments to properties under development and retained earnings.

55. Security deposits

The Company has capitalized the interest income arising from security deposits as mentioned in note 5, which has resulted in a change of percentage of completion and accordingly, revenue for the period ended 31 March 2016 has been adjusted with corresponding adjustments to properties under development and retained earnings.

56. Defined benefit liabilities

Both under Previous GAAP and Ind AS, the Group recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Previous GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, re-measurements comprising of actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus the employee benefit cost is reduced by such amount with a corresponding adjustment on defined benefit plans has been recognized in the OCI net of tax.

57 Change in accounting estimate

Until the year ended 31 March 2016, the Company was recording the lease expenses in respect of an operating lease of an aircraft based on actual consumption/ usage of hours committed under the take or pay lease agreement. During the year ended 31 March 2017, the lease expense in respect of the aforesaid take-or-pay agreement have been accounted on a straight-lined basis over the lease term in accordance with the Ind-AS 17, ''Leases.

58 Deferred tax

Under previous GAAP, deferred tax was accounted using the income statement approach, on the timing differences between the taxable profit and accounting profits for the period. Under IND AS, deferred tax is recognized following balance sheet approach on the temporary differences between the carrying amount of asset or liability in the balance sheet and its tax base. In addition, various transitional adjustments has also lead to recognition of deferred taxes on new temporary differences.

59 Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes re-measurements of defined benefit plans, foreign exchange differences arising on translation of foreign operations, effective portion of gains and losses on cash flow hedging instruments and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

60 Property held for development (PHD)

Under the previous GAAP, PHD which represents land acquired for future development and construction was shown as a separate head under non-current assets. Under Ind AS, PHD to the extent which is not an investment property is included as inventory as it will be used for development and sale of residential and commercial units.

61 Retained earnings

Retained earnings as at 01 April 2015 and 31 March 2016 has been adjusted consequent to the above Ind AS transition adjustments.


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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