Puravankara Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

(p) Provisions and contingent liabilities

A provision is recognized when the Company has a
present obligation (legal or constructive) as a result of
past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. If the effect of the time

value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due
to the passage of time is recognized as a finance cost.

A contingent liability is a possible obligation that
arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly
within the control of the Company or a present
obligation that is not recognized because it is not
probable that an outflow of resources will be required
to settle the obligation. A contingent liability also
arises in extremely rare cases where there is a liability
that cannot be recognized because it cannot be
measured reliably. The Company does not recognize
a contingent liability but discloses it in the financial
statements, unless the possibility of an outflow of
resources embodying economic benefits is remote.

If the Company has a contract that is onerous, the
present obligation under the contract is recognised
and measured as a provision. However, before
a separate provision for an onerous contract is
established, the Company recognises any impairment
loss that has occurred on assets dedicated to that
contract.

(q) Financial Instruments

Financial assets and liabilities are recognized when the
Company becomes a party to the contractual provisions
of the instrument. Financial assets and liabilities are
initially measured at fair value at initial recognition.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial
liabilities are added to or deducted from the fair value
measured on initial recognition of financial asset or
financial liability, except for transaction costs directly
attributable to the acquisition of financial assets and
liabilities at fair value through profit or loss which are
immediately recognized in statement of profit and
loss. However, trade receivables that do not contain
a significant financing component are measured at
transaction price.

i. Financial assets at fair value through other
comprehensive income

Financial assets are measured at fair value through
other comprehensive income if these financial
assets are held within a business whose objective
is achieved by both collecting contractual
cash flows and selling financial assets and the

contractual terms of the financial asset give rise
on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

ii. Financial assets at fair value through profit or loss

Financial assets are measured at fair value through
profit or loss unless it is measured at amortized
cost or at fair value through other comprehensive
income on initial recognition.

iii. Debt instruments at amortized cost

A ''debt instrument'' is measured at the amortized
cost if both the following conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

After initial measurement, such financial assets
are subsequently measured at amortized cost
using the effective interest rate (EIR) method.
Amortized cost is calculated by taking into account
any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR
amortization is included in finance income in the
profit or loss. The losses arising from impairment
are recognized in the profit or loss. This category
generally applies to trade and other receivables.

iv. Investment in subsidiaries, joint ventures and
associates

Investment in subsidiaries, joint ventures and
associates are carried at cost. Impairment
recognized, if any, is reduced from the carrying
value.

v. De-recognition of financial asset

The Company derecognizes a financial asset when
the contractual rights to the cash flows from the
financial asset expire or it transfers the financial
asset and the transfer qualifies for de-recognition
under Ind AS 109.

vi. Financial liabilities

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, or as
payables, as appropriate. The Company''s financial

liabilities include trade and other payables, loans
and borrowings including bank overdrafts. The
subsequent measurement of financial liabilities
depends on their classification, which is described
below.

vii. Financial liabilities at fair value through profit or
loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss. Financial liabilities are classified as held
for trading if they are incurred for the purpose of
repurchasing in the near term.

viii. Financial liabilities at amortized cost

Financial liabilities are subsequently measured
at amortized cost using the effective interest
(''EIR'') method. Gains and losses are recognized in
profit or loss when the liabilities are derecognized
as well as through the EIR amortization process.
Amortized cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The
EIR amortization is included as finance costs in
the statement of profit and loss.

ix. De-recognition of financial liability

A financial liability is derecognized when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same lender
on substantially different terms, or the terms of
an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognized in the
statement of profit or loss.

x. Fair value of financial instruments

In determining the fair value of its financial
instruments, the Company uses following
hierarchy and assumptions that are based on
market conditions and risks existing at each
reporting date.

Fair value hierarchy:

All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorized within the fair value hierarchy,

described as follows, based on the lowest level input
that is significant to the fair value measurement as a
whole:

O Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

O Level 2 - Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable

O Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable

For assets and liabilities that are recognized in
the financial statements on a recurring basis,
the Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.

(r) Cash dividend to equity holders of the Company

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

(s) Earnings Per Share

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an equity
share to the extent that they are entitled to participate
in dividends relative to a fully paid equity share during
the reporting period. The weighted average number
of equity shares outstanding during the period is
adjusted for events such as bonus issue that have
changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares.

(t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet

comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or
less, that are readily convertible to a known amount
of cash and subject to an insignificant risk of changes
in value. For the purpose of the Company''s statement
of cash flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above, net
of outstanding cash credit/bank overdrafts as they
are considered an integral part of the Company''s cash
management.

(u) Events after the reporting period

If the Company receives information after the
reporting period, but prior to the date of approved for
issue, about conditions that existed at the end of the
reporting period, it will assess whether the information
affects the amounts that it recognises in its financial
statements. The Company will adjust the amounts
recognised in its financial statements to reflect any
adjusting events after the reporting period and update
the disclosures that relate to those conditions in light
of the new information. For non-adjusting events after
the reporting period, the Company will not change the
amounts recognised in its financial statements but
will disclose the nature of the non-adjusting event and
an estimate of its financial effect, or a statement that
such an estimate cannot be made, if applicable.

2.3 Significant accounting judgments, estimates and
assumptions

The preparation of financial statements requires
management to make judgments, estimates and
assumptions that affect the reported balances of revenues,
expenses, assets and liabilities and the accompanying
disclosures, and the disclosure of contingent liabilities.
Uncertainty about these judgments, assumptions and
estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities
affected in future periods.

In the process of applying the Company''s accounting
policies, management makes judgement, estimates and
assumptions which have the most significant effect on
the amounts recognized in the financial statements.

The key judgements, estimates and assumptions
concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant
risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial
year, are described below. The Company based its
judgements, assumptions and estimates on parameters
available when the financial statements were prepared.

Existing circumstances and assumptions about future
developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in the
assumptions when they occur.

i) Revenue from contracts with customers

The Company applied the following judgements that
significantly affect the determination of the amount
and timing of revenue from contracts with customers:

a) Identification of performance obligation

Revenue consists of sale of undivided share
of land and constructed area to the customer,
which have been identified by the Company as
a single performance obligation, as they are
highly interrelated/ interdependent. In assessing
whether performance obligations relating to
sale of undivided share of land and constructed
area are highly interrelated/ interdependent, the
Company considers factors such as:

O whether the customer could benefit from the
undivided share of land or the constructed area
on its own or together with other resources
readily available to the customer.

O whether the entity will be able to fulfil its
promise under the contract, to transfer the
undivided share of land without transfer of
constructed area or transfer the constructed
area without transfer of undivided share of
land.

b) Timing of satisfaction of performance obligation

Revenue from sale of real estate units is
recognised when (or as) control of such units is
transferred to the customer. The entity assesses
timing of transfer of control of such units to the
customers as transferred over time if one of the
following criteria are met:

O The customer simultaneously receives and
consumes the benefits provided by the entity''s
performance as the entity performs.

O The entity''s performance creates or enhances
an asset that the customer controls as the
asset is created or enhanced.

O The entity''s performance does not create an
asset with an alternative use to the entity and
the entity has an enforceable right to payment
for performance completed to date.

If control is not transferred over time as above, the
entity considers the same as transferred at a point
in time.

For contracts where control is transferred at a
point in time the Company considers the following
indicators of the transfer of control of the asset to
the customer:

O When the entity obtains a present right to
payment for the asset.

O When the entity transfers legal title of the
asset to the customer.

O When the entity transfers physical possession
of the asset to the customer.

O When the entity transfers significant risks
and rewards of ownership of the asset to the
customer.

O When the customer has accepted the asset.

The aforesaid indicators of transfer of control are
also considered for determination of the timing of
derecognition of investment property.

c) Accounting for revenue and land cost for
projects executed through joint development
arrangements (''JDA'')

For projects executed through joint development
arrangements, the Company has evaluated that
land owners are not engaged in the same line of
business as the Company and hence has concluded
that such arrangements are contracts with
customers. The revenue from the development
and transfer of constructed area/revenue
sharing arrangement and the corresponding
land/ development rights received under JDA
is measured at the fair value of the estimated
construction service rendered to the land owner
and the same is accounted on launch of the
project. The fair value is estimated with reference
to the terms of the JDA (whether revenue share or
area share) and the related cost that is allocated
to discharge the obligation of the Company
under the JDA. Fair value of the construction is
considered to be the representative fair value
of the revenue transaction and land so obtained.
Such assessment is carried out at the launch of
the real estate project and is not reassessed at
each reporting period. The management is of the
view that the fair value method and estimates are
reflective of the current market condition.

d) Significant financing component

For contracts involving sale of real estate unit,
the Company receives the consideration in
accordance with the terms of the contract in
proportion of the percentage of completion of
such real estate project and represents payments
made by customers to secure performance
obligation of the Company under the contract
enforceable by customers. Such consideration
is received and utilised for specific real estate
projects in accordance with the requirements of
the Real Estate (Regulation and Development) Act,
2016. Consequently, the Company has concluded
that such contracts with customers do not involve
any financing element since the same arises for
reasons explained above, which is other than for
provision of finance to/from the customer.

ii) Classification of property

The Company determines whether a property is
classified as investment property or inventory as
below.

Investment property comprises land and buildings
(principally office and retail properties) that are not
occupied substantially for use by, or in the operations
of, the Company, nor for sale in the ordinary course
of business, but are held primarily to earn rental
income and capital appreciation. These buildings are
substantially rented to tenants and not intended to be
sold in the ordinary course of business.

Inventory comprises property that is held for sale
in the ordinary course of business. Principally, this
is residential and commercial property that the
Company develops and intends to sell before or during
the course of construction or upon completion of
construction.

iii) Estimation of net realizable value for inventory and
land advance

Inventory is stated at the lower of cost and net
realizable value (NRV).

NRV for completed inventory property is assessed by
reference to market conditions and prices existing at
the reporting date and is determined by the Company,
based on comparable transactions identified by the
Company for properties in the same geographical
market serving the same real estate segment.

NRV in respect of inventory property under
construction is assessed with reference to market

prices at the reporting date for similar completed
property, less estimated costs to complete
construction and an estimate of the time value of
money to the date of completion.

With respect to land inventory and land advance given,
the net recoverable value is based on the present value
of future cash flows, which depends on the estimate
of, among other things, the likelihood that a project
will be completed, the expected date of completion,
the discount rate used and the estimation of sale
prices and construction costs.

iv) Impairment of non-financial assets

Impairment exists when the carrying value of an
asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs
of disposal and its value in use. The fair value less
costs of disposal calculation is based on available data
from binding sales transactions, conducted at arm''s
length, for similar assets or observable market prices
less incremental costs for disposing of the asset. The
value in use calculation is based on a DCF model. The
cash flows are derived from the budget for the next five
years and do not include restructuring activities that
the Company is not yet committed to or significant
future investments that will enhance the asset''s
performance of the CGU being tested. The recoverable
amount is sensitive to the discount rate used for the
DCF model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes.
These estimates are most relevant to disclosure of
fair value of investment property recorded by the
Company.

v) Defined benefit plans - Gratuity

The cost of the defined benefit gratuity plan and other
post-employment medical benefits and the present
value of the gratuity obligation are determined using
actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are
reviewed at each reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for
plans operated in India, the management considers
the interest rates of government bonds. The mortality

rate is based on publicly available mortality tables.
Those mortality tables tend to change only at interval
in response to demographic changes. Future salary
increases are based on expected future inflation rates
and expected salary increase thereon.

vi) Measurement of financial instruments at amortized
cost

Financial instrument are subsequently measured
at amortized cost using the effective interest (''EIR'')
method. The computation of amortized cost is
sensitive to the inputs to EIR including effective rate of
interest, contractual cash flows and the expected life
of the financial instrument. Changes in assumptions
about these inputs could affect the reported value of
financial instruments.

vii) Useful life and residual value of property, plant and
equipment, investment property and intangible
assets

The useful life and residual value of property, plant and
equipment, investment property and intangible assets
are determined based on evaluation made by the
management of the expected usage of the asset, the
physical wear and tear and technical or commercial
obsolescence of the asset. Due to the judgements
involved in such estimates the useful life and residual
value are sensitive to the actual usage in future period.

viii) Provision for litigations and contingencies

Provision for litigations and contingencies is
determined based on evaluation made by the
management of the present obligation arising from
past events the settlement of which is expected to
result in outflow of resources embodying economic
benefits, which involves judgements around
estimates the ultimate outcome of such past events
and measurement of the obligation amount. Due to
judgements involved in such estimation the provision
is sensitive to the actual outcome in future periods.

ix) Fair value measurement of financial instruments

When the fair values of financial instruments recorded
in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is
measured using valuation techniques including the
DCF model. The inputs to these models are taken
from observable markets where possible, but where
this is not feasible, a degree of judgement is required
in establishing fair values. The fair valuation requires
management to make certain judgments about the
model inputs, including forecast cash flows, discount

rate, credit risk and volatility. Changes about these
factors could affect the reported fair value of financial
instruments.

2.4 New and amended standards

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1 April 2024. The Company has not
early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the
Ind AS 117, Insurance Contracts, vide notification
dated August 12, 2024, under the Companies (Indian
Accounting Standards) Amendment Rules, 2024,
which is effective from annual reporting periods
beginning on or after April 01, 2024.

Ind AS 117 Insurance Contracts is a comprehensive new
accounting standard for insurance contracts covering
recognition and measurement, presentation and
disclosure. Ind AS 117 replaces Ind AS 104 Insurance
Contracts. Ind AS 117 applies to all types of insurance
contracts, regardless of the type of entities that issue
them as well as to certain guarantees and financial
instruments with discretionary participation features;
a few scope exceptions will apply. Ind AS 117 is based
on a general model, supplemented by:

O A specific adaptation for contracts with direct
participation features (the variable fee approach)

O A simplified approach (the premium allocation
approach) mainly for short-duration contracts

The application of Ind AS 117 does not have material
impact on the Company''s separate financial
statements as the Company has not entered any
contracts in the nature of insurance contracts covered
under Ind AS 117.

(ii) Amendments to Ind AS 116 Leases - Lease Liability in
a Sale and Leaseback

The MCA notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024, which
amend Ind AS 116, Leases, with respect to Lease
Liability in a Sale and Leaseback.

The amendment specifies the requirements that a
seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to ensure
the seller-lessee does not recognise any amount of the
gain or loss that relates to the right of use it retains.

The amendment is effective for annual reporting
periods beginning on or after April 01, 2024 and must
be applied retrospectively to sale and leaseback
transactions entered into after the date of initial
application of Ind AS 116.

The amendments do not have a material impact on the
Company''s financial statements.

b. Fair valuation information

The Company''s investment properties consist of commercial properties in South India.

As at March 31, 2025 and March 31, 2024, the fair values of the properties are Rs. 32.22 crore and Rs.27.92 crore, respectively.
These valuations are based on valuations performed by independent external valuer, who specialise in valuing these types of
investment properties. The aforesaid independent external valuers are not registered valuer as defined under rule 2 of the
Companies (Registered Valuers and Valuation) Rules, 2017.

The fair value of investment properties is primarily based on discounted cashflow method (''DCF'') and classified as level 3 fair
value in the fair value hierarchy due to the use of unobservable inputs. There has been no change in valuation techniques used
in current and previous years.

Under the DCF method, fair value is estimated using assumptions regarding the benefits and liabilities of ownership over the
asset''s life including an exit or terminal value. This method involves the projection of a series of cash flows on a real property
interest. To this projected 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
behaviour 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.

b) During the year, the investments made, guarantees provided, security given and the terms and conditions of the grant of all
loans, investments, securities and guarantees given to companies and Limited Liability Partnerships are not prejudicial to the
Company''s interest, the loans, investments, securities and guarantees are given to such parties considering the Company''s
economic interest and long-term trade relationship with such parties.

c) There are no amounts of loans and advances in the nature of loans granted to companies, firms, limited liability partnerships
or any other parties which are overdue for more than ninety days.

d) There were no loans granted to company and other parties which was fallen due during the year, that have been renewed or
extended or fresh loans granted to settle the overdues of existing loans given to the same parties.

e) The Company has granted loans or advances in the nature of loans, either repayable on demand or without specifying any terms
or period of repayment to companies and Limited Liability Partnerships. Of these following are the details of the aggregate
amount of loans or advances in the nature of loans granted to promoters or related parties as defined in clause (76) of section
2 of the Companies Act, 2013.

Nature and purpose of reserves:

1. Securities premium

Securities premium is used to record the premium on issue of shares, which can be utilised only in accordance with the
provisions of the Companies Act, 2013.

2. General reserve

General reserve represents amounts transferred from retained earnings, which can be utilised in accordance with the
provisions of the Companies Act, 2013.

3. Employee Stock Option(ESOP) Reserve

The ESOP reserve account is used to recognise the grant date fair value of options issued to employees under the Company''s
Employee stock option plan over the vesting period.

4. Retained earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders.

32a Exceptional items

During the quarter ended December 31, 2024, the Company has acquired an additional stake of 36.26% in an existing joint
venture partnership entity - Pune Projects LLP (''PPL'') from another partner for a consideration of Rs.35.00 crore. Pursuant
to the said acquisition, the Company holds 68.26% share and control thereon in PPL, thereby PPL has become a subsidiary
of the Company from December 31, 2024. Further, the partners of PPL have agreed to revise their profit sharing ratio, which
has resulted in recognition of additional share of loss of Rs.33.33 crore by the Company and the said share of profit/(loss) in
partnership entity of Rs. 33.33 crore has been disclosed under Exceptional items.

33. Fair value measurements

The fair value of the financial assets and liabilities is determined as 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 following methods and assumptions were used to estimate the fair values:

> The management assessed the fair values of the unquoted debt instruments using a DCF model. The valuation requires
management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit
risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in
management''s estimate of fair value for these unquoted instruments.

> The management assessed that the carrying values of cash and bank balances, trade receivables, trade payables, and other
financial assets and liabilities approximate their fair values largely due to their short-term maturities.

> The management assessed that the carrying values of bank deposits, borrowings and other financial assets and liabilities
approximate their fair values based on cash flow discounting using parameters such as interest rates, tenure of instrument,
creditworthiness of the customer and the risk characteristics of the financed project, as applicable.

> Refer note 4 with respect to investment properties.

> The quoted investments (mutual funds) are valued using the quoted market prices in active markets.

The Company''s investments in its subsidiaries, joint ventures and associates are accounted at cost (refer note 6).

> The unquoted investments (other funds) are valued using the unquoted net asset value of the units.

These financial assets and financial labilities as summarised below are classified as level 3 fair values except otherwise stated

below in the fair value hierarchy due to the use of unobservable inputs as explained above. There have been no transfers

between levels during the year.

The details of fair value measurement of Company''s financial assets/liabilities are as below:

34. Financial risk management

The Company''s principal financial liabilities, comprise borrowings, trade payables and other payables. The main purpose of
these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade
receivables, cash and bank balances and other receivables that derive directly from its operations.

The Company''s activities expose it to market risk, liquidity risk and credit risk.

The Company''s management oversees the management of these risks and ensures that the Company''s financial risk activities
are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in
accordance with the Company''s policies and risk objectives.

a. Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations.
Credit risk arises from cash and cash equivalents, trade receivables and deposits with banks and financial institutions.

Credit risk management

Other financial assets like bank deposits and other receivables are mostly with banks and hence, the Company does not
expect any credit risk with respect to these financial assets.

With respect to trade receivables, the Company has constituted teams to review the receivables on periodic basis and to
take necessary mitigations, wherever required. For trade receivables and contract assets, the Company applies a simplified
approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss
allowance based on lifetime ECLs at each reporting date. The recoverability of trade receivables is considered good as the
handover/possession of residential/commercial units to the customers in case of real estate arrangements or refund of
security deposit in case of lease arrangements is not processed till the time the Company collects the entire receivables.
Accordingly, the Company does not have any loss allowance based on historical life time credit loss experience and forward
looking factor as detailed above.

b. 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 and also generating cash
flow from operations.

Management monitors the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows
and maintaining debt financing plans.

The break-up of cash and cash equivalents and other current bank balances is as below:

c. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and
commodity/ real-estate risk.

The sensitivity analysis in the following sections relate to the position as at March 31,2025 and March 31, 2024. The analysis
excludes the impact of movements in market variables on the carrying values of gratuity and other post retirement
obligations/provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is
based on the financial assets and financial liabilities held at March 31, 2025 and March 31, 2024.

Interest rate risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
Interest rate. The entity''s exposure to the risk of changes in Interest rates relates primarily to the entity''s operating
activities (when receivables or payables are subject to different interest rates) and the entity''s net receivables or payables.
The Company is affected by the price volatility of certain commodities/ real estate. Its operating activities require the
ongoing development of real estate. The Company''s management has developed and enacted a risk management strategy
regarding commodity/ real estate price risk and its mitigation. The Company is subject to the price risk variables, which are
expected to vary in line with the prevailing market conditions.

Interest rate sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates. The
following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held
constant. The impact on the entity''s profit before tax is due to changes in the fair value of financial assets and liabilities.

35. Capital Management

The Company''s objectives when managing capital are to maximise 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 comprises long term
borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank
balances. Total equity comprises equity share capital and other equity.

In order to achieve the objective of maximize shareholders value, the Company''s capital management, amongst other things, aims
to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements.
Any significant breach in meeting the financial covenants would allow the bank to call borrowings. There have been no breaches in
the financial covenants of above-mentioned interest-bearing borrowing.

No changes were made in the objectives, policies or processes for managing capital during the current and previous years.

38. Commitments and contingencies
a. Other commitments

(i) As at March 31, 2025, the Company has contracts remaining to be executed on capital account amounting to Rs.1.29
crore that were not provided for (March 31, 2024: Rs.4.77 crore).

(ii) As at March 31, 2025, the Company has given Rs.441.77 crore (March 31,2024: Rs.299.73 crore) as advances/deposits for
purchase of land/ joint development. Under the agreements executed with the land owners, the Company is required
to make further payments and/or give share in area/ revenue from such development in exchange of undivided share in
land based on the agreed terms/ milestones.

(iii) The Company is committed to provide financial support to some of its subsidiaries to ensure that these entities operate
on going concern basis and are able to meet their debts and liabilities as they fall due.

iii) The Company has entered into an arrangement with Vistra ITCL India Limited (''Trustee'') and Purva Asset Management
Private Limited (''Fund Manager'' ) and has agreed to act as a sponsor of Purva Real Estate Fund (''Trust''), which is being
controlled by the Trustee. As part of the aforesaid arrangement, the Company and the Fund Manager (a wholly owned
subsidiary of the Company) have agreed to make capital contribution of upto Rs.14.83 crore (March 31, 2024: Rs. 9.00
crore) and Rs.1.00 crore (March 31, 2024: Rs. 1.00 crore), respectively. The funds raised by the Trust are to be invested in
entities engaged in residential projects developed by the Company and its affiliates and the Company has committed
to fund any shortfall in internal rate of return of 12% on such investments. The Company has assessed and is of the
view that the surplus from the respective projects will be sufficient to repay the committed return. Accordingly, the
Company doesn''t expect any further liability in this regard.

38. Commitments and contingencies (continued)

(iv) Ongoing legal proceedings related to property, income tax search and other matters

a) The Company is subject to ongoing legal proceedings in respect of the following matters as summarised below.

(i) Deposits and advances of Rs. 54.10 crore (March 31, 2024: Rs. 45.50 crore) towards joint development arrangements
and land acquisitions which are subject to legal proceedings related to obtaining clear and marketable tittle for
underlying properties.

(ii) Inventories related to launched project of Rs.78.30 crore (March 31, 2024: Rs. Nil) under land acquisition proceedings
by government authorities.

(iii) Other balances of Rs.6.20 crore (March 31, 2024: Rs. 6.20 crore) recoverable from joint development partners and
other parties which are subject to litigations.

Pending resolution of the aforesaid legal proceedings, no provision has been made towards aforesaid claims and
the deposits, advances, inventory and other balances referred above are classified as good and recoverable in the

accompanying standalone financial statements based on the legal evaluation by the management of the ultimate
outcome of the legal proceedings.

b) A search under section 132 of the Income Tax Act (''the Act'') was conducted in October 2023 in case of the Company,
certain group companies and its promoters. Pursuant to the proceedings of the Income tax authorities (''the authorities''),
requisite information was provided by the Company to the authorities.

During the quarter ended March 31, 2025, the Company has received assessment orders from the authorities disallowing
certain expenses on the grounds that the same are not incurred for the purpose of business, with potential tax impact
of Rs.3.50 crore, Rs.3.19 crore and Rs.5.35 crore for AY 2020-21, AY 2022-23 and AY 2023-24, respectively. The Company
is of the view that these expenses have been incurred in the ordinary course of business towards its ongoing real estate
development projects. The Company has filed appeal against such assessment orders and is reasonably confident of
providing necessary supporting evidences to the authorities in support of allowance of such expenses.

Pending resolution of the aforesaid legal proceedings, no provision has been made towards the consequential impact
arising from such assessment orders in the accompanying standalone financial statements, based on the legal
evaluation by the management of the ultimate outcome of the legal proceedings.

v) The Company is also subject to certain legal proceedings and claims, which have arisen in the ordinary course
of business, including certain litigation for commercial development or land parcels held for construction
purposes, either through joint development arrangements or through outright purchases, the impact of which
is not quantifiable. These cases are pending with various courts/statutory authorities. After considering the
circumstances and legal evaluation thereon, the management believes that these cases will not have an adverse
effect on these financial statements.

vi) The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
Certain sections of the Code came into effect on May 03, 2023. However, the final rules/interpretation have not
yet been issued. Based on a preliminary assessment, the entity believes the impact of the change will not be
significant.

Note: The Company does not expect any reimbursement in respect of the above contingent liabilities and it is not
practicable to estimate the timing of the cash outflows, if any, in respect of aforesaid matters and it is not probable
that an outflow of resources will be required to settle the above obligations/claims.

V. Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

During the year ended March 31, 2024, the Company had entered into transactions with a joint venture entity, in the nature of
loans and guarantees given aggregating to Rs.156.20 crores without prior approval of its shareholders. Based on legal advice,
the Company had reassessed and was in the process of regularising the requirements of Regulation 23(4) of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 and obtaining approval from its shareholders in the ensuing
general meeting for such related party transactions. In July 2024, the shareholders of the Company through postal ballet, have
ratified the aforesaid related party transactions.

41. Defined benefit plan - Gratuity

A. The Company has gratuity as defined benefit retirement plan 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 March 31, 2025
and March 31, 2024 the plan assets were invested in insurer managed funds.

42. Segmental information

The Company''s business activities fall within a single reportable segment, i.e. real estate development. Hence, there are no
additional disclosures to be provided under Ind-AS 108 - Segment information with respect to the single reportable segment, other
than those already provided in these financial statements.

The Company is domiciled in India. The Company''s revenue from operations from external customers relate to real estate
development in India and all the non-current assets of the Company are located in India.

43. Share Based Payments

Equity Settled Share Based Payment Transaction

Certain employees of the Company and its subsidiary are covered under the group-wide share-based schemes of the Company,
wherein the Company has the obligation to settle the share-based transaction with equity settled options. Further, there is no
recharge arrangement between the Company and its subsidiary for the aforesaid share-based transactions.

The Company had approved a scheme of Employees Stock Option Plan vide shareholders'' special resolution dated September 27,
2022.

The eligible employees including members of key management personnel of the Company and its subsidiary as may be decided
by the Board and/or the Nomination and Remuneration committee at its own discretion are covered under the share-based
schemes of Puravankara Employee Stock Option Plan 2022. The Nomination and remuneration committee, in its meeting held
on January 23, 2024, has approved the grant of options to eligible employees of the Company and its subsidiary under the
"Puravankara Employee Stock Option Plan 2022"

There are no cash settlement alternatives. The Company accounts for the options as an equity-settled plan.

The Company determines expected volatility on all options granted using available implied volatility rates. The Company believes
that market-based measures of implied volatility are currently the best available indicators of the expected volatility used in
these estimates.

The Company determines expected lives of options based on the weighted average life of the options. The Company believes that
the weighted average life of the options is the best estimate currently available.

Risk-free interest rates based on the yields on government bonds of term equivalent to the expected life of the option as on the
date of grant. Dividend yield to be Zero as the Company does not have a dividend payment policy in place in the visible future.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

(iv) The Company has not traded or invested in Cryptocurrency transactions or Virtual Currency during the financial year.

(v) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) No funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with
the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend
or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46. The Company has defined process to take daily back-up of books of account in electronic mode on servers physically located
in India.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting
software, except that audit trail feature is not enabled for direct changes to data when using certain access rights as the audit
trail feature is not enabled at the database level insofar as it relates to SAP S/4 HANA accounting software. Further no instance
of audit trail feature being tampered with was noted in respect of the accounting software to the extent it was enabled.
Additionally, the audit trail of relevant prior year has been preserved by the Company as per the statutory requirements for
record retention to the extent it was enabled and recorded in the respective year.

47. Standards issued but not yet effective:

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of
the Company''s financial statements are disclosed below. The Company will adopt this new and amended standard, when it
becomes effective.

Lack of exchangeability - Amendments to Ind AS 21:

The Ministry of Corporate Affairs notified amendments to Ind AS 21 The Effects of Changes in Foreign Exchange Rates to
specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate
when exchangeability is lacking. The amendments also require disclosure of information that enables users of its financial
statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect,
the entity''s financial performance, financial position and cash flows.

The amendments are effective for annual reporting periods beginning on or after April 01, 2025. When applying the
amendments, an entity cannot restate comparative information.

The amendments are not expected to have a material impact on the Company''s financial statements.

For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors of

Chartered Accountants Puravankara Limited

ICAI Firm registration number: 101049W/E300004 CIN: L45200KA1986PLC051571

per Sudhir Kumar Jain Ashish R Puravankara Abhishek Nirankar Kapoor

Partner Managing Director Whole-time Director and CEO

Membership no.: 213157 DIN 00504524 DIN 03456820

Deepak Rastogi Sudip Chatterjee

Chief Financial Officer Company Secretary

Bengaluru Bengaluru

May 30, 2025 May 30, 2025

---

Mar 31, 2024

(p) Provisions and contingent liabilities

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses it in the financial statements, unless the possibility of an outflow of resources embodying economic benefits is remote.

If the Company has a contract that is onerous, the present obligation under the contract is recognised and measured as a provision. However, before a separate provision for an onerous contract is established, the Company recognises any impairment loss that has occurred on assets dedicated to that contract.

(q) Financial Instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value at initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability, except for transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss which are immediately recognized in statement of profit and loss. However, trade receivables that do not contain a significant financing component are measured at transaction price.

i. Financial assets at fair value through other comprehensive income

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

ii. Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income on initial recognition.

iii. Debt instruments at amortized cost

A ''debt instrument’ is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade and other receivables.

iv. Investment in subsidiaries, joint ventures and associates

Investment in subsidiaries, joint ventures and associates are carried at cost. Impairment recognized, if any, is reduced from the carrying value.

v. De-recognition of financial asset

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109.

vi. Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or as payables, as appropriate. The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts. The subsequent measurement of financial liabilities depends on their classification, which is described below.

vii. Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

viii. Financial liabilities at amortized cost

Financial liabilities are subsequently measured at amortized cost using the effective interest (''EIR’) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

ix. De-recognition of financial liability

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

x. Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses following hierarchy and assumptions that are based on market conditions and risks existing at each reporting date.

Fair value hierarchy:

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

© Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

© Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

© Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

(r) Cash dividend to equity holders of the Company

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

(s) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value. For the purpose of the Company’s statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding cash credit/bank overdrafts as they are considered an integral part of the Company’s cash management.

(u) Non-current Assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use.

Non-current assets and classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.

The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the asset is available for immediate sale in its present condition. Actions required to complete the sale/ distribution should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale and the sale expected within one year from the date of classification.

Assets and liabilities classified as held for sale are presented separately from other items in the balance sheet.

2.3 Significant accounting judgments, estimates and assumptions

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported balances of revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these judgments, assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

In the process of applying the Company’s accounting policies, management makes judgement, estimates and assumptions which have the most significant effect on the amounts recognized in the financial statements.

The key judgements, estimates and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its judgements, assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

i) Revenue from contracts with customers

The Company applied the following judgements that significantly affect the determination of the amount and timing of revenue from contracts with customers:

a) Identification of performance obligation

® Revenue consists of sale of undivided share of land and constructed area to the customer, which have been identified by the Company as a single performance obligation, as they are highly interrelated/ interdependent. In assessing whether performance obligations relating to sale of undivided share of land and constructed area are highly interrelated/ interdependent, the Company considers factors such as:

® whether the customer could benefit from the undivided share of land or the constructed area on its own or together with other resources readily available to the customer.

© whether the entity will be able to fulfil its promise under the contract, to transfer the undivided share of land without transfer of constructed area or transfer the constructed area without transfer of undivided share of land.

b) Timing of satisfaction of performance obligation

Revenue from sale of real estate units is recognised when (or as) control of such units is transferred to the customer. The entity assesses timing of transfer of control of such units to the customers as transferred over time if one of the following criteria are met:

© The customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs.

® The entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced.

© The entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.

If control is not transferred over time as above, the entity considers the same as transferred at a point in time.

For contracts where control is transferred at a point in time the Company considers the following indicators of the transfer of control of the asset to the customer:

© When the entity obtains a present right to payment for the asset.

® When the entity transfers legal title of the asset to the customer.

© When the entity transfers physical possession of the asset to the customer.

© When the entity transfers significant risks and rewards of ownership of the asset to the customer.

® When the customer has accepted the asset.

The aforesaid indicators of transfer of control are also considered for determination of the timing of derecognition of investment property.

c) Accounting for revenue and land cost for projects executed through joint development arrangements (''JDA'')

For projects executed through joint development arrangements, the Company has evaluated that land owners are not engaged in the same line of business as the Company and hence has concluded that such arrangements are contracts with customers. The revenue from the development and transfer of constructed area/revenue sharing arrangement and the corresponding land/ development rights received under JDA is measured at the fair value of the estimated construction service rendered to the land owner and the same is accounted on launch of the project. The fair value is estimated with reference to the terms of the JDA (whether revenue share or area share) and the related cost that is allocated to discharge the obligation of the Company under the JDA. Fair value of the construction is considered to be the representative fair value of the revenue transaction and land so obtained. Such assessment is carried out at the launch of the real estate project and is not reassessed at each reporting period. The management is of the view that the fair value method and estimates are reflective of the current market condition.

d) Significant financing component

For contracts involving sale of real estate unit, the Company receives the consideration in accordance with the terms of the contract in proportion of the percentage of completion of such real estate project and represents payments made by customers to secure performance obligation of the Company under the contract enforceable by customers. Such consideration is received and utilised for specific real estate projects in accordance with the requirements of the Real Estate (Regulation and Development) Act, 2016. Consequently, the Company has concluded that such contracts with customers do not involve any financing element since the same arises for reasons explained above, which is other than for provision of finance to/from the customer.

ii) Classification of property

The Company determines whether a property is classified as investment property or inventory as below.

Investment property comprises land and buildings (principally office and retail properties) that are not occupied substantially for use by, or in the operations of, the Company, nor for sale in the ordinary course of business, but are held primarily to earn rental income and capital appreciation. These buildings are substantially rented to tenants and not intended to be sold in the ordinary course of business.

Inventory comprises property that is held for sale in the ordinary course of business. Principally, this is residential and commercial property that the Company develops and intends to sell before or during the course of construction or upon completion of construction.

Estimation of net realizable value for inventory and land advance Inventory is stated at the lower of cost and net realizable value (NRV).

NRV for completed inventory property is assessed by reference to market conditions and prices existing at the reporting date and is determined by the Company, based on comparable transactions identified by the Company for properties in the same geographical market serving the same real estate segment.

NRV in respect of inventory property under construction is assessed with reference to market prices at the reporting date for similar completed property, less estimated costs to complete construction and an estimate of the time value of money to the date of completion.

With respect to land inventory and land advance given, the net recoverable value is based on the present value of future cash flows, which depends on the estimate of, among other things, the likelihood that a project will be completed, the expected date of completion, the discount rate used and the estimation of sale prices and construction costs.

iii) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not

yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to disclosure of fair value of investment property recorded by the Company.

iv) Defined benefit plans - Gratuity

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation rates and expected salary increase thereon.

v) Measurement of financial instruments at amortized cost

Financial instrument are subsequently measured at amortized cost using the effective interest (''EIR’) method. The computation of amortized cost is sensitive to the inputs to EIR including effective rate of interest, contractual cash flows and the expected life of the financial instrument. Changes in assumptions about these inputs could affect the reported value of financial instruments.

vi) Useful life and residual value of property, plant and equipment, investment property and intangible assets

The useful life and residual value of property, plant and equipment, investment property and intangible assets are determined based on evaluation made by the management of the expected usage of the asset, the physical wear and tear and technical or commercial obsolescence of the asset. Due to the judgements involved in such estimates the useful life and residual value are sensitive to the actual usage in future period.

vii) Provision for litigations and contingencies

Provision for litigations and contingencies is determined based on evaluation made by the management of the present obligation arising from past events the settlement of which is expected to result in outflow of resources embodying economic benefits, which involves judgements around estimates the ultimate outcome of such past events and measurement of the obligation amount. Due to judgements involved in such estimation the provision is sensitive to the actual outcome in future periods.

viii) Fair value measurement of financial instruments

When the fair values of financial instruments recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. The fair valuation requires management to make certain judgments about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. Changes about these factors could affect the reported fair value of financial instruments.

2.4 Changes in accounting policies and disclosures

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31,2023 to amend the following Ind AS which are effective for annual periods beginning on or after April 01,2023. The Company applied for the first-time these amendments.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company’s financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant’ accounting policies with a requirement to disclose their ''material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments had an impact on the Company’s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company’s financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously recognised for deferred tax on leases on a net basis. As a result of these amendments, the Company has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of paragraph 74 of Ind AS 12, there is no impact in the balance sheet. There was also no impact on the opening retained earnings as at April 1,2022.

Apart from these, consequential amendments and editorials have been made to other Ind AS, to the extent applicable, like Ind AS 101, Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.

Notes:

a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a fund specified in Schedule VII of the Act, in compliance with second proviso to sub section 5 of section 135 of the Act.

b) All amounts that are unspent under section (5) of section 135 of the Act, pursuant to any ongoing project, has been transferred to special account in compliance of with provisions of sub section (6) of section 135 of the Act.

33. Fair value measurements

The fair value of the financial assets and liabilities is determined as 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 following methods and assumptions were used to estimate the fair values:

> The management assessed the fair values of the unquoted debt instruments using a DCF model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management''s estimate of fair value for these unquoted instruments.

> The management assessed that the carrying values of cash and bank balances, trade receivables, trade payables, and other financial assets and liabilities approximate their fair values largely due to their short-term maturities.

> The management assessed that the carrying values of bank deposits, borrowings and other financial assets and liabilities approximate their fair values based on cash flow discounting using parameters such as interest rates, tenure of instrument, creditworthiness of the customer and the risk characteristics of the financed project, as applicable.

> Refer note 4 with respect to investment properties.

> The quoted investments (mutual funds) are valued using the quoted market prices in active markets.

34. Financial risk management

The Company’s principal financial liabilities, comprise borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade receivables, cash and bank balances and other receivables that derive directly from its operations.

The Company’s activities expose it to market risk, liquidity risk and credit risk.

The Company’s management oversees the management of these risks and ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

a Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. Credit risk arises from cash and cash equivalents, trade receivables and deposits with banks and financial institutions.

Credit risk management

Other financial assets like bank deposits and other receivables are mostly with banks and hence, the Company does not expect any credit risk with respect to these financial assets.

With respect to trade receivables, the Company has constituted teams to review the receivables on periodic basis and to take necessary mitigations, wherever required. For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The recoverability of trade receivables is considered good as the handover/possession of residential/commercial units to the customers in case of real estate arrangements or refund of security deposit in case of lease arrangements is not processed till the time the Company collects the entire receivables. Accordingly, the Company does not have any loss allowance based on historical life time credit loss experience and forward looking factor as detailed above.

b 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 and also generating cash flow from operations.

Management monitors the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows and maintaining debt financing plans.

c Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/ real-estate risk.

The sensitivity analysis in the following sections relate to the position as at March 31,2024 and March 31,2023. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations/provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2024 and March 31,2023.

Interest rate risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in Interest rate. The entity’s exposure to the risk of changes in Interest rates relates primarily to the entity’s operating activities (when receivables or payables are subject to different interest rates) and the entity’s net receivables or payables. The Company is affected by the price volatility of certain commodities/ real estate. Its operating activities require the ongoing development of real estate. The Company’s management has developed and enacted a risk management strategy regarding commodity/ real estate price risk and its mitigation. The Company is subject to the price risk variables, which are expected to vary in line with the prevailing market conditions.

Interest rate sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates. The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant. The impact on the entity’s profit before tax is due to changes in the fair value of financial assets and liabilities.

38. Commitments and contingencies (continued)

iv) The Company has entered into an arrangement with Vistra ITCL India Limited (''Trustee'') and Purva Asset Management Private Limited (''Fund Manager'' ) and has agreed to act as a sponsor of Purva Real Estate Fund (''Trust''), which is being controlled by the Trustee. As part of the aforesaid arrangement, the Company and the Fund Manager (a wholly owned subsidiary of the Company) have agreed to make capital contribution of upto Rs.9 crores and Rs.l crore, respectively. The funds raised by the Trust are to be invested in entities engaged in residential projects developed by the Company and its affiliates and the Company has committed to fund any shortfall in internal rate of return of 12% on such investments. The Company has assessed and is of the view that the surplus from the respective projects will be sufficient to repay the committed return. Accordingly, the Company doesn''t expect any further liability in this regard.

(v) Ongoing legal proceedings related to property, income tax search and other matters

a) A wholly-owned subsidiary of the Company had initiated legal proceedings against its customers and vendor for recovery of receivables of Rs. 28 crores, inventories of Rs.l crore, vendor advance of Rs.2 crores and customer''s counter claim thereon. Pending resolution of the aforesaid litigations, no provision has been made towards the resulting impact of customer''s counter-claims on the subsidiary and the underlying receivables and other assets are classified as good and receivable in the accompanying financial statements based on the legal opinion obtained by the management and the management''s evaluation of the ultimate outcome of the litigation.

b) The Company is subject to legal proceedings for obtaining clear and marketable tittle for certain properties wherein the Company has outstanding deposits and advances of Rs. 46 crores. Further, the Company has Rs. 7 crore recoverable from parties, which are subject to ongoing legal proceedings. Further, in relation to certain property previously owned by the Company, an individual has initiated legal proceedings claiming title over such property, which is disputed by the Company. Pending resolution of the aforesaid legal proceedings, no provision has been made towards any claims and the underlying recoverable, deposits and advances are classified as good and receivable in the accompanying financial statements based on the legal evaluation by the management of the ultimate outcome of the legal proceedings.

c) A search under section 132 of the Income Tax Act (''the Act'') was conducted in October 2023 in case of the Company, certain group companies and its promoters. Pursuant to the communications received from the Income tax authorities by the Company, requisite information has been provided to the authorities. As on the date of the financial statements, the Company, such group companies and its promoters have not received any demand or show cause notice from the authorities pursuant to such search proceedings. The Company''s management has confirmed that the Company has complied with the requirements of the Act and does not expect any further liability on final assessment of the aforesaid matter.

vi) A wholly-owned subsidiary (WOS) is carrying unbilled revenue as at March 31, 2024 and having regard to the WOS''s ongoing discussions with its customers towards the construction work, the WOS is confident of billing the same in the ensuing quarters. Further, the WOS has also initiated proceedings with its customer for extension of certain projects'' completion timeline and waiver of liquidated damages thereon amounting to Rs.16 crores. The Management is of the view that no provision is required towards the consequential impact of such delays in the accompanying financial statements based on the terms of the customer contracts, ongoing discussions with the customers. The WOS will continue to closely observe the evolving scenario and take into account any future developments arising out of the same.

vii) The Company is also subject to certain legal proceedings and claims, which have arisen in the ordinary course of business, including certain litigation for commercial development or land parcels held for construction purposes, either through joint development arrangements or through outright purchases, the impact of which is not quantifiable. These cases are pending with various courts and are scheduled for hearings. After considering the circumstances and legal evaluation thereon, the management believes that these cases will not have an adverse effect on these financial statements.

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

IV. Other information:

1. Outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables, other than those disclosed above. The Company has not recorded any provision/ write-off of receivables relating to amounts owed by related parties. Also refer note 6, 20 and 43 for other related party information.

2. I n respect of the transactions with the related parties, the Company has complied with the provisions of Section 177 and

188 of the Companies Act, 2013 where applicable, and the details have been disclosed above, as required by the applicable accounting standards.

3. The Company has given loans to related parties and has provided guarantees on behalf of related parties for loans taken by them from third parties. Such loans have been used by the related parties to fund their business operations.

4. The share based payment expense represents expense recognised as per Ind AS 102. The value of perquisite in this regard under Income Tax Act 1961 is Nil as no option has been exercised during the year.

5. The Company has additionally received security by pledge of inventory of subsidiaries - Melmont Constructions Private Limited of Rs. 219.07 crores and Purva Realties Private Limited of Rs.146.57 crores for the loan taken by the Company during the year ended March 31,2024.

6. Disclosure of the loans, advances, etc. to subsidiaries, associates and other entities in which the directors are interested:

42. Segmental information

The Company''s business activities fall within a single reportable segment, i.e. real estate development. Hence, there are no additional disclosures to be provided under Ind-AS 108 - Segment information with respect to the single reportable segment, other than those already provided in these financial statements.

The Company is domiciled in India. The Company''s revenue from operations from external customers relate to real estate development in India and all the non-current assets of the Company are located in India.

43. Share Based Payments

Equity Settled Share Based Payment Transaction

Certain employees of the Company and its subsidiary are covered under the group-wide share-based schemes of the Company, wherein the Company has the obligation to settle the share-based transaction with equity settled options. Further, there is no recharge arrangement between the Company and its subsidiary for the aforesaid share-based transactions.

The Company had approved a scheme of Employees Stock Option Plan vide shareholders'' special resolution dated September 27, 2022.

The eligible employees including members of key management personnel of the Company and its subsidiary as may be decided by the Board and/or the Nomination and Remuneration committee at its own discretion are covered under the share-based schemes of Puravankara Employee Stock Option Plan 2022.

The Nomination and remuneration committee, in its meeting held on 23.01.2024, has approved the grant of options to eligible employees of the Company and its subsidiary under the "Puravankara Employee Stock Option Plan 2022"

There are no cash settlement alternatives. The Company accounts for the options as an equity-settled plan.

Vesting Schedule

The vesting schedule for the options granted is detailed in the grant letter issued to each employee. These options have a minimum vesting period of one year and a maximum vesting period of five years, with 20% of the options vesting per tranche. Moreover, the vesting of these options is dependent upon achieving specified performance metrics related to Revenue and Profit, irrespective of market conditions.

STRATEGIC REPORT | STATUTORY REPORT | FINANCIAL STATEMENTS

255

Notes to Standalone Financial Statements (Contd.) 47. There are no standards that are notified and not yet effective as on the date.

As per our report of even date

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm registration number: 101049W/E300004

per Sudhir Kumar Jain

Partner

Membership no.: 213157

Bengaluru

May 23, 2024

For and on behalf of the Board of Directors of

Puravankara Limited

CIN:L45200KA1986PLC051571

Ashish R Puravankara Abhishek Nirankar Kapoor

Managing Director Wholetime Director, CEO and CFO

DIN 00504524 DIN 03456820

Sudip Chatterjee

Company Secretary

Bengaluru

May 23, 2024

ANNUAL REPORT 2023-24

---

Mar 31, 2023

a. Fair valuation information

The Company''s investment properties consist of commercial properties in South India.

As at March 31, 2023 and March 31, 2022, the fair values of the properties are Rs. 26.58 crore and Rs.45.90 crore, respectively. These valuations are based on valuations performed by independent external valuer, who specialise in valuing these types of investment properties. The aforesaid independent external valuers are not registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017.

The fair value of investment properties is primarily based on discounted cashflow method (''DCF'') and classified as level 3 fair value in the fair value hierarchy due to the use of unobservable inputs. There has been no change in valuation techniques used in current and previous years.

Under the DCF method, fair value is estimated using assumptions regarding the benefits and liabilities of ownership over the asset''s life including an exit or terminal value. This method involves the projection of a series of cash flows on a real property interest. To this projected 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 behaviour 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.

b. Capitalized borrowing cost

There are no borrowing costs capitalized during the year ended March 31, 2023 and March 31, 2022.

‘During the year ended March 31, 2023, the Company has sold its investments in its subsidiaries - Varishtha Property Developers Private Limited and Purva Sapphire Land Private Limited at book value to its wholly owned subsidiary Provident Housing Limited.

** Investment in Devas Global Services LLP is by way of conversion of loan amounting to Rs 170.44 crore. Investment in IBID Homes Private Limited is by way of conversion of loan amounting to Rs.12 crore.

# The Company has provided securities by way of pledge of investments in equity shares of certain investee entities [March 31, 2023: Purva Ruby Properties Private Limited and Grand Hills Developments Private Limited (March 31, 2022: Grand Hills Developments Private Limited and Keppel Puravankara Development Private Limited)] for the loans taken by the Company/such investee entities.

Notes:

During the year, certain investee entities have incurred losses and have accumulated losses as at year end. These investee entities are in their initial phase of its business operations and the management of such investee entities expect that the investee entities will generate sufficient profits in the future years and accordingly, the management of the Company is of the view that carrying value of the investment in such investee entities by the Company as at the year-end is appropriate.

b) During the year, the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in the nature of loans and guarantees to companies, firms, Limited Liability Partnerships or any other parties are not prejudicial to the Company''s interest, the loans are given to such parties considering the Company''s economic interest and long-term trade relationship with such parties."

c) There are no amounts of loans and advances in the nature of loans granted to companies, firms, limited liability partnerships or any other parties which are overdue for more than ninety days.

d) There were no loans granted to company and other parties which was fallen due during the year, that have been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties.

e) Loans, investments, guarantees and security in respect of which provisions of sections 185 and 186 of the Companies Act, 2013 (''the Act) are applicable have been complied with by the Company.

b. 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.

Nature and purpose of reserves:

1. Securities premium

Securities premium is used to record the premium on issue of shares, which can be utilised only in accordance with the provisions of the Companies Act, 2013.

2. General reserve

General reserve represents amounts transferred from retained earnings, which can be utilised in accordance with the provisions of the Companies Act, 2013.

a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a fund specified in Schedule VII of the Act, in compliance with second proviso to sub section 5 of section 135 of the Act.

b) All amounts that are unspent under section (5) of section 135 of the Act, pursuant to any ongoing project, has been transferred to special account in compliance of with provisions of sub section (6) of section 135 of the Act.

33 Fair value measurements

The fair value of the financial assets and liabilities is determined as 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 following methods and assumptions were used to estimate the fair values:

> The quoted investments (mutual funds) are valued using the quoted market prices in active markets.

> The management assessed the fair values of the unquoted debt instruments using a DCF model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management''s estimate of fair value for these unquoted instruments.

> Refer note 4 with respect to investment properties.

> The management assessed that the carrying values of cash and bank balances, trade receivables, trade payables, and other financial assets and liabilities approximate their fair values largely due to their short-term maturities.

> The management assessed that the carrying values of bank deposits, borrowings and other financial assets and liabilities approximate their fair values based on cash flow discounting using parameters such as interest rates, tenure of instrument, creditworthiness of the customer and the risk characteristics of the financed project, as applicable.

The Company''s investments in its subsidiaries, joint ventures and associates are carried at cost.

These financial assets and financial labilities as summarised below are classified as level 3 fair values except otherwise stated below in the fair value hierarchy due to the use of unobservable inputs as explained above. There have been no transfers between levels during the year

The details of fair value measurement of Company''s financial assets/liabilities are as below:

34 Financial risk management

The Company''s principal financial liabilities, comprise borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade receivables, cash and bank balances and other receivables that derive directly from its operations.

The Company''s activities expose it to market risk, liquidity risk and credit risk.

The Company''s management oversees the management of these risks and ensures that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

a. Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. Credit risk arises from cash and cash equivalents, trade receivables and deposits with banks and financial institutions.

Credit risk management

Other financial assets like bank deposits and other receivables are mostly with banks and hence, the Company does not expect any credit risk with respect to these financial assets.

With respect to trade receivables, the Company has constituted teams to review the receivables on periodic basis and to take necessary mitigations, wherever required. The Company creates allowance for all unsecured receivables based on lifetime expected credit loss.

Expected credit loss for trade receivables under simplified approach

The recoverability of trade receivables is considered good as the handover/possession of residential/commercial units to the customers is not processed till the time the Company receives the entire payment. Accordingly, the Company does not have significant credit risk.

During the periods presented, the Company made no allowance for trade receivables.

b. 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 and also generating cash flow from operations.

Management monitors the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows and maintaining debt financing plans.

c. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/ real-estate risk.

The sensitivity analysis in the following sections relate to the position as at March 31, 2023 and March 31, 2022. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations/provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2023 and March 31, 2022.

Interest rate risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in Interest rate. The entity''s exposure to the risk of changes in Interest rates relates primarily to the entity''s operating activities (when receivables or payables are subject to different interest rates) and the entity''s net receivables or payables. The Company is affected by the price volatility of certain commodities/ real estate. Its operating activities require the ongoing development of real estate. The Company''s management has developed and enacted a risk management strategy regarding commodity/ real estate price risk and its mitigation. The Company is subject to the price risk variables, which are expected to vary in line with the prevailing market conditions.

Interest rate sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates. The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant. The impact on the entity''s profit before tax is due to changes in the fair value of financial assets and liabilities.

35 Capital Management

The Company''s objectives when managing capital are to maximise 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 comprises long term borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank balances. Total equity comprises equity share capital and other equity.

In order to achieve the objective of maximize shareholders value, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. Any significant breach in meeting the financial covenants would allow the bank to call borrowings. There have been no breaches in the financial covenants of above-mentioned interest-bearing borrowing.

No changes were made in the objectives, policies or processes for managing capital during the current and previous years.

37 Leases Company as a lessee:

The Company has entered into a non cancellation lease arrangements for buildings, vehicles and computer equipments for 2 to 5 years. The Company also has certain leases of building,vehicles and computer equipments with lease terms of 12 months. The Company has applied the ''short-term lease'' recognition exemptions for these leases and the Company does not have "lease of low value assets".

There are several lease contracts that include extension and termination options.

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the year:

*The Company has entered into an agreement with its associate company for use of aircraft on a take or pay arrangement for the year ended March 31, 2023. Under the agreement, the Company has paid Rs. 7 crore towards fixed monthly charges and Rs. 7 crores towards additional charges, which have been recorded as Short-term lease expenses- Rent under Other Expenses.

The Company has entered into operating leases (cancellable and non-cancellable) on its investment property portfolio with varying lease terms of upto four years and with escalation and renewal clauses. All leases include a clause to enable upward revision of the lease rental on periodical basis. The Company is also required to maintain the property over the lease term.

38 Commitments and contingencies

a. Other commitments

(i) As at March 31, 2023, the Company has contracts remaining to be executed on capital account amounting to Rs. Nil that were not provided for (March 31, 2022 - Rs. 6.18 crores).

(ii) As at March 31, 2023, the Company has given Rs. 184.89 crores (March 31, 2022: Rs. 238.27 crores) as advances/ deposits for purchase of land/ joint development. Under the agreements executed with the land owners, the Company is required to make further payments and/or give share in area/ revenue from such development in exchange of undivided share in land based on the agreed terms/ milestones.

(iii) The Company is committed to provide financial support to some of its subsidiaries and to a joint venture to ensure that these entities operate on going concern basis and are able to meet their debts and liabilities as they fall due.

b. Contingent liabilities

\	March 31, 2023	March 31, 2022
i) Claims against the company not acknowledged as debts
- Value added tax	2.81	2.81
- Service tax	38.18	38.18
- Income tax	51.32	51.32
ii) Guarantees given for subsidiary''s borrowings from banks/ financial institutions	2,499.41	1,602.29

iii) The Company is carrying provision for claims (refer note 22b) towards compensation payable to its customers for delays in completion of certain RERA-registered real estate projects. After considering the circumstances and evaluation thereon, the management believes that these delays will not have any further impact on these financial statements .

iv) The Company, a subsidiary company and a joint venture company had entered into a debenture investment agreement with a third party Investor for development of a real estate project. The subsidiary company and the Investor (collectively, the debenture holders) had subscribed to debentures aggregating to Rs. 190 crores. Further, the joint venture company, basis the evaluation of the terms of such agreement and the projected project surplus, had accounted for interest obligation.

Upon revision in project plan and projected remaining surplus thereon as approved by the Board of Directors of the joint venture company, the joint venture company reassessed the projected remaining surplus and considering that the projected remaining surplus (present value) is sufficient to only pay the principal amount of debentures, the joint venture company has written back the accumulated interest payable on debentures of Rs. 236 crores during the year ended March 31, 2023. Further, the joint venture company also reassessed the net realisable value of the inventory pursuant to change in project plan and has accordingly recorded an inventory loss of Rs. 55 crores and write off of supplier advance of Rs. 10 crores during the year ended March 31, 2023.

Consequently, the subsidiary company has also written off the accumulated interest receivable of Rs. 39 crores on such debentures during the year ended March 31, 2023. Management is confident of the project being developed as per agreed terms and doesn''t expect any liability in this regard.

v) The Company has entered into an arrangement with Vistra ITCL India Limited (''Trustee'') and Purva Asset Management Private Limited (''Fund Manager'' ) and has agreed to act as a sponsor of Purva Real Estate Fund (''Trust''), which is being controlled by the Trustee. As part of the aforesaid arrangement, the Company and the Fund Manager (a wholly owned subsidiary of the Company) have agreed to make capital contribution of upto Rs.9 crores and Rs.1 crore, respectively. The funds raised by the Trust are to be invested in entities engaged in residential projects developed by the Company and its affiliates and the Company has committed to fund any shortfall in internal rate of return of 12% on such investments. The Company has assessed and is of the view that the surplus from the respective projects will be sufficient to repay the committed return. Accordingly, the Company doesn''t expect any further liability in this regard.

vi) A wholly-owned subsidiary of the Company had initiated legal proceedings against its customer for recovery of receivables of Rs. 15 crores, inventories of Rs.1 crore and customer''s counter claim thereon, which is currently pending before the High Court. Pending resolution of the aforesaid litigation, no provision has been made towards the resulting impact of customer''s counter-claims on the subsidiary in the accompanying financial statements based on the legal opinion obtained by the management and the management''s evaluation of the ultimate outcome of the litigation.

vii) The Company is subject to legal proceedings for obtaining clear and marketable tittle for certain properties wherein the Company has outstanding deposits and advances of Rs. 63 crores. Further, the Company has Rs. 3 crore recoverable from parties, which are subject to ongoing legal proceedings. Further, in relation to certain property

previously owned by the Company, an individual has initiated legal proceedings claiming title over such property, which is disputed by the Company. Pending resolution of the aforesaid legal proceedings, no provision has been made towards any claims and the underlying recoverable, deposits and advances are classified as good and recoverable in the accompanying financial statements based on the legal evaluation by the management of the ultimate outcome of the legal proceedings.

viii) The construction operations and project completion timelines of certain ongoing customer contracts of a wholly-owned subsidiary (WOS) were impacted including due to outbreak of Covid-19. The WOS is carrying construction work in progress as at March 31, 2023 and having regard to the WOS''s ongoing discussions with its customers towards the construction work, the WOS is confident of billing the same in the ensuing quarters. Further, the WOS has also initiated proceedings with its customer for extension of certain projects'' completion timeline and waiver of liquidated damages thereon amounting to Rs. 23 crores. The Management is of the view that no provision is required towards the consequential impact of such delays in the accompanying financial statements based on the terms of the customer contracts, ongoing discussions with the customers and impact of Covid-19 pandemic. The WOS will continue to closely observe the evolving scenario and take into account any future developments arising out of the same.

ix) The Company is also subject to certain legal proceedings and claims, which have arisen in the ordinary course of business, including certain litigation for commercial development or land parcels held for construction purposes, either through joint development arrangements or through outright purchases, the impact of which is not quantifiable. These cases are pending with various courts and are scheduled for hearings. After considering the circumstances and legal evaluation thereon, the management believes that these cases will not have an adverse effect on these financial statements.

x) During the previous year, the Company had received emails from its customer containing complaints pertaining to the Company''s compliances with certain tax related matters. The Company had submitted its responses to the customer and is of the view that it is in compliance with the applicable rules and regulations. The Company has not received any further communication in this regard.

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

Note: The Company does not expect any reimbursement in respect of the above contingent liabilities and it is not practicable to estimate the timing of the cash outflows, if any, in respect of aforesaid matters and it is not probable that an outflow of resources will be required to settle the above obligations/claims.

Trade receivables are generally on credit terms of upto 30 days. The increase in trade receivables primarily on account of increase in operations.

Contract liabilities represents transaction price allocated to unsatisfied performance obligations. The outstanding balances of these accounts have increased primarily on account of increase in billings for the projects.

The entity expects to satisfy the performance obligations when (or as) the underlying real estate projects to which such performance obligations relate are completed. Such real estate projects are in various stages of development and are expected to be completed in the coming periods of upto four years.

IV. Other information:

1. Outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables, other than those disclosed above. The Company has not recorded any provision/ write-off of receivables relating to amounts owed by related parties. Also refer note 6, 7, 20 and 43 for other related party information.

2. I n respect of the transactions with the related parties, the Company has complied with the provisions of Section 177 and 188 of the Companies Act, 2013 where applicable, and the details have been disclosed above, as required by the applicable accounting standards.

3. The Company has given loans to related parties and has provided guarantees on behalf of related parties for loans taken by them from third parties. Such loans have been used by the related parties to fund their business operations.

4. The Company has given Security by pledge of inventory amounting to Rs.185 crores (March 31, 2022:Rs.185 crores) for the loans taken by its subsidiaries - Provident Housing Limited and Melmont Construction Private Limited.

41 Defined benefit plan - Gratuity

A. The Company has gratuity as defined benefit retirement plan 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 March 31, 2023 and March 31, 2022 the plan assets were invested in insurer managed funds.

Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. There are no changes from the previous year in the methods and assumptions used in preparing the sensitivity analysis.

There is no change in the method of valuation for the prior period.

42 Segmental information

The Company''s business activities fall within a single reportable segment, i.e. real estate development. Hence, there are no additional disclosures to be provided under Ind-AS 108 - Segment information with respect to the single reportable segment, other than those already provided in these financial statements.

The Company is domiciled in India. The Company''s revenue from operations from external customers relate to real estate development in India and all the non-current assets of the Company are located in India.

43 Non-current assets held for sale

During the year ended March 31, 2022, the Company had entered into definitive agreements for demerger of a project asset of an associate company into a wholly owned subsidiary Bangalore Tower Private Limited (BTPL) of such associate company where the Company will also be allotted shares. Upon allotment, the Company agrees to sell its shareholding in BTPL for an agreed consideration, which is higher than the carrying value of the investment in BTPL.

Consequent to approval of aforesaid demerger, the Company had classified the carrying value of such investment in BTPL amounting to Rs. 15.92 crores (0.477 crore equity shares of Rs. 10 each fully paid-up) from ''Investment'' to ''Non-current Assets held for sale'' in the balance sheet. Considering the above arrangement is subject to compliance with certain conditions by the parties to the arrangement, the proposed sale of investment in BTPL was not recognised as at March 31, 2022.

During the current year, such conditions have been complied with and the Company has transferred the shares of BTPL for consideration of Rs.112.27 crores. The resultant gain of Rs. 96.35 crores was accounted during the current year ended March 31, 2023 under other income."

44 Other Statutory Information

(i) There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

(ii) The Company has balance with the below-mentioned companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act,1956

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Cryptocurrency transactions or Virtual Currency during the financial year

(v) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries except the following:

(vi) No funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority or any other lender

46 Standards issued but not yet effective

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective from 01 April 2023.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments are effective for annual reporting periods beginning on or after 1 April 2023 and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments to Ind AS 1 are applicable for annual periods beginning on or after 1 April 2023. Consequential amendments have been made in Ind AS 107.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences.

The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations. Consequential amendments have been made in Ind AS 101. The amendments to Ind AS 12 are applicable for annual periods beginning on or after 1 April 2023.

The Company is currently assessing the impact of the amendments.

---

Mar 31, 2018

1. Corporate information

Puravankara Limited (the ‘Company’) was incorporated on June 3, 1986 under the provisions of the Companies Act applicable in India (“Act”). The registered office is located at 130/1, Ulsoor Road, Bengaluru 560042, India. The Company’s shares are listed on two recognized stock exchanges in India namely National Stock Exchange of India Limited and BSE Limited. The Company is engaged in the business of real estate development.

The standalone Ind AS financial statements were authorized for issue in accordance with a resolution of the Board of Directors on May 11, 2018.

2. Significant accounting policies

2.1 Basis of preparation

In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.The standalone financial statements of the Company are prepared and presented in accordance with Ind AS.

The standalone financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

2.2 Significant accounting judgments, estimates and assumptions

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported balances of revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these judgments, assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

In the process of applying the Company’s accounting policies, management makes judgement, estimates and assumptions which have the most significant effect on the amounts recognized in the financial statements.

The key judgements, estimates and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its judgements, assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Revenue recognition and valuation of unbilled revenue

The Company uses the percentage-of-completion method for recognition of revenue, accounting for unbilled revenue and contract cost thereon for its real estate and contractual projects. The percentage of completion is measured by reference to the stage of the projects and contracts determined based on the proportion of contract costs incurred for work performed to date bear to the estimated total contract costs. Use of the percentage-of-completion method requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Significant assumptions are required in determining the stage of completion, the extent of the contract cost incurred, the estimated total contract revenue and contract cost and the recoverability of the contracts. These estimates are based on events existing at the end of each reporting date.

Accounting for revenue and land cost for projects executed through joint development arrangements (‘JDA’)

For projects executed through joint development arrangements, the revenue from the development and transfer of constructed area/ revenue sharing arrangement and the corresponding land/ development rights received under JDA is measured at the fair value of the estimated construction service rendered to the land owner and the same is accounted on launch of the project. The fair value is estimated with reference to the terms of the JDA (whether revenue share or area share) and the related cost that is allocated to discharge the obligation of the Company under the JDA. Fair value of the construction is considered to be the representative fair value of the revenue transaction and land so obtained. Such assessment is carried out at the launch of the real estate project and is not reassessed at each reporting period. The management is of the view that the fair value method and estimates are reflective of the current market condition.

Classification of property

The Company determines whether a property is classified as investment property or inventory as below.

Investment property comprises land and buildings (principally office and retail properties) that are not occupied substantially for use by, or in the operations of, the Company, nor for sale in the ordinary course of business, but are held primarily to earn rental income and capital appreciation. These building/s are substantially rented to tenants and not intended to be sold in the ordinary course of business.

Inventory comprises property that is held for sale in the ordinary course of business. Principally, this is residential and commercial property that the Company develops and intends to sell before or during the course of construction or upon completion of construction.

Estimation of net realizable value for inventory and land advance

Inventory is stated at the lower of cost and net realizable value (NRV).

NRV for completed inventory property is assessed by reference to market conditions and prices existing at the reporting date and is determined by the Company, based on comparable transactions identified by the Company for properties in the same geographical market serving the same real estate segment.

NRV in respect of inventory property under construction is assessed with reference to market prices at the reporting date for similar completed property, less estimated costs to complete construction and an estimate of the time value of money to the date of completion.

With respect to land inventory and land advance given, the net recoverable value is based on the present value of future cash flows, which depends on the estimate of, among other things, the likelihood that a project will be completed, the expected date of completion, the discount rate used and the estimation of sale prices and construction costs.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to disclosure of fair value of investment property recorded by the Company.

Defined benefit plans - Gratuity

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation rates and expected salary increase thereon.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and market risk. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Measurement of financial instruments at amortized cost

Financial instrument are subsequently measured at amortized cost using the effective interest (‘EIR’) method. The computation of amortized cost is sensitive to the inputs to EIR including effective rate of interest, contractual cash flows and the expected life of the financial instrument. Changes in assumptions about these inputs could affect the reported value of financial instruments.

Evaluation of control, joint control or significant influence by the Company over it’s investee entities for disclosure:

Judgement is involved in determining whether the Company has control over an investee entity by assessing the Company’s exposure/rights to variable returns from its involvement with the investee and its ability to affect those returns through its power over the investee entity. The Company considers all facts and circumstances when assessing whether it controls an investee entity and reassess whether it controls an investee entity if facts and circumstances indicate that there are changes to one or more elements of control. In assessing whether the Company has joint control over an investee the Company assesses whether decisions about the relevant activities require the unanimous consent of the parties sharing control. Further, in assessing whether Company has significant influence over an investee, the Company assesses whether it has the power to participate in the financial and operating policy decisions of the investee, but is not in control or joint control of those policies.

Useful life and residual value of property, plant and equipment, investment property and intangible assets

The useful life and residual value of property, plant and equipment, investment property and intangible assets are determined based on evaluation made by the management of the expected usage of the asset, the physical wear and tear and technical or commercial obsolescence of the asset. Due to the judgements involved in such estimates the useful life and residual value are sensitive to the actual usage in future period.

Provision for litigations and contingencies

Provision for litigations and contingencies is determined based on evaluation made by the management of the present obligation arising from past events the settlement of which is expected to result in outflow of resources embodying economic benefits, which involves judgements around estimates the ultimate outcome of such past events and measurement of the obligation amount. Due to judgements involved in such estimation the provision is sensitive to the actual outcome in future periods

c. Fair valuation information

The fair valuations are based on valuations performed by an accredited independent valuer.

The Company has no restrictions on the realizability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements as at Balance Sheet date. The fair value of investment properties is based on discounted cash flows and classified as level 3 fair value in the fair value hierarchy due to the use of unobservable inputs. There has been no change in valuation techniques used since prior years.

Under the DCF method, fair value is estimated using assumptions regarding the benefits and liabilities of ownership over the asset’s life including an exit or terminal value. This method involves the projection of a series of cash flows on a real property interest. To this projected 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.

d. Capitalized borrowing cost

There are no borrowing costs capitalized during the year ended March 31, 2018 and March 31, 2017.

e. Investment properties pledged as security

Details of investment properties pledged are as per note 20

b. 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.

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. The Company has not received any claim for interest from any supplier under the said Act.

3 Fair value measurements

The fair value of the financial assets and liabilities is determined as 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 does not have financial assets and liabilities carried at fair value.

Investment in subsidiaries, joint ventures and associates are carried at cost.

The management assessed that the carrying values of cash and cash equivalents, trade receivables, loans, trade payables, borrowings and other financial assets and liabilities (as listed below) approximate their fair values largely either due to their short-term maturities or because they are assets/ liabilities carried at amorised cost and their amortised cost approximates their fair values.

4 Financial risk management

The Company’s principal financial liabilities, comprise borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade receivables, cash and bank balances and other receivables that derive directly from its operations.

The Company’s activities expose it to market risk, liquidity risk and credit risk.

The Company’s management oversees the management of these risks and ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

a. Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. Credit risk arises from cash and cash equivalents, trade receivables and deposits with banks and financial institutions.

Credit risk management

Other financial assets like bank deposits and other receivables are mostly with banks and hence, the Company does not expect any credit risk with respect to these financial assets.

With respect to trade receivables/unbilled revenue, the Company has constituted teams to review the receivables on periodic basis and to take necessary mitigations, wherever required. The Company creates allowance for all unsecured receivables based on lifetime expected credit loss.

Expected credit loss for trade receivables under simplified approach

The recoverability of trade receivables is assured as the registration 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.

b. 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 and also generating cash flow from operations.

Management monitors the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows and maintaining debt financing plans.

The break-up of cash and cash equivalents and other current bank balances is as below:

Maturities of financial liabilities

The tables below analyze the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all financial liabilities.

* Includes current maturities of long-term borrowings

# Gross of transaction costs

c. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/real-estate risk.

The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations/provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

Interest rate risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in interest rate. The entity’s exposure to the risk of changes in Interest rates relates primarily to the entity’s operating activities (when receivables or payables are subject to different interest rates) and the entity’s net receivables or payables.

The Company is affected by the price volatility of certain commodities/real estate. Its operating activities require the ongoing development of real estate. The Company’s management has developed and enacted a risk management strategy regarding commodity/real estate price risk and its mitigation. The Company is subject to the price risk variables, which are expected to vary in line with the prevailing market conditions.

Interest rate sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates. The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant. The impact on the entity’s profit before tax is due to changes in the fair value of financial assets and liabilities.

5 Capital Management

The Company’s objectives when managing capital are to maximise 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 comprises long term borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank balances. Total equity comprises equity share capital and other equity.

In order to achieve the objective of maximize shareholders value, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. Any significant breach in meeting the financial covenants would allow the bank to call borrowings. There have been no breaches in the financial covenants of above mentioned interest-bearing borrowing.

No changes were made in the objectives, policies or processes for managing capital during the current and previous years.

6 Commitments and contingencies

a. Leases

A. Operating lease Company as lessee

The Company has taken premises under cancellable and non-cancellable operating leases. These leases have life of upto ten years with renewal option and include a clause to enable upward revision of the lease rental on periodical basis.

Company as lessor

The Company has entered into operating leases (cancellable and non-cancellable) on its investment property portfolio with varying lease terms of upto eighteen years and with escalation and renewal clauses. All leases include a clause to enable upward revision of the lease rental on periodical basis. The Company is also required to maintain the property over the lease term.

B. Finance lease

The Company has entered into a finance lease arrangement for building with a lease term of 33 years. The effective interest rate under the lease is 14% p.a. Lease commitments under the finance lease as at the Balance Sheet date were as follows:

b. Other commitments

(i) As at March 31, 2018, the Company did not have any contracts remaining to be executed on capital account that were not provided for (March 31, 2017 - Rs.Nil).

(ii) As at March 31, 2018, the Company has given RS.213.50 crores (March 31, 2017: RS.198.95 crores) as advances/deposits for purchase of land/ joint development. Under the agreements executed with the land owners, the Company is required to make further payments and/or give share in area/ revenue from such development in exchange of undivided share in land based on the agreed terms/milestones.

(iii) The Company is committed to provide financial support to some of its subsidiaries to ensure that these entities operate on going concern basis and are able to meet their debts and liabilities as they fall due.

Other Litigations:

The Company is also subject to certain legal proceedings and claims, which have arisen in the ordinary course of business, including certain litigation for commercial development or land parcels held for construction purposes, either through joint development arrangements or through outright purchases, the impact of which is not quantifiable. These cases are pending with various courts and are scheduled for hearings. After considering the circumstances and legal evaluation thereon, the management believes that these cases will not have an adverse effect on the financial statements.

Note: The Company does not expect any reimbursement in respect of the above contingent liabilities and it is not practicable to estimate the timing of the cash outflows, if any, in respect of aforesaid matters and it is not probable that an outflow of resources will be required to settle the above obligations/claims.

7 Related party transactions

I Names of related parties and nature of relationship with the Company

(i) Subsidiaries

Prudential Housing and Infrastructure Development Limited Centurions Housing and Constructions Private Limited Melmont Construction Private Limited Purva Corporation (until September 20, 2017)

Purva Marine Properties Private Limited (until March 27, 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

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

IBID Home Private Limited

Provident Cedar Private Limited

Argan Properties Private Limited

Provident Meryta Private Limited

(ii) Parties where control exists

Mr. Ravi Puravankara

(iii) Key management personnel (‘KMP’)

a. Directors

Mr. Ravi Puravankara Mr. Ashish R Puravankara Mr. Nani R Choksey Mr. R V S Rao Mr. Pradeep Guha Dr. Suchitra Kaul Misra

b. Other officers

Mr. Kuldeep Chawla (Chief Financial Officer)

Mrs. Bindu Doraiswamy (Company Secretary)

(iv) Relatives of key management personnel Mrs. Geeta S Vhatkar

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

Purva Developments Puravankara Investments Handiman Services Limited Dealwel (Proprietorship)

Kenstream Ventures LLP

(vi) Associates

Keppel Puravankara Development Private Limited Propmart Technologies Limited Sobha Puravankara Aviation Private Limited Whitefield Ventures

(vii) Joint venture

Pune Projects LLP

Purva Good Earth Properties Private Limited (Joint Venture of Provident Housing Limited)

* As the future liability for gratuity and leave benefits is provided on an actuarial basis for the company as a whole, the amount pertaining to individual is not ascertainable and therefore not included above.

IV. Other information:

1. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables, other than those disclosed above. The Company has not recorded any provision/write-off of receivables relating to amounts owed by related parties.

2. In respect of the transactions with the related parties, the Company has complied with the provisions of Section 177 and 188 of the Companies Act, 2013 where applicable, and the details have been disclosed above, as required by the applicable accounting standards.

3. The Company has given loans to related parties and has provided guarantees on behalf of related parties for loans taken by them from third parties. Such loans are intended to be used by the related parties to fund their business operations.

4. Disclosure as per Schedule V(A) of the Securities and Exchange Board of India (Listing obligations and disclosure requirements) Regulations, 2015 of the loans, advances, etc. to subsidiaries, associates and other entities in which the directors are interested:

5. On March 30, 2018, the Company has sold investment property (Purva Mall) for a consideration of RS.35.60 Crores to Kenstream Ventures LLP. The Company has taken the Audit Committee approval of the transaction during the Audit Committee meeting held on May 05, 2018. Futher, on March 31, 2018, the Company has sold Inventory (Purva Sunflower) for a consideration of RS.35.00 Crores to IBID Home Private Limited. The Company has taken the Audit Committee approval of the transaction during the Audit Committee meeting held on May 11, 2018.

6. As at March 31, 2018, with respect to the Company’s borrowings, the director of the Company has given fund shortfall undertaking towards funding of underlying projects/ working capital. Also refer note 20.

8 Defined benefit plan - Gratuity

A. The Company has gratuity as defined benefit retirement plan 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 March 31, 2018 and March 31, 2017 the plan assets were invested in insurer managed funds.

The following tables set out the funded status of gratuity plans and the amount recognized in Company’s financial statements :

Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. There are no changes from the previous period in the methods and assumptions used in preparing the sensitivity analysis.

There is no change in the method of valuation for the prior period.

9 Standards issued but not yet effective

Ind AS 115 Revenue from Contracts with Customers

On March 28, 2018, the Ministry of Corporate Affairs (MCA) has notified Indian Accounting Standard (Ind AS) 115, Revenue from Contracts with Customers. Ind AS 115 introduces a five-step model to revenue recognition:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

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

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

Amendments to Ind AS 112 Disclosure of Interests in Other Entities: Clarification of the scope of disclosure requirements in Ind AS 112

The amendments clarify that the disclosure requirements in Ind AS 112, other than those in paragraphs B10-B16 of Ind AS 112, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale.

These amendments are effective for annual periods beginning on or after 1 April 2018. As at the date of issuance of the Group’s financial statements, the Group is in the process of evaluating the requirements of the said standard and the impact on its financial statements in the period of initial application.

Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.

These amendments are effective for annual periods beginning on or after 1 April 2018. As at the date of issuance of the Company’s financial statements, the Company is in the process of evaluating the requirements of the said standard and the impact on its financial statements in the period of initial application.

Transfers of Investment Property — Amendments to Ind AS 40

The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management’s intentions for the use of a property does not provide evidence of a change in use.

Entities should apply the amendments prospectively to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. An entity should reassess the classification of property held at that date and, if applicable, reclassify property to reflect the conditions that exist at that date. Retrospective application in accordance with Ind AS 8 is only permitted if it is possible without the use of hindsight.

The amendments are effective for annual periods beginning on or after 1 April 2018. The Company will apply the amendments prospectively when they become effective and hence the Company does not expect any effect on its financial statements.

Appendix B to Ind AS 21 Foreign Currency Transactions and Advance Consideration

The Appendix clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration.

Entities may apply the Appendix requirements on a fully retrospective basis. Alternatively, an entity may apply these requirements prospectively to all assets, expenses and income in its scope that are initially recognised on or after:

(i) The beginning of the reporting period in which the entity first applies the Appendix, or

(ii) The beginning of a prior reporting period presented as comparative information in the financial statements of the reporting period in which the entity first applies the Appendix.

The Appendix is effective for annual periods beginning on or after 1 April 2018. As the Company does not have advance consideration received in foreign currency, the Company does not expect any effect on its financial statements.

10 The standalone Ind AS financial statements of the Company for the year ended March 31, 2017 have been audited by the predecessor auditor who expressed an unmodified opinion on those financial statements on May 29, 2017. The standalone Ind AS financial information of the Company for the year ended March 31, 2017 have been included in these standalone Ind AS financial statements after giving effect to the adjustments described below.

11 Till the year ended March 31, 2017, revenue from completed real estate projects was recognised upon transfer of all significant risks and rewards of ownership of real estate/ property, as per the terms of the contracts entered into with buyers, which generally coincides with the execution of the sale agreement/deed. Effective year ended March 31, 2018, the Company has introduced the practice of executing allotment letters with buyers prior to execution of the sale agreement/deed. The Company, based on the legal opinion, is of the view that such allotment letters have the effect of transferring all significant risks and rewards of ownership to the buyer and are legally enforceable. Consequently, revenue from completed real estate projects is now recognised upon execution of the allotment letters entered into with the buyers. On account of the aforesaid change in the basis of revenue recognition, revenue from operations for the year ended March 31, 2018 is higher by RS.86.76 crores and the profit before tax for the year ended March 31, 2018 is higher by RS.28.40 crores.

12 Segmental information

The Company’s business activities fall within a single reportable segment, i.e. real estate development. Hence, there are no additional disclosures to be provided under Ind-AS 108 - Segment information with respect to the single reportable segment, other than those already provided in the financial statements.

The Company is domiciled in India. The Company’s revenue from operations from external customers relate to real estate development in India and all the non-current assets of the Company are located in India.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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.