Parsvnath Developers

1.  Background
 
 PARSVNATH DEVELOPERS LIMITED (the Company) is a Company registered
 under the Companies Act, 1956. It was incorporated on 24 July, 1990.
 The Company is primarily engaged in the business of promotion,
 construction and development of integrated townships, residential &
 commercial complex, multistoried buildings, flats, houses, apartments,
 shopping malls, IT parks, hotels, SEZs etc.
 
 2.  Contineent liabilities
 
                                                   As at        As at
                                                31.03.2008   31.03.2007
                                                 Rs.(000)    Rs.(000)
 
 a.  Claims against the Company not acknowledged as debt:
 
 i. Interest for delay in payment of 
 land premium instalment                           22,105       22,105
 
 ii. Demand for payment of stamp duty              53,139       20,834
 
 iii. Customer complaints pending in 
 consumer courts                                   21,686        2,182
 
 b.  Security / Performance Guarantees 
 provided to various Government authorities     2,528,025    2,285,895
 
 3.  Secured
 
 a.  Term loans of Rs. (000) 2,890,538 (previous year Rs. (000)
 2,818,344) are secured by way of equitable mortgage of project land
 along with construction thereof, hypothecation of construction
 material, work in progress and receivables of the related projects and
 further secured by personal guarantee of the Chairman, Managing
 Director and a Whole time Director of the Company.
 
 b.  Term loans of Rs. (000) 1,638,606 (previous year Rs. (000) Nil)
 are secured by way of equitable mortgage of project land, hypothecation
 of construction material, work in progress and receivables of the
 related projects, pledge of shares of the Company held by the promoters
 and further secured by personal guarantee of the Chairman, Managing
 Director and a Whole time Director of the Company.
 
 c.  Term loans of Rs. (000) 100,000 (previous year Rs. (000) Nil) are
 secured by way of subservient charge on current assets of the Company,
 Pledge of shares of the Company held by the promoters and further
 secured by personal guarantee of the Chairman, Managing Director and a
 Whole time Director of the Company.
 
 d.  Term loans of Rs. (000) 1,923,850 (previous year Rs. (000)
 1,199,304) are secured by way of equitable mortgage of project land and
 secured by personal guarantee of the Chairman, Managing Director and a
 Whole time Director of the Company
 
 e.  Term loans of Rs. (000) 2,112,385 (previous year Rs. (000) Nil)
 are secured by way of pledge of shares of the Company held by the
 promoters and further secured by personal guarantee of the Chairman,
 Managing Director and a Whole time Director of the Company.
 
 f.  Term loans of Rs. (000) 500,000 (previous year Rs. (000) Nil) are
 secured by way of equitable mortgage of project land and receivables of
 the related projects.
 
 g.  Term loans of Rs. (000) 28,125 (previous year Rs. (000) 140,625)
 are secured by way of pari-passu charge of project land along with
 construction thereof.
 
 h. Term loans of Rs. (000) 817,800 (previous year Rs. (000) 263,520 )
 are secured by receivables of the related projects, pledge of shares of
 the Company held by the promoters and further secured by personal
 guarantee of the Chairman, Managing Director and a Whole time Director
 of the Company.
 
 i. Working capital loans of Rs. (000) 887,362 (previous year Rs.
 (000) 239,787) are secured by way of equitable mortgage of project
 land along with construction thereof and first pari-passu charge on
 stock of construction and building materials, work-in-progress,
 finished flats and book receivables for various projects, except those
 specifically charged to other banks/financial institutions and further
 secured by personal guarantee of Chairman, Managing Director and Whole
 time Director of the Company.
 
 j. Working capital loans of Rs. (000) 2,937,678 (Previous year Rs.
 (000) 2,177,533) are secured by way of pledge of fixed deposit with
 banks and to the extent Rs. (000) Nil (Previous year Rs. (000)
 175,329) are secured by way of pledge of investments.
 
 k.  Vehicle/Equipment loans are secured by way of hypothecation of
 specific vehicle/equipments financed.
 
 l. Debentures are secured by way of mortgage of immoveable property at
 Ahmedabad and further secured by personal guarantee of the Chairman.
 
 4.  Initial Public offer
 
 a. During the previous year, the Company had issued and allotted
 36,325,800 equity shares (including green shoe option of 3,087,800
 equity shares) of Rs. 10/- each at a premium of Rs. 290/- per equity
 share through an Initial Public Offering (IPO).
 
 5.  Advances recoverable in cash or kind or for value to be received
 include:
 
 a.  Share application money paid to Parsvnath SEZ Limited, a subsidiary
 company - Rs. (000) 174,750 (Previous year Rs. Nil)
 
 b.  Amounts due from private companies (other than subsidiary
 companies) In which any director of the Company is a director or member
 - Rs. (000) 233,202 (Previous year Rs. (000) 154,440).
 
 6.  Debtors include amount due from Parsvnath Landmark Developers
 Private Limited, a subsidiary Company - Rs. (000) 64,654 (Previous
 year Rs. ( 000) 85,282).
 
 7.  Employee benefits
 
 In accordance with the revised Accounting Standard 15 issued by the
 Institute of Chartered Accountants of India, the requisite disclosures
 are as follows:
 
 a.  Defined Contribution Plan
 
 The Companys contribution to Provident Fund is deposited with the
 Employees Provident Fund Organisation (EPFO). These are charged to the
 profit and loss account when contribution to the fund is due.
 
 b.  Defined Benefit Plans
 
 i.  Gratuity plan
 
 The gratuity liability arises on retirement, withdrawal, resignation
 and death of an employee. The aforesaid liability is calculated on the
 basis of actuarial valuation as per the projected unit credit method.
 
 ii.  Long term compensated absences plan
 
 The earned leave liability arises as and when services are performed by
 an employee. The aforesaid liability is calculated on the basis of
 actuarial valuation as per projected unit credit method.
 
 Actuarial gain and losses arising from experience adjustment and
 effects of changes in actuarial assumptions are immediately recognised
 in the statement of Profit & Loss Account as income or expense.
 
 8.  Segment information
 
 a.  Business segments:
 
 Based on similarity of activities/products, risk and reward structure,
 organisation structure and internal reporting systems, the Company has
 structured Its operations into the following segments:
 
 Self owned projects: Promotion, construction, development and sale of
 integrated townships, residential and commercial property, etc., owned
 by the Company or for which the Company has development rights.
 
 BOT projects: Construction and development of licensed properties on
 Build, Operate and Transfer (BOT) basis.
 
 Segment revenue and expenses include amounts, which can be directly
 Identifiable to the segment and allocable on a reasonable basis.
 Segment assets include all operating assets used by the segment and
 consist primarily of fixed assets, inventories and debtors. Segment
 liabilities include all operating liabilities and consist primarily of
 creditors, advances/deposits from concessionaires and statutory
 liabilities.
 
 9.  The Company has no outstanding derivatives or foreign currency
 exposure as at the end of the year.
 
 10.  Previous years figures have been regrouped where necessary to
 conform to current years presentation.