Puravankara Projects

The Directors are pleased to present their report for the financial
 year ended 31 March 2008.
 
 Financial Performance
 
 For the year ended 31 March 2008 Puravankara Projects Limited recorded
 a net profit of Rs. 2,109,497,769 compared to previous year’s net
 profit of Rs. 1,152,369,835. This represents a growth of 83.06%. A sum
 of Rs. 211,000,000 is proposed to be appropriated towards the General
 Reserve.
 
 Dividend
 
 The Board of Directors has recommended a dividend of Rs.2 per Equity
 share on 213,424,335 Equity shares of Rs. 5 each for the financial year
 ended 31 March 2008.
 
 Initial Public Offer
 
 During the year the Company has decided to come public. 21,406,880
 Equity shares of Rs. 5 each for cash at a price of Rs. 400 per Equity
 share including a share premium of Rs. 395 per Equity share were
 offered to the public through 100% book building. The issue constituted
 10.04% of the fully diluted post issue paid-up capital of the Company.
 The aggregate issue size was Rs. 8,562.75 million. The bid / issue was
 opened on 31 July 2007 and closed on 8 August 2007. Subsequently, the
 prospectus dated 9 August 2007 was filed with the jurisdictional
 Registrar of Companies. The Equity shares of the Company have been
 listed on both NSE and BSE since 30 August 2007.
 
 Directors
 
 Mr. Girish Puravankara has ceased to be a director of the Company with
 effect from 30 October 2007.  Your directors placed on record their
 deep appreciation for the valuable services rendered by him during his
 tenure with the Company.
 
 Mr. Pradeep Guha and Mr. RVS Rao, Directors of the Company liable to
 retire by rotation in the ensuing Annual General Meeting and being
 eligible for re-appointment offer themselves for re-appointment as
 directors.
 
 Directors’ Responsibility Statement
 
 Pursuant to section 217(2AA) of the Act your directors hereby confirm
 that:
 
 i.  in preparation of the annual accounts the applicable accounting
 standards have been followed;
 
 ii. the Directors have selected such accounting policies and applied
 them consistently and made judgements and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company for the year ended 31 March 2008 and of the profit of
 the Company for that period;
 
 iii. the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities; and
 
 iv.  the annual accounts of the Company have been prepared on a ‘going
 concern’ basis.
 
 Auditors
 
 Walker, Chandiok & Co., Chartered Accountants, statutory auditors of
 the Company hold office till the conclusion of the ensuing Annual
 General Meeting and are eligible for re-appointment. The Company has
 received from Walker Chandiok & Co. a consent letter to the effect that
 their appointment, if made would be within the prescribed limits under
 section 224(1B) of the Act.
 
 Subsidiaries
 
 Your Company has received the approval from the Ministry of Corporate
 Affairs, Ministry of Finance, New Delhi, granting an exemption from
 attaching the Audited Balance Sheet, Profit and Loss account, Auditors’
 Report and Directors’ Report of the subsidiaries to the Annual Report
 of your Company, for the financial year ended 31 March 2008.
 
 Your Company has annexed to this report the information regarding each
 subsidiary as regards capital, reserves, total assets, total
 liabilities, details of investment, turnover and profit/loss.
 
 Your Directors hereby inform you that the annual accounts and related
 information of the subsidiaries will be available for inspection at the
 registered office of the Company.
 
 Personnel
 
 As required under the provisions of Section 217(2A) of the Companies
 Act, 1956 readwith the Companies (Particulars of Employees) Rules,
 1975, names and other particulars of the employees are set out in the
 Annexure to this report.
 
 Energy, Technology Absorption and Foreign Exchange
 
 Information in accordance with the provisions of Section 217(1)(e) of
 the Companies Act, 1956 read with Rule 2 of the Companies (Disclosure
 of Particulars in the Report of Board of Directors) Rules, 1988,
 regarding conservation of energy, technology absorption and foreign
 exchange earnings and outgo:
 
 We firmly believe that technology is the genesis of innovative business
 practices, which in turn enable the organisation to carry out business
 effectively and efficiently. Even though the real estate development
 industry is labour intensive, we believe that there is an increasing
 need to mechanise the processes involved in order to minimise costs and
 increase efficiency. We have invested in a mechanised and technological
 construction capability in order to increase the scale of our
 operations and the quality of our products. We have also implemented an
 ERP package based on Oracle software to integrate our various
 operations. We intend to continue this process of investments in
 innovative techniques.
 
 Energy – The Company is in the business of property development and
 does not require large quantities of energy. However, wherever possible
 energy saving efforts are made.
 
 Foreign Exchange - Foreign exchange earned during the year is
 equivalent to Rs. 17,687,575 and the expenditure is equivalent to Rs.
 211,510,243.
 
 Management Discussion and Analysis
 
 A separate section on Management Discussion and Analysis as stipulated
 in clause 49 of the Listing Agreement entered into with the Stock
 Exchanges forms part of this Annual Report.
 
 Corporate Governance
 
 A separate section on Corporate Governance and a certificate from the
 auditors of the Company regarding compliance of the conditions of
 Corporate Governance as stipulated in clause 49 of the Listing
 Agreement entered into with the Stock Exchanges form part of this
 Annual Report.
 
 Acknowledgements
 
 Your Directors express their grateful appreciation for the assistance
 and co-operation received from the financial institutions, banks,
 government authorities, customers, vendors and shareholders during the
 said financial year.  Your Directors would also like to once again
 place on record their appreciation to the employees at all levels, who
 through their dedication, co-operation, support and smart work have
 enabled the Company to move towards achieving its corporate objectives.
 
                         For and on behalf of the Board of Directors
 
 Bangalore                              Ravi Puravankara
 30 April 2008                  Chairman and Managing Director