1.  Corporate Information
 
 Sobha Developers Limited (''Company'' or ''SDL'') was incorporated on
 August 7, 1995. SDL is a leading real estate developer engaged in the
 business of construction, development, sale, management and operation
 of all or any part of townships, housing projects, commercial premises
 and other related activities. The Company is also engaged in
 manufacturing activities related to interiors, glazing and metal works
 and concrete products which also provides backward integration to SDL''s
 turnkey projects.
 
 2.  Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the accounting standards notified by Companies
 (Accounting Standards) Rules 2006, (as amended) and the relevant
 provisions of the Companies Act, 1956 (the Act). The financial
 statements have been prepared under the historical cost convention on
 an accrual basis in accordance with accounting principles generally
 accepted in India. The accounting policies have been consistently
 applied by the Company and are consistent with those used in previous
 year, except for the change in accounting policy explained in note 2.1
 (a) below.
 
 1.  On April 13, 2005, Karnataka Industrial Areas Development Board
 (''KIADB'') allotted land to the Company on a lease cum sale basis until
 December 17, 2010 (further extended till September 29, 2012), to be
 sold to the Company at the end of lease period upon fulfillment of
 certain conditions. The lease has been registered in favour of the
 Company. The Company is confident of fulfilling the conditions. 
 Accordingly, the initial and subsequent lease payments in this regard 
 Have been capitalised as leasehold land.
 
 2.  Amount of borrowing cost aggregating Rs85 million (Previous year -
 Rs30 million) incurred during the year, is included under capital work
 in progress (CWIP). The amount of borrowing cost shown as other
 adjustment reflects the accumulated borrowing cost transferred from
 CWIP on capitalisation.
 
 * Advances for land though unsecured, are considered good as the
 advances have been given based on arrangements/ memorandum of
 understanding executed by the Company and the Company/ seller/
 intermediary is in the course of obtaining clear and marketable title,
 free from all encumbrances, including for certain properties under
 litigation.
 
 # Excise duty on sales amounting to Rs55.11 million (Previous year -
 Rs32.36 million) has been reduced from sales in statement of profit and
 loss and excise duty on decrease in inventory of finished goods
 amounting to Rs0.55 million (Previous year - Rs0.53 million has been
 considered as (income)/expense in note 24 of financial statements.
 
 3. Related party disclosure 
 
 a. List of related parties
 
 Subsidiaries
 
 Direct Subsidiaries
 
 Sobha City
 
 Sobha Developers (Pune) Private Limited
 
 [With effect from July 1, 2011 Sobha
 
 Developers (Pune) Private Limited has ceased to be an associate of the
 Company and has become a subsidiary of the Company.]
 
 Sobha Assets Private Limited [Subsidiary incorporated on March 13,
 2012]
 
 Subsidiaries of Sobha City
 
 Vayaloor Properties Private Limited
 
 Vayaloor Builders Private Limited
 
 Vayaloor Developers Private Limited
 
 Vayaloor Real Estate Private Limited
 
 Vayaloor Realtors Private Limited
 
 Valasai Vettikadu Realtors Private Limited
 
 Key Management Personnel
 
 Mr. P. N. C. Menon
 
 Mr. Ravi Menon
 
 Mr. J. C. Sharma
 
 Mr. P. Ramakrishnan
 
 Mr. S. Baaskaran
 
 Mr. Kishore Kayarat
 
 
 Relatives of key management personnel
 
 Mrs. Sobha Menon [a key shareholder, refer note 3 (d)]
 
 Mrs. Sudha Menon
 
 Mr. P. N. Haridas
 
 Other Related Parties [Enterprise owned or significantly influenced by
 key management personnel]
 
 Al Barakah Financial Services Limited
 
 Allapuzha Fine Real Estate Private Limited
 
 Architectural Metal Works FZCO
 
 Bikasa Properties Private Limited
 
 Bikasa Realtors Private Limited
 
 Chikmangaloor Realtors Private Limited
 
 Chikmangaloor Properties Private Limited
 
 Cochin Cyber City Private Limited
 
 Cochin Cyber Golden Properties Private Limited
 
 Cochin Cyber Value Added Properties Private Limited
 
 Cochin Super City Developers Private Limited
 
 Daram Cyber Developers Private Limited
 
 Daram Cyber Properties Private Limited
 
 Daram Land Real Estate Private Limited
 
 Greater Cochin Cyber City Private Limited
 
 Greater Cochin Developers Private Limited
 
 Greater Cochin Properties Private Limited
 
 Greater Cochin Realtors Private Limited
 
 HBR Consultants Private Limited
 
 Hill and Menon Securities Private Limited
 
 Kilai Builders Private Limited
 
 Kilai Properties Private Limited
 
 Kilai Super Developers Private Limited
 
 Kuthavakkam Developers Private Limited
 
 Kuthavakkam Properties Private Limited
 
 Mannur Real Estate Private Limited
 
 Mapedu Real Estates Private Limited
 
 Mapedu Realtors Private Limited
 
 Megatech Software Private Limited
 
 Moolamcode Traders Private Limited
 
 Oman Builders Private Limited.
 
 Padmalochana Enterprises Private Limited
 
 Pallavur Projects Private Limited
 
 Perambakkam Builders Private Limited
 
 PNC Technologies Private Limited
 
 Punkunnam Builders and Developers Private Limited
 
 Puzhakkal Developers Private Limited
 
 Red Lotus Realtors Private Limited
 
 Royal Interiors Private Limited
 
 Rusoh Fine Builders Private Limited
 
 Rusoh Marina Properties Private Limited
 
 Rusoh Modern Properties Private Limited
 
 SBG Housing Private Limited
 
 Sengadu Builders Private Limited
 
 Sengadu Developers Private Limited
 
 Sengadu Properties Private Limited
 
 Services and Trading Co. LLC
 
 Sobha Aviation and Engineering Services Private Limited
 
 Sobha Contracting LLC (Dubai)
 
 Sobha Electro Mechanical Private Limited
 
 Sobha Glazing & Metal Works Private Limited
 
 Sobha Innercity Technopolis Private Limited
 
 Sobha Interiors Private Limited
 
 Sobha Jewellery Private Limited
 
 Sobha Maple Tree Developers Private Limited
 
 Sobha Projects & Trade Private Limited
 
 Sobha Puravankara Aviation Private Limited
 
 Sobha Renaissance Information Technology Private Limited
 
 Sobha Space Private Limited
 
 Sobha Technocity Private Limited
 
 Sobha Ventures Limited
 
 Sri Durga Devi Property Management Private Limited
 
 Sri Kanakadurga Property Developers Private Limited
 
 Sri Kurumba Trust
 
 Sunbeam Projects Private Limited
 
 Technobuild Developers Private Limited
 
 Thakazhi Developers Private Limited
 
 Thakazhi Realtors Private Limited
 
 Tirur Cyber City Developers Private Limited
 
 Tirur Cyber Real Estates Private Limited
 
 4. Leases
 
 a.  Finance lease: Company as lessee
 
 The Company has acquired plant and machinery and scaffolding items
 under finance lease with the respective underlying assets as security.
 These leases have an average life of 3 to 5 years with renewal option
 included in the contract. Minimum lease payments (MLP) outstanding in
 respect of these assets are as follows (Figures in brackets are in
 respect of the previous year) :
 
 b.  Operating lease: Company as lessee
 
 Operating lease obligations: The Company has taken office, other
 facilities and other equipments under cancelable and non-cancelable
 operating leases, which are renewable on a periodic basis with
 escalation as per agreement.
 
 The Company does not expect any reimbursement in respect of the above
 contingent liability and it is not practiable to estimate the timings
 of the cash outflows, if any, in respect of matters above pending
 resolution of the arbitration/ appellate proceedings and it is not
 probable that an outflow of resources will be required to settle the
 above obligations/claims.
 
 * During the year ended March 31, 2011, a customer has initiated
 arbitration proceedings against the Company for Rs 846.72 million for
 breach of contractual obligation for which the Company has filed a
 statement of objection and counter claim for non payment. Based on
 legal advise obtained by the management the Company is confident of
 recovering full dues. Pending settlement, the claims made against the
 Company have been disclosed as contingent liability.
 
 Note:
 
 The Company is also involved in certain litigation for lands acquired
 by it for construction purposes, either through joint development
 agreements or through outright purchases. These cases are pending with
 various courts and are scheduled for hearings. After considering the
 circumstances and legal advice received, management believes that these
 cases will not adversely effect its financial statements.
 
 ii.  Commitments
 
 (a) The estimated amount of contracts, net of advances remaining to be
 executed on capital account is Rs33.90 million (Previous year-Rs227.16
 million)
 
 (b) At March 31, 2012, the Company has given Rs13,351.87 million
 (Previous year: Rs17,750.77 million) as advances for purchase of land.
 Under the agreements executed with the land owners, the Company is
 required to make further payments under the agreements based on the
 terms/ milestones stipulated under the agreement.
 
 (c) The Company has entered into joint development agreements with
 owners of land for its construction and development. Under the
 agreements the Company is required to pay deposits to the owners of the
 land and share in area/ revenue from such development in exchange of
 undivided share in land as stipulated under the agreements. As of March
 31, 2012 the Company has paid Rs2,985.67 million (Previous year-
 Rs2,550.58 million) as refundable deposit against the joint development
 agreements.
 
 (d) The Company has entered into an aircraft usage agreement with a
 party wherein the Company along with certain other parties has
 committed minimum usage of aircraft.
 
 (e) For commitments relating to lease arrangements, please refer note
 29
 
 5.  Employee benefits
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary (last drawn salary) for each completed year of service
 subject to a maximum of Rs1,000,000. The following tables summarise the
 components of net benefit expense recognised in the statement of profit
 and loss and the funded status and amounts recognised in the balance
 sheet for gratuity benefit.
 
 Notes:
 
 i.  The Company expects to contribute Rs20.60 million (Previous year -
 Rs5.00 million) to the trust towards gratuity fund in 2012-13.
 
 ii.  The estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 several factors such as supply and demand factor in the employment
 market. Employee turnover varies based on various age groups.
 
 6.  Segment reporting
 
 As the Company operates on a backward integration model and its
 business activity primarily falls within a single business segment
 which constitutes real estate development, there are no additional
 disclosures to be provided under Accounting Standard 17 ''Segment
 Reporting''.  The Company operates primarily in India and there is no
 other significant geographical segment.
 
 7.  Based on the information available with the Company, there are no
 suppliers who are registered as micro, small or medium enterprises
 under The Micro, Small and Medium Enterprises Development Act, 2006 as
 at March 31, 2012.
 
 8.  Prior year comparatives
 
 Till the year ended March 31, 2011, the Company was using pre-revised
 Schedule VI to the Companies Act 1956, for preparation and presentation
 of its financial statements. During the year ended March 31, 2012, the
 revised Schedule VI notified under the Companies Act 1956, has become
 applicable to the Company. The Company has reclassified previous year
 figures to conform to this year''s classification. The adoption of
 revised Schedule VI does not impact recognition and measurement
 principles followed by the Company for preparation of financial
 statements. However, it significantly impacts presentation and
 disclosures made in the financial statements, particularly presentation
 of balance sheet.