FINAL REPORT ON ACCOUNTS TRAINEE BY

Parsvnath Developers ltd.(Committed to build a better world) GUIDED BYProf. J.P. Singh (Faculty Guide) Mr. Deepak Aggarwal (Company Guide)

SUBMITTED BY: PARVESH SINGHAL Enroll. No.: 04250401710 Summer Internship Program 2011 The BBA Program 2010-2013 JIMS College, ROHINI SEC-5 DELHI

CERTIFICATE This is to certify that the Final Report on accounts Trainee with special reference to the company PARSVNATH DEVELOPERS submitted by PARVESH SINGHAL having Enrollment No. as 04250401710 during Semester-II of the BBA Program (Class of 2010-13) embodies original work done by him. His work has been satisfactory.

Mr. Deepak Aggarwal (Company Guide)

Prof.J.P. Singh (Faculty Guide)

ACKNOWLEDGEMENTMy dueacknowledgement to all those people who have helped me during my SIP. This includes my respected Company Guide Mr. Deepak, Faculty Guide Prof.J.P.Singh, JIMS faculty, Office Personals, and Clients. My SIP would not have been possible without the guidance, support and encouragement provided by faculties and company people whose belief and confidence in me have enabled me to do this SIP successfully. My special recognition to JIMS COLLEGE for allotting this task to me which opened a new door of knowledge for me. My special thanks to Mr. Deepak and all the people at parsvnath for their help in developing new ideas and skills in me. My special remembrance to all the faculty members at JIMS ROHINI who have encouraged me to be a continuous learner.

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I am very grateful to our team at Parsvnath who always offered a helping hand all my way through. And above all, I thank the Almighty without whose blessings, nothing would have been possible

PARVESH SINGHAL EnrollmentNo.: 04250401710 JIMS COLLEGE

(Incorporated on July 24, 1990 under the Companies Act, 1956. The registered office of our Company was changed from G-2, Arunachal Building, 19, Barakhamba Road, New Delhi 110 001, India to the current registered office from March 1, 2004.) Registered and Corporate Office : 6 Floor, Arunachal Building, 19, Barakhamba Road, New Delhi 110 001, India. th Tel: +91 11 2331 0198. Fax: +91 11 2331 5400. : Mr. V. Mohan, Company Secretary and Compliance Officer. Contact Person Tel: +91 11 2335 0120. E-mail: ipo@parsvnath.com. Website: www.parsvnath.com. PUBLIC ISSUE OF UP TO 33,238,000 EQUITY SHARES OF Rs. 10 EACH (EQUITY SHARES) FOR CASH PER PREMIUM OF RS. [ ] AT A EQUITY SHARE AND AT A PRICE OF RS. [ EQUITY SHARE AGGREGATING RS. [ ] PER ] MILLION (THE ISSUE), BY PARSVNATH DEVELOPERS LIMITED (PDL, THE COMPANY OR THE ISSUER). THERE WILL ALSO BE A GREEN SHOE OPTION OF UP TO 30,87,800 EQUITY SHARES TO BE OFFERED BY PARASNATH AND ASSOCIATES PRIVATE LIMITED, ONE OF OUR PROMOTERS, FOR CASH AT A PREMIUM OF RS. [ EQUITY SHARE AND AT A PRICEPER RS. [ ] PER ] OF EQUITY SHARE AGGREGATING RS. [ THE ISSUE AND ] MILLION. THE GREEN SHOE OPTION, IF EXERCISED IN FULL, WILL AGGREGATE 36,325,800 EQUITY SHARES AMOUNTING TO RS. [ ] MILLION. THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF UP TO 33,038,000 EQUITY SHARES (THE NET ISSUE) AND A RESERVATION OF UP TO 200,000 EQUITY SHARES FOR SUBSCRIPTION BY EMPLOYEES (AS DEFINED HEREIN) (THE EMPLOYEE RESERVATION PORTION), AT THE ISSUE PRICE. THE ISSUE WILL CONSTITUTE 18.30% OF THE FULLY DILUTED POST-ISSUE EQUITY SHARE CAPITAL OF OUR COMPANY ASSUMING THAT THE GREEN SHOE OPTION IS NOT EXERCISED AND 19.67% ASSUMING THAT THE GREEN SHOE OPTION IS EXERCISED IN FULL. PRICE BAND: RS. 250 TO RS. 300 PER EQUITY SHARE OF FACE VALUE RS. 10 THE FACE VALUE OF EQUITY SHARE IS RS. 10 AND THE FLOOR PRICE IS 25 TIMES OF THE FACE VALUE AND THE CAP PRICE IS 30 TIMES OF THE FACE VALUE In case of revision in the Price Band, the Bidding/Issue Period will be extended for three additional working days after revision of the Price Band subject to the Bidding/Issue Period not exceeding 10 working days. Any revision in the Price Band and the revised Bidding/Issue Period, if applicable, will be widely disseminated by notification to Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE), by issuing a press release, and also by indicating the change on the website of the Book Running Lead Managers and at the terminals of the Syndicate. In terms of Rule 19(2)(b) of the SCRR, this being an Issue for less than 25% of the postIssue capital, the Issue is being made through the 100% Book Building Process wherein at least 60% of the Net Issue shall be allocated on a proportionate basis to QIB Bidders, out of which 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above Issue price. If at least 60% of the Net Issue cannot be allocated to QIB Bidders, then the entire application money will be refunded forthwith. Further, up to 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Further, up to 200,000 Equity Shares shall be available for allocation on a proportionate basis to the Employees, subject to valid Bids being received at or above the Issue Price. The Company has not opted for grading of the Issue. RISK IN RELATION TO FIRST ISSUE This being the first issue of the Equity Shares of the Company, there has been no formal market for the Equity Shares of the Company. The face value of the Equity Share is Rs. 10 and the Issue Price of the face value. The Issue Price (as determined by the Company in consultation with [ ]times is the Book Running Lead Managers, on the basis of assessment of market demand for the Equity Shares by way of Book Building) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active and/or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing. GENERAL RISKS Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this Issue. For taking an investment decision, investors must rely on their own examination of the Company and the Issue including the risks involved. The Equity Shares offered in the Issue have not been recommended or approved by the Securities and Exchange Board of India (SEBI), nor does SEBI guarantee the accuracy or adequacy of this Red Herring Prospectus. Specific attention of the investors is invited to the section titled Risk Factors beginning on page x of this Red Herring Prospectus. ISSUERS ABSOLUTE RESPONSIBILITY The Issuer having made all reasonable inquiries, accepts responsibility for and confirms that this Red Herring Prospectus contains all information with regard to the Issuer and the Issue, which is material in the context of the Issue, that the information contained in this Red Herring Prospectus is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Red Herring Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. LISTING The Equity Shares offered through this Red Herring Prospectus are proposed to be listed on the BSE and the NSE. We have received inprinciple approval from the BSE and the NSE for the listing of our Equity Shares pursuant to letters dated September 14, 2006 and September 13, 2006 respectively. National Stock Exchange of India Limited shall be the Designated Stock Exchange. REGISTRAR TO THE ISSUE BOOK RUNNING LEAD MANAGERS

Parsvnath Developers Limited

DSP MERRILL JM MORGAN STANLEY ENAM FINANCIAL INTIME SPECTRUM LYNCH LIMITED PRIVATE LIMITED CONSULTANTS PVT. LTD. REGISTRY LIMITED Mafatlal Centre, 10th Floor, 141, 801/ 802, Dalamal Towers, Maker Chambers III, C-13, Pannalal Silk Mills Compound, Nariman Point Nariman Point, Nariman Point, L B S Marg, Bhandup (W), Mumbai 400 021, India Mumbai 400 078, India Mumbai - 400 021, India. Mumbai - 400 021, India. Tel: +91 22 2262 1071 Tel: +91 22 2596 0320 Tel: + 91 22 6630 3030 Tel : +91 22 6638 1800 Fax: +91 22 2262 1187 Fax: +91 22 2596 0329 Fax: +91 22 2284 6824 Fax: + 91 22 2204 7185 Email: E-mail:pdl.ipo@jmmorganstanley.com pdl_ipo@ml.com Email: pdl-ipo@intimespectrum.com E-mail: pdl.ipo@enam.com Website: www.dspml.com Website: www.jmmorganstanley.com Website: www.enam.com Website: www.intimespectrum.com

INDEX

TABLE CONTENTS

OFPAGE NUMBER

SUMMARY ............................................................................................................................................. SECTION I INTRODUCTION INDUSTRY OVERVIEW .....................................................................................................................1... OUR BUSINESS ....................................................................................................................................8.. SECTION II COMPANY PROFILE ...................................................................................... HISTORY AND CERTAIN CORPORATE MATTERS ....................................................................26..... OUR MANAGEMENT ........................................................................................................................39..... OUR PROMOTERS AND PROMOTER COMPANIES ...................................................................53...... SECTION III FINANCIAL INFORMATION ...................................................................................... FINANCIAL STATEMENTS ..............................................................................................................57...... MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ......................................................................................................................................58.... SECTION IV ANNEXURE ......................................................................................................................

SUMMARY This is only a summary and does not contain all information that you should consider before investing in our Equity Shares. You should read the entire Red Herring Prospectus, including the information on Risk Factors and our financial statements and related notes beginning on page x and page Red Herring Prospectus, before deciding to invest in our Equity of this 162 Shares. Overview We are one of the leading real estate development companies in India with operations in 41 cities and 14 states of India. As O of ctober 15, 2006 we directly owned or held development rights for an estimated 108.64 million square feet of saleable area. We have with the real estate sector for more than two decades. We commenced business as a marketing company for real been projects. In estate associated by us. 1990,the real we with began We have diversified our portfolio of real estate development projects. Presently we have acquired land or development estate constructing rights in business office space connection residentialour since technology parks on commercial land acquired by us or in respect of which we have development rights. In addition, we and a with estate the real completed 17 projects including nine housing projects and eight commercial complexes. Further, we have obtained in have incorporation complete development projects from in approvals and principle 1990 and GoI for the development of nine SEZ projects. The following table details the revenue from the metro of most 20 now categories of our aforesaid of projects in our revenue during last four fiscal years and the three months ended June 30, station and integrated our projects 2006. months Promoters Three Fiscal Year 25 townships, are have ended been residential 27 constructed associated June 30, 2006 2006 2005 2004 2003 projects. commercial internally We also complexes Rs. in As % of Rs. in As % of Rs. in As % of Rs. in As % of Rs. in As % of intend including toMillion Income Million Income Million Income Million Income Million Income from from from from from construct shopping Operations Operations Operations Operations Operations 14 malls,hotels (in%) (in%) (in%) (in%) (in%) and four multiplexes, Residential information projects 1,217.76 49.32 4,950.52 76.89 2,805.17 92.52 906.79 80.86 565.58 82.21 Malls, multiplexes, commercial properties 42.85 1.74 542.27 8.42 126.82 4.18 84.31 7.52 35.13 5.11 Integrated townships 1,180.53 47.82 822.07 12.77 Nil Nil Nil Nil Nil Nil Lease Rentals 9.24 0.37 22.42 0.35 Nil Nil Nil Nil Nil Nil Contract revenues 18.31 0.75 101.04 1.57 100.08 3.30 130.37 11.62 87.28 12.68 Total 2,468.69 100 6,438.32 100 3,032.07 100 1,121.47 100 687.99 100 We have technology initiated and information technology. parks in efforts to order to diversify our capitalize on project the growing portfolio by real estate entering development construction opportunities and offered by developments sectors such of hotels and as tourism information

INDUSTRY OVERVIEWThe other information information contained therein has been obtained from sources generally believed to be reliable, but their accuracy, person this in completeness and underlying assumptions are not guaranteed and their reliability cannot be assured and accordingly, connected is section investment decisions should not be based on such information. with derived the THE IssueINDIAN ECONOMY has from verified the various this India is information. of 1,091 government worlds in the year ended March 31, 2005, with a GDP in nominal terms estimated to be US$ 731 billion. (Source: www.worldbank.org) Industry million publications largest sourcesas Government of India initiated a series of major macroeconomic and structural reforms to promote economic and peoplethe democracy In and 1991, other publications at March stability and growth. The key reforms were focused on implementing fundamental economic reforms, deregulating industry, public in terms of accelerating generally 31, 2005. sources. population, In part as foreign state Indias Accordin we Neither that with factor cost) growth of 6.9% over the year ended March 31, 2005 and growth of 120% from the year ended March 31, 1991, a result of investment the any g to the in the following table: nor Central illustrated as the and World pushing Statistical As of, and for the year ended March 31, reform forward Bank, Organisation a program, a privatisation India was 1991 1995 2000 2003 2004 2005 estimating Indias program for the GDP at factor cost (Rs. millions) 6,928,710 8,380,310 11,483,670 13,183,620 14,305,480 15,294,080 population Real economy disinvestment twelfth Real has GDP (per capita, Rs.) 8,258 8,209 11,369 12,496 13,332 14,018 in largest various recentlyCSO public sector Source: economy registered operations. in With the this significant world country the growth, and growth, economy andthe business centres continue to develop in urban centres (particularly smaller urban centres), we expect and the with overall population to become more urbanised, and the importance of transportation connectivity is expected to Indias development prospect of average magnify.the Indian economy continues its growth, its middle class is also growing, with increased disposable income. Moreover, as of a further real GDP table The supporting, growth in (at into income below Indian scalable higher the brackets. indicates Classification infrastructure Income class No. of households in 000 Annual growth rate (%) economy, that become have over transportati INR 000 USD 1995-96 2001-02 2005-06 2009-10 1995-96 2001-02 2005-06 time a increasingly p.a. to to to on and high 2001-02 2005-06 2009-10 important. p.a. information proportion as Moreover, 229,890 5 20 53 141 25.8 27.9 28.1 Total 165,877 188,193 204,282 221,945 N.A. N.A. N.A. Source: NCAERs report - The Great Indian Middle Class 2004-05 (1) Forecast data In particular, the higher income groups have grown at a greater rate in urban centres than in rural areas. The following show tablesthe development of the Indian middle and upper classes in both urban and rural areas in the past and as forecast for near future. the Classification Income class No. of households in 000 Annual Growth 1995-01 (%) 1995-96 2001-02 INR 000 p.a. USD p.a. Urban Rural Urban Rural Urban Rural Deprived 229,890 4 1 17 2 26 24.7 Total 46,701 118,175 53,486 134,705 Source: NCAERs report - The Great Indian Middle Class 2004-05

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Income class No. of households in 000 Annual Growth 2005-06 to 2009-10 1 ) 2009-10 (%) (1 ) ( 2005-06 ) (1 INR 000 p.a. USD p.a. Urban Rural Urban Rural Urban Rural Deprived 229,890 46 6 126 16 28.2 27.4 Total 60,839 143,441 69,173 152,745 Source: NCAERs report - The Great Indian Middle Class 2004-05 (1) Forecast data The growth of the Indian economy and the growth of the Indian middle class has contributed to increased demand for units. housing Further, it has also resulted increased consumerism which in turn has created higher demand for shopping mall multiplexes and estate sector in etc. India. therefore, OF REAL ESTATE SECTOR IN INDIA OVERVIEW the The term real estate connotes land, including the air above it and the ground below it, and any building or structures on it. covers aforesaid housing, commercial offices, trading spaces such as theatres, hotels and restaurants, retail outlets, residential It growth such as factories and government buildings. Real estate involves the purchase, sale and development of buildings of industrial the Indian residential land, also. economy and nonhas been residential Real estate is a major employment driver, being the second largest employer, next only to agriculture. This is because of chain acting of backward the buildings.as and forward linkages that the sector has with other sectors of the economy. About 250 ancillary such as the growth The industries in this cement, of driver activities for estate brick, to sector real steel, has the overalla sector has the capacity to grow at 14% and generate 3.2 million new jobs over the next 10 Indias multiplier timber, real (Source: INTEGRATED estate DATABASES INDIA LIMITED) years. GDP is effect building and sector The Indian real estate sector can be divided into the organised and unorganised segments, with the unorganised meagre the capacity material encompass accounting for over 70% of the housing units constructed. The organised segment comprises private real estate segment are 1% generate to housing etc. government or government affiliated entities. the and developers 3against income dependentas and The major 6% the real high as of five on construction Limited, in players developing times. estate sector Unitech the countries. A Contribution industry. Limited,the organised If of 3 unit housing Ansal sector are economy in and real increase Properties Hudco, at grows expenditure and state the rate of Infrastructure housing 10%, the Limited, bodies housing the Hiranandani and group, the private Raheja group real estate and Gesco. developer The s like DLF Universal

Classification

industry is highly fragmented with most of the real estate developers having a city-specific or region specific presence. Theunorganised sector Real estate developers in the organised sector are actively considering townships, multiplexes and shopping malls to comprises their business prospects. Regional real estate players characterise the industry, as there are no strong national players in drive small the sector. Some of the key developers are Parsvanath Developers Limited, DLF, Unitech, Ansals and the Rahejas. Apart developing residential/commercial complexes, some established developers have diversified into hotels. For instance, from builders and M in umbai; contractors, association with Marriott. the who Hiranandani Most established players in the industry fund their projects through the promoters contribution and intra-group loans. primarily developers ability to sell a large portion of its project in advance, enables the projects to be largely self-financed, even at Thegroup constructhas forayed on a an early stage. The developers reputation/land title also plays an important in influencing the selling price of the houses into projects. hotel Secondary information on the financials of developers is not available. However, according to industry sources, the margins contract a residential property vary, depending upon the location of the project, the amenities provided and the developers through with its on basis title. While reputation/ amenities have an impact on the construction costs, the location of the project affects land costs and selling hotels individuals. prices. Rodas; INDUSTRY CHARACTERISTICS while the The real estate industry has the following Rahejas characteristics: Capital Structure: Construction activities are often funded by the client who may make cash advances at different have of stages construction. established Higher margin in commercial properties: Generally, a commercial project yields higher operating profit margins than hotels in a residential project. Leasing is an option for commercial properties: Unlike the residential properties (which are sold outright), space is either leased or sold outright. Under the leasing option, the lease rentals received from tenants form a source commercial recurring cash flow for the developer. This apart, the property rights remains with the developer, enabling the property of be disposed of subsequently, if to required. Contingent Liabilities: Due to project based work, real estate companies often carry substantial contingent liabilities in form of guarantees in order to comply with specific client the requirements. Development Risks: Profitability of each project is subject to risks of mis-pricing, adverse conditions, geological management of specification changes and the outcome of claims on competitions. As per AS-7 of the Indian conditions, standards, construction companies are required to recognize all losses incurred and foreseeable in the respective accounting period. accounting Credit Risk: The strength of clients on whom the receivables are being generated is important. Real estate usually secure project advances from clients to keep them committed to the developers projects. Approvals required for real estate projects: A number of approvals are required for real estate projects from statutory authorities. For further details, refer to the section titled Government and Other Approvals beginning on regulatory/ of this Red Herring page 245 Prospectus. CURRENT SCENARIO & FUTURE OUTLOOK The real estate sector in India has assumed growing importance with the liberalisation of the economy. Developments in the real estate sector as a whole are being driven by: Demand for more housing units in cities and towns because of growing urbanisation of Indian population, middle class, increased disposable income, easy availability of housing finance at cheaper rate and tax burgeoning incentives; Demand for office premises by growing IT industry especially BPO;

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Demand for shopping malls by growing retail segment: Demand for multiplexes by evolving entertainment sector; and Demand for hotels/resorts by growing tourism industry. Housing units India million units. continues to face prime an The thereacute boom localised to the organised urban housing segment, extending to relatively prosperous rural belts. The is a movers that of 2001 shortage census are leading of 1350 indicates an of to volume and higher income categories, decline in EMIs due to the fall in housing finance rates and availability of tax incentives million) by urbanisation housing loans are pushing up the requirement for housing units in cities and ttowns. Five Year Plan (2002-07)) growth in h housing This (Source: 10 on 2021. rate of units.housing the Earlier on growing 27.78% are Based segment multiple is less than 4.5 times. The multiple has come down mainly because income levels have gone up, while tax rates the cost is trend2001 of which the fallen. have population to of the urbanisation expected16-18%, has halved and fuelled demand for housing units. census, and growth between With houses to coupled 41 go the up urbanisation. less tax Another major contributing factor to boost the growth of residential housing property is income tax incentives on usedinto the with % housing Further, and loans. housing in like be factors next 20,000 shortage 20 per annum on principal repayment. of Rs. more Currently, multiple faster years is income tax All these aforesaid factors acted as the growth booster for (Source: INTEGRATED DATABASES INDIA the real estate of growth on in (based estimated a LIMITED). there is in deduction sector nearly incomes population at available more is 12.7 twenty The the middle money the below: onthe in times table growing left interest the ar demand Ye Housing Loan Disbursement (Rs. million) Rate of growth (%) with component annual for 1999-00 197,233.8 people Rs. (up to income housing/ to 150,000) 2000-01 224,250.9 13.7 of the dwelling spend. on housing buyers, units 2001-02 293,592.9 30.9 The be loans and whereas can 2002-03 516,727.0 76.0 interest a rebate today gauged rate, the Source: National Housing Bank (NHB) the from which increase The tenth five year plan estimated a shortage of 22.4 million dwelling units. Thus, in the coming 15-20 years, 80-90 million earlier housing units will have to be constructed with a majority catering to the low-income group. The investment required for in the used to constructing these and related infrastructure in these period would, thus, be of the order of $ 666 billion to $888 billion growth roughly $ 33 billion to $ 44 billion per year. INTEGRATED DATABASES INDIA LIMITED) (Source: at be of housing Office Premises by IT industry loan Another major booster for the growth of real estate is growing demand for office premises by booming IT industry which the BPO sector. It is expected that India would continue to be one of the preferred destinations for setting up back especially is operations. shown office to the overall investment in real estate activities. Consequently, the growth in As per industry estimate, Indias IT/ITES exports increased at a CAGR of 37% to touch $12.5 billion, and are likely to the further at sector will 32% to touch $ 51 billion by 2008-09. The highest growth rates are expected in the ITES/BPO segment. increase a CAGR of This growth in IT/ITES is likely to translate into real estate investments of Rs. 25 billion by 2007-08 (Source: CRISINFAC translate into CONSTRUCTION REVIEW: SEPTEMBER 2004) substantially higher 5 demand for commercial space, adding

Shopping Malls Over the previous 10 years, urbanisation has increased at a CAGR of 2%. The boom witnesses in the service sector in India inthe recent years, has not only pushed up the disposable income of the urban populace, but has also made them more conscious. This increase in disposable income coupled with more brand consciousness results in higher sale of branded brand With organised retailing accounting for nearly 17% of branded sales, it is poised for sharp growth (Source: goods. CRISINFAC future. in the near CONSTRUCTION REVIEW: SEPTEMBER 2004) In 2003, industry is expected to grow at a CAGR of a little over 6% over the next 5 years. Moreover, the proportion of organised organised over 5%. retail sales to total sales is also expected to increase to CRISINFAC CONSTRUCTION REVIEW: SEPTEMBER 2004) retail (Source: Thus, sales space, the fuelling strong growth in mall development activities. As per industry estimates, mall development activity across accounted in the rising of Rs. 55 billion is expected to take place over the next 5 years. It is further expected that while mall tune India for activity was development initially restricted to a few major cities like Mumbai and Gurgaon it will now onwards extend to other cities like incomePune and Ahmedabad thus causing a boom of real estate activities in those CONSTRUCTION roughly (Source: CRISINFAC Surat, level andSEPTEMBER 2004) 2% of the REVIEW: cities. changing total sales Multiplex Cinemas outlookthe of Another towards retail by the As growthfollowing factors: branded sector. booster for goods per Multiplexes typically have 250-400 seats per screen as against 800-1000 seats in a single screen theatre which real estate owners additional flexibility, enabling them to optimise capacity utilisation. gives willmultiplex industry activities Non-ticket revenues like food and beverages and the leasing of excess space to retailers provides additional revenues translate estimates, are retail to theatre into the growing developers. demand for Further, growth of multiplexes is being driven by favourable government policies. The Union Budget 2004-05 has provided for higher a multiplexes. demand tax towns. This initiative has resulted in most major players announcing multiplex projects in smaller towns. deduction The for growth of in 50% on of multiplexes is expected to push the growth of the real estate related The growth shopping the multiplexes activities. mall profits Hotels/Resorts earnedbeing by is With driven the increase of disposable of income in the hands of upwardly mobile Indian middle class, the propensity of spending the a larger portion of their income on tours and travels are going up. This factor, coupled with the changing lifestyle of multiplexes population, has created demand for quality hotels/resorts across this country. In addition, India is also emerging as a Indian constructed destination for global tourism which in turn pushing up the demand for hotels/resorts across India. This increasing demand major between hotels/resorts across India, is offering another opportunity for real estate for April 2001 development. scenario, however, may be adversely impacted by the following This growth and March factors: Price risk 2005 in Demand non-metro risk cost of Increased development rate Rising interest Phasing out of tax incentives Price: first big risk which the developers face is price risk. Real estate price cycles have a very significant impact on The margins of the developers, because land costs account for a large portion of the constructed property. Real estate prices in the past (1995 to 2001), have fluctuated during the span of procuring land, commencing construction of a project and its the completion, thereby exposing project developers to the volatility of land eventual prices. 6

Demand: other significant risk to which developers are exposed is demand risk. Demand risk for The covers a number of factors connected to the ability to sell properties based on location, brand, track record, quality real estate developers timeliness of completion. Most real estate developers try to address this risk by undertaking market surveys in order to and assess the demand development: Cost of The costs in a housing project consist of land costs, construction costs and employee costs. for their sources suggest the prices of steel and cement, which comprise a major portion of the construction cost, are expected to Industry in coming 1-2 years. Steel and cement prices are expected to climb up by nearly 7% and 5% respectively over the next rise properties. As In year.a result, overall cost of the housing projects will go up. This increase in cost, however, is expected to be outpaced by the growth rate of individual disposable income and therefore is not likely to dent the demand growth for housing units. addition, (Source: CRISINFAC CONSTRUCTION REVIEW: SEPTEMBER 2004) demand is Sustained availability of housing loan at a cheaper rate is one of the reasons for growth in demand for Interest rate: also units. Interest rate, however, has shown the signs of hardening up during last few months and most of the leading financial strongly housing institutions influenced housing units. have by policy raised Tax incentives: existing tax incentives available for housing loan arealso one of the major demand boosters. The decisions these tax incentives, based on recommendations of various committees/panels are likely to be withdrawn. The Kelkar interest However, had relating to Panel recommended the phasing out the income tax deduction available on the interest on housing loans for ownerrates on housing houses. The panel has recommended reducing the deduction to Rs.100,000 for the assessment year 2004-05, Rs. 50,000 occupied housing incentives. year 2005-06 and nil in assessment year 2006-07. This could act as a dampener for the assessment in loan. This industry. trend of rising interest rate may dampen the growth of demand for

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OUR BUSINESSOverview We are one of the leading real estate development companies in India with operations in 41 cities and 14 states of India. As October 15, 2006 we directly owned or held development rights for an estimated 108.64 million square feet of saleable of area. We have with the real estate sector for more than two decades. We commenced business as a marketing company for real been projects. In estate associated by us. 1990,the real we with began We have diversified our portfolio of real estate development projects. Presently we have acquired land or development estate in rights constructing business office space residentialour connection since technology parks on commercial land acquired by us or in respect of which we have development rights. In addition, we and a real estate with the completed 17 projects including nine housing projects and eight commercial complexes. Further, we have obtained in have incorporation complete and projects development in approvals and principle 1990 from GoI for the development of nine SEZ projects. The following table details the revenue from the metro now of most 20 categories of our aforesaid of projects in our revenue during last four fiscal years and the three months ended June 30, station and our projects integrated 2006. Promoters Three months Fiscal Year 25 are townships, have been ended residential constructed 27 associated June 30, 2006 2006 2005 2004 2003 projects. internally commercial We also complexes Rs. in As % of Rs. in As % of Rs. in As % of Rs. in As % of Rs. in As % of intend including to Million Income Million Income Million total Million total Million total from from from from revenue construct shopping operations operations operations operations (in %) 14 malls,hotels (in%) (in %) (in %) (in %) and four multiplexes, Residential information projects 1,217.76 49.32 4,950.52 76.89 2,805.17 92.52 906.79 80.86 565.58 82.21 Malls, multiplexes, commercial properties 42.85 1.74 542.27 8.42 126.82 4.18 84.31 7.52 35.13 5.11 Integrated townships 1,180.53 47.82 822.07 12.77 Nil Nil Nil Nil Nil Nil Lease Rentals 9.24 0.37 22.42 0.35 Nil Nil Nil Nil Nil Nil Contract revenues 18.31 0.75 101.04 1.57 100.08 3.30 130.37 11.62 87.28 12.68 Total 2,468.69 100 6,438.32 100 3,032.07 100 1,121.47 100 687.99 100 We have technology initiated and information technology. parks in efforts to to The orderestateour real development sector has shown an increase in demand in the past few years. Our scale of operation has diversify capitalize also expande on project CAGR of 121.23%. During the same period, our profit after tax has increased from Rs. 32.97 million to Rs. 1,069.86 million, at d and our by the growing portfolio a CAGRestate of 138.67%. total real entering revenue development construction has opportunities and 8 increased by offered developments from Rs. and sectors such of hotels 272.95 as tourism information million in fiscal 2002 to Rs. 6,537.67 million in fiscal 2006, at a

Our Competitive Strengths We believe estate the development that sector: following able We are are our identify One to the key factors in real estate development is the ability to assess the potential of a location after an evaluation of of principal demographi its emerging competitiveand gain thetrends. Our advantage in such locations. Our experience in the real estate sector has enabled us to develop the markets c first mover which drives vision strengths to assess the ability of the demographic trends of a location, we are able to identify and internally assess key emerging markets for real our which have a potential of evaluate development. As of October 15, 2006 we directly owned or held development rights for an estimated 108.64 million estate acquisition contributed for location saleable area of such of feet trends square strategy.our to implementing has enabled land. We are Based a to the current on reputed real estate developer and enjoy consumer confidence. our projects. us feedback position in We believe that we have developed a reputation for being transparent in our dealings and delivering our projects in a identify manner. receive the real timely locations residential our As through of that are and properties September marketing relatively Limited. Our Company was the first real estate company to be awarded the DR 2- ICRA-NAREDCO rating from ICRA Limited, construction and 2006,and 25, network551 undeveloped which industry, and for the our received and totalan indicates ISO commercial from RINA in relation to the design, development, construction and marketing of infrastructure number 9001 of understanding certification integratedthe that series) (2000 properties. customersa strong marketing network. projects. management developer We have for We adhering who have systemhave a has have a We to obtained been global certification the project is targeted. Our sustained and structured marketing over the cycle of the project results in strong base at whichin strong 9001 standards ISO handed comprising of exposure project from wide marketing quality, (1994 over agreements forour sale ISO of development have been executed by us and out of the 1,644 commercial units available, 1,013 have been sold. network. Our International possession such Brands series) as in 9001:2000, products capacity is marketingin Certifications company is into by us similar Big ISO to executing structured our shoppingthe in We believe that the presence of well known brands in our large retail outlets ensures confidence malls. the real arrangements 2,286 estate Bazaar, for 14001:2004 target real potential customers. consideration among estate OHSAS with brands Raymond We and audience. projects. of the nature such as Pizza We haveof s, Archiesa 18001:1999 diversified business within the real estate sector. As the project have also of Hut, and have a number of diverse projects in 41 cities and 14 states of India and are not restricted to any one segment We September and McDonalds geographical region. Our commercial buildings, malls and multiplexes are customized to cater to the demographics of Spencers the or 25, 2006, customer specific locality. Further, we are developing residential complexes that directed at both the high income and the and Khana the haveof the out segment, economy in which enables us to access customers across a range of income Unlimited for outlets 12,316 groups. establishment shopping a We have residential of malls strong retail We have evolved a strong project monitoring system which is leveraged by us to ensure disciplined completion of our units outlets in develope project We projects. have documented an integrated management manual that covers each core activity relating to the construction available, development d monitoring of our projects including documentation requirements, regulatory requirements, material purchase, and by us 7,486 identification, risk and we system, uniformity across our operation have also which projects. and control entered us We have established a transparent and efficient system of procuring materials. enables occupational to deliver We have established a transparent and efficient system for procuring materials by establishing purchasing policies, which health and committed to are projects in acquiring the best quality of materials at reasonable prices. In light of the scale of our operations and safety. This centralized purchasing mechanism, we have been able to obtain discounts from vendors of materials. We maintain a justa our timely ensures cost that inand we have a efficient 9 consistent manner. level of quality and

time of years, inventory in market conditions for materials required by we are to reduce us. are an organized and professionally managed company. open to We storage quotations We are a professionally managed company with qualified and experienced professionals in the senior management. costs. new from technical team brings with it extensive experience in design, engineering, marketing and construction of projects. Further, Our Although vendors, senior management team that is in charge of operations, finance, sales and marketing, business development and our planning of has extensive experience in the industry. We have branch offices operating in Bangalore, Cochin, Jaipur, which some strategic Lucknow, Ahmedabad, Mumbai, Goa and Moradabad, all of which are managed by senior officials of our Company. In order Agra, ensure our e decision making process and to facilitate speedy implementation of the real estate projects, we have adopted to xpedite the we that vendors model in which critical functions like project planning, procurement and project monitoring are managed from our a retain support functions such as obtaining regulatory approvals, pre-marketing and marketing are the responsibility office and key the of corporate flexibility our of materialsto cater to the demographics of a location while maintaining our standards of quality and to take projects representatives havethe state advantage efficiency. at Strategy Our beenlocal level. of and We intend to changes associate model This to maintain our position as one of the leading real estate developers in and pursue the enables us to d with us India: following Expanding into new locations across India. maintain a a for strategies in In balance number order to Kolkata, Hyderabad and Bangalore (Metro cities), we have made a conscious decision to focus on non-Metro cities in recognition the between increase our Sincethe fact India.customization of our inception, we have been continuously undertaking projects in non-Metro cities across India as we believe that market for quality real estate projects at reasonable prices exists in the non-Metro cities of India. In the three month a market that a of our ending period share in the large 30, within June estate real percentage economi India. and 2006 We development strategyto also instrumental in providing us the early mover advantage in these cities and of activityis c intend fiscal the in market towns. population in nonDiversifying the portfolio of projects undertaken by us. continue 2006, India of India ais Metro to be 88.09% We intend located in cities will real further DMRC BOT projects,, commercial complexes, we intend to undertake projects for developing hotels, SEZs and and to cities other result in technology parks. Our strategy is to position ourselves to capitalize on the opportunities generated by various sectors of estate informationalof 99.65% diversify Indian the the than developer our the to capitalize on the business opportunity provided by the tourism and information technology sectors in India. In addition, Delhi, economy. increase a with revenue of portfolio constantly example,innovative strategies for marketing our projects, diversifying revenue streams and for enhancing the we Mumbai, For India of explore pan-our brand. projects of value came Chennai, to we intend an ongoing demand presence. frompropose to time on we We undertake for We real projects basis. undertake. continue Outsourcing to projects for selectively to increase the scale of operations and reduce capital investment. estate anticipate we addition In acquire We the projects are that the undertook to development We those on focused development in increase in integrated rights nonprofessionalover currently concentrating of hotels and cities Metro townships, makes it effective to do so. We believe that selective outsourcing of construction activities will enable us of ourin and thus for lands soperations also our core on information human resources to a greater number of projects than would have been feasible if such projects were and cities allocate ourto residential to implementation add value of outsource strength technology towns. undertaken directly by us. In addition, we recognize that outsourcing of construction activities reduces capital investment beingprojects. complexes of our projects our some estate real parks This lowers overhead and , from time to We intend to critical development. expenses. outsource activities we Currently, the like construct construction designing our most of 10 of and projects. our projects as architecture and when to take the scale advantage of the expertise of reputed

Customizing projects to take advantage of tax benefits. The before March 31, 2007, provided the area of each dwelling unit is not more than 1,000 square feet within the radius of 25 provisions kilometres of of section projects are customized, wherever feasible, to take advantage of the benefits provided by the provisions of the I.T. Act. the 80-IB of details of the said provisions of the I.T. Act, see, the section titled Statement of Tax Benefits on page 42 of this Red Formunicipal the I.T. Act P Herringrospectus limits of the provides . Our Operations metropolitan an cities of operations in 41 cities and 14 states in India. Our core business is real estate development. Presently, we We have New exemption Delhi and completed nine residential projects and eight commercial complexes. We construct projects on an independent basis, have on than our DMRC projects, which are constructed on a concession basis. As of October 15, 2006 we directly owned or Mumbai and other payment development rights for an estimated 108.64 million square feet of saleable held income 1,500 square of area. feet in on rest The following map graphically depicts the locations of our current and completed residential, commercial and tax township of India. Our integrated projects in India residential projects approved

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A statement of our total revenues on a state-wise basis during the three month period ended June 30, 2006 and fiscal 2006,2005, 2004 and 2003 are as follows: Three months Fiscal Year ended June 30, 2006 2006 2005 2004 2003 Rs. in As % of Rs. in As % of Rs. in As % of Rs. in As % of Rs. in As % of Million total Million total Million total Million total Million total revenue revenue revenue revenue revenue (in%) (in %) (in %) (in %) (in %) Delhi 294.09 11.91 22.42 0.35 Nil Nil 5.93 0.53 6.60 0.96 Haryana 1,819.98 73.73 3,239.71 50.32 524.02 17.28 118.00 10.52 80.12 11.64 Punjab 10.23 0.41 150.09 2.33 Nil Nil Nil Nil Nil Nil Rajasthan 0.90 0.04 401.33 6.23 Nil Nil Nil Nil Nil Nil Uttar Pradesh 343.49 13.91 2,624.77 40.77 2,508.05 82.72 997.54 88.95 601.27 87.40 Total 2,468.69 100% 6,438.32 100% 3,032.07 100% 1,121.47 100% 687.99 100% The Real Estate Development Process: The process of real estate development can be divided into six distinct activities. These are as follows: (a) Identification of potential areas of development: One of the key factors in the real estate development to assess the potential of a location after evaluating thedemographic trends. We rely on our experience and ability of sector is its ability management to evaluate potential locations. We also use our experience to evaluate locations where we can gain the our earlymover advantage. We have commenced real estate development projects in New Delhi, Noida, Gurgaon, Agra, Noida, Greater Lucknow, Pune, Jaipur and Faridabad. In addition, we are one of the earliest real estate development Shirdi, to have companies projects in Moradabad, Ghaziabad, Bhiwadi, Sohna, Sonepat, Rajpura, Dehradun, Rohtak, Sahibabad, Mohan Nagar, Jodhpur, Dharuhera, Kochi, Amritsar, Mohali, Saharanpur, Dera Bassi and Malerkotla. The process of land identification starts from the stage of selecting an appropriate area which has growth potential. This done by our projects research team which gathers market data on possible prospects while selecting an area for is We also development. take the views of local real estate marketing professionals into account. Thereafter, a survey is conducted at theproposed site and a preliminary feasibility report is prepared. The report is based on an analysis of the certain including, among other things (a) the standard of living and disposable income of the population of the location, (b) criteria, growth prospects of the towns in terms of trade and industry and (c) financial viability of the project. The next step, the area identification, involves identifying the type of project to be undertaken in that particular area and deciding the scale after the project. Typically, decisions at this stage involve examining the viability of developing townships or of complexes or residential towers or SEZs on the identified project site. The final decision on the location, nature, commercial feasibility and scale of each project is taken by our senior financial (b)management. applicable laws and obtaining requisite evaluation of an area as a feasible area for Evaluation of On the approvals: implementation of a project, it is imperative to understand the legal regime governing land development in the location, the which varies from state to state. We also evaluate the factors which affect the obtaining of the approvals required for implementation of the project. The approvals generally required for a real estate development project include approvals the building plans, for the conversion of agricultural lands to non-agricultural lands, where applicable, the approval of lay for outs and are required for buildings above a certain stipulated height. Building completion certificates are obtained from the approvals authorities after to projects have been completed in accordance with applicable law. In the case of SEZ projects , we the appropriate related required to obtain the recommendation of the concerned state government and approval of the GoI. For details of the are certain requirements applicable to us, see the section titled Regulations and Policies on page 80 of this Red Herring legal infrastructure Prospectus. facilities such 12 as power and water. Similarly, approvals from the fire authorities

(c) Acquisition of title and/or development rights ofpurchase of land primarily depend upon the laws Rights for land: regulations governing the location of the proposed real estate development project. In this process, we acquire land and ordevelopment rights over lands through the following models: (i) Purchase of Land directly from title holders We purchase land directly from title holders. We are particular about formalizing the transfer of title and due of such recording transfer in the appropriate land records. We execute conveyance deeds in respect of such properties in to order acquire clear title to the property. We also enter into arrangements with other parties who procure land and make arrangements with title holders to purchase their land at identified places. Under these arrangements in addition to the purchase consideration for sale land, we may also pay these other parties a certain pre determined amount for their services, depending on the of and conditions of the terms agreement. In cases where agricultural lands are being acquired by us and conversion from agricultural land to non-agricultural required, we may (a) either acquire the land and apply for conversion prior to the completion of the sale, or (b) is that the title holder applies for such conversion, or (c) in the event there are minimum area requirements for application ensure for conversion from agricultural land to non-agricultural land, applications may be made jointly by us and the holders and upon the receipt of the permission for change in use of land, the land and permission for conversion title be may transferred to us at our option or the land may be developed by us in arrangement with the title (ii)holders. Allotment by Government Authorities and entities such as DMRC We also acquire land on freehold basis or leasehold (for periods which typically vary between ninety to ninetyyears) with the concerned development authority. Once the land is purchased or leased by us, we develop the nine plots into residential or commercial units and realize the sales proceeds of the plots or buildings built thereon from various customers. We have acquired a large amount of land for the projects from such governmental authorities in the towns several including Delhi, Noida, Greater Noida, Agra, Mohali, Lucknow and Faridabad. We then develop this corresponding to the terms of the approvals and prescribed usages and market the same. An advantage of land land by this process is that such lands are typically free from any defects of title, the land use and pattern of acquiring is pre-determined and the time required in obtaining approvals is reduced, thereby resulting in early launch of development project and improved cash flows. In certain cases the authorities prescribe certain charges on resale of built-up the by areas the buyers (in cases where land is acquired on leasehold) and such conditions are to be complied with by buyers. the In Delhi, the Delhi Metro Railway Corporation (DMRC) leases and licenses properties owned by them for development as commercial complexes through concession agreements. As of October 15, 2006, we have entered into ten concession agreements with the DMRC. Through these concession agreements, we have acquired the rights such develop properties for commercial use in Inderlok, Seelampur, Shahadra, Tees Hazari, Pratapnagar, Welcome to Kashmere Gate. These concession agreements entitle us to further sub license the areas developed by us. The and of the licenses obtained by us ranges between 12 to 30 years. Under the terms of the concession agreements we term required to develop the projects on a build-operate and transfer basis. The developed properties will devolve to are DMRC at the end of the respective license the period. For details of the salient features of such agreements, see the section titled History and Certain Corporate Matters page 83 of this Red Herring on Prospectus. (iii) Acquisition of development rights We acquire the right to develop properties through collaboration with other entities. These other entities are title holders of lands and we act as the developers. Typically, the project is conceived and developed by us in with accordance our agreement with the other party. The title holder is typically given the option, as consideration, to the terms of either share the sale proceeds in a pre determined proportion which may range approximately between 15% to depending upon the nature of the project and the location of the land or to receive a pre determined percentage of 50% the developed area which he may market at his cost and expense. 13

We also advance interest free loans to parties to acquire lands identified by us for development of real estate We get projects. the absolute rights to develop and market such lands. We adjust the cost of acquisition of the land, other expenses and costs incurred by the other entity against the interest free loan given by us. The other entity is including paid a pre determined amount as consideration based on the area of the land acquired by the other entity. For details of the salient features of such agreements and the parties with which such agreements have been into, entered see the section titled History and Certain Corporate Matters on page 83 of this Red Herring InProspectus. addition, we have substantial investments in certain companies which are in the real estate development such as Parsvnath Landmark Developers Private Limited and Home Life Real Estate where we hold 50% of the sector share capital of each of the companies and Amazon India Limited in which we hold 48.3% of issued share issued capital. (d) Designing and Construction: The design and planning of our projects is either completed by our in-house department or by external architects and structural consultants appointed by us. The majority of architects and planning consultants engaged by us are specific to a particular project and are drawn from a pool of designers and architects. structural planning department and/or the architect appointed by us provides us with the structural design of the project as well as The the estimates of the requirements for manpower, materials, machinery. The external consultants may continue to advise us during the course of the project. Once the design and the estimates for the project have been finalized, we set up a project team under the supervision of a site engineer who is the central co-ordinating person who reports to the senior management of our Company. purchase of materials is centralized and is based on the estimates given by the planning division or the architect, as the The may be. case For our projects, we enter into service/supply orders. We are not dependnt on any single contractor/builder/supplier for construction activities. The orders are placed by us on the basis of one-to-one negotiations and we do not have any our o bidding tender r process.the raw material requirements of each project are satisfied in a timely and cost effective manner. We We ensure that ensure that raw materials and other goods and services sourced from third party vendors are delivered in a timely payment manner, is made to suppliers in a timely manner, scrap on project sites is effectively disposed and also to relationships with vendors. develop We conduct regular site visits and have developed a system of internal reporting for monitoring of the status and stage all the projects being developed by us at any given point of time through a monthly information system. This ensures of we that minimize time and cost overruns. We deploy two representatives of our head office at the sites of our projects. main scope is to look after the issues related to manpower planning, including welfare of the workers, as well as Their and administration of the site. These representatives travel from site to site in order to oversee such issues. security one representative from our human resources department visits each site on a fortnightly basis to address issues Additionally, to related statutory compliances and other general issues related to the (e)workers. Marketing and Advertising We use a mix of traditional marketing methods such as advertising and publicity in the leading newspapers and of the region. We also undertake direct sales efforts, either through internal sources or through our external network of magazines sales associates. In certain areas, we also use radio and television extensively for publicity of our (f) projects. Completion and handover of the project We transfer is paid to or the title us prior to the transfer of title or possession is handed over, in case of leasehold properties. lease hold Our Current Projects rights asdeveloping (a) residential projects; (b) commercial complexes such as shopping malls and multiplex Currently, we are the i case may be cinemasncluding projects which we build on a build operate and transfer basis (c) integrated townships and (d) to the hotels. Residential projects: We are in the process of developing 25 residential projects in customer. WeGenerally we India. develop a that ensure wide the entire 14 range of consideration residential projects with varied locations, designs, specificati ons and square foot areas. We analyse

various team that qualitative urban area. consider a and row houses The number of gardens, are pools and recreational quantitative that composition factors, areas. generally the data We create architectural variety within our projects by offering numerous models, floor plans, and exterior styles in an effort of including incorporated to enhance home values by creating diversified neighborhood looks within our projects. Generally, we select the exterior development obtained target interior finishes and into a larger of our residential units. is population through development One of the our determined in extensive cost ismay that most accordingly. catchment market approximately 2,178,530 square feet. 663 residential units are proposed in this project. This project is aimed at the Rs.5,083 includeand significiant We develop area segment of customers. This project is expected to be completed by fiscal research premium .86 additional and stand alone economic 2009. We generate revenue from the sale of individual and group housing units. The total revenue generated by sale of undertaken million amenities advanced dwellings, standards units as of of an residential the three month period ended June 30, 2006, fiscal 2006 and fiscal 2005 was Rs. 1,218.67 million, Rs. 4,950.52 out such the as by residential apartments in million and Rs. 2,805.17 million respectively. which gymnasiums projects is and internal general We are Commercial complexes: in the process of developing a number of commercial complexes such as shopping Rs. , Parsvnath development multiplexes andatoffice premises. Currently, we are developing 27 commercial complexes in India, including eleven malls, 2,287.27 Exotica complexes commercial million Gurgaon, complexes on a build operate and transfer pursuant to has been Haryana. basis. approvalhave We spent as of The stations our been of estimated demand owing to the access they provide to public transport systems. These properties include a total area of 94,291 since bids/concesin involved August project meters square at Inderlok, Seelampur, Shahadra, Tees Hazari, Pratapnagar, Welcome and Kashmere Gate stations. We continue September sion development diversify to 31, 2004 offices, agreements as well as licensing of car parks, advertising, telecommunications and ventures 2006. . It In and the Delhi, DMRC with the has exhibitions. trade a These property developments are carried out under development agreements. A typical development agreement propertiesthe DMRC, for total mix that provides upon located development saleable wewherein we to develop the projects on a build-operate and transfer basis. The developed properties will devolve to are required found in of the award above the end areproperties of DMRC at tender of the respective license period. The term of the licenses obtained by us ranges between 12 to 30 area of or the DMRC the the developing in years. With lease we are proximity the project is considered on a case-by-case basis, it is our general policy to retain 30% of the development for lease connection each respect to areas, responsible of commercial withrailwayall commercialtheir tenants in respect of commercial developments we construct. With regards to projects we construct for to these where for stations the commercial premises is leased to commercial tenants. The total revenue generated by sale of 100% of metro DMRC commercial sources development complexes as of June 30, 2006, fiscal 2006 and fiscal 2005 was Rs. 42.85 million, Rs. 542.27 million and Rs. 126.82 million, and commercial complexes of costs. Under respectively. Total revenue generated from leases to commercial tenants in respect to our commercial projects, which depots projects, income the terms of predominantly are remain in Rs. 1.25 million, respectively. we include DMRC the from generate leasing as of concession projects, Our Company revenue also of space 2006, agreements June 30, Limited. Pursuant to this agreement, we will develop stand alone cinemas and multiplex cinemas incorporated into mall has developments 2006 will be leased to Movietime Cineplex Private Limited. The term of the agreement is nine years with an from for retailinto a fiscal sale entered which option shops, lease for an additional nine years and relates to the development of 100 screens. For further details of the to extendfiscal it and of memorandum terms this agreement see the section titled History and Certain Corporate Matters beginning on page 83 of this Red of restaura 2005 was Rs. of Prospectus Herring commercial nts 9.85 million, understanding . Integrated townships: in the process of developing 20 integrated townships in India all of which are in various space. August We are Rs. 24.67 of dated development. We develop integrated townships on large areas of land. Integrated townships are essentially mixedstages Although million and 17, areas. Although we are required to conform to prescribed proportions of residential development, commercial use 2006 with Movietime development, Cineplex 15 Private

open space and community amenities within each integrated township, we are essentially able to prescribe manner in which the land within each township is used. One of our most significant township projects is the township being developed at Rajiv Gandhi Technology Park in The Chandigarh. of an Chandigarh dated October 6, 2006 with the Chandigarh Housing Board in relation to this project. The total cost of this project is integrated Housing at estimated facility Rs. on Board willhas which 14,840.36 have a saleable area of 681,668. The project is expected to be completed by 500,960.80 a issued 2009. million We square letter of and the generate of metresother acceptance to total facilities revenue We land. respectively. dated June 9, million integrated saleable as such from have sale 2006 with townships The following table details our current projects for which we have taken certain minimum steps such as the acquisition of area facilities is to of entered for into respectthe rights. Some of these projects are pending approvals, including among other things, conversion of land or 4,064,075 in land development medical, for residential a from use our the appropriate authorities. three bid square educational plots, development the month We Sl. feet.Name of Project and location Total Saleable Total estimated Amount spent and individual agreement development No. area in square cost of the as of August period lease also a recreational houses, and feet projects 31, 2006 ended intend to activities. group deed (in Rs. million)* (in Rs. million) June 30, developtotal The housing a Residential projects 2006 hotel and revenue at units, fiscal 1. thisParsvnath Panorama located at Plot No. A-01, Sector TAU, 684,660 752.54 403.40 generated shopping 2006 Greater Noida, Uttar Pradesh. location, in relation and was Rs. Parsvnath Palacia located at Plot No. 5, Alistonia Estate, 750,000 1,052.50 78.74 2. commercial 1,180.53 Sector Pi, Greater Noida, Uttar complexes million Pradesh. 3. Parsvnath Residency, Ram Ganga Vihar Phase II, Kauth Road, 67,898 90.46 21.49 and Moradabad, Rs. Uttar 822.07 Pradesh. Prestige, Phase I located at Plot No. 2, Sector 93 A, 533,504 705.59 634.07 4. Parsvnath Taj Express Way, Noida, Uttar Pradesh. 5. Parsvnath Pratibha located at Plot No. 11 & 12, Sector 4, 840,000 906.53 144.47 New Moradabad, Uttar Pradesh. 6. Parsvnath Privilege located at Plot No. 11, Sector Pi, Corrosia 2,050,000 2,901.50 19.58 Estate, Greater Noida, Uttar Pradesh. 7. Parsvnath Planet located at Plot No. 8/8 & 9/9 Vibhuti Khand, 843,200 1,098.50 369.11 Gomti Nagar, Lucknow, Uttar Pradesh. 8. Parsvnath Premium located at Chikhli District Centre PCNT, 513,430 548.85 37.59 Chikhli, Pune, Maharashtra. 9. Parsvnath Paramount located at Subhash Nagar, Delhi. 157,500 790.81 486.15 10. Parsvnath Panchvati I located at Plot No. 4 & 5 , Taj Nagari , 685,024 542.32 363.80 Phase-II, Agra, Uttar Pradesh. 11. Parsvnath Elegance located at Plot No. 9, Sector-4, New 345,000 372.09 49.58 Moradabad, Uttar Pradesh. 16

Sl. Name of Project and location Total Saleable Total estimated Amount spent No. area in square cost of the as of August feet projects 31, 2006 (in Rs. million)* (in Rs. million) 12. Parsvnath Exotica located at Village Wazirabad, Sector-53, 2,178,530 5,083.86 2,287.27 Gurgaon, Haryana. 13. Parsvnath Pleasant located at village Dharuhera, District 1,186,452 1,341.09 10.41 Rewari, Haryana. 14. Parsvnath Majestic Floors located at Plot No. 18 A, Vaibhav 212,210 237.51 274.00 Khand, Indrapuram, Ghaziabad, Uttar Pradesh. 15. Parsvnath Green Ville located at village Fazilpur Jharsa, 1,063,452 1,181.32 883.10 Sohna Road, Gurgaon 16. Parsvnath Regalia located at village Pasonda Sahibabad, 747,774 841.71 67.66 Ghaziabad, Uttar Pradesh. 17. Parsvnath Sterling located at village Arthala, Ghaziabad, 2,900,214 3,264.55 40.60 Uttar Pradesh. 18. Parsvnath Royale at Sector 20, Panchkula, Haryana 669,512 1,422.70 252.96 19. Parsvnath Platinum (Phase II) located at D-01, Swarna Nagari, 216,384 211.46 213.29 Greater Noida, Uttar Pradesh. 20. Parsvnath Pristine at Sonepat. 872,942 819.30 33.70 21. Panchvati II located at Taj Nagari II, Agra 284,000 272.54 66.53 22. Parsvnath Royal Villas at Salgonda Goa 32,292 47.05 9.92 23. Parsvnath Exotica (Extension) located at Village Wazirabad, 260,000 598.00 100.26 Sector-53, Gurgaon, Haryana. 24. Parsvnath Prominence at Bhiwadi, Rajasthan 837,705 880.76 25.39 2 5 Project located at Khekhra, Uttar Pradesh 232,502 170.90 Nil Commercial Projects 26. Parsvnath Plaza-3 located at Plot No. 1, Neelgiri Commercial 26,000 39.00 1.70 Centre, Mansarovar Scheme, Delhi-Moradabad Moradabad, Uttar Road, Pradesh. City Centre located at 812/CP-1, near U.I.T Police 200,000 325.32 25.28 27. Parsvnath Chowki, SBI Road, Bhiwadi, Rajasthan. 28. Parsvnath Mall Matrix located at Phase VIII-B, Industrial Focal 157,505 378.22 Nil Point, Mohali, Punjab (through Parsvnath Developers, AOP). 29. Parsvnath Square located at 16, Civil Lines, Moradabad, 162,000 372.72 124.14 Uttar Pradesh. 30. Parsvnath City Centre located at Ashiana Scheme I, 80,770 176.47 68.48 Kanth Road, Moradabad. 31. Parsvnath City Mall located at Plot No. 3, Sector 12, City 186,000 544.10 321.91 Centre, Faridabad, Haryana. 17

Sl. Name of Project and location Total Saleable Total estimated Amount spent No. area in square cost of the as of August feet projects 31, 2006 (in Rs. million)* (in Rs. million) 32. Parsvnath Kaushambi Mall located at 42, 43 Kaushambi 23,761 59.25 41.90 Scheme, Ghaziabad, Uttar Pradesh. 33. Parsvnath Eleganza located at 103, Rajpur Road, Dehradun, 150,000 285.00 14.61 Uttaranchal. 34. Parsvnath Mall Eighteen located at 1-A, 1-B, Block-K, Sector 45,773 285.17 234.76 18, Noida, Uttar Pradesh. 35. Parsvnath Shoppers Den located at Block- H, Section-63, 37,322 114.88 81.62 Noida, U.P. 36. Parsvnath The Mall located at Building No. 3, Municipal No. 230,000 460.00 10.69 362/XIII, Amritsar, Punjab. 37. Parsvnath Plaza at Saharanpur. 67,248 144.15 Nil 38. Project Galleria located at Plot No. 42/2/A at Ahmedabad 112,400 409.08 24.28 39. Parsvnath City Centre located at Plot No. 293/1/C at Ahmedabad 401,456 995.22 94.85 40. Parsvnath City Centre located at Kukatpally, Hyderabad, 288,108 947.95 266.77 Andhra Pradesh. 41. Project located at Patto Plaza, Panjim, Goa 329,809 1,054.06 23.02 DMRC projects. 42. Parsvnath Metro Mall located at Metro Station, Shahdara, Delhi. 107,293 152.83 140.77 43. Parsvnath Metro Mall located at Metro Station, Inderlok, Delhi. 91,535 79.92 80.52 44. Parsvnath Metro Mall (Annexe) located at Metro Station, 50,556 126.00 127.40 Inderlok, Delhi.) (2 45. Parsvnath Mega Mall located outside Metro Station, Seelampur, 387,027 908.95 278.36 Delhi. 46. Parsvnath Metro Mall located on ground within the station box 31,226 24.95 20.66 of Metro Station , Seelampur, Delhi. 47. Parsvnath Metro Mall located at Metro Station, Tees Hazari, Delhi. 24,000 44.83 44.00 48. Parsvnath Metro Mall located at Metro Station, Pratap Nagar, 24,585 56.93 52.95 Delhi. 49. Parsvnath Metro Mall located at Bhai Vir Singh Marg, near 324,780 1,653.80 3.75 Gole Market, New Delhi. (5 ) 50. Parsvnath Metro Mall located at Kashmere Gate Metro Station 34,358 86.00 64.48 51. Parsvnath Metro Mall outside the Welcome Metro Station 395,305 856.00 259.49 52. Parsvnath Metro Mall at Azadpur Metro Station and an adjoining commercial 297,085 1,806.50 164.65 complex 18

Sl. Name of Project and location Total Saleable Total estimated Amount spent No. area in square cost of the as of August feet projects 31, 2006 (in Rs. million)* (in Rs. million) Integrated townships 53. Parsvnath City at Sonepat, ) 15,514,330 16,476.23 1,569.15 (3 Haryana. 54. King City located at Rajpura District Patiala, Punjab. 4,138,336 2,814.08 171.05 55. Parsvnath City at Jodhpur, Rajasthan 3,485,018 3,058.48 22.01 56. Parsvnath Greens at Dera Bassi, District Patiala, Punjab. 1,655,335 1,179.29 42.14 57. Parsvnath City located at Malerkotla, Punjab. 1,920,188 1,206.60 65.22 58. Parsvnath Narayan City located at Jaipur, Rajasthan. 4,383,225 4,432.85 367.02 59. Parsvnath City located at Rohtak, Haryana. 4,573,963 4,299.69 32.66 60. Parsvnath City located at Nedumbassery, Taluk Alwaye in 3,262,053 2,394.57 23.98 vicinity of the new Cochi International Airport. 61. Parsvnath City at Dharuhera, District Rewari, Haryana. 4,573,963 4,417.30 42.92 62. Parsvnath City located at village Marotha, Dehradun, 1,372,189 1,180.07 Nil Uttaranchal. 63. Parsvnath City located at Sohna, Gurgaon, Haryana. 4,573,963 3,924.80 2.33 64. Parsvnath City located at Village Mavi Kalan, Saharanpur, 3,049,309 2,666.83 2.13 Uttar Pradesh. 65. Parsvnath City located at Indore, Madhya Pradesh 2,622,416 1,668.68 210.15 66. Parsvnath City located at Lucknow, Uttar Pradesh 1,720,760 1,391.24 63.90 67. Parsvnath City located at Ujjain, Madhya Pradesh 2,536,600 1,668.58 233.51 68. Parsvnath City at Kundli, Sonepat, Haryana. 1,728,000 336.08 503.77 69. Parsvnath City at Rajiv Gandhi Chandigarh Technology Park 4,064,075 14,840.36 70. Parsvnath City at Kurukshetra, Haryana 6,098,618 4,963.22 1.19 71. Parsvnath City, Mysore 2,831,400 1,542.21 0.13 72. Parsvnath City, Karnal 2,943,818 3,846.66 Nil Hotel ) (3 73. Hotel located at Shirdi, District Ahmed Nagar, Maharashtra 35,521 60.48 7.20 74. Hotel located at Mohali, Punjab 80,000 275.85 Nil 75. Hotel located at Haridwar 37,477 58.62 Nil 76. Hotel I located at Jodhpur 250,000 659.88 Nil 77. Hotel II located at Jodhpur 225,000 593.89 Nil 78. Hotel located at Bhiwadi, Rajasthan 60,000 97.59 7.18 19 2.99

Sl. Name of Project and location Total Saleable Total estimated Amount spent No. area in square cost of the as of August feet projects 31, 2006 (in Rs. million)* (in Rs. million) 79. Hotel located at Seelampur, New Delhi 70,000 253.62 52.50 80. Hotel located at Rajiv Gandhi Chandigarh Technology 681,668 2,665.80 Nil Park, Chandigarh ( 6) 81. Hotel located at Project for building a commercial complex 140,000 487.06 15.09 on Plot No. 293/1/C at Ahmedabad 82. Hotel located at Kukatpally, Hyderabad, Andhra Pradesh 140,000 460.64 35.71 83. Hotel located at Indore, Madhya Pradesh 125,000 252.27 4.62 84. Hotel located at Lucknow, Uttar Pradesh 110,000 225.11 4.06 85. Hotel located at Ujjain, Madhya Pradesh 110,000 238.70 10.06 86. Hotel located at Patto Plaza, Goa 100,000 339.60 6.98 IT Park ( 3 ) 87. IT Park located at Gurgaon (4) 88. IT Park at Mysore 1,012,770 1,884.09 18.79 762,300 833.61 -

89. IT Park at Cochin 1,306,800 1,359.51 Nil 90. IT Park at Kancheepuram (includes certain areas earmarked 2,927,232 5,122.66 Nil for residential apartments) * We have not valued our land resources by an independent valuer The (1 ) Deputy Commissioner, Civil Lines Zone, Municipal Corporation of Delhi has through an order dated June 20, 2006 ordered the sealing of the ground floor of the annexe commercial area at Inder Lok metro station. The Government National Capital Territory of Delhi has by a letter dated June 28, 2006 written to the Commissioner, Municipal Corporation of of Delhi directed the Municipal Corporation of Delhi to withhold any enforcement action against the DMRC and has referred the matter to an inter agency meeting. For further details please refer to the section titled Outstanding Litigation and Material Developments beginning on page 231 of this Red Herring Certain )Prospectus. the project land (approximately1.21 million square metres) had been notified for acquisition by the (2 portions of government under the Land Acquisition Act, 1894. However, 340,421.56 square metres of such notified area has state been denotified by the state government, pursuant to which our Company has been issued a letter of intent by the already Town and Country Planning, Haryana, with respect to a license for setting up of a residential plotted colony. The Director, portions of the notified areas will be denotified as per the policy of the state remaining We intend to (3 )government. construct hotels and IT Parks on some of the project land over which we have development rights accordance with the permitted land use. Our definitive building or layout plans in relation to some of these projects are in to be finalized and yet approved. land has been notified for acquisition under Section 4 of the Land Acquisition Act, 1894. These (4 The project ) proceedings acquisition has been challenged by our Company and others by way of a writ petition in the High Court of Punjab Haryana (Civil Writ Petition No. 8939/2005), pursuant to which the Government of Haryana has undertaken to establish a & high powered committee to examine the grievances of the petitioners. The matter is currently pending under consideration of the said high-powered the committee. has issued a notice dated October 3, 2006 to us cancelling the letter of acceptance previously issued Further, the DMRC (5 ) tous in relation to the proposed property development at Bhai Vir Singh Marg, New Delhi and further stating that action is being taken to release the earnest money deposited by our Company. The DMRC has not provided the grounds for 20

cancellation of the acceptance of our bid in the said notice. Our Company has through a letter dated October 6, 2006 raised certain contentions against the proposed cancellation and has requested that the notice be Ms. Meghna (6 )withdrawn. Dubey has filed a suit against the Union Territory Administration before the Additional District Judge, Chandigarh. The Company is not a party to this suit and is therefore not in a position to comment on its implications, but it is understood on the basis of available information that it relates to a claim for compensation with respect to land from her acquired for the purpose of the development of a township at Rajiv Gandhi Technology Park in Chandigarh. The District Additional Judge has issued a notice to the Chandigarh Housing Board to appear as witness in this matter. The Housing Board has been directed to provide a copy of the letter of allotment issued to us, details of the land and terms Chandigarh allotment, the final draft development plan for the project and details of the external and internal development carried out of after acquisition of the said land. The matter is currently pending Projects undertaken by our joint venture company In addition to to the projects described the above, below: Venture Entity Name of Project and Location Total Saleable Area Percentage our Joint joint venture (in square feet) Interest in Joint Venture company Parsvnath Landmark Developers La Tropicana located at Khyber Pass, 1,542,345 Parsvnath Landmark Private Limited Civil Lines, New Delhi 50% Developers Landmark Developers Mall Manhattan located at Faridabad. 135,360 50% Parsvnath Limited Limited Private has development Special Economic Zones rights in We intend to develop SEZs in various parts of the country. SEZs are geographically defined enclaves established for relation purpose of promoting exports. The GoI provides incentives to developers that engage in the development of SEZs the businesses and operation and maintenance of nine SEZ projects for the information technology, multi product, food processing, auto, that gem leather, and jewellery and handicraft sectors. We have begun obtaining land for the purpose of these projects. We have establish applied for in-principle approval of the GoI for six additional SEZ also units in SEZ projects. details of the SEZ projects for which we have received in-principle approval from the GoI are as The brief designated follows: Description of the project Area Date of in-principle approval areas. Sl. No. We have 1. Multi product industry SEZ located at 10 million square metres June 26, 2006 obtained in Kancheepuram, Tamil Nadu -principle 2. Information approvals of technology industry SEZ located at 307,600 square metres June 26, 2006 Indore, Madhya Pradesh the GoI for 3. the Biotechnology industry SEZ located at Hyderabad, 101,100 square metres June 26, 2006 Andhra development Pradesh , 4. Food processing industry SEZ located at Sonepat, 1 million square metres June 26, 2006 Haryana 5. Leather and leather product industry SEZ located at 1 million square metres June 26, 2006 Agra, Uttar Pradesh and auto component industry SEZ 1 million square metres June 26, 2006 6. Automotive located at Pune, Maharasthtra

21

Sl. No. Description of the project Area Date of in-principle approval 7. Information technology/ information technology industry SEZ located at Dehradun, Uttaranchal# 140,000 square metres June 26, 2006 8. Handicraft industry SEZ located at Moradabad, 1 million square metres June 26, 2006 Uttar Pradesh 9. Gems and jewellery industry SEZ located at Jaipur, 204,600 square metres August 22, 2006 Rajasthan Once we receive the concurrence of the respective state governments where these projects are proposed to be located final andthe for certain tax and other benefits provided under the Special Economic Zones Act, 2005. For further details on the approval of applicable to regulations GoI for the and Policies and Statement of Tax Benefits beginning on pages 80 and 42 of this Red Herring development the Prospectus. of SEZs and FORTHCOMING PROJECTS development tax the SEZ benefits of In addition to available be we shall in ourTownship at Dibbur village, Hesarghatta, Hubli, Bangalore; and ongoing respect plan of able to we projects, theTownship at Hyderabad. same and develop are in the please refer We SEZs and the have not initial to or the necessary approvals for such development or both. For details of the status of these proposed projects, see the commenced we will the planning be titled Government and Other Approvals on page 245 of this Red Herring sections section these eligible stages Prospectus.in titled COMPLETED PROJECTS proposed of respect Regulations projects the As of October 15, 2006, we have completed 17 projects including nine residential projects and eight commercial since details of our completed projects are as The we are development complexes. either yetthe to follows: Name, Location Area Built-up Project Cost Total No. No. of units of Project acquire following (Square area in (in Rs. of Units sold as of requisite Metres) Sq.ft. million)* September, projects: area of land 25, 2006 for their Projects Residential development Parsvnath Estate, Greater Noida, Uttar Pradesh. 16,915.86 355,873 300.16 266 258 Parsvnath Residency, Noida, Uttar Pradesh. 4,390.75 92,090 124.94 54 54 Parsvnath Paradise, Mohan Nagar, Ghaziabad, 105,218.27 792,583 621.62 808 783 Uttar Pradesh. Parsvnath Edens, Greater Noida, Uttar Pradesh. 15,297.12 298,931 268.73 226 226 Parsvnath Gardenia, Noida, Uttar Pradesh. 4,856.23 121,978 179.00 92 92 The Presidency Floors, Gurgaon, Haryana. 8,093.71 107,995 111.00 72 72 Parsvnath Majestic Floors, Ghaziabad, Uttar Pradesh. 19,812.00 213,260 202.08 171 17 1 Project Parsvnath Prestige Phase I located at Plot 44,625 955,772 1,080.89 644 643 No. 2, Sector 93 A, Taj Express Way, Uttar Pradesh. Noida, Project Parsvnath Platinum located at D-01, Swarna 17,822 145,334 127.02 95 95 Nagari, Greater Noida, Uttar Pradesh (Low Rise) Total (A) 237,426.94 3,083,816 3,023.40 2,428 2,394 22

Project Name, Location Area Built-up Project Cost Total No. No. of units (Square area in (in Rs. of Units sold as of Metres) Sq.ft. million)* September, 25, 2006 Commercial complexes Parsvnath Plaza I, Moradabad, Uttar Pradesh. 2,832.80 72,463 65.00 123 99 Parsvnath Plaza-II, Moradabad, Uttar Pradesh. 2,832.80 60,085 40.30 54 13 Parsvnath Plaza Court Road, Saharanpur, Uttar Pradesh. 5,058.57 67,243 95.00 143 81 Parsvnath Plaza, Noida, Uttar Pradesh. 1,335.46 23,713 118.23 77 45 Parsvnath Bibhab Plaza, Greater Noida, Uttar Pradesh. 1,214.06 52,980 107.81 136 132 Parsvnath Arcadia, Gurgaon, Haryana. 607.03 35,102 62.81 10 4 Parsvnath Majestic Arcade, Indrapuram, Ghaziabad, 485.62 24,261 28.59 83 83 Uttar Pradesh. Parsvnath Paradise Arcade, Mohan Nagar, 526.09 39,996 41.90 142 109 Uttar Pradesh. Total (B) 14,892.43 375,843 559.64 768 566 Grand Total (A+B) 252,319.37 3,459,659 3,583.04 3,196 2,960 * We have not valued our land resources by an independent valuer Sales Our sales efforts begin as soon as practicable after we enter into an agreement to acquire land. We typically build, furnish landscape model units for each residential project and maintain on-site sales offices. We generally open an on-site sales and before the construction of the model unit is completed. This on-site sales office is utilized to commence the sales process office to potential customers. The sales center is later generally moved to one of the model units. We generally sell our developments through sales representatives who typically work from the sales offices located either the model units or at sales centers used in each subdivision. When appropriate, we also use listing and cooperative brokers at sell to our units. We are generally able to sell a portion of our land inventory on a pre- development basis, thereby reducing of external capital needed to complete the amount improvements. Our Competitors The real competitors are large developers such as DLF Universal Limited, Unitech Limited, Ansal Properties and Infrastructure estate in Limited northern India, and Hiranandani, Raheja group and Lokhandwala group in western India. development Regulations and Policies sector is still largely For details of the same see the section titled Regulations and Policies on page 80 of this Red Herring fragmented Prospectus. Property Intellectual in India. Our Promoter, PAPL registered copyright over our corporate logo and has licensed it to us for a period of ten years by a Among the agreement dated March 6, 2006. The agreement has been amended through letter of agreement dated April 12, 2006 and license few have been we organized registered trademark over our corporate logo and consequently do not enjoy the statutory protections do not have a the granted entities in to a accorded license by trading this sector, registered PAPL for see the section titled Government and Other Approvals on page 245 and Outstanding Litigation on page 231 of this name. our chiefFor trademark. Herring of Red perpetuity. details We are 23 Prospectus. Although such currently in we have a application dispute with registered s and our M/s trademark other Parshwanath over the intellectual Realty name property Private Parsvnath and Limited the in , we litigation in respect of respect the use of of our trading our name,

Human resources We believe that our employees are key contributors to our business success. To achieve this, we focus on hiring and the best talents in the industry. We make serious efforts to impart training and development to newly hired professionals and retaining view this process as a necessary tool to maximizing performance of employees. Our work force consists of (i) our employees, (ii) consultants who are engaged by us on a contractual basis to assist in the architectural and structural design permanent ofour projects and, (iii) contractors who are engaged by us on a contractual basis and who employ labourers to work at sites. In project notorder registered under these regulations. For further information see Risk Factors beginning on page x of this Red to Prospectus Herring engage . contract Five months Fiscal ended August 31, labourers 2006 2006 2005 2004 2003 for projects Number wepermanent employees 626 564 351 272 160 of sites are Corporate Social Responsibility required to We be aware of our corporate social responsibilities and have made significant efforts to preserve the environment in are around our projects. As a socially responsible company, we believe that great emphasis should be placed on social andregistered community service. This attitude has allowed us to engage in numerous social activities with the wholehearted support of our and under employees. certain Insurance regulations. We are Our operations are subject to hazards inherent in the construction industry, such as risk of equipment failure, work fire, accidents, and loss of earthquak insuranceflood coverage in relation to all risks in relation to our projects, for example, with respect to (a) most projects in life, severe e, construction or