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Create. Create. Grow.Grow.Lead.Lead.

K o l t e - P a t i l D e v e l o p e r s L i m i t e d A n n u a l R e p o r t 2 0 0 7 - 0 8K o l t e - P a t i l D e v e l o p e r s L i m i t e d A n n u a l R e p o r t 2 0 0 7 - 0 8

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08201137_KoltePatilDevelopersLtdPage 1 7/4/2008 10:58:41 AM08201137_KoltePatilDevelopersLtdPage 1 7/4/2008 10:58:41 AM

1

e have been in business for a decade and a half. And are proud of having

created a unique organization. An organization built on robust and

steadfast Trust. Trust is the single biggest contributor to our evolution as a

successful company, so far. Trust takes a very different proportion of significance in

our business. It is a driver of the business.

The more trust we have in our abilities, the better location we buy. The more trust

we put in our designing and focus on consumer insights, the better we create. The

more we trust the quality of our construction partners, the stronger are our

structures. And the result.

More customers trust us. And they tell others proudly of owning a piece of Kolte-

Patil real estate. And thus we create more customers who trust us. The result of

this ever-expanding base of trusting customers is that our reputation grows

exponentially. Over the years, we have evolved as one of the most preferred real

estate companies in Pune. And Bangalore.

The last decade and a half of Kolte-Patil Developers Limited (KPDL) have meant

trust.

We trust you, a valuable shareholder of Kolte-Patil to enable us to carry forward this

legacy into new horizons.

To Create. To Lead. And to Grow.

Real estate is real estate, right? We differ.

Create: Without embracing innovation, real estate loses meaning. At Kolte-

Patil trust us to create. Some of the partnerships and innovation in financial

structuring we have done has put us at the forefront of innovative leadership in the

various facets of our business. Leading financial institutions have trusted us over

many others. ICICI Venture and Yatra Capital to name a few. In the process, we are

setting benchmarks everyday in various aspects of development.

Lead: In our area of operations trust us to lead. And dominate. We are a

comprehensive real estate company with a diverse portfolio that includes an entire

gamut of projects ranging from quality housing, commercial spaces, IT parks, SEZs

and comprehensive townships. In Pune, we are the leaders, by far. We like to be

leaders not just in size, but in innovation too.

Grow: Kolte-Patil is one of the most comprehensive and diverse real estate

company. And that’s what makes us special. Our ability to understand the sector in

its completeness and participate holistically. And that’s how the growth horizon

expands. And the quality of earnings becomes better, thanks to the de-risking

portfolio. In the next 5 years, we are developing approximately 6 times of what we

have developed in the last decade and a half.

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08201137_Kolte Patil Developers Ltd_AR_2k7-2k8_(001-016):08201137_Kolte Patil Developers Ltd_AR_2k7-2k8_(001-016) 7/2/2008 10:5

TRUST US

to become one of the most

comprehensive and

respected names in

Indian real estateolte-Patil is synonymous with real estate in Pune and

Bangalore. A trendsetter in these cities, fulfilling the

ever increasing lifestyle demands of the modern Indian

economy, and delivering very high quality on time, everytime.

For the last decade and a half.

Time to think big. Think pan-India.

Ambitious growth has always been the mantra at Kolte-Patil.

Leveraging our past, our pedigree and our performance to take

Kolte-Patil to other parts of India.

We are always expanding horizons and there is now a paradigm

shift. We are now focusing on SEZs and large scale

comprehensive townships.

And this requires a specialized approach. Thanks to our linkage

with a global resource pool we are able to offer a

comprehensive and integrated offering (including facilities

management) with sustainable quality. We are known for great

quality at affordable prices and hence are best suited for

projects of such size.

We have one of the most diversified real estate portfolios in

this part of the country. Residential, commercial, retail,

townships, SEZs, hospitality and more. We have done it all.

We have acquired a substantial land bank and have planned

large scale execution of projects in the near future. Trust us to

evolve as one of the most comprehensive and respected names

in Indian real estate.

Trust us.

k

3


s India’s economic growth gathers steam, we believe

that more Indians will travel within India and even

more from all around the world. The hospitality industry is all

set to explode. Pune and Bangalore have a shortage of over

18000 rooms. Hospitality is a mix of real estate and service.

And we believe we have expertise in both.

With our possession of premium land parcels ideally located for

either hotels or serviced apartments, we will be fast-to-market

and that is critical. With our focus on quality and timelines, this

opportunity suits us.

In the next 4-5 years, we propose to have 3 properties

operational in Pune and Bangalore. The details of the projects

are:

200 high-end serviced apartments at Hinjawadi in Pune,

which are under construction and likely to be operational by

2009

A 5-star hotel at Nagar Road in Pune, which is at the planning

stage

A 4-star hotel and serviced apartments complex at Hosur

Road in Bangalore. This too is at the planning stage

We are confident that we will emerge as a significant player in

the hospitality business, with hotels and serviced apartments

in key locations pan-India.

a

TRUST US

to become one of the

most relevant players

in the Indian

hospitality sector

5


TRUST US

to be one of the most

sought-after partners

in the financial

community

man is known by the company he keeps. This is true for

our sector as well. And we have done well in this area.

ICICI Venture, Yatra Capital, Arora International, Pristine

Developers and Arista Properties have chosen Kolte-Patil to

partner. Not just once, but multiple times. We have three

partnerships with ICICI Venture, the largest Real Estate fund in

the country.

We have chosen a partnership approach to growth. Partnership

with strong financial partners ensures we are never short on

capital. They also bring strong financial discipline on the table.

With partnership, we de-risk and expand our horizons as well.

In our business, capital is also a raw material to grow and

financial partnership is the future.

We have several partnerships to our credit.

We are probably the only company in India to have entered into

such a number of meaningful JVs and partnerships. We are now

also looking at partnerships with reputed financial investors to

form real estate funds to leverage our expertise and earn

profits from our knowledge base. To grow. To lead. To dominate.

With partnerships and asset management, we have access to

long-term, high quality capital and this, in the long run, will

become our primary differentiator.

We are one of the most sought-after partners amongst the

financial community. Trust us.

a

7


Dear Shareholders,

This is my first communication to you after the IPO and I

welcome you all to the KPDL family. The year 2007-08

was a landmark year for KPDL, with the Company’s IPO

being amongst the most successful last year, getting

oversubscribed more than 45 times. The IPO has added

to the Company’s strength. To deliver. To grow. Your

Company believes that if you have the vision, the passion

and the determination, you can achieve anything. KPDL

too has a vision. To be the leader in the real estate

sector in the country. And the opportunity for this is

huge.

The Indian economy is on a structural uptrend and is

expected to grow at around 8.5% per annum for the next

few years. The buoyant growth in the economy, favourable

demographics, rapid urbanization and a liberalized

Foreign Direct Investment (FDI) policy have stimulated

demand for land and developed real estate across all

segments. Growing at an average annual rate of around

30%, Real Estate is amongst the fastest growing sectors

today.

With India’s rapid growth, cities like Bangalore,

Hyderabad, Chennai, Pune, Nagpur and Indore have

emerged as growth centres with companies from all over

the world looking at investing in these cities. This has led

to a substantial increase in the demand for new offices

and homes in these areas. Taking cognizance of this

opportunity, your Company is expanding its operations to

cover all these cities. KPDL also plans to make a foray

into the international real estate market and in line with

this, the Company has set up its presence in Dubai.

SEZs and large scale composite townships are going to

be high growth asset classes in the future. Over the last

decade and a half, the Company has established its

position as a prominent player in the residential and

commercial segments of the real estate industry. It has

acquired a reputation for consistently delivering very high

quality construction at affordable prices. KPDL plans to

leverage this experience and expertise to take on large

scale SEZ and township projects where size, quality,

affordability, sustainability, project management and

execution are key factors.

Chairman’s Message

8


The hotel sector in India has failed to keep up with India’s exponential

economic growth and there exists a substantial demand-supply gap. The result

has been high room rates and low availability across major cities in India. Your

Company believes that the country needs a large number of good quality hotels

and serviced apartments. With land bank in significant locations and expertise

in development, your Company has decided to aggressively participate in this

opportunity.

KPDL has constantly innovated to grow. The Company offers end-to-end

solutions i.e. from construction to maintenance to facility management of all its

projects. The Company has also constantly invested in advanced construction

techniques and in bringing new delivery models to India. One of the Company’s

major initiatives has been its partnership with its investors. Partnerships help

the Company grow more and reduce its risks on projects. Besides, as both

partners understand the value added by the other, they partner more projects.

It’s a virtual and mutually beneficial circle. Thus, the Company has three joint

ventures with ICICI Venture Funds Management Company. The Company has

also partnered with K2A Residential Limited (a subsidiary of Yatra Capital, UK),

Arora International and Arista Properties on various key projects.

Your Company’s ability to think big, grow and create value is inseparably linked

to its in-house talent pool. KPDL hires talent from different verticals to broaden

its knowledge base. It is because of its team that your Company has reached

here and is contemplating scaling newer heights.

Conservation of the environment is also an important value at KPDL. The

Company is adopting eco friendly sustainable construction techniques in all its

projects. On this basis, your Company is qualifying for the “GREEN HOMES”

certification by Indian Green Building Council (IGBC), the only authority in India

following the norms laid down by LEEDS, an international organization for

certification of industrial and commercial projects.

Before I conclude, I want to thank every customer, partner, employee and

investor for trusting us. We assure you of continuous growth and leadership.

Sincerely,

Rajesh Patil

Chairman & Managing Director

9


The Company: Kolte-Patil Developers Limited (KPDL) is

one of Pune’s foremost real estate companies. An ISO 9001:

2000 Company, KPDL has set a benchmark in the industry by

consistently creating high quality real estate over the last

decade and a half.

The Business: The Company has a strong presence

across all major asset classes including residential complexes,

serviced apartments, commercial complexes, integrated

townships, hospitality projects and IT parks.

KPDL has developed 26 projects as of date, including 23 in

Pune and 3 in Bangalore, covering a total of approximately 5

million square feet.

With a land bank of over 37.80 million square feet, the

Company currently has several new projects in the pipeline.

These developments will include 5 IT parks, 11 commercial

complexes, 10 residential complexes, 1 serviced apartment

building and 1 integrated township.

“We at KPDL endeavor to enhance

lives by creating great places to live

and work. We set the standards of

excellence by providing eco-friendly

integrated solutions that align with our

core values: honesty, innovation,

teamwork, excellence, customer

satisfaction, affordability, and a

commitment to time schedules. This is

our enduring legacy to the

communities we serve.”

Vision

COMPANY

SNAPSHOT

10


Reach: Renowned as one of Pune’s foremost real estate

companies, KPDL now seeks to broaden its horizons by

embarking on an expansion drive to attain a pan-India status.

The Company has already completed 3 projects in Bangalore and

is poised to undertake new projects in other cities across India.

KPDL plans to expand its operations internationally by developing

residential properties in Dubai and other GCC countries. The

Company has taken effective steps for setting up a

branch/representative office in Dubai through which it will

market its Indian properties in Dubai and other GCC countries.

Awards and Achievements: Government of

Maharashtra’s first prize for “Best IT Infrastructure in the State

of Maharashtra,” for GigaSpace IT park project in Viman Nagar,

Pune, at the Maharashtra Information Technology Awards.

Financial Performance (Consolidated):During 2007-08, KPDL recorded a total income of Rs. 4417.09

million, an increase of 75% over the previous year. The Company’s

EBIDTA stood at Rs. 1882.02 million against Rs. 1144.54 million in

2006-07, an increase of 64%. The Profit After Tax (PAT) of the

Company increased from Rs. 835.62 million in 2006-07 to

Rs. 1369.88 million in 2007-08, an increase of 64%. The shares of

the Company are listed on the Bombay Stock Exchange (BSE) and

the National Stock Exchange (NSE). “To deliver immaculate products and

services employing cutting-edge

infrastructure with meticulous

planning and execution. To provide

all our clients and investors

unparalleled value additions and

ROI. To attract and nurture the best

talent by virtue of 'best in the

business' practices.”

Mission

11


(Rs. in million)

Particulars 2007-08 2006-07

Sales 4,288.18 2,302.83

Total Income 4,417.09 2,524.43

EBIDTA 1,882.02 1,144.54

Depreciation 8.90 6.11

Finance Charges 80.22 55.61

Profit Before Tax (PBT) 1,792.90 1,082.82

Profit After Tax (PAT) 1,369.88 835.62

Equity Dividend (%) 17.50% 15.00%

Equity Share Capital 753.10 562.50

Reserves and Surplus 5,379.91 1,245.10

Networth 6,120.12 1,802.38

Investments 3,909.61 1,399.97

Net Block 584.56 80.57

Net Current Assets 3,294.80 1,824.55

Cash and Cash Equivalents 257.72 418.31

Total Debt 1,570.42 1,490.26

No. of shares 75,310,048 56,250,000

FINANCIAL HIGHLIGHTS

(CONSOLIDATED)

12


1082.82

1144.54

1882.02

Profit Before Tax (Rs. in mn)

EBIDTA (Rs. in mn)

Profit After Tax (Rs. in mn)

2006-07 2007-08

2524.43

4417.09

Total Income (Rs. in mn)

2006-07 2007-08 2006-07 2007-08

2006-07 2007-08

1792.90835.62

1369.88

13


OUR CORE TEAM

Rajesh Patil

Chairman & MDSunita Kolte

Executive DirectorNaresh Patil

Joint MDMilind Kolte

Executive Director

Girish Lakhe

Director Finance and Business Development

Ashok Dalwani

Chief Operating OfficerAjit Badve

Group Head HRDileep Deshpande

Chief Financial Officer in JV Companies

Executive Directors

Senior Management Team

14


OUR INITIAL PUBLIC OFFER

The Initial Public Offer (IPO) was perhaps one

of the most significant decisions ever taken

at Kolte-Patil. From being a closely held

company, KPDL is now widely held. Its IPO

was amongst the most successful last year,

getting oversubscribed more than 45 times.

The Company offered 1,90,00,836 equity

shares of Rs. 10 each (Face Value). The price

band was between Rs. 125 to

Rs. 145. The final price was fixed at the

upper end of the band at Rs. 145. The

shares were listed on the Bombay Stock

Exchange (BSE) and the National Stock

Exchange (NSE) on 13th December 2007,

when the stock recorded an intra-day high of

Rs. 230. The Company’s shares have

achieved an all time high of Rs. 272 on

7th January, 2008. The Company believes

that this IPO has enhanced its ability to grow

and lead in the industry.

15


Board of DirectorsRajesh Patil


Naresh Patil

Joint Managing Director

Milind Kolte

Executive Director

Sunita Kolte

Executive Director

Manish Doshi

Independent Director

Satish Tandon


G. L. Vishwanath


Achyut Watve


AuditorsM/S. S P C M & Associates

Chartered Accountants1211B, Shukrawar Peth,

Subhashnagar, Lane 4,

Pune - 411 002

Company SecretaryVinod Patil

Registered Office2nd Floor, City Point,

Dhole Patil Road,

Pune – 411 001 (Maharashtra)

Tel.: +91 20 6622 6500

Fax: +91 20 6622 6511

Website: www.koltepatil.com

Regional Office22/11, 1st Floor, Park West, Vittal Malya

Road,

Bangalore - 560 001 (Karnataka)

Tel.: +91 80 22242 803/22243 135

Registrar and Share Transfer AgentBIGSHARE SERVICES PRIVATE LIMITED

E/2, Ansa Industrial Estate,

Sakivihar Road,

Sakinaka, Andheri (E), Mumbai - 400 072

Tel.: +91 22 4043 0200

Fax: +91 22 2847 5207

Website: www.bigshareonline.com

E-mail: [email protected]

CORPORATE INFORMATION

16


17 Annual Report 2007-2008

Notice is hereby given that the SEVENTEENTH ANNUAL GENERAL

MEETING of KOLTE-PATIL DEVELOPERS LIMITED will be held at

Pudumjee Hall, Mahratta Chamber of Commerce, Industries &

Agriculture (MCCIA), Tilak Road, Near Swargate, Pune - 411 002,

Maharashtra on Wednesday, 30th July, 2008 at 11.30 a.m. to

transact the following business:

1. To receive, consider and adopt the Balance Sheet as at

31st March, 2008 and Profit and Loss Account for the year

ended on that date and the Report of the Directors and

Auditors thereon.

2. To declare final dividend for the financial year ended

31st March, 2008.

3. To appoint a Director in place of Mr. G. L. Vishwanath,

who retires by rotation and being eligible, offers himself for

re-appointment.

4. To appoint a Director in place of Mr. Satish Tandon, who

retires by rotation and being eligible, offers himself for re-

appointment.

5. To re-appoint Statutory Auditors to hold office from the

conclusion of this Annual General Meeting upto the

conclusion of the next Annual General Meeting and to fix

their remuneration.

Special Business:

6. To consider and if thought fit, to pass with or without

modification(s), if any, the following resolution as an

Ordinary Resolution.

“RESOLVED THAT the consent of the Company be and

is hereby accorded in terms of Section 293(1) (d) of the

Companies Act, 1956, and other applicable provisions, if

any, of the Companies Act, 1956, to the Board of Directors

of the Company (“The Board”) to mortgage and/or charge

any or all the immovable and movable properties of the

Company, wheresoever situate, present or future and to

borrow from time to time for the purpose of the Company’s

business any sum or sums of money as it may deem fit and

proper notwithstanding that the moneys to be so borrowed

together with moneys already borrowed by the Company, if

any (apart from temporary loans obtained from Company’s

bankers and Directors in the ordinary course of business)

may exceed the aggregate for the time being of the paid

up share capital of the Company and its free reserve, if

any, that is to say, reserves not set apart for any specific

purpose, provided that, the total amount of the moneys

already borrowed (apart from temporary loans obtained from

the Company’s bankers and Directors in the ordinary course

of business) shall not exceed Rs. 600 Crores (Rupees Six

Hundred Crores) outstanding at any one time and that

for the implementation of this resolution the Board may

act through any member thereof or any other person duly

authorized by the Board in that behalf.

RESOLVED FURTHER THAT Mr. Rajesh Patil, Chairman and

Managing Director and Mr. Milind Kolte, Executive Director,

of the Company be and are hereby severally authorized

to negotiate with Banks, Financial Institutions, Finance

Companies and Non-Banking Finance Companies and

accept terms and conditions of the loans/debts/ borrowings

for and on behalf of the Company.


Managing Director and Mr. Milind Kolte, Executive Director of

the Company be and are hereby severally authorized to sign

and execute on behalf of the Company all necessary papers,

documents, letters, agreements, undertakings, guarantees

and any other documents required for borrowings by the

Company.


Managing Director and Mr. Milind Kolte, Executive Director of

the Company be and are hereby authorized or any one Director

and Company Secretary, to affix Common Seal of the Company

on all the documents, papers, deeds, undertakings, guarantees

and agreements required to be executed for borrowings and

are authorized to do all the things, acts and deeds necessary to

give effect to this resolution.”

Registered Office:2nd Floor, City Point,Dhole Patil Road, Pune – 411 001

By Order of the Board of DirectorsFor KOLTE-PATIL DEVELOPERS LIMITED

19th May, 2008 Vinod Patil

Company Secretary

NOTICE

18Kolte-Patil Developers Limited

NOTES:

1. A member entitled to attend and vote at the meeting is

entitled to appoint a proxy to attend and vote instead of

himself and the proxy need not be a member of the

Company. The proxies to be effective should be deposited at

the registered office of the Company not later than 48 hours

before the commencement of the meeting. Blank proxy form

is attached.

2. Explanatory Statement pursuant to Section 173(2) of the

Companies Act, 1956 in respect of Special Business set

out above giving the required details is annexed hereto and

forms part of this Notice.

3. Members/Proxies attending the Meeting are requested

to bring their copy of the Annual Report for reference at

the Meeting and also the Attendance Slip duly filled in for

attending the Meeting.

4. Corporate members intending to send their authorized

representative to attend Meeting are requested to send

a certified true copy of Board Resolution authorizing their

representatives to attend and vote on their behalf in the

Meeting.

5. The Register of Member and Share Transfer Books of the

Company will remain closed from 22nd July, 2008 to

30th July, 2008 (both days inclusive) for the Annual General

Meeting and determining the name of members eligible for

dividend, if approved, at the Annual General Meeting.

6. The Dividend on Equity Shares, if declared, at this meeting,

will be paid on or before 30th August, 2008 to those

members entitled thereto whose names appear on the

Company’s Register of Members on 30th July, 2008, after

giving effect to valid transfer request received on or before

21st July, 2008 and the respective beneficial owner as per

list furnished by Depositories in respect of shares held in

dematerialized form on 21st July, 2008.

7. In order to provide protection against fraudulent encashment

of dividend warrants, Members holding shares in physical

form are requested to provide their Bank Account No.,

name and address of the Bank/Branch and MICR code

to the Company’s Registrar and Share Transfer Agents,

M/s. Bigshare Services Private Limited, E/2, Ansa Industrial

Estate, Saki Vihar Road, Saki Naka, Andheri (East) - 400 072

(RTA) and respective Depository Participants in respect

of shares held in dematerialized mode to enable them to

incorporate the same in the dividend warrants. The Company

or RTA will not act on any such request received from the

members for change in their account particulars.

8. Members holding shares in physical form are requested to

intimate the following directly to the Company’s RTA :

(a) Change if any, in their address with pin code numbers.

(b) Quote their ledger Folio No. in all their corres-

pondence.

(c) Send their Share Certificates for consolidation.

(d) Request for nomination forms for making nominations

as per Section 109A of the Companies Act, 1956, if

not already intimated.

REQUEST TO MEMBERS

Members desirous of getting any information/clarification on the Accounts and operations of the Company or intending to raise any

query are requested to forward the same at least 10 days in advance of the meeting to the Company Secretary so as the same may be

attended appropriately.

Members are requested to bring their copies of Annual Report, as the same shall not be distributed at the meeting.


ExPLANATORy STATEMENT PURSUANT TO SECTION 173 (2) OF THE COMPANIES ACT, 1956

Item No. 6

In view of the proposed financial requirements for purchase of

lands, ongoing projects, proposed projects, construction of

IT parks, project finance etc., the finance will be raised from

Financial Institutions, (including Overseas Financial Institutions,

Bankers, Non-Banking Financial Companies, Directors) by way of

issue of debentures, creation of charge or mortgage on movable

or immovable properties of the Company, wherever situates or

against pledge of shares, as long term and short term loans,

External Commercial Borrowings (ECB), Company may borrow up to

Rs. 600 Crores (Rupees Six hundred Crores).

The resolution placed before this meeting for shareholders

consideration and approval.

The consent of the members is, therefore, sought under provisions

of Section 293(1) (d) of the Companies, Act, 1956, to enable the

Directors to borrow the aforesaid amount.

None of the Directors is, in any way, concerned or interested in

this resolution.

CLAUSE 49 OF THE LISTING AGREEMENT

Brief profile of Director seeking re-appointment at the

forthcoming Annual General Meeting (Item Nos. 3 and 4 of

the Notice)

Mr. G. L. Vishwanath, 45 years, is a practicing Senior Lawyer

from Bangalore. He has 20 years of experience in the legal field.

He appears before various forums such as High Court, Civil,

Criminal and Consumer Courts, Tribunals, State Commission and

the Supreme Court of India. His areas of practice are Constitutional

Law, Corporate Law, M&A, Trade Marks, IPR, Contracts and

disputes relating to Land and Property matters. He has worked

previously for three years with ITC Limited, Kolkata.

Mr. Satish Tandon, 60 years is a graduate in Chemical Engineering

from Indian Institute of Technology, New Delhi and has done his

MBA from FMS New Delhi. He has also attended management

programs at Harvard Business School and Ashridge University,

UK. Mr. Tandon was the Managing Director of Alfa Laval (India)

Limited till October 2005. He was also the Chairman of four Alfa

Laval Group Companies. Currently he is the Director of Precision

Pipes and Profiles Co. Ltd., Esab India Ltd. and Modern Dairies

India Ltd. He has 38 years of rich experience in management of

various functions in Alfa Laval Group Companies. He is a recipient

of various prestigious awards such as ‘Udyog Ratna-Lifetime

Achievement Award’ from Wisitex Foundation, NRIA Award for

Excellence as Best Industrialist and IMM Award for Excellence

in 2003. He holds 700 equity shares of Rs. 10/- each of the

Company.

Registered Office:2nd Floor, City Point,Dhole Patil Road, Pune - 411 001

By Order of the Board of DirectorsFor KOLTE-PATIL DEVELOPERS LIMITED

19th May, 2008 Vinod Patil

Company Secretary


Directors’ reportTo,

The Members,

Kolte-patil Developers Limited,

Your Directors take pleasure in presenting the 17th Annual

Report on the business and operations of the Company,

together with the Audited Financial Accounts for the year ended

31st March, 2008.

Financial results

(Rs. in Millions)

particulars Year ended on 31st March,

2008

Year ended on 31st March,

2007Revenue 3,813.48 2,514.98Less: Expenditure 2,087.48 1,385.96Less: Financial Charges 64.63 42.97Less: Depreciation/Amortization

7.10 4.72

Profit Before Tax 1,654.27 1,081.33Less: Tax Expenses 367.67 246.23PAT (Profit After Tax) 1,286.60 835.10Add: Prior Period Item 2.00 3.46

Net Profit 1,288.60 838.56Add: Balance of profit brought forward from last year 728.44 119.73Less: Taxation in firm 9.20 –Total amount available for appropriation 2,007.84 958.29Appropriations:

General Reserve 128.66 211.52Dividend on equity shares 131.88 16.07Tax on dividend 22.42 2.26Balance carried to Balance Sheet 1,724.88 728.44

performance review

During the year under review, the total revenue has stepped up to

Rs. 3,813 millions, showing growth of 52% over the previous year.

During the current year, Company has incurred total expenditure

of Rs. 2,159 millions as compared to previous year Rs. 1,434

millions. The Company’s Profit Before Tax (PBT) also rose sharply

to Rs. 1,654 millions as compared to Rs. 1,081 millions in the

corresponding previous year. Your Company looks forward to a

manifold increase in development and sale of completed projects

in the years to come.

New Business initiatives

a. During the year under review, your Company has set-up

branch office at Dubai exclusively for marketing activities

and planning to register a new Company under Free Trade

Zone (FTZ) to develop some residential projects in Dubai.

b. Your Company has entered into Joint Venture Agreement

with UK based hotelier group to develop and operate five

star and four star hotels in Pune and Bangalore respectively

through SPV’s namely, Oakwoods Hospitality Private Limited

and Jasmine Hospitality Private Limited. Your company holds

51% equity in these companies.

c. The Company has entered into Joint Development Agreement

with Vibhu Developers Private Limited to set-up an IT–SEZ

on total area of 70 acres, near Rajiv Gandhi Infotech Park,

Hinjewadi, Pune.

d. Your Company has entered into Joint Venture Agreement

with Kolte-Patil Real Estate Private Limited, K2A Residential

Limited, Mr. Rajesh Patil and Regenesis Project Management

Company Private Limited for the development of real estate

projects including the residential project proposed to be

constructed at Pune.

Future outlook

To attain pan-India presence, your Company has planned to

spread development activity in hotels, commercial and residential

segments, in cities like Indore, Surat, Ahmedabad, Nagpur, Vizag,

Raipur, Hyderabad, Chennai and Navi Mumbai.

Your Company is also exploring its activities in the overseas

markets. As a part of this effort, the Company is considering some

residential and commercial projects in Dubai.

Your Company is pursuing new business opportunities like set-

up of own Real Estate Fund, Warehousing and logistics, financial

services and achieving the highest standards of professionalism,

ethics and customer service.

initial public offering

With the objective of augmenting capital base for funding future

growth plans, your Company entered the Capital Market and made

its Initial Public Offering (IPO) of 19,002,977 equity shares of

Rs. 10/- each at a premium of Rs. 135 per share through

100% Book Building process. The IPO was over-subscribed by

approximately 45 times. The Equity Shares of the Company were

Annual Report 2007-200821

listed on National Stock Exchange of India Limited and Bombay

Stock Exchange Limited on 13th December, 2007.

On behalf of the Company, your Directors take this opportunity to

thank all the investors for their overwhelming response to the IPO

and confidence reposed by them in the business.

Dividend

Your Directors are pleased to recommend, for your approval,

payment of the first dividend post IPO of Rs.1.75 per share (i.e.

@17.5% per share) on equity share capital of the Company.

Directors

There are no changes in the Board of Directors during the year

under review, except as mentioned below:

Mr. G. L. Vishwanath, Mr. Achyut Watve, Mr. Satish Tandon and

Mr. Manish Doshi have been co-opted as Additional Directors

with effect from 26th December, 2006. All the four Directors are

Independent Directors. Their appointment has been confirmed

unanimously in the 16th Annual General Meeting.

Pursuant to Section 256 of the Companies Act, 1956 read

with the Clause 167 of Articles of Association of the Company,

Mr. G. L.Vishwanath and Mr. Satish Tandon, Directors are retiring

by rotation and being eligible and have offered themselves for

re-appointment at the ensuing Annual General Meeting.

subsidiary companies

The Company has ten subsidiaries as on 31st March, 2008

namely, Regenesis Project Management Company Pvt. Ltd.,

Yashowardhan Promoters & Developers Pvt. Ltd., Sylvan Acres

Realty Pvt. Ltd., I-Ven Kolte-Patil Projects (Pune) Pvt. Ltd.,

Kolte-Patil Real Estate Private Limited, Lilac Hospitality Private

Limited, Olive Realty Private Limited, Bellflower Properties Private

Limited, Jasmine Hospitality Private Limited and Oakwoods

Hospitality Private Limited.

particulars under section 212 of the companies Act, 1956

As per Section 212 of the Companies Act, 1956, the Company is

required to attach the Directors’ Report, Balance Sheet and Profit

and Loss Account of its subsidiaries. However, the Company has

applied to the Government of India for an exemption from this

Section. The approval from the Government is awaited. Therefore,

the Annual Report does not contain the financial statements of the

above subsidiaries. The consolidated accounts present a full and

fair picture of the state of affairs and the financial condition. This

practice is globally accepted. The audited annual accounts and

related information of subsidiaries will be made available upon

request. These documents will also be available for inspection

during business hours at our registered office in Pune, India.

Fixed Deposits

The Company has not accepted any fixed deposits from the public

within the meaning of Section 58A of the Companies Act, 1956.

employees stock option scheme 2006 (esos)

During the year under review your Company implemented the

Kolte-Patil Employee Stock Option Scheme, 2006.

Disclosures in respect of the Kolte-Patil Employee Stock Option

Scheme, 2006 in compliance with Clause 12 of the Securities

and Exchange Board of India (Employee Stock Option Scheme

and Employee Stock Purchase Scheme) Guidelines, 1999, as

amended, are set out in Annexure IV to this Report and forms

part of this report.

investors’ relations and Grievances

Investors’ Relations have been cordial during the year. As a part of

compliance, the Company has formed Shareholders’ and Investors’

Grievance Committee to address the issues relating to investors.

There were no investor grievances pending as on 31st March, 2008.

A confirmation to this effect has been obtained from the Company’s

Registrar & Transfer Agent. A detailed report on the above appears in

Corporate Governance Report annexed to this Report.

Directors’ responsibility statement

In accordance with the provisions of Section 217(2AA) of the

Companies Act, 1956, your Directors state that:

i) In the preparation of accounts, the applicable accounting

standards have been followed and no significant departures

have been made from the same.

ii) Accounting policies selected were applied consistently.

Reasonable and prudent judgements and estimates were

made so as to give a true and fair view of the state of affairs

of the Company at the end of 31st March, 2008 and of the

profit of the Company for the year ended on that date.

iii) Proper and sufficient care has been taken for the maintenance

of adequate accounting records in accordance with the

provisions of the Companies Act, 1956 for safeguarding

of assets of the Company and for preventing and detecting

frauds and other irregularities.


iv) The Annual accounts of the Company have been prepared

on a going concern basis.

Auditors

The Auditors of the Company M/s. SPCM & Associates, Chartered

Accountants, Pune (formerly known as Bora Kasat & Co.) retire

at the ensuing Annual General Meeting. They have confirmed

their eligibility and willingness to accept office, if re-appointed.

Shareholders are requested to re-appoint them and fix their

remuneration.

Human resource Management

Employees are vital for the Kolte-Patil Group. The Company has

created favourable work environment that encourages innovation

and meritocracy. We have also set up scalable recruitment and

human resource management processes, which enables us to

attract and retain the high calibre employees.

conservation of energy, technology Absorption, Foreign

exchange earnings & outgo

A statement giving information of Conservation of Energy,

Technology Absorption, Foreign Exchange Earnings & Outgo

as required under Section 217 (1) (e) of the Companies

Act, 1956 read with the Companies (Disclosure of Particulars in

the Report of Board of Directors) Rules, 1988 is annexed hereto –

Annexure I and it forms part of this Report.

particulars of the employees

A statement required under Section 217 (2A) of the Companies

Act, 1956 has been furnished herein Annexure II and forms part

of this Report.

Management Discussion and Analysis report

Management Discussion and Analysis Report as stipulated under

Clause 49 of the Listing Agreement is annexed hereto and forms

part of this Report.

corporate Governance report

Your Directors adhere to the requirements set out in Clause 49

of the Listing Agreements entered with the Stock Exchanges.

Report on Corporate Governance as stipulated in the said Clause

is annexed and forms part of this Report.

Acknowledgements

The Directors would like to express their grateful appreciation for

the assistance and co-operation received from customers, vendors,

stakeholders, Central and State Government Authorities, other

business associates and bankers of the Company. Your Directors

take this opportunity to thank all the employees for rendering high

quality service to every constituent of the Company’s customers.

The employees have worked on principles of honesty, integrity,

fair play and this has helped to ensure a sustained excellence

in performance. Finally, the Directors would like to convey their

gratitude to the members and look forward to their continued

support.

cautionary statement

Statements made in the report, including those stated under the

caption “Management Discussion and Analysis” describing the

Company’s plan, projections and expectations may constitute

“forward looking statement” within the meaning of applicable

laws and regulations. Actual results may differ materially from

those either expressed or implied.

For and on behalf of the Board of Directors

Place: Pune rajesh patil

Date: 19th May 2008 Chairman and Managing Director


Annexures to the Directors’ reportANNeXUre i

Statement of Particulars under Section 217 (1)(e) of the

Companies Act, 1956 read with the Companies (Disclosure

of particulars in the Report of Board of Directors) Rules,

1988 forming part of Directors’ Report for the year ended

31st March, 2008.

1. conservation of energy:

Company’s Energy consumption is minimum. The Company

is striving to reduce energy consumption in the buildings

developed by the Company, by taking energy conservative

measures.

2. technology Absorption:

The Company has not undertaken any Research &

Development activity in Development of Technology in the

area of Construction.

3. Foreign exchange earnings and outgo:

Disclosure of information relating to foreign exchange

earnings and outgo as required under Rule 2(c) is already

given in point No. 7 in ‘Notes to Accounts’ forming part of

the Audited Annual Accounts.


Place: Pune rajesh patil

Date: 19th May 2008 Chairman and Managing Director


ANNeXUre ii

information as per section 217(2A) of the companies Act, 1956, read with the companies (particulars of employees) rules,

1975 and forming part of the Directors’ report for the year ended 31st March, 2008.

(Rs. in millions)

Name Designation Qualification Age Joining Date experience (Years)

Gross remuneration

previous employment, Designation

Rajesh Patil Chairman & Managing Director

Civil Engineer 44 25-Nov-1991 19 7.18 NA

Naresh Patil Joint Managing Director B.Com. 42 25-Nov-1991 17 7.18 NAMilind Kolte Executive Director B.Com., LLB 46 25-Nov-1991 18 7.17 NASunita Kolte Executive Director B.Com. 39 25-Nov-1991 15 7.19 NAGirish Lakhe Director - Finance

Business DevelopmentCA, CS 49 01-Dec-2006 24 5.27 Regenesis Project

Management Co. Pvt. Ltd., Chief Financial Officer

Hardeep Dayal* Gr. Chief Executive Officer MBA, BHM 36 01-Dec-2006 13 2.65 Regenesis Project Management Co. Pvt. Ltd., Chief Executive Officer


Place: Pune rajesh patilDate: 19th May 2008 Chairman and Managing Director

Notes:

1) *Indicates person employed for a part of the year.

2) Designation denotes the nature of duties also.

3) Gross Remuneration includes salary, Company’s contribution to Provident Fund, provision for leave encashment, allowances, perquisites but excludes Gratuity unless paid/payable.

4) Nature of employment and terms and conditions : The Nature of employment in the case of Chairman and Managing Director, Joint Managing Director and Executive Directors are contractual and terms of remuneration are governed under Board and Members’ Resolutions.

5) Experience includes number of years of service elsewhere wherever applicable.


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sr. No. Description Details

1. Name of the Scheme Kolte-Patil Employee Stock Option Scheme - 2006

2. Total Number of options to be granted under the plan 7,80,000 Equity Shares

3. Options granted during the year NA

4. Pricing formula The Compensation Committee decides exercise price based on Book Value of shares calculated by the Statutory Auditors of the Company, on the basis of last audited annual accounts of the Company.

5. Options vested as of 31st March, 2008 1,50,875 Equity Shares

6. Options excercised during the year 1,18,133 Equity Shares

7. Total number of shares arising as a result of exercise of options till 31st March, 2008 1,18,133 Equity Shares

8. Options lapsed/cancelled during the year 1,29,700 Equity Shares

9. Variation of terms of options NA

10. Money realised by exercise of options during the year Rs. 47,25,320

11. Total Number of options in force at the end of the year 5,32,167 Equity Shares

12. Employee wise details of stock options granted to Senior Managerial Personnel as on 31st March, 2008

Mr. Girish Lakhe - 63750*;Mr. Vasant Gaikwad - 30000*; Mr. Pramod Nemade - 25000*;Mr. Pravin Parandekar - 25000*;Mr. Abhay Patil - 25000*;Mr. Shahaji Ranaware - 10000*;Mr. Vinod Patil - 10000*;Mr. Hitendra Chaudhary - 10000*;Mr. Nelson Misquith - 25000*;Mr. Milind Pendse - 19750*;Mr. Vijay Bhide - 10000*;Mr. Dilip Borade - 10000*;Mr. Nitin Patil - 10000*;Mr. S.K. Prasanna - 25000*;Mr. Shodhan Lokhande - 12060*;Mr. Shashidhar K. - 10635**of these certain stock options have been exercised

13. Employees who were granted options amounting to 5% or more of the options granted during the year

Mr. Girish Lakhe - 63750 Stock Options

14. Employees who were granted options in any one year equal to or exceeding 1% of the issued capital of the Company at the time of grant

NA

15. Diluted Earning Per Share (EPS) pursuant to issue of shares on exercise of option calculated in accordance with Accounting Standard 20 (AS-20)

Rs. 21.08

Annexure-iVDisclosure in compliance with provisions of clause 12 of the securities and exchange Board of india (empolyees stock option scheme and employee stock purchase scheme) Guidelines, 1999.


corporAte GoVerNANce reportcoMpANY’s pHiLosopHY oN corporAte GoVerNANce

Kolte-Patil Group believes that Corporate Governance signifies ethical business behaviour in every sphere and with all constituents. This

ethical business behaviour can be ingrained in the character of the organization through tradition, value systems and commitment to

the later as much as the spirit of laws and regulations. Corporate Governance emerges as the cornerstone of the Kolte-Patil Group’s

governance philosophy of the trusteeship, transparency, accountability and ethical corporate citizenship.

In our endeavour to adopt the best Corporate Governance and disclosure practices, the Company complies with all the requirements of the

Clause 49 of the Listing Agreement(s), entered with National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

Pursuant to Clause 49 of the Listing Agreement entered with Stock Exchanges, the Company hereby presents a Report on Corporate

Governance to its members for the financial year 2007-08.

iNitiAL pUBLic oFFeriNG

Initial Public Offer of the Company was made in dematerialized form operated by NSDL and CDSL during the month of November

2007. International Security Identification Number (ISIN) allotted to the Company’s Equity Shares is INE094I01018. The shares of the

Company are listed on National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

BoArD oF Directors

The Board of Kolte-Patil Developers Limited comprises of Executive and Independent Directors with wide range of skills and expertise.

a) composition and category of Directors:

sr. No.

category Name of Director Date of Appointment

i. Promoter and Executive Directors Mr. Rajesh Patil - Chairman and Managing Director Mr. Naresh Patil - Joint Managing Director Mr. Milind Kolte - Executive Director Mrs. Sunita Kolte - Executive Director

15th April, 199515th April, 199515th April, 199515th April, 1995

ii. Independent and Non-Executive Directors

Mr. Satish Tandon - Independent Director Mr. G.L. Vishwanath - Independent Director Mr. Achyut Watve - Independent Director Mr. Manish Doshi - Independent Director

26th December, 200626th December, 200626th December, 200626th December, 2006

b) Attendance records and other Directorships:

The attendance at Board Meetings held during the year and the last AGM is given below:

Name of Director Board Meetings held during the tenure of the Directorship

Last AGM (Held on

4th July, 2007)

other Directorships

(including KpDL)

committee position (including KpDL)

Held Attended Member chairmanRajesh Patil 4 4 Yes 11 – –Milind Kolte 4 4 Yes 11 2 –Naresh Patil 4 3 Yes 1 – –Sunita Kolte 4 4 Yes 4 1 –Satish Tandon 4 2 No 4 7 1Manish Doshi 4 2 Yes 4 3 2G.L. Vishwanath 4 1 No 2 3 –Achyut Watve 4 2 No Nil 3 –

c) Details of sitting fees paid to the Non-executive Directors:

The Company does not pay any remuneration to its Non-Executive/Independent Directors apart from sitting fees. No sitting fees

were paid to Chairman and Managing Director as well as Whole-time Directors.


The sitting fees paid to the Directors for meeting of Board of Directors held during the financial year 2007-08 are as follows:

Name of Director sitting Fees paid for Board Meetings (Amt. rs.)27th June,

200726th September,

20076th December,

200728th January,

2008Mr. Achyut Watve 10,000/-* – – 20,000/-Mr. G. L. Vishwanath – – – 20,000/-Mr. Satish Tandon 10,000/-* – – 20,000/-Mr. Manish Doshi** – – – –

The maximum sitting fees at Rs. 20,000/- per meeting has been fixed by the Board. No sitting fees has been fixed for attending

meeting of audit committee, shareholders’ and investors’ grievance committee and remuneration committee.

* For board meeting held on 27th June, 2007, sitting fees of Rs.10,000/- per director have been paid.

**Mr. Manish Doshi made a gratuitous attendance for Board Meetings held during the financial year 2007-08.

d) Details of remuneration paid to the executive Directors of the company:

Remuneration paid to the Chairman and Managing Director and to the Executive Director is within the ceiling limit decided by the

shareholders in the last Annual General Meeting held on 4th July, 2007. Salary paid to the executive directors for the year ended

31st March, 2008 is as follows:

Name of Director Designation salary (rs. in millions)

Benefits (rs. in millions)

Mr. Rajesh Patil Chairman and Managing Director 6.13 1.05Mr. Naresh Patil Joint Managing Director 6.13 1.05Mr. Milind Kolte Executive Director 6.13 1.04Mrs. Sunita Kolte Executive Director 6.13 1.06

Benefits include employer’s contribution to provident fund and provision of leave encashment.

e) Board Meetings:

During the year under review, 4 Board Meetings were held on 27th June, 2007, 26th September, 2007, 6th December, 2007,

28th January, 2008 and the gap between two meetings has not exceeded four months.

The Company Secretary while preparing Board Meeting agenda and minutes ensures adherence to the applicable provisions of

the Companies Act, 1956. The minutes of the proceedings duly approved by the Chairman of the meeting are circulated to the

Members of the Board and confirmed by them in the next meeting.

Board also considers the recommendations of the audit committee and takes the note of the minutes of committee duly approved

by its Chairman.

f) shareholding of independent Directors:

Of the independent directors, Mr. Satish Tandon holds 700 equity shares of Rs. 10 each.

AUDit coMMittee:

The Audit Committee of the Company has been constituted in line with provisions of Clause 49 of the Listing Agreement read with

Section 292A of the Companies Act, 1956. The Audit Committee is comprised of 5 members, in which 4 members are Independent

Directors. Mr. Vinod Patil, Company Secretary of a Company acts as the secretary to the Audit Committee. The chairman of the Audit

Committee was present at the last Annual General Meeting of the Company. The Managing Director and Chief Financial Officer are

permanent invitees to the Audit Committee Meetings.


terms of reference to Audit committee

1. To investigate any activity within its terms of reference;

2. To seek information from any employee;

3. To obtain outside legal or other professional advice;

4. To secure attendance of outsiders with relevant expertise, if it considers necessary;

5. To oversee the Company’s financial reporting process and the disclosure of its financial information and to ensure that the financial

statement is correct, sufficient and credible;

6. To recommend to the Board, the appointment, re-appointment and if required, the replacement or removal of the statutory auditor

and the fixation of audit fees;

7. To approve payment to statutory auditors for any other services rendered by the statutory auditors;

8. To review, with the management, the annual financial statements prior submission to the Board for approval, with particular

reference to:

a. Matters required to be included in the Directors’ Responsibility Statement to be included in the Board’s Report in terms of

Clause (2AA) of Section 217 of the Companies Act, 1956

b. Changes, if any, in accounting policies and practices and reasons for the same

c. Major accounting entries involving estimates based on the exercise of judgement by management

d. Significant adjustments made in the financial statements arising out of audit findings

e. Compliance with listing and other legal requirements relating to financial statements

f. Disclosure of any related party transactions

g. Qualifications in the draft audit report.

9. To review, with the management, the quarterly financial statements before submission to the Board for approval;

10. To review, with the management, performance of statutory and internal auditors, and adequacy of the internal control systems;

11. To review the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and

seniority of the official heading the department, reporting structure coverage and frequency of internal audit;

12. To conduct discussion with internal auditors on any significant findings and follow up there on;

13. To review the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity

or a failure of internal control systems of a material nature and reporting the matter to the Board;

14. To conduct discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as

post-audit discussion to ascertain any area of concern;

15. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non

payment of declared dividends) and creditors;

16. To conduct management discussion and analysis of financial condition and results of operations;

17. To review statement of significant related party transactions (“related party transactions” shall have the same meaning as contained

in the Accounting Standard 18, Related Party Transactions, issued by The Institute of Chartered Accountants of India), submitted

by management;

18. To look into management letters / letters of internal control weaknesses issued by the statutory auditors;

19. Internal audit reports relating to internal control weaknesses; and


20. The appointment, removal and terms of remuneration of the chief internal auditor shall be subject to review by the audit

committee.

a) composition of Audit committee:

The composition of the audit committee as on 31st March, 2008 and attendance of members in the meetings held during the

financial year 2007-08 are as under:

Name of the Member Designation No. of meetings attended

Mr. Manish Doshi Chairman 4

Mr. Satish Tandon Member 2

Mr. G. L. Vishwanath Member 2

Mr. Achyut Watve Member 2

Mr. Milind Kolte Member 4

b) Meetings and Attendance:

During the financial year 2007-08, the Audit Committee met four (4) times on 27th June, 2007, 26th September, 2007, 06th

December, 2007 and 28th January, 2008.

sHAreHoLDers’ AND iNVestors’ GrieVANce coMMittee:

The shareholders and investors’ grievances committee of the board looks into the redressal of the investors’ complaints like non-receipt

of Annual Reports, dividend payments etc. and matters related to change or deletion of name, issue of duplicate share certificates,

dematerialization, rematerialization, transfer, transmission, consolidation, sub-division of shares, debentures and securities and other

allied transactions. It delegates power to the Executives of the Company to accomplish aforesaid objectives.

a) composition of shareholders’ and investors’ Grievance committee:

The following is the constitution of the committee:

Name of the Member Designation No. of meetings attended Mr. G. L. Vishwanath Chairman Independent DirectorMr. Manish Doshi Member Independent DirectorMr. Satish Tandon Member Independent DirectorMr. Achyut Watve Member Independent DirectorMrs. Sunita Kolte Member Executive Director

b) Meetings and Attendance:

The Committee meeting was held on 28th January, 2008, wherein all the members were present.

c) complaint status:

The complaint status from the date of listing upto 31st March, 2008 is as follows:

Number of complaints received No. of complaints resolved Number of complaints pending2286 2286 Nil

reMUNerAtioN AND coMpeNsAtioN coMMittee:

Remuneration committee of the Board looks into the appointment, re-appointment, determination, fixation of the remuneration and

revision in the remuneration payable to the existing Executive Directors of the Company from time to time, grant and allotment of stock

options to the eligible employees etc.


a) composition of remuneration committee:

The following is the constitution of the committee:

Name of the Member Designation categoryMr. Satish Tandon Chairman Independent DirectorMr. Manish Doshi Member Independent DirectorMr. G. L. Vishwanath Member Independent DirectorMr. Achyut Watve Member Independent DirectorMr. Milind Kolte Member Executive Director

b) Meetings of remuneration committee:

No meeting of remuneration committee was held during the year.

c) remuneration policy:

The remuneration policy of the Company is performance driven and in considering the remuneration payable to the Directors, the

remuneration committee considers the performance of the Company, the current trends in the industry, the experience of the

appointee, their past performance and other relevant factors.

sUBsiDiArY coMpANies:

The Company does not have a material non-listed Indian subsidiary whose turnover or net worth (i.e. paid up capital and free reserves)

exceeds 20% of the consolidated turnover or net worth respectively, of the listed holding and its subsidiaries in the immediately preceding

accounting year.

iNsiDer trADiNG coDe:

The Company has adopted the Employee Share Dealing Code in terms of the SEBI (Prohibition of Insider Trading) Regulations, 1992.

This code is applicable to all directors and designated employees. The code seeks to prevent dealing in company’s shares by persons

having access to unpublished, price sensitive information.

The Company regularly monitors the transactions in terms of the Employee Share Dealing Code undertaken by the employees of

the Company. The Company also informs the stock exchange(s) periodically about the transaction(s) undertaken by the designated

employees and their share holdings as per the regulations.

DetAiLs oF tHe ANNUAL GeNerAL MeetiNGs:

The details of previous three annual general meetings of the Company are as follows:

Financial Year Date and time Venue special resolutions passed

2004-05 30th September, 2005 at 11 a.m. City Point, 17, Boat Club Road,Pune - 411 001. –

2005-06 18th September, 2006 at 11 a.m. 1st Floor, Shop No. 46, Type – 4, V. V. Market, (Golani Municipal Market), Jalgaon - 425 001. –

2006-07 4th July, 2007 at 11 a.m. 2nd Floor, City Point, Dhole Patil Road,Pune - 411 001

5

During the financial year under review, no resolutions have been passed by postal ballot.


coMpLiANce oFFicer:

Vinod Patil

Company Secretary

Kolte-Patil Developers Limited Tel No.: +9120 66226500 Extn.: 549

2nd Floor, City Point, Fax No.: +9120 66226511

Dhole Patil Road, E-mail: [email protected]

Pune - 411 001.

DiscLosUres:

a) Materially significant related party transactions:

All related party transactions form part of the notes to the Balance Sheet. Saving those, there were no materially significant related

party transactions with its promoters, directors or its management, their subsidiaries or relatives, etc. that had a potential conflict

with the interest of the Company.

b) General shareholder information:

Day, Date and Time of AGM : Wednesday, 30th July, 2008 at 11.30 a.m.Venue : Pudumjee Hall,

Mahratta Chamber of Commerce, Industries & Agriculture (MCCIA), Tilak Road, Near Swargate, Pune - 411 002, Maharashtra.

Financial Year : 1st April, 2007 to 31st March, 2008

Date of Book Closure

Dividend Payment Date

Registered Office and Corporate Office

:

:

22nd July, 2008 to 30th July, 2008 (both days inclusive) 5th August, 2008 2nd Floor, City Point, Dhole Patil Road, Pune - 411 001Tel: +91-20-66226500Fax: +91-20-66226511

Compliance Officer : Mr. Vinod Patil, Company SecretaryWebsite Address : www.koltepatil.com

c) registrar & share transfer Agent:

Bigshare Services Private Limited is the Registrar & Share Transfer Agent (RTA) of the Company in respect of the equity capital in

demat and physical mode. Their address is as follows:

Bigshare services private Limited,

Unit: Kolte Patil Developers Limited, E/2, Ansa Industrial Estate, Sakivihar Road, Sakinaka, Andheri (E), Mumbai - 400 072 Tel: +91-22-404 30 200 Fax: +91-22-284 75 207 Website: www.bigshareonline.com

E-Mail: [email protected]

d) Market information:

The Company’s shares have been listed on following stock exchanges on 13th December, 2007 and the listing fees have been paid

to the exchanges.

i. National Stock Exchange of India Limited (NSE), Exchange Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051.


ii. Bombay Stock Exchange Limited (BSE), Phoroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.

Scrip Code BSE Code: 532924, NSE Code: KOLTEPATILISIN Number for NSDL and CDSL - for dematerialised shares INE094I01018

e) MarketPriceData:

The shares of the Company have been admitted for listing and trading on stock exchanges w.e.f. 13th December, 2007. The monthly

high and low quotations and volume of shares traded on BSE and NSE from that date till 31st March, 2008 are as follows:

BSE NSE

Month High(Rs.)

Low(Rs.)

No.ofShares

December 2007 268.00 175.00 53,470,614

January 2008 272.00 137.45 14,555,911

February 2008 179.90 123.60 2,769,637

March 2008 132.00 75.25 2,929,712

PerformanceincomparisontoBSESensex

Month High(Rs.)

Low(Rs.)

No.ofShares

December 2007 267.00 176.00 78,562,588

January 2008 272.00 136.25 19,221,297

February 2008 179.40 122.10 3,269,539

March 2008 135.00 80.30 3,412,373

PerformanceincomparisontoNSENifty

0

50

100

150

200

250

300

13-Mar-0813-Feb-0813-Jan-0813-Dec-07

Kolte - Patil Developers Sensex

0

5000

10000

15000

20000

25000

0

50

100

150

200

250

300

13-Mar-0813-Feb-0813-Jan-0813-Dec-07

Kolte - Patil Developers Nifty

0

1000

2000

3000

4000

5000

6000

7000


f) Distribution of shareholding/shareholding pattern as on 31st March, 2008:

a) the distribution of shareholding of the company as on 31st March, 2008 is as follows:

shareholding of nominal value totalHolders

% of totalHolders

total Holdingin rs.

% of totalcapital

0001 - 5000 89,250 97.63 55,012,580 7.30

5001 - 10000 1,092 1.19 8,668,170 1.15

10001 - 20000 500 0.55 7,494,690 1.00

20001 - 30000 165 0.18 4,268,690 0.57

30001 - 40000 69 0.08 2,444,850 0.32

40001 - 50000 74 0.08 3,536,080 0.47

50001 - 100000 125 0.14 9,172,260 1.22

100001 - 999999999 137 0.15 662,503,160 87.97

totAL 91,412 100.00 753,100,480 100.00

b) shareholding pattern as on 31st March, 2008 is as follows:

category No. of shares percentage (%)

Promoters (including Persons Acting In Concert) 56,250,000 74.69

Foreign Institutional Investors 3,481,109 4.62

Non-Resident Indians / Overseas Corporate Bodies 133,274 0.18

Mutual Funds, Financial Institutions and Insurance Companies 2,760,646 3.67

Private Corporate Bodies 3,936,145 5.23

Resident Indians 8,603,689 11.42

Employees 145,185 0.19

totAL 75,310,048 100.00

g) Means of communication:

The Company ensures that quarterly results have been published as per the listing requirements for information to the stakeholders

of the Company. Details of publication of quarterly results are as follows:

Quarter News paper Date of publication

31st December, 2007

1. Loksatta

2. The Economic Times

3. Business Standard

29th January, 2008

31st March, 2008

1. Loksatta

2. The Economic Times

3. Business Standard

20th May, 2008

The financial results and the press releases are posted on the Company’s website i.e. www.koltepatil.com

h) code of conduct:

Board of Directors of your Company has laid down its code of conduct and ethics for all board members and senior management

personnel of the Company and the same has been posted on the website of the Company. All Board members and senior

management personnel have affirmed compliance with the code.


DecLArAtioNs:

ceo / cFo certification

As required by sub clause V of clause 49 of the listing agreement entered with the stock exchanges, we have certified to the board that

for the financial year ended 31st March, 2008, the Company has complied with the requirements of the said sub clause.

For Kolte-patil Developers Limited For Kolte-patil Developers Limited

rajesh patil Vasant Gaikwad

Chairman & Managing Director Chief Financial Officer

19th May, 2008 19th May, 2008

compliance with code of Business conduct and ethics

As provided under Clause 49 of the Listing Agreement entered with the stock exchanges, the board members and the senior management

personnel have confirmed compliance with the Code of Conduct and Ethics for the financial year ended 31st March, 2008.

For Kolte-patil Developers Limited

rajesh patil


19th May, 2008


To,

The Members of Kolte-Patil Developers Limited,

We have examined the compliance of conditions of corporate governance, by Kolte-Patil Developers Limited, for the year ended

31st March, 2008 as stipulated in Clause 49 of the listing agreement of the said Company with stock exchanges.

The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to procedures

and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the corporate governance. It is

neither an audit nor an expression of opinion on the financial statement of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied

with the conditions of corporate governance as stipulated in the above mentioned listing agreement.

We state that as the records maintained, no investor grievances against the Company are pending for a period exceeding one month

before shareholders and investors grievance committee.

We further state that such compliance is neither an assurance as to the future viability of the Company nor efficiency or effectiveness

with which the management has conducted the affairs of the Company.

For s. V. Deulkar & co.

Company Secretaries

Place: Pune

Date : 19th May, 2008 Proprietor

F.C.S. 1321 C.P. No. 965

Auditors’ certificate


MANAGeMeNt DiscUssioN AND ANALYsis report1. economic overview

The country has enjoyed a growth of around 9% in 2007-08. In the coming years, India’s GDP is projected to grow at around 8.5% per annum. Many economists believe that despite the global growth slowdown, the Indian economy will record steady growth in 2008-09 as it is relatively more immune than most other countries in Asia (exports account for only around 15% of the GDP) and earnings risk is isolated to certain sectors. The country’s overall macroeconomic fundamentals are strong, particularly with tangible progress in recent years towards fiscal consolidation and a strong balance of payments position.

India has one of the largest young population in the world, spurring a boom in consumption and spending in the country. As a result companies from all over the world are setting up a base in India. Development and construction activity has significantly increased with demand for new offices, homes and malls in urban and semi-urban areas. Today, the country boasts of companies with world-class capabilities in sectors such as automobiles, information and technology, manufacturing and pharmaceuticals.

All this bodes well for companies engaged in real estate development.

2. industry overview

The Indian real estate industry has participated as well as acted as a catalyst in the Indian growth story. The buoyant growth in the economy, favourable demographics, rapid urbanization and a liberalized Foreign Direct Investment (FDI) policy have stimulated demand for land and developed real estate across all segments. Demand for residential, commercial and retail real estate is rising throughout the country, accompanied by increased demand for hotel accommodation and better infrastructure. In addition, tax and other benefits applicable to special economic zones (SEZs) are also expected to result in a new source of demand.

In the year 2007, the sector recorded a growth rate of over 30%. According to industry estimates, the sector is likely to grow at around 35-40%, crossing USD 80 billion by 2015.

residential real estate

A number of factors have contributed to the growth of the residential real estate market in the country. These include increasing population, rising income levels of a growing middle class along with the increase in the number of nuclear families, low interest rates, modern attitudes to home ownership (the average age of a new home owner in 2006 was 32 years compared to 45 years a decade ago) and a change of attitude amongst the young working population from that of ‘save and buy’ to ‘buy and repay’ have all combined to boost housing demand. Currently, the residential segment constitutes around 90% of the total market by volume.

It is estimated that the potential housing demand over 2006-2010 would amount to over 9.5 billion sq. ft., with the top seven cities demanding over 500 million sq. ft. of Grade A and B housing.

commercial real estate

India’s commercial office space demand has been driven by the steady growth of the economy, influx of multinational corporations and growth in sectors such as FMCG, telecom, banking and financial services and by the burgeoning outsourcing and Information Technology (IT) industry. The IT/ITES sector accounts for around 70% of the total commercial real estate demand in the country.

India’s domestic Information Communication Technology (ICT) market is expected to grow at a five-year CAGR of around 20% to reach approximately USD 24 billion by 2011. Analysts estimate an incremental demand of over 600 million sq. ft. of IT office space over the next 10 years.

According to industry estimates, investment in commercial construction is expected to increase threefold over the next 5 years from Rs. 408 billion in FY 2007 to Rs. 1179 billion in FY 2011.

investment in commercial construction

2006-07 to 2010-11 (Rs. 1,179 billion)

Hospitals 23%Hotels 7% Retail 8%

Office Space 62%

2001-02 to 2005-06 (Rs. 400 billion)

Retail 13%Hospitals 36% Hotels 8%

Office Space 43%


retail real estate According to industry estimates retail has become one of the

fastest growing sectors in the Indian economy over the last few years. The retail sector in India is currently estimated to be more than USD 300 billion, of which organized retail constitutes around 4%. Going forward, organized retail is expected to grow at a rate of around 30% per annum and is projected to attain a size of USD 100 billion by 2012. Considering this, it is estimated that the market would demand over 300 million sq. ft. of retail space over the next five years.

special economic Zones (seZs) and it parks Development

SEZs are specially delineated duty-free enclaves deemed to be foreign territories with respect to Indian Customs controls, duties and tariffs. SEZs by virtue of their size are expected to be a significant new source of real estate demand in the future. With 100% FDI permitted in SEZs, this segment is attracting a lot of attention from the industry. It is estimated that around USD 20 billion will be invested in this sector over the next five years.

In the last five years, there has been tremendous growth in the number of IT parks in the country that are geared to meet the requirements of the knowledge industry. Several have come up in key IT and ITES markets like Bangalore, Pune, Hyderabad, Chennai etc. giving a tremendous boost to the overall economic development of these places.

Hospitality Strong growth in the service industry has led to another

interesting consequence. There has been an enormous increase in business travel. Similarly rising incomes has led to increased inbound tourism. According to estimates, there were more than 4 million foreign arrivals in India in 2006 and this number is expected to grow at a CAGR of around 9% in the next five years. Besides this, approximately 300 million domestic travellers traverse the country each year and this number is expected to witness a growth of around 12% over the next five years. This has led to an acute shortage of quality hotel rooms across India. Double digit growth rate in the tourism industry has had a cascading effect in the hospitality sector which has recorded an estimated 12.5% growth in 2007-08. Occupancy rates are at their peak of more than 70%.

Room demand is expected to grow at a CAGR of 10% over the next five years and it is estimated that another 100,000 to 125,000 rooms need to be added across the country to be able to meet this increase in demand.

3. Business overview Kolte-Patil Developers Limited is one of the premier real

estate development companies in Pune. Incorporated initially as a private limited company in 1991, the Company is primarily focused on the development of residential projects, commercial projects, IT parks and integrated townships mainly in Pune and Bangalore.

Till 31st March, 2008, the Company has concluded 26 projects including 23 in Pune and 3 in Bangalore aggregating around 5 million square feet of saleable area. This includes 16 residential complexes, 4 commercial complexes, 3 commercial cum residential use and 3 IT parks.

The Company is currently executing 28 projects, including 24 in Pune and 4 in Bangalore. This includes 5 IT parks, 11 commercial complexes, 10 residential complexes, 1 serviced apartment building and an integrated township at Pune.

The Company’s present operations are principally based in and around Pune and in Bangalore.

pune Pune, including Pimpri-Chinchwad is the eighth largest

city in India with a population of around 5 million people. Buoyed by strong economic conditions, favourable demographics and consumer spending, Pune continues to grow at a rapid pace. The city’s real estate sector has witnessed rapid growth in 2007. Maximum development continues to be in the peripheral regions due to lack of availability of large land parcels in central locations. Out of this, a major part of the development is concentrated in the eastern and western part of Pune.

• residential segment The residential market in Pune continues to remain

strong, aided by strong demand from the IT/ITES sector. The developers have geared up to keep pace with the rise in quality demand leading to a significant change in project profiles, housing patterns and facilities offered. Approximately 26 million sq. ft. of residential space has been added to the market in 2007, of which around 70% has been contributed by the western and eastern zone. In 2008, over 30 million sq. ft. of new residential supply is expected to be added to the residential market.

A large share of the upcoming residential space is contributed by the various townships in Pune, majority of which are concentrated in and around the IT hubs. Our Company and ICICI Ventures has formed an SPV which is developing an integrated township over 400 acres near Rajiv Gandhi IT park, Hinjewadi. Hinjewadi is strategically located, with proximity to the Mumbai-Pune expressway and the Mumbai-Bangalore highway and this makes it an ideal location for such development.

Other upcoming and proposed residential projects of the Company in Pune include Dew Drops, Hills and Dales, Green Groves, Pimple Nilakh, Kharadhi 58 and Lush County.

• commercial segment Approximately 9 million sq. ft. of office space was

added in Pune in 2007, out of which around 60% came up in the eastern zone, mainly in locations like Kharadi, Kalyani Nagar and Viman Nagar. Hinjewadi, in the western zone contributed to around 20% of the total new supply in 2007.


In 2008, around 7 million sq. ft. of office space is expected to enter the market, with over 60 % of the total supply in the eastern zone.

The major upcoming and proposed commercial projects of the Company in Pune are Teraspace, Shoppers Orbit, Bizz Bay, Bavdhan and Kharadhi 53 & 54.

• Hospitality Over the last few years Pune has emerged as a

favoured IT/ITES destination of India. Good quality of life, low cost of living, rapid pace of infrastructure development and aggressive promotion by the government has attracted the interest of national and international corporates to the city. The hotel industry in Pune is upbeat with demand touching an all time high. In 2007, the occupancy rates were at around 80% and the Average Room Rent (ARR) went up by more than 50%.

The Company is making a foray into the hospitality segment through a joint venture with Arista Properties to develop a serviced apartment project at Hinjewadi, Pune. The Company has also entered into a joint venture with Arora International (a UK based hotelier) to develop premium segment 320 key hotel on Nagar Road, Pune. This project is expected to be completed by 2009.

Bengaluru (Bangalore) Bangalore is one of the fastest growing cities in Asia, with

a population of over 6 million, making it India’s third largest city in India. Bangalore is often referred to as the Silicon Valley of India and accounts for over a third of the nation’s software exports. The real estate market of Bangalore witnessed steady growth in 2007. A significant development was the approval of the City Development Plan (CDP)-2015 for Greater Bengaluru. The revised CDP permits a FAR upto 3.5, which would result in taller buildings in future. The CDP also proposes to set up five satellite towns around the city. The State Government has also commenced related infrastructure developments to improve connectivity across the city, which includes the Metro, the Monorail, expressway to the new international airport at Devanahalli and widening of existing roads.

• residential segment The IT sector employees and NRIs are primarily driving

the demand for customised high-end residential properties in Bengaluru. The demand for residential set-ups with amenities has led to township projects in the peripheral locations. The new international airport and the improved connectivity of the roads are the key drivers for rapid real estate development in the north. A total of around 27 million sq. ft. of residential space will come up in 2008, as against the estimated addition of about 16 million sq. ft. to the stock in 2007.

The Company has already concluded three residential projects in Bangalore by 2007. The Company is

developing one residential project called Subha at Bangalore. This project is expected to be completed by 2009.

• commercial segment Bangalore continues to be one of the top IT destinations

in the country. Though the IT/ITES sector remains the major demand driver for office space in the city, other sectors like biotechnology and textile industry have further fuelled the demand for office space. Around 13 million sq. ft. of new office space entered the market in 2007. It is estimated that a fresh supply of 8.3 million sq. ft. will be ready in 2008.

The Company is developing two commercial projects in the commercial segment in Bangalore.

• Hospitality Bangalore has a fairly diverse portfolio of activities with

firms manufacturing machine tools, auto-components and electronic goods, besides the IT sector. All these varied business activities have led to a phenomenal demand in the hospitality sector. The city accounts for over 50% of foreign business travellers visiting India annually. International corporate travellers occupy almost 90% of the hotel rooms in Bangalore. It is estimated that hotel room rents in Bangalore are third highest in the world and highest in India due to shortage of rooms. The city has around 3,500 rooms in the premium category, which is abysmally low to cater to the growing demand.

Considering the above, the Company has entered into a joint venture with Arora International to develop a 430 key premium segment hotel at Hosur Road, in Bangalore. This project is expected to be completed by 2011.

4. opportunities and threats opportunities The stable economic growth that the country is witnessing

is one of the major boosters for the real estate industry. Liberalization of the economy has been driving the sector towards further development. Furthermore, the influx of foreign investments and the growing middle class makes this sector highly attractive offering immense growth potential for the Company’s business.

The growing urbanization of the Indian population has sparked an acute shortage of housing units. Decline in EMIs due to the fall in housing finance rates and the availability of tax incentives on housing loans are increasing the need for housing units in cities and towns. There is an increasing demand from the growing IT/ITES sector, the retail industry, the entertainment and the hospitality industry as well. The opportunity is huge.

The Company currently operates in the two cities of Pune and Bangalore.

Being the eighth largest city in India with a population of around 5 million, Pune is the second largest city in


Maharashtra and the sixth largest metropolitan economy in India. Pune’s population has grown rapidly in the past ten years and currently has many upcoming residential areas apart from it being having emerged as a preferred location for offshore businesses. Having earned the epithet of the “Oxford of the East”, Pune has also carved an identity for itself on the IT map.

Referred to as the Silicon Valley of India, Bangalore which accounts for one-third of the nation’s software exports is one of Asia’s fastest growing cities having a population of over 6 million. It is India’s third largest city and its fifth-largest metropolitan area. The Company, with its past and current ongoing projects based out of Pune and Bangalore, is well poised to avail of the whole assortment of opportunities that both these development hubs continue to offer. It also plans to fan out and expand to other cities pan- India and capitalize on the opportunities on offer, as an early mover advantage.

The Company’s ongoing joint venture with venture capital funds like ICICI Venture and Yatra Capital enables it to further pursue larger projects like IT Parks, integrated townships, large scale residential projects and so on.

threats

The Company operates in a highly fragmented and competitive industry. Our competition varies depending on the size, nature and complexity of the project to be executed. The level of transparency and sharing of data among players is a potential concern.

One of the main drivers of growth for real estate is the availability of finance at low rates. The threat of rising interest rates may dampen this growth.

Increasing raw material prices is another area of concern. Construction involves a lot of pre-determined revenue valuation. Realization of this revenue is scattered across the period of construction. A significant threat that the real estate developers face is dealing with increase in raw material prices which may lead to spiraling costs. With superior methodologies, prior experience and improved processes and systems, the Company strives to differentiate itself and ensure strong growth and profitability.

5. outlook

Sustained growth factors like rising incomes and easy financing continue to supplement the growth of the real estate industry. The outlook for the Company remains to be upbeat. While your Company plans to continue with its development in and around Pune and Bangalore, we also plan to target high-growth markets across India.

The Company is currently executing a large number of projects and has built a healthy order book and intends to take advantage of all the opportunities coming its way, by which it can further scale up and leverage its business.

6. risk Management

economic risk

Our business is substantially affected by the prevailing economic conditions in India

A general slowdown in the economic growth in India could cause a delay in the execution of our projects. Our performance and the quality of our assets are necessarily dependent on the health of the overall Indian economy and the local economies in which we build our projects. A general rise in the interest rates, weather conditions adversely affecting agriculture, commodity and energy prices, future volatility in global commodity prices and various other factors could affect the economy.

However, given the estimate of at least 8% growth in the economy till 2010, the burgeoning consumer spending and the increasing demand for quality real estate, we do not expect to be significantly affected by this risk.

Geographical risk

We are dependent on the performance of, and prevailing conditions affecting, the real estate market of Pune and Bengaluru.

The Company’s business operations are subject to the performance of the real estate market of Pune and Bengaluru in particular. Changes in government policies, local economic conditions, demographic trends, employment and income levels and interest factors among others may impact the demand for and valuation of our projects under implementation and future projects in these areas.

We also seek to diversify our geographic focus. In areas that are new to us we may face various risks like running into delays complying with local laws that are unfamiliar to us, or fitting in with and taking advantage of local practices relevant to real estate transactions and development.

competition risk

This risk arises from more players wanting a share in the same pie.

We face competition from other entities engaged in the real estate development business, many of whom undertake projects similar to ours in the same regional markets in which we operate.

Currently however, in specific projects like the development of IT parks we stand at an advantage under a regulatory scheme that provides tax exemptions for such projects. Besides, given our expertise and experience in our area of operations, sound financials and a highly qualified and experienced management team, we believe we have a strong foothold in the industry and do not expect to be significantly affected by this risk.


regulatory risk If we are unable to obtain required approvals and

licenses in a timely manner, our business and operations may be adversely affected.

We require certain approvals, licenses, registrations and permissions for operating our business. We may encounter delays in obtaining these requisite approvals, or may not be able to obtain such approvals at all. This would affect the schedule of development and sale or letting of our projects could be delayed.

However, given the fact that the Government both at a national and state level, is trying to ease the way for real estate developers to accelerate the growth in infrastructure and since, all industry predictions suggest that it will continue to do so in the future, we do not expect this risk to affect us materially in the coming years.

raw Material risk Our business is affected by the rise and fall in the

prices of requisite raw materials. Prices of these commodities are highly volatile in nature.

A lot of our business depends upon the availability, cost and quality of the raw materials that are needed to construct and develop our properties. Our principal raw materials include steel, cement, wood, sand, glass and aluminium. The prices and supply of these and other raw materials depends on factors which may not be entirely under our control including, general economic conditions, competition, production levels, transportation costs, import duties etc.

The Company has over the years developed an excellent relationship base with its suppliers and with effective planning and controls it can well manage to predict and take necessary measures to ensure a smooth and cost-effective supply of raw materials.

Labour risk We are in a labour intensive business and are therefore

exposed to the vagaries of the workforce. The Company recognizes the importance of human capital

and has formulated its human resource policy in such a way that it helps create a motivated workforce. All the units of the Company enjoy cordial industrial relations. We have not experienced any work stoppages or significant labour disruptions during our operational history and thus, we believe our exposure to this risk is limited.

7. internal control systems and their Adequacies The Company has internal control systems, which are

adequate, considering the size and nature of its operations. From time to time the Company is increasing the scope of internal auditors to improve efficiency and introducing greater controls over various aspects of the Company’s procedures and systems. The Company is also utilizing new techniques and data systems for its management information systems.

The internal control system is supplemented by extensive internal audits, regular reviews by management and standard policies and guidelines to ensure the reliability of financial and all other records.

8. Discussion on financial performance (consolidated) income: The Company recorded total income of

Rs. 4417.09 million, as compared to Rs. 2524.43 million for the previous year, a growth of 75 %.

eBiDtA: The Company’s EBIDTA stood at Rs. 1882.02 million against Rs. 1144.54 million in 2006-07, an increase of 64%.

pAt: The Profit After Tax (PAT) of the company increased from Rs. 835.61 million in 2006-07 to Rs. 1369.88 million, an increase of 64%.

Overall, the Company is on a strong growth path and its efforts to improve efficiency, productivity and profitability will improve overall returns.

9. Material Developments in Human resources The Company recognizes the importance of human capital

and believes that its employees are the key contributors to its business success. Being a very young organization with an average age of 35, the Company aims to emerge as the ‘Employer of Choice’ in the Real Estate vertical.

Our workforce consists of (i) Our permanent employees (ii) Consultants who are engaged by us on a contractual basis to assist in the architectural and structural design of our projects and (iii) Contractors who are engaged by us on a contractual basis and who employ labourers to work on project sites. As at 31st March, 2008, the Company had 433 permanent employees.

We are the one of the few companies in the real estate sphere to have a comprehensive ESOP program. With a comprehensive implementation of the Employee Satisfaction Index in place, the Company has a team-based incentive program and boasts of a benchmarking compensation structure matching up to the best in the industry.

The Company is putting unremitting efforts to employ professionally qualified personnel in different hierarchies of administration. The Company has tie-ups with leading engineering institutions for training existing staff. Requisite training is given to employees at different levels by identifying their relevant needs.

The Company provides challenging career development opportunities and is known to encourage innovative thinking. It monitors employees’ performance to enhance individual and organizational performance. Employee relations continue to remain cordial.

10. cautionary statement Statements in the Management Discussion and Analysis

describing the Company’s objectives, projections, estimates, expectations may be “forward looking statements” within the meaning of applicable securities, laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the Company’s operations include economic developments within the country, demand and supply conditions in the industry, input prices, changes in Government regulations, tax laws and other factors such as litigation and industrial relations.


Auditors’ ReportTo,

The Members of Kolte-Patil Developers Limited

We have audited the attached Balance Sheet of Kolte-Patil

Developers Limited, as at 31st March, 2008 and the Profit

and Loss Account and also the Cash Flow Statement of the

Company for the period ended on that date annexed thereto

(all together referred) to the financial statement. These financial

statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on these financial

statements based on our audit.

We conducted our audit in accordance with auditing standards

generally accepted in India. Those standards require that we

plan and perform the audit to obtain reasonable assurance

about whether the financial statements are free of material

misstatement. An audit includes examining on a test, basis

evidence supporting the amount and disclosure in the financial

statement. An audit also includes assessing the accounting

principles used and significant estimates made by management,

as well as evaluating the overall financial statement presentation.

We believe that our audit provides a reasonable basis for our

opinion.

As required by the Companies (Auditor’s Report) Order, 2003

issued by the Central Government of India in terms of sub-section

(4A) of Section 227 of the Companies Act, 1956 and according

to the information and explanations given to us during the course

of the audit and on the basis of such checks as we considered

appropriate, we have enclosed in the Annexure a Statement on

the matters specified in the paragraphs 4 and 5 of the said order,

to the extent applicable to the Company.

Further to our comments in Annexure referred to in paragraph

above, we report that:

i. We have obtained all the information and explanations which

to the best of our knowledge and belief were necessary for

the purpose of audit;

ii. In our opinion, proper books of account as required by law

have been kept by the Company, so far as appears from our

examination of the those books;

iii. The Balance Sheet and Profit and Loss Account and Cash

Flow Statement dealt with by this report are in agreement

with the books of account;

iv. In our opinion, the Balance Sheet and Profit and Loss

Account and Cash Flow Statement dealt with by this

report comply with the accounting standard referred to in

sub-section (3C) of Section 211 of the Companies Act.

1956;

v. On the basis of written representation received from the

Director, as on 31st March, 2008 and taken on record by

the Board of Directors, we report that none of the director is

disqualified as on 31st March, 2008 from being appointed

as director in terms of Clause (g) of sub-section (1) of

Section 274 of the Companies Act, 1956;

vi. In our opinion, and to the best of our information and

according to explanations given to us, the accounts read

with notes thereon give the information required by the

Companies Act, 1956, in the manner so required and give a

true and fair view in conformity with the accounting principles

generally accepted in India:

a) In case of the Balance Sheet, of the state of the

Company’s affairs as at 31st March, 2008;

b) In case of the Profit and Loss Account of the profit of

the Company for the period ended on that date; and

c) In the case of Cash Flow Statement, cash flow of the

Company for the period ended on that date.

For SPCM & Associates

(Formerly known as Bora Kasat & Co.)

Chartered Accountants

CA Suhas P. Bora

Place: Pune Partner

Date: 19th May, 2008 Membership No. 039765


ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT

OF EVEN DATE AND IN TERMS OF THE EXPLANATIONS AND

THE INFORMATION GIVEN TO US AND ON THE BASIS OF SUCH

CHECKS AS WE CONSIDERED APPROPRIATE, WE FURTHER

STATE THAT:

1. In our opinion and according to the information and

explanations given to us, the nature of Company’s business/

activities during the year is such that the requirements of

clauses (xiii) and (xiv) of paragraph 4 of the Companies

(Auditor’s Report) Order, 2003 are not applicable to the

Company.

2. In respect of Fixed Assets:

a) The Company has maintained proper records showing

full particulars including quantitative details and

situation of Fixed Assets.

b) As explained to us, the fixed assets have been

physically verified by the management during the year

in a phased periodical manner, which in our opinion is

reasonable having regard to the size of the Company

and nature of its assets. No material discrepancies

were noticed on such physical verification.

c) None of the fixed assets have been sold/disposed off

during the year. Hence the going concern concept has

not been affected.

d) None of the Fixed Assets has been revalued during

the year.

3. In respect of Inventories:

a) As explained to us, an inventory of major items of

building materials and stores has been physically

verified by the management at reasonable intervals

during the year. In our opinion, the frequency of such

verification is reasonable.

b) In our opinion and on the basis of the information and

explanations given to us, the procedures for physical

verification of inventory followed by the management

are reasonable and adequate in relation to the size of

the Company and the nature of its business.

c) The Company has not maintained proper records of

inventory. The discrepancies if any, noticed on physical

verification of stock as compared to the book records,

could not be determined.

d) The valuation of stocks is fair and proper and in

accordance with the normally accepted accounting

principles and is on the same basis as in the preceding

year.

40. a) The Company had taken loan from parties covered in the

register maintained under Section 301 of the Companies

Act, 1956. The maximum amount involved during the

year was Rs. 51.20 million Credit and the year end

balance was Rs. 54.00 million.

b) In our opinion the rate of interest and other terms and

conditions on which loan has been taken from a party

listed in the register maintain under Section 301 of the

Companies Act 1956, are not prima facie, prejudicial

to the interest of the Company.

c) The Company is regular in repaying the principal

amounts and has been regular in the payment of

interest.

d) In respect of loans and advances in the nature of loans

given to employees and other parties by the Company,

wherever stipulations have been made parties have

repaid the principal amounts as stipulated.


explanations given to us, there are adequate internal

control procedures commensurate with the size of the

Company and nature of its business with regard to purchase

of construction material, fixed assets, and with regard

to the sale of units. During the course of our audit, we

have not observed any continuing failure to correct major

weaknesses in internal controls.


explanations given to us, the transactions that needed to be

entered in the Register in pursuance of Section 301 of the

Companies Act, 1956 have been entered.

In our opinion and according to the information and

explanations given to us, there are transactions made in

pursuance of contracts or arrangements entered in the

register maintained under Section 301 of the Companies

Act, 1956 have been made at prices which are reasonable

having regard to the prevailing market prices at the

relevant time.


explanations given to us, the Company has not accepted

Annexure to the Auditors’ Report


any deposit from the public within the meaning of Section

58A and 58AA of the Companies Act, 1956 or any

other relevant provision of the act and the Companies

(Acceptance of Deposits) Rules, 1975.

8. In our opinion, the Company has an internal audit system

commensurate with its size and the nature of its business.

9. The Central Government has not prescribed maintenance

of cost records under Section 209(1) (a) of the Companies

Act, 1956, for any of the operations of the Company.

10. The Company is regular in depositing with appropriate

authorities undisputed statutory dues including providend

fund, employees’ state insurance, income tax and other

material statutory dues applicable to it. According to the

information and explanations given to us, no undisputed

amounts payable in respect of Wealth Tax, Income Tax and

Sales Tax were outstanding as on 31st March, 2008 for

period of more than six months from the date they became

payable.

11. The Company does not have any accumulated losses at

the end of financial year and has not incurred cash losses

in the financial year and in the immediately preceding

financial year accordingly, paragraph 4 (x) of the Order is

not applicable.

12. According to the information and explanations given to

us and based on our observations during the audit, the

Company has not defaulted in repayment of dues to any

financial institution or bank.

13. The Company has not granted any loans and advances on

the basis of security by way of pledge of shares, debentures

and other securities. Accordingly, paragraph 4 (xii) of the

Order is not applicable.

14. According to the information and explanations given to us

and the representations made by the management, the

Company has not given any guarantee for loans taken by

others from banks or financial institutions. Accordingly the

provisions of Clause (xv) of paragraph 4 of the Companies

(Auditor’s Report) Order, 2003 are not applicable.


us and representations made by the management, term

loans have been applied for the purpose for which they

were raised.

16. According to the information and explanations given to us

and on an overall examination of the Balance Sheet of the

Company, we report that no funds raised on short-term

basis have been used for long-term investment.


us, the Company has not made preferential allotment of

shares to parties and companies covered in the Register

maintained under Section 301 of the Companies Act,

1956 and therefore provisions of Clause 4 (xviii) of the

order are not applicable to the Company.

18. The Company has not issued any debentures during the

year nor were any debenture outstanding at the beginning

of the year. Accordingly the provisions of Clause (xix) of the

paragraph 4 of the Companies (Auditor’s Report) Order,

2003 are not applicable to the Company.

19. During the year the Management of Company has disclosed

the end use of money by way of Public Issue and Employee

Stock Option Scheme, in financial statement which have

been verified by us.

20. According to the information and explanations given by the

Company and based on our audit, no fraud on or by the

Company has been noticed or reported by the Company

during the course of audit.

For SPCM & Associates

(Formerly known as Bora Kasat & Co.)


CA Suhas P. Bora

Place: Pune Partner



Balance Sheet as at March 31, 2008(Rs. in Millions)

Particulars Schedule As at 31st March, 2008

As at 31st March, 2007

SOURCES OF FUNDSShareholders' Funda) Share Capital 1 753.10 562.50 b) Reserve & Surplus 2 4,932.66 1,244.13 Loan Fundsa) Secured Loans 3 786.49 724.98 b) Unsecured Loans 4 54.00 135.00 Deferred Tax Liability – 1.32

Total 6,526.25 2,667.93 APPLICATION OF FUNDSFixed Assets 5a) Gross Block 121.37 80.82 b) Less: Depreciation 22.76 15.89 c) Net Block 98.61 64.93 Investments 6 5,074.61 1,813.23 Current Assets, Loans and Advancesa) Inventories 7 1,759.96 2,375.27 b) Sundry Debtors 8 185.42 11.96 c) Cash and Bank balances 9 195.97 387.43 d) Other Current Assets 10 446.83 27.39 e) Loans and Advances 11 1,024.74 597.91

3,612.92 3,399.96 Less: Current Liabilities and Provisionsa) Current liabilities 12 1,497.75 2,357.60 b) Provisions 13 768.54 256.73

2,266.29 2,614.33 Net Current Assets 1,346.63 785.63Miscellaneous Expenses 14 3.10 4.14 (To the extent not written off) Deffered Tax Asset 3.30 –

Total 6,526.25 2,667.93 Significant Accounting Policies and Notes to Accounts 22

As per our Report of even date attached

For M/s. SPCM & Associates(Formerly known as Bora Kasat & Co.)Chartered Accountants

CA Suhas P. BoraPartnerMembership No. 39765

Place : PuneDate: 19th May, 2008


Rajesh Patil Naresh PatilChairman & Managing Director Joint Managing Director

Milind Kolte Sunita KolteExecutive Director Executive Director

Manish Doshi Achyut WatveDirector Director

G. L. Vishwanath Satish TandonDirector Director

Vinod Patil Vasant GaikwadCompany Secretary Chief Financial Officer



Profit and Loss Account for the year ended March 31, 2008

Particulars Schedule 31st March, 2008 31st March, 2007INCOME Sales 15 3,688.52 2,293.68 Other income 16 124.96 221.30

3,813.48 2,514.98 EXPENDITURE Cost of construction 17 1,831.62 1,197.68 Employee cost 18 97.83 32.66 General and Administration expenses 19 74.04 40.24 Selling expense 20 82.95 114.34 Finance charges 21 64.63 42.97 Depreciation 5 7.10 4.72 Preliminary expenses written off 14 1.04 1.04

2,159.21 1,433.65 Profit/(Loss) before tax 1,654.27 1,081.33 Less: Tax expenses Current tax 366.00 243.57 Income tax for earlier years/wealth tax 1.61 0.80 Deferred tax (4.62) 0.79 Fringe benefit tax (gross) 4.68 1.07 Profit/(Loss) after tax 1,286.60 835.10 Add: Profit/(Loss) brought forward from last year 728.44 119.73 Add/(Less): Prior Period Item 2.00 3.46 (Less): Taxation in firm (9.20) – Profit available for appropriation 2,007.84 958.29 Appropriations: Interim dividend – 5.47 Tax on interim dividend – 0.77 Proposed final dividend 131.88 10.60 Tax on proposed dividend 22.42 1.49 Transfer to general reserve 128.66 211.52 Profit and Loss carried to Balance Sheet 1,724.88 728.44 Significant Accounting Policies and Notes to Accounts 22

(Rs. in Millions)













Cash Flow Statement for the year ended March 31, 2008(Rs. in Millions)

Particulars 31st March, 2008 31st March, 2007Cash flow from Operating activitiesNet profit before taxation and extraordinary items 1,654.27 1,081.33

Adjustments for: – –


Foreign Exchange Loss – –

Share of Profit in Firms (80.67) (25.17)

Loss on Sale of Fixed Assets 0.10 –

Dividend Income (42.25) (3.11)

Interest Expenses 23.95 39.25

Capital Gain on Sale of Shares (0.47) (192.30)

Preliminary Expenses Written Off 1.04 1.04

Prior Period Adjustments – –

Depreciation Written Back – –

Sundry Creditors Written Back (0.08) (0.72)

Tax on Dividend paid – –

Preliminary Expenses Incurred – (5.18)

Deferred Tax Assets 4.62 –

Taxes Paid Debited to Profit and Loss – –

Operating profit before working capital changes 1,567.61 899.86

Decrease/(Increase) in Debtors (173.46) (7.66)

Decrease/(Increase) in Inventories 615.31 (722.44)

Decrease/(Increase) in Other Current Assets (846.26) (377.73)

Increase/(Decrease) in Current Liabilities (859.85) 1,035.92

Cash generated from Operations 303.35 827.95

Income Tax paid (1.61) (0.80)

Fringe Benefit Tax (4.32) (0.77)

Deferred Tax Liability – –

Cash flow before extraordinary items 297.42 826.38

Extraordinary items, if any – –

Net cash from operating activities (A) 297.42 826.38

Cash flows from Investing activities – –

Decrease/(Increase) in fixed assets (40.55) (36.58)

Capital Gain on Sale of Shares 0.47 192.30

Share of Income Tax of Firm (12.90) (9.20)

Share of Profit from Firms 80.67 25.17

Decrease/(Increase) in Investments (3,261.38) (1,608.16)

Dividend Received 42.25 3.11


Cash Flow Statement for the year ended March 31, 2008(Rs. in Millions)

Particulars 31st March, 2008 31st March, 2007Sale of Fixed Assets 0.30 –

Sundry creditors written back 0.08 0.72

Net cash from Investing activities (B) (3,191.06) (1,432.64)

Cash flows from Financing activities – –

Proceeds from issuance of share capital 2,757.71 813.62

Increase/(Decrease) in Secured Loans 61.51 440.05

Increase/(Decrease) in Unsecured Loans (81.00) (298.63)

Interest paid (23.95) (39.25)

Dividend paid (10.60) (8.21)

Tax on dividend (1.49) (1.15)

Net cash used in financing activities (C) 2,702.18 906.43

Net increase in cash & Cash equivalents (A + B + C) (191.46) 300.17

Cash and cash equivalents at the beginning of period 387.43 87.26

Cash and cash equivalents at end of period 195.97 387.43













Schedules forming part of the Balance Sheet

Particulars 31st March, 2008 31st March, 2007

SCHEDULE 1 – SHARE CAPITAL Authorised 8,00,00,000 ( 8,00,00,000 ) Equity Shares of Rs. 10/ each

800.00 800.00

Issued, subscribed and paid up 7,53,10,048 (5,62,50,000) Equity shares of Rs. 10/- each fully paid up (Of the above shares Nil (Previous year 2,19,02,252) shares are allotted as fully paid by way of bonus shares by capitalisation of general reserve)

753.10 562.50

753.10 562.50 SCHEDULE 2 – RESERVE & SURPLUS 1. General Reserve

Opening Balance – 7.50 Add: Transferred from Profit and Loss Account 128.66 211.52 Less: Capitalised on issue of bonus shares – 219.02 Closing Balance 128.66 –

2. Securities Premium Account Opening Balance 524.89 – Add: During the year 2,567.13 524.89 Closing Balance 3,092.02 524.89 3. Profit & Loss Account 1,724.88 728.44 Less: Share in taxation of firm 12.90 9.20

1,711.98 719.24 4,932.66 1,244.13

SCHEDULE 3 – SECURED LOANS 1. Working Capital Loans from banks 225.38 182.83 (Secured by Hypothecation of Stocks of Materials & Guaranteed by Director ) 2. Term Loan from Bank 561.11 542.15

786.49 724.98 SCHEDULE 4 – UNSECURED LOANS Loan - Unsecured 54.00 135.00

54.00 135.00

(Rs. in Millions)


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93



Schedules forming part of the Balance Sheet(Rs. in Millions)


SCHEDULE 6 – INVESTMENTS 1. Investment in Govt. and Trust Securities (Long-Term, Non-Trade and Unquoted) National Savings Certificates 0.03 0.02 2. Investment in Subsidiaries (Long-Term, Non-Trade and Unquoted) Regenesis Project Management Co. Pvt. Ltd. 499,998 (499,998) Equity Shares of Rs.100 each fully paid up 50.00 50.00 Equity Share Application Money Sylvan Acres Realty Pvt. Ltd. 449,998 (283,998) Equity Shares of Rs.100 each fully paid up 45.00 28.40 OCD Debentures Application Money 728.37 649.49 Equity Share Application Money – – Yashowardhan Promotors & Developers Pvt. Ltd. 110,998 (101,998) Equity Shares of Rs.10 each fully paid up 1.11 1.02 Equity Share Application Money 0.09 – I-Ven Kolte-Patil Projects (Pune) Pvt. Ltd. 51,000 (51,000) Equity Shares of Rs.100 each fully paid up 5.10 5.10 15 % - 3,15,00,202 OCD Debentures of Rs.10 each 315.00 315.00 Debentures Application Money 22.33 7.97 Lilac Hospitality Pvt. Ltd. 470,000 (Nil) Equity Shares of Rs.10 each fully paid up 4.70 – Equity Share Application Money 0.07 – Oakwoods Hospitality Pvt. Ltd. 17,180,980 (Nil) Equity Shares of Rs.10 each fully paid up 171.81 – Equity Share Application Money 10.17 – Bellflower Properties Private Limited 481,048 (Nil) Equity Shares of Rs.10 each fully paid up 4.81 – Equity Share Application Money 125.50 – Jasmine Hospitality Pvt. Ltd. 28,150,000 (Nil) Equity Shares of Rs.10 each fully paid up 281.50 – Equity Share Application Money 13.98 – Olive Realty Pvt. Ltd. 891,048 (Nil) Equity Shares of Rs.10 each fully paid up 8.91 – Equity Share Application Money 83.59 – Kolte-Patil Real Estate Pvt. Ltd. 4,682,825 (Nil) Equity Shares of Rs.10 each & Rs. 90/- premium fully paid up 468.28 – 18,939 (Nil) Equity Shares of Rs.10 each fully paid up 0.19 – Equity Share Application Money 262.10 – 3. Investments in Partnership Firms and Joint Ventures Ankit Enterprises Fixed Capital 0.03 0.03 Current Capital 352.16 323.81 Kolte-Patil Homes Capital A/c (37.18) (72.93) Green Olive Venture Capital A/c 65.18 34.10 Vibhu-KPDL Venture 186.41 –


(Rs. in Millions)



SCHEDULE 6 – INVESTMENTS (Contd.) 4. Other Investments 20 (20) Equity Shares in Rupee Co-op. Bank Ltd. 0.00 0.00 (Long-Term, Non-Trade and Unquoted) 13,200 (13,200) Equity Shares in Vijaya Bank of Rs. 24 each fully paid 0.32 0.32 (Long-Term, Non-Trade and Quoted) Market Value Rs. 6,55,380 ( Previous year Rs. 5,61,000) Corrolla Reality Pvt. Ltd. 2,59,980(1,85,000) Equity Shares of Rs.10 each fully paid up 135.96 94.87 0.0001% - 78,263 (55,500) Redeemable Preference Shares 0.78 0.56 15% - 12,30,913 OCD (10,27,730) Debentures of Rs.100 each 123.09 102.77 Debentures Application Money 42.32 16.37 Kolte Patil Real Estate Pvt. Ltd. Equity Share application Money (Company under the same management)

– 256.33

Long-Term, Non-Trade and Unquoted) Investment in Mutual Fund (Long-Term, Non-Trade and Quoted) 1,602.30 – Market Value Rs. 1,603.24 ( Previous year Nil) Other Investment (Unquoted) 0.60 –

Total 5,074.61 1,813.23 SCHEDULE 7 – INVENTORIES (At cost) Work in Progress 1,759.96 2,375.27

Total 1,759.96 2,375.27 SCHEDULE 8 – SUNDRY DEBTORS (Unsecured considered good) Outstanding for a period exceeding six months 64.05 8.53 Others 121.37 3.43

Total 185.42 11.96 SCHEDULE 9 – CASH & BANK BALANCE Cash in Hand 1.02 0.67 Cheques in Hand 42.97 0.64 Balance with Scheduled Banks In Current Account 18.85 1.89 In Deposit Account 133.13 384.23

Total 195.97 387.43 SCHEDULE 10 – OTHER CURRENT ASSETS (Unsecured considered good) Other Receivables 219.66 14.56 Interest Accrued 9.79 – IPO Expenses 217.38 12.83

Total 446.83 27.39


Schedules forming part of the Balance Sheet(Rs. in Millions)

Particulars 31st March, 2008 31st March, 2007 SCHEDULE 11 – LOANS and ADVANCES (Unsecured considered good) Loans to Subsidiaries 33.61 104.86 Loans to Others – 5.33 Advance recoverable in cash or in kind or for value to be received 589.52 298.40 Advance Tax and Tax Deducted at Source 372.92 179.72 Security Deposit 28.07 9.14 Prepaid Expenses 0.62 0.46

Total 1,024.74 597.91 SCHEDULE 12 – CURRENT LIABILITIES Sundry Creditors – For goods and services 115.09 54.87 – For plot 245.69 202.13 Advances received from customers 1,024.08 1,933.23 Outstanding and other liabilities 111.17 165.65 Security Deposits 1.72 1.72

Total 1,497.75 2,357.60 SCHEDULE 13 – PROVISIONS Provision for Taxation 609.56 243.57 Provision for FBT 4.68 1.07 Provision for Proposed Dividend 131.88 10.60 Provision for Tax on Dividend 22.42 1.49

Total 768.54 256.73 SCHEDULE 14 – MISCELLANEOUS EXPENSES To the extent not written off or adjusted Preliminary Expenses Opening Balance 4.14 – Add: Additions – 5.18

4.14 5.18 Less: Written off to Profit and Loss Account 1.04 1.04 Closing Balance 3.10 4.14


Schedules forming part of the Profit and Loss Account(Rs. in Millions)


SCHEDULE 15 – SALES Sale of Flats & Shops 2,043.92 1,557.50 Lease Rent 59.90 25.49 Sale of Plots 1,584.70 710.69 Services

Total 3,688.52 2,293.68 SCHEDULE 16 – OTHER INCOME Profit on sale of Shares and Mutual Funds 0.47 192.30 Dividend from Shares and Mutual Funds 42.24 3.11 Miscellaneous Income 1.50 – Profit from Partnership Firms 80.67 25.17 Sundry Creditors written back 0.08 0.72

Total 124.96 221.30 SCHEDULE 17 – COST OF CONSTRUCTION Opening WIP 2,375.27 1,652.82 Add/(Less): Adjustments (12.70) (20.36)

2,362.57 1,632.46 Add: Purchases/Construction Expenses 1,229.01 1,940.49

3,591.58 3,572.95 Less: Closing WIP 1,759.96 2,375.27

Total 1,831.62 1,197.68 SCHEDULE 18 – EMPLOYEE COST Salaries, Wages, Allowances and Bonus 87.78 28.20 Contribution to Providend Fund and Other Fund 6.60 2.69 Staff Welfare Expenses 3.45 1.77

Total 97.83 32.66 SCHEDULE 19 – GENERAL AND ADMINISTRATION EXPENSES Repairs and Maintainanace 3.42 3.81 Domestic Travelling and Conveyance Expenses 7.25 6.57 Foreign Travelling Expenses 0.88 1.39 Rates and Taxes 4.61 3.09 Professional Fees 16.39 17.05 Telephone, Postage and Courier Charges 6.18 2.91 Insurance Charges 2.15 0.56 Office Expenses 13.86 2.97 Printing and Stationery 3.67 1.89 Loss on sale of vehicle 0.10 – Amount Written Off (IPO Expenses) 15.53 –

Total 74.04 40.24


Schedules forming part of the Profit and Loss Account(Rs. in Millions)


SCHEDULE 20 – SELLING EXPENSES Advertisement & Publicity 14.26 5.45 Sales Promotion Expenses 2.58 0.75 Brokerage 40.28 86.22 Donation – 3.35 Compensation for cancellation of booking 25.83 18.56 Bad Debts – 0.01

Total 82.95 114.34 SCHEDULE 21 – FINANCE CHARGES Bank Interest 64.63 42.97

Total 64.63 42.97

SCHEDULE 22

Disclosure of Accounting Policies and Notes on Accounts for the year ended on 31st March, 20081. SIGNIFICANT ACCOUNTING POLICIES:

a) BASIS OF PREPARATION OF FINANCIAL STATEMENT:

The Financial statements are prepared on the historical cost convention in accordance with Indian Generally Accepted Accounting

Principles (“GAAP”) comprising the Accounting Standards issued by The Institute of Chartered Accountants of India and the

provisions of the Companies Act, 1956 as adopted consistently by the Company. All Income and Expenditure having a material

effect bearing on the financial statements are recognised on the accrual basis.

b) USE OF ESTIMATES:

The preparation of financial statements in conformity with Generally Accepted Accounting Principals requires the management to

make estimates and assumptions that affect the reported balances of assets and liabilities as of the date of the financial statement

and reported amounts of income and expenses during the period. Management believes that the estimates uses in the preparation

of financial statements are prudent and reasonable. Actual results could differ from the estimates.

c) FIXED ASSETS:

The Gross Block of Fixed Assets are stated in the Accounts at the purchase price of acquisition of such assets including any

attributable cost of bringing the assets to its working condition for its intended use. Office premises located at Jalgaon has been

taken on lease for a period of 50 years and reflected in Gross Block at Rs. 0.10 million. The leasehold premises has been amortised

@ 2% per annum on the basis of period of lease.

d) DEPRECIATION:

Depreciation is provided as per the ‘straight line method’ according to the rates prescribed in Schedule XIV to the Companies

Act, 1956.

Cost of Leasehold rights is being amortized at the rate of 2% per annum considering the period of lease.

e) REVENUE RECOGNITION:

i. SALE OF FLATS:

During the year, the Company has followed the Percentage Completion Method of accounting as per the Guidance Note on

Revenue Recognition by the Real Estate Developers issued by The Institute of Chartered Accountants of India. Total Sale

Consideration as per the agreements to sale constructed properties is recognised as revenue based on the percentage of actual


project cost incurred there on, including the cost of land, estimated construction and development cost of the such properties,

subject to actual construction cost incurred being 20% or more of the total cost of the construction of the project.

The amount received from customers which does not qualify for revenue recognition under the Percentage Completion

Method are accounted as Current Liabilities under the head “Advance from Customers”. The amount receivable against the

percentage of revenue recognised is accounted for as Current Assets under the head “Debtors” and the excess amount

received from customer is accounted as Current Liabilities under the head “Advance from Customers”.

ii. SHARE OF PROFIT IN PARTNERSHIP FIRM/JOINT VENTURE:

The share of profit from the firms, in which the Company is partner and the joint venture, is accounting for as per the final

statement of accounts of the firm/joint venture.

iii. INCOME FROM INVESTMENT:

Interest on fixed deposit and dividend on mutual fund is accounted on accrual basis, whereas dividend from shares is

accounted for on receipt basis.

f) INVENTORIES:

Inventory comprises property under constructions (work in progress). Work in Progress comprises cost of land, development rights, TDR, construction and development cost, cost of material, services and other overheads related to projects under constructions.

g) INVESTMENTS:

Long-term investments are stated at cost after providing for any diminution in value, if such diminution is of permanent nature. Current investments are carried at lower of cost or market value. The determination of carrying amount of such investments is done on the basis of specific identification. Investments in integrated joint ventures are carried at cost net off adjustments for company’s share in profits or losses as recognised.

h) CONSTRUCTION SALES:

Construction Sales represents sales of commercial, residential and other units in respect of which terms and conditions of Agreements executed are complied with. The sale shown in Profit and Loss Account includes receipts from Business Center.

i) RETIREMENT BENEFITS:

Liability is provided for retirement benefits of provident fund, gratuity in respect of eligible employees contributions under the defined contribution scheme are charged to revenue. The liability in respect of defined benefit scheme like gratuity, leave encashment are provided in the accounts on the basis of actuarial valuation as on 31st March, 2008.

j) BORROWING COST:

Borrowing costs are recognised as expenses in the period in which they are incurred and debited to Profit and Loss Account.

k) TAXATION:

Income Tax expenses for the year included Current Tax, Fringe Benefit Tax. Provision, for current income tax is made on the current tax rate based on assessable income for the year workout as per the provision of Income Tax Act, 1961, as applicable for Assessment Year 2008-2009. The deferred tax assets and liabilities are recognised for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

l) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

As per (AS-29), Provisions, Contingent Liabilities and Contingent Assets (AS-29), issued by the Institute of Chartered Accountants of India, the Company recognises provisions only when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation as and when a reliable estimate of the

amount of the obligation can be made.

Disclosure of Accounting Policies and Notes on Accounts for the year ended on 31st March, 2008


No provision is recognised for –

(i) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or

non-occurrence of one or more uncertain future events not wholly within the control of the Company; or

(ii) Any present obligation that arises from past events but is not recognized because-

It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

A reliable estimate of the amount of obligation cannot be made.

Such obligations are recorded as Contingent Liabilities. These are assessed continually and only that part of the obligation

for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare

circumstances where no reliable estimate can be made.

Contingent Assets are not recognised in the financial statements since this may result in the recognition of income that may

never be realized.

m) MISCELLANEOUS EXPENSES:

Miscellaneous Expenses are amortised over a period of five years.

n) IMPAIRMENT OF ASSET:

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the

Profit and Loss Account in the year in which an asset is identified as impaired.

o) IPO EXPENSES:

Expenses incurred for the public issue of equity shares of the Company are considered as deferred revenue expenditure to be

amortised in 60 months.

p) EARNING PER SHARE:

The Company reports basic and diluted earning per share in accordance with Accounting Standard (AS-20) issued by the Institute

of Chartered Accountants of India on ‘Earning Per Share’. Basic earning per share is computed by dividing the net profit or loss for

the period by the weighted average number of Equity Shares outstanding during the period. Diluted earning per share is computed

by dividing the net profit or loss for the period by the weighted average number of equity shares outstanding during the period as

adjusted for the effects of all diluted potential equity shares except where the results are anti-dilutive.

2. EVENTS OCCURRING AFTER BALANCE SHEET DATE:

No significant events which could affect the financial position as on 31st March, 2008, to a material extent have been reported by

the assessee, after the Balance Sheet date till the signing of report.

3. PRIOR PERIOD AND EXTRAORDINARY ITEMS:

There are no material changes or credit which arises in current period, on account of errors or omissions in the preparation of

financial statements for one or more periods.

4. PAYMENT TO AUDITORS:

(Rs. in Millions)

Sr. No. Particulars 31.03.2008 31.03.2007

a) Audit Fees 0.34 0.23

b) As advisor in Other Capacity in respect of taxation matters 0.08 0.05

c) Certification Work 0.02 0.01

Total 0.44 0.29

(The payment is inclusive of Service Tax as applicable.)



5. DIRECTORS’ REMUNERATION:

During the previous year the Company has paid to the Director Rs. 24.51 million towards remuneration as follows:

(Rs. in Millions)

Name Designation 31.03.2008 31.03.2007Mr. Rajesh A. Patil Chairman & Managing Directors 6.13 2.99

Mr. Naresh A. Patil Joint Managing Director 6.13 2.99

Mr. Milind D. Kolte Executive Director 6.13 2.99

Mrs. Sunita M. Kolte Executive Director 6.12 1.49

6. EARNING PER SHARE:

The earnings considered in ascertaining the Company’s EPS comprises the profit available for shareholders i.e. profit after tax and

statutory/regulatory appropriations. The number of shares used in computing Basic EPS is the weighted average number of shares

outstanding during the year. (Rs. in Millions)

Particulars 31.03.2008 31.03.2007Net Profit attributable to shareholders. Rs./million 1286.60 835.10Weighted average number of Equity Shares no./million 62.33 29.78Basic earnings per share – Rs. 20.64 22.95Diluted earnings per share – Rs. 20.45 22.95Nominal value of equity shares – (Rs.) 10 10

Note:

The earnings per shares is calculated in accordance with Accounting Standard 20 “Earnings Per Share” issued by the Institute

of Chartered Accounts of India in terms of para 24 of AS-20, the number of equity shares outstanding before the issue of bonus

shares is adjusted for the change in the number of equity shares issued as bonus shares as if the shares were issued at the earliest

reported period.

7. PARTICULARS OF EXPENSES INCURRED IN FOREIGN CURRENCY:

(Rs. in Millions)

Sr. No. Particulars F.Y. 2007-2008 F.Y. 2006-2007

(i) Expenditure incurred in foreign currency: Travelling *(As certified by Management)

Rs. 0.142675 (USD)

Rs.0.26(3140 POUND)

Rs. 0.046(4200 DINAR)

Rs. 1.23

(27600 USD)

IPO Expenses Rs.0.246000 (USD)

Note* The Profit/Loss on exchange realisation being small amount considered in Foreign Travel Expense Account.

8. The Company has not received any intimation from “Suppliers” regarding their status under the Micro, Small and Medium Enterprises

Development Act, 2006 and hence the Disclosure, if any, relating to amounts unpaid as at the year end together with interest

paid/payable as required under the said Act have not been given.



9. RELATED PARTY TRANSACTION (ACCOUNTING STANDARD 18)

Related party disclosures as required by Accounting Standard ‘Related Party Disclosures’, (AS-18) issued by the Institute of

Chartered Accountants of India are given below.

a) Related Parties (as identified by the management) are classified as:

Subsidiaries Bellflower Properties Pvt. Ltd., I-Ven Kolte-Patil Projects (Pune) Ltd., Jasmine Hospatality Pvt. Ltd., Kolte-Patil Real Estate Pvt. Ltd., Lilac Hospitality Pvt. Ltd.,Oakwood Hospitality Pvt. Ltd., Olive Realty Pvt. Ltd., Regenesis Projet Management Pvt. Ltd., Sylvan Acres Realty Pvt. Ltd., Yashowardhan Promoters & Dev. Pvt. Ltd.

Joint Venture & Associates Green Olive Venture, Vibhu-KPDL Venture

Key Management Personnel Director Mr. Milind D. Kolte, Mr. Naresh A. Patil, Mr. Rajesh A. Patil, Mrs. Sunita M. Kolte

Relatives of Key Management Personnel Mr. Ketan P. Kolte, Ms. Ketki P. Kolte, Ms.Ankita R. Patil, Mr. Nirmal M. Kolte, Mr. Pradeep D. Kolte

Associates/Enterprises over which Key Management Personnel have significant influence

Ankit Enterprises, Corrolla Realty Pvt. Ltd., I-Ven Township Pvt. Ltd., Kolte-Patil Enterprises, Kolte-Patil Homes

Particulars Subsidiaries Joint Venture Key Management

Personnel (Directors)

Relatives of Key Management

Personnel

Associates/Enterprises

over which Key Management

Personnel have significant influence

Capital Contribution – – – – (113.85)Advance paid for plot purchase – – 1.00 53.56 –Advance received against sale of plot – – – – 60.00Investment towards Contribution – 217.53 – – –Brokerage and Commission 9.38 – – – –Creditors for plot – – – 222.04 0.15Investment in Debenture Appl. Money 125.50 – – – –Investment in Debentures – – – – 20.32Investment in Equity Share Capital 956.89 – – – 41.09Expenditure Incurred and Reimbursement 0.65 – – – 7.93Interest Payable – – – – 0.34Interest Receivable 8.12 – – – –Loan Repaid 89.00 – 131.00 – –Loan Given 17.75 – – – –Loan Accepted – – – – 50.00Investment in OFC Debenture Application Money 93.24 – – – 25.94Professional Fees 14.61 – – – –Share in Profit – – – – 80.85Purchase of Plot – – 75.00 – 2.45Rent Paid 1.19 – – – –Remuneration to Directors – – 24.51 – –Sale of Plot 1,475.83 – – – –Investment in Share Application Money 408.86 – – – –

Summary of significant related party transactions (as identified by the management) carried out in ordinary course of business are as follows:

(Rs. in Millions)



10. CONTINGENT LIABILITIES :

Contingent Liabilities not provided for:

(Rs. in Millions)

Particulars As on 31.03.2008i) Disputed Direct Tax Liability Income Tax Outstanding Demand pertaining to M/s. Ankit Enterprises in which Company is having 75% shares

49.66

ii) Disputed Indirect Tax Liability Sales Tax Under Karnataka Sales Tax Act

8.71

iii) Claims not Acknowledged as Debts 61.43

iv) a) Bank Guarantee given by the Company b) Corporate Bank guarantee given by the Company

13.70400.00

11. In the opinion of the Board, current assets and loans and advances have a Value on realisation in the ordinary course of business

at least equal to the amount at which they are stated and provisions for all known and determined liabilities are adequate and not

in the excess of the amount reasonably necessary.

12. Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

13. Interest amount debited in Profit and Loss Account is after considering interest received and other receipts.

14. Estimated amounts of contract remaining to be executed on capital account and not provided for – NIL

15. INVESTMENT IN PARTNERSHIP:

Investment made in partnership firm represents investment made with M/s. Ankit Enterprises. The details of partnership is as

follows:

i. Ankit Enterprises:

a) Total Capital – Debit Balance Rs. 64.53 millions

Sr. No.

Name of the Partners Profit Sharing Ratio

1. Mr. Rajesh A. Patil 7.50%

2. Mr. Naresh A. Patil 7.50%

3. Mr. Milind D. Kolte 5.00%

4. Mrs. Sunita M. Kolte 5.00%

5. Kolte-Patil Developers Ltd. 75.00%

Share profit of the Company for the year ended on 31st March, 2008 is Rs. 26.59 million.

b) The capital account balance as on 31st March, 2008 is at Rs. 35.23 million Credit Balance.

ii. Kolte-Patil Homes:

a) Total Capital - Credit Balance Rs. 4.76 million

Sr. No. Name of the Partners Profit Sharing Ratio

1. Mr. Naresh A. Patil 30%2. Mrs. Vanadan N. Patil 10%3. Kolte-Patil Developers Ltd. 60%



b) Share profit of the Company for the year ended on 31st March, 2008 is Rs. 54.26 million.

c) The capital account balance as on 31st March, 2008 is Rs.37.18 million (Credit Balance).

iii. Interest in Joint Venture

The Company’s interest and share in Joint Venture in jointly controlled activities are as follows:

a) Green Olive Ventures:

The Company, by virtue of an Agreement has entered into a Joint Venture with Arista Developers Pvt. Ltd. by forming

an Association of Persons named Green Olive Ventures. The Company has agreed to contribute an amount of Rs. 25

Millions towards initial capital and further agreed to contribute further capital as and when needed for Joint Venture. The

Company has contributed Rs. 65.18 millions up to 31st March, 2008.

b) Vibhu – KPDL Venture:

The Company, by virtue of an Agreement has entered into a Joint Venture with Vibhu Developers Pvt. Ltd. by forming an

Association of Persons named Vibhu—KPDL Venture. The Company has agreed to contribute an amount of Rs. 137.64

millions towards initial capital and further agreed to contribute further capital as and when needed for Joint Venture. The

Company has contributed Rs. 186.41 million up to 31st March, 2008.

16. SEGMENT ACCOUNTING:

Accounting Standards interpretation (ASI) 20 dated. 14.02.2004, issued by the Accounting Standard Board of ICAI, on AS–17,

Segment reporting clarifies that in case by applying the definition of “Business Segment and Geographical Segment” given in

AS–17, it is concluded that there is neither more than one business segment nor more than one geographical segment, Segment

Information as per AS-17 is not required to be disclosed.

17. In view of Accounting Standard required by AS-28 “Impairment of Assets” issued by ICAI, the Company has reviewed its fixed assets and

does not expect any loss as on 31st March, 2008 on account of impairment in addition to the provision already made in the books.

18. OPERATING LEASE (AS-19):

Lease rent payable for office taken on lease is charged to revenue under the head depreciation.

The lease rentals are charged over the specified period of lease i.e. 50 years.

Cost of leasehold rights is being amortised @ 2% per annum considering the period of lease.

19. Work in progress have been taken as verified, valued and certified by the management and as informed, it is taken on the basis of

cost price.

20. CONTRIBUTION TO GROUP GRATUITY SCHEME OF LIC:

In accordance with transactional provision of Accounting Standard (AS–15) (Revised-2005) on employee benefit, the Company has

taken a Group Gratuity Policy from Life Insurance Corporation of India to adequately cover the present liability for future payments

of gratuity to the employees on actuarial valuation. The obligation for leave encashment is recognized in the same manner as

‘Gratuity’. Expenses recognised during the year shown under the head ‘Employee Cost’.

i) Net Asset/Liability recognised in the Balance Sheet as at 31st March, 2008.

(Amount in Millions)

Particulars Gratuity Leave Encashment

Fair value of plan assets as at 31st March, 2008 1.24 –

Present Value of obligation as at 31st March, 2008 12.78 8.60

Amount Recognised in Balance Sheet 11.54 8.60



ii) Expenses recognised during the year (Under the head “Personnel Cost”)

(Rs. in Millions)

Particulars Gratuity Leave Encashment

Current Service cost 2.75 3.07Interest Cost 0.35 0.27Expected return on plan assets 0.08 0.00Actuarial (gain)/loss 5.35 1.83Net Cost 8.37 8.60

iii) Actuarial Assumptions

Particulars Gratuity(Funded)

Leave Encashment(Unfunded)

Discount rate (per annum) 8.00 % 8.00 %Rate of increase in compensation levels 9.00 % 9.00 %Expected average remaining working lives of employees (years) 18.62 % 18.62 %

21. BONUS:

Bonus for the year amounting to Rs.0.86 million paid during the year stands debited in the accounts.

22. KEYMAN INSURANCE POLICY:

During the year, Company has paid Rs. 0.07 million under the Keyman Insurance Policy of Life Insurance Corporation of India for

the following directors.

1. Rajesh A. Patil

2. Milind D. Kolte

Premium paid during the year as per the scheme is absorbed under the head ‘Employee Cost’.

23. During the year the Company has incurred Rs. 232.91 million on the Public Issue of Equity shares of the Company, and these

expenses are considered as deferred revenue expenditure as per Accounting Policy of the Company. The amount of Rs. 15.53

million charged to Profit and Loss Account as IPO Expenses of the current year.

24. EMPLOYEES STOCK OPTION SCHEME 2006 (ESOS):

In fiscal 2006, the Company instituted the 2006 Scheme. The Board of Directors and Shareholders approved the scheme in

the month of September 2006 and October 2006 respectively, which provides for the issue of 7,50,000 Equity Shares to the

employees. The Compensation committee administers the 2006 Scheme. Options were granted in the month of September

2006. The Company has accelerated the vesting of 75,000 unvested options, which are due to be vested in the month of

September 2007.

The Company has issued 57,071 Equity Shares of Rs. 10/- each at a premium of Rs. 30/- per share to Employee Under Employees

Stock Option Scheme 2006 (ESOS).

25. Last years figures have been regrouped, reclassified and rearranged whenever necessary.

For and on behalf of the Board of Directors Rajesh Patil Naresh Patil Milind Kolte Chairman & Managing Director Joint Managing Director Executive Director Sunita Kolte Manish Doshi Achyut Watve Executive Director Director Director G. L. Vishwanath Satish Tandon Vinod Patil Director Director Company SecretaryPlace : Pune Vasant GaikwadDate: 19th May, 2008 Chief Financial Officer



I. Registration Details

Registration No. State Code

Date Month Year

Balance Sheet Date

II. Capital Raised during the year (Rs. in Millions)

Public Issue Rights Issue

Bonus Issue Private Placement

III. Position of Mobilisation and Deployment of Funds (Rs. in Millions)

Total Liabilities Total Assets

Sources of Funds

Paid-up Capital Reserves and Surplus

Secured Loans Unsecured Loans

Application of Funds

Net Fixed Assets Investments

Net Current Assets Miscellaneous Expenditure

IV. Performance of Company (Rs. in Millions)

Turnover Total Expenditure

Profit/(Loss) Before Tax Profit/(Loss) After Tax

(Please tick Appropriate Box + for Profit – for Loss)

Earnings Per Share in Rs. Dividend Rate (%)

V. Generic Names of three Principal Products/Services of Company

(as per monetary terms)

Item Code No. (ITC Code)

Product Description

Information pursuant to Part IV of Schedule VI to the Companies Act, 1956

U45200PN1991PLC129428 25

31 03 2008

190.03 Nil

Nil Nil

6526.25 6526.25

753.10 4932.66

786.49 54.00

98.61 5074.61

1346.63 6.40

3813.48 2159.21

1654.27 1286.60

20.64 17.5

NOT APPLICABLE

Real Estate Development (Builders & Developers)

Balance Sheet Abstract and Company’s General Business Profile


Auditors’ Report on Consolidated Financial StatementsTo the Members of

Kolte-Patil Developers Limited

We have audited the attached Consolidated Balance Sheet

of Kolte-Patil Developers Limited (“the Company”), as at

31st March, 2008, and also the Consolidated Profit and Loss

Account and Consolidated Cash Flow Statement for the year

ended on that date, annexed thereto. These Consolidated

Financial Statements are the responsibility of the management of

Kolte-Patil Developers Limited. Our responsibility is to express an

opinion on these Financial Statements based on our audit.

We conducted our audit in accordance with the Auditing Standards

generally accepted in India. Those standards require that we plan

and perform the audit to obtain reasonable assurance about

whether the financial statements are prepared, in all material

respects, in accordance with an identified financial reporting

framework and are free of material misstatement. An audit

includes examining, on a test basis, evidence supporting the

amounts and disclosures in the financial statement. An audit also

includes assessing the accounting principles used and significant

estimates made by the management, as well as evaluating the

overall Financial Statement presentation. We believe that our

audit provides a reasonable basis for our opinion.

We report that Consolidated Financial Statements have been

prepared by the management in accordance with the requirements

of Accounting Standards (AS–21) “Consolidated Financial

Statements” and “Accounting for Investment in Associates in

Consolidated Financial Statement” (AS 23), issued by the Institute

of Chartered Accountants of India.

In our opinion, and to the best of our information and according to

the explanation given to us, the consolidated financial statements

give a true and fair view in conformity with the accounting principles

generally accepted in India:

a) In case of the consolidated Balance Sheet, of the

consolidated state of affairs of Kolte-Patil Developers Ltd.

and its consolidated entities as at 31st March, 2008.

b) In case of consolidated Profit and Loss Account of the

consolidated results of operations of Kolte-Patil Developers

Ltd. and its consolidated entities for the year ended on that

date.

c) In the case of Consolidated Cash Flow Statement, of

the Cash Flows of the Kolte-Patil Developers Ltd. and its

consolidated entities for the year ended on that date.

For SPCM & Associates(Formerly known as Bora Kasat & Co.)


CA Suhas P. BoraPlace: Pune Partner



Consolidated Balance Sheet as at March 31, 2008

Particulars Schedule 31st March, 2008 31st March, 2007

SOURCES OF FUNDSShareholders’ Funda) Share Capital 1 753.10 562.50 b) Reserve & Surplus 2 5,379.91 1,245.10 Minority Interest 101.18 10.80 Loan Fundsa) Secured Loans 3 792.96 797.53 b) Unsecured Loans 4 777.46 692.73 Deferred Tax Liability – 1.65

Total 7,804.61 3,310.31 APPLICATION OF FUNDSFixed Assets 5a) Gross Block 610.74 97.96 b) Less: Depreciation 26.18 17.39 c) Net Block 584.56 80.57 Investments 6 3,909.61 1,399.97 Current Assets, Loans and Advancesa) Inventories 7 4,412.87 3,350.46 b) Sundry Debtors 8 290.29 16.69 c) Cash and Bank balances 9 257.72 418.31 d) Other Current Assets 10 215.23 27.39 e) Loans and Advances 11 1,110.34 516.73

6,286.45 4,329.58 Less: Current Liabilities and Provisionsa) Current Liabilities 12 2,167.86 2,247.44 b) Provisions 13 823.79 257.59

2,991.65 2,505.03 Net Current Assets 3,294.80 1,824.55 Miscellaneous Expenses 14 12.89 5.22 (To the extent not written off) Deffered Tax Asset 2.75 –

Total 7,804.61 3,310.31 Significant Accounting Policies & Notes to Accounts 22

(Rs. in Millions)













Consolidated Profit and Loss Account for the year ended March 31, 2008

Particulars Schedule 31st March, 2008 31st March, 2007

INCOME Sales 15 4,288.18 2,302.83 Other Income 16 128.91 221.60

4,417.09 2,524.43 EXPENDITURE Cost of Construction 17 2,232.83 1,170.15 Employee Cost 18 119.58 59.37 General and Administration Expenses 19 99.42 65.56 Selling Expense 20 81.92 83.53 Finance Charges 21 80.22 55.61 Depreciation 5 8.90 6.11 Preliminary Expenses written off 14 1.32 1.28

2,624.19 1,441.61

PROFIT/(LOSS) BEFORE TAX AND MINORITy INTEREST 1,792.90 1,082.82 Less: Tax Expenses Current Tax 420.75 243.75 Income Tax for earlier years/Wealth Tax 1.61 0.80 Deferred Tax (4.40) 1.12 Fringe Benefit Tax (Gross) 5.06 1.53 PROFIT/(LOSS) AFTER TAX AND BEFORE MINORITy INTEREST 1,369.88 835.62 Minority Interest 43.52 (0.02)Add: Profit/(Loss) brought forward from last year 728.83 120.16 Add/(Less): Prior Period Item 2.00 3.46 (Less): Taxation in firm (9.20) – Profit available for appropriation 2,047.99 959.26 Appropriations: Interim Dividend – 5.48 Tax on Interim Dividend – 0.77 Proposed Final Dividend 131.88 10.60 Tax on Proposed Dividend 22.42 1.49 Transfer to Capital Reserve (3.55) 0.57 Transfer to General Reserve 128.66 211.52 Profit and Loss carried to Balance Sheet 1,768.58 728.83 Significant Accounting Policies and Notes to Accounts 22

(Rs. in Millions)













Consolidated Cash Flow Statement for the year ended March 31, 2008

Particulars 31st March, 2008 31st March, 2007Cash flow from Operating activities

NET PROFIT BEFORE TAXATION AND EXTRAORDINARy ITEMS 1,792.90 1082.82

Adjustments for:


Foreign exchange loss – –

Share of Profit in Firms (80.67) (25.17)

Dividend income (45.88) (3.11)

Loss on Sale of Assets 0.10 –

Interest expenses 80.22 55.61

Capital Gain on Sale of Shares (0.47) (192.30)

Preliminary Expenses ritten Off 1.32 1.28

Prior Period Adjustments – –

Depreciation Written Back – –

Sundry creditors Written Back (0.08) (0.72)

Tax on Dividend paid –

Preliminary Expenses (8.99) (6.50)

Interest on Loan (Employee) (0.31) (0.30)

Share in Profit transfer to Minority – 0.02

Taxes Paid Debited to Profit and Loss – –

OPERATING PROFIT BEFORE WORKING CAPITAL ChANGES 1,747.04 917.74

Decrease/(Increase) in Debtors (273.74) (12.39)

Decrease/(Increase) in Inventories (1,062.55) (1,697.64)

Decrease/(Increase) in Other Current Assets (781.60) (113.68)

Increase/(Decrease) in Current Liabilities (79.58) 925.75

CASh GENERATED FROM OPERATIONS (450.43) 19.78

Income tax paid (1.61) (182.80)

Fringe Benefit Tax (4.33) (0.86)

Deferred Tax Assets 4.40

CASh FLOW BEFORE EXTRAORDINARy ITEMS (451.97) (163.88)

Extraordinary items, if any – –

NET CASh FROM OPERATING ACTIVITIES (A) (451.97) (163.88)

Cash flows from Investing activities

Increase/(Decrease) in Minority Interest 90.38 10.81

Decrease/(Increase) in fixed assets (512.78) (53.72)

Capital Gain on Sale of Shares 0.47 192.30

Share of Income Tax of Firm (12.90) (9.20)

Share of profit from Firms 80.67 25.17

Decrease/(Increase) in Investments (2,509.64) (1,194.90)

(Rs. in Millions)


Consolidated Cash Flow Statement for the year ended March 31, 2008(Rs. in Millions)

Particulars 31st March, 2008 31st March, 2007Dividend Received 45.88 3.11

Sundry creditors written back 0.08 0.72

Sale of Assets 0.30 –

Share of loss transfer to Minority Interest (43.52) –

Interest on loan (Employee) 0.31 0.29

Net cash from Investing activities (B) (2,860.75) (1,025.42)

Cash flows from Financing activities

Proceeds from issuance of share capital 3,164.28 813.62

Increase/(Decrease) in Secured Loans (4.57) 512.60

Increase/(Decrease) in Unsecured Loans 84.73 259.10

Interest paid (80.22) (55.61)

Dividend paid (10.60) (8.21)

Tax on Dividend (1.49) (1.15)

Net cash used in financing activities (C) 3,152.13 1520.35

Net increase in cash and cash equivalents (A + B + C) (160.59) 331.05

Cash and cash equivalents at the beginning of period 418.31 87.26

Cash and cash equivalents at end of period 257.72 418.31













Particulars 31st March, 2008 31st March, 2007 SChEDULE 1 – ShARE CAPITALAuthorised 8,00,00,000 ( 8,00,00,000) Equity Shares of Rs. 10/ each

800.00 800.00

Issued, subscribed and paid up 7,53,10,048 (5,62,50,000) Equity Shares of Rs. 10/- each fully paid up

(Of the above shares Nil (2.19,02,252) shares are allotted as fully paid by way of bonus shares by capitalisation general reserve)

753.10 562.50

Total 753.10 562.50

SChEDULE 2 – RESERVE & SURPLUS 1. General Reserve Opening Balance – 7.50 Add: Transferred from Profit and Loss Account 128.66 211.52 Less: Capitalised on issue of bonus shares – 219.02 Closing Balance 128.66 – 2. Securities Premium Account Opening Balance 524.90 – Add: During the year 2,973.65 524.90 Closing Balance 3,498.55 524.90 3. Profit & Loss Account 1,768.58 728.83 Less: Share in Taxation of Firm 12.90 9.20

1,755.68 719.63 4. Capital Reserve: Opening Balance 0.57 – Adjustment on Consolidation as per AS-21, transfer to Capital Reserve/Goodwill on Consolidation (3.55) 0.57 Closing Balance (2.98) 0.57

Total 5,379.91 1,245.10

SChEDULE 3 – SECURED LOANS 1. Working Capital Loans from banks (Secured by Hypothecation of Stocks of Materials and Guaranteed by Director)

227.92 182.83

2. Term Loan from Bank 565.04 614.70

Total 792.96 797.53

SChEDULE 4 – UNSECURED LOANS 1. Loan - Unsecured 74.63 155.63 2. Optionaly Convertible Debenture 302.66 302.66 3. Debenture Application Money 400.17 234.44

Total 777.46 692.73

(Rs. in Millions)

Schedules forming part of the Consolidated Balance Sheet


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Particulars 31st March, 2008 31st March, 2007 SChEDULE 6 – INVESTMENTS 1. Investment in Govt. and Trust securities (Long-Term, Non-Trade and Unquoted) National Savings Certificates 0.03 0.02 2. Investments in Partnership Firms and Joint Ventures

Ankit Enterprises

Fixed Capital 0.04 0.03

Current Capital 352.16 323.81

Kolte-Patil Homes Capital A/c (37.18) (72.93)

Green Olive Venture Capital A/c 65.18 34.10

Vibhu-KPDL Venture 186.41 –

3. Other Investments

20 (20) Equity Shares in Rupee Co-op. Bank Ltd. 0.00 0.00

(Long-Term, Non-Trade and Unquoted)

13,200 (13,200) Equity Shares in Vijaya Bank of Rs. 24 each fully paid 0.32 0.32

(Long-Term, Non-Trade and Quoted)

Market Value Rs. 6,55,380 ( Previous year Rs. 5,61,000)

Corolla Realty Pvt. Ltd.

2,59,980 (1,85,000) Equity Shares of Rs. 10 each fully paid up 135.96 94.87

0.0001% 78,263 (55,500) Redeemable Preference Shares of Rs. 10/-each 0.78 0.56

15% - 12,30,913 (10,27,730) OCD Debentures of Rs. 100 each 123.09 102.77

Debentures Application Money 42.32 16.37

Mutual Fund (Long-Term, Non-Trade and Quoted) 1,875.94 –

Market Value Rs. 1,87,68,73,787/- (Previous year Nil)

Other Investment (Unquoted) 0.60 –

Fixed Deposit with bank 2.70 –

I-Ven Townships (Pune) Private Limited

15% 35,00,500 (35,00,500) OFC - Debentures of Rs. 100/- each 350.05 350.05

50,00,000 Equity Share Capital of Rs. 10 each fully paid up 50.00 50.00

OFC - Debentures Application Money 261.21 –

50,00,000 0.001% Redeemble Preferance Shares @ Rs.100/- 500.00 500.00

Total 3,909.61 1,399.97

SChEDULE 7 – INVENTORIES (At cost) 4,412.87 3,350.46

Work in ProgressTotal 4,412.87 3,350.46

SChEDULE 8 – SUNDRy DEBTORS (Unsecured considered good) Outstanding for a period exceeding six months 64.48 12.76 Others 225.81 3.93

Total 290.29 16.69

(Rs. in Millions)



Particulars 31st March, 2008 31st March, 2007 SChEDULE 9 – CASh & BANK BALANCE Cash in Hand 2.51 1.51 Cheques in Hand 51.48 0.66 Balance with Scheduled Banks In Current Account 69.05 29.33 In Deposit Account 134.68 386.81

Total 257.72 418.31 SChEDULE 10 – OThER CURRENT ASSETS (Unsecured considered good) Other Receivables 7.34 14.56 Interest Accrued 3.51 – IPO Expenses 204.38 12.83

Total 215.23 27.39

SChEDULE 11 – LOANS AND ADVANCES (Unsecured considered good) Loans to Others – 5.33 Advance recoverable in cash/in kind or for value to be received 696.06 316.85 Advance Tax and Tax Deducted at Source 381.83 182.87 Security Deposits 31.69 11.20 Prepaid Expenses 0.76 0.48

Total 1,110.34 516.73 SChEDULE 12 – CURRENT LIABILITIES Sundry Creditors - For goods & services 140.45 64.50 - For plot 491.01 202.14 Advances received from customers 1,165.33 1,571.54 Outstanding and other liabilities 119.35 407.54 Equity Share Application Money 250.00 – Security Deposits 1.72 1.72

Total 2,167.86 2,247.44

SChEDULE 13 – PROVISIONS Provision for Taxation 664.71 243.96 Provision for FBT 4.78 1.54 Provision for Proposed Dividend 131.88 10.60 Provision for Tax on Dividend 22.42 1.49

Total 823.79 257.59

SChEDULE 14 – MISCELLANEOUS EXPENSES To the extent not written off or adjusted Preliminary Expenses Opening Balance 5.22 0.59 Add: Additions 8.99 5.91

14.21 6.50 Less: Written off to Profit and Loss Account 1.32 1.28

Total 12.89 5.22

(Rs. in Millions)



Schedules forming part of the Consolidated Profit and Loss Account

Particulars 31st March, 2008 31st March, 2007 SChEDULE 15 – SALES Sale of Flats & Shops 2,628.46 1,557.50 Lease Rent 59.91 25.48 Sale of Plots 1,584.70 710.70 Services 15.11 9.15

Total 4,288.18 2,302.83SChEDULE 16 – OThER INCOME Profit on sale of Shares and Mutual Funds 0.47 192.30 Dividend from Shares and Mutual Funds 45.88 3.11 Miscellaneous Income 1.50 – Profit from Partnership Firms 80.67 25.17 Sundry creditors written back 0.08 0.72 Interest on Fixed Deposit/Loan 0.31 0.30

Total 128.91 221.60 SChEDULE 17 – COST OF CONSTRUCTION Opening WIP 3,350.46 1,861.75 Add/(Less): Adjustments (12.70) (20.37)

3,337.76 1,841.38 Add: Purchases/Construction Expenses 3,307.94 2,679.23

6,645.70 4,520.61 Less: Closing WIP 4,412.87 3,350.46

Total 2,232.83 1,170.15

SChEDULE 18 – EMPLOyEE COST Salaries, Wages, Allowances and Bonus 107.92 52.42 Contribution to Providend Fund and Other Fund 7.91 4.74 Staff Welfare Expenses 3.75 2.21

Total 119.58 59.37

SChEDULE 19 – GENERAL AND ADMINISTRATION EXPENSES Repairs and Maintainance 3.72 4.62 Domestic Travelling and Conveyance Expenses 8.98 10.83 Foreign Travelling Expenses 1.22 1.39 Rates and Taxes 5.10 11.84 Professional Fees 27.93 21.37 Telephone, Postage and Courier Charges 7.21 3.92 Insurance Charges 2.37 1.11 Office Expenses 23.07 7.64 Printing and Stationery 4.19 2.84 Loss on sale of vehicle 0.10 – Amount Written Off (IPO Expenses) 15.53 –

Total 99.42 65.56

(Rs. in Millions)


Particulars 31st March, 2008 31st March, 2007 SChEDULE 20 – SELLING EXPENSES Advertisement and Publicity 15.54 5.75 Sales Promotion Expenses 2.75 1.01 Brokerage 37.40 54.86 Donation – 3.35 Compensation for cancellation of booking 26.23 18.55 Bad Debts – 0.01

Total 81.92 83.53 SChEDULE 21 – FINANCE ChARGES Bank Interest 80.22 55.61

Total 80.22 55.61

SChEDULE 22

Disclosure of Accounting Policies and Notes on Accounts for the period ended on 31st March, 20081. BASIS OF CONSOLIDATION:

1.1. ACCOUNTING STANDARD – 21 “CONSOLIDATED FINANCIAL STATEMENTS”:

The Consolidated Financial Statements include the accounts of Kolte-Patil Developers Limited and its subsidiary undertaking.

Subsidiary undertakings are those companies in which Kolte-Patil Developers Limited directly or indirectly has an interest of more

than half of the voting power or otherwise, has power to exercise control over the operations. Subsidiaries are consolidated from

the date on which effective control is transferred to the group.

All inter company transactions, balances and unrealised surpluses and deficits on transactions with between group companies

are eliminated. Consistency in adoption of accounting policies among all group companies is ensured to the extent practicable.

Separate disclosure is made for minority interest.

Minority Interest in subsidiaries represents the proportionate share of the minority shareholders in net income of the subsidiaries.

The consolidated financial statement have been prepared using the uniform accounting policies except where stated otherwise, for

like transaction and are presented to the extent possible in the same manner as in the Company’s separate financial statements.

1.2 “ThE SUBSIDIARy COMPANIES CONSIDERED IN ThE CONSOLIDATED FINANCIAL STATEMENT ARE”:

Sr. No.

Name of the Company Proportion of Ownership Interest

a) Yashowardhan Promoters and Developers Pvt. Ltd. 59.99%

b) Regenesis Project Management Co. Pvt. Ltd. 99.99%

c) Bellflower Properties Pvt. Ltd. 96.21%

d) Kolte Patil Real Estate Pvt. Ltd. 51.00%

e) Sylvan Acres Pvt. Ltd. 89.99%

f) Lilac Hospitality Pvt. Ltd. 96.11%

g) Jasmine Hospitality Pvt. Ltd. 99.93%

h) Oakwoods Hospitality Pvt. Ltd. 99.88%

i) Olive Realty Pvt. Ltd. 89.10%

j) I-ven Kolte-patil Projects (Pune) Pvt. Ltd. 51.00%

(Rs. in Millions)

Disclosure of Accounting Policies and Notes on Accounts for the period ended on 31st March, 2008



1.3 “ThE SIGNIFICANT FIRMS AND JOINT VENTURE CONSIDERED IN ThE CONSOLIDATED FINANCIAL STATEMENTS ARE”:

Sr. No.

Name Constitutions Interest of Company

1. M/s. Ankit Enterprises Partnership Firm 75%

2. Kolte-Patil Homes Partnership Firm 60%

3. Green Olive Ventures A. O. P. 60% in Gross Sale

4. Vibhu KPDL Ventures A. O. P. 50% in Gross Sale

2. Notes to these Consolidated Financial Statements are intended to serve as a means of informative disclosure and a guide to better understanding of the consolidated position of the Companies. Recognising this purpose, the Company has disclosed only such notes from the individual financial statements, which fairly present the needed disclosures.

3. SIGNIFICANT ACCOUNTING POLICIES FOLLOWED By SUBSIDIARIES

(The Accounting Policies of the parent are best viewed in its independent Financial statement, Note No. 1 of Schedule 22):

3.1 yAShOWARDhAN PROMOTERS & DEVELOPERS PRIVATE LIMITED


The Financial statements are prepared on the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (“GAAP”) comprising the Accounting Standards issued by The Institute of Chartered Accountants Of India and the provisions of the Companies Act, 1956 as adopted consistently by the Company. All Income and Expenditure having a material effect bearing on the Financial Statements are recognised on the accrual basis.


The preparation of Financial Statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported balances of Assets and Liabilities as of the date of the Financial Statement and reported amounts of Income and Expenses during the period. Management believes that the estimates use in the preparation of Financial Statements is prudent and reasonable. Actual results could differ from the estimates.

c) FIXED ASSETS:

The Gross Block of Fixed Assets are stated in the Accounts at the purchase price of acquisition of such assets including any attributable cost of bringing the assets to its working condition for its intended use.

d) DEPRECIATION:

Depreciation is provided in the Books on “Written Down Value” basis at Rates prescribed under the Companies Act, 1956.


i. SALE OF FLATS:

During the year, the Company has followed the Percentage Completion Method of accounting as per the Guidance Note on Revenue Recognition by the Real Estate Developers issued by The Institute of Chartered Accountants of India. Total Sale Consideration as per the agreements to sale constructed properties is recognised as revenue based on the percentage of actual project cost incurred thereon, including the cost of land, estimated construction and development cost of the such properties, subject to actual construction cost incurred being 20% or more of the total cost of the construction of the project.

The amount received from customers which does not qualify for revenue recognition under the Percentage Completion Method are accounted as Current Liabilities under the head “Advance from Customers”. The amount receivable against the percentage of revenue recognised is accounted for as Current Assets under the head “Debtors” and the excess amount received from customer is accounted as Current Liabilities under the head “Advance from Customers.”

ii. INCOME FROM INVESTMENT:

Interest on Fixed Deposit is accounted on accrual basis.


f) INVENTORIES:

Inventory comprises property under constructions (work in progress). Work in progress comprises cost of land, development rights, TDR, Construction and Development Cost, Cost of Material, Services and Other Overheads related to projects under constructions

g) INVESTMENTS:

Investments are stated at cost.

h) BORROWING COST:

Borrowing costs are recognized as expenses in the period in which they are incurred and debited to Profit and Loss Account.

i) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

As per Accounting Standard 29, “Provisions, Contingent Liabilities and Contingent Assets” (AS)-29, issued by the Institute of Chartered Accountants of India, the Company recognises provisions only when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation as and when a reliable estimate of the amount of the obligation can be made.


Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company; or

Any present obligation that arises from past events but is not recognised because –

• It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

• A reliable estimate of the amount of obligation cannot be made.

Such obligations are recorded as Contingent Liabilities. These are assessed continually and only that part of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimate can be made.

Contingent Assets are not recognised in the Financial Statements since this may result in the recognition of income that may never be realised.

j) MISCELLANEOUS EXPENSES:

Miscellaneous Expenses are amortised over a period of five years.

k) IMPAIRMENT OF ASSET:

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the quarter in which an asset is identified as impaired.

3.2 REGENESIS PROJECT MANAGEMENT COMPANy PRIVATE LIMITED


The Financial statements are prepared on the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (“GAAP”) comprising the Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of fhe Companies Act, 1956 as adopted consistently by the Company. All Income and Expenditure having a material effect bearing on the Financial Statements are recognised on the accrual basis.



c) FIXED ASSETS:

The Gross Block of Fixed assets are stated in the Accounts at the purchase price of acquisition of such assets including any attributable cost of bringing the assets to its working condition for its intended use.



d) DEPRECIATION:

Depreciation is provided in the Books on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

e) BORROWING COST:

Borrowing cost is recognised as expenses in the period in which they are incurred and debited to Profit and Loss Account.

f) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

As per Accounting Standard 29, “Provisions, Contingent Liabilities and Contingent Assets” (AS-29), issued by the Institute of Chartered Accountants of India, the Company recognises provisions only when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation as and when a reliable estimate of the amount of the obligation can be made.


i. Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company; or

ii. Any present obligation that arises from past events but is not recognized because –





g) RETIREMENT BENEFITS:

Estimated liabilities towards retirement benefits to employees have not been quantified on the date of Balance Sheet. The same is accounted for on cash basis.

h) IMPAIRMENT OF ASSET:

There is no impairment of Assets during the year, since carrying amount of Assets does not exceed recoverable value.

i) TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the year based on the provisions of the Income Tax Act, 1961.

Provision for Fringe Benefit Tax is worked out as per the provisions of the Income Tax Act, 1961 as applicable for A.Y. 2008-2009.

Deferred tax for the year is recognised on timing difference; being the difference between taxable income and accounting income that originate in one period and are capable for reversal in one or more subsequent periods.

Deferred Tax Liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

j) MISCELLANEOUS EXPENSES:

The expenditure incurred on the formation of the Company is considered as Preliminary expenses and amortised over a period of five years.

3.3 SyLVAN ACRES REALTy PRIVATE LIMITED




The Financial statements are prepared on the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (“GAAP”) comprising the Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 as adopted consistently by the Company. All Income and Expenditure having a material effect bearing on the Financial Statements are recognized on the accrual basis.


The preparation of Financial Statements in conformity with Generally Accepted Accounting Principles requires the management to make estimates and assumptions that affect the reported balances of Assets and Liabilities as of the date of the Financial Statement and reported amounts of Income and Expenses during the period. Management believes that the estimates use in the preparation of Financial Statements is prudent and reasonable. Actual results could differ from the estimates.

c) INVESTMENTS:


d) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:



(i) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company; or

(ii) Any present obligation that arises from past events but is not recognised because –





e) PRELIMINARy EXPENSES:

The expenditure incurred on the formation of the Company is considered as deferred revenue expenditure.

3.4 I-VEN KOLTE-PATIL PROJECTS (PUNE) PRIVATE LIMITED







c) FIXED ASSETS:


d) DEPRECIATION:

Depreciation is provided in the Books on “STRAIGHT LINE” basis at rates prescribed under the Companies Act, 1956.


INCOME FROM INVESTMENT

Interest on Fixed Deposit is accounted on accrual basis.

f) INVENTORIES:

Inventory comprises property under constructions (work in progress). Work in progress comprises cost of land, development rights, TDR, construction and development cost, cost of material, services, indirect expenses and Other Overheads related to projects under constructions.

g) INVESTMENTS:


h) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:









i) MISCELLANEOUS EXPENSES:

Miscellaneous Expenses are amortized over a period of five years.

j) IMPAIRMENT OF ASSET:

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the quarter in which an asset is identified as impaired.

k) TAXES ON INCOME:

Deferred tax for the year is recognised on timing difference; being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred Tax Assets and Liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred Tax liabilities are recognised and carried forward only if there is reasonable/ virtual certainty of its realisation.



3.5 KOLTE-PATIL REAL ESTATE PRIVATE LIMITED


The Financial statements are prepared on the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (“GAAP”) comprising the Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 as adopted consistently by the Company. All Income and Expenditure having a material effect bearing on the Financial Statements are recognised on the accrual basis.



c) PRELIMINARy EXPENSES:

The Expenses incurred on the formation of company and administrative expenditure incurred up to 30.09.2007 grouped under the head preliminary expenses which are considered as Deferred Revenue Expenditure and 1/5 amount of the same written off as expenses.

d) WORK IN PROGRESS:

Work in Progress is stated at cost, which comprises of cost of land, development cost, construction material cost, indirect expenses and other incidental expenses is based on verification and Technical Valuation by the Management.

e) INCOME FROM INVESTMENT:

Dividend from investment in mutual fund is accounted on accrual basis.

f) INVESTMENTS:

Investments in mutual fund are stated at cost.

g) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:




(ii) Any present obligation that arises from past events but is not recognized because –




Contingent Assets are not recognised in the Financial Statements since this may result in the recognition of income that may

never be realised.



3.6 OAKWOODS hOSPITALITy PRIVATE LIMITED





c) FIXED ASSETS:











e) MISCELLANEOUS EXPENSES:

The expenditure incurred on the formation of the Company is considered as Preliminary Expenses.

3.7 LILAC hOSPITALITy PRIVATE LIMITED


The Financial statements are prepared on the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (“GAAP”) comprising the Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of The Companies Act, 1956 as adopted consistently by the company. All Income and Expenditure having a material effect bearing on the Financial Statements are recognised on the accrual basis.


The preparation of Financial Statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported balances of Assets and Liabilities as of the date of the Financial



Statement and reported amounts of Income and Expenses during the period. Management believes that the estimates use in the preparation of Financial Statements is prudent and reasonable. Actual results could differ from the estimates.

c) FIXED ASSETS:


d) DEPRECIATION:

Depreciation is provided in the Books on “Straight Line Method” basis at rates prescribed under the Companies Act, 1956.

e) BORROWING COST:

Borrowing costs are recognized as expenses in the period in which they are incurred and debited to Profit and Loss Account.

f) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

As per Accounting Standard 29, “Provisions, Contingent Liabilities and Contingent Assets” (AS)-29, issued by the Institute of Chartered Accountants of India, the Company recognises provisions only when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation as and when a reliable estimate of the amount of the obligation can be made.







Contingent Assets are not recognized in the Financial Statements since this may result in the recognition of income that may never be realised.

g) MISCELLANEOUS EXPENSES:

The expenses incurred on formation of the Company is considered as Preliminary expenses and amortised over a period of five years.

3.8 JASMINE hOSPITALITy PRIVATE LIMITED


The Financial statements are prepared on the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (“GAAP”) comprising the Accounting Standards issued by The Institute o Chartered Accountants of India and the provisions of the Companies Act, 1956 as adopted consistently by the Company. All Income and Expenditure having a material effect bearing on the Financial Statements are recognized on the accrual basis.





c) FIXED ASSETS:






(ii) Any present obligation that arises from past events but is not recognized because –





e) MISCELLANEOUS EXPENSES:

The expenditure incurred on formation of the Company are considered as preliminary expenses.

3.9 OLIVE REALTy PRIVATE LIMITED


The Financial statements are prepared on the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (“GAAP”) comprising the Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 as adopted consistently by the Company. All Income and Expenditure having a material effect bearing on the Financial Statements are recognised on the accrual basis.



c) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:







• It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or • A reliable estimate of the amount of obligation cannot be made.


Contingent Assets are not recognized in the Financial Statements since this may result in the recognition of income that may never be realised.

d) MISCELLANEOUS EXPENSES:

The expenditure incurred on the formation of the Company is considered as Preliminary Expenses and amortised over a period of five years.

3.10 BELLFLOWER PROPERTIES PRIVATE LIMITED





c) PRELIMINARy EXPENSES:

The Expenditure incurred on the formation of the Company is considered as deferred revenue expenditure.

d) WORK IN POGRESS:

Work in progress is stated at cost, which comprises of of cost of land, development expenses, construction material cost, indirect expenses and other incidental expenses is based on verification and Technical Valuation by management.

e) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:











4.1 yAShOWARDhAN PROMOTERS & DEVELOPERS PRIVATE LIMITED

1. EVENTS OCCURRING AFTER BALANCE ShEET DATE:

No significant events which could affect the financial position as on 31st March, 2008, to a material extent have been

reported after the Balance Sheet date till the signing of report.

2. PRIOR PERIOD AND EXTRA ORDINARy ITEMS:


Financial Statements for one or more periods.

3. TAXATION:

Income Tax expenses for the year included Current Tax, Fringe Benefit Tax. Provision, for Current Income Tax is made on

the Current Tax Rate based on assessable income for the year work out as per the provision of Income Tax Act, 1961, as

applicable for A.Y. 2008-2009. The Deferred Tax Assets and Liabilities are recognized for the future tax consequences of

timing differences, subject to the consideration of prudence. Deferred Tax Assets and Liabilities are measured using the tax

rates enacted or substantively enacted by the Balance Sheet date.

4. DETAILS OF PURChASE, STOCK CONSUMPTION AND TURNOVER OF RAW MATERIAL AND COMPONENTS:

(i) The Company has maintained the quantitative stock record.

(ii) The total amount wise information is as follows:


Particulars 31.03.2008 31.03.2007

Opening Work in Progress 333.46 208.92Purchases and other expenses 291.24 103.25Sales 584.54 0.00Closing Work in Progress 222.94 333.46

5. The Company has not received any intimation from “Suppliers” regarding their status under the Micro, Small and Medium

Enterprises Development Act, 2006 and hence the Disclosure, if any, relating to amounts unpaid as at the year end together

with interest paid/payable as required under the said Act have not been given.

6. RELATED PARTy TRANSACTIONS:

Related party disclosures as required by Accounting Standard 18 ‘Related Party Disclosures’, (AS-18) issued by the Institute

of Chartered Accountants of India are given below.

a) Related Parties (as identified by the management) are classified as

Holding Company Kolte-Patil Developers LimitedKey Management Personnel (Directors) Mr. Gurnani Harish Kumar

b) Summary of significant related party transactions (as identified by the management) carried out in ordinary course of

business are as follows: (Amount in Millions)

Particulars holding Company Key Management Personnel (Director)

Interest payable 8.12 1.95

Loan Repaid 89.00 –

Loan Given 17.75 –

Expenditure Incurred and Reimbursement 0.33 –



7. In the opinion of the Board, Current Assets and Loans and Advances have a Value on realisation in the ordinary course of

business at least equal to the amount at which they are stated and provisions for all known and determined liabilities are

adequate and not in the excess of the amount reasonably necessary.


9. Interest amount debited in Profit and Loss Account is after considering Interest Received.

10. Estimated amounts of contract remaining to be executed on Capital Account and not provided for – NIL.


Accounting Standards Interpretation (ASI) 20 dated 14.02.2004, issued by the Accounting Standard Board of the Institute of

Chartered Accountants of India, on the AS–17, Segment reporting clarifies that in case by applying the definition of “Business

Segment and Geographical Segment” given in AS-17, it is concluded that there is neither more than one business segment nor

more than one geographical segment, Segment Information as per AS-17 is not required to be disclosed.

12. EARNING PER ShARE:

The earnings considered in ascertaining the Company’s EPS comprises the profit available for shareholders i.e. profit after tax

and statutory/regulatory appropriations. The number of shares used in computing Basic EPS is the weighted average number

of shares outstanding during the year as per the guidelines of AS–20.

Particulars 31.03.2008

Net Profit attributable to shares holders. Rs./million 104.71

Weighted average number of equity shares no. 1,76,320

Basic and diluted earnings per share – Rs. 593.86

Nominal value of equity shares – (Rs.) 10

13. In view of Accounting Standard required by AS-28 “Impairment of Assets” issued by the Institute of Chartered Accountants

of India, the Company has reviewed its Fixed Assets and does not expect any loss as on 31st March, 2008 on account of

impairment in addition to the provision already made in the books.

14. The Work in Progress have been taken as verified, valued and certified by the management and as informed, it is taken on

the basis of cost price.

15. Last year figures have been regrouped, reclassified and rearranged whenever necessary.

4.2 REGENESIS PROJECT MANAGEMENT COMPANy PRIVATE LIMITED







3. TAXATION:

Income tax expenses for the year includes current tax, fringe benefit tax, and provision for the same is made on the basis of

provisions of the Income Tax Act, 1961 as applicable for A.Y. 2008-2009.

4. In the opinion of the Board Current Assets and Loans and Advances have a value on realisation in the ordinary course

of business at least equal to the amount at which they are stated and provisions for all known and determined liabilities

adequate and not in excess of the amount reasonably necessary.




Enterprises Development Act, 2006 and hence the Disclosure, if any, relating to amounts unpaid as at the quarter end

together with interest paid/payable as required under the said Act have not been given.

6. CONTINGENT LIABILITIES:

The Company does not have contingent liability as on 31st March, 2008.





Holding company Kolte-Patil Developers Limited

Key Management Personnel - Director Mr. Rajesh A. Patil, Mr. Milind D. Kolte

Relative of Key Management Personnel Mr. Naresh A.Patil

Associates/Enterprises over which key Management Personnel have significant influence

Regenesis Project Management Co. Pvt. Ltd., K2A Residential Ltd.

b) Summary of significant related party transactions (as identified by the management) carried out in ordinary course of business are as follows:

(Rs. in Millions)

Particulars holding company

Key Management Personnel (Directors)

Relative of Key Management

Personnel

Associates/Enterprises over which

Key Management Personnel have

significant influence

Brokerage & Commission 9.38 1.04 0.82 20.92

Professional Fees 14.61 – – 5.19

Rent Paid 1.19 – – –

Expenditure Incurred & Reimbursement 0.32 – – 0.04


9. Estimated amounts of contract remaining to be executed on capital account and not provided for – NIL.









Chartered Accountants of India, on the AS-17, Segment reporting clarifies that in case by applying the definition of “Business

Segment and Geographical Segment” given in AS-17, it is concluded that there is neither more than one business segment

nor more than one geographical segment, Segment Information as per AS-17 is not required to be disclosed.



13. The earnings considered in ascertaining the Company’s EPS comprises the profit available for shareholders i.e. profit after tax


of shares outstanding during the year.

Particulars 31.03.2008 31.03.2007

Net Profit attributable to shares holders. Rs. / million 1.57 0.66

Weighted average number of equity shares no. 4,99,998 4,99,000

Basic and diluted earnings per share – Rs. 3.15 1.32

Nominal value of equity shares – (Rs.) 100 100

14. PARTICULARS OF EXPENSES INCURRED IN FOREIGN CURRENCy:


Particulars F.y. 2007-2008

Expenditure incurred in foreign currency: Travelling (As certified by management) (USD) 3525- Rs.0.15

(POUND) 18250- Rs. 0.10

15. Last years figures have been regrouped, reclassified and rearranged whenever necessary.

4.3 SyLVAN ACRES REALTy PRIVATE LIMITED












of Chartered Accountants of India are given below:


Holding Company Kolte-Patil Developers Limited

Key Management Personnel (Director) Mr. Rajesh A. Patil, Mr. Milind D. Kolte

Relatives Key Management Personnel Mr. Naresh A. Patil

Associates/Enterprises over which key Management Personnel have significant influence

I-Ven Townships (Pune) Pvt. Ltd.




(Rs. in Millions)

Particulars holding Company

Key Management

Personnel (Directors)

Relative of Key Management

Personnel

Associates/Enterprises over which Key

Management Personnel have significant influence

Equity Shares Capital 16.60 – – –

Debenture Application Money 78.88 92.82 72.90 260.55

5. In the opinion of the Board, Current Assets and Loans and Advances have a Value on realization in the ordinary course of







Accounting Standards Interpretation (ASI) 20 dated 14.02.2004, issued by the Accounting Standard Board of the Institute

of Chartered Accountants of India, on the AS – 17, Segment reporting clarifies that in case by applying the definition of

“Business Segment and Geographical Segment” given in AS-17, it is concluded that there is neither more than one business

segment nor more than one geographical segment, Segment Information as per AS-17 is not required to be disclosed.


The Company does not have contingent liability as on 31st March, 2008

9. PARTICULARS OF EXPENSES INCURRED IN FOREIGN CURRENCy – NIL


4.4 I-VEN KOLTE-PATIL PROJECTS (PUNE) PRIVATE LIMITED







3. TAXATION:

a) Since there is no taxable income provision for Income Tax is not made in the Accounts.

b) Provision for Fringe Benefit Tax is worked out as per the Provisions of the Income Tax Act, 1961 as applicable for

A. Y. 2008-2009.



4. PARTICULARS OF EXPENSES INCURRED IN FOREIGN CURRENCy:

(Rs. in Millions)

Sr. No.

Particulars F. y. 2007-2008

a) Architectural Fees Rs. 2.17(USD 54000)

b) Travelling Expenses Rs. 0.19(USD 4694)


i. The Company has maintained the quantitative stock record.

ii. The total amount wise information is as follows:

(Rs. in Millions)

Particulars 31.03.2008 31.03.2007

Opening Work in Progress 641.73 –

Purchases and other expenses 68.34 640.41

Closing Work in Progress 724.26 641.73








Holding Company Kolte-Patil Developers LimitedAssociates/Enterprises over which Key Management Personnel have significant influence

The Western India Trustee and Executor Company Ltd., India Advantage Fund III, Regenesis Project Management Co. Pvt. Ltd., Ankit Enterprises


business are as follows:

(Rs. in Millions)

Particulars holding Company Associates/Enterprises over which Key

Management Personnel have significant influence

Debenture Application Money 14.36 –Brokerage – 8.68 Project Management Fees – 2.31 Expenditure Incurred and Reimbursement – 0.26















of shares outstanding during the year as per the guidelines of AS–20.

Particulars 31.03.2008

Net Profit attributable to shares holders. Rs./million 0.04

Weighted average number of equity shares no. 100000



4.5 KOLTE-PATIL REAL ESTATE PRIVATE LIMITED





There are no material changes or credit which arises in current period, on account of errors or omissions in the preparation

of Financial Statements for one or more periods.


i) The Company has maintained the quantitative stock record.

ii) The total amount wise information is as follows:

(Rs. in Millions)

Particulars 31.03.2008 31.03.2007

Purchases and other incidental expenses 1,369.57 –

Closing Work in Progress 1,369.57 –

4. TAXATION:

Since there is no taxable income provision for Income tax is not made in the accounts.


Related party disclosures as required by Accounting Standard 18 ‘Related Party Disclosures’, (AS-18) issued by the

Institute of Chartered Accountants of India are given below:


Holding Company Kolte-Patil Developers LimitedKey Management Personnel (Director) Mr. Rajesh A. Patil, Mr. Milind D. Kolte

Associates/Enterprises over which Key Management Personnel have significant influence

Regenesis Project Management Co. Pvt. Ltd., K2A Residential Ltd.




(Rs. in Millions)

Particulars holding Company

Key Management Personnel (Director)

Associates/Enterprises over which Key Management


Equity Share Capital 468.47 0.19 45.17

Share Application Money 5.77 – 45.17

Purchase of Plot 800.00 – –

Brokerage – – 10.86

Expenditure Incurred & Reimbursement – – 0.002







8. Accounting Standards Interpretation (ASI) 20 dated 14.02.2004, issued by the Accounting Standard Board of ICAI, on AS-17,

Segment reporting clarifies that in case by applying the definition of “Business Segment and Geographical Segment” given

in AS-17, it is concluded that there is neither more than one business segment nor more than one geographical segment,

Segment Information as per AS-17 is not required to be disclosed.




of shares outstanding during the year as per the guidelines of AS – 20.

Particulars 31.03.2008Net Profit attributable to shares holders. Rs./million 3.63

Weighted average number of equity shares no. 1,19,488




The Company does not have contingent liabilities as on 31st March, 2008

11. PARTICULARS OF EXPENSES INCURRED IN FOREIGN CURRENCy: – Nil

12. a) The Work in Progress have been taken as verified, valued and certified by the management and as informed, it is taken

on the basis of cost price.

b) Since the Company has undertaken only one project, all indirect expenses are also considered as cost of

constructions.




4.6 OAKWOODS hOSPITALITy PRIVATE LIMITED




2. TAXATION:

Since there is no taxable income provision for Income Tax is not made in the accounts.







a) Related Parties (as identified by the management) are classified as

Holding Company Kolte-Patil Developers Limited.

Key Management Personnel (Directors) Mr. Rajesh A. Patil, Mr. Milind D. Kolte



(Rs. in Millions)

Particulars holding Company Key Management Personnel (Directors)

Equity Share Capital 10.26 0.19 Plot Purchase 172.00 – Equity Share Application Money 10.17 –





Accounting Standards Interpretation (ASI) 20 dated 14.02.2004, issued by the Accounting Standard Board of the Institute

of Chartered Accountants of India, on the AS – 17, Segment reporting clarifies that in case by applying the definition of

“Business Segment and Geographical Segment” given in AS-17, it is concluded that there is neither more than one business

segment nor more than one geographical segment, Segment Information as per AS-17 is not required to be disclosed.

4.7 LILAC hOSPITALITy PRIVATE LIMITED




2. TAXATION:

Income Tax expenses for the year included Fringe Benefit Tax. The Deferred Tax Assets and Liabilities are recognized for the

future tax consequences of timing differences, subject to the consideration of prudence. Deferred Tax Assets and Liabilities

are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.







Related party disclosures as required by Accounting Standard 18 ‘Related Party Disclosures’, (AS)-18 issued by the Institute



Holding company Kolte-Patil Developers Limited

Key Management Personnel (Directors) Mr. Rajesh A. Patil, Mrs. Sunita M. Kolte, Ms. Ankita R. Patil



(Rs. in Millions)



Share Application Money 4.77 –









4.8 JASMINE hOSPITALITy PRIVATE LIMITED




2. TAXATION:

Since there is no taxable income, provision for income tax is not made in the accounts.










Holding Company Kolte-Patil Developers Limited

Key Management Personnel (Directors) Mr. Rajesh A. Patil, Mrs. Sunita M. Kolte, Ms. Ankita R. Patil



(Rs. in Millions)



Purchase of Plot 281.50 –

Share Application Money 295.48 –









4.9 OLIVE REALTy PRIVATE LIMITED




2. TAXATION:

Since there is a loss no provision for Income Tax is made in the books of account.








Holding Company Kolte-Patil Developers Limited.Key Management Personnel (Directors) Mr. Rajesh A. Patil, Mr. Milind D.KolteAssociates/Enterprises over which key Management Personnel have significant influence

Regenesis Project Management Co. Pvt. Ltd.




business are as follows

(Rs. in Millions)


Associates/Enterprises

over which Key Management


Equity Share Capital 8.91 1.09 –Advance paid for plot purchase – 92.00 –Equity Share Application Money 92.50 – –Expenditure Incurred & Reimbursement – – 0.01

5. In the opinion of the Board, Current Assets and Loans and Advances have a Value on realization in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known and determined liabilities are adequate and not in the excess of the amount reasonably necessary.


Accounting Standards Interpretation (ASI) 20 dated 14.02.2004, issued by the Accounting Standard Board of the Institute of Chartered Accountants of India, on the AS–17, Segment reporting clarifies that in case by applying the definition of “Business Segment and Geographical Segment” given in AS-17, it is concluded that there is neither more than one business segment nor more than one geographical segment, Segment Information as per AS-17 is not required to be disclosed.

4.10 BELLFLOWER PROPERTIES PRIVATE LIMITED


No significant events which could affect the financial position as on 31st March, 2008, to a material extent have been reported after the Balance Sheet date till the signing of report.


(i) The Company has maintained the quantitative stock record.

(ii) The total amount wise information is as follows:

(Rs. in Millions)

Particulars 31.03.2008 31.03.2007

Purchases and other expenses 345.91 –

Closing Work In Progress 345.91 –

3. TAXATION

Since there is a loss no provision for Income Tax is made in the books of accounts.

4. RELATED PARTy TRANSACTIONS

Related party disclosures as required by Accounting Standard 18 ‘Related Party Disclosures’, (AS)-18 issued by the Institute



Holding company Kolte-Patil Developers Limited.Key Management Personnel (Directors) Mr. Rajesh A. Patil, Mr. Milind D. KolteAssociates/Enterprises over which key Management Personnel have significant influence

Regenesis Project Management Co.Pvt. Ltd.




business are as follows

(Rs. in Millions)


Associates/Enterprises over which

Key Management Personnel have

significant influence

Equity Share Capital 4.81 0.19 – Debenture Application Money 125.50 – – Purchase of Plot 212.33 – – Expenditure Incurred & Reimbursement – – 0.02







7. Accounting Standards Interpretation (ASI) 20 dated 14.02.2004, issued by the Accounting Standard Board of the Institute of





The Company does not have contingent liability as on 31st March, 2008.

9. PARTICULARS OF EXPENSES INCURRED IN FOREIGN CURRENCy: – Nil

10. WORK IN PROGRESS:

a) The Work in Progress have been taken as verified, valued and certified by the management and as informed, it is

taken on the basis of cost price.

b) Since the Company has undertaken only one project, all indirect expenses are also considered as cost of

constructions.



ElEctronic clEaring FacilityDear Shareholder,

Sub: Payment of dividend through Electronic clearing Services (EcS)

You would be aware of Electronic Clearing Services (ECS) being offered by the Reserve Bank of India in selected cities. ECS facilitates

automatic credit payment of dividend to one’s Bank account and eliminates the risk of fraudulent encashment and also the risk of loss

in transit warrants.

Under this arrangement, the payment instruction would be issued electronically through our Bank to the clearing Authority who shall

give credit reports to the Bank with whom you maintain the specified account. Your Bank will credit your account and indicate the credit

entry as ‘ECS’ in your passbook/statement of account. If you wish to avail this facility, please fill up the mandate form overleaf and send

the same along with photocopy of cheque pertaining to that Bank account where you would like the amount to be credited. The said

documents should be sent to our Registrar and Share Transfer Agent i.e. Bigshare Services Private Limited as early as possible.

Shareholders in places where ECS facility is not available may also send us their Bank account details. These details will be printed on

the face of the dividend warrant. The dividend warrant shall be sent to your address.

If you hold the shares in dematerialized form, you may kindly inform your depository participants about your ECS particulars/changes

in the Bank account who will in turn update these details in NSDL/CDSL system. The updated details in the NSDL/CDSL system will be

used by us for remitting the dividend to you.

Thanking you,

Yours faithfully

For Kolte-Patil Developers Limited

Vinod Patil

Company Secretary

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Electronic clearing Services (EcS) Mandate Format for Payment of Dividend

To,Bigshare Services Private LimitedE-2, Ansa Industrial Estate, Sakivihar Road,Saki Naka, Andheri (East),Mumbai-400 072

Dear Sirs,

(Please fill in the information in CAPITAL LETTERS in ENGLISH ONLY)

EcS ref.no---------For Office Use Only------

I/We hereby give my/our mandate to credit my/our Dividend on the equity shares held by me/us to my/our Bank account through the Electronic Clearing Services. The details of the Bank account are given below.

EcS ManDatE ForM

1. Name of the Shareholder : ___________________________________________________________________

2. Folio No./Client ID & DP ID : ___________________________________________________________________

3. No. of Shares : ___________________________________________________________________

4. Bank Name : ___________________________________________________________________

5. Branch Name : ___________________________________________________________________

6. Account Number (as appearing on Cheque Book) : ___________________________________________________________________

7. Ledger Folio No. of the Account (If appearing on Cheque book) : ___________________________________________________________________

8. Account Type SB Current Other, Please specify (Pleasetick(√)theproperbox)

9. 9-Digit Code Number of the Bank & Branch appearing on the MICR Cheque issued by the Bank (Please attach photocopy of cheque or a blank cancelled cheque issued by your Bank relating to your above Account for verifying the accuracy of the code number)

10. E-mail ID, if any : ___________________________________________________________________

11. I/We hereby declare that the particulars given above are correct and complete. If the transaction is delayed or not effected at all for reasons of incomplete or incorrect information, I/We would not hold the Company responsible. I/We undertake to inform any subsequent changes in the above particulars before the relevant Book Closure Date(s).

__________________________________________________

Place: Signature of the First/Sole ShareholderDate: (as per specimen signatures registered with the Company)

instructions:1. Please send the duly completed and signed form.2. For any change of ECS mandate fresh form need to be submitted in the same format.3. Please note that any changes in ECS mandate revokes previous ECS mandate.4. Fax/Scannedcopyofthesignedformsshallnotbeaccepted

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KoltE-Patil DEVEloPErS liMitEDregistered office: 2nd Floor, City Point, Dhole Patil Road, Pune - 411 001

attEnDancE SliPSeventeenth annual general Meeting

Wednesday, 30th July, 2008 at 11.30 a.M.

DP iD no. l.F. no.

client iD no. no. of Shares held

I/We hereby record my/our presence at the Annual General Meeting of the Company held at Pudumjee Hall, Mahratta Chamber of Commerce

Industries & Agriculture (MCCIA), Tilak Road, Near Swargate, Pune - 411 002, on Wednesday, 30th July, 2008 at 11.30 a.m.

_______________________________ _______________________________

NameofAttendingMember NameoftheAttendingProxy

_______________________________ _______________________________

SignatureoftheAttendingMember SignatureoftheAttendingProxy

note: Please fill up this attendance slip and hand it over at the entrance of the meeting hall. Members are requested to bring this slip

for the meeting.

KoltE-Patil DEVEloPErS liMitEDregistered office: 2nd Floor, City Point, Dhole Patil Road, Pune - 411 001

DP iD no. l.F. no.

client iD no. no. of Shares held

ForM oF ProXy

I/We_____________________________________________________R/o____________________________________________________

being Member/Members of Kolte-Patil Developers Limited hereby appoint _________________________________________________

R/o _______________________________falling him/her____________________________R/o__________________________________

asmy/ourProxytoattendandvoteforme/usandonmy/ourbehalfattheSeventeenthAnnualGeneralMeetingoftheCompany,to

be held on Wednesday, 30th July, 2008 at 11.30 a.m. and at any adjournment thereof.

_______________________________ _______________________________

NameoftheMember/Proxy SignatureoftheMember/Proxy

(In BLOCK letters)

notes:1. TheProxyFormshouldbesignedacrosstheRevenueStampasperspecimensignature(s)registeredwiththeCompany.2. TheProxyFormdulycompletedshouldbedepositedattheRegisteredOfficeoftheCompanynotlessthan48hoursbeforethe

timefixedforholdingthemeeting.3. AproxyneednotbeaMemberoftheCompany.

Affix

15 paisa Revenue Stamp

115 16 17 20

43 46

01 08 10 12 14

28 38

65 66

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