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Notes to Accounts of Brigade Enterprises Ltd.

Mar 31, 2016

For details of shares reserved for issue under the employee stock option plan (ESOP) of the Company, refer note 42.

Note 1: Includes term loan from banks secured by way of assignment of project receivables Rs, 69,639 Lakhs (March 31, 2015: Rs, 57,465 Lakhs) and further secured by collateral security of underlying land, building and movable fixed assets. The loans carry interest in the range of 11-12% and are repayable within 60-120 installments of up to Rs, 300 Lakhs. Certain loans are further guaranteed by Company’s Directors - Rs, 923 Lakhs (March 31, 2015: Rs, 28,153 Lakhs) and a subsidiary company - Rs, Nil (March 31, 2015: Rs, 8,373 Lakhs). Note 2: Includes term loan from banks by way of mortgage of project properties Rs, 101,609 Lakhs (March 31, 2015: Rs, 65,721 Lakhs). The loans carry interest rate in the range of 10-14% and are repayable within 12-60 installments of up to Rs, 300 Lakhs. Certain loans are further guaranteed by Company''s directors - Rs, 18,701 Lakhs (March 31, 2015: Rs, 38,881 Lakhs).

* Represent amounts repayable within the operating cycle. Amount repayable within twelve months is Rs, 46,614 Lakhs (March 31, 2015: Rs, 26,606 Lakhs)

Note: Cash credit facilities from banks are secured by way of mortgage of project properties and are personally guaranteed by the directors of the Company. The facilities carry interest rate in the range of 12-14% and are repayable on demand.

(a) Till March 31, 2015, Buildings comprising the civil structure and the associated electrical installation & equipment and plant & machinery were capitalized under ‘Building'' since machineries and equipment like air-conditioning, lifts, fire protection system, electrical equipment etc. forms an integral part of the building without which the building cannot operate. The life of the building was considered to be co-terminus with the life of the machineries and equipment based on the estimated useful life of the assets and accordingly depreciation rate was adopted for this class of assets.

During the year ended March 31, 2016, the Company has changed its accounting policy for tangible assets and has adopted component accounting in accordance with the provisions of the Companies Act, 2013. Consequently, gross block of Buildings have been broken up into various components and depreciated. Also, refer Note 2.1(a) for details in this regard.

(b) During the year, the Company has acquired an immovable property outside India amounting to Rs, 350 Lakhs (capitalised under ‘Building'') for its business in compliance with applicable regulations.

(c) Tangible assets include following assets given on operating lease:

Note: Additions to CWIP include certain expenses which have been directly capitalized to CWIP. Consequently, expenses disclosed under the respective notes are net of such amounts capitalized by the Company.

(a) BCV Developers Private Limited (‘BDPL''), a subsidiary company, along with two joint venture companies BCV Estates Pvt. Ltd. (‘BEPL'') and CV Properties (Bangalore) Pvt. Ltd. (‘CPPL''), had filed a scheme of amalgamation, with the appointed date for such scheme being 01.10.2013. The scheme has been sanctioned by the High Court of Karnataka on April 29, 2015 and the companies have filed the order with the Registrar of Companies on May 25, 2015. Upon such filing, BEPL and CPPL have amalgamated into BDPL and the equity shareholders of BEPL and CPPL were issued equivalent equity shares in BDPL. Consequently, the investments in BEPL and CPPL have been merged into the investments in BDPL and accordingly disclosed above. Also refer note 37 and 41.

(b) During the year, the Company has made equity investment of Rs, 8,170 Lakhs in Prosperita Hotel Ventures Ltd (‘PHVL'') by way of conversion of loans given to PHVL.

** Includes amount paid under protest of Rs, 1,185 Lakhs (March 31, 2015: Rs, 702 Lakhs).

**** Net of utilization of Rs, 1,651 Lakhs (March 31, 2015: Rs, 1,032 Lakhs)

***** Includes security deposit to related party - WTC Trades and Projects Private Limited of Rs, 613 Lakhs (March 31, 2015: Rs, 613 Lakhs) *** Includes loans and advances due by directors or other officers, etc. as below.

2. Gratuity

The Company operates defined gratuity plan for its employees. Under the plan, every employee who has completed atleast five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for gratuity.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

* Lease rental income includes:

(a) income from certain commercial properties, which are held as inventory and leased out during the interim period until such properties are sold.

(b) income based on percentage of sales is Rs, 1,958 Lakhs (March 31, 2015: Rs, 1,983 Lakhs).

3. Capital and other Commitments

(a) At March 31, 2016, the estimated amount of contract (net of capital advance) remaining to be executed on capital account not provided for was Rs, 7,356 Lakhs (March 31, 2015: Rs, 16,266 Lakhs)

(b) For commitments relating to lease arrangements, please refer note 29.

(c) At March 31, 2016, the Company has given Rs, 32,818 Lakhs (March 31, 2015: Rs, 27,902 Lakhs) as advances for purchase of land/ joint development. Under the agreements executed with the land owners, the Company is required to make further payments and/or give share in area/ revenue from such development in exchange of undivided share in land based on the agreed terms/ milestones.

(d) In connection with Company''s investments in certain subsidiaries, the Company has entered into shareholders agreement with other shareholders wherein it has certain commitments including further investment in accordance with the terms of the agreement.

(e) The Company has entered into a power purchase agreement with a party wherein the Company has committed minimum purchase of power.

(f) The Company is committed to provide financial support to some of its subsidiaries to ensure that these entities operate on going concern basis and are able to meet their debts and liabilities as they fall due.

Other Litigations:

The Company is also subject to certain legal proceedings and claims, which have arisen in the ordinary course of business, including certain litigation for land parcels held for construction purposes, either through joint development arrangements or through outright purchases, the impact of which is not quantifiable. These cases are pending with various courts and are scheduled for hearings. After considering the circumstances and legal evaluation thereon, the management believes that these cases will not have an adverse effect on the financial statements.

Note: The Company does not expect any reimbursement in respect of the above contingent liabilities and it is not practicable to estimate the timing of the cash outflows, if any, in respect of aforesaid matters and it is not probable that an outflow of resources will be required to settle the above obligations/claims.

4. Related Party disclosures*

I. Names of related parties and related party relationship

(i) Related parties where control exists

Subsidiaries Brigade Hospitality Services Limited “BHSL”

Brigade Tetrarch Private Limited “BTPL”

Brigade Estates and Projects Private Limited “BEPPL”

Brigade Properties Private Limited “BPPL”

Brigade Infrastructure and Power Private Limited “BIPPL”

BCV Developers Private Limited [from January 21, 2015. Also, refer note 14(a)] “BDPL” WTC Trades and Projects Private Limited “WTPPL”

Orion Mall Management Company Limited “OMMCL”

Prosperity Hotel Ventures Limited “PHVL”

Celebration Catering and Events, LLP “CCEL”

Brigade (Gujarat) Projects Private Limited “BGPPL”

Brooke fields Real Estates and Projects Private Limited “BREPPL”

(formerly Brooke Bond Real Estates Private Limited)

Perungudi Real Estates Private Limited “PREPL”

(ii) Related parties under AS18 with whom transactions have taken place during the year:

Associates Tandem Allied Services Private Limited “TASPL”

Jointly controlled entities BCV Developers Private Limited [upto January 20, 2015. Also, refer note 14(a)] “BDPL”

BCV Estates Private Limited [upto May 25, 2015. Also, refer note 14(a)] “BEPL”

CV Properties (Bangalore) Private Limited [upto May 25, 2015. Also, refer note “CPPL” 14(a)]

Key management personnel Mr. M. R. Jaishankar, Chairman and Managing Director ( KMP ) Ms. Githa Shankar, Executive Director

Relatives of KMP Ms. Nirupa Shankar

Mr. M. K. Shivraj Harsha

Enterprises owned or Mysore Holdings Private Limited “MHPL”

significantly influenced by KMP Brigade Foundation Trust “BFT”

M. R. Jaishankar (HUF) “MRJ”

Indian Music Experience Trust “IMET”

Alta Collis LLC “ACLLC”

(iii) Additional related parties as per Companies Act, 2013 with whom transactions have taken place during the year KMP - Chief Financial Officer Mr. K. Suresh

- Company Secretary Mr. P. Om Prakash

Other Directors Mr. M. R. Shivram

Mr. M. R. Gurumurthy Mr. P. V. Maiya

Mr. P. M. Thampi (upto Nov 2, 2015)

Dr. Srinivasa Murthy Mr. Aroon Raman

Mr. Bijou Kurien (w.e.f January 31, 2015)

Mrs. Lakshmi Venkatachalam (w.e.f February 01, 2016)

Relatives of Other Directors Mr. M. G. Suraj

Mrs. Latha Shivram Relatives of KMP Mrs. I atha Suresh

5. Segment reporting

The primary segment reporting is determined to be business segments as the Company''s risks and rates of return are affected predominantly by differences in the products and services offered, with each segment representing a strategic business unit that offers different products and serves different markets. Secondary information is reported geographically.

The Company has identified Real Estate, Hospitality and Leasing as primary business segments of the Company.

The accounting policies consistently used in the preparation of the financial statements are also applied to record revenue and expenditure in individual segments. Assets, liabilities, revenues and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while other items, wherever allocable, are apportioned to the segments on an appropriate basis. Certain items are not specifically allocable to individual segments as the underlying services are used interchangeably. The Company therefore believes that it is not practical to provide segment disclosures relating to such items, and accordingly such items are separately disclosed as ‘unallocated''. Transfer prices between business segments are set at appropriate margins.

The Company operates in India and there is no other geographical segment. Hence, disclosure of secondary segment information is not required to be furnished.

6. Employee stock option plan

The Company provides share-based payment schemes to its employees. During the year ended March 31, 2016, an employee stock option plan (ESOP) was in existence. The relevant details of the scheme and the grant are as below.

The Company instituted an Employees Stock Option Scheme (‘ESOP 2011'') pursuant to the Board of Directors and Shareholders’ resolution dated May 4, 2011 and August 11, 2011, respectively. As per ESOP 2011, the Company granted 2,424,300 (till March 31, 2015: 2,424,300) options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The options under this grant would vest to the employees equally as 25% of the total grant every year at the end of first, second, third and fourth year from the date of the grant respectively, with an exercise period of five years from the date of respective vesting. The contractual life (comprising the vesting period and the exercise period) of options granted is 9 years from date of such grant. The other relevant terms of the grant are as below:

*Weighted Average Exercise Price

For options exercised during the period, the weighted average share price at the exercise date was Rs, 154.30 per share (March 31, 2015: Rs, 152.30 per share). The weighted average remaining contractual life for the stock options outstanding as at March 31, 2016 is 6.69 years (March 31, 2015: 7.66 years)

The Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs:

7. As per the transfer pricing rules prescribed under the Income-tax Act, 1961, the Company is examining the domestic and international transactions and documentation in respect thereof to ensure compliance with the said rules. The management does not anticipate any material adjustment with regard to the transactions involved.

8. The figures of previous year have been regrouped/reclassified, wherever necessary, to conform to the current year''s classification.


Mar 31, 2013

1. Company overview:

Brigade Enterprises Limited (BEL) was incorporated on 8th November, 1995 and is listed on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The Company is carrying on the business of real estate development primarily focussed on the development of residential, commercial and hospitality properties in South India. BEL has completed over 100 residential, commercial, retail and hospitality projects, covering over 20 million sft of developable area. The residential properties developed by BEL include integrated lifestyle enclaves and apartment buildings. The commercial properties developed by BEL include state of the art office spaces, software and IT Parks, SEZs, Malls with entertainment facilities, such as multi- plexes. The properties in the hospitality sector developed by BEL include serviced residences, hotels, resorts, spas, recreational clubs, convention centres in Bangalore and other parts of South India.

2.1. Provision for Warranty:

No estimation of liabilities for warranties has been done relating to sale of unit / property, since such costs, if any, are covered by a corresponding warranty from the Company''s contractors / vendors. This cost, if any, is recognised as and when incurred by the Company.

2.2 Segmental information:

The company has identified real estate development, hospitality services and lease rentals as primary business segments. Accordingly the segment revenue, results and capital employed attributable to the segments are reported under each reportable segment.

The company has its operations in India, which makes it a single geographical segment. Hence, providing geographical segment information is not applicable to the company for the current financial year.

2.3 Assets under operating lease:

a. The Company has given certain assets on operating lease. Details of assets given under operating lease are as under:

b. The Company has given on non-cancelable operating lease certain assets, the future minimum lease receivables in respect of which, as at 31st March 2013 are as follows:

c. The Company has taken various residential / commercial premises on cancelable / operating leases. These agreements are normally renewed on expiry.

d. The Company has taken, on non-cancelable operating lease, certain assets (land), the future minimum lease payments in respect of which, as at 31st March 2013 are as follows:

e. There are no exceptional / restrictive covenants in the lease agreements.

f. Contingent rent recognised in the Profit and Loss Account is Rs Nil.

g. The Company has constructed commercial space of 6,80,786 sft in one of its project called Brigade Summit. Till March 31, 2013, the Company has sold 4,03,978 sft (Previous year 45,080 sft) and recognised the income and proportionate cost in its Income Statement. The Company''s intention is to sell this stock over a period of two years and accordingly the same is grouped under Inventory. The Company has leased out 1,65,670 sft as on March 31, 2013 (Previous year 5,01,567 sft) to generate revenue out of unsold stock and recognised the rentals as revenue. Since the said property / units are held for sale, depreciation on this stock Rs 316 lakhs (previous year Rs 1,073 lakhs) has not been provided. Had depreciation on the same been provided, the profits would have been lower by Rs 316 lakhs (previous year Rs 1,073 lakhs).

2.4 Joint ventures

a) BCV Developers Private Limited ("BCV Developers")

In July 2008, the Company and certain Landowners formed a Joint Venture Company called BCV Devel- opers in Bangalore. BCV Developers is engaged in the development of an Integrated Township Project in Devanahalli, Bangalore. As at 31st March 2013, the Company and the Landowners each hold 50% of the equity in BCV Developers Pvt. Ltd.

b) BCV Estates Private Limited ("BCV Estates"):

In September 2010, the Company and certain Landowners formed a Joint Venture Company called BCV Estates in Bangalore. BCV Estates envisages the development of an Integrated Township Project in Devanahalli, Bangalore. As at 31st March 2013, the Company and the Landowners each hold 50% of the equity in BCV Estates.

2.5 During the year the Company has not made any political contribution. (Previous Year Nil).

2.6. Quantitative Details:

The Company is engaged in the business of real estate and property development. Such activity cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and the information as required under part II of Schedule VI of the Companies Act, 1956.

2.7 Disclosure under Section 22 of the Micro, Small and medium Enterprises Development Act, 2006.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

2.8 Details of Derivative instruments and unhedged foreign currency exposures:

The year-end foreign currency exposures that have not been hedged by derivative instrument or otherwise are given below:

The CIF value of imports and payments for the year ended 31 March 2013, is Rs 1,127 Lakhs (previous year 3,070 lakhs)

2.9 Balances of Debtors and Creditors and Loans and Advances are subject to reconciliation and Confir- mation.

2.10 The Company is examining the applicability of the Transfer pricing regulations with respect to its domestic transactions and the relevant documen- tation, if required, in respect thereof to ensure compliance with the said rules. The management does not anticipate any material adjustment which will have a material bearing on the accounts in this regard.

2.11 Previous Year Amounts:

The figures of the previous year have been regrouped, reclassified and restated wherever necessary.


Mar 31, 2012

1. Company overview:

Brigade Enterprises Limited (BEL) was incorporated on 8th November, 1995 and is listed on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The Company is carrying on the business of real estate development primarily focussed on the development of residential, commercial & hospitality properties in South India. BEL has completed over 100 residential, commercial, retail and hospitality projects, covering over 20 million sft of developable area. The residential properties developed by BEL include integrated lifestyle enclaves & apartment buildings. The commercial properties developed by BEL include state of the art office spaces, software & IT Parks, SEZs, Malls with entertainment facilities, such as multi- plexes. The properties in the hospitality sector developed by BEL include serviced residences, hotels, resorts, spas, recreational clubs & convention centres in Bangalore & other parts of South India. The Company has income from Real Estate development; Rentals from properties let out and income from Hospitality.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

CIF Value of imports and payments during the year ended 31st March 2012 is Rs 3,069.84 Lakhs (previous year Rs 4,636.36 lakhs).

2.1 Employee Benefit plans

a. Defined contribution plans:

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentange of the payroll costs to fund the benefits. The Company recognised Rs 45.02 lakhs (year ended 31st March 2011 Rs 38.29 lakhs) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Scheme.

b. Defined Benefit plan with Life Insurance Corporation of India:

The Company offers gratuity benefit to its employees. The following table sets out the funded status of the defined benefit scheme and the amount recognised in the financial statements.

In case of employees of Sheraton Bangalore at Brigade Gateway, provision for gratuity amounting to Rs 16.52 Lakhs is made based on actuarial valuation on the following assumptions.

2.2 Segment information:

The Company has identified real estate development and hospitality services, as primary business segments. Accordingly the segment revenue, results and capital employed attributable to segments are reported under each reportable segment. The geographical location of the projects represents the secondary segment of reporting.

c. The Company has taken various residential / commercial premises on cancelable / operating leases. These agreements are normally renewed on expiry.

d. The Company has taken, on non-cancelable operating lease, certain assets (land), the future minimum lease payments in respect of which, as at 31st March 2012 are as follows:

e. There are no exceptional / restrictive covenants in the lease agreements.

f. The Company has constructed commercial space of 6,80,786 sft in one of its project called Brigade Summit. Till March 31, 2012, the Company has sold 45,080 sft and recognised the income and proportionate cost in its Income Statement. The Company's intention is to sell this stock over a period of two years and accordingly the same is grouped under Inventory. The Company has leased out 5,01,567 sft as on March 31, 2012 to generate revenue out of unsold stock and recognised the rentals as revenue. Since the said property / units are held for sale, depreciation on this stock is not provided. If provided for, the same would have been Rs 10.73 crores (previous year Rs 1.65 crores)

g. Contingent rent recognised in the Profit and Loss Account is Rs Nil.30.9 Joint ventures

a) BCV Developers Private Limited ("BCV Developers") In July 2008, the Company and certain Landowners formed a Joint Venture Company called BCV Developers in Bangalore. BCV Developers envisages the development of an Integrated Township Project in Devanahalli, Bangalore. As at 31st March 2012, the Company and the Landowners each hold 50% of the equity in BCV Developers.

b) BCV Estates Private Limited ("BCV Estates")

In September 2010, the Company and certain Landowners formed a Joint Venture Company called BCV Estates in Bangalore. BCV Estates envisages the development of an Integrated Township Project in Devanahalli, Bangalore. As at 31st March 2012, the Company and the Landowners each hold 50% of the equity in BCV Estates.

2.3 Balances of debtors, creditors and loans and advances are subject to reconciliation and confirmation.

2.4. Previous year amounts

The figures of the previous year have been regrouped / reclassified and restated wherever necessary.


Mar 31, 2011

2.1. Share Capital:

Issued, Subscribed and Paid up capital of Rs 11,225.19 Lakhs and there is no change in the same during the year.

2.2. Secured Loans: 2.2.1 Corporation Bank:

a. Loan of Rs 10,497.59 Lakhs (31.03.2010: Rs 10,999.76 Lakhs) is secured by frst charge on pari-passu basis with Indian Bank on land, building and Multi Level Car Parking of the Brigade Gateway World Trade Center Bangalore, Subramanyanagar, Malleswaram West, Bangalore.

b. Overdraft loan of Rs 1,154.22 Lakhs as against the facility of Rs 2,000 Lakhs (31.03.2010: Rs 1,555.90 Lakhs) is secured by on the property of Augusta Club and EMG of Hulkul Brigade Centre to the extent of 17140 sft situated at No. 82 Lavelle Road, Ward No. 76, Bangalore (third party property), owned by director Mr M. R. Jaishankar and his family members. c. Loan of Rs 12,634.24 Lakhs (31.03.2010: Rs 8,500.27) is secured by EMG / frst charge on the residential buildings, viz., B Block (Altair at Brigade Gateway) and J, K, L Blocks at Brigade Metropolis, Bangalore.

Above loans have been further secured by the personal guarantee of directors Mr M .R. Jaishankar, Mr M. R. Shivram and Mr M. R. Krishna Kumar (to the extent of Rs 15,500.00 Lakhs only).

2.2.2 Indian Bank:

Loan of Rs 5,384.47 Lakhs (31.03.2010: Rs 6,127.27 Lakhs) is secured by frst charge on pari-passu basis with Corporation Bank on land, building and Multi Level Car Parking of the Brigade Gateway World Trade Center Bangalore, Subraman- yanagar, Malleswaram West, Bangalore and the personal guarantee of directors Mr M. R. Jaishankar and Mr M. R. Shivram.

2.2.3. State Bank of India:

Loan of Rs 14,473.88 Lakhs (31.03.2010: Rs 12,623.15 Lakhs) is secured by frst charge on pari- passu basis with State Bank of Mysore and State Bank of Patiala on land and buildings of the Sheraton Hotel and Orion Mall Projects at the Brigade Gateway, Subramanyanagar, Malleswaram West, Bangalore and the personal guarantee of directors Mr M. R. Jaishankar and Mr M. R. Shivram.

2.2.4 State Bank of Mysore:

Loan of Rs 2,838.37 Lakhs (31.03.2010: Rs 4,043.18 Lakhs) is secured by frst charge on pari-passu basis with State Bank of India and State Bank of Patiala on land and buildings of the Sheraton Hotel and Orion Mall Projects at the Brigade Gateway, Subramanyanagar, Malleswaram West, Bangalore and the personal guarantee of directors Mr M. R. Jaishankar and Mr M. R. Shivram.

2.2.5 State Bank of Patiala:

Loan of Rs 2,837.48 Lakhs (31.03.2010: Rs 4,043.23 Lakhs) is secured by frst charge on pari-passu basis with State Bank of Mysore and State Bank of India on land and buildings of the Sheraton Hotel and Orion Mall Projects at the Brigade Gateway, Subraman- yanagar, Malleswaram West, Bangalore. And the personal guarantee of directors Mr M. R. Jaishankar and Mr M. R. Shivram.

2.2.6 ICICI Bank Ltd:

Loan of Rs 575.00 Lakhs (31.03.2010: Rs 704.14 Lakhs) is secured by exclusive mortgage on land and building of the Homestead-2 at Jayanagar, Bangalore, and the personal guarantee of Mr M. R. Jaishankar and Mr M. R. Shivram.

2.2.7 Bank of Baroda:

a) Loan of Rs 2,924.72 Lakhs (31.03.2010: Rs 3,000 Lakhs) is secured by equitable mortgage of land and building of the Brigade International School @ Whitefeld, Dyavasandra Industrial Area Phase I, K. R. Puram Hobli, Bangalore.

b) Loan of Rs 8,995.53 Lakhs (31.03.2010: 5,000 Lakhs) is secured by exclusive frst charge of portions owned by the Company at Summit 1 & 2 and the adjoining 7-level MLCP building including car parking space at Brigade Metropolis, Mahadevapura, K. R. Puram Hobli, Bangalore.

2.2.8 Bank of India:

Loan of Rs 1,700 Lakhs (31.03.2010: 500 Lakhs) is secured by Equitable Mortgage of land and building of the Brigade International School @ Gateway Subramanyanagar, Malleswaram West, Bangalore.

2.2.9 Lakshmi Vilas Bank:

a) Loan of Rs 2,094.62 Lakhs (31.03.2010: Rs NIL) is secured by equitable mortgage / hypothecation of land and building of MLR Convention Centre and Woodrose Club situated at Brigade Millennium at Puttenahalli, J. P. Nagar, 7th Phase, Bangalore and Regent Club at Doddanekundi Industrial Area, II Phase, Mahadevapura Village, K. R. Puram Hobli, Bangalore and the Corporate Guarantee of M/s. Brigade Hospitality Services Ltd.

b) Loan of Rs 2,534.40 Lakhs (31.03.2010: NIL) is secured by equitable mortgage/ hypothecation of land and building of MLR Convention Centre and Woodrose Club situated at Brigade Millennium at Puttenahalli, JP Nagar, 7th Phase, Bangalore and Regent Club at Doddanekundi Industrial Area, II Phase, Mahadevapura Village K. R. Puram Hobli, Bangalore and the Corporate Guarantee of M/s. Brigade Hospitality Services Ltd.

2.2.10 Allahabad Bank:

a) Loan of Rs 3,036.92 Lakhs (31.03.2010: Rs NIL) is secured by Assignment of Lease rentals from: Cisco Systems India Pvt. Ltd, Encora Technologies Pvt. Ltd, Quintiles Data Processing Center (India) Pvt. Ltd and Quintiles Technologies (India) Pvt. Ltd with

Collateral security of exclusive equitable mortgage of plot of Land situated at Sy No. 6/1, 7/1, 6/2, 6/3, 6/4, 7/2, 7/3, 7/4,5 in Kurubarakunte Village, Kasaba Hobli, Devanahalli Taluk, Bangalore Rural Dist., which is under Joint Development Agreement between Mr M. R. Jaishankar and M/s. Brigade Enterprises Limited and the personal guarantee of director Mr M. R. Jaishankar. b) Loan of Rs 6,365.59 Lakhs (31.03.2010: NIL) is secured by equitable mortgage of land and building of Orion Mall Projects at Brigade Gateway, Subra- manyanagar, Malleswaram West, Bangalore and the personal guarantee of director Mr M. R. Jaishankar.

2.4. Warranty Costs:

The Company has not recognised warranty cost relating to sale of unit/property, since such costs, if any, are covered by a corresponding warranty from the Companys contractors/ vendors. This cost, if any, is recognised as and when incurred by the Company.

2.5. Gratuity Plan:

The following table spells out the status of the gratuity plan as required under AS-15 (revised).

2.6. Borrowing Cost

A sum of Rs 1,527.91 Lakhs (previous year Rs NIL) being borrowing cost incurred by the company in respect of assets / projects was Capitalised during the year. Sum of Rs 1,499.67 Lakhs (previous year Rs NIL) being borrowing cost incurred by the company in respect of assets / projects, carried forward as stock in trade. A sum of Rs 4422.41 Lakhs (previous year Rs 5137.08 Lakhs) being borrowing cost incurred by the company in respect of assets / projects, carried forward as capital work in progress.

2.7. Segmental Reporting

The Companys operations predominantly relate to construction and development, real estate development, and related activities of leasing/rental of units/properties. Accordingly, real estate development represents a single primary segment in the financials of the Company and the geographical location of the projects represents the secondary segment of reporting.

During the current year, the financials of the Company represent a single primary segment (real estate devel- opment). The Revenues from Hospitality being a new Primary segment does not exceed 10% of the overall revenues of the company. With respect to secondary segment, the Company has its projects in India, which makes it a single segment. Hence, providing of segmental information is not applicable to the Company for the current financial year.

2.8. Related Party Disclosure:

Related party disclosures, as required by AS-18, "Related Party Disclosures" are given below:

2.8.1 Relationships:

Holding Companies NIL

Subsidiary Companies

Brigade Hospitality Services Ltd

Brigade Tetrarch Pvt. Ltd

Brigade Estates and Projects Pvt. Ltd

Brigade Properties Pvt. Ltd.

Brigade Infrastructure & Power Pvt. Ltd

WTC Trades and Projects Pvt. Ltd

Associated Companies & Joint Venture

Tandem Allied Services Pvt. Ltd

BCV Developers Pvt. Ltd

BCV Estates Pvt. Ltd

Other related parties where common control exists

Mysore Holdings Pvt. Ltd

Brigade Foundation

Mr M. R. Jaishankar (HUF)

Key Managerial Personnel (KMP)

Mr M. R. Jaishankar,

Chairman and Managing Director

Ms Githa Shankar, Executive Director

Relatives of Key Managerial Personnel

Ms Nirupa Shankar (Daughter of KMP) Ms Pavitra Shankar (Daughter of KMP) Mr M. R. Shivram (Relative of KMP)

2.9.3. The Company has taken various residential / commercial premises on cancelable operating leases. These agreements are normally renewed on expiry.

2.9.5. Contingent rent recognised in the Profit and Loss Account is Rs Nil.

2.12. Joint Ventures: a) BCV Developers Private Limited ("BCV Developers") In July 2008, the Company and certain Landowners formed a Joint Venture Company called BCV Devel- opers in Bangalore. BCV Developers envisages the development of an Integrated Township Project in Devanahalli, Bangalore. As at March 31, 2011, the Company and the Landowners each hold 50% of the equity in BCV Developers.

The Companys proportionate share in assets, liabilities, income and expense of the Joint Venture is detailed below.

B) BCV Estates Private Limited ("BCV Estates")

In September 2010, the Company and certain Landowners formed a Joint Venture Company called "BCV Estates" in Bangalore. BCV Estates envisages the development of an Integrated Township Project in Devanahalli, Bangalore. As at March 31, 2011, the Company and the Landowners each hold 50% of the equity in BCV Estates.

2.13. Contingent Liabilities:

Capital Commitments and Contingent liabilities on account of:

(Rupees in Lakhs)

Particulars 31st March 2011 31st March 2010

Capital Commitments not 28,959.48 54,123.17 provided in the books

Towards Letter of Credits and 1,770.55 3,637.20 Bank Guarantees

Claims from government departments not acknowledged 153.14 164.95 as debts

Claims from government departments not acknowledged 1056.24 1305.76 as debts paid under protest and under appeal

2.16. As per the information available with the company, the principal amount payable to Micro, Small, and Medium Enterprises falling under the provisions of Micro, Small, and Medium Enterprises Development Act, 2006, Rs 15.70 Lakhs.

2.17. Balances of Debtors, Creditors and Loans and Advances are subject to reconciliation and confirmation.

2.18. Prior Period income of Rs 1190.73 Lakhs (Previous Year Rs 96.77 lakhs) is accounted in the books.

2.19. During the year the Company has made a political contribution of Rs 5 Lakhs (Previous Year Rs 20 Lakhs) to Bharatiya Janata Party.

2.20. Quantitative Details:

The Company is engaged in the business of real estate and property development. Such activity cannot be expressed in any generic unit. Hence, it is not possible to give the quanti- tative details of sales and the information as required under paragraphs 3, 4C, and 4D of part II of Schedule VI of the Companies Act, 1956.

CIF Value of imports and payments for the year ended March 31, 2011, is Rs 4636.36 Lakhs (Previous year 1064.96 Lakhs).

2.22. Previous Year Amounts:

The figures of the previous year have been regrouped, reclassified and restated wherever necessary.


Mar 31, 2010

1.1 Share Capital

Issued, Subscribed, and Paid up Capital of 11,22,51,940 (Previous year 11,22,51,940) Equity shares includes:

- 9,11,17,907 (Previous Year 9,11,17,907) Equity Shares of Rs.10/- each allotted as Fully Paid Bonus Shares by capitalization out of reserves.

- 16,22,628 (Previous Year 16,22,628) Equity Shares allotted as fully paid up on amalgamation of the erstwhile Brigade Developers Private Limited with the Company in the year 2001-02. This includes 9,000 Equity Shares allotted in lieu of Bonus Shares issued to the shareholders of the erstwhile Brigade Developers Private Limited.

- 68,400 (Previous Year 68,400) Equity Shares allotted as fully paid up on amalgamation of the erstwhile Brigade Investments Private Limited with the Company in the year 2001-02.

Initial Public Offer by issuing 1,80,45,205 Shares as fully paid up shares of Rs.10/- each at a Premium of Rs.380/- per Share during the year 2007-08.

1.2 Initial Public Offer Proceeds and Its Utilization:

Details of Deployment of IPO Proceeds as on March 31, 2010 are as Follows:

The above includes the applicable service tax on the fees.

1.3 Secured Loans from:

1.3.1 Corporation Bank:

a) Loan of Rs.3,142.33 Lakhs (31.03.2009: Rs.3,413.30 Lakhs) is secured by exclusive charge on land and building of the Hospital at Brigade Gateway Project, Subramanyanagar, Malleshwaram West, Bangalore.

b) Loan of Rs.10,999.76 Lakhs (31.03.2009: Rs.7,946.90 Lakhs) is secured by fi rst charge on pari-passu basis with Indian Bank on land, building and Multi Level Car Parking of the Brigade Gateway Northstar and Multi Level Car Parking Complex, Subramanyanagar, Malleshwaram West, Bangalore.

c) Overdraft loan of Rs.1,555.90 Lakhs as against the facility of Rs.2,000 Lakhs (31.03.2009: Rs.1,907.68 Lakhs) is secured by equitable mortgage of portions owned by the Company in Brigade Seshmahal, Bangalore, and equitable mortgage of Hulkul Brigade Centre, Bangalore, owned by director Mr. M.R. Jaishankar and his family members.

d) Loan of Rs.8,500.27 Lakhs (31.03.2009: Nil) is secured by EMG/fi rst charge on the residential buildings, viz., B Block (Altair at Brigade Gateway) and J, K, L Blocks at Brigade Metropolis, Bangalore.

e) Loan on Fixed Deposit is secured by Fixed Deposits held with the Corporation Bank amounting to Rs.300.00 Lakhs.

Above loans have been further secured by the personal guarantee of directors Mr. M.R. Jaishankar and Mr. M.R. Shivram.

1.4.1 Indian Bank:

Loan of Rs.6,127.27 Lakhs (31.03.2009: Rs.4,687.39 Lakhs) is secured by fi rst charge on pari-passu basis with Corporation Bank on land, building and Multi Level Car Parking of the Brigade Gateway Northstar and Multi Level Car Parking Complex, Subramanyanagar, Malleshwaram West, Bangalore.

1.4.2 State Bank of India:

Loan of Rs.12,623.15 Lakhs (31.03.2009: Rs.6,924.40 Lakhs) is secured by fi rst charge on pari-passu basis with State Bank of Mysore and State Bank of Patiala on land and buildings of the Sheraton Hotel and Orion Mall Projects at the Brigade Gateway, Subramanyanagar, Malleshwaram West, Bangalore and the personal guarantee of directors Mr. M.R. Jaishankar and Mr. M.R. Shivram.

1.4.3 State Bank of Mysore:

Loan of Rs.4,043.18 Lakhs (31.03.2009: Rs.2,123.30 Lakhs) is secured by fi rst charge on pari-passu basis with State Bank of India and State Bank of Patiala on land and buildings of the Sheraton Hotel and Orion Mall Projects at the Brigade Gateway, Subramanyanagar, Malleshwaram West, Bangalore.

1.4.4 State Bank of Patiala:

Loan of Rs.4,043.23 Lakhs (31.03.2009: Rs.2,124.90 Lakhs) is secured by fi rst charge on pari passu basis with State Bank of Mysore and State Bank of India on land and buildings of the Sheraton Hotel and Orion Mall Projects at the Brigade Gateway, Subramanyanagar, Malleshwaram West, Bangalore.

1.4.5 Bank of Maharashtra:

Loan of Rs.4,934.58 (31.03.2009: Rs.2,075.50 Lakhs) is secured by equitable mortgage of land and building of the Brigade Petunia Project at Banashankari 2nd Stage, Industrial Layout, Bangalore, and the personal guarantee of directors Mr. M.R. Jaishankar and Mr. M.R. Shivram.

1.4.6 ICICI Bank Ltd.:

Loan of Rs.704.14 Lakhs (31.03.2009: Rs.805.00 Lakhs) is secured by exclusive mortgage on land and building of the Homestead-2 at Jayanagar, Bangalore, and the personal guarantee of Mr. M.R. Jaishankar and Mr. M.R. Shivram.

1.4.7 Bank of Baroda:

a) Loan of Rs.3,000 Lakhs (31.03.2009: Rs.1,500.48 Lakhs) is secured by equitable mortgage of land and building of the Brigade International School @ Whitefi eld, Dyavasandra Industrial Area Phase I, K.R. Puram Hobli, Bangalore.

b) Loan of Rs.5,000 Lakhs (31.03.2009: Nil) is secured by exclusive fi rst charge of portions owned by the Company at Summit 1 & 2 and the adjoining 7-level MLCP building including car parking space at Brigade Metropolis, Mahadevapura, K.R. Puram Hobli, Bangalore.

1.4.8 Bank of India:

Loan of Rs.500 Lakhs (31.03.2009: NIL) is secured by Equitable Mortgage of land and building of the Brigade International School @ Brigade Gateway Subramanyanagar, Malleshwaram West, Bangalore.

1.5 Warranty Costs:

The Company has not recognized warranty cost relating to sale of unit/property, since such costs, if any, are covered by a corresponding warranty from the Company’s contractors/vendors. This cost, if any, is recognized as and when incurred by the Company.

1.6 Gratuity Plan:

The following table spells out the status of the gratuity plan as required under AS -15 (revised).

2.0 Segmental Reporting:

The Company’s operations predominantly relate to construction and development, real estate development, and related activities of leasing/rental of units/properties. Accordingly, real estate development represents a single primary segment in the fi nancials of the Company and the geographical location of the projects represents the secondary segment of reporting.

During the current year, the fi nancials of the Company represent a single primary segment (real estate development). With respect to secondary segment, the Company has its projects in India, which makes it a single segment. Hence, providing of segmental information is not applicable to the Company for the current fi nancial year.

2.1 Related Party Disclosures:

Related party disclosures, as required by AS-18, “Related Party Disclosures” are given below:

2.2 Assets under Operating Lease:

2.3 Deferred Taxation:

During the year, the Company has accounted for Rs.23.75 Lakhs (Previous Year Rs.0.26 Lakhs towards Deferred Tax Liability) towards Deferred Tax Asset and the same has been credited to Profi t and Loss Account of the Current Year.

2.4 Joint Ventures

(a) BCV Developers Private Limited (“BCV”)

In July 2008, the Company and certain Landowners formed a Joint Venture Company called BCV Developers Private Limited (“BCV”) in Bangalore. BCV envisages the development of an Integrated Township Project in Devanahalli, Bangalore. As at March 31, 2010, the Company and the Landowners each hold 50% of the equity in BCV. The Company’s proportionate share in assets, liabilities, income and expense of the Joint Venture is detailed below.

2.5 Contingent Liabilities:

Capital Commitments and Contingent liabilities on account of: (Rupees in Lakhs) Particulars 2009 -10 2008-09 Capital Commitments not 54,123.17 79,676.43 provided in the books Towards Letter of Credits 3,637.20 2,353.92 and Bank Guarantees Claims from government departments not 164.95 6,988.65 acknowledged as debts Claims from government departments not acknowledged as debts 1,305.76 0.00 but paid under protest and under appeal

2.6 As per the information available with the Company, the

principal amount payable to Micro, Small, and Medium Enterprises falling under the provisions of Micro, Small, and Medium Enterprises Development Act, 2006, Rs. 22.24 Lakhs.

2.7 Balances of Debtors and Creditors and Loans and Advances are subject to confi rmation.

2.8 Prior Period income of Rs. 96.77 Lakhs is accounted in the books.

During the year the Company has made a political contributiuon of Rs. 20,00,000 (Previous Year Nil) to Bharatiya Janata Party.

2.9 A sum of Rs. NIL (Previous Year Rs. 40.44 Lakhs), being borrowing cost incurred by the Company in respect of Assets/Projects, was capitalized during the year. A sum of Rs.5,137.08 Lakhs (Previous Year Rs.2,764.85 Lakhs), being borrowing cost incurred by the Company in respect of Assets/Projects under Construction is carried forward as Capital Work-in-progress.

2.10 Quantitative Details:

The Company is engaged in the business of real estate and property development. Such activity cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and the information as required under paragraphs 3, 4C, and 4D of part II of Schedule VI of the Companies Act, 1956.

2.11 Previous Year Amounts:

The figures of the previous year have been regrouped, reclassifi ed and restated wherever necessary.

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