Mar 31, 2022
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of section 52 of the Act.
Capital Reserve created on account of amalgamation
General reserve is a free reserve which is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of profit and loss.
Share option outstanding account is credited when the employee share based payments expenses are recognised on granting of the share options and in turn transferred to securities premium / equity share capital on exercise of the share options.
Capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium as per section 69 of the Act. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve. The reserve is utilized in accordance with the provisions of section 69 of the Act.
Retained earnings, or accumulated earnings, are the profits that have been reinvested in the business instead of being paid out in dividends. The number represents the total after-tax income that has been reinvested or retained over the life of the business.
The Company has only one class of equity shares having a face value of H10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders
Mortgage of all rights, interest and title of the borrower, mortgage of current & future receivables in respect of selected projects. Loan will be repayable in 10-30 equal monthly/quarterly instalments starting from the end of principal moratorium.
Rate of Interest: The Rate of Loans are between 8 % to 13%.
Secured by:
1) An exclusive charge by way of registered mortgage on all the rights, interest and title of borrower, in the respective project.
2) An exclusive charge on respective project land, all buildings, Structures and residential property.
3) Lien on unsold units of the project.
4) An exclusive charge by way of hypothecation of scheduled current & future receivables of the respective projects.
Repayment Terms: Loan will be repayable in 10-48 equal monthly instalments starting from the end of principal moratorium.
Rate of Interest: 8 to 13%
Rate of Interest: The Rate of Loans are between 8 % to 10%.
(a) Since company is not declared as wilful defaulter by any bank or financial institution or any other lender, the required disclosure as per Schedule III in this regards has not been given.
(b) Bank loans contain certain debt covenants relating to limitation on indebtedness, debt-equity ratio, net Borrowings to EBITDA ratio and debt service coverage ratio. The company has satisfied all debt covenants prescribed in the terms of bank loan.
(c) The company has not defaulted in repayment of any loans or it''s interest payable.
(d) Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall :
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; hence, the disclosure in this respect is not applicable (Refer section XVI of Schedule III notification dated 24 March 2021)
e) The company has been regular filing its quarterly returns or statement of current assets with banks and same are in agreement with books of accounts.
(1) Contract Balances
(a) Amounts received before the related performance obligation is satisfied are included in the balance sheet (Contract liability) as "Advances received from Customers" in note no. 29 - Other Current Liabilities. Amounts billed but not yet paid by the customer after giving possession/ deemed possession are included in the balance sheet under trade receivables in note no. 6 & note no. 13
(b) There were no significant changes in the composition of the contract liabilities and Trade receivable during the reporting period other than on account of periodic invoicing and revenue recognition.
(c) Amounts previously recorded as contract liabilities increased due to further milestone based invoices raised during the year and decreased due to revenue recognised during the year on completion of the construction.
(d) Amounts previously recorded as Trade receivables increased due to invoices raised during the year on account of possession/ deemed possession given to customers and decreased due to collections during the year.
(e) There are no contract assets outstanding at the end of the year.
Note 37 - Contingent liabilities (to the extent not provided for) |
(H In Lakhs) |
|
Particulars |
As at March 31, 2022 |
As at March 31, 2021 |
(1) Claims against the Company not acknowledged as debt 1 |
||
(a) Claims not acknowledged as debts represent cases filed in Civil Court and High Court. |
1,306 |
1,209 |
(b) Claims in respect of Income Tax matters (pending in Appeal)2 |
1,704 |
600 |
(c) Claims in respect of Indirect Tax matters (pending in Appeal)2 |
999 |
- |
(2) Corporate guarantees given issued by the Company on behalf of Subsidiaries3 |
24,500 |
24,500 |
Total |
28,509 |
26,309 |
The details of employee benefits as required under Ind AS 19 ''Employee Benefits'' is given below:
The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.
Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans to Provident fund is H264 lakhs (Previous Year - H224 lakhs) and Employee State Insurance Scheme is H2 lakhs (Previous Year - H4 lakhs).
Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.
a. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of the liabilities.
b. Expected rate of return of plan assets: This is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of obligations.
c. Salary escalation rate: The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factor.
d. Withdrawal rate: It is the expected employee turnover rate and should be based on the company''s past attrition experience and future withdrawal expectations.
Information reported to the chief operating decision maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods and services delivered or provided. The Company is engaged in development of real estate property, operating in India, which in the context of Indian Accounting Standard 108 ''Segment Information'' represents single reportable business segment.
The Group operates in one reportable geographical segment i.e. "Within India". Hence, no separate geographical segment wise disclosure is applicable as per the requirements of Ind AS 108 Operating Segments.
Where the Company is Lessee:
The Company has entered into operating lease arrangements for certain facilities and office premises having term or remaining life as at April 1, 2021 for less than one year. Expenses for operating leases included in the Statement of Profit and Loss for the year is H211 lakhs [Previous Year - H94 lakhs].
The Company has entered into operating lease arrangements for certain surplus facilities. The leases are cancellable.
Rental income from operating leases included in the statement of Profit and Loss for the year is H112 lakhs [Previous Year - H98 lakhs].
The Company has recognised the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. However, the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, thus the remaining amount has been recognised as gains on remeasurement of lease liabilities in statement of profit and loss for H63.24 lakhs.
Note 43 - Financial Instruments
I) Capital Management
The Company''s capital management objectives are:
- to ensure the company''s ability to continue as a going concern.
- to maximize the return to stakeholders through the optimization of the debt and equity balance.
The Company monitors capital on the basis of the carrying amount of equity as presented on the face of the statement of financial position. The Company sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Future specific market movements cannot be normally predicted with reasonable accuracy.
Currency risk: The Company does not have material foreign currency transactions. The company is not exposed to risk of change in foreign currency.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to the risk of changes in market interest rates as the Company does not have any long-term debt obligations with floating interest rates.
The Company is not exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.
The Company''s interest rate exposure is mainly related to debt obligations. The Company obtains debt to manage the liquidity and fund requirements for its day to day operations. The rate of interest is fixed and thus there is no risk of interest rates fluctuating.
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.
Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
The Company has identified the CSR projects, the unspent amount has been transferred to Special CSR A/C for the identified ongoing CSR projects for the FY 2021-22.
For FY 2021-22, the unspent amount was transferred to Special CSR Account for the identified project on April 28 2022 and the Company is spending for the identified onging projects.
(a) Animal welfare
(b) Promotion of Education
(c) Healthcare
During the year a sum of H12 Lakhs has been given to Anisha Education Society, which is a Related Party.
There is no liability incurred by entering into a contractual obligation for CSR
Note 49 - Employee stock option scheme
Employee stock option scheme (ESOS 2014)
The Company has instituted ''Employee Stock Option Scheme 2014'' (ESOS 2014) for eligible employees of the Company. The vesting pattern of the schemes has been provided below. The options can be exercised over a period of 1 to 4 years from the date of grant. Each option carries with it the right to purchase one equity share of the Company at the exercise price determined by the nomination and remuneration committee at the time of grant.
The options under this scheme vest over a period of 1 to 4 years from the date of the grant. Upon vesting, employees have 4 to 6 years (as per plan) to exercise the options.
The exercise period shall commence from the date of vesting of option and expire not later than 12 (Twelve) months from the vesting date of option. Options not exercised during any particular exercise period, can be carried forward to the subsequent exercise period(s), provided however that all the options, have to be exercised within a period of 2 years from the date of the vesting period in respect of the final lot, after which any unexercised Options will lapse.
The employee stock option cost for the Employee Stock Option Scheme 2014 has been computed by reference to the fair value of share options granted and amortized over each vesting period. For the year ended March 31, 2022 the Company has accounted for employee stock option cost (equity settled) amounting to H19 lakhs (March 31, 2021: H252 lakhs).
The amount of the expense is based on the fair value of the employee stock options and is calculated using a Binomial Lattice valuation model. A lattice model produces estimates of fair value based on assumed changes in share prices over successive periods of time. The Binomial Lattice model allows for at least two possible price movements in each subsequent time period.
The Hull-White model (HW-model) is an extension of the Binomial Lattice model. It models the early exercise behaviour of employees by assuming that exercise takes place whenever the stock price reaches a certain multiple M of the strike price X when the option has vested. The Black and Scholes valuation model has been used for computing the weighted average fair value.
1 Increase in Cash loss in current year as compare to previous year has resulted into decrease in the ratio.
2 Increase in loss in current year as compare to previous year has resulted into decrease in the ratio.
3 Decrease in COGS in current year compared to previous year has resulted in decrease in the ratio.
4 Increase in purchases in current year compared to previous year has resulted in increase in ratio.
5 Increase in loss in current year as compare to previous year has resulted into decrease in the ratio.
In the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof.
As at March 31, 2022, Contingent liability majorly represent demands arising on completion of assessment proceedings under the Income-tax Act, 1961 and other indirect tax act.
These claims are on account of various issues of disallowances, or addition in liability by tax liabilities. These matters are pending before various appellate authorities and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company''s financial position and results of operations.
The Company does not expect any outflow of resources in respect of the Guarantees issued.
Mar 31, 2018
1. Corporate Information
Kolte-Patil Developers Limited (âthe Companyâ) is a Company registered under the Companies Act, 1956. It was incorporated on 25th November 1991. The Company is primarily engaged in business of construction of residential, commercial; IT Parks along with renting of immovable properties and providing project management services for managing and developing real estate projects.
2A. New Accounting Standards, Amendments to Existing Standards, Annual Improvements and Interpretations Effective Subsequent to March .31, 2018:
Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:
On March .28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The Company is in process of evaluating the impact on the financial statements.
Ind AS 115- Revenue from Contract with Customers:
On March .28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers. The standard permits two possible methods of transition:
- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors
- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach). The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018. The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March .31, 2018 will not be retrospectively adjusted. The Company is in process of evaluating the impact on the financial statements.
3A: Terms, rights & restrictions attached to equity shares
The Company has only one class of equity shares having a face value of RS.10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.
3B : Information regarding issue of shares in the last five years:
i) The Company has not issued any shares without payment being received in cash.
ii) The Company has not issued any bonus shares.
iii) The Company has not undertaken any buy-back of shares.
3C: The Company declares and pays dividend in Indian Rupees. The shareholders at the Annual General Meeting held on September 28, 2017 approved a dividend of RS.1.60/- per share for the year ended March .31, 2017 which was subsequently paid during the year ended March .31, 2018. The amount was recognised as distributions to equity shareholders during the year ended March .31, 2018 and the total appropriation was RS.1,212 Lakhs.
A final dividend of RS.2/- per share has been recommended by the Board of Directors in their meeting held on May 23, 2018 for the financial year 2017-18 subject to the approval of shareholders in the ensuing Annual General Meeting.
3D : Refer Note 46 for details relating to stock options
Security:
Secured by Mortgage over land and Project Assets, charge on escrow account and all Cash flows and Receivables pertaining to the Project.
(ii) Term Loan from Banks are secured by :
Mortgage of all rights, interest and title of the borrower, mortgage of current & future receivables in respect of selected projects. Loan will be repayable in 10-30 equal monthly/quarterly instalments starting from the end of principal moratorium.
(iii) Term Loan from others :
Secured by:Exclusive charge by way of RMOE on the projects land, hypothecation of scheduled receivable (both sold and unsold) of Projects, all insurance proceeds both present and future.An Exclusive charge by way of hypothecation on Escrow Account, all monies credited / deposited therein and all investments in respect thereof.Repayment Terms : monthly/quarterly instalments.
(iv) Finance Lease Obligation : March .31, 2018 - RS.243 Lakhs ( March .31, 2017 - RS.181 lakhs)
Security : Finance lease obligations are secured by the underlying assets for which loans are obtained Rate of Interest : The Rate of Loans are between 10 % to 18%
*in the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof.
**The Company does not expect any outflow of resources in respect of the Guarantees issued.
Note 4 - Employee Benefits
The details of employee benefits as required under Ind AS 19 âEmployee Benefitsâ is given below
(A) Defined Contribution Plan:
The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.
Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans to Provident fund is RS.199 lakhs (Previous Year - RS.211 lakhs) and Employee State Insurance Scheme is RS.10 lakhs (Previous Year - RS.5 lakhs).
(B) Defined benefit plan:
Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.
Disclosure as required under Ind AS 19 on âEmployee Benefitsâ in respect of defined benefit plan is as under:
a. The discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.
b. Expected Rate of Return of Plan Assets: This is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of obligations.
c. Salary Escalation Rate: The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.
d. Withdrawal Rate: It is the expected employee turnover rate and should be based on the companyâs past attrition experience and future withdrawal expectations.
The sensitivity results above determine their individual impact on Planâs end of year Defined Benefit Obligation. In reality, the plan is subject to multiple external experience items which may move the defined Benefit Obligation in similar or opposite directions, while the Planâs sensitivity to such changes can vary over time.
xii. Employee benefit plans
The plans typically expose the company to the actuarial risks such as: investments risk, interest risks, longevity risk and salary risk
No other post-retirement benefits are provided to these employees.
In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March .31, 2018 by Ranadey Professional Services, Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
Note 5 - Segment Information
The Company is engaged in Real Estate. The operations of the company do not qualify for reporting as business segments as per the criteria set out under Indian Accounting Standard 108 (IND AS-108) on âOperating Segmentsâ. The Company is operating in India hence there is no reportable geographic segment. Accordingly no disclosure is required under IND AS - 108.
Note 6 - Leases
1. Operating leases:
Where the Company is Lessee:
The Company has entered into operating lease arrangements for certain facilities and office premises. The leases range over a period of 2 years to 5 years and may be renewed for a further period based on mutual agreement of the parties.
Expenses for operating leases included in the Statement of Profit and Loss for the year is RS.254 lakhs [Previous Year - RS.385 Lakhs].
The future minimum lease payments under non-cancellable operating lease
Where the Company is Lessor:
The Company has entered into operating lease arrangements for certain surplus facilities. The leases are cancellable.
Rental income from operating leases included in the Statement of Profit and Loss for the year is RS.112 lakhs [Previous Year - RS.116 lakhs].
2. Finance Leases:
The Company has taken vehicles on finance lease. The future lease rent payable on such vehicles taken on finance lease are as follows:
Note 7 - Financial Instruments
I) Capital Management
The companyâs capital management objectives are:
- to ensure the companyâs ability to continue as a going concern.
- to maximize the return to stakeholders through the optimization of the debt and equity balance.
The company monitors capital on the basis of the carrying amount of equity as presented on the face of the statement of financial position. The company sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities. The company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
a) Gearing Ratio:
The Gearing ratio at the end of the reporting period are as follows:
*Debt is defined as long-term and short-term borrowings including interest accrued on borrowings
b) The carrying value of financial instruments by categories as of March .31, 2018 is as follows:
II) Financial risk management objectives
In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
III) Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Future specific market movements cannot be normally predicted with reasonable accuracy.
Currency risk: The Company does not have material foreign currency transactions. The company is not exposed to risk of change in foreign currency.
Interest rate risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to the risk of changes in market interest rates as the Company does not have any long-term debt obligations with floating interest rates.
Other price risk:
The Company is not exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.
IV) Interest risk management
The Companyâs interest rate exposure is mainly related to debt obligations. The Company obtains debt to manage the liquidity and fund requirements for its day to day operations. The rate of interest is fixed and thus there is no risk of interest rates fluctuating.
V) Credit risk management
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.
Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.
VI) Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
The table below provides details regarding the contractual maturities of financial liabilities, including estimated interest payments as at March .31, 2018:
VII) Fair value disclosures
Level 1 - Quoted prices (Unadjusted) in active markets for identical assets & liabilities.
Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset & liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (Unobservable inputs). The following table summarizes financial assets and liabilities measured at fair value on a recurring basis
Note 8 - Related Party Transactions:
A. List of Related Parties
Related Parties are classified as:
i. Subsidiaries
1. Kolte-Patil Real Estate Private Limited
2. Tuscan Real Estate Private Limited
3. Bellflower Properties Private Limited
4. Snowflower Properties Private Limited
5. Sylvan Acres Realty Private Limited
6. Regenesis Facility Management Company Private Limited
7. Kolte-Patil Redevelopment Private Limited (Formerly known as PNP Retail Private Limited)
8. PNP Agrotech Private Limited
9. Kolte-Patil I-Ven Townships (Pune) Limited
10. Ankit Enterprises
11. Kolte-Patil Homes
12. KP-Rachana Real Estate LLP
13. Sanjivani Integrated Township LLP (upto December 05tRs.2017)
14. Bouvardia Developers LLP
15. KP-SK Project Management LLP
16. Carnation Landmarks LLP
17. Regenesis Project Management LLP
ii. Key Management Personnel and their relatives
1. Rajesh Patil
2. Naresh Patil
3. Milind Kolte
4. Sunita Kolte
5. Sunita Patil
6. Vandana Patil
7. Gopal Sarda
8. Atul Bohra
9. Vinod Patil
10. Nirmal Kolte
11. Yashvardhan Patil
12. Harshavardhan Patil
13. Sudhir Kolte
14. Ankita Patil
iii. Entities over which Key Management Personnel and their relatives are able to exercise significant influence
1. Anisha Education Society
Note 9 - Details of CSR expenditure
a) Gross amount required to be spend by the Company during the year is RS.127 lakhs (Previous Year RS.76 lakhs).
b) Amount spend during the year RS.32 Lakhs (Previous year RS.109 Lakhs).
Note 10 - Employee stock option scheme Employee stock option scheme (ESOS 2014)
The Company has instituted âEmployee Stock Option Scheme 2014â (ESOS 2014) for eligible employees of the Company. The vesting pattern of the schemes has been provided below. The options can be exercised over a period of 1 to 3 years from the date of grant. Each option carries with it the right to purchase one equity share of the Company at the exercise price determined by the Nomination and remuneration Committee at the time of grant.
The vesting period of the above mentioned ESOS Schemes is as follows -
The options under this Scheme vest over a period of 1 to 3 years from the date of the grant. Upon vesting, employees have 3 to 5 years (as per plan) to exercise the options.
The exercise period shall commence from the date of vesting of option and expire not later than 12 (Twelve) months from the vesting date of option. Options not exercised during any particular exercise period, can be carried forward to the subsequent exercise period(s), provided however that all the Options, have to be exercised within a period of 2 years from the date of the vesting period in respect of the final lot, after which any unexercised Options will lapse.
iii. The employee stock option cost for the Employee Stock Option Scheme 2014 has been computed by reference to the fair value of share options granted and amortized over each vesting period. For the year ended March .31, 2018 the Company has accounted for employee stock Option cost (equity settled) amounting to RS.3 lakhs (March .31, 2017: RS.10 lakhs).
iv. The fair value of each option is estimated on the date of grant based on the following assumptions (on weighted average basis):
The amount of the expense is based on the fair value of the employee stock options and is calculated using a Binomial Lattice valuation model. A lattice model produces estimates of fair value based on assumed changes in share prices over successive periods of time. The Binomial Lattice model allows for at least two possible price movements in each subsequent time period.
The Hull-White model (HW-model) is an extension of the Binomial Lattice model. It models the early exercise behavior of employees by assuming that exercise takes place whenever the stock price reaches a certain multiple M of the strike price X when the option has vested. The Black and Scholes valuation model has been used for computing the weighted average fair value.
Note 11 - The Company seized as a partner From Sanjivani Integrated Township LLP with effect from December 5, 2017.
Note 12 - The Board of Directors of the Company in their meeting held on December 27, 2017 has approved the Scheme of Merger by absorption under applicable provisions of the Companies Act, 2013 of Bellflower Properties Limited (wholly owned subsidiaries of the Company) with the Company. The Appointed date of the Scheme is April 1, 2017. Further, both the companies have filed the scheme of merger before the National Company Law Tribunal Mumbai Bench on April 25, 2018 and waiting for their approval.
As the scheme of merger not consummated, effect of the said scheme is not given in these financial statements.
Note 13 - The financial statements for the year ended March .31, 2018 were approved by the Board of Directors and authorized for issue on May 23, 2018.
Mar 31, 2017
1. Corporate Information
Kolte-Patil Developers Limited (âthe Companyâ) is a Company registered under the Companies Act, 1956. It was incorporated on 25 November 1991. The Company is primarily engaged in business of construction of residential, commercial; IT Parks along with renting of immovable properties and providing project management services for managing and developing real estate projects.
2.1 New Accounting Standards, Amendments to Existing Standards, Annual Improvements and Interpretations Effective Subsequent to 31 March 2017 :
Share based payments
Ind AS 102 (Share based payments) was issued in February 2015. MCA on 17 March 2017 notified the Companies (Indian Accounting Standards) (Amendment) Rules, 2017, amending Ind AS 102.
The amendments made to Ind AS 102 covers Measurement of cash-settled share-based payments, Classification of share-based payments settled net of tax withholdings and accounting for a modification of a share-based payment from cash-settled to equity-settled.
The amendments are to be applied prospectively for annual periods beginning on or after 1 April 2017. Earlier application is not permitted. The Company does not expect the adoption of these new and amended standards, annual improvements and interpretations to have a significant impact on its financial statements.
Statement of Cash flows
Ind AS 7 (Statement of Cash Flows) was issued in February 2015. MCA on 17 March 2017 notified the Companies (Indian Accounting Standards) (Amendment) Rules, 2017, amending Ind AS 7.
The amendments made to Ind AS 7 require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and noncash changes.
The amendments are to be applied prospectively for annual periods beginning on or after 1 April 2017. Earlier application is not permitted. When the amendments are first applied, entities are not required to present comparative information for earlier periods. The Company does not expect the adoption of these new and amended standards, annual improvements and interpretations to have a significant impact on its financial statements.
Notes
1 Refer note 29 for cost of inventories recognised as an expense during the period.
2 Nil amount of inventories were written down to net realisable value during the current and comparable periods. Similarly, Nil amount of reversal of write down was accounted during the current and comparable periods
3 Mode of valuation of inventories is stated in Note 2
Note 3A: Terms, rights & restrictions attached to equity shares
The Company has only one class of equity shares having a face value of RS.10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Companyâs residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.
Note 3BD : Information regarding issue of shares in the last five years:
i) The Company has not issued any shares without payment being received in cash.
ii) The Company has not issued any bonus shares.
iii) The Company has not undertaken any buy-back of shares.
Note 17E:
The Company declares and pays dividend in Indian Rupees. The shareholders at the Annual General Meeting held on 17 September 2016 approved a dividend of RS.1.50 per share for the year ended 31 March 2016 which was subsequently paid during the year ended 31 March 2017. The amount was recognised as distributions to equity shareholders during the year ended 31 March 2017 and the total appropriation was RS.1,148 Lakhs including dividend distribution tax. A final dividend of RS.1.60 per share has been recommended by the Board of Directors in their meeting held on 30 May 2017 for the financial year 2016-17 subject to the approval of shareholders in the ensuing Annual General Meeting. The proposed dividend of RS.1,212 lakhs and dividend distribution tax theron, of RS.247 lakhs have not been recognised as liablities.
Note 3C:
Refer Note 49 for details relating to stock options Security:
The NCDs shall be secured by an exclusive first ranking charge in favour of the Debenture Trustee (on behalf of the NCD holders) over:
1) Charge by way of Mortgage over land and Project Assets of Jazz 2 located at Pimple Nilakh to which clear and marketable title is held by Issuer.
2) Charge on all Cash flows and Receivables pertaining to the Project (âReceivablesâ).
3) Charge on the Escrow Account for the Project.
4) Minimum asset cover of 1.50 times the total principal amount of the NCDs outstanding and aggregate interest accrued but not paid on the NCDs as on the relevant date to be maintained , throughout the tenor of the NCDsâ
Repayment Terms :
The non-convertible secured Debentures are redeemable at the end of 3 years from the Deemed Date of Allotment. The interest is to be paid out quarterly as per the Debenture Information Memorandum.â
The Company has created Debenture Redemption Reserve of RS.1,750 lakhs pursuant to the Section 71(4) of the Companies Act, 2013
Security:
The NCDs shall be secured by an exclusive first ranking charge in favour of the Debenture Trustee (on behalf of the NCD holders) over:
1) Charge by way of Mortgage over land and Project Assets of Atria located at Pimple Nilakh to which clear and marketable title is held by the Issuer.
2) Charge by way of Mortgage over land and Project Assets of Project Botanica, New Project and Project Umang Premier located at Wagholi, Taluka Haveli, District to which clear and marketable title is held by Issuer.
3) Charge on all Cash flows and Receivables pertaining to the Project (âReceivablesâ).
4) Charge on the Escrow Account for the Project.
Repayment Terms:
Repayment to be made in equal monthly tranches of INR. RS.12,00,00,000 commencing from June 2017 to March 2018. The interest is to be made monthly from October 2016 to May 2017.
The Company has created Debenture Redemption Reserve of RS.3,000 lakhs pursuant to the Section 71(4) of the Companies Act, 2013.
Details of terms of repayment and securities provided in respect of secured term loans are as under:
ii) Term Loan from Banks :
a) IDBI Loan Against property (Sanctioned RS.1,000 lakhs): 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 1 2015 -RS.824 lakhs)
Primary Security: Office No 101-B,102,105D,106,107AB,112C,201-203-204-205-206-207-208,First & Second Floor, City Point S.no 347B, 347A, Hissa No 3C/1A/1, 348A hissa no 1/1/, 348A hissa no 1/2A, Final Plot no 188 CST No 14(part) 14/1, 14/2 Dhole Patil Road Pune 01.
Collateral Security: Extension of Regd. Mortgage of Boat club road land, Final plot no 188, S no. 347/B, 347/A, 3C/1A/1, 348A/1/1 and 348A/1/2A, Total area 113883 sq. ft. at Pune Rate of Interest : BBR Plus 525 bps (i.e.effective 15.50% p.a.)
During the F.Y. 2015- 16 , the term loan has been repaid.
b) IDBI Project Term Loan - 24K Glitterati (Sanctioned RS.2,500 lakhs): 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015 - RS.2,226 lakhs)
Primary Security: Mortgage of land at survey no 14 Hissa No 14/3/1/1, 14/4/1, 14/5/12 to 4 admeasuring 34400 sq. mtr. located at Pimple Nilakh in Pune.
Collateral Security: 1) Extension of Regd. mortgage of boat club Road Land, Final Plot no 188 S.no 347B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A total area 113883 Sq Ft. at Pune 2)Office No.101B, 102, 105D, 106, 107AB, 112C, 201-202-203-204-205-206-207-208, First and second floors, âCity PointâS. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A Hissa No. 1/1, 348A Hissa No. 1/2A, final plot no.188 CST No. 14(part) 14/1, 14/2 Dhole Patil Road Pune -01 The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the Company.
Rate of Interest : BBR Plus 325 bps (effective 13.50% p.a.)
During the F.Y. 2015-16 , the term loan has been repaid.
c) Vijaya Bank Construction Finance - City Bay (Sanctioned RS.2,000 lakhs): 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015- RS.1,929 lakhs)
Primary Security : Exclusive Charge by way of equitable Mortgage on proposed sixth, seventh, eighth and ninth floor admeasuring 318,421 sq. ft. of proposed Building, City Bay.
Rate of Interest : Base Rate 2.75% 0.25% p.a.(floating) (i.e. 13.45% p.a. at present)
During the F.Y. 2015-16 , the term loan has been paid.
d) State Bank of India Projects Term Loan - Ragga - Bangalore (Sanctioned RS.4,300 lakhs): 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015 - RS.1,850 lakhs)
Primary Security: Land admeasuring 6 acres 29 Guntas i.e. 292,941 sq. ft. for phase I and II and buildings to be constructed at S.no 33, Kannur Village, Bidarahalli Hobli Nr Yelakhanka, Bangalore East Taluka.
Collateral Security : land admeasuring 5,400 sq. ft. and house property (basement g 2 admeasuring 9200 sq. ft. built up) at No 978 (amalgamation of 978 & 979) HAL 2nd stage indiranagar Bangalore. Prime: Negative lien on unsold flats.
The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Vandana Patil, Directors of the Company.
Rate of Interest : Base Rate 9.75% Spread 3.75% (i.e. 13.50%)
During the F.Y. 2015-16 , the term loan has been repaid.
e) Axis Bank Project term Loan (Sanctioned RS.1,000 lakhs) : 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015 -RS.287 Lakhs)
Primary Security: Exclusive registered mortgage of land Development agreement located at S no. 76 to 88 (P) and 91(P) admeasuring 74321.81 Sqmtr located at Bhavdhan Pune (including proposed building constructed thereon and other assets associated to the project.
Collateral Security: All receivable from the project including sale proceed, Security deposit, any other payment and termination repayment should be routed through a designated Account in Axis Bank Limited. The bank to have lien on the account.
Rate of Interest : Basic rates Plus 3.00% i.e. currently 13.25% P.A.payble at monthly interval.
During the F.Y. 2015-16 , the term loan has been repaid.
f) Karur vaishya bank Project term Loan (Sanctioned RS.5,000 lakhs) : 31 March 2017 - RS.1,998 Lakhs (31 March 2016 -RS.1,987 Lakhs) (1 April 2015 - Nil)
Primary Security : Fresh E M Charge on Developers Share of Land and Property under development at Sino. 71 of Horamavu Agara Village, KR Puram, Hobli, Bangalore East Taluk admeasuring 7 acres 39 guntas valued at RS.135.00 Crores as per B.Mâs estimate.
Collateral Security : Fresh E.M Charge on Vacant Land situated at No. 53/1, Next to Jhon Flower, Koramangala 3rd
Block, Koramangala, Bangalore admeasuring 58500 Sq.Ft. standing in the name of Ankit Enterprises (Group concern) valued RS.76.00 Crores as per B.M Estimates.
Rate of Interest : Basic rates Plus 2.90% i.e. currently 12.80% PA.payble at monthly interval. (Effective Rate of Interest : 13.87%)
Repayment Terms : Repayment started from February 28, 2018 . 5 Quarterly equal instalments. Holiday Period upto November 2017. Door to Door Tenure 36 months.
g) State Bank of India (Sanctioned RS.15,000 lakhs): 31 March 2017 - NIL (31 March 2016 - RS.11,467 lakhs) (1 April 2015 - RS.343 lakhs)
Primary security :
1. All pieces and parcel of Land Bering Survey Nos. 1) 131/1(part)-00RS.05 Acres, 2) 131/5-(part)-00H 49.69 Acres,
3)131/2 3 4 6/1 (part)-00H 1640 Acres, 4)131/2 3 4 6/2 (part)-1H 63.40 Acres, 5)131/2 3 4 6/3 (part)-1H 53.35 Acres, 6)131/2 3 4 6/4 (part)-00H 16.67 Acres, 7)131/2 3 4 6/5 (part)-00H 27.80 Acres , 8) 131/2 3 4 6/6(part)-00H 49.40 Acres, 9) 131/7/1 (part)-00H 46.08 Acres which are totally & collectively ad measuring 03 H 27.79 Acres, i.e. 32779 Sq. Meters at village Wakad, within the limits of Pimpri Chinchwad Municipal Corporation and within the jurisdiction of Taluka Mulshi, District.
2. Present and future goods, book debts and all other movable assets.
3. Offices no. 101B, 102, 106, 107AB, 112C, 201 to 207 at City Point, Dhole Patil Road, Pune and Open land admeasuring 29,593 sq. mtrs. Bearing S. No. 347-B, 347-A/3C/1A/1, 348A/1/1 and 348A/1/2A and also bearing final plot no. 188, at Boat Club road and 6th, 7th, 8th Floors of City Bay, Dhole Patil Road, Pune.â
Rate of Interest : 11.30% p.a. with monthly rest.
Repayment Terms:
The Fund based loan amount of RS.15,000 Lakhs sanctioned is available for a period of 35 months with annual review when it may be cancelled depending upon the conduct and utilization of advances. The repayment will start from March 2016.
During the year , the term loan has been repaid.
h) IndusInd Bank Ltd. (Sanctioned RS.17,500 lakhs): 31 March 2017 - RS.9,695 Lakhs (31 March 2016 - Nil) (1 April 2015 - Nil)
Primary Security : Mortgage on all the rights, interest and title of the borrower in respect of Project 1, Project 2 and Project 3. Hypothecation on all buildings & structures & project sold & unsold receivables (including lease rentals, sale proceeds, lease deposit, common area charges, parking charges, all refinancing proceeds received by the Borrower, any other receipts, etc.) for the project 1, Project 2 and Project 3. (Project 1: Project World Residences (Giga) located at Viman Nagar, Pune having residential saleable area of 3,57,311 sq. ft. and commercial area of 48,656 sq. ft. Project 2: Project Western Avenue located at Wakad Pune having residential saleable area of 8,81,954 sq. ft. and commercial saleable area of 44,458 sq. ft. and Project: 3: Project Atria located at Pimple Nilakh Pune having saleable 1,62,061 sq. ft.
Rate of Interest : 10.25% p.a. payable at monthly rests (linked to 1 year MCLR) (Effective Rate of Interest : 11.66%) Repayment Terms : Loan will be repayable in 10 equal quarterly instalments starting from the end of 33rd month from date of 1st disbursement. OD repayment will start post repayment of term loan of RS.100 crores .
i) IDBI Project Term loan - (Sanctioned RS.3,000 lakhs): 31 March 2017 - Nil (31 March 2016 - RS.2,752) (1 April 2015 -Nil)
Primary Security: Registered Mortgage of land at Gat No 677, 687, 689, and 690 to 710 Excluding land in which phase - I has been executed at wagholi Tal. Haveli Dist. Pune. Exclusive charge and escrow of project receivable of Phase- II Collateral: Nil
Rate of interest: Current applicable interest rate is Basic rate 375bps (i.e. 13.50%) which is payable at end of each month
Repayment Terms:
The final disbursement of the above loan was completed in the month of March, 2015. As per the terms of the loan, the repayment of principle amount is to be started after 1 October 2016 after completion of the moratorium period of 18 months.
During the year, the term loan has been repaid.
iii) Term Loan from others :
a) Capital First Limited - (Sanctioned RS.7,500 lakhs): 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015 - RS.3,071 Lakhs)
Primary Security : Exclusive Charge on the escrow on all the receivable credited to KPDL after payment is made to the respective construction finance lender from Glitterati Project. Exclusive charge by way of Mortgage of all unsold projects assets and exclusive mortgage on land, hypothecation over all the project receivable and inventory of Giga residency Projects. Escrow of all projects cash flow accruing from sale of projects, including but not limited to deposits/ rentals/sale proceeds/ any other receipts of any nature in such form and manner as may be required by the lender from the projects mentioned above till our facility is fully repaid.
Rate of Interest : 18% p.a. payable quarterly fixed for entire term of the facility During the F.Y. 2015-16 , the term loan has been paid.
b) Aditya Birla Finance Limited - (Sanctioned RS.4,500 lakhs): 31 March 2017 - RS.2,314 Lakhs (31 March 2016 - RS.1,410 Lakhs) (1 April 2015 - Nil)
Primary Security : An exclusive charge by way of RMOE on the projects land bearing S. No. 33, admeasuring 205,821 square feet situated at Kannur Village, Bidarahalli Hobli, Bangalore east along with building and structures both, present and future.
Exclusive Charge by way of RMOE on the Residential Property bearing survey no. 978 along with the structures situated at HAL II Stage Bangalore, Bangalore Mahanagar Palike Ward No 72 totally measuring east to west 90 ft. and north to south 60 all measuring 5400 sq. ft., comprising of basement Ground floor plus two floors with a built up area of 9247 sq. ft., together with all rights.
An Exclusive charge by way of hypothecation of scheduled receivable (both sold and unsold) of Projects Raaga Phase I and II under the document entered into with customer by borrower, all insurance proceeds both present and future.
An Exclusive charge by way of hypothecation on Escrow Account I and Escrow Account ll, all monies credited / deposited therein and all investments in respect thereof.
Rate of Interest : 13.75% p.a., interest to be paid monthly. (Effective Rate of Interest : 14.47%)
Repayment Terms : Rupee Term Loan I of RS.15 crores in 18 monthly instalments. The first of such instalment shall fall due after 18th month from the date of 1st disbursement.
Rupee Term Loan II of RS.30 crores in in 18 monthly instalments. The first of such instalment shall fall due after 24th month from the date of 1st disbursement.
c) Aditya Birla Finance Limited - (Sanctioned RS.1,500 lakhs): 31 March 2017 - RS.868 Lakhs (31 March 2016 - RS.1,359 Lakhs) (1 April 2015 - Nil)
Primary Security : All that Piece and parcel of premises bearing office Nos. 15 & 17 situated on 1st Floor, Office Nos. 04, 05, 17 situated on 2nd floor, Office Nos. 04, 05 & 17 situated on 3rd floor and Restaurant Nos. 01, 02 & 03 situated on 4th floor in building City Center situated at land bearing S No. 138/1 at village Hinjewadi, within registration district pune, Taluka - Mulshi; together with all buildings, Structures constructed or to be constructed thereon, both present and future and plant & machinery, fixture to be installed .
All that of retained offices bearing No. 403,404,409A & 411 on 4th floor, office no. 405, 509B, 511 & 512 on 5th Floor in City Mall Building bearing plot no. 01, S No. 132-B, Hissa No. 1 (CTS No. 2760) of Bhamburda Pune situated at University Road, Pune; together with all buildings, Structures constructed or to be constructed thereon, both present and future and plant & machinery, fixture to be installed.
Rate of Interest : Facility 11.50% p.a. floating which is linked to ABFL. (Effective Rate of Interest : 12.48%)
Repayment terms : 12 equal quarterly instalments
d) Tata Capital Housing Finance Limited (Sanctioned RS.3,500 Lakhs): 31 March 2017 - RS.970 Lakhs (31 March 2016 -HNil) (1 April 2015 - Nil)
Primary Security : All that piece and parcel of land forming part of survey Nos. 30/3 measuring 7 guntas, 30/4 measuring 3 acres 2 guntas, and 35/1 measuring 1 acre 13.5 guntas, total admeasuring 1,75,851.72 sq. ft. situated at Konappana Agrahara, Begur Hobli, Bangalore, South Taluk, Bangalore together with all the constructions thereon including all the units/flats/open space/parking/amenities and all such areas/constructions forming part of the residential project titled âiTowers Extentâ constructed/being constructed by the Borrower on the above mentioned land. All the sale proceeds accruing or arising or accrued and arisen but not received or collected out of the project âiTowers Extentâ and the Project Land All the sale proceeds accruing or arising or accrued and arisen but not received or collected out of the project âiTowers Extentâ and the Project Land the allottees / purchasers(present or future) of said flats whether under a letter of allotment and/or agreement for sale executed or any other document executed between the borrower and the allottees / flat purchaser in this regard, the escrow account, the approvals for the projects and the proceeds payable under the insurance policies.
Rate of Interest : PLR of 16.50%- 5.00% = 11.50% per annum on monthly reducing & floating rate basis. (Effective Rate of Interest : 12.96%)
Repayment terms :
1. Pre-MII/MI to be serviced from the project Escrow Account.
2. 10% of future sales receivables of sold and unsold units of proposed project during the entire tenure of loan. Set off to EMI can be given from capitalization during repayment period.
3. MI to commence from the following month of disbursement.
4. Monthly instalment: INR 16,394,110/- subject to variation in the PLR and satisfaction of Capitalization.
iv) Vehicle Loans : 31 March 2017 - RS.181 Lakhs (31 March 2016 - RS.98 lakhs) (1 April 2015 - RS.234 lakhs)
Security : All the Vehicle loans are secured by the respective vehicles only.
Rate of Interest : The Rate of Loans are between 10 % to 18%
Axis Bank - 31 March 2017 - Nil (31 March 2016 - HNil) (1 April 2015 - RS.1,977 Lakhs)
Primary Security : Exclusive first hypothecation charge on Current assets (construction Material WIP and receivables) of all the real estate projects of the company present and future excluding the project for which the company has availed project specific funding from any other bank.
Collateral Security : Exclusive registered mortgage of land located at S.no. 171/1 and 171/2 and 172 1/2 admeasuring 9460 sq. mtr. at tal. Mulshi, Wakad Pune in the name of Bouvardia Developers LLP (group entity of KPDL). Extension of charge on the Commercial premises Showroom no. 6 on the Ground floor of Building Delta Giga Space admeasuring 5300 sq. ft. standing in the name of the Company .
Interim addition security : Exclusive mortgage of property at unit noâs 12,13, 30 at Biz Bay project in the in the name of the company admeasuring 3750 sq. ft. of saleable area.
Repayment Terms : On demand
Loan from related party : 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015 - RS.5,135 Lakhs)
Loans from related parties are unsecured and are repayable on demandThe rate of interest is 14% per annum.
Note 4 - First-time adoption of Ind-AS
The Company has prepared its first Indian Accounting Standards (Ind AS) compliant Financial Statements for the periods commencing 1 April 2016 with restated comparative figures for the year ended 31 March 2016 in compliance with Ind AS. The company had prepared these financial statements in accordance with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act 2013. Accordingly, the Balance Sheet, in line with Ind AS transitional provisions, has been prepared as at 1 April 2015, the date of companyâs transition to Ind AS. In accordance with Ind AS 101 First-time Adoption of Ind AS, the Company has presented below a reconciliation of net profit as presented in accordance with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (âPrevious GAAPâ) to total comprehensive Income for the year ended 31 March 2016, reconciliation of shareholdersâ funds as per the previous GAAP to equity under Ind AS as at 31 March 2016 and 1 April 2015:
There were no significant reconciliation items between cash flows prepared under Previous GAAP and those prepared under Ind AS.
First-time adoption - mandatory exceptions, optional exemptions
The Company has prepared the opening balance sheet as per Ind AS as of 1 April 2015 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company as detailed below.
1. Estimates
The estimates at 1 April 2015 and 31 March 2015 are consistent with those made for the same dates in accordance with previous GAAP after adjustments to reflect any differences in accounting policies.
2. De-recognition of financial assets and financial liabilities
The Company has applied the de-recognition principles of financial assets and financials liabilities prospectively for transactions occurring on or after 1 April 2015.
3. Assessment of embedded derivatives
The company has assessed whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative on the basis of the conditions that existed at the later of the date it first became a party to the contract and the date when there has been a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract.
4. Share based Payments
Recognition criteria of employees stock option plan as per Ind 102 âShare based paymentâ is not applied to employee stock options that vested before date of transition to IND AS.
5. Deemed cost for property, plant and equipment, investment property, and intangible assets
The Company has elected to continue with the carrying value of all its property, plant and Equipment and Intangible assets recognised as of 1 April 2015 (transition date) measured as per previous GAAP and use that carrying value as its deemed cost as of the transition date.
6. Determining whether an arrangement contains a lease
The Company has applied Appendix C of Ind AS 17 Determining whether an Arrangement contains a Lease to determine whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing at that date.
7. Investments in subsidiaries, joint ventures
In accordance with exemption given in Ind AS 101, the company has recorded investments in subsidiaries and joint ventures at deemed cost i.e. previous GAAP carrying amount as on date of transition.
8. Impairment of financial assets
The Company has applied the impairment requirements of Ind AS - 109 âFinancial Instrumentsâ retrospectively; however, as permitted by Ind AS 101, the Company has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date of financial instruments were initially recognised in order to compare it with the credit risk at the transition date.
Notes to the reconciliation between Previous GAAP and Ind AS
i) Under Previous GAAP, dividend on equity shares recommended by the board of directors after the end of the reporting period but before financial statements were approved for issue were recognised in the financial statements as a liability. Under Ind AS, such dividends are recognised when approved by the shareholders in the annual general meeting. The effect of this change is increase in Equity by RS.1,148 lakhs as at 31 March 2016 and RS.1,824 lakhs as at April, 2015.
ii) Under Ind AS borrowing have been accounted for using Effective interest rate. The effect of this change is increase in equity by RS.50 Lakhs as at 31 March 2016 and profit by RS.11 lakhs for the year ended 31 March 2016.
iii) Under Ind AS financial guarantee contract must be recognized initially at fair value. The fair value of a financial guarantee contract is equal to the premium received on the guarantee when the arrangement is a stand-alone transaction involving a guarantee for the debt of an unrelated party. Under previous GAAP, this was not recognised.
The effect of this change is increase in Equity by RS.38 lakhs and RS.10 lakhs as at 31 March 2016 and 1 April 2015 respectively and increase in profit by RS.46 lakhs for the year ended 31 March 2016.
iv) Under previous GAAP, the company recognised share based payments using intrinsic value method. Ind AS - 102 âshare based paymentsâ requires share based payments to be recognised at fair value as at the grant date.
The effect of this change is in increase in profit by RS.33 lakhs for the year ended 31 March 2016.
v) Under previous GAAP, actuarial gains or losses were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognised in other comprehensive Income. Consequently, the tax effect of the same has also been recognised in other comprehensive Income under Ind AS instead of statement of profit or loss.
vi) Under the previous GAAP, investments in debentures and preference shares were measured at cost. Under Ind As these financial assets have been classified as Fair Value Through Profit and Loss. The effect of this change is decrease in equity by RS.18 lakhs and by RS.13 lakhs as at 31 March 2016 and 1 April 2015 respectively and profit has increased by RS.11 lakhs for the year ended 31 March 2016.
vii) Consequent to adopting Ind AS, impairment of investments in subsidiaries has been carried out. The effect of this change is decrease in Equity by RS.1,693 lakhs as at 31 March 2016 and 1 April 2015 respectively.
viii) Consequent to the adjustments on adopting Ind AS, deferred tax on such adjustments has been recognised. The effect of this change is decrease in equity by RS.25 lakhs and increase in equity by RS.2 lakhs as at 31 March 2016 and 1 April 2015 respectively, and decrease in the profits by RS.21 Lakhs for the year ended 31 March 2016.
ix) Under previous GAAP, there was no concept of other comprehensive Income. Under Ind AS, specified items of Income, expense, gains, or losses are required to be presented in other comprehensive Income.
Note 5 - Employee Benefits
The details of employee benefits as required under Ind AS 19 âEmployee Benefitsâ is given below
(A) Defined Contribution Plan:
Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans (Provident funds) is RS.276 lakhs (Previous Year - RS.256 lakhs)
(B) Defined benefit plan:
Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.
a. The discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.
b. Expected Rate of Return of Plan Assets: This is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of obligations.
c. Salary Escalation Rate : The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors
d. Withdrawal Rate: It is the expected employee turnover rate and should be based on the companyâs past attrition experience and future withdrawal expectations.
No other post-retirement benefits are provided to these employees.
In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31 March 2017 by Ranadey Professional Services, Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
Note 6 - Segment Information
The Company is engaged in Real Estate. The operations of the company do not qualify for reporting as business segments as per the criteria set out under Indian Accounting Standard 108 (IND AS-108) on âOperating Segmentsâ. The Company is operating in India hence there is no reportable geographic segment. Accordingly no disclosure is required under IND AS - 108.
Note 7 - Operating Leases Where the Company is Lessee:
The Company has entered into operating lease arrangements for certain facilities and office premises. The leases range over a period of 2 years to 5 years and may be renewed for a further period based on mutual agreement of the parties. The lease agreements provide for an increase in the lease payments by 10% to 15% in few cases.
Rental expense for operating leases included in the Statement of Profit and Loss for the year is RS.385 lakhs [Previous Year - RS.379 Lakhs].
Where the Company is Lessor:
The Company has entered into operating lease arrangements for certain surplus facilities. The leases are cancellable.
Rental Income from operating leases included in the Statement of Profit and Loss for the year is RS.116 Lakhs [Previous Year - RS.105 Lakhs].
Note 8 - Financial Instruments
I) Capital Management
The companyâs capital management objectives are:
- to ensure the companyâs ability to continue as a going concern
- to maximize the return to stakeholders through the optimization of the debt and equity balance.
The company monitors capital on the basis of the carrying amount of equity as presented on the face of the statement of financial position. The company sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities. The company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
II) Financial risk management objectives
In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
III) Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Future specific market movements cannot be normally predicted with reasonable accuracy.
Currency risk: The Company does not have material foreign currency transactions. The company is not exposed to risk of change in foreign currency.
Interest rate risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to the risk of changes in market interest rates as the Company does not have any long-term debt obligations with floating interest rates.
Other price risk:
The Company is not exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.
IV) Interest risk management
The Companyâs interest rate exposure is mainly related to debt obligations. The Company obtains debt to manage the liquidity and fund requirements for its day to day operations .The rate of interest is fixed and thus there is no risk of interest rates fluctuating.
V) Credit risk management
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.
VI) Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
The table below provides details regarding the contractual maturities of financial liabilities, including estimated interest payments as at 31 March 2017:
VII) Fair value disclosures
Level 1 - Quoted prices (Unadjusted) in active markets for identical assets & liabilities.
Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset & liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (Unobservable inputs).
The following table summarizes financial assets and liabilities measured at fair value on a recurring basis
Note 9 - Related Party Transactions A. List of related Parties
Related Parties (as identified by the Management) are classified as:
i. Subsidiaries
1 Kolte-Patil Real Estate Private Limited
2 Tuscan Real Estate Private Limited
3 Bellflower Properties Private Limited
4 Corolla Realty Limited (upto 31 December 2015)
5 Snowflower Properties Private Limited
6 Jasmine Hospitality Private Limited (Up to 31 December 2015)
7 Olive Realty Private Limited (Up to 31 December 2015)
8 Sylvan Acres Realty Private Limited
9 Yashowardhan Promoters and Developers Private Limited (Up to 31 December 2015)
10 Regenesis Facility Management Company Private Limited
11 Kolte Patil Redevelopment Private Limited (Formerly know as PNP Retail Private Limited)
12 PNP Agrotech Private Limited
13 Kolte-Patil I-Ven Townships (Pune) Limited
14 Ankit Enterprises
15 Kolte-Patil Homes
16 KP-Rachana Real Estate LLP
17 Sanjivani Integrated Township LLP
18 Bouvardia Developers LLP
19 KP-SK Project Management LLP
20 Carnation Landmarks LLP
21 Regenesis Project Management LLP
22 Lilac Hospitality LLP (Up to 14 November 2016)
23 Ruturang Developers LLP (Up to 22 December 2015)
ii. Key Management Personnel
1. Mr. Rajesh Patil
2. Mr. Naresh Patil
3. Mr. Milind Kolte
4. Mrs. Sunita Kolte (Up to 30 June 2015)
5. Mrs. Vandana Patil (Up to 30 June 2015)
6. Mr. Sujay Kalele (Up to 31 December 2015)
7. Mr. Gopal Sarda (w.e.f. 15 June 2016)
8. Mrs. Shraddha Jain (up to 4 November 2015)
9. Mr. Atul Bohra (w. e .f. 5 November 2015)
iii. Relatives /Close Members of the family of Key Management Personnel (with whom the Company had transactions)
1. Mr. Pradeep Kolte
2. Mr. Nirmal Kolte
Note 10 - Details of CSR expenditure
a) Gross amount required to be spend by the Company during the year is RS.76 lakhs (Previous Year RS.121 lakhs).
b) Amount spend during the year RS.109 Lakhs (Previous year RS.104 Lakhs)
Note 11
Trade receivables outstanding as at the balance sheet date include amounts of RS.3,081 lakhs relating to dues from certain parties that are outstanding for more than 6 months from the date they became due. As the Company continues to have business relationship and arrangements with these parties, the Company is confident of recovering these dues in the normal course of business.
Note 12- Domestic Transfer Pricing
The Company enters into âdomestic transactionsâ with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 (âregulationsâ). The pricing of such domestic transactions will need to comply with the Armâs length principle under the regulations. These regulations, inter alia, also required the maintenance of prescribed documents and information including furnishing a report from an accountant which is to be filed with the Income tax authorities.
The Company has undertaken necessary steps to comply with the regulations. The management is of the opinion that the domestic transactions are at armâs length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.
Note 13 - Employee stock option scheme a) Employee stock option scheme (ESOS 2014)
The Company has instituted âEmployee Stock Option Scheme 2014â (ESOS 2014) for eligible employees of the Company. The vesting pattern of the schemes has been provided below. The options can be exercised over a period of 1 to 3 years from the date of grant. Each option carries with it the right to purchase one equity share of the Company at the exercise price determined by the Nomination and remuneration Committee at the time of grant.
The options under this Scheme vest over a period of 1 to 3 years from the date of the grant. Upon vesting, employees have 3 to 5 years (as per plan) to exercise the options.
The exercise period shall commence from the date of vesting of option and expire not later than 12 (Twelve) months from the vesting date of option. Options not exercised during any particular exercise period, can be carried forward to the subsequent exercise period(s), provided however that all the Options, have to be exercised within a period of 2 year from the date of the vesting period in respect of the final lot, after which any unexercised Options will lapse.
iii. The employee stock option cost for the Employee Stock Option Scheme 2014 has been computed by reference to the fair value of share options granted and amortized over each vesting period. For the year ended 31 March 2017 the Company has accounted for employee stock Option cost (equity settled) amounting to RS.10 lakhs (31 March 2016: RS.16 lakhs).
The amount of the expense is based on the fair value of the employee stock options and is calculated using a Binomial Lattice valuation model. A lattice model produces estimates of fair value based on assumed changes in share prices over successive periods of time. The Binomial Lattice model allows for at least two possible price movements in each subsequent time period.
The Hull-White model (HW-model) is an extension of the Binomial Lattice model. It models the early exercise behavior of employees by assuming that exercise takes place whenever the stock price reaches a certain multiple M of the strike price X when the option has vested. The Black and Scholes valuation model has been used for computing the weighted average fair value.
Note 14
On 11 December 2015, the Company has entered into an agreement with Metropolitan Lifespace Real Estate Developers Private Limited (MLREDPL), for redevelopment of Jay Vijay Society Co-operative Housing Society Limited in Vile Parle. The agreement defines the Company as âDeveloperâ and MLREDPL as the âCo-Developerâ.
MLREDPL is contributing towards its share in the cost of the project, and will receive an identified area of the development as its return.
Note 15 - Scheme of Amalgamation
Pursuant to the Scheme of Amalgamation (the Scheme) sanctioned by the National Company Law Tribunal, Mumbai Bench vide its order dated 9 March 2017, Olive Realty Private Limited (Olive Realty), Yashowardhan Promoters and Developers Private Limited (Yashowardhan Promoters), Corolla Realty Limited (Corolla Realty) and Jasmine Hospitality Private Limited (Jasmine Hospitality) have been merged with the Company with effect from 1 January 2016 (the appointed date). The Scheme came into effect on 10 April 2017, the day on which the order was delivered to the Registrar of the Companies, and pursuant thereto the entire business and all the assets and liabilities, duties, taxes and obligations of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality have been transferred to and vested in the Company .The scheme has become effective on 10 April 2017 with effect from the appointed date of 1 January 2016.
Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality were primarily engaged in business of construction of residential, commercial; IT Parks along with renting of immovable properties and providing project management services for managing and developing real estate projects.
The business of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality was run in trust by them for the Company and the business of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality will be carried on by the Company post the effective date.
As the amalgamating companies i.e. Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality are wholly owned subsidiaries of the Company, no consideration is payable on amalgamation with the Company.
The amalgamation is accounted under the âpooling of interestâ method in terms of the scheme sanctioned by the National Company Law Tribunal, Mumbai bench as under:
- All assets and liabilities and reserves of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality have been recorded in the books of account of the Company at their respective carrying amounts and in the same form.
- Difference between amount of Share capital of the transferor companies and gross value recorded as investments is adjusted and the difference is adjusted in â Reservesâ in accordance with the Scheme.
- Accordingly, the assets and liabilities of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality are accounted at the following summarized values:
As the appointed date of merger is 1 January 2016 therefore previous yearâs numbers reported are not comparable.
The Company has initiated the name change formalities to transfer the title in respect of the contracts, agreements, etc. of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality.
Note 16 - Impairment
Having regards to the future business plans of Kolte Patil Redevelopment Private Limited (formerly known as PNP Retail Private Limited), Regenesis Project Management Company Private Limited and Lilac Hospitality Private Limited the company has recognized a provision for impairment loss of RS.1,200 Lakhs, RS.443 Lakhs and RS.50 Lakhs respectively.
Note 17 - Disclosure on Specified Bank Notes (SBN)
During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 30 March 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from 8 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the notification is given below:
*For the purposes of this clause, the term âSpecified Bank Notesâ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November 2016.
Note 18
The financial statements for the year ended 31 March 2017 were approved by the Board of Directors and authorised for issue on 30 May 2017.
Mar 31, 2016
3A Terms, rights & restrictions attached to equity shares
The Company has only one class of equity shares having a face value of H10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Company''s residual assets. The equity shares are entitled to receive dividend was declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.
3D The Company declares and pays dividend in Indian Rupees. A final dividend of H1.50 per share has been recommended by the Board of Directors in their meeting held on 28 May 2016, for the financial year 2015-2016, subject to the approval of shareholders in the ensuing Annual General Meeting. The total dividend appropriation for the year ended 31 March 2016 amounted to RS,1,141 lakhs including Corporate Dividend Distribution Tax of RS,4 lakhs (Previous year RS,1,825 lakhs including Corporate Dividend Distribution Tax of RS,309 lakhs).
Security:
The NCDs shall be secured by an exclusive first ranking charge in favour of the Debenture Trustee (on behalf of the NCD holders) over:
1) Charge by way of Mortgage over land and Project Assets of Jazz 2 located at Pimple Nilakh to which clear and marketable title is held by Issuer.
2) Charge on all Cash flows and Receivables pertaining to the Project ("Receivablesâ).
3) Charge on the Escrow Account for the Project.
4) Minimum asset cover of 1.50 times the total principal amount of the NCDs outstanding and aggregate interest accrued but not paid on the NCDs as on the relevant date to be maintained , throughout the tenor of the NCDs
Repayment Terms : The non-convertible secured Debentures are redeemable at the end of 3 years from the Deemed Date of Allotment. The interest is to be paid out quarterly as per the Debenture Information Memorandum.
The Company has created Debenture Redemption Reserve of RS,1,166 lakhs pursuant to the Section 71(4) of the Companies Act, 2013
Security:
The NCDs shall be secured by an exclusive first ranking charge in favour of the Debenture Trustee (on behalf of the NCD holders) over:
1) Charge by way of Mortgage over land and Project Assets of Atria located at Pimple Nilakh to which clear and marketable title is held by Issuer.
2) Charge on all Cash flows and Receivables pertaining to the Project ("Receivablesâ).
3) Charge on the Escrow Account for the Project.
4) PMC Fees due from Corolla Realty Limited and pledge of Equity Shares of Corolla Realty Limited held by the Company. Repayment Terms: The NCDs Series III are redeemable in six (6) monthly installments from 25th to 30th month from the date of allotment. The interest is to be paid out half yearly as per the Debenture Information Memorandum.
The Company has created Debenture Redemption Reserve of RS,1,100 lakhs pursuant to the Section 71(4) of the Companies Act, 2013.
ii) Term Loan from Banks :
a) IDBI Loan Against property (Sanctioned RS,1,000 lakhs): Outstanding Balance - Nil (PY - RS,824 lakhs)
Primary Security: Office No 101-B,102,105D,106,107AB,112C,201-203-204-205-206-207-208,First & Second Floor, City Point S.no 347B, 347A, Hissa No 3C/1A/1, 348A hissa no 1/1/, 348A hissa no 1/2A, Final Plot no 188 CST No 14(part) 14/1, 14/2 Dhole Patil Road Pune 01.
Collateral Security: Extension of Regd. Mortgage of Boat club road land, Final plot no 188, S no. 347/B, 347/A, 3C/1A/1, 348A/1/1 and 348A/1/2A, Total area 113883 sq. ft. at Pune Rate of Interest : BBR Plus 525bps (i.e.effective 15.50% p.a.)
During the year, the term loan has been repaid.
b) IDBI Project Term Loan - 24 K Glitterati (Sanctioned RS,2,500 lakRs,s): Outstanding Balance - Nil (PY - RS,2,226 lakhs)
Primary Security: Mortgage of land at survey no 14 Hissa No 14/3/1/1, 14/4/1, 14/5/12 to 4 admeasuring 34400 sq. mtr. located at Pimple Nilakh in Pune.
Collateral Security: 1) Extension of Regd. mortgage of boat club Road Land, Final Plot no 188 S.no 347B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A total area 113883 Sq Ft. at Pune 2)Office No.101B, 102, 105D, 106, 107AB, 112C, 201-202203-204-205-206-207-208, First and second floors, "City PointâS. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A Hissa No. 1/1, 348A Hissa No. 1/2A, final plot no.188 CST No. 14(part) 14/1, 14/2 Dhole Patil Road Pune -01 "
The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the Company.
Rate of Interest : BBR Plus 325 bps (effective 13.50% p.a.)
During the year, the term loan has been repaid.
c) Vijaya Bank Construction Finance - City Bay (Sanctioned RS,2,000 lakhs): Outstanding Balance - Nil (PY - H1,929 lakhs)
Security : Exclusive Charge by way of equitable Mortgage on proposed sixth, seventh, eighth and ninth floor admeasuring 318,421 sq.ft. of proposed Building, City Bay.
Rate of Interest : Base Rate 2.75% 0.25% p.a.(floating) (i.e. 13.45% p.a. at present)
During the year, the term loan has been repaid.
d) State Bank of India Projects Term Loan - Ragga - Bangalore (Sanctioned RS,4,300 lakhs): Outstanding Balance - Nil (PY - RS,1,850 lakhs)
Primary Security: Land admeasuring 6 acres 29 Guntas i.e. 292,941 sq. ft. for phase I and II and buildings to be constructed at s.no 33, Kannur Village, Bidarahalli Hobli Nr Yelakhanka, Bangalore East Taluka.
Collateral Security : land admeasuring 5,400 sq. ft. and house property (basement g 2 admeasuring 9200 sq.ft. built up)at No 978 (amalgamation of 978 &979) HAL 2nd stage indiranagar Bangalore. Prime: Negative lien on unsold flats. The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Vandana
Patil, Directors of the the Company.
Rate of Interest : Base Rate 9.75% Spread 3.75% (i.e. 13.50%)
During the year, the term loan has been repaid.
e) Axis Bank Project term Loan (Sanctioned RS,1000 lakhs) : Outstanding - Nil (PY - RS,287 Lakhs)
Primary Security: Excusive registered mortgage of land Development agreement located at S no. 76 to 88 (P) and 91(p) admg 74321.81 Sqmtr located at Bhavdhan Pune (including proposed building constructed thereon and other assets associated to the project.
Collateral Security: All receivable from the project including sale proceed, Security deposit,any other payment and termination repayment should be routed through a designated Account in Axis Bank Limited. The bank to have lien on the account.
Rate of Interest : Basic rates Plus 3.00% i.e. currently13.25% P.A.payble at monthly interval.
During the year, the term loan has been repaid.
f) Karur Vaishya Bank Project term Loan (Sanctioned RS,5000 lakhs) : Outstanding - RS,2,000 Lakhs (PY - Nil)
Primary Security :- Fresh E M Charge on Developers Share of Land and Property under development at Sy.No. 71 of Horamavu Agara Village, KR Puram, Hobli, Bangalore East Taluk admeasuring 7 acres 39 guntas valued at H135.00 Crore as per B.M''s estimates.
Collateral Security : Fresh E.M Charge on Vacant Land situated at No. 53/1, Next to Jhon Flower, Koramangala 3rd Block, Koramangala, Bangalore admeasuring 58500 Sq.Ft. standing in the name of Ankit Enterprises (Group concern) valued RS,76.00 Crore as per B.M Estimates.
Rate of Interest : Basic rates Plus 2.5% i.e. currently 13.50% P.A. payable at monthly interval.
Repayment Terms : Repayment to start from December 2016 . 5 Quarterly equal installments. Holiday Period up to November 2016. Door to Door Tenor 30 months.
iii) Term Loan from others :
a) Capital First Limited - (Sanctioned RS,7,500 lakhs): Outstanding Balance - Nil (PY - RS,3,071 Lakhs)
Security : Exclusive Charge on the escrow on all the receivable credited to KPDL after payment is made to the respective construction finance lender from Glitterati Project. Exclusive charge by way of Mortgage of all unsold projects assets and exclusive mortgage on land, hypothecation over all the project receivable and inventory of giga residency Projects. Escrow of all projects cash flow accruing from sale of projects, including but not limited to deposits/ rentals/sale proceeds/ any other receipts of any nature in such form and manner as may be required by the lender from the projects mentioned above till our facility is fully repaid.
Rate of Interest : 18% p.a. payable quarterly fixed for entire term of the facility.
During the year, the term loan has been repaid.
b) Aditya Birla Finance Limited - (Sanctioned RS,4500 lakhs): Outstanding Balance RS,1,439 Lakhs (PY - NIL)
Security: An exclusive charge by way of RMOE on the projects land bearing S. No. 33, admeasuring 205,821 square feet situated at Kannur Village, Bidarahalli Hobli, Bangalore east along with building and structures both, present and future. Exclusive Charge by way of RMOE on the Residential Property bearing survey no. 978 along with the structures situated at HAL II Stage Bangalore, Bangalore Mahanagar Palike Ward No 72 totally measuring east to west 90 ft. and north to south 60 all measuring 5400 sq. ft., comprising of basement, Ground floor plus two floors with a built up area of 9247 sq. ft., together with all rights.
Exclusive charge by way of hypothecation of the scheduled receivable (both sold and unsold) of Projects Raaga Phase I and
II under the documents entered into with customers by borrower, all insurance proceeds both present and future.
An Exclusive charge by way of hypothecation on Escrow Account I and Escrow Account ll, all monies credited / deposited therein and all investments in respect thereof.
Rate of Interest : 13.75% p.a., interest to be paid monthly.
Repayment Terms : Repayment Terms: Rupee Term Loan I of RS,15 crores in 18 monthly installments. The first of such installment shall fall due after 18th month from the date of 1st disbursement.
Rupee Term Loan II of RS,30 crores in 18 monthly installments. The first of such installment shall fall due after 24th month from the date of 1st disbursement.
c) Aditya Birla Finance Limited - (Sanctioned RS,1,500 lakhs): Outstanding Balance RS,1,375 Lakhs (PY - NIL)
Primary: All that Piece and parcel of premises bearing office Nos. 15 & 17 situated on 1st Floor, Office Nos. 04, 05, 17 situated on 2nd floor, Office Nos. 04, 05 & 17 situated on 3rd floor and Restaurant Nos. 01, 02 & 03 situated on 4th floor in building City Center situated at land bearing S No. 138/1 at village Hinjewadi, within registration district pune, Taluka -Mulshi; together with all buildings, Structures constructed or to be constructed thereon, both present and future and plant
& machinery, fixture to be installed.
All that of retained offices bearing No. 403,404,409A & 411 on 4th floor, office no. 405, 509B, 511 & 512 on 5th Floor in City Mall Building bearing plot no. 01, S No. 132-B, Hissa No. 1 (CTS No. 2760) of Bhamburda Pune situated at University Road, Pune; together with all buildings, Structures constructed or to be constructed thereon, both present and future and plant & machinery, fixture to be installed
Rate of Interest: Facility 11.50% P.a. floating which is linked to ABFL.
Repayment terms: 12 equal quarterly installments
iv) Vehicle Loans: Outstanding Balance RS,98 lakhs (PY - RS,234 lakhs)
Security: All the Vehicle loans are secured by the respective vehicles only.
Rate of Interest : The Rate of Loans are between 10 to 18%
1) State Bank of India (Sanctioned RS,15,000 lakhs): Outstanding - RS,11,467 Lakhs (PY - NIL)
Primary security:
1. All pieces and parcel of Land Bering Survey Nos. 1) 131/1 (part)-00H05 Ares, 2) 131/5-(part)-00H 49.69 Ares,
3)131/2 3 4 6/1 (part)-00H 16.40 Ares, 4)131/2 3 4 6/2 (part)-1H 63.40 Ares, 5)131/2 3 4 6/3 (part)-1H 53.35 Ares, 6)131/2 3 4 6/4 (part)-00H 16.67 Ares, 7)131/2 3 4 6/5 (part)-00H 27.80 Ares 31/2 3 4 6/6(part)-00H 49.40 Ares, 9) 131/7/1 (part)-00H 46.08 Ares which are totally & collectively ad measuring 03 H 27.79 Ares, i.e. 32779 Sq. Meters at village Wakad, within the limits of Pimpri Chinchwad Municipal Corporation and within the jurisdiction of Taluka Mulshi, District.
2. Present and future goods, book debts and all other movable assets.
3. Offices no. 101B, 102, 106, 107AB, 112C, 201 to 207 at City Point, Dhole Patil Road, Pune and Open land admeasuring 29,593 sq. mtrs. Bearing S. No. 347-B, 347-A/3C/1A/1, 348A/1/1 and 348A/1/2A and also bearing final plot no. 188, at Boat Club road and 6th, 7th, 8th Floors of City Bay, Dhole Patil Road, Pune.
Rate of Interest: 11.30% p.a. with monthly rest.
Repayment Terms: The Fund based loan amount of RS,15,000 Lak s sanctioned is available for a period of 35 months with annual review when it may be cancelled depending upon the conduct and utilization of advances. The repayment will start from March 2016.
2) Axis Bank : Nil (PY - RS,1977 Lakhs)
Primary: Exclusive first hypotication charge on Current assets (construction Material WIP and receivables) of all the real estate projects of the company present and future excluding the project for which the company has availed project specific funding from any other bank.
Collaterial :Exclusive registered mortgage of land located at S.no. 171/1and 171/2and 172 1/2 admeasuring 9460 sq mtr at tal Mulshi, Wakad Pune in the name of Bouvardia Develoers LLP (group entity of KPDL).Extension of charge on the Commercial premises Showroom no 6 on the Ground floor of Building Delta Giga Space admeasuring 5300 sq ft standing in the name of the Company .
Interim addition security : Exclusive mortgage of property at unit nos 12,13, 30 at Biz Bay project in the in the name of the company admeasuring 3750 sq ft of salable area.
Repayment Terms: On demand
3) IDBI Bank - Overdraft Facility
Security - Bank Fixed Deposit Rate of Interest : Bank FD plus 1.5%
*in the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof.
**The Company does not expect any outflow of resources in respect of the Guarantees issued.
NOTE 33 - EMPLOYEE BENEFITS
The details of employee benefits as required under Accounting Standard 15 ''Employee Benefits'' is given below
(A) Defined Contribution Plan:
Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans (Provident funds) is RS,205 lakhs (Previous Year - RS,167 lakhs)
(B) Defined benefit plan:
Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.
Disclosure as required under Accounting Standard - 15 (Revised) on "Employee Benefitsâ in respect of defined benefit plan is as under:
NOTE 4 - SEGMENT INFORMATION
The Company is predominantly engaged in Real Estate. The operations of the company do not qualify for reporting as business segments as per the criteria set out under Accounting Standard 17 (AS-17) on "Segment Reportingâ. The Company is operating in India hence there is no reportable geographic segment. Accordingly no disclosure is required under AS-17.
NOTE 5 - OPERATING LEASES Where the Company is Lessee:
The Company has entered into operating lease arrangements for certain facilities and office premises. The leases are non-cancellable and range over a period of 2 years to 5 years and may be renewed for a further period based on mutual agreement of the parties. The lease agreements provide for an increase in the lease payments by 10% to 15% in few cases.
Rental expense for operating leases included in the Statement of Profit and Loss for the year is RS,372 lakhs [Previous Year - RS,492 Lakhs].
NOTE 6 - RELATED PARTY TRANSACTIONS A. List of related Parties
Related Parties (as identified by the Management) are classified as:
i. Subsidiary Companies
1 Kolte-Patil Real Estate Private Limited
2 Tuscan Real Estate Private Limited
3 Bellflower Properties Private Limited
4 Corolla Realty Limited (from 9 October 2015)
5 Snowflower Properties Private Limited
6 Jasmine Hospitality Private Limited
7 Olive Realty Private Limited
8 Sylvan Acres Realty Private Limited
9 Yashowardhan Promoters and Developers Private Limited
10 Regenesis Facility Management Company Private Limited
11 PNP Retail Private Limited
12 PNP Agrotech Private Limited
ii. Joint Ventures
Kolte-Patil I-Ven Townships (Pune) Limited
iii. Entities over which the Company, Subsidiary Companies or Key Management Personnel or their relatives, exercise significant influence
1 Ankit Enterprises
2 Kolte-Patil Homes
3 Kolte-Patil Enterprises
4 KP-Rachana Real Estate LLP
5 Sanjivani Integrated Township LLP
6 Bouvardia Developers LLP
7 KP-SK Project Management LLP
8 Carnation Landmarks LLP
NOTE 7 - RELATED PARTY TRANSACTIONS (contd.)
9 Regenesis Project Management LLP
10 Lilac Hospitality LLP
iv. Key Management Personnel
1. Mr. Rajesh Patil
2. Mr. Naresh Patil
3. Mr. Milind Kolte
4. Mrs. Sunita Kolte (Up to 30 June 2015)
5. Mrs. Vandana Patil (Up to 30 June 2015)
6. Mr. Sujay Kalele (Up to 31 December 2015)
7. Mrs. Shraddha Jain (up to 4 November 2015)
8. Mr. Atul Bohra (w.e.f. 5 November 2015)
v. Relatives of Key Management Personnel (with whom the Company had transactions)
1. Mr. Digambar Kolte
2. Mrs. Pramila Kolte
3. Mr. Pradeep Kolte
4. Mr. Sudhir Kolte
5. Mrs. Sunita Patil
6. Ms. Ankita Patil
7. Mr. Nirmal Kolte
NOTE 8 - DETAILS OF EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY
a) Gross amount required to be spend by the Company during the year is RS,121 lakhs (Previous Year RS,115 lakhs).
b) Amount spend during the year RS,29 lakhs (Previous year H Nil)
NOTE 9
Trade receivables outstanding as at the balance sheet date include amounts of RS,2,145 lakhs relating to dues from certain parties that are outstanding for more than 6 months from the date they became due. As the Company continues to have business relationship and arrangements with these parties, the Company is confident of recovering these dues in the normal course of business. All these dues are considered good for recovery and hence no provision is considered necessary.
NOTE 10 - DOMESTIC TRANSFER PRICING
The Company enters into "domestic transactionsâ with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 (''regulations''). The pricing of such domestic transactions will need to comply with the Arm''s length principle under the regulations. These regulations, inter alia, also required the maintenance of prescribed documents and information including furnishing a report from an accountant which is to be filed with the Income tax authorities.
The Company has undertaken necessary steps to comply with the regulations. The management is of the opinion that the domestic transactions are at arm''s length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.
NOTE 11 - EMPLOYEE STOCK OPTION SCHEME a) Employee stock option scheme (ESOS 2014)
The ESOS was approved by Board of Directors of the Company on 13 August 2014 and thereafter by the shareholders on 13 September 2014. A Nomination and Remuneration committee comprising of independent directors of the company administers the ESOS plan. Each option carries with it the right to purchase one equity share of the company. The maximum exercise period is 3 year from the date of vesting.
c) The compensation cost of stock option granted to employees has been accounted by the Company using the intrinsic value method.
The guidance note on accounting of employee share based payments issued by the Institute of Chartered Accountants of India requires the disclosure of pro forma net results and EPS both basic & diluted, had the Company adopted the fair value method. Had the Company accounted these options under fair value method, amortizing the stock compensation expense thereon over the vesting period, the reported profit for the year ended 31 March 2016 would have been lower by RS,6 lakhs (Previous year: RS,43 lakhs) and Basic and diluted EPS would have been revised to RS,5.20 per share (Previous year RS,5.70 per share) and RS,5.20 per share (Previous year RS,5.69 per share) respectively as compared to RS,5.21 per share (Previous year RS,5.76 per share) and RS,5.21 per share (Previous year RS,5.75 per share) without such impact.
d) The fair value of the stock option is calculated through the use of option pricing models, requiring subjective assumptions which greatly affect the calculated values. The said fair value of the options have been calculated using Binomial lattice option pricing model, considering the expected weighted average term of the options to be 1 year from the date of vesting, an expected dividend rate of 2% on the underlying equity shares, a risk free rate in the range of 7.70% - 8.50% and weighted average volatility in the share price in the range of 69.36% - 71.14%. The expected volatility is based on historical volatility of the share price after eliminating the abnormal price fluctuations. The forfeiture/lapse estimated rate is based on historical employee turnover rates and future lapse expectations.
NOTE 12 -
On 11 December 2015, the Company has entered into an agreement with Metropolitan Lifespace Real Estate Developers Private Limited (MLREDPL), for redevelopment of Jay Vijay Society Co-operative Housing Society Limited in Vile Parle. The agreement defines the Company as "Developerâ and MLREDPL as the "Co-Developerâ
MLREDPL is contributing towards its share in the cost of the project, and will receive an identified area of the development as its return. This arrangement with the Co- Developer is a Jointly controlled operation.
NOTE 13 -
During the year, the Company has increased its stake in Corolla Realty Limited from 37% to 100%. Corolla Realty Limited is now a Wholly Owned Subsidiary of the Company.
NOTE 14 -
The Board of Directors have approved the scheme of amalgamation of four Wholly Owned Subsidiaries namely Olive Realty Private Limited, Yashowardhan Promoters and Developers Private Limited, Corolla Realty Limited and Jasmine Hospitality Private Limited with Kolte-Patil Developers Limited. The Company has received the No Objection Certificate for the scheme from National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The application has been filed in Hon''ble High Court, Mumbai and its approval is currently awaited. No effect of proposed amalgamation has been given in the financial statement for the year ended 31 March 2016 due to pending approval of the Hon''ble High Court, Mumbai.
NOTE 15 - PREVIOUS YEAR''S FIGURES
Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
Mar 31, 2015
Note 1.
BACKGROUND
Kolte-Patil Developers Limited ("the CompanyÂ) is a Company
registered under the Companies Act, 1956. It was incorporated on 25th
November 1991. The Company is primarily engaged in business of
construction of residential, commercial; IT Parks along with renting of
immovable properties and providing project management services for
managing and developing real estate projects.
Note 2.
SHARE CAPITAL
Terms, rights & restrictions attached to equity shares
The Company has only one class of equity shares having a face value of
Rs. 10 per share. Accordingly, all equity shares rank equally with
regards to dividends & share in the Company's residual assets. The
equity shares are entitled to receive dividend as declared from time to
time. Each holder of equity shares is entitled to one vote per share.
In the event of liquidation of the Company, the holder of equity shares
will be entitled to receive the remaining assets of the Company, after
distribution of all preferential amount. The distribution will be in
proportion to the number of equity shares held by the shareholders.
The Company declares and pays dividend in Indian Rs. . A final
dividend of Rs. 2.00 per share has been recommended by the Board of
Directors in their meeting held on 26 May 2015, for the financial year
2014-15, subject to the approval of shareholder in the ensuing annual
General meeting. The total dividend appropriation for the year ended 31
March 2015 amounted to Rs. 1,825 lakhs including Corporate Dividend
Distribution Tax of Rs. 309 lakhs ( Previous year Rs. 2,697 lakhs
including Corporate Dividend Distribution Tax of Rs. 348 lakhs).
NOTE 4
LONG TERM BORROWINGS
Security:
The NCDs shall be secured by an exclusive first ranking charge in
favour of the Debenture Trustee (on behalf of the NCD holders) over:
1) Charge by way of Mortgage over land and Project Assets of Jazz 2
located at Pimple Nilakh to which clear and marketable title is held by
Issuer.
2) Charge on all Cash flows and Receivables pertaining to the Project
("ReceivablesÂ).
3) Charge on the Escrow Account for the Project.
4) Minimum asset cover of 1.50 times the total principal amount of the
NCDs outstanding and aggregate interest accrued but not paid on the
NCDs as on the relevant date to be maintained , throughout the tenor of
the NCDs
Repayment Terms : The non-convertible secured Debentures are redeemable
at the end of 3 years from the Deemed Date of Allotment. The interest
is to be paid out quarterly as per the Debenture Information
Memorandum.
The Company has created Debenture Redemption Reserve of Rs. 583 lakhs
pursuant to the Section 71(4) of the Companies Act, 2013
ii) Term Loan from Banks :
a) IDBI Loan Against property (Sanctioned Rs. 1,000 lakhs): Outstanding
Balance Rs. 824 lakhs (PY - Rs. 1,000 lakhs)
Primary Security: Office No
101-B,102,105D,106,107AB,112C,201-203-204-205-206-207-208,First &
Second Floor, City Point S.no 347B, 347A, Hissa No 3C/1A/1,348A hissa
no 1/1/, 348A hissa no 1/2A, Final Plot no 188 CST No 14(part) 14/1,
14/2 Dhole Patil Road Pune 01.
Collateral Security: Extension of Regd. Mortgage of Boat club road
land, Final plot no 188, S no. 347/B, 347/A, 3C/1A/1, 348A/1/1 and
348A/1/2A, Total area 113883 sq. ft. at Pune
Rate of Interest : BBR Plus 525 bps (i.e.effective 15.50% p.a. )
Repayment Terms : In 23 Quarterly Installments commencing from 1 April
2014 (22 instalments of Rs. 44 lakhs and last 23rd installment of Rs.
32 lakhs )
b) IDBI Project Term Loan - 24 K Glitterati (Sanctioned Rs. 2,500
lakhs): Outstanding Balance Rs. 2,226 lakhs (PY - Rs. 681 lakhs)
Primary Security: Mortgage of land at survey no 14 Hissa No 14/3/1/1,
14/4/1, 14/5/12 to 4 admeasuring 34400 sq. mtr. located at Pimple
Nilakh in Pune.
Collateral Security: 1) Extension of Regd. mortgage of boat club Road
Land, Final Plot no 188 S.no 347B, 347/A 3C/1A/1, 348A/1/1 and
348A/1/2A total area 113883 Sq Ft. at Pune 2)Office No.101B, 102, 105D,
106, 107AB, 112C, 201-202- 203-204-205-206-207-208, First and second
floors, "City Point"S. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A Hissa
No. 1/1, 348A Hissa No. 1/2A, final plot no.188 CST No. 14(part) 14/1,
14/2 Dhole Patil Road Pune -01
The Company has provided personal guarantees of Mr. Rajesh Patil, Mr.
Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, directors of the
Company.
Rate of Interest : BBR Plus 325 bps (effective 13.50% p.a.)
Repayment Terms : Term Loan of Rs. 25 crores for the said project would
be repayble in 9 quartely Installment commenced from 30 June 2015, the
first 8 quarterly installment would consist of Rs. 2.80 crores and the
last installment woud be of Rs. 2.60 crores. Hence the loan fully
repaid maximum by 30th June 2017.
c) IDBI Project Term Loan - City Bay (Sanctioned Rs. 1,000 lakhs) :
Outstanding Balance Nil (PY - Rs. 712 lakhs)
Primary Security: Floor No - Ground to 5th floor of Building named City
Bay Situated at plot no 188, Tower 3 admeasuring 3606.55 Sq. Mtr.
Collateral Security: Extension of Regd. Mortgage of Boat Club Road Land
Final Plot no 188, S.no 347-B, 347/A,3C/1A/1,348/1/1 and348A/1/2A,
Total area113883 Sq. Ft. at Pune and Office No
101B,102,105D,106,107AB,11 2C,201-202-203-204-206-207-208, first and
second floors city Point s.no 347B,347A Hissa No 3C/1A/1,348A Hissa No
1/1, 348A hissa No 1/2A, final Plot No 188CTS No 14(part)14/1,14/2
Dhole Patil Road Pune-01
Rate of Interest : BBR plus 300 bps (i.e. effective 13.25% p.a.)
Repayment Terms : 14 monthly installments commencing from 1 Dec 2013
and ending on January 2015.
d) Vijaya Bank Construction Finance - City Bay (Sanctioned Rs. 2,000
lakhs): Outstanding Balance Rs. 1,929 lakhs (PY - Rs. 1,499 lakhs)
Security : Exclusive Charge by way of equitable Mortgage on proposed
sixth, seventh, eighth and ninth floor admeasuring 36149 sq.ft. of
proposed Building, City Bay
Rate of Interest : Base Rate 2.75% 0.25% p.a.(floating ) (i.e. 13.45%
p.a. at present)
Repayment Terms : The Principal is to be repaid in 72 equal monthly
installments after a moratorium period of 24months from the date of
first disbursement. Interest is to be serviced as and when debited.
e) State Bank of India Projects Term Loan - Raaga - Bangalore
(Sanctioned Rs. 4,300 lakhs): Outstanding Balance Rs. 1,850 lakhs (PY -
Rs. 2,849 lakhs)
Primary Security: Land admeasuring 6 acres 29 Guntas i.e. 292,941 sq.
ft. for phase I and II and buildings to be constructed at s.no 33,
Kannur Village, Bidarahalli Hobli Nr Yelakhanka, Bangalore East Taluka.
Collateral Security : land admeasuring 5,400 sq. ft. and house property
(basement g 2 admeasuring 9200 sq.ft. built up)at No 978
(amalgamation of 978 &979 ) HAL 2nd stage indiranagar Bangalore. Prime:
Negative lien on unsold flats.
The Company has provided personal guarantees of Mr. Rajesh Patil, Mr.
Naresh Patil, Mr. Milind Kolte and Mrs. Vandana Patil, directors of the
the Company.
Rate of Interest : Base Rate 9.75% Spread 3.75% (i.e. 13.50%)
Repayment Terms : Quarter ending Dec 2014 Rs. 1,000 lakhs, March 2015
Rs. 1,000 lakhs, June 2015 Rs. 1,000 lakhs and Sept 15 Rs. 1,000 lakhs
f) Axis Bank Project term Loan (Sanctioned Rs. 1000 lakhs) :
Outstanding - Rs. 287 Lakhs (PY - Rs. Nil)
Primary Security: Excusive registered mortgage of land Development
agreemet located at S no. 76 to 88 (P) and 91(p)admg 74321.81 Sqmtr
located at Bhavdhan Pune (including proposed building construced
thereon and other assets associated to the project.
Collateral Security: All receivable from the project including sale
proceed, Security deposit,any other payment and termination repayment
should be ruted through a designated Account in Axis Bank Limited. The
bank to have lien on the account.
Rate of Interest : Basic rates Plus 3.00% i.e. currently13.25%
P.A.payble at monthly interval.
Repayment Terms : In 9 Quarterly Installments commencing immediately
after moratorium of 1st Year from the date of 1st Disbursment.
iii) Term Loan from others:
a) Capital First Limited - (Sanctioned Rs. 7,500 lakhs): Outstanding
Balance Rs. 3,071 lakhs (PY - Rs. 5,850 Lakhs)
Security : Exclusive Charge on the escrow on all the receivable
credited to KPDL after payment is made to the respective construction
finance lender from Glitterati Project. Exclusive charge by way of
Mortgage of all unsold projects assets and exclusive mortgage on land,
hypotication over all the project receivable and inventory of giga
residency Projects. Escrow of all projects cash flow accruing from sale
of projects, including but not limited to deposits/ rentals/sale
proceeds/ any other receipts of any nature in such form and manner as
may be required by the lender from the projects mentioned above till
our facility is fully repaid.
Rate of Interest : 18% p.a. payable quarterly fixed for entire term of
the facility
Repayment Terms : Repayment in 9 quarterly installments after the
moratorium period of 12 months i.e. Repayment of loan shall commence
from the last day of the 12th Month from drawdown; but subject to
mandatory prepayment.
b) Aditya Birla Finance Limited - (Sanctioned Rs. 1,600 lakhs):
Outstanding Balance Rs. Nil (PY - Rs. 1600 Lakhs)
Security: First and Exclusive charge by way of Registered MoE on the
Commercial Property Alyssa (area approx. 19,600 sq.ft.) having New no
23 old No 28 Richmond Road, Richmond Town Bangalore - 560025 and
hypothication of receivables from M/s Mirabilis Project.
The Company has provided personal guarantees of Mr. Naresh Patil and
Mrs. Vandana Patil, Directors of the the Company.
Rate of Interest : Facility 14.50% P.a. floating which is linked to
ABFL long term reference Rate (i.e. ABFL LTRR /-Margin) LTRR of ABFL at
Present is 16.50 % P.a. Margin offered is -2%for Facility
Repayment Terms : Month -0 to Month 06 interest on the draw down amount
to be serviced on monthly basis Month 07 to Month 48 installment of Rs.
48.80 lakhs
iv) Vehicle Loans: Outstanding Balance Rs. 234 lakhs ( PY - Rs. 247
lakhs)
Security: All the Vehicle loans are secured by the respective vehicles
only.
Rate of Interest : The Rate of interest are between 10 to 18%
NOTE 5
SHORT TERM BORROWINGS
Axis Bank : Rs. 1,977 Lakhs (PY - Rs. 932 Lakhs)
Primary: Exclusive first hypotication charge on Current assets
(construction Material WIP and receivables) of all the real estate
projects of the company present and future excluding the project for
which the company has availed project specific funding from any other
bank.
Collaterial :Exclusive registered mortgage of land located at S.no.
171/1and 171/2and 172 1/2 admeasuring 9460 sq mtr at tal Mulshi, Wakad
Pune in the name of Bouvardia Develoers LLP (group company of
KPDL).Extension of charge on the Commercial premises Showroom no 6 on
the Ground floor of Building Delta Giga Space admeasuring 5300 sq ft
standing in the name of the Company .
Interim addition security : Exclusive mortgage of property at unit nos
12,13, 30 at Biz Bay project in the in the name of the company
admeasuring 3,750 sq ft of salable area.
The Company has provided personal guarantees of Mr. Rajesh Patil, Mr.
Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the
Company.
Repayment Terms: On demand
2 IDBI Bank - Overdraft Facility Security - Bank Fixed Deposit
Rate of Interest : Bank FD plus 1.5%
NOTE 6
CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
(Rs. in Lakhs)
Particulars Year ended Year ended
31 March 2014 31 March 2015
(a) Claims against the Company
not acknowledged as debt * 2,133 2,152
(b) Income Tax matters
(pending in Appeal) 936 2,142
(c) Guarantees issued by the
Company on behalf of Subsidiary
and joint venture 21,800 15,600
companies**(Refer Note 47)
(d) In relation to the Company's
interests in joint ventures and
its share in each of the 35 36
contingent liabilities which
have been incurred jointly with
other venturers *
Total 24,904 19,930
*in the opinion of the management the above claims are not sustainable
and the Company does not expect any outflow of economic resources in
respect of above claims and therefore no provision is made in respect
thereof.
**The Company does not expect any outflow of resources in respect of
the Guarantees issued.
NOTE 7
EMPLOYEE BENEFITS
The details of employee benefits as required under Accounting Standard
15 'Employee Benefits' is given below
(A) Defined Contribution Plan:
Amount recognized as an expense in the Statement of Profit and Loss in
respect of Defined Contribution Plans (Provident and other funds) is
Rs. 167 lakhs (31 March 2014 - Rs. 106 lakhs)
(B) Defined benefit plan:
Gratuity is a defined benefit plan covering eligible employees. The
plan provides for a lump sum payment to vested employees on retirement,
death while in employment or termination of employment of an amount
equivalent to 15 days salary for each completed year of service.
Vesting occurs on completion of five years of service.
NOTE 8
SEGMENT INFORMATION
The Company is predominantly engaged in Real Estate. The operations of
the company do not qualify for reporting as business segments as per
the criteria set out under Accounting Standard 17 (AS-17) on "Segment
ReportingÂ. The Company is operating in India hence there is no
reportable geographic segment. Accordingly no disclosure is required
under AS-17.
NOTE 9
OPERATING LEASES
Where the Company is Lessee:
The Company has entered into operating lease arrangements for certain
facilities and office premises. The leases are non-cancellable and
range over a period of 2 years to 5 years and may be renewed for a
further period based on mutual agreement of the parties. The lease
agreements provide for an increase in the lease payments by 10% to 15%
in few cases.
Rental expense for operating leases included in the Statement of Profit
and Loss for the year is Rs. 492 lakhs [Previous Year - Rs. 278 Lakhs].
Where the Company is Lessor:
The Company has entered into operating lease arrangements for certain
surplus facilities. The lease is non-cancellable for a period of 1 year
to 7 years and may be renewed for a further periods based on mutual
agreement of the parties. The lease agreements provide for an increase
in the lease receipts by 5% to 15% in few cases.
Rental income from operating leases included in the Statement of Profit
and Loss for the year is Rs. 129 lakhs [Previous Year - Rs. 118 Lakhs].
NOTE 10
RELATED PARTY TRANSACTIONS
A. List of related Parties
Related Parties (as identified by the Management) are classified as:
i. Subsidiary Companies
1. Bellflower Properties Private Limited
2. Tuscan Real Estate Private Limited
3. Jasmine Hospitality Private Limited
4. Lilac Hospitality Private Limited
5. Olive Realty Private Limited
6. Regenesis Project Management Company Private Limited
7. Sylvan Acres Realty Private Limited
8. Yashowardhan Promoters and Developers Private Limited
9. Regenesis Facility Management Company Private Limited
10. Kolte-Patil Real Estate Private Limited
11. PNP Retail Private Limited
12. Snowflower Properties Private Limited
13. PNP Agrotech Private Limited
ii. Joint Ventures
1. Kolte-Patil I-Ven Townships (Pune) Limited
2. Corolla Realty Limited
iii. Key Management Personnel and relatives of Key Management Personnel
a. Key Management Personnel
1. Mr. Rajesh Patil
2. Mr. Naresh Patil
3. Mr. Milind Kolte
4. Mrs. Sunita Kolte
5. Mrs. Vandana Patil
6. Mr. Sujay Kalele
7. Mr. Vastant Gaikwad
8. Mrs. Shradhha Jain
b. Relatives of Key Management Personnel
1. Mrs. Sunita Patil
2. Ms. Ankita Patil
3. Mr. Digambar Kolte
4. Mrs. Pramila Kolte
5. Mr. Nirmal Kolte
6. Mr. Pradeep Kolte
iv. Entities over which the Company, Subsidiary Companies or key
management personnel or their relatives, exercise
NOTE 11
significant influence
1. Ankit Enterprises
2. Kolte-Patil Homes
3. KP-Rachana Real Estate LLP
4. Sanjivani Integrated Township LLP
5. Bouvardia Developers LLP
6. Ruturang Developers LLP
7. KP-SK Management LLP
8. Kolte-Patil Enterprises
NOTE 12
DEPRECIATION RATES
During the year, pursuant to the notification of Schedule II to the
Companies Act, 2013 with effect from 1 April 2014, the Company has
revised the estimated useful life of its assets to align the useful
life with those specified in Schedule II.
Pursuant to the transition provisions prescribed in Schedule II to the
Companies Act, 2013, the Company has fully depreciated the carrying
value of assets, net of residual value, where the remaining useful life
of the asset was determined to be nil as on 1 April 2014, and has
adjusted an amount of Rs. 88 lakhs (net of deferred tax of Rs. 45
lakhs) against the opening Surplus balance in the Statement of Profit
and Loss under Reserves and Surplus.
The depreciation expense in the Statement of Profit and Loss for the
year is higher by Rs. 116 lakhs consequent to the change in the useful
life of the assets.
NOTE 13
DETAILS OF CSR EXPENDITURE
a) Gross amount required to be spend by the Company during the year is
Rs. 115 lakhs.
b) Amount spend during the year H Nil
NOTE 14
AGING OF RECEIVABLES
Trade receivables outstanding as at the balance sheet date include
amounts of Rs. 2,340 lakhs relating to dues from certain parties that
are outstanding for more than 6 months from the date they became due.
As the Company continues to have business relationship and arrangements
with these parties, the Company is confident of recovering these dues
in the normal course of business. All these dues are considered good
for recovery and hence no provision is considered necessary.
NOTE 15
DOMESTIC TRANSFER PRICING
The Company enters into "domestic transactions with specified
parties that are subject to the Transfer Pricing regulations under the
Income Tax Act, 1961 ('regulations'). The pricing of such domestic
transactions will need to comply with the Arm's length principle under
the regulations. These regulations, inter alia, also required the
maintenance of prescribed documents and information including
furnishing a report from an accountant which is to be filed with the
Income tax authorities.
The Company has undertaken necessary steps to comply with the
regulations. The management is of the opinion that the domestic
transactions are at arm's length, and hence the aforesaid legislation
will not have any impact on the financial statements, particularly on
the amount of tax expense and that of provision for taxation.
NOTE 16
EMPLOYEE STOCK OPTION SCHEME
a) Employee stock option scheme (ESOS 2014)
The ESOS was approved by Board of Directors of the Company on 13 August
2014 and thereafter by the shareholders on 13 September 2014. A
Nomination and Remuneration committee comprising of independent
directors of the company administers the ESOS plan. Each option carries
with it the right to purchase one equity share of the company. 835,000
options have been granted at a predetermined rate of Rs. 141/- per
share and 20,000 options are granted at Rs. 145/-per share. The maximum
exercise period is 5 year from the date of vesting.
b) The compensation cost of stock option granted to employees has been
accounted by the Company using the intrinsic value method.
The guidance note on accounting of employee share based payments issued
by the Institute of Chartered Accountants of India requires the
disclosure of pro forma net results and EPS both basic & diluted, had
the Company adopted the fair value method. Had the Company accounted
these options under fair value method, amortizing the stock
compensation expense thereon over the vesting period, the reported
profit for the year ended 31 March 2015 would have been lower by Rs. 43
lakhs (Previous year: Rs. Nil) and Basic and diluted EPS would have
been revised to Rs. 5.70 per share (Previous year Rs. 6.12 per share)
and Rs. 5.69 per share (Previous year Rs. 6.12 per share) respectively
as compared to Rs. 5.76 per share (Previous year Rs. 6.12 per share)
and Rs. 5.75 per share (Previous year Rs. 6.12 per share) without such
impact.
c) The fair value of the stock option is calculated through the use of
option pricing models, requiring subjective assumptions which greatly
affect the calculated values. The said fair value of the options have
been calculated using Binomial lattice option pricing model,
considering the expected weighted average term of the options to be 1
year from the date of vesting, an expected dividend rate of 2% on the
underlying equity shares, a risk free rate in the range of 7.70% -
8.50% and weighted average volatility in the share price in the range
of 69.36% - 71.14%. The expected volatility is based on historical
volatility of the share price after eliminating the abnormal price
fluctuations. The forfeiture/lapse estimated rate is based on
historical employee turnover rates and future lapse expectations.
NOTE 17
DISCLOSURES UNDER ACCOUNTING STANDARDS 14 - AMALGAMATION :
DETAILS OF AMALGAMATION OF OAKWOOD IN THE PREVIOUS YEAR
In terms of the Scheme of Arrangement (the Scheme), Oakwoods
Hospitality Private Limited, wholly owned subsidiary of the Company
(referred to as 'Transferor Company'), was merged with the Company
(Transferee Company) in the previous year. Upon which the undertaking
and the entire business, including all assets and liabilities of the
Transferor Company were transferred to and vested in the Transferee
Company. The amalgamation was accounted under the pooling of interest
method and the assets and liabilities transferred were recorded at
their book value. Oakwoods Hospitality Private Limited was engaged in
the business of establishing, developing, setting up, managing,
furnishing, providing various types of hospitality services
The Scheme filed by the Company was approved by the Honorable High
Courts of Judicature at Mumbai, with an appointed date of 1 April 2013
and an effective date of 18 March 2014 ('the Effective Date'), being
the date on which all the requirements under the Companies Act, 1956
were completed.
The Transferor Company was a wholly owned subsidiary of the Transferee
Company and its entire share capital was held by the Transferee Company
in its own name and/or jointly with its nominees. Accordingly, there
was no issue of shares of the Transferee Company to the shareholders
(including those holding the shares as nominees of the Transferee
Company) of the Transferor Company. Pursuant to the merger of the
Transferor Company with the Transferee Company, the investment in the
shares of the transferor Company, appearing in the books of account of
the Transferee Company stand cancelled.
NOTE 18
PREVIOUS YEAR'S FIGURES
Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
Mar 31, 2014
1. BACKGROUND
Kolte-Patil Developers Limited ("the Company") is a Company registered
under the Companies Act, 1956. It was incorporated on 25th November
1991. The Company is primarily engaged in business of construction of
residential, commercial; IT Parks along with renting of immovable
properties and providing project management services for managing and
developing real estate projects.
2. Contingent liabilities (to the extent not provided for)
(Rs. in Lakhs)
Particulars As at As at
31 March 2014 31 March 2013
(a)Claims against the Company not
acknowledged as debt * 2,152 1,960
(b) Income Tax matters (pending in
Appeal) 2,142 3,296
(c) Guarantees issued by the Company on
behalf of Subsidiary Com- 15,600 12,500
panies and Associates **
Total 19,8941 17,756
*in the opinion of the management the above claims are not sustainable
and the Company does not expect any outflow of economic resources in
respect of above claims and therefore no provision is made in respect
thereof.
**The Company does not expect any outflow of resources in respect of
the Guarantees issued.
3. Domestic Transfer Pricing
The Company enters into "domestic transactions" with specified parties
that are subject to the Transfer Pricing regulations under the Income
Tax Act, 1961 (''regulations''). The pricing of such domestic
transactions will need to comply with the Arm''s length principle under
the regulations. These regulations, inter alia, also required the
maintenance of prescribed documents and information including
furnishing a report from an accountant which is to be filed with the
Income tax authorities.
The Company has undertaken necessary steps to comply with the
regulations. The management is of the opinion that the domestic
transactions are at arm''s length, and hence the aforesaid legislation
will not have any impact on the financial statements, particularly on
the amount of tax expense and that of provision for taxation.
4. Disclosures under Accounting Standards 14 -Amalgamation : Details
of Amalgamation of Oakwood
In terms of the Scheme of Arrangement (the Scheme), Oakwoods
Hospitality Private Limited, wholly owned subsidiary of the Company
(referred to as Transferor Company''), has been merged with the Company
(Transferee Company), upon which the undertaking and the entire
business, including all assets and liabilities of the Transferor
Company stand transferred to and vested in the Transferee Company. The
amalgamation has been accounted under the pooling of interest method
and the assets and liabilities transferred have been recorded at their
book value. Oakwoods Hospitality Private Limited was engaged in the
business of establishing, developing, setting up, managing, furnishing,
providing various types of hospitality services
The Scheme filed by the Company has been approved by the Hon''ble High
Court of Judicature at Mumbai, with an appointed date of 1 April, 2013
and an effective date of 18th March, 2014 (''the Effective Date''), being
the date on which all the requirements under the Companies Act, 1956
have been completed.
The Transferor Company is a wholly owned subsidiary of the Transferee
Company and its entire share capital is held by the Transferee Company
in its own name and/or jointly with its nominees. Accordingly, there is
no issue of shares of the Transferee Company to the shareholders
(including those holding the shares as nominees of the Transferee
Company) of the Transferor Company. Pursuant to the merger of the
Transferor Company with the Transferee Company, the investment in the
shares of the transferor Company, appearing in the books of account of
the Transferee Company is stand cancelled.
Details of assets and liabilities acquired on amalgamation and
treatment of the difference between the net assets acquired and cost of
investment in the Transferee Company by the Transferor Company:
5. Employee Benefits
The details of employee benefits as required under Accounting Standard
15 ''Employee Benefits'' is given below
(A) Defined Contribution Plan:
Amount recognized as an expense in the Statement of Profit and Loss in
respect of Defined Contribution Plans (Provident and other funds) is Rs.
106 lakhs (31 st March, 2013 Rs. 96 lakhs)
(B) Defined benefit plan:
Gratuity is a defined benefit plan covering eligible employees. The
plan provides for a lump sum pay- ment to vested employees on
retirement, death while in employment or termination of employment of
an amount equivalent to 15 days salary for each completed year of
service. Vesting occurs on completion of five years of service.
Disclosure as required under Accounting Standard - 15 (Revised) on
"Employee Benefits" in respect of defined benefit plan is as under:
iv. In respect of Funded Benefits with respect to gratuity, the fair
value of Plan assets represents the amounts invested through "Insurer
Managed Funds"
6. Segment Information
The Company is predominantly engaged in Real Estate. The operations of
the company do not qualify for reporting as business segments as per
the criteria set out under Accounting Standard 17 (AS-17) on "Segment
Reporting". The Company is operating in India hence there is no
reportable geographic segment. Accordingly no disclosure is required
under AS-17.
7. Operating Leases
The Company has taken and given certain facilities and office premises
under operating lease basis which include leases that are renewable on
a yearly basis and cancellable at the Company''s option.
Rental income from operating leases included in the Statement of Profit
and Loss for the year is Rs. 118 Lakhs [Previous Year-Rs. 61 Lakhs].
Rental expense for operating leases included in the Statement of Profit
and Loss for the year is Rs. 278 Lakhs [Previous Year-126 Lakhs].
8. Earnings 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.
* Amount less than Rs. 1 lakh
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.
Note: Figures in bracket relate to the previous year.
41. Related Party Transactions A. List of related Parties
Related Parties (as identified by the the Management) are Classified as
: i. Subsidiary Companies
1. Bellflower Properties Private Limited
2. Tuscan Real Estate Private Limited
3. Jasmine Hospitality Private Limited
4. Lilac Hospitality Private Limited
5. Oakwoods Hospitality Private Limited(Merged with the Company w.e.f.
1st April, 2013)
6. Olive Realty Private Limited
7. Regenesis Project Management Company Private Limited
8. Sylvan Acres Realty Private Limited
9. Yashowardhan Promoters and Developers Private Limited
10. Regenesis Facility Management Company Private Limited
11. Kolte-Patil Real Estate Private Limited
12. PNP Retail Private Limited
13. Snowflower Properties Private Limited
14. PNP Agrotech Private Limited ii. Joint Ventures
1. Kolte-Patil l-Ven Townships (Pune) Limited
2. Corolla Realty Limited
iii. Key Management Personnels and Relatives of Key Management
Personnels
a. Key Management Personnel
1. Mr. Rajesh Patil
2. Mr. Naresh Patil
3. Mr. Milind Kolte
4. Mrs. Sunita Kolte
5. Mrs. Vandana Patil
b. Relatives of Key Management Personnels
1. Mrs. Sunita Patil
2. Ms. Ankita Patil
3. Mr. Digambar Kolte
4. Mrs. Pramila Kolte
5. Mr. Nirmal Kolte
6. Mr. Pradeep Kolte
iv. Entities over which the Company, Subsidiary Companies or key
management personnel or their relatives, exercise significant
influence
1. Ankit Enterprises
2. Kolte-Patil Homes
3. KP-Rachana Real Estate LLP
4. Sanjivani Integrated Township LLP
5. Bouvardia Developers LLP
6. Green Olive Venture
7. Vibhu-KPDL Venture
8. Kolte-Patil Enterprises
Mar 31, 2013
1. BACKGROUND
Kolte - Patil Developers Limited ("the Company") is a Company
registered under the Companies Act, 1956. It is incorporated on 25th
November 1991. The Company is primarily engaged in business of
construction of residential, commercial; IT Parks along with renting of
immovable properties and providing project management services for
managing and developing real estate projects.
2. EVENTS OCCURRING AFTER BALANCE SHEET DATE
No significant events which could affect the financial position as on
31st March 2013, to a material extent have been reported by the
Company, after the balance sheet date till the signing of report.
3. PRIOR PERIOD AND EXTRA ORDINARY 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 prior periods.
The Securities for the Term Loan are as
i Axis Bank Limited
Charge secured by registered simple mortgage of Showroom no. 3 and no.
6 on the ground floor of the building Delta II and first floor and
terrace thereon of the Amenity Building of the project Giga Space
constructed on S.N. 198/1B situated at Mouze Lohagaon Corporation and
within district Taluka Haveli
The Company has provided personal guarantees of Mr. Rajesh Patil and
Mr. Milind Kolte, Directors of the Company.
Repayment Term - to be repaid in equal 81 monthly instalments
commencing from January 2008 and ending on August, 2014.
ii IDBI - Bank term Loan (Term Loan Rs. 2102.00 lakhs.)
a Primary : Mortgage of land at Survey No. 14 Hissa No 14/3/1/1 to 4,
14/4/1, 14/5/1/2to4 admeasuring 34400 sq. mtr Located at Pimple Nilakh,
in Pune. b Collateral: 1) Extension of Regd. Mortgage of Boat Club
Road land, final plot no. 188, S. No. 347-B, 347/A 3C/1A/1, 348A/1/1
and 348A/1/2A, total area 113883 sq. ft. at Pune
2) Office No.101B, 102, 105D, 106, 107AB, 112C,
201-202-203-204-205-206-207-208, First and second floors, "City
Point"S. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A Hissa No. 1/1, 348A
Hissa No. 1/2A, final plot no.188 CST No. 14(part) 14/1, 14/2 Dhole
Patil Road Pune -01
c. Personal Guarantees given by Directors: The Company has provided
personal guarantees of Mr. Rajesh Patil, Mr Naresh Patil, Mr. Milind
Kolte and Mrs. Sunita Kolte, Directors of the Company.
Repayment Term - to be repaid in 12 equal quarterly instalments
commencing from December 1, 2011 and ending on September 1, 2014.
iii Vijaya Bank
(Term Loan Rs. 2000.00 lakhs.)
a. Proposed sixth, seventh, eighth and ninth floor admeasuring 318,421
sq. ft of the proposed building City Bay located at village,
Sangamwadi, Tal. Haveli, Dist. Pune
Repayment Term - The Principal is to be paid in 72 equal instalment
after a moratoriam period of 24 month from first disburesement.
iv Loan From SBI -
(Term Loan Rs. 4300.00 lakhs)
a Primary Security : Land (Adm 6 acers 29 gunthas i.e. 292941 sq. ft.)
for phase I & II and buildings to be constructed at S. No. 33, Kannur
Village, Bidarahalli Hobli Nr, Yelakhanka, Bangalore East Taluka b
Collateral Security : Land adm 5400 sq ft and house property
(Basement G 2adm 9200 built up) at No. 978 (amalgamation of
978&979),HAL 2nd stage Indiranagar Bangalore.
Prime: Negative lien on unsold flats. c The Company has provided
personal guarantees of Mr. Rajesh Patil, Mr, Naresh Patil, Mr. Milind
Kolte and Mrs. Vandana Patil, Directors of the Company.
Repayment Term - Quarter Ending - Dec 2014 - Rs. 10.00 Crs, March 2015
- Rs.10 Crs, June 2015-Rs. 10 crs & Sept 15- Rs.15.00 Crs
v Loan Against Property from IDBI Bank
a. Primary Security - Office No. 101B, 102, 105D, 106, 107AB, 112C,
201-202-203-204-205-206-207-208, 1st & 2nd floors, city point S. no.
347B, 347A, Hissa No. 3C/1A/1, 348A Hissa No. 1/1, 348A Hissa No.
1/2A, Final plot no 188 CST No. 14 (part) 14/1, 14/2 Dhole Patil Road,
Pune 01.
b. Collateral Security - Extension of Regd. Mortgage of Boat Club
Road, land final plot no, 188, S. No. 347
B, 347/A 3C/1A/1, 348A/1/1 and 348/A/1/2A, total area 113883 sq.ft. at
pune
Repayment Term - 23 quarterly installments commencing from 1st April,
2014.
vi Term Loan from IDBI Bank (Term Loan Rs. 1000 Lakhs)
a. Primary Security - Floor No. Fround to 5th Floor of Building named
City Bay situated at land admeasuring 3606.55 sq.mtrs situated at plot
no. 188, tower 3 named as city bay, dhole patil road pune 411001
b. Collateral Security - Extension of Regd. Mortgage of Boat Club
Road, land final plot no, 188, S. No. 347
B, 347/A 3C/1A/1, 348A/1/1 and 348/A/1/2A, total area 113883 sq.ft. at
pune
Repayment Term - 14 monthly installments commencing from 1st December
2013.
i IDBI Bank
(Nature of Credit Facility Cash Credit: Rs. 2000 Lakhs)
a Primary Security: Hypothecation of Construction Material, WIP,
receivables and Plant and Machinery with all fixture and fittings
attached imbedded fastened thereon and also other plants machinery
goods, articles chattels. Things, stores, motor trucks motor cars,
motor vehicles that are may be lying loose kept possessed under the use
process or in otherwise under control of the Company b Collateral
Security:
1 Extension of Regd. Mortgage of Boat Club Road land, final plot no.
188, S. No. 347-B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A, total area
113883 sq. ft. at Pune.
2 Regd. Mortgage of land at C.S. No. 23/170 A & B, Aundh Land. Total
Area 572587 sq. ft.
3 Office No. 101B, 102, 105D, 106, 107AB, 112C,
201-202-203-204-205-206-207-208. Total Area 11845 sq.ft. First and
Second Floors, City Point, S. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A
Hissa No. 1/1, 348A Hissa No. 1/2A, final plot no. 188 CST No. 14
(part) 14/1, 14/2
c The Company has provided personal guarantees of Mr. Rajesh Patil, Mr
Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the
Company.
4. EARNINGS PER SHARE
The earnings per share is calculated in accordance with Accounting
Standard 20 "Earnings Per Share" issued by The Institute of
Chartered Accounts of India. 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. Diluted EPS is the same
as that of Basic EPS for financial year 2012-13, as there were no
equity shares outstanding as on 31st March, 2013 and 31st March 2012.
5. CONTINGENT LIABILITIES
(Rs. In Lakhs)
Sr. Particulars 31.03.2013 31.03.2012
No.
1 Claims not Acknowledged as debts* 1,960.18 1,960.09
2 Guarantees issued by the Company on
behalf of Subsidiary Companies 12,500.00 20,550.00
and Associates**
3 Income Tax Matters (Pending in Appeals) 3,295.94 3,295.94
*in the opinion of the management the above claims are not sustainable
**The Company does not expect any outflow of resources in respect of
the Guarantees issued.
6. INVENTORIES
Inventory comprises of finished property and properties under
construction (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
construction.
7. The Company is not a manufacturing or trading Company, hence
quantitative and other disclosures as required by paragraph 3 (ii) (a),
(b) and paragraph 4c of Part II of Schedule VI to The Companies Act,
1956 are not applicable to the Company.
8. 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.
9. Balances standing at the debit or credit in the accounts of
various parties are subject to confirmation and reconciliation.
10. Interest amount debited in Profit and Loss Account is after
considering interest received and other receipts.
11. Estimated amount of contract remaining to be executed on capital
account and not provided for is NIL. (Previous Year NIL)
12. SEGMENT ACCOUNTING
Accounting Standards interpretation (ASI) 20 Dt. 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, the Company is
engaged in various segments namely Real Estate Development, Retail and
Hospitality. However, in financial year 2012-2013 there is only one
reportable segment namely Real Estate Development.
13. 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 2013 on account of impairment
in addition to the provision already made in the books.
14. 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 amortized @ 2% per annum
considering the period of lease.
15. CONTRIBUTION TO GROUP GRATUITY SCHEME OF LIC
In accordance with 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 recognized
during the year shown under the head ''Employee Cost''.
16. In the year 2007-08, the Company has incurred Rs. 2,329.07 lakhs
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. 310.54 lakhs charged to Profit and
Loss Account as IPO Expenses of the current year.
17. Last year''s figures have been regrouped, reclassified, re
arranged wherever necessary.
Mar 31, 2012
1. BACKGROUND
Kolte - Patil Developers Limited ("the Company") is a Company
registered under the Companies Act, 1956. It was incorporated on 25th
November 1991. The Company is primarily engaged in business of
construction of residential, commercial; IT Parks along with renting of
immovable properties and providing project management services for
managing and developing real estate projects.
2. EVENTS OCCURRING AFTER BALANCE SHEET DATE
No significant events which could affect the financial position as on
31st March 2012, to a material extent have been reported by the
Company, after the balance sheet date till the signing of report.
3. PRIOR PERIOD AND EXTRA ORDINARY 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 prior periods.
i Of the Above Shares, 2,19,02,252 shares are allotted as fully paid by
way of bonus Shares by capitalization of General Reserve and
2,88,72,185 Shares allotted as Right Shares on 8th December 2006 at a
premium of Rs 18.18 each.
ii The Company declares and pays dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting. The Board of
Directors in their meeting on 29th May, 2012, proposed a final dividend
of Rs 1.60 per equity share. The Proposal is subject to the approval of
shareholders at the Annual General meeting. The total dividend
appropriation for the year ended 31st March, 2012 amounted to Rs
1,409.08 Lakhs including Corporate Dividend Tax of Rs 196.68 Lakhs.
During the year ended 31st March, 2011, the amount of per share
dividend recognized as distributions to equity shareholders was Rs 1.60.
The total dividend appropriation for the year ended 31st March, 2011
amounted to Rs 1,409.08 Lakhs including Corporate Dividend Tax of
Rs196.68 Lakhs.
In the fiscal year 2006, the Company instituted the Employee Stock
Option Scheme 2006. The Board of Directors and shareholders approved
the scheme in the month September 2006 and October 2006 respectively,
which provides for the issue of 780,000 Equity Shares to the employees.
The Remuneration Committee administers the Employees Stock Option
Scheme 2006 (ESOS) and options were granted in month of September 2006.
The Company has allotted 2,28,277 shares till 31st March 2010. The ESOS
outstanding at the beginning of 2010-11 was 551,723 shares. During the
2010-11, the Company has issued 2,93,655 Equity Shares of Rs 10/- each
at a premium of Rs.30/- per share to each employee under the scheme and
the remaining 2,58,068 shares lapsed.
iv The Company has only one class of shares referred to as equity
shares having a par value of Rs 10/-. Each holder of equity shares is
entitled to one vote per share.
The Securities for the Term Loan are as follows:
i Axis Bank Limited
Charge secured by registered simple mortgage of Showroom no. 3 and no.
6 on the ground floor of the building Delta II and first floor and
terrace thereon of the Amenity Building of the project Giga Space
constructed on S.N. 198/1B situated at Mouze Lohagaon Corporation and
within district Taluka Haveli The Company has provided personal
guarantees of Mr. Rajesh Patil and Mr. Milind Kolte, Directors of the
Company.
Repayment Term - To be repaid in equal 81 monthly installments
commencing from January 2008 and ending by August, 2014.
ii IDBI Bank Limited
(Term Loan Rs 3000.00 Lakhs.)
a Primary : Mortgage of land at Survey No. 14 Hissa No 14/3/1/1 to 4,
14/4/1, 14/5/1/2to4 admeasuring 34400 sq. mtr Located at Pimple Nilakh,
in Pune.
b Collateral: 1) Extension of Regd. Mortgage of Boat Club Road land,
final plot no. 188, S. No. 347-B, 347/A 3C/1A/1, 348A/1/1 and
348A/1/2A, total area 113883 sq. ft. at Pune 2) Office No.101B, 102,
105D, 106, 107AB, 112C, 201-202-203-204-205-206-207-208, First and
second floors, "City Point"S. No. 347B, 347A, Hissa No. 3C/1A/1,
348 A Hissa No. 1/1, 348A Hissa No. 1/2A, final plot no.188 CST No.
14(part) 14/1, 14/2 Dhole Patil Road Pune -01
c. Personal Guarantees given by Directors: The Company has provided
personal guarantees of Mr. Rajesh Patil, Mr Naresh Patil, Mr. Milind
Kolte and Mrs. Sunita Kolte, Directors of the Company. Repayment Term
- to be repaid in 12 equal quarterly installments commencing from
December 1, 2011 and ending on September 1, 2014.
iii Corporation Bank Ltd
(Term Loan Sanctioned Rs 500.00 Lakhs. Availed Rs 110.00 Lakhs)
a. All that piece and parcel of commercial property bearing corporation
No. 23, old No. 28, B.B.M.P.- P.I.D. No. 76-19-23, situated at
Richmond Road, Richmond Town, Bangalore 560025, B.B.M.P ward No. 76,
measuring 1763.408 sq.mt. or 18981.323 sq.ft. (in detailed described in
Schedule B of Deposit of Title deed dated 28.09.2010)
b Hypothecation of Building materials i.e. steel, cement etc. purchased
or to be purchased by the Company, kept or to be kept at the site or
any other place for construction of Building for Richmond Road,
Bangalore Project (as mentioned in Schedule A of Common Deed of
Hypothecation of Movables/Assets/Debts dated 28.09.2010).
The amount of Loan outstanding as of 31st March 2011 was Rs 111 Lakhs
and the same shown as current maturities of long term Debt under
Current Liabilities. During the year 2011-12, the Company has repaid
the outstanding amount.
The Securities for the Short Term Loan are as i IDBI Bank Limited
(Nature of Credit Facility Cash Credit: Rs 2500 Lakhs, Bank Guarantee: Rs
500 Lakhs) a Primary Security: Hypothecation of Construction Material,
WIP, receivables and Plant and Machinery with all fixture and fittings
attached imbedded fastened thereon and also other plants machinery
goods, articles chattels. Things, stores, motor trucks motor cars,
motor vehicles that are may be lying loose kept possessed under the use
process or in otherwise under control of the Company b Collateral
Security:
1 Extension of Regd. Mortgage of Boat Club Road land, final plot no.
188, S. No. 347-B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A, total area
113883 sq. ft. at Pune.
2 Regd. Mortgage of land at C.S. No. 23/170 A & B, Aundh Land. Total
Area 572587 sq. ft.
3 Office No. 101B, 102, 105D, 106, 107AB, 112C,
201-202-203-204-205-206-207-208. Total Area 11845 sq.ft. First and
Second Floors, City Point, S. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A
Hissa No. 1/1, 348A Hissa No. 1/2A, final plot no. 188 CST No. 14
(part) 14/1, 14/2 c The Company has provided personal guarantees of Mr.
Rajesh Patil, Mr Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte,
Directors of the Company.
4. RELATED PARTY TRANSACTION (ACCOUNTING STANDARD - 18)
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.
5. CONTINGENT LIABILITIES
(Rs.in Lakhs)
Sr. Particulars 31.03.2012 31.03.2011
No.
1 Claims not Acknowledged as debts* 1,960.09 382.00
2 Guarantees issued by the
Company on behalf of Subsidiary 20,550.00 17,000.00
Companies and Associates**
3 Income Tax Matters (Pending
in Appeals) 3,295.94 3,295.94
*in the opinion of the management the above claims are not sustainable
**The Company does not expect any outflow of resources in respect of
the Guarantees issued.
6. INVENTORIES
Inventory comprises of finished property and properties under
construction (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
construction.
7. 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.
8. Balances standing at the debit or credit in the accounts of
various parties are subject to confirmation and reconciliation.
9. Interest amount debited in Profit and Loss Account is after
considering interest received and other receipts.
10. Estimated amount of contract remaining to be executed on capital
account and not provided for is NIL (Previous Year NIL).
11. SEGMENT ACCOUNTING
Accounting Standards interpretation (ASI) 20 Dt. 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, the Company is
engaged in various segments namely Real Estate Development, Retail and
Hospitality. However, in financial year 2011-2012 there is only one
reportable segment namely Real Estate Development.
12. 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 2012 on account of impairment
in addition to the provision already made in the books.
13. 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 amortized @ 2% per annum
considering the period of lease.
14. CONTRIBUTION TO GROUP GRATUITY SCHEME OF LIC
In accordance with 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 recognized
during the year shown under the head 'Employee Cost'.
15. In the year 2007-08, the Company has incurred Rs 2,329.07 Lakhs 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 465.81 Lakhs charged to Profit and Loss
Account as IPO Expenses of the current year.
16. The Revised Schedule VI has become effective from 1 st April, 2011
for the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
Mar 31, 2011
1. BACKGROUND
Kolte - Patil Developers Limited ("the Company") is a Company
registered under the Companies Act, 1956. It was incorporated on 25th
November 1991. The Company is primarily engaged in business of
construction of residential, commercial, IT Parks along with renting of
immovable properties and providing project management services for
managing and developing real estate projects.
2. EVENTS OCCURRING AFTER BALANCE SHEET DATE
No significant events which could affect the financial position as on
31st March 2011, to a material extent have been reported by the
Company, after the balance sheet date till the signing of report.
3. PRIOR PERIOD AND EXTRA ORDINARY 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 prior periods.
4. Sitting Fees
The Company pays Rs. 20,000/- to each Non-Executive Director of the
Company towards sitting fee for attending each Board Meeting.
5. EARNINGS PER SHARE
The Earnings Per Share is calculated in accordance with Accounting
Standard 20 "Earnings Per Share" issued by The Institute of Chartered
Accountants of India. The earnings considered in ascertaining the
Companys 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. Diluted EPS is the same as that of
Basic EPS for financial year 2010- 11, as there are no potential equity
shares outstanding as on 31st March, 2011.
6. Based on the information available with the Company, the amount
payable to Micro and Small Medium Enterprises as on Balance Sheet date
is Rs. 0.38 Lakhs. The above disclosure has been determined to the
extent of such parties have been identified on the basis of information
available with the Company.
7. DETAILS OF SECURED LOANS AND SECURITY OFFERED
I. Axis Bank Limited:
Charge secured by registered simple mortgage of Showroom no. 3 and no.
6 on the ground floor of the building Delta II and first floor and
terrace thereon of the Amenity Building of the project Giga Space
constructed on S.N. 198/1B situated at Mouze Lohagaon Corporation and
within district Taluka Haveli.
II. IDBI Bank Limited:
(Nature of Credit Facility Cash Credit: Rs. 2,500 Lakhs, Bank
Guarantee: Rs. 500 Lakhs)
a. Primary Security: Hypothecation of Construction Material, WIP,
receivables and Plant and Machinery with all fixture and fittings
attached imbedded fastened thereon and also other plants machinery
goods, articles chattels. Things, stores, motor trucks motor cars,
motor vehicles that are may be lying loose kept possessed under the use
process or in otherwise under control of the Company
b. Collateral Security:
1. Extension of Regd. Mortgage of Boat Club Road land, final plot no.
188, S. No. 347-B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A, total area
113883 sq. ft. at Pune.
2. Regd. Mortgage of land at C.S. No. 23/170 A & B, Aundh Land. Total
Area 572587 sq. ft.
3. Office No. 101B, 102, 105D, 106, 107AB, 112C,
201-202-203-204-205-206-207-208. Total Area 11845 sq.ft. First and
Second Floors, City Point, S. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A
Hissa No. 1/1, 348A Hissa No. 1/2A, final plot no. 188 CST No. 14
(part) 14/1, 14/2 Dhole Patil Road, PuneÃ411001.
III. IDBI Bank Limited:
(Term Loan Rs. 3,000.00 Lakhs.)
Primary:
Mortgage of land at Survey No. 14 Hissa No 14/3/1/1 to 4
,14/4/1,14/5/1/2 to 4 admeasuring 34400 sq. mtr Located at Pimple
Nilakh, in Pune
Collateral:
Extension of Regd. Mortgage of Boat Club Road land, final plot no. 188,
S. No. 347-B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A, total area 113883
sq. ft. at Pune
Office No.101B, 102, 105D, 106, 107AB, 112C,
201-202-203-204-205-206-207-208, First and second floors, "City
Point"S. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A Hissa No. 1/1, 348A
Hissa No. 1/2A, final plot no.188 CST No. 14(part) 14/1, 14/2 Dhole
Patil Road Pune Ã01
Additional collateral security by way of Mortgage of land at Survey No.
17 Hissa No 17/1/1/2 to 3, Survey No.13, Hissa No.13/1/2 to 4
admeasuring land area of 27660.13 sq. mtr located at Pimple Nilakh, in
Pune
IV. Corporation Bank Limited:
(Term Loan Sanctioned Rs. 500.00 Lakhs. Availed Rs.110.00 Lakhs)
Security Offered:
a. All that piece and parcel of commercial property bearing
corporation No. 23, old No. 28, B.B.M.P.- P.I.D. No. 76-19-23, situated
at Richmond Road, Richmond Town, Bengaluru 560025, B.B.M.P. ward No.
76, measuring 1763.408 sq.mt. or 18981.323 sq.ft. (in detailed
described in Schedule B of Deposit of Title deed dated 28.09.2010)
b. Hypothecation of Building materials i.e. steel, cement etc.
purchased or to be purchased by the Company, kept or to be kept at the
site or any other place for construction of Building for Richmond Road,
Bengaluru Project (as mentioned in Schedule A of Common Deed of
Hypothecation of Movables/Assets/Debts dated 28.09.2010).
8. RELATED PARTY TRANSACTION (ACCOUNTING STANDARD - 18)
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. List of Related Parties
i) Related Parties (as identified by the Management) are classified as:
Subsidiaries
1. Bellflower Properties Private Limited
2. I-Ven Kolte-Patil Projects (Pune) Private Limited
3. Jasmine Hospitality Private Limited
4. Lilac Hospitality Private Limited
5. Oakwoods Hospitality Private Limited
6. Olive Realty Private Limited
7. Regenesis Project Management Company Private Limited
8. Sylvan Acres Realty Private Limited
9. Yashowardhan Promoters and Developers Private Limited
10. Regenesis Facility Management Company Private Limited
11. Kolte ÃPatil Real Estate Private Limited
12. PNP Retail Private Limited
13. Snowflower Properties Private Limited
Key Management Personnel Director Associates / Enterprises
Mr. Rajesh Patil,
Mr. Naresh Patil,
Mr. Milind Kolte,
Mrs. Sunita Kolte
Key Management Personnel Director of Associates / Enterprises
Mr. Harish Kumar Gurnani,
Mr Bhagwan Shivlani,
Arora Holdings (Mauritius) Limited, ICICI Venture Funds Management
Company Limited
Relatives of Key Management Personnel
Mrs. Vandana Patil, Mrs. Sunita Patil,
Mr. Ketan Kolte, Ms. Ketki Kolte, Ms. Ankita Patil,
Mr. Nirmal Kolte, Mr. Pradeep Kolte,
Mr. Digambar Kolte, Mrs. Pramila Kolte.
Associates/Enterprises /Joint Ventures over which key Management
Personnel have significant influence
Ankit Enterprises, Corolla Realty Private Limited, Kolte-Patil I-Ven
Townships (Pune) Private Limited, Kolte-Patil Enterprises, Kolte-Patil
Homes,Harshwardhan Co-operative Housing Society Limited, Green Olive
Venture, Vibhu-KPDL Venture, KP-Rachana Real Estate LLP.
9. CONTINGENT LIABILITIES
(Rs. in Lakhs)
Sr.
No. Particulars 31.03.2011
1. Claims not acknowledged as debts* 382.00
2. Guarantees issued by the Company on
behalf of Subsidiary Companies and Associates** 17,000.00
3. Income Tax Matters (Pending in Appeals) 3,295.94
* in the opinion of the management the above claims are not sustainable
** The Company does not expect any outflow of resources in respect of
the Guarantees issued.
10. The Company is not a manufacturing or trading Company, hence
quantitative and other disclosures as required by paragraph 3 (ii) (a),
(b) and paragraph 4c of Part II of Schedule VI to the Companies Act,
1956 are not applicable to the Company.
11. 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.
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 amount of contract remaining to be executed on capital
account and not provided for is NIL. (Previous Year NIL)
b) Share of profit of the Company for the year ended on 31st March 2011
is Rs.1223.57 Lakhs.
c) The credit in the capital account balance as on 31st March 2011 is
at Rs. 4,585.34 Lakhs.
15. INVESTMENT IN JOINT VENTURE
The Companys 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 Private Limited by forming an Association of
Persons named Green Olive Ventures. The Company has agreed to
contribute an amount of Rs. 250 Lakhs towards initial capital and has
agreed to contribute further capital as and when needed for Joint
Venture. The Company has contributed Rs. 1283.33 Lakhs up to 31st
March, 2011.
b) VibhuÃKPDL Venture
The Company, by virtue of an Agreement has entered into a Joint Venture
with Vibhu Developers Private Limited by forming an Association of
Persons named Vibhu- KPDL Venture. The Company has agreed to contribute
an amount of Rs. 1376.40 Lakhs towards initial capital and has agreed
to contribute further capital as and when needed for Joint Venture. The
Company has contributed Rs.1933.63 Lakhs up to 31st March, 2011.
16. SEGMENT ACCOUNTING
Accounting Standards interpretation (ASI) 20 Dt. 14.02.2004, issued by
the Accounting Standard Board of ICAI, on AS Ã 17, Segment reporting
clarifies that in case by applying the definition of "Business Segment
and Geographical Segment" given in AS-17, the Company is engaged in
various segments namely Real Estate Development, Retail and
Hospitality. However, in financial year 2010-2011 there is only one
reportable segment namely Real Estate Development.
17. In view of Accounting Standard required by AS-28 "Impairment of
Assets" issued by The Institute of Chartered Accountants of India
(ICAI), the Company has reviewed its fixed assets and does not expect
any loss as on 31st March 2011on 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 amortized @ 2% per annum
considering the period of lease.
19. CONTRIBUTION TO GROUP GRATUITY SCHEME OF LIC
In accordance with provision of Accounting Standard (AS) Ã 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 recognized
during the year shown under the head Employee Cost.
20. Employees Stock Option Scheme 2006 (ESOS)
In the fiscal year 2006, the Company constituted Employee Stock Option
Scheme 2006. The Board of Directors and shareholders approved the
scheme in the month September 2006 and October 2006 respectively, which
provides for the issue of 7,80,000 Equity Shares to the employees. The
Remuneration and Compensation Committee administers Employees Stock
Option Scheme 2006 (ESOS) and options were granted in the month of
September 2006.
During the year, the Company has issued 2,93,655 Equity Shares of Rs.
10/- each at a premium of Rs.30/- per share to each employee under the
Scheme.
21. In the year 2007-08, the Company has incurred Rs. 2,329.07 Lakhs
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. 465.81 Lakhs charged to Profit and
Loss Account as IPO Expenses of the current year.
22. Last years figures have been regrouped, reclassified and
rearranged whenever necessary.
Mar 31, 2010
1. Events Occurring After Balance Sheet Date:
No significant events which could affect the financial position as on
31st March, 2010, to a material extent have been reported by the
assessee, after the balance sheet date till the signing of report.
2. Prior Period And Extra Ordinary Items:
There are no material changes or credit which arises in the current
period, on account of errors or omissions in the preparation of
financial statements for one or more periods except the following:- The
Company has booked as expenditure related to the period September -
2008 to January - 2009 for Hyderabad office rent of Rs. 549 thousands.
3. Earnings Per Share:
The Earnings Per Shares is calculated in accordance with ÃAccounting
Standard 20 - Earnings Per Shareà issued by The Institute of Chartered
Accounts of India. The earnings considered in ascertaining the
CompanyÃs 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.
4. Based on the information available with the Company, the amount
payable to Micro and Small Medium Enterprises as on Balance sheet date
is Rs. 106 thousands, out of which Rs. 77 thousands are paid by the
Company. The above disclosure has been determined to the extent of such
parties have been identified on the basis of information available with
the Company. This has been relied upon by the auditors.
5. Details of Secured Loans And Security offered:
I. HDFC Bank Limited:
a. First Exclusive charge by way of assignment of rent receivables
from office premises admeasuring about 62170 Sq. Ft. on 3rd and 4th
Floor, in ÃDelta BuildingÃ, Giga Space, IT Park, Viman Nagar, situated
at F.P. 383, S. No. 198/1, Mouze-Lohagaon, Pune-411014.
b. Additional Security given as all that consisting of office premises
nos.301-A, 301-B, 301-C, on the 3rd Floor, and 401-A, 401-B & 401-C on
the 4th Floor totally admeasuring about 62,170 sq. ft. (5775.19 sq.
mtrs. Built Up) along with 62 Car parking Spaces in Delta Building,
Giga Space, IT Park, constructed on land bearing S. Nos. 198, Viman
Nagar, Mouze Lohagaon, Pune-411014, which is within the local limits of
the Pune Municipal Corporation within the Registration District - Pune,
Sub Registrar Taluka Haveli, District-Pune together rights to
entrances, passages and other easements belonging or appertaining to
the aforesaid premises and all fixtures and fittings attached to the
earth or anything attached to the earth or both present and future.
c. In addition to this personal guarantees of all Executive Directors.
II. Axis Bank Limited :
Charge secured by registered simple mortgage of Showroom no. 3 and no.6
on the ground floor of the building Delta II and first floor and
terrace thereon of the Amenity Building of the project Giga Space
constructed on S.N. 198/1B situated at Mouze Lohagaon Corporation and
within district Taluka Haveli.
III. IDBI Bank Limited :
(Nature of Credit Facility Cash Credit: Rs.25 Crores, Bank Guarantee:
Rs. 5 Crores)
a. Primary Security: Hypothecation of Construction Material, WIP and
receivables.
b. Collateral Security:
1. Extension of Regd. Mortgage of Boat Club Road land, final plot no.
188, S. No. 347-B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A, total area
113883 sq. ft. at Pune.
2. Regd. Mortgage of land at C.S. No. 23/170 A and B, Aundh Land.
Total Area 572587 sq. ft.
3. Office No. 101B, 102, 105D, 106, 107AB, 112C,
201-202-203-204-205-206-207-208. Total Area 11845 sq.ft. First and
Second Floors, City Point, S. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A
Hissa No. 1/1, 348A Hissa No. 1/2A, final plot no. 188 CST No. 14
(part) 14/1, 14/2 Dhole Patil Road, PuneÃ411001.
IV. IDBI Bank Ltd:- (Term Loan Rs. 30.00 Crores.)
a. Hypothecation of Construction Material, WIP and receivables.
The BorrowerÃs entire stock of Raw materials, Semi Finished and
finished goods, consumable stores & spares and such other movables
including book debts, bills whether documentary or clean and
outstanding monies receivables, property booking amount, deposit,
payments etc. which are subject to Escrow Account pertaining to the
residential projects viz. Glitterati 24K at Pimple Nilakh.
b. Collateral mortgage Ã
i. Land S.N. 14, Hissa No. 14/3/1/1/ to 4, 14/4/1, 14/5/1/2 to 4,
admeasuring area 34400 sq. mtrs., located at Pimple Nilakh, Pune.
ii. Land S.N. 14, Hissa No. 17/1/1/2 to 3, and survey no. 13/1/2 to 4,
admeasuring 27,660.13 sq.mtrs. located at Pimple Nilakh, Pune.
6. Related Party Transaction:
Related Party Disclosures as required by ÃAccounting Standard 18 -
Related Party DisclosuresÃ, issued by the Institute of Chartered
Accountants of India are given below:- a. List of Related Parties i)
Related Parties (as identified by the Management) are classified as:
Subsidiaries
1. Bellflower Properties Private Limited
2. I-Ven Kolte-Patil Projects (Pune) Private Limited
3. Jasmine Hospitality Private Limited
4. Lilac Hospitality Private Limited
5. Oakwoods Hospitality Private Limited
6. Olive Realty Private Limited
7. Regenesis Project Management Company Private Limited
8. Sylvan Acres Realty Private Limited
9. Yashowardhan Promoters and Developers Private Limited
10. Regenesis Facility Management Company Private Limited
11. Kolte ÃPatil Real Estate Private Limited
12. PNP Retail Private Limited
Key Management Personnel Director
Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte, Mrs. Sunita Kolte
Key Management Personnel Director of Associates/ Enterprises
Mr. Harish Kumar Gurnani, Arora Holdings
(Mauritius) Ltd.
Relatives of Key Management Personnel
Mr. Ketan Kolte, Ms. Ketki Kolte, Ms. Ankita
Patil, Mr. Nirmal Kolte, Mr. Pradeep Kolte
Associates/Enterprises /Joint Ventures over which Key Management
Personnel have significant influence
Ankit Enterprises,
Corolla Realty Private Limited,
Kolte-Patil I-Ven Townships (Pune) Private
Limited,
Kolte-Patil Enterprises,
Kolte-Patil Homes
Harshwardhan Co-Op. Housing Society
Limited
Green Olive Venture,Vibhu-KPDL Venture
7. Contingent Liabilities:
a. Contingent Liabilities not provided for:
(Rs. In Ã000)
Particulars Amount
i) Disputed Direct Tax Liability
1) Income Tax Outstanding Demand pertaining to
M/s. Ankit Enterprises in which Company is
having 75% shares 50,157
2) Income tax-Deduction u/s 80IA (Refer below
to point no.
c) 78,082
ii) Claims not Acknowledged as Debts
First Appeal No. 2951 of 2006 26,200
Total ( i + ii) 1,54,439
b. The Company has claimed deduction under Section 80-IA (4)(iii) of
the Income Tax Act, 1961 in respect of the profit arising from the
Information Technology Park à Giga Space. The total deduction claimed
upto financial year ending 31.03.2010 is Rs. 705,109 thousands. As per
the provisions of Section 80- IA(4)(iii), the industrial park should be
in accordance with the Industrial Park Scheme framed and should also be
notified by the Govt. under the said scheme. Accordingly, the Company
has received the approval vide notification no. 10
F.N.178/63/2009-ITA-I dated 19th Feb. 2010 from Ministry of Finance,
Department of Revenue, CBDT, under the said scheme. Moreover, the
Company has complied with all the conditions of the scheme as well as
Section 80-IA (4) (iii) and hence, is entitled to claim the deduction
under the said section. Therefore, the Company has not made any
provision in respect of tax on the profits of the Information
Technology Park Giga Space.
c. In respect of its Information Technology Park Projects viz. E-Space
located at Svy. No. 46/1, Vadgaon Sheri, Pune, the Company has claimed
the deduction under Section 80-IA(4)(iii) amounting to Rs. 229,721
thousands up to March 2010. The Company had made an application under
the Industrial Park Scheme, 2002 but the application was returned by
the concerned Ministry. The Company has filed the Writ Petition in
Bombay High Court dated 31.07.2009 contesting the rejection by the
concerned authorities in respect of the application made by the
Company. Should the outcome of the writ petition be unsuccessful, it is
estimated that the aggregate provision for taxation would be short by
Rs. 80,205 thousands.
8. In the opinion of the Board, Current Assets and Loans and Advances
have a value on realization in the ordinary course of business that
equals at least 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 Balances standing at the debit or credit in the accounts of various
parties are subject to confirmation and reconciliation.
10. Interest amount debited in Profit and Loss Account is after
considering interest received and other receipts.
11. Estimated amounts of contract remaining to be executed on capital
account and not provided for is NIL
12. Investment In Joint Venture
The CompanyÃs 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 Private Limited by forming an Association of
Persons named Green Olive Ventures. The Company has agreed to
contribute an amount of Rs. 25,000 thousands towards initial capital
and has agreed to contribute further capital as and when needed for
Joint Venture. The Company has contributed Rs. 1,165,83 thousands up to
31st March, 2010.
b) Vibhu ÃKPDL Venture:-
The Company, by virtue of an Agreement has entered into a Joint Venture
with Vibhu Developers Private Limited by forming an Association of
Persons named Vibhu- KPDL Venture. The Company has agreed to contribute
an amount of Rs. 1,37,640 thousands towards initial capital and has
agreed to contribute further capital as and when needed for Joint
Venture. The Company has contributed Rs. 1,92,553 thousands up to 31st
March, 2010.
13. Segment Accounting:
Accounting Standards Interpretation (ASI) 20 Dt. 14.02.2004, issued by
the Accounting Standard Board of Institute of Chartered Accountants of
India, on ÃAS à 17 - Segment Reportingà clarifies that in case by
applying the definition of ÃBusiness Segment and Geographical SegmentÃ
given in AS-17. The Company is engaged in various segments namely Real
Estate Development, Retails and Hospitality. However, in financial year
2009-10, there is only one reportable segment namely Real Estate
Development.
14. In view of Accounting Standard required by ÃAS-28 - Impairment of
Assetsà issued by Institute of Chartered Accountants of India, the
Company has reviewed its fixed assets and does not expect any loss as
on 31st March, 2010 on account of impairment in addition to the
provision already made in the books.
15. 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 amortized @ 2% per annum
considering the period of lease.
16. 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.
17. Contribution to Group Gratuity Scheme of LIC
In accordance with provision of ÃAccounting Standard (AS) Ã 15
(Revised-2005) Employee Benefitsà 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 ÃGratuityÃ. Expenses recognized
during the year shown under the head ÃEmployee CostÃ.
18. Keyman Insurance Policy
During the year, Company has paid Rs. 67 thousands under the Keyman
Insurance Policy of Life Insurance Corporation of India for the
following Directors.
1. Mr. Rajesh Patil
2. Mr. Milind Kolte
Premium paid during the year as per the scheme is absorbed under the
head ÃEmployee CostÃ.
19. Employees Stock Option Scheme 2006 (ESOS)
In the fiscal year 2006, the Company introduced ESOS 2006. The Board of
Directors and shareholders approved the scheme in the month September
2006 and October 2006 respectively, which provides for the issue of
7,80,000 Equity Shares to the employees. The Remuneration and
Compensation Committee administers the Employees Stock Option Scheme
2006 and options were granted in the month of September 2006.
During the year the Company has issued 1,10,144 equity shares of Rs.
10/- each at a premium of Rs.30/- per share to employee under Employees
Stock Option Scheme 2006.
20. In the year 2007-08 ,the Company has incurred Rs. 2,32,907
thousands 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. 46,581 thousands
charged to Profit and Loss Account as IPO Expenses for the current
year.
21. Last yearÃs figures have been regrouped, reclassified and
rearranged wherever necessary.