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Notes to Accounts of Brigade Enterprises Ltd.

Mar 31, 2023

On transition to Ind AS (i.e. April 01, 2015), the Company has elected to continue with the carrying value of all Investment properties measured as per the previous GAAP as the deemed cost of Investment properties.

Title deeds of all the immovable properties included in the investment properties are held in the name of the Company.

* The Company had recognised ?600 Lakhs as an impairment loss in prior years in respect of certain investment properties in the leasing segment due to the impact of Covid-19 Pandemic. The Company has updated its business projections taking into account revised forecasts for the future periods for the purpose of determining the revised recoverable amount of Investment Property as at March 31, 2023. Since the revised recoverable amount exceeds the carrying value, the Company has reversed impairment loss of ?600 Lakhs that is recognised as an exceptional item during the year ended March 31, 2023.

** Amortisation of initial direct costs over the lease term is included under Brokerage and discounts in Note 28 - Other Expenses.

These fair values are based on valuations performed by an independent external valuer, who is assessed by the Company to be an expert in valuing these types of investment properties. The fair value of investment properties is based on discounted cash flows and classified as level 3 fair value in the fair value hierarchy due to the use of unobservable inputs. There has been no change in valuation techniques used since prior year. The aforesaid independent external valuer is not a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017.

The duration of the cash flows and the specific timing of inflows and outflows are determined by events such as rent reviews, lease renewal and related re-letting, redevelopment, or refurbishment. The appropriate duration is typically driven by market behaviour that is a characteristic of the class of real estate property. Periodic cash flow is typically estimated as gross income, non-recoverable expenses, collection losses, lease incentives, maintenance cost and other operating and management expenses. The series of periodic net operating income, along with an estimate of the terminal value anticipated at the end of the projection period, is then discounted.

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of ?10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend 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.

In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(e) Shares issued for consideration other than cash and reserved for issue under options

The Company has issued total 18 Lakhs shares (March 31, 2022: 12 Lakhs shares) during the period of 5 years immediately preceding the reporting date on exercise of options granted under Employee Stock Option Plan ''''(ESOP)'''' wherein part consideration was received in the form of employee services.

For details of shares reserved for issue under the ESOP of the Company, refer note 36.

Note 1: Includes term loans from banks secured by way of assignment of project receivables ?2,031 Lakhs (March 31, 2022: ?13,968 Lakhs) and further secured by collateral security of underlying land, building and movable property, plant and equipment and investment property. The loans are repayable in 5 quarterly instalments of ?406 Lakhs from the balance sheet date.

Note 2: Includes term loan from banks by way of mortgage of project properties and future lease rentals ?1,40,456 Lakhs (March 31, 2022: ?1,48,950 Lakhs). The loans are repayable within 12-135 instalments ranging from ?10 Lakhs to ?345 Lakhs for various loans.

Note 3: Bank Overdraft facilities are secured by way of mortgage of project properties. The facilities carry interest rate in the range of 9-10% and are repayable on demand.

Note 4: As at the year end, there were no instance of any creation of charges or satisfaction of charges which are yet to be registered with Registrar of Companies [RoC].

* Represents amounts payable within the operating cycle. Amount repayable within twelve months is T12.679 Lakhs (March 31, 2022: T17.945 Lakhs)

32.Commitments and contingencies

a. Commitments

(i) The Company has given ?35,930 Lakhs (March 31, 2022: ?33,131 Lakhs) as advances/deposits for purchase of land/ joint development. Under the agreements executed with the land owners, the Company is required to make further payments and/or give share in area/ revenue from such development in exchange of undivided share in land based on the agreed terms/ milestones.

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

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

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

(v) At March 31, 2023, the estimated amount of contract remaining to be executed on capital account not provided for is ?7,870 Lakhs (March 31, 2022: ? Nil )

b. Contingent liabilities
	March 31, 2023 W	March 31, 2022 W
Claims against the Company not acknowledged as debts
- Income tax	13	343
- Sales tax / Value added tax/ Entry tax	1,486	1,486
- Service tax (net of ?29 Lakhs provided for)	2,907	2,936
Letter of credit and Bank Guarantees	2,330	2,472
Corporate Guarantees/Letter of Comfort given to subsidiaries (Restricted to extent of loan amounts outstanding)	50,843	88,153

c. Other Litigations:

(i) The Company has paid land advances of ?3,860 Lakhs that are under litigation. The underlying loans and advances are considered as good and recoverable based on legal evaluation by management of ultimate outcome of legal proceedings.

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

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

e. Other transactions:

1 The Company has received ?114 Lakhs (March 31, 2022: 400 Lakhs) towards accumulated profits and current capital account withdrawal due to conversion of BFOSLLP to BFOSPL.

2 The Company has made donation to BFT of ?620 Lakhs (March 31, 2022: ?591 Lakhs).

3 The Company has invested ?3,000 Lakhs in unlisted 12% 30 Lakhs D Series Optionally Convertible Debentures of ?100 each in BPPL, ?68 Lakhs Capital contribution in BILLP. Also refer note 6 with respect to carrying value of investments held as at year end.

4 The Company has paid ?94 Lakhs (March 31, 2022: ?604 Lakhs ) to M.R. Jaishankar towards its share of collections from Brigade Atmosphere Project (Joint Development Project).

5 The Company has received an amount of ?2,371 Lakhs from BDPL towards Cancellation of Agreement on Property Purchase.

6 The Company has purchased 2.20 Lakhs shares of Tetrarch Real Estates Private Limited from Mrs. Githa Shankar for ?97 Lakhs.

f. Other information:

Outstanding balances at the year-end are unsecured and carry interest upto 12% and settlement occurs in cash. The Company has not recorded any provision/ write-off of receivables relating to amounts owed by related parties.

Note: In respect of the transactions with the related parties, the Company has complied with the provisions of Section 177 and 188 of the Companies Act, 2013 where applicable, and the details have been disclosed above, as required by the applicable accounting standards.

36.Share based payments

The Company provides share-based payment schemes to its employees. The relevant details of the scheme and the grants are as below:

Employees Stock Option Scheme (âESOP 2011â): The Company instituted this scheme pursuant to the Board of Directors and Shareholdersâ resolution dated May 04, 2011 and August 11, 2011, respectively. As per ESOP 2011, the Company granted 24,94,300 (March 31, 2022: 24,94,300) options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The options would vest equally 25% every year with exercise period of five years from the date of respective vesting. The contractual life (comprising the vesting period and the exercise period) of options granted is 9 years from date of such grant.

Employees Stock Option Scheme (âESOP 2017â): The Company instituted this scheme pursuant to the Board of Directors and Shareholdersâ resolution dated August 08, 2017 and September 21, 2017, respectively. As per ESOP 2017, the Company granted 25,16,597 (till March 31, 2022: 24,70,526) options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The options would vest equally 25% every year with exercise period of five years from the date of respective vesting. The contractual life (comprising the vesting period and the exercise period) of options granted is 9 years from date of such grant.

Employees Stock Option Scheme (âESOP 2022â): The Company instituted this scheme pursuant to the Board of Directors and Shareholdersâ resolution dated March 25, 2022 and May 4, 2022, respectively. As per ESOP 2022, the Company granted 13,37,658 (till March 31, 2022: Nil) options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The options would vest equally 25% based on the individual performance every year , with exercise period of five years from the date of respective vesting. The contractual life (comprising the vesting period and the exercise period) of options granted is 9 years from date of such grant.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. There have been no transfers between levels during the period.

The management assessed that the carrying values of cash and cash equivalents, trade receivables, current investments, current loans, trade payables, current borrowings and other current financial assets and liabilities approximate their fair values largely due to the short-term maturities.

The following methods and assumptions were used to estimate the fair values:

- Refer note 4 with respect to investment properties

- The quoted investments (mutual funds) are valued using the quoted market prices in active markets.

- The fair values of the unquoted equity shares have been estimated using a DCF model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in managementâs estimate of fair value for these unquoted equity investments.

The Companyâs objectives of capital management is to maximize the shareholder value. In order to maintain or adjust the capital structure, the Company may adjust the return to shareholders, issue/ buyback shares or sell assets to reduce debt. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt as below.

- Equity includes equity share capital and all other equity components attributable to the equity holders

In order to achieve the objective of maximize shareholders value, the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. Any significant breach in meeting the financial covenants would allow the bank to call borrowings. There have been no breaches in the financial covenants of borrowings.

No changes were made in the objectives, policies or processes for managing capital during the current / previous year.

The Companyâs principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations. The Companyâs principal financial assets include loans, trade, other receivables and cash and cash equivalents and bank balances other than cash and cash equivalents that derive directly from its operations.

i. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity / real-estate price risk.

The sensitivity analysis in the following sections relate to the position as at March 31, 2023 and March 31, 2022. The sensitivity analysis has been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations/provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2023 and March 31, 2022.

Interest rate risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in Interest rate. The entityâs exposure to the risk of changes in Interest rates relates primarily to the entityâs operating activities (when receivables or payables are subject to different interest rates) and the entityâs net receivables or payables.

The Company is affected by the price volatility of certain commodities/ real estate. Its operating activities require the ongoing development of real estate. The Companyâs management has developed and enacted a risk management strategy regarding commodity/ real estate price risk and its mitigation. The Company is subject to the price risk variables, which are expected to vary in line with the prevailing market conditions.

The Company invests surplus funds in liquid mutual funds. The Company is exposed to market price risk arising from uncertainties about future values of the investment. The Company manages the equity price risk through investing surplus funds in liquid mutual funds for short term basis.

ii. Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty defaults on its obligations. The Companyâs exposure to credit risk arises majorly from trade receivables/ unbilled revenue and other financial assets.

Other financial assets like security deposits, loans and bank deposits are mostly with employees, government bodies and banks and hence, the Company does not expect any credit risk with respect to these financial assets.

With respect to trade receivables/ unbilled revenue, the Company has constituted teams to review the receivables on periodic basis and to take necessary mitigations, wherever required. The Company creates allowance for all unsecured receivables based on lifetime expected credit loss (''ECL'').

iii. Liquidity risk

The Companyâs principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the cash and cash equivalents is sufficient to meet its current requirements. Accordingly no liquidity risk is perceived.

45. The Code on Social Security, 2020 (âCodeâ) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

46.Shares issued under QIP

On June 21, 2021, the Company launched the offering of its equity shares through a qualified institutions placement (âQIPâ) in accordance with the provisions of Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the âSEBI ICDR Regulationsâ). Pursuant to QIP, the Company received an amount of ?50,000 Lakhs against the issue of 1,86,56,716 equity shares of face value of ?10 each to qualified institutional buyers and the same were allotted and listed for trading on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited from June 25,2021.

47. Additional Disclosures

(a) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(b) Transactions and balances with companies which have been removed from register of Companies [struck off companies] as at the above reporting periods is Nil.

(d) No funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(f) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(g) The Company is not a declared wilful defaulter by any bank or financial Institution or other lender.

(h) During the year, the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in the nature of loans and guarantees to companies, firms, Limited Liability Partnerships or any other parties are not prejudicial to the Company''s interest.

48.Standards issued but not yet effective

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31, 2023 to amend the following Ind AS which are effective from April 01, 2023.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their âsignificantâ accounting policies with a requirement to disclose their âmaterialâ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations.

The Company is currently assessing the impact of the aforesaid amendments and does not expect to have any significant impact.

Mar 31, 2022

a) Refer Note 15 for details of property, plant and equipment pledged as security for borrowings.

b) On transition to Ind AS (i.e. 1 April 2015), the company has elected to continue with the carrying value of all Property, plant and equipment measured as per the previous GAAP as the deemed cost of Property, plant and equipment.

c) Title deeds of all the immovable properties included in the property, plant and equipment are held in the name of the Company.

*Building includes Right-of-use assets. Also refer Note 33 for details

Title deeds of all the immovable properties included in the investment properties are held in the name of the Company.

* During the year ended March 31, 2022, an impairment loss of ''nil (March 31, 2021: ''1,350 lakhs) has been recognised in the statement of profit and loss, which represents the write-down value of certain investment properties in the leasing segment to the recoverable amount. During the previous year, the impairment charge arose in the leasing segment Cash Generating Unit (''CGU'') due to vacant leased space coupled with the current economic conditions due to Covid-19 pandemic.

Capitalised borrowing costs

The amount of borrowing costs capitalised during the year ended March 31, 2022 was '' Nil (March 31, 2021: '' 79 lakhs). The rate used to determine the amount of borrowing costs eligible for capitalisation was 8-12%, which is the effective interest rate of the specific borrowings.

The management has determined that the investment properties consist of two classes of assets - office and retail based on the nature, characteristics and risks of each property. The valuations are based on valuations performed by an accredited independent external valuer.

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Significant increases/ (decreases) in estimated rental value and rent growth per annum in isolation would result in a significantly higher/ (lower) fair value of the properties. Significant increases/ (decreases) in long-term vacancy rate and discount rate in isolation would result in a significantly lower / (higher) fair value.

These fair values are based on valuations performed by an independent external valuer, who is assessed by the Company to be an expert in valuing these types of investment properties.The fair value of investment properties is based on discounted cash flows and classified as level 3 fair value in the fair value hierarchy due to the use of unobservable inputs. There has been no change in valuation techniques used since prior year. The aforesaid independent external valuer is not a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017.

* The Company had investment of ''4,000 lakhs in Tier II bonds of Lakshmi Vilas Bank (''LVB''). The Reserve Bank of India (''RBI''), in its communication in November 2020 advised the administrator of LVB to write down the Tier II bonds issued by LVB pursuant to the amalgamation of LVB with DBS Bank India Limited and LVB being non viable under Section 45 of the Banking Regulation Act. The Company had filed a writ petition in Karnataka High Court against the order of the RBI. Considering the overall uncertainty on recoverability of the aforesaid amount, the Company made provision in this regard and the same is disclosed as exceptional item in the standalone financial statements for the previous year ended March 31, 2021.

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of ''10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend 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.

(e) Shares issued for consideration other than cash and reserved for issue under options

The Company has issued total 12 lakhs shares (March 31, 2021: 12 lakhs shares) during the period of 5 years immediately preceding the reporting date on exercise of options granted under Employee Stock Option Plan â(ESOP)â wherein pari consideration was received in the form of employee services.

Note 1: Includes term loan and working capital loans from banks secured by way of assignment of project receivables ''13,968 lakhs (March 31, 2021: ''29,637 lakhs) and further secured by collateral security of underlying land, building and movable property, plant and equipment and investment property. The loans are repayable within 12-60 instalments of ''22 lakhs to ''813 lakhs from the balance sheet date.

Note 2: Includes term loan from banks from bank by way of mortgage of project properties and future lease rentals ''1,48,950 lakhs (March 31, 2021: ''1,54,927 lakhs). The loans are repayable within 12-144 instalments of ''10 lakhs to ''345 lakhs from the balance sheet date.

Note 3: Bank Overdraft facilities are secured by way of mortgage of project properties. The facilities carry interest rate in the range of 9-10% and are repayable on demand.

Note 4: As at the year end, there were no instance of any creation of charges or satisfaction of charges which are yet to be registered with Registrar of Companies [RoC].

* Represent amounts repayable within the operating cycle. Amount repayable within twelve months is ''17,945 lakhs (March

31, 2021: ''24,534 lakhs).

32 Commitments and contingencies a. Commitments

(i) The Company has given ''33,131 lakhs (March 31, 2021: ''25,052 lakhs) as advances/deposits for purchase of land/ joint development. Under the agreements executed with the land owners, the Company is required to make further payments and/or give share in area/ revenue from such development in exchange of undivided share in land based on the agreed terms/ milestones.

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

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

b. Contingent liabilities
	March 31, 2022 ''	March 31, 2021 ''
Claims against the Company not acknowledged as debts
- Income tax*	343	5,642
- Sales tax / Value added tax/ Entry tax	1,486	1,601
- Service tax	2,936	2,908
Letter of credit and Bank Guarantees	2,472	3,923
Corporate Guarantees/Letter of Comfort given to subsidiaries (Amount restricted to extent of loan amount disbursed)	88,153	79,596
	95,390	93,670

"Previous year includes '' 5,299 lakhs against which the Company has opted for settlement of dues under Vivad Se Vishwas Scheme. The Company received the demand order of ''560 lakhs for the financial year 2014-15 to 2017-18 and has settled the same. Subsequent to the year end, the Income tax authorities have acknowledged the payment and provided the order giving effect in this regard.

c. Other Litigations:

(i) The Company has paid land advances of '' 3,860 lakhs that are under litigation. The underlying loans and advances are considered as good and recoverable based on legal evaluation by management of ultimate outcome of legal proceedings.

1 The Company has contributed ''Nil (March 31, 2021: ''50 Lakhs) as Capital Contribution in BILLP. Also refer note 6.

2 The Company has contributed ''Nil (March 31, 2021: ''100 Lakhs) as Capital Contribution in BFOSPL (formerly known as BFOSLLP). Also refer note 6.

3 The Company has Received ''400 Lakhs (March 31, 2021: ''NIL) towards accumulated profits and current capital account withdrawal due to conversion of BFOSLLP to BFOSPL

4 The Company has made donation to IMET of ''Nil (March 31, 2021: ''28 Lakhs).

5 The Company has made donation to BFT of ''591 lakhs (March 31, 2021: ''600 Lakhs)

6 The Company has invested '' Nil (March 31, 2021: '' 5,000 Lakhs) in 12% B (I) Series Non Convertible Debentures of ''100/-each fully paid in PREPL

7 The Company has invested ''5,000 (March 31, 2021: ''Nil) in 12% C series NCD of ''100 each fully paid up in BPPL.

8 The Company has invested ''3,500 Lakhs (March 31, 2021: ''3,500) in 12% B (II) Series Non Convertible Debentures of

''100/- each fully paid in PREPL.

9 The Company has invested ''2,500 Lakhs (March 31, 2021: Nil) in 12% C Series Non Convertible Debentures of ''100/- each fully paid in PREPL.

10 The Company has invested ''Nil (March 31, 2021: ''2,300 Lakhs) in 0.001% Fully convertible debentures of ''100/- each paid up in BIPPL.

11 The Company has Paid ''604 Lakhs (March 31, 2021: ''647 Lakhs) to M.R. Jaishankar (HUF) towards its share of collections from Brigade Atmosphere Project (Joint Development Project) Where M.R. Jaishankar (HUF) is the land owner.

36 Share based payments

The Company provides share-based payment schemes to its employees. The relevant details of the scheme and the grants are as below:

Employees Stock Option Scheme (âESOP 2011â): The Company instituted this scheme pursuant to the Board of Directors and Shareholdersâ resolution dated May 04, 2011 and August 11, 2011, respectively. As per ESOP 2011, the Company granted 24,94,300 (March 31, 2021: 24,94,300) options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The options would vest equally 25% every year with exercise period of five years from the date of respective vesting. The contractual life (comprising the vesting period and the exercise period) of options granted is 9 years from date of such grant.

Employees Stock Option Scheme (âESOP 2017â): The Company instituted this scheme pursuant to the Board of Directors and Shareholdersâ resolution dated August 08, 2017 and September 21, 2017, respectively. As per ESOP 2017, the Company granted 24,70,526 (till March 31, 2021: 23,94,037) options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The options would vest equally 25% every year with exercise period of five years from the date of respective vesting. The contractual life (comprising the vesting period and the exercise period) of options granted is 9 years from date of such grant.

The fair value of the share options is estimated at the grant date using Black Scholes Model taking into account the terms and conditions upon which the share options are granted and there are no cash settled alternatives for employees.

The following methods and assumptions were used to estimate the fair values:

- Refer note 4 with respect to investment properties

- The quoted investments (mutual funds) are valued using the quoted market prices in active markets.

39 Capital management

The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt as below.

- Equity includes equity share capital and all other equity components attributable to the equity holders

No changes were made in the objectives, policies or processes for managing capital during the current / previous year.

41 Financial risk management objectives and policies

i. Market risk

The sensitivity analysis in the following sections relate to the position as at March 31, 2022 and March 31, 2021. The sensitivity analysis has been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations/provisions.

The below assumption has been made in calculating the sensitivity analysis:

ii. Credit risk

45 The Code on Social Security, 2020 (âCodeâ) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

46 Shares issued under QIP

On June 21, 2021, the Company launched the offering of its equity shares through a qualified institutions placement (âQIPâ) in accordance with the provisions of Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the âSEBI ICDR Regulationsâ). Pursuant to QIP, the Company has received an amount of '' 50,000 lakhs as on June 25, 2021 against the issue of 1,86,56,716 equity shares of face value of ''10 each to qualified institutional buyers and the same were allotted and listed for trading on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited from June 25,2021.

47 Additional Disclosures

(b) Transactions and balances with companies which have been removed from register of Companies [struck off companies] as at the above reporting periods is Nil.

(e) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(1) 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

(2) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(g) The Company is not a declared wilful defaulter by any bank or financial Institution or other lender.

48 Standards issued but not yet effective

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standard) Amendment Rules 2022 dated March 23, 2022 to amend the following Ind AS which are effective from April 01, 2022:

(i) Onerous Contracts - Costs of Fulfilling a Contract - Amendments to Ind AS 37

(ii) Reference to the Conceptual Framework - Amendments to Ind AS 103

(iii) Property, Plant and Equipment: Proceeds before Intended Use - Amendments to Ind AS 16

(iv) Ind AS 109 Financial Instruments - Fees in the â10 per centâ test for derecognition of financial liabilities

The amendments are effective for annual reporting periods beginning on or after April 01, 2022. The amendments are not expected to have a material impact on the Company.

Mar 31, 2018

1. CORPORATE INFORMATION

Brigade Enterprises Limited (âBELâ or the âCompanyâ) is a public company domiciled in India and is incorporated on November 8, 1995 under the provisions of the Companies Act applicable in India. Its shares are listed on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The registered office of the Company is located at 29^th & 30^th Floors, World Trade Center, Brigade Gateway Campus, 26/1, Dr. Rajkumar Road, Malleswaram - Rajajinagar, Bangalore 560 055.

The Company is carrying on the business of real estate development, leasing and hospitality and related services.

The standalone Ind AS financial statements were authorized for issue in accordance with a resolution of the directors on May 16, 2018.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation

In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (âInd ASâ) Specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015 as amended. The standalone financial statements of the Company are prepared and presented in accordance with Ind AS.

The standalone financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

2.2 Significant accounting judgments, estimates and assumptions

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make judgments, estimates and assumptions that affect the reported balances of revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

In the process of applying the Companyâs accounting policies, management makes judgement, estimates and assumptions which have the most significant effect on the amounts recognized in the financial statements.

(a) Judgments

In the process of applying the Companyâs accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

Classification of property

The Company determines whether a property is classified as investment property or inventory as below.

Investment property comprises land and buildings (principally office and retail properties) that are not occupied substantially for use by, or in the operations of, the Company, nor for sale in the ordinary course of business, but are held primarily to earn rental income and capital appreciation. These buildings are substantially rented to tenants and not intended to be sold in the ordinary course of business.

Inventory comprises property that is held for sale in the ordinary course of business. Principally, this is residential and commercial property that the Company develops and intends to sell before or during the course of construction or upon completion of construction.

(b) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Revenue recognition and valuation of unbilled revenue The Company uses the percentage-of-completion method for recognition of revenue, accounting for unbilled revenue and contract cost thereon for its real estate and contractual projects. The percentage of completion is measured by reference to the stage of the projects and contracts determined based on the proportion of contract costs incurred for work performed to date bear to the estimated total contract costs. Use of the percentage-of-completion method requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Significant assumptions are required in determining the stage of completion, the extent of the contract cost incurred, the estimated total contract revenue and contract cost and the recoverability of the contracts. These estimates are based on events existing at the end of each reporting date.

Accounting for revenue and land cost for projects executed through joint development arrangements (JDA)

For projects executed through joint development arrangements, the revenue from the development and transfer of constructed area/revenue sharing arrangement and the corresponding land/ development rights received under JDA is measured at the fair value of the estimated construction service rendered to the land owner and the same is accounted on launch of the project. The fair value is estimated with reference to the terms of the JDA (whether revenue share or area share) and the related cost that is allocated to discharge the obligation of the Company under the JDA. Fair value of the construction is considered to be the representative fair value of the revenue transaction and land so obtained. Such assessment is carried out at the launch of the real estate project and is not reassessed at each reporting period. The Management is of the view that the fair value method and estimates are reflective of the current market condition.

Estimation of net realizable value for inventory (including land advance)

Inventory is stated at the lower of cost and net realizable value (NRV).

NRV for completed inventory property is assessed by reference to market conditions and prices existing at the reporting date and is determined by the Company, based on comparable transactions identified by the Company for properties in the same geographical market serving the same real estate segment.

NRV in respect of inventory property under construction is assessed with reference to market prices at the reporting date for similar completed property, less estimated costs to complete construction and an estimate of the time value of money to the date of completion.

With respect to Land advance given, the net recoverable value is based on the present value of future cash flows, which depends on the estimate of, among other things, the likelihood that a project will be completed, the expected date of completion, the discount rate used and the estimation of sale prices and construction costs.

Impairment of non-financial assets Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at armâs length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the assetâs performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to disclosure of fair value of investment property recorded by the Company.

Defined benefit plans - Gratuity The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation rates and expected salary increase thereon.

Fair value measurement of financial instruments When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and market risk. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Measurement of financial instruments at amortized cost Financial instrument are subsequently measured at amortized cost using the effective interest (âEIRâ) method. The computation of amortized cost is sensitive to the inputs to EIR including effective rate of interest, contractual cash flows and the expected life of the financial instrument. Changes in assumptions about these inputs could affect the reported value of financial instruments.

Evaluation of control, joint control or significant influence by the Company over its investee entities for disclosure: Judgment is involved in determining whether the Company has control over an investee entity by assessing the Companyâs exposure/rights to Variable returns from its involvement with the investee and its ability to affect those returns through its power over the investee entity. The Company considers all facts and circumstances when assessing whether it controls an investee entity and reassess whether it controls an investee entity if facts and circumstances indicate that there are changes to one or more elements of control. In assessing whether the Company has joint control over an investee the Company assesses whether decisions about the relevant activities require the unanimous consent of the parties sharing control. Further, in assessing whether Company has significant influence over an investee, the Company assesses whether it has the power to participate in the financial and operating policy decisions of the investee, but is not in control or joint control of those policies.

Useful life and residual value of property, plant and equipment, investment property and intangible assets The useful life and residual value of property, plant and equipment, investment property and intangible assets are determined based on evaluation made by the management of the expected usage of the asset, the physical wear and tear and technical or commercial obsolescence of the asset. Due to the judgments involved in such estimates the useful life and residual value are sensitive to the actual usage in future period.

Provision for litigations and contingencies Provision for litigations and contingencies is determined based on evaluation made by the management of the present obligation arising from past events the settlement of which is expected to result in outflow of resources embodying economic benefits, which involves judgments around estimates the ultimate outcome of such past events and measurement of the obligation amount. Due to judgments involved in such estimation the provision is sensitive to the actual outcome in future periods.

Capitalised borrowing costs

The amount of borrowing costs capitalised during the year ended March 31, 2018 was Rs.1,476 lakhs (March 31, 2017: Rs.52 lakhs). The rate used to determine the amount of borrowing costs eligible for capitalisation was 8-12%, which is the effective interest rate of the specific borrowing.

Land and buildings

Refer Note 15 for details of property, plant and equipment pledged as security for borrowings.

Under the DCF method, fair value is estimated using assumptions regarding the benefits and liabilities of ownership over the assetâs life including an exit or terminal value. This method involves the projection of a series of cash flows on a real estate property interest. To this projected cash flow series, a market-derived discount rate is applied to establish the present value of the income stream associated with the asset. The duration of the cash flows and the specific timing of inflows and outflows are determined by events such as rent reviews, lease renewal and related re-letting, redevelopment, or refurbishment. The appropriate duration is typically driven by market behaviour that is a characteristic of the class of real estate property. Periodic cash flow is typically estimated as gross income, non-recoverable expenses, collection losses, lease incentives, maintenance cost and other operating and management expenses. The series of periodic net operating income, along with an estimate of the terminal value anticipated at the end of the projection period, is then discounted.

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of director is subject to the approval of the shareholders in the ensuing Annual General meeting.

As per records of the Company, including its register of shareholders/ members and other declaration received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial ownership of shares.

(d) Shares issued for consideration other than cash and reserved for issue under options

The Company has issued total 17 Lakhs shares (March 31, 2017:13 Lakhs shares) during the period of 5 years immediately preceding the reporting date on exercise of options granted under Employee Stock Option Plan (ESOP) wherein part consideration was received in the form of employee services.

For details of shares reserved for issue under the ESOP of the Company, refer note 35.

Note 2: Includes term loan from banks and working capital loan from bank by way of mortgage of project properties and future lease rentals Rs.136,556 lakhs (March 31, 2017: Rs.90,135 lakhs). The loans carry interest rate in the range of 8-12% and are repayable within 12-144 instalments of upto Rs.300 lakhs.

Note 3: Cash credit facilities from banks are secured by way of mortgage of project properties and are personally guaranteed by the directors of the Company. The facilities carry interest rate in the range of 10-12% and are repayable on demand.

*Refer note 47

** Represent amounts repayable within the operating cycle. Amount repayable within twelve months is Rs.57,197 lakhs (March 31, 2017: Rs.44,587 lakhs)

3 EARNINGS PER SHARE

Basic earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

The following reflects the income and share data used in the basic and diluted EPS computations:

4 COMMITMENTS AND CONTINGENCIES

a. Leases

Operating lease: Company as lessee

The Company has taken office and commercial space under cancellable and non-cancellable operating leases. These leases have life of upto twenty four years with renewal option and include a clause to enable upward revision of the lease rental on periodical basis.

Operating lease commitments - Company as lessor

The Company has entered into operating leases (cancellable and non-cancellable) on its investment property portfolio consisting of certain office and retail buildings with varying lease terms of upto eighteen years and with escalation and renewal clauses. All leases include a clause to enable upward revision of the lease rental on periodical basis and includes variable rent determined based on percentage of sales of lessee in certain cases. The Company is also required to maintain the property over the lease term.

*Includes:

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

(b) income based on percentage of sales is Rs.1,301 lakhs (March 31, 2017: Rs.578 lakhs).

b. Other commitments

(i) As at March 31, 2018, the estimated amount of contracts (net of capital advance) remaining to be executed on capital account not provided for was Rs.7,391 lakhs (March 31, 2017: Rs.8,582 lakhs)

(ii) As at March 31, 2018, the Company has given Rs.32,920 lakhs (March 31, 2017: Rs.24,815 lakhs) as advances/deposits for purchase of land/ joint development. Under the agreements executed with the land owners, the Company is required to make further payments and/or give share in area/ revenue from such development in exchange of undivided share in land based on the agreed terms/ milestones.

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

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

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

Other Litigations:

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

Further, the Company has given a letter of comfort on behalf of its subsidiary Brookefield Real Estates and Projects Private Limited (âBBREPLâ) for the loan availed from banks aggregating to Rs.86,000 lakhs to indemnify the banks against any losses, damages, costs and claims that may arise on account of default by BBREPL. The Company has also received a counter letter of comfort from Brigade Properties Private Limited (âBPPLâ) for the aforesaid loan indemnifying the Company against any losses, damages, costs and claims incurred on behalf of BBREPL.

d. Other transactions:

1. The Company has invested â Nil (March 31, 2017: Rs.75 lakhs) in Equity shares Rs.10/- each fully paid up in BGPPL. Also refer note 6.

2. The Company has invested â Nil (March 31, 2017: 5 Lakhs) in Equity shares Rs.10/- each fully paid up in ACPL. Also refer note 6.

3. The Company has contributed Rs.50 lakhs (March 31, 2017: 499 Lakhs) as Capital Contribution in BILLP. Also refer note 6.

4. The Company has invested â Nil (March 31, 2017: 400 Lakhs) in Equity shares Rs.10/- each fully paid up in MPPL. Also refer note 6.

5. The Company has invested â Nil (March 31, 2017: 100 Lakhs) in Equity Shares of Rs.10/- each fully paid up in BHVL. Also refer note 6.

6. The Company has invested â Nil (March 31, 2017: 50 Lakhs) in Equity Shares of Rs.10/- each fully paid up in OMMCL. Also refer note 6.

7. The Company has invested â Nil (March 31, 2017: 8,100 Lakhs) in 0.01% A series Compulsory Convertible Preference Shares of Rs.100/- each fully paid up in MPPL. Also refer note 6.

8. The Company has invested â Nil (March 31, 2017: Rs.3,300 Lakhs) in 0.01% A series Compulsory Convertible Preference Shares of Rs.100/- each fully paid up in BGPPL. Also refer note 6.

9. The Company has invested â Nil (March 31, 2017: Rs.3,800 Lakhs) in 0.01% A series Compulsory Convertible Preference Shares of Rs.100/- each fully paid up in BEPPL. Also refer note 6.

10. The Company has invested â Nil in (March 31, 2017: Rs.500 Lakhs) 11% Fully Convertible Debentures (FCD) Rs.100/- each of Perungudi Real Estates Private Limited.

11. The Company has converted Nil (March 31, 2017: 59.41 Lakh Shares) of A series Optionally Convertible Debentures (OCDs) of Rs.100 each into 594.12 lakhs no. of Class B Equity shares of Rs.10 each fully paid up in PREPL.

12. The Company has converted Nil (March 31, 2017: 7.33 Lakhs No) of A series Optionally Convertible Debentures (OCDs) of Rs.100 each into 73.28 lakhs no. of Class C Equity shares of Rs.10 each fully paid up in BPPL.

13. The Company has converted Nil (March 31, 2017: 10.74 Lakhs No) of B series Optionally Convertible Debentures (OCDs) of Rs.100 each into 107.41 lakhs no. of Class C Equity shares of Rs.10 each fully paid up in BPPL.

14. The Company has converted (March 31, 2017: 21.09 Lakhs no.) of B series Optionally Convertible Debentures (OCDs) of Rs.100 each into 210.89 lakhs no. of Redeemable preference shares of Rs.10 each fully paid up in BPPL.

15. The Company has converted (March 31, 2017: 95.90 Lakhs No) of Optionally Convertible Preference Shares (OCPs) of Rs.10 each into 95.90 lakhs no. of Redeemable preference shares of Rs.10 each fully paid up in BPPL.

16. The Company has made donation to IMET of Rs.300 lakhs (March 31, 2017: Rs.50 lakhs) and BFT of â Nil (March 31, 2017: Rs.430 lakhs).

17. The Company has invested Rs.7,200 Lakhs (March 31, 2017: Nil) in 0.01% A Series Compulsory Convertible Preference shares of Rs.100/- each fully paid up in BTPL. Also refer note 6.

18. The Company has invested Rs.2,500 Lakhs (March 31, 2017: Nil) in 14.10% B series Non Convertible Debentures of Rs.10,00,000/- each fully paid up in BPPL. Also refer note 6.

19. The Company has invested Rs.1,500 Lakhs (March 31, 2017: Nil) in 12% A12 Series Optionally Convertible Debentures of Rs.100/- each fully paid in PREPL. Also refer note 6.

20. The Company has invested Rs.24,000 Lakhs (March 31, 2017: Nil) in 0.001% Fully convertible debentures of Rs.100/- each paid up in BIPPL. Also refer note 6.

21. Pursuant to scheme of amalgamation, the Company has following amounts as below.

22. Also refer note 6 as regards to investments held as at year-end.

23. The company has invested â Nil ( March 31, 2017 : 21.50 Lakhs no.) of Rs.100 each in 12% Fully Convertible Debentures (FCDs) in PHVL. Also refer note 47)

24. The company has given â Nil (March 31, 2017: 1085 Lakhs) to PHVL as share application money and the same has been refunded to the company by PHVL . Also refer note 47)

e. Other information:

Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables, other than those disclosed above. The Company has not recorded any provision/ write-off of receivables relating to amounts owed by related parties.

5 SHARE BASED PAYMENT

The Company provides share-based payment schemes to its employees. During the year ended March 31, 2018, an employee stock option plan (ESOP) was in existence. The relevant details of the scheme and the grant are as below.

The Company instituted an Employees Stock Option Scheme (âESOP 2011â) pursuant to the Board of Directors and Shareholdersâ resolution dated May 04, 2011 and August 11, 2011, respectively. As per ESOP 2011, the Company granted 2,494,300 (till March 31, 2017: 2,424,300) options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The options under this grant would vest to the employees equally as 25% of the total grant every year at the end of first, second, third and fourth year from the date of the grant respectively, with an exercise period of five years from the date of respective vesting. The contractual life (comprising the vesting period and the exercise period) of options granted is 9 years from date of such grant. The other relevant terms of the grant are as below:

* There were no cancellations or modifications to the plan during the year ended March 31, 2018 and March 31, 2017. Movements during the year

The following table illustrates the number and weighted average exercise price of share options during the year. The details of activity under the Scheme are summarized below:

*Weighted Average Exercise Price

For options exercised during the period, the weighted average share price at the exercise date was Rs.282.10 per share (March 31, 2017: Rs.159.96 per share). The weighted average remaining contractual life for the stock options outstanding as at March 31, 2018 is 3.90 years (March 31, 2017: 5.68 years)

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

6 FAIR VALUE MEASUREMENTS

The details of fair value measurement of Companyâs financial assets/liabilities are as below:

The management assessed that the carrying values of cash and cash equivalents, trade receivables, investments, loans, trade payables, borrowings and other financial assets and liabilities approximate their fair values largely due to the short-term maturities.

The following methods and assumptions were used to estimate the fair values:

- The quoted investments (mutual funds) are valued using the quoted market prices in active markets.

7 CAPITAL MANAGEMENT

The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt as below.

- Equity includes equity share capital and all other equity components attributable to the equity holders

- Net debt includes borrowings (non-current and current), trade payables and other financial liabilities, less cash and cash equivalents (including bank balances other than cash and cash equivalents and margin money deposits with banks).

No changes were made in the objectives, policies or processes for managing capital during the current and previous years.

8 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs management oversees the management of these risks and ensures that the Companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision and are used exclusively for hedging purposes and not as trading or speculative instruments.

i. Market risk

The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017. The sensitivity analysis has been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations/provisions.

The below assumption has been made in calculating the sensitivity analysis:

Interest rate sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in interest rates, with all other variables held constant. The impact on the entityâs profit before tax is due to changes in the fair value of financial assets and liabilities.

ii. Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. The Companyâs exposure to credit risk arises majorly from trade receivables/ unbilled revenue and other financial assets.

The following table summarizes the change in the loss allowance measured using ECL

iii. Liquidity risk

âThe Companyâs principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the cash and cash equivalents is sufficient to meet its current requirements. Accordingly no liquidity risk is perceived.

The break-up of cash and cash equivalents, deposits and investments is as below.

The table below summarises the maturity profile of the Companyâs financial liabilities at the reporting date. The amounts are based on contractual undiscounted payments.

9 STANDARDS ISSUED BUT NOT YET EFFECTIVE

The standards issued, but not yet effective up to the date of issuance of the Companyâs financial statements are disclosed below. The Company intends to adopt these standards when they become effective.

The Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 with effect from April 1, 2018. Companies (Indian Accounting Standards) Amendment Rules, 2018 includes Ind AS 115 Revenue from Customers, Appendix D to Ind AS 115 Service Concession Arrangements and Appendix B to Ind AS 21, Foreign Currency Transactions and Advance Consideration. Ind AS 11 Construction Contracts and Ind AS 18 Revenue will be omitted from April 1, 2018.

a) Ind AS 115 - Revenue from contracts with customers

On March 28, 2018, the Ministry of Corporate Affairs (MCA) has notified Indian Accounting Standard (Ind AS) 115, Revenue from Contracts with Customers Ind AS 115 introduces a five-step model to revenue recognition:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation Under Ind AS 115, revenue is recognised when (or as) the entity satisfies a performance obligation by transferring a promised good or service (i.e., an asset) to a customer (i.e., when (or as) the customer obtains control of that asset) at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Either a full retrospective application or a modified retrospective application is required for accounting periods commencing on or after April 01, 2018.

The Company will adopt Ind AS 115 effective from April 01, 2018. As at the date of issuance of the Companyâs financial statements, the Company is in the process of evaluating the requirements of the said standard and the impact on its financial statements in the period of initial application.

b) Appendix B to Ind AS 21 Foreign Currency Transactions and Advance Consideration

The Appendix clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration.

Entities may apply the Appendix requirements on a fully retrospective basis. Alternatively, an entity may apply these requirements prospectively to all assets, expenses and income in its scope that are initially recognised on or after:

(i) The beginning of the reporting period in which the entity first applies the Appendix, or

(ii) The beginning of a prior reporting period presented as comparative information in the financial statements of the reporting period in which the entity first applies the Appendix.

The Appendix is effective for annual periods beginning on or after April 01, 2018.

The Companyâs operation primarily relate to operations in India, The directors of the Company do not anticipate that the application of the new standard in future will have significant impact on the financial statement.

c) Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.

These amendments are effective for annual periods beginning on or after April 01, 2018.

d) Transfers of Investment Property â Amendments to Ind AS 40

The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in managementâs intentions for the use of a property does not provide evidence of a change in use.

Entities should apply the amendments prospectively to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. An entity should reassess the classification of property held at that date and, if applicable, reclassify property to reflect the conditions that exist at that date. Retrospective application in accordance with Ind AS 8 is only permitted if it is possible without the use of hindsight.

These amendments are effective for annual periods beginning on or after 1 April 2018.

10 DISCONTINUED OPERATIONS

The Scheme of Arrangement between the Company and its wholly owned subsidiaries engaged in hospitality business - Brigade Hotel Ventures Limited (âBHVLâ), Brigade Hospitality Services Limited (âBHSLâ)and Augusta Club Private Limited (âACPLâ) and their respective shareholders and creditors in terms of the provisions of Sections 230 to 233 of the Companies Act, 2013 to transfer the hotels business, integrated clubs and convention centre business and âAugusta Clubâ business, to its wholly owned subsidiaries (hereinafter referred to as âthe Schemeâ) has been approved by National Company Law Tribunal (âNCLTâ) in March 2018 with an appointed date of October 01, 2016. The hospitality business was an operating segment until October 01, 2016. Being a discontinued operation, that segment is no longer presented in the segment note.

11 On April 28, 2017, the Company launched the offering of its equity shares through a qualified institutions placement (âQIPâ) in accordance with the provisions of Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the âSEBI ICDR Regulationsâ). Pursuant to QIP, the Company has received an amount of Rs.49,999 lakhs as on May 03, 2017 against the issue of 21,978,021 equity shares of face value of Rs.10 each to qualified institutional buyers and the same were listed and admitted for trading on the National Stock Exchange of India Limited and BSE Limited. Further, the Company has adjusted share issue expenses of Rs.960 lakhs against the securities premium on such issue.

The details of utilisation of proceeds raised through QIP are as below

12 SCHEME OF ARRANGEMENT

The Scheme of Arrangement between the Company and its wholly owned subsidiaries engaged in hospitality business - Brigade Hotel Ventures Limited (âBHVLâ), Brigade Hospitality Services Limited (âBHSLâ)and Augusta Club Private Limited (âACPLâ) and their respective shareholders and creditors in terms of the provisions of Sections 230 to 233 of the Companies Act, 2013 to transfer the hotels business, integrated clubs and convention centre business and âAugusta Clubâ business, to its wholly owned subsidiaries (hereinafter referred to as âthe Schemeâ) has been approved by National Company Law Tribunal (âNCLTâ) in March 2018 with an appointed date of October 01, 2016. The Scheme has been filed with the Registrar of Companies, Karnataka on April 01, 2018.

In accordance with the provisions of the aforesaid scheme -

a. The Scheme, being a common control business combination, has been accounted for using the pooling of interests method from the appointed date specified under the Scheme. As per Ind AS 103 - Business Combinations, common control business combination shall be accounted for using the pooling of interests method and the financial information in the financial statements in respect of prior periods should be restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination. Therefore, the aforesaid accounting from the appointed date is not in accordance with Ind AS 103. However, the aforesaid accounting from the appointed date does not have an impact on the profit or loss for the current year.

b. The purchase consideration under the Scheme is being received by way of issuance of Optionally Convertible Redeemable Preference Shares (âOCRPSâ) of Rs.29,827 lakhs and payment of cash of Rs.1,700 lakhs. As the OCRPS have been allotted subsequent to March 31, 2018, the same has been disclosed as âInvestment in subsidiaries pending allotmentâ under Other Non Current Financial Assets and the consideration receivable in cash as at March 31, 2018 has been shown as âReceivable pursuant to scheme of arrangementâ under Other Current Financial Assets.

c. The assets and liabilities as at October 01, 2016 (the appointed date) transferred by the Company at book value are summarized below:

The accounting of the Scheme in the current quarter from the appointed date of October 01, 2016 has resulted in restatement [increase/ (decrease)) of the previously published Ind AS financial information of the Company by the figures summarized below:

* Net profit/loss from operations pertaining to the above demerged business prior to the appointed date, i.e., for the period April 01, 2016 to September 30, 2016, has been disclosed as profit/loss from discontinued operations during the year ended March 31, 2017.

The figures of previous period have been restated, wherever necessary, to give effect to aforesaid scheme of arrangement.

The aforesaid restatement is not on account of Ind AS 8 - Accounting policies and hence restated balance sheet for April 01, 2016 has not been disclosed by the management.

13 In November 2017, a search under Section 132(1) of the Income Tax Act, 1961, was conducted at various premises of the Company. The management has complied with / responded to the notices received in this regard and does not expect any additional liability beyond the amounts already provided for, on final assessment of the aforesaid matter.

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

Mar 31, 2017

2.2 SigniFicant accounting judgments, estimates and assumptions

the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

(a) Judgments

In the process of applying the Company''s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

Classification of property

The Company determines whether a property is classified as investment property or inventory as below.

(b) Estimates and assumptions

Revenue recognition and valuation of unbilled revenue The Company uses the percentage-of-completion method for recognition of revenue, accounting for unbilled revenue and contract cost thereon for its real estate and contractual projects. The percentage of completion is measured by reference to the stage of the projects and contracts determined based on the proportion of contract costs incurred for work performed to date bear to the estimated total contract costs. Use of the percentage-of-completion method requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Significant assumptions are required in determining the stage of completion, the extent of the contract cost incurred, the estimated total contract revenue and contract cost and the recoverability of the contracts. These estimates are based on events existing at the end of each reporting date.

Accounting for revenue and land cost for projects executed through joint development arrangements CJDA)

Estimation of net realizable value for inventory [including land advance)

Inventory is stated at the lower of cost and net realizable value [NRV].

Impairment of non-financial assets Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to disclosure of fair value of investment property recorded by the Company.

Defined benefit plans - Gratuity The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Fair value measurement of financial instruments When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and market risk. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Measurement of financial instruments at amortized cost Financial instrument are subsequently measured at amortized cost using the effective interest (''EIR'') method. The computation of amortized cost is sensitive to the inputs to EIR including effective rate of interest, contractual cash flows and the expected life of the financial instrument. Changes in assumptions about these inputs could affect the reported value of financial instruments.

The management has determined that the investment properties consist of two classes of assets - office and retail - based on the nature, characteristics and risks of each property.

Asa tMarch31,2017,March31,2016and April 01,2015, the fair values of the propertiesare REs,231,627lakhs,REs, 178,177lakhsand REs, 164,350 lakhs respectively. These valuations are based on valuations performed by an accredited independent valuer.

The Company has no restrictions on the reliability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements, except as disclosed in note 32(b)

The fair value of investment properties is based on discounted cash flows and classified as level 3 fair value in the fair value hierarchy due to the use of unobservable inputs. There has been no change in valuation techniques used since prior years.

Under the DCF method, fair value is estimated using assumptions regarding the benefits and liabilities of ownership over the asset''s life including an exit or terminal value. This method involves the projection of a series of cash flows on a real estate property interest. To this projected cash flow series, a market-derived discount rate is applied to establish the present value of the income stream associated with the asset.

The duration of the cash flows and the specific timing of inflows and outflows are determined by events such as rent reviews, lease renewal and related re-letting, redevelopment, or refurbishment. The appropriate duration is typically driven by market behavior that is a characteristic of the class of real estate property. Periodic cash flow is typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives, maintenance cost, agent and commission costs and other operating and management expenses. The series of periodic net operating income, along with an estimate of the terminal value anticipated at the end of the projection period, is then discounted.

* During the year ended March 31, 2016, the Company has made an equity investment of REs, 8,170 lakhs in PHVL by way of conversion of loans given to PHVL.

** BCV Developers Private Limited (''BDPL''), a subsidiary company, along with two joint venture companies BCV Estates Private Limited (''BEPL'') and CV Properties (Bangalore) Private Limited (''CPPL''), had filed a scheme of amalgamation, with the appointed date for such scheme being October 01, 2013. The scheme was sanctioned by the High Court of Karnataka on April 29, 2015 and the companies had filed the order with the Registrar of Companies on May 25, 2015. Upon such filing, BEPL and CPPL were amalgamated into BDPL and the equity shareholders of BEPL and CPPL were issued equivalent equity shares in BDPL. Consequently, in accordance with the scheme as approved by the High Court, the investments in BEPL and CPPL were merged into the investments in BDPL and accordingly disclosed above.

Operating lease commitments - Company as less or

The Company has entered into operating leases (cancellable and non-cancellable) on its investment property portfolio consisting of certain office and retail buildings with varying lease terms of up to eighteen years and with escalation and renewal clauses. All leases include a clause to enable upward revision of the lease rental on periodical basis and includes variable rent determined based on percentage of sales of lessee in certain cases. The Company is also required to maintain the property over the lease term. ''

*Includes:

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

(b) income based on percentage of sales is REs, 578 lakhs (March 31, 2016: REs, 1,958 lakhs).

b. Other Commitments

(i) As at March 31, 2017, the estimated amount of contracts (net of capital advance) remaining to be executed on capital account not provided for was Rs, 15,932 lakhs (March 31, 2016: Rs, 7,356 lakhs, April 01, 2015: Rs, 16,266 lakhs)

(ii) As at March 31, 2017, the Company has given Rs, 25,851 lakhs (March 31, 2016: Rs, 28,226 lakhs, April 01, 2015: Rs, 23,970 lakhs) as advances/deposits for purchase of land/ joint development. Under the agreements executed with the land owners, the Company is required to make further payments and/or give share in area/ revenue from such development in exchange of undivided share in land based on the agreed terms/ milestones..

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

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

Other Litigations:

d. Other transactions:

1 The Company has invested Rs, Nil (March 31, 2016: Rs, 29,706 lakhs) in Series A optionally convertible debentures of Rs, 100/each fully paid up in PREPL. Also refer note 6

2 The Company had invested Rs, Nil (March 31, 2016: Rs, 294 lakhs) in equity shares of Rs, 10/- each fully paid up in PREPL. Also refer note 6.

3 The Company has invested Rs, 75 lakhs (March 31, 2016: Rs, 125 lakhs) in Equity shares Rs, 10/- each fully paid up in BGPPL. Also refer note 6.

4 The Company has invested Rs, 5 lakhs (March 31, 2016: Nil) in Equity shares Rs, 10/- each fully paid up in ACPL. Also refer note 6.

5 The Company has contributed Rs, 499 lakhs (March 31, 2016: Rs, Nil) as Capital Contribution in BILLP. Also refer note 6.

6 The Company has invested Rs, 400 lakhs (March 31, 2016: Rs, Nil) in Equity shares Rs, 10/- each fully paid up in MPPL. Also refer note 6.

7 The Company has invested Rs, 100 lakhs (March 31, 2016: Rs, Nil) in Equity Shares of Rs, 10/- each fully paid up in BHVL. Also refer note 6.

8 The Company has invested Rs, 50 lakhs (March 31, 2016: Rs, Nil) in Equity Shares of Rs, 10/- each fully paid up in OMMCL. Also refer note 6.

9 The Company has invested Rs, 8,100 lakhs (March 31, 2016: Rs, Nil) in 0.01% A series Compulsory Convertible Preference Shares of Rs, 100/- each fully paid up in MPPL. Also refer note 6.

10 The Company has invested Rs, 3,300 lakhs (March 31, 2016: Rs, Nil) in 0.01% A series Compulsory Convertible Preference Shares of Rs, 100/- each fully paid up in BGPPL. Also refer note 6.

11 The Company has invested Rs, 3,800 lakhs (March 31, 2016: Rs, Nil) in 0.01% A series Compulsory Convertible Preference Shares of Rs, 100/- each fully paid up in BEPPL. Also refer note 6.

12 The Company has invested Rs, 2,150 lakhs (March 31, 2016: Rs, Nil) in 12% Fully convertible debentures of Rs, 100/- each fully paid up in PHVL. Also refer note 6.

13 The Company has given Rs, 1,085 lakhs (March 31, 2016: Rs, 2,126 lakhs) to PHVL as Share Application money and the same has been refunded to the Company by PHVL.

14 The Company has purchased Rs, Nil (March 31, 2016: Rs, 560 lakhs) and Rs, Nil (March 31, 2016: Rs, 3,358 lakhs) of Series A Optionally Convertible debentures of Rs, 100/- each fully paid up and Series B Optionally Convertible debentures of Rs, 100/- each fully paid up respectively in BPPL from Reco Begonia Pte Ltd and subsequently redeemed by BPPL. Also refer note 6.

15 The Company has invested Rs, 500 lakhs in (March 31, 2016: Nil) 11% Fully Convertible Debentures (FCD) Rs, 100/- each of Perungudi Real Estates Private Limited.

16 The Company has converted 59.41 lakhs no. (March 31, 2016: Nil) of A series Optionally Convertible Debentures (OCDs) of Rs, 100 each into 594.12 lakhs no. of Class B Equity shares of Rs, 10 each fully paid up in PREPL.

17 The Company has converted 7.33 lakhs no. (March 31, 2016: Nil) of A series Optionally Convertible Debentures (OCDs) of Rs, 100 each into 73.28 lakhs no. of Class C Equity shares of Rs, 10 each fully paid up in BPPL.

18 The Company has converted 10.74 lakhs no. (March 31, 2016: Nil) of B series Optionally Convertible Debentures (OCDs) of Rs, 100 each into 107.41 lakhs no. of Class C Equity shares of Rs, 10 each fully paid up in BPPL.

19 The Company has converted 21.09 lakhs no. (March 31, 2016: Nil) of B series Optionally Convertible Debentures (OCDs) of Rs, 100 each into 210.89 lakhs no. of Redeemable preference shares of Rs, 10 each fully paid up in BPPL.

20 The Company has converted 95.90 lakhs no. (March 31, 2016: Nil) of Optionally Convertible Preference Shares (OCPs) of Rs, 10 each into 95.90 lakhs no. of Redeemable preference shares of Rs, 10 each fully paid up in BPPL.

21 BPPL has redeemed Rs, Nil (March 31, 2016: 17.18 lakhs) Series A optionally convertible debentures of Rs, 100/- each fully paid up invested by the Company.

22 BPPL has redeemed Rs, Nil (March 31, 2016: 15.19 lakhs) Series B optionally convertible debentures of Rs, 100/- each fully paid up invested by the Company.

23 The Company has made equity investment of Rs, Nil (March 31, 2016: Rs, 8,170 lakhs) in PHVL by way of conversion of loans given to PHVL.

24 The Company has made donation to IMET of Rs, 50 lakhs (March 31, 2016: Rs, 180 lakhs) and BFT of Rs, 430 lakhs (March 31, 2016: Rs, Nil lakhs).

25 The Company has provided corporate guarantee of Rs, Nil (March 31, 2016: Rs, 2,000 lakhs) for the loan taken by BFT for the working capital requirements of BFT.

26 Refer note 15 for guarantees received from directors and subsidiary companies in respect of loans availed by the Company.

27 Also refer note 6 as regards to investments held as at year-end.

e. Other inFormation:

28 DEFINED BENEFIT PLAN - GRATUITY

The Company operates defined gratuity plan for its employees. Under the plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.

The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarise the components of net benefit expenses recognized in the statement of profit and loss and the funded status and amount recognized in the balance sheet.

Changes in the defined benefit obligation and fair value of plan assets - Year ended March 31, 2017

29 Share based payment

The Company provides share-based payment schemes to its employees. During the year ended March 31, 2017, an employee stock option plan (ESOP) was in existence. The relevant details of the scheme and the grant are as below.

The Company instituted an Employees Stock Option Scheme (''ESOP 2011'') pursuant to the Board of Directors and Shareholders'' resolution dated May 4, 2011 and August 11, 2011, respectively. As per ESOP 2011, the Company granted 2,424,300 (till March 31, 2016: 2,424,300) options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The options under this grant would vest to the employees equally as 25% of the total grant every year at the end of first, second, third and fourth year from the date of the grant respectively, with an exercise period of five years from the date of respective vesting. The contractual life (comprising the vesting period and the exercise period) of options granted is 9 years from date of such grant. The other relevant terms of the grant are as below:

Other income (including finance income) and finance costs and fair value gains and losses on financial assets pertaining to individual segments are allocated to respective segments.

Current taxes, deferred taxes and certain financial assets and liabilities are considered as unallocated as they are also managed on a Company basis.

The Company is domiciled in India. The Company''s revenue from operations from external customers primarily relate to operations in India and all the non-current assets of the Company are located in India.

The following methods and assumptions were used to estimate the fair values:

The fair values of the unquoted equity shares have been estimated using a DCF model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management''s estimate of fair value for these unquoted equity investments..

30 CAPITAL MANAGEMENT

The Company''s objectives of capital management is to maximize the shareholder value. In order to maintain or adjust the capital structure, the Company may adjust the return to shareholders, issue/ buyback shares or sell assets to reduce debt. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt as below.

- Equity includes equity share capital and all other equity components attributable to the equity holders

In order to achieve the objective of maximize shareholders value, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. Any significant breach in meeting the financial covenants would allow the bank to call borrowings. There have been no breaches in the financial covenants of above-mentioned interest-bearing borrowing.

No changes were made in the objectives, policies or processes for managing capital during the current and previous years.

31 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade, other receivables and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s management oversees the management of these risks and ensures that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision and are used exclusively for hedging purposes and not as trading or speculative instruments.

i. Market risk

The sensitivity analysis in the following sections relate to the position as at March 31, 2017 and March 31, 2016. The sensitivity analysis has been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations/provisions.

The below assumption has been made in calculating the sensitivity analysis:

Interest rate risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in Interest rate. The entity''s exposure to the risk of changes in Interest rates relates primarily to the entity''s operating activities (when receivables or payables are subject to different interest rates) and the entity''s net receivables or payables.

The Company is affected by the price volatility of certain commodities/ real estate. Its operating activities require the ongoing development of real estate. The Company''s management has developed and enacted a risk management strategy regarding commodity/ real estate price risk and its mitigation. The Company is subject to the price risk variables, which are expected to vary in line with the prevailing market conditions.

ii. Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. The Company''s exposure to credit risk arises majorly from trade receivables/ unbilled revenue and other financial assets.

iii. Liquidity risk

The Company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the cash and cash equivalents is sufficient to meet its current requirements. Accordingly no liquidity risk is perceived.

32 STANDARDS ISSUED BUT NOT YET EFFECTIVE

The amendment to standard issued up to the date of issuance of the Company''s financial statements, but not yet effective as of the date of the Company''s financial statements is disclosed below. The Company intends to adopt the amendment to standard when it becomes effective.

Amendments to Ind AS 102 Classification and Measurement of Share-based Payment Transaction

The amendments to Ind AS 102 applies prospectively for annual periods beginning on or after April 01, 2017. As per the amendments, in estimating the fair value of a cash-settled share-based payment, the accounting for the effects of vesting and non-vesting conditions should follow the same approach as for equity-settled share-based payments. Further, where tax law or regulation requires an entity to withhold a specified number of equity instruments and the share-based payment arrangement has a ''net settlement feature'', such an arrangement should be classified as equity-settled in its entirety. The Company does not anticipate that the application of the amendments in the future will have a significant impact on the Company''s financial statements as the Company does not have any cash-settled share-based payment arrangements or any withholding tax arrangements with tax authorities in relation to such share-based payments.

Ind AS 115 - Revenue from Contracts with Customers

Ind AS 115 was issued in February 2016 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115 revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Ind AS. This standard will come into force from accounting period commencing on or after April 01, 2018. The Company will adopt the new standard on the required effective date. The directors of the Company anticipate that the application of the standard will be applicable only to certain streams of revenue and will not have a material impact on the financial statements.

Amendments to Ind AS 7 Disclosure Initiative

The amendments require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities. The amendments apply prospectively for annual periods beginning on or after April 01, 2017. The Company does not anticipate that the application of these amendments will have a material impact on the Company''s financial statements.

33 FIRST TIME ADOPTION

These standalone financial statements, for the year ended March 31, 2017, are the first time the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Previous GAAP'' or ''IGAAP'').

Accordingly, the Company has prepared the standalone financial statements which comply with Ind AS applicable for year ending on March 31, 2017, together with the comparative period data as at and for the year ended March 31, 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 01, 2015, the Company''s date of transition to Ind AS.

i. Exemptions availed:

(a) Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the Previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their Previous GAAP carrying value.

(b) Ind AS 27 requires investments in subsidiaries, associates and joint ventures to be recorded at cost or in accordance with Ind AS 109 in its separate financial statements. However, Ind AS 101 provides an option to measure that investment at one of the following amounts in case the Company decides to measure such investment at cost:

i. Cost as per Ind AS 27 or

ii. Deemed cost, which is:

a. Fair value at the entity''s date of transition to Ind AS

b. Previous GAAP carrying amount at that date

The Company has elected to measure its investments in subsidiaries, associates and joint ventures using deemed cost at the Previous GAAP carrying amount at the date of transition to Ind AS.

(c) Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. The Company has elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Use of this exemption means that business combinations occurring prior to the transition date have not been restated and the IGAAP carrying amounts of assets and liabilities, that are required to be recognized under Ind AS, is their deemed cost at the date of the acquisition. After the date of the acquisition, measurement is in accordance with respective Ind AS.

(d) Ind AS 101 provides an option to not apply Ind AS 102 to liabilities arising from share-based payment transactions that were settled before the date of transition to Ind AS. The Company has elected to avail this exemption and apply the requirements of Ind AS 102 to all such grants under the ESOP plan, which are not settled as at the date of transition to Ind AS.

ii. Exceptions applied

(a) Ind AS 101 requires an entity''s estimates in accordance with Ind AS at the date of transition to Ind AS to be consistent with estimates made for the same date in accordance with Previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. The Company''s estimates as at April 01, 2015 are consistent with the estimates as at the same date made in conformity with Previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under Previous GAAP:

- Investment carried at FVPL or FVOCI; and

- Impairment of financial assets based on expected credit loss model.

(b) Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

The Company has applied the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

(c) Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

The Company has applied the requirement of classification and measurement of financial assets (investment in debt instruments) as above.

Footnotes to the reconciliation of equity as at April 01, 2015 and March 31, 2016 and profit or loss and cash flows for the year ended March 31, 2016:

1 Share-based payments

Under Ind-AS, employee share-based payments should be accounted for using the fair value method. In contrast, existing IGAAP permits an option of using either the intrinsic value method or the fair value method. As regards the ESOPs granted to subsidiaries, the company is cross charging the amount as expense to subsidiaries.

2 Defined benefit liabilities

Under Previous GAAP, actuarial gains and losses were recognized in the statement of profit and loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of net defined benefit liability/asset which is recognized in other comprehensive income in the respective periods.

3 Deferred tax

IGAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under IGAAP. In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

4 JDA Accounting

Company has entered into certain joint development arrangements. In such a situation, revenue is recognized on gross basis. Since the goods exchanged under joint development arrangement i.e. land with flats are in dissimilar in nature, as per para 12 of Ind AS 18, the exchange is regarded as a transaction which generates revenue. The Company has measured revenue at the fair value of the goods or services received, adjusted by the amount of any cash or cash equivalents transferred. Since , fair value of the goods or services received cannot be measured reliably, revenue is measured in relation to transfer of constructed property to land owners on the basis of fair value of services provided to the landlord. Further, Company has recognized land with corresponding credit to "land cost payableâ to account for land received under joint development arrangement.

5 Dividend and tax on dividend

Under Previous GAAP, dividend payable was recorded as a liability in the period to which it relates. Under Ind AS, dividend to holders of equity instruments is recognized as a liability in the period in which the obligation to pay is established.

6 Financial assets and liabilities at amortized cost

Under IGAAP, there are certain assets and liabilities which are carried at nominal value. Ind AS requires to measure these assets and liabilities at fair value at inception and subsequently these assets and liabilities are measured at amortized cost. At inception date, the Company recognizes difference between fair value and nominal value as expense/income and the differential expense/ income on straight line basis over the life of the asset/liability.

7 Compound financial instruments

Under IGAAP, compound financial instruments, are classified on the basis of their legal form under investments. As per Ind AS, compound financial instruments are split between liability and equity components and accordingly classified in the financial statements.

8 Other comprehensive income

Under IGAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled IGAAP profit/loss to profit/loss as per Ind AS. Further, IGAAP profit/loss is reconciled to total comprehensive income as per Ind AS.

9 The transition from Previous GAAP to Ind AS has not had a material impact on the statement of cash flows.

10 The figures of the previous periods have been regrouped/reclassified, where necessary, to conform with the current year''s classification.

34 On April 28, 2017, the Company launched the offering of its equity shares through a qualified institutions placement ("QIPâ) in accordance with the provisions of Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the "SEBI ICDR Regulationsâ). Pursuant to QIP, the Company has received an amount of Rs.49,999 lakhs as on May 03, 2017 against the issue of 21,978,021 equity shares of face value of Rs.10 each to qualified institutional buyers and the same were listed and admitted for trading on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited from May 05,2017.

35 The Board of Directors of the Company have approved the scheme of arrangement between the Company and its wholly owned subsidiaries

- Brigade Hotel Ventures Limited, Brigade Hospitality Services Limited and Augusta Club Private Limited and their respective shareholders and creditors (hereinafter referred to as "the Schemeâ) in terms of the provisions of Sections 230 to 233 of the Companies Act, 2013 to transfer the hotels business, integrated clubs and convention centre business and ''Augusta Club'' business, to its wholly owned subsidiaries. The Company is in the process of obtaining the necessary approvals. Pending such approvals, the Scheme has not been accounted for in the accompanying standalone Ind AS financial statements for the year ended March 31, 2017.

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

37 The comparatives given in the standalone Ind AS financial statements have been compiled after making necessary Ind AS adjustments to the respective audited standalone financial statements under Previous GAAP to give a true and fair view in accordance with Ind AS.

Mar 31, 2016

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Gratuity

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

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

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

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

* Lease rental income includes:

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

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

3. Capital and other Commitments

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

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

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

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

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

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

Other Litigations:

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

4. Related Party disclosures*

I. Names of related parties and related party relationship

(i) Related parties where control exists

S_ub_sidi_ari_es Brigade Hospitality Services Limited âBHSLâ

Brigade Tetrarch Private Limited âBTPLâ

Brigade Estates and Projects Private Limited âBEPPLâ

Brigade Properties Private Limited âBPPLâ

Brigade Infrastructure and Power Private Limited âBIPPLâ

BCV Developers Private Limited [from January 21, 2015. Also, refer note 14(a)] âBDPLâ WTC Trades and Projects Private Limited âWTPPLâ

Orion Mall Management Company Limited âOMMCLâ

Prosperity Hotel Ventures Limited âPHVLâ

Celebration Catering and Events, LLP âCCELâ

Brigade (Gujarat) Projects Private Limited âBGPPLâ

Brooke fields Real Estates and Projects Private Limited âBREPPLâ

(formerly Brooke Bond Real Estates Private Limited)

Perungudi Real Estates Private Limited âPREPLâ

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

Associates Tandem Allied Services Private Limited âTASPLâ

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

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

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

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

Relatives of KMP Ms. Nirupa Shankar

Mr. M. K. Shivraj Harsha

Enterprises owned or Mysore Holdings Private Limited âMHPLâ

^sig^nificantly ^{influenced b}y ^KMP Brigade Foundation Trust âBFTâ

M. R. Jaishankar (HUF) âMRJâ

Indian Music Experience Trust âIMETâ

Alta Collis LLC âACLLCâ

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

- Company Secretary Mr. P. Om Prakash

Other Directors Mr. M. R. Shivram

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

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

Dr. Srinivasa Murthy Mr. Aroon Raman

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

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

Relatives of Other Directors Mr. M. G. Suraj

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

5. Segment reporting

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

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

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

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

6. Employee stock option plan

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

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

*Weighted Average Exercise Price

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

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

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

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

Mar 31, 2013

1. Company overview:

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

2.1. Provision for Warranty:

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

2.2 Segmental information:

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

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

2.3 Assets under operating lease:

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

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

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

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

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

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

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

2.4 Joint ventures

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

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

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

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

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

2.6. Quantitative Details:

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

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

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

2.8 Details of Derivative instruments and unhedged foreign currency exposures:

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

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

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

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

2.11 Previous Year Amounts:

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

Mar 31, 2012

1. Company overview:

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

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

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

2.1 Employee Benefit plans

a. Defined contribution plans:

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

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

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

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

2.2 Segment information:

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

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

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

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

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

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

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

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

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

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

2.4. Previous year amounts

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

Mar 31, 2011

2.1. Share Capital:

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

2.2. Secured Loans: 2.2.1 Corporation Bank:

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

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

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

2.2.2 Indian Bank:

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

2.2.3. State Bank of India:

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

2.2.4 State Bank of Mysore:

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

2.2.5 State Bank of Patiala:

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

2.2.6 ICICI Bank Ltd:

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

2.2.7 Bank of Baroda:

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

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

2.2.8 Bank of India:

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

2.2.9 Lakshmi Vilas Bank:

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

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

2.2.10 Allahabad Bank:

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

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

2.4. Warranty Costs:

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

2.5. Gratuity Plan:

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

2.6. Borrowing Cost

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

2.7. Segmental Reporting

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

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

2.8. Related Party Disclosure:

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

2.8.1 Relationships:

Holding Companies NIL

Subsidiary Companies

Brigade Hospitality Services Ltd

Brigade Tetrarch Pvt. Ltd

Brigade Estates and Projects Pvt. Ltd

Brigade Properties Pvt. Ltd.

Brigade Infrastructure & Power Pvt. Ltd

WTC Trades and Projects Pvt. Ltd

Associated Companies & Joint Venture

Tandem Allied Services Pvt. Ltd

BCV Developers Pvt. Ltd

BCV Estates Pvt. Ltd

Other related parties where common control exists

Mysore Holdings Pvt. Ltd

Brigade Foundation

Mr M. R. Jaishankar (HUF)

Key Managerial Personnel (KMP)

Mr M. R. Jaishankar,

Chairman and Managing Director

Ms Githa Shankar, Executive Director

Relatives of Key Managerial Personnel

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

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

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

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

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

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

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

2.13. Contingent Liabilities:

Capital Commitments and Contingent liabilities on account of:

(Rupees in Lakhs)

Particulars 31st March 2011 31st March 2010

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

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

Claims from government departments not acknowledged 153.14 164.95 as debts

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

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

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

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

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

2.20. Quantitative Details:

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

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

2.22. Previous Year Amounts:

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

Mar 31, 2010

1.1 Share Capital

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

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

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

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

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

1.2 Initial Public Offer Proceeds and Its Utilization:

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

The above includes the applicable service tax on the fees.

1.3 Secured Loans from:

1.3.1 Corporation Bank:

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

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

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

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

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

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

1.4.1 Indian Bank:

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

1.4.2 State Bank of India:

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

1.4.3 State Bank of Mysore:

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

1.4.4 State Bank of Patiala:

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

1.4.5 Bank of Maharashtra:

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

1.4.6 ICICI Bank Ltd.:

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

1.4.7 Bank of Baroda:

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

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

1.4.8 Bank of India:

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

1.5 Warranty Costs:

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

1.6 Gratuity Plan:

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

2.0 Segmental Reporting:

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

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

2.1 Related Party Disclosures:

Related party disclosures, as required by AS-18, ÃRelated Party DisclosuresÃ are given below:

2.2 Assets under Operating Lease:

2.3 Deferred Taxation:

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

2.4 Joint Ventures

(a) BCV Developers Private Limited (ÃBCVÃ)

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

2.5 Contingent Liabilities:

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

2.6 As per the information available with the Company, the

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

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

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

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

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

2.10 Quantitative Details:

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

2.11 Previous Year Amounts:

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

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