Mar 31, 2022
Your Directors have the pleasure in presenting 31st Annual Report on the business and operations of the Company and the accounts for the Financial Year ended 31 March 2022.
(H In Lakhs) |
||||
Particulars |
Consolidated |
Standalone |
||
FY 2021-22 |
FY 2020-21 |
FY 2021-22 |
FY 2020-21 |
|
Revenue from Operations |
111,748 |
69,174 |
37,760 |
50,199 |
Operating Profit before interest, depreciation, amortization and taxes (EBITDA) |
18,620 |
6,239 |
(1,618) |
2,868 |
Depreciation and amortization |
1,039 |
1,197 |
763 |
939 |
Interest and finance charges |
5,003 |
7,030 |
4,806 |
5,574 |
Other Income |
1,902 |
1,672 |
2,034 |
2,535 |
Profit Before Tax (PBT) |
14,480 |
(316) |
(5,153) |
(1,110) |
Tax expenses |
5,144 |
68 |
200 |
(341) |
Profit After Tax (PAT) |
9,336 |
(384) |
(5353) |
(769) |
Share of Profit / (Loss) of joint ventures, associates |
(159) |
(98) |
- |
- |
(net) |
||||
Exceptional Items |
(692) |
- |
(335) |
- |
Add: Other Comprehensive Income |
77 |
61 |
34 |
54 |
Total Comprehensive Income before NonControlling Interest |
8,562 |
(421) |
(5,654) |
(715) |
Less: Non-Controlling Interest |
547 |
70 |
- |
- |
Profit after other Comprehensive Income |
8,015 |
(491) |
(5,654) |
(715) |
Earnings Per share (in H) |
10.45 |
(0.73) |
(7.48) |
(1.01) |
The key highlights of the Company''s performance is as under:
Financial Overview (Consolidated Performance)
Our revenues were increased by 61.55% at H111,748 lakhs during the year compared to H69,174 lakhs in the previous year. Earnings Before Interest Taxes and Depreciation was increased by 198.44% at H18,620 lakhs as compared to H6,239 lakhs. EBITDA margins increased from 9.02% to 16.66% during the year. Total Comprehensive Income (post minority interest) increased to H8,015 lakhs compared to H(491) lakhs in the previous year. Earnings Per Share stood at H10.45 as compared to H(0.73) last year.
Financial Overview (Standalone Performance)
Our revenues were decreased by 24.78% at H37,760 lakhs during the year compared to H50,199 lakhs in the previous year. Earnings Before Interest Taxes and Depreciation was decreased to Rs. (1,618) lakhs
as compared to H2,868 lakhs in the previous year. EBITDA margins decreased to (4.3%) during the year. Total Comprehensive Income decreased by 690.77% at H(5,654) lakhs compared to H(715) lakhs in the previous year. Earnings Per Share stood at H(7.48) as compared to H(1.01) last year.
The Board of Directors have recommended a Final Dividend of H2 per Equity Share for Financial Year 2021-22, subject to the approval of shareholders in the ensuing 31st Annual General Meeting.
During the year under review, the Company has not accepted any fixed deposits under the provisions of the Companies Act, 2013.
The paid-up Equity Share Capital as on 31 March 2022 stood at H7,600.44 Lakhs, which comprises of 7,60,04,409 Equity Shares of Rs. 10 each.
During the year under review, there is no change in paid up equity share capital of the Company.
6. Internal Financial Controls
The Company has adequate internal controls and processes in place with respect to its financial statements which provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements. These controls and processes are driven through various policies, procedures and certifications. The Management has periodically conducted the assessment of internal financial controls for determining operative effectiveness of controls. The internal financial controls were also reviewed by an Independent Auditor and found to be adequate and operating effectively for ensuring accuracy and completeness of the accounting records. No reportable material weaknesses were observed. The report of Independent Auditor is annexed to the Auditors'' Report on Standalone Financial Statements.
7. Details of Subsidiary/Joint Ventures/ Associate Companies
During the year under review, the Company has made investment in one subsidiary company namely Kolte-Patil Realtors Estate Private Limited (Formerly known as Woodstone Real Estate Private Limited).
Further, the Company has reduced its stake to 20% in Snowflower Properties Private Limited, hence Snowflower Properties Private Limited ceased as Subsidiary of the Company.
The Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures in Form AOC - 1 is annexed as Annexure I to the Directors'' report.
8. Directors and Key Managerial Personnel
Pursuant to Section 152 of the Companies Act, 2013 read with Article 167 of the Articles of Association of the Company, Mr. Naresh Patil - Vice Chairman (DIN: 00881077) and Mrs. Vandana Patil, Non-Executive Director (DIN: 00588888) will retire by rotation and being eligible, offered themselves for re-appointment at this ensuing 31st Annual General Meeting.
During the year under review, Mr. Yashvardhan Patil was appointed as Group Chief Executive Officer of the Company with effect from 12 June 2021 and ceased as Group Chief Executive Officer with effect from 08 September 2021. Mr. Rahul Talele was appointed as Group Chief Executive Officer by the Board of Directors with effect from 08 September 2021.
The Board of Directors in their meeting held on 08 September 2021 has appointed of Mr. Yashvardhan Patil as Whole Time Director Designated as Joint
Managing Director, subject to the approval of the shareholders in the ensuing 31st Annual General Meeting.
Mr. KN Swaminathan resigned as Chief Financial Officer with effect from 02 April 2022.
Mr. Gopal Laddha was appointed as Chief Financial Officer of the Company on 02 April 2022 by the Board of Directors.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of Independence as prescribed both under the Companies Act, 2013 and Regulation 16 (b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Company has devised a Policy for performance evaluation of Independent Directors, Board, Committees and other Individual Directors which includes criteria for performance evaluation of the non-executive directors and executive directors. The Board has carried out an annual evaluation of its own performance, various committees and Individual directors.
The Board members are provided with necessary documents, reports and policies to enable them to familiarise with the Company''s procedures and practices. Periodic presentations are made at the Board and Committee Meetings, on business and performance up.
The details of such familiarization programmes for Independent Directors are posted on the website of the Company and can be accessed at https://bit.ly/3cADexS
The Policy for selection of Directors and determining Directors Independence and Remuneration Policy for Directors, Key Managerial Personnel and other employees is annexed as Annexure II to this Report.
9. Meetings of the Board of Directors
Eight (8) Board Meetings were held during the year and the gap between two meetings did not exceed four months. The dates on which the board meeting were held as follows:
i) 31 May 2021
ii) 12 June 2021
iii) 29 July 2021
iv) 11 August 2021
v) 08 September 2021
vi) 29 October 2021
vii) 22 December 2021
viii) 08 February 2022
10. Scheme of Amalgamation and Arrangement
The Board of Directors in their meeting held on 22 December 2021 has considered and approved merger of two wholly owned subsidiaries namely Tuscan Real Estate Private Limited and PNP Agrotech private Limited into the Company, demerger of the Retail business of its wholly owned subsidiary Kolte-Patil Properties Private Limited (Formerly known as Kolte-Patil Redevelopment private Limited) and merge the retail business into the Company, subject to necessary statutory approvals.
11. Statutory Auditors
M/s. Deloitte Haskins & Sells LLP (LLP Registration No. AAB-8737, FRN - 117366W/ W-100018), Chartered Accountants, Pune, were appointed as Statutory Auditors till the Annual General Meeting (AGM) to be held in the year 2023.
12. Contracts or arrangements with related parties
During the year under review, all transactions/ arrangements entered by the Company with related parties were in the ordinary course of business and on an arm''s length basis. The details of transactions are given in the Note No 47 in Notes to Accounts forming part of the Audited Standalone Financial Statement.
The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Company''s website at the link: https://bit.ly/3okfKzq
13. Conservation of energy, technology absorption and foreign exchange earnings and outgo
As the Company is not engaged in the manufacturing activities, the information related to Conservation of energy, technology absorption has not be provided.
The details of Foreign Exchange outgo are as follows:
(H In Lakhs) |
||
Particulars |
For Year ended |
For Year ended |
31 March 2022 |
31 March 2021 |
|
Travelling Expenses |
4 |
6 |
Professional Fees |
59 |
59 |
Total |
63 |
65 |
14. Particulars of loans, guarantees and investments
The particulars of loans, guarantees and investments are given in Note No. 5 and 36 in Notes to accounts forming part of the Audited Financial Statements.
15. Extract of the annual return
In accordance with Sections 92(3) read with 134(3) (a) of the Act, the Annual Return of the Company as on 31 March 2022 is available on the website of the Company at: https://bit.ly/3yVleWb
16. Corporate Social Responsibility (CSR)
In compliance with Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules 2014, the Company has established Corporate Social Responsibility (CSR) Committee and Report on CSR Activities forms part of this Report as Annexure III.
17. Audit Committee
The Audit Committee of the Company comprises following members:
Name of the Member |
Designation |
Category |
Mr. Prakash Gurav |
Chairman |
Independent Director |
Mr. Achyut Watve |
Member |
Independent Director |
Mr. Girish Vanvari |
Member |
Independent Director |
Mrs. Sudha Navandar |
Member |
Independent Director |
Mr. Yashvardhan Patil |
Member |
Joint Managing Director |
Mr. Nirmal Kolte |
Member |
Executive Director |
Mr. Vinod Patil, Company Secretary of the Company, acts as the secretary to the Audit Committee and the Managing Director, Chief Executive Officer and the Chief Financial Officer of the Company are permanent invitees to the Audit Committee Meetings.
The Board has accepted all the recommendations of the Audit Committee.
18. Vigil Mechanism for Directors and Employees
The Vigil Mechanism of the Company, which also incorporates a Whistle Blower Policy in Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, includes an Ethics & Compliance Task Force comprising senior executives of the Company. Protected disclosures can be made by a whistle blower through an e-mail, or dedicated telephone line or a letter to the Task Force or to the Chairman of the Audit Committee.
The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations. To maintain these standards, the Company encourages its employees who have
concerns about suspected misconduct whether by the Directors, employees, vendors or customers and to come forward and express these concerns without fear of punishment or unfair treatment. The report received from employees will be reviewed by Audit Committee. The Directors and Management Personnel are obligated to maintain confidentiality of such reporting and ensure that the whistle blowers are not subjected to any discriminatory practices. No person has been denied access to the Audit Committee.
The said policy can be accessed at https://bit.ly/3zjnWq2
19. Nomination and Remuneration Committee
The Nomination and Remuneration Committee of the Company comprises of following members:
Name of the Member |
Designation |
Category |
Mr. Jayant Pendse |
Chairman |
Independent Director |
Mr. Prakash Gurav |
Member |
Independent Director |
Mr. Umesh Joshi |
Member |
Independent Director |
Mr. Achyut Watve |
Member |
Independent Director |
Mr. Girish Vanvari |
Member |
Independent Director |
Mrs. Sudha Navandar |
Member |
Independent Director |
20. Managerial Remuneration
The Details required as per Rule 5(1) and (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given in Annexure IV to the Directors report.
21. Employee Stock Option Scheme
The Nomination and Remuneration Committee of the Board of Directors of the Company, inter alia, administers and monitors the Employees'' Stock Option Scheme of the Company in accordance with the applicable SEBI Guidelines.
The applicable disclosures as stipulated under the SEBI Guidelines as on 31 March 2022 (cumulative position) with regard to the Employees'' Stock Option Scheme (ESOS) are provided in Annexure V to this Report.
22. Secretarial Audit Report
Pursuant to Section 204 of the Companies Act 2013, the Company had appointed M/s. SVD & Associates, Company Secretaries, Pune as its Secretarial Auditors to conduct the secretarial audit of the Company for the Financial Year 2021-22. The Report of Secretarial
Auditor for the Financial Year 2021-22 is annexed to this report as Annexure VI. The Comments in Secretarial Audit Report are self-explanatory.
Kolte-Patil Integrated Townships Limited (Formerly Known as Kolte-Patil I-Ven Townships (Pune) Limited) and KPE Private Limited (Formerly known as Kolte-Patil Infratech Private Limited) are the material subsidiaries of the Company. Pursuant to the Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time, the Secretarial Audit Report of material subsidiary is annexed to this report as Annexure VII and Annexure VIII respectively.
The Institute of Company Secretaries of India had revised the Secretarial Standards on Meetings of the Board of Directors (SS-1) and Secretarial Standards on General Meetings (SS-2) with effect from 01 October 2017. The Company is in compliance with the revised secretarial standards.
24. Report on Corporate Governance
The Report on Corporate Governance for the Financial Year 2021-22, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is presented in a separate section forming part of the Annual Report. The same covers the note on Show Cause Notice received from Securities and Exchange Board of India. Further, the Company has opted for the settlement process under the SEBI (Settlement Proceedings) Regulations, 2018 and the same is under process.
The Company has obtained the Compliance certificate for the Financial Year 2021-22 from the Statutory Auditors i.e. M/s. Deloitte Haskins & Sells LLP for the compliance of conditions of corporate governance as stipulated in Regulation 34 (3) real with Part E of Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Company has constituted Risk Management Committee comprising 7 members, in which 4 members are Independent Directors. The Risk Management Committee has approved the Risk Management Policy. The Committee monitors the policy, ensures that the Company is acting appropriately to achieve prudent balance between the risk and reward and evaluates significant risk exposures and assesses the management''s actions to mitigate the exposures.
26. Directors'' Responsibility Statement
Your Directors state that:
a) in the preparation of the annual accounts for the year ended 31 March 2022, the applicable accounting standards read with requirements
set out under Schedule III to the Act, have been followed and there are no material departures from the same;
b) the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31 March 2022 and of the loss of the Company for the year ended on that date;
c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a ''going concern'' basis;
e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
27. Management''s Discussion And Analysis Report
Management''s Discussion and Analysis Report for the year under review, as stipulated in Regulation 34 (2) (e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section forming part of the Annual Report.
28. Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
The Company has adopted a Policy on Prevention and Redressal of Sexual Harassment at workplace. Pursuant to the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has in place
an Internal Complaints Committee for prevention and redressal of complaints of sexual harassment of women at the workplace.
Status of Complaints received during the year under review:
Received during |
Resolved |
Pending at the |
the year |
year end |
|
NIL |
NIL |
NIL |
The Company has obtained credit rating as ''A /Stable'' for the bank facilities of H600 Crores from CRISIL and ''ICRA A /Positive'' by ICRA for bank facilities of H473 Crores.
Your Directors take this opportunity to thank customers, vendors, Central and State Governments, business associates and bankers for their consistent support and co-operation to the Company. Your Directors take this opportunity to thank all the employees who have helped for sustained excellence in performance of the Company.
Finally, the Directors would like to convey their gratitude to the members for reposing their confidence and faith in the Company and its management.
For and on behalf of the Board of Directors
Rajesh Patil
Date: 25 May 2022 Chairman and Managing Director Place: Pune DIN 00381866
Mar 31, 2018
Dear Members
The Directors have pleasure in presenting 27th Annual Report on the business and operations of the Company and the accounts for the Financial Year ended 31 March .2018.
1. Financial highlights (Rs. in Lakhs)
Particulars |
Consolidated |
Standalone |
||
2017-18 |
2016-17 |
2017-18 |
2016-17 |
|
Revenue from Operations |
140,272 |
96,382 |
67,110 |
53,332 |
Other Income |
1,434 |
1,014 |
4,022 |
4,339 |
Total Income |
141,706 |
97,396 |
71,132 |
57,671 |
Operating Profit before interest, depreciation, amortization and taxes (EBITDA) |
31,689 |
24,821 |
20,978 |
17,250 |
Depreciation and amortization |
1,536 |
1,485 |
645 |
622 |
Interest and finance charges |
9,870 |
8,604 |
4,781 |
4,283 |
Profit Before Tax (PBT) |
20,283 |
14,732 |
15,552 |
12,345 |
Tax expenses |
4,926 |
6,244 |
5,061 |
3,874 |
Profit After Tax (PAT) |
15,357 |
8,488 |
10,491 |
8,471 |
Add: Other Comprehensive Income |
39 |
31 |
16 |
29 |
Total Comprehensive Income before Non-Controlling Interest |
15,396 |
8,519 |
10,507 |
8,500 |
Less: Non-Controlling Interest |
3,217 |
(231) |
- |
- |
Profit after other Comprehensive Income |
12,179 |
8,750 |
10,507 |
8,500 |
Earnings Per share (in Rs.) |
16.03 |
11.51 |
13.84 |
11.18 |
2. Performance of the Company
The highlights of the companyâs performance is as under:
Financial Overview (Consolidated Performance)
Our revenues increased by 45.53% at Rs.140,272 lakhs during the year compared to Rs.96,382 lakhs in the previous year. Expenses (excluding Finance cost) increased by 50.62% to RS.111,553 lakhs from RS.74,060 lakhs in the previous year. Earnings Before Interest Taxes and Depreciation increased by 27.67% at RS.31,689 lakhs as compared to RS.24,821 lakhs. EBITDA margins reduced from 25.75% to 22.59% during the year. Total Comprehensive Income (post minority interest) increased by 39.19% at RS.12,179 lakhs compared to Rs.8,750 lakhs in the previous year. Earnings Per Share stood at RS.16.03 as compared to RS.11.51 last year. Dividend of RS.2 per share, amounting to a payout of 12.45% of the yearâs profits, has been recommended by the Board of Directors.
Financial Overview (Standalone Performance)
Our revenues in 2017-18 increased by 25.83% during the year at Rs.67,110 lakhs compared to RS.53,332 lakhs in the previous year. Earnings Before Interest Taxes and Depreciation increased by 21.61% at Rs.20,978 lakhs as compared to Rs.17,250 lakhs in the previous year. EBITDA margins decreased from 32.34% to 31.26% during the year. Profit with comprehensive income after Tax was increased by 23.61% at H.0,507 lakhs compared to RS.8,500 lakhs in the previous year. Earnings per Share increased during the year at HL3.84 as compared to RS.11.18.
3. Dividend
Your Directors have recommended a final dividend of RS.2 per equity share on 75,798,409 equity shares of RS.10 each. This dividend is subject to the approval of the members at the ensuing 27th Annual General Meeting.
4. Fixed Deposits
During the year under review, the Company has not accepted any fixed deposits under the provisions of the Companies Act, 2013.
5. Share Capital
The paid-up Equity Share Capital as on 31 March .2018 stood at RS.7,579.84 Lakhs.
During the year under review, 23,500 Equity Shares has been issued under Employee Stock Option Scheme 2014 and the Company has not issued any shares with differential voting rights nor sweat equity.
During the year, the Company has not granted any stock options to employees of the Company. For details of stock options granted, refer Annexure VI of the Directorsâ Report.
6. Internal Financial Controls
The Company has adequate internal controls and processes in place with respect to its financial statements which provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements. These controls and processes are driven through various policies, procedures and certifications. The Management has periodically conducted the assessment of internal Financial Controls for determining operative effectiveness and the control were operating effectively. The internal financial controls were also reviewed by an Independent Auditor and found to be adequate and operating effectively for ensuring accuracy and completeness of the accounting records. There were no reportable material weaknesses observed. The report of Independent Auditor is annexed to the Auditorsâ Report on Financial Statements.
7. Details of Subsidiary/Joint Ventures/ Associate Companies
The Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures in Form AOC - 1 is annexed as Annexure I to the Directorsâ report.
8. Directors and Key Managerial Personnel
Pursuant to Section 152 of the Companies Act, 2013 read with Article 167 of the Articles of Association of the Company, Mrs. Vandana Patil - Non-Executive Director will retire by rotation and being eligible, offered herself for re-appointment at this ensuing Annual General Meeting.
During the year under review, there is no change in Board of Directors and Key Managerial Personnel.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed both under the Companies Act, 2013 and Regulation 16 (b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Company has devised a Policy for performance evaluation of Independent Directors, Board, Committees and other individual Directors which includes criteria for performance evaluation of the non-executive directors and executive directors. The Board has carried out an annual evaluation of its own performance, various committees and individual directors.
The Board members are provided with necessary documents, reports and policies to enable them to familiarise with the Companyâs procedures and practices. Periodic presentations are made at the Board and Committee Meetings, on business and performance up. The details of such familiarization programmes for Independent Directors are posted on the website of the Company and can be accessed at http://www.koltepatil. com/investors/corporate-governance.
The Policy for selection of Directors and determining Directors independence and Remuneration Policy for Directors, Key Managerial Personnel and other employees is annexed as Annexure II.
9. Meetings of the Board of Directors
Eight (8) Board Meetings were held during the year and the gap between two meetings did not exceed four months. The dates on which the board meeting were held as follows:
(1) 23 May 2017
(2) 30 May 2017
(3) 13 July 2017
(4) 11 August 2017
(5) 28 September 2017
(6) 07 November 2017
(7) 27 December 2017 and
(8) 13 February 2018.
10. Statutory Auditors
M/s. Deloitte Haskins & Sells LLP (LLP Registration No. AAB-8737, FRN - 117366W/ W-100018), Chartered Accountants, Pune, were appointed as statutory auditors till the Annual General Meeting (AGM) to be held in the year 2018.
The Board of Directors on the recommendation of Audit Committee has proposed re-appointment of M/s. Deloitte Haskins & Sells LLP (LLP Registration No. AAB-8737, FRN - 117366W/W-100018), Chartered Accountants, Pune for the period of Five (5) years from the conclusion of this 27th Annual General Meeting and to hold office until the conclusion of 32nd Annual General Meeting.
11. Contracts or arrangements with related parties
During the year under review, all transactions/ arrangements entered by the Company with related parties were in the ordinary course of business and on an armâs length basis.
The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Companyâs website at the link: http://www.koltepatil.com/investors/ corporate-governance.
The details of all transactions/arrangement with related party are given in the Note No. 44 in Notes to Accounts forming part of the Audited Standalone Financial Statement.
12. Conservation of energy, technology absorption and foreign exchange earnings and outgo
As the Company is not engaged in the manufacturing activities, the information related to Conservation of energy, technology absorption has not be provided.
13. Particulars of loans, guarantees and investments
The particulars of loans, guarantees and investments are given in Note No. 5, 9 and 32 in Notes to accounts forming part of the Audited Financial Statements.
14. Extract of the annual return
Pursuant to the provisions of Section 92 read with Rule 12 of the Companies (Management and administration) Rules, 2014, the extract of the annual return in Form No. MGT - 9 as provided in Annexure III form part of the Boardâs report.
15. Corporate Social Responsibility (CSR)
In compliance with Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules 2014, the Company has established Corporate Social Responsibility (CSR) Committee and Report on CSR Activities forms part of this Report as Annexure IV.
16. Audit Committee
The Audit Committee of the Company comprises of following members:
Name of the Member |
Designation |
Category |
Mr. Prakash Gurav |
Chairman |
Independent Director |
Mr. Jayant Pendse |
Member |
Independent Director |
Mr. G L Vishwanath |
Member |
Independent Director |
Mrs. Manasa Vishwanath |
Member |
Independent Director |
Mr. Umesh Joshi |
Member |
Independent Director |
Mr. Milind Kolte |
Member |
Executive Director |
Mr. Vinod Patil, Company Secretary of the Company acts as the secretary to the Audit Committee and the Managing Director and Chief Financial Officer of the Company are permanent invitees to the Audit Committee Meetings.
The Board has accepted all the recommendation of the Audit Committee.
17. Vigil mechanism for directors and employees
The Vigil Mechanism of the Company, which also incorporates a whistle blower policy in Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, includes an Ethics & Compliance Task Force comprising senior executives of the Company. Protected disclosures can be made by a whistle blower through an e-mail, or dedicated telephone line or a letter to the Task Force or to the Chairman of the Audit Committee.
The Company seeks to maintain the highest ethical and business standards in the course of its business and has put in place mechanism of reporting illegal or unethical behavior. Directors, employees, vendors or customers may report violations of the laws, rules, regulations or unethical conducting by writing to the notified person. The report received from employees will be reviewed by Audit Committee. The Directors and Management Personnel are obligated to maintain confidentiality of such reporting and ensure that the whistle blowers are not subjected to any discriminatory practices. No person has been denied access to the Audit Committee.
The said policy can be accessed at http://www. koltepatil.com/investors/corporate-governance.
18. Nomination and Remuneration Committee
The Nomination and Remuneration Committee of the Company comprises of following members:
Name of the Member |
Designation |
Category |
Mr. Jayant Pendse |
Chairman |
Independent Director |
Mr. Prakash Gurav |
Member |
Independent Director |
Mr. G. L. Vishwanath |
Member |
Independent Director |
Mrs. Manasa Vishwanath |
Member |
Independent Director |
Mr. Umesh Joshi |
Member |
Independent Director |
Mrs. Sunita Kolte |
Member |
Non-Executive Director |
19. Managerial Remuneration
The Details required as per Rule 5(1) and (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given in Annexure V to the Directors report.
20. Employee Stock Option Scheme
The Nomination and Remuneration Committee of the Board of Directors of the Company, inter alia, administers and monitors the Employeesâ Stock Option Scheme 2014 of the Company in accordance with the applicable SEBI Guidelines.
The applicable disclosures as stipulated under the SEBI Guidelines as on 31 March .2018 (cumulative position) with regard to the Employeesâ Stock Option Scheme (ESOS) are provided in Annexure VI to this Report.
21. Secretarial Audit Report
Pursuant to Section 204 of the Companies Act 2013, the Company had appointed M/s. SVD & Associates, Company Secretaries, Pune as its Secretarial Auditors to conduct the secretarial audit of the Company for the Financial Year 2017-18. The Report of Secretarial Auditor for the Financial Year 2017-18 is annexed to this report as Annexure VII.
The comments of the board on observations of the Secretarial Auditors are as follows:-
1) Inadvertently, there was a delay in transferring unclaimed dividend to Investor Education and Protection Funds in FY2016-17. In the future, the Company will ensure the timely compliance.
2) The Company has intimated to the Stock Exchange under Regulation 50 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, inadvertently, the Company has not given the reference of Regulation 60 in the intimations given to Stock Exchange for payment of interest and redemption of non-convertible debentures.
22. Secretarial Standards
The Institute of Company Secretaries of India had revised the Secretarial Standards on Meetings of the Board of Directors (SS-1) and Secretarial Standards on General Meetings (SS-2) with effect from 01 October 2017. The Company is in compliance with the revised secretarial standards.
23.Corporate Governance Certificate
Report on Corporate Governance for the Financial Year 2017-18, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is presented in a separate section forming part of the Annual Report.
The Company has obtained the Compliance certificate for the Financial Year 2017-18 from the Statutory Auditors i.e. M/s. Deloitte Haskins & Sells LLP for the compliance of conditions of corporate governance as stipulated in Regulation 34 (3) real with Part E of Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
24. Risk management policy
The Company has constituted Risk Management Committee comprising 6 members, in whicRs.3 members are Independent Directors. The Risk Management Committee has approved the Risk Management Policy. The Committee monitors the policy, ensures that the Company is acting appropriately to achieve prudent balance between the risk and reward and evaluates significant risk exposures and assesses the managementâs actions to mitigate the exposures.
25. Directorsâ Responsibility Statement
Your Directors state that:
a) in the preparation of the annual accounts for the year ended 31 March .2018, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same;
b) the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31 March .2018 and of the profit of the Company for the year ended on that date;
c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a âgoing concernâ basis;
e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
26. Managementâs Discussion And Analysis Report
Managementâs Discussion and Analysis Report for the year under review, as stipulated in Regulation 34 (2) (e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section forming part of the Annual Report.
27. Acknowledgements
Your Directors take this opportunity to thank customers, vendors, stakeholders, Central and State Governments, business associates and bankers for their consistent support and co-operation to the Company. Your Directors take this opportunity to thank all the employees. The employees have helped for sustained excellence in performance of the Company.
Finally, the Directors would like to convey their gratitude to the members for reposing their confidence and faith in the Company and its management.
For and on behalf of the Board of Directors,
Rajesh Patil
Date: 23 May 2018 Chairman and Managing Director
Place: Pune DIN 00381866
Mar 31, 2017
To,
The Members,
The Directors have pleasure in presenting 26th Annual Report on the business and operations of the Company and the accounts for the Financial Year ended 31 March, 2017.
1. Financial highlights (Rs. IN Lakhs)
Particulars |
Consolidated |
Standalone |
||
2016-17 |
2015-16 |
2016-17 |
2015-16 |
|
Revenue from Operations |
96,561 |
75,375 |
53,448 |
21,578 |
Other Income |
820 |
1,651 |
4,223 |
5,328 |
Total Income |
97,381 |
77,026 |
57,671 |
26,906 |
Operating Profit before interest, depreciation, amortization and taxes (EBITDA) |
24,821 |
21,493 |
17,250 |
10,247 |
Depreciation and amortization |
1,485 |
1,518 |
622 |
476 |
Interest and finance charges |
8,604 |
8,401 |
4,283 |
3,997 |
Profit Before Tax (PBT) |
14,732 |
11,574 |
12,345 |
5,774 |
Tax expenses |
6,244 |
5,348 |
3,874 |
1,297 |
Profit After Tax (PAT) |
8,488 |
6,226 |
8,471 |
4,477 |
Add: Other Comprehensive Income |
31 |
89 |
29 |
13 |
Total Comprehensive Income before Non-Controlling Interest |
8,519 |
6,315 |
8,500 |
4,490 |
Less: Non-Controlling Interest |
(231) |
360 |
- |
- |
Profit after other Comprehensive Income |
8,750 |
5,955 |
8,500 |
4,490 |
Earnings Per share (in Rs.) |
11.51 |
7.77 |
11.18 |
5.91 |
2. Performance of the Company
The Company has adopted Indian Accounting Standard (Ind AS) with effect from 1 April 2016, pursuant to the notification of the Companies (Indian Accounting Standard) Rules,2015 issued by the Ministry of Corporate Affairs. Previous year figures have been restated to conform to Ind AS.
The highlights of the Companyâs performance is as under:
Financial Overview (Consolidated Performance)
Our revenues were increased by 28.11% at RS.96,561 lakhs during the year compared to RS.75,375 lakhs in the previous year. Expenses (excluding Finance cost) increased by 29.79% to RS.74,045 lakhs from RS.57,051 lakhs in the previous year. Earnings Before Interest Taxes and Depreciation was increase by 15.48% at RS.24,821 lakhs as compared to RS.21,493 lakhs. EBITDA margins reduced from 28.51% to 25.70% during the year. Total Comprehensive Income (post minority interest) was increase by 46.94% at RS.8,750 lakhs compared to RS.5,955 lakhs in the previous year. Earnings Per Share stood at RS.11.51 as compared to RS.7.77 last year. Dividend of RS.1.60 per share, amounting to a payout of 13.86% of the yearâs profits, has been recommended by the Board of Directors.
Financial Overview (Standalone Performance)
Our revenues in 2016-17 increased by 147.70% during the year at RS.53,448 lakhs compared to RS.21,578 lakhs in the previous year. Earnings Before Interest Taxes and Depreciation increased by 68.34% at RS.17,250 lakhs as compared to RS.10,247 lakhs in the previous year. EBITDA margins decreased from 47.49% to 32.27% during the year. Profit with comprehensive Income after Tax was increased by 89.31% at RS.8,500 lakhs compared to RS.4,490 lakhs in the previous year. Earnings per Share increased during the year at RS.11.18 as compared to RS.5.91.
3. Dividend
Your Directors have recommended a final dividend of RS.1.60 per equity share on 7,57,74,909 equity shares of RS.10 each. This dividend is subject to the approval of the members at the ensuing 26th Annual General Meeting.
4. Fixed Deposits
During the year under review, the Company has not accepted any fixed deposits under the provisions of the Companies Act, 2013.
5. Share Capital
The paid-up Equity Share Capital as on 31 March, 2017 stood at RS.7,577.49 Lakhs. During the year under review, the Company has not issued any shares with differential voting rights nor sweat equity.
During the year, the Company has not granted any stock options to senior employees of the Company. For details of stock options granted, refer Annexure VI of the Directorsâ Report.
6. Internal Financial Controls
The Company has adequate internal financial controls with reference to financial statements. The internal financial controls were also reviewed by an Independent Auditor and found to be adequate and operating effectively for ensuring accuracy and completeness of the accounting records. There were no reportable material weaknesses observed. The report of Independent Auditor is annexed to the Auditorsâ Report on Financial Statements.
7. Details of Subsidiary/Joint Ventures/ Associate Companies
The Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures in Form AOC - 1 is annexed as Annexure I to the Directorsâ report.
During the year under review, the Company has increased its stake from 50.001% to 100% in Bellflower Properties Private Limited. Now, Bellflower Properties Private Limited is 100% Wholly Owned Subsidiary of the Company.
8. Scheme of Amalgamation
The Company has obtained the members approval by way of postal ballot and e-voting for scheme of amalgamation for merger of Olive Realty Private Limited, Yashowardhan Promoters and Developers Private Limited, Corolla Realty Limited and Jasmine Hospitality Private Limited (Wholly Owned Subsidiaries) with the Company. The result of postal ballot and e-voting was declared on 02 April 2016. The National Company Law Tribunal, Mumbai Bench has approved the scheme of amalgamation on 09 March 2017 and the certified copy of the order was issued on 03 April 2017. The appointed date is 01 January 2016. The financial impact due to merger has been disclosed in the notes to accounts.
9. Directors and Key Managerial Personnel
Pursuant to Section 152 of the Companies Act, 2013 read with Article 167 of the Articles of Association of the Company, Mr. Milind Kolte -Executive Director will retire by rotation and being eligible, offered himself for re-appointment at this ensuing Annual General Meeting.
During the year under review, Mr. Gopal Sarda was appointed as Chief Executive Officer - Mumbai and Group President of the Company by the Board of Directors in their meeting held on 15 June 2016 and further he was promoted to Group Chief Executive Officer by the Board of Directors in their meeting held on 03 February 2017
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed both under the Act and Regulation 16 (b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Company has devised a Policy for performance evaluation of Independent Directors, Board, Committees and other individual Directors which includes criteria for performance evaluation of the non-executive directors and executive directors.
The Board members are provided with necessary documents, reports and policies to enable them to familiarize with the Companyâs procedures and practices. Periodic presentations are made at the Board and Committee Meetings, on business and performance up. The details of such familiarization programmes for Independent Directors are posted on the website of the Company and can be accessed at http:// www.koltepatil.com/investors/corporate-governance.
The Policy for selection of Directors and determining Directors independence and Remuneration Policy for Directors, Key Managerial Personnel and other employees is annexed as Annexure II.
10. Meetings of the Board of Directors
Seven Board Meetings were held during the year and the gap between two meetings did not exceed four months. The dates on which the board meeting were held as follows:
(1) 28 May 2016,
(2) 15 June 2016,
(3) 06 September 2016,
(4) 19 November 2016,
(5) 03 December 2016,
(6) 18 January 2017 and
(7) 03 February 2017.
11. Statutory Auditors
M/s. Deloitte Haskins & Sells LLP (LLP Registration No. AAB-8737,FRN - 117366W/ W-100018), Chartered Accountants, Pune, were appointed as statutory auditors till the Annual General Meeting (AGM) to be held in the year 2018, subject to ratification of their appointment at every AGM.
12. Contracts or arrangements with related parties
During the year under review, all transactions/arrangements entered by the Company with related parties were in the ordinary course of business and on an armâs length basis.
The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Companyâs website at the link: http://www.koltepatil.com/investors/corporate-governance.
The details of all transactions/arrangement with related party are given in the Note No. 45 in Notes to Accounts forming part of the Audited Financial Statement.
13. Conservation of energy, technology absorption and foreign exchange earnings and outgo
As the Company is not engaged in the manufacturing activities, the information related to Conservation of energy, technology absorption has not be provided.
14. Particulars of loans, guarantees and investments
The particulars of loans, guarantees and investments are given in Note No. 50 and 11 in Notes to accounts forming part of the Audited Financial Statement.
15. Extract of the annual return
Pursuant to the provisions of Section 92 read with Rule 12 of the Companies (Management and administration) Rules, 2014, the extract of the annual return in Form No. MGT - 9 as provided in Annexure III form part of the Boardâs report.
16. Corporate Social Responsibility (CSR)
In compliance with Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules 2014, the Company has established Corporate Social Responsibility (CSR) Committee and Report on CSR Activities forms part of this Report as Annexure IV.
17. Audit Committee
The Audit Committee of the Company comprises of following members:
Name of the Member |
Designation |
Category |
Mr. Prakash Gurav |
Chairman |
Independent Director |
Mr. Jayant Pendse |
Member |
Independent Director |
Mr. G. L. Vishwanath |
Member |
Independent Director |
Mrs. Manasa Vishwanath |
Member |
Independent Director |
Mr. Umesh Joshi |
Member |
Independent Director |
Mr. Milind Kolte |
Member |
Executive Director |
Mr. Vinod Patil, Company Secretary of the Company acts as the secretary to the Audit Committee and the Managing Director and Chief Financial Officer of the Company are permanent invitees to the Audit Committee Meetings.
The Board has accepted all the recommendation of the Audit Committee.
18. Vigil mechanism for directors and employees
The Vigil Mechanism of the Company, which also incorporates a whistle blower policy in Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, includes an Ethics & Compliance Task Force comprising senior executives of the Company. Protected disclosures can be made by a whistle blower through an e-mail, or dedicated telephone line or a letter to the Task Force or to the Chairman of the Audit Committee.
The Company seeks to maintain the highest ethical and business standards in the course of its business and has put in place mechanism of reporting illegal or unethical behavior. Directors, employees, vendors or customers may report violations of the laws, rules, regulations or unethical conducting by writing to the notified person. The report received from employees will be reviewed by Audit Committee. The Directors and Management Personnel are obligated to maintain confidentiality of such reporting and ensure that the whistle blowers are not subjected to any discriminatory practices. No person has been denied access to the Audit Committee.
The said policy can be accessed at http://www.koltepatil. com/investors/corporate-governance.
19. Nomination and Remuneration Committee
The Nomination and Remuneration Committee of the Company comprises of following members:
Name of the Member |
Designation |
Category |
Mr. Jayant Pendse |
Chairman |
Independent Director |
Mr. Prakash Gurav |
Member |
Independent Director |
Mr. G. L. Vishwanath |
Member |
Independent Director |
Mrs. Manasa Vishwanath |
Member |
Independent Director |
Mr. Umesh Joshi |
Member |
Independent Director |
Mrs. Sunita Kolte |
Member |
Non-Executive Director |
20. Managerial Remuneration
The Details required as per Rule 5(1) and (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given in Annexure V to the Directors report.
21. Employee Stock Option Scheme
The Nomination and Remuneration Committee of the Board of Directors of the Company, inter alia, administers and monitors the Employeesâ Stock Option Scheme of the Company in accordance with the applicable SEBI Guidelines.
The applicable disclosures as stipulated under the SEBI Guidelines as on 31 March, 2017 (cumulative position) with regard to the Employeesâ Stock Option Scheme (ESOS) are provided in Annexure VI to this Report.
22. Secretarial Audit Report
Pursuant to Section 204 of the Companies Act 2013, the Company had appointed M/s. SVD & Associates, Company Secretaries, Pune as its Secretarial Auditors to conduct the secretarial audit of the Company for the Financial Year 201617. The Report of Secretarial Auditor for the Financial Year 2016-17 is annexed to this report as Annexure VII.
23. Corporate Governance Certificate
Report on Corporate Governance for the Financial Year 2016-17, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is presented in a separate section forming part of the Annual Report.
The Company has obtained the Compliance certificate for the Financial Year 2016-17 from the Statutory Auditors i.e. M/s. Deloitte Haskins & Sells LLP for the compliance of conditions of corporate governance as stipulated in Regulation 34 (3) real with Part E of Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
24. Risk management policy
The Company has constituted Risk Management Committee comprising 6 members, in which 3 members are Independent Directors. The Risk Management Committee has approved the Risk Management Policy. The Committee monitors the policy, ensures that the Company is acting appropriately to achieve prudent balance between the risk and reward and evaluates significant risk exposures and assesses the managementâs actions to mitigate the exposures.
25. Directorsâ Responsibility Statement
Your Directors state that:
a) in the preparation of the annual accounts for the year ended 31 March 2017, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same;
b) the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31 March 2017 and of the profit of the Company for the year ended on that date;
c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a âgoing concernâ basis;
e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
26. Managementâs Discussion And Analysis Report
Managementâs Discussion and Analysis Report for the year under review, as stipulated in Regulation 34 (2) (e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section forming part of the Annual Report.
27. Acknowledgements
Your Directors take this opportunity to thank customers, vendors, stakeholders, Central and State Governments, business associates and bankers for their consistent support and co-operation to the Company. Your Directors take this opportunity to thank all the employees. The employees have helped for sustained excellence in performance of the Company.
Finally, the Directors would like to convey their gratitude to the members for reposing their confidence and faith in the Company and its management.
For and on behalf of the Board of Directors,
Rajesh Patil
Date: 30 May 2017 Chairman and Managing Director
Place: Pune DIN 00381866
Mar 31, 2015
Dear members
The Directors have pleasure in presenting 24th Annual Report on the
business and operations of the Company and the Financial Statement for
the year ended 31 March 2015.
1. Financial highlights
(Rs. in Lakhs)
Particular Consolidated
2014-15 2013-14
Revenue from Operations 69,664 76,422
Other Income 1,171 1,516
Total Income 70,835 77,938
Operating Profit before
interest, depreciation,
amortization
and taxes (EBITDA) 20,437 22,082
Depreciation and amortization 1,006 708
Interest and finance charges 4,396 4,567
Profit Before Tax (PBT) 16,206 18,323
Tax expenses 6,021 6,632
Profit After Tax (PAT) 10,185 11,691
Minority Interest 3,653 2,487
Profit for the year 6,532 9,204
Earnings Per share (in Rs.) 8.62 12.15
Particular Standalone
2014-15 2013-14
Revenue from Operations 16,837 18,723
Other Income 4,278 4,403
Total Income 21,115 23,126
Operating Profit before
interest, depreciation,
amortization
and taxes (EBITDA) 4,289 3,664
Depreciation and amortization 392 175
Interest and finance charges 3,160 2,729
Profit Before Tax (PBT) 5,015 5,163
Tax expenses 6,52 525
Profit After Tax (PAT) 4,363 4,638
Minority Interest - -
Profit for the year 4,363 4,638
Earnings Per share (in Rs.) 5.76 6.12
2. Performance of the Company
The highlights of the company's performance as under: Financial
Overview (Consolidated Performance)
Our revenues were lower by 9.00% at Rs. 69,664 lakhs during the year
compared to Rs. 76,422 lakhs in the previous year. Expenses also
reduced by 9.00% to Rs. 50,233 lakhs from Rs. 55,047 lakhs in the
previous year. Earnings Before Interest Taxes and Depreciation was
lower by 7% at Rs. 20,437 lakhs as compared to Rs. 22,082 lakhs. EBITDA
margins expanded from 28.9% to 29.3% during the year. Profit After Tax
(post minority interest) was lower by 29% at Rs. 6,532 lakhs compared
to Rs. 9,204 lakhs in the previous year. Earnings Per Share stood at
Rs. 8.62 as compared to Rs. 12.15 last year. Dividend of Rs. 2.00 per
share, amounting to a payout of 23.00% of the year's profits, has been
recommended by the Board of Directors.
We recorded new sales bookings of 2.9 million square feet during the
year, higher by 38%, against 2.1 million square feet in the previous
year. The value of area sold was Rs. 1,67,796 lakhs, up 46% as compared
to Rs. 1,15,040 lakhs in the previous year. The average sales price
realization stood at Rs. 5,871 per square foot during the year as
compared to Rs. 5,412 per square foot in the previous year, higher by
8%.
Financial Overview (Standalone Performance)
Our revenues in 2014-15 were lower by 10% during the year at Rs. 16,837
lakhs compared to Rs. 18,723 lakhs in the previous year. Earnings
Before Interest Taxes and Depreciation increased by 17% at Rs. 4,289
lakhs as compared to Rs. 3,664 lakhs in the previous year. EBITDA
margins expanded from 19.6% to 25.5% during the year. Profit After Tax
was lower by 6% at Rs. 4,363 lakhs compared to Rs. 4,638 lakhs in the
previous year. Earnings Per Share stood at Rs. 5.76 as compared to
Rs. 6.12.
3. Dividend
Your Directors have recommended a final dividend of Rs. 2 per equity
share on 7,57,74,909 equity shares of Rs. 10 each. This dividend is
subject to the approval of the members at the ensuing 24th Annual
General Meeting.
4. Allotment of Non-Convertible Debentures
During the year under review, the Company has allotted 700 Senior
Secured Rated Listed Taxable Redeemable Non- Convertible Debentures of
Rs. 1,000,000 each fully paid through private placement. The Company
has created Debenture Redemption Reserve of Rs. 583 Lakhs.
5. Fixed Deposits
During the year under review, the Company has not accepted any fixed
deposits under the provisions of the Companies Act, 2013 ("the ActÂ)
and the Company has repaid all the fixed deposits accepted under the
provisions of the Companies Act, 1956. There is no default in repayment
of any deposits/interest thereon.
6. Internal financial controls
The Company has adequate internal financial controls with reference to
financial statements.
7. Details of Subsidiary/Joint Ventures/ Associate Companies
The Statement containing salient features of the financial statement of
subsidiaries/associate companies/joint ventures in Form AOC - 1 is
annexed as Annexure I.
8. Directors and Key Managerial Personnel
Pursuant to Section 152 of the Act, read with Article 167 of the
Articles of Association of the Company, Mr. Naresh Patil - Vice
Chairman (DIN 00881077) will retire by rotation and being eligible,
offered himself for re-appointment at this ensuing Annual General
Meeting.
During the year under review, Mrs. Shraddha Jain was appointed as Chief
Financial Officer of the Company by the Board of Directors in their
meeting held on 18 October 2014.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria
of independence as prescribed both under the Act and Clause 49 of the
Listing Agreement with the Stock Exchanges.
The Company has devised a Policy for performance evaluation of
Independent Directors, Board, Committees and other individual Directors
which includes criteria for performance evaluation of the non-executive
directors and executive directors.
The Board members are provided with necessary documents, reports and
policies to enable them to familiarise with the Company's business.
Periodic presentations are made at the Board and Committee Meetings, on
business and performances. The details of such familiarization
programmes for Independent Directors are posted on the website of the
Company and can be accessed at
http://www.koltepatil.com/investors/corporate- governance.
The Policy for selection of Directors and determining Directors
independence and Remuneration Policy for Directors, Key Managerial
Personnel and other employees is annexed as Annexure II.
9. Meetings of the Board of Directors
Eight Board Meetings were held during the year and the gap between two
meetings did not exceed four months. The dates on which the board
meeting were held as follows:
20 May 2014, 28 June 2014, 13 August 2014, 18 October 2014, 11 December
2014, 16 January 2015, 23 January 2015 and 21 March 2015.
10. Statutory Auditors
M/s. Deloitte Haskins & Sells LLP (LLP Registration No. AAB- 8737, FRN
- 117366W/W-100018), Chartered Accountants, Pune hold office till the
conclusion of the ensuing Annual General Meeting and are eligible for
re-appointment. They have confirmed their eligibility to the effect
that their re-appointment, if made, would be within the prescribed
limits under the Act, and that they are not disqualified for
re-appointment. The Board of Directors recommend their appointment.
11. Contracts or arrangements with related parties
During the year under review, all transactions/arrangements entered by
the Company with related parties were in the ordinary course of
business and on an arm's length basis. All Related Party Transactions
are approved by the Audit Committee.
The Policy on materiality of related party transactions and dealing
with related party transactions as approved by the Board may be
accessed on the Company's website at the link:
http://www.koltepatil.com/investors/corporate-governance.
The details of all transactions/arrangement with related party are
given in the Note No. 41 in Notes to Accounts forming part of the
Audited Finance Statement.
12. Conservation of energy, technology absorption and foreign exchange
earnings and outgo
As the Company is not engaged in the manufacturing activities, the
information related to Conservation of energy, technology absorption
has not been provided.
The details of Foreign Exchange earnings and outgo are given in Note
No. 31 in Notes to accounts forming part of the Audited Financial
Statements.
13. Particulars of loans, guarantees and investments
The particulars of loans, guarantees and investments are given in Note
No. 13 and 47 in Notes to accounts forming part of the Audited
Financial Statements.
14. Extract of the annual return
Pursuant to the provisions of Section 92 read with Rule 12 of the
Companies (Management and administration) Rules 2014, the extract of
the annual return in Form No. MGT - 9 as provided in Annexure III.
15. Corporate Social Responsibility (CSR)
In compliance with Section 135 of the Act, read with the Companies
(Corporate Social Responsibility Policy) Rules 2014, the Company has
established Corporate Social Responsibility (CSR) Committee and Report
on CSR Activities forms part of this Report as Annexure IV.
16. Audit Committee
The Audit Committee of the Company comprises the following members:
Name of the Member Designation Category
Mr. Prakash Gurav Chairman Independent Director
Mr. Achyut Watve Member Independent Director
Mr. Jayant Pendse Member Independent Director
Mr. G L Vishwanath Member Independent Director
Mrs. Manasa Vishwanath Member Independent Director
Mr. Milind Kolte Member Executive Director
Mr. Vinod Patil, Company Secretary of the Company acts as the secretary
to the Audit Committee and the Managing Director and Chief Financial
Officer of the Company are permanent invitees to the Audit Committee
Meetings.
The Board has accepted all the recommendation of the Audit Committee.
17. Vigil mechanism for directors and employees
The Vigil Mechanism of the Company, which also incorporates a whistle
blower policy in terms of the Listing Agreement, includes an Ethics &
Compliance Task Force comprising senior executives of the Company.
Protected disclosures can be made by a whistle blower through an
e-mail, or dedicated telephone line or a letter to the Task Force or to
the Chairman of the Audit Committee.
The Company seeks to maintain the highest ethical and business
standards in the course of its business and has put in place
mechanism of reporting illegal or unethical behavior. Directors,
employees, vendors or customers may report violations of the laws,
rules, regulations or unethical conducting by writing to the notified
person. The report received from employees will be reviewed by Audit
Committee. The Directors and Management Personnel are obligated to
maintain confidentiality of such reporting and ensure that the whistle
blowers are not subjected to any discriminatory practices. No person
has been denied access to the Audit Committee.
The said policy can be accessed at http://www.koltepatil.com/
investors/corporate-governance.
18. Nomination and Remuneration Committee
The Nomination and Remuneration Committee of the Company comprises of
following members:
Name of the Member Designation Category
Mr. Jayant Pendse Chairman Independent Director
Mr. Prakash Gurav Member Independent Director
Mr. G. L. Vishwanath Member Independent Director
Mr. Achyut Watve Member Independent Director
Mrs. Manasa Vishwanath Member Independent Director
Mr. Milind Kolte Member Executive Director
19. Managerial Remuneration
The Details required as per Rule 5(1) and (2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 are
given in Annexure V.
20. Employee Stock Option Scheme
The Nomination and Remuneration Committee of the Board of Directors of
the Company, inter alia, administers and monitors the Employees' Stock
Option Scheme of the Company in accordance with the applicable SEBI
Guidelines.
The applicable disclosures as stipulated under the SEBI Guidelines as
on 31 March 2015 (cumulative position) with regard to the Employees'
Stock Option Scheme (ESOS) are provided in Annexure VI.
21. Secretarial Audit Report
Pursuant to Section 204 of the Companies Act 2013, the Company had
appointed M/s. SVD & Associates, a Firm of Practicing Company
Secretaries, Pune as its Secretarial Auditors to conduct the
secretarial audit of the Company for the FY 2014-15. The Report of
Secretarial Auditor for the FY 2014-15 is annexed to this report as
Annexure VII.
22. Corporate Governance Certificate
Report on Corporate Governance for the FY 2014-15, as stipulated under
Clause 49 of the Listing Agreement with the Stock Exchanges, is
presented in a separate section forming part of the Annual Report.
The Company has obtained the Compliance certificate for the FY 2014-15
from the statutory auditors i.e. M/s. Deloitte Haskins & Sells LLP for
the compliance of conditions of corporate governance as stipulated in
Clause 49 of the Listing Agreement.
23. Risk management policy
The Company has constituted Risk Management Committee comprising 6
members, of which 3 members are Independent Directors. The Risk
Management Committee has approved the Risk Management Policy. The
Committee monitors the policy, ensures that the Company is acting
appropriately to achieve prudent balance between the risk and reward
and evaluates significant risk exposures and assesses the management's
actions to mitigate the exposures.
24. Directors' Responsibility Statement
Your Directors state that:
a) in the preparation of the annual accounts for the year ended 31
March 2015, the applicable accounting standards read with requirements
set out under Schedule III to the Act, have been followed and there are
no material departures from the same;
b) the Directors have selected such accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at 31 March 2015 and of the profit of the Company for
the year ended on that date;
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a 'going concern'
basis;
e) the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively; and
f) the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating effectively.
25. Management's Discussion And Analysis Report
Management's Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges, is presented in a separate section forming part of the
Annual Report.
26. Acknowledgements
Your Directors take this opportunity to thank customers, fixed deposit
holders, vendors, stakeholders, Central and State Governments, business
associates and bankers for their consistent support and co-operation to
the Company. Your Directors take this opportunity to thank all the
employees for consistently delivering quality to our customers. The
employees have worked with the principles of honesty, integrity, fair
play and helped ensure a sustained excellence in performance of the
Company.
Finally, the Directors would like to convey their gratitude to the
members for reposing their confidence and faith in the Company and its
management.
For and on behalf of the Board of Directors,
Rajesh Patil
Pune Chairman and Managing Director
26 May 2015 DIN 00381866
Mar 31, 2014
The Members
The Directors have pleasure in presenting 23rd Annual Report on the
business and operations of the Company together with the Audited
Accounts for the financial year ended on 31st March 2014.
The Company is engaged in various segments namely Real Estate
Development, Hospitality and Retail. However, in the financial year
2013-14, there was only one reportable segment namely Real Estate
Development.
Financial Highlights:
(Rs. In Lakhs)
Particulars Consolidated Standalone
2013-14 2012-13 2013-14 2012-13
Revenue from Operations 76,422 72,748 18,723 18,141
Other Income 1,516 3,653 4,403 4,963
Total Income 77,938 76,401 23,126 23,104
Profit before interest,
depreciation, 23,598 22,858 8,067 10,055
amortization and taxes
(EBITDA)
Depreciation and
amortization 708 587 175 147
Interest and finance charges 4,567 3,634 2,729 984
Profit Before Tax 18,323 18,637 5,163 8,924
Tax expenses 6,632 6,246 525 2,357
Prof it After Tax 11,691 12,391 4,638 6,567
Minority Interest 2,487 1,647 -- --
Profit for the year 9,204 10,744 4,638 6,567
Earnings Per share (inRs.) 12.15 14.18 6.12 8.37
Dividend
Your Directors had declared and paid interim dividend ofRs. 1.50 per
share on 7,57,74,909 equity shares during the year under review.
Further, your Directors have recommended a final dividend of Rs. 1.60 per
equity share on 7,57,74,909 equity shares ofRs. 10 each. This dividend is
subject to the approval of the members at the forthcoming 23rd Annual
General Meeting to be held on September 13, 2014.
During the year, the Company has paid/recommended dividend aggregating
to Rs. 3.10 per share i.e. 31% of the Face Value of the Equity Shares of
Rs. 10 each.
Projects underdevelopment
"Life Republic" is situated at Jambhe, NearHinjewadi, Pune. The phase-l
(approx. 150 acres) of the Life Republic project consists of various
sectors i.e. 1/2/3 BHK Apartments, Row Houses, Twin Bungalows. The
construction of various sectors of the phase 1 is completed more than
80% and the Company expects to deliver the possession before November
2014. Also, the Company has completed a substantial infrastructure of
the project. The Company has received location clearance for Phase II
of the project and applied for the requisite approvals. The phase 1 of
the project is almost sold out.
"Ivy Estates" is located at Wagholi, Pune comprising Development form
of 1 BHK to Independent Villas. It is spread across over approx. 73
acres of lush green surroundings. During the year, the company has
completed the construction of 19 Lakhs sq. ft. saleable area in 1st
phase and also developed the substantial infrastructure for IVY estate
project. In respect of 2nd phase the Company has applied for requisites
approvals, it is expecting all required approvals in the middle of FY
2014-15. The 1st phase of the project is almost sold out and the
Company has given the possession of more than 1000 units. The Company
is expecting good response for the proposed 2nd phase.
"24K Jazz (24K Glitterati II)" is another masterwork by 24K brand,
based near the iconic Glitterati project. This project is designed for
people who are born to indulge in extravagant luxury. The charismatic
features and sen- sational design evidently elevate 24K Glitterati
Phase II to the next level of architectural brilliance. The project is
pre-launched and the company expects good response.
"Tuscan Estate" is located on the eastern side of the Pune city having
many IT companies in the vicinity. The project consists of 3 BHK Luxury
Apartments and 4 BHK penthouses. The total saleable area is approx.
129,400 sq. ft. The phase 1 of project is almost sold out and
construction of phase I is completed and the company has given the
possession to the flat owners. The construction of 2nd phase is in
progress. The Directors foresee a good response for the 2nd phase of
the project.
"Down Town" is located at Kharadi. The project consists of residential
and commercial buildings. The project is divided into several parts
namely Beryl, Cheryl and Langston (Residential Buildings) Arissa
Avenues (Com- mercial Buildings). The Beryl project phase - 2 has been
sold out to the extent of 65% and the project is expected to be
completed by June 2015. The Cheryl project phase -2 is sold out to the
extent of 55% and expected to be completed by May 2015. The Langston
project is 80% sold out and expected to be completed by May 2015. The
Arissa Avenues is 100% sold out and nearing completion. City vista is
the new feather in our cap. Located in the Downtown, it comprises
office space and retail ranging from area 708 to 5000 sq. ft. The
project is 60% sold out and possession is expected to be given around
December 15 onwards.
"Florence" is a residential project at NIBM Road, Pune. The Company had
completed its phase I i.e. Margosa Heights. During the year, the
Company had launched the Phase II of the project named as "Florence"
comprising saleable area of approx. 540,000 sq. ft. The construction is
in progress. The Company has received an excellent response for the
project as it offers ambience of natural beauty while being closely
connected to the essential necessities of life.
"24K Glamore" is not just any other project. It is being conceived with
a purpose to appeal to rich taste. Located in the area of 45-acre Hills
and Dales. 24K Glamore promises quality of life with a wide and well
developed roads and ready to use amenities, beautiful villas in the
vicinity, landscaped gardens with unique water bodies and rejuvena-
tion facilities make sure you are always surrounded with the best that
life has to offer.
"Three Jewels" is the project that is considered as gateway to
prosperity. The Project is coming up near peaceful but well-connected
Katraj - Kondhwa Road. Three Jewels enjoys complete social
infrastructure and excellent con- nectivity to all important parts of
the city. Spread across 35 acres, it features 1, 2 and compact 3
bedroom apart- ments and excellent lifestyle amenities.
Three Jewels is a home for everyone who wants to enjoy the benefits of
living in a city without having to put up with the chaotic life. The
homes with amenities and atmosphere full of serenity; offers everything
that needs to enjoy life in every sense.
We have reserved more than 50% area of the project for open spaces
which offers fresh air and closeness to nature and gardens. Every home
gets beautiful views of the amenity space or surrounding majestic
hills. The Company has launched the project and received an
overwhelming response.
Projects Highlights - Bangalore
"Raaga" thoughtfully designed, competitively priced quality homes
comprising 2 and 3 BHK on Kannur Road near Thanissandra, Bangalore.
Raaga is spread over 4.5 acres and having saleable area of approx.
6,51,769 sq. ft. and will comprise 12 blocks to be built in two phases.
These 590 homes offer optimal value in terms of location, conve-
nience, lifestyle and price. The Company has launched the phase 1 of
the project and obtained the commencement certificate for the project
and construction has started. The Company foresee a good response for
the project.
"Mirabilis" is a upcoming luxury residential project situated at
Horamavu - Banaswadi Road, Bangalore having saleable area of approx.
7,84,066 sq. ft. The Company has applied for the requisite approvals.
Projects in Mumbai
Link Palace Co-operative Housing Society Limited is the company''s first
project in Mumbai. Link Palace is located in the western suburb of
Mumbai on Khar-Linking Road, next to shopping arcades and premium
branded showrooms like Benetton, Tommy Hilfiger, OVS etc. The project
has a plot area of 1,594 square meters with the company hav- ing an
economic interest of -20,000 square feet. Jay Vijay CHS is the second
project located at Ville Parle East, having a total plot size of 8,979
square meters with the company having an economic interest of 1.6 lakh
square
feet. The second project, Jumbo Darshan, is located in Andheri East,
with a total plot size of 7,077 square meters with the company having
an economic interest of 1.1 lakh square feet. The Company will commence
construction on Link Palace by mid-FY2015 and will launch the other two
projects once the requisite approvals are in place.
Projects in Goa
"Mar Esmeralda" is designed in a contemporary interpretation of Goan
Architecture; it offers 62 residences with the finest of luxury
features. At these finely crafted 3 BHK homes, even time stretches
luxuriously in ap- preciation of life. The living spaces are designed
to stretch the definition of luxury. Surrounded in pristine greens, Mar
Esmeralda is located close to some of the best beaches in Goa. The
beach life is just a walk away. Mar Esmeralda is the perfect
residential destination, bringing together the highlights of Goan life.
The Project is launched in June 2014 and the construction has been
commenced and the Company foresees a good response.
The projects namely Life Republic, Ivy Estates, Tuscan Estates, Down
Town, Florence and Three Jewels are de- veloped under Special Purpose
Vehicle and rest of the Projects are developed by the Company.
Directors
During the year under review, Mr. Prakash Gurav has been appointed as
Additional Director (Non-Executive Inde- pendent Director) with effect
from August 13, 2014 and the Board recommends his appointment for the
approval of members in the ensuing 23rd Annual General Meeting. Mr.
Manish Doshi - Non Executive Independent Director has been resigned
from the Board with effect from August 13, 2014.
The current composition of Board of Directors is as follows:
1. Mr. Rajesh Patil - Chairman and Managing Director
2. Mr. Naresh Patil - Vice Chairman
3. Mr. Milind Kolte - Executive Director
4. Mrs. Sunita Kolte - Executive Director
5. Mrs. Vandana Patil -Executive Director
6. Mr. Achyut Watve - Non Executive Independent Director
7. Mr. Jayant Pendse - Non Executive Independent Director
8. Mr. G L Vishwanath - Non Executive Independent Director
9. Mrs. Manasa Vishwanath - Non Executive Independent Director
10. Mr. Prakash Gurav- Non Executive Independent Director
Pursuant to Section 152 of the Companies Act, 2013 read with the
Article 167 of Articles of Association of the Com- pany, Mrs. Vandana
Patil, Mrs. Manasa Vishwanath and Mr. Jayant Pendse retire by rotation
and being eligible, have offered themselves for re-appointment at the
ensuing 23rd Annual General Meeting.
The Profile of Directors seeking appointment and re-appointment, as
required under clause 49 of the Listing Agree- ment, has been annexed
to the Notice of the 23rd Annual General Meeting.
Subsidiary Companies
The Company has 13 subsidiary Companies as on 31st March 2014 namely,
Tuscan Real Estate Private Limited, Kolte-Patil Real Estate Private
Limited, Bellflower Properties Private Limited, Snowflower Properties
Private Lim- ited, Yashowardhan Promoter and Developers Private
Limited, Jasmine Hospitality Private Limited, Sylvan Acres Realty
Private Limited, Lilac Hospitality Private Limited, Olive Realty
Private Limited, PNP Retail Private Limited, PNP Agrotech Private
Limited, Regenesis Facility Management Company Private Limited and
Regenesis Project Management Company Private Limited.
Particulars under section 212 of the Companies Act, 1956
As per Section 212 of the Companies Act, 1956, the Company is required
to attach the Directors'' Report, Balance Sheet and Statement of Profit
and Loss of its subsidiaries to its Annual Report. The Ministry of
Corporate Affairs vide its General Circular No. 2/2011 dated 8th
February 2011 has granted exemption for not attaching Annual Report of
Subsidiary Companies provided that, such Companies publish the Audited
Consolidated Financial Statement in the Annual Report. Your Company has
complied with all the requirements of the circular of Ministry and
accordingly, the Annual Report does not contain the Financial
Statements of the above Subsidiary Companies. The audited annual
accounts and related information of subsidiaries will be made available
upon request. These documents will also be available for inspection
during business hours at our Registered Office in Pune, Maharashtra,
India.
The financial details of the Subsidiary Companies, as well as the
extent of holding as required under the aforesaid General Circular, are
provided in Annexure I to the Directors'' Report.
Amalgamation of Oakwoods Hospitality Private Limited
Pursuant to the Scheme of Amalgamation as approved by High Court,
Bombay, Oakwoods Hospitality Private Limited (a Wholly Owned Subsidiary
of the Company) has been merged with the Company with effect from April
01, 2013. The High Court, Bombay has approved the scheme vide their
order dated March 18, 2014 with effect from April 01, 2013. The all the
assets and liabilities have been transferred with effect from April 01,
2013 in the books of the Company. The detailed note on amalgamation is
given in point no. 33 in ''Notes to Accounts'' forming part of the
Audited Financial Statements.
Fixed Deposits
Your Company had been accepting Fixed Deposits for a period of 1 year,
2 years and 3 years. The Management is thankful to all the investors
for participating in the scheme and for the faith reposed in the
Company.
The outstanding Fixed Deposits accepted as on 31st March 2014 stood at
Rs. 1265 Lakhs as against Rs. 1691 Lakhs in the previous year. For the year
ended 31st March 2014, your Company has mobilized deposits aggregating
to Rs.235 Lakhs (Previous yearRs. 982 Lakhs). None of the deposits which
have matured and claimed have remained unpaid. Pursuant to the
provisions of the Companies Act, 2013, the Company will be repaying the
outstanding fixed deposits by March 31, 2015.
Investors'' Relation and Grievances
The Company has a Shareholders'' and Investors'' Grievance Committee
which addresses the issues relating to investors. There were no
investor grievances pending as on 31st March 2014. A confirmation to
this effect has been received from the Company''s Registrar and Share
Transfer Agent. The details regarding the investor complaints received
and resolved during the year are mentioned in the Report on Corporate
Governance annexed to this report.
Directors'' Responsibility Statement
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, your Directors state that:
- In preparation of these accounts, the accounting standards made
applicable by Institute of Chartered Accoun- tants of India have been
followed.
- We selected appropriate accounting policies which have been applied
consistently and have made judgments and estimates that are reasonable
and prudent so as to ensure that the accounts give a true and fair view
of the state of affairs of the Company as at 31st March 2014 and of the
profit of the Company for the year ended on that date.
- We have taken a proper and sufficient care for maintenance of
appropriate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and defecting frauds and other irregularities.
- The accompanying financial statements of the Company have been
prepared on a going concern basis.
Auditors
The Auditors of the Company M/s. Deloitte Haskins & Sells LLP (Firm
Registration No. 117366W/W-100018), Chartered Accountants, Pune retire
at the ensuing Annual General Meeting. They have confirmed their
eligibility and willingness to accept appointment, if re-appointed.
Your Directors recommend their re-appointment.
Human Resources
As we work towards building a sustainable organization, the two primary
focus areas are to build a culture of meritoc- racy and customer
centricity. Thus HR will focus on creating and implementing the
building blocks towards this goal.
This year, we aim to intensify focus on employees having clarity on
their roles and responsibilities, creating job awareness and driving
employee accountability.
HR will focus on driving the variable compensation which will be linked
to individual as well as organization perfor- mance. This concept will
be further drilled down by defining interfaces required with different
functions by putting RACI for key processes and ensuring that the
process owners work cohesively, as an integrated team.
In order to build a motivating workforce, this year we intend to roll
out the Employee Reward and Recognition pro- gram that will ensure that
attributes beyond performance are recognized and rewarded.
To ensure that we build a sustainable organisation that can support our
growth and expansion plans, creating a leadership pipeline, is one of
our key focus area. This will entail developing leadership and business
competencies for employees across the various levels. We will continue
to recruit from recognized institutions. We plan to procure training
software that will help us train our employees on business
competencies.
HR will focus on building capabilities by using the Capability Maturity
Model in order to ensure that our goals and Objectives are achieved.
Conservation of Energy, Technology absorption, Foreign Exchange
Earnings and Outgo
As the Company is not engaged in the manufacturing activities, the
information related to Conservation of Energy and Technology absorption
as required under Section 217(1)(e)ofthe Companies Act, 1956 read with
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, therefore, these details have not provided.
The details of Foreign Exchange earnings and Outgo are given in point
no. 30 in ''Notes to Accounts'' forming part of the Audited Financial
Statements.
Particulars of the Employees
A statement required under Section 217(2A) of the Companies Act, 1956
has been furnished herein as Annexure II and forms a part of this
Report.
Report on Corporate Governance
Your Directors adhere to the requirements set out in Clause 49 of the
Listing Agreement with Stock Exchanges. Report on Corporate Governance
as stipulated in the said Clause is annexed and forms a part of this
Report.
Management Discussion and Analysis Report
Management Discussion and Analysis Report as stipulated under Clause 49
of the Listing Agreement is annexed hereto and forms a part of this
Report.
Acknowledg ments
Your Directors take this opportunity to thank customers, fixed deposit
holders, vendors, stakeholders, Central and State Governments, business
associates and bankers for their consistent support and co-operation to
the Company. Your Directors take this opportunity to thank all the
employees for consistently delivering quality to our customers. The
employees have worked with the principles of honesty, integrity, fair
play and helped ensure a sustained excel- lence in performance of the
Company.
Finally, the Directors would like to convey their gratitude to the
members for reposing their confidence and faith in the Company and its
management.
For and on behalf of the Board
Pune Rajesh Patil
Date: August 13, 2014 Chairman and Managing Director
Mar 31, 2013
To, The Members,
The Directors have pleasure in presenting 22nd Annual Report on the
business and operations of the Company together with the Audited
Accounts for the financial year ended on 31st March 2013.
The Company is engaged in various segments namely Real Estate
Development, Hospitality and Retail. However, in the financial year
2012-13, there was only one reportable segment namely Real Estate
Development.
Financial Highlights
(Rs. In Lakhs)
Particulars 2012-13 2011-12
Net Sales and Other Income 23,103.67 11,430.28
Less: Expenditure 13,049.21 6,561.23
Less: Financial Charges 924.42 620.47
Less: Depreciation/Amortization 146.16 127.37
Profit Before Tax 8,924.42 4,121.22
Less: Provision for taxation 2,357.35 1,084.39
Profit for the period 6,567.07 3,036.83
Add: Balance of Profit and Loss Account
brought forward from the previous year 31,128.84 29,804.79
Profit available for appropriation 37,695.91 32,841.62
Appropriations:
Transfer to General Reserve 656.71 367.72
Proposed Dividend including Interim
Dividend Paid (includes tax on dividend) 3078.37 1,409.08
Balance carried to Balance Sheet 33,960.83 31,064.82
During the year under review, the total revenue of the Company stood at
Rs. 23,103.67 Lakhs as compared to Rs. 11,430.28 Lakhs in the previous
year, an increase of 102.13%. The Profit before Tax for the year ended
31st March, 2013 stood at Rs. 8,924.42 Lakhs as compared to Rs.
4,121.22 Lakhs in the corresponding period of the previous year, an
increase of 116.55%.The profit after Tax was Rs. 6,567.07 Lakhs,
compared to Rs. 3,036.84 Lakhs during 2011-12, an increase of 116.25%.
Dividend
Your Directors has declared and paid interim dividend of Rs. 2.00 per
share on 7,57,74,909 equity shares during the year under review.
Further, your Directors have recommended a final dividend of Rs. 1.50
per equity share on 7,57,74,909 equity shares of Rs. 10 each. This
dividend is subject to the approval of the members at the forthcoming
22nd Annual General Meeting to be held on 27th July, 2013.
During the year, the Company has recommended dividend aggregating to
Rs. 3.5 per share i.e.35% of the Face Value of the Equity Shares of Rs.
10 each.
Projects under development
Projects Highlights - Pune
"Life Republic" is situated at Jambhe, Near Hinjewadi, Pune. During
the year under review, the phase I (approx. 150 acres) of the project
consisting 1/2/3 BHK Apartments, Row Houses, Twin Bungalows has
received the overwhelming response. The Company has sold 96% of the
units in the project. The construction is under development and
expected to be completed by March 2014 along with infrastructural
developments. The project has received "Realty Plus Marketing
Award" for "Innovative Real Estate Marketing Campaign of the
Year".
"Ivy Estates" is located at Wagholi, Pune comprising of mixed
Development of 1 BHK to Independent Villas. It is spread across over
approx. 73 acres of lush green surroundings. During the year under
review, 91% of the units in phase 1 have been sold out. Now, the
Company is planning to launch the next phase of the project consisting
apartments and villas and approximate saleable area approx. 2.5 million
sq. ft. The project has won two awards namely "Best Affordable/Budget
Housing Developers of the Year-West India" which is a National Level
Award, at the 4th Estate Summit and Awards, West India Edition
organized by the Bloomberg TV Group and "Best Affordable/ Budget
Housing Project 2012 - Pune" which is a City Level Award, organized
by RR Kabel & CNBC channel at the "CNBC AWAAZ REAL ESTATE AWARDS
2012".
"Glitterati" is an ongoing project of the Company which is located
at just 4 kms away from Pune''s major IT hub, Hinjewadi Infotech Park.
The project offers finest homes, extraordinary in terms of location,
engineering, designing and amenities. This project has exclusive,
river-facing homes starting from 2,000 sq. ft. going all the way up to
6,000 sq. ft., 5 towers offer 3 and 4 bedroom super luxurious
apartments, garden homes and 5 bedroom duplex penthouses with terrace
deck, garden and a private pool. The phase I of the project is almost
sold out and the possession and hand over process is started. You
Director foresee a good response for the next phase of the project.
"Tuscan Estate" is located on the eastern side of the Pune city
having many IT companies in vicinity. The project consists of 3 BHK
Luxury Apartments and 4 BHK penthouses. The total saleable area is
approx. 129,400 sq. ft. The project is almost 85% sold out and
expected to be completed by August 2013.
"Down Town" is located at Kharadi. The project consists of
residential and commercial buildings. The project is divided into
several parts namely Beryl, Cheryl and Langston (Residential Buildings)
Arissa Avenues (Commercial Buildings). The Beryl is 90% sold out and
expected to be completed by June 2013. The Cheryl is 85% sold out and
expected to be completed by May 2014. The Langston is 75% sold out and
expected to be completed by May 2014. The Arissa Avenues is 70% sold
out and the construction is in progress.
"Florence" is a residential project at NIBM Road, Pune. The Company
had completed its phase I i.e. Margosa Heights. During the year, the
Company had launched the Phase II of the project named as
"Florence" comprising of saleable area approx. 540,000 sq. ft. The
Company had received a good response for the project as it offers
ambience of natural beauty while being closely connected to the
essential necessities of life.
"Green Olive" is a 2 and 3 BHK Luxurious Apartments project which
is located at Hinjewadi, where style and luxury merge beautifully to
form the perfect home. The phase 1 of the project is almost sold out
and the possession and hand over process is started. City Centre is a
commercial project in Hinjewadi with multiple space size offerings
spread across 52,000 sq. ft. The project is ready for possession.
"Allura" (24K) is a creme de la creme project that seeks to add a
world-rich edge to your lifestyle. From the aesthetic bent of the
layouts to the selection of amenities, from the lush landscaping to the
stylish tiles beneath your feet - even the minutest detail is
underlined by a delicate blend of good taste, worldliness,
sophistication and subtlety. The Company has completed the Phase I of
the project. Total saleable area of Phase I is 2,80,000 sq. ft and the
Phase I is almost sold out. The Construction is in progress. The
Company is planning to launch the Phase II of the Project. "City
Bay" is a commercial project of the Company situated at Boat Club
Road, Pune with total saleable area of approximately 95,000 sq. ft. The
project is almost sold out and expected to be complete by June 2013.
Projects Highlights - Bangalore
"Utsav Raaga" thoughtfully designed, competitively priced quality
homes comprising 2 & 3 BHK on Kannur Road near Thanissandra, Bangalore.
Raaga is spread over 4.5 acres and will comprise 12 blocks to be built
in two phases. These 590 homes offer optimal value in terms of
location, convenience, lifestyle and price. The Company has launched
the phase 1 of the project and obtained the commencement certificate
for the project and construction has been started.
"Alyssa" is a commercial project of the Company located on the
plush Richmond Road at Bangalore with total saleable area of
approximately 43,000 sq. ft. The ground and mezzanine floor is being
considered as showroom space and the upper floors for office use. The
Building Structure is ready for fit outs and "Occupancy
Certificate" for the building completion has been obtained from
Authorities.
"The Classique" is a commercial project located on Sarjapura Main
Road, Koramangala III Block, Bangalore. The building consists of double
basement plus ground plus 9 floors and having total saleable area of
approximately 1,98,000 sq. ft. The Construction is in progress.
The projects namely Life Republic, Ivy Estates, Tuscan Estates, Down
Town, Florence and Green Olive are developed under Special Purpose
Vehicle and rest of the Projects are developed by the Company.
Directors
During the year under review, the Board has appointed Mrs. Vandana
Patil as Executive Director of the Company. Further, there is no
change in the composition of the Board of Directors.
Pursuant to Section 256 of the Companies Act, 1956 read with the
Article 167 of Articles of Association of the Company, Mr. Milind
Kolte, Mrs. Sunita Kolte and Mr. G. L. Vishwanath; Directors, retire by
rotation and being eligible, have offered themselves for re-appointment
at the ensuing Annual General Meeting.
The Profile of Directors seeking appointment and re-appointment, as
required under clause 49 of the Listing Agreement, has been annexed to
the Notice of the 22nd Annual General Meeting.
Subsidiary Companies
The Company has 14 subsidiary Companies as on 31st March, 2013 namely,
Tuscan Real Estate Private Limited, Kolte-Patil Real Estate Private
Limited, Bellflower Properties Private Limited, Yashowardhan Promoter
and Developers Private Limited, Oakwoods Hospitality Private Limited,
Jasmine Hospitality Private Limited, Sylvan Acres Realty Private
Limited, Lilac Hospitality Private Limited, Olive Reality Private
Limited, Snowflower Properties Private Limited, PNP Retail Private
Limited, PNP Agrotech Private Limited, Regenesis Facility Management
Company Private Limited and Regenesis Project Management Company
Private Limited.
Particulars under section 212 of the Companies Act, 1956
As per Section 212 of the Companies Act, 1956, the Company is required
to attach the Directors'' Report, Balance Sheet and Statement of
Profit and Loss of its subsidiaries to its Annual Report. However,
Ministry of Corporate Affairs vide its General Circular No. 2/2011
dated 8th February, 2011 has granted exemption for not attaching Annual
Report of Subsidiary Companies provided that, such Companies publish
the Audited Consolidated Financial Statement in the Annual Report. Your
Company has complied with all the requirements of the circular of
Ministry and accordingly, the Annual Report does not contain the
Financial Statements of the above Subsidiary Companies. The
Consolidated Financial Statements present a full and fair picture of
the state of affairs and the financial condition. The audited annual
accounts and related information of subsidiaries will be made available
upon request. These documents will also be available for inspection
during business hours at our Registered Office in Pune, Maharashtra,
India. The financial details of the Subsidiary Companies, as well as
the extent of holding as required under the aforesaid General Circular,
are provided in Annexure I to the Directors'' Report.
Fixed Deposits
Your Company has been accepting Fixed Deposits for a period of 1 year,
2 years and 3 years. The Company has received an overwhelming response
from the investors. The Shareholders of the Company, Senior Citizens,
Flat Owners of Kolte-Patil group, Handicapped Persons, Armed Force
Personnel and Employees of Kolte-Patil Group are entitled to receive an
additional 0.50% rate of interest on the deposits invested with the
Company. The Management of the Company is thankful to all the investors
for participating in the scheme and for the faith reposed in the
Company. Fixed Deposits accepted as on 31st March, 2013 stood at Rs.
1691.25 Lakhs as against Rs. 909.22 Lakhs in the previous year. For the
year ended 31st March, 2013, your Company has mobilized deposits
aggregating to Rs. 982.35 Lakhs (Previous year Rs. 510.85 Lakhs). None
of the deposits which have matured and claimed have remained unpaid.
Investors'' Relation and Grievances
The Company has a Shareholders'' and Investors'' Grievance Committee
which addresses the issues relating to investors. There were no
investor grievances pending as on 31st March, 2013. A confirmation to
this effect has been obtained from the Company''s Registrar and Share
Transfer Agent. The details regarding the investor complaints received
and resolved during the year are mentioned in the Report on Corporate
Governance annexed to this report. Directors'' Responsibility
Statement
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, your Directors state that:
- In preparation of these accounts, the accounting standards made
applicable by Institute of Chartered Accountants of India have been
followed.
- We selected appropriate accounting policies which have been applied
consistently and have made judgments and estimates that are reasonable
and prudent so as to ensure that the accounts give a true and fair view
of the state of affairs of the Company as at 31st March, 2013 and of
the profit of the Company for the year ended on that date.
- We have taken a proper and sufficient care for maintenance of
appropriate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and defecting frauds and other irregularities.
- The accompanying financial statements of the Company have been
prepared on a going concern basis. Auditors
The Statutory Auditors of the Company M/s. S P C M & Associates,
Chartered Accountants, Pune has express their unwillingness to continue
as Statutory Auditors of the Company. Hence, the Board of Directors of
the Company on the recommendation of Audit Committee, subject to the
approval of members, has consider the appointment of M/s. Deloitte
Haskins & Sells, Chartered Accountants, Pune as Statutory Auditors of
the Company in place of retiring auditors M/s. S P C M & Associates,
Chartered Accountant, Pune to hold the office from the conclusion of
this ensuing Annual General Meeting until the conclusion of the next
Annual General Meeting on such remuneration as may be agreed between
the Board and/or Audit Committee and the Auditors. The Board recommends
appointment of M/s. Deloitte Haskins & Sells, Chartered Accountants,
Pune as Statutory Auditors of the Company.
Human Resources
Since inception, Kolte-Patil has always viewed its people working in
the organization as its great and the most valued asset. Throughout the
year, the Company has introduced several employee related initiatives
aimed at enhancing productivity, morale and motivation with greater
focus on development and retention of the ''Quality'' talent. The Company
has conducted various Training and Development Programs and organized
welfare activities for all levels across the functions to help
employees get comfortable in their jobs. Few major activities are;
- We have conducted various activities for the employees like; Free
Eye-Check-UP Camp, Free Physiotherapy Camp, Birthday Celebration,
Awareness program of Safety & Health conducted for Labours, Adventurous
Outing, Navratri Celebration, Blood Donation Camp at Different sites,
Medical Checkup of HOD''s, Women''s Day Celebration, First aid Training
program and Safety week celebration, etc.
- As HR Functioning is changing with time & with this change Training &
Development activities are now equally important to modify them with
the changing scenario. The Company has undertaken various training
programmes for the development of employees at all levels like;
Managerial Effectiveness, Time Management, Corporate Grooming and
business etiquettes, Sale workshop, Best Safety practices, project
Management Training and Special Initiative we have taken is providing
spiritual training on Positive Emotions and Positive thinking.
- Now a day''s face of the Appraisal system in the organization has also
changed and the focus of the organization is turning to performance
management system and specifically to individual performance. Based on
performance the employees are recognized in the organization.
- Building a talent pipeline has been an important initiative for the
Company. The Company is recruiting management students and Fresh
engineers from Top Institutes.
All of these things help strengthen employee involvement and boost the
overall morale of the workplace and we at KPDL are continuously
striving for employee satisfaction for better productivity.
The total employee''s strength at group level, as on 31st March, 2013 is
889 as compared to 818 in the previous year.
Conservation of Energy, Technology absorption, Foreign Exchange
Earnings and Outgo
As the Company is not engaged in the manufacturing activities, the
information related to Conservation of Energy and Technology absorption
as required under Section 217(1)(e) of the Companies Act, 1956 read
with Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, therefore, the details has not provided. The
details of Foreign Exchange earnings and Outgo are given in point no.
15 in ''Notes to Accounts'' forming part of the Audited Annual Accounts.
Particulars of the Employees
A statement required under Section 217(2A) of the Companies Act, 1956
has been furnished herein as Annexure II and forms a part of this
Report.
Report on Corporate Governance
Your Directors adhere to the requirements set out in Clause 49 of the
Listing Agreement with Stock Exchanges. Report on Corporate Governance
as stipulated in the said Clause is annexed and forms a part of this
Report.
Management Discussion and Analysis Report
Management Discussion and Analysis Report as stipulated under Clause 49
of the Listing Agreement is annexed hereto and forms a part of this
Report.
Acknowledgments
Your Directors take this opportunity to thank customers, fixed deposit
holders, vendors, stakeholders, Central and State Governments, business
associates and bankers for their consistent support and co-operation to
the Company. Your Directors take this opportunity to thank all the
employees for rendering high quality service to all the Company''s
customers. The employees have worked with the principles of honesty,
integrity, fair play and helped ensure a sustained excellence in
performance of the Company.
Finally, the Directors would like to convey their gratitude to the
members for reposing their confidence and faith in the Company and its
management.
For and on behalf of the Board
Mumbai Rajesh Patil
Date: June 21, 2013 Chairman and Managing Director
Mar 31, 2012
The Directors have pleasure in presenting 21st Annual Report on the
business and operations of the Company together with the Audited
Accounts for the financial year ended on 31st March, 2012.
The Company is engaged in various segments namely Real Estate
Development, Hospitality and Retail. However, in the financial year
2011-12, there was only one reportable segment namely Real Estate
Development.
Financial Highlights
(Rs.in Lakhs)
Particulars 2011-121 2010-11
Net Sales and Other Income 11,430.29 15,144.51
Less: Expenditure 6,561.24 7,074.79
Less: Financial Charges 620.47 466.27
Less: Depreciation/Amortization 127.37 116.56
Profit Before Tax 4,121.21 7,486.89
Less: Provision for taxation 1,084.39 2,222.29
Profit After Tax 3,036.82 5,264.60
Add: Balance of Profit and Loss
Account brought forward from the
previous 29,804.79 26,349.29
year
Profit available for appropriation 32,841.61 31,613.89
Appropriations:
Transfer to General Reserve 367.72 400.00
Proposed Dividend (includes
tax on dividend) 1,409.08 1,409.08
Balance carried to Balance Sheet 31,064.81 29,804.81
Performance Review
Your Company has always endeavored to enhance lives by creating great
places to live and work. Your Company is one of the leading real estate
developers with over two decades of real estate experience. From last
21 years, it has been engaged in the development of integrated
townships and other large mixed-use and stand-alone developments in the
residential, commercial and retail segments. It has taken lead in
promoting the affordable housing segment of the residential property
market. The business is being carried on by the Company on its own as
well through various joint venture partners.
During the year under review, the total revenue of the Company stood at
Rs 11,430.29 Lakhs as compared to Rs 15,144.51 Lakhs in the previous
year. In the last year's total revenue, there was one off item i.e.
sale of plot of Rs 6,661 Lakhs. The Profit Before Tax for the year ended
31st March, 2012 stood at Rs 4,121.21 Lakhs as compared to Rs 7,486.89
Lakhs in the corresponding period of the previous year. The Profit
After Tax was Rs 3,036.82 Lakhs, compared to Rs 5,264.60 Lakhs during
2010-11.
Dividend
Your Directors have recommended a dividend of Rs 1.60 per equity share
on 75774909 equity shares of Rs 10 each. This dividend is subject to
the approval of the members at the forthcoming 21st Annual General
Meeting to be held on 28thJuly, 2012.
Projects
Glitterati is an ongoing project of the Company which is located at
just 4 kms away from Pune's major IT hub, Hinjewadi InfoTech Park,
offers irresistible super lavish couture homes, flaunting unfathomable
reservoir of luxury, style and beauty having total saleable area of
approx. 455,000 sq. ft. During the year under review, the Company had
received a good response for the project.
Green Olive is a 2 and 3 BHK Luxurious Apartments project which is
located at Hinjewadi, where style and luxury merge beautifully to form
the perfect home for you.
Utsav Raaga thoughtfully designed, competitively priced quality homes
comprising 2 & 3 BHK on Kannur Road near Thanissandra, Bangalore. Raaga
is spread over 4.5 acres and will comprise 12 blocks to be built in two
phases. These 590 homes offer optimal value in terms of location,
convenience, lifestyle and price. The excavation work completed and the
footing work is under progress for phase I.
City Bay is a commercial project of the Company situated at Boat Club
Road, Pune with total saleable area of approximately 95,000 sq. ft. The
Construction of the project has been started. The Company had received
a good response for the project.
Alyssa is a commercial project of the Company located on the plush
Richmond Road at Bangalore with total saleable area of approximately
43,000 sq. ft. The ground and mezzanine floor is being considered as
showroom space and the upper floors for office use. The building will
be ready for fit-outs by June 2012.
Kormangala is a commercial project located on Sarjapura Main Road,
Koramangala III Block, Bangalore. The building consists of double
basement plus ground plus 9 floors and having total saleable area of
approximately 1,98,000 sq. ft. The excavation work completed and the
footing work is under progress.
Joint Venture Projects
Corolla Realty Limited is developing a project namely Umang and IVY
Estate which is located at Wagholi, Pune comprising of mixed
Development of 1 BHK to Independent Villas. It is spread across over
approx. 73 acres of lush green surroundings. The Phase-I is almost sold
out and two phases have been delivered namely Umang-I and Ivy villas
are ready for possession. During the year under review, the Company has
received an encouraging response for Ivy Estate. The Phase-I of Ivy
Estates is almost half completed and the Company is planning to deliver
another 1200 units possession by next year. Your Directors foresee good
response for the next phase of Ivy Estate.
Kolte-Patil I-Ven Townships (Pune) Limited is developing approx. 400
acres township named as "Life Republic" at Jambhe, Near Hinjewadi,
Pune. During the year under review, the phase I (approx. 150 acres) of
the project has been launched consisting 1/2/3 BHK Apartments, Row
Houses, Twin Bungalows. The Phase I of the Project is divided into
various sectors such as Sector R2 consisting Twin Bungalows, Sector R4
consisting 2/3 BHK Apartments, Sector R6 consisting 1 BHK Apartments
and Sector R7 consisting 2/3 BHK Apartments. During the year under
review, the Company has received the overwhelming response for the
project.
Directors
During the year under review, the Board has appointed Mrs. Vandana
Patil and Mrs. Manasa Vishwanath as an additional Director with effect
from 16th January, 2012 and 17th January, 2012 respectively. Both the
Directors hold office upto the date of forthcoming 21stAnnual General
Meeting. The approval of members is sought for their appointment.
Pursuant to Section 256 of the Companies Act, 1956 read with the
Article 167 of Articles of Association of the Company, Mr. Manish Doshi
and Mr. Achyut Watve; Directors, retire by rotation and being eligible,
have offered themselves for re-appointment at the ensuing Annual
General Meeting.
The Profile of Directors seeking appointment and re-appointment, as
required under Clause 49 of the Listing Agreement, has been annexed to
the Notice of the 21st Annual General Meeting.
Subsidiary Companies
The Company has 14 subsidiary Companies as on 31st March 2012 namely,
Regenesis Project Management Company Private Limited, Sylvan Acres
Realty Private Limited, Yashowardhan Promoters and Developers Private
Limited, Tuscan Real Estate Private Limited [Formerly known as I-Ven
Kolte-Patil Projects (Pune) Private Limited], Regenesis Facility
Management Company Private Limited, Oakwoods Hospitality Private
Limited, Olive Realty Private Limited, Lilac Hospitality Private
Limited, Jasmine Hospitality Private Limited, Bellflower Properties
Private Limited, PNP Retail Private Limited, Kolte-Patil Real Estate
Private Limited, Snow flower Properties Private Limited and PNP
Agrotech Private Limited.
Particulars under section 212 of the Companies Act, 1956
As per Section 212 of the Companies Act, 1956, the Company is required
to attach the Directors' Report, Balance Sheet and Profit and Loss
Account of its subsidiaries to its Annual Report. However, Ministry of
Corporate Affairs has vide its General Circular No. 2/2011 dated 8th
February 2011 granted exemption for not attaching Annual Report of
Subsidiary Companies provided that, such Companies publish the Audited
Consolidated Financial Statement in the Annual Report. Your Company has
complied with all the requirements of the circular of Ministry and
accordingly, the Annual Report does not contain the Financial
Statements of the above Subsidiary Companies. The Consolidated
Financial Statements present a full and fair picture of the state of
affairs and the financial condition. The audited annual accounts and
related information of subsidiaries will be made available upon
request. These documents will also be available for inspection during
business hours at our Registered Office in Pune, Maharashtra, India.
The financial details of the Subsidiary Companies, as well as the
extent of holding as required under the aforesaid General Circular, are
provided in Annexure III to the Directors' Report.
A brief summary of the activities carried out by the Subsidiary
Companies are as follows:
Kolte-Patil Real Estate Private Limited is a Joint Venture Company for
the development of project at Kharadi, Pune. During the financial year
under review, the Company has completed its Victorious Kidss Education
School, (IB School) project. The residential and commercial projects of
the Company at Kharadi, Pune have been prelaunch during the year. The
Company has received a very good response for the residential project.
Tuscan Real Estate Private Limited [formerly known as I-Ven Kolte-Patil
Projects (Pune) Private Limited] is a Joint Venture Company which is
developing a residential project- "Tuscan Estate" admeasuring
approximately 12 acres in Kharadi, Pune. The project is located on the
eastern side of the Pune city having many IT companies in vicinity. The
project consists of 3 BHK Luxury Apartments and 4 BHK penthouses. The
total saleable area is approx. 129,400 sq. ft. During the year under
review, the Company had received a good response, especially because of
the quality of the product and location. The project is being promoted
as "Collage Homes" which is collage of many features like location,
internal planning, specifications, elevation, landscaping etc.
Bellflower Properties Private Limited is Joint Venture Company
developing the residential project at NIBM Road, Pune. The Company had
completed its phase I i.e. Margosa Heights. During the year, the
Company had launched the Phase II of the project named as
"Florence" comprising of saleable area approx. 540,000 sq. ft. The
Company had received a good response for the project as it offers
ambience of natural beauty while being closely connected to the
essential necessities of life.
Yashowardhan Promoters and Developers Private Limited is a Wholly Owned
Subsidiary which is developing a residential project at Vishrantwadi,
Pune. The Company had received a good response for the phase II of its
residential project Dew Drops.
PNP Retail Private Limited is a Subsidiary Company. PNP Retails are
neighborhood stores that cater to the daily and weekly top-up shopping
needs of customers regarding fruits and vegetables, food and non-food
fast moving consumer goods, staple and frozen food items, personal and
home care products.
Regenesis Project Management Company Private Limited is a Wholly Owned
Subsidiary which has been set up primarily to provide project
management services.
Sylvan Acres Realty Private Limited is a Joint Venture Company set up
for investment in Township project at Pune.
Lilac Hospitality Private Limited is a Wholly Owned Subsidiary set up
for providing hospitality management services to hotel projects.
Olive Realty Private Limited is Wholly Owned Subsidiary set up, to
carry on the business of real estate development at Phursungi, Pune.
Jasmine Hospitality Private Limited is a Joint Venture Company set up
for developing a hotel at Bengaluru.
Oakwood's Hospitality Private Limited is a Joint Venture Company set up
for developing a residential project at Pune. The Company plans to
launch the residential project during the current financial year
2012-13.
Regenesis Facility Management Company Private Limited is a Wholly Owned
Subsidiary Company set up to provide facility management and property
maintenance services.
Snow flower Properties Private Limited is a Wholly Owned Subsidiary
Company which proposes to invest in land in order to start its new real
estate project.
PNP Agrotech Private Limited is a Wholly Owned Subsidiary Company set
up for developing the hi-tech horticulture project at village
Thavarakari, Taluka Denkanikottai, District Krishnagiri, Tamil Nadu.
Fixed Deposits
Your Company had launched Fixed Deposit Scheme and has been accepting
Fixed Deposits for a period of 1 year, 2 years and 3 years. The Company
has received an overwhelming response from the investors. Shareholders
of the Company, Senior Citizens, Flat Owners of Kolte-Patil group,
Handicapped Persons, Armed Force Personnel and Employees of Kolte-Patil
Group are entitled to receive an additional 0.50% rate of interest on
the deposits invested with the Company. The Management of the Company
is thankful to all the investors for participating in the scheme and
for the faith reposed in the Company.
The fixed Deposits accepted as on 31st March, 2012 stood at Rs 909.22
Lakhs as against Rs 610.10 Lakhs in the previous year. For the year
ended 31st March, 2012, your Company has mobilized deposits aggregating
to Rs 510.85 Lakhs (Previous year Rs 602.10 Lakhs). None of the deposits
which have matured and claimed have remained unpaid.
Investors Relation and Grievances
Investor Relations have been cordial during the year. The Company has a
Shareholders' and Investors' Grievance Committee which addresses the
issues relating to investors. There were no investor grievances pending
as on 31st March, 2012. A confirmation to this effect has been obtained
from the Company's Registrar and Share Transfer Agent. The details
regarding the investor complaints received and resolved during the year
are mentioned in the Report on Corporate Governance annexed to this
report.
Directors' Responsibility Statement
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, your Directors state that:
- In preparation of these accounts, the accounting standards made
applicable by Institute of Chartered Accountants of India have been
followed.
- We selected appropriate accounting policies which have been applied
consistently and have made judgments and estimates that are reasonable
and prudent so as to ensure that the accounts give a true and fair view
of the state of affairs of the Company as at 31st March, 2012 and of
the profit of the Company for the year ended on that date.
- We have taken a proper and sufficient care for maintenance of
appropriate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and defecting frauds and other irregularities.
- The accompanying financial statements of the Company have been
prepared on a going concern basis. Auditors The Auditors of the
Company M/s. SPCM & Associates (Firm Registration No. 112165W),
Chartered Accountants, Pune (Formerly known as Bora Kasat & Co.) retire
at the ensuing Annual General Meeting. They have confirmed their
eligibility and willingness to accept appointment, if re-appointed.
Your Directors recommend their re-appointment.
Human Resources
For Kolte-Patil, the most valued asset is the people working in the
organization who individually and collectively contribute to achieve
the objectives of the Company. One of the most important objectives of
the Kolte-Patil is continuous growth of organization and its people.
For this, we have implemented several initiatives for our employees
which help us to attract and retain the talent in the organization. Few
major activities are:
- Employee engagement includes various activities that are done for
the comfort and improvement of employees. To maintain the same several
initiative are taken for it like celebrating special recognition of
employees, birthdays, arranged New Year Party, get together and Outing
on special occasions etc.
- As HR Functioning is changing with time & with this change Training
& Development activities are now equally important to modify them with
the changing scenario. The Company has undertaken various training
programmes for the development of employees.
- Now a day's face of the Appraisal system in the organization has
also changed and the focus of the organization is turning to
performance management system and specifically to individual
performance. Based on performance the employees are recognized in the
organization.
We at Kolte-Patil are continuously striving for employee satisfaction
for better productivity.
The total employee's strength at group level, as on 31st March, 2012 is
818 as compared to 539 in the previous year.
Conservation of Energy, Technology absorption, Foreign Exchange
Earnings and Outgo
A statement giving information of Conservation of Energy, Technology
absorption, Foreign Exchange Earnings and Outgo as required under
Section 217(1)(e) of the Companies Act, 1956 read with Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is annexed hereto as Annexure I and it forms a part of this
Report.
Particulars of the Employees
A statement required under Section 217(2A) of the Companies Act, 1956
has been furnished herein as Annexure II and forms a part of this
Report.
Report on Corporate Governance
Your Directors adhere to the requirements set out in Clause 49 of the
Listing Agreement with Stock Exchanges. Report on Corporate Governance
as stipulated in the said Clause is annexed and forms a part of this
Report.
Management Discussion and Analysis Report
Management Discussion and Analysis Report as stipulated under Clause 49
of the Listing Agreement is annexed hereto and forms a part of this
Report.
Report on Corporate Social Responsibilities
Report on Corporate Social Responsibilities is annexed hereto and forms
a part of this Report. Acknowledgments
The Board of Directors take this opportunity to thank customers, fixed
deposit holders, vendors, stakeholders, Central and State Governments,
business associates and bankers for their consistent support and
co-operation to the Company. Your Directors take this opportunity to
thank all the employees for rendering high quality service to all the
Company's customers. The employees have worked with the principles of
honesty, integrity, fair play and helped ensure a sustained excellence
in performance of the Company. Finally, the Directors would like to
convey their gratitude to the members and look forward to their
continued support in future.
For and on behalf of the Board
Pune Rajesh Patil
Date: May 29, 2012 Chairman and Managing Director
Mar 31, 2011
In the Companys twentieth year of uncompromised standards of service
and with a motto of "Creation, not Construction" as the foundation of
our every endeavor, we have grown strength by strength in the last two
decades. Your Directors take great pleasure in presenting the Twentieth
Annual Report on the business and operations of the Company, together
with the audited Financial Statements for the financial year ended on
31st March, 2011.
The Company is engaged in various segments namely Real Estate
Development, Hospitality and Retail. However, in the financial year
2010-2011, there was only one reportable segment namely Real Estate
Development.
Financial Highlights
(Rs. in Lakhs)
Particulars 2010-2011 2009-2010
Net Sales and Other Income 15,144.50 9,021.93
Less: Expenditure 7,074.80 4,957.04
Less: Financial Charges 466.27 639.29
Less: Depreciation/Amortization 116.56 112.71
Profit Before Tax 7,486.86 3,312.89
Less: Provision for taxation 2,222.29 547.26
Profit After Tax 5,264.57 2,765.63
Add: Prior Period adjustments - (5.49)
Add: Balance of Profit and Loss Account
brought forward from the previous year 26,349.29 24,654.02
Profit available for appropriation 31,613.87 27,414.16
Appropriations:
Transfer to General Reserve 400.00 180.00
Proposed Dividend (includes tax on dividend) 1,409.08 884.86
Balance carried to Balance Sheet 29,804.79 26,349.29
Performance Review
Your Company has always endeavored to conceptualize projects, keeping
in mind a wide array of customer requirements such as affordable
housing, luxury incarnate, eco-friendly homes, etc.
We believe in the concept of - "A Home for Everyone", from providing
facilities for simple living to providing a bouquet of amenities; we
try to cater the needs of every class/category of buyers.
During the financial year under review, the total sales, other
operating income and other income increased from Rs. 9,021.93 Lakhs to
15,144.50 Lakhs, a net increase of 68%. Similarly, the Profit before
tax showed a phenomenal jump of 126%, rising from Rs. 3,312.89 Lakhs to
Rs. 7,486.86 Lakhs and Profit after tax recorded a significant growth
of 90% to Rs. 5,264.57 Lakhs from Rs. 2,765.63 Lakhs.
During the financial year 2010-2011, the Company amended its Main
Objects Clause and Other Objects Clause of Memorandum of Association so
as to cover the ancillary activities in Real Estate Development
Business. Members of the Company accorded their consent through Postal
Ballot for the said amendment and the resolutions were passed as
Special Resolutions. Registrar of Companies, Pune has issued the
Certificate of Registration of the Special Resolution confirming
alteration of Objects Clause(s) of the Memorandum of Association on 3rd
January,
2011. Also, the members passed an Ordinary Resolution by way of Postal
Ballot authorizing the Board of Directors of the Company to mortgage
and / or charge the properties of the Company to secure borrowings
availed / to be availed not exceeding Rs. 600 Crores.
Dividend
Considering the financial position of the Company, your Directors have
recommended a dividend of Rs.1.60 per equity share on 7,57,74,909
Equity Shares of the Company.
Projects
Green Olive is a 2 and 3 BHK Luxurious Apartments project which is
located at Hinjewadi, where style and luxury merge beautifully to form
the perfect home for you. This project has been launched recently and
has received an overwhelming response.
Glitterati is an ongoing project of the Company which is located just 4
kms away from Punes major IT hub, Hinjewadi Infotech Park, offers
irresistible super lavish couture homes, flaunting unfathomable
reservoir of luxury, style and beauty.
City Bay is a commercial project of the Company situated at Boat Club
Road, Pune with total saleable area of approximately 95,000 sq.ft. Your
Company has received an outstanding response to this new commercial
project.
Alyssa is a commercial project of the Company situated at Richmond
Road, Bengaluru with saleable area of approximately 43,475 sq. ft. Your
Company has received good response for the project.
Koramangala project is a commercial project situated at Koramangala,
Bengaluru with saleable area of approximately 1,98,000 sq. ft.
Joint Venture Projects
Corolla Realty Private Limited
Corolla Realty Private Limited is coming up with a project in Wagholi,
Pune. The project consists of Twin Bungalows, Row Houses, Affordable
Homes, Mid Income Group Housing, Residential cum Commercial Building,
etc. During the year under review, the Company had received a good
response for its affordable housing scheme "Umang Homes". The delivery
of Umang Homes Phase-I is expected by July 2011, will see a boost for
sale of the new phases in future. The Company had launched its new
scheme "IVY Estate" consisting of Villas, Twin Bungalows, Row Houses
and Luxury Apartments for which Company had received good response.
Kolte-Patil I-Ven Townships (Pune) Private Limited
Kolte-Patil I-Ven Townships (Pune) Private Limited is coming up with a
residential project in Jambhe, Pune. During the year under review, the
Company had pre-launched its Township Project Phase-I (approximately
150 acres) consisting Row Houses, Twin Bungalows and 1/2/3 BHK
Apartments. During the pre-launch of the project, the Company had
received a good response for the project.
Directors
During the year under review, there was no change in the composition of
the Board of Directors of the Company.
Pursuant to Section 256 of the Companies Act, 1956 read with the
Article 167 of Articles of Association of the Company, Mr. G. L.
Vishwanath and Mr. Jayant Pendse; Directors, retire by rotation and
being eligible, have offered themselves for re-appointment at the
ensuing Annual General Meeting. The brief profile of the Directors
seeking re-appointment has been annexed to the Notice of the Annual
General Meeting.
Subsidiary Companies
The Company has 13 Subsidiary Companies as on 31st March, 2011 namely,
Regenesis Project Management Company Private Limited, Yashowardhan
Promoters and Developers Private Limited, Sylvan Acres Realty Private
Limited, I-Ven Kolte-Patil Projects (Pune) Private Limited, Lilac
Hospitality Private Limited, Olive Realty Private Limited, Bellflower
Properties Private Limited, Jasmine Hospitality Private Limited,
Oakwoods Hospitality Private Limited, Regenesis Facility Management
Company Private Limited, PNP Retail Private Limited, Kolte-Patil Real
Estate Private Limited and Snowflower Properties Private Limited.
Particulars under Section 212 of the Companies Act, 1956
As per Section 212 of the Companies Act, 1956, the Company is required
to attach the Directors Report, Balance Sheet and Profit and Loss
Account of its subsidiaries to its Annual Report. However, Ministry of
Corporate Affairs has vide its General Circular No. 2/2011 dated 8th
February, 2011 granted exemption for not attaching Annual Report of
Subsidiary Companies provided that, such Companies publish the Audited
Consolidated Financial Statement in the Annual Report. Your Company has
complied with all the requirements of the circular of Ministry and
accordingly, the Annual Report does not contain the Financial
Statements of the above Subsidiary Companies. The Consolidated
Financial Statements present a full and fair picture of the state of
affairs and the financial condition. The audited annual accounts and
related information of subsidiaries will be made available upon
request. These documents will also be available for inspection during
business hours at our Registered Office in Pune, Maharashtra, India.
The financial details of the Subsidiary Companies, as well as the
extent of holdings therein as required under the aforesaid General
Circular, are provided in Annexure III to the Directors Report.
A brief summary of the activities carried out by the Subsidiary
Companies are as follows:
Kolte-Patil Real Estate Private Limited is a Joint Venture Company and
the "School project" i.e Victorious Kidss Educares School, (IB School)
is nearing completion with regard to its construction activities. The
various other residential and commercial projects of the Company at
Kharadi, Pune are ongoing and approvals from various authorities are
expected in due course.
I-Ven Kolte-Patil Projects (Pune) Private Limited is a Joint Venture
Company which is coming up with a residential project- "Tuscan Estate"
admeasuring approximately 12 acres in Kharadi, Pune. The project is
located on the eastern side of the Pune city, having many IT companies
in vicinity. The proposed project consists of 3 BHK Luxury Apartments
and 4 BHK Penthouses. During the year under review, the Company had
launched the project and had received a good response, especially
because of the cost being between Rs. 70 to 85 Lakhs bracket for a
quality product and at a central location. As it is just not an
apartment but a blend of various other factors; the project is being
promoted as "Collage Homes" which is collage of many features like
location, internal planning, specifications, elevation, landscaping,
etc.
Bellflower Properties Private Limited is a Joint Venture Company and
has started Phase ÃII of its residential project namely "Margosa
Heights", at Mohammadwadi, NIBM annex Pune. This project offers
ambience of natural beauty while being closely connected to the
essential necessities of life.
Yashowardhan Promoters and Developers Private Limited was a Joint
Venture Company. However, during the year under review, your Company
acquired further 40% stake in this Subsidiary Company and consequently,
this Company became the Wholly Owned Subsidiary of your Company. This
Company has successfully completed its commercial project namely
"Shoppers Orbit" at Vishrantwadi, Pune and has successfully launched
Phase - II i.e. Row Houses for the residential project "Dew Drops".
PNP Retail Private Limited is a Subsidiary Company. PNP Retails are
neighborhood stores that cater to the daily and weekly top-up shopping
needs of customers regarding fruits and vegetables, food and non-food
fast moving consumer goods, staple and frozen food items, personal and
home care products. The Company proposes to expand its operations
through chain of retail stores.
Regenesis Project Management Company Private Limited is a Wholly Owned
Subsidiary which has been set up primarily to provide project
management services.
Sylvan Acres Realty Private Limited is a Joint Venture Company set up
for investment in Township project at Pune.
Lilac Hospitality Private Limited is a Wholly Owned Subsidiary set up
for providing hospitality management services to hotel projects.
Olive Realty Private Limited is a Wholly Owned Subsidiary set up, to
carry on the business of real estate development at Phursungi, Pune.
Jasmine Hospitality Private Limited is a Joint Venture Company set up
for developing a hotel at Bengaluru.
Oakwoods Hospitality Private Limited is a Joint Venture Company set up
for developing a hotel at Pune.
Regenesis Facility Management Company Private Limited is a Wholly Owned
Subsidiary Company set up to provide facility management and property
maintenance services.
Snowflower Properties Private Limited is a Wholly Owned Subsidiary
Company which proposes to invest in land in order to start its new real
estate project.
Fixed Deposits
Your Company had launched Fixed Deposit Scheme and has been accepting
Fixed Deposits for a period of 1 year, 2 years and 3 years. The Company
has received an overwhelming response from the investors since
Shareholders of the Company, Senior Citizens, Flat Owners of
Kolte-Patil Group, Handicapped Persons, Armed Force Personnel and
Employees of Kolte-Patil Group are entitled to receive additional 0.50%
rate of interest on the deposits invested with the Company. The
Management of the Company is thankful to all the investors for
participating in the scheme and for the faith reposed in the Company.
Fixed Deposits accepted as on 31st March, 2011 stood at Rs. 610.10
Lakhs as against Rs. 158.00 Lakhs in the previous year. For the year
ended 31st March, 2011, your Company has mobilized deposits aggregating
to Rs. 602.10 Lakhs (Previous year Rs. 158.00 Lakhs). None of the
deposits which have matured, have remained unpaid.
Employees Stock Option Scheme 2006 (ESOS)
During the year, Kolte-Patil ESOS, 2006 was concluded. The Company is
in the process of introducing the new Employees Stock Option Scheme for
the permanent employees of the Company and its Subsidiary Companies
pursuant to the Special Resolution passed by the members of the Company
in the Nineteenth Annual General Meeting.
Disclosures in respect of Kolte-Patil ESOS, 2006 in compliance with
Clause 12 of the Securities and Exchange Board of India (Employee Stock
Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, as
amended, are set out in Annexure IV to this Report.
Investors Relations and Grievances
Investor Relations have been cordial during the year. The Company has a
Shareholders and Investors Grievance Committee which addresses the
issues relating to investors. There were no investor grievances pending
as on 31st March, 2011. A confirmation to this effect has been obtained
from the Companys Registrar and Share Transfer Agent. The details
regarding the investor complaints received and resolved during the
year, are mentioned in the Report on Corporate Governance annexed to
this report.
Directors Responsibility Statement
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, your Directors state that:
i) in the preparation of accounts, the applicable accounting standards
have been followed and no significant departures have been made from
the same.
ii) accounting policies selected were applied consistently. Reasonable,
prudent judgments and estimates were made so as to give a true and fair
view of the state of affairs of the Company at the end of 31st March,
2011 and of the Profit of the Company for the year ended on that date.
iii) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding of assets of the Company and for
preventing and detecting frauds and other irregularities.
iv) the annual accounts of the Company have been prepared on a going
concern basis.
Auditors
The Auditors of the Company M/s. S P C M & Associates (Firm
Registration No. 112165W), Chartered Accountants, Pune (Formerly known
as Bora Kasat & Co.) retire at the ensuing Annual General Meeting. They
have confirmed their eligibility and willingness to accept appointment,
if re-appointed. Your Directors recommend their re- appointment.
Human Resources
Your Company has always considered employees as assets for the
organization. The Company endeavors to encourage innovation and
meritocracy and hence, (HR) policies and practices are constantly
reviewed to keep abreast with the market changes and your Company has
also embarked upon several initiatives to focus on creating a positive
work environment that provides employees with ample growth and
development opportunities as well as ensuring high levels of motivation
and commitment.
The Top Management with their clear vision, has set down strategic
business goals for the entire organization. Thus, to achieve this we
have restructured the organization, i.e. we have introduced SBU
(Strategic Business Unit) Structure to carry out the operations
geographically, wherein each SBU has its own business goals and clear
set of roles and responsibilities.
We have also set up scalable recruitment, performance appraisal system,
training and development for organization development and we also offer
them stock options which enable us to attract and retain high caliber
employees. One of the most important objective of the organization is;
growth of its employees.
To bring in new talent in our organization we have also started
recruiting management trainees from renowned management institutes.
This new talent brings in new ideas and out of the box thinking and
helps us rise above the traditional mindset.
We at Kolte-Patil are continuously striving for employee satisfaction
for better productivity.
The total employees strength at group level, as on 31st March, 2011
was 539 as compared to 360 in the previous year.
Conservation of Energy, Technology absorption, Foreign Exchange
Earnings and Outgo
A statement giving information of Conservation of Energy, Technology
absorption, Foreign Exchange Earnings and Outgo as required under
Section 217 (1) (e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is annexed hereto as Annexure I and it forms a part of this
Report.
Particulars of the Employees
A statement required under Section 217 (2A) of the Companies Act, 1956
has been furnished herein as Annexure II and forms a part of this
Report.
Management Discussion and Analysis Report
Management Discussion and Analysis Report as stipulated under Clause 49
of the Listing Agreement is annexed hereto and forms a part of this
Report.
Report on Corporate Governance
Your Directors adhere to the requirements set out in Clause 49 of the
Listing Agreements with the Stock Exchanges. Report on Corporate
Governance as stipulated in the said Clause is annexed and forms a part
of this Report.
Acknowledgments
The Directors would like to express their appreciation for the
assistance and co-operation received from Customers, Fixed Deposit
Holders, Vendors, Stakeholders, Central and State Government
Authorities, Business Associates, and Bankers of the Company. Your
Directors take this opportunity to thank all the employees for
rendering high quality service to all the Companys Customers. The
employees have worked with the principles of honesty, integrity, fair
play and helped ensure a sustained excellence in performance of the
Company. Finally, the Directors would like to convey their gratitude to
the members and look forward to their continued support in future.
For and on Behalf of the Board
Rajesh Patil
Chairman and Managing Director
Place: Pune
Date: May 30, 2011
Mar 31, 2010
The Directors take pleasure in presenting the Nineteenth Annual Report
on the business and operations of the Company, together with the
audited results for the financial year ended on 31st March, 2010.
The Company is engaged in various segments namely Real Estate
Development, Hospitality and Retail. However, in the financial year
2009-10, there was only one reportable segment namely Real Estate
Development.
Financial Highlights
(Rs. In Ã000)
Particulars 2009-10 2008-09
Net Sales and Other Income 902,195 19,96,414
Less : Expenditure 495,705 870,209
Less : Financial Charges 63,929 70,948
Less : Depreciation/Amortization 11,271 10,401
Profit Before Tax 331,290 10,44,856
Less : Provision for taxation 53,961 338,055
Profit After Tax 277,329 706,801
Add : Prior Period adjustments (549) 152,456
Less : Taxation in Firm (765) (12,893)
Add : Balance of Profit and Loss
Account brought forward
from the previous year 24,65,402 17,24,887
Profit available for appropriation 27,41,417 25,71,252
Appropriations:
Transfer to General Reserve 18,000 17,670
Proposed Dividend (includes
tax on dividend) 88,486 88,180
Balance carried to Balance Sheet 26,34,930 24,65,402
Performance Review
As the real estate sector is striving to come out of the recession
scenario, many Realty Companies are coming up with fascinating projects
and plans catering to almost every category/class.
We have seen a slow but steady recovery in the real estate sector in
India post recession. The demand has hiked for the affordable pocket
between Rs.25-30 Lakhs, for residential apartments in Pune City.
Considering the demand in residential and luxury apartments, the new
projects have been redesigned and are being launched in year 2009-10
which will generate substantial revenues in the next 2-3 years.
During the financial year under review, the total sales and other
income decreased from Rs. 19,96,414 thousands to 902,195 thousands; a
decrease of 54.81% from the previous year. Profit after Tax (PAT)
declined from Rs. 706,801 thousands to Rs. 277,329 thousands; a
decrease of 60.76% from the previous year.
Dividend
Your Directors are pleased to recommend a final dividend of Re.1 per
equity share, on 7,56,32,537 equity shares of the Company.
New Initiative
To achieve the objectives set by the Company, the Management has taken
initiatives to accelerate the project execution; by way of
restructuring organization skills e.g. Creating Strategic Business
Units (SBU), with a well defined authority and responsibility.
To establish and maintain a long term relationship with vendors, for
better price and quality, your Company has taken initiatives by way of
corporate tie-ups and direct interaction with manufacturers of steel,
cement etc.
To respond to the market demand, the Management has realigned and
re-priced its product mix, to offer better quality homes at right
price.
Joint Venture Projects
Corolla Realty Private Limited
A Joint Venture project between your Company; India Advantage Fund of
ICICI Venture Funds Management Company Limited; and Mr. Ishwarchand
Goyal has been initiated, in addition to its affordable housing project
namely ÃUmang HomesÃ; the Company is planning to launch Bungalow Plots,
Twin Bungalows, and Row Houses in an 80 acre township project at
Wagholi, Pune.
Kolte-Patil I-Ven Townships (Pune) Private Limited
The township project at Jambhe, Hinjewadi, Pune has taken off
successfully with land acquisitions underway and now the Company is in
the process of approaching various Government authorities for obtaining
approvals in relation to the project. After all the approvals are in
place, the Company proposes to launch the project on a large scale.
Re-appointment of Whole-Time Directors of the Company
Your Board of Directors at their meeting held on January 29, 2010
subject to the approval of members, approved the terms of
re-appointment and payment of remuneration thereof, to Mr. Rajesh
Patil, Chairman and Managing Director, Mr. Naresh Patil, Joint Managing
Director, Mr. Milind Kolte, Executive Director and Mrs. Sunita Kolte,
Executive Director with effect from April 15, 2010. The payment of
remuneration including Commission to the Whole-Time Directors - Mr.
Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte
has also been approved by the Remuneration and Compensation Committee
of the Company in their meeting held on January 29, 2010.
Directors
During the year under review, there was a change in the composition of
the Board of Directors of the Company due to the sad and unexpected
demise of Mr. Satish Tandon, Independent Director. The Board of
Directors wish to express their heartfelt sincere appreciation for Mr.
Satish TandonÃs valuable contribution in the growth and development of
the Company.
Mr. Jayant Pendse was appointed as Director under Section 262 of the
Companies Act, 1956 to fill the casual vacancy w.e.f October 29, 2009.
Pursuant to Section 256 of the Companies Act, 1956 read with the
Article 167 of Articles of Association of the Company, Mrs. Sunita
Kolte and Mr. Milind Kolte; Directors retiring by rotation and being
eligible, have offered themselves for re-appointment at the ensuing
Annual General Meeting. The brief profile of the Directors seeking
re-appointment has been mentioned in the explanatory statement to the
Notice of the Annual General Meeting.
Subsidiary Companies
The Company has 12 subsidiaries as on 31st March, 2010 namely,
Regenesis Project Management Company Private Limited, Yashowardhan
Promoters and Developers Private Limited, Sylvan Acres Realty Private
Limited, I-Ven Kolte-Patil Projects (Pune) Private Limited, Lilac
Hospitality Private Limited, Olive Realty Private Limited, Bellflower
Properties Private Limited, Jasmine Hospitality Private Limited,
Oakwoods Hospitality Private Limited, Regenesis Facility Management
Company Private Limited, PNP Retail Private Limited and Kolte-Patil
Real Estate Private Limited.
Particulars under Section 212 of the Companies Act, 1956
As per Section 212 of the Companies Act, 1956, the Company is required
to attach the Directorsà Report, Balance Sheet and Profit and Loss
Account of its subsidiaries. However, the Company has received approval
from Ministry of Corporate Affairs, Delhi, via letter No.
47/293/2010-CL-III dated 9th April 2010 and dated 13th May 2010,
exempting the Company from attaching the Directorsà Report, Balance
Sheet and Profit and Loss Account of its subsidiaries. Therefore, the
Annual Report does not contain the Financial Statements of the above
subsidiaries. The consolidated accounts present a full and fair
picture of the state of affairs and the financial condition. This
practice is globally accepted. The audited annual accounts and related
information of subsidiaries will be made available upon request. These
documents will also be available for inspection during business hours
at our Registered Office in Pune, Maharashtra, India.
The financial details of the Subsidiary Companies as well as the extent
of holdings therein are provided in Annexure III to the DirectorsÃ
Report.
A brief summary of the activities carried out by the Subsidiary
Companies are as follows:
Kolte-Patil Real Estate Private Limited is a Joint Venture Company and
in the third quarter of 2009-10 has launched a residential project
namely ÃBerylÃ. Moreover, it also plans to develop premium and Ultra
Luxurious apartments, commercial buildings, shopping arcade, and
entertainment complex and also tie-up with Victorious Kidss Educares
School, (IB School).
Bellflower Properties Private Limited is a Joint Venture Company and
has launched a residential project namely ÃMargosa HeightsÃ, phase ÃI,
at Mohammadwadi, NIBM annex Pune.
Yashowardhan Promoters and Developers Private Limited is a Joint
Venture Company and has successfully completed residential project
namely ÃDew Dropsà and commercial a project namely ÃShoppers Orbità at
Vishranthwadi, Pune and in same premises, plans to launch a Row House
Scheme.
PNP Retail Private Limited is a Subsidiary Company that has been set up
primarily to carry on business through retail formats like hyper
markets, super markets, cash & carry, departmental stores, direct to
home etc. The Company has started its first store on April 24, 2010 in
HRBR Layout in Bangalore. The Company offers customers retail store
format - Convenience store called PNP Retail. PNP Retails are
neighbourhood stores that cater to the daily and weekly top-up shopping
needs of customers. The stores stock an assortment of fruits and
vegetables, food and non-food fast moving consumer goods, staple and
frozen food items, personal and home care products. The Company plans
to start a chain of retail stores.
Regenesis Project Management Company Private Limited is a Wholly Owned
Subsidiary which has been set up primarily to provide project
management services.
Sylvan Acres Realty Private Limited is a Joint Venture Company set up
for investment in Township project at Pune.
I-Ven Kolte-Patil Projects (Pune) Private Limited is a Joint Venture
Company set up for developing Residential and Commercial projects at
Kharadi, Pune.
Lilac Hospitality Private Limited is a Wholly Owned Subsidiary set up
for providing hospitality management services to hotel projects.
Olive Realty Private Limited is a Wholly Owned Subsidiary set up, to
carry on the business of real estate development at Phursungi, Pune.
Jasmine Hospitality Private Limited is a Joint Venture Company set up
for developing a hotel at Bangalore.
Oakwoods Hospitality Private Limited is a Joint Venture Company set up
for developing a hotel at Pune.
Regenesis Facility Management Company Private Limited is a Wholly Owned
Subsidiary Company set up to provide facility management and property
maintenance services.
Fixed Deposits
Your Directors had approved and introduced a Fixed Deposit Scheme
2009-10 in their meeting held on January 29, 2010, which has received a
good response, since Shareholders of the Company, Senior Citizens,
Handicapped
Persons, Armed Force Personnel and Employees of the Kolte-Patil Group
are entitled to receive an additional 0.50% rate of interest on the
deposit invested with the Company.
During the period under review, your Company has collected Rs. 15,800
thousands as on 31st March, 2010.
Employees Stock Option Scheme 2006 (ESOS)
During the year under review, your Company has implemented the
Kolte-Patil Employee Stock Option Scheme, 2006.
Disclosures in respect of the Kolte-Patil Employee Stock Option Scheme,
2006 in compliance with Clause 12 of the Securities and Exchange Board
of India (Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999, as amended, are set out in Annexure IV to
this Report.
Investorsà Relations and Grievances
Investor Relations have been cordial during the year. The Company has
formed Investorsà Grievance Committee to address the issues relating to
investors. There were no investor grievances pending as on 31st March,
2010. A confirmation to this effect has been obtained from the
CompanyÃs Registrar & Share Transfer Agent. A detailed report on the
above appears in Corporate Governance Report annexed to this Report.
Directorsà Responsibility Statement
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, your Directors state that:
i) In the preparation of accounts, the applicable accounting standards
have been followed and no significant departures have been made from
the same.
ii) Accounting policies selected were applied consistently. Reasonable,
prudent judgments and estimates were made so as to give a true and fair
view of the state of affairs of the Company at the end of 31st March,
2010 and of the profit of the Company for the year ended on that date.
iii) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding of assets of the Company and for
preventing and detecting frauds and other irregularities.
iv) The annual accounts of the Company have been prepared on a going
concern basis.
Auditors
The Auditors of the Company M/S. S P C M & Associates, Chartered
Accountants, Pune (formerly known as Bora Kasat & Co.) retire at the
ensuing Annual General Meeting. They have confirmed their eligibility
and willingness to accept appointment, if re-appointed. Your Directors
recommend their appointment.
Human Resources
Employees are the most important assets of the Company. The Company
endeavors in encouraging innovation and meritocracy. We have also set
up scalable recruitment, performance appraisal system, to retain key
employees and to offer them stock options, and Human Resource
Management Processes, which enables us to attract and retain the high
caliber employees. The total employees strength as on 31st March, 2010
was 358 as compared to 326 in the previous year.
Conservation of Energy, Technology absorption, Foreign Exchange
Earnings & Outgo
A statement giving information of Conservation of Energy, Technology
absorption, Foreign Exchange Earnings & Outgo as required under Section
217 (1) (e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is annexed hereto à Annexure I and it forms part of this Report.
Particulars of the Employees
A statement required under Section 217 (2A) of the Companies Act, 195
has been furnished herein Annexure II and forms part of this Report.
Management Discussion and Analysis Statement
Management Discussion and Analysis Report as stipulated under Clause 49
of the Listing Agreement is annexed hereto and forms part of this
Report.
Corporate Governance Report
Your Directors adhere to the requirements set out in Clause 49 of the
Listing Agreements with the Stock Exchanges. Report on Corporate
Governance as stipulated in the said Clause is annexed and forms part
of this Report.
Acknowledgments
The Directors would like to express their appreciation for the
assistance and co-operation received from customers, vendors,
stakeholders, Central and State Government Authorities, business
associates, and bankers of the Company. Your Directors take this
opportunity to thank all the employees for rendering high quality
service to all the CompanyÃs customers. The employees have worked with
the principles of honesty, integrity, fair play and helped ensure a
sustained excellence in performance of the Company. Finally, the
Directors would like to convey their gratitude to the members and look
forward to their continued support in future.
For and on Behalf of the Board of Directors
Place: Bangalore Rajesh Patil
Date: May 28, 2010 Chairman and Managing Director