The Directors have pleasure in presenting the Seventeenth Annual
Report on business and operations of the Company together with the
Audited Statement of Accounts for the financial year ended 31st March,
(Rupees in Lakhs)
Particulars 2011-12 2010-11
Net Sales and other income 60,931.70 46,937.37
Interest & other Finance charges 6,039.28 1,678.69
Deprecation & 4,001.39 1,726.58
Profit before tax 6,814.95 16,145.85
Provision for taxation: Current 1,362.51 2684.85
Deferred (299.94) 2446.87
Wealth Tax 2.44 1.20
MAT entitlement (59.42) (914.65)
Net Profit after Tax 5,809.35 11,927.58
Earnings Per Share 5.18 10.63
The Board of Directors of the Company have recommended a dividend of Rs
1.50 (Rupees one and paise fifty only) (15%) per equity Share which is
subject to the approval of the shareholders in the ensuing Annual
General Meeting of the Company. The total payment on account of
Dividend (including Dividend Tax) shall be Rs 1956.93 lakhs. A sum of
Rs 440 lakhs has been transferred to the General Reserve.
There has been no changes in the share capital of the Company during
Operational Review & Future:
The financial year 2011-12 has been a year of high volatility. The GDP
of the Indian economy grew at 6.5%, a significant slowdown in
comparison to the preceding two financial years. The main factors
attributable to the slowdown is due to weakening industrial growth,
persistent inflationary pressures, rising interest costs, weak domestic
sentiment and deterioration in global economic situation. Real Estate
is one of the major components of the GDP of our economy. The
slackness in the growth of the real estate sector had an impact on the
GDP. The silver lining to it was that the Bangalore real estate market
showed a better than average performance compared to the other cities,
as the real estate players in Bangalore were more organised and
transparent in their functioning.
This year was a very eventful year for your Company as it completed 25
years of its existence on 10th October, 2011, in what was originally
started as a single project in a partnership firm. It grew from
strength to strength and today we have completed more than 100
buildings and success- fully delivered more than 20 million square feet
of development in residential, commercial and hospitality projects.
A total of around 30 million square feet would be developed in phases
over the next five year period of which 9 million square feet is
presently being developed.
The snapshot of the performance during the year is as follows:
Integrated Enclaves Brigade Gateway:
Brigade Gateway is an iconic project and way ahead of its time. It is
the most integrated city centric enclave anywhere in the country. The
total integration of the residential apartments with offices, retail,
hotel, hospital, educational and recreational facilities within the
project, is unprecedented. The residential blocks comprising of over
1250 apartments have been nearly sold.
World Trade Center, the office tower at Brigade Gateway, comprising 32
levels with a height of 128 meters is the tallest building in Bangalore
as on date. Around 40% out of the total of 1.1 million square feet in
this building has been leased and 30% has been sold. Company will hold
a major stake in the space since the World Trade Center brand for the
city of Bangalore is held by the Company through its subsidiary WTC
Trades & Projects Private Limited.
We are also happy to inform that the registered office and corporate
office of the Company has been shifted to the 29th & 30th floors of
this prestigious building w.e.f. 8th February, 2012.
In the first year of operations, the Sheraton Bangalore Hotel at
Brigade Gateway has drawn a good response from the market for both
rooms and F&B and has witnessed robust business. It comprises of 230
room keys and the occupancy level in the property is quite encouraging.
The flagship retail venture of the Company-ORION Mall at Brigade
Gateway, aggregating to over 8,00,000 sft has been completed and
operations have commenced in the month of March, 2012. About 85% of the
space has been leased out and 60% of the Mall is fully operational as
on date. The completion of the mall makes all components of the enclave
The many accolades received by the various components of the enclave
is a true reflection of this world class project.
The construction of the residential blocks, aggregating to about 2.52
million sft, have been completed during the year. The sale of the
apartments were completed during the year. Summit, the office space at
Metropolis aggregating to 8,28,000 sft was completed during the year.
During the year the Company monetised the following commercial assets:
- A total of around 0.39 million sft of office space at World Trade
Center at Brigade Gateway has been sold.
- Company has monetised to the extent of 0.05 million sft of Summit
@Brigade Metropolis located on White- field Road.
- We have Monetised to the extent of 0.07 million sft in Brigade Rubix,
- Sheraton Bangalore Hotel: The Sheraton Bangalore Hotel at Brigade
Gateway has done good business in the first year of its operations and
the occupancy levels have consistently exceeded expectations. Sheraton
Bangalore has been voted the ''Best New Hotel of the year 2012'' in the
''Upscale segment- Business'' by HVS South Asia at HISCA 2012.
- Grand Mercure: The 5-Star Grand Mercure, apartment hotel in
Koramangala, Bangalore is owned by the Company and managed by the
French group, Accor. The occupancy levels has consistently averaged
over 80% during the year and is one of the best performing apartment
hotel in South India.
Special Economic Zones''The construction work at the Special Economic
Zone at Kochi would commence shortly. The infrastructure works is being
undertaken by the concerned statutory authorities in the Special
Economic Zone at Mangalore. We will commence construction on completion
of the infrastructure works by the authorities.
Brigade Value Homes
Brigade Meadows—Brigade Meadows located on Kanakapura Road is a 65
acres mixed use development of which Brigade Value Homes is an integral
part. The first phase of development is on 31 acres in which 1850 units
are launched. Construction is progressing well in the project.
The other ongoing Residential Projects are as follows:
- Brigade Sonata, Palace Road, Bangalore aggregating to 0.04 million
- Brigade Rhapsody, Palace Cross Road, Bangalore a premium residential
project aggregating to 0.03 million sft.
- Brigade Horizon at Mysore aggregating to 0.17 million sft.
- Brigade Sparkle at Mysore aggregating to 0.24 million sft.
The following projects have been launched by the Company in 2011-12:
- Brigade Exotica on Old Madras Road, our Premium Luxury Residential
Apartment Project aggregating to 1.50 million sft. This project has
received 5-star Rating from CRISIL Real Estate Rating. It has also
received pre-certified Gold rating by IGBC Green Homes. The
construction of the first tower is in progress.
- Brigade IRV Centre in Nallurahalli, Whitefield, is our proposed
Commercial Office building Project aggregating to 0.26 million sft.
It has received the LEED ICS Pre Certified Gold rating by IGBC Green
The following projects are in the pre-launch stage.
- ''Brigade Omega'', our Luxury Residential Project in Thurahalli
Village, Uttarahalli, Bangalore South aggregating to 0.82 million sft.
- Brigade Pinnacle, residential project in Mangalore aggregating to
0.51 million sft.
- Brigade Palmgrove, our Premium Villa & Town House Project on Bogadhi
Main Road, Mysore aggre- gating to 0.27 million sft.
The ground breaking ceremony for the following projects in Bangalore
were conducted during the year.
- Commercial Office building Project''Brigade IRV Centre in Nallurahalli
- Premium Residential Apartment Project''Brigade Caladium, Hebbal
- Commercial Office Building''Brigade Magnum, Hebbal.
Shifting of Registered Office:
During the year under review, the registered office of the Company was
shifted to the 29th & 30th Floors, World Trade Center, Brigade Gateway
Campus, 26/1, Dr. Rajkumar Road, Rajajinagar-Malleswaram, Bangalore 560
055 w.e.f. 8th February, 2012.
Brigade Hospitality Services Limited (BHSL) is a wholly owned
subsidiary of the Company that runs and manages clubs, serviced
residences and convention centres. During the financial year 2011-12
BHSL has registered income from operations amounting to Rs 5210.72
lakhs and incurred a loss of 41.41 Lakhs.
Orion Mall Management Company Limited (OMMC) is a newly incorporated
wholly owned subsidiary of the Company, incorporated during the year.
The main object of the company is to carry on the business of mall
management. This Company would manage all malls developed by the
Company. OMMC had a turnover of Rs 16.81 lakhs and a loss of Rs 58. 13
WTC Trades & Projects Private Limited(WTC) a wholly owned subsidiary of
the Company which has obtained the licence from World Trade Center
Association, USA is entitled to use WTC logo in the city of Bangalore.
WTC had a turnover of Rs 84.11 lakhs and a net profit of Rs 0.12 lakhs
Brigade Estates and Projects Private Limited & Brigade Properties
Private Limited are wholly owned Subsidiaries of the Company with main
business in the field of real estate development. Brigade
Infrastructure & Power Private Limited is a wholly owned subsidiary
with its main objects in the field of Infrastructure and power. These
Companies are in the process of being fully operational.
Brigade Tetrarch Private Limited (BTPL) is also a wholly owned
subsidiary of the Company with its main business in the field of sports
related activities. BTPL has registered income from operations
amounting to Rs 0.29 lakhs and incurred a loss of Rs 0.12lakhs.
BCV Developers Private Limited is a 50:50 joint venture between the
Company and Classic Valmark Private Limited for development of land of
120 acres in Devanahalli, Bangalore. Your Company has 50%
representation of the Board of this Company. The project known as
''Brigade Orchards'' is a 120 acre, one-of-its kind, completely
integrated and inclusive enclave located near the Bangalore
International Airport. This will be an eco-friendly, model township,
incorporating globally followed best practices in town planning and
urban infrastructure. A total of around 7 million square feet of
development is proposed over a period of 5 years. The project would
comprise of villas, value homes, apartments, commercial complex,
retail, sports arena, clubs. Provisions are made for Arts village,
Healthcare, school and civic amenities. The model villas are ready and
presently the infrastructure work is progressing in the project.
Consolidated Financial Statements:
The Consolidated Financial statements have been prepared by the Company
pursuant to Clause 32 of the Listing Agreement entered with the Stock
Exchanges. The Consolidated Financial Statement and Auditors'' Report
thereon forms part of the Annual Report.
The Company has not accepted any fixed deposits during the year. There
are no deposits repaid during the year or any unclaimed deposits with
Management Discussion & Analysis Report:
The Management Discussion and Analysis is annexed to this report.
Dr Anumolu Ramakrishna and Mr M. R. Gurumurthy retire by rotation and
being eligible, offer themselves for re-appointment.
The present tenure of Mr M. R. Jaishankar as Chairman & Managing
Director and Ms. Githa Shankar as Wholetime Director was upto 31st
March, 2012. The Board of Directors have approved their re-appointment
for a further period of five years with effect from 1st April, 2012
subject to the approval of members in the 17th Annual General Meeting.
None of the Directors of the Company are disqualified under Section
274(1)(g) of the Companies Act, 1956.
M/s. Narayanan, Patil & Ramesh, Chartered Accountants, the Statutory
Auditors of the Company retire at the ensuing Annual General Meeting of
the Company and being eligible for re-appointment have offered
themselves for re-appointment.
M/s. Narayanan, Patil & Ramesh, Chartered Accountants have confirmed
that the appointment, if made, will be in accordance with the limits
prescribed under Section 224(1B) of the Companies Act, 1956.
Directors'' Responsibility Statement:
As per the provisions of Section 217(2AA) of the Companies Act, 1956,
with respect to the Directors Responsibility Statement, it is hereby
i. In the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to material departures.
ii. The Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the Financial Year and of the profit and
loss of the Company for that period.
iii. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
iv. The Directors have prepared the accounts on a going concern basis.
Report on Corporate Governance:
A detailed report on Corporate Governance has been included as an
attachment to this Report.
Particulars of Employees:
In terms of the provisions of Section 217(2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 as
amended, the names and other particulars of employees are set out in
the annexure to the Directors'' Report. However, having regard to the
provisions of Section 219(1)(b)(iv) of the Companies Act, 1956,the
Annual Report excluding the aforesaid information is being sent to all
members of the Company and others entitled thereto. Any person
interested in obtaining such particulars may write to the Company
Secretary at the Registered Office of the Company.
Conservation of energy, technology absorption, Foreign Exchange
earnings and outgo:
The particulars relating to conservation of energy, technology
absorption and foreign exchange earnings & outgo pursuant to the
provisions of 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 contained in Annexure I.
Awards and Recognitions:
World Trade Center, at Brigade Gateway has won the award for
Outstanding Concrete Structure of Karnataka-2010 from the Indian
Sheraton Bangalore Hotel at Brigade Gateway has been voted the Best
New Hotel of the Year 2012 in the Upscale Segment-Business by HVS
South Asia'' at HICSA 2012.
The Group has been awarded a commendation certificate by Indian
Merchants Chambers Ramakrishna Bajaj National Quality Award Trust for
business excellence, 2011 under the Service category.
Brigade Group was honoured with the Oustanding contribution in Real
Estate (Hospitality Sector) at the EPC World Awards 2011. The award
was conferred to the Company for the products and services provided by
the Organisation for the development of the Indian Infrastructure and
World Trade Center was conferred the ACCE- BILLIMORIA award 2011 for
Best construction in High Rise Buildings by the Association of
Consulting Civil Engineers India, Governing Council.
The Group was awarded a certificate for its Strong Commitment to
Excel by the CII-EXIM Award for Business Excellence 2011 at the
National Quality Summit.
Mr M. R. Jaishankar was honoured as an ''EMINENT DEVELOPER'' by Civil-Aid
Technoclinic Private Limited, a Bureau Veritas Group Company.
The Group has won two awards, ''Developer of the Year''Commercial'' &
''Integrated Township of the Year (Brigade Gateway) Awards at the
Realty Plus Excellence Awards 2012 for South India , instituted by
The Group was presented the '' India''s Top 10 Builders'' award at the CW
Architect and Builder Awards 2011. This is the fifth year in a row that
your Company has received this honour.
Economic Times, in association withGreat places to Work
Institute''''rated the Company as the 2nd best Company in the Real Estate
Sector and also at number 88 among all Companies in the Country in 2011
to work at.
We would like to record our sincere thanks to team Brigade,
shareholders, to our family of associates (architects, consul- tants,
contractors, bankers, suppliers, officials in the civic authorities and
government), friends, well wishers and, of course, all our customers,
who have shown their confidence and support to the Company during the
last 25 years and helped in shaping Brigade Group.
By Order of the Board
for Brigade Enterprises Limited
Place: Bangalore M. R. Jaishankar
Date: May 07, 2012 Chairman and Managing Director