Brigade Enterprises

1.1 Share Capital:
 
 Issued, Subscribed, and Paid-up Capital of 11,22,51,940 (Previous Year
 11,22,51,940) Equity Shares includes:
 
 - 5,00,000 (Previous Year 5,00,000) Equity Shares of Rs 10/- each fully
 paid-up, issued as Bonus Shares in 1996; 71,77,656 (Previous Year
 71,77,656) Equity Shares of Rs. 10/- each fully paid-up, issued as
 Bonus Shares during 2004-05; 1,61,49,726 (Previous Year 1,61,49,726)
 Equity Shares of Rs. 10/- each fully paid-up, issued as Bonus shares
 during 2005-06 and 6,72,90,525 Equity Shares of Rs. 10/- each Fully
 Paid-up issued as Bonus Shares during the year 2007-2008.
 
 - 16,22,628 (Previous Year 16,22,628) Equity Shares allotted as fully
 paid-up on amalgamation of the erstwhile Brigade Developers Private
 Limited with the Company in the year 2001-02. This includes 9,000
 Equity Shares allotted in lieu of Bonus Shares issued to the
 shareholders of the erstwhile Brigade Developers Private Limited.
 
 - 68,400 (Previous Year 68,400) Equity Shares allotted as fully paid-up
 on amalgamation of the erstwhile Brigade Investments Private Limited
 with the Company in the year 2001-02.
 
 - During the year 2007-08, Company has raised money through an Initial
 Public Offer by issuing 1,80,45,205 Shares as fully paid-up shares of
 Rs. 10/- each at a Premium of Rs. 380/- per Share.
 
 1.2 Initial Public Offer Proceeds and its Utilisation:
 
 The above includes the applicable service tax on the fees.  2.5 Secured
 Loans from:
 
 1.3 Corporation Bank:
 
 a.  For the Hospital at Brigade Gateway Project is secured by exclusive
 charge on land measuring approx. 1.72 acres out of the larger portion
 of land measuring 39.735 acres situated at 26/1, Industrial Suburb,
 Subramanyanagar, Malleshwaram West, Bangalore, and building constructed
 thereon. Amount outstanding as on 31.03.2009 is Rs. 3,413.30 Lakhs
 (Previous Year Rs. 2,021.70 Lakhs).
 
 b.  For the Brigade Gateway North Star and Multi Level Car Parking
 Complex Projects is secured by first charge on pari-passu basis with
 Indian Bank on land measuring approx 5.3 acres out of the larger
 portion of land measuring 39.735 acres situated at 26/1, Industrial
 Suburb, Subramanyanagar, Malleshwaram West, Bangalore, and Brigade
 Gateway North Star building and Multi Level Car Parking being
 constructed thereon.  Amount outstanding as on 31.03.2009 is Rs.
 7,946.90 Lakhs (Previous Year Rs. 3,685.50 Lakhs).
 
 c.  As overdraft is secured by equitable mortgage of portions owned by
 the Company in Brigade Seshmahal situated at No. 5, Vani Vilas Road,
 Basavanagudi, Bangalore, and equitable mortgage of Hulkul Brigade
 Centre situated at No.  82, Lavelle Road, Bangalore, owned by M r. M.
 R. Jaishankar and his family members.
 
 Above loans have been further secured by the personal guarantee of M r.
 M. R. Jaishankar and Mr. M. R. Shivram.
 
 1.4 Indian Bank:
 
 For Brigade Gateway North Star and Multi Level Car Parking Complex
 Projects is secured by first charge on pari-passu basis with
 Corporation Bank on land measuring approx 5.3 acres out of the larger
 portion of land measuring 39.735 acres situated at 26/1, Industrial
 Suburb, Subramanyanagar, Malleshwaram West, Bangalore, and Brigade
 Gateway North Star building and Multi Level Car Parking being
 constructed thereon.  Amount outstanding as on 31.03.2009 is Rs.
 4,687.39 Lakhs (Previous Year Rs. 2,173.70 Lakhs)
 
 1.5. State Bank of India:
 
 a. For Hotel and Orion Mall Projects at Brigade Gateway Project is
 secured by first charge on pari-passu basis with of State
 
 Bank of Mysore and State Bank of Patiala on land measuring 5.45 acres
 out of the larger portion of land measuring 39.735 acres situated at
 26/1, Industrial Suburb, Subramanyanagar, Malleshwaram West, Bangalore,
 and the buildings being constructed thereon. Amount outstanding as on
 31.03.2009 is Rs. 6,924.40 Lakhs (Previous Year Rs. 3,587.20 Lakhs).
 
 b. For Brigade South Parade Project is secured by equitable mor tgage
 of proper ty belonging to M r. M. R. Jaishankar situated at
 Kurubarakunte Village, Devanahalli Taluk, measuring 22 acres and first
 charge on the rent receivable from the building Brigade South Parade.
 Amount outstanding as on 31.03.2009 is Rs. 267.00 Lakhs (Previous Year
 Rs. 665.60 Lakhs).
 
 The above limits are further secured by personal guarantee of Mr. M. R.
 Jaishankar & Mr. M. R. Shivram.
 
 1.6. State Bank of Mysore:
 
 For the Hotel and Orion Mall Projects at Brigade Gateway Project is
 secured by first charge on pari-passu basis with State Bank of India
 and State Bank of Patiala on land measuring 5.45 acres out of the
 larger portion of land measuring 39.735 acres situated at 26/1,
 Industrial Suburb, Subramanyanagar, Malleshwaram West, Bangalore, and
 the buildings being constructed thereon. Amount outstanding as on
 31.03.2009 is Rs. 2,123.30 Lakhs (Previous Year Rs. 1,693.10 Lakhs).
 
 1.7 State Bank of Patiala:
 
 For the Hotel and Orion Mall Projects at Brigade Gateway Project is
 secured by first charge on pari-passu basis with State Bank of Mysore
 and State Bank of India on land measuring 5.45 acres out of the larger
 portion of land measuring 39.735 acres situated at 26/1, Industrial
 Suburb, Subramanyanagar, Malleshwaram West, Bangalore, and the
 buildings being constructed thereon. Amount outstanding as on
 31.03.2009 is Rs. 2,124.90 Lakhs (Previous Year Rs. 1,692.70 Lakhs).
 
 1.8 HDFC Ltd:
 
 For the Brigade Metropolis Project is secured by mortgage of land
 situated at Mahadevapura Village, Krishnarajapuram Hobli, Bangalore
 South, to the extent of developers share measuring 6,10,000 sft and
 built-up space thereon. Amount outstanding as on 31.03.2009 is Rs.
 6,065.30 Lakhs (Previous Year Rs. 9,000.00 Lakhs).
 
 The limits are further secured by personal guarantee of Mr. M. R.
 Jaishankar.
 
 1.9 IDBI Bank Ltd:
 
 For the Brigade Palmsprings is secured by equitable mor tgage of land
 and building being constructed at Puttenahalli, Uttarahalli, J.P.
 Nagar, Bangalore, to the extent of undivided share of Brigade Enterprises 
 Limited. Amount outstanding as on 31.03.2009 is Rs. 3,018.60 Lakhs 
 (Previous Year Rs. 538.30 Lakhs)
 
 The limits are further secured by personal guarantee of Mr. M.R.
 Jaishankar & Mrs. Githa Shankar.
 
 1.10 Bank of Maharashtra:
 
 For the Brigade Petunia Project is secured by equitable mortgage of
 land and building being constructed thereon at Banashankari 2nd Stage,
 Industrial Layout, Bangalore. Amount outstanding as on 31.03.2009 is
 Rs. 2,075.50 Lakhs (Previous Year Rs. 2,075.50 Lakhs).
 
 The limits are further secured by personal guarantee of Mr. M. R.
 Jaishankar & Mr. M. R. Shivram.
 
 1.11 ICICI Bank Ltd:
 
 For the Homestead-2 is secured by exclusive mortgage on land and
 building at Jayanagar, Bangalore. Amount outstanding as on 31.03.2009
 is Rs. 805.00 Lakhs (Previous Year Rs. 904.90 Lakhs).
 
 The limits are further secured by personal guarantee of Mr. M.R.
 Jaishankar and Mr. M. R. Shivram.
 
 1.12 Bank of Baroda:
 
 For the Brigade International School at Whitefield, Bangalore, is
 secured by equitable mortgage (1,74,267 sft.) of land and building at
 No. 9, Dyavasandra Industrial Area Phase I, K.R. Puram Hobli,
 Bangalore. Amount Outstanding as on 31.03.2009 is Rs. 1,500.48 Lakhs
 (Previous Year Nil).
 
 2.  Warranty Costs:
 
 The Company has not recognised Warranty Cost relating to sale of unit /
 property, since such costs, if any, are covered by a corresponding
 warranty from the Company’s contractors / vendors. This cost, if any,
 is recognised as and when incurred by the Company.
 
 3 Segmental Reporting:
 
 The Company’s operations predominantly relate to Construction &
 Development, Real Estate Development, and related activities of leasing
 / rental of units / properties. Accordingly, real estate development
 represents a single Primary segment in the financials of the Company
 and the geographical location of the projects represents the secondary
 segment of reporting.
 
 During the current year, the financials of the Company represent a
 single Primary segment (real estate development). With respect to
 secondary segment, the Company has its projects in India, which makes
 it a single segment. Hence, providing of segmental information is not
 applicable to the Company for the current financial year.
 
 4 Deferred Taxation:
 
 During the year, the Company has accounted for Rs. 0.26 Lakhs (Previous
 Year Rs. 16.01 Lakhs towards Deferred Tax Liability) towards Deferred
 Tax Asset and the same has been credited to Profit and Loss Account of
 the Current Year.
 
 5 Joint Ventures:
 
 (a) BCV Developers Pvt. Ltd. (“BCV”)
 
 In July 2008, the Company and certain Landowners formed a Joint Venture
 Company called BCV Developers Pvt. Ltd.  (“BCV”) in Bangalore. BCV
 envisages the development of an Integrated Township Project in
 Devanahalli, Bangalore.  As at 31st March, 2009, the Company and the
 Landowners each hold 50% of the equity in BCV.
 
 6 As per the information available with the Company, the principal
 amount payable to Micro, Small, and Medium Enterprises falling under
 the provisions of Micro, Small, and Medium Enterprises Development Act,
 2006, Rs. 60.90 Lakhs.
 
 7 Balances of Debtors and Creditors and Loans and Advances are
 subject to confirmation.
 
 8 Prior Period income of Rs. 2,920.74 Lakhs includes a sum of Rs.
 1,910.78 Lakhs being Cenvat Credit and Rs. 1,012.95 Lakhs being VAT
 Credit respectively, pertaining to prior periods on Input services and
 Capital Goods claimed by the Company during the Current Year as Input /
 Cenvat Credits availed.
 
 9 A sum of Rs. 40.44 Lakhs (Previous Year Rs. 272.54 Lakhs), being
 borrowing cost incurred by the company in respect of Assets / Projects,
 was capitalized during the year. A sum of Rs. 2,764.85 Lakhs (Previous
 Year Rs. 2,100.87 Lakhs), being borrowing cost incurred
 by the Company in respect of Assets / Projects under Construction is
 carried forward as Capital Work-in-progress.
 
 10 Quantitative Details:
 
 The Company is engaged in the business of real estate and property
 development. Such activity cannot be expressed in any generic unit.
 Hence, it is not possible to give the quantitative details of sales and
 the information as required under paragraphs 3, 4C, and 4D of Part II
 of Schedule VI of the Companies Act, 1956.
 
 11    Contingent Liabilities:
 
 Capital Commitments and Contingent Liabilities on account of:
 
                                                 (Rupees in Lakhs)
 Particulars                                     2008-09     2007-08
 
 Capital Commitments not provided in the        67,499.00   84,362.40
 books
 Towards Letter of credits and bank              2,353.92    1,255.50
 guarantees
 Claims from government departments not          6,988.65      181.70
 acknowledged as debts
 
 The figures of the previous year have been regrouped and reclassified
 wherever necessary.