Kolte-Patil Developers

The Directors take pleasure in presenting the 17th Annual Report on
 the business and operations of the Company, together with the Audited
 Financial Accounts for the year ended 31st March, 2008.
 
 Financial results
 
                                               (Rs. in Millions)
 Particulars                               Year ended on   Year ended on
                                             31st March,     31st March,
                                                2008            2007
 
 Revenue                                     3,813.48         2,514.98
 Less: Expenditure                           2,087.48         1,385.96
 Less: Financial Charges                        64.63            42.97
 Less: Depreciation/                             7.10             4.72 
 
 Amortization
 Profit Before Tax                           1,654.27        1,081.33
 Less: Tax Expenses                            367.67          246.23
 PAT (Profit After Tax)                      1,286.60          835.10
 Add: Prior Period Item                          2.00            3.46
 Net Profit                                  1,288.60          838.56
 Add: Balance of profit brought
 forward from last year                        728.44          119.73
 Less: Taxation in firm                          9.20              -
 Total amount available for appropriation    2,007.84          958.29
 
 Appropriations:
 General Reserve                               128.66          211.52
 Dividend on equity shares                     131.88           16.07
 Tax on dividend                                22.42            2.26
 Balance carried to Balance Sheet            1,724.88          728.44
 
 Performance review
 
 During the year under review, the total revenue has stepped up to Rs.
 3,813 millions, showing growth of 52% over the previous year.  During
 the current year, Company has incurred total expenditure of Rs. 2,159
 millions as compared to previous year Rs. 1,434 millions. The Company’s
 Profit Before Tax (PBT) also rose sharply to Rs. 1,654 millions as
 compared to Rs. 1,081 millions in the corresponding previous year. Your
 Company looks forward to a manifold increase in development and sale of
 completed projects in the years to come.
 
 New Business initiatives
 
 a.  During the year under review, your Company has set-up branch office
 at Dubai exclusively for marketing activities and planning to register
 a new Company under Free Trade Zone (FTZ) to develop some residential
 projects in Dubai.
 
 b.  Your Company has entered into Joint Venture Agreement with UK based
 hotelier group to develop and operate five star and four star hotels in
 Pune and Bangalore respectively through SPV’s namely, Oakwoods
 Hospitality Private Limited and Jasmine Hospitality Private Limited.
 Your company holds 51% equity in these companies.
 
 c.  The Company has entered into Joint Development Agreement with Vibhu
 Developers Private Limited to set-up an IT–SEZ on total area of 70
 acres, near Rajiv Gandhi Infotech Park, Hinjewadi, Pune.
 
 d.  Your Company has entered into Joint Venture Agreement with
 Kolte-Patil Real Estate Private Limited, K2A Residential Limited, Mr.
 Rajesh Patil and Regenesis Project Management Company Private Limited
 for the development of real estate projects including the residential
 project proposed to be constructed at Pune.
 
 Future outlook
 
 To attain pan-India presence, your Company has planned to spread
 development activity in hotels, commercial and residential segments, in
 cities like Indore, Surat, Ahmedabad, Nagpur, Vizag, Raipur, Hyderabad,
 Chennai and Navi Mumbai.
 
 Your Company is also exploring its activities in the overseas markets.
 As a part of this effort, the Company is considering some residential
 and commercial projects in Dubai.
 
 Your Company is pursuing new business opportunities like set- up of own
 Real Estate Fund, Warehousing and logistics, financial services and
 achieving the highest standards of professionalism, ethics and customer
 service.
 
 Initial public offering
 
 With the objective of augmenting capital base for funding future growth
 plans, your Company entered the Capital Market and made its Initial
 Public Offering (IPO) of 19,002,977 equity shares of Rs. 10/- each at a
 premium of Rs. 135 per share through 100% Book Building process. The
 IPO was over-subscribed by approximately 45 times. The Equity Shares of
 the Company were listed on National Stock Exchange of India Limited and
 Bombay Stock Exchange Limited on 13th December, 2007.
 
 On behalf of the Company, your Directors take this opportunity to thank
 all the investors for their overwhelming response to the IPO and
 confidence reposed by them in the business.
 
 Dividend
 
 Your Directors are pleased to recommend, for your approval, payment of
 the first dividend post IPO of Rs.1.75 per share (i.e.  @17.5% per
 share) on equity share capital of the Company.
 
 Directors
 
 There are no changes in the Board of Directors during the year under
 review, except as mentioned below:
 
 Mr. G. L. Vishwanath, Mr. Achyut Watve, Mr. Satish Tandon and Mr.
 Manish Doshi have been co-opted as Additional Directors with effect
 from 26th December, 2006. All the four Directors are Independent
 Directors. Their appointment has been confirmed unanimously in the 16th
 Annual General Meeting.
 
 Pursuant to Section 256 of the Companies Act, 1956 read with the Clause
 167 of Articles of Association of the Company, Mr. G. L.Vishwanath and
 Mr. Satish Tandon, Directors are retiring by rotation and being
 eligible and have offered themselves for re-appointment at the ensuing
 Annual General Meeting.
 
 subsidiary companies
 
 The Company has ten subsidiaries as on 31st March, 2008 namely,
 Regenesis Project Management Company Pvt. Ltd., Yashowardhan Promoters
 & Developers Pvt. Ltd., Sylvan Acres Realty Pvt. Ltd., I-Ven
 Kolte-Patil Projects (Pune) Pvt. Ltd., Kolte-Patil Real Estate Private
 Limited, Lilac Hospitality Private Limited, Olive Realty Private
 Limited, Bellflower Properties Private Limited, Jasmine Hospitality
 Private Limited and Oakwoods Hospitality 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. However, the Company has applied to the
 Government of India for an exemption from this Section. The approval
 from the Government is awaited. 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, India.
 
 Fixed Deposits
 
 The Company has not accepted any fixed deposits from the public within
 the meaning of Section 58A of the Companies Act, 1956.
 
 Employees stock option scheme 2006 (esos)
 
 During the year under review your Company 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 and forms part of this report.
 
 Investors relations and Grievances
 
 Investors’ Relations have been cordial during the year. As a part of
 compliance, the Company has formed Shareholders’ and Investors’
 Grievance Committee to address the issues relating to investors.  There
 were no investor grievances pending as on 31st March, 2008.  A
 confirmation to this effect has been obtained from the Company’s
 Registrar & Transfer Agent. A detailed report on the above appears in
 Corporate Governance Report 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
 and prudent judgements 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, 2008 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. SPCM & 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 office, if re-appointed.  Shareholders are
 requested to re-appoint them and fix their remuneration.
 
 Human resource Management
 
 Employees are vital for the Kolte-Patil Group. The Company has created
 favourable work environment that encourages innovation and meritocracy.
 We have also set up scalable recruitment and human resource management
 processes, which enables us to attract and retain the high calibre
 employees.
 
 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 Annexure I and it forms part of this Report.
 
 Particulars of the employees
 
 A statement required under Section 217 (2A) of the Companies Act, 1956
 has been furnished herein Annexure II and forms 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 part of this
 Report.
 
 Corporate Governance report
 
 Your Directors adhere to the requirements set out in Clause 49 of the
 Listing Agreements entered with the Stock Exchanges.  Report on
 Corporate Governance as stipulated in the said Clause is annexed and
 forms part of this Report.
 
 Acknowledgements
 
 The Directors would like to express their grateful appreciation for the
 assistance and co-operation received from customers, vendors,
 stakeholders, Central and State Government Authorities, other business
 associates and bankers of the Company. Your Directors take this
 opportunity to thank all the employees for rendering high quality
 service to every constituent of the Company’s customers.  The employees
 have worked on principles of honesty, integrity, fair play and this has
 helped to ensure a sustained excellence in performance. Finally, the
 Directors would like to convey their gratitude to the members and look
 forward to their continued support.
 
 Cautionary statement
 
 Statements made in the report, including those stated under the caption
 “Management Discussion and Analysis” describing the Company’s plan,
 projections and expectations may constitute “forward looking statement”
 within the meaning of applicable laws and regulations. Actual results
 may differ materially from those either expressed or implied.
 
                           For and on behalf of the Board of Directors
 
 Place: Pune                               rajesh patil
 Date : 19th May 2008              Chairman and Managing Director