Kolte-Patil Developers

1.  EVENTS OCCURRING AFTER BALANCE SHEET DATE
 
 No significant events which could affect the financial position as on
 31st March 2009, to a material extent have been reported by the
 assessee, after the balance sheet date till the signing of report.
 
 2.  PRIOR PERIOD AND EXTRA ORDINARY ITEMS
 
 There are no material changes or credit which arises in current period,
 on account of errors or omissions in the preparation of financial
 statements for one or more periods except the following.
 
 a.  Difference in accounting of share of profit in partnership concerns
 M/s. Ankit Enterprises in which Company is partner amounting to Rs.
 1502.26 lakhs relating to financial year 2007-08 has been disclosed as
 prior period items.
 
 b.  Hither to the Company was providing the depreciation on the Gross
 Block of theassets. During the year, the Company has calculated
 depreciation on individual items comprising of block. The difference in
 the depreciation provided until now on the Gross Block of the Assets
 and the Depreciation works out on individual Assets amounting to
 Rs.12.92 lakhs has been included in current year depreciation and
 disclosed as prior period items.
 
 3.  Based on the information available with the company, there are no
 dues outstanding in respect of Micro and Small Medium Enterprises as on
 Balance sheet date except one party to whom amount payable to Rs.0.15
 lakhs , and the same has been paid by the company on 13th April 2009.
 The above disclosure has been determined to the extent of such parties
 have been identified on the basis of information available with the
 Company. This has been relied upon by the auditors.
 
 4.  DETAILS OF SECURED LOANS AND SECURITY OFFERED
 
 a) The Honkong and Shanghai Banking Corporation Limited (HS6C): Secured
 by first parri passu charge on alt by way of hypothecation.on all
 receivables of the Green Groves Project and the Companys stock-in-
 trade both present and future, including stock of raw material, work in
 progress, spares and stores and finished goods whether stored in
 Companys factory, godown or premises.
 
 Interest on loan will be charged on daily balances at mutually agreed
 rates and payable monthly in arrears or on the due dates, whichever is
 earlier, to the debit of the current account.
 
 b) HDFC Bank Limited: First Exclusive charge by way of assignment of
 rent receivables from office premises admeasuring about 621/70S«f. Ft.
 on 3rd and 4th Floor, in Delta Building, Giga Space, IT Park, Viman
 Nagar, situated at F.P. 383, S. No. 198/1, Mouze-Lohagaon,Pune-411014
 
 Additional Security given as all that consisting of office premises
 nos.301A, 301-B, 301-C, on the 3rd Floor, and 401-A, 401-B & 401.-C on
 the 4th Floor totally admeasuring about 62,170 sq. ft. (5775.19 sq.
 mtrs. Built Up) along with 62 Car parking Spaces in Delta Building,
 Giga Space, IT Park, Constructed on land bearing S. Nos. 198/Viman
 Nagar, Mouze Lohagaon, Pune-411014, which is within the local limits of
 the Pune Municipal Corporation within the Registration District Pune,
 Sub Registrar Taluka Haveli, District-Pune Together rights to
 entrances, passages and other easements belonging or appertaining to
 the aforesaid premises and all fixtures and fittings attached to the
 earth or anything attached to the earth or anything attached to the
 earth or both present and future.
 
 c) Axis Bank Limited .Charge secured by registered simple mortgage of
 Showroom no. 1 to no.7 and 2 ATMs together admeasuring approx 15665
 sq. ft. carpet on the ground floor of bldg. Delta, Giga Space,
 constructed on S. No. 198/1B situated at Mouze Lohagaon at Pune Nagar
 Road, Pune
 
 5.  In the opinion of the Board, current assets loans and advances
 have a value on realization in the ordinary course of business at least
 equal to the amount at which they are stated and provisions for all
 known and determined liabilities are adequate and not in the excess of
 the amount reasonably necessary.
 
 6.  Balances standing at the debit or credit in the accounts of
 various parties are subject to confirmation and reconciliation.
 
 7.  Interest amount debited in Profit and Loss Account is after
 considering interest received and other receipts.
 
 8.  Estimated amounts of contract remaining to be executed on capital
 account and not provided for is NIL
 
 9.  INVESTMENT IN PARTNERSHIP :
 
 Investment made in partnership firm represents investment made with
 M/s. Ankit Enterprises and M/s. Kolte Patil Homes. The details of
 partnership firms are as follows:
 
 10.  INVESTMENT IN JOINT VENTURES :
 
 The Companys interest and share in Joint Venture in jointly controlled
 activities are as follows:
 
 a) Green Olive Ventures:-
 
 The Company, by virtue of an Agreement has entered into a Joint Venture
 with Arista Developers Pvt. Ltd. by forming an Association of Persons
 named Green Olive Ventures. The Company has agreed to contribute an
 amount of Rs. 250 lakhs towards initial capita! and has agreed to
 contribute further capital as and when needed for Joint Venture. The
 company has contributed Rs. 976.83 Lakhs up to 31 st March 2009.
 
 b) Vibhu -KPDL Venture:-
 
 The Company, by virtue of an Agreement has entered into a Joint Venture
 with Vibhu Developers Pvt. Ltd. by forming an Association of Persons
 named Vibhu- KPDL Venture. The Company has agreed to contribute an
 amount of Rs. 137640 lakhs towards initial capital and has agreed to
 contribute further capital as and when needed for Joint Venture. The
 company has contributed Rs. 1867.82 lakhs up to 31st March, 2009.
 
 11.  SEGMENT ACCOUNTING:
 
 Accounting Standards interpretation (ASI) 20 Dt. 14.02.2004, issued by
 the Accounting Standard Board of ICAI, on AS - 17, Segment reporting
 clarifies that in case by applying the definition of Business Segment
 and Geographical Segment given in AS-17, it is concluded that there is
 neither more than one business segment nor more than one geographical
 segment, Segment Information as per AS-17 is not required to be
 disclosed.
 
 12. In view of Accounting Standard required by AS-28 Impairment of
 Assets issued by ICAI, the company has reviewed its fixed assets and
 does not expect any loss as on 31st March, 2009 on account of
 impairment in addition to the provision already made in the books.
 
 13.  OPERATING LEASE (AS-19):
 
 Lease rent payable for office taken on lease is charged to revenue
 under the head depreciation.
 
 The lease rentals are charged over the specified period of lease i.e.
 50 years.
 
 Cost of leasehold rights is being amortized @ 2% per annum considering
 the period of lease.
 
 14.  Work in progress have been taken as verified, valued and certified
 by the management and as informed, it is taken on the basis of cost
 price.
 
 15.  CONTRIBUTION TO CROUP GRATUITY SCHEME OF LIC :
 
 In accordance with provision of Accounting Standard (AS) - 15
 (Revised-2005) on employee benefit, the company has taken a Group
 Gratuity Policy from Life I nsurance Corporation of India to adequately
 cover the present liability for future payments of gratuity to the
 employees on actuarial valuation. The obligation for leave encashment
 is recognized in the same manner as Gratuity. Expenses recognized
 during the year shown under the head Employee Cost.
 
 16.  BONUS:
 
 Bonus for the year amounting to Rs.10.77 lakhs paid during the year
 stands debited in the accounts.
 
 17.  KEYMAN INSURANCE POLICY :
 
 During the year, company has paid Rs. 0.67 lakhs under the Keyman
 Insurance Policy of Life Insurance Corporation of India for the
 following directors,
 
 1.  Rajesh A.Patil
 
 2.  Milind D. Kolte
 
 Premium paid during the year as per the scheme is absorbed under the
 head Employee Cost.
 
 18.  Employees Stock Option Scheme 2006 (ESOS):
 
 In fiscal 2006, the Company instituted the 2006 scheme. The Board of
 Directors and shareholders approved the scheme in the month September
 2006 and October 2006 respectively, which provides for the issue of
 750000 Equity Shares to the employees. The Remuneration Committee
 administers the Employees Stock Option Scheme 2006 (ESOS) and options
 were granted in the month of September 2006.
 
 During the year the Company has issued 61062 equity shares of Rs. 10/-
 each at a premium of Rs.30/- per share to employee under Employees
 Stock Option Scheme 2006 (ESOS).
 
 19.  In the previous year, the Company has incurred Rs. 2,329.07 lakhs
 On the Public Issue of equity shares of the Company, and these expenses
 are considered as deferred revenue expenditure as per Accounting Policy
 of the Company. The amount of Rs. 465.81 lakhs charged to Profit and
 Loss Account as IPO Expenses of the current year.
 
 20.  Last years figures have been regrouped, reclassified and
 rearranged whenever necessary.