1.  BACKGROUND
 
 Kolte - Patil Developers Limited (the Company) is a Company
 registered under the Companies Act, 1956.  It was incorporated on 25th
 November 1991. The Company is primarily engaged in business of
 construction of residential, commercial, IT Parks along with renting of
 immovable properties and providing project management services for
 managing and developing real estate projects.
 
 2.  EVENTS OCCURRING AFTER BALANCE SHEET DATE
 
 No significant events which could affect the financial position as on
 31st March 2011, to a material extent have been reported by the
 Company, after the balance sheet date till the signing of report.
 
 3.  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 prior periods.
 
 4.  Sitting Fees
 
 The Company pays Rs. 20,000/- to each Non-Executive Director of the
 Company towards sitting fee for attending each Board Meeting.
 
 5.  EARNINGS PER SHARE
 
 The Earnings Per Share is calculated in accordance with Accounting
 Standard 20 Earnings Per Share issued by The Institute of Chartered
 Accountants of India. The earnings considered in ascertaining the
 Companys EPS comprises the profit available for shareholders i.e.
 profit after tax and statutory / regulatory appropriations. The number
 of shares used in computing Basic EPS is the weighted average number of
 shares outstanding during the year. Diluted EPS is the same as that of
 Basic EPS for financial year 2010- 11, as there are no potential equity
 shares outstanding as on 31st March, 2011.
 
 6.  Based on the information available with the Company, the amount
 payable to Micro and Small Medium Enterprises as on Balance Sheet date
 is Rs. 0.38 Lakhs. The above disclosure has been determined to the
 extent of such parties have been identified on the basis of information
 available with the Company.
 
 7.  DETAILS OF SECURED LOANS AND SECURITY OFFERED
 
 I.  Axis Bank Limited:
 
 Charge secured by registered simple mortgage of Showroom no. 3 and no.
 6 on the ground floor of the building Delta II and first floor and
 terrace thereon of the Amenity Building of the project Giga Space
 constructed on S.N. 198/1B situated at Mouze Lohagaon Corporation and
 within district Taluka Haveli.
 
 II.  IDBI Bank Limited:
 
 (Nature of Credit Facility Cash Credit: Rs. 2,500 Lakhs, Bank
 Guarantee: Rs. 500 Lakhs)
 
 a.  Primary Security: Hypothecation of Construction Material, WIP,
 receivables and Plant and Machinery with all fixture and fittings
 attached imbedded fastened thereon and also other plants machinery
 goods, articles chattels. Things, stores, motor trucks motor cars,
 motor vehicles that are may be lying loose kept possessed under the use
 process or in otherwise under control of the Company
 
 b.  Collateral Security:
 
 1.  Extension of Regd. Mortgage of Boat Club Road land, final plot no.
 188, S. No. 347-B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A, total area
 113883 sq. ft. at Pune.
 
 2.  Regd. Mortgage of land at C.S. No. 23/170 A & B, Aundh Land. Total
 Area 572587 sq. ft.
 
 3.  Office No. 101B, 102, 105D, 106, 107AB, 112C,
 201-202-203-204-205-206-207-208. Total Area 11845 sq.ft. First and
 Second Floors, City Point, S. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A
 Hissa No. 1/1, 348A Hissa No. 1/2A, final plot no. 188 CST No. 14
 (part) 14/1, 14/2 Dhole Patil Road, Pune–411001.
 
 III.  IDBI Bank Limited:
 
 (Term Loan Rs. 3,000.00 Lakhs.)
 
 Primary:
 
 Mortgage of land at Survey No. 14 Hissa No 14/3/1/1 to 4
 ,14/4/1,14/5/1/2 to 4 admeasuring 34400 sq.  mtr Located at Pimple
 Nilakh, in Pune
 
 Collateral:
 
 Extension of Regd. Mortgage of Boat Club Road land, final plot no. 188,
 S. No. 347-B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A, total area 113883
 sq. ft. at Pune
 
 Office No.101B, 102, 105D, 106, 107AB, 112C,
 201-202-203-204-205-206-207-208, First and second floors, City
 PointS. No. 347B, 347A, Hissa No. 3C/1A/1, 348 A Hissa No. 1/1, 348A
 Hissa No. 1/2A, final plot no.188 CST No. 14(part) 14/1, 14/2 Dhole
 Patil Road Pune –01
 
 Additional collateral security by way of Mortgage of land at Survey No.
 17 Hissa No 17/1/1/2 to 3, Survey No.13, Hissa No.13/1/2 to 4
 admeasuring land area of 27660.13 sq. mtr located at Pimple Nilakh, in
 Pune
 
 IV.  Corporation Bank Limited:
 
 (Term Loan Sanctioned Rs. 500.00 Lakhs. Availed Rs.110.00 Lakhs)
 Security Offered:
 
 a.  All that piece and parcel of commercial property bearing
 corporation No. 23, old No. 28, B.B.M.P.- P.I.D. No. 76-19-23, situated
 at Richmond Road, Richmond Town, Bengaluru 560025, B.B.M.P.  ward No.
 76, measuring 1763.408 sq.mt. or 18981.323 sq.ft. (in detailed
 described in Schedule B of Deposit of Title deed dated 28.09.2010)
 
 b.  Hypothecation of Building materials i.e. steel, cement etc.
 purchased or to be purchased by the Company, kept or to be kept at the
 site or any other place for construction of Building for Richmond Road,
 Bengaluru Project (as mentioned in Schedule A of Common Deed of
 Hypothecation of Movables/Assets/Debts dated 28.09.2010).
 
 8. RELATED PARTY TRANSACTION (ACCOUNTING STANDARD - 18)
 
 Related party disclosures as required by Accounting Standard 18:
 Related Party Disclosures, (AS-18) issued by the Institute of
 Chartered Accountants of India are given below:
 
 a.  List of Related Parties
 
 i) Related Parties (as identified by the Management) are classified as:
 
 Subsidiaries
 
 1.  Bellflower Properties Private Limited
 
 2.  I-Ven Kolte-Patil Projects (Pune) Private Limited
 
 3.  Jasmine Hospitality Private Limited
 
 4.  Lilac Hospitality Private Limited
 
 5.  Oakwoods Hospitality Private Limited
 
 6.  Olive Realty Private Limited
 
 7.  Regenesis Project Management Company Private Limited
 
 8.  Sylvan Acres Realty Private Limited
 
 9.  Yashowardhan Promoters and Developers Private Limited
 
 10.  Regenesis Facility Management Company Private Limited
 
 11.  Kolte –Patil Real Estate Private Limited
 
 12.  PNP Retail Private Limited
 
 13.  Snowflower Properties Private Limited
 
 Key Management Personnel Director Associates / Enterprises
 
 Mr. Rajesh Patil, 
 
 Mr. Naresh Patil, 
 
 Mr. Milind Kolte, 
 
 Mrs. Sunita Kolte
 
 Key Management Personnel Director of Associates / Enterprises
 
 Mr. Harish Kumar Gurnani, 
 
 Mr Bhagwan Shivlani, 
 
 Arora Holdings (Mauritius) Limited, ICICI Venture Funds Management
 Company Limited
 
 Relatives of Key Management Personnel
 
 Mrs. Vandana Patil, Mrs. Sunita Patil,
 
 Mr. Ketan Kolte, Ms. Ketki Kolte, Ms. Ankita Patil,
 
 Mr. Nirmal Kolte, Mr. Pradeep Kolte,
 
 Mr. Digambar Kolte, Mrs. Pramila Kolte.
 
 Associates/Enterprises /Joint Ventures over which key Management
 Personnel have significant influence
 
 Ankit Enterprises, Corolla Realty Private Limited, Kolte-Patil I-Ven
 Townships (Pune) Private Limited, Kolte-Patil Enterprises, Kolte-Patil
 Homes,Harshwardhan Co-operative Housing Society Limited, Green Olive
 Venture, Vibhu-KPDL Venture, KP-Rachana Real Estate LLP.
 
 9. CONTINGENT LIABILITIES
 
                                                    (Rs. in Lakhs) 
 Sr. 
 No.  Particulars                                     31.03.2011
 
 1.  Claims not acknowledged as debts*                  382.00
 
 2.  Guarantees issued by the Company on 
 behalf of Subsidiary Companies and Associates**     17,000.00
 
 3.  Income Tax Matters (Pending in Appeals)          3,295.94
 
 * in the opinion of the management the above claims are not sustainable
 
 ** The Company does not expect any outflow of resources in respect of
 the Guarantees issued.
 
 10.  The Company is not a manufacturing or trading Company, hence
 quantitative and other disclosures as required by paragraph 3 (ii) (a),
 (b) and paragraph 4c of Part II of Schedule VI to the Companies Act,
 1956 are not applicable to the Company.
 
 11.  In the opinion of the Board, current assets and 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.
 
 12.  Balances standing at the debit or credit in the accounts of
 various parties are subject to confirmation and reconciliation.
 
 13.  Interest amount debited in Profit and Loss Account is after
 considering interest received and other receipts.
 
 14.  Estimated amount of contract remaining to be executed on capital
 account and not provided for is NIL.  (Previous Year NIL)
 
 b) Share of profit of the Company for the year ended on 31st March 2011
 is Rs.1223.57 Lakhs.
 
 c) The credit in the capital account balance as on 31st March 2011 is
 at Rs. 4,585.34 Lakhs.
 
 15. INVESTMENT IN JOINT VENTURE
 
 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 Private Limited by forming an Association of
 Persons named Green Olive Ventures. The Company has agreed to
 contribute an amount of Rs. 250 Lakhs towards initial capital and has
 agreed to contribute further capital as and when needed for Joint
 Venture. The Company has contributed Rs. 1283.33 Lakhs up to 31st
 March, 2011.
 
 b) Vibhu–KPDL Venture
 
 The Company, by virtue of an Agreement has entered into a Joint Venture
 with Vibhu Developers Private Limited by forming an Association of
 Persons named Vibhu- KPDL Venture. The Company has agreed to contribute
 an amount of Rs. 1376.40 Lakhs towards initial capital and has agreed
 to contribute further capital as and when needed for Joint Venture. The
 Company has contributed Rs.1933.63 Lakhs up to 31st March, 2011.
 
 16.  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, the Company is engaged in
 various segments namely Real Estate Development, Retail and
 Hospitality. However, in financial year 2010-2011 there is only one
 reportable segment namely Real Estate Development.
 
 17.  In view of Accounting Standard required by AS-28 Impairment of
 Assets issued by The Institute of Chartered Accountants of India
 (ICAI), the Company has reviewed its fixed assets and does not expect
 any loss as on 31st March 2011on account of impairment in addition to
 the provision already made in the books.
 
 18.  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.
 
 19.  CONTRIBUTION TO GROUP 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 Insurance 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.
 
 20. Employees Stock Option Scheme 2006 (ESOS)
 
 In the fiscal year 2006, the Company constituted Employee Stock Option
 Scheme 2006. The Board of Directors and shareholders approved the
 scheme in the month September 2006 and October 2006 respectively, which
 provides for the issue of 7,80,000 Equity Shares to the employees. The
 Remuneration and Compensation Committee administers Employees Stock
 Option Scheme 2006 (ESOS) and options were granted in the month of
 September 2006.
 
 During the year, the Company has issued 2,93,655 Equity Shares of Rs.
 10/- each at a premium of Rs.30/- per share to each employee under the
 Scheme.
 
 21.  In the year 2007-08, 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.
 
 22.  Last years figures have been regrouped, reclassified and
 rearranged whenever necessary.