Notes to Accounts of Kolte-Patil Developers Ltd.

Mar 31, 2025

S. Provisions and Contingent Liabilities

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of
money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost. The expense relating to a provision is presented in the statement of profit and loss
net of any reimbursement.

A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Company or a present obligation that is not recognized because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a
contingent liability but discloses it in the standalone financial statements, unless the possibility of an outflow of
resources embodying economic benefits is remote.

If the Company has a contract that is onerous, the present obligation under the contract is recognised and
measured as a provision. However, before a separate provision for an onerous contract is established, the
Company recognises any impairment loss that has occurred on assets dedicated to that contract.

T. Operating Cycle

The normal operating cycle in respect of operation relating to under construction real estate project depends
on signing of agreement, size of the project, phasing of the project, type of development, project complexities,
approvals needed and realisation of project into cash and cash equivalents which range from 2 to 4 years.
Accordingly, project related assets and liabilities have been classified into current and non-current based on
operating cycle of respective projects. All other assets and liabilities have been classified into current and non¬
current based on a period of twelve months.

Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:

¦ Expected to be realised or intended to be sold or consumed in normal operating cycle

¦ Held primarily for the purpose of trading

¦ Expected to be realised within operating cycle after the reporting period, or

¦ Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least within
operating after the reporting period

¦ All other assets are classified as non-current.

A liability is current when:

¦ It is expected to be settled in normal operating cycle

¦ It is held primarily for the purpose of trading

¦ It is due to be settled within operating cycle after the reporting period, or

¦ There is no unconditional right to defer the settlement of the liability for at least within operating cycle after
the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

U. Financial Instruments
Initial recognition:

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions
of the instruments.

Financial assets and liabilities are initially measured at fair value. With the exception of trade receivables that do
not contain a significant financing component or for which the Company has applied the practical expedient, the
Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component
or for which the Company has applied the practical expedient are measured at the transaction price determined
under Ind AS 115. Refer to the accounting policies in section (g) Revenue from contracts with customers. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair
value measured on initial recognition of financial asset or financial liability.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised in profit or loss.

Effective interest method:

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating
interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Financial assets at amortised cost:

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

Financial assets at fair value through other comprehensive income:

Financial assets are measured at fair value through other comprehensive income if these financial assets are
held within a business whose objective is achieved by both collecting contractual cash flows and selling financial
assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through profit and loss:

Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at
fair value through other comprehensive income on initial recognition. The transaction costs directly attributable
to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized
in statement of profit and loss.

Debt instruments at amortized cost:

A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included
in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss.
This category generally applies to trade and other receivables.

Financial liabilities at fair value through profit or loss:

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified
as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on
liabilities held for trading are recognized in the profit or loss.

Financial liabilities at amortized cost:

Financial liabilities are subsequently carried at amortized cost using the effective interest (''EIR'') method.

Interest-bearing loans and borrowings are subsequently measured at amortized cost using EIR method. For trade
and other payables maturing within one year from the balance sheet date, the carrying amounts approximate
fair value due to the short maturity of these instruments.

De-recognition of financial instruments:

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109. A
financial liability (or a part of a financial liability) is derecognized when the obligation specified in the contract is
discharged or cancelled or expires.

Reclassification of financial assets:

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial instruments.

Fair value of financial instruments:

In determining the fair value of its financial instruments, the Company uses following hierarchy and assumptions
that are based on market conditions and risks existing at each reporting date.

Fair value hierarchy:

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant
to the fair value measurement as a whole:

¦ Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

¦ Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.

¦ Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

For assets and liabilities that are recognized in the standalone financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the
end of each reporting period.

2A. NEW AND AMENDED STANDARDS

The Ministry of Corporate Affairs has made ammendments to Ind AS 116 Leases - "Lease Liability in a Sale and
Leaseback" which are effective for annual periods beginning on or after April 01, 2024 and must be applied
retrospectively to sale and leaseback transactions entered into on or after the date of initial application of Ind
AS 116. However, the amendments are not applicable to the Company and hence have no impact on Company''s
financial statements.

2B. STANDARDS NOTIFIED BUT NOT YET EFFECTIVE

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of
issuance of the Company''s financial statements are disclosed below. The Company will adopt this new and
amended standard, when it becomes effective.

Lack of exchangeability - Amendments to Ind AS 21:

The Ministry of Corporate Affairs notified amendments to Ind AS 21 The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess whether a currency is exchangeable and how it should determine a
spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that
enables users of its financial statements to understand how the currency not being exchangeable into the other
currency affects, or is expected to affect, the entity''s financial performance, financial position and cash flows.

The amendments are effective for annual reporting periods beginning on or after April 01, 2025. When applying
the amendments, an entity cannot restate comparative information.

The amendments are not expected to have a material impact on the Company''s financial statement

Nature and purpose of other reserves:

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Capital Redemption Reserve

The same has been created in accordance with provision of the Companies Act, 2013 with respect to buy back of
equity shares from the market in earlier years.

General Reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at
a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that
if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then
the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of
Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general
reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only
in accordance with the specific requirements of Companies Act, 2013.

Capital Reserve on Merger

Capital Reserve created on account of amalgamation.

Share Based Payment Reserve

The Company has share option scheme under which options to subscribe for the Company''s shares have been granted.
The share based payment reserve is used to recognise the grant date fair value of options issued to employees under
such employee stock option plan.

Retained Earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss /
(gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

(i) Terms of Non Convertible Debentures (NCD) issued :

a) The Debenture Allotment Committee of Board of Directors in their meeting held on April 17, 2023 allotted
20,650 Senior, Secured, Listed, Rated, Redeemable, Zero coupon NCD of face value H100,000 each, on a private
placement basis, aggregating H20,650 lakhs to Marubeni Corporation, Japan. The proceeds from the issue were
utilised towards the construction and development of the Project and for general corporate purposes of the
Company. Unless redeemed earlier, NCDs shall be for a period of 120 months. The NCDs shall be redeemed at
premium which is linked to collections made from sale of the earmarked units. These NCDs along with above
redemption premium are being redeemed as and when the revenues are collected by the company in accordance
with the debenture trust deed, as amended from time to time.

Further, the Debenture Allotment Committee of the Board of Directors in their meeting held on March 19,
2024, approved amendments in the Debenture Trust Deed ("DTD") and Placement Memorandum related to

computation of redemption premium on each redemption date, which is linked to collections made from sale of
earmarked units in excess of minimum selling price as defined in the DTD and corresponding pro-rata reduction
of the face value leading to partial redemption of debentures. As at, March 31, 2025, the Company has redeemed
debentures amounting to H3,656 lakhs towards the outstanding principal amount and has paid H1,750 Lakhs
towards the redemption premium payable on such debentures. The outstanding principal amount of these
debentures is H16,994 lakhs with a reduced face value of H82,297 per debenture. The security cover in respect of
these outstanding Non-Convertible Debentures as on March 31, 2025 is 1.26 times principal amount outstanding
as at period end which has been calculated on the basis of valuation of underlying project as at March 31, 2025.

The NCDs are secured by way of an exclusive charge on:

(i) right, title and interest possessed by the Company in the earmarked units identified in the debenture deed
(''Deed'') (ii) the right, title and interest possessed by the Company in the Project Land admeasuring 13,069.38
square meters and/or the Project including but not limited to the development rights of the Company in
respect of the said project land including all development potential whether by way of Floor Area Ratio (FAR)/
Transferable Development Rights (TDR) or otherwise, along with the right of the Company on all present and
future Floor Space Index (FSI) arising from the Project Land together with all present and future buildings,
erections and constructions of every description which are standing erected or attached, during the term of
the Debentures (iii) hypothecation on all the receivables/ cash-flows arising from the earmarked units along
with the right of the Company in the Project Land.

b) The Debenture Allotment Committee of Board of Directors in their meeting held on December 22, 2023 allotted
11,090 Senior, Secured, Listed, Rated, Redeemable, Non-convertible debentures having face value of H1,00,000
each aggregating to H11,090 lakhs, on a private placement basis to Marubeni Corporation, Japan. The proceeds
from the issue were utilised towards the construction and development of the Project and for general corporate
purposes of the Company. Unless redeemed earlier, NCDs shall be for a period of 120 months. The NCDs shall be
redeemed at premium which is linked to collections made from sale of the earmarked units. These NCDs along
with above redemption premium are being redeemed as and when the revenues are collected by the company in
accordance with the debenture trust deed, as amended from time to time.

Further, the Debenture Allotment Committee of the Board of Directors in their meeting held on March 19,
2024, approved amendments in the Debenture Trust Deed ("DTD") and Placement Memorandum related
to computation of redemption premium on each redemption date, which is linked to collections made from
sale of earmarked units in excess of minimum selling price as defined in the DTD and corresponding pro-rata
reduction of the face value leading to partial redemption of debentures. As at, March 31, 2025, the Company has
redeemed debentures amounting to H1,696 lakhs towards the outstanding principal amount and has paid H217
lakhs towards the redemption premium payable on such debentures. The outstanding principal amount of these
debentures is H9,394 lakhs with a reduced face value of H84,708 per debenture. The security cover in respect of
these outstanding Non-Convertible Debentures as on March 31, 2025 is 1.25 times principal amount outstanding
as at period end which has been calculated on the basis of valuation of underlying project as at March 31, 2025.

The NCDs are secured by way of an exclusive charge on: (i) in respect of all the right, title and interest possessed
by the Company in the Earmarked Units in the Project Alora being developed at Village Kole Kalyan, Sunder Nagar,
Road No. 2, Vidyanagari, Kalina, Mumbai, including, but not limited to, all furniture, fittings and also all right to
use common areas and facilities attached thereto together with car parking spaces. (ii) First ranking exclusive
mortgage and charge in respect of all the development rights of the Company in respect of the Developer''s
Entitlement in terms of the Development Agreement together with all the right, title and interest of the Company
in Units earmarked for Company together with car parking spaces (save and except the Sold Units earmarked for
Company and allocated car parks for such Sold Units) and all movable assets in relation to units earmarked for
Company (save and except the Sold Units earmarked for Company and allocated car parks for such Sold Units)
(iii) First ranking exclusive charge by way of hypothecation over all the Investor Receivables / cash-flows arising
from the Earmarked Units, including, but not limited to, the Investor Receivables, and all rights, title, interest,
benefits, claims and demands whatsoever of the Company in, to or in respect of the said amounts.

c) The Debenture Allotment Committee of Board of Directors in their meeting held on September 20, 2024 allotted
13,377 Series 3 Fully, Secured, Listed, Rated, Redeemable, Non-Convertible Debentures having face value of

H1,00,000 each, on a private placement basis, aggregating H13,377 lakhs to Marubeni Corporation, Japan. The
proceeds from the issue were utilised towards the construction and development of the Project and for general
corporate purposes of the Company. Unless redeemed earlier, NCDs shall be for a period of 120 months. The NCDs
shall be redeemed at premium which is linked to collections made from sale of the earmarked units. These NCDs
along with above redemption premium are being redeemed as and when the revenues are collected by the company
in accordance with the debenture trust deed, as amended from time to time. As at, March 31, 2025, the Company
has redeemed debentures amounting to H1,064 lakhs towards the outstanding principal amount and has paid H276
lakhs towards the redemption premium payable on such debentures. The outstanding principal amount of these
debentures is H12,313 lakhs with a reduced face value of H92,046 per debenture. The security cover in respect of
these outstanding Non-Convertible Debentures as on March 31, 2025 is 1.05 time principal amount outstanding
as at period end which has been calculated on the basis of valuation of underlying project as at March 31, 2025.
The NCDs are secured by way of an exclusive charge on: (i) right, title and interest possessed by the Company
in the earmarked units identified in the debenture deed (''Deed'') (ii) the right, title and interest possessed by the
Company in the Project Land admeasuring 51,286 square meters and/or the Project including but not limited to
the development rights of the Company in respect of the said project land including all development potential
whether by way of Floor Area Ratio (FAR)/ Transferable Development Rights (TDR) or otherwise, along with the
right of the Company on all present and future Floor Space Index (FSI) arising from the Project Land together
with all present and future buildings, erections and constructions of every description which are standing erected
or attached, during the term of the Debentures (iii) hypothecation on all the receivables/ cash-flows arising from
the earmarked units along with the right of the Company in the Project Land attributable to the earmarked units
in the project.

d) The Debenture Allotment Committee of Board of Directors in their meeting held on April 10, 2023 allotted
14,000 Secured Unlisted Redeemable Non-Convertible Debentures (NCD) of face value H100,000 each, on
a private placement basis aggregating H14,000 lakhs to India Realty Excellence Fund IV. Unless redeemed
earlier, NCDs shall be for a period of 120 months carrying coupon of 0.001% per annum compounded annually.
The NCDs have been secured by : (i) exclusive first ranking security interest by way of registered mortgage on all
the rights, title, interest and benefit of the Company (including development rights) in respect of underlying project
along with the MHADA building being developed on the Project Land, (ii) hypothecation on all the receivables/
cash-flows arising from the Project. The proceeds from the issue of these NCDs have been utilised for purchase
of land of underlying project. The debentures shall be redeemed at a premium which is linked to the graded IRR
slabs agreed with the investor and corresponding revenues collected from the underlying project. These NCDs
along with above redemption premium will be redeemed as and when the revenues are collected by the company
in accordance with the debenture trust deed. As at, March 31, 2025, the Company has redeemed debentures
amounting to H2,421 lakhs towards the outstanding principal amount and has paid H4,089 lakhs towards the
redemption premium payable on such debentures and the outstanding principal amount of these debentures is
H11,579 lakhs with a reduced face value of H82,709 per debenture.

(ii) Terms of loans from bank, financial institutions and vehicle loans:

(a) Term loans of H2,534 lakhs (March 31, 2024: H3,204 lakhs) carrying interest rate of KMCLR increased by spread
of 3.10% are secured by way of (i) equitable mortgage on immovable property situated at Hinjewadi, Pune where
development rights are granted in favor of subsidiary of the Company and (ii) charge on receivables and book
debts pertaining to the project on aforesaid immovable properties. The outstanding amount (including current
maturities) is repayable in 15 equal monthly instalments from March 2025 (subject to escrow mechanism
repayments linked to collections of the project).

(b) Term loans of H527 lakhs (March 31 , 2024: H1,162 lakhs) carrying interest rate of 12M MCLR increased by
spread of 1.05% are secured by way of (i) 100% Credit Guarantee by NCGTC (ii) second charge on immovable
properties situated at Boat Club Road, Sangamwadi, Pune, office premise at Sangamwadi, Pune and immovable
properties at village - Jambhe, Tal-Mulshi, Pune. owned by the subsidiary of the Company (iii) second charge on
receivables of projects located at Pune : Bavdhan, Kiwale, Baner, Hinjewadi; Mumbai : Khar; Bangalore: Village-

Kannur, Bidarahalli Hobli.The outstanding amount (including current maturities) is repayable in 8 equal monthly
instalments from March 2025.

(c) Term loan of H1,053 lakhs (March 31, 2024: H1,366 lakhs) carrying interest rate of 1Y MCLR 1.15% are secured by
way of (i) 100% Credit Guarantee by NCGTC (ii) second charge on the immovable properties situated at Boat Club
Road, Sangamwadi, Pune and office premise at Sangamwadi, Pune, owned by the Company and immovable
properties at village - Jambhe, Tal-Mulshi, Pune. owned by the subsidiary of the Company (iii) second charge on
receivables of projects located at Pune : Bavdhan, Kiwale, Baner, Hinjewadi; Mumbai : Khar; Bangalore: Village-
Kannur, Bidarahalli Hobli. The outstanding amount (including current maturities) is repayable in 36 equal monthly
instalments from March 2025.

(d) Overdraft loans of H4,987 lakhs (March 31,2024: H12,344 lakhs) carrying interest rate of 6M MCLR increased
by spread of 0.35% are secured by way of (i) first charge on the immovable properties situated at Boat Club
Road, Sangamwadi, Pune and office premise at Sangamwadi, Pune, owned by the Company and immovable
properties at village - Jambhe, Tal-Mulshi, Pune. owned by the subsidiary of the Company (ii) first charge on
receivables of projects located at Pune : Bavdhan, Kiwale, Baner, Hinjewadi; Mumbai : Khar; Bangalore: Village-
Kannur, Bidarahalli Hobli. The outstanding amount (including current maturities) is repayable in equal quarterly
instalments from March 2025.

(e) Term loan of H2,993 lakhs (March 31, 2024: H3,500 lakhs) carrying interest rate of 11% p.a. monthly compounding
are secured by way of (i) equitable mortgage on immovable property situated at Baner, Pune owned by the
Company, and (ii) charge on escrow account pertaining to the receivables of project on aforesaid immovable
properties owned by the Company. The outstanding amount (including current maturities) is repayable in 8
specified quarterly tranches starting from September 30, 2025 (subject to escrow mechanism repayments
linked to collections of the project).

(f) Term loan of H Nil (March 31, 2024: H3,015 lakhs) carrying interest rate of BHFL-I-FRR HFCINS reduced by spread
of 6.35% are secured by way of (i) Exclusive first charge by way of registered mortgage of unsold units in the
project on immovable property situated at Dahisar, Mumbai which is redeveloped by the Company, and (ii)
Exclusive first charge on development rights pertaining to Project. (iii) charge on escrow account pertaining to
the receivables of project. The outstanding amount (including current maturities) as at March 31, 2024 is repaid
entirely during the year (subject to escrow mechanism repayments linked to collections of the project).

(g) Term loan of H2,938 lakhs (March 31, 2024: H Nil) carrying interest rate of BHFL-I-FRR HFCINS reduced by spread
of 8.30% are secured by way of (i) Exclusive first charge by way of registered mortgage of unsold units in the
project on immovable property situated at Kiwale, Pune which is developed by the Company, and (ii) Equitable
mortgage on immovable property situated at Kiwale, Pune owned by the Company, and (ii) Charge on escrow
account pertaining to the receivables of project on aforesaid immovable properties owned by the Company. The
outstanding amount (including current maturities) is repayable in 30 monthly instalments starting from June,
2027 (subject to escrow mechanism repayments linked to collections of the project).

(h) Term loan of H9,000 lakhs (March 31, 2024: H9,000 lakhs) S Dropline Overdraft Facility of H1,473 lakhs (March
31, 2024: 1,494.74 lakhs) carrying interest rate of 1 year MCLR are secured by way of (i) equitable mortgage
on immovable property situated at Viman Nagar, Pune, owned by the Company. and (ii) Charge on escrow
account pertaining to the receivables of project on aforesaid immovable properties owned by the Company. The
outstanding amount (including current maturities) is repayable in 24 monthly instalments starting from June
2025 (subject to escrow mechanism repayments linked to collections of the project).

(i) Overdraft Facility of H4,228 lakhs (March 31, 2024: Nil) carrying interest rate of 6M MCLR increased by spread of
0.35% are secured by way of (i)first charge on the immovable properties situated at Boat Club Road, Sangamwadi,
Pune and office premise at Sangamwadi, Pune, owned by the Company and immovable properties at village -
Jambhe, Tal-Mulshi, Pune. owned by the subsidiary of the Company (ii) first charge on receivables of projects
located at Pune : Bavdhan, Kiwale, Baner, Hinjewadi; Mumbai : Khar; Bangalore: Village-Kannur, Bidarahalli
Hobli. The total tenure for outstanding amount (including current maturities) is repayable in 7 equal quarterly
instalments from March 31, 2025.

(j) Overdraft Facility of H3,997 lakhs (March 31, 2024: Nil) carrying interest rate of 6M MCLR increased by spread of
0.35% are secured by way of (i)first charge on the immovable properties situated at Boat Club Road, Sangamwadi,
Pune and office premise at Sangamwadi, Pune, owned by the Company and immovable properties at village -
Jambhe, Tal-Mulshi, Pune. owned by the subsidiary of the Company (ii) first charge on receivables of projects
located at Pune : Bavdhan, Kiwale, Baner, Hinjewadi; Mumbai : Khar; Bangalore: Village-Kannur, Bidarahalli
Hobli. The total tenure for outstanding amount (including current maturities) is repayable in 8 equal quarterly
instalments from September, 2025.

(k) Vehicle loan of H4 lakhs (March 31, 2024: H15 lakhs) carrying interest rate of 8% are secured by charge on underlying
asset (vehicle).

(l) Vehicle loan of H19 lakhs (March 31, 2024: H50 lakhs) carrying interest rate of 7.86% are secured by charge on
underlying asset (vehicle).

(m) Vehicle loan of H23 lakhs (March 31, 2024: Nil) carrying interest rate of 8.26% are secured by charge on underlying
asset (vehicle).

(n) Vehicle loan of H27 lakhs (March 31, 2024: H Nil) carrying interest rate of 8.26% are secured by charge on underlying
asset (vehicle).

(o) Vehicle loan of H117 lakhs (March 31, 2024: H Nil) carrying interest rate of 9.20% are secured by charge on underlying
asset (vehicle)

(p) Vehicle loan of H193 lakhs (March 31, 2024: H Nil) carrying interest rate of 9.06% are secured by charge on
underlying asset (vehicle).

(q) Vehicle loan of H150 lakhs (March 31, 2024: H Nil) carrying interest rate of 8.70% are secured by charge on
underlying asset (vehicle).

Note - The above repayment schedule is on the basis of underlying contractual obligation to repay the respective
borrowing. However, classification between current and non-current for borrowings which are project specific is on the
basis of Company''s operating cycle of 2-4 years depending upon the expected completion of the underlying project.

(iv) Other Disclosure :

(a) The Company has not been declared willful defaulter by any bank or financial institution or Government or
any Government authority or other lender, in accordance with the guidelines on willful defaulters issued by
the Reserve Bank of India.

(b) The Company has not defaulted in repayment of any loans or it''s interest payable.

Performance obligation

The performance obligation of the Company in case of sale of residential plots and apartments and commercial office
space is satisfied once the project is completed and control is transferred to the customers. The customer makes the
payment for contracted price as per the instalment stipulated in the respective Buyer''s Agreement.

The performance obligation in case of sale of land is completed when the control is transferred to the buyer.

The performance obligation in case of project management fee is satisfied when the project management services for
underlying project are substantially complete. Revenue is recognized over time, as percentage to the actual capital
expenditure incurred on those projects.

The performance obligation in case of revenue from services is satisfied over a period of time as the construction of
underlying real estate projects to which such performance obligations relate progresses.

Notes:

(1) The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business,
including certain litigation for lands acquired by it for construction purposes. These cases are pending with
various courts and are scheduled for hearings. After considering the circumstances and legal evaluation thereon
the management believes that these cases will not adversely effect its financial statements.

(2) The Company is contesting tax demands which majorly represent demands arising on completion of assessment
proceedings under the Income-tax Act, 1961 and other indirect tax act. These matters are pending before
various appellate authorities and the management, including its tax advisors, believe that its position will likely
be upheld in the appellate process. No tax expense has been accrued in the financial statements for the above.
Further, amount paid under protest is H375 lakhs (March 31, 2024: H30 lakhs) which is not reduced from above
contingent liability.

Note 38 - Commitments and contingencies (Continued)

(3) The Company does not expect any reimbursement in respect of the above contingent liabilities and it is not
practicable to estimate the timing of the cash outflows, if any, in respect of aforesaid matters and it is not probable
that an outflow of resources will be required to settle the above obligations/claims.

(4) Interest and claims by customers/suppliers may be payable as and when the outcome of the related matters are
finally determined and hence not been included above. Management based on legal advice and historical trends,
believes that no material liability will devolve on the Company in respect of these matters.

Note 39 - Employee Benefits

The details of employee benefits as required under Ind AS 19 ''Employee Benefits'' is given below:

(A) Defined Contribution Plan:

The Company contributes to provident fund and employee state insurance scheme which are defined
contribution plans.

Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans to
Provident fund is H312 lakhs (Previous Year - H344 lakhs) and Employee State Insurance Scheme is H0.08 lakhs
(Previous Year - H0.35 lakhs).

(B) Defined benefit plan:

Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested
employees on retirement, death while in employment or termination of employment of an amount equivalent to
15 days salary for each completed year of service. Vesting occurs on completion of five years of service.

Disclosure as required under Ind AS 19 on "Employee Benefits" in respect of defined benefit plan is as under:

No other post-retirement benefits are provided to these employees.

In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined
benefit obligation were carried out as at March 31, 2025 by Ranadey Professional Services, Fellow of the Institute
of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and
past service cost, were measured using the projected unit credit method.

Expected contributions for next year H160 lakhs (March 31, 2024 - H150 lakhs)

Note 40 - Segment Information

The Company''s business activities which are primarily real estate development and related activities falls within a
single reportable segment as the management of the Company views the entire business activities as real estate
development. Accordingly, there are no additional disclosures to be furnished in accordance with the requirement of
Ind AS 108 - Operating Segments with respect to single reportable segment. Further, the operations of the Company
are domiciled in India and therefore geographical information are not applicable for reporting.

Note 41 - Leases

Where the Company is Lessee:

The Company''s leased assets primarily consists of lease for office space having lease term of 2 to 5 years. The
Company records the lease liability at the present value of the lease payments discounted at the incremental
borrowing rate and has measured right-of-use asset at an amount equal to lease liability.

Expenses for operating leases included in the Statement of Profit and Loss for the year is H120 lakhs (Previous Year
- H222 lakhs).

The fair value of cash and cash equivalents, other balances with banks, trade receivables Investment, other financial
assets, trade payables, borrowings and financial liabilities approximate their carrying amount largely due to the short
term nature of these instruments.

The fair values of non-current financial assets and non-current financial liabilities also approximate their carrying
values. The borrowings which are at floating rate of interest, fair values as at March 31, 2025 approximate their
carrying values. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to
the fair values.

(ii) Fair values hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into
three Levels of fair value hierarchy. The three Levels are defined based on the observability of significant inputs
to the measurement, as follows:

Level 1 - Quoted prices (Unadjusted) in active markets for identical assets S liabilities.

Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset S liability, either
directly (i.e. prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (Unobservable inputs).

Note 45 - Financial risk management

The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets
include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations. The
Company also holds investments in debt and equity instruments.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees
the management of these risks. The Company''s senior management advises on financial risks and the appropriate
financial risk governance framework for the Company. The senior management provides assurance to the Company''s
senior management that the Company''s financial risk activities are governed by appropriate policies and procedures
and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk
objectives. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The
Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below :

I) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price
risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimising the return.

Future specific market movements cannot be normally predicted with reasonable accuracy.
a) Currency risk:

The Company does not have material foreign currency transactions. The Company is not exposed to risk of
change in foreign currency.

c) Other price risk:

The Company is affected by the price volatility of certain commodities/real estate. Its operating activities
require the ongoing development of real estate. The Company''s management has developed and enacted
a risk management strategy regarding commodity/ real estate price risk and its mitigation. The Company
is subject to the price risk variables, which are expected to vary in line with the prevailing market conditions.

The Company is not exposed to equity price risks arising from equity investments. Equity investments are
held for strategic rather than trading purposes. The Company does not actively trade these investments. The
Company''s exposure to price risk arises from investments held and classified as FVTPL. To manage the price
risk arising from investments in mutual funds, the Company diversifies its portfolio of assets.

Trade and other receivables

Trade receivables of the Company comprises of receivables towards sale of properties and other receivables.

Receivables towards sale of property - The Company is not substantially exposed to credit risk as property is
delivered on payment of dues. As at March 31, 2025, the Company had 3 customers (March 31, 2024: 2 customers)
that owed the Company more than INR 100 lacs each and accounted for approximately 62% (March 31, 2024:
76%) of total trade receivables outstanding.

Other Receivables - Credit risk is managed as per the Company''s established policy, procedures and control
relating to customer credit risk management. Outstanding customer receivables are regularly monitored.
The impairment analysis is performed at each reporting date on an individual basis for major customers. The
maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Financial Instrument and cash deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated
banks and diversifying bank deposits. Other financial assets measured at amortized cost includes loans to
employees, security deposits and other credit risk related to other financial assets is managed by monitoring the
recoverability of such amounts continuously, while at the same time internal control system in place ensure the
amounts are within defined limits.

III) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of
financial assets and liabilities.

Note 51: Merger of Kolte-Patil Developers Limited ("Transferee Company") with PNP Agrotech
Private Limited and Tuscan Real Estate Private Limited ("Transferor Companies")

During the previous year, Hon''ble Regional Director, Western Region, Ministry of Corporate Affairs, Mumbai vide its
Order dated February 08, 2024, has approved the Scheme of Amalgamation involving merger of wholly-owned
subsidiary companies, namely PNP Agrotech Private Limited and Tuscan Real Estate Private Limited ("Transferor
Companies") with Kolte-Patil Developers Limited ("Transferee Company") as per Section 233 of the Companies Act,
2013 read with Rule 25 of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 with the
appointed date as April 01, 2023.

The Scheme has been given effect from April 01, 2023, i.e. the appointed date in accordance with Ministry of Corporate
Affairs General Circular 9/2019 dated August 21, 2019 which is not in compliance with Ind AS.

The Company has accounted for the amalgamation as per the principles laid down in ''Appendix C'' of Ind AS 103 -
Business Combination of entities under common control. The company recorded the assets, liabilities and reserves
of transferor company vested in it pursuant to the scheme at their carrying amounts. The intercompany balances
between the transferor company and the transferee company including the investment of the transferee company
and the share capital of transferor company stood cancelled.

Note 52 - Share Based Payment:

Employee stock option scheme ("ESOS 2021")

The Company has instituted ESOS 2021 for eligible employees of the Company. Each option carries with it the right
to purchase one equity share of the Company at the exercise price determined by the Nomination and Remuneration
Committee at the time of grant. The employee stock option plan is designed to attract, reward, motivate and retain
its employees for high levels of individual performance and for unusual efforts to improve the financial performance

of the Company, which will ultimately contribute to the success of the Company. The ESOP Scheme is administered
by the Nomination and Remuneration committee. Participation in the plan is at the Nomination and Remuneration
committee''s discretion and no individual has a contractual right to participate in the plan or to receive any
guaranteed benefits.

During the year, the Nomination and Remuneration Committee of the Company has approved grant with related
vesting conditions. Vesting of the options would be subject to continuous employment with the Company [i.e. passage
of time ("Part A")] or with company achieving certain performance milestones ("Part B") within vesting period. The
ESOP schemes have service condition and achievement of performance condition. The vesting pattern of options
under said ESOP scheme has been provided below.

Note: The Company operates in real estate business and is governed by IND AS 115 for recording the revenue as per
completion contract method. Accordingly, above mentioned ratios may not be strictly comparable.

* Earnings available for debt service = Profit before taxes finance cost (net) depreciation and amortization expense impairment of investment
provision for doubtful debts /advances

** Debt service = Finance cost charged to PSL and finance cost capitalised lease payments principal repayments

^A Investment in equity shares, mutual funds, preference shares etc has not been considered since, the corresponding income pertaining to that is not
forming part of income.

Reason for Variance:

1 Variance is on account of higher increase in earnings against slight increase in debt repayment in current year as
compared to previous year.

2 Variance is mainly on account of profit in current year against loss in previous year.

3 Variance is on account of higher increase in cost of goods sold against slight increase in average inventory during
the year.

4 Variance is mainly on account of increase in revenue in current year compared to previous year.

5 Variance is mainly on account of increase in revenue during the year and negative working capital in current year
compared to previous year.

6 Variance is mainly on account of increase in earnings in current year as compared to previous year.

Note 54 - Prior Period Error

As part of reconciliation exercise as of year end, the Company identified old customer advances of H2,533 lakhs
for which the obligation to deliver constructed units had been completed in prior years and hence the same have
been considered as prior period income. Accordingly, in accordance with Ind AS 8 - "Accounting Policies, Changes
in Accounting Estimates and Errors" the management has correctly stated the position as at March 31, 2025 by
adjusting the advance received amount against equity (net of tax) and also restated the balance sheets as at March
31, 2024 and April 01, 2023.

(ii) The Company has used accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded
in the software except that the audit trail feature is not enabled for certain changes made to data when using
privileged/administrative access rights. Additionally, the audit trail of previous year has been preserved as per
the statutory requirements for record retention to the extent it was enabled and recorded in previous year.

(iii) The Board of Directors had approved the draft scheme of amalgamation of Kolte-Patil Integrated Townships
Limited (a wholly owned subsidiary of the Company) with the Company under Section 233 of the Companies
Act 2013 read with Rule 25 of the Companies (Compromises. Arrangements and Amalgamations) Rules, 2015.
However, the application for scheme of amalgamation filed by the Company to the office of the Hon''ble Regional
Director, Western Region, Ministry of Corporate Affairs, Mumbai ("RD") on November 30, 2024 has not been
approved. Subsequently, the Board of Directors of the Company at its meeting dated February 11, 2025 have
approved the draft scheme of amalgamation of Kolte-Patil Integrated Townships Limited with the Company
under Section 230-232 of the Companies Act, 2013 along with other applicable provisions and the rules subject
to the requisite approvals under the Act and sanction of the scheme by the National Company Law Tribunal,
Mumbai Bench ("NCLT") or any other competent authority. The appointed date of the said scheme is April 01,
2024 or such other date as may be approved by NCLT or any other competent authority. Pending approval from
NCLT, the merger has not been given effect in the standalone financial statement.

(iv) The Board of Directors at its meeting held on March 13, 2025 had considered and recommended/approved issue
and offer by way of a preferential allotment on a private placement basis ("Preferential Issue") an aggregate of
1,26,75,685 (One Crore Twenty Six Lakhs Seventy Five Thousand Six Hundred Eighty-Five) equity shares of the
Company ("Subscription Shares"), having face value of INR 10/- (Indian Rupees Ten) each, at a price of INR 329/-
(Indian Rupees Three Hundred Twenty Nine only) per Subscription Share, and aggregating to INR 417,03,00,365/-
(Indian Rupees Four Hundred Seventeen Crores Three Lakhs Three Hundred Sixty Five only), to BREP Asia III India
Holding Co VII Pte. Ltd. ("Acquirer"), for cash consideration, in accordance with the provisions of Chapter V of

the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018,
other applicable laws and on the terms and conditions as set out in the Share Subscription Agreement inter-alia
between the Company and the Acquirer in relation to the Preferential Issue, and subject to the approval from
shareholders of the Company and receipt of approvals from applicable statutory authorities.

Subsequently, the Shareholders of the Company at the Extra-Ordinary General Meeting held on April 10, 2025
approved the Preferential Issue with requisite majority. The proposed preferential issue is, however, subject to
receipt of approvals from applicable statutory authorities including but not limited to the Competition Commission
of India and the Stock Exchanges.

Also, on March 13, 2025, the Company had entered into:

(i) Share Subscription Agreement ("SSA") between the Company, Acquirer and Mr. Rajesh Anirudha Patil,
Mr. Naresh Anirudha Patil, Mr. Milind Digambar Kolte, Mr. Yashvardhan Rajesh Patil and Mr. Harshavardhan
Naresh Patil in relation to the Preferential Issue of the Subscription Shares to the Acquirer on the terms and
conditions contained therein;

(ii) Share Purchase Agreement ("SPA") between the Acquirer, the Company Mr. Rajesh Anirudha Patil, Mr. Naresh
Anirudha Patil, Mr. Milind Digambar Kolte, Ms. Sunita Rajesh Patil, Ms. Vandana Naresh Patil, Ms. Sunita
Milind Kolte, Mr. Yashvardhan Rajesh Patil, Ms. Ankita Rajesh Patil, Mr. Harshavardhan Naresh Patil, and
Ms. Priyanjali Naresh Patil ("Sellers") for the Acquirer to acquire from the Sellers equity shares constituting
25.7% (twenty five point seven percent) of the paid-up post-proposed preferential issue equity share capital
of the Company on the terms and conditions contained therein. If, for any reason, the preferential issue does
not occur, then the number of shares to be acquired under the SPA will increase proportionately i.e. the
Acquirer will purchase equity shares constituting ~40% of the share capital of the Company from the Sellers
under the on terms and conditions contained in the SPA; and

(iii) Shareholders'' Agreement between the Acquirer, the Company and the Sellers ("Existing Promoter Group") of
the Company to record the terms and conditions governing the inter-se rights and obligations of the Acquirer
and the Existing Promoters and Promoter Group as shareholders of the Company including in relation to
the management and governance of the Company. The Acquirer will acquire joint control along with the
Promoters over the Company.

Further, as result of: (a) the Preferential Issue of the Subscription Shares to the Acquirer as per the terms of
the SSA; and (b) the acquisition of equity shares of the Company by the Acquirer from the Sellers as per the
terms of the SPA, the Acquirer was obligated to make an open offer for 26% (twenty six percent) shares of
the Company in accordance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011,
as amended from time to time.

Note 56 - Other Statutory Information for the year ended March 31, 2025 and March 31, 2024

(i) No proceedings have been initiated or are pending against the Company for holding any Benami property under
the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) There are no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iii) Company does not trade or has purchased crypto currencies during the year.

(iv) The Company does not have any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961).

(v) There is no revaluation of Property, plant and equipment or right to use assets.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries); or

(b) provide

---

Mar 31, 2024

Q. Provisions and Contingent Liabilities:

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses it in the standalone financial statements, unless the possibility of an outflow of resources embodying economic benefits is remote.

If the Company has a contract that is onerous, the present obligation under the contract is recognised and measured as a provision. However, before a separate provision for an onerous contract is established, the Company recognises any impairment loss that has occurred on assets dedicated to that contract.

R. Operating Cycle:

The normal operating cycle in respect of operation relating to under construction real estate project depends on signing of agreement, size of the project, phasing of the project, type of development, project complexities, approvals needed and realisation of project into cash and cash equivalents which range from 2 to 4 years. Accordingly, project related assets and liabilities have been classified into current and non-current based on operating cycle of respective projects. All other assets and liabilities have been classified into current and noncurrent based on a period of twelve months.

Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within operating cycle after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least within operating after the reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within operating cycle after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least within operating cycle after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

S. Financial Instruments:

Initial recognition

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and liabilities are initially measured at fair value. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section (g) Revenue from contracts with customers. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.

Effective interest method:

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Financial assets at amortised cost:

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income:

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through profit and loss:

Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in statement of profit and loss.

Debt instruments at amortized cost

A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade and other receivables.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognized in the profit or loss.

Financial liabilities at amortized cost

Financial liabilities are subsequently carried at amortized cost using the effective interest (''EIR'') method.

Interest-bearing loans and borrowings are subsequently measured at amortized cost using EIR method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

De-recognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized when the obligation specified in the contract is discharged or cancelled or expires.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial instruments.

Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses following hierarchy and assumptions that are based on market conditions and risks existing at each reporting date.

Fair value hierarchy:

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

2A. NEW AND AMENDED STANDARDS

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31, 2023 to amend the following Ind AS which are effective for annual periods beginning on or after April 01, 2023. The Company applied for the first-time these amendment:

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously recognised for deferred tax on leases on a net basis. As a result of these amendments, the Company has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of paragraph 74 of Ind AS 12, there is no impact in the balance sheet. There was also no impact on the opening retained earnings as at April 01, 2022.

Apart from these, consequential amendments and editorials have been made to other Ind AS like Ind AS 101, Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.

Nature and purpose of other reserves:

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Capital Redemption Reserve

The same has been created in accordance with provision of the Companies Act, 2013 with respect to buy back of equity shares from the market in earlier years.

General Reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

Capital Reserve on Merger

Capital Reserve created on account of amalgamation.

Retained Earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

(i) Terms of Non Convertible Debentures (NCD) issued during the year :

a) The Debenture Allotment Committee of Board of Directors in their meeting held on April 10, 2023 has allotted 14,000 Secured Unlisted Redeemable Non-Convertible Debentures (NCD) of face value H100.000 each, on a private placement basis aggregating H14,000 lakhs to India Realty Excellence Fund IV. Unless redeemed earlier, NCDs shall be for a period of 120 months carrying coupon of 0.001% per annum compounded annually.

The NCDs have been secured by : (i) exclusive first ranking security interest by way of registered mortgage on all the rights, title, interest and benefit of the Company (including development rights) in respect of underlying project along with the MHADA building being developed on the Project Land, (ii) hypothecation on all the receivables/ cash-flows arising from the Project. The proceeds from the issue of these NCDs have been utilised for purchase of land of underlying project. The debentures shall be redeemed at a premium which is linked to the graded IRR slabs agreed with the investor and corresponding revenues collected from the underlying project. These NCDs along with above redemption premium will be redeemed as and when the revenues are collected by the company in accordance with the debenture trust deed.

b) The Debenture Allotment Committee of Board of Directors in their meeting held on April 17, 2023 has allotted 20,650 Senior, Secured, Listed, Rated, Redeemable, Zero coupon NCD of face value H100,000 each, on a private placement basis, aggregating H20,650 lakhs to Marubeni Corporation, Japan. The proceeds from the issue were utilised for general corporate purposes of the Company and towards the construction and development of the Project. Unless redeemed earlier, NCDs shall be for a period of 120 months. The NCDs shall be redeemed at premium which is linked to collections made from sale of the earmarked units. These NCDs along with above redemption premium are being redeemed as and when the revenues are collected by the company in accordance with the debenture trust deed, as amended from time to time.

Further, the Debenture Allotment Committee of the Board of Directors in their meeting held on March 19, 2024, approved amendments in the Debenture Trust Deed ("DTD") and Placement Memorandum related to computation of redemption premium on each redemption date, which is linked to collections made from sale of earmarked units in excess of minimum selling price as defined in the DTD and corresponding pro-rata reduction of the face value leading to partial redemption of debentures. Consequently, on March 30, 2024 (the first redemption date), the Company has redeemed debentures amounting to H391.94 lakhs towards the outstanding principal amount and has paid H172 Lakhs towards the redemption premium payable on such debentures. As at March 31, 2024, the outstanding principal amount of these debentures is H20,258.06 Lakhs with a reduced face value of H98,102 per debenture.

The NCDs are secured by way of an exclusive charge on:

(i) right, title and interest possessed by the Company in the earmarked units identified in the debenture deed (''Deed'') (ii) the right, title and interest possessed by the Company in the Project Land admeasuring 13,069.38 square meters and/or the Project including but not limited to the development rights of the Company in respect of the said project land including all development potential whether by way of Floor Area Ratio (FAR)/ Transferable Development Rights (TDR) or otherwise, along with the right of the Company on all present and future Floor Space Index (FSI) arising from the Project Land together with all present and future buildings, erections and constructions of every description which are standing erected or attached, during the term of the Debentures (iii) hypothecation on all the receivables/ cash-flows arising from the earmarked units along with the right of the Company in the Project Land attributable to the earmarked units in the project. The security cover in respect of these outstanding Non-Convertible Debentures as on March 31, 2024 is 1.05 times principal amount outstanding as at period end which has been calculated on the basis of valuation of underlying project as at January 31, 2023.

c) The Debenture Allotment Committee of Board of Directors in their meeting held on December 22, 2023 has allotted 11,090 Senior, Secured, Listed, Rated, Redeemable, Non-convertible debentures having face value of H1,00,000 each aggregating to H11,090 lakhs, on a private placement basis to Marubeni Corporation, Japan. Unless redeemed earlier, NCDs shall be for a period of 120 months. The unutilised proceeds of H7,669 lakhs from the issue have been temporarily invested in liquid mutual funds as at March 31, 2024. These proceeds will be utilised for general corporate purposes of the Company and towards the construction and development of the Project. The NCDs shall be redeemed at premium which is linked to collections made from sale of the earmarked units. These NCDs along with above redemption premium will be redeemed as and when the revenues are collected by the group in accordance with the debenture trust deed, as amended from time to time.

Further, the Debenture Allotment Committee of the Board of Directors in their meeting held on March 19, 2024, approved amendments in the Debenture Trust Deed ("DTD") and Placement Memorandum related to computation of redemption premium on each redemption date, which is linked to collections made from sale of earmarked units in excess of minimum selling price as defined in the DTD and corresponding pro-rata reduction of the face value leading to partial redemption of debentures. Consequently, on March 30, 2024 (the first redemption date), the Company has redeemed debentures amounting to H253.85 lakhs towards the outstanding principal amount and has paid H33.69 Lakhs towards the redemption premium payable on such debentures. As at March 31, 2024, the outstanding principal amount of these debentures is H10,836.15 Lakhs with a reduced face value of H97,711 per debenture.

The NCDs are secured by way of an exclusive charge on: (i) in respect of all the right, title and interest possessed by the Company in the Earmarked Units in the Project Alora being developed at Village Kole Kalyan, Sunder Nagar, Road No. 2, Vidyanagari, Kalina, Mumbai, including, but not limited to, all furniture, fittings and also all right to use common areas and facilities attached thereto together with car parking spaces. (ii) First ranking exclusive mortgage and charge in respect of all the development rights of the Company in respect of the Developer''s Entitlement in terms of the Development Agreement together with all the right, title and interest of the Company in Units earmarked for Company together with car parking spaces (save and except the Sold Units earmarked for Company and allocated car parks for such Sold Units) and all movable assets in relation to units earmarked for Company (save and except the Sold Units earmarked for Company and allocated car parks for such Sold Units) (iii)

First ranking exclusive charge by way of hypothecation over all the Investor Receivables / cash-flows arising from the Earmarked Units, including, but not limited to, the Investor Receivables, and all rights, title, interest, benefits, claims and demands whatsoever of the Company in, to or in respect of the said amounts. The security cover in respect of these outstanding Non-Convertible Debentures as on March 31, 2024 is 1.03 times principal amount outstanding as at period end which has been calculated on the basis of valuation of underlying project as at September 30, 2023.

(ii) Terms of loans from bank, financial institutions and vehicle loans:

(a) Term loans of H3,204 lakhs (March 31, 2023: H4,998 lakhs) carrying interest rate of KMCLR increased by spread of 3.10% are secured by way of (i) equitable mortgage on immovable property situated at Hinjewadi, Pune owned by the promoters of the Company where development rights are granted in favor of subsidiary of the Company and (ii) Charge on receivables and book debts pertaining to the project on aforesaid immovable properties. The outstanding amount (including current maturities) is repayable in 24 equal monthly instalments starting from June 2024 (subject to escrow mechanism repayments linked to collections of the project).

(b) Term loans of H1,162 lakhs (March 31,2023: H1,859 lakhs) carrying interest rate of 12M MCLR increased by spread of 1.05% are secured by way of (i) second charge on immovable properties situated at Boat Club Road, Sangamwadi, Pune, office premise at Sangamwadi, Pune and immovable properties at Village-Pimple Nilakh, Pune owned by group entities (ii) Charge on receivables pertaining to the project on aforesaid immovable properties.The outstanding amount (including current maturities) is repayable in 20 equal monthly instalments from March 2024.

(c) Term loan of H1,366 lakhs (March 31, 2023: H1,395 lakhs) carrying interest rate of 1Y MCLR 1.15% are secured by way of (i) 100% Credit Guarantee by NCGTC (ii) second charge on the immovable properties situated at Boat Club Road, Sangamwadi, Pune and office premise at Sangamwadi, Pune, owned by the Company and immovable properties at village - Jambhe, Tal-Mulshi, Pune. owned by the subsidiary of the Company

(iii) second charge on receivables of projects located at Bavdhan,Pune; Dahisar, Mumbai; Village-Kannur, Bidarahalli Hobli, Bangalore; Kiwale, Pune; Hinjewadi, Mumbai. The outstanding amount (including current maturities) is repayable in 48 monthly instalment starting from March 2024.

(d) Overdraft loans of H12,344 lakhs (March 31,2023: H8,407 lakhs) carrying interest rate of 6M MCLR increased by spread of 0.35% are secured by way of (i) exclusive charge on the immovable properties situated at Boat Club Road, Sangamwadi, Pune and office premise at Sangamwadi, Pune, owned by the Company and immovable properties at village - Jambhe, Tal-Mulshi, Pune. owned by the subsidiary of the Company (ii) exclusive hypothecation charge on receivables of projects at Bavdhan,Pune; Dahisar, Mumbai; Village-Kannur, Bidarahalli Hobli, Bangalore; Kiwale, Pune; Hinjewadi, Mumbai. The outstanding amount (including current maturities) is repayable in equal quarterly instalments from March 2024.

(e) Term loan of H3,500 lakhs (March 31, 2023: Nil) carrying interest rate of 11% p.a. monthly compounding are secured by way of (i) equitable mortgage on immovable property situated at Baner, Pune owned by the Company, and (ii) Charge on escrow account pertaining to the receivables of project on aforesaid immovable properties owned by the Company. The outstanding amount (including current maturities) is repayable in 8 quarterly tranches as specified in sanction letter starting from September 30, 2025 (subject to escrow mechanism repayments linked to collections of the project).

(f) Term loan of H3,015 lakhs (March 31, 2023: H3,486 lakhs) carrying interest rate of BHFL-I-FRR HFCINS reduced by spread of 6.35% are secured by way of (i) Exclusive first charge by way of registered mortgage of unsold units in the project on immovable property situated at Dahisar, Mumbai which is redeveloped by the Company, and (ii) Exclusive first charge on development rights pertaining to Project. (iii) Charge on escrow account pertaining to the receivables of project. The outstanding amount (including current maturities) is repayable in 36 monthly instalment starting from September 2024 (subject to escrow mechanism repayments linked to collections of the project).

(g) Term loan of H9,000 lakhs (March 31, 2023: H9,000 lakhs) S Dropline Overdraft Facility of H1,494.74 lakhs (March 31, 2023: 1,200 lakhs) carrying interest rate of 1 year MCLR increased by spread of 1.45% are secured by way of (i) equitable mortgage on immovable property situated at Viman Nagar, Pune, owned by the Company. and (ii) Charge on escrow account pertaining to the receivables of project on aforesaid immovable properties owned

(iv) Other Disclosure :

(a) The Company has not been declared wilful defaulter by any bank or financial institution or Government or any Government authority or other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(b) The Company has not defaulted in repayment of any loans or it''s interest payable.

(c) The term loans of H3,500 lakhs raised towards the end of the year were unutilised as at March 31, 2024 and such funds were temporarily parked in bank account. Also out of issue of non-convertible debentures (NCDs) amounting to H11,090 lakhs, amount of H7,669 lakhs was unutilised as at March 31, 2024 and have been temporarily invested in liquid mutual funds as at March 31, 2024.

(d) The Company has availed working capital facilities from the banks on the basis of security of current assets. The Company is not required to file quarterly returns or statements with the banks or financial institutions for these working capital limits.

Notes:

(1) The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business, including certain litigation for lands acquired by it for construction purposes. These cases are pending with various courts and are scheduled for hearings. After considering the circumstances and legal evaluation thereon the management believes that these cases will not adversely effect its financial statements.

(2) The Company is contesting tax demands which majorly represent demands arising on completion of assessment proceedings under the Income-tax Act, 1961 and other indirect tax act. These matters are pending before various appellate authorities and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the above. Further, amount paid under protest is H29.91 lakhs (March 31, 2023: H29.91 lakhs) which is not reduced from above contingent liability.

(3) The Company does not expect any reimbursement in respect of the above contingent liabilities and it is not practicable to estimate the timing of the cash outflows, if any, in respect of aforesaid matters and it is not probable that an outflow of resources will be required to settle the above obligations/claims.

Note 39 - Employee Benefits

The details of employee benefits as required under Ind AS 19 ''Employee Benefits'' is given below:

(A) Defined Contribution Plan:

The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.

Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans to Provident fund is H344 lakhs (Previous Year - H264 lakhs) and Employee State Insurance Scheme is H1 lakhs (Previous Year - H2 lakhs).

(B) Defined benefit plan:

Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.

Note 45 - Financial risk management

The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations. The Company also holds investments in debt and equity instruments.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management advises on financial risks and the appropriate financial risk governance framework for the Company. The senior management provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below :

I) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Future specific market movements cannot be normally predicted with reasonable accuracy.

a) Currency risk:

The Company does not have material foreign currency transactions. The Company is not exposed to risk of change in foreign currency.

b) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company''s interest rate exposure is mainly related to debt obligations. The Company obtains debt to manage the liquidity and fund requirements for its day to day operations.

c) Other price risk:

The Company is affected by the price volatility of certain commodities/real estate. Its operating activities require the ongoing development of real estate. The Company''s management has developed and enacted a risk management strategy regarding commodity/ real estate price risk and its mitigation. The Company is subject to the price risk variables, which are expected to vary in line with the prevailing market conditions.

The Company is not exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments. The Company''s exposure to price risk arises from investments held and classified as FVTPL. To manage the price risk arising from investments in mutual funds, the Company diversifies its portfolio of assets.

II) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including refundable joint development deposits, security deposits and other financial instruments.

Trade and other receivables

Trade receivables of the Company comprises of receivables towards sale of properties and other receivables.

Receivables towards sale of property - The Company is not substantially exposed to credit risk as property is delivered on payment of dues. However the Company make provision for expected credit loss where any property developed by the Company is delayed due to litigation as further collection from customers is expected to be realised only on final outcome of such litigation.

Other Receivables - Credit risk is managed as per the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Financial Instrument and cash deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortized cost includes loans to employees, security deposits and other credit risk related to other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

III) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities.

Accounting treatment in the books of transferee company on the appointed date

Upon the scheme coming into effect, from the appointed date, the transferee company has accounted for the amalgamation of the transferor company with the transferee company in accordance with the applicable Indian Accounting Standard (Ind AS) prescribed under section 133 of the Act and relevant clarifications issued by the Ind AS Transition Facilitation Group (ITFG) of the Institute of Chartered Accountants of India, if any and other generally accepted accounting principles in India as follows:

1. As on the appointed date, the assets and liabilities of the of the transferor company was transferred to and vested in the transferee company pursuant to the scheme and recorded by the transferee company at their relative fair value. Goodwill was not be recognized.

2. The transferee company holds 100% of the equity shares of transferor company. Pursuant to the amalgamation of transferor company with transferee company on the appointed date, equity shares held by transferee company in transferor company was cancelled and extinguished.

3. Inter company balances [including any obligations/guarantees or any other instrument or arrangement which may give rise to a liability, including contingent liability in whatever form], If any, due or which may at any time in future become due between the transferor company with the transferee company stand discharged.

(v) There is no revaluation of Property, plant and equipment or right to use assets.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries); or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries); or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) The Company has complied with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 from the date of their implementation.

As per our report of even date

For S R B C S CO LLP For and on behalf of the Board of Directors of

Chartered Accountants Kolte-Patil Developers Limited

ICAI Firm registration number:

324982E/E300003

per Paul Alvares Rajesh Patil Yashvardhan Patil

Partner Chairman S Managing Director Joint Managing Director

Membership Number: 105754 (DIN-00381866) (DIN-06898270)

Place: Pune Place: Dubai Place: Pune

Date: May 24, 2024

Rahul Talele Khiroda Jena Vinod Patil

Chief Executive Officer Chief Financial Officer Company Secretary

Place: Pune Place: Pune Place: Pune

Date: May 24, 2024

---

Mar 31, 2023

Note 13.1- Based on projections and estimates by the Company of the expected revenues and costs to completion, provision for losses to completion and/ or write off of costs carried to inventory are made on projects where the expected revenues are lower than the estimated costs to completion. In the opinion of the management, the net realisable value of the construction work in progress will not be lower than the costs so included therein. The amount of inventories recognised as an expense of H65,231 lakhs for the year ended March 31, 2023.(March 31, 2022: H27,230 lakhs) include March 31, 2023 : H649 lakhs (March 31, 2022: NIL) in respect of write down of inventory to net realisable value.

** The above movement includes expected credit loss allowance for current and non current trade receivables.

The concentration of credit risk is limited due to the fact that the customer base is large.

The Company determines the allowance for expected credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company has specifically evaluated the potential impact with respect to customers which could have an immediate impact and the rest which could have an impact with expected delays. Basis this assessment, the allowance for doubtful trade receivables as at March 31, 2023 is considered adequate.

The Company is not having any trade receivables representing more than 5% of total trade receivables.

Note 20A: Terms, rights & restrictions attached to equity shares

The Company has only one class of equity shares having a face value of H10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

(i) Term Loan from Banks are secured by :

Mortgage of all rights, interest and title of the borrower, mortgage of current & future receivables in respect of selected projects. Loan will be repayable in 10-30 equal monthly/quarterly instalments starting from the end of principal moratorium.

Rate of Interest : The Rate of Loans are between 9 % to 12% (Previous Year - 8% to 13%)

(ii) Term Loan from financial institutions :

Secured by:

1) An exclusive charge by way of registered mortgage on all the rights, interest and title of borrower, in the respective project.

2) An exclusive charge on respective project land, all buildings, Structures and residential property.

3) Lien on unsold units of the project.

4) An exclusive charge by way of hypothecation of scheduled current & future receivables of the respective projects.

Repayment Terms : Loan will be repayable in 10-48 equal monthly instalments starting from the end of principal moratorium.

Rate of Interest: 9 to 12% (Previous Year - 8% to 13%)

(iii) Vehicle Loans :

Rate of Interest : The Rate of Loans are between 8 % to 10% (Previous Year - 8% to 10%).

(iv) Other Disclosure :

(a) Since Company is not declared as wilful defaulter by any bank or financial institution or any other lender, the required disclosure as per Schedule III in this regards has not been given.

(b) Bank loans contain certain debt covenants relating to limitation on indebtedness, debt-equity ratio, net borrowings to EBITDA ratio and debt service coverage ratio. The Company has satisfied all debt covenants prescribed in the terms of bank loan.

(c) The Company has not defaulted in repayment of any loans or it''s interest payable.

(d) Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall :

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; hence, the disclosure in this respect is not applicable

(Refer section XVI of Schedule III notification dated 24 March 2021)

(e) The Company has been regular filing its quarterly returns or statement of current assets with banks and same are in agreement with books of account.

Note 29 B - Sale of properties/flats (residential and commercial)

(1) Contract Balances

(a) Amounts received before the related performance obligation is satisfied are included in the balance sheet (Contract liability) as "Advances received from Customers" in note no. 28 - Other Current Liabilities. Amounts billed but not yet paid by the customer after giving possession/ deemed possession are included in the balance sheet under trade receivables in note no. 8 & note no. 15

(b) There were no significant changes in the composition of the contract liabilities and Trade receivable during the reporting period other than on account of periodic invoicing and revenue recognition.

(c) Amounts previously recorded as contract liabilities increased due to further milestone based invoices raised during the year and decreased due to revenue recognised during the year on completion of the construction.

(d) Amounts previously recorded as Trade receivables increased due to invoices raised during the year on account of possession/ deemed possession given to customers and decreased due to collections during the year.

(e) There are no contract assets outstanding at the end of the year.

*In the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof.

**As at March 31, 2023, Contingent liability majorly represent demands arising on completion of assessment proceedings under the Income-tax Act, 1961 and other indirect tax act.

These claims are on account of various issues of disallowances, or addition in liability by tax liabilities.

These matters are pending before various appellate authorities and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company''s financial position and results of operations.

Further, amount paid under protest is H29.91 lakhs (FY21-22: H29.91 lakhs) which is not reduced from above contingent liability.

***The Company does not expect any outflow of resources in respect of the Guarantees issued.

Note 38 - Employee Benefits

The details of employee benefits as required under Ind AS 19 ''Employee Benefits'' is given below:

(A) Defined Contribution Plan:

The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.

Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans to Provident fund is H319 lakhs (Previous Year - H264 lakhs) and Employee State Insurance Scheme is H1 lakhs (Previous Year - H2 lakhs).

(B) Defined benefit plan:

Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.

a. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of the liabilities.

b. Expected rate of return of plan assets: This is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of obligations.

c. Salary escalation rate: The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

d. Withdrawal rate: It is the expected employee turnover rate and should be based on the Company''s past attrition experience and future withdrawal expectations.

The sensitivity results above determine their individual impact on plan''s end of year defined benefit obligation. In reality, the plan is subject to multiple external experience items which may move the defined benefit obligation in similar or opposite directions, while the plan''s sensitivity to such changes can vary over time.

In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2023 by Ranadey Professional Services, Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Expected contributions for next year H30 lakhs (March 31, 2022 - H15 lakhs)

Note 39 - Segment Information

Information reported to the chief operating decision maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods and services delivered or provided. The Company is engaged in development of real estate property, operating in India, which in the context of Indian Accounting Standard 108 ''Segment Information'' represents single reportable business segment.

Geographical Information

The Group operates in one reportable geographical segment i.e. "Within India". Hence, no separate geographical segment wise disclosure is applicable as per the requirements of Ind AS 108 Operating Segments.

Note 40 - Leases

Where the Company is Lessee:

The Company has entered into operating lease arrangements for certain facilities and office premises having term or remaining life as at April 1, 2022 for less than one year. Expenses for operating leases included in the Statement of Profit and Loss for the year is H186 lakhs [Previous Year - H211 lakhs].

Where the Company is Lessor:

The Company has entered into operating lease arrangements for certain surplus facilities. The leases are cancellable.

Rental income from operating leases included in the statement of Profit and Loss for the year is H96 lakhs [Previous Year - H112 lakhs].

Remeasurement of lease Liability:

The Company has recognised the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. The amount that has been recognised as gains on remeasurement of lease liabilities in statement of profit and loss is H14 lakhs [Previous Year - H63.24 lakhs].

Note 42 - Financial Instruments

I) Capital Management

The Company''s capital management objectives are:

- to ensure the Company''s ability to continue as a going concern.

- to maximize the return to stakeholders through the optimization of the debt and equity balance.

The Company monitors capital on the basis of the carrying amount of equity as presented on the face of the statement of financial position. The Company sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

* The fair value of cash and cash equivalents, other balances with banks, trade receivables, Investment, other financial assets, trade payables, borrowings and financial liabilities approximate their carrying amount largely due to the short term nature of these instruments.

II) Financial risk management objectives

In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

III) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Future specific market movements cannot be normally predicted with reasonable accuracy.

Currency risk: The Company does not have material foreign currency transactions. The Company is not exposed to risk of change in foreign currency.

Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to the risk of changes in market interest rates as the Company does not have any long-term debt obligations with floating interest rates.

Other price risk:

The Company is not exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

IV) Interest risk management

The Company''s interest rate exposure is mainly related to debt obligations. The Company obtains debt to manage the liquidity and fund requirements for its day to day operations. The rate of interest is fixed and thus there is no risk of interest rates fluctuating.

V) Credit risk management

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

VI) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

VII) Fair value disclosures

Level 1 - Quoted prices (Unadjusted) in active markets for identical assets & liabilities.

Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset & liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (Unobservable inputs).

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis

# During the year FY 21-22 Kolte -Patil Developers Limited has recognised impairement loss of H461 Lakhs for investment in subsidaiary Kolte Patil Properties Private Limited. Since provision has been booked in Kolte-Patil Developers Limited hence same will not impact closing balance in investment in Equity shares of Kolte-Patil Properties Private Limited

## During the year FY 22-23 Kolte -Patil Developers Limited has recognised impairement loss of H100 Lakhs for investment in subsidaiary Kolte-Patil Global Private Limited. Since provision has been booked in Kolte-Patil Developers Limited hence same will not impact closing balance in investment in Equity shares of Kolte-Patil Global Private Limited

### During the year FY 22-23 Kolte -Patil Developers Limited has recognised impairement loss of H206 Lakhs for investment in subsidaiary KP-SK Project Management LLP. Since provision has been booked in Kolte-Patil Developers Limited hence same will not impact closing balance in investment in Equity shares of KP-SK Project Management LLP.

2. Reason for Shortfall

For FY 22-23, the Company has spent the required amount to be spent.

3. Nature of CSR activities

(a) Promotion of Education

(b) Setting up homes for orphans and senior citizen

4. Details of Related party transaction

During the year a sum of H117 Lakhs has been given to Anisha Education Society, which is a Related Party.

5. Movements in the provision during the year

(There is no liability incurred by entering into a contractual obligation for CSR)

Note 48 - Employee stock option scheme

Employee stock option scheme (ESOS 2014)

The Company has instituted ''Employee Stock Option Scheme 2014'' (ESOS 2014) for eligible employees of the Company. The vesting pattern of the schemes has been provided below. The options can be exercised over a period of 1 to 4 years from the date of grant. Each option carries with it the right to purchase one equity share of the Company at the exercise price determined by the nomination and remuneration committee at the time of grant.

The options under this scheme vest over a period of 1 to 4 years from the date of the grant. Upon vesting, employees have 4 to 6 years (as per plan) to exercise the options.

The exercise period shall commence from the date of vesting of option and expire not later than 12 (Twelve) months from the vesting date of option. Options not exercised during any particular exercise period, can be carried forward to the subsequent exercise period(s), provided however that all the options, have to be exercised within a period of 2 years from the date of the vesting period in respect of the final lot, after which any unexercised Options will lapse.

The Company operates in real estate business and is governed by IND AS 115 for recording the revenue as per completion contract method. Accordingly, abovementioned ratios may not be strictly comparable.

^A Debt = Borrowings Lease liabilities.

^AA Investment pertaining to equity shares, preference shares and CCD has not been considered since, the corresponding income pertaing to that is not forming part of income.

Notes:

1 Increase in Cash profit in current year as compare to previous year has resulted into increase in the ratio.

2 Increase in profit in current year as compare to previous year has resulted into increase in the ratio.

3 Increase in cost of goods sold in current year compared to previous year has resulted in increase in the ratio.

4 Increase in revenue in current year compared to previous year has resulted in increase in the ratio.

5 Increase in purchases in current year compared to previous year has resulted in increase in ratio.

Note 52 - Amount less laan Re. 0.5 Lakh has been rounded off and shown as Re. 0 Lakhs.

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Mar 31, 2022

Nature and Purpose of reserves

(a) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of section 52 of the Act.

(b) Capital Reserve

Capital Reserve created on account of amalgamation

(c) General reserves

General reserve is a free reserve which is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of profit and loss.

(d) Share option outstanding account

Share option outstanding account is credited when the employee share based payments expenses are recognised on granting of the share options and in turn transferred to securities premium / equity share capital on exercise of the share options.

(e) Capital redemption reserve

Capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium as per section 69 of the Act. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve. The reserve is utilized in accordance with the provisions of section 69 of the Act.

(f) Retained earnings

Retained earnings, or accumulated earnings, are the profits that have been reinvested in the business instead of being paid out in dividends. The number represents the total after-tax income that has been reinvested or retained over the life of the business.

Note 19A: Terms, rights & restrictions attached to equity shares

The Company has only one class of equity shares having a face value of H10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders

(i) Term Loan from Banks are secured by :

Mortgage of all rights, interest and title of the borrower, mortgage of current & future receivables in respect of selected projects. Loan will be repayable in 10-30 equal monthly/quarterly instalments starting from the end of principal moratorium.

Rate of Interest: The Rate of Loans are between 8 % to 13%.

(ii) Term Loan from financial institutions :

Secured by:

1) An exclusive charge by way of registered mortgage on all the rights, interest and title of borrower, in the respective project.

2) An exclusive charge on respective project land, all buildings, Structures and residential property.

3) Lien on unsold units of the project.

4) An exclusive charge by way of hypothecation of scheduled current & future receivables of the respective projects.

Repayment Terms: Loan will be repayable in 10-48 equal monthly instalments starting from the end of principal moratorium.

Rate of Interest: 8 to 13%

(iii) Vehicle Loans :

Rate of Interest: The Rate of Loans are between 8 % to 10%.

(iv) Other Disclosure :

(a) Since company is not declared as wilful defaulter by any bank or financial institution or any other lender, the required disclosure as per Schedule III in this regards has not been given.

(b) Bank loans contain certain debt covenants relating to limitation on indebtedness, debt-equity ratio, net Borrowings to EBITDA ratio and debt service coverage ratio. The company has satisfied all debt covenants prescribed in the terms of bank loan.

(c) The company has not defaulted in repayment of any loans or it''s interest payable.

(d) Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall :

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; hence, the disclosure in this respect is not applicable (Refer section XVI of Schedule III notification dated 24 March 2021)

e) The company has been regular filing its quarterly returns or statement of current assets with banks and same are in agreement with books of accounts.

Note 30 B - Sale of properties/flats (residential and commercial)

(1) Contract Balances

(a) Amounts received before the related performance obligation is satisfied are included in the balance sheet (Contract liability) as "Advances received from Customers" in note no. 29 - Other Current Liabilities. Amounts billed but not yet paid by the customer after giving possession/ deemed possession are included in the balance sheet under trade receivables in note no. 6 & note no. 13

(b) There were no significant changes in the composition of the contract liabilities and Trade receivable during the reporting period other than on account of periodic invoicing and revenue recognition.

(c) Amounts previously recorded as contract liabilities increased due to further milestone based invoices raised during the year and decreased due to revenue recognised during the year on completion of the construction.

(d) Amounts previously recorded as Trade receivables increased due to invoices raised during the year on account of possession/ deemed possession given to customers and decreased due to collections during the year.

(e) There are no contract assets outstanding at the end of the year.

Note 37 - Contingent liabilities (to the extent not provided for)	(H In Lakhs)
Particulars	As at March 31, 2022	As at March 31, 2021
(1) Claims against the Company not acknowledged as debt 1
(a) Claims not acknowledged as debts represent cases filed in Civil Court and High Court.	1,306	1,209
(b) Claims in respect of Income Tax matters (pending in Appeal)2	1,704	600
(c) Claims in respect of Indirect Tax matters (pending in Appeal)2	999	-
(2) Corporate guarantees given issued by the Company on behalf of Subsidiaries3	24,500	24,500
Total	28,509	26,309

Note 39 - Employee Benefits

The details of employee benefits as required under Ind AS 19 ''Employee Benefits'' is given below:

(A) Defined Contribution Plan:

The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.

Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans to Provident fund is H264 lakhs (Previous Year - H224 lakhs) and Employee State Insurance Scheme is H2 lakhs (Previous Year - H4 lakhs).

(B) Defined benefit plan:

Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.

a. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of the liabilities.

b. Expected rate of return of plan assets: This is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of obligations.

c. Salary escalation rate: The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factor.

d. Withdrawal rate: It is the expected employee turnover rate and should be based on the company''s past attrition experience and future withdrawal expectations.

Note 40 - Segment Information

Information reported to the chief operating decision maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods and services delivered or provided. The Company is engaged in development of real estate property, operating in India, which in the context of Indian Accounting Standard 108 ''Segment Information'' represents single reportable business segment.

Geographical Information

The Group operates in one reportable geographical segment i.e. "Within India". Hence, no separate geographical segment wise disclosure is applicable as per the requirements of Ind AS 108 Operating Segments.

Note 41 - Leases

Where the Company is Lessee:

The Company has entered into operating lease arrangements for certain facilities and office premises having term or remaining life as at April 1, 2021 for less than one year. Expenses for operating leases included in the Statement of Profit and Loss for the year is H211 lakhs [Previous Year - H94 lakhs].

Where the Company is Lessor:

The Company has entered into operating lease arrangements for certain surplus facilities. The leases are cancellable.

Rental income from operating leases included in the statement of Profit and Loss for the year is H112 lakhs [Previous Year - H98 lakhs].

Remeasurement of lease Liability:

The Company has recognised the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. However, the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, thus the remaining amount has been recognised as gains on remeasurement of lease liabilities in statement of profit and loss for H63.24 lakhs.

Note 43 - Financial Instruments

I) Capital Management

The Company''s capital management objectives are:

- to ensure the company''s ability to continue as a going concern.

- to maximize the return to stakeholders through the optimization of the debt and equity balance.

The Company monitors capital on the basis of the carrying amount of equity as presented on the face of the statement of financial position. The Company sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

II) Financial risk management objectives

In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

III) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Future specific market movements cannot be normally predicted with reasonable accuracy.

Currency risk: The Company does not have material foreign currency transactions. The company is not exposed to risk of change in foreign currency.

Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to the risk of changes in market interest rates as the Company does not have any long-term debt obligations with floating interest rates.

Other price risk:

The Company is not exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

IV) Interest risk management

The Company''s interest rate exposure is mainly related to debt obligations. The Company obtains debt to manage the liquidity and fund requirements for its day to day operations. The rate of interest is fixed and thus there is no risk of interest rates fluctuating.

V) Credit risk management

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

VI) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

2. Reason for Shortfall

The Company has identified the CSR projects, the unspent amount has been transferred to Special CSR A/C for the identified ongoing CSR projects for the FY 2021-22.

For FY 2021-22, the unspent amount was transferred to Special CSR Account for the identified project on April 28 2022 and the Company is spending for the identified onging projects.

3. Nature of CSR activities

(a) Animal welfare

(b) Promotion of Education

(c) Healthcare

4. Details of Related party transaction

During the year a sum of H12 Lakhs has been given to Anisha Education Society, which is a Related Party.

5. Movements in the provision during the year

There is no liability incurred by entering into a contractual obligation for CSR

Note 49 - Employee stock option scheme

Employee stock option scheme (ESOS 2014)

The Company has instituted ''Employee Stock Option Scheme 2014'' (ESOS 2014) for eligible employees of the Company. The vesting pattern of the schemes has been provided below. The options can be exercised over a period of 1 to 4 years from the date of grant. Each option carries with it the right to purchase one equity share of the Company at the exercise price determined by the nomination and remuneration committee at the time of grant.

The options under this scheme vest over a period of 1 to 4 years from the date of the grant. Upon vesting, employees have 4 to 6 years (as per plan) to exercise the options.

The exercise period shall commence from the date of vesting of option and expire not later than 12 (Twelve) months from the vesting date of option. Options not exercised during any particular exercise period, can be carried forward to the subsequent exercise period(s), provided however that all the options, have to be exercised within a period of 2 years from the date of the vesting period in respect of the final lot, after which any unexercised Options will lapse.

The employee stock option cost for the Employee Stock Option Scheme 2014 has been computed by reference to the fair value of share options granted and amortized over each vesting period. For the year ended March 31, 2022 the Company has accounted for employee stock option cost (equity settled) amounting to H19 lakhs (March 31, 2021: H252 lakhs).

The amount of the expense is based on the fair value of the employee stock options and is calculated using a Binomial Lattice valuation model. A lattice model produces estimates of fair value based on assumed changes in share prices over successive periods of time. The Binomial Lattice model allows for at least two possible price movements in each subsequent time period.

The Hull-White model (HW-model) is an extension of the Binomial Lattice model. It models the early exercise behaviour of employees by assuming that exercise takes place whenever the stock price reaches a certain multiple M of the strike price X when the option has vested. The Black and Scholes valuation model has been used for computing the weighted average fair value.

1 Increase in Cash loss in current year as compare to previous year has resulted into decrease in the ratio.

2 Increase in loss in current year as compare to previous year has resulted into decrease in the ratio.

3 Decrease in COGS in current year compared to previous year has resulted in decrease in the ratio.

4 Increase in purchases in current year compared to previous year has resulted in increase in ratio.

5 Increase in loss in current year as compare to previous year has resulted into decrease in the ratio.

1

In the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof.

2

As at March 31, 2022, Contingent liability majorly represent demands arising on completion of assessment proceedings under the Income-tax Act, 1961 and other indirect tax act.

These claims are on account of various issues of disallowances, or addition in liability by tax liabilities. These matters are pending before various appellate authorities and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company''s financial position and results of operations.

3

The Company does not expect any outflow of resources in respect of the Guarantees issued.

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Mar 31, 2018

1. Corporate Information

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.

2A. New Accounting Standards, Amendments to Existing Standards, Annual Improvements and Interpretations Effective Subsequent to March .31, 2018:

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:

On March .28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The Company is in process of evaluating the impact on the financial statements.

Ind AS 115- Revenue from Contract with Customers:

On March .28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach). The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018. The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March .31, 2018 will not be retrospectively adjusted. The Company is in process of evaluating the impact on the financial statements.

3A: Terms, rights & restrictions attached to equity shares

The Company has only one class of equity shares having a face value of RS.10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

3B : Information regarding issue of shares in the last five years:

i) The Company has not issued any shares without payment being received in cash.

ii) The Company has not issued any bonus shares.

iii) The Company has not undertaken any buy-back of shares.

3C: The Company declares and pays dividend in Indian Rupees. The shareholders at the Annual General Meeting held on September 28, 2017 approved a dividend of RS.1.60/- per share for the year ended March .31, 2017 which was subsequently paid during the year ended March .31, 2018. The amount was recognised as distributions to equity shareholders during the year ended March .31, 2018 and the total appropriation was RS.1,212 Lakhs.

A final dividend of RS.2/- per share has been recommended by the Board of Directors in their meeting held on May 23, 2018 for the financial year 2017-18 subject to the approval of shareholders in the ensuing Annual General Meeting.

3D : Refer Note 46 for details relating to stock options

Security:

Secured by Mortgage over land and Project Assets, charge on escrow account and all Cash flows and Receivables pertaining to the Project.

(ii) Term Loan from Banks are secured by :

Mortgage of all rights, interest and title of the borrower, mortgage of current & future receivables in respect of selected projects. Loan will be repayable in 10-30 equal monthly/quarterly instalments starting from the end of principal moratorium.

(iii) Term Loan from others :

Secured by:Exclusive charge by way of RMOE on the projects land, hypothecation of scheduled receivable (both sold and unsold) of Projects, all insurance proceeds both present and future.An Exclusive charge by way of hypothecation on Escrow Account, all monies credited / deposited therein and all investments in respect thereof.Repayment Terms : monthly/quarterly instalments.

(iv) Finance Lease Obligation : March .31, 2018 - RS.243 Lakhs ( March .31, 2017 - RS.181 lakhs)

Security : Finance lease obligations are secured by the underlying assets for which loans are obtained Rate of Interest : The Rate of Loans are between 10 % to 18%

*in the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof.

**The Company does not expect any outflow of resources in respect of the Guarantees issued.

Note 4 - Employee Benefits

The details of employee benefits as required under Ind AS 19 ‘Employee Benefits’ is given below

(A) Defined Contribution Plan:

The Company contributes to provident fund and employee state insurance scheme which are defined contribution plans.

Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans to Provident fund is RS.199 lakhs (Previous Year - RS.211 lakhs) and Employee State Insurance Scheme is RS.10 lakhs (Previous Year - RS.5 lakhs).

(B) Defined benefit plan:

Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.

Disclosure as required under Ind AS 19 on “Employee Benefits” in respect of defined benefit plan is as under:

a. The discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

b. Expected Rate of Return of Plan Assets: This is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of obligations.

c. Salary Escalation Rate: The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

d. Withdrawal Rate: It is the expected employee turnover rate and should be based on the company’s past attrition experience and future withdrawal expectations.

The sensitivity results above determine their individual impact on Plan’s end of year Defined Benefit Obligation. In reality, the plan is subject to multiple external experience items which may move the defined Benefit Obligation in similar or opposite directions, while the Plan’s sensitivity to such changes can vary over time.

xii. Employee benefit plans

The plans typically expose the company to the actuarial risks such as: investments risk, interest risks, longevity risk and salary risk

No other post-retirement benefits are provided to these employees.

In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March .31, 2018 by Ranadey Professional Services, Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Note 5 - Segment Information

The Company is engaged in Real Estate. The operations of the company do not qualify for reporting as business segments as per the criteria set out under Indian Accounting Standard 108 (IND AS-108) on “Operating Segments”. The Company is operating in India hence there is no reportable geographic segment. Accordingly no disclosure is required under IND AS - 108.

Note 6 - Leases

1. Operating leases:

Where the Company is Lessee:

The Company has entered into operating lease arrangements for certain facilities and office premises. The leases range over a period of 2 years to 5 years and may be renewed for a further period based on mutual agreement of the parties.

Expenses for operating leases included in the Statement of Profit and Loss for the year is RS.254 lakhs [Previous Year - RS.385 Lakhs].

The future minimum lease payments under non-cancellable operating lease

Where the Company is Lessor:

The Company has entered into operating lease arrangements for certain surplus facilities. The leases are cancellable.

Rental income from operating leases included in the Statement of Profit and Loss for the year is RS.112 lakhs [Previous Year - RS.116 lakhs].

2. Finance Leases:

The Company has taken vehicles on finance lease. The future lease rent payable on such vehicles taken on finance lease are as follows:

Note 7 - Financial Instruments

I) Capital Management

The company’s capital management objectives are:

- to ensure the company’s ability to continue as a going concern.

- to maximize the return to stakeholders through the optimization of the debt and equity balance.

The company monitors capital on the basis of the carrying amount of equity as presented on the face of the statement of financial position. The company sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities. The company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

a) Gearing Ratio:

The Gearing ratio at the end of the reporting period are as follows:

*Debt is defined as long-term and short-term borrowings including interest accrued on borrowings

b) The carrying value of financial instruments by categories as of March .31, 2018 is as follows:

II) Financial risk management objectives

In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

III) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Future specific market movements cannot be normally predicted with reasonable accuracy.

Currency risk: The Company does not have material foreign currency transactions. The company is not exposed to risk of change in foreign currency.

Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to the risk of changes in market interest rates as the Company does not have any long-term debt obligations with floating interest rates.

Other price risk:

The Company is not exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

IV) Interest risk management

The Company’s interest rate exposure is mainly related to debt obligations. The Company obtains debt to manage the liquidity and fund requirements for its day to day operations. The rate of interest is fixed and thus there is no risk of interest rates fluctuating.

V) Credit risk management

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

VI) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of financial liabilities, including estimated interest payments as at March .31, 2018:

VII) Fair value disclosures

Level 1 - Quoted prices (Unadjusted) in active markets for identical assets & liabilities.

Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset & liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (Unobservable inputs). The following table summarizes financial assets and liabilities measured at fair value on a recurring basis

Note 8 - Related Party Transactions:

A. List of Related Parties

Related Parties are classified as:

i. Subsidiaries

1. Kolte-Patil Real Estate Private Limited

2. Tuscan Real Estate Private Limited

3. Bellflower Properties Private Limited

4. Snowflower Properties Private Limited

5. Sylvan Acres Realty Private Limited

6. Regenesis Facility Management Company Private Limited

7. Kolte-Patil Redevelopment Private Limited (Formerly known as PNP Retail Private Limited)

8. PNP Agrotech Private Limited

9. Kolte-Patil I-Ven Townships (Pune) Limited

10. Ankit Enterprises

11. Kolte-Patil Homes

12. KP-Rachana Real Estate LLP

13. Sanjivani Integrated Township LLP (upto December 05tRs.2017)

14. Bouvardia Developers LLP

15. KP-SK Project Management LLP

16. Carnation Landmarks LLP

17. Regenesis Project Management LLP

ii. Key Management Personnel and their relatives

1. Rajesh Patil

2. Naresh Patil

3. Milind Kolte

4. Sunita Kolte

5. Sunita Patil

6. Vandana Patil

7. Gopal Sarda

8. Atul Bohra

9. Vinod Patil

10. Nirmal Kolte

11. Yashvardhan Patil

12. Harshavardhan Patil

13. Sudhir Kolte

14. Ankita Patil

iii. Entities over which Key Management Personnel and their relatives are able to exercise significant influence

1. Anisha Education Society

Note 9 - Details of CSR expenditure

a) Gross amount required to be spend by the Company during the year is RS.127 lakhs (Previous Year RS.76 lakhs).

b) Amount spend during the year RS.32 Lakhs (Previous year RS.109 Lakhs).

Note 10 - Employee stock option scheme Employee stock option scheme (ESOS 2014)

The Company has instituted ‘Employee Stock Option Scheme 2014’ (ESOS 2014) for eligible employees of the Company. The vesting pattern of the schemes has been provided below. The options can be exercised over a period of 1 to 3 years from the date of grant. Each option carries with it the right to purchase one equity share of the Company at the exercise price determined by the Nomination and remuneration Committee at the time of grant.

The vesting period of the above mentioned ESOS Schemes is as follows -

The options under this Scheme vest over a period of 1 to 3 years from the date of the grant. Upon vesting, employees have 3 to 5 years (as per plan) to exercise the options.

The exercise period shall commence from the date of vesting of option and expire not later than 12 (Twelve) months from the vesting date of option. Options not exercised during any particular exercise period, can be carried forward to the subsequent exercise period(s), provided however that all the Options, have to be exercised within a period of 2 years from the date of the vesting period in respect of the final lot, after which any unexercised Options will lapse.

iii. The employee stock option cost for the Employee Stock Option Scheme 2014 has been computed by reference to the fair value of share options granted and amortized over each vesting period. For the year ended March .31, 2018 the Company has accounted for employee stock Option cost (equity settled) amounting to RS.3 lakhs (March .31, 2017: RS.10 lakhs).

iv. The fair value of each option is estimated on the date of grant based on the following assumptions (on weighted average basis):

The amount of the expense is based on the fair value of the employee stock options and is calculated using a Binomial Lattice valuation model. A lattice model produces estimates of fair value based on assumed changes in share prices over successive periods of time. The Binomial Lattice model allows for at least two possible price movements in each subsequent time period.

The Hull-White model (HW-model) is an extension of the Binomial Lattice model. It models the early exercise behavior of employees by assuming that exercise takes place whenever the stock price reaches a certain multiple M of the strike price X when the option has vested. The Black and Scholes valuation model has been used for computing the weighted average fair value.

Note 11 - The Company seized as a partner From Sanjivani Integrated Township LLP with effect from December 5, 2017.

Note 12 - The Board of Directors of the Company in their meeting held on December 27, 2017 has approved the Scheme of Merger by absorption under applicable provisions of the Companies Act, 2013 of Bellflower Properties Limited (wholly owned subsidiaries of the Company) with the Company. The Appointed date of the Scheme is April 1, 2017. Further, both the companies have filed the scheme of merger before the National Company Law Tribunal Mumbai Bench on April 25, 2018 and waiting for their approval.

As the scheme of merger not consummated, effect of the said scheme is not given in these financial statements.

Note 13 - The financial statements for the year ended March .31, 2018 were approved by the Board of Directors and authorized for issue on May 23, 2018.

---

Mar 31, 2017

1. Corporate Information

Kolte-Patil Developers Limited (“the Company”) is a Company registered under the Companies Act, 1956. It was incorporated on 25 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.

2.1 New Accounting Standards, Amendments to Existing Standards, Annual Improvements and Interpretations Effective Subsequent to 31 March 2017 :

Share based payments

Ind AS 102 (Share based payments) was issued in February 2015. MCA on 17 March 2017 notified the Companies (Indian Accounting Standards) (Amendment) Rules, 2017, amending Ind AS 102.

The amendments made to Ind AS 102 covers Measurement of cash-settled share-based payments, Classification of share-based payments settled net of tax withholdings and accounting for a modification of a share-based payment from cash-settled to equity-settled.

The amendments are to be applied prospectively for annual periods beginning on or after 1 April 2017. Earlier application is not permitted. The Company does not expect the adoption of these new and amended standards, annual improvements and interpretations to have a significant impact on its financial statements.

Statement of Cash flows

Ind AS 7 (Statement of Cash Flows) was issued in February 2015. MCA on 17 March 2017 notified the Companies (Indian Accounting Standards) (Amendment) Rules, 2017, amending Ind AS 7.

The amendments made to Ind AS 7 require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and noncash changes.

The amendments are to be applied prospectively for annual periods beginning on or after 1 April 2017. Earlier application is not permitted. When the amendments are first applied, entities are not required to present comparative information for earlier periods. The Company does not expect the adoption of these new and amended standards, annual improvements and interpretations to have a significant impact on its financial statements.

Notes

1 Refer note 29 for cost of inventories recognised as an expense during the period.

2 Nil amount of inventories were written down to net realisable value during the current and comparable periods. Similarly, Nil amount of reversal of write down was accounted during the current and comparable periods

3 Mode of valuation of inventories is stated in Note 2

Note 3A: Terms, rights & restrictions attached to equity shares

The Company has only one class of equity shares having a face value of RS.10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Company’s residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 3BD : Information regarding issue of shares in the last five years:

i) The Company has not issued any shares without payment being received in cash.

ii) The Company has not issued any bonus shares.

iii) The Company has not undertaken any buy-back of shares.

Note 17E:

The Company declares and pays dividend in Indian Rupees. The shareholders at the Annual General Meeting held on 17 September 2016 approved a dividend of RS.1.50 per share for the year ended 31 March 2016 which was subsequently paid during the year ended 31 March 2017. The amount was recognised as distributions to equity shareholders during the year ended 31 March 2017 and the total appropriation was RS.1,148 Lakhs including dividend distribution tax. A final dividend of RS.1.60 per share has been recommended by the Board of Directors in their meeting held on 30 May 2017 for the financial year 2016-17 subject to the approval of shareholders in the ensuing Annual General Meeting. The proposed dividend of RS.1,212 lakhs and dividend distribution tax theron, of RS.247 lakhs have not been recognised as liablities.

Note 3C:

Refer Note 49 for details relating to stock options Security:

The NCDs shall be secured by an exclusive first ranking charge in favour of the Debenture Trustee (on behalf of the NCD holders) over:

1) Charge by way of Mortgage over land and Project Assets of Jazz 2 located at Pimple Nilakh to which clear and marketable title is held by Issuer.

2) Charge on all Cash flows and Receivables pertaining to the Project (“Receivables”).

3) Charge on the Escrow Account for the Project.

4) Minimum asset cover of 1.50 times the total principal amount of the NCDs outstanding and aggregate interest accrued but not paid on the NCDs as on the relevant date to be maintained , throughout the tenor of the NCDs”

Repayment Terms :

The non-convertible secured Debentures are redeemable at the end of 3 years from the Deemed Date of Allotment. The interest is to be paid out quarterly as per the Debenture Information Memorandum.”

The Company has created Debenture Redemption Reserve of RS.1,750 lakhs pursuant to the Section 71(4) of the Companies Act, 2013

Security:

The NCDs shall be secured by an exclusive first ranking charge in favour of the Debenture Trustee (on behalf of the NCD holders) over:

1) Charge by way of Mortgage over land and Project Assets of Atria located at Pimple Nilakh to which clear and marketable title is held by the Issuer.

2) Charge by way of Mortgage over land and Project Assets of Project Botanica, New Project and Project Umang Premier located at Wagholi, Taluka Haveli, District to which clear and marketable title is held by Issuer.

3) Charge on all Cash flows and Receivables pertaining to the Project (“Receivables”).

4) Charge on the Escrow Account for the Project.

Repayment Terms:

Repayment to be made in equal monthly tranches of INR. RS.12,00,00,000 commencing from June 2017 to March 2018. The interest is to be made monthly from October 2016 to May 2017.

The Company has created Debenture Redemption Reserve of RS.3,000 lakhs pursuant to the Section 71(4) of the Companies Act, 2013.

Details of terms of repayment and securities provided in respect of secured term loans are as under:

ii) Term Loan from Banks :

a) IDBI Loan Against property (Sanctioned RS.1,000 lakhs): 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 1 2015 -RS.824 lakhs)

Primary Security: Office No 101-B,102,105D,106,107AB,112C,201-203-204-205-206-207-208,First & Second Floor, City Point S.no 347B, 347A, Hissa No 3C/1A/1, 348A 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.

Collateral Security: 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 Rate of Interest : BBR Plus 525 bps (i.e.effective 15.50% p.a.)

During the F.Y. 2015- 16 , the term loan has been repaid.

b) IDBI Project Term Loan - 24K Glitterati (Sanctioned RS.2,500 lakhs): 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015 - RS.2,226 lakhs)

Primary Security: Mortgage of land at survey no 14 Hissa No 14/3/1/1, 14/4/1, 14/5/12 to 4 admeasuring 34400 sq. mtr. located at Pimple Nilakh in Pune.

Collateral Security: 1) Extension of Regd. mortgage of boat club Road Land, Final Plot no 188 S.no 347B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A total area 113883 Sq Ft. at Pune 2)Office No.101B, 102, 105D, 106, 107AB, 112C, 201-202-203-204-205-206-207-208, 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 -01 The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the Company.

Rate of Interest : BBR Plus 325 bps (effective 13.50% p.a.)

During the F.Y. 2015-16 , the term loan has been repaid.

c) Vijaya Bank Construction Finance - City Bay (Sanctioned RS.2,000 lakhs): 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015- RS.1,929 lakhs)

Primary Security : Exclusive Charge by way of equitable Mortgage on proposed sixth, seventh, eighth and ninth floor admeasuring 318,421 sq. ft. of proposed Building, City Bay.

Rate of Interest : Base Rate 2.75% 0.25% p.a.(floating) (i.e. 13.45% p.a. at present)

During the F.Y. 2015-16 , the term loan has been paid.

d) State Bank of India Projects Term Loan - Ragga - Bangalore (Sanctioned RS.4,300 lakhs): 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015 - RS.1,850 lakhs)

Primary Security: Land admeasuring 6 acres 29 Guntas i.e. 292,941 sq. ft. for phase I and II and buildings to be constructed at S.no 33, Kannur Village, Bidarahalli Hobli Nr Yelakhanka, Bangalore East Taluka.

Collateral Security : land admeasuring 5,400 sq. ft. and house property (basement g 2 admeasuring 9200 sq. ft. built up) at No 978 (amalgamation of 978 & 979) HAL 2nd stage indiranagar Bangalore. Prime: Negative lien on unsold flats.

The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Vandana Patil, Directors of the Company.

Rate of Interest : Base Rate 9.75% Spread 3.75% (i.e. 13.50%)

During the F.Y. 2015-16 , the term loan has been repaid.

e) Axis Bank Project term Loan (Sanctioned RS.1,000 lakhs) : 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015 -RS.287 Lakhs)

Primary Security: Exclusive registered mortgage of land Development agreement located at S no. 76 to 88 (P) and 91(P) admeasuring 74321.81 Sqmtr located at Bhavdhan Pune (including proposed building constructed thereon and other assets associated to the project.

Collateral Security: All receivable from the project including sale proceed, Security deposit, any other payment and termination repayment should be routed through a designated Account in Axis Bank Limited. The bank to have lien on the account.

Rate of Interest : Basic rates Plus 3.00% i.e. currently 13.25% P.A.payble at monthly interval.

During the F.Y. 2015-16 , the term loan has been repaid.

f) Karur vaishya bank Project term Loan (Sanctioned RS.5,000 lakhs) : 31 March 2017 - RS.1,998 Lakhs (31 March 2016 -RS.1,987 Lakhs) (1 April 2015 - Nil)

Primary Security : Fresh E M Charge on Developers Share of Land and Property under development at Sino. 71 of Horamavu Agara Village, KR Puram, Hobli, Bangalore East Taluk admeasuring 7 acres 39 guntas valued at RS.135.00 Crores as per B.M’s estimate.

Collateral Security : Fresh E.M Charge on Vacant Land situated at No. 53/1, Next to Jhon Flower, Koramangala 3rd

Block, Koramangala, Bangalore admeasuring 58500 Sq.Ft. standing in the name of Ankit Enterprises (Group concern) valued RS.76.00 Crores as per B.M Estimates.

Rate of Interest : Basic rates Plus 2.90% i.e. currently 12.80% PA.payble at monthly interval. (Effective Rate of Interest : 13.87%)

Repayment Terms : Repayment started from February 28, 2018 . 5 Quarterly equal instalments. Holiday Period upto November 2017. Door to Door Tenure 36 months.

g) State Bank of India (Sanctioned RS.15,000 lakhs): 31 March 2017 - NIL (31 March 2016 - RS.11,467 lakhs) (1 April 2015 - RS.343 lakhs)

Primary security :

1. All pieces and parcel of Land Bering Survey Nos. 1) 131/1(part)-00RS.05 Acres, 2) 131/5-(part)-00H 49.69 Acres,

3)131/2 3 4 6/1 (part)-00H 1640 Acres, 4)131/2 3 4 6/2 (part)-1H 63.40 Acres, 5)131/2 3 4 6/3 (part)-1H 53.35 Acres, 6)131/2 3 4 6/4 (part)-00H 16.67 Acres, 7)131/2 3 4 6/5 (part)-00H 27.80 Acres , 8) 131/2 3 4 6/6(part)-00H 49.40 Acres, 9) 131/7/1 (part)-00H 46.08 Acres which are totally & collectively ad measuring 03 H 27.79 Acres, i.e. 32779 Sq. Meters at village Wakad, within the limits of Pimpri Chinchwad Municipal Corporation and within the jurisdiction of Taluka Mulshi, District.

2. Present and future goods, book debts and all other movable assets.

3. Offices no. 101B, 102, 106, 107AB, 112C, 201 to 207 at City Point, Dhole Patil Road, Pune and Open land admeasuring 29,593 sq. mtrs. Bearing S. No. 347-B, 347-A/3C/1A/1, 348A/1/1 and 348A/1/2A and also bearing final plot no. 188, at Boat Club road and 6th, 7th, 8th Floors of City Bay, Dhole Patil Road, Pune.”

Rate of Interest : 11.30% p.a. with monthly rest.

Repayment Terms:

The Fund based loan amount of RS.15,000 Lakhs sanctioned is available for a period of 35 months with annual review when it may be cancelled depending upon the conduct and utilization of advances. The repayment will start from March 2016.

During the year , the term loan has been repaid.

h) IndusInd Bank Ltd. (Sanctioned RS.17,500 lakhs): 31 March 2017 - RS.9,695 Lakhs (31 March 2016 - Nil) (1 April 2015 - Nil)

Primary Security : Mortgage on all the rights, interest and title of the borrower in respect of Project 1, Project 2 and Project 3. Hypothecation on all buildings & structures & project sold & unsold receivables (including lease rentals, sale proceeds, lease deposit, common area charges, parking charges, all refinancing proceeds received by the Borrower, any other receipts, etc.) for the project 1, Project 2 and Project 3. (Project 1: Project World Residences (Giga) located at Viman Nagar, Pune having residential saleable area of 3,57,311 sq. ft. and commercial area of 48,656 sq. ft. Project 2: Project Western Avenue located at Wakad Pune having residential saleable area of 8,81,954 sq. ft. and commercial saleable area of 44,458 sq. ft. and Project: 3: Project Atria located at Pimple Nilakh Pune having saleable 1,62,061 sq. ft.

Rate of Interest : 10.25% p.a. payable at monthly rests (linked to 1 year MCLR) (Effective Rate of Interest : 11.66%) Repayment Terms : Loan will be repayable in 10 equal quarterly instalments starting from the end of 33rd month from date of 1st disbursement. OD repayment will start post repayment of term loan of RS.100 crores .

i) IDBI Project Term loan - (Sanctioned RS.3,000 lakhs): 31 March 2017 - Nil (31 March 2016 - RS.2,752) (1 April 2015 -Nil)

Primary Security: Registered Mortgage of land at Gat No 677, 687, 689, and 690 to 710 Excluding land in which phase - I has been executed at wagholi Tal. Haveli Dist. Pune. Exclusive charge and escrow of project receivable of Phase- II Collateral: Nil

Rate of interest: Current applicable interest rate is Basic rate 375bps (i.e. 13.50%) which is payable at end of each month

Repayment Terms:

The final disbursement of the above loan was completed in the month of March, 2015. As per the terms of the loan, the repayment of principle amount is to be started after 1 October 2016 after completion of the moratorium period of 18 months.

During the year, the term loan has been repaid.

iii) Term Loan from others :

a) Capital First Limited - (Sanctioned RS.7,500 lakhs): 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015 - RS.3,071 Lakhs)

Primary Security : Exclusive Charge on the escrow on all the receivable credited to KPDL after payment is made to the respective construction finance lender from Glitterati Project. Exclusive charge by way of Mortgage of all unsold projects assets and exclusive mortgage on land, hypothecation over all the project receivable and inventory of Giga residency Projects. Escrow of all projects cash flow accruing from sale of projects, including but not limited to deposits/ rentals/sale proceeds/ any other receipts of any nature in such form and manner as may be required by the lender from the projects mentioned above till our facility is fully repaid.

Rate of Interest : 18% p.a. payable quarterly fixed for entire term of the facility During the F.Y. 2015-16 , the term loan has been paid.

b) Aditya Birla Finance Limited - (Sanctioned RS.4,500 lakhs): 31 March 2017 - RS.2,314 Lakhs (31 March 2016 - RS.1,410 Lakhs) (1 April 2015 - Nil)

Primary Security : An exclusive charge by way of RMOE on the projects land bearing S. No. 33, admeasuring 205,821 square feet situated at Kannur Village, Bidarahalli Hobli, Bangalore east along with building and structures both, present and future.

Exclusive Charge by way of RMOE on the Residential Property bearing survey no. 978 along with the structures situated at HAL II Stage Bangalore, Bangalore Mahanagar Palike Ward No 72 totally measuring east to west 90 ft. and north to south 60 all measuring 5400 sq. ft., comprising of basement Ground floor plus two floors with a built up area of 9247 sq. ft., together with all rights.

An Exclusive charge by way of hypothecation of scheduled receivable (both sold and unsold) of Projects Raaga Phase I and II under the document entered into with customer by borrower, all insurance proceeds both present and future.

An Exclusive charge by way of hypothecation on Escrow Account I and Escrow Account ll, all monies credited / deposited therein and all investments in respect thereof.

Rate of Interest : 13.75% p.a., interest to be paid monthly. (Effective Rate of Interest : 14.47%)

Repayment Terms : Rupee Term Loan I of RS.15 crores in 18 monthly instalments. The first of such instalment shall fall due after 18th month from the date of 1st disbursement.

Rupee Term Loan II of RS.30 crores in in 18 monthly instalments. The first of such instalment shall fall due after 24th month from the date of 1st disbursement.

c) Aditya Birla Finance Limited - (Sanctioned RS.1,500 lakhs): 31 March 2017 - RS.868 Lakhs (31 March 2016 - RS.1,359 Lakhs) (1 April 2015 - Nil)

Primary Security : All that Piece and parcel of premises bearing office Nos. 15 & 17 situated on 1st Floor, Office Nos. 04, 05, 17 situated on 2nd floor, Office Nos. 04, 05 & 17 situated on 3rd floor and Restaurant Nos. 01, 02 & 03 situated on 4th floor in building City Center situated at land bearing S No. 138/1 at village Hinjewadi, within registration district pune, Taluka - Mulshi; together with all buildings, Structures constructed or to be constructed thereon, both present and future and plant & machinery, fixture to be installed .

All that of retained offices bearing No. 403,404,409A & 411 on 4th floor, office no. 405, 509B, 511 & 512 on 5th Floor in City Mall Building bearing plot no. 01, S No. 132-B, Hissa No. 1 (CTS No. 2760) of Bhamburda Pune situated at University Road, Pune; together with all buildings, Structures constructed or to be constructed thereon, both present and future and plant & machinery, fixture to be installed.

Rate of Interest : Facility 11.50% p.a. floating which is linked to ABFL. (Effective Rate of Interest : 12.48%)

Repayment terms : 12 equal quarterly instalments

d) Tata Capital Housing Finance Limited (Sanctioned RS.3,500 Lakhs): 31 March 2017 - RS.970 Lakhs (31 March 2016 -HNil) (1 April 2015 - Nil)

Primary Security : All that piece and parcel of land forming part of survey Nos. 30/3 measuring 7 guntas, 30/4 measuring 3 acres 2 guntas, and 35/1 measuring 1 acre 13.5 guntas, total admeasuring 1,75,851.72 sq. ft. situated at Konappana Agrahara, Begur Hobli, Bangalore, South Taluk, Bangalore together with all the constructions thereon including all the units/flats/open space/parking/amenities and all such areas/constructions forming part of the residential project titled “iTowers Extent” constructed/being constructed by the Borrower on the above mentioned land. All the sale proceeds accruing or arising or accrued and arisen but not received or collected out of the project “iTowers Extent” and the Project Land All the sale proceeds accruing or arising or accrued and arisen but not received or collected out of the project “iTowers Extent” and the Project Land the allottees / purchasers(present or future) of said flats whether under a letter of allotment and/or agreement for sale executed or any other document executed between the borrower and the allottees / flat purchaser in this regard, the escrow account, the approvals for the projects and the proceeds payable under the insurance policies.

Rate of Interest : PLR of 16.50%- 5.00% = 11.50% per annum on monthly reducing & floating rate basis. (Effective Rate of Interest : 12.96%)

Repayment terms :

1. Pre-MII/MI to be serviced from the project Escrow Account.

2. 10% of future sales receivables of sold and unsold units of proposed project during the entire tenure of loan. Set off to EMI can be given from capitalization during repayment period.

3. MI to commence from the following month of disbursement.

4. Monthly instalment: INR 16,394,110/- subject to variation in the PLR and satisfaction of Capitalization.

iv) Vehicle Loans : 31 March 2017 - RS.181 Lakhs (31 March 2016 - RS.98 lakhs) (1 April 2015 - RS.234 lakhs)

Security : All the Vehicle loans are secured by the respective vehicles only.

Rate of Interest : The Rate of Loans are between 10 % to 18%

Axis Bank - 31 March 2017 - Nil (31 March 2016 - HNil) (1 April 2015 - RS.1,977 Lakhs)

Primary Security : Exclusive first hypothecation charge on Current assets (construction Material WIP and receivables) of all the real estate projects of the company present and future excluding the project for which the company has availed project specific funding from any other bank.

Collateral Security : Exclusive registered mortgage of land located at S.no. 171/1 and 171/2 and 172 1/2 admeasuring 9460 sq. mtr. at tal. Mulshi, Wakad Pune in the name of Bouvardia Developers LLP (group entity of KPDL). Extension of charge on the Commercial premises Showroom no. 6 on the Ground floor of Building Delta Giga Space admeasuring 5300 sq. ft. standing in the name of the Company .

Interim addition security : Exclusive mortgage of property at unit no’s 12,13, 30 at Biz Bay project in the in the name of the company admeasuring 3750 sq. ft. of saleable area.

Repayment Terms : On demand

Loan from related party : 31 March 2017 - Nil (31 March 2016 - Nil) (1 April 2015 - RS.5,135 Lakhs)

Loans from related parties are unsecured and are repayable on demandThe rate of interest is 14% per annum.

Note 4 - First-time adoption of Ind-AS

The Company has prepared its first Indian Accounting Standards (Ind AS) compliant Financial Statements for the periods commencing 1 April 2016 with restated comparative figures for the year ended 31 March 2016 in compliance with Ind AS. The company had prepared these financial statements in accordance with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act 2013. Accordingly, the Balance Sheet, in line with Ind AS transitional provisions, has been prepared as at 1 April 2015, the date of company’s transition to Ind AS. In accordance with Ind AS 101 First-time Adoption of Ind AS, the Company has presented below a reconciliation of net profit as presented in accordance with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (“Previous GAAP”) to total comprehensive Income for the year ended 31 March 2016, reconciliation of shareholders’ funds as per the previous GAAP to equity under Ind AS as at 31 March 2016 and 1 April 2015:

There were no significant reconciliation items between cash flows prepared under Previous GAAP and those prepared under Ind AS.

First-time adoption - mandatory exceptions, optional exemptions

The Company has prepared the opening balance sheet as per Ind AS as of 1 April 2015 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company as detailed below.

1. Estimates

The estimates at 1 April 2015 and 31 March 2015 are consistent with those made for the same dates in accordance with previous GAAP after adjustments to reflect any differences in accounting policies.

2. De-recognition of financial assets and financial liabilities

The Company has applied the de-recognition principles of financial assets and financials liabilities prospectively for transactions occurring on or after 1 April 2015.

3. Assessment of embedded derivatives

The company has assessed whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative on the basis of the conditions that existed at the later of the date it first became a party to the contract and the date when there has been a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract.

4. Share based Payments

Recognition criteria of employees stock option plan as per Ind 102 “Share based payment” is not applied to employee stock options that vested before date of transition to IND AS.

5. Deemed cost for property, plant and equipment, investment property, and intangible assets

The Company has elected to continue with the carrying value of all its property, plant and Equipment and Intangible assets recognised as of 1 April 2015 (transition date) measured as per previous GAAP and use that carrying value as its deemed cost as of the transition date.

6. Determining whether an arrangement contains a lease

The Company has applied Appendix C of Ind AS 17 Determining whether an Arrangement contains a Lease to determine whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing at that date.

7. Investments in subsidiaries, joint ventures

In accordance with exemption given in Ind AS 101, the company has recorded investments in subsidiaries and joint ventures at deemed cost i.e. previous GAAP carrying amount as on date of transition.

8. Impairment of financial assets

The Company has applied the impairment requirements of Ind AS - 109 ‘Financial Instruments’ retrospectively; however, as permitted by Ind AS 101, the Company has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date of financial instruments were initially recognised in order to compare it with the credit risk at the transition date.

Notes to the reconciliation between Previous GAAP and Ind AS

i) Under Previous GAAP, dividend on equity shares recommended by the board of directors after the end of the reporting period but before financial statements were approved for issue were recognised in the financial statements as a liability. Under Ind AS, such dividends are recognised when approved by the shareholders in the annual general meeting. The effect of this change is increase in Equity by RS.1,148 lakhs as at 31 March 2016 and RS.1,824 lakhs as at April, 2015.

ii) Under Ind AS borrowing have been accounted for using Effective interest rate. The effect of this change is increase in equity by RS.50 Lakhs as at 31 March 2016 and profit by RS.11 lakhs for the year ended 31 March 2016.

iii) Under Ind AS financial guarantee contract must be recognized initially at fair value. The fair value of a financial guarantee contract is equal to the premium received on the guarantee when the arrangement is a stand-alone transaction involving a guarantee for the debt of an unrelated party. Under previous GAAP, this was not recognised.

The effect of this change is increase in Equity by RS.38 lakhs and RS.10 lakhs as at 31 March 2016 and 1 April 2015 respectively and increase in profit by RS.46 lakhs for the year ended 31 March 2016.

iv) Under previous GAAP, the company recognised share based payments using intrinsic value method. Ind AS - 102 “share based payments” requires share based payments to be recognised at fair value as at the grant date.

The effect of this change is in increase in profit by RS.33 lakhs for the year ended 31 March 2016.

v) Under previous GAAP, actuarial gains or losses were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognised in other comprehensive Income. Consequently, the tax effect of the same has also been recognised in other comprehensive Income under Ind AS instead of statement of profit or loss.

vi) Under the previous GAAP, investments in debentures and preference shares were measured at cost. Under Ind As these financial assets have been classified as Fair Value Through Profit and Loss. The effect of this change is decrease in equity by RS.18 lakhs and by RS.13 lakhs as at 31 March 2016 and 1 April 2015 respectively and profit has increased by RS.11 lakhs for the year ended 31 March 2016.

vii) Consequent to adopting Ind AS, impairment of investments in subsidiaries has been carried out. The effect of this change is decrease in Equity by RS.1,693 lakhs as at 31 March 2016 and 1 April 2015 respectively.

viii) Consequent to the adjustments on adopting Ind AS, deferred tax on such adjustments has been recognised. The effect of this change is decrease in equity by RS.25 lakhs and increase in equity by RS.2 lakhs as at 31 March 2016 and 1 April 2015 respectively, and decrease in the profits by RS.21 Lakhs for the year ended 31 March 2016.

ix) Under previous GAAP, there was no concept of other comprehensive Income. Under Ind AS, specified items of Income, expense, gains, or losses are required to be presented in other comprehensive Income.

Note 5 - Employee Benefits

The details of employee benefits as required under Ind AS 19 ‘Employee Benefits’ is given below

(A) Defined Contribution Plan:

Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans (Provident funds) is RS.276 lakhs (Previous Year - RS.256 lakhs)

(B) Defined benefit plan:

Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.

a. The discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

b. Expected Rate of Return of Plan Assets: This is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of obligations.

c. Salary Escalation Rate : The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors

d. Withdrawal Rate: It is the expected employee turnover rate and should be based on the company’s past attrition experience and future withdrawal expectations.

No other post-retirement benefits are provided to these employees.

In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31 March 2017 by Ranadey Professional Services, Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Note 6 - Segment Information

The Company is engaged in Real Estate. The operations of the company do not qualify for reporting as business segments as per the criteria set out under Indian Accounting Standard 108 (IND AS-108) on “Operating Segments”. The Company is operating in India hence there is no reportable geographic segment. Accordingly no disclosure is required under IND AS - 108.

Note 7 - Operating Leases Where the Company is Lessee:

The Company has entered into operating lease arrangements for certain facilities and office premises. The leases range over a period of 2 years to 5 years and may be renewed for a further period based on mutual agreement of the parties. The lease agreements provide for an increase in the lease payments by 10% to 15% in few cases.

Rental expense for operating leases included in the Statement of Profit and Loss for the year is RS.385 lakhs [Previous Year - RS.379 Lakhs].

Where the Company is Lessor:

The Company has entered into operating lease arrangements for certain surplus facilities. The leases are cancellable.

Rental Income from operating leases included in the Statement of Profit and Loss for the year is RS.116 Lakhs [Previous Year - RS.105 Lakhs].

Note 8 - Financial Instruments

I) Capital Management

The company’s capital management objectives are:

- to ensure the company’s ability to continue as a going concern

- to maximize the return to stakeholders through the optimization of the debt and equity balance.

The company monitors capital on the basis of the carrying amount of equity as presented on the face of the statement of financial position. The company sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities. The company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

II) Financial risk management objectives

In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

III) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Future specific market movements cannot be normally predicted with reasonable accuracy.

Currency risk: The Company does not have material foreign currency transactions. The company is not exposed to risk of change in foreign currency.

Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to the risk of changes in market interest rates as the Company does not have any long-term debt obligations with floating interest rates.

Other price risk:

The Company is not exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

IV) Interest risk management

The Company’s interest rate exposure is mainly related to debt obligations. The Company obtains debt to manage the liquidity and fund requirements for its day to day operations .The rate of interest is fixed and thus there is no risk of interest rates fluctuating.

V) Credit risk management

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

VI) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of financial liabilities, including estimated interest payments as at 31 March 2017:

VII) Fair value disclosures

Level 1 - Quoted prices (Unadjusted) in active markets for identical assets & liabilities.

Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset & liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (Unobservable inputs).

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis

Note 9 - Related Party Transactions A. List of related Parties

Related Parties (as identified by the Management) are classified as:

i. Subsidiaries

1 Kolte-Patil Real Estate Private Limited

2 Tuscan Real Estate Private Limited

3 Bellflower Properties Private Limited

4 Corolla Realty Limited (upto 31 December 2015)

5 Snowflower Properties Private Limited

6 Jasmine Hospitality Private Limited (Up to 31 December 2015)

7 Olive Realty Private Limited (Up to 31 December 2015)

8 Sylvan Acres Realty Private Limited

9 Yashowardhan Promoters and Developers Private Limited (Up to 31 December 2015)

10 Regenesis Facility Management Company Private Limited

11 Kolte Patil Redevelopment Private Limited (Formerly know as PNP Retail Private Limited)

12 PNP Agrotech Private Limited

13 Kolte-Patil I-Ven Townships (Pune) Limited

14 Ankit Enterprises

15 Kolte-Patil Homes

16 KP-Rachana Real Estate LLP

17 Sanjivani Integrated Township LLP

18 Bouvardia Developers LLP

19 KP-SK Project Management LLP

20 Carnation Landmarks LLP

21 Regenesis Project Management LLP

22 Lilac Hospitality LLP (Up to 14 November 2016)

23 Ruturang Developers LLP (Up to 22 December 2015)

ii. Key Management Personnel

1. Mr. Rajesh Patil

2. Mr. Naresh Patil

3. Mr. Milind Kolte

4. Mrs. Sunita Kolte (Up to 30 June 2015)

5. Mrs. Vandana Patil (Up to 30 June 2015)

6. Mr. Sujay Kalele (Up to 31 December 2015)

7. Mr. Gopal Sarda (w.e.f. 15 June 2016)

8. Mrs. Shraddha Jain (up to 4 November 2015)

9. Mr. Atul Bohra (w. e .f. 5 November 2015)

iii. Relatives /Close Members of the family of Key Management Personnel (with whom the Company had transactions)

1. Mr. Pradeep Kolte

2. Mr. Nirmal Kolte

Note 10 - Details of CSR expenditure

a) Gross amount required to be spend by the Company during the year is RS.76 lakhs (Previous Year RS.121 lakhs).

b) Amount spend during the year RS.109 Lakhs (Previous year RS.104 Lakhs)

Note 11

Trade receivables outstanding as at the balance sheet date include amounts of RS.3,081 lakhs relating to dues from certain parties that are outstanding for more than 6 months from the date they became due. As the Company continues to have business relationship and arrangements with these parties, the Company is confident of recovering these dues in the normal course of business.

Note 12- Domestic Transfer Pricing

The Company enters into “domestic transactions” with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 (‘regulations’). The pricing of such domestic transactions will need to comply with the Arm’s length principle under the regulations. These regulations, inter alia, also required the maintenance of prescribed documents and information including furnishing a report from an accountant which is to be filed with the Income tax authorities.

The Company has undertaken necessary steps to comply with the regulations. The management is of the opinion that the domestic transactions are at arm’s length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

Note 13 - Employee stock option scheme a) Employee stock option scheme (ESOS 2014)

The Company has instituted ‘Employee Stock Option Scheme 2014’ (ESOS 2014) for eligible employees of the Company. The vesting pattern of the schemes has been provided below. The options can be exercised over a period of 1 to 3 years from the date of grant. Each option carries with it the right to purchase one equity share of the Company at the exercise price determined by the Nomination and remuneration Committee at the time of grant.

The options under this Scheme vest over a period of 1 to 3 years from the date of the grant. Upon vesting, employees have 3 to 5 years (as per plan) to exercise the options.

The exercise period shall commence from the date of vesting of option and expire not later than 12 (Twelve) months from the vesting date of option. Options not exercised during any particular exercise period, can be carried forward to the subsequent exercise period(s), provided however that all the Options, have to be exercised within a period of 2 year from the date of the vesting period in respect of the final lot, after which any unexercised Options will lapse.

iii. The employee stock option cost for the Employee Stock Option Scheme 2014 has been computed by reference to the fair value of share options granted and amortized over each vesting period. For the year ended 31 March 2017 the Company has accounted for employee stock Option cost (equity settled) amounting to RS.10 lakhs (31 March 2016: RS.16 lakhs).

The amount of the expense is based on the fair value of the employee stock options and is calculated using a Binomial Lattice valuation model. A lattice model produces estimates of fair value based on assumed changes in share prices over successive periods of time. The Binomial Lattice model allows for at least two possible price movements in each subsequent time period.

The Hull-White model (HW-model) is an extension of the Binomial Lattice model. It models the early exercise behavior of employees by assuming that exercise takes place whenever the stock price reaches a certain multiple M of the strike price X when the option has vested. The Black and Scholes valuation model has been used for computing the weighted average fair value.

Note 14

On 11 December 2015, the Company has entered into an agreement with Metropolitan Lifespace Real Estate Developers Private Limited (MLREDPL), for redevelopment of Jay Vijay Society Co-operative Housing Society Limited in Vile Parle. The agreement defines the Company as “Developer” and MLREDPL as the “Co-Developer”.

MLREDPL is contributing towards its share in the cost of the project, and will receive an identified area of the development as its return.

Note 15 - Scheme of Amalgamation

Pursuant to the Scheme of Amalgamation (the Scheme) sanctioned by the National Company Law Tribunal, Mumbai Bench vide its order dated 9 March 2017, Olive Realty Private Limited (Olive Realty), Yashowardhan Promoters and Developers Private Limited (Yashowardhan Promoters), Corolla Realty Limited (Corolla Realty) and Jasmine Hospitality Private Limited (Jasmine Hospitality) have been merged with the Company with effect from 1 January 2016 (the appointed date). The Scheme came into effect on 10 April 2017, the day on which the order was delivered to the Registrar of the Companies, and pursuant thereto the entire business and all the assets and liabilities, duties, taxes and obligations of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality have been transferred to and vested in the Company .The scheme has become effective on 10 April 2017 with effect from the appointed date of 1 January 2016.

Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality were 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.

The business of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality was run in trust by them for the Company and the business of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality will be carried on by the Company post the effective date.

As the amalgamating companies i.e. Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality are wholly owned subsidiaries of the Company, no consideration is payable on amalgamation with the Company.

The amalgamation is accounted under the ‘pooling of interest’ method in terms of the scheme sanctioned by the National Company Law Tribunal, Mumbai bench as under:

- All assets and liabilities and reserves of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality have been recorded in the books of account of the Company at their respective carrying amounts and in the same form.

- Difference between amount of Share capital of the transferor companies and gross value recorded as investments is adjusted and the difference is adjusted in ‘ Reserves’ in accordance with the Scheme.

- Accordingly, the assets and liabilities of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality are accounted at the following summarized values:

As the appointed date of merger is 1 January 2016 therefore previous year’s numbers reported are not comparable.

The Company has initiated the name change formalities to transfer the title in respect of the contracts, agreements, etc. of Olive Realty, Yashowardhan Promoters, Corolla Realty and Jasmine Hospitality.

Note 16 - Impairment

Having regards to the future business plans of Kolte Patil Redevelopment Private Limited (formerly known as PNP Retail Private Limited), Regenesis Project Management Company Private Limited and Lilac Hospitality Private Limited the company has recognized a provision for impairment loss of RS.1,200 Lakhs, RS.443 Lakhs and RS.50 Lakhs respectively.

Note 17 - Disclosure on Specified Bank Notes (SBN)

During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 30 March 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from 8 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the notification is given below:

*For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November 2016.

Note 18

The financial statements for the year ended 31 March 2017 were approved by the Board of Directors and authorised for issue on 30 May 2017.

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Mar 31, 2016

3A Terms, rights & restrictions attached to equity shares

The Company has only one class of equity shares having a face value of H10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Company''s residual assets. The equity shares are entitled to receive dividend was declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

3D The Company declares and pays dividend in Indian Rupees. A final dividend of H1.50 per share has been recommended by the Board of Directors in their meeting held on 28 May 2016, for the financial year 2015-2016, subject to the approval of shareholders in the ensuing Annual General Meeting. The total dividend appropriation for the year ended 31 March 2016 amounted to RS,1,141 lakhs including Corporate Dividend Distribution Tax of RS,4 lakhs (Previous year RS,1,825 lakhs including Corporate Dividend Distribution Tax of RS,309 lakhs).

Security:

The NCDs shall be secured by an exclusive first ranking charge in favour of the Debenture Trustee (on behalf of the NCD holders) over:

1) Charge by way of Mortgage over land and Project Assets of Jazz 2 located at Pimple Nilakh to which clear and marketable title is held by Issuer.

2) Charge on all Cash flows and Receivables pertaining to the Project ("Receivables”).

3) Charge on the Escrow Account for the Project.

4) Minimum asset cover of 1.50 times the total principal amount of the NCDs outstanding and aggregate interest accrued but not paid on the NCDs as on the relevant date to be maintained , throughout the tenor of the NCDs

Repayment Terms : The non-convertible secured Debentures are redeemable at the end of 3 years from the Deemed Date of Allotment. The interest is to be paid out quarterly as per the Debenture Information Memorandum.

The Company has created Debenture Redemption Reserve of RS,1,166 lakhs pursuant to the Section 71(4) of the Companies Act, 2013

Security:

The NCDs shall be secured by an exclusive first ranking charge in favour of the Debenture Trustee (on behalf of the NCD holders) over:

1) Charge by way of Mortgage over land and Project Assets of Atria located at Pimple Nilakh to which clear and marketable title is held by Issuer.

2) Charge on all Cash flows and Receivables pertaining to the Project ("Receivables”).

3) Charge on the Escrow Account for the Project.

4) PMC Fees due from Corolla Realty Limited and pledge of Equity Shares of Corolla Realty Limited held by the Company. Repayment Terms: The NCDs Series III are redeemable in six (6) monthly installments from 25th to 30th month from the date of allotment. The interest is to be paid out half yearly as per the Debenture Information Memorandum.

The Company has created Debenture Redemption Reserve of RS,1,100 lakhs pursuant to the Section 71(4) of the Companies Act, 2013.

ii) Term Loan from Banks :

a) IDBI Loan Against property (Sanctioned RS,1,000 lakhs): Outstanding Balance - Nil (PY - RS,824 lakhs)

Primary Security: Office No 101-B,102,105D,106,107AB,112C,201-203-204-205-206-207-208,First & Second Floor, City Point S.no 347B, 347A, Hissa No 3C/1A/1, 348A 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.

Collateral Security: 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 Rate of Interest : BBR Plus 525bps (i.e.effective 15.50% p.a.)

During the year, the term loan has been repaid.

b) IDBI Project Term Loan - 24 K Glitterati (Sanctioned RS,2,500 lakRs,s): Outstanding Balance - Nil (PY - RS,2,226 lakhs)

Primary Security: Mortgage of land at survey no 14 Hissa No 14/3/1/1, 14/4/1, 14/5/12 to 4 admeasuring 34400 sq. mtr. located at Pimple Nilakh in Pune.

Collateral Security: 1) Extension of Regd. mortgage of boat club Road Land, Final Plot no 188 S.no 347B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A total area 113883 Sq Ft. at Pune 2)Office No.101B, 102, 105D, 106, 107AB, 112C, 201-202203-204-205-206-207-208, 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 -01 "

The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the Company.

Rate of Interest : BBR Plus 325 bps (effective 13.50% p.a.)

During the year, the term loan has been repaid.

c) Vijaya Bank Construction Finance - City Bay (Sanctioned RS,2,000 lakhs): Outstanding Balance - Nil (PY - H1,929 lakhs)

Security : Exclusive Charge by way of equitable Mortgage on proposed sixth, seventh, eighth and ninth floor admeasuring 318,421 sq.ft. of proposed Building, City Bay.

Rate of Interest : Base Rate 2.75% 0.25% p.a.(floating) (i.e. 13.45% p.a. at present)

During the year, the term loan has been repaid.

d) State Bank of India Projects Term Loan - Ragga - Bangalore (Sanctioned RS,4,300 lakhs): Outstanding Balance - Nil (PY - RS,1,850 lakhs)

Primary Security: Land admeasuring 6 acres 29 Guntas i.e. 292,941 sq. ft. for phase I and II and buildings to be constructed at s.no 33, Kannur Village, Bidarahalli Hobli Nr Yelakhanka, Bangalore East Taluka.

Collateral Security : land admeasuring 5,400 sq. ft. and house property (basement g 2 admeasuring 9200 sq.ft. built up)at No 978 (amalgamation of 978 &979) HAL 2nd stage indiranagar Bangalore. Prime: Negative lien on unsold flats. The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Vandana

Patil, Directors of the the Company.

Rate of Interest : Base Rate 9.75% Spread 3.75% (i.e. 13.50%)

During the year, the term loan has been repaid.

e) Axis Bank Project term Loan (Sanctioned RS,1000 lakhs) : Outstanding - Nil (PY - RS,287 Lakhs)

Primary Security: Excusive registered mortgage of land Development agreement located at S no. 76 to 88 (P) and 91(p) admg 74321.81 Sqmtr located at Bhavdhan Pune (including proposed building constructed thereon and other assets associated to the project.

Collateral Security: All receivable from the project including sale proceed, Security deposit,any other payment and termination repayment should be routed through a designated Account in Axis Bank Limited. The bank to have lien on the account.

Rate of Interest : Basic rates Plus 3.00% i.e. currently13.25% P.A.payble at monthly interval.

During the year, the term loan has been repaid.

f) Karur Vaishya Bank Project term Loan (Sanctioned RS,5000 lakhs) : Outstanding - RS,2,000 Lakhs (PY - Nil)

Primary Security :- Fresh E M Charge on Developers Share of Land and Property under development at Sy.No. 71 of Horamavu Agara Village, KR Puram, Hobli, Bangalore East Taluk admeasuring 7 acres 39 guntas valued at H135.00 Crore as per B.M''s estimates.

Collateral Security : Fresh E.M Charge on Vacant Land situated at No. 53/1, Next to Jhon Flower, Koramangala 3rd Block, Koramangala, Bangalore admeasuring 58500 Sq.Ft. standing in the name of Ankit Enterprises (Group concern) valued RS,76.00 Crore as per B.M Estimates.

Rate of Interest : Basic rates Plus 2.5% i.e. currently 13.50% P.A. payable at monthly interval.

Repayment Terms : Repayment to start from December 2016 . 5 Quarterly equal installments. Holiday Period up to November 2016. Door to Door Tenor 30 months.

iii) Term Loan from others :

a) Capital First Limited - (Sanctioned RS,7,500 lakhs): Outstanding Balance - Nil (PY - RS,3,071 Lakhs)

Security : Exclusive Charge on the escrow on all the receivable credited to KPDL after payment is made to the respective construction finance lender from Glitterati Project. Exclusive charge by way of Mortgage of all unsold projects assets and exclusive mortgage on land, hypothecation over all the project receivable and inventory of giga residency Projects. Escrow of all projects cash flow accruing from sale of projects, including but not limited to deposits/ rentals/sale proceeds/ any other receipts of any nature in such form and manner as may be required by the lender from the projects mentioned above till our facility is fully repaid.

Rate of Interest : 18% p.a. payable quarterly fixed for entire term of the facility.

During the year, the term loan has been repaid.

b) Aditya Birla Finance Limited - (Sanctioned RS,4500 lakhs): Outstanding Balance RS,1,439 Lakhs (PY - NIL)

Security: An exclusive charge by way of RMOE on the projects land bearing S. No. 33, admeasuring 205,821 square feet situated at Kannur Village, Bidarahalli Hobli, Bangalore east along with building and structures both, present and future. Exclusive Charge by way of RMOE on the Residential Property bearing survey no. 978 along with the structures situated at HAL II Stage Bangalore, Bangalore Mahanagar Palike Ward No 72 totally measuring east to west 90 ft. and north to south 60 all measuring 5400 sq. ft., comprising of basement, Ground floor plus two floors with a built up area of 9247 sq. ft., together with all rights.

Exclusive charge by way of hypothecation of the scheduled receivable (both sold and unsold) of Projects Raaga Phase I and

II under the documents entered into with customers by borrower, all insurance proceeds both present and future.

An Exclusive charge by way of hypothecation on Escrow Account I and Escrow Account ll, all monies credited / deposited therein and all investments in respect thereof.

Rate of Interest : 13.75% p.a., interest to be paid monthly.

Repayment Terms : Repayment Terms: Rupee Term Loan I of RS,15 crores in 18 monthly installments. The first of such installment shall fall due after 18th month from the date of 1st disbursement.

Rupee Term Loan II of RS,30 crores in 18 monthly installments. The first of such installment shall fall due after 24th month from the date of 1st disbursement.

c) Aditya Birla Finance Limited - (Sanctioned RS,1,500 lakhs): Outstanding Balance RS,1,375 Lakhs (PY - NIL)

Primary: All that Piece and parcel of premises bearing office Nos. 15 & 17 situated on 1st Floor, Office Nos. 04, 05, 17 situated on 2nd floor, Office Nos. 04, 05 & 17 situated on 3rd floor and Restaurant Nos. 01, 02 & 03 situated on 4th floor in building City Center situated at land bearing S No. 138/1 at village Hinjewadi, within registration district pune, Taluka -Mulshi; together with all buildings, Structures constructed or to be constructed thereon, both present and future and plant

& machinery, fixture to be installed.

All that of retained offices bearing No. 403,404,409A & 411 on 4th floor, office no. 405, 509B, 511 & 512 on 5th Floor in City Mall Building bearing plot no. 01, S No. 132-B, Hissa No. 1 (CTS No. 2760) of Bhamburda Pune situated at University Road, Pune; together with all buildings, Structures constructed or to be constructed thereon, both present and future and plant & machinery, fixture to be installed

Rate of Interest: Facility 11.50% P.a. floating which is linked to ABFL.

Repayment terms: 12 equal quarterly installments

iv) Vehicle Loans: Outstanding Balance RS,98 lakhs (PY - RS,234 lakhs)

Security: All the Vehicle loans are secured by the respective vehicles only.

Rate of Interest : The Rate of Loans are between 10 to 18%

1) State Bank of India (Sanctioned RS,15,000 lakhs): Outstanding - RS,11,467 Lakhs (PY - NIL)

Primary security:

1. All pieces and parcel of Land Bering Survey Nos. 1) 131/1 (part)-00H05 Ares, 2) 131/5-(part)-00H 49.69 Ares,

3)131/2 3 4 6/1 (part)-00H 16.40 Ares, 4)131/2 3 4 6/2 (part)-1H 63.40 Ares, 5)131/2 3 4 6/3 (part)-1H 53.35 Ares, 6)131/2 3 4 6/4 (part)-00H 16.67 Ares, 7)131/2 3 4 6/5 (part)-00H 27.80 Ares 31/2 3 4 6/6(part)-00H 49.40 Ares, 9) 131/7/1 (part)-00H 46.08 Ares which are totally & collectively ad measuring 03 H 27.79 Ares, i.e. 32779 Sq. Meters at village Wakad, within the limits of Pimpri Chinchwad Municipal Corporation and within the jurisdiction of Taluka Mulshi, District.

2. Present and future goods, book debts and all other movable assets.

3. Offices no. 101B, 102, 106, 107AB, 112C, 201 to 207 at City Point, Dhole Patil Road, Pune and Open land admeasuring 29,593 sq. mtrs. Bearing S. No. 347-B, 347-A/3C/1A/1, 348A/1/1 and 348A/1/2A and also bearing final plot no. 188, at Boat Club road and 6th, 7th, 8th Floors of City Bay, Dhole Patil Road, Pune.

Rate of Interest: 11.30% p.a. with monthly rest.

Repayment Terms: The Fund based loan amount of RS,15,000 Lak s sanctioned is available for a period of 35 months with annual review when it may be cancelled depending upon the conduct and utilization of advances. The repayment will start from March 2016.

2) Axis Bank : Nil (PY - RS,1977 Lakhs)

Primary: Exclusive first hypotication charge on Current assets (construction Material WIP and receivables) of all the real estate projects of the company present and future excluding the project for which the company has availed project specific funding from any other bank.

Collaterial :Exclusive registered mortgage of land located at S.no. 171/1and 171/2and 172 1/2 admeasuring 9460 sq mtr at tal Mulshi, Wakad Pune in the name of Bouvardia Develoers LLP (group entity of KPDL).Extension of charge on the Commercial premises Showroom no 6 on the Ground floor of Building Delta Giga Space admeasuring 5300 sq ft standing in the name of the Company .

Interim addition security : Exclusive mortgage of property at unit nos 12,13, 30 at Biz Bay project in the in the name of the company admeasuring 3750 sq ft of salable area.

Repayment Terms: On demand

3) IDBI Bank - Overdraft Facility

Security - Bank Fixed Deposit Rate of Interest : Bank FD plus 1.5%

*in the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof.

**The Company does not expect any outflow of resources in respect of the Guarantees issued.

NOTE 33 - EMPLOYEE BENEFITS

The details of employee benefits as required under Accounting Standard 15 ''Employee Benefits'' is given below

(A) Defined Contribution Plan:

Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans (Provident funds) is RS,205 lakhs (Previous Year - RS,167 lakhs)

(B) Defined benefit plan:

Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.

Disclosure as required under Accounting Standard - 15 (Revised) on "Employee Benefits” in respect of defined benefit plan is as under:

NOTE 4 - SEGMENT INFORMATION

The Company is predominantly engaged in Real Estate. The operations of the company do not qualify for reporting as business segments as per the criteria set out under Accounting Standard 17 (AS-17) on "Segment Reporting”. The Company is operating in India hence there is no reportable geographic segment. Accordingly no disclosure is required under AS-17.

NOTE 5 - OPERATING LEASES Where the Company is Lessee:

The Company has entered into operating lease arrangements for certain facilities and office premises. The leases are non-cancellable and range over a period of 2 years to 5 years and may be renewed for a further period based on mutual agreement of the parties. The lease agreements provide for an increase in the lease payments by 10% to 15% in few cases.

Rental expense for operating leases included in the Statement of Profit and Loss for the year is RS,372 lakhs [Previous Year - RS,492 Lakhs].

NOTE 6 - RELATED PARTY TRANSACTIONS A. List of related Parties

Related Parties (as identified by the Management) are classified as:

i. Subsidiary Companies

1 Kolte-Patil Real Estate Private Limited

2 Tuscan Real Estate Private Limited

3 Bellflower Properties Private Limited

4 Corolla Realty Limited (from 9 October 2015)

5 Snowflower Properties Private Limited

6 Jasmine Hospitality Private Limited

7 Olive Realty Private Limited

8 Sylvan Acres Realty Private Limited

9 Yashowardhan Promoters and Developers Private Limited

10 Regenesis Facility Management Company Private Limited

11 PNP Retail Private Limited

12 PNP Agrotech Private Limited

ii. Joint Ventures

Kolte-Patil I-Ven Townships (Pune) Limited

iii. Entities over which the Company, Subsidiary Companies or Key Management Personnel or their relatives, exercise significant influence

1 Ankit Enterprises

2 Kolte-Patil Homes

3 Kolte-Patil Enterprises

4 KP-Rachana Real Estate LLP

5 Sanjivani Integrated Township LLP

6 Bouvardia Developers LLP

7 KP-SK Project Management LLP

8 Carnation Landmarks LLP

NOTE 7 - RELATED PARTY TRANSACTIONS (contd.)

9 Regenesis Project Management LLP

10 Lilac Hospitality LLP

iv. Key Management Personnel

1. Mr. Rajesh Patil

2. Mr. Naresh Patil

3. Mr. Milind Kolte

4. Mrs. Sunita Kolte (Up to 30 June 2015)

5. Mrs. Vandana Patil (Up to 30 June 2015)

6. Mr. Sujay Kalele (Up to 31 December 2015)

7. Mrs. Shraddha Jain (up to 4 November 2015)

8. Mr. Atul Bohra (w.e.f. 5 November 2015)

v. Relatives of Key Management Personnel (with whom the Company had transactions)

1. Mr. Digambar Kolte

2. Mrs. Pramila Kolte

3. Mr. Pradeep Kolte

4. Mr. Sudhir Kolte

5. Mrs. Sunita Patil

6. Ms. Ankita Patil

7. Mr. Nirmal Kolte

NOTE 8 - DETAILS OF EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY

a) Gross amount required to be spend by the Company during the year is RS,121 lakhs (Previous Year RS,115 lakhs).

b) Amount spend during the year RS,29 lakhs (Previous year H Nil)

NOTE 9

Trade receivables outstanding as at the balance sheet date include amounts of RS,2,145 lakhs relating to dues from certain parties that are outstanding for more than 6 months from the date they became due. As the Company continues to have business relationship and arrangements with these parties, the Company is confident of recovering these dues in the normal course of business. All these dues are considered good for recovery and hence no provision is considered necessary.

NOTE 10 - DOMESTIC TRANSFER PRICING

The Company enters into "domestic transactions” with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 (''regulations''). The pricing of such domestic transactions will need to comply with the Arm''s length principle under the regulations. These regulations, inter alia, also required the maintenance of prescribed documents and information including furnishing a report from an accountant which is to be filed with the Income tax authorities.

The Company has undertaken necessary steps to comply with the regulations. The management is of the opinion that the domestic transactions are at arm''s length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

NOTE 11 - EMPLOYEE STOCK OPTION SCHEME a) Employee stock option scheme (ESOS 2014)

The ESOS was approved by Board of Directors of the Company on 13 August 2014 and thereafter by the shareholders on 13 September 2014. A Nomination and Remuneration committee comprising of independent directors of the company administers the ESOS plan. Each option carries with it the right to purchase one equity share of the company. The maximum exercise period is 3 year from the date of vesting.

c) The compensation cost of stock option granted to employees has been accounted by the Company using the intrinsic value method.

The guidance note on accounting of employee share based payments issued by the Institute of Chartered Accountants of India requires the disclosure of pro forma net results and EPS both basic & diluted, had the Company adopted the fair value method. Had the Company accounted these options under fair value method, amortizing the stock compensation expense thereon over the vesting period, the reported profit for the year ended 31 March 2016 would have been lower by RS,6 lakhs (Previous year: RS,43 lakhs) and Basic and diluted EPS would have been revised to RS,5.20 per share (Previous year RS,5.70 per share) and RS,5.20 per share (Previous year RS,5.69 per share) respectively as compared to RS,5.21 per share (Previous year RS,5.76 per share) and RS,5.21 per share (Previous year RS,5.75 per share) without such impact.

d) The fair value of the stock option is calculated through the use of option pricing models, requiring subjective assumptions which greatly affect the calculated values. The said fair value of the options have been calculated using Binomial lattice option pricing model, considering the expected weighted average term of the options to be 1 year from the date of vesting, an expected dividend rate of 2% on the underlying equity shares, a risk free rate in the range of 7.70% - 8.50% and weighted average volatility in the share price in the range of 69.36% - 71.14%. The expected volatility is based on historical volatility of the share price after eliminating the abnormal price fluctuations. The forfeiture/lapse estimated rate is based on historical employee turnover rates and future lapse expectations.

NOTE 12 -

On 11 December 2015, the Company has entered into an agreement with Metropolitan Lifespace Real Estate Developers Private Limited (MLREDPL), for redevelopment of Jay Vijay Society Co-operative Housing Society Limited in Vile Parle. The agreement defines the Company as "Developer” and MLREDPL as the "Co-Developer”

MLREDPL is contributing towards its share in the cost of the project, and will receive an identified area of the development as its return. This arrangement with the Co- Developer is a Jointly controlled operation.

NOTE 13 -

During the year, the Company has increased its stake in Corolla Realty Limited from 37% to 100%. Corolla Realty Limited is now a Wholly Owned Subsidiary of the Company.

NOTE 14 -

The Board of Directors have approved the scheme of amalgamation of four Wholly Owned Subsidiaries namely Olive Realty Private Limited, Yashowardhan Promoters and Developers Private Limited, Corolla Realty Limited and Jasmine Hospitality Private Limited with Kolte-Patil Developers Limited. The Company has received the No Objection Certificate for the scheme from National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The application has been filed in Hon''ble High Court, Mumbai and its approval is currently awaited. No effect of proposed amalgamation has been given in the financial statement for the year ended 31 March 2016 due to pending approval of the Hon''ble High Court, Mumbai.

NOTE 15 - PREVIOUS YEAR''S FIGURES

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2015

Note 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.

Note 2.

SHARE CAPITAL

Terms, rights & restrictions attached to equity shares

The Company has only one class of equity shares having a face value of Rs. 10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Company's residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company declares and pays dividend in Indian Rs. . A final dividend of Rs. 2.00 per share has been recommended by the Board of Directors in their meeting held on 26 May 2015, for the financial year 2014-15, subject to the approval of shareholder in the ensuing annual General meeting. The total dividend appropriation for the year ended 31 March 2015 amounted to Rs. 1,825 lakhs including Corporate Dividend Distribution Tax of Rs. 309 lakhs ( Previous year Rs. 2,697 lakhs including Corporate Dividend Distribution Tax of Rs. 348 lakhs).

NOTE 4

LONG TERM BORROWINGS

Security:

The NCDs shall be secured by an exclusive first ranking charge in favour of the Debenture Trustee (on behalf of the NCD holders) over:

1) Charge by way of Mortgage over land and Project Assets of Jazz 2 located at Pimple Nilakh to which clear and marketable title is held by Issuer.

2) Charge on all Cash flows and Receivables pertaining to the Project ("Receivables”).

3) Charge on the Escrow Account for the Project.

4) Minimum asset cover of 1.50 times the total principal amount of the NCDs outstanding and aggregate interest accrued but not paid on the NCDs as on the relevant date to be maintained , throughout the tenor of the NCDs

Repayment Terms : The non-convertible secured Debentures are redeemable at the end of 3 years from the Deemed Date of Allotment. The interest is to be paid out quarterly as per the Debenture Information Memorandum.

The Company has created Debenture Redemption Reserve of Rs. 583 lakhs pursuant to the Section 71(4) of the Companies Act, 2013

ii) Term Loan from Banks :

a) IDBI Loan Against property (Sanctioned Rs. 1,000 lakhs): Outstanding Balance Rs. 824 lakhs (PY - Rs. 1,000 lakhs)

Primary Security: Office No 101-B,102,105D,106,107AB,112C,201-203-204-205-206-207-208,First & Second Floor, City Point S.no 347B, 347A, Hissa No 3C/1A/1,348A 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.

Collateral Security: 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

Rate of Interest : BBR Plus 525 bps (i.e.effective 15.50% p.a. )

Repayment Terms : In 23 Quarterly Installments commencing from 1 April 2014 (22 instalments of Rs. 44 lakhs and last 23rd installment of Rs. 32 lakhs )

b) IDBI Project Term Loan - 24 K Glitterati (Sanctioned Rs. 2,500 lakhs): Outstanding Balance Rs. 2,226 lakhs (PY - Rs. 681 lakhs) Primary Security: Mortgage of land at survey no 14 Hissa No 14/3/1/1, 14/4/1, 14/5/12 to 4 admeasuring 34400 sq. mtr. located at Pimple Nilakh in Pune.

Collateral Security: 1) Extension of Regd. mortgage of boat club Road Land, Final Plot no 188 S.no 347B, 347/A 3C/1A/1, 348A/1/1 and 348A/1/2A total area 113883 Sq Ft. at Pune 2)Office No.101B, 102, 105D, 106, 107AB, 112C, 201-202- 203-204-205-206-207-208, 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 -01

The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, directors of the Company.

Rate of Interest : BBR Plus 325 bps (effective 13.50% p.a.)

Repayment Terms : Term Loan of Rs. 25 crores for the said project would be repayble in 9 quartely Installment commenced from 30 June 2015, the first 8 quarterly installment would consist of Rs. 2.80 crores and the last installment woud be of Rs. 2.60 crores. Hence the loan fully repaid maximum by 30th June 2017.

c) IDBI Project Term Loan - City Bay (Sanctioned Rs. 1,000 lakhs) : Outstanding Balance Nil (PY - Rs. 712 lakhs)

Primary Security: Floor No - Ground to 5th floor of Building named City Bay Situated at plot no 188, Tower 3 admeasuring 3606.55 Sq. Mtr.

Collateral Security: Extension of Regd. Mortgage of Boat Club Road Land Final Plot no 188, S.no 347-B, 347/A,3C/1A/1,348/1/1 and348A/1/2A, Total area113883 Sq. Ft. at Pune and Office No 101B,102,105D,106,107AB,11 2C,201-202-203-204-206-207-208, first and second floors city Point s.no 347B,347A Hissa No 3C/1A/1,348A Hissa No 1/1, 348A hissa No 1/2A, final Plot No 188CTS No 14(part)14/1,14/2 Dhole Patil Road Pune-01

Rate of Interest : BBR plus 300 bps (i.e. effective 13.25% p.a.)

Repayment Terms : 14 monthly installments commencing from 1 Dec 2013 and ending on January 2015.

d) Vijaya Bank Construction Finance - City Bay (Sanctioned Rs. 2,000 lakhs): Outstanding Balance Rs. 1,929 lakhs (PY - Rs. 1,499 lakhs)

Security : Exclusive Charge by way of equitable Mortgage on proposed sixth, seventh, eighth and ninth floor admeasuring 36149 sq.ft. of proposed Building, City Bay

Rate of Interest : Base Rate 2.75% 0.25% p.a.(floating ) (i.e. 13.45% p.a. at present)

Repayment Terms : The Principal is to be repaid in 72 equal monthly installments after a moratorium period of 24months from the date of first disbursement. Interest is to be serviced as and when debited.

e) State Bank of India Projects Term Loan - Raaga - Bangalore (Sanctioned Rs. 4,300 lakhs): Outstanding Balance Rs. 1,850 lakhs (PY - Rs. 2,849 lakhs)

Primary Security: Land admeasuring 6 acres 29 Guntas i.e. 292,941 sq. ft. for phase I and II and buildings to be constructed at s.no 33, Kannur Village, Bidarahalli Hobli Nr Yelakhanka, Bangalore East Taluka.

Collateral Security : land admeasuring 5,400 sq. ft. and house property (basement g 2 admeasuring 9200 sq.ft. built up)at No 978 (amalgamation of 978 &979 ) HAL 2nd stage indiranagar Bangalore. Prime: Negative lien on unsold flats.

The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Vandana Patil, directors of the the Company.

Rate of Interest : Base Rate 9.75% Spread 3.75% (i.e. 13.50%)

Repayment Terms : Quarter ending Dec 2014 Rs. 1,000 lakhs, March 2015 Rs. 1,000 lakhs, June 2015 Rs. 1,000 lakhs and Sept 15 Rs. 1,000 lakhs

f) Axis Bank Project term Loan (Sanctioned Rs. 1000 lakhs) : Outstanding - Rs. 287 Lakhs (PY - Rs. Nil)

Primary Security: Excusive registered mortgage of land Development agreemet located at S no. 76 to 88 (P) and 91(p)admg 74321.81 Sqmtr located at Bhavdhan Pune (including proposed building construced thereon and other assets associated to the project.

Collateral Security: All receivable from the project including sale proceed, Security deposit,any other payment and termination repayment should be ruted through a designated Account in Axis Bank Limited. The bank to have lien on the account.

Rate of Interest : Basic rates Plus 3.00% i.e. currently13.25% P.A.payble at monthly interval.

Repayment Terms : In 9 Quarterly Installments commencing immediately after moratorium of 1st Year from the date of 1st Disbursment.

iii) Term Loan from others:

a) Capital First Limited - (Sanctioned Rs. 7,500 lakhs): Outstanding Balance Rs. 3,071 lakhs (PY - Rs. 5,850 Lakhs)

Security : Exclusive Charge on the escrow on all the receivable credited to KPDL after payment is made to the respective construction finance lender from Glitterati Project. Exclusive charge by way of Mortgage of all unsold projects assets and exclusive mortgage on land, hypotication over all the project receivable and inventory of giga residency Projects. Escrow of all projects cash flow accruing from sale of projects, including but not limited to deposits/ rentals/sale proceeds/ any other receipts of any nature in such form and manner as may be required by the lender from the projects mentioned above till our facility is fully repaid.

Rate of Interest : 18% p.a. payable quarterly fixed for entire term of the facility

Repayment Terms : Repayment in 9 quarterly installments after the moratorium period of 12 months i.e. Repayment of loan shall commence from the last day of the 12th Month from drawdown; but subject to mandatory prepayment.

b) Aditya Birla Finance Limited - (Sanctioned Rs. 1,600 lakhs): Outstanding Balance Rs. Nil (PY - Rs. 1600 Lakhs)

Security: First and Exclusive charge by way of Registered MoE on the Commercial Property Alyssa (area approx. 19,600 sq.ft.) having New no 23 old No 28 Richmond Road, Richmond Town Bangalore - 560025 and hypothication of receivables from M/s Mirabilis Project.

The Company has provided personal guarantees of Mr. Naresh Patil and Mrs. Vandana Patil, Directors of the the Company.

Rate of Interest : Facility 14.50% P.a. floating which is linked to ABFL long term reference Rate (i.e. ABFL LTRR /-Margin) LTRR of ABFL at Present is 16.50 % P.a. Margin offered is -2%for Facility

Repayment Terms : Month -0 to Month 06 interest on the draw down amount to be serviced on monthly basis Month 07 to Month 48 installment of Rs. 48.80 lakhs

iv) Vehicle Loans: Outstanding Balance Rs. 234 lakhs ( PY - Rs. 247 lakhs)

Security: All the Vehicle loans are secured by the respective vehicles only.

Rate of Interest : The Rate of interest are between 10 to 18%

NOTE 5

SHORT TERM BORROWINGS

Axis Bank : Rs. 1,977 Lakhs (PY - Rs. 932 Lakhs)

Primary: Exclusive first hypotication charge on Current assets (construction Material WIP and receivables) of all the real estate projects of the company present and future excluding the project for which the company has availed project specific funding from any other bank.

Collaterial :Exclusive registered mortgage of land located at S.no. 171/1and 171/2and 172 1/2 admeasuring 9460 sq mtr at tal Mulshi, Wakad Pune in the name of Bouvardia Develoers LLP (group company of KPDL).Extension of charge on the Commercial premises Showroom no 6 on the Ground floor of Building Delta Giga Space admeasuring 5300 sq ft standing in the name of the Company .

Interim addition security : Exclusive mortgage of property at unit nos 12,13, 30 at Biz Bay project in the in the name of the company admeasuring 3,750 sq ft of salable area.

The Company has provided personal guarantees of Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the Company.

Repayment Terms: On demand

2 IDBI Bank - Overdraft Facility Security - Bank Fixed Deposit Rate of Interest : Bank FD plus 1.5%

NOTE 6

CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)

(Rs. in Lakhs)

Particulars Year ended Year ended 31 March 2014 31 March 2015

(a) Claims against the Company not acknowledged as debt * 2,133 2,152

(b) Income Tax matters (pending in Appeal) 936 2,142

(c) Guarantees issued by the Company on behalf of Subsidiary and joint venture 21,800 15,600 companies**(Refer Note 47)

(d) In relation to the Company's interests in joint ventures and its share in each of the 35 36 contingent liabilities which have been incurred jointly with other venturers *

Total 24,904 19,930

*in the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof.

**The Company does not expect any outflow of resources in respect of the Guarantees issued.

NOTE 7

EMPLOYEE BENEFITS

The details of employee benefits as required under Accounting Standard 15 'Employee Benefits' is given below

(A) Defined Contribution Plan:

Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans (Provident and other funds) is Rs. 167 lakhs (31 March 2014 - Rs. 106 lakhs)

(B) Defined benefit plan:

Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.

NOTE 8

SEGMENT INFORMATION

The Company is predominantly engaged in Real Estate. The operations of the company do not qualify for reporting as business segments as per the criteria set out under Accounting Standard 17 (AS-17) on "Segment Reporting”. The Company is operating in India hence there is no reportable geographic segment. Accordingly no disclosure is required under AS-17.

NOTE 9

OPERATING LEASES

Where the Company is Lessee:

The Company has entered into operating lease arrangements for certain facilities and office premises. The leases are non-cancellable and range over a period of 2 years to 5 years and may be renewed for a further period based on mutual agreement of the parties. The lease agreements provide for an increase in the lease payments by 10% to 15% in few cases.

Rental expense for operating leases included in the Statement of Profit and Loss for the year is Rs. 492 lakhs [Previous Year - Rs. 278 Lakhs].

Where the Company is Lessor:

The Company has entered into operating lease arrangements for certain surplus facilities. The lease is non-cancellable for a period of 1 year to 7 years and may be renewed for a further periods based on mutual agreement of the parties. The lease agreements provide for an increase in the lease receipts by 5% to 15% in few cases.

Rental income from operating leases included in the Statement of Profit and Loss for the year is Rs. 129 lakhs [Previous Year - Rs. 118 Lakhs].

NOTE 10

RELATED PARTY TRANSACTIONS

A. List of related Parties

Related Parties (as identified by the Management) are classified as:

i. Subsidiary Companies

1. Bellflower Properties Private Limited

2. Tuscan Real Estate Private Limited

3. Jasmine Hospitality Private Limited

4. Lilac Hospitality Private Limited

5. Olive Realty Private Limited

6. Regenesis Project Management Company Private Limited

7. Sylvan Acres Realty Private Limited

8. Yashowardhan Promoters and Developers Private Limited

9. Regenesis Facility Management Company Private Limited

10. Kolte-Patil Real Estate Private Limited

11. PNP Retail Private Limited

12. Snowflower Properties Private Limited

13. PNP Agrotech Private Limited

ii. Joint Ventures

1. Kolte-Patil I-Ven Townships (Pune) Limited

2. Corolla Realty Limited

iii. Key Management Personnel and relatives of Key Management Personnel

a. Key Management Personnel

1. Mr. Rajesh Patil

2. Mr. Naresh Patil

3. Mr. Milind Kolte

4. Mrs. Sunita Kolte

5. Mrs. Vandana Patil

6. Mr. Sujay Kalele

7. Mr. Vastant Gaikwad

8. Mrs. Shradhha Jain

b. Relatives of Key Management Personnel

1. Mrs. Sunita Patil

2. Ms. Ankita Patil

3. Mr. Digambar Kolte

4. Mrs. Pramila Kolte

5. Mr. Nirmal Kolte

6. Mr. Pradeep Kolte

iv. Entities over which the Company, Subsidiary Companies or key management personnel or their relatives, exercise

NOTE 11

significant influence

1. Ankit Enterprises

2. Kolte-Patil Homes

3. KP-Rachana Real Estate LLP

4. Sanjivani Integrated Township LLP

5. Bouvardia Developers LLP

6. Ruturang Developers LLP

7. KP-SK Management LLP

8. Kolte-Patil Enterprises

NOTE 12

DEPRECIATION RATES

During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from 1 April 2014, the Company has revised the estimated useful life of its assets to align the useful life with those specified in Schedule II.

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be nil as on 1 April 2014, and has adjusted an amount of Rs. 88 lakhs (net of deferred tax of Rs. 45 lakhs) against the opening Surplus balance in the Statement of Profit and Loss under Reserves and Surplus.

The depreciation expense in the Statement of Profit and Loss for the year is higher by Rs. 116 lakhs consequent to the change in the useful life of the assets.

NOTE 13

DETAILS OF CSR EXPENDITURE

a) Gross amount required to be spend by the Company during the year is Rs. 115 lakhs.

b) Amount spend during the year H Nil

NOTE 14

AGING OF RECEIVABLES

Trade receivables outstanding as at the balance sheet date include amounts of Rs. 2,340 lakhs relating to dues from certain parties that are outstanding for more than 6 months from the date they became due. As the Company continues to have business relationship and arrangements with these parties, the Company is confident of recovering these dues in the normal course of business. All these dues are considered good for recovery and hence no provision is considered necessary.

NOTE 15

DOMESTIC TRANSFER PRICING

The Company enters into "domestic transactions” with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 ('regulations'). The pricing of such domestic transactions will need to comply with the Arm's length principle under the regulations. These regulations, inter alia, also required the maintenance of prescribed documents and information including furnishing a report from an accountant which is to be filed with the Income tax authorities.

The Company has undertaken necessary steps to comply with the regulations. The management is of the opinion that the domestic transactions are at arm's length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

NOTE 16

EMPLOYEE STOCK OPTION SCHEME

a) Employee stock option scheme (ESOS 2014)

The ESOS was approved by Board of Directors of the Company on 13 August 2014 and thereafter by the shareholders on 13 September 2014. A Nomination and Remuneration committee comprising of independent directors of the company administers the ESOS plan. Each option carries with it the right to purchase one equity share of the company. 835,000 options have been granted at a predetermined rate of Rs. 141/- per share and 20,000 options are granted at Rs. 145/-per share. The maximum exercise period is 5 year from the date of vesting.

b) The compensation cost of stock option granted to employees has been accounted by the Company using the intrinsic value method.

The guidance note on accounting of employee share based payments issued by the Institute of Chartered Accountants of India requires the disclosure of pro forma net results and EPS both basic & diluted, had the Company adopted the fair value method. Had the Company accounted these options under fair value method, amortizing the stock compensation expense thereon over the vesting period, the reported profit for the year ended 31 March 2015 would have been lower by Rs. 43 lakhs (Previous year: Rs. Nil) and Basic and diluted EPS would have been revised to Rs. 5.70 per share (Previous year Rs. 6.12 per share) and Rs. 5.69 per share (Previous year Rs. 6.12 per share) respectively as compared to Rs. 5.76 per share (Previous year Rs. 6.12 per share) and Rs. 5.75 per share (Previous year Rs. 6.12 per share) without such impact.

c) The fair value of the stock option is calculated through the use of option pricing models, requiring subjective assumptions which greatly affect the calculated values. The said fair value of the options have been calculated using Binomial lattice option pricing model, considering the expected weighted average term of the options to be 1 year from the date of vesting, an expected dividend rate of 2% on the underlying equity shares, a risk free rate in the range of 7.70% - 8.50% and weighted average volatility in the share price in the range of 69.36% - 71.14%. The expected volatility is based on historical volatility of the share price after eliminating the abnormal price fluctuations. The forfeiture/lapse estimated rate is based on historical employee turnover rates and future lapse expectations.

NOTE 17

DISCLOSURES UNDER ACCOUNTING STANDARDS 14 - AMALGAMATION : DETAILS OF AMALGAMATION OF OAKWOOD IN THE PREVIOUS YEAR

In terms of the Scheme of Arrangement (the Scheme), Oakwoods Hospitality Private Limited, wholly owned subsidiary of the Company (referred to as 'Transferor Company'), was merged with the Company (Transferee Company) in the previous year. Upon which the undertaking and the entire business, including all assets and liabilities of the Transferor Company were transferred to and vested in the Transferee Company. The amalgamation was accounted under the pooling of interest method and the assets and liabilities transferred were recorded at their book value. Oakwoods Hospitality Private Limited was engaged in the business of establishing, developing, setting up, managing, furnishing, providing various types of hospitality services

The Scheme filed by the Company was approved by the Honorable High Courts of Judicature at Mumbai, with an appointed date of 1 April 2013 and an effective date of 18 March 2014 ('the Effective Date'), being the date on which all the requirements under the Companies Act, 1956 were completed.

The Transferor Company was a wholly owned subsidiary of the Transferee Company and its entire share capital was held by the Transferee Company in its own name and/or jointly with its nominees. Accordingly, there was no issue of shares of the Transferee Company to the shareholders (including those holding the shares as nominees of the Transferee Company) of the Transferor Company. Pursuant to the merger of the Transferor Company with the Transferee Company, the investment in the shares of the transferor Company, appearing in the books of account of the Transferee Company stand cancelled.

NOTE 18

PREVIOUS YEAR'S FIGURES

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification /

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Mar 31, 2014

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. Contingent liabilities (to the extent not provided for)

(Rs. in Lakhs)

Particulars As at As at 31 March 2014 31 March 2013

(a)Claims against the Company not acknowledged as debt * 2,152 1,960

(b) Income Tax matters (pending in Appeal) 2,142 3,296

(c) Guarantees issued by the Company on behalf of Subsidiary Com- 15,600 12,500 panies and Associates **

Total 19,8941 17,756

*in the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof.

**The Company does not expect any outflow of resources in respect of the Guarantees issued.

3. Domestic Transfer Pricing

The Company enters into "domestic transactions" with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 (''regulations''). The pricing of such domestic transactions will need to comply with the Arm''s length principle under the regulations. These regulations, inter alia, also required the maintenance of prescribed documents and information including furnishing a report from an accountant which is to be filed with the Income tax authorities.

The Company has undertaken necessary steps to comply with the regulations. The management is of the opinion that the domestic transactions are at arm''s length, and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

4. Disclosures under Accounting Standards 14 -Amalgamation : Details of Amalgamation of Oakwood

In terms of the Scheme of Arrangement (the Scheme), Oakwoods Hospitality Private Limited, wholly owned subsidiary of the Company (referred to as Transferor Company''), has been merged with the Company (Transferee Company), upon which the undertaking and the entire business, including all assets and liabilities of the Transferor Company stand transferred to and vested in the Transferee Company. The amalgamation has been accounted under the pooling of interest method and the assets and liabilities transferred have been recorded at their book value. Oakwoods Hospitality Private Limited was engaged in the business of establishing, developing, setting up, managing, furnishing, providing various types of hospitality services

The Scheme filed by the Company has been approved by the Hon''ble High Court of Judicature at Mumbai, with an appointed date of 1 April, 2013 and an effective date of 18th March, 2014 (''the Effective Date''), being the date on which all the requirements under the Companies Act, 1956 have been completed.

The Transferor Company is a wholly owned subsidiary of the Transferee Company and its entire share capital is held by the Transferee Company in its own name and/or jointly with its nominees. Accordingly, there is no issue of shares of the Transferee Company to the shareholders (including those holding the shares as nominees of the Transferee Company) of the Transferor Company. Pursuant to the merger of the Transferor Company with the Transferee Company, the investment in the shares of the transferor Company, appearing in the books of account of the Transferee Company is stand cancelled.

Details of assets and liabilities acquired on amalgamation and treatment of the difference between the net assets acquired and cost of investment in the Transferee Company by the Transferor Company:

5. Employee Benefits

The details of employee benefits as required under Accounting Standard 15 ''Employee Benefits'' is given below

(A) Defined Contribution Plan:

Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plans (Provident and other funds) is Rs. 106 lakhs (31 st March, 2013 Rs. 96 lakhs)

(B) Defined benefit plan:

Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum pay- ment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service.

Disclosure as required under Accounting Standard - 15 (Revised) on "Employee Benefits" in respect of defined benefit plan is as under:

iv. In respect of Funded Benefits with respect to gratuity, the fair value of Plan assets represents the amounts invested through "Insurer Managed Funds"

6. Segment Information

The Company is predominantly engaged in Real Estate. The operations of the company do not qualify for reporting as business segments as per the criteria set out under Accounting Standard 17 (AS-17) on "Segment Reporting". The Company is operating in India hence there is no reportable geographic segment. Accordingly no disclosure is required under AS-17.

7. Operating Leases

The Company has taken and given certain facilities and office premises under operating lease basis which include leases that are renewable on a yearly basis and cancellable at the Company''s option.

Rental income from operating leases included in the Statement of Profit and Loss for the year is Rs. 118 Lakhs [Previous Year-Rs. 61 Lakhs].

Rental expense for operating leases included in the Statement of Profit and Loss for the year is Rs. 278 Lakhs [Previous Year-126 Lakhs].

8. Earnings per share

The earnings considered in ascertaining the Company''s 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.

* Amount less than Rs. 1 lakh

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified

on the basis of information collected by the Management. This has been relied upon by the auditors.

Note: Figures in bracket relate to the previous year.

41. Related Party Transactions A. List of related Parties

Related Parties (as identified by the the Management) are Classified as : i. Subsidiary Companies

1. Bellflower Properties Private Limited

2. Tuscan Real Estate Private Limited

3. Jasmine Hospitality Private Limited

4. Lilac Hospitality Private Limited

5. Oakwoods Hospitality Private Limited(Merged with the Company w.e.f. 1st April, 2013)

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

14. PNP Agrotech Private Limited ii. Joint Ventures

1. Kolte-Patil l-Ven Townships (Pune) Limited

2. Corolla Realty Limited

iii. Key Management Personnels and Relatives of Key Management Personnels

a. Key Management Personnel

1. Mr. Rajesh Patil

2. Mr. Naresh Patil

3. Mr. Milind Kolte

4. Mrs. Sunita Kolte

5. Mrs. Vandana Patil

b. Relatives of Key Management Personnels

1. Mrs. Sunita Patil

2. Ms. Ankita Patil

3. Mr. Digambar Kolte

4. Mrs. Pramila Kolte

5. Mr. Nirmal Kolte

6. Mr. Pradeep Kolte

iv. Entities over which the Company, Subsidiary Companies or key management personnel or their relatives, exercise significant influence

1. Ankit Enterprises

2. Kolte-Patil Homes

3. KP-Rachana Real Estate LLP

4. Sanjivani Integrated Township LLP

5. Bouvardia Developers LLP

6. Green Olive Venture

7. Vibhu-KPDL Venture

8. Kolte-Patil Enterprises

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Mar 31, 2013

1. BACKGROUND

Kolte - Patil Developers Limited ("the Company") is a Company registered under the Companies Act, 1956. It is 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 2013, 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.

The Securities for the Term Loan are as

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

The Company has provided personal guarantees of Mr. Rajesh Patil and Mr. Milind Kolte, Directors of the Company.

Repayment Term - to be repaid in equal 81 monthly instalments commencing from January 2008 and ending on August, 2014.

ii IDBI - Bank term Loan (Term Loan Rs. 2102.00 lakhs.)

a Primary : Mortgage of land at Survey No. 14 Hissa No 14/3/1/1 to 4, 14/4/1, 14/5/1/2to4 admeasuring 34400 sq. mtr Located at Pimple Nilakh, in Pune. b Collateral: 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) Office No.101B, 102, 105D, 106, 107AB, 112C, 201-202-203-204-205-206-207-208, 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 -01

c. Personal Guarantees given by Directors: The Company has provided personal guarantees of Mr. Rajesh Patil, Mr Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the Company.

Repayment Term - to be repaid in 12 equal quarterly instalments commencing from December 1, 2011 and ending on September 1, 2014.

iii Vijaya Bank

(Term Loan Rs. 2000.00 lakhs.)

a. Proposed sixth, seventh, eighth and ninth floor admeasuring 318,421 sq. ft of the proposed building City Bay located at village, Sangamwadi, Tal. Haveli, Dist. Pune

Repayment Term - The Principal is to be paid in 72 equal instalment after a moratoriam period of 24 month from first disburesement.

iv Loan From SBI -

(Term Loan Rs. 4300.00 lakhs)

a Primary Security : Land (Adm 6 acers 29 gunthas i.e. 292941 sq. ft.) for phase I & II and buildings to be constructed at S. No. 33, Kannur Village, Bidarahalli Hobli Nr, Yelakhanka, Bangalore East Taluka b Collateral Security : Land adm 5400 sq ft and house property (Basement G 2adm 9200 built up) at No. 978 (amalgamation of 978&979),HAL 2nd stage Indiranagar Bangalore.

Prime: Negative lien on unsold flats. c The Company has provided personal guarantees of Mr. Rajesh Patil, Mr, Naresh Patil, Mr. Milind Kolte and Mrs. Vandana Patil, Directors of the Company.

Repayment Term - Quarter Ending - Dec 2014 - Rs. 10.00 Crs, March 2015 - Rs.10 Crs, June 2015-Rs. 10 crs & Sept 15- Rs.15.00 Crs

v Loan Against Property from IDBI Bank

a. Primary Security - Office No. 101B, 102, 105D, 106, 107AB, 112C, 201-202-203-204-205-206-207-208, 1st & 2nd floors, city point S. no. 347B, 347A, Hissa No. 3C/1A/1, 348A 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.

b. Collateral Security - 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 348/A/1/2A, total area 113883 sq.ft. at pune

Repayment Term - 23 quarterly installments commencing from 1st April, 2014.

vi Term Loan from IDBI Bank (Term Loan Rs. 1000 Lakhs)

a. Primary Security - Floor No. Fround to 5th Floor of Building named City Bay situated at land admeasuring 3606.55 sq.mtrs situated at plot no. 188, tower 3 named as city bay, dhole patil road pune 411001

b. Collateral Security - 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 348/A/1/2A, total area 113883 sq.ft. at pune

Repayment Term - 14 monthly installments commencing from 1st December 2013.

i IDBI Bank

(Nature of Credit Facility Cash Credit: Rs. 2000 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

c The Company has provided personal guarantees of Mr. Rajesh Patil, Mr Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the Company.

4. EARNINGS PER SHARE

The earnings per share is calculated in accordance with Accounting Standard 20 "Earnings Per Share" issued by The Institute of Chartered Accounts of India. The earnings considered in ascertaining the Company''s 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 2012-13, as there were no equity shares outstanding as on 31st March, 2013 and 31st March 2012.

5. CONTINGENT LIABILITIES

(Rs. In Lakhs)

Sr. Particulars 31.03.2013 31.03.2012 No.

1 Claims not Acknowledged as debts* 1,960.18 1,960.09

2 Guarantees issued by the Company on behalf of Subsidiary Companies 12,500.00 20,550.00 and Associates**

3 Income Tax Matters (Pending in Appeals) 3,295.94 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.

6. INVENTORIES

Inventory comprises of finished property and properties under construction (Work in Progress). Work In Progress comprises cost of land, development rights, TDR, Construction and development cost, cost of material, services and other overheads related to projects under construction.

7. 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.

8. 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.

9. Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

10. Interest amount debited in Profit and Loss Account is after considering interest received and other receipts.

11. Estimated amount of contract remaining to be executed on capital account and not provided for is NIL. (Previous Year NIL)

12. 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 2012-2013 there is only one reportable segment namely Real Estate Development.

13. 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 2013 on account of impairment in addition to the provision already made in the books.

14. 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.

15. 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''.

16. 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. 310.54 lakhs charged to Profit and Loss Account as IPO Expenses of the current year.

17. Last year''s figures have been regrouped, reclassified, re arranged wherever necessary.

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Mar 31, 2012

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 2012, 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.

i Of the Above Shares, 2,19,02,252 shares are allotted as fully paid by way of bonus Shares by capitalization of General Reserve and 2,88,72,185 Shares allotted as Right Shares on 8th December 2006 at a premium of Rs 18.18 each.

ii The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors in their meeting on 29th May, 2012, proposed a final dividend of Rs 1.60 per equity share. The Proposal is subject to the approval of shareholders at the Annual General meeting. The total dividend appropriation for the year ended 31st March, 2012 amounted to Rs 1,409.08 Lakhs including Corporate Dividend Tax of Rs 196.68 Lakhs.

During the year ended 31st March, 2011, the amount of per share dividend recognized as distributions to equity shareholders was Rs 1.60. The total dividend appropriation for the year ended 31st March, 2011 amounted to Rs 1,409.08 Lakhs including Corporate Dividend Tax of Rs196.68 Lakhs.

In the fiscal year 2006, the Company instituted the 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 780,000 Equity Shares to the employees. The Remuneration Committee administers the Employees Stock Option Scheme 2006 (ESOS) and options were granted in month of September 2006. The Company has allotted 2,28,277 shares till 31st March 2010. The ESOS outstanding at the beginning of 2010-11 was 551,723 shares. During the 2010-11, 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 and the remaining 2,58,068 shares lapsed.

iv The Company has only one class of shares referred to as equity shares having a par value of Rs 10/-. Each holder of equity shares is entitled to one vote per share.

The Securities for the Term Loan are as follows:

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 The Company has provided personal guarantees of Mr. Rajesh Patil and Mr. Milind Kolte, Directors of the Company.

Repayment Term - To be repaid in equal 81 monthly installments commencing from January 2008 and ending by August, 2014.

ii IDBI Bank Limited

(Term Loan Rs 3000.00 Lakhs.)

a Primary : Mortgage of land at Survey No. 14 Hissa No 14/3/1/1 to 4, 14/4/1, 14/5/1/2to4 admeasuring 34400 sq. mtr Located at Pimple Nilakh, in Pune.

b Collateral: 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) Office No.101B, 102, 105D, 106, 107AB, 112C, 201-202-203-204-205-206-207-208, 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 -01

c. Personal Guarantees given by Directors: The Company has provided personal guarantees of Mr. Rajesh Patil, Mr Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the Company. Repayment Term - to be repaid in 12 equal quarterly installments commencing from December 1, 2011 and ending on September 1, 2014.

iii Corporation Bank Ltd

(Term Loan Sanctioned Rs 500.00 Lakhs. Availed Rs 110.00 Lakhs)

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, Bangalore 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, Bangalore Project (as mentioned in Schedule A of Common Deed of Hypothecation of Movables/Assets/Debts dated 28.09.2010).

The amount of Loan outstanding as of 31st March 2011 was Rs 111 Lakhs and the same shown as current maturities of long term Debt under Current Liabilities. During the year 2011-12, the Company has repaid the outstanding amount.

The Securities for the Short Term Loan are as i IDBI Bank Limited

(Nature of Credit Facility Cash Credit: Rs 2500 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 c The Company has provided personal guarantees of Mr. Rajesh Patil, Mr Naresh Patil, Mr. Milind Kolte and Mrs. Sunita Kolte, Directors of the Company.

4. 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.

5. CONTINGENT LIABILITIES

(Rs.in Lakhs)

Sr. Particulars 31.03.2012 31.03.2011 No.

1 Claims not Acknowledged as debts* 1,960.09 382.00

2 Guarantees issued by the Company on behalf of Subsidiary 20,550.00 17,000.00 Companies and Associates**

3 Income Tax Matters (Pending in Appeals) 3,295.94 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.

6. INVENTORIES

Inventory comprises of finished property and properties under construction (Work in Progress). Work In Progress comprises cost of land, development rights, TDR, Construction and development cost, cost of material, services and other overheads related to projects under construction.

7. 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.

8. Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

9. Interest amount debited in Profit and Loss Account is after considering interest received and other receipts.

10. Estimated amount of contract remaining to be executed on capital account and not provided for is NIL (Previous Year NIL).

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, the Company is engaged in various segments namely Real Estate Development, Retail and Hospitality. However, in financial year 2011-2012 there is only one reportable segment namely Real Estate Development.

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 2012 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. 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'.

15. 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.

16. The Revised Schedule VI has become effective from 1 st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2011

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 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 –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.

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Mar 31, 2010

1. Events Occurring After Balance Sheet Date:

No significant events which could affect the financial position as on 31st March, 2010, 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 the current period, on account of errors or omissions in the preparation of financial statements for one or more periods except the following:- The Company has booked as expenditure related to the period September - 2008 to January - 2009 for Hyderabad office rent of Rs. 549 thousands.

3. Earnings Per Share:

The Earnings Per Shares is calculated in accordance with “Accounting Standard 20 - Earnings Per Share” issued by The Institute of Chartered Accounts of India. The earnings considered in ascertaining the Company’s 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.

4. Based on the information available with the Company, the amount payable to Micro and Small Medium Enterprises as on Balance sheet date is Rs. 106 thousands, out of which Rs. 77 thousands are paid by the Company. 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.

5. Details of Secured Loans And Security offered:

I. HDFC Bank Limited:

a. First Exclusive charge by way of assignment of rent receivables from office premises admeasuring about 62170 Sq. 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.

b. Additional Security given as all that consisting of office premises nos.301-A, 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 both present and future.

c. In addition to this personal guarantees of all Executive Directors.

II. 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.

III. IDBI Bank Limited :

(Nature of Credit Facility Cash Credit: Rs.25 Crores, Bank Guarantee: Rs. 5 Crores)

a. Primary Security: Hypothecation of Construction Material, WIP and receivables.

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 and 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.

IV. IDBI Bank Ltd:- (Term Loan Rs. 30.00 Crores.)

a. Hypothecation of Construction Material, WIP and receivables.

The Borrower’s entire stock of Raw materials, Semi Finished and finished goods, consumable stores & spares and such other movables including book debts, bills whether documentary or clean and outstanding monies receivables, property booking amount, deposit, payments etc. which are subject to Escrow Account pertaining to the residential projects viz. Glitterati 24K at Pimple Nilakh.

b. Collateral mortgage –

i. Land S.N. 14, Hissa No. 14/3/1/1/ to 4, 14/4/1, 14/5/1/2 to 4, admeasuring area 34400 sq. mtrs., located at Pimple Nilakh, Pune.

ii. Land S.N. 14, Hissa No. 17/1/1/2 to 3, and survey no. 13/1/2 to 4, admeasuring 27,660.13 sq.mtrs. located at Pimple Nilakh, Pune.

6. Related Party Transaction:

Related Party Disclosures as required by “Accounting Standard 18 - Related Party Disclosures”, 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

Key Management Personnel Director

Mr. Rajesh Patil, Mr. Naresh Patil, Mr. Milind Kolte, Mrs. Sunita Kolte

Key Management Personnel Director of Associates/ Enterprises

Mr. Harish Kumar Gurnani, Arora Holdings (Mauritius) Ltd.

Relatives of Key Management Personnel

Mr. Ketan Kolte, Ms. Ketki Kolte, Ms. Ankita Patil, Mr. Nirmal Kolte, Mr. Pradeep 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-Op. Housing Society Limited

Green Olive Venture,Vibhu-KPDL Venture

7. Contingent Liabilities:

a. Contingent Liabilities not provided for:

(Rs. In ‘000)

Particulars Amount

i) Disputed Direct Tax Liability

1) Income Tax Outstanding Demand pertaining to M/s. Ankit Enterprises in which Company is having 75% shares 50,157

2) Income tax-Deduction u/s 80IA (Refer below to point no.

c) 78,082

ii) Claims not Acknowledged as Debts

First Appeal No. 2951 of 2006 26,200

Total ( i + ii) 1,54,439

b. The Company has claimed deduction under Section 80-IA (4)(iii) of the Income Tax Act, 1961 in respect of the profit arising from the Information Technology Park – Giga Space. The total deduction claimed upto financial year ending 31.03.2010 is Rs. 705,109 thousands. As per the provisions of Section 80- IA(4)(iii), the industrial park should be in accordance with the Industrial Park Scheme framed and should also be notified by the Govt. under the said scheme. Accordingly, the Company has received the approval vide notification no. 10 F.N.178/63/2009-ITA-I dated 19th Feb. 2010 from Ministry of Finance, Department of Revenue, CBDT, under the said scheme. Moreover, the Company has complied with all the conditions of the scheme as well as Section 80-IA (4) (iii) and hence, is entitled to claim the deduction under the said section. Therefore, the Company has not made any provision in respect of tax on the profits of the Information Technology Park Giga Space.

c. In respect of its Information Technology Park Projects viz. E-Space located at Svy. No. 46/1, Vadgaon Sheri, Pune, the Company has claimed the deduction under Section 80-IA(4)(iii) amounting to Rs. 229,721 thousands up to March 2010. The Company had made an application under the Industrial Park Scheme, 2002 but the application was returned by the concerned Ministry. The Company has filed the Writ Petition in Bombay High Court dated 31.07.2009 contesting the rejection by the concerned authorities in respect of the application made by the Company. Should the outcome of the writ petition be unsuccessful, it is estimated that the aggregate provision for taxation would be short by Rs. 80,205 thousands.

8. In the opinion of the Board, Current Assets and Loans and Advances have a value on realization in the ordinary course of business that equals at least 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.

9 Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

10. Interest amount debited in Profit and Loss Account is after considering interest received and other receipts.

11. Estimated amounts of contract remaining to be executed on capital account and not provided for is NIL

12. Investment In Joint Venture

The Company’s 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. 25,000 thousands towards initial capital and has agreed to contribute further capital as and when needed for Joint Venture. The Company has contributed Rs. 1,165,83 thousands up to 31st March, 2010.

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. 1,37,640 thousands towards initial capital and has agreed to contribute further capital as and when needed for Joint Venture. The Company has contributed Rs. 1,92,553 thousands up to 31st March, 2010.

13. Segment Accounting:

Accounting Standards Interpretation (ASI) 20 Dt. 14.02.2004, issued by the Accounting Standard Board of Institute of Chartered Accountants of India, 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, Retails and Hospitality. However, in financial year 2009-10, there is only one reportable segment namely Real Estate Development.

14. In view of Accounting Standard required by “AS-28 - Impairment of Assets” issued by Institute of Chartered Accountants of India, the Company has reviewed its fixed assets and does not expect any loss as on 31st March, 2010 on account of impairment in addition to the provision already made in the books.

15. 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.

16. 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.

17. Contribution to Group Gratuity Scheme of LIC

In accordance with provision of “Accounting Standard (AS) – 15 (Revised-2005) Employee Benefits” 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’.

18. Keyman Insurance Policy

During the year, Company has paid Rs. 67 thousands under the Keyman Insurance Policy of Life Insurance Corporation of India for the following Directors.

1. Mr. Rajesh Patil

2. Mr. Milind Kolte

Premium paid during the year as per the scheme is absorbed under the head ‘Employee Cost’.

19. Employees Stock Option Scheme 2006 (ESOS)

In the fiscal year 2006, the Company introduced ESOS 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 the Employees Stock Option Scheme 2006 and options were granted in the month of September 2006.

During the year the Company has issued 1,10,144 equity shares of Rs. 10/- each at a premium of Rs.30/- per share to employee under Employees Stock Option Scheme 2006.

20. In the year 2007-08 ,the Company has incurred Rs. 2,32,907 thousands 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. 46,581 thousands charged to Profit and Loss Account as IPO Expenses for the current year.

21. Last year’s figures have been regrouped, reclassified and rearranged wherever necessary.