The Annual Report 2010-11 - Brigade Group

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delays in obtaining approvals, permissions etc from theauthorities which results in delays in launching projects.A central regulatory authority, particularly at the State level,is required immediately.Constraints of funds: Bank Credit is a major source offunding for real estate players and more so for the smallerdevelopers. During a financial crisis, banks grow wary oflending to developers who are straddled with a high-costland bank amid declining property prices and sales.Legal: The lack of transparency and no centralised systemto access information makes it difficult to verify the clear titleof land.Human Resources: Human Resources of quality are alwaysa limitation in this sector, especially when very large scaleprojects are being launched.The company has adequate and appropriate systems inplace to ensure that the impact of these risks is minimisedand interests of the Company are protected.Internal Control Systems and their AdequacyThe Company has adequate internal control systems whichare commensurate with the size and nature of its business.The system is supported by documented policies, guidelinesand procedures to monitor business and operational performance,which are aimed at ensuring business integrity andpromoting operational efficiency.Company has an Internal Audit Department as well as anindependent audit firm which conducts periodic audits toensure adequacy of the internal control systems, adherenceto management policies and compliance with applicablelaws and regulations. Their scope of work includes internalcontrols on accounting, efficiency and economy of operations.The internal auditors present to the audit committeethe findings of their audit, recommend best practices andreport on the status of implementation of their recommendations.The Audit Committee and Board reviews on a continuousbasis the efficiency and effectiveness of the internal controlsbased on the reports from the internal audit team as well asthe Internal Auditors.Operational PerformanceThe performance of the Company has been encouraging.A total of 6 projects were completed and delivered duringthe year.A total of 0.67 million square feet was sold in the residentialand 0.98 million square feet have been sold / leased in theCommercial space.Sheraton Bangalore Hotel at Brigade Gateway enclave wascompleted and operations have commenced during theyear.The occupation at the World Trade Center Bangalore officesat Brigade Gateway has commenced and the leasing isencouraging. Substantial portion of the World Trade Centerwould be leased in the financial year 2011-12.Company is proposing to launch around 10 million squarefeet in the financial year 2011-12 across residential,commercial and hospitality segments out of a total of 31million sft of projects lined up.Financial PerformanceTurnover: The turnover of the Company has increasedfrom Rs 36,259.08 lakhs in the financial year 2009-10 toRs 45,746.63 lakhs in the financial year 2010-11, an increaseby 26.16%.Equity Share Capital: The equity share capital of theCompany as on 31st March, 2011 stood at Rs 11,225.19lakhs. There is no change in the Share capital of theCompany as compared with the previous financial year.Debt Equity: The debt equity ratio of the Company as on 31stMarch, 2011 is at 0.69:1 as against 0.64:1 in the previousfinancial year.Interest & Financial Charges: Interest & Financial Chargesfor the financial year 2010-11 is Rs 1,678.69 lakhs ascompared to Rs 887.49 lakhs in the previous year, anincrease by 89.15%. The increase is primarily due to theadditional borrowings made by the Company.EBITDA: EBITDA margin for the financial year 2010-11 stoodat 39.49% as compared to 24.98% for the previous financialyear, an increase by 58.09%Net Profit: Net profit available for appropriation for theyear 2010-11 stood at Rs. 11,927.56 lakhs as comparedto Rs. 4,622.30 lakhs in the previous year, an increase by158.04%.Dividend: The Company has proposed a dividend ofRs 1.50 (15%) per equity share. The total payout on accountof dividend, including corporate dividend tax, aggregates toRs 1,963.43 lakhs.16FOR A BETTER QUALITY OF LIFE, UPGRADE TO BRIGADE
Earnings Per Share (EPS): The Company’s EarningsPer Share (EPS) during the current year is Rs. 10.63 ascompared to Rs 4.12 in the previous year. Higher EPS is dueto better realisation and monetisation of commercial assetsduring the year.Material Developments in Human ResourcesThe total number of employees of the Company as on 31stMarch, 2011 is 414 as compared to 368 employees in theprevious financial year.A significant initiative taken during the financial year wasthe launch of the Online Performance Management System.Evaluation of Technical & Behavioural competency wasintroduced, which would aid the identification of the trainingneeds of employees. A 5 point rating scale to evaluate theKey Result Areas (KRAs) and Key Performance Indicators(KPIs) was introduced. This is a more transparent processthat will reduce paper work and shorten the appraisalexercise.Imparting of training, both internal and external, is doneon a regular basis to sharpen the skills of employees at alllevels. The total training man-days per employee during thefinancial year was 50 man-hours.Company conducts lecture series from eminent personalitieson a regular basis to enrich the employees with theirknowledge and experience.Cautionary StatementStatement in the Management Discussion and AnalysisReport detailing the Company’s objectives, projections,estimates, expectations or predictions may be forwardlooking statements within the meaning of applicablesecurities laws and regulations. These statements beingbased on certain assumptions and expectation of futureevents, actual results could differ materially from thoseexpressed or implied. Important factors that could make adifference to the Company’s operations include economicconditions affecting domestic demand-supply conditions,finished goods prices, changes in government regulationsand tax regime etc. The Company assumes no responsibilityto publicly amend, modify or revise any forward-lookingstatements on the basis of subsequent developments, informationor events.Persons constituting Group coming within the definitionof Group for the purpose of Regulation 3(1)(e)(i) of theSecurities and Exchange Board of India (Substantial Acquisitionof Shares and Takeovers) Regulations, 1997, includethe following:Sl. No.Name of the Entity1 Mr M. R. Jaishankar2 Ms. Githa Shankar3 Ms. Pavitra Shankar4 Ms. Nirupa Shankar5 Brigade Hospitality Services Limited6 WTC Trades & Projects Private Limited7 Brigade Tetrarch Private Limited8 Brigade Infrastructure and Power Private Limited9 Brigade Estates & Projects Private Limited10 Brigade Properties Private Limited11 Mysore Holdings Private LimitedBRIGADE ENTERPRISES LIMITED ANNUAL REPORT 2010-11 17
Page 1 and 2: ANNUAL REPORT2010-11
Page 3: Look Ahead and Plan for the FutureC
Page 6 and 7: B R I G A D E C O M M E R C I A L
Page 8 and 9: Notice“RESOLVED THAT the benefits
Page 10 and 11: Annexure to the Noticeobligation ar
Page 12 and 13: Directors’ ReportToThe Members,Yo
Page 14 and 15: Brigade Tetrarch Private Limited (B
Page 16 and 17: Annexure “I”Conservation of Ene
Page 20 and 21: Corporate Governance ReportPhilosop
Page 22 and 23: Corporate Governance ReportThe term
Page 24 and 25: Corporate Governance Reporthave bee
Page 26 and 27: Corporate Governance Report16 Categ
Page 28 and 29: Standalone Financial Statements26FO
Page 30 and 31: Annexure to Auditors’ ReportAnnex
Page 32 and 33: Balance Sheet(Rupees in Lakhs)PARTI
Page 34 and 35: Cash Flow StatementPARTICULARSFor t
Page 36 and 37: Schedules forming part of Balance S
Page 42 and 43: Schedules forming part of Profit &
Page 45 and 46: iii.The present value of the obliga
Page 47 and 48: Collateral security of exclusive eq
Page 49 and 50: 2.9. Assets given under Operating L
Page 51 and 52: The above includes the applicable s
Page 53 and 54: Statement pursuant to Section 212 o
Page 55 and 56: Auditors’ Reporton Consolidated F
Page 57 and 58: Consolidated Profit & Loss Account(
Page 59 and 60: PARTICULARSFor the year ended2010-2
Page 61 and 62: (Rupees in Lakhs)PARTICULARSAs at31
Page 63 and 64: (Rupees in Lakhs)PARTICULARSAs at31
Page 65 and 66: Consolidated Schedules forming part
Page 67 and 68: Schedule for Notes to Accounts for
Page 69 and 70:
Depreciation is charged on a pro-ra
Page 71 and 72:
obligation as a result of past even
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The parent Company has given on non
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BRIGADE ENTERPRISES LIMITEDRegd off
Page 79 and 80:
B R I G A D E C O M M E R C I A L
Page 81 and 82:
B R I G A D E C S RTHE BRIGADE SCHO
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A continuing tradition of winning a
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The Annual Report 2010-11 - Brigade Group

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