ORBIT CORPORATION LIMITED

from annul report:



operate in the financial hub of the country, Mumbai. The Government
is committed in its efforts to enhance the infrastructure of the city
to ensure that it becomes the International Finance hub not only for
the Asian region but globally.



In Mumbai the corporate offices of financial and producer services
companies are strongly concentrated in the southern tip of the
peninsula. Last few years have seen the emergence of new business
districts like Lower Parel, the earlier textile den and Bandra Kurla
Complex, one of the most preferred office spaces by the multinational
financial companies. This has also created the demand for quality
housing around these business districts to greater levels. The demand
for housing real estate in the areas we operate is led by quality, high
end lifestyle driven housing units.



During the year, your Company has expanded its project size to 16
projects which would result in development of total saleable area of
803575 SFT. The Company is currently executing 8 projects with a total
saleable area of 485075 SFT directly and 8 projects through its wholly
owned subsidiaries with a total saleable area of 318500 SFT. We also
have taken an initiative of providing the superior quality by way of
bringing the best practices and processes in the construction. In
addition to process driven improvement initiatives, we have also
started our Vendor Development program to develop products unique to
our specifications to provide superior quality of fittings in the homes
we build.



The size, in terms of total economic value of real estate development
activity, of the Indian real estate market is currently US$ 40-45bn
(5-6% of GDP) - residential (90-95% of the market), commercial (4-5%)
and organized retail (1%). Over next five years the growth are
estimated at a 20% CAGR, driven by 18-19% growth in residential real
estate, 55-60% in retail real estate and 20-22% in commercial real
estate.



PROJECTS



Estimated Free

Name of the Project Location Sale Area (sq.fts.)



Orbit Arya Napeansea Road 65,00

Hafeez Contractor House Lower Parel 2,26,200

Orbit Ambrosia Altamount Road 34,000

Orbit Plaza Bandra Kurla Complex 75,000

Gokuldas Devji Wadi Tardeo 14,375
Jensen Veneers New Breach Candy Road 10,500
Iqbal Manzil and Daruwala Chawl Lower Parel 25,000
Orbit Haven Napeansea Road 35,000







ACQUISITION OF PROPERTY FROM AMBUJA CEMENTS LIMITED

The Company achieved another milestone by acquiring through bid
process, a property i.e. land located at Kalina, Santacruz, Mumbai, one
of the prime locations of the Mumbai Megapolis, from Ambuja Cements
Limited. The aforesaid property has been acquired for a consideration
of Rs.333 crores. The Company has assigned the development rights in
respect of the said property in favour of a Special Purpose Vehicle
(SPV) i.e. an associate company Orbit Shelters Private Limited.
Necessary agreements and other relevant documents for the aforesaid
transaction were executed by the Company, Orbit Shelters Private
Limited and Ambuja Cements Limited, the Vendor of the said property
on 20th April 2007.

The said SPV at the nomination of the Company has acquired the land for
the purpose of developing the property, and selling or otherwise
exploiting the property and building(s) constructed thereon. Your
Company expects that buildings can be developed on the aforesaid
property for commercial use of at least 3,50,000 sq.ft.



AMALGAMATION OF WHOLLY OWNED SUBSIDIARIES WITH THE COMPANY:

Your Company is engaged in the business of Real Estate/Property
Development and is presently in the process of implementing a number of
prestigious residential/commercial real estate projects in Mumbai,
Maharashtra, through itself as well as its three wholly owned
Subsidiaries namely Orbit Constructions and Realtors Private Limited,
Orbit Buildcon and Realty Private Limited and Orbit Housing Private
Limited (wholly owned subsidiary of Orbit Buildcon and Realty Private
Limited).

The Company and its three wholly owned Subsidiaries belong to the
Orbit Group and are engaged in the similar businesses of real
estate/property development and share common market. Therefore to
facilitate economics in scale of operations through consolidation of
businesses, your Directors, after a careful review of all relevant
factors, have considered it prudent to amalgamate/merge the three
wholly owned subsidiary companies with the company. The proposed
amalgamation and resultant consolidation of the real estate businesses
will lead to consolidation of asset base and profitability of the
subsidiaries with the company thereby significantly enhancing the
stakeholders' perception and eventually resulting in enhancement of
shareholders' value through scale, integration of operations, enhanced
financial strength and flexibility and rationalization of
administrative and marketing costs.

The Company has already initiated actions for obtaining requisite
approvals for the Scheme of Amalgamation.





SUBSIDIARY COMPANIES

A statement pursuant to Section 212 of the Companies Act, 1956, setting
out the particulars of subsidiary companies namely, Orbit Constructions
& Realtors Private Limited, Orbit Buildcon & Realty Private Limited and
Orbit Housing Private Limited (wholly owned Subsidiary of Orbit
Buildcon & Realty Private Limited) is attached herewith and forms part
of this report.

Orbit Constructions and Realtors Private Limited

The gross turnover of the Company was Rs.48.78 Crores. The Company has
earned a Profit after Tax of Rs. 11.56 Crores.







PROJECTS

Synopsis of the projects in hand are as under:

Name of the Project Location Estimated Free Sale Area (sq.fts.)

Orbit Heights Tardeo Road 82,500
Orbit Eternia Lower Parel 25,000
Orbit Enclave Prathna Samaj 23,000
Orbit Grand I Lower Parel 24,000
Orbit Grand II Lower Parel 24,000
Orbit View Worli Sea Face 35,000

Orbit Buildcon and Realty Private Limited

The gross turnover of the Company was Rs.112.19 crores. The Company has
earned a profit after tax of Rs. 37.89 Crores.

Orbit Housing Private Limited

The gross turnover of the Company was approx Rs.1 lac. The Company has
earned a profit after tax of Rs.0.05 lac.

PROJECTS

Synopsis of the projects in hand are as under:

Name of the Project Location Estimated Free Sale Area (sq.fts.)

Villa Orb Napeansea Road 52,500
Mukund Mansion Napeansea Road 52,500




pujitaggarwal MD, Orbit Corporation, said the company is targeting sales of Rs 800 crore in FY08 while margins are seen at 35%.



so on an equity of 36.27 they could achive net profit of 280cr . eps of 77 .price targt for a six months
is 1550 rs (if p.e counts only 20)