Oberoi Realty Limited Since May 2014
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Chairman’s Message 02 Prole of our Board of Directors 04 Director’s Report 06 Management Discussion and Analysis 31 Corporate Governance 41 Business Responsibility Report 59 Financial Statements 72 ARCHITECTURAL INNOVATION, SUPERIOR EXECUTION AND FINANCIAL PRUDENCE MAKES 03 OBEROI REALTY ONE OF Decades plus rich experience THE LEADING REAL ESTATE BRANDS IN THE COUNTRY. Understanding emerging trends and evolving consumer behaviour has always been the source of our design philosophy and innovation. We aim to create self-sustaining ecosystem that offer a safe environment and fulfilling lifestyle, 42 thus taking care of the happiness quotient of its Completed projects occupants. At Oberoi Realty, we believe in at strategic locations pursuing excellence through customer centricity across the and perfection in every detail. Mumbai skyline Residential Commercial 45.31 Retail Million sq.ft. area under construction Social Infrastructure as on March 31, 2021 Hospitality At Oberoi Realty, our vision is to build contemporary and sustainable developments that will offer a better quality of life for our customers. 2 Annual Report 2020-21 Dear Shareholders, infrastructure, workspaces, shopping, dining and entertainment destinations. Furthermore, developers with high brand equity, We wish that you are safe, healthy and taking all precautions for financial prudence, proven track record of construction quality your wellbeing. and delivery saw a consolidation of demand in their favour. The FY21 started with the onset of Covid-19 pandemic which by now convergence of these changing consumer preferences, has truly transformed several aspects of our life. The challenging consolidation in the sector and low home loan interest rates situation made everyone more empathetic and sensitive towards ensured a stupendous sales performance in FY21 for the life and the world at large. Even though the pandemic led to a company. Customer’s comfort to deal with developers who have lockdown for almost six months during FY21, the crisis only made the financial stability will ensure that the market share for us stronger and smarter in managing our lives and our business in established players like us will continue to increase further. an uncertain environment. Such challenges always compel us to FY21 has been a year where we strengthened our position and innovate, take initiative and become more resilient for the future. focused on execution, growth and expanding horizons. Even Adapting to the difficult situation, we continued to work from during the pandemic all our residential projects received robust home and ensured all our stakeholder requirements were interest from across the globe. The new launches, at Goregaon addressed. Our employees were equipped with necessary tools and Borivali received remarkable response from homebuyers. We and infrastructure to handle all customer queries virtually. Our leveraged consumer insights to identify the emerging trends in technological solutions enabled our employees to ‘Work from buying behaviour post pandemic and accordingly designed Anywhere’ ensuring seamless collaboration among themselves spacious homes. We also added a multipurpose room that can be and our business partners. We also made sure that our labour set up as a dedicated Work From Home area. This additional force and security staff were provided with requisite essentials space was created to meet the new requirement of the regularly. All our sites have been following the safety guidelines homebuyers. since the pandemic, and we have been constantly updating them On our annuity portfolio we leased 1.1 million sq. ft. in Commerz thus offering our workforce a safe environment to function. For III, our upcoming commercial building at Oberoi Garden City, more transparency, efficiency and as a part of our environment Goregaon to a leading international financial services company initiatives we have been using some of the best industry software making it one of the largest office space transactions in India. Our to monitor the project progress, cost and manage resource retail business performed well and during the festive season the efficiently. To ensure the safety and wellbeing of the employees sales volume exceeded the pre-covid levels. We believe there is a and their families, the company concluded a vaccination drive for lot of potential for the real estate sector to grow. approximately 1700 individuals across the ORL group, Westin and Oberoi Mall. At Oberoi Realty, our vision is to build contemporary and sustainable developments that will offer a better quality of life for While the first half of FY21 was subdued because of the lockdown our customers. We are certain that our customer-centric constraints, however the initiatives taken by Central and State approach, strong corporate governance, and deep governments, RBI and other regulatory authorities offered great understanding of consumer behaviour will only make us more support which ensured that the second half made up for the whole robust and resilient. Technology will play a pivotal role in year. I would also like to thank all my shareholders, customers, enhancing customer experience in the post-covid era and we are and partners for their confidence in the brand and continuous well poised to adapt ourselves seamlessly. We believe success is support. It was very encouraging and helped us to continue our achieved by those who pursue perfection in every detail and never fight against the pandemic during these demanding situations. settle for anything less than excellence. The pandemic also led to a paradigm shift in consumer preferences and buying behaviour. It made people realise the Stay Positive, Stay Safe & Stay Healthy. importance of owning a home that takes care of all the needs and safety of every family member. This realisation shifted consumer preferences towards spacious homes and integrated residential Best Wishes, developments having an ecosystem of amenities, social Vikas Oberoi Chairman & Managing Director Annual Report 2020-21 3 Vikas Oberoi is the Chairman and Managing Director of Oberoi Realty Ltd. He is involved in the formulation of corporate strategy and management and concentrates on the growth and diversification plans of the Company. He has more than three decades of experience in the real estate industry and is the recipient of numerous awards and accolades for his thought leadership and contribution to the sector. He firmly believes in overall societal development and is passionate about uplifting the society. He is also an alumnus of Harvard Business School and is on their India Advising Board. Vikas Oberoi Chairman & Managing Director Ms. Bindu Oberoi has been on the Board of Directors at Oberoi Realty Ltd. since December 2006. She is a Commerce graduate from Mumbai University and is deeply involved in various design, landscaping and interior aspects of the projects developed. She is currently the Trustee and the Board Chair at Oberoi International School (OIS), a premiere International Baccalaureate (IB) school in Mumbai. Bindu Oberoi Non-Independent Non-Executive Director On the Board of Directors since September 2014, Sonny is based out of the US and is the CEO of BentallGreenOak, global real estate firm that seeks to create long-term value for its investors and clients, with approximately $63 billion of assets under management and operations in 15 countries around the world. Sonny is a graduate of Georgetown University with a BS degree in Finance, May 1990, and currently serves on the Board of Directors of the University. He also serves on the board of several organizations including: Teaching Matters, Room to Read and the Asia Society. He is a member of the Young Presidents Organization and an Adjunct Professor at Columbia University in the Master of Real Estate Program. Sonny was previously the Global Co-Head of Morgan Stanley's Real Estate Investing (MSREI) business and Karamjit Singh Kalsi President of the Morgan Stanley Real Estate Funds until 2009. Prior to managing MSREI globally, Sonny was (Sonny Kalsi) based in Asia where, beginning in late 1997 and through his tenure into 2006, Sonny and his team led the Independent, formation of Morgan Stanley's property business in Asia and built a leading real estate platform in the region. Non-Executive Director Sonny has also been cited in several publications for his profile in the real estate industry, including Private Equity Real Estate magazine as one of the “30 Most Influential” people in private equity real estate globally. Saumil Daru has been with the Company since 2002. He is the Director-Finance and a member of the board at Oberoi Realty Limited since May 2014. As the Chief Financial Officer of the Company he heads Finance, Accounts and Tax functions. He has a cumulative work experience of over 25 years. A graduate in Commerce from Mumbai University, he is also a qualified Chartered Accountant and has completed the Advanced Management Program from the Harvard Business School. Saumil Daru Non-Independent Executive Director 4 Annual Report 2020-21 Recognised amongst the top 50 tax professionals in the world, Tilokchand P. Ostwal has been on the Board of Directors since December 2007. He is fellow member of the ICAI and in practice for more than 40 years. He is a partner of T. P. Ostwal & Associates LLP and DTS & Associates LLP Chartered Accountants. He is a member of International Taxation Committee of Bombay Chartered Accountants’ Society (BCA) and Institute of Chartered Accountants of India and member of Taxation Committee of Indian Merchants’ Chamber (IMC). He was a member of the advisory group/committee set up by the Government of India for international taxation and transfer pricing. Besides, he served as the Vice-Chairman of the Executive Board of International Fiscal Association, Netherlands. He is a member of the United Nations group for developing the transfer pricing Tilokchand P. Ostwal manual and documentation for developing countries. He is a visiting professor at Vienna University, Austria. He is Independent, also the author of several publications on international taxation, transfer pricing, and Black Money Act 2015 of Non-Executive Director India.