7 œÜi>Ài

Ascendas India Trust (“a-iTrust” or the “Trust”) is a «Àœ«iÀÌÞÌÀÕÃÌÜ ˆV œÜ˜ÃwÛi/«>ÀŽÃˆ˜˜`ˆ>Û>Õi` >Ì-fnș“ˆˆœ˜>Ã>ÌΣ >ÀV Óä£{°7ˆÌ >Ç°x“ˆˆœ˜ õvÌ«œÀÌvœˆœëÀi>`>VÀœÃà >˜}>œÀi] i˜˜>ˆ>˜` Þ`iÀ>L>`]>‡ˆ/ÀÕÃ̈ÃÜi«œÃˆÌˆœ˜i`̜V>«ˆÌ>ˆÃiœ˜ Ì iv>ÃÌ}ÀœÜˆ˜}/ÜvÌÜ>Ài`iÛiœ«“i˜Ì>˜`LÕȘiÃà «ÀœViÃÃœÕÌÜÕÀVˆ˜}ˆ˜`ÕÃÌÀˆiȘ˜`ˆ>°

Our strategy is simple – to generate superior portfolio returns for unitholders by investing in business space in key Indian cities. Our parks provide space that is well suited to our tenants’ requirements in terms of quality and reliability. This differentiation helps us attract and retain prominent tenants that commit to long leases, thereby enhancing the security and stability of distributions to unitholders.

Our growth is founded on a prudent approach to capital management geared towards building a strong balance sheet while meeting the liquidity needs of the business.

1 IT 5parks

Hyderabad “ˆ Chennai Ç°x sq ft Bangalore ov competed yoor area

presence in India “ˆ Ó°™ sq ft ov potentia yoor area in land bank

345 tenants, 72,000 users

™Ç%

committed occupancy

Ó ˆ˜>˜Vˆ>ÀiۈiÜ

We have more than doubled our portfolio size …spurring revenue and net property income growth since listing

Floor area (‘m sq ft) Revenue & net property income (ࡩ ‘m)

5,774 6.9 6.9 7.5 5,540 106% 0.4 0.6 112% 4,899 revenue 5.9 0.5 4,182 4,007 4.8 4.8 3,783 4.7 1.2 0.1 2,801 109% 3.6 1.2 net property income

3.6 3.6 4.7 4.8 4.8 6.0 6.9 6.9 1,651 2,117 2,448 2,425 2,805 3,165 3,450

FY07/08 08/09 09/10 10/11 11/12 12/13 13/14 IPO Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14

Portfolio Development Acquisition

…but the appreciation of the Singapore dollar …affected our Singapore dollar DPU. against the Indian Rupee

S$/ࡩ exchange rate (indexed) Distribution per unit (S¢) (100% income payout ratio*)

200% 79% 180% 160% 140% 17% 120%

100% 6.1 7.5 7.6 6.6 6.0 5.2 5.1 80% 60% FY07/08 08/09 09/10 10/11 11/12 12/13 13/14 IPO

Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 *10% of distributable income was retained in FY12/13 and FY13/14.

Note: All information as at 31 March 2014 unless otherwise stated. All measurements of floor area are defined herein as “Super Built-up Area” or “SBA”, which is the sum of the floor area enclosed within the walls, the area occupied by the walls, and the common areas such as the lobbies, lift shafts, toilets and staircases of that property, and in respect of which rent is payable. The Indian Rupee and Singapore Dollar are defined herein as “INR/ࡩ” and “SGD/S$” respectively. Any discrepancy between individual amounts and total shown in this annual report is due to rounding. Î Contents

Overview Investment management Unitholders 01 Who we are 20 Development strategy 34 Investor relations 02 At a glance 22 Acquisition strategy 37 Unit price review 03 Financial review 132 Unitholding statement 05 Our business model 06 Note to unitholders Asset management Earnings 07 Q&A 24 Value proposition 26 Asset portfolio 38 Earnings review 27 Asset performance 57 a-iTrust financial statements Market factors 28 Asset review 112 APFT financial statements 08 Economic & market review 135 Market research reports Capital management Sustainability 31 Indicators & objectives 42 Sustainability report 48 Corporate governance report a-iTrust 31 Funding strategy 10 Trust structure 33 Cash management 33 Income hedging strategy 11 Risk management Other Information 12 Board of directors 33 Distribution policy 134 Glossary 16 Trustee-manager 179 Notice of AGM 18 Property manager 183 Proxy form 185 Corporate information

Why go online? Our corporate website contains detailed information about the Trust and is frequently updated as additional details become available. You can sign up for email alerts of our latest news and keep track of the latest events on the Event Calendar page.

Our corporate website www.a-itrust.com

{ Our business model

7 >Ì>vviVÌÃÕð

Market factors Indian economy IT industry Ofwce market

7 >ÌÜi`œ°

R s en it a-iTrust t & un Investment management t o s th ru e iT r - in a c n o m w e O Asset management

Capital management Unitholders Earnings

What sustains our business. DPU

Sustainability Financial stability Good governance Social responsibility Environmental awareness

Market factors Investment management Earnings The Indian economy, IT industry, We grow by developing our The bulk of our income and office property market are land bank, and buying stabilised comprises rental income earned key factors that influence the properties from third parties and from leasing our IT Parks. performance of our properties. our sponsor. Unitholders a-iTrust Asset management We are committed to timely a-iTrust is a business trust and We provide quality space and transparent communications has voluntarily adopted certain that is managed to with unitholders. regulations governing real international standards. estate investment trusts to Sustainability provide stable distributions Capital management Sustainability is a key goal in to unitholders. We aim to maintain financial all our business endeavours; flexibility while retaining our it embodies our desire to strong financial position as operate in an economically, we grow. socially and environmentally responsible manner.

x œÌi̜՘ˆÌ œ`iÀÃ

Excellence Award recognises of 13-15%2 in FY14/15. India as an 7iVœ“i̜œÕÀ properties which embody excellence offshoring destination remains cost ÀiÛ>“«i`>˜˜Õ> in all real estate disciplines. This competitive and the Indian Rupee’s accolade is a strong validation of our depreciation over the last 18 months Ài«œÀÌ]Ü ˆV ˆÃ strategy to design, build and maintain has made our customers’ operation in `iÈ}˜i`̜«ÀœÛˆ`i world class properties that exceed the India even more competitive. expectations of our customers. ޜÕÜˆÌ > œˆÃ̈V In January 2014, we officially opened œÛiÀۈiÜœvœÕÀ Our focus on product and service our latest building, ‘Aviator’ in differentiation clearly struck a chord Bangalore. The completion of this 0.6 ÃÌÀ>Ìi}Þ]LÕȘiÃà with customers; we achieved healthy million sq ft IT building increased our “œ`i]>˜`w˜>˜Vˆ> committed portfolio occupancy of portfolio floor area by close to 10% to 97% as at 31 March 2014, and 7.5 million sq ft. Aviator was fully ÃÌÀi˜}Ì >˜` concluded over 2.4 million sq ft1 of committed months ahead of its «iÀvœÀ“>˜Vi° leasing transactions in the financial completion, and is expected to house year ended 31 March 2014 about 6,000 employees when fully We have also introduced our first (“FY13/14”). Our robust operational operational. In line with our drive for sustainability report this year to performance translated into steady greater sustainability, the building was provide insights into how we are financial performance as FY13/14 awarded the LEED Platinum rating by growing our business in a revenue increased 4% to ࡩ5.8 billion, the Indian Green Building Council. responsible manner. while net property income rose 9% to Aviator is expected to boost the ࡩ3.5 billion compared to the previous income of a-iTrust in FY14/15 as we A key tenet of our management year. We, however, continued to face progressively hand over the space philosophy is to uphold good currency headwinds as the Singapore to customers. governance at all times. As we grow, Dollar appreciated significantly by 9% we ensure that our people uphold our against the Indian Rupee in FY13/14. In Hyderabad, we invested a total of 3 values, discipline and integrity. On that This led to a slight decline in a-iTrust’s ࡩ2.17 billion (S$48.6 million ) in aVance front, we are proud to be the recipient FY13/14 distribution per unit to 4.56 Business Hub Building 3 (“aVance 3”). of the Merit award in the 2013 Singapore cents. aVance 3 is a 0.7 million sq ft IT Singapore Corporate Governance building with leasing commitment of While distributions in Singapore Dollar 69% as at the end of March 2014. The

Award for the second year in a row. and Services Companies. of Software Association Source: National

terms have been affected by property has good quality tenants, and 2 We are also pleased to have won the unfavourable currency movements, is located next to aVance 1 & 2, which FIABCI Prix d' Excellence Award for a-iTrust remains well positioned to we acquired in 2012. We intend to buy two consecutive years. Our Chennai capitalise on the fast growing IT and over the property once it is property, International Tech Park offshoring trends. India’s IT and substantially leased out. Besides Chennai, is the second property business process outsourcing aVance 3, we will continue to assess within our portfolio to receive this industries are expected to sustain a attractive investment opportunities prestigious award. The FIABCI Prix d' brisk growth rate in export revenues from the market and our sponsor,

Ascendas Group. Aviator. Includes space leased in rate at the time of investment. Amount translated into Singapore Dollars using spot exchange 6 1 3 ¸"ÕÀvœVÕÃœ˜«Àœ`ÕVÌ>˜`ÃiÀۈVi`ˆvviÀi˜Ìˆ>̈œ˜Vi>ÀÞ ÃÌÀÕVŽ>V œÀ`ÜˆÌ VÕÃ̜“iÀÃÆÜi>V ˆiÛi` i>Ì Þ Vœ““ˆÌÌi`«œÀÌvœˆœœVVÕ«>˜VÞœv™Ç¯>Ã>ÌΣ >ÀV  Óä£{]>˜`Vœ˜VÕ`i`œÛiÀÓ°{“ˆˆœ˜õvÌœvi>Ș} ÌÀ>˜Ã>V̈œ˜Ãˆ˜Ì iw˜>˜Vˆ>Þi>Ài˜`i`Σ >ÀV Óä£{°¸

Q&A As we look ahead, we would like to What are the critical success factors for a-iTrust? thank our fellow directors and staff for We believe that delivering the right product to our customers is of utmost their hard work and commitment to importance. That means that we always keep in mind our customers’ a-iTrust. On behalf of the Board, we requirements when we design, build and maintain our IT Parks. By providing extend a warm welcome to our new an exciting environment filled with amenities and social activities, workers in director Mr Manohar Khiatani and our parks enjoy an international business lifestyle that is found nowhere else. CEO-Designate Mr Sanjeev Dasgupta. Lastly, we forge enduring relationships with our customers as they know that Sanjeev will succeed Jonathan as CEO they can always count on us to deliver reliable services. All of these factors of Ascendas Property Fund Trustee Pte combine to make our IT Parks stand out in the market. Ltd, the Trustee-Manager of a-iTrust, on 11 July 2014. Sanjeev, who has How do you manage the currency risk on distributable income? extensive experience in corporate We hedge a-iTrust’s distributable income as we do not speculate on currency finance and fund management, is well movements. We do this by buying forward contracts on a monthly basis placed to lead our management team. to hedge a substantial portion of income that we expect to repatriate to We also want to thank Ms Chong Siak Singapore. A total of six forward contracts are tied to each semi-annual Ching who has relinquished her Board repatriation of income from India to Singapore. This arrangement helps us position, for providing invaluable advice mitigate the risk of large currency fluctuations between the period that the and guidance to management. Lastly, income is earned and the date that the income is repatriated. we would like to thank you, our valued unitholders, for your continued support What are the biggest opportunities you see over the next year? for a-iTrust. We like the fact that India remains the world’s most dominant IT and business process outsourcing hub. While the weak Indian Rupee has affected our earnings, it lowers the cost of operating in India, and makes India an even more compelling investment proposition for companies across the globe. This gives us greater confidence when negotiating with tenants for the renewal of 1.8 million sq ft of leases expiring in FY14/15. We want to leverage our strong debt financing and equity fund raising capabilities to capitalise on our pipeline Philip Yeo Jonathan Yap of attractive investment opportunities from the market, our sponsor Ascendas Chairman CEO Group, and aVance Business Hub in Hyderabad.

Ç Vœ˜œ“ˆVE“>ÀŽiÌÀiۈiÜ Source: Cushman & Wakefield India Pvt. Ltd.

Indian economy India is the world's tenth largest economy at market The Indian Government has taken several key policy exchange rates and the third largest economy when initiatives to enhance the economic and investment adjusted for purchasing power parity1. The Indian economy landscape. In April 2013, the Government introduced has been one of the fastest growing economies in the revisions to the Special Economic Zones (“SEZ”) Act, world and has consistently demonstrated a positive Gross 2005 to boost the development of SEZs. These revisions Domestic Product (“GDP”) growth rate averaging just provided reductions in minimum land area requirement below 8% over the last ten years (FY03/04 to FY12/13 )2. with graded scaling, introduction of built-up area requirements for IT/ITES SEZs, and the introduction of India’s GDP has grown by 4.6%3 in the first three quarters an exit policy. of FY13/14. Service sector, a major contributor of India’s GDP has grown by 10.5% during the same period. The major policy reform introduced in FY13/14 was “The Manufacturing/Industrial sector is also witnessing positive Right to Fair Compensation and Transparency in Land growth. As per advance estimates from the Central Acquisition, Rehabilitation and Resettlement Act-2013 Statistical Organisation, India’s GDP growth for FY13/14 is (“LARR”). This bill is aimed at providing fair monetary expected to be 4.9%. compensation, rehabilitation and resettlement to both the land owners and people dependent on land, especially Inflation did not abate in FY13/14 even though tight rural land, by replacing the archaic Land Acquisition Act of monetary policy kept interest rates high, with the 1894. Other key policy reforms include the introduction consumer price index touching 11.2%4 in November of a new Companies Act in September 2013 (several 2013. As investor sentiments waned, the Indian Rupee sections of which have been implemented) and the depreciated to an all-time low of 68.45 against the US relaxation of FDI limits in 13 key sectors which will open Dollar in August 2013. However inflation has moderated up new investment avenues in the country. since November 2013 and came down to 25-month low of 8.1%6 in February 2014. Currency volatility has also There is optimism in terms of economic outlook in moderated and stabilised at current trading range of 60-62 FY14/15, as businesses are upbeat about the new and 48-50 against the US Dollar and Singapore Dollar government post the general election. Improving respectively in the last six months. international trade deficit, softening inflation and the stabilisation of currency are likely to bring positive The growth in exports and decline in imports led to a reinforcement to the economic outlook. However the contraction in trade deficit, which resulted in a reduction high interest rates, weak monsoons and inflation are of the Current Account Deficit (“CAD”) to US$31.1 billion7 very realistic concerns for the economy. (2.3% of GDP) in April-December 2013 from US$69.8 billion (5.2% of GDP) during the same period last year. While economic growth in FY13/14 has disappointed, India continues to attract considerable Foreign Direct Investment (“FDI”) with its large consumer market, growing urbanisation and important policy reforms. India was ranked 3rd most popular among global FDI destinations after China and US.

1 World Bank,2012 2 Planning Commission, Government of India 3 Central Statistics Office – Ministry of Statistics and Programme Implementation- 28 February 2014 4 Central Statistics Office (“CSO”) – Ministry of Statistics and Programme Implementation 5 Reserve Bank of India 6 Central Statistics Office – Ministry of Statistics and Programme Implementation- 15 April 2014 7 Reserve Bank of India – Press release on 5 March 2014 8 United Nations Conference on Trade and Development (“UNCTAD”) 8 Investment Climate Office Market Overview India remains a key investment destination for global Demand for commercial office space in India was investors with its availability of quality talent at highly stable during 2013. Gross absorption across 8 major competitive rates, rapidly developing infrastructure, cities in 2013 was 36.10 million sq ft, a drop of 0.5% and an enabling innovative environment. According compared to the 36.26 million sq ft absorption in to the Department of Industrial Policy and Promotion, 2012. This was largely due to lower fresh and between 2000 and 2013, India attracted cumulative expansion demand from companies in the current FDI inflow of US$311 billion (INR14.8 trillion), which economic conditions. represented a growth rate of 40.9% on a Compound While cities like Mumbai, National Capital Region Annual Growth Rate (“CAGR”) basis. ("NCR"), Kolkata and Ahmedabad witnessed lower level Private equity investments in real estate sector of gross absorption, Bangalore, Chennai, Hyderabad remained healthy in 2013 with large investments in pre- and Pune witnessed increase in gross absorption as leased office assets. Investments in office assets have compared to 2012. Bangalore witnessed the highest been concentrated in the cities of Bangalore and Pune. level of absorption of 8.44 million sq ft, followed by According to Cushman & Wakefield India research, Mumbai with 5.87 million sq ft. IT/ITES segment total investments by private equity funds in real estate continues to remain the largest segment of office for 2013 were approximately US$1.2 billion (INR 69.9 space in India. billion), an increase of 13% compared to 2012. Key suburban markets like Gurgaon in NCR, Malad and Goregaon in Mumbai witnessed large take up by occupiers, reflecting their long term growth strategy. IT/IT Enabled Services (“ITES”) Nearly 25-30% of the absorption comprise relocations Industry and/or consolidations, as many occupiers are The IT/ITES industry in India has become a increasingly leveraging on current market conditions to critical growth engine for the economy, contributing relocate to better quality, more efficient and cheaper substantially to increases in the GDP, urban employment office spaces in the suburbs and peripheral micro and exports. Both the Federal and State Governments markets across cities. have played a major role in positioning India as the IT/ Approximately 33.26 million sq ft of new office space ITES hub and a major outsourcing location in Asia. was added in 2013, registering a decline of 16.5% According to National Association of Software and compared to 2012. NCR witnessed highest supply Services Companies, India’s IT and business process of 8.3 million sq ft followed by Bangalore with management industries witnessed revenues of US$108 5.8 million sq ft. billion in FY12/13, which translates to nearly fivefold Vacancy across the office market increased by 2.5 growth in the last ten years. India’s IT exports have percentage points from 2012, reaching 23.4% at the achieved tremendous growth in the last ten years with end of 2013. CAGR of 21%, while domestic revenues increased by CAGR of 16% during the same period. As a proportion It is expected that given current trends, the absorption of India’s GDP, IT/ITES sector revenues have grown of commerical office space would remain stable. The more than six times from 1.2% in FY97/98 to 7.5% demand for new office space would be primarily driven in FY11/12. by IT/ITES and banking and finance sectors.

The industry’s vertical mix is well balanced across Please refer to the appendix for the full research report. several mature (such as banking and finance) and emerging sectors (such as retail and hospitality). The industry is expanding its scope of services to include complex process outsourcing functions such as knowledge, legal, games and design process outsourcing, among others. According to AT Kearney, India remains the most preferred destination for companies to offshore their IT and back-office operations on account of the cost advantage and the availability of skilled people.

9 Unitholders

18

9 Ascendas Property Fund Trustee Pte. Ltd. (the Trustee-Manager) 10

2 7

Singapore Special Purpose Vehicles Ascendas Property Fund (India) Pte. Ltd. Ascendas Property Fund (FDI) Pte. Ltd.

36 -ˆ˜}>«œÀi India Venture Capital Undertakings The Properties ("Indian entities") International Tech Park Bangalore Information % International Tech Technology Park Chennai Park Ltd. ™Ó°nownership1 4 Ascendas Information CyberPearl Technology Park % Chennai Ltd. 2 n™°äownership 5 The V

Cyber Pearl Information Technology % aVance Business Hub Park Pte. Ltd. £äownership ä

VITP Pte. Ltd. % 11 12 £äownership ä

Hyderabad % Ascendas Services Infratech Pvt. Ltd. £äownership ä (India) Pte. Ltd. (the Property Manager)

1 Holds units 4 Ownership 8 Distributions 2 100% ownership & shareholder's loan 5 Net property income 9 Trustee-Manager's fees 3 Ownership of ordinary shares & 6 Dividends on ordinary shares & CCPS, 10 Acts on behalf of unitholders/ provides Compulsory Convertible Preference proceeds from share buyback & management services Shares ("CCPS"); subscription to interests on FCCD 11 Property management fees Fully & Compulsorily Convertible 7 Dividends, interests & principal 12 Provides property management Debentures ("FCCD") repayment of shareholder's loan

services Ltd.. Park Technology of the Information 7.2% owns Board Area Development Karnataka Industrial Chennai Ltd.. Park Technology Information Ascendas of 11.0% Corporation Limited owns Nadu Industrial Development Tamil 1 2 £ä Trust structure Enhanced stability Tax-exempt distributions Trust management Although a-iTrust is structured as a Distributions made by a-iTrust, being a-iTrust is managed by Ascendas business trust, we have voluntarily a registered business trust, are Property Fund Trustee Pte. Ltd. adopted the following restrictions to exempt from Singapore income (“Trustee-Manager”), a wholly- enhance the stability of distributions tax in the hands of all unitholders, owned subsidiary of Ascendas to unitholders: i.e. regardless of whether they are Group. The Trustee-Manager has the corporates or individuals, foreign dual responsibility of safeguarding Adherence to safeguarding or local. Our distributions are free the interests of unitholders, and provisions on allowable of Singapore withholding tax or tax managing the business of a-iTrust. investments as defined under deducted at source. Monetary Authority of Singapore’s Ascendas Services (India) Private Property Fund Appendix; Limited (“Property Manager”) is Gearing ratio capped at 40% responsible for managing the daily without credit rating and 60% operation and maintenance of with credit rating; our properties. Property development activities limited to 20% of Trust property; and Minimum 90% of distributable income to be distributed.

Risk management It is our policy that a-iTrust a-iTrust accepts, as an organisational Enterprise-wide risk management implements a consistent risk philosophy, that: process is put in place to ensure management approach and potential risks are identified and key Management of risk is critical to methodology across its entities, controls to mitigate these risks are governance and forms part of recognising that risk management established and implemented. This management’s responsibilities is integral and essential to is continuously assessed, monitored at all levels within the Trust achieving our strategic goals and reviewed in light of changing (Board, senior management and, and business outcomes. circumstances and regulatory ultimately, all staff); requirements and realigned a-iTrust has minimal direct Guidance for discharge of these as required. employees. Ascendas Property Fund responsibilities will be provided Risk management information is Trustee Pte. Ltd. and Ascendas via key strategic and operational integrated throughout the different Services (India) Private Limited act risk management principles sections of our Annual Report and as the Trustee-Manager and Property applicable throughout the Trust; is highlighted with the logo. This Manager respectively. Hence and arrangement provides readers with the risk management processes External assistance may insights into the critical linkages and practices will be executed by be engaged periodically to between the different risks faced Ascendas Property Fund Trustee independently verify by the Trust, and the steps taken to Pte. Ltd., Ascendas Services (India) implementation of this mitigate them as we manage our Private Limited and such other policy and key risk daily operations. parties providing services to a-iTrust, management principles. for or on behalf of a-iTrust.

11 œ>À`œv`ˆÀiV̜ÀÃ

1 2 3

4 5 6

7 8 9

£Ó of Business Administration from Port of Singapore Authority, CEO of 1 Harvard University, USA, a Doctor the China-Singapore Suzhou Industrial Mr Philip Yeo Liat Kok of Science from Imperial College Park based in Shanghai, Group CEO Chairman & Independent Director London, an honorary Doctor of Letters of Neptune Orient Lines Limited, and of National University of Singapore Director of Singapore Dance Theatre Date of appointment: 11 June 2007 and an honorary Doctor of Law from Limited. He was also Chairman of Monash University of Australia. the National Computer Board. Mr In addition to being Chairman of Lim was a Member of Parliament the Board, Mr Philip Yeo, 67, is also Mr Yeo has received numerous from 1997 to 2006, and served in a the Chairman of the Nominating honours and awards including number of portfolios, most latterly, Committee, and Human Resource France's Ordre National du Merite Acting Minister for Information, and Remuneration Committee. (National Order of Merit), Indonesia's Communications and the Arts. Bintang Jasa Utama (the First Class Mr Yeo is currently the Chairman of Order of Service Award), Belgium's Mr Lim graduated with a Bachelor SPRING Singapore (a government National Order of the Crown, the of Engineering (First Class Honours) development agency with the CEO Lifetime Achievement Award, degree from the University of mission of nurturing Local Enterprises Asia Pacific IPA Awards 2003, the Melbourne, and obtained a Master in especially Small and Medium 11th Nikkei Asia Prize for Science, Business Administration degree from Enterprises) and Chairman of Technology and Innovation Award the National University of Singapore. Economic Development Innovations (2006), the Harvard Business School's Mr Lim also completed a Programme Singapore Pte Ltd. prestigious Alumni Achievement for Management Development at Award 2006, the Order of the Rising Harvard University, USA. Mr Lim is Mr Yeo serves as a member of the Sun, Gold and Silver Star by the also an Eisenhower Fellow. United Nations Committee of Experts Japanese Government (2007), the Distinguished Service (Star) award by in Public Administration, established 3 by the Economic and Social Council the Singapore's Labour Movement, National Trade Unions Congress Mr Michael Grenville Gray from 2010-2013 for the promotion and Independent Director development of public administration (2008), the University of Toronto and governance among member Engineering Alumni Medal (2008) Date of appointment: states, in connection with the United and the 1st BioSpectrum Asia-Pacific 16 November 2009 Nations Development Agenda. Lifetime Achievement Award in March 2009. Mr Michael Gray, 68, is the Chairman He was the Chairman of the Agency of the Audit Committee. for Science, Technology and Research 2 Mr Gray has more than 35 years of ("A*STAR") and the Economic Mr David Lim Tik En Development Board. He is the experience in professional advisory Deputy Chairman & and audit services, mostly in Chairman of the respective boards of Independent Director directors of Accuron Technologies Ltd, Southeast Asia. Prior to his retirement MTIC Holdings Pte Ltd, Singapore Date of appointment: 11 June 2007 at the end of 2004, he was a partner Aerospace Manufacturing Pte Ltd and in PricewaterhouseCoopers Singapore Hexagon Development Advisors Pte Mr David Lim, 58, serves as the and, before that, Territorial Senior Ltd. Mr Yeo is a non-executive director Deputy Chairman of the Board, Partner for PricewaterhouseCoopers on the board of directors of City Chairman of the Investment Indochina (Vietnam, Cambodia Developments Limited and Hitachi Committee, and is a member of and Laos). He is an Independent Ltd (Japan). the Audit Committee, Nominating Director and Chairman of the Audit Committee, and Human Resource and Committees of Singapore Exchange- Mr Yeo holds a Bachelor of Applied Remuneration Committee. listed Avi-Tech Electronics Limited and Science (Industrial Engineering) GSH Corporation Ltd, and the United degree and an honorary Doctorate Mr Lim is a Director of Wheelock Kingdom ("UK")-listed VinaCapital in Engineering from the University Properties (Singapore) Ltd. He has Vietnam Opportunity Fund. He of Toronto, an honorary Doctorate in served in both the public and private obtained a Bachelor of Science Medicine from Karolinska Institutet, sectors in Singapore and overseas. Degree in Maritime Studies in 1973 Sweden, a Master of Science His past roles included Chairman of from the University of Plymouth, (Systems Engineering) from the then- Jurong International Holdings Pte Ltd, UK, a Masters of Arts Degree in University of Singapore, and a Master Chief Executive Officer ("CEO") of Southeast Asian Studies from the Jurong Town Corporation, CEO of the National University of Singapore in £Î œ>À`œv`ˆÀiV̜ÀÃ

2005 and an honorary Doctorate Mr Aggarwal serves as an also a fellow member of Institute of in Business from the University of independent Director on various Chartered Accountants of India. Newcastle in 2011. Boards of Directors. In the past 10 years, he has been involved in 6 He is a Fellow of the Institute of promoting and managing new private Chartered Accountants in England enterprises in Singapore, India, USA Mr Girija Prasad Pande and Wales, the Institute of Singapore and Australia, principally in industries Independent Director Chartered Accountants and the such as media, technology and Date of appointment: Singapore Institute of Directors. An building materials. 15 January 2013 active Singapore Citizen, Mr Gray has held a number of positions Mr Aggarwal holds a Master of Mr Girija Pande, 64, is a member in statutory boards, grassroots Business Administration degree from of the Investment Committee. Mr organisations and Voluntary Welfare the Indian Institute of Management, Pande has spent over three decades Organisations. He was awarded the Ahmedabad, India and a Bachelor of working in senior capacities in a large Public Service Medal in 1992, Public Technology (Mechanical Engineering) global Bank-ANZ Grindlays Banking Service Star in 1999 and the Public from the Indian Institute of Group and Tata Consultancy Services Service Star (Bar) in 2010, by the Technology, New Delhi, India. Ltd ("TCS") - Asia Pacific, a global IT Singapore Government. company based in Singapore. Through his many years of working in India & 5 Asia in Technology & Banking, he has 4 Mr T.V. Mohandas Pai acquired in depth knowledge of the Mr Rakesh Kumar Aggarwal Independent Director India market & the region. Independent Director Date of appointment: Mr Pande spent the last ten years Date of appointment: 1 December 2011 with TCS, based in Singapore, his 16 November 2009 last role being Chairman of TCS, Mr Mohandas Pai, 55, is a member Asia Pacific ("APAC"). TCS is one of Mr Rakesh Aggarwal, 61, of the Audit Committee and the largest global IT companies with is a member of the Investment Committee. revenues of over $10 billion and Investment Committee. nearly 300,000 software associates Mr Pai is currently the Chairman of in over 45 countries. Mr Pande was Mr Aggarwal started his banking the board of directors of Manipal instrumental in setting up TCS' APAC career with Citibank in India in Global Education Private Limited, headquarters in Singapore in 2001 1975. After several domestic and a Global Education Services and as CEO, pioneered its business international assignments, Mr Corporation and Advisor to the growth in APAC & China from scratch, Aggarwal served as Regional Risk Manipal Education and Medical building relationships with well-known Asset Reviewer in the Asia Pacific Group. Prior to this, Mr Pai was a Western and Asian MNCs. Mr Pande group, Singapore responsible for Director of the board of directors of was awarded the Best CEO Award in assessing risk exposures at different Infosys Limited, Bangalore and Head 2010 by SHRI in Singapore. Citigroup entities based in Japan, of Human Resources; Education South Korea, Australia, New Zealand, and Research; Administration, Mr Pande serves as a Director on Singapore and India. Infrastructure and Facilities; and many profit & non-profit Boards in Infosys Leadership Institute. Singapore like NCSS & SINDA. He Following his years with Citibank, Earlier to this he was the CFO of is well known in India & Asia where Mr Aggarwal joined Union Bank of Infosys Limited. he served in RBI committees & in Switzerland ("UBS"), Singapore in Boards of Chambers of Commerce 1990, and became the Chairman of Mr Pai was a Trustee of the in India & Singapore. Mr Pande East Asia Credit Committee, where International Financial Reporting has recently co authored a book he managed all counter-party risks in Standards (IFRS) Foundation, the published by John Wiley (USA) on the Asian region. He was also body that oversees the International growing commercial ties between involved in corporate and structured Accounting Standards Board. India & China titled “The Silk Road finance, initial public offering Rediscovered-How Indian and underwriting, direct investments and Mr Pai holds a Bachelor's degree Chinese Companies Are Becoming other functions as Director of UBS in Commerce from St. Joseph's Globally Stronger by Winning in Each (East Asia) Ltd, Singapore. College of Commerce, Bangalore, and a Bachelor's degree in law (LLB) Other’s Markets.” The book has a from Bangalore University. He is foreword by Managing Director of Brookings Institution, Bill Antholis. £{ Mr Khiatani is the President Hospitality Trust Management Pte Ltd 7 and Group CEO of Ascendas, a and SIA Engineering Company Ltd. Mr Ng Eng Leng leading provider of business space Independent Director solutions in Asia with Assets under 9 Date of appointment: 1 April 2013 Management exceeding US$10 billion. From its base in Singapore, Ascendas Mr Jonathan Yap Neng Tong Executive Director & CEO Mr Ng Eng Leng, 49, is a member of has developed a strong regional the Audit Committee. footprint, serving a global clientele of Date of appointment: 11 June 2007 over 2,400 customers across Asia. Mr Ng is a Partner with Rodyk & Mr Khiatani was previously the Chief Mr Yap, 46, is the CEO of the Trustee- Davidson LLP. He specialises in Executive Officer of JTC Corporation Manager and a member of the mergers and acquisitions and his (JTC), the Singapore Government’s Investment Committee. main areas of practice encompass lead agency to plan, promote and domestic, regional and cross-border develop industrial infrastructure and Mr Yap has been with Ascendas private and public takeovers, mergers facilities. At JTC, Mr Khiatani played a Group since 2004 and is CEO and acquisitions and corporate key role in developing specialized and India overseeing Ascendas' India commercial work, corporate finance, integrated infrastructure solutions for businesses. He is also Ascendas' corporate restructurings, securities various industrial sectors. Group Assistant CEO, Funds, law, private equity and general overseeing its existing non- Singapore corporate law. Prior to joining JTC, Mr Khiatani was focused funds and the development the Deputy Managing Director at the of its fund management business. Mr Ng's work in public and Singapore Economic Development Mr Yap was previously CEO, India private mergers and acquisitions Board (EDB). Mr Khiatani joined the Operations while also managing and corporate and commercial EDB in 1986 where he played an a-iTrust when it was a private fund, transactions include acting for both instrumental role in the development then known as Ascendas India IT the sell-side and the buy-side (bilateral and transformation of important Parks Trust. as well as by way of auction), and sectors in Singapore’s economy such he advises on and is active in joint as electronics, transport engineering, Prior to that, he was with the ventures, solvent and insolvent precision engineering, logistics, Australian Stock Exchange listed Lend corporate restructurings, schemes infocomms and media, and clean Lease Corporation since 1997 and of arrangement, investments, technology. He was also in charge of his last held position was Investment shareholder arrangements, and listed the EDB’s operations in the Americas Director of its Asian real estate companies work. He is also frequently and Europe. investment business and concurrently, consulted on corporate and Deputy Fund Manager of Asia Pacific commercial strategies relating to Between 1994 and 1999, Mr Khiatani Investment Company I and II (private such transactions. was the Managing Director of funds focusing on Asian real estate). Preussag SEA, a diversified German From 1992 to 1997, Mr Yap was with Mr Ng graduated from the National conglomerate, where he was Tan Chong Realty Pte Ltd (the real University of Singapore in 1989. He responsible for developing the group’s estate arm of the Hong Kong Stock was admitted as an Advocate and business in South-East Asia. In 1999, Exchange-listed Tan Chong Group) and Solicitor in Singapore in 1990 and in Mr Khiatani returned to the Singapore the Inland Revenue Authority West Malaysia in 1992. He was also Economic Development Board (EDB). of Singapore. admitted to the Roll of Solicitors of Mr Yap holds a Bachelor of Science Mr Khiatani holds a Masters Degree England & Wales in 2001. in Estate Management (Honours) (Naval Architecture) from the degree and a Masters of Science University of Hamburg, Germany. in Project Management from the 8 He also attended the Advanced National University of Singapore. Mr Khiatani Manohar Ramesh Management Program at the Harvard Non-Executive Director Business School in 2006. Date of appointment: 1 June 2013 Mr Khiatani is a Board Member of Ascendas Pte Ltd, Ascendas Mr Khiatani Manohar Ramesh, 54, Funds Management (S) Limited, is a member of the Investment Ascendas Property Fund Trustee Committee, Nominating Committee Pte Ltd, Ascendas Hospitality Fund and Human Resource and Management Pte Ltd, Ascendas Remuneration Committee. £x /ÀÕÃÌii‡“>˜>}iÀ

Jonathan Yap Jonathan Yap Executive Director & CEO Executive Director & CEO Please refer to page 15 for Jonathan’s work experience Sanjeev Dasgupta CEO-Designate

Tan Si Sian Sanjeev Dasgupta Executive Secretary CEO-Designate Sanjeev has around 22 years of experience in the areas of Arthur Tan real estate fund management, corporate finance, strategy Chief Financial Officer and financial control. Immediately prior to joining Ascendas, he was working as President of Real Estate at ICICI Emma Tan Venture Funds Mgmt. Co. Ltd., a leading private equity fund Senior Manager, Finance manager in India. In that role, Sanjeev was responsible for investments and portfolio management of the Real Estate Gary Ong funds of around USD 600 million. His key achievements Assistant Manager, Finance included creation of a real estate structured investment product and a managed account platform through which he Jaslyn Poon led investments in Mumbai, NCR and Bangalore. He also Accountant, Finance played a key role in significant performance improvements of certain assets through changes in the development Eileen Ho mix, cost reduction, refinancing and other initiatives. Prior Assistant Accountant, Finance to joining ICICI Venture, Sanjeev managed real estate investments of around USD 430 million as Managing Ram Soundararajan Director at Future Capital Real Estate, a leading real estate Head, Asset & Investment development oriented fund manager. He led several Management landmark investments in metros such as Mumbai and Ashwini Mathur Bangalore and in high growth tier 2 cities. Assistant Manager, Asset & Sanjeev's prior work experience included stints with Investment Management organisations such as Tata Group and Merrill Lynch across India, Hong Kong and London. Sanjeev is a qualified Joel Oei chartered accountant, graduate company secretary and Senior Fund Analyst, Asset & holds a Master of Business Administration from London Investment Management Business School.

James Goh Head, Investor Relations Arthur Tan Chief Financial Officer Mary de Souza Joint Company Secretary Arthur was previously the CFO of Longcheer Holdings Limited, which is listed on the mainboard of SGX-ST, since Edwin Kung March 2006. In this role, he oversaw the group’s finance Joint Company Secretary operations, reporting requirements, treasury and tax. Prior to that, he was Director of Mergers and Acquisitions (“M&A”) with Shanghai Fortune Investment Consulting Co., Ltd, an investment advisory firm specialising in the restructuring of state-owned enterprises in China. Between 1999 and 2004, he held various senior regional finance and M&A roles in multinational and local corporations based in Singapore. He started his career with KPMG Singapore in 1995. Arthur is a Fellow of the Association of Chartered Certified Accountants.

16 Ram Soundararajan Edwin Kung Head, Asset & Investment Management Joint Company Secretary Ram rejoined Ascendas in August 2012 and has more Edwin joined Ascendas in 2005. He has more than 17 than 12 years of experience in real estate investment, years of legal work experience, working with both local asset management, fund management and real estate and foreign companies in real estate transactions and investment banking in India and South East Asia. His last mergers and acquisition in the region. Edwin is the Deputy position was with Ernst & Young where he was Associate Head of Ascendas’ Group Legal and Corporate Secretarial Director, Real Estate working on transactions in Singapore Department. He holds a LL.B. (Hons) degree from the and South East Asia. Before that, Ram was with GIC Real National University of Singapore, MSc (Information Studies) Estate in Singapore responsible for investments and asset degree from Nanyang Technological University, Singapore, management of GIC’s portfolio of direct and indirect assets and an Advance Tax Programme Certificate from the Tax in India and global real estate funds. Ram was with Ascendas Academy of Singapore. He is also an advocate and solicitor from late 2005 to 2008 also as Investment Manager for of the Supreme Court of Singapore. a-iTrust. Ram holds a Masters in Business Administration Degree (Specialization in Finance) from the Bharatidasan Institute of Management in India.

James Goh Head, Investor Relations James oversees the investor relations function for the Trust. He has over 14 years of experience in the fields of investor relations, analytical research, and strategic planning. He has extensive experience in the real estate industry, having worked in several leading property companies. Prior to joining the Ascendas Group in 2011, he was a key member of the investor relations team at Global Logistic Properties, and the Head of Investor Relations and Research at Frasers Centrepoint Trust. James is a CFA charter holder and a graduate of Nanyang Technological University with a Bachelor of Accountancy (Honours) degree.

Mary de Souza Joint Company Secretary Mary joined Ascendas in 2005 and has more than 18 years of practice as a corporate and commercial lawyer. Her experience was acquired during her appointment as legal counsel with a government-linked technology group and thereafter, while in practice in a local law firm based in Singapore with several branches in the region. She has worked with both local and foreign companies and has acquired a broad-based understanding of the concerns and needs of investors in Southeast Asia. As a result of her regional exposure while in legal practice, she has been able to acquire first hand knowledge of the commercial, business, cultural and operational issues encountered in doing business outside Singapore. Mary currently heads Ascendas Group’s Legal team. She holds an LL.B. (Hons) degree from the National University of Singapore and is an advocate and solicitor of the Supreme Court of Singapore.

£Ç *Àœ«iÀÌÞ“>˜>}iÀ

Bangalore headquarters Chennai operations Lee Fu Nyap Balaji V V, CEO, Ascendas Services (India) Private Limited City Head Fu Nyap has about 23 years of regional real estate Balaji joined Ascendas India in 2001 and is currently City experience in valuation, investment, operation, Head of Chennai Operations. His previous appointments development and portfolio asset management. He has include, Head, Business Development of Ascendas India, in-depth knowledge and experience in developing and and Head, Finance of Ascendas Chennai. Before joining managing business in India, China, Indonesia, Malaysia, Ascendas, Balaji headed the finance department of Phillipines, Thailand and Singapore, where he spearheaded Avanti Kopp Ltd, an Indo-German switch manufacturing some of the flagship projects of Ascendas. Other than company. He previously worked in the Hyderabad-based Ascendas Group, Fu Nyap has worked with Keppel Land Lamtuf group, where he was involved in managing its International Pte Ltd where he was instrumental in setting funding requirements. Balaji holds a Bachelor‘s Degree in up two residential projects in Bangalore and with Inland Mathematics with Physics and Chemistry as ancillaries from Revenue Authority of Singapore where he conducted the University of Madras. He is a professionally qualified valuation exercise for property tax purpose. Fu Nyap’s Chartered Accountant from the Institute of Chartered involvement with India dates back to the early days of Accountants of India and is a fellow member of ICAI. He has International Tech Park Bangalore in 1994 and has also completed a One year Senior Management Development played a crucial role in establishing Ascendas’ International program from Indian Institute of Management, Calcutta. Tech Park Chennai. Fu Nyap holds a Bachelor of Science in Estate Management (Honours) from the National University of Singapore and a Masters degree in Business Administration from Leicester University.

Bangalore & Hyderabad operations B Shekar, City Head Shekar joined Ascendas in April 2006 and is currently heading Bangalore and Hyderabad operations. His previous assignments include heading Ascendas’ Project Development function in India while concurrently heading Hyderabad Operations. Prior to Ascendas, Shekar was involved with Institute for Development & Research in Banking Technology. He has over twenty years of experience in various Real Estate functions such as project development and property management services. Shekar holds a Bachelor’s degree in Civil Engineering and AMIE (Mechanical Engineering) from Institution of Engineers.

18 Headquarters Bangalore Chennai Hyderabad

City Head - B Shekar Balaji V V B Shekar

Deputy City Head - - - Subrata Sharma

Communications Anirban Choudhury Anshu Bhardwaj Arun Prasath Ajay B

Project Management Pradeep Dwivedi Rajesh A Sandeep Bhaskar Sudhir Kumar

Property Services Ian Peter K T Rao Seenuvasan G Naresh Yadav

Finance Foo Chek Kiang Lakshmi Krishnan V Govardhan Chawla Narasimhaiah

Legal and Secretarial J Ammaiappan Joyappa Senthil Kumar A Ajit Verma Sheetal LM VVMS Rao

Marketing & Joey Khoo Adarsh Rai Ramesh M Umesh C S Customer Service Beena Bharath

Human Resource, Chidambar R S Mary Sathiya Srividya P D Srivalli Administration & IT

Corporate Planning Rahul Nibandhe - - -

Business Development Bhavesh Madeka - - -

19 Investment management

"Our investment strategy is to generate superior portfolio returns for unitholders by investing in business space in key Indian cities." Sanjeev Dasgupta CEO-designate

Development strategy Since listing, a-iTrust has developed 3.55 million sq ft of Post the completion of Aviator, we have 2.86 million sq ft commercial space from its land bank. In January 2014, of potential built-up area within International Tech Park we officially commissioned Aviator, the latest addition to Bangalore. This sizeable land bank will be developed in our portfolio. Aviator, a 0.60 million sq ft multi-tenanted IT phases to meet market demand. building in Bangalore, is fully committed and is expected to boost the income of a-iTrust in FY14/15 as we progressively hand over the space to customers.

CASE STUDY

Voyager Voyager is located within International Tech Park Bangalore’s special economic zone. Construction of the 0.54 million sq ft Comprises land (as at FY08/09 valuation) and construction cost. and construction Comprises land (as at FY08/09 valuation)

building commenced in August 2009, coinciding with the global financial crisis. Despite challenging market conditions, 4 Source: CBRE South Asia Pvt. Ltd.Asia Source: CBRE South Voyager achieved leasing commitment level of 68%1 when it was completed in June 2011. Our decision not to lower 2 asking rents in the lead up to Voyager’s completion paid off as office demand rebounded soon after. By the end of 2011, total absorption of office space in Bangalore reached a high of 10.9 million sq ft2 as investor confidence returned. Our investment in Voyager has reaped attractive returns for unitholders. From June 2011 to March 2014, we recorded total development gains of ࡩ1.5 billion for this building. In addition, Voyager’s development yield3 of 18.8% is significantly higher than our latest average portfolio capitalisation rate of 10.5%. Amount invested : ࡩ1.50 billion Valuation as at 31 March 2014 : ࡩ2.98 billion Developmental gains: ࡩ1.48 billion Development yield :18.8%

Total property income Net property income Occupancy (%) (ࡩ ‘mil) (ࡩ ‘mil) 282 100% 502 206 81% 405

230 117 39%

FY11/12 12/13 13/14 FY11/12 12/13 13/14 FY11/12 12/13 13/14 The development yield is calculated by dividing FY13/14 net property income by the amount invested. the amount invested. net property income by dividing FY13/14 yield is calculated by development The Based on leases that have been signed. Physical occupancy of Voyager was 39% as at March 2012. 2012. 39% as at March was Voyager occupancy of been signed. Physical on leases that have Based 3 1 Acquisition strategy We pursue acquisitions that provide attractive cash flows and yields relative to a-iTrust’s weighted average cost of capital. When evaluating investment opportunities, we seek acquisitions that enhance the diversification of the portfolio and optimise risk-adjusted returns to unitholders.

Third-party acquisitions We have targeted Bangalore, Chennai, Hyderabad, Mumbai, Dehli, Gurgaon and Pune for new acquisitions. These cities were chosen because of their sound infrastructure, sizeable pool of talented workforce, and substantial economic base.

When sourcing for quality third party properties, we leverage on Ascendas Group’s presence in India and access to market information to gain a competitive advantage with respect to identifying, evaluating and acquiring properties.

We focus on the following criteria when evaluating new acquisitions: Location – its proximity to residential developments, social infrastructure, and access to public transportation and skilled workforce; Tenancy profile – the credit standing of its tenants and diversification of tenant base; Design and specification – the quality of the property, including its size, age, and state of maintenance; Land title and land tenure – whether there are disputes or claims over the title, and remaining tenure of land; Rental and capital growth prospects – its passing rent and capital value compared to comparable properties, and the overall market outlook; and Opportunity to add value – the potential to increase rental/occupancy rates or enhance value through selective renovations or other enhancement works.

Investment risk Investment risk arises when a-iTrust develops existing land within the portfolio, acquires new properties, or does not divest existing properties when it is timely to do so. Such risks encompass market risk as well as the impact of the investment on the existing portfolio.

We adopt the following measures to mitigate investment risk: A research-driven investment approach focusing on the relevant national macroeconomic outlook, analysis of the relevant micro real estate markets (including supply and demand, vacancy and rental), and detailed asset analysis; Detailed due diligence prior to any new acquisition; and Detailed evaluation of the impact of the proposed acquisition on the portfolio income, geographical and tenant diversification, and lease expiry profile.

21 Investment management

Sponsor pipeline a-iTrust’s sponsor Ascendas Group, Asia’s leading provider of business space solutions, has granted the Trust the Right Of First Refusals (“ROFR”) to acquire income- producing properties from the following entities:

Ascendas Land International Pte Ltd, which has two IT Parks: i) CyberVale, an IT SEZ in Chennai with 0.56 million sq ft of completed space and land with development potential of 0.37 million sq ft; and ii) International Tech Park Pune, an IT SEZ in Pune with 0.66 million sq ft of completed space and land with development potential of 1.56 million sq ft.

Ascendas India Development Trust, a real estate fund that develops greenfield projects. It has committed equity of S$500 million and land in Gurgaon, Chennai & Coimbatore.

Ascendas India Growth Programme, a real estate fund that targets business space developments and pre-stabilised completed business space assets. It has a target asset size of S$600 million. The ROFR covers Ascendas Group’s stake in the assets of this fund.

CyberVale

International Tech Park Pune 22 aVance Business Hub pipeline The aVance Business Hub pipeline sq ft, and were fully occupied at the In addition to the agreement with the is a unique deal which allows point of acquisition. In June 2013, the Vendor, a-iTrust was granted a ROFR a-iTrust to buy newly constructed Vendor completed the construction to acquire four other buildings within properties with minimal development of a 0.69 million sq ft building named aVance Business Hub. These four and leasing risk. Our agreement aVance 3. As part of our agreement, buildings totaling 1.16 million sq ft with Phoenix Infocity Pvt Ltd (the we invested ࡩ1,750m (S$40m1) in are owned by a separate party to “Vendor”) gives us the right to March 2013 and ࡩ420m (S$8.6m1) in the Vendor. acquire five buildings individually January 2014 after the Vendor met as and when they are completed. pre-specified leasing milestones To ensure that new buildings built by The buildings are part of an IT Park for aVance 3. As at 31 March 2014, the Vendor meet our requirements, located in Hyderabad named aVance the building was 69% leased. We a-iTrust and the Vendor has set up Business Hub. intend to buy over aVance 3 once it is a project committee to oversee the substantially leased. Besides aVance design and development of new In February 2012, we acquired 3, we have rights to acquire two buildings. Lastly, a-iTrust has the aVance 1 & 2 for ࡩ1,765m (S$45m1) other buildings to be constructed by rights (through its appointed property from the Vendor. These two buildings the Vendor totaling 1.25 million sq ft. manager) to manage buildings not have a total floor area of 0.42 million owned by it to maintain the standard that our customers have come to Building Floor area (million sq ft) Status expect across the entire IT Park. a-iTrust Properties aVance 1 0.23 Acquired aVance 2 0.19 Acquired Total 0.42 - Right to acquire aVance 3 0.69 Completed aVance 4 0.40 Under construction aVance 5 0.85 Not built Total 1.94 - Right of first refusal aVance 6 0.23 Completed to acquire aVance 7 0.30 Completed aVance 8 0.20 Completed aVance 9 0.43 Not built Total 1.16 -

1 3 2

4 6 8 7 9 5 Amount translated into Singapore Dollars using spot exchange rate at the time of investment. Amount translated into Singapore Dollars using spot exchange

1 23 Asset management

"We differentiate our properties by providing quality space, reliable solutions and an international business lifestyle to our customers." Ram Soundararajan Head, Asset & Investment Management

Value proposition

We offer quality space that is built customers. Our tenants are assured properties that inspires knowledge to international specifications and of smooth and uninterrupted workers. Extensive amenities standards. Our IT Parks have won infrastructure support within our are provided within aesthetically multiple awards for its distinguished IT Parks. In International Tech Park landscaped settings incorporating quality; foremost amongst them are Bangalore, we have a dedicated lush gardens and artworks. two Gold awards from the FIABCI power plant to ensure continuous Amenities on our IT Parks include Prix d’ Excellence Award. Both power supply within the property. gymnasium and fitness facilities, International Tech Park Bangalore For other IT Parks, we have installed large food courts, restaurants and and International Tech Park Chennai backup generators to provide delis. Conveniences range from have received this top accolade, continual power to our facilities. automated teller machines, banks, showcasing our ability to construct We also implement best practices gift shops and travel agencies and manage world class properties in the key areas of fire, utilities and to pharmacies and spa facilities. that exceed the expectations of security systems and processes as Organised activities include festive our customers. part of our business continuity plan. celebrations and sporting and charity events to create a vibrant We differentiate ourselves by Lastly, we provide an international and balanced lifestyle. providing reliable solutions to business lifestyle within our

FY13/14 Calendar of events

Quarter Location Event 1 Bangalore Mother’s Day Celebrations, Father’s Day Celebrations Chennai Interface 2013 Hyderabad Livewire 2013 Bangalore, Hyderabad & Chennai Mobile Blood Donation Drive, Ascendas Green Month Celebrations 2 Bangalore ITPB Livewire 2013, Sunday Soul Sante, Food Festival, Independence Day Celebrations Chennai Health Week, Tech A Break - IT is Playtime Hyderabad Navachetana Camp 3 Bangalore Ascendas Voice, Festival Of Joy Celebrations, Under The Stars, Blood Donation Camps Chennai Ascendas Talent Hunt, Diwali Celebrations, Ascendas Excellence Awards Hyderabad Healthy Lifestyle And Sports Meet Bangalore & Hyderabad Ascendas Connect 4 Bangalore Republic Day Celebrations, ITPB Healthy Lifestyle And Sports Meet Chennai Art Chennai, Connect 2014, Women's Day Celebration Hyderabad Colours 2014 Bangalore & Hyderabad Interface 2014

24 CASE STUDY

International Tech Park Chennai

International Tech Park Chennai won Gold award in the store, pharmacy and more to serve the working Industrial category at the prestigious FIABCI Prix d’ community within International Tech Park Chennai. Excellence Awards 2013. International Tech Park Chennai also has a 54 room guest accommodation facility and a multi-purpose hall for The FIABCI Prix d’ Excellence recognises projects that meetings and conferences. embody excellence in all real estate disciplines and illustrate the FIABCI ideal of providing society with A dedicated team services International Tech Park the optimal solution to its property needs. Judged Chennai’s clients ensuring round the clock business by an international panel comprising top real estate continuity. The state of the art infrastructure is complete professionals and experts, the competition’s judging with 24-hour security, advanced fire protection systems, criteria include architecture and design, development seamless telecommunication networks and optical fibre and construction, finance and marketing, environmental connectivity work. impact and community benefits. International Tech Park Chennai houses more than 50 International Tech Park Chennai offers a wide range of leading companies and over 18,000 professionals from amenities to its tenants, living up to its unique offering the fields of information technology, IT Enabled Services, of an international lifestyle. The amenities include a banking & financial, gaming, animation and research & bank, automated teller machines, multiple food courts, development. restaurants, health club, salon, gift shop, convenience

25 Asset portfolio

Portfolio floor area yb city Portfolio valuation by property Portfolio valuation by type

Hyderabad Bangalore aVance 29% 45% CP 5% Land for development 5% 8%

The V ITPB 15% 49% Completed assets 92% Chennai 26% ITPC 26% 47.8. 47.8. ࡩ Remaining 11.0% owned by Tamil Nadu Industrial Development Corporation Limited. Nadu Industrial Development Tamil by owned 11.0% Remaining 3

International Tech International Tech aVance Park Bangalore Park Chennai CyberPearl Business Hub Property (“ITPB”) (“ITPC”) (“CP”) The V (“aVance”)

City Bangalore Chennai Hyderabad Hyderabad Hyderabad Based on exchange rate of S$1: on exchange Based Site area (acres) 68.5 15.0 6.1 19.4 2.76 6 43.5. ࡩ Land tenure Freehold Freehold Freehold Freehold Freehold1

Stake 92.8%2 89.0%3 100.0% 100.0% 100.0%

Floor area owned by 3.4 2.0 0.4 1.3 0.4 a-iTrust (‘m sq ft) Based on exchange rate of S$1: on exchange Based 5 Number of buildings 93252 Remaining 7.2% owned by Karnataka Industrial Areas Development Board. Board. Areas Development Karnataka Industrial by owned 7.2% Remaining 2

Park population 31,950 18,800 4,800 12,000 4,500 39.4 for aVance. aVance. 39.4 for ࡩ 2.86m sq ft of Land for development potential built-up ---- area , and S$1:

Committed occupancy 94% 99% 100% 99% 96%

Purchase price 13,670 5,533 2,001 5,439 1,765 (ࡩ ‘mil) (S$ ‘mil)4 478.5 193.7 70.0 190.4 44.8 28.6 for ITPB, ITPC, The V and CP The ITPC, ITPB, 28.6 for ࡩ 2013 valuation 18,535 9,574 1,959 6,263 1,911 (ࡩ ‘mil) (S$ ‘mil)5 426.3 220.2 45.0 144.1 44.0

2014 valuation 20,318 10,740 2,024 6,450 2,051 (ࡩ ‘mil) (S$ ‘mil)6 424.6 224.5 42.3 134.8 42.9 33-year lease renewable for further 33-year leases at the Trust’s option at nominal rates. Trust’s leases at the further 33-year for lease renewable 33-year Based on exchange rate of S$1: on exchange Based 4 1 26 Asset performance

Total property income Net property income

FY13/14 FY13/14

FY12/13 FY12/13

Property FY12/13 FY13/14 Property FY12/13 FY13/14

ITPB 55% 56% ITPB 40% 44%

ITPC 21% 21% ITPC 28% 26%

The V 15% 14% The V 20% 18%

CP 5% 5% CP 6% 5%

aVance 4% 4% aVance 6% 6%

Total property income Net property income (ࡩ ‘mil) (ࡩ ‘mil) PortfolioITPB Portfolio ITPB

5,540 5,774 3,450 3,165

3,054 3,232

1,532 1,281

ITPCThe V ITPC The V

874 907 1,180 1,222 628 636 803 820

CPaVance CP aVance

278 267 225 233 187 182 195 193

FY12/13 FY13/14 27 Asset review

Operational risk

We integrate risk management measures into our leasing, management and maintenance activities of day-to-day activities across all functions. These include a-iTrust. We monitor and review such controls regularly comprehensive operating, reporting and monitoring and improve them where necessary. controls put in place to manage risks arising from

Leasing report Leasing activities from 1 April 2013 to 31 March 2014

Leasing remained healthy in FY13/14. Over 2.4 million Area ('000 sq ft) Retention rate 94%

sq ft of floor space was leased or renewed during 238 2,433 FY13/14, exceeding the floor space freed up by expired 2,195 or pre-terminated leases. This includes 0.6 million sq 1,701 ft of space leased in Aviator, as the building was fully committed ahead of completion. We retained 94% of leases that expired during the financial year.

Expired leases/ Renewed/ Forward Total leases pre-terminations extended/ leasing concluded new leases

26% or 1.8 million sq ft of leases would be expiring in Lease expiry profile FY14/15. We commence lease renewal negotiations with our tenants six months prior to the expiry of their leases. Sq ft expiring ('m) Weighted average lease term 5.1 years This gives us time to secure a replacement tenant should 2.0 26% the existing customer choose not to renew their lease. 22% 1.5 17% 15% 1.0 12% 8% 0.5

0% 0 FY 14/15 15/16 16/17 17/18 18/19 19/20 20/21 & Credit risk beyond

Credit risk is the potential financial loss resulting from No. Top ten tenants Parent company (in alphabetical order) the failure of a customer or counterparty to settle its financial and contractual obligations to the Trust, as and 1 Affiliated Computer Services of India Xerox when they fall due. Pvt. Ltd.

2 Applied Materials India Pvt. Ltd. Applied Materials The property manager conducts financial assessments on tenants before entering into lease agreements. 3 BA Continuum Pvt. Ltd. Bank of America Merrill Lynch Tenants are required to place significant amount of security deposits for lease and fit-out rentals. The 4 Bally Technologies India Pvt. Ltd. Bally Technologies

property manager monitors their account receivable 5 Cognizant Technology Solution Cognizant balances on an ongoing basis to minimise the impact of a (India) Pvt. Ltd. defaulting customer on the performance of the property. 6 General Motors India Pvt. Ltd. General Motors Accounting provision for impairment is made when rental arrears exceeds the security deposits. 7 iNautix Technologies India BNY Mellon Pvt. Ltd.

The table shows our top ten tenants (by portfolio base 8 Mu Sigma Business Solutions Mu Sigma rent) in alphabetical order, with the name of their parent Pvt Ltd. company on the right-hand column. All of our top ten 9 Societe Generale Global Solution Societe Generale tenants, many of whom are in the Fortune 500 list, are Centre Pvt. Ltd. multinational corporations with excellent credit standing. 10 Technicolor India Pvt. Ltd. Technicolor

28 Tenant country of origin Tenant company structure by base rental by base rental

Singapore Netherlands Indian company Germany 2% 1% 10% 1% UK 4% France 6%

India Switzerland 13% 1% Multinational corporation 90% USA 71%

Tenant concentration risk Tenant core business & activity by base rental

We minimise tenant concentration risk by diversifying Telecommunication & Network our tenant base extensively. We had in total 345 tenants Automobile as at 31 March 2014. On average, a single tenant takes Retail 2% 3% up 20,470 sq ft of space. Our largest tenant accounted 3% Banking & Financial Others 18% for 7% of portfolio base rents. Collectively, the top 10 1% tenants contributed 34% of portfolio base rents. Corporate and Professional Services Our tenants came from a wide range of industries. IT 1% and software development companies make up close Oil & Gas Design, Gaming to half of our tenant base. The rest of our tenants come 2% and Media from diverse industries such as banking, gaming and 9% automotive sectors. Electronics, Semiconductor & Engineering In terms of the type of business activity that is 4% undertaken in our portfolio, over half of our tenants IT, Software F&B & Application conduct IT-related work solely. The IT category refers Development and 2% to services rendered at the top end of the IT value Service Support Healthcare & chain, including software and application development, 53% Pharmaceutical animation, and gaming design. ITES, which means IT 2% Enabled Services, captures lower value-added services ITES such as call centres and business process outsourcing 12% functions. The segment IT/ITES refers to tenants which Retail & F&B undertake both types of activities within their premise. 5% R&D 3% Others 1% IT 54%

IT/ITES 25%

29 Capital management

"Our approach to capital management is geared towards building a strong balance sheet to support the growth of a-iTrust.” Arthur Tan CFO

Capital management flow chart

4 Distribution policy E Investors qu ity ns io 3 ut ib tr Income is 1 D hedging Funding strategy strategy

$ Interest payments Debt $ $ Repatriated

income Banks Capital

a

i

d

R

n

I

e

p o a t Singapore t n

i r

i

a s

t d e

n India i u n f

c t o c m e j e n I

a n d

s w a p e a rn Assets in g s 2 fr om Cash IN ts R en to t r e management S c m G olle o D C nc r i he ot INR earnings and

30

Indicators & objectives

Indicators As at 31 March 2014 Objectives

Gearing ratio 22%1 Our capital management objectives include:

Interest service coverage 4.8 times employing the appropriate strategy to manage (EBITDA2/ Interest expenses) (FY13/14) currency risk;

Percentage of fixed rate debt 100% diversifying our funding sources;

Secured borrowings / Asset value 3.0%3 maintaining a healthy balance sheet by keeping gearing at a sensible level; and Effective weighted average cost 6.1% of debt (Net of tax shield benefits) ensuring sufficient liquidity to meet our business requirements. o-market revaluation of forward foreign exchange contracts). exchange of forward foreign revaluation o-market Value-at-risk is calculated by multiplying (i) the percentage is calculated by of Singapore Dollar borrowings Value-at-risk 5

Currency Risk = 20%. a-iTrust is exposed to foreign currency risk as a result of Trust's borrowings to Indian Rupee. This limits the having operations in two countries. Whilst the distribution maximum value-at-risk to currency movement at 20%4 as to unitholders is made in Singapore Dollar (reporting a-iTrust has a gearing limit of 40% without a credit rating. currency), the Trust's income is earned in Indian Rupee As at 31 March 2014, 8% of the Trust's asset value was (functional currency). Please see the section on income exposed to currency risk5. We will periodically review the hedging strategy for detailed explanation of measures policy, and make adjustments if changes in prevailing used to lower exposure of distributable income to market conditions warrant it. currency risk. To address the short term operating requirements for The currency exposure as a result of borrowing in currencies other than Indian Rupee, we will buy or sell Singapore Dollar to fund developments and/or foreign currency at the prevailing spot rate. acquisitions in India is managed through currency swaps. In addition, our policy is to hedge at least 50% of the

1 Funding strategy Our strategy is to diversify funding sources from We lower our borrowing cost by having a mix of Indian financial institutions and capital markets to reduce Rupee and Singapore Dollar borrowings. As at 31 March a-iTrust's reliance on any single source of fund. We have 2014, 65% of our gross borrowings was denominated established a S$500 million Medium Term Note (“MTN”) in Indian Rupee with the remaining 35% in Singapore programme and our principal bankers include DBS Bank, Dollar. The weighted average interest cost of Singapore Citibank, HSBC and Standard Chartered Bank. As at 31 Dollar and Indian Rupee borrowings were 3.5% and Earnings before interest, tax, depreciation & amortisation (excluding gains/losses from foreign exchange translation and mark-t exchange gains/losses from foreign interest, tax, depreciation & amortisation (excluding Earnings before 2 March 2014, we have total gross borrowings of S$235 8.7% respectively as at 31 March 2014. a-iTrust’s overall million, comprising S$90 million of MTN notes and S$145 weighted average cost of debt (net of tax shield benefits) million of bilateral loans. was 6.1% as at 31 March 2014. Our approach to equity raising is predicated on We do not borrow Indian Rupee loans onshore in India

Value-at-risk is calculated by multiplying (i) the percentage of Singapore Dollar borrowings with (ii) gearing ratio. 50% X 40% multiplying (i) the percentage is calculated by of Singapore Dollar borrowings Value-at-risk at present. This is because, based on current market 4 maintaining a strong balance sheet by keeping the Trust's gearing ratio at a sensible level. We will carefully consider conditions, the cost of fully-hedged borrowing in Singapore the impact on a-iTrust’s DPU and net asset value before Dollar is lower than borrowing directly in Indian Rupee. making any decision on raising equity. Ratio of gross borrowings to the value of Trust property. property. Trust of to the value of gross borrowings Ratio Excluding non-controlling interests. Excluding 1 3 with (ii) gearing ratio. 35% X 22% = 8%. 31 Capital management

Interest rate risk a-iTrust’s exposure to changes in interest rates relates primarily to interest-bearing financial liabilities. We have entered into interest rate swaps to hedge the Trust's entire floating-rate borrowings into fixed-rate obligations. As at 31 March 2014, 100% of a-iTrust’s borrowings carry fixed-rate interest.

Refinancing risk Debt expiry profile We aim to achieve an optimal balance between reducing (S$ 'm) interest costs by taking shorter tenure borrowings, and 75.0 spreading out the expiry profile of our borrowings to 65.0 reduce refinancing risk. The weighted average debt expiry is 2.4 years as at 31 March 2014 and the expiry of 50.0 41.0 the Trust's borrowings is spread out over the next 45.0 five years. 44.0 22.5

45.0 34.0 27.5 21.0

FY 14/15 15/16 16/17 17/18 18/19

SGD Denominated debt INR Denominated debt

Debt headroom Debt headroom (S$ 'm) As at 31 March 2014, a-iTrust may increase its borrowings by S$318 million1 before reaching the 40% gearing

limit. This provides us with significant resources to fund 1,008 60% Cap potential acquisitions and developments using additional borrowings. Should a-iTrust obtain a credit rating, the Trust would have debt headroom of S$1,008 million. 1,063

318 40% Cap

235 Current gearing 22%

Avaliable debt Trust property Net debt headroom Calculation of debt headroom assumes further gearing capacityassets acquired. on new

1 32 2 Cash management 3 Income hedging strategy We monitor and maintain a level of cash and cash Income is repatriated semi-annually from India to equivalents deemed adequate to meet the Trust’s Singapore in May and November to fund distributions. operations as well as to meet any short term liabilities. We enter into forward contracts on a monthly basis to The cash generated from operations at Indian entities hedge a substantial portion of income, tying six forward are placed in bank fixed deposits to maximise interest contracts to each semi-annual repatriation of income. This income prior to the intended repatriation date. mitigates the risk of large currency fluctuations in the period before income is repatriated to Singapore. Liquidity and cash flows The gain or loss associated with the forward contract Liquidity risk before its expiry or termination is recognised as unrealised fair value gain or loss on derivative financial We maintain sufficient cash and cash equivalents instruments in the income statement. On maturity of to meet the normal operating cash requirement. the forward contract, the gain or loss is recognised as We monitor and comply with bank covenants realised fair value gain or loss on derivative financial for borrowings. instruments in the income statement. Operating Activities Net cash generated from operating activities for FY13/14 4 Distribution policy increased to S$78 million, compared to S$68 million in Our policy is to distribute at least 90% of its distributable the preceding financial year. income. Since April 2012, a-iTrust has retained 10% of its distributable income to provide greater flexibility Investing Activities in growing the Trust. a-iTrust makes distributions to During the year, S$18 million was invested to complete unitholders on a semi-annual basis for every six-month the construction of Aviator, the new IT building in period ending 31 March and 30 September. International Tech Park Bangalore. An additional S$19 million worth of capital expenditure was spent on refurbishing existing properties. In terms of new investment, we invested S$9 million towards the acquisition of aVance 3 via the subscription of Fully Compulsorily Convertible Debentures (“FCCDs”) issued by the vendor. The subscription of FCCDs is part of a multi-stage acquisition process which will be completed upon the satisfaction of all conditions precedent. In the preceding financial year, we invested S$10 million on the development of Aviator while S$6 million of capital expenditure was spent on refurbishing existing properties. A total of S$41 million was invested in aVance 3 FCCDs.

Financing Activities During the year, we raised loans of S$29 million.

33 Investor relations

"We are committed to timely and transparent communication with investors to help them make informed investment decisions." James Goh Head, Investor Relations

Overview We attach great importance to maintaining good relationships with all investors and keeping them informed of significant developments at a-iTrust.

Care is exercised to ensure that we avoid selective disclosure of material information. All price sensitive information is released to investors at the same time via the Singapore Exchange and a-iTrust’s corporate website, in accordance with regulatory requirements.

We closely monitor investors’ perceptions and expectations of a-iTrust and actively convey that information to our Board of Directors (“Directors”). Major unitholders’ views are canvassed in a detailed investor survey which is conducted annually by an external consultant. The investor perception report is sent in its entirety to Directors so that they may take into consideration investors’ views when reviewing our performance and planning our strategy.

CASE STUDY

Investor views (Extracts from November 2013 Investor Perception study) What are a-iTrust’s core strengths? What differentiates a-iTrust from What drives your investment " India is an extremely difficult market other listed Indian property in a-iTrust? and a-iTrust has been operating there companies? "Belief in long term attractiveness of successfully since 2007 I believe. " Transparency, governance, business company and its leading position in They are doing well and this has been model, ‘everything’." Indian property as well as the belief the company’s strength." and high confidence that a-iTrust will " Income stability; strong cash flows manage investment well." " (1) Very good and strong and distributions." management team. "Combination of high potential (2) High quality assets in India." growth and high yield. The investment looks to remain very attractive. In addition, the standard of the company is also very good."

34 We actively engage sell-side analysts and institutional These visits provide them with first-hand insight into the investors via face-to-face meetings and conference calls. overall quality of a-iTrust’s portfolio. Individual unitholders All requests from institutional investors to meet are given the opportunity to meet and seek clarification management are met insofar as our schedules permit. from Directors and management at each annual general Besides quarterly earnings conference calls, we meeting. We focus on responding to all queries from participate in local and overseas investor conferences individual unitholders in a timely fashion. and non-deal roadshows to meet unitholders and In FY13/14, we met or spoke to 170 analysts and potential investors. investors. The charts show the breakdown in terms of Apart from such discussions, we also conduct site visits the investor type, meeting type and locations where we to our properties in India for fund managers and analysts. met them.

Investor type Meeting type Meeting locations

12% 37% 29% 7% 12% Face- Broker Conference to-face conference UK call Sell-side meeting analyst

12% 22% US non-deal roadshow 13% Hong Kong

40% Existing 48% unitholder 29% Potential 39% investor Conference call Singapore

35 Investor relations

Website Research coverage Media Our corporate website is constantly Four brokerage firms cover a-iTrust We focus on increasing a-iTrust’s updated to ensure that investors as at end March 2014. We maintain media exposure by ensuring all can access relevant and up-to- open channels of communication to press releases are distributed to date information about a-iTrust. ensure that the analyst community key media agencies, including print, All information uploaded on the understand and are apprised of our online and broadcast medium, in Singapore Exchange website is performance and strategy. Singapore and India. In addition, we made available on our website. maintain good relationships with Investors may also view webcasts Brokerage firm various media agencies and respond of our half and full year results i) Citigroup promptly to media requests for presentation online. ii) DBS Vickers information or interviews. iii) JP Morgan www.a-itrust.com iv) Standard Chartered Go online to view our press releases and announcement: Go online to view our press http://aitrust.listedcompany.com/ releases and announcement: newsroom.html/cat/522 http://aitrust.listedcompany.com/ newsroom.html/cat/522

Financial calendar (tentative) Enquiries

July 2014 1Q FY14/15 results announcement Unitholders with queries relating to a-iTrust or their October 2014 2Q FY14/15 results announcement unitholding may contact: November 2014 1H FY14/15 distribution to unitholders The Trustee-Manager January 2015 3Q FY14/15 results announcement Ascendas Property Fund Trustee Pte Ltd April 2015 4Q FY14/15 results announcement James Goh May 2015 2H FY14/15 distribution to unitholders Head, Investor Relations June 2015 Annual general meeting Phone: (65) 6774 1033 Email: [email protected] Go online to view the confirmed dates of upcoming events: http://aitrust.listedcompany.com/financial_ Unit Registrar calendar.html Boardroom Corporate & Advisory Services Pte Ltd Phone: (65) 6536 5355 Fax: (65) 6536 1360 Website: www.boardroomlimited.com

Go online for leasing enquiries: www.a-itrust.com/contact_leasing.html

Go online to sign up for free email alerts: http://aitrust.listedcompany.com/email_alerts.html

36 Unit price review

a-iTrust unit price chart from 2 April 2013 to 31 March 2014 Period open S$0.82 Period close S$0.77 0.90 Period high S$0.86 0.85 Period low S$0.60 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 Jul 13 Jan 14 Jun 13 Oct 13 Apr 13 Sep 13 Feb 14 Dec 13 Mar 14 Aug 13 Nov 13 May 13

Average monthly trading volume (‘000) Go online to download a-iTrust’s historical trading price and volume data: http://aitrustlistedcompany.com/ 2,023 historical_price.html

1,044 1,039 858 833 892 871 770 773 Average 648 653 653 921 Jul 13 Jan 14 Jun 13 Oct 13 Apr 13 Sep 13 Feb 14 Dec 13 Mar 14 Aug 13 Nov 13 May 13

a-iTrust FY13/14 unit price performance compared to market indices

19%

-4% -7% -13% -18% FTSE ST Bombay SE a-iTrust FTSE STI Index REIT Index Sensex Index Realty Index

37 Earnings review

a-iTrust’s functional currency is the Indian Rupee, which is the currency that its earnings are denominated in. The reporting currency for the Trust is Singapore dollar as distribution to unitholders is made in Singapore dollar.

FY13/14 FY13/14 FY12/13 INR YoY Comparison of FY13/14 to FY12/13 S$'0001 ࡩ mil ࡩ mil Change for Indian Rupee earnings

Property Income Base rental income 70,066 3,350 3,241 3% Base rental income improved as a result of positive rental reversions and higher portfolio occupancy.

Amenities income 1,920 92 92 - Amenities income was stable at ࡩ92 million. Income from leasing amenity space, including canteen and business centre.

Fit-out rental income 1,795 86 82 5% The increase was due to the commencement Income from providing fit-out provisions of large leases with fit-out rental provisions in (including renovations and furnishings) FY13/14. to tenants.

Operations, maintenance and 41,908 2,006 1,900 6% Operations, maintenance and utilities (“O&M”) utilities income income increased as the O&M fee was adjusted Income from providing O&M services to reflect higher operating costs. and utilities. It includes the cost of electricity supplied to tenants from the dedicated power plant in ITPB. Car park and other income 5,020 240 226 6% The increase was mainly due to the higher Includes miscellaneous income such as utilisation of car parking facilities. kiosk rental and advertising revenue.

Total property income 120,709 5,774 5,540 4% Total property income increased by 4% to ࡩ5,774 million.

Property Expenses

Operating, maintenance (10,184) (488) (435) 12% The increase was largely due to higher and security operating costs. Costs incurred for the day-to-day running and upkeep of our properties, which are recovered via O&M fee from tenants. Service and property taxes (2,506) (120) (120) - Service and property tax was stable at ࡩ120 million.

Property management fees (6,254) (299) (298) - Property management fee was stable at Fees paid to the Property Manager, ࡩ299 million. which includes property management fees, lease management fees, marketing services commissions and project management fees. Utilities expenses (24,571) (1,174) (1,199) (2%) Utilities expense fell slightly toࡩ1,174 million due Costs incurred for the consumption of to a one-off write-back of ࡩ72 million in FY13/14. electricity, water and gas. It includes the cost of operating the dedicated power plant in ITPB. 47.9

Other property operating (5,088) (243) (324) (25%) The decline was largely due to the reversal of ࡩ expenses provisions for rental arrears in FY13/14. Includes general management and other administration expenses.

Total property expenses (48,603) (2,324) (2,376) (2%) Total property expenses were down by 2% to ࡩ2,324 million. Based on exchange rate of S$1: on exchange Based

1 38 FY13/14 FY13/14 FY12/13 INR YoY Comparison of FY13/14 to FY12/13 S$'000 ࡩ mil ࡩ mil Change for Indian Rupee earnings

Net Property Income 72,106 3,450 3,165 9% Net property income increased by 9% to ࡩ3,450 million.

Trustee-Manager's fees (6,692) (320) (299) 7% The increase was in line with higher Fees paid to the Trustee-Manager, which portfolio valuation and net property income. includes base fees (0.5% of Trust property value), performance fees (4.0% of net property income), and Trustee fees (0.02% of Trust property value)

Other trust operating expenses (1,182) (56) (49) 14% The increase was mainly due to tax advisory fees incurred in FY13/14.

Realised fair value gain on 17 4 511 (99%) Realised gain on derivatives fell as a derivative financial instruments one-off gain of ࡩ490 million (S$11.3 million) Derivative financial instruments include was recognised last year. In FY12/13, (1) forward currency contracts used to hedge proceeds from a private placement were income repatriated from India to Singapore, used to prepay loans. In conjunction with (2) interest rate swaps used to change the loan settlements, the associated floating-rate debt to fixed-rate obligation, and interest rate and cross-currency swaps (3) cross-currency swaps used to hedge were pre-terminated, resulting in realised Singapore Dollar-denominated debt to Indian gain on derivatives. Rupee-denominated debt. Fair value changes on derivatives are realised when the instruments expire or are terminated.

Realised exchange loss (912) (45) (1,465) (97%) Realised exchange loss decreased as Realised foreign exchange gain or loss arises a one-off loss of ࡩ1,437million (S$32.9 mainly from loan settlements or inception of million), from the settlement of Singapore hedges, cash balances and borrowings not Dollar-denominated loans, was recognised denominated in Indian Rupee. in FY12/13. eign exchange.

Finance cost (13,306) (637) (611) 4% Finance costs increased slightly mainly due to additional borrowings taken to finance the investment in aVance 3.

Interest income 9,372 450 185 143% The increase was due to higher interest rates on deposits in India and additional interest income from the investment in aVance 3.

Ordinary profit before tax2 59,403 2,845 1,437 98% Ordinary profit before tax increased by 98% to ࡩ2,845 million. Profit before changes in fair value of investment properties, and unrealised loss/gain on deriative financial instruments and for and financial instruments properties, and unrealised loss/gain on deriative value of investment fair changes in before Profit

2 39 Earnings review

FY13/14 FY13/14 FY12/13 INR YoY Comparison of FY13/14 to FY12/13 S$'000 ࡩ mil ࡩ mil Change for Indian Rupee earnings

Ordinary profit before tax 59,403 2,845 1,437 98%

Distribution statement

Distribution adjustments As a Business Trust, a-iTrust computes distribution to unitholders based on cash flow generated from operations, rather than accounting profit. To derive the income available for distribution, adjustments are made to accounting profit to remove primarily non-cash accounting entries.

Current income tax expense (14,438) (691) (516) 34% The increase was mainly due to higher Current income tax expense excludes deferred withholding and dividend distribution taxes. income tax expense.

Trustee-Manager fees payable in units 3,268 156 146 7% The increase was in line with higher The Trustee-Manager has elected to receive 50% portfolio valuation and net property income. of its base fee and performance fee in units and 50% in cash; hence 50% of the fees are added back to the income available for distribution.

Depreciation 98 5 5 - Depreciation remained stable at ࡩ5 million. Depreciation is a non-cash accounting entry that does not affect cash flow.

Amortisation of marketing commission 31 2 14 (89%) Amortisation of marketing commission Amortisation is a non-cash accounting entry that declined to ࡩ2 million. does not affect cash flow.

Realised exchange loss 995 48 948 (95%) The realised exchange loss ofࡩ948 million in FY12/13 arose from the settlement of Singapore Dollar-denominated loans. The sharp appreciation of the Singapore dollar in the periods between the inception and settlement of these loans led to an increase in the loan quanta in Indian Rupee terms. As a result, exchange loss was first recognised, and subsequently realised when the loans were settled. However, since there is no impact on cash flow, the loss is added back to the income available for distribution.

Non-controlling interests (3,226) (154) (138) 12% The increase was due to higher income Income due to non-controlling interests is available for distribution. deducted from income available for distribution.

Total distribution adjustments (13,272) (635) 459 N.M. Total distribution adjustments of ࡩ635 million was subtracted from FY13/14 ordinary profit before tax. In FY12/13, ࡩ459 million was added to ordinary profit before tax.

Income available for distribution 46,131 2,210 1,896 17% Income available for distribution increased by 17% to ࡩ2,210 million.

40 FY13/14 FY12/13 SGD YoY Comparison of FY13/14 to FY12/13 S$'000 S$'000 Change for Singapore Dollar earnings

Indian Rupee/Singapore Dollar FX rate 47.9 43.9 9% The Singapore Dollar on average appreciated by 9% against the Indian Rupee.

Income available for distribution 46,131 43,282 7% The growth in income available for distribution was dampened in Singapore Dollar terms by unfavourable currency movements.

Distribution to unitholders 41,518 38,954 7% The increase was in line with 10% of income available for distribution was withheld to the growth in income available provide greater flexibility in growing a-iTrust. for distribution.

DPU (income available for distribution) (Sߕ) 5.05 5.16 (2%) DPU (income available for distribution) Computed by dividing income available for distribution was down slightly due to the enlarged by the weighted average number of units in the equity base after the private placement financial year. in October 2012.

DPU (distribution to unitholders) (Sߕ) 4.56 4.65 (2%) DPU (distribution to unitholders) was Computed by dividing distribution to unitholders by the 4.56Sߕ in FY13/14. weighted average number of units in the financial year.

41 Sustainability report

To us, good performance is not just about profit. It is about running our business in the most sustainable and responsible way, which is why we have decided to publish our first sustainability report this year. Here are four elements of sustainability that we have identified as having a material impact on our business:

Financial stability Financial sustainability, investors, & customers

Good governance Code of ethics and conduct, & corporate governance report

Social responsibility People, health & safety, & community

Environmental awareness Energy conservation, carbon emissions, water consumption, & green building certification

Financial stability

Financial sustainability Customers and Hyderabad. Besides engaging There are two aspects of financial To attract top quality customers that partner agents, we network with sustainability – ensuring that our are willing to commit to long leases, our customers' top management operations remain profitable; and we offer innovative and integrated team via 'Ascendas Connect’, which that our capital structure remains solutions that go beyond satisfying is held in all three cities. In FY13/14, robust and is able to meet financial their basic needs. Throughout their over 350 customers came together commitments when due. Analysis of tenure with us, we maintain open to enjoy a fun-filled evening over a-iTrust’s profitability can be found in communications to ensure smooth cocktails and entertainment. the Earnings Review section on page operations, and in the process, forge 38, while you may refer to page 30 of enduring relationships with our We constantly work on improving the Capital Management section for customers. This way, our customers our products and services. details of the Trust’s capital structure. can take their minds off their real Every year, we commission an estate needs and be able to focus on, independent consultant to conduct Investors and compete more effectively in a detailed survey to solicit customer their business. Our unitholders provide us with capital feedback. Our customers are which is used to fund our operations. asked to rate our performance We actively engage our customers We actively engage both potential on five factors, namely property through various networking events and existing investors via face-to-face management, lease, finance, and meetings. Events such as meetings and conference calls. In marketing and company image. The ‘Ascendas Interface’ allow us to addition, our website is an excellent results from the survey are then socialise and interact with our repository of operational and financial reviewed, and improvements are partner property agents where information to help investors better made to address specific concerns we show our appreciation for their assess a-iTrust. More information on highlighted by customers. partnership and support. Every year our investor relations efforts may be over 300 property agents attend this found on page 34. event across Bangalore, Chennai Go to our website: www.a-itrust.com

42 Good governance

Code of ethics and conduct Corporate governance As an externally managed business trust, a-iTrust has no We believe in establishing a strong and effective employees, and is managed by Ascendas Property Fund corporate governance culture to protect the interests of Trustee Pte. Ltd. (“Trustee-Manager”), which is based our unitholders. In recognition of our efforts to enhance in Singapore. The properties in India are managed on transparency and corporate governance, we were proud to the ground by Ascendas Services (India) Private Limited receive the Merit award at the 2013 Singapore Corporate (“Property Manager”). All references to employees refer to Governance Award for the second year in a row. the staff of the Trustee-Manager and/or Property Manager. For full details of our corporate governance matters, please The employees of both the Trustee-Manager and Property refer to the Corporate Governance Report which can be Manager are committed to complying with Ascendas found on page 50. Group’s Code of Ethics and Conduct. This ensures that employees exhibit high standards of discipline and integrity when conducting official duties on behalf of the Trust.

Social responsibility1

People Singapore India Our employees underpin our Breakdown by gender competitiveness and success. We aim to attract, retain and develop the 33% 18% Female brightest and best people in our industry. Female We provide a stimulating, challenging and rewarding environment in which our people can work and be supported in developing their career paths and 82% skill sets. 67% Male Male As a fair employer, we are committed to the five principles of fair employment:

1) Recruit and select employees on the basis of merit (such as skills, experience or ability to perform the job), regardless of age,race, gender, religion, family status or disability. Breakdown by age 17%5% 14% Under 3050 & above Under 30 2) Treat employees fairly and with respect and implement progressive human resource management systems.

3) Provide employees with equal opportunity to be considered for 83% 81% training and development based on 30-49 30-49 their strengths and needs, to help them achieve their full potential.

4) Reward employees fairly based on their ability, performance, contribution and experience.

5) Abide by labour laws and adopt Tripartite Guidelines, which promote fair and responsible employment practices. All references to employer pertain to the Trustee-Manager and Property Manager. Trustee-Manager pertain to the to employer All references

1 43 Sustainability report

As a forward-looking employer, we invest in enhancing our Health & safety people’s skills and knowledge, providing career opportunities Workplace health and safety is a key measure for us and through challenging assignments, and creating a friendly in 2013 we are happy to report that we have maintained environment that promotes teamwork. our compliance to Ascendas Group’s Workplace Safety and To build a performance-driven culture, we have adopted a Health Management System policy, and there have been no systematic approach in performance management. At the health and safety incidents reported at any of our locations. organisational level, we use a Balanced Scorecard (“BSC”) We have also surveyed our contractors’ compliance and approach for performance targets setting, and these are are pleased to report that there have been no reported cascaded to departments and individual performance incidents of non-compliance for FY13/14. To date, we have objectives. BSC targets are tracked and reviewed on a recorded no incidents or fines for non-compliance related to quarterly basis. environmental laws. Our reward and recognition strategy aims to inculcate We will continue to assess the health and safety impact the right values and reinforce positive behaviours to drive of our operations through the life cycle of our activities, employee performance. We reward staff based on their from project development through property management contributions by adopting a ‘Pay for Performance’ approach to property enhancement stages. In our development and to strengthen our performance-driven culture. enhancement activities, we ensure that we work with qualified contractors and we hold them responsible for the Besides the formal reward and recognition through salary management of required health and safety standards. adjustment and variable bonus, there are other forms of rewards and recognition to encourage outstanding Community performance and reinforce positive behaviours: We are committed to supporting the communities in which Long Service Awards; we operate. We seek to engage positively with community Qualification Awards; stakeholders and work in partnership with them. By volunteering and donating our resources and expertise to Service Excellence Awards; and support a myriad community and charity efforts, we hope to Innovation Awards. make an impact in our key focus areas of arts, community, and environment. In FY13/14, we spent a total of 885 working hours in volunteer activities at various beneficiaries in India.

Arts We support and nurture budding artists, and further enrich and grow audiences to support the development of local arts.

CASE STUDY

Art Chennai

International Tech Park Chennai was one of the venues for the popular ‘Art Chennai’, a week long art festival featuring modern and contemporary art that was held in February 2014. The event was held in association with ART CHENNAI, one of South India’s largest art festivals, for the second consecutive year.

The installation at International Tech Park Chennai called ‘Liberation of Confinement’ by Sachin George Sebastian is made of paper. The artist works with paper by cleverly manipulating paper to create multitudes of experiences – dense and singular, solid and featherweight, multi and one-dimensional.

44 Youth We equip children and youths with the necessary resources so that they have equal opportunities to unlock their potential and succeed in life. Ascendas and Tamil Nadu Differently-Abled Federation Charitable Trust, came together for the seventh consecutive year to present the Ascendas Excellence Award 2013. The award ceremony celebrated Children’s Day with differently-abled children and awarded 15 children for their special talents. The award, comprising a trophy, a certificate and cash prize each, was given to 15 special children achievers for their achievement in the fields of academics, sports, music and art. The Ascendas Excellence Award was initiated in the year 2007 and has to date recognised the talents of 100 differently-abled individuals of Tamil Nadu. This award is a part of Ascendas’ endeavour to encourage differently-abled individuals to achieve their dreams and acknowledge their achievements.

CASE STUDY

Under the stars

‘Under The Stars’, a first of its kind The event also featured musical charity event in India, was hosted at performances, live entertainment, the International Tech Park Bangalore a bonfire and other fun activities Cricket Ground in October 2013. and food stalls to ensure maximum participation and consequently raised The event was aimed at raising funds funds for the various charities. Young for various charitable institutions IT professionals came out whole- working towards the cause of heartedly to support the cause and homeless and less fortunate proceeds collected as participation fee children. ‘Under the Stars’, arranged was donated to one of the partnering in association with 11 partner non- charity organisations of their choice. governmental organisation, was attended by over 300 Bangaloreans Under the Stars also marked the who came together to sleep beginning of annual giving festival ‘Joy under the stars without shelter to of Giving Week’ which is celebrated create awareness about the life of from 2-8 October, every year. homeless people.

Environment We support and nurture education or awareness programmes to protect the natural biodiversity. Ascendas Go Green 2013 was celebrated at Bangalore, Chennai and Hyderabad, spread across May and June 2013. Various Go-green initiatives for the month long event included recycling campaigns such as metal art exhibition and recycled art contest, organic food counters, sale of saplings, vehicle health check camp and safely drive, eco-bazaar and art workshops. Be it a flash dance performance and music concert at The V and ITPB, Recycled Art exhibition at ITPB or Green Walk at our Hyderabad Parks, spreading environment awareness has never been so cool, artistic, fun and fashionable.

45 Sustainability report

Environmental awareness We take a holistic view of our real estate business to reduce the impact of our business activities on the natural environment. We ensure that our IT Parks are energy efficient, and minimise the environmental impact through the entire life cycle, starting from design to building maintenance and operations.

Energy conservation Total energy consumed (MWh) In FY13/14, we made considerable investments in our properties for energy saving initiatives which generated energy savings of 7,175 MWh in the year. 61,190 This represented a 12% decline from the previous year to 54,015 MWh. 54,015 We proactively conduct periodic energy audits and carry out energy-saving initiatives in our properties to improve energy efficiency. These include projects to optimise our air-conditioning and chiller system as well as to retrofit our lighting system.

FY12/13 FY13/14

Carbon emissions Carbon emissions (tonnes CO2) We track our carbon footprint in terms of the total carbon emissions generated through our operations. In FY13/14, our total carbon emissions decreased by 55,316 12% to 48,829 tonnes compared to FY12/13. 48,829

FY12/13 FY13/14

Water consumption Water consumption (M3) The overall water consumption has been maintained at more or less constant levels taking into account addition of square footage of built 518,121 526,020 up space and increasing occupancy.

FY12/13 FY13/14

46 The Pinnacle

Green Building Certification U.S. Green Building Council (“USGBC”) Leadership in Energy & Environmental Design (“LEED”) is a green building certification program that recognises best-in-class building strategies and practices. To receive LEED certification, building projects satisfy prerequisites and earn points to achieve different levels of certification. As at 31 March 2014, we have two buildings with LEED Silver accreditation and one building each with LEED Gold and Platinum accreditation.

Year Project Award Comments

2011 The Pinnacle, USGBC LEED Silver, It was the first multi-tenanted building in International Tech Park Operations and India to be certified under the new version Chennai Maintenance LEED EB O&M v2009 standard.

2011 The Voyager, IGBC LEED Silver, International Tech Park Core and Shell Bangalore

2012 The Crest, International USGBC LEED Gold, It was the first multi-tenanted building Tech Park Chennai Operations and in India to be certified LEED Gold Maintenance under the new version LEED EB O&M v2009 standard.

2013 The Aviator, International IGBC LEED Platinum, Tech Park Bangalore Core and Shell

Where possible, we will source for green building materials and technologies to reduce the environmental impact of our construction and operation activities. We will also consistently apply green technology and sustainable practices across all of our properties and offices.

47 Corporate governance report

Introduction Board matters Ascendas India Trust (“Trust”) is a Business Trust Primary functions of the Board of Directors of the constituted under Singapore’s Business Trusts Act, Trustee-Manager Chapter 31A, and is listed on the Main Board of SGX-ST. The primary function of the Board of Directors of It is principally regulated by: the Trustee-Manager (“Board”) is to oversee the i) The Securities and Futures Act, Chapter 289 (“SFA”); management of the Trust’s assets and liabilities for ii) The Business Trusts Act (“BTA”); the benefit of Unitholders, including generating rental iii) The Listing Manual of SGX-ST (“Listing Manual”); and income and enhancing assets so as to maximise returns from investments over time. It is the responsibility of the iv) The Trust Deed. Board to set the strategic direction of the Trust, provide guidance towards achieving effective and efficient The Trust has also voluntarily adopted certain key management of the Trust, review and approve annual provisions of the Code on Collective Investment business plans, budgets, investments and funding of Schemes (“CIS”), issued by the Monetary Authority of the Trust, for the long term success of the Trust. The Singapore (“MAS”), in particular, the Property Funds Board has established a framework of prudent and Appendix under Appendix 6 of the CIS. effective risk management practices and internal control The Trust is managed by Ascendas Property Fund Trustee procedures to assess and manage business risks and Pte. Ltd., the Trustee-Manager. The Trustee-Manager ensure compliance with applicable laws. The Board’s role recognises that a strong and effective corporate includes ensuring that obligations to Unitholders governance culture is critical to safeguard the interests are understood and met. of the Trust’s unitholders (“Unitholders”) as a whole and is committed to maintaining high standards of corporate Delegation by the Board governance. The Trustee-Manager also ensures that The Board has delegated the day-to-day operations applicable requirements, laws and regulations, including of the Trust to an experienced and qualified team those mentioned above are complied with, and that the (“Management”) headed by Mr Jonathan Yap, Executive Trustee-Manager's obligations under the Trust Deed are Director and CEO of the Trustee-Manager. The Board properly carried out. is also assisted by Board Committees in the discharge of its functions, namely the Audit Committee (“AC”), This section describes the main corporate governance the Investment Committee (“IC”), the Nominating policies and practices that the Trustee-Manager has Committee (“NC”) and the Human Resource and implemented and abides by, with reference to the Remuneration Committee (“HRRC”), each of which revised Code of Corporate Governance 2012 operates under written terms of reference that set out (“2012 Code”). the authority and duties of each Committee. For more information on these Committees, please refer to page 52 (AC), page 49 (IC), page 51 (NC) and page 52 (HRCC).

Board and committee meetings The Board meets at least five times a year to discuss and review the key activities, strategies, policies, potential acquisitions and financial performance of the Trust, including approving the quarterly and full- year financial results. As and when necessary, Board meetings are also supplemented by resolutions circulated to directors for decisions.

48 The proposed meetings for the Board and all Board Committees for each new calendar year are set out in a schedule of meetings, which is sent to all the Board members before the start of each calendar year with a view to facilitate attendance by Board members. A record of directors’ attendance at Board and Committee meetings for FY13/14 is shown below:

Human Resource Audit Investment Nominating and Remuneration Board Committee Committee Committee Committee Name of Director Meeting Meeting Meeting Meeting Meeting (i) Mr Girija Pande was appointed as a member of IC on 1 Mr Philip Yeo Liat Kok 4 - - 1 2 April 2013. Mr David Lim Tik En 7 4 3 1 2 (ii) Ms Chong Siak Ching retired as Mr Michael Grenville Gray 6 4 - - - Director on 26 June 2013 and ceased to be a member of IC, Mr Rakesh Kumar Aggarwal 7 - 3 - - NC and HRRC on 26 June 2013. Mr T. V. Mohandas Pai 7 4 3 - - (iii) Mr Ng Eng Leng Mr Girija Prasad Pande (i) 7- 3 - - was appointed as Director and a

(ii) member of AC on 1 Ms Chong Siak Ching 1- - 1 1 April 2013. Mr Ng Eng Leng (iii) 74 - - - (iv) Mr Manohar Khiatani was Mr Khiatani Manohar Ramesh (iv) 6- 2 - 1 appointed as Director and a member of IC,

(v) (v) (v) NC and HRRC on 1 Mr Jonathan Yap Neng Tong 6 3 31 2 June 2013. Total no. of meetings held 7 4 3 1 2 (v) Attended by invitation.

Records of all such meetings including discussions on key deliberations and decisions taken are maintained by the Company Secretary of the Trustee-Manager (“Company Secretary”). The Trustee- Manager’s Articles of Association and the Board Committees' written terms of reference allow for the meetings of the Board and Board Committees to be held via teleconferencing.

Internal guidelines The Board is assisted by the IC in the evaluation and approval (within designated limits) of investments, The Board has adopted a set of internal guidelines and divestments, financing and bank facilities. The IC also financial regulations, which set out approval limits for, reviews and provides recommendations to the Board amongst others, capital expenditure, new investments on investment policies and the strategic direction of the and divestments, the operation of bank accounts, and Trust. The IC comprises 6 directors, namely Mr David Lim bank borrowings. The Board approves transactions as Chairman, Mr Rakesh Aggarwal, Mr Manohar Khiatani, exceeding certain threshold limits, while delegating Mr Mohandas Pai, Mr Girija Pande and Mr Jonathan Yap. authority for transactions below those limits to the IC. Save for Mr Manohar Khiatani and Mr Jonathan Yap, all For transactions below a certain level, the authority is IC members are considered independent. The terms further delegated to Management to facilitate operational of reference of the IC require at least two Committee efficiency. members to be independent of Management and business relationships with the Trustee-Manager and The internal guides adopted by the Board also set out every substantial shareholder of the Trustee-Manager. key matters that are specifically reserved for approval by the Board, such as a-iTrust’s long term objectives Board orientation and training and strategy, its policies and annual budgets, risk management framework and internal controls to Every newly appointed director of the Board receives safeguard the Unitholders’ interests and assets, major a formal letter of appointment and an induction pack capital projects, policies for compliance with legislative containing information and documents relating to the role and regulatory requirements or other requirements with and responsibilities of a director, Board processes, the similar effect, the formation of Board Committees and Trustee-Manager’s corporate governance practices and their terms of reference (including delegation of Board relevant policies and procedures. duties to such Committees with or without limit) and The Trustee-Manager also conducts an induction any other matters which require the Board’s approval as programme for newly appointed directors to familiarise prescribed under relevant legislation, regulations or the them with the Trustee-Manager’s Board processes and provisions of the Trust Deed. the Trust’s business, internal controls and governance practices.

49 Corporate governance report

Directors are provided with regular updates and/or Board independence briefings from time to time by professional advisers, The Board has conducted an annual review of each auditors, Management and the Company Secretary director’s independence in accordance with the principles in areas such as directors’ duties and responsibilities, referred to above, taking into account the views of the regulatory requirements, corporate governance NC. The following directors are considered independent: practices, risk management issues, changes in financial reporting standards and tax, including Indian Mr Philip Yeo Liat Kok tax, laws and practices. A director may also contact Mr David Lim Tik En Management and the Company Secretary if additional Mr Michael Grenville Gray information or clarification is required relating to the Mr Rakesh Kumar Aggarwal aforementioned matters. Mr T. V. Mohandas Pai Board composition and guidance Mr Girija Prasad Pande; and Board composition Mr Ng Eng Leng (collectively, the “Independent Directors”). There are nine directors on the Board, seven of whom (including the Chairman) are independent. Mr Manohar Khiatani and Mr Jonathan Yap are Independence of the Board is maintained based on the considered non-independent directors. Mr Manohar following principles in accordance with the Business Khiatani is a director on the Board of Ascendas Pte Ltd, Trusts Regulations 2005 and the 2012 Code: a deemed controlling Unitholder of the Trust and the i) at least the majority of the Board shall be intermediate holding company of the Trustee-Manager, independent of Management and business and Mr Jonathan Yap is CEO of the Trustee-Manager. relationships with the Trustee-Manager; The Statement on Composition of the Board of Directors ii) at least one-third of the Board shall be independent of the Trustee-Manager pursuant to Regulation 12(8) of of Management and business relationships with the the Business Trusts Regulations 2005 can be found on Trustee-Manager and every substantial shareholder Page 70 of this Annual Report. of the Trustee-Manager; and iii) at least the majority of directors shall be independent of any single substantial shareholder of Chairman and Chief Executive Officer the Trustee-Manager. The positions of Chairman and CEO are held by two The directors are experienced business leaders and different persons to ensure an appropriate balance of professionals with diverse backgrounds including power and authority, increased accountability and greater real estate, India business, accounting and finance, capacity of the Board for independent decision making. legal, business, management and strategic planning. The division of responsibilities between the Chairman They actively participate in setting and developing and the CEO have been clearly established, set out in strategies and goals for Management and in reviewing writing and agreed by the Board. The Chairman and the and assessing Management’s performance. There is CEO are not immediate family members. a consistent and robust exchange of ideas and views between the Board and Management which ensures The Chairman’s responsibilities include setting the that diverse and objective perspectives on issues agenda and ensuring that adequate time is available are carefully examined when making decisions on for discussion of all agenda items including strategic transactions and in shaping the Trust’s strategy. issues, ensuring that the Board engages Management in constructive debate on strategy, business operations, The composition of the Board is reviewed annually to enterprise risk and other plans, facilitating the effective ensure that the Board has the appropriate size and contribution of non-executive directors and promoting mix of expertise and experience. The Board is of the high standards of corporate governance. view that the current number of directors and the composition of the Board are appropriate and effective, The CEO is responsible for working with the Board to taking into consideration the scope and nature of determine the strategy for the Trust and has full executive operations of the Trust and its subsidiaries. responsibilities over the business and operational decisions in the day-to-day management of the The profiles of all directors are set out on pages 12 to Trustee-Manager. 15 of this Annual Report.

50 The CEO and Management of the Trustee-Manager are matters. In addition, Management provides monthly accountable to the Board. management accounts to the directors to keep them updated on the financial performance, position and outlook of the Trust. Board membership At quarterly Board meetings, directors are updated on The NC is responsible for making recommendations to developments and changes in the operating environment, the Board on all appointments and re-appointments to including changes in the accounting standards, changes the Board and oversees the succession and leadership in Singapore and India taxation, and laws and regulations development plan of the Trustee-Manager. The NC also affecting the Trust and/or the Trustee-Manager. reviews the independence of directors annually. The NC comprises Mr Philip Yeo, an Independent Director, as In addition, the Board has independent access to Chairman, Mr David Lim, who is also an Independent Management, the Joint Company Secretaries, internal Director, and Mr Manohar Khiatani. and external auditors, at all times. Where necessary, the Board will request for independent professional advice to New directors are appointed by way of a Board resolution enable directors to discharge their duties effectively. after the NC recommends their appointments to the Board for approval. The search for candidates to be The role of the Joint Company Secretaries has been appointed to the Board is conducted through search by clearly defined by the Board. The Joint Company and referral to the Trustee-Manager. Suitable candidates Secretaries administer, attend and prepare minutes are carefully evaluated by the NC in accordance with the of Board meetings and proceedings of all Board criteria set out in the written terms of reference of the Committees. They advise the Board on all corporate NC so that decisions made on appointments are objective governance matters and assist the Chairman of the and well supported. Board and the Board Committees in implementing proper procedures for compliance with the Trust Deed and relevant rules, regulations, best practices and internal Board performance policies. Under the direction of the Chairman of the Board and the Board Committees, the Joint Company A review of the Board’s performance is carried out Secretaries are responsible for ensuring information flows annually to assess the effectiveness of the Board within and among the Board, the Board Committees as a whole and the contributions of each director. and Management. They also work with Management The review allows each director to express his/her to ensure that Board and Board Committee papers are personal and confidential assessment of the Board’s provided to each director ahead of meetings. The Joint overall effectiveness in accomplishing its goals and Company Secretaries and the CEO are the primary discharging its responsibilities. It provides insights into channels of communication between the Trustee-Manager the functioning of the Board, whilst identifying areas that and SGX-ST. might need strengthening and development. The review covers the Board size, composition, independence, access to information, processes, accountability and Remuneration matters oversight, and standards of conduct. All fees and remuneration payable to directors, key Accordingly, at the conclusion of FY13/14, each director executives and staff of the Trustee-Manager in respect was required to complete a Board performance evaluation of services rendered to the Trustee-Manager, will be paid questionnaire. Based on the questionnaire returned by by the Trustee-Manager and not out of the property of each director, a consolidated report was prepared for the Trust. presentation to the NC. The NC will recommend to the Board on proposed changes, if necessary, to maintain the The structure of directors’ fees for Non-Executive effectiveness and efficiency of the Board. Directors comprises a base fee for serving as a director and additional fees for serving on Board committees. It takes into account the following: Access to information Financial performance of the Trust and the Trustee-Manager; Management provides the Board with complete and Directors’ responsibilities and contributions; and adequate information prior to Board meetings. The information provided includes the background and Industry practices and norms on remuneration, relevant details on matters to be brought before the including the guidelines set out in the Statement of Board, updates on financial results, business updates, Good Practice issued by the Singapore Institute property information, changes to regulations including of Directors. India taxation, accounting standards and other relevant

51 Corporate governance report

Directors’ fees paid to each of the following Non- As stated above, the Board has unrestricted access Executive Directors for FY13/14 did not exceed to information from Management and Management S$250,000: regularly provides the Board with reports on the Trust’s Mr Philip Yeo Liat Kok; performance, position and prospects. Such reports include the Consolidated Income Statement, the Mr David Lim Tik En; Statement of Financial Position, a comparison of actuals Mr Michael Grenville Gray; against budgets and explanatory notes for significant Mr Rakesh Kumar Aggarwal; variances for the month and year-to-date performance. Mr Ng Eng Leng; Mr T. V. Mohandas Pai; Audit committee Mr Girija Prasad Pande; and Mr Khiatani Manohar Ramesh. The AC comprises Mr Michael Gray as Chairman, Mr David Lim, Mr Mohandas Pai and Mr Ng Eng Leng. The Trustee-Manager advocates a performance-based All AC members, including the Chairman, are remuneration system for key executives of the Trustee- considered independent. Manager. The system is responsive to the market The Board is of the view that the members of the AC are and based on individual employee’s performance. The appropriately qualified to discharge their responsibilities. remuneration structure is designed as such to retain, Mr Michael Gray, Mr David Lim and Mr Mohandas Pai reward and motivate the individual to stay competitive have extensive accounting and related financial and relevant. The total remuneration mix of key management expertise and experience while Mr Ng Eng executives comprises a fixed annual salary and annual Leng is a qualified lawyer with considerable experience performance bonus. The fixed annual salary component and expertise. includes the annual basic salary plus fixed allowances. The annual performance bonus is tied to the individual The AC’s primary role is to assist the Board in discharging employee’s performance and the performance of the its statutory and other responsibilities relating to internal Trust, which aligns employee performance to the goals of controls, financial and accounting matters, compliance, the Trust. business and financial risk management. The AC’s responsibilities include: No compensation is payable to any director, senior reviewing with the external and internal auditors, management or staff of the Trustee-Manager in the the audit plans and audit reports and the auditors’ form of options in units or pursuant to any bonus or evaluation of the system of internal accounting profit-sharing plan or any other profit-linked agreement or controls, based on the recommendations and arrangement under the service contracts. observations of the auditors;

Directors’ fees and the remuneration of key executives reviewing the quarterly and annual financial statements of the Trustee-Manager are reviewed and approved by and the external auditor’s report on the annual financial the HRRC. The members of the HRRC are Mr Philip statements of the Trust before submission to the Yeo, who is an Independent Director, as Chairman, Mr Board of Directors; David Lim, who is also an Independent Director, and Mr reviewing the assistance given by the Management of Manohar Khiatani. the Trustee-Manager to the auditors of the Trust; reviewing the policies and practices put in place by Accountability the Management of the Trustee-Manager to ensure compliance with the applicable laws, regulations, The Board is responsible for providing a balanced and guidelines and constitutional documents of the Trust; comprehensive assessment of the Trust’s performance, reviewing the procedures put in place to address position and prospects, including interim and other price any conflict that may arise between the interests of sensitive public reports and reports to the regulators, the Unitholders and those of the Trustee-Manager, if required. Financial reports and other price sensitive including interested person transactions, the information are disseminated to Unitholders through indemnification of expenses or liabilities incurred by the announcements via SGXNET, press releases, the Trust’s Trustee-Manager and the setting of fees and charges website, media and briefings to analysts. The Annual payable out of the trust property; Report is sent to all Unitholders and is accessible on the Trust’s website. reporting to the Board of Directors of the Trustee- Manager on any inadequacies, deficiencies or matters

52 of concern of which the AC becomes aware or that as EY is registered with the Accounting and Corporate it suspects, arising from its review of the above Regulatory Authority. described; To assess the independence of the external auditor, the reporting to the Board of Directors of the Trustee- AC also reviewed the non-audit services provided by the Manager on any breach of the Singapore Business external auditor during the financial year and the quantum Trusts Act or any breach of the provisions of the of fees paid for such services. The AC is satisfied that Trust Deed of which the AC becomes aware or that the independence of the external auditor was not it suspects; compromised in any way by the provision of such non- reporting to the Monetary Authority of Singapore if audit services. the AC is of the view that the Board of Directors of the Trustee-Manager has not taken, or does not propose to The table below sets out the fees and expenses paid/ take, appropriate action to deal with a matter reported accrued to EY for FY13/14: by the AC to the Board of Directors; Nature of services Figures in $’000 % reviewing the independence and objectivity of the external auditor annually, including considering the Audit fees 240 68 nature and extent of non-audit services performed by Other Services 114 32 the external auditors; Total 354 100 meeting with the external and internal auditors, without the presence of the Management of the Trustee- On the basis of the above, the AC has recommended to Manager, at least once annually; the Board the re-appointment of EY as the independent recommending the appointment, re-appointment external auditor of the Trust and its subsidiaries at the or removal of the external or internal auditors to coming Annual General Meeting of the Unitholders. the Board; Whistleblowing policy investigating any matters within the AC’s terms of reference, whenever it deems necessary; and The Trustee-Manager adopts a zero tolerance approach towards fraud. The Board has put in place a whistle- undertaking such other functions as may be agreed blowing policy and procedures which provide employees to by the AC and the Board of Directors of the with well-defined and accessible channels for reporting Trustee-Manager. suspected fraud, corruption, dishonest practices or other similar matters and for appropriate follow-up action to be For FY13/14, the AC held four meetings during the year. taken. The policy and procedures aim to encourage the The AC has reviewed the external and internal auditors’ reporting of such matters in good faith, with confidence findings. The AC also met with the external and internal on the part of employees making such reports, that auditors without the presence of Management. The AC they will be treated fairly and, to the extent possible, be is satisfied with the processes put in place to mitigate protected from reprisal. fraud risk exposure in the Trust. The AC is also satisfied that the whistle blowing arrangements put in place by Management provide a channel through which staff Internal controls may, in confidence, raise concerns about possible Risk management and internal controls improprieties in matters of financial reporting or other matters. The external and internal auditors have updated The key risks and internal controls of the Trust have the AC members during the AC meetings in FY13/14, on been identified by the Board working with Management changes to accounting standards and issues which have a and with assistance from KPMG LLP (“KPMG”), the direct impact on financial statements. appointed internal auditor. The risks are categorised External audit under strategic, financial, operational, compliance and information technology risk areas. There are Ernst & Young LLP (“EY”) was appointed as the external documented procedures in place that cover certain auditor for the Trust and its subsidiaries. Unitholders’ management accounting, financial reporting, project approval was obtained for their re-appointment at the last appraisal, compliance, information technology and other Annual General Meeting ("AGM") on 25 June 2013. EY will risk management issues. The Board’s approach to risk hold office until the conclusion of the coming AGM. The management and the identified financial risk factors are AC has assessed the performance of the external auditor outlined in Note 28 of the Financial Statements of based on factors such as the performance and quality of the Trust. their audit and the independence of the auditor.

The Trustee-Manager confirms that it has complied with Rules 712(1) and 715 of the Listing Manual of the SGX-ST

53 Corporate governance report

The Board regularly reviews the business risks of the In the financial year under review, the internal audit Trust and examines liability management and risks function of the Trust was carried out by KPMG. including those relating to the India property sector. The overall framework established by the Board to enhance Staffed by qualified executives, KPMG has unrestricted the soundness of the Trust’s financial reporting, risk access to the AC. KPMG reports to the Chairman of the management, compliance, information technology and AC and is guided by the Standards for the Professional internal control systems includes: Practice of Internal Auditing. Formulation and implementation of an enterprise During the year, KPMG adopted a risk-based auditing risk management framework which comprises a risk approach covering financial, operational and compliance register and related internal controls to mitigate such controls. Internal audits were carried out on all the asset risks which is regularly reviewed by the Board; companies of the Trust. Internal audit reports were Audits performed by an internal auditor in accordance submitted to the AC for review and the summary of with the audit plan; findings and recommendations were discussed at the AC meetings. Process improvement initiatives undertaken by the asset companies; The AC has reviewed the internal audit function in Implementation of formal policies and procedures the financial year under review and is satisfied of its relating to the delegation of authority; adequacy and independence from the activities it audits.

Involvement of experienced and suitably qualified Directors’ opinion on internal controls employees who take responsibility for important business functions; and The Chief Executive Officer and the Chief Financial Officer have provided their confirmation to the Board Segregation of key functions which may give rise to that to the best of their knowledge, the system of risk possible errors or irregularities. management and internal controls is adequate, the financial records have been properly maintained and The AC assists the Board in examining the effectiveness the financial statements give a true and fair view of of the Trust’s risk management policies to ensure that a the Trust’s and the Trustee-Manager’s operations robust risk management system is maintained. The AC and finances. reviews and guides Management in the formulation of risk policies and processes to effectively identify, evaluate The Board recognises the importance of sound and manage any material risk. The AC reports to the internal controls and risk management practices to Board on material findings and makes recommendations good corporate governance. The Board affirms its in respect of any material risk issues. overall responsibility for systems of internal controls and risk management of the Trust and its subsidiaries, To support the AC in its review of the internal controls. and for reviewing the adequacy and integrity of those Management completes a checklist verifying that systems on an annual basis. The internal control and risk adequate internal controls were in place to monitor management functions are performed by key executives financial, legal and other relevant risks at the end of the and are reported to the AC for review. financial year. The internal control systems include the safeguarding of In the course of their statutory audit, the external auditor assets, the maintenance of proper accounting records, had considered the risk assessment conducted by the the reliability of financial information, compliance with internal auditor. Any material non-compliance and internal appropriate legislation, regulations and best practices, control weakness, together with the internal auditor’s and the identification and containment of business risks. recommendations to address them, are reported to Such systems are designed to manage rather than to the AC. eliminate the risk of failure to achieve business objectives and provide only reasonable, and not absolute, assurance The Trust also has both a comprehensive insurance against material misstatement of loss. The Board also coverage and a business continuity plan. notes that all internal control systems contain inherent Internal audit limitations and no system of internal controls can provide absolute assurance against the occurrence of material The internal auditors assist the AC in ensuring that errors, poor judgment in decision-making, human error Management maintains a sound system of internal losses, fraud or other irregularities. controls by regular monitoring of key controls and procedures and ensuring their continued effectiveness. 54 Based on the internal controls established and maintained The Trustee-Manager has decided not to allow within the Trust and its subsidiaries, work performed by corporations providing custodial or nominee shareholding the internal and external auditors, and reviews performed services to appoint more than two proxies as it would be by Management, various Board Committees and the logistically challenging to do so. Board, the Audit Committee and the Board are of the opinion that the internal controls addressing financial, The Company Secretary prepares minutes of Unitholders’ operational, compliance and information technology risks meetings, which incorporate substantial comments of the Trust and its subsidiaries were adequate as at 31 or queries from Unitholders and responses from the March 2014. Board and Management. These minutes are available to Unitholders upon request in writing. Communication with unitholders Dealings in units The Trustee-Manager is committed to open and regular communication with the investment community, in The Trust has adopted a trading policy based on SGX- particular, with its Unitholders. Quarterly results with ST’s best practices on dealings in securities. Directors detailed financial and operational metrics are publicly and employees of the Trustee-Manager and relevant available on the Trust’s and SGX-ST’s websites. The Trust’s employees of the Trustee-Manager’s related corporations website contains financial information, annual reports, have been informed about the prohibition from dealing in investor presentation slides, distribution notices, press the Units as follows: releases and other material information which have been during the period commencing one month before uploaded on the SGX-ST’s website. the public announcement of the Trust’s annual financial results and two weeks before the public Investor relations matters are handled by Management. announcement of the Trust’s quarterly financial results, Management meets with analysts and institutional and ending on the date of announcement of the investors regularly to promote the Trust, communicate relevant results; and its business performance and developments, and gather views and feedback. Management participates in local at any time while in possession of price sensitive and overseas conferences organised by securities houses information. and banks. Management also addresses queries raised by individual Unitholders via phone calls, emails or the The policy also discourages trading on short-term website. Such regular interactions allow Management considerations. to consider feedback from the investment community before formulating capital management strategies and Each director of the Trustee-Manager is required to Unitholders’ resolutions. An investor relations policy has give notice in writing to the Trustee-Manager of his/her been put in place as part of Management’s commitment acquisition of Units or changes to the number of Units to provide timely and transparent information to the held in his/her interests, within two business days after investment community. such director is appointed or upon the occurrence of any of the aforesaid events. Conduct of Unitholders’ meetings All dealings in Units by directors will be announced via For the forthcoming AGM, the Board will be in attendance SGXNET, with the announcement to be posted on the to address Unitholders’ queries. EY, the external auditor internet on SGX-ST’s website and the Trust’s website. for the Trust, has also been invited to attend the AGM http://www.sgx.com and assist directors in addressing queries from http://www.a-itrust.com Unitholders relating to the conduct of the audit and the preparation and content of the audited financial In addition, the Trustee-Manager will announce to the statements of the Trust. SGX-ST the particulars of its holdings in the Units and any changes thereto, by the end of the business day following The Board fully supports Unitholders’ participation at the day on which it acquires or disposes of any Units. AGMs. A registered Unitholder may appoint a proxy to attend and vote, or may vote in absentia by facsimile. The Trustee-Manager had employed electronic poll voting since the AGM in 2012. It also promptly issues a detailed announcement of the poll results (both in absolute numbers and percentages of votes cast for and against a resolution) on SGX-ST’s website after the close of the AGM.

55 Directorships And other major appointments over the last 3 years

Mr Philip Yeo Liat Kok Director, MEMG International India Private Limited Chairman, Standards, Productivity and Innovation Infosys Limited Board (SPRING) Chairman, Accuron Technologies Ltd Mr Girija Pande Chairman, Hexagon Development Advisors Pte Ltd Executive Chairman, Apex Avalon Consulting Pte Ltd Chairman, MTIC Holdings Pte Ltd Director, Micro-Mechanics (Holdings) Ltd Chairman, Singapore Aerospace Manufacturing Pte Ltd Director, Tata Communications International Pte. Ltd. Chairman, Economic Development Innovations Director, Singapore International Chamber of Commerce Singapore Pte Ltd Director, IIA Technologies Pte. Ltd. Director, City Development Limited Director, Apex Advisors Pte. Ltd. Director, P*YEO Investments Pte Ltd Director, National Council of Social Services Director, Hitachi, Ltd Trustee, Singapore Indian Development Association Member, United Nations Committee of Experts in Nil Public Administration Director, Baiterek National Managing Holding Mr Ng Eng Leng Director, Kerry Logistics Network Limited Nil United Overseas Bank Limited Bumi PLC Mr Khiatani Manohar Ramesh Vice Chairman, Ascendas Funds Management (S) Limited Mr David Lim Tik En Director, President & CEO, Ascendas Pte Ltd Director, Wheelock Properties (Singapore) Ltd Director, Ascendas Hospitality Fund Management Pte Ltd Director, Economic Development Innovations Director, Ascendas Hospitality Trust Management Pte Ltd Singapore Pte Ltd Director, Ascendas Investment Pte Ltd Chairman, Jurong International Holdings Pte Ltd Director, Ascendas Land International Pte Ltd Director, Ascendas Land (Singapore) Pte Ltd Mr Michael Grenville Gray Director, SIA Engineering Company Limited Director, Avi-Tech Electronics Limited Director, Ascendas Frasers Pte Ltd Director, GSH Corporation Ltd (f.k.a. JEL Corporation Director, Ascendas-Citramas Pte Ltd (Holdings) Ltd) Director, Carmelray-JTCI Corporation Director, Raffles Marina Holdings Ltd Director, Nusajaya Tech Park Sdn Bhd Director, UON Singapore Pte Ltd Directorships in other Ascendas Group companies Director, VinaCapital Vietnam Opportunity Fund Limited Nil Director, Tras Street Property Investment Ltd Director, TGY Property Investments Pte Ltd Mr Jonathan Yap Director, Asian Cruising Pte Ltd Director, Ascendas Property Fund (India) Pte Ltd Grand Banks Yachts Limited Director, Ascendas India Development Fund Management Pte Ltd Mr Rakesh Kumar Aggarwal Director, AIDT 2 Fund Management Pte Ltd Director, Atlas Equifin Pvt Ltd Director, Ascendas China Fund Management Pte Ltd Director, Grandway Global Holdings Ltd Director, Ascendas China Commercial Fund Director, Novatech Finvest (India) Pvt Ltd Management Pte Ltd Director, World Media Group Pte Ltd Director, Ascendas Asia Fund Management Pte Ltd Director, Mortice Group Ltd Director, Ascendas Property Fund (FDI) Pte Ltd Director, Bay Capital Partners Pte Ltd Director, Ascendas China Commercial Fund Director, Alauda Securities Limited Management Limited Director, Apace Communications Ltd Director, Information Technology Park Ltd Director, Multivest Offshore Limited Director, Ascendas India Development VI Pte Ltd Director, New Horizon Ventures Group Ltd Director, Ascendas Land International Pte Ltd Director, IL&FS Wind Power Management Pte Ltd Director, Ascendas (Korea) Pte Ltd Mortice Limited Director, Ascendas IT Park (Chennai) Limited Nil Mr T.V. Mohandas Pai Chairman, Manipal Global Education Private Limited Directorships and other major appointments Director, Manipal Health Enterprises Private Limited Past Directorships in listed companies held over the Director, CSIR-Tech Private Limited preceding 3 years 56 Financial statements

Ascendas India Trust

Contents

58 Report of the trustee-manager 63 Statement by the trustee-manager 64 Trustee-manager’s certificate 65 Statement by the chief executive officer of the trustee-manager 66 Statement on policies and practices 70 Statement on composition of the board of directors 71 Independent auditor’s report 72 Consolidated income statement 73 Consolidated statement of comprehensive income 73 Distribution statement 74 Balance sheets 75 Consolidated statement of changes in unitholders’ funds 76 Consolidated statement of cash flows 77 Notes to the financial statements

57 Report of the trustee-manager

For the financial year ended 31 March 2014

The directors of Ascendas Property Fund Trustee Pte. Ltd. as Trustee-Manager of Ascendas India Trust (the “Trust” and Ascendas Property Fund Trustee Pte. Ltd. as Trustee-Manager of the Trust, the “Trustee-Manager”) and its subsidiaries (together referred to as the “Group”), are pleased to present their report to the Unitholders of the Trust together with the audited financial statements of the Group, which comprise the balance sheets of the Group and the Trust as at 31 March 2014, the consolidated income statement, the consolidated statement of comprehensive income, the distribution statement, the consolidated statement of changes in unitholders’ funds and the consolidated statement of cash flows for the financial year then ended, and a summary of significant accounting policies and other explanatory information.

Directors The directors of the Trustee-Manager in office at the date of this report are as follows: Mr Philip Yeo Liat Kok Mr David Lim Tik En Mr Michael Grenville Gray Mr Rakesh Kumar Aggarwal Mr T.V. Mohandas Pai Mr Girija Prasad Pande Mr Ng Eng Leng (appointed on 1 April 2013) Mr Khiatani Manohar Ramesh (appointed on 1 June 2013) Mr Jonathan Yap Neng Tong

Arrangements to enable directors to acquire units and debentures Except as described in paragraph below, neither at the end of nor at any time during the financial year was the Trustee-Manager a party to any arrangement where objective was to enable any or all directors of the Trustee-Manager to acquire benefits by means of the acquisition of units in, or debentures of, the Trust.

58 Directors’ interests in units and debentures According to the register of directors’ unitholdings and for the purpose of section 76 of the Singapore Business Trusts Act, only those directors as shown below hold units in or debentures, of the Trust: Unit Holdings as at Name of director 1 April 2013 31 March 2014

Direct Deemed Direct Deemed

Mr Philip Yeo Liat Kok 300,000 - 300,000 -

Mr David Lim Tik En 150,000 210,000 150,000 210,000

Mr Michael Grenville Gray 200,000 - 200,000 -

Mr Rakesh Kumar Aggarwal - 5,000 - 5,000

Mr Girija Prasad Pande 27,000 - 27,000 -

Mr Jonathan Yap Neng Tong 500,000 150,000 500,000 150,000

There was no change in any of the above-mentioned interests in the Trust between the end of the financial year and 21 April 2014. Except as disclosed in this report, no director who held office at the end of the financial year had interests in units, unit options, warrants or debentures of the Trust, or of related corporations, either at the beginning of the financial year, or date of appointment if later, or at the end of the financial year.

Directors’ contractual benefits Since the end of the previous financial year, no director has received or become entitled to receive a benefit in the Trust by reason of a contract made by the Trustee-Manager, on behalf of the Trust or a related corporation, with the director, or with a firm of which the director is a member or with a company in which the director has a substantial financial interest.

59 Report of the trustee-manager

For the financial year ended 31 March 2014

Unit options There were no options granted during the financial year to acquire unissued units in the Trust. No units have been issued during the financial year by virtue of the exercise of options to take up unissued units in the Trust. There were no unissued units in the Trust under option as at the end of the financial year.

Audit committee The Audit Committee (“AC”) comprises four independent directors. The members at the end of the financial year were as follows: Mr Michael Grenville Gray (Chairman) Mr David Lim Tik En Mr T.V. Mohandas Pai Mr Ng Eng Leng The AC carried out its functions in accordance with Regulation 13(6) of the Singapore Business Trusts Regulations, including the following: reviewing with the external and internal auditors, the audit plans and audit reports and the auditors’ evaluation of the system of internal accounting controls, based on the recommendations and observations of the auditors; reviewing the quarterly and annual financial statements and the external auditor’s report on the annual financial statements of the Trust before submission to the Board of Directors; reviewing the assistance given by the Management of the Trustee-Manager to the auditors of the Trust; reviewing the policies and practices put in place by the Management of the Trustee-Manager to ensure compliance with the applicable laws, regulations, guidelines and constitutional documents of the Trust; reviewing the procedures put in place to address any conflict that may arise between the interests of the Unitholders and those of the Trustee-Manager, including interested person transactions, the indemnification of expenses or liabilities incurred by the Trustee-Manager and the setting of fees and charges payable out of the trust property;

60 reporting to the Board of Directors of the Trustee-Manager on any inadequacies, deficiencies or matters of concern of which the AC becomes aware or that it suspects, arising from its review of the above described; reporting to the Board of Directors of the Trustee-Manager on any breach of the Singapore Business Trusts Act or any breach of the provisions of the Trust Deed of which the AC becomes aware or that it suspects; reporting to the Monetary Authority of Singapore if the AC is of the view that the Board of Directors of the Trustee-Manager has not taken, or does not propose to take, appropriate action to deal with a matter reported by the AC to the Board of Directors; reviewing the independence and objectivity of the external auditor annually, including considering the nature and extent of non-audit services performed by the external auditor; meeting with the external and internal auditors, without the presence of the Management of the Trustee-Manager, at least once annually; recommending the appointment, re-appointment or removal of the external or internal auditors to the Board; investigating any matters within the AC’s terms of reference, whenever it deems necessary; and undertaking such other functions as may be agreed to by the AC and the Board of Directors of the Trustee-Manager. To assess the independence of the external auditor, the AC also reviewed the non-audit services provided by the external auditor during the financial year and the quantum of fees paid for such services. The AC is satisfied that the independence of the external auditor was not impaired by the provision of those non-audit services. The AC has also conducted a review of interested person transactions.

The AC convened four meetings during the year, and attendances of members are listed in the Corporate Governance Report.

The AC has recommended to the Board of Directors the re-appointment of Ernst & Young LLP as the independent external auditor of the Trust at the coming annual general meeting of the Unitholders.

61 Report of the trustee-manager

For the financial year ended 31 March 2014

Auditor Ernst & Young LLP have expressed their willingness to accept re-appointment as auditor.

For and on behalf of the Trustee-Manager, Ascendas Property Fund Trustee Pte. Ltd.

KHIATANI MANOHAR RAMESH JONATHAN YAP NENG TONG Director Director

24 April 2014

62 Statement by the trustee-manager

For the financial year ended 31 March 2014

We, Khiatani Manohar Ramesh and Jonathan Yap Neng Tong, being two of the directors of the Trustee-Manager, do hereby state that, in the opinion of the directors, a) the accompanying balance sheets of the Group and the Trust, the consolidated income statement, the consolidated statement of comprehensive income, the distribution statement, the consolidated statement of changes in unitholders’ funds and the consolidated statement of cash flows as set out on pages 72 to 111 are drawn up so as to give a true and fair view of the state of affairs of the Group and of the Trust as at 31 March 2014, and of the results of the business, changes in Unitholders’ funds and cash flows of the Group, for the financial year then ended; and b) at the date of this statement, there are reasonable grounds to believe that the Trustee-Manager will be able to fulfil, out of the trust property of the Trust, the liabilities of the Trust as and when they fall due.

For and on behalf of the Trustee-Manager, Ascendas Property Fund Trustee Pte. Ltd.

KHIATANI MANOHAR RAMESH JONATHAN YAP NENG TONG Director Director

24 April 2014

63 /ÀÕÃÌii‡“>˜>}iÀ½ÃViÀ̈wV>Ìi

For the financial year ended 31 March 2014

The directors of Ascendas Property Fund Trustee Pte. Ltd. as Trustee-Manager of Ascendas India Trust (the “Trust” and Ascendas Property Fund Trustee Pte. Ltd. as Trustee-Manager of the Trust, the “Trustee-Manager”) hereby certify that: the fees or charges paid or payable out of the trust property of the Trust to the Trustee-Manager are in accordance with the Trust Deed of the Trust; the interested person transactions are not detrimental to the interests of all the Unitholders of the Trust as a whole based on the circumstances at the time of the transactions; and the Board of Directors of the Trustee-Manager is not aware of any violation of duties of the Trustee-Manager which would have a materially adverse effect on the business of the Trust or the interest of all the Unitholders of the Trust as a whole.

For and on behalf of the Trustee-Manager, Ascendas Property Fund Trustee Pte. Ltd.

KHIATANI MANOHAR RAMESH JONATHAN YAP NENG TONG Director Director

24 April 2014

64 -Ì>Ìi“i˜ÌLÞÌ iV ˆiviÝiVṎÛiœvwViÀ of the trustee-manager

For the financial year ended 31 March 2014

I, the Chief Executive Officer of Ascendas Property Fund Trustee Pte. Ltd., as Trustee-Manager of Ascendas India Trust (the “Trust” and Ascendas Property Fund Trustee Pte. Ltd. as Trustee-Manager of the Trust, the “Trustee-Manager”), in my personal capacity, certify that I am not aware of any violation of duties of the Trustee-Manager which would have a materially adverse effect on the business of the Trust or on the interests of all the Unitholders of the Trust as a whole.

JONATHAN YAP NENG TONG Director

24 April 2014

65 Statement on policies and practices

In relation to the management and governance of the Trust pursuant to section 87 of the Business Trust Act, Chapter 31A of Singapore

The Board of Directors of Ascendas Property Fund Trustee Pte. Ltd. as Trustee-Manager of Ascendas India Trust (the "Trust” and Ascendas Property Fund Trustee Pte. Ltd. as Trustee-Manager of the Trust, the “Trustee-Manager”) is responsible for safeguarding the interests of the Unitholders as a whole and managing the business of the Trust. The Trustee-Manager has general power of management over the business and assets of the Trust and its main responsibility is to manage the Trust’s assets and liabilities for the benefit of the Unitholders as a whole. In the event of a conflict between the interests of the Unitholders as a whole and its own interests, the Trustee-Manager will give priority to the interests of the Unitholders as a whole over its own interests.

The Board of the Trustee-Manager (“Board”), in exercising its power and carrying out its duties as Trustee-Manager of Trust, has put in place measures to ensure that the following are met: the property of the Trust is properly accounted for and is kept distinct from the property held by Trustee-Manager in its own capacity; adherence with the business scope of the Trust as set out in the Trust Deed; potential conflicts between the interests of the Trustee-Manager and the interests of the Unitholders of the Trust as a whole are appropriately managed; interested person transactions are transparent, properly recorded and reviewed; expenses and cost allocations payable to the Trustee-Manager out of the property of the Trust, and that fees and expenses charged to the Trust are appropriate and in accordance with the Trust Deed; and compliance with the Business Trusts Act and with the Listing Rules of Singapore Exchange Securities Trading Ltd.

Trust property properly accounted for Towards ensuring that the property of the Trust is properly accounted for and is kept distinct from the property held by the Trustee-Manager in its own capacity, the accounting records of the Trust are kept by a team of accounting professionals separate from the team that keeps the accounting records of the Trustee-Manager.

Adherence to business scope The Trust is established to invest in real estate (which may be by way of direct ownership of real estate or by way of holding shares or units or interests in special purpose vehicles), real estate related assets and/ or such other authorised investments and the Trustee-Manager manages the property of the Trust so that the principal investments of the Trust are real estate. The Investment Committee (“IC”) assists the Board in ensuring adherence to the business scope. The responsibilities of the IC are set out in the Corporate Governance Report.

Potential conflicts of interest As the Trustee-Manager is a related company of Ascendas Land International Pte Ltd, the Sponsor and controlling Unitholder of the Trust, there may be potential conflicts of interest between the Trust, the Trustee-Manager and the Sponsor.

66 The Trustee-Manager has instituted, amongst others, the following procedures to deal with issues of conflicts of interest: a Board comprising seven independent directors, who form at least three-quarters of the Board; all executive officers are directly employed by the Trustee-Manager; all resolutions in writing of the directors in relation to matters concerning the Trust must be approved by majority of the independent directors; where appropriate, strict compliance with the relevant provisions of the Code of Corporate Governance; in respect of matters in which the Sponsor and/or its subsidiaries have an interest, direct or indirect, any nominees appointed by the Sponsor and/or its subsidiaries to the Board to represent its/their interests will abstain from voting. In such matters, the quorum must comprise a majority of the independent directors and must exclude nominee directors of the Sponsor and/or its subsidiaries; and where matters concerning the Trust relate to transactions to be entered into by the Trustee-Manager for and on behalf of the Trust with a related party of the Trustee-Manager, the AC is required to consider, the terms of such transactions to satisfy itself that such transactions are conducted on normal commercial terms, are not prejudicial to the interests of the Trust and the Unitholders.

Present and ongoing interested person transactions i) Property management agreement The Trustee-Manager, on behalf of the Trust, has entered into a Master Property Management Agreement and an Initial Properties Management Agreement with a related corporation, Ascendas Services (India) Pvt Limited (“ASIPL”) (the "Property Manager”) for management of properties of a-iTrust. The Trustee-Manager believes that the terms of these agreements, established since the listing of the Trust, are made on normal commercial terms and are not prejudicial to the interests of the Trust and the Unitholders. The Trustee-Manager believes that the Property Manager has the necessary expertise and resources to perform property management, lease management and marketing services for the Trust under these agreements. ii) Exempted agreements The fees and charges payable by the Trust to the Trustee-Manager under the Trust Deed and to the Property Manager under the property management agreements, are interested person transactions which are deemed to have been specifically approved by the Unitholders upon subscription for the Units, to the extent that there is no subsequent change to the rates and/or bases of the fees charged thereunder or the terms thereof which would adversely affect the Trust. iii) Future interested person transactions Depending on the materiality of the transaction, the Trust may make a public announcement of such transaction or obtain Unitholders’ prior approval for such a transaction. If necessary, the Board may make a written statement in accordance with the resolution of the Board and signed by at least two directors on behalf of the Board certifying that, inter alia, such interested person transaction is not detrimental to the interests of the Unitholders of the Trust as a whole, based on the circumstances at the time of the transaction.

The Trustee-Manager may, in future, seek an annual general mandate from the Unitholders for recurrent transactions of a revenue or trading nature or those necessary for its day-to-day operations with interested persons, and all transactions would then be conducted under such a general mandate for the relevant financial year. In seeking such an annual general mandate, the Trustee-Manager may appoint an independent financial adviser to render an opinion as to whether the methods or procedures for determining the transaction prices contemplated under the annual general mandate are sufficient, in an effort to ensure that such transactions will be carried out on normal commercial terms and will not be prejudicial to the interests of the Trust and the Unitholders.

67 Statement on policies and practices

When the Trust acquires assets from the Sponsor or parties related to the Sponsor in future, the Trustee- Manager will obtain valuations from independent parties. In any event, interested person transactions entered into by the Trust, depending on the materiality of such transactions, may be publicly announced or, as the case may be, approved by Unitholders, and will, in addition, be:

reviewed and recommended by the Audit Committee of the Trustee-Manager, which comprises only independent directors; and

decided by the Board, of which at least two-thirds of the directors are independent directors.

Interested person transactions in FY13/14 The interested person transactions in FY13/14 are set out below:

Aggregate value of all interested person transactions during the financial period under review (excluding transactions less than $100,000 and transactions conducted under shareholders mandate pursuant to Rule 920

2014 2013 Name of interested person $'000 $'000

Ascendas Property Fund Trustee Pte. Ltd.* Trustee-Manager fees paid/payable 6,692 6,815

Ascendas Services (India) Pvt Ltd ("ASIPL")* Fees received/ receivable by ASIPL from a-iTrust Property management services 2,407 2,519 Lease management services 1,203 1,259 Marketing services 3,280 2,016 Project management services 459 286 General management services 2,586 2,360

Office rental income received/receivable by a-iTrust from ASIPL (316) (333)

Ascendas IT Park (Pune) Pvt Ltd Advertising fees received/receivable by a-iTrust - (9)

Dr Fresh SEZ Phase I Pvt Ltd Advertising fees received/receivable by a-iTrust - (9)

Jurong Consultants (India) Pvt Ltd Procurement of consultancy services, including architecture & landscape, civil & structural, M & E engineering design rendered to Information Technology Park Limited 21 42

*Refer to “Exempted agreements” in paragraph (ii) above

Fees and expenses charged to the Trust are appropriate and in accordance with the Trust Deed

Fees payable to the trustee-manager The Trustee-Manager is entitled under the Trust Deed to the following management fees:

a Base Fee at the rate of 0.5% per annum of the value of the property of the Trust; and

a Performance Fee at the rate of 4% per annum of the Net Property Income of the Trust in the relevant financial year (calculated before accounting for the Performance Fee in that financial year).

Any increase in the rate or any change in the structure of the Trustee-Manager’s Management fees must be approved by an extraordinary resolution passed at a Unitholders’ meeting duly convened and held in accordance with the provisions of the Trust Deed.

68 The Base Fee and the Performance Fee are payable to the The table below sets out the fees earned by the Trustee- Trustee-Manager in the form of cash and/or Units (as the Manager for the financial year ended 31 March 2014: Trustee-Manager may elect). The Trustee-Manager has Amount ($’000) elected to receive 50% of both Base Fee and Performance Fee in Units and the remainder in cash for FY13/14. Management fee 3,830 Performance fee 2,709 For transactions, the Trustee-Manager is entitled to: Trustee fee 153 Total 6,692 1% of the value of the underlying real estate (after deducting the interest of any co-owners or co-participants purchased by the Trustee-Manager on behalf of the Trust, The Board meets every quarter to review the expenses whether directly or indirectly through a special purposes charged to the Trust against the budget approved by vehicle (“SPV”), or 1% of the acquisition price of any the Board. authorised investment acquired by the Trustee-Manager on behalf of a-iTrust; and The expenses charged to the Trust for the financial year ended 31 March 2014 are set out below: 0.5% of the value of the underlying real estate (after deducting the interest of any co-owners or co- Amount ($’000) participants) sold or divested by the Trustee-Manager on Travel & Entertainment 46 behalf of a-iTrust, whether directly or indirectly through an SPV, or 0.5% of the sale price of any authorised investment sold or divested by the Trustee-Manager on Compliance with the Business Trusts Act and behalf of the Trust. Listing Rules The acquisition fee and the divestment fee are payable to The Joint Company Secretaries and Compliance Officer the Trustee-Manager in the form of cash and/or Units (as the monitor compliance by the Trust with the Business Trusts Trustee-Manager may elect) at the then prevailing price. In Act and Listing Rules. accordance with the Trust Deed, when the Trust acquires or disposes of real estate from an interested person, the acquisition or, as the case may be, the divestment fee may be in the form of cash and/or Units issued at prevailing market price, and, if received in the form of Units by the Trustee-Manager, such Units shall not be sold within one year from the date of issuance.

Any payment to third party agents or brokers in connection with the acquisition or divestment of any asset of the Trust shall be paid by the Trustee-Manager to such persons out of the property of the Trust or the assets of the relevant SPV, and not out of the acquisition fee or the divestment fee received or to be received by the Trustee-Manager.

Any increase in the maximum permitted level of the Trustee- Manager’s acquisition fee or disposal fee must be approved by an extraordinary resolution passed at a Unitholders’ meeting duly convened and held in accordance with the provisions of the Trust Deed.

Under the Trust Deed, the Trustee-Manager is entitled to a trustee fee of up to 0.02% per annum of the value of the property of the Trust.

Any increase in the maximum permitted amount or any change in the structure of the trustee fee must be approved by an extraordinary resolution passed at a Unitholders’ meeting duly convened and held in accordance with the provisions of the Trust Deed.

69 Statement on composition of the board of directors

In accordance with Rule 12(8) of the Business Trust Regulations 2005, the Board of Directors of Ascendas Property Fund Trustee Pte. Ltd. as Trustee-Manager of Ascendas India Trust (the "Trust” and Ascendas Property Fund Trustee Pte. Ltd. as Trustee-Manager of the Trust, the “Trustee- Manager”) has determined that the following directors are independent from management and business relationships with the Trustee-Manager, and independent from every substantial shareholder of the Trustee-Manager: Mr Philip Yeo Liat Kok; Mr David Lim Tik En; Mr Michael Grenville Gray; Mr Rakesh Kumar Aggarwal; Mr T. V. Mohandas Pai; Mr Girija Prasad Pande; and Mr Ng Eng Leng.

Mr Manohar Khiatani and Mr Jonathan Yap are considered non-independent directors by the Board of Directors of the Trustee-Manager. Mr Manohar Khiatani is a director on the Board of Ascendas Pte Ltd, a deemed controlling Unitholder of the Trust and the intermediate holding company of the Trustee-Manager. Mr Jonathan Yap is the Chief Executive Officer of the Trustee-Manager.

70 Independent auditor’s report

For the financial year ended 31 March 2014

Independent auditor’s report to the unitholders of Ascendas India Trust

Report on the financial statements We have audited the accompanying financial statements considers internal controls relevant to the entity’s of Ascendas India Trust (the “Trust”) and its subsidiaries preparation of financial statements that give a true (collectively the “Group”) set out on pages 72 to 111, and fair view in order to design audit procedures that which comprise the balance sheet of the Group and are appropriate in the circumstances, but not for the balance sheet of the Trust as at 31 March 2014, the purpose of expressing an opinion on the effectiveness consolidated income statement, the consolidated of the entity’s internal control. An audit also includes statement of comprehensive income, the distribution evaluating the appropriateness of accounting policies statement, the consolidated statement of changes in used and the reasonableness of accounting estimates unitholders’ funds and the consolidated statement of cash made by management, as well as evaluating the overall flows of the Group for the financial year then ended, and presentation of the financial statements. a summary of significant accounting policies and other explanatory information. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our Trustee-Manager’s responsibility for the financial audit opinion. statements Opinion The Trustee-Manager is responsible for the preparation of financial statements that give a true and fair view in In our opinion, the consolidated financial statements of accordance with the provisions of the Singapore Business the Group and the balance sheet of the Trust are properly Trusts Act, (the “Act”) and Singapore Financial Reporting drawn up in accordance with the provisions of the Act Standards, and for devising and maintaining a system of and Singapore Financial Reporting Standards so as to give internal accounting controls sufficient to provide a reasonable a true and fair view of the state of affairs of the Group assurance that assets are safeguarded against loss from and of the Trust as at 31 March 2014, and of the results, unauthorised use or disposition; and transactions are changes in unitholders’ fund and cash flows of the Group properly authorised and that they are recorded as necessary for the financial year ended on that date. to permit the preparation of true and fair profit and loss accounts and balance sheets and to maintain accountability Report on other legal and regulatory of assets. requirements In our opinion, the accounting and other records required by Auditor’s responsibility the Act to be kept by the Trustee-Manager on behalf of the Our responsibility is to express an opinion on these financial Trust, have been properly kept in accordance with the statements based on our audit. We conducted our audit in provisions of the Act. accordance with Singapore Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in Ernst & Young LLP the financial statements. The procedures selected Public Accountants and depend on the auditor’s judgment, including the Chartered Accountants assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor Singapore, 24 April 2014

71 Consolidated income statement

For the financial year ended 31 March 2014

Note Group 2014 2013 $'000 $'000 Property income Base rent 70,066 73,855 Amenities income 1,920 2,098 Fit-out rental income 1,795 1,861 Operations, maintenance and utilities income 41,908 43,298 Car park and other income 5,020 5,154

Total property income 120,709 126,266

Property expenses Operations, maintenance and security (10,184) (9,899) Service and property taxes (2,506) (2,743) Property management fees (6,254) (6,794) Utilities expenses (24,571) (27,340) Employee compensation 5 (105) (161) Other property operating expenses 6 (4,983) (7,180)

Total property expenses (48,603) (54,117)

Net property income 72,106 72,149 Trustee-manager's fees (6,692) (6,815) Other trust operating expenses (1,182) (1,125) Interest income 4 9,372 4,227 Finance costs 7 (13,306) (13,936) Fair value gain on derivative financial instruments - realised 17 11,857 Exchange loss - realised (912) (33,538) Profit before change in fair value of investment properties, and unrealised (loss)/gain on derivative financial instruments and foreign exchange 59,403 32,819 Fair value (loss)/gain on derivative financial instruments - unrealised (420) 222 Exchange (loss)/gain - unrealised (6,772) 9,044 Fair value gain on investment properties 33,013 18,619

Profit before income tax 85,224 60,704 Income tax expense 8 (30,364) (15,416)

Net profit after tax 54,860 45,288

Attributable to: Unitholders of the Trust 50,107 41,518 Non-controlling Interests 4,753 3,770 54,860 45,288 Earnings per unit attributable to unitholders of the Trust, expressed in cents per unit basic and diluted 9 5.47 4.95

The accompanying notes form an integral part of these financial statements. notes form accompanying The 72 Consolidated statement of comprehensive income For the financial year ended 31 March 2014

Group 2014 2013

$'000 $'000

Net profit after tax 54,860 45,288

Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Cash flow hedges (977) 1,950 Translation differences arising from the conversion of functional currency into presentation currency (57,484) (45,699)

Other comprehensive income for the year (58,461) (43,749)

Total comprehensive income for the year (3,601) 1,539

Total comprehensive income attributable to: Unitholders of the Trust (4,647) 998 Non-controlling interests 1,046 541

(3,601) 1,539

Distribution statement

For the financial year ended 31 March 2014

Note Group

2014 2013 $'000 $'000

Profit before change in fair value of investment properties, and unrealised (loss)/gain on derivative financial instruments and foreign exchange 59,403 32,819

Income tax expense - current 8 (14,438) (11,731)

Trustee-Manager's fees payable in units 10 3,268 3,329

Depreciation 98 106

Amortisation of marketing commission 31 314

Realised exchange loss 10 995 21,584

Non-controlling interests (3,226) (3,139)

Distribution adjustments (13,272) 10,463

Income available for distribution 46,131 43,282

10% retention (4,613) (4,328)

Income to be distributed 41,518 38,954

DPU (Income available for distribution) (cents) 5.05 5.16

DPU (Income to be distributed) (cents) 4.56 4.65 The accompanying notes form an integral part of these financial statements. notes form accompanying The 73 Balance sheets

As at 31 March 2014

Note Group Trust

2014 2013 2014 2013 $'000 $'000 $'000 $'000

Assets Current assets Cash and cash equivalents 11 74,376 69,856 2,864 13,292 Inventories 12 706 1,025 - - Other assets 13 690 3,388 92 111 Loans to subsidiaries 14 - - 375,817 420,825 Trade and other receivables 15 20,324 16,476 4,891 4,871 Derivative financial instruments 17 3,928 - 3,928 - Current income tax recoverable 8 9,260 13,696 - - 109,284 104,441 387,592 439,099

Non-current assets Other assets 13 8,293 14,452 - - Investment in available-for-sale financial asset 16 45,353 40,250 - - Equipment 18 413 554 - - Investment properties under construction 19 - 31,625 - - Investment properties 20 869,085 847,947 - - Goodwill 21 15,997 17,604 - - Investment in subsidiaries 22 - - 10,764 11,845 Derivative financial instruments 17 14,220 7,983 14,220 7,983 953,361 960,415 24,984 19,828 Total assets 1,062,645 1,064,856 412,576 458,927

Liabilities

Current liabilities Trade and other payables 23 39,343 38,446 9,414 8,703 Borrowings 24 49,937 - 49,937 - Derivative financial instruments 17 967 451 967 451

90,247 38,897 60,318 9,154

Non-current liabilities Trade and other payables 23 45,106 43,089 - - Borrowings 24 184,426 205,170 184,426 205,170 Derivative financial instruments 17 2,199 894 2,199 894 Deferred income tax liabilities 8 132,556 128,208 - - 364,287 377,361 186,625 206,064

Total liabilities 454,534 416,258 246,943 215,218 Net assets 608,111 648,598 165,633 243,709

Unitholders' Funds Units on issue 25 703,050 699,768 703,050 699,768 Foreign currency translation reserve 26(a) (360,690) (306,913) (207,704) (186,746) Hedging reserve 26(b) 1,662 2,639 1,662 2,639 Other reserves 26(c) 57,173 52,406 - - Retained earnings 26(d) 164,971 159,799 (331,375) (271,952)

Net assets attributable to unitholders 566,166 607,699 165,633 243,709 Non-controlling interests 41,945 40,899 - - 608,111 648,598 165,633 243,709 The accompanying notes form an integral part of these financial statements. notes form accompanying The 74 Consolidated statement of changes in unitholders’ funds For the financial year ended 31 March 2014

Foreign currency Non- Units on translation Hedging Other Retained controlling issue reserve reservereserves earnings Totalinterests Total

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 2014 Balance at beginning of financial year 699,768 (306,913) 2,639 52,406 159,799 607,699 40,899 648,598

Profit for the year - - - - 50,107 50,107 4,753 54,860

Other comprehensive income for the year - (53,777) (977) - - (54,754) (3,707) (58,461)

Transfer to other reserves - - - 4,767 (4,767) - - -

Issue of new units 3,282 - - - - 3,282 - 3,282

Distribution to unitholders - - - - (40,168) (40,168) - (40,168)

Balance at end of financial year 703,050 (360,690) 1,662 57,173 164,971 566,166 41,945 608,111

2013 Balance at beginning of financial year 597,681 (264,443) 689 43,830 168,970 546,727 40,957 587,684

Profit for the year - - - - 41,518 41,518 3,770 45,288

Other comprehensive income for the year - (42,470) 1,950 - - (40,520) (3,229) (43,749)

Transfer to other reserves - - - 8,576 (8,576) - - -

Issue of new units 102,087 - - - - 102,087 - 102,087

Distribution to unitholders - - - - (42,113) (42,113) - (42,113)

Dividends paid to non-controlling interests ------(599) (599)

Balance at end of financial year 699,768 (306,913) 2,639 52,406 159,799 607,699 40,899 648,598

The accompanying notes form an integral part of these financial statements. notes form accompanying The 75 œ˜Ãœˆ`>Ìi`ÃÌ>Ìi“i˜ÌœvV>à yœÜÃ

For the financial year ended 31 March 2014

Note Group 2014 2013 $'000 $'000

Operating activities

Net profit after tax 54,860 45,288

Adjustments for: Income tax expenses 8 30,364 15,416 Depreciation of equipment 18 98 106 Interest income 4 (9,372) (4,227) Finance cost 7 13,306 13,936 Equipment written off - 1 Investment properties under construction written off 19 - 229 Investment properties written off 20 - 10 Unrealised loss/(gain) on derivative financial instruments 420 (222) Fair value gain on investment properties 19, 20 (33,013) (18,619) Allowance for doubtful receivables (net) 132 1,828 Allowance for doubtful advances 244 744 Trustee-Manager's fees payable in units 3,268 3,329 Unrealised exchange loss/(gain) 6,772 (9,044) Currency realignment 3,057 34,153 Operating cash flows before changes in working capital 70,136 82,928

Changes in working capital Inventories 225 185 Other assets 92 (8,147) Trade and other receivables 6,450 4,401 Trade and other payables 8,389 190

Cash generated from operations 85,292 79,557

Interest received 4,338 2,746 Income tax paid (net) (11,271) (13,870) Net cash generated from operating activities 78,359 68,433

Investing activities Purchase of equipment (6) (82) Additions to investment properties under construction (17,717) (9,730) Additions to investment properties (18,677) (6,066) Proceeds from disposal of investment properties 43 - Investment in available-for-sale financial asset (8,603) (40,250) Net cash (used in) investing activities (44,960) (56,128)

Financing activities Repayment of borrowings - (150,000) Distribution to unitholders (40,168) (42,113) Dividends paid to non-controlling interests - (599) Interest paid (11,216) (14,002) Proceeds from borrowings 28,883 40,805 Proceeds from medium term notes - 64,675 Proceeds from new issue of units - 98,706 Net cash (used in) financing activities (22,501) (2,528)

Net increase in cash and cash equivalents 10,898 9,777 Cash and cash equivalents at beginning of financial year 69,856 65,304 Effects of exchange rate changes on cash and cash equivalents (6,378) (5,225) Cash and cash equivalents at end of financial year 11 74,376 69,856 The accompanying notes form an integral part of these financial statements. notes form accompanying The 76 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

These notes form an integral part of and should areas where assumptions and estimates are significant be read in conjunction with the accompanying to the financial statements, are disclosed in Note 3. financial statements. The financial statements are presented in Singapore Dollars (SGD or $) and all values in the tables are rounded to the nearest thousand ($’000) as indicated. 1. General information On 1 April 2013, the Group adopted the new or amended Ascendas India Trust (the “Trust”) is a Singapore- FRS that are mandatory for application from that date. domiciled trust originally constituted as a private trust Changes to the Group’s accounting policies have been pursuant to the Trust Deed dated 7 December 2004, with made as required, in accordance with the transitional Ascendas Property Fund Trustee Pte. Ltd. as its Trustee- provisions in the respective FRS. Manager. The Trust Deed was amended by an Amending and Restating Deed dated 28 June 2007 (“Trust Deed”) a) Amendments to FRS 1 Presentation of Items of to comply with the requirements of, among others, Other Comprehensive Income (effective for annual the Monetary Authority of Singapore (“MAS”) and periods beginning on or after 1 July 2012) the Singapore Exchange Securities Trading Limited The amendments to FRS 1 will change the grouping (“SGX-ST”), for a listed Business Trust. The Trust is a of items presented in Other Comprehensive Income. registered business trust constituted by the Trust Deed Items that could be reclassified to profit or loss at a and is principally regulated by the Securities and Futures future period in time would be presented separately Act (“SFA”) and the Singapore Business Trusts Act. The from items which will never be reclassified. Trust Deed is governed by the laws of the Republic of Singapore. b) FRS 113 Fair Value Measurement (effective for annual periods beginning on or after 1 January 2013) On 3 July 2007, the Trust was registered as a Business Trust and on 1 August 2007, the Trust was listed on the FRS 113 Fair Value Measurement provides a single Main Board of the SGX-ST. source of guidance for all fair value measurements. FRS 113 does not change when an entity is required The registered office of Ascendas Property Fund Trustee to use fair value, but rather provides guidance on Pte. Ltd. is at 61 Science Park Road, #04-01 The Galen, how to measure fair value under FRS when fair value Singapore 117525. is required or permitted by FRS. The principal activity of the Trust is owning income According to the transition provisions, FRS 113 producing real estate used primarily as business space has been applied prospectively by the Group on in India and real estate related assets in relation to the 1 April 2013. foregoing. The Trust may acquire, hold and develop land or uncompleted developments to be used primarily c) Improvements to FRSs 2012 (effective for annual for business space with the objective of holding the periods beginning on or after 1 January 2013) properties upon completion. The principal activities i) Amendments to FRS 1 Presentation of of the subsidiaries are as disclosed in Note 22 to the Financial Statements financial statements. The amendment clarifies the difference between voluntary additional comparative information and 2. Significant accounting policies the minimum required comparative information. An entity must include comparative information 2.1 Basis of preparation in the related notes to the financial statements These financial statements have been prepared in when it voluntarily provides comparative accordance with Singapore Financial Reporting Standards information beyond the minimum required (“FRS”). The financial statements have been prepared comparative period. However, when an entity under the historical cost convention, except as disclosed presents an opening balance sheet when in the accounting policies below. it changes its accounting policies, make retrospective restatements or reclassifications The preparation of financial statements in conformity and that change has a material effect on the with FRS requires management to exercise its judgment balance sheet, the entity is not required to in the process of applying the Group’s accounting present the related notes of the opening policies. It also requires the use of certain critical balance sheet. accounting estimates and assumptions. The areas involving a higher degree of judgment or complexity, or

77 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

ii) Amendments to FRS 16 Property, Plant are in turn passed through to those tenants via and Equipment fit-out provisions in their lease agreements. The amendment provides clarification that b) Operations, maintenance and utilities income major spare parts and servicing equipment Operations, maintenance and utilities income is that meet the definition of property, plant recognised when the services are rendered. and equipment are not inventory. Operations and maintenance income is revenue iii) Amendments to FRS 32 Financial earned from the operation and maintenance of Instruments: Presentation the properties. The amendment clarifies that income tax c) Car park and other income arising from distributions to equity holders Car park income includes revenue earned from are accounted for in accordance with FRS 12 the operations of the parking facilities, which is Income Taxes. recognised when the services are rendered. Previously, FRS 32 requires distributions Other income includes miscellaneous income to holders of an equity instruments to be earned from the properties such as kiosks and recognised directly net of any related income advertising revenue, which is recognised when tax while FRS 12 requires tax consequences the services are rendered. of dividends generally to be recognised in profit or loss unless certain conditions d) Interest income are met. FRS 32 was amended to address Interest income, including income arising from the inconsistencies by referring to FRS 12 finance leases and other financial instruments, is for the accounting for income tax relating recognised using the effective interest rate method. to distributions to holders of an equity instrument and transaction costs of an 2.3 Group accounting equity transaction. a) Subsidiaries The adoption of these new or amended FRS did not result in any substantial changes to the Group’s and i) Consolidation Trust’s accounting policies and had no material effect Subsidiaries are entities (including special on the amounts reported for the current or prior purpose entities) over which the Group has financial years. power to govern the financial and operating policies, generally accompanied by a 2.2 Revenue recognition shareholding giving rise to the majority of the Revenue is measured at the fair value of the consideration voting rights. The existence and effect of received or receivable, taking into account contractually potential voting rights that are currently defined terms of payments, net of applicable tax, rebates exercisable or convertible are considered when and discounts, and after eliminating sales within the assessing whether the Group controls another Group. Revenue is recognised as follows: entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. a) Base rent, amenities income, fit-out rental income They are de-consolidated from the date on which Base rent, amenities income and fit-out rental control ceases. income, net of incentives granted are recognised In preparing the consolidated financial in profit or loss on a straight-line basis and over the statements, transactions, balances and term of the lease. unrealised gains on transactions between Base rent comprises rental income earned from the group entities are eliminated. Unrealised losses leasing of the owned built-up area of the properties. are also eliminated but are considered as an indicator of impairment of the asset transferred. Amenities income is rental revenue earned from Accounting policies of subsidiaries have been the space utilised as amenities such as canteen and changed where necessary to ensure consistency business centre. with the policies adopted by the Group. Fit-out rental income is rental revenue earned from Non-controlling interests are that part of the the fit-out provisions for the tenants at the properties. net results of operations and of net assets of Fit-out rents typically arise from the additional costs a subsidiary attributable to the interests which related to tenant-specific fit-out requirements, which are not owned directly or indirectly by the equity 78 holders of the Trust. They are shown separately accounting policy on goodwill. In instances in the consolidated statement of comprehensive where the latter amount exceeds the former, income, statement of changes in unitholders’ the excess is recognised as gain on bargain fund and balance sheet. Total comprehensive purchase in profit or loss on the acquisition date. income is attributed to the non-controlling iii) Disposals interests based on their respective interests in a subsidiary, even if this results in the non- When a change in the Group’s ownership controlling interests having a deficit balance. interest in a subsidiary results in a loss of control over the subsidiary, the assets and liabilities ii) Acquisitions of the subsidiary including any goodwill are The acquisition method of accounting is used derecognised. Amounts previously recognised to account for business combinations by the in other comprehensive income in respect of Group. Identifiable assets acquired and liabilities that entity are also reclassified to profit or loss assumed in a business combination, with limited or transferred directly to retained earnings if exceptions, are measured initially at their fair required by specific Standard. values at the acquisition date. Acquisition- Any retained interest in the equity is re- related costs are recognised as expenses when measured at fair value. The difference between incurred. the carrying amount of the retained interest at The consideration transferred for the acquisition the date when control is lost and its fair value is of a subsidiary comprises the fair value of the recognised in profit or loss. assets transferred, the liabilities incurred and Please refer to the paragraph “Investments the equity interests issued by the Group. The in subsidiaries” for the accounting policy on consideration transferred also includes any investments in subsidiaries in the separate contingent consideration arrangement. financial statements of the Trust. Any contingent consideration to be transferred b) Transactions with non-controlling interests by the acquirer will be recognised at fair value at the acquisition date. Subsequent changes to Changes in the Group’s ownership interest in a the fair value of the contingent consideration subsidiary that do not result in a loss of control over which is deemed to be an asset or liability, the subsidiary are accounted for as transactions will be recognised in accordance with FRS 39 with equity owners of the Group. Any difference either in profit or loss or as a change to other between the change in the carrying amounts of comprehensive income. If the contingent the non-controlling interest and fair value of the consideration is classified as equity, it is not consideration paid or received is recognised within remeasured until it is finally settled within equity. equity attributable to the equity holders of the Trust. In business combinations achieved in stages, 2.4 Currency translation previously held equity interests in the acquiree are re-measured to fair value at the acquisition a) Functional and presentation currency date. Items included in the financial statements of each On an acquisition by acquisition basis, the Group entity in the Group are measured using the currency may elect to recognise any non-controlling of the primary economic environment in which the interest in the acquiree at the date of acquisition entity operates (“functional currency”). The either at fair value or at the non-controlling functional currency of the Trust is Indian Rupee. The interest’s proportionate share of the acquiree’s presentation currency is the Singapore Dollar as the identifiable net assets. financial statements are meant primarily for users in Singapore. Any excess of the sum of the fair value of the consideration transferred in the business b) Transactions and balances combination, the amount of non-controlling Transactions in a currency other than the functional interest in the acquiree (if any), and the fair currency (“foreign currency”) are translated into value of the Group’s previously held equity the functional currency using the exchange rates interest in the acquiree (if any), over the net fair approximating those ruling at the transaction dates. value of the acquiree’s identifiable assets and Monetary assets and liabilities denominated in liabilities is recorded as goodwill. Please refer foreign currencies are translated at the rate of to the paragraph “Goodwill” for the subsequent exchange ruling at the end of the reporting period. 79 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

Non-monetary items that are measured in terms of b) Depreciation historical cost in a foreign currency are translated Depreciation on computers, furniture and equipment using the exchange rates as at the dates of the initial is calculated using the straight line method to transactions. Non-monetary items measured at fair allocate the depreciable amounts over the estimated value in a foreign currency are translated using the useful lives as follows: exchange rates at the date when the fair value was measured. Useful lives Exchange differences arising on the settlement of Computers, furniture monetary items or on translating monetary items and equipment 3 to 5 years at the end of the reporting period are recognised in profit or loss except for exchange differences arising The residual values, estimated useful lives and on monetary items that form part of the Group’s depreciation method of equipment are reviewed, and net investment in foreign operations, which are adjusted as appropriate, at each balance sheet date. recognised initially in other comprehensive income The effects of any revision are recognised in profit or and accumulated under foreign currency translation loss when the changes arise. reserve in equity. The foreign currency translation c) Subsequent expenditure reserve is reclassified from equity to profit or loss of the Group on disposal of the foreign operation. Subsequent expenditure relating to equipment that has already been recognised is added to the c) Translation of Group entities’ financial statements carrying amount of the asset only when it is probable The results and financial position of all the Group that future economic benefits associated with the entities (none of which has the currency of a item will flow to the Group and the cost of the item hyperinflationary economy) that have a functional can be measured reliably. All other repair and currency different from the presentation currency are maintenance expenditure are recognised in profit or translated into the presentation currency as follows: loss when incurred. i) Assets and liabilities are translated at the closing d) Disposal exchange rates at the reporting date; On disposal of an item of equipment, the difference ii) Income and expenses are translated at average between the disposal proceeds and its carrying exchange rates (unless the average is not a amount is recognised in profit or loss within reasonable approximation of the cumulative “Other property operating expenses”. effect of the rates prevailing on the transaction dates, in which case income and expenses are 2.6 Investment properties under construction translated using the exchange rates at the dates All investment properties under construction where of the transactions); and fair values are reliably determinable are measured at iii) All resulting currency translation differences fair value. The difference between the fair value and are recognised in other comprehensive income the carrying amount is recognised in profit or loss. and accumulated in the foreign currency Investment properties under construction for which translation reserve. the fair value cannot be reliably measured at present, but for which in future the fair value would be reliably 2.5 Equipment determinable is accounted for at cost. a) Measurement 2.7 Investment properties Equipment is initially recognised at cost and Investment properties of the Group, principally subsequently carried at cost less accumulated comprising completed office buildings and interest depreciation and accumulated impairment losses. in freehold land held for a currently undetermined The cost of an item of equipment includes its future use, are held for long-term rental yields and purchase price and any cost that is directly capital appreciation. attributable to bringing the asset to the location and Investment properties are initially recognised at cost condition necessary for it to be capable of operating and subsequently carried at fair value, determined on an in the manner intended by management. annual basis by an independent professional valuer on the highest-and-best-use basis. Changes in fair values are recognised in profit or loss. Investment properties are not subject to depreciation. 80 Investment properties are subject to renovations or borrowings acquired specifically for the construction or improvements at regular intervals. The cost of major development of properties, as well as those in relation to renovations and improvements is capitalised and the general borrowings used to finance the construction or carrying amounts of the replaced components are development of properties. recognised in profit or loss. The cost of maintenance, The actual borrowing costs incurred during the period repairs and minor improvements is recognised in profit up to the issuance of the temporary occupation or loss when incurred. permit less any income on temporary investment of On disposal of investment properties, the difference these borrowings, are capitalised in the cost of the between the disposal proceeds and the carrying amount investment properties under construction. Borrowing is recognised in profit or loss. costs on general borrowings are capitalised by applying a capitalisation rate to construction or development 2.8 Goodwill expenditures that are financed by general borrowings. Goodwill on acquisitions of subsidiaries and businesses 2.11 Impairment of non-financial assets on or after 1 April 2010 represents the excess of the consideration transferred, the amount of any non- a) Goodwill controlling interest in the acquiree, and the fair value of Goodwill recognised separately as an intangible any previously held equity interest in the acquiree, over asset is tested for impairment annually and the fair value of the acquiree’s net identifiable assets. whenever there is indication that the goodwill may Goodwill arising from the acquisition of subsidiaries and be impaired. businesses prior to 1 April 2010 represents the excess of For the purpose of impairment testing of goodwill, the cost of the acquisition over the fair value of the goodwill is allocated to each of the Group’s cash- Group’s share of the net identifiable assets acquired. generating-units (“CGU”) expected to benefit from Goodwill on acquisition of subsidiaries is recognised synergies arising from the business combination. separately as intangible assets and carried at cost less An impairment loss is recognised when the carrying accumulated impairment losses. amount of a CGU, including the goodwill, exceeds Gains and losses on the disposal of subsidiaries include the recoverable amount of the CGU. The recoverable the carrying amount of goodwill relating to the entity amount of a CGU is the higher of the CGU’s fair sold, except for goodwill arising from acquisitions prior to value less cost to sell and value-in-use. 1 April 2001. Goodwill on subsidiaries acquired prior to The total impairment loss of a CGU is allocated first annual periods commencing 1 April 2001 was allowed to to reduce the carrying amount of goodwill allocated be adjusted against shareholders’ equity. If this option to the CGU and then to the other assets of the CGU was taken, goodwill previously adjusted against retained pro-rata on the basis of the carrying amount of each profits in the year of acquisition shall not be recognised asset in the CGU. in profit or loss on disposal. An impairment loss on goodwill is recognised as an Goodwill and fair value adjustments arising on the expense and is not reversed in a subsequent period. acquisition of foreign operations are treated as assets and liabilities of the foreign operations and translated at b) Investment in subsidiaries the closing rates at the reporting date. Investment in subsidiaries is tested for impairment whenever there is any objective evidence or 2.9 Investment in subsidiaries indication that the asset may be impaired. Investments in subsidiaries are carried at cost less For the purpose of impairment testing, the accumulated impairment losses in the Trust’s balance recoverable amount (i.e. the higher of the fair value sheet. On disposal of investments in subsidiaries, the less cost to sell and value-in-use) is determined on difference between disposal proceeds and the carrying an individual asset basis unless the asset does not amounts of the investments are recognised in profit generate cash flows that are largely independent or loss. of those from other assets. If this is the case, the recoverable amount is determined for the CGU to 2.10 Borrowing costs which the asset belongs. Borrowing costs are recognised in profit or loss using the effective interest method except for those costs that are directly attributable to the construction or development of properties. This includes those costs on 81 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

If the recoverable amount of the asset (or CGU) is 2.13 Financial instruments estimated to be less than its carrying amount, the a) Non-derivative financial assets carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between Financial assets are recognised when, and only the carrying amount and recoverable amount is when, the Group becomes a party to the contractual recognised as an impairment loss in profit or loss. provisions of the financial instrument. In assessing the value-in-use, the estimated future A financial asset is derecognised where the cash flows expected to be generated by the asset contractual right to receive cash flows from the are discounted to their present value using a pre-tax asset has expired. On de-recognition of a financial discount rate that reflects the current market asset in its entirety, the difference between the assessments of the time value of money and the carrying amount and the sum of the consideration risks specific to the asset. In determining fair received and any cumulative gain or loss that had value less costs to sell, recent market transactions been recognised in other comprehensive income is are taken into account, if available. If no such recognised in profit or loss. transactions can be identified, an appropriate The Group classifies non-derivative financial assets valuation model is used. These calculations are into the following categories: corroborated by capitalisation rates or other available fair value indicators. i) Loans and receivables

The Group bases its impairment calculation on Non-derivative financial assets with fixed or detailed rent-rolls and projections which are prepared determinable payments that are not quoted separately for each of the Group’s cash-generating in an active market are classified as loans and units to which the individual assets are allocated. receivables. Subsequent to initial recognition, These rent rolls and projections are generally loans and receivables are measured at amortised covering a period of 5 years. For longer periods, cost using the effective interest method, less a long term growth rate is calculated and applied impairment. Gains and losses are recognised to project future cash flows after the fifth year. in profit or loss when the loans and receivables An impairment loss for an asset other than goodwill are derecognised or impaired, and through the is reversed if, and only if, there has been a change amortisation process. in the estimates used to determine the assets’ Cash and cash equivalents include cash on hand recoverable amount since the last impairment loss and deposits with financial institutions which are was recognised. The carrying amount of this asset is subject to an insignificant risk of change in value. increased to its revised recoverable amount, provided that this amount does not exceed the carrying ii) Available-for-sale financial assets amount that would have been determined (net of Available-for-sale financial assets include any accumulated amortisation or depreciation) had investments in equity and debt instruments. no impairment loss been recognised for the asset Equity instruments classified as available-for-sale in prior years. A reversal of impairment loss for an are those which are neither classified as held asset other than goodwill is recognised in profit for trading nor designated at fair value through or loss. profit or loss. Debt instruments in this category are those which are intended to be held for an 2.12 Inventories indefinite period of time. Inventories are carried at the lower of cost and net After initial recognition, available-for-sale financial realisable value. Cost is determined on weighted average assets are subsequently measured at fair basis and includes all costs in bringing the inventories to value. Any gains or losses from changes in their present location and condition. Net realisable value fair value of the financial assets are recognised is the estimated selling price less the estimated costs of in other comprehensive income, except that completion and applicable variable selling expenses. impairment loss, foreign exchange gains and losses on monetary instruments and interest calculated using the effective interest method are recognised in profit or loss. The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as reclassification adjustment when the financial asset is de-recognised. 82 Investment in equity instruments whose fair liability if the remaining expected life of the hedged value cannot be reliably measured are measured item is more than 12 months, and as a current at cost less impairment loss. asset or liability if the remaining expected life of the hedged item is less than 12 months. The fair value b) Offsetting of financial instruments of a trading derivative is presented as a current asset Financial assets and liabilities are offset and the or liability. net amount is presented in the balance sheets i) Fair value hedge when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a The Group has entered into currency forwards net basis or to realise the asset and settle the that are fair value hedges for currency risk arising liability simultaneously. from its firm commitments for purchases and sales denominated in foreign currencies. The c) Non-derivative financial liabilities fair value changes on the hedged item resulting Financial liabilities are recognised when, and only from currency risk are recognised in profit or when, the Group becomes a party to the contractual loss. The fair value changes on the effective provisions of the financial instrument. portion of currency forwards designated as fair value hedges are recognised in profit or The Group derecognises a financial liability when loss within the same line item as the fair value its contractual obligations are discharged, cancelled changes from the hedged item. The fair value or expired. changes on the ineffective portion of currency The Group classifies non-derivative financial forwards are recognised separately in profit or liabilities into the other financial liabilities category. loss. Such financial liabilities are recognised initially at fair ii) Cash flow hedge value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial Interest rate swaps liabilities are measured at amortised cost using the The Group has entered into interest rate swaps effective interest method. that are cash flow hedges for the Group’s exposure to interest rate risk on its borrowings. d) Derivative financial instruments and hedging activities These contracts entitle the Group to receive A derivative financial instrument is initially interest at floating rates on notional principal recognised at its fair value on the date the contract amounts and oblige the Group to pay interest is entered into and is subsequently carried at its at fixed rates on the same notional principal fair value. The method of recognising the resulting amounts, thus allowing the Group to raise gain or loss depends on whether the derivative borrowings at floating rates and swap them into is designated as a hedging instrument, and if so, fixed rates. the nature of the item being hedged. The Group The fair value changes on the effective portion of designates each hedge as either: the interest rate swaps designated as cash flow (i) fair value hedge; or (ii) cash flow hedge. hedges are recognised in other comprehensive Fair value changes on derivatives that are not income, accumulated in the hedging reserve designated or do not qualify for hedge accounting and reclassified to profit or loss when the are recognised in profit or loss when the hedged interest expense on the borrowings changes arise. is recognised in profit or loss. The fair value The Group documents at the inception of the changes on the ineffective portion of interest transaction the relationship between the hedging rate swaps are recognised immediately in profit instruments and hedged items, as well as its or loss. risk management objective and strategies for Currency forwards undertaking various hedge transactions. The Group The Group has entered into currency forwards also documents its assessment, both at hedge that qualify as cash flow hedges against highly inception and on an ongoing basis, of whether the probable forecasted transactions in foreign derivatives designated as hedging instruments are currencies. The fair value changes on the highly effective in offsetting changes in fair value or effective portion of the currency forwards cash flows of the hedged items. designated as cash flow hedges are recognised The carrying amount of a derivative designated as in other comprehensive income, accumulated a hedge is presented as a non-current asset or in the hedging reserve and transferred to either the cost of a hedged non-monetary asset upon 83 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

acquisition or profit or loss when the hedged be related objectively to an event occurring after forecast transactions are recognised. the impairment was recognised, the previously recognised impairment loss is reversed to the extent The fair value changes on the ineffective portion the carrying amount of the asset does not exceed its of currency forwards are recognised immediately amortised cost at the reversal date. The amount of in profit or loss. When a forecasted transaction reversal is recognised in profit or loss. is no longer expected to occur, the gains and losses that were previously recognised in other b) Financial assets carried at cost comprehensive income are reclassified to profit If there is objective evidence (such as significant or loss immediately. adverse changes in the business environment where the issuer operates, probability of insolvency or 2.14 Impairment of financial assets significant financial difficulties of the issuer) that The Group assesses at each reporting date whether an impairment loss on financial assets carried at there is any objective evidence that a financial asset cost had been incurred, the amount of the loss is is impaired. measured as the difference between the asset’s carrying amount and the present value of a) Financial assets carried at amortised cost estimated future cash flows discounted at the For financial assets carried at amortised cost, the current market rate of return for a similar financial Group first assesses whether objective evidence asset. Such impairment losses are not reversed of impairment exists individually for financial assets in subsequent periods. that are individually significant, or collectively for financial assets that are not individually significant. 2.15 Leases If the Group determines that no objective evidence a) When the Group is the lessee: of impairment exists for an individually assessed financial asset, whether significant or not, it includes The Group leases certain equipment from the asset in a group of financial assets with similar non-related parties. credit risk characteristics and collectively assesses Lessee - Operating leases them for impairment. Assets that are individually assessed for impairment and for which an impairment Leases where substantially all risks and rewards loss is, or continues to be recognised are not included incidental to ownership are retained by the lessors in a collective assessment of impairment. are classified as operating leases. Payments made under operating leases (net of any incentives received If there is objective evidence that an impairment loss from the lessors) are recognised in profit or loss on a on financial assets carried at amortised cost has been straight-line basis over the period of the lease. incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and Contingent rents are recognised as an expense in the present value of estimated future cash flows profit or loss when incurred. discounted at the financial asset’s original effective b) When the Group is the lessor: interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is The Group leases investment properties to the current effective interest rate. The impairment non-related parties. loss is recognised in profit or loss. i) Lessor - Operating leases When the asset becomes uncollectible, the carrying Leases of investment properties where amount of impaired financial asset is reduced directly the Group retains substantially all risks and or if an amount was charged to the allowance rewards incidental to ownership are classified account, the amounts charged to the allowance as operating leases. Rental income from account are written off against the carrying value of operating leases (net of any incentives given to the financial asset. the lessees) is recognised in profit or loss on a To determine whether there is objective evidence straight-line basis over the lease lock-in period. that an impairment loss on financial assets has been Initial direct costs incurred by the Group in incurred, the Group considers factors such as the negotiating and arranging operating leases are probability of insolvency or significant financial added to the carrying amount of the leased difficulties of the debtor and delay in payments. assets and recognised as an expense in profit If in a subsequent period, the amount of the or loss over the lease term on the same basis impairment loss decreases and the decrease can as the lease income. 84 Contingent rents are recognised as income in liabilities and their carrying amounts for financial profit or loss when earned. reporting purposes. ii) Lessor – Finance leases Deferred tax liabilities are recognised for all temporary differences, except: Leases where the Group has transferred substantially all risks and rewards incidental to i) Where the deferred tax liability arises from the ownership of the leased assets to the lessees, initial recognition of goodwill or of an asset or are classified as finance leases. liability in a transaction that is not a business combination and, at the time of the transaction, The leased asset is derecognised and the affects neither the accounting profit nor taxable present value of the lease receivable (net of profit or loss; and initial direct costs for negotiating and arranging the lease) is recognised on the balance sheet ii) In respect of taxable temporary differences and included in “trade and other receivables”. associated with investments in subsidiaries, The difference between the gross receivable and associates and interests in joint ventures, where the present value of the lease receivable the timing of the reversal of the temporary is recognised as unearned finance income. differences can be controlled and it is probable that the temporary differences will not reverse Each lease payment received is applied against in the foreseeable future. the gross investment in the finance lease receivable to reduce both the principal and the Deferred tax assets are recognised for all deductible unearned finance income. The finance income temporary differences, the carry forward of unused is recognised in profit or loss on a basis that tax credits and unused tax losses, to the extent reflects a constant periodic rate of return on the that it is probable that taxable profit will be available net investment in the finance lease receivable. against which the deductible temporary differences, and the carry forward of unused tax credits and Initial direct costs incurred by the Group in unused tax losses can be utilised except: negotiating and arranging finance leases are added to finance lease receivables and i) Where the deferred tax asset relating to the recognised as an expense in profit or loss deductible temporary difference arises from over the lease term on the same basis as the the initial recognition of an asset or liability in a lease income. transaction that is not a business combination and, at the time of the transaction, affects 2.16 Taxes neither the accounting profit nor taxable profit or loss; and a) Current income tax ii) In respect of deductible temporary differences Current income tax for current and prior periods associated with investments in subsidiaries, is recognised at the amount expected to be paid associates and interests in joint ventures, to or recovered from the tax authorities, using the deferred tax assets are recognised only to the tax rates and tax laws that have been enacted or extent that it is probable that the temporary substantively enacted at the end of the reporting differences will reverse in the foreseeable future period, in the countries where the Group operates and taxable profit will be available against which and generates taxable income. the temporary differences can be utilised. Current income taxes are recognised in profit or loss The carrying amount of deferred tax assets is except to the extent that the tax relates to items reviewed at the end of each reporting period and recognised outside profit or loss, either in other reduced to the extent that it is no longer probable comprehensive income or directly in equity. that sufficient taxable profit will be available to allow Management periodically evaluates positions taken all or part of the deferred tax asset to be utilised. in the tax returns with respect to situations in which Unrecognised deferred tax assets are reassessed at applicable tax regulations are subject to interpretation the end of each reporting period and are recognised and establishes provisions where applicable. to the extent that it has become probable that future b) Deferred tax taxable profit will allow the deferred tax asset to be recovered. Deferred tax is provided using the liability method on temporary differences at the end of the reporting period between the tax bases of assets and

85 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

2.17 Provisions Deferred tax assets and liabilities are measured at Provisions for other liabilities and charges are recognised the tax rates that are expected to apply in the year when the Group has a present legal or constructive when the asset is realised or the liability is settled, obligation as a result of past events; it is more likely based on tax rates (and tax laws) that have been than not that an outflow of resources will be required to enacted or substantively enacted at the end of each settle the obligation and the amount has been reliably reporting period. estimated. Provisions are not recognised for future operating losses. Deferred tax items are recognised in correlation to the underlying transaction or event. The deferred tax Provisions are measured at the present value of the effect will be: expenditure expected to be required to settle the obligation using a pre-tax discount rate that reflects the i) Recognised in the profit or loss, if the underlying current market assessment of the time value of money transaction or event is recognised in profit or and the risks specific to the obligation. The increase in loss, the provision due to the passage of time is recognised ii) Recognised directly in equity, if the underlying in profit or loss as finance cost. transaction or event is recognised in equity, and Changes in the estimated timing or amount of the iii) Recognised as an adjustment to goodwill (or expenditure or discount rate are recognised in profit or negative goodwill) if the underlying transaction or loss when the changes arise. event arises from a business combination. Deferred tax assets and deferred tax liabilities are 2.18 Employee compensation offset, if a legally enforceable right exists to set off Employee benefits are recognised as an expense, unless current income tax assets against current income tax the cost qualifies to be capitalised as an asset. liabilities and the deferred taxes relate to the same taxable entity and the same tax authority. Defined contribution plans Tax benefits acquired as part of a business Defined contribution plans are post-employment benefit combination, but not satisfying the criteria for plans under which the Group pays fixed contributions into separate recognition at that date, would be separate entities such as the Central Provident Fund on recognised subsequently if new information about a mandatory, contractual or voluntary basis. The Group facts and circumstances changed. The adjustment has no further payment obligations once the contributions would either be treated as a reduction to goodwill (as have been paid. long as it does not exceed goodwill) if it is incurred during the measurement period or in profit or loss. 2.19 Share capital and share issuance expenses

c) Sales tax Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs Revenues, expenses and assets are recognised net directly attributable to the issuance of ordinary shares are of the amount of sales tax except: deducted against share capital. i) Where the sales tax incurred on a purchase of assets or services is not recoverable from the 2.20 Distributions to Trust’s unitholders taxation authority, in which case the sales tax Distributions to the Trust’s unitholders are recognised is recognised as part of the cost of acquisition when the distributions are declared payable by the of the asset or as part of the expense item as Trustee-Manager. applicable; and ii) Receivables and payables that are stated with 2.21 Transfer to other reserves the amount of sales tax included. Other reserves represent profits statutorily transferred The net amount of sales tax recoverable from, or to the dividend distribution reserve and capital payable to, the taxation authority is included as part redemption reserve of the Indian subsidiaries under of receivables or payables in the balance sheet. Indian regulatory provisions.

86 2.22 Contingencies v) the entity is a post-employment benefit plan for the benefit of employees of an entity related A contingent liability is: to the Trust. If the Trust is itself such a plan, a) a possible obligation that arises from past events the sponsoring employers are also related to and whose existence will be confirmed only by the Trust; the occurrence or non-occurrence of one or more vi) the entity is controlled or jointly controlled by uncertain future events not wholly within the control a person identified in (a); or of the Group; or vii) a person identified in (a)(i) has significant b) a present obligation that arises from past events but influence over the entity or is a member of is not recognised because: the key management personnel of the entity i) it is not probable that an outflow of resources (or of a parent of the entity). embodying economic benefits will be required to settle the obligation; or 3. Critical accounting estimates, ii) the amount of the obligation cannot be assumptions and judgments measured with sufficient reliability. The preparation of the Group’s consolidated financial A contingent asset is a possible asset that arises from statements requires management to make judgments, past events and whose existence will be confirmed only estimates and assumptions that affect the reported by the occurrence or non-occurrence of one or more amounts of revenues, expenses, assets and liabilities, uncertain future events not wholly within the control and the disclosure of contingent liabilities at the end of the Group. of each reporting period. Uncertainty about these assumptions and estimates could result in outcomes that Contingent liabilities and assets are not recognised on require a material adjustment to the carrying amount of the balance sheet of the Group, except for contingent the asset or liability affected in the future periods. liabilities assumed in a business combination that are present obligations and which the fair values can be reliably determined. 3.1 Judgments made in applying accounting policies Determination of lease classification 2.23 Related parties The Group has entered into commercial property leases A related party is defined as follows: on its investment properties. The Group has determined, a) A person or a close member of that person’s family is based on an evaluation of the terms and conditions related to the Group and Trust if that person: of the arrangements such as the lease term not constituting a substantial portion of the economic life of i) has control or joint control over the Trust; the commercial property, that it retains all the significant ii) has significant influence over theTrust; or risks and rewards of ownership of these properties and so accounts for the contracts as operating leases. iii) is a member of the key management personnel of the Trustee-Manager or of a parent of the Trust. 3.2 Key sources of estimation uncertainty b) An entity is related to the Group and the Trust if any The key assumptions concerning the future and other of the following conditions applies: key sources of estimation uncertainty at the end of i) the entity and the Trust are members of the the reporting period are discussed below. The Group same group (which means that each parent, based its assumptions and estimates on parameters subsidiary and fellow subsidiary is related to available when the financial statements were prepared. the others); Existing circumstances and assumptions about future developments, however, may change due to market ii) one entity is an associate or joint venture of the changes or circumstances arising beyond the control other entity (or an associate or joint venture of a of the Group. Such changes are reflected in the member of a group of which the other entity is assumptions when they occur. a member); a) Fair value of financial instruments iii) both entities are joint ventures of the same third party; Where the fair values of financial instruments recorded on the balance sheet cannot be derived iv) one entity is a joint venture of a third entity and from active markets, they are determined using the other entity is an associate of the third party; valuation techniques including the discounted cash 87 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

flow model. The inputs to these models are derived adjustments to tax provisions already recorded. from observable market data where possible, but The Group establishes provisions, based on where this is not feasible, a degree of judgment is reasonable estimates, for possible consequences required in establishing fair values. The judgments of audits by the tax authorities of the respective include considerations of liquidity and model inputs countries in which it operates. The amount of such regarding the future financial performance of the provisions is based on various factors, such as investee, its risk profile, and economic assumptions experience of previous tax audits and differing regarding the industry and geographical jurisdiction interpretations of tax regulations by the taxable in which the investee operates. Changes in entity and the relevant tax authority. Such differences assumptions about these factors could affect the of interpretation may arise on a wide variety of reported fair value of financial instruments. The issues depending on the conditions prevailing in the valuation of financial instruments is described in respective entity’s domicile. more detail in Note 29. Deferred tax assets are recognised for all unused tax b) Valuation of investment properties and investment losses to the extent that it is probable that taxable properties under construction profit will be available against which the losses can The Group carries its investment properties and be utilised. Significant management judgment is investment properties under construction at fair required to determine the amount of deferred tax value, with changes in fair values being recognised in assets that can be recognised, based upon the likely profit or loss. timing and level of future taxable profits. The fair values of investment properties and investment properties under construction are determined by real estate valuation experts using 4. Interest income recognised valuation techniques. These techniques Group comprise both the Income Capitalisation Method and 2014 2013 the Discounted Cash Flow Method. $'000 $'000 Interest income The determination of the fair values of the Financial institutions 3,970 3,237 investment properties and investment properties Investment in available- under construction require the use of estimates for-sale financial asset 4,545 258 such as future cash flows from assets (such as Others 857 732 lettings, tenant’s profiles, future revenue streams, 9,372 4,227 capital values of fixtures and fittings, plant and machinery, any environmental matters and the overall repair and condition of the property) and discount 5. Employee compensation rates applicable to those assets. These estimates are based on local market conditions existing at the end Group of each reporting date. 2014 2013 The carrying amount and key assumptions used $'000 $'000 Salaries, wages, and to determine the fair value of the investment other employee benefits 103 159 properties and investment properties under construction are further explained in Note 29. Employer's contribution to The Trustee-Manager is of the view that the defined contribution plans 2 2 valuation methods and estimates are reflective 105 161 of the current market condition. c) Taxes Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future

88 6. Other property operating A reconciliation between tax expense and the expenses product of accounting profit multiplied by the applicable corporate tax rate for the years ended Group 31 March 2014 and 2013 is as follows: 2014 2013 $'000 $'000 Group

2014 2013 Advertising and publication 550 582 $'000 $'000 Depreciation of equipment 98 106 Insurance 215 164 Profit before tax 85,224 60,704

General management fee 2,586 2,360 Tax calculated at tax rate of Travel and hotel 33.99% (2013: 32.45%) 28,968 19,695 accomodation 30 85 Effects of: Professional fee 602 712 Different tax rates arising Allowance for doubtful from foreign jurisdiction 113 (3,118) receivables 132 1,828 Expenses not deductible Allowance for doubtful for tax purpose 2,992 4,776 advances recoverable from Tax incentives (3,252) (5,073) regulatory authorities 244 744 Income not subject to tax (3,493) (4,670) Other direct costs 526 599 Effect of change in tax rate 2,401 - 4,983 7,180 Dividend distribution tax and withholding tax 4,206 2,499 Over provision in respect 7. Finance cost of prior years (877) - Group Others (684) 1,307 2014 2013 30,364 15,416 $'000 $'000 Interest expense Financial institutions 7,299 7,823 In financial year 2014, the corporate tax rate Medium term notes 6,007 6,113 applicable in India changed from 32.45% to 33.99%. 13,306 13,936 Tax incentives comprise tax holiday benefit available for Indian entities where investment properties are located in the notified industrial park and/or special 8. Income taxes economic zones. a) Income tax expense Income not subject to tax mainly comprises gains on Group derivative financial instruments. 2014 2013 $'000 $'000 Dividend distribution tax is levied on any dividend payments by the subsidiaries in India while Tax expense attributable to withholding tax is payable by the subsidiaries in profit is made up of: India on interest payments made to the intermediate Current income tax expense holding companies in Singapore. Based on current year's results 14,446 11,731 Minimum Alternate Tax (“MAT”) Over provision in respect of prior years (8) - Under the Indian income tax law, MAT will be payable only where tax liability, as computed is 14,438 11,731 less than 11.33% of the book profits in the profit Deferred income tax expense or loss account and after making certain specified Based on current adjustments. Further, in computing the book profits, year's results 16,805 3,685 the lower of the brought forward losses or the Over provision in respect unabsorbed depreciation based on the books of of prior years (879) - accounts will be deducted. However, as the manner 30,364 15,416 in which brought forward losses or unabsorbed

89 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

depreciation are to be computed is not specifically c) Deferred income tax liabilities and assets provided for, the amount allowable as a deduction is subject to differing interpretations. MAT paid (on or Deferred income tax assets and liabilities are offset after 1 April 2005) up to 31 March 2010 in excess of when there is a legally enforceable right to set off tax payable under other provisions of Indian income current income tax assets against current income tax law, being a MAT credit, will be allowed for carry tax liabilities and when the deferred income taxes forward and set-off for a period of 7 years. From 1 relate to the same fiscal authority. The amounts, April 2010 onwards, MAT credit will be allowed for determined after appropriate offsetting, are shown carry forward and set-off for a period of 10 years. on the balance sheet as follows: Set-off of credit is allowed in a particular tax year on the difference between the tax liability under normal Group provisions and the tax liability under MAT provisions 2014 2013 for such tax year. $'000 $'000

b) Movements in current income tax recoverable Deferred income tax assets: To be settled after one year (13,246) (13,422) Group Deferred income tax liabilities: 2014 2013 To be settled after one year 145,802 141,630 $'000 $'000 Deferred income tax

liabilities - net 132,556 128,208 Balance at beginning of financial year 3,696 1 12,567 The above comprises Tax charge for the year (14,446) (11,731) the following: Fair value gains on Over provision in respect investment properties 145,802 141,630 of prior years 8 - Minimum alternate tax (13,246) (13,422) Tax paid during the year 2,031 3,522 Tax deducted at source (net) 9,182 10,480 132,556 128,208 Translation differences (1,211) (1,142)

Balance at end of financial year 9,260 13,696

The movements in the deferred income tax assets and liabilities are as follows:

Fair value gains on Minimum investment alternate properties tax Others Total

$'000 $'000 $'000 $'000

2014 Balance at beginning of financial year 141,630 (13,422) - 128,208 Tax charged to income statement 16,967 (1,041) - 15,926 Translation differences (12,795) 1,217 - (11,578) Balance at end of financial year 145,802 (13,246) - 132,556

2013 Balance at beginning of financial year 145,766 (9,002) (1,265) 135,499 Tax charged to income statement 7,815 (5,339) 1,209 3,685 Translation differences (11,951) 919 56 (10,976) Balance at end of financial year 141,630 (13,422) - 128,208

90 Deferred income tax assets are recognised for 10. Distribution to unitholders minimum alternate tax credit available and tax losses carried forward to the extent that realisation of the Group and Trust related tax benefits through future taxable profits 2014 2013 is probable. $'000 $'000

During the year, the Group made refinements Distribution paid: to the method used to compute deferred tax on Exempt distribution of investment properties, resulting in a reduction of 2.96 cents per unit paid INR 380,668,000 (equivalent to $7,956,000). on 25 May 2012 - 22,799 Exempt distribution of d) Dividend distribution tax on undistributed earnings 2.50 cents per unit paid on 2 Nov 2012 - 19,314 At the reporting date, the Group had potential Exempt distribution of dividend distribution tax liability amounting to 2.15 cents per unit paid on 28 May 2013 19,638 - $16,000,000 (2013: $13,200,000) associated with undistributed earnings of subsidiaries. No deferred Exempt distribution of 2.24 cents per unit paid tax liabilities have been recognised in respect of on 28 Nov 2013 20,530 - these differences because the Group is in a position to control the dividend policies of these subsidiaries 40,168 42,113 and provision is made only when there is a plan for dividend distribution. A tax-exempt distribution of 2.32 cents per unit amounting to $21,277,619 was approved on 24 April 2014 by the Board of Directors of the Trustee- 9. Earnings per unit Manager. These financial statements do not reflect this distribution, which will be accounted for in Unitholders’ The calculation of basic earnings per unit is based on: funds as an appropriation of retained earnings in the financial year ending 31 March 2015. Group

2014 2013 Distribution adjustments Total profit attributable to unitholders ($'000) 50,107 41,518 The Trustee-Manager had elected to receive 50% of its base fee and performance fee in units and 50% in cash. Weighted average number The 50% fees payable in units does not affect cash flow of units outstanding during and has been added back to the income available for the year ('000) 915,711 828,726 distribution. Trustee-Manager’s fees payable in units Earnings per unit (cents) 5.47 4.95 amounted to $3,268,000 (2013: $3,329,000).

Diluted earnings per unit are the same as the basic During the financial year, realised exchange loss of earnings per unit as there are no dilutive instruments in $995,000 arose from the inception of a currency hedge issue during the financial year. on an outstanding SGD-denominated loan. In last financial year, the realised exchange loss on settlement of SGD- denominated loans was $21,584,000.

Exchange gain or loss is recognised when borrowings that are denominated in currencies other than the INR are revalued. The exchange gain or loss is realised when the borrowing matures, is prepaid, or swapped to INR denomination. Such exchange gain or loss does not affect cash flow and has been deducted from or added to the income available for distribution.

91 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

11.Cash and cash equivalents 13. Other assets

Group Trust Group Trust

2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Cash at bank and Current on hand 9,197 16,385 2,864 13,292 Deposits 420 477 5 - Fixed deposits 65,179 53,471 - - Prepayments 270 693 87 111 Others - 2,218 - - 74,376 69,856 2,864 13,292 690 3,388 92 111

The exposure of cash and cash equivalents to interest Non-current rate risks and currency risks is disclosed in Note 28. Deposits 8,285 8,817 - - Prepayments 8 - - - Others - 5,635 - - Fixed deposits at the balance sheet date had an average maturity of 6 months (2013: 6 months). Fixed deposits 8,293 14,452 - - with maturities in excess of 3 months, upon early- termination, will earn interest at the stipulated rate up The carrying amounts of deposits, denominated in Indian to the actual period of deposit, and are subject to an Rupees, approximate their fair values. insignificant risk of change in value.

As at 31 March 2014, certain companies of the Group which are located in India had cash and deposit 14. Loans to subsidiaries balances denominated in Indian Rupees amounting to Trust approximately $71,475,000 (2013: $56,527,000) which are deposited with financial institutions in India. Cash 2014 2013 and deposit balances which are denominated in Indian $'000 $'000 Rupees, a controlled currency, are not freely convertible Loans to subsidiaries into foreign currencies. Non-interest bearing 227,427 267,185 Interest bearing 148,390 153,640

375,817 420,825 12. Inventories

Group At 31 March 2014, the loans to subsidiaries are unsecured, repayable on demand and approximate their 2014 2013 fair values. The interest bearing loans carry interest rates $'000 $'000 ranging from 2.58% to 9.15% (2013: 7.88% to 8.85%) Operational supplies 706 1,025 per annum.

The cost of inventories recognised as expense and included in “utilities expenses” amounted to $16,575,000 (2013: $16,717,000).

92 15. Trade and other receivables 16. Investment in available-for-sale financial asset Group Trust Group 2014 2013 2014 2013 $'000 $'000 $'000 $'000 2014 2013 $'000 $'000 Trade receivables 7,915 7,310 - - Less: Allowance for Balance at beginning of impairment of financial year 40,250 - receivables (2,358) (2,435) - - Additions 8,603 40,250 Translation differences (3,500) - Trade receivables - net 5,557 4,875 - - Balance at end of financial year 45,353 40,250 Other receivables Advances recoverable from regulatory authorities 2,562 2,548 - - The investment in available-for-sale asset pertains to the Less: Allowance for subscription of interest-bearing Fully and Compulsorily impairment of Convertible Debentures (“FCCD”) in Phoenix Hitec receivables (2,562) (2,548) - - City Private Limited (“Vendor”). The FCCD may be fully Other receivables converted into equity shares of the Vendor any time - net - - - - before the 15th anniversary after issuance, at the option Amounts owing of the Group. The FCCD, however, will be mandatorily from subsidiaries - - 4,866 4,590 converted into equity shares of the Vendor at the 15th anniversary after issuance. Non-related parties Advances to suppliers 2,179 4,080 - - This investment is for the third aVance Business Hub Interest receivable 8,243 3,506 - - property (“aVance 3”), an IT building with a total Service input tax floor area of 690,520 sq ft located in Hyderabad. The recoverable 3,298 3,573 - - building is currently under construction by the Vendor Others 1,047 442 25 281 and subscription to the FCCD is a multi-stage process 20,324 16,476 4,891 4,871 to eventually acquire aVance 3. As further leasing conditions are met, the Group would subscribe to additional FCCD. The Group would complete the Amounts owing from subsidiaries are unsecured, acquisition of aVance 3, upon the building’s completion interest-free and repayable on demand. and satisfaction of all conditions precedent, by The carrying amounts of trade and other receivables purchasing the issued and paid up capital of the Vendor. approximate their fair values. The unquoted investment in available-for-sale asset The exposure of current trade and other receivables is carried at cost because fair value cannot be to currency risks is disclosed in Note 28. measured reliably.

Allowance for impairment losses on trade receivables and advances recoverable from regulatory authorities for building permits and utilities of $132,000 (2013: $1,828,000) and $244,000 (2013: $744,000) respectively were recognised as expenses and included in ‘other property operating expenses’.

93 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

17. Derivative financial instruments Group and Trust

2014 2013 Contract/ Contract/ Notional Fair Values Notional Fair Values Amount Amount Assets Liabilities Assets Liabilities $'000 $'000 $'000 $'000 $'000 $'000 Current Cash flow hedges Interest rate swaps 27,500 - (51) - - - Currency swaps 22,500 3,928 - - - -

Non-hedging instruments Currency forwards (buy) 16,800 - (916) 17,500 - (451)

3,928 (967) - (451)

Non-Current Cash flow hedges Interest rate swaps 34,000 - (463) 52,500 - (894) Currency swaps 130,000 14,220 (1,736) 123,500 7,983 -

14,220 (2,199) 7,983 (894)

Total 18,148 (3,166) 7,983 (1,345)

No cash flow hedges of expected transactions were assessed to be ineffective under FRS 39 and recognised in the profit or loss accounts for the Group and the Trust for the years ended 31 March 2014 and 2013.

The Group held interest rate swap to exchange floating-rate interest, on SGD loan of $61.5 million (2013: $52.5 million), into fixed-rate interest at an average rate of 3.43% (2013: 3.65%) per annum.

The Group entered into currency swaps to exchange floating-rate SGD loan of $83.5 million (2013: $63.5 million) for INR obligations at average fixed-rate of 8.30% (2013: 8.03%) per annum and also currency swaps to exchange fixed-rate medium term notes of $69.0 million (2013: $60.0 million) for fixed-rate INR obligation at average fixed-rate of 9.08% (2013: 8.87%) per annum.

The rationale for entering into currency forwards is disclosed in Note 28(a)(i).

Period when cash flows on cash flow hedges are expected to occur or affect profit or loss Currency and interest rate swaps are entered to hedge currency fluctuations. Fair value gains and losses on the currency and interest rate recognised in the hedging reserve are transferred to profit or loss as part of interest expense over the period of borrowings.

94 18. Equipment 20. Investment properties Group Group Computers, furniture 2014 2013 and equipment $'000 $'000 2014 2013 Balance at beginning of $'000 $'000 financial year 847,947 917,675 Fair value gain 24,243 12,470 Cost Additions during the year 18,677 6,066 Balance at beginning of Disposals/write-offs (43) (10) financial year 7,819 8,571 Transfer from/(to) Additions 6 82 investment properties Disposals/write-offs - (148) under construction 55,448 (14,779) Translation differences (714) (686) Translation differences (77,187) (73,475) Balance at end of Balance at end of financial year 7,111 7,819 financial year 869,085 847,947 Accumulated depreciation Balance at beginning of financial year 7,265 7,943 It is the intention of the Trustee-Manager to hold the Depreciation charge 98 106 Disposals/write-offs - (147) investment properties for the long term. Translation differences (665) (637) Balance at end of Investment properties are stated at fair value, which financial year 6,698 7,265 has been determined based on valuations performed by Cushman & Wakefield India Pvt. Ltd. as at 31 March Net book value Balance at end of 2014. The details of the valuation techniques and inputs financial year 413 554 used are disclosed in Note 29.

Balance at beginning of financial year 554 628 21. Goodwill

Group 19.Investment properties under 2014 2013 construction $'000 $'000 Group Balance at beginning of financial year 17,604 19,135 2014 2013 Translation differences (1,607) (1,531) $'000 $'000 Balance at beginning of Balance at end of financial year 31,625 930 financial year 15,997 17,604 Fair value gain 8,770 6,149 Additions during the year 17,717 9,730 Disposals/write-offs - (229) Transfer (to)/from Impairment test for goodwill investment properties (55,448) 14,779 Goodwill has been allocated to cash-generating unit Translation differences (2,664) 266 (“CGU”). A CGU is the smallest identifiable group Balance at end of of assets that generates cash inflows that are largely financial year - 31,625 independent of the cash inflows from other assets or groups of assets. The carrying values of goodwill Investment properties under construction that were remain unchanged except for translation differences. transferred to investment properties upon completion The goodwill arose from the acquisition of Ascendas were stated at fair value, which has been determined IT Park (Chennai) Limited and CyberPearl Information based on valuations performed by Cushman & Technology Park Private Limited amounting to Wakefield India Pvt. Ltd. as at 8 January 2014. $14,106,000 (2013: $15,523,000) and $1,891,000 (2013: $2,081,000) respectively.

95 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

Goodwill balances result from the requirement on acquisition to recognise a deferred tax liability, calculated as the difference between the tax effect of the fair value of the acquired assets and liabilities and their tax bases. For the purpose of testing this goodwill for impairment, the related deferred tax liabilities recognised on acquisition that remain at balance sheet date are treated as part of the relevant CGU.

22. Investment in subsidiaries The details of the Trust’s subsidiaries are as follows:

Trust

Subsidiaries Principal activities Country of Class of Percentage of Cost of incorporation/ shares equity held by investment place of the Trust business 2014 2013 2014 2013 % % $'000 $'000

Direct subsidiaries Ascendas Property Investment vehicle of Singapore Ordinary 100 100 10,764 11,845 Fund (India) Pte. Ltd.* listed trust

Ascendas Property Investment vehicle of Singapore Ordinary 100 100 # # Fund (FDI) Pte. Ltd.* listed trust

Indirect subsidiaries VITP Private Limited** Development, owning India Ordinary 100 100 and management of information technology parks in Hyderabad

Information Technology Development, owning India Ordinary 92.8 92.8 Park Limited** and management of information technology parks in Bangalore

CyberPearl Information Development, owning India Ordinary 100 100 Technology Park and management of Private Limited** information technology parks in Hyderabad

Ascendas IT Park Development, owning India Ordinary 89 89 (Chennai) Limited** and management of information technology parks in Chennai

Hyderabad Infratech Development, owning India Ordinary 100 100 Private Limited** and management of information technology parks in special economic zones in Hyderabad

# Less than $1,000 * Audited by Ernst & Young LLP, Singapore ** Audited by member firm of EY Global in India

96 23.Trade and other payables 24.Borrowings Group Group and Trust

2014 2013 2014 2013 $'000 $'000 $'000 $'000 Current Current Trade payables Unsecured bank loans 50,000 - Non-related parties 1,487 357 Less: Unamortised transaction costs (63) - Other payables 49,937 - Non-related parties - Interest payable 4,463 3,580 Total current borrowings 49,937 - - Construction costs payable 917 647 - Others 1,413 2,291 Non-current Companies controlled by Secured bank loans 25,000 25,000 a unitholder that has Less: Unamortised significant influence transaction costs (93) (172) over the Group 1,877 1,303 24,907 24,828 Advances Non-related parties 426 435 Unsecured bank loans 70,000 91,000 Less: Unamortised Accruals 11,479 9,931 transaction costs (185) (272) Rental deposits 17,005 19,164 69,815 90,728 Provisional rental income 74 300 Others 202 438 Medium term notes 90,000 90,000 39,343 38,446 Less: Unamortised transaction costs (296) (386) Non-current 89,704 89,614 Rental deposits 42,966 40,519 Others 2,140 2,570 Total non-current borrowings 184,426 205,170 45,106 43,089 Total borrowings 234,363 205,170 84,449 81,535

Debt repayment schedule Trust Group and Trust 2014 2013 After 1 $'000 $'000 year but Current Within 1 within 5 After 5 Other payables Total year years years Non-related parties 5,356 4,523 Unitholder with significant $'000 $'000 $'000 $'000 influence over the Group 1,040 1,113 2014 Secured bank loans Accruals 2,995 3,042 Variable rate loans Provision for income tax 23 25 - SGD term loan 24,907 - 24,907 -

9,414 8,703 Unsecured bank loans Variable rate loans - SGD term loan 119,752 49,937 69,815 - The amounts owing to companies controlled by a Unsecured SGD loans unitholder that has significant influence over the Group, 5 years medium are unsecured, interest-free and repayable on demand. term notes 24,945 - 24,945 - The amounts pertain mainly to fees payable to the 6 years medium Trustee-Manager and Property Manager which are trade term notes 64,759 - 64,759 - in nature. 89,704 - 89,704 -

The carrying amounts of trade and other payables Total 234,363 49,937 184,426 - approximate their fair values.

97 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

Group and Trust Medium term notes

After 1 In March 2009, the Trust established a $500 million year but Multicurrency Medium Term Note (“MTN”) Programme. Within 1 within 5 After 5 Under the MTN Programme, the Trust may, subject Total year years years to compliance with all relevant laws, regulations and $'000 $'000 $'000 $'000 directives, from time to time issue notes in one or 2013 Secured bank loans more tranches, on the same or different issue dates, in Variable rate loans Singapore dollars or any other currency. - SGD term loan 24,828 - 24,828 - Each tranche of notes may be issued in various Unsecured bank loans Variable rate loans amounts and tenors, and may bear fixed, floating, or - SGD term loan 90,728 - 90,728 - variable rates of interest. Hybrid notes, zero coupon notes or perpetual securities may also be issued under the Unsecured SGD loans MTN Programme. 5 years medium term notes 24,919 - 24,919 - 6 years medium The notes shall constitute direct, unconditional, term notes 64,695 - - 64,695 unsecured and unsubordinated obligations of the Trust 89,614 - 24,919 64,695 ranking pari passu, without any preference or priority among themselves and pari passu with all other present Total 205,170 - 140,475 64,695 and future unsecured obligations (other than subordinated obligations and priorities created by law) of the Trust. Security granted As at 31 March 2014, the SGD term loan is secured by The maximum aggregate principal amount of the notes a pledge over the total issued share capital of Ascendas outstanding at any time shall be $500 million, or such Property Fund (India) Pte. Ltd. and a negative pledge over higher amount as may be determined pursuant to the the shares of the subsidiaries. MTN Programme.

Interest rate risks The total notes issued by the Trust as at 31 March 2014, which still remains outstanding, is $90.0 million The weighted average effective interest rates of total (2013: $90.0 million), consisting of: borrowings at the balance sheet date were as follows: a) $25.0 million MTN 3, which bears a fixed interest Group and Trust rate of 3.50% per annum, payable semi-annually in arrears and matures on 7 October 2016. 2014 2013 Secured bank loans b) $65.0 million MTN 4, which bears a fixed interest SGD 3.09% 3.30% rate of 3.80% per annum, payable semi-annually in Unsecured bank loans arrears and matures on 1 October 2018. SGD 1.98% 2.18%

Unsecured notes 5 years medium term notes 3.50% 3.50% 25.Units on issue 6 years medium term notes 3.80% 3.80% Group and Trust Undrawn borrowing facility 2014 2013 Number Number As at 31 March 2014, the Trust has an undrawn loan of units of units facility of $15.0 million (2013: $24.0 million) towards the (in thousands) $'000 (in thousands) $'000 financing of: Balance at beginning a) the general working capital requirements of the of financial year 912,791 699,768 769,590 597,681 Group, and Issue of new units b) (directly or indirectly) the acquisition of aVance Fee paid in units 4,348 3,282 4,201 3,381 Private placement Business Hub (“aVance 3”) and all costs and (net of placement expenses in relation thereto. cost $1,374,000) - - 139,000 98,706

Balance at end of financial year 917,139 703,050 912,791 699,768

98 The holders of units are entitled to receive distribution as Other reserve represent profits transferred to the and when declared by the Trust. At any time, all the units statutory reserves of the Indian subsidiaries under in a class are of equal value and shall have equal rights Indian regulatory provisions. and obligations. d) Retained earnings All issued units are fully paid. Trust

2014 2013 26.Reserves $'000 $'000 Balance at beginning of financial year (271,952) (205,626) a) Foreign currency translation reserve Loss for the year (19,255) (24,213) Group Distribution to unitholders (40,168) (42,113)

2014 2013 Balance at end of financial year (331,375) (271,952) $'000 $'000 Balance at beginning of financial year (306,913) (264,443) Net currency translation differences arising from 27.Related party transactions translation from functional currency to presentation The Group has entered into several service agreements currency (53,777) (42,470) in relation to the management of the Trust and its Balance at end of financial year (360,690) (306,913) property operations. These agreements are entered into with the Trustee-Manager and Ascendas Services (India) Private Limited (the “Property Manager”), which are Trust companies that are controlled by a unitholder that has 2014 2013 significant influence over the Group. The fee structures $'000 $'000 of these services are as follows: Balance at beginning of financial year (186,746) (169,521) a) Trustee-Manager’s fees Net currency translation differences arising from i) Management fees translation from functional currency to presentation The Trustee-Manager is entitled under the Trust currency (20,958) (17,225) Deed to receive the following management fees: Balance at end of financial year (207,704) (186,746) a Base Fee at the rate of 0.5% per annum of the value of the properties held by the Trust. b) Hedging reserve a Performance Fee at the rate of 4% per Group and Trust annum of the net property income of the Trust. 2014 2013 $'000 $'000 ii) Postponement, reduction of fees Balance at beginning of financial year 2,639 689 The Trustee-Manager may postpone the receipt of any fee (or any part of a fee) or charge a lower Fair value (loss)/gain (977) 1,950 fee than it is entitled to receive under the Balance at end of financial year 1,662 2,639 Trust Deed. iii) Trustee fees c) Other reserves The Trustee-Manager is entitled to receive a Group trustee fee of up to 0.02% per annum of the 2014 2013 value of the properties held by the Trust. $'000 $'000 iv) Acquisition / divestment fees Balance at beginning of financial year 52,406 43,830 The Trustee-Manager is entitled to a fee upon Transfer from retained earnings 4,767 8,576 the acquisition of an asset by any subsidiary calculated as 1% of the acquisition value of Balance at end of financial year ,17357 52,406 the investment. 99 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

The Trustee-Manager is entitled to a fee f. 2% of the total sale consideration for the upon the disposal / divestment of an asset sale of property. by any subsidiary calculated as 0.5% of the sale value of the investment. Where external property agents are involved in securing a lease, renewal or sale of a property, b) Property Manager’s management fees a 20% mark-up applies to the abovementioned commissions. i) Property management services For the property management services, the v) Project management services property owner will pay the Property Manager a fee calculated based on 2% of the total property For the project management services, the property income of each property plus reimbursement of owner will pay the Property Manager a fee of remuneration costs of the personnel employed 2% of the construction cost for development, re- by the Property Manager who are deployed development, refurbishment, retrofitting, addition on-site at the properties to provide property to and alteration of or renovation carried out in the management services. property.

ii) Lease management services In addition to the transactions disclosed elsewhere in the financial statements, the following are related For the lease management services, the party transactions during the financial year based on property owner will pay the Property Manager a agreed terms: fee calculated based on 1% of the total property income of each property. Group

iii) General management services 2014 2013 $'000 $'000 For the general management services, the Companies controlled by property owner will pay an apportioned amount a unitholder that has of the remuneration cost of the centralized significant influence over staff employed by the Property Manager for the Group: the purposes of providing general management Trustee-Manager's fees services, plus an administrative fee of 20% of paid/payable 6,692 6,815 such cost. Property management services 2,407 2,519 iv) Marketing services Lease management services 1,203 1,259 For the marketing services, the property owner General management fee 2,586 2,360 will pay the Property Manager the following Marketing services 3,280 2,016 commissions: Project management fees 480 328 a. One month’s rent (including property and Rental income received/ fit-out rental) for every lease with duration of receivable (316) (352) less than one year; b. One and a half months’ rent (including property and fit-out rental) for every lease with a duration of between one and three years; c. Two months’ rent for every lease with duration of more than three but not exceeding ten years; d. 2% of the total lease payment for the entire lease period for every lease with a duration exceeding ten years; e. Renewal of an existing lease will be calculated at half of the above commission otherwise payable for a new tenancy;

100 28.Financial risk management In respect of other monetary assets and liabilities held in currencies other than the Indian Rupees, Financial risk factors the Group ensures that the net exposure is kept to an acceptable level by buying and The Group’s activities expose it to market risk (including selling foreign currencies at spot rates, where currency risk and interest rate risk), credit risk and necessary, to address short term imbalances. liquidity risk in the normal course of its business. The Group’s overall risk management strategy seeks to The Group’s main currency exposure based on minimise adverse effects from the unpredictability of the information provided to key management is financial markets on the Group’s financial performance. as follows: The Group uses financial instruments such as currency forwards, interest rate and foreign currency swaps to INR SGD USD Total hedge certain financial risk exposures. $'000 $'000 $'000 $'000 The Trustee-Manager is responsible for setting the As at 31 March 2014 objectives and underlying principles of financial risk Financial assets management for the Group. This is supported by Cash and cash equivalents 71,475 2,884 17 74,376 comprehensive internal processes and procedures which Trade and other are formalised in the Trustee-Manager’s organisational receivables 14,847 - - 14,847 and reporting structure, operating manuals and Investment in delegation of authority guidelines. available-for-sale financial asset 45,353 - - 45,353 The Audit Committee oversees how management Other financial assets 8,700 5 - 8,705 monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the Total financial assets 140,375 2,889 17 143,281 risk management framework in relation to the risks faced Financial liabilities by the Group. The Audit Committee is assisted in its Trade and other oversight role by Internal Audit. Internal Audit undertakes payables (73,684) (10,009) (12) (83,705) both regular and ad-hoc reviews of risk management Borrowings - (234,363) - (234,363) controls and procedures, the results of which are reported to the Audit Committee. Total financial liabilities (73,684) (244,372) (12) (318,068) a) Market risk Net financial assets/ i) Currency risk (liabilities) 66,691 (241,483) 5 (174,787) Less: Net financial The Group is exposed to foreign currency risk liabilities denominated on purchases and borrowings that are in the respective denominated in a currency other than the entities' functional functional currency of the Trust and its currencies (66,691) - - (66,691) subsidiaries. The currency giving rise to this Currency swaps - 152,500 - 152,500 risk is primarily the Singapore Dollar. Currency forwards - 16,800 - 16,800

Net currency exposure - (72,183) 5 (72,178) The Group’s distribution to unitholders is in Singapore Dollar. To enhance the stability of distribution to unitholders, the Group entered into forward contracts to hedge a substantial portion of the cash flow it expects to receive. The hedging of Indian Rupee cash flows receivable from the subsidiaries is effected through a forward sale of Indian Rupees and purchase of Singapore Dollars.

101 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

ii) Fair value interest rate risk INR SGD USD Total $'000 $'000 $'000 $'000 Fair value interest rate risk is the risk that the fair As at 31 March 2013 value of a financial instrument will fluctuate due Financial assets to changes in market interest rates. The Group Cash and cash has minimal interest rate risk as the Group has equivalents 56,527 13,312 17 69,856 substantially hedged its floating rate financial Trade and other liabilities, and its profits after tax and operating receivables 8,542 281 - 8,823 cash flows are substantially independent of Investment in changes in market interest rates. available-for-sale financial asset 40,250 - - 40,250 b) Credit risk Other financial assets 17,147 - - 17,147 Credit risk is the potential financial loss resulting from Total financial assets 122,466 13,593 17 136,076 the failure of a customer or counterparty to settle its Financial liabilities financial and contractual obligations to the Group, as Trade and other and when they fall due. payables (71,905) (8,747) - (80,652) Borrowings - (205,170) - (205,170) The Trustee-Manager has established credit limits for customers and monitors their balances on an Total financial on-going basis. Credit appraisal is performed by liabilities (71,905) (213,917) - (285,822) the Trustee-Manager before lease agreements Net financial assets/ are entered into with customers. The risk is also (liabilities) 50,561 (200,324) 17 (149,746) mitigated due to customers placing significant Less: Net financial amount of security deposits for lease and fit-out liabilities denominated rentals. Cash and short-term bank deposits in the respective are placed with financial institutions which entities' functional are regulated. currencies (50,561) - - (50,561) Currency swaps - 123,500 - 123,500 At the balance sheet date, there was no significant Currency forwards - 17,500 - 17,500 concentration of credit risk. The maximum exposure Net currency exposure - (59,324) 17 (59,307) to credit risk is represented by the carrying value of each financial asset in the balance sheet.

The credit risk for trade receivables based on If SGD changes against INR by 10% (2013: 10%) the information provided to key management respectively with all other variables including tax is as follows: rate being held constant, the effects from the net financial liability/asset position will be as follows: i) Financial assets that are neither past due nor impaired

2014 2013 Bank deposits are mainly deposits with Increase/(Decrease) banks which are regulated. Trade and other Profit Profit receivables that are neither past due nor after tax after tax impaired are substantially from companies with a $'000 $'000 good collection track record with the Group. SGD against INR strengthened (7,218) (5,932) Deposits that are neither past due nor impaired weakened 7,218 5,932 are substantially due from the Indian Statutory USD against INR Undertakings paid as guarantee deposits. strengthened 1 2 Management does not foresee any uncertainty weakened (1) (2) in ultimate collection of these amounts.

102 ii) Financial assets that are past due and/ c) Liquidity risk or impaired The Trustee-Manager monitors and maintains a There is no other class of financial assets that level of cash and cash equivalents deemed adequate is past due and/or impaired except for trade to finance the Group’s operations. In addition, the receivables and advances recoverable. Trustee-Manager also monitors and observes the bank covenants imposed by the banks on the The age analysis of trade receivables and various borrowings. advances recoverable past due but not impaired is as follows: The table below analyses the maturity profile 2014 2013 of the Group’s financial liabilities (including derivative financial liabilities) based on contractual $'000 $'000 undiscounted cash flows. Past due 0 to 3 months 3,946 3,932 Less Between Between Over 5 Past due over 3 months 3,968 3,378 than 1 1 and 2 2 and 5 years 7,914 7,310 year years years

$'000 $'000 $'000 $'000 The carrying amounts of trade receivables and As at 31 March 2014 advances recoverable determined to be impaired Net-settled swaps (8,543) (7,151) (7,389) - and the movement in the related allowance for Net-settled impairment are as follows: currency forwards (940) - - - Trade and 2014 2013 other payables (39,141) (44,564) - - $'000 $'000 Borrowings Group (including interest) (55,748) (79,117) (116,151) - Gross amount 4,920 4,983 (104,372) (130,832) (123,540) - Less: Allowance for impairment (4,920) (4,983) As at 31 March 2013 - - Net-settled swaps (9,244) (6,794) (9,798) (953) Net-settled Beginning of financial year 4,983 2,582 currency forwards (732) - - - Currency translation Trade and difference (455) (165) other payables (38,192) (42,460) - - Allowance made 393 2,601 Borrowings Allowance written back (1) (35) (including interest) (8,366) (55,559) (100,052) (65,944)

End of financial year 4,920 4,983 (56,534) (104,813) (109,850) (66,897)

The Group establishes an allowance for impairment that represents its estimate of The Group and Trust manage the liquidity risk incurred losses of trade and other receivables. by maintaining sufficient cash from borrowings This allowance is a specific loss component that and cash generated from operations to enable relates to individually significant exposures. The them to meet their capital expenditure and allowance account in respect of trade and other operating commitments. receivables is used to record impairment losses unless the Group is satisfied that no recovery of d) Capital risk the amount owing is possible. At that point, the financial asset is considered irrecoverable and The Trustee-Manager’s objective when managing the amount charged to the allowance account capital is to optimise the Group’s capital structure is written off against the carrying amount of the within the borrowing limits set out in the Trust Deed impaired financial asset. to fund future acquisitions and asset enhancement works at the Group’s properties. To maintain or achieve an optimal capital structure, the Trustee- Manager may issue new units or source for additional borrowing from both financial institutions and capital markets. 103 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

The Trustee-Manager monitors capital based on Trust Property consists of all property and rights of gearing ratio. As provided for in the Trust Deed, the any kind whatsoever which are held on trust for the maximum gearing ratio is 40% or up to a maximum Unitholders, in accordance with the terms of the of 60% only if a credit rating is obtained. The gearing Trust Deed. ratio is calculated as total borrowings divided by value of Trust Property. The Group is in compliance with the borrowing limit requirements imposed by the Trust Deed and 2014 2013 all externally imposed capital requirements for the $'000 $'000 financial years ended 31 March 2014 and 2013.

Total borrowings 234,363 205,170 Value of Trust Property 1,062,645 1,064,856 Gearing ratio 22% 19%

29.Accounting classifications and fair values

a) Accounting classifications

The financial assets and liabilities, together with the carrying amounts shown in the balance sheets are as follows: Other financial liabilities Fair value Fair value- within the Tot al through profit hedging Loans and Avaliable- scope of carrying Group Note or loss instrument receivables for-sale FRS 39 amount

$'000 $'000 $'000 $'000 $'000 $'000 31 March 2014 Financial assets Cash and cash equivalents 11 - - 74,376 - - 74,376 Other financial assets 13 - - 8,705 - - 8,705 Trade and other receivables 15 - - 14,847 - - 14,847 Investment in avaliable-for-sale financial asset 16 - - - 45,353 - 45,353 Currency swaps 17 - 18,148 - - - 18,148 - 18,148 97,928 45,353 - 161,429

Financial liabilities Trade and other payables 23 - - - - 83,705 83,705 Borrowings 24 - - - - 234,363 234,363 Forward currency contracts 17 916 - - - - 916 Currency swaps 17 - 1,736 - - - 1,736 Interest rate swaps 17 - 514 - - - 514 916 2,250 - - 318,068 321,234

31 March 2013 Financial assets Cash and cash equivalents 11 - - 69,856 - - 69,856 Other financial assets 13 - - 17,147 - - 17,147 Trade and other receivables 15 - - 8,823 - - 8,823 Investment in available-for-sale financial asset 16 - - - 40,250 - 40,250 Currency swaps 17 - 7,983 - - - 7,983 - 7,983 95,826 40,250 - 144,059

Financial liabilities Trade and other payables 23 - - - - 80,652 80,652 Borrowings 24 - - - - 205,170 205,170 Forward currency contracts 17 451 - - - - 451 Interest rate swaps 17 - 894 - - - 894 451 894 - - 285,822 287,167 104 Other financial liabilities Fair value Fair value- within the Tot al through profit hedging Loans and Avaliable- scope of carrying Trust Note or loss instrument receivables for-sale FRS39 amount

$'000 $'000 $'000 $'000 $'000 $'000 31 March 2014 Financial assets Cash and cash equivalents 11 - - 2,864 - - 2,864 Other financial assets 13 - - 5 - - 5 Loan to subsidaries 14 - - 375,817 - - 375,817 Trade and other receivables 15 - - 4,891 - - 4,891 Currency swaps 17 - 18,148 - - - 18,148 - 18,148 383,577 - - 401,725

Financial liabilities Trade and other payables 23 - - - - 9,414 9,414 Borrowings 24 - - - - 234,363 234,363 Forward currency contracts 17 916 - - - - 916 Currency swaps 17 - 1,736 - - - 1,736 Interest rate swaps 17 - 514 - - - 514 916 2,250 - - 243,777 246,943

31 March 2013 Financial assets Cash and cash equivalents 11 - - 13,292 - - 13,292 Loans to subsidaries 14 - - 420,825 - - 420,825 Trade and other receivables 15 - - 4,871 - - 4,871 Currency swaps 17 - 7,983 - - - 7,983 - 7,983 438,988 - - 446,971

Financial liabilities Trade and other payables 23 - - - - 8,703 8,703 Borrowings 24 - - - - 205,170 205,170 Forward currency contracts 17 451 - - - - 451 Interest rate swaps 17 - 894 - - - 894 451 894 - - 213,873 215,218

The carrying values of fixed rate medium term note b) Fair value hierarchy approximate their fair values. The fair values are The assets and liabilities are measured at fair value estimated using discounted cash flow analysis based on and classified by level of the following fair value current rates for similar types of borrowing arrangements. measurement hierarchy: The carrying value less impairment provision of trade i) quoted prices (unadjusted) in active markets for receivables and the carrying value of payables are identical assets or liabilities (Level 1); assumed to approximate their fair values. ii) inputs other than quoted prices included within The carrying value of other financial assets (current and Level 1 that are observable for the asset or non-current), trade and other payables (current and non- liability, either directly (is as prices) or indirectly current) and borrowings (current and non-current), are (i.e. derived from prices) (Level 2); and reasonable approximation of their fair values, either due to their short-term nature or that they are floating rate iii) inputs for the asset or liability that are not based instruments that are re-priced to market interest rates on observable market data (unobservable inputs) on or near the end of the reporting period. (Level 3).

105 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

c) Fair value measurements

i) Assets and liabilities measured at fair value The following table shows an analysis of each class of assets and liabilities measured at fair value at the end of the reporting period:

2014

Quoted prices in Significant active markets observable inputs Significant for identical other than quoted unobservable instruments prices inputs Group (Level 1) (Level 2) (Level 3) Tot al

$'000 $'000 $'000 $'000

Recurring fair value measurements Assets Financial assets: Derivative financial instruments Currency swaps - 18,148 - 18,148

Financial assets as at 31 March - 18,148 - 18,148

Non-financial assets: Investment properties - - 869,085 869,085

Non-financial assets as at 31 March - - 869,085 869,085

Liabilities Financial liabilities: Derivative financial instruments Forward currency contracts - 916 - 916 Currency swaps - 1,736 - 1,736 Interest rate swaps - 514 - 514

Financial liabilities as at 31 March - 3,166 - 3,166

106 ii) Level 2 fair value measurements As at 31 March 2014, the Group has forward foreign exchange contracts, interest rate swaps and currency swaps, which are categorised in Level 2. The fair value of forward foreign exchange contracts is determined using mark-to-market valuation, which is calculated on the basis of quoted forward exchange rates at the balance sheet date, received from respective banking and financial institutions. The fair values of interest rate swaps and currency swaps are also determined using mark-to-market valuation, which is calculated as the present value of the estimated future cash flows, received from respective banking and financial institutions. These derivative financial instruments are recognised at fair value in the financial statements. iii) Level 3 fair value measurements The following table shows the information about fair value measurements using significant unobservable inputs (Level 3):

Fair value measurements - Level 3 measurements

Fair value at Description31 March 2014 Valuation techniques Unobservable inputs Range

$'000 Recurring fair value measurements

Investment properties 869,085 Discounted cash flow Capitalisation rate 10 - 11% Long-term revenue Growth Rate 2 - 3%

Income capitalisation Capitalisation rate 10 - 11% method

The valuation is determined through the two approaches, income capitalisation and discounted cash flow. The income capitalisation approach involves capitalising a single year’s net income estimate by an appropriate yield, whereas, the discounted cash flow approach explicitly models future net income from the property which is then discounted to a present value at an appropriate discount rate. The final valuations determined are an average of the two approaches employed by Cushman & Wakefield India Pvt. Ltd. Total property expenses, recognised in the consolidated profit or loss, represent direct operating expenses arising from investment properties that generated rental income. The Group does not have any investment properties that did not generate rental income.

107 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

30.Commitments 31.Operating segment As at the end of the financial year, the Group had the The Group's investment properties are primarily following commitments: tenanted for use as business space and are located in India. The revenues from the Group are derived a) Development and capital expenditure for primarily from corporate tenants and no single major investment properties under construction: customer represents sales of more than 10%. Therefore, the Trustee-Manager considers that the Group operates 2014 2013 within a single business segment and within a single $'000 $'000 geographical segment in India. Amounts approved and contracted for 115,959 148,709 Amounts approved but 32.Contingent liabilities not contracted for 31,533 - 147,492 148,709 a) Income from house property or business income

Information Technology Park Limited (“ITPL”) and For financial year ended 31 March 2014, amount Ascendas IT Park (Chennai) Limited (“AITPCL”) approved and contracted for includes $112.6 million account for rental and other income as business (2013: $123.9 million) pertaining to the acquisition income. ITPL and AITPCL had received assessment of three buildings in Hitec City 2 Special Economic orders from the taxation authorities treating the Zone in Hyderabad. The three buildings are rental income under “Income from House Property” expected to be ready over the next 3 to 4 years. and correspondingly the admissible deductions and brought forward losses have been assessed at a b) Operating lease commitments – where a group lower amount. company is a lessor ITPL had received assessment orders from the The Group leases out investment properties under taxation authorities treating the rental income under non-cancellable operating leases with varying terms, “Income from House Property” from assessment escalation clauses and renewal rights. years 1999-00 to 2009-10 and correspondingly the admissible deductions and brought forward The future minimum lease receivable under non- losses have been assessed at a lower amount. cancellable operating leases contracted for at ITPL had received favourable orders from Income the balance sheet date but not recognised as Tax Appellate Tribunal, considering rental income as receivables is analysed as follows: business income for assessment years 1999-00 to 2009-10. However the income tax department has 2014 2013 filed an appeal against the Tribunal order in High $'000 $'000 Court. For assessment years subsequent to 2009-10, the assessment proceedings are Lease receivables: under progress. Within 1 year 48,464 56,049 After 1 year but within AITPCL had received assessment order for 5 years 63,877 66,863 assessment years 2005-06 and 2007-08 to 2011-12 After 5 years 6,431 13,014 amounting to INR 115,800,000 (equivalent to 118,772 135,926 $2,420,000).

ITPL and AITCPL had obtained opinion from an independent legal counsel on the above matters stating that income generated is business income and not assessable under “Income from House Property”, accordingly no provision has been made.

108 b) Service tax disputes c) Value added tax on fit-out rental

ITPL had received orders from the VITP and CP had received demand notices from Commissioner of Service Tax disallowing the Commercial Tax Department of Andhra the availment of service tax credit relating to Pradesh levying Value Added Tax (“VAT”) on construction costs, generation of electricity lease rentals attributable to fit-outs. VITP and and maintenance of power plant and other CP had obtained opinion from an independent miscellaneous items for the period from October legal counsel who is of the view that VITP and 2006 to September 2012. The potential tax CP are not liable to pay VAT and accordingly exposure, including penalty amounted to INR appeals against such demand notices have been 68,526,000 (equivalent to $1,432,000). ITPL filed. The potential tax exposure, attributable to has obtained an opinion from its independent such demand notices which are not recognised tax consultant who has expressed confidence in in these financial statements, is estimated to getting a favourable decision from the Tribunal. be INR 82,471,000 (equivalent to $1,724,000) for VITP and INR 20,510,000 (equivalent to AITPCL had received service tax assessment $429,000) for CP. orders, including penalties and interest, disallowing the availment of service tax credit d) Transfer pricing disputes relating to construction costs used for renting of immovable property services for the period VITP and ITPL had received demand notices from October 2005 to March 2010 and demand arising from differences in valuation of of service tax on electricity, water charges and consideration paid for the buyback of shares. fit-out. As at 31 March 2014, the total service tax in dispute not recognised in the financial In VITP, the difference in buyback price and statements, including penalties and interest, the fair value of the share as determined by amounts to INR 757,864,000 (equivalent to the income tax department was treated as an $15,839,000). AITPCL has obtained an opinion unsecured loan to the holding company and from its independent tax consultant who is of consequential tax was computed on the notional the view that AITPCL is eligible to avail the credit interest income. The potential tax exposure relating to construction costs while electricity, attributable, not recognised in the financial water and fit-out charges are not subject to statements is estimated to be INR10,504,000 service tax. A petition against this assessment (equivalent to $220,000). has been filed before the Central Excise and Service Tax Appellate. In ITPL, the difference in buyback price and the fair value of the share was treated as income VITP Private Limited (“VITP”) and Cyber Pearl of ITPL. The redemption of preference shares is Information Technology Park Private Limited not an income bearing international transaction (“CP”) had received service tax demand which affects the profitability of the ITPL and notices from the Service Tax Department on does not have any income implications. Though reimbursable expenditure, termination charges no additional tax is demanded in the order, received from tenants and recovery of credit the order will have an impact of reducing the availed for the periods June 2007 to March recorded MAT credit entitlement and carried 2013. The potential tax exposure, including forward business loss by INR110,533,000 penalty attributable to such demand notices is (equivalent to $2,310,000). estimated to be INR 209,119,000 (equivalent to $4,371,000) for VITP and INR 44,501,000 (equivalent to $930,000) for CP. VITP and CP have obtained an opinion from its independent tax consultant who is of the view that the claims are not tenable and accordingly no provision has been made.

109 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

33. New or revised accounting to describe the application of equity method to investment in joint ventures in addition standards and interpretations to associates. Below are the mandatory standards, amendments and interpretations to existing standards that have been As the Group does not have any joint arrangements, published and are relevant for the Group’s accounting the implementation of FRS 111 in April 2014 will not periods beginning on or after 1 April 2014 or later periods: have any impact on the financial position of the Group. a) FRS 110 Consolidated Financial Statements and revised FRS 27 Separate Financial Statements c) FRS 112 Disclosure of Interests in Other Entities (effective for annual periods beginning on or after (effective for annual periods beginning on or after 1 January 2014) 1 January 2014)

FRS 110 establishes a single control model that FRS 112 is a new and comprehensive standard on applies to all entities including special purpose disclosure requirements for all forms of interests entities. The changes introduced by FRS 110 in other entities, including joint arrangements, will require management to exercise significant associates, special purpose vehicles and other judgment to determine which entities are controlled, off balance sheet vehicles. FRS 112 requires an and therefore are required to be consolidated by the entity to disclose information that helps users of Group, compared with the requirements that were its financial statements to evaluate the nature and in FRS 27. Therefore, FRS 110 may change which risks associated with its interests in other entities entities are consolidated with a group. The revised and the effects of those interests on its financial FRS 27 was amended to address accounting for statements. As this is a disclosure standard, it subsidiaries, jointly controlled entities and associates will have no impact on the financial position and in separate financial statements. financial performance of the Group when adopted in April 2014. The Group has reassessed its investments in accordance with the new definition of control. d) Amendments to FRS 32 Offsetting Financial Assets Based on the Group’s assessment as at 31 March and Financial Liabilities (effective for annual periods 2014, the Group does not expect the adoption of beginning on or after 1 January 2014) FRS 110 will have any significant impact on the financial statements of the Group. The amendments to FRS 32 clarify that rights of set-off must not only be legally enforceable b) FRS 111 Joint Arrangements and Revised FRS in the normal course of business, but must also 28 Investments in Associates and Joint venture not contingent on a future event and must be (effective for annual periods beginning on or after enforceable in the event of bankruptcy or insolvency 1 January 2014) of all the counterparties to the contract. The Group currently offsets certain balances with the same FRS 111 classifies joint arrangements either as joint counterparty as the Group has legal rights to set operations or joint ventures. Joint operation is a off the amounts and intends to settle on a net basis. joint arrangement whereby the parties that have joint The adoption of the amendments will not result in control of the arrangement have rights to the assets substantial changes to the financial position of and obligations for the liabilities of the arrangement the Group. whereas joint venture is a joint arrangement whereby the parties that have joint control of the e) Amendments to FRS 36 Recoverable Amount arrangement have rights to the net assets of Disclosures for Non-financial Assets the arrangement. When FRS 113 Fair Value Measurement was FRS 111 requires the determination of joint issued, FRS 36 Impairment of Assets was amended arrangement’s classification to be based on to require the disclosure of information about the parties’ rights and obligations under the the recoverable amount of impaired assets if arrangement, with the existence of a separate that amount is based on fair value less costs of legal vehicle no longer being the key factor. FRS disposal. However, the unintended result of those 111 disallows proportionate consolidation and amendments were that an entity would instead be requires joint ventures to be accounted for using the required to disclose the recoverable amount for each equity method. The revised FRS 28 was amended cash-generating unit for which the carrying amount 110 of goodwill or intangible assets with indefinite 34. Authorisation of financial useful lives allocated to that unit is significant in statements comparison with the entity’s total carrying amount of goodwill or intangible assets with indefinite These financial statements were authorised for issue in useful lives. accordance with a resolution of the Board of Directors of the Trustee-Manager, Ascendas Property Fund Trustee The amendments remove the requirement to Pte. Ltd. on 24 April 2014. disclose the recoverable amount of each cash- generating unit for which the carrying amount of goodwill or intangible assets with indefinite useful lives allocated to that unit is significant when compared to the entity’s total carrying amount of goodwill or intangible assets with indefinite useful lives.

Instead, the amendments require entities to disclose the recoverable amount of an asset (including goodwill) for which an impairment loss was recognised or reversed during the reporting period.

The amendments also require additional information about the fair value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposal.

As this is a disclosure standard, it will have no impact to the financial position and financial performance of the Group when adopted in April 2014. f) Amendments to FRS 39 Novation of Derivatives and Continuation of Hedge Accounting

The amendments clarify that hedge accounting need not be discontinued when derivatives designated in hedging relationships are required to be novated to a central counter-party as a result of a law or regulation.

The exception to the discontinuation requirements would only apply to novations required by laws or regulations. For novations that do not meet the criteria for exception, entities must assess the changes to hedging instrument against the derecognition criteria for financial instruments and the general conditions for continuation of hedge accounting.

The Group does not expect the adoption of the amendments will have any impact on the financial position of the Group.

111 Financial statements of trustee-manager

Ascendas Property Fund Trustee Pte. Ltd.

Contents

113 Directors’ report 115 Statement by directors 116 Independent auditor’s report 117 Statement of comprehensive income 118 Balance sheet 119 Statement of changes in equity 120 Cash flow statement 121 Notes to the financial statements

112 Directors’ report

For the financial year ended 31 March 2014

The Directors are pleased to present their report to the member together with the audited financial statements of Ascendas Property Fund Trustee Pte. Ltd. (in its personal capacity and not as Trustee- Manager of Ascendas India Trust) (the “Company”) for the financial year ended 31 March 2014.

Directors The Directors of the Company in office at the date of this report are as follows: Mr Philip Yeo Liat Kok Mr David Lim Tik En Mr Michael Grenville Gray Mr Rakesh Kumar Aggarwal Mr T.V. Mohandas Pai Mr Girija Pande Mr Ng Eng Leng (appointed on 1 April 2013) Mr Khiatani Manohar Ramesh (appointed on 1 June 2013) Mr Jonathan Yap Neng Tong

Arrangements to enable directors to acquire shares and debentures Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the Directors of the Company to acquire benefits by means of the acquisition of shares or debentures of the Company or any other body corporate.

Directors’ interests in shares or debentures According to the register of directors’ shareholdings, no Director who held office at the end of the financial year had required to be kept under section 164 of the Singapore Companies Act, Chapter 50, interests in shares, or debentures of the Company, or of related corporations, either at the beginning of the financial year, or date of appointment if later, or at the end of the financial year.

113 Directors’ report

For the financial year ended 31 March 2014

Directors’ contractual benefits Since the end of the previous financial year, no Director has received or become entitled to receive a benefit by reason of a contract made by the Company or a related corporation with the Director, or with a firm of which the Director is a member, or with a company in which the director has a substantial financial interest except as disclosed in the accompanying financial statements, and except that certain directors receive remuneration as a result of their employment with related corporations.

Share options There were no options granted during the financial year to subscribe for unissued shares of the Company.

No shares have been issued during the financial year by virtue of the exercise of options to take up unissued shares of the Company. There were no unissued shares of the Company under option at the end of the financial year.

Auditor Ernst & Young LLP have expressed their willingness to accept reappointment as auditor.

For and on behalf of the Board of Directors

KHIATANI MANOHAR RAMESH JONATHAN YAP NENG TONG Director Director

24 April 2014

114 Statement by directors

For the financial year ended 31 March 2014

We, Khiatani Manohar Ramesh and Jonathan Yap Neng Tong, being two of the directors of the Company, do hereby state that, in the opinion of the directors, a) the accompanying balance sheet, statement of comprehensive income, statement of changes in equity, and cash flow statement together with notes thereto as set out on pages 117 to 131 are drawn up so as to give a true and fair view of the state of affairs of the Company as at 31 March 2014 and the results of the business, changes in equity and cash flows of the Company for the financial year ended on that date, and b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.

For and on behalf of the Board of Directors

KHIATANI MANOHAR RAMESH JONATHAN YAP NENG TONG Director Director

24 April 2014

115 Independent auditor’s report

For the financial year ended 31 March 2014

Independent auditor’s report to the member of Ascendas Property Fund Trustee Pte. Ltd.

Report on the financial statements We have audited the accompanying financial statements the appropriateness of accounting policies used and of Ascendas Property Fund Trustee Pte. Ltd. (the the reasonableness of accounting estimates made by “Company”) set out on pages 117 to 131, which comprise management, as well as evaluating the overall presentation the balance sheet of the Company as at 31 March 2014, of the financial statements. the statement of changes in equity, the statement of comprehensive income and cash flow statement for the We believe that the audit evidence we have obtained financial year then ended, and a summary of significant is sufficient and appropriate to provide a basis for our accounting policies and other explanatory notes. audit opinion.

Management’s responsibility for the Opinion financial statements In our opinion, the financial statements of the Company Management is responsible for the preparation of financial are properly drawn up in accordance with the provisions statements that give a true and fair view in accordance with of the Act and Singapore Financial Reporting Standards the provisions of the Singapore Companies Act, Chapter 50 so as to give a true and fair view of the state of affairs (the “Act”) and Singapore Financial Reporting Standards, and of the Company as at 31 March 2014, and of the results, for devising and maintaining a system of internal accounting changes in equity and cash flows of the Company for the controls sufficient to provide a reasonable assurance that financial year ended on that date. assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised Report on other legal and regulatory requirements and that they are recorded as necessary to permit the In our opinion, the accounting and other records required by preparation of true and fair profit and loss accounts and the Act to be kept by the Company, have been properly kept balance sheets and to maintain accountability of assets. in accordance with the provisions of the Act.

Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free Ernst & Young LLP from material misstatement. Public Accountants and Chartered Accountants An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial Singapore, 24 April 2014 statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating

116 Statement of comprehensive income

For the financial year ended 31 March 2014

Note 2014 2013 $’000 $’000 Revenue 4 6,692 6,815 Other income 5 1,120 1,124

Expenses Depreciation of property, plant and equipment 9 (8) (8) Employee compensation 6 (2,467) (2,656) Other operating expenses 7 (1,115) (1,015) Total expenses (3,590) (3,679)

Profit before tax 4,222 4,260

Income taxes 8 (558) (639)

Profit for the year 3,664 3,621

Other comprehensive income, net of tax:

Items that may be reclassified subsequently to profit or loss

Available-for-sale financial assets - fair value losses 10 (1,083) (124)

Total comprehensive income for the year 2,581 3,497 The accompanying notes form an integral part of these financial statements. notes form accompanying The 117 Balance sheet

As at 31 March 2014

Note 2014 2013

$’000 $’000

Assets Non-current assets Property, plant and equipment 9 13 11 Available-for-sale financial assets 10 21,042 18,844 Deferred income tax assets 8 13 10 21,068 18,865

Current assets Trade and other receivables 11 6,342 7,699 Prepayments 32 32 Deposits 7 7 6,381 7,738

Total assets 27,449 26,603

Liabilities Current liabilities Trade and other payables 12 1,901 1,696 Current income tax liabilities 8 732 672 2,633 2,368

Total liabilities 2,633 2,368 Net assets 24,816 24,235

Equity Share capital 13 1,000 1,000 Fair value reserve 14 (1,216) (133) Revenue reserve 25,032 23,368

Total equity 24,816 24,235 The accompanying notes form an integral part of these financial statements. notes form accompanying The 118 Statement of changes in equity

For the financial year ended 31 March 2014

Share Fair value Revenue Total Note capital reserve reserve equity

$’000 $’000 $’000 $’000 2014 Beginning of financial year 1,000 (133) 23,368 24,235

Profit for the year - - 3,664 3,664

Other comprehensive income, net of tax: Available-for-sale financial assets - fair value losses - (1,083) - (1,083)

Total comprehensive income for the year - (1,083) 3,664 2,581

Dividends 15 - - (2,000) (2,000)

End of financial year 1,000 (1,216) 25,032 24,816

2013

Beginning of financial year 1,000 (9) 22,447 23,438

Profit for the year - - 3,621 3,621

Other comprehensive income, net of tax: Available-for-sale financial assets - fair value losses - (124) - (124)

Total comprehensive income for the year - (124) 3,621 3,497

Dividends 15 - - (2,700) (2,700)

End of financial year 1,000 (133) 23,368 24,235

The accompanying notes form an integral part of these financial statements. notes form accompanying The 119 >à yœÜÃÌ>Ìi“i˜Ì

For the financial year ended 31 March 2014

2014 2013

$’000 $’000

Operating activities Profit before tax 4,222 4,260

Adjustments for: Depreciation of property, plant and equipment 8 8 Dividend income (1,105) (1,119) Fund management fee received/receivable in units of listed property trust (3,268) (3,329) Operating cash flow before changes in working capital changes (143) (180)

Changes in working capital Trade and other receivables 1,344 2,151 Other current assets - (3) Trade and other payables 205 369 Cash flows from operations 1,406 2,337 Income tax paid (501) (757) Net cash flows generated from operating activities 905 1,580

Investing activities Purchase of property, plant and equipment (10) - Proceeds from disposal of property, plant and equipment - 1 Dividends received 1,105 1,119 Net cash flows generated from investing activities 1,095 1,120

Financing activity Dividends paid (2,000) (2,700) Net cash flows used in financing activity (2,000) (2,700)

Net increase in cash and cash equivalents - - Cash and cash equivalents at beginning of financial year - - Cash and cash equivalents at end of financial year - - The accompanying notes form an integral part of these financial statements. notes form accompanying The 120 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

1. Corporate information 2.3 Standards issued but not yet effective The Company has not adopted the following standards Ascendas Property Fund Trustee Pte. Ltd. (the and interpretations that have been issued but not “Company”) is a limited liability company, which is yet effective: domiciled and incorporated in Singapore. It is a wholly- owned subsidiary company of Ascendas Investment Pte Ltd which is incorporated in Singapore and its ultimate Effective for annual periods holding entity is Jurong Town Corporation, a body Description beginning on or after incorporated by statute in Singapore. The address of Revised FRS 27 Separate 1 January 2014 its registered office and the principal place of business Financial Statements of the Company is 61 Science Park Road, #04-01, The Galen, Singapore Science Park II, Singapore 117525. Amendments to FRS 32 1 January 2014 Offsetting Financial Assets The principal activities of the Company are those relating and Financial Liabilities to investment advisor, property fund management and to act as fund manager and trustee for Ascendas India The management expects that the adoption of the Trust (“a-iTrust”), a business trust listed on the Singapore standards above will have no material impact on the Exchange Securities Trading Limited. Prior to its listing, financial statements in the period of initial application. a-iTrust was originally constituted as a private trust and known as Ascendas India IT Parks Trust. 2.4 Revenue recognition Revenue is recognised to the extent that it is probable 2. Significant accounting policies that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless 2.1 Basis of preparation of when the payment is made. Revenue is measured at the fair value of the consideration received or receivable, The financial statements of the Company have been taking into account contractually defined terms of prepared in accordance with Singapore Financial payment and excluding taxes or duty. The following Reporting Standards (“FRS”). The financial statements specific recognition criteria must also be met before have been prepared on the historical cost basis except as revenue is recognised: disclosed in the accounting policies below. a) Fees from provision of fund management (fund The preparation of financial statements in conformity management fee, trustee fee, performance fee and with FRS requires management to exercise its acquisition fee from a-iTrust) and other consultancy judgement in the process of applying the Company’s services are recognised when the services have accounting policies. It also requires the use of certain been rendered. critical accounting estimates and assumptions. The areas involving a higher degree of judgement or complexity, or b) Dividend income is recognised when the Company’s areas where assumptions and estimates are significant right to receive payment is established. to the financial statements, are disclosed in Note 3. 2.5 Property, plant and equipment The financial statements are presented in Singapore a) Measurement Dollars and all values presented are rounded to the nearest thousand ($’000) as indicated. Property, plant and equipment are initially recognised at cost and subsequently carried at cost less 2.2 Changes in accounting policies accumulated depreciation and accumulated impairment losses (Note 2.6). The accounting policies adopted are consistent with those of the previous financial year except in the current The cost of an item of property, plant and financial year, the Company has adopted all the new and equipment includes its purchase price and any revised standards that are effective for annual periods cost that is directly attributable to bringing the asset beginning on or after 1 April 2013. The adoption of to the location and condition necessary for it to be these standards did not have any effect on the financial capable of operating in the manner intended by performance or position of the Company. management.

121 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

b) Depreciation Depreciation on property, plant and equipment is The difference between the carrying amount and calculated using the straight line method to allocate recoverable amount is recognised as an impairment loss their depreciable amounts over the estimated useful in profit or loss. lives as follows:

Useful lives An impairment loss for an asset is reversed if, and only

if, there has been a change in the estimates used to Renovations and improvements 5 years determine the assets’ recoverable amount since the last

Computers, furniture and equipment 3 to 5 years impairment loss was recognised. The carrying amount of an asset is increased to its revised recoverable amount, The residual values, depreciation method and provided that this revised recoverable amount does estimated useful lives of property, plant and not exceed the carrying amount that would have been equipment are reviewed, and adjusted as appropriate, determined (net of accumulated depreciation) had no at each balance sheet date. The effects of any impairment loss been recognised for the asset in prior revision are recognised in profit or loss when the years. A reversal of impairment loss for an asset is changes arise. recognised in profit or loss.

c) Subsequent expenditure 2.7 Financial assets Subsequent expenditure relating to property, plant a) Classification and equipment that has already been recognised The Company classifies its financial assets in is added to the carrying amount of the asset only the following categories: loans and receivables when it is probable that future economic benefits and available-for-sale. The classification depends associated with the item will flow to the Company on the nature of the asset and the purpose for and the cost of the item can be measured reliably. which the asset was acquired. Management All repair and maintenance expenses are recognised determines the classification of its financial in profit or loss when incurred. assets at initial recognition. d) Disposal i) Loans and receivables On disposal of an item of property, plant and Loans and receivables are non-derivative financial equipment, the difference between the net disposal assets with fixed or determinable payments proceeds and its carrying amount is recognised in that are not quoted in an active market. They are profit or loss. presented as current assets, except for those maturing more than 12 months after the balance 2.6 Impairment of non-financial assets sheet date which are presented as non-current assets. Loans and receivables are presented as Property, plant and equipment are reviewed for trade and other receivables and deposits on the impairment at balance sheet date or whenever there is balance sheet. any objective evidence or indication that these assets may be impaired. ii) Available-for-sale financial assets Available-for-sale financial assets include equity For the purpose of impairment testing of these assets, securities. Equity investment classified as the recoverable amount (i.e. the higher of the fair value available-for-sale are those which are neither less cost to sell and the value-in-use) is determined on an classified as held for trading nor designated at individual asset basis unless the asset does not generate fair value through profit or loss. cash flows that are largely independent of those from other assets. If this is the case, the recoverable amount b) Recognition and derecognition is determined for the CGU to which the asset belongs. Financial assets are recognised when, and only If the recoverable amount of the asset (or CGU) is when, the Company becomes a party to the estimated to be less than its carrying amount, the contractual provisions of the financial instrument. carrying amount of the asset (or CGU) is reduced to its recoverable amount.

122 Financial assets are derecognised when the i) Loans and receivables contractual rights to receive cash flows from the Significant financial difficulties of the debtor, assets have expired or have been transferred and the probability that the debtor will enter bankruptcy, Company has transferred substantially all risks and and default or significant delay in payments are rewards of ownership. objective evidence that these financial assets are impaired. On de-recognition of a financial asset in its entirety, the difference between the carrying amount and The carrying amount of these assets is reduced the sum of the consideration received and any through the use of an impairment allowance cumulative gain or loss that had been recognised in account which is calculated as the difference other comprehensive income is recognised in profit between the carrying amount and the present or loss. value of estimated future cash flows, discounted at the original effective interest rate. When c) Initial measurement the asset becomes uncollectible, the carrying amount of impaired financial asset is reduced Financial assets classified in Note 2.7(a)(i) and (ii) directly or if an amount was charged to the are initially recognised at fair value plus directly allowance account, the amounts charged to the attributable transaction costs. allowance account are written off against the d) Subsequent measurement carrying value of the financial asset. Subsequent recovery of amounts previously written off is Loans and receivables are subsequently carried at recognised against the same line item in amortised cost using the effective interest method, profit or loss. less impairment. Gains and losses are recognised The allowance for impairment loss in profit or loss when the loans and receivables account is reduced through profit or loss in a are derecognised or impaired, and through the subsequent period when the amount of the amortisation process. impairment loss decreases and the decrease can be related objectively to an event occurring after Available-for-sale financial assets are subsequently the impairment was recognised. The carrying carried at fair value, and charges therein, other amount of the asset previously impaired is than impairment losses and currency translation increased to the extent that the new carrying differences on available for sale debt securities, are amount does not exceed the amortised recognised in other comprehensive income and cost had no impairment been recognised presented in the fair value reserve in equity in prior periods.

Interest and dividend income on available-for-sale ii) Available-for-sale financial assets financial assets are recognised separately in profit or loss. A significant or prolonged decline in the fair value of the investment below its cost e) Regular way purchase or sale of a financial asset are considered as indicators of impairment. All regular way purchases and sales of financial ‘Significant’ is to be evaluated against the assets are recognised or derecognised on the trade original cost of the investment and ‘prolonged’ date i.e. the date that the Company commits to against the period in which the fair value has purchase or sell the asset. Regular way purchases or been below its original cost. sales are purchases or sales of financial assets that If an available-for-sale financial asset is require delivery of assets within the period generally impaired, an amount comprising the difference established by regulation or convention in the between its acquisition cost (net of any principal marketplace concerned. repayment and amortisation) and its current fair value, less any impairment loss previously f) Impairment recognised in profit or loss, is transferred from The Company assesses at each balance sheet date other comprehensive income and recognised in whether there is objective evidence that a financial profit or loss. Reversals of impairment losses in asset or a group of financial assets is impaired and respect of equity instruments are not recognised recognises an allowance for impairment when such in profit or loss; increase in their fair value after evidence exists. impairment are recognised directly in other comprehensive income.

123 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

In the case of available-for-sale financial assets The fair values of current financial assets and liabilities carried at cost, if there is objective evidence carried at amortised cost approximate their carrying that an impairment loss on the financial assets amounts due to their short-term nature. has been incurred, the amount of the loss is measured as the difference between the 2.10 Income taxes asset's carrying amount and the present value Current income tax liabilities and assets for the current of estimated future cash flows discounted at and prior periods are recognised at the amount expected the current market rate of return for a similar to be paid to or recovered from the tax authorities, using financial asset. Such impairment losses are not the tax rates and tax laws that have been enacted or reversed in subsequent periods. substantively enacted by the balance sheet date. 2.8 Financial liabilities Deferred tax is provided using the liability method on a) Initial recognition and measurement temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their Financial liabilities are recognised when, and carrying amounts for financial reporting purposes. only when, the Company becomes a party to the contractual provisions of the financial instrument. Deferred tax liabilities are recognised for all temporary The Company determines the classification of its differences, except: financial liabilities at initial recognition. Where the deferred tax liability arises from the initial All financial liabilities are recognised initially at fair recognition of an asset or liability in a transaction that value plus directly attributable transaction costs. is not a business combination and, at the time of the transaction, affects neither the accounting profit nor b) Subsequent measurement taxable profit or loss. After initial recognition, other financial liabilities are Deferred tax assets are recognised for all deductible subsequently measured at amortised cost, using temporary differences, carry forward of unused tax the effective interest method. Gains and losses are credits and unused tax losses, to the extent that it is recognised in profit or loss when the liabilities are probable that taxable profit will be available against which derecognised, and through the amortisation process. the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can c) Derecognition be utilised except: A financial liability is derecognised when the Where the deferred tax asset relating to the obligation under the liability is discharged or deductible temporary difference arises from cancelled or expires. When an existing financial the initial recognition of an asset or liability in a liability is replaced by another from the same transaction that is not a business combination and, lender on substantially different terms, or the terms at the time of the transaction, affects neither the of an existing liability are substantially modified, accounting profit nor taxable profit or loss. such an exchange or modification is treated as a derecognition of the original liability and the The carrying amount of deferred tax assets is reviewed recognition of a new liability, and the difference in at the end of each reporting period and reduced to the the respective carrying amounts is recognised in extent that it is no longer probable that sufficient taxable profit or loss. profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets 2.9 Fair value estimation of financial assets are reassessed at the end of each reporting period and and liabilities are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset The fair values of financial instruments traded in active to be recovered. markets (such as exchange-traded and over-the-counter securities) are based on quoted market prices at the Deferred tax assets and liabilities are measured at the balance sheet date. The quoted market prices used for tax rates that are expected to apply in the year when financial assets held by the Company are the current bid the asset is realised or the liability is settled, based prices; the appropriate quoted market prices for financial on tax rates (and tax laws) that have been enacted or liabilities are the current asking prices. substantively enacted at the end of each reporting period.

124 Current and deferred taxes are recognised as income or 2.13 Currency translation expense in profit or loss, except to the extent that the a) Functional and presentation currency tax arises from a business combination or a transaction which is recognised directly in equity. Deferred tax on Items included in the financial statements are temporary differences arising from fair value gains and measured using the currency of the primary losses on available-for-sale financial assets are charged economic environment in which the Company or credited directly to equity in the same period the operates (“the functional currency”). The temporary differences arise. Company’s financial statements are presented in Singapore Dollars, which is also the Company’s Deferred tax assets and deferred tax liabilities are offset, functional currency. if a legally enforceable right exists to set off current income tax assets against current income tax liabilities b) Transactions and balances and the deferred taxes relate to the same taxable entity Transactions in a currency other than the functional and the same taxation authority. currency (“foreign currency”) are translated into the functional currency using the exchange rates at 2.11 Provisions for other liabilities and charges the dates of the transactions. Currency translation Provisions for other liabilities and charges are recognised differences from the settlement of such transactions when the Company has a present obligation (legal or and from the translation of monetary assets and constructive) as a result of past events, it is probable that liabilities denominated in foreign currencies at the an outflow of resources embodying economic benefits closing rates at the balance sheet date are will be required to settle the obligation and the amount recognised in profit or loss. can be reliably estimated. Non-monetary items that are measured in terms of Provisions are reviewed at the end of each reporting historical cost in a foreign currency are translated period and adjusted to reflect the current best estimate. using the exchange rates as at the dates of the initial If it is no longer probable that an outflow of economic transactions. Non-monetary items that are measured resources will be required to settle the obligation, the at fair values in foreign currencies are translated provision is reversed. If the effect of the time value of using the exchange rates at the date when the fair money is material, provisions are discounted using a values are measured. current pre tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, 2.14 Cash and cash equivalents the increase in the provision due to the passage of time For the purpose of presentation in the cash flow is recognised as a finance cost. statement, cash and cash equivalents comprise cash at bank with financial institutions which are subject to an 2.12 Employee compensation insignificant risk of change in value, but exclude balances a) Defined contribution plans which are subjected to restriction. The Company makes contributions to the Central 2.15 Share capital Provident Fund scheme in Singapore, a defined contribution pension scheme. Contributions Ordinary shares are classified as equity. Incremental to defined contribution pension schemes are costs directly attributable to the issuance of new ordinary recognised as an expense in the period in which shares are deducted against share capital. the related service is performed. 2.16 Dividends b) Employee leave entitlement Interim dividends are recorded in the financial year in Employee entitlements to annual leave are which the dividends are declared payable. Final dividends recognised as a liability when they accrue to are recorded in the financial year in which the dividends employees. The estimated liability for leave is are approved by the shareholders. recognised for services rendered by employees up to the balance sheet date. 2.17 Government grants Government grants are recognised when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with.

125 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

Government grants are recognised in profit or loss on a 3. Critical accounting estimates, systematic basis over the periods in which the Company assumptions and judgements recognises as expenses the related costs for which the grants are intended to compensate. Grants are presented Estimates, assumptions and judgements are continually in profit or loss under “other income”. evaluated and are based on historical experience and other factors, including expectations of future events that 2.18 Related parties are believed to be reasonable under the circumstances. A related party is defined as follows: Existing circumstances and assumptions about future developments, however, may change due to market a) A person or a close member of that person’s family is changes or circumstances arising beyond the control related to the Company if that person: of the Company. Such changes are reflected in the assumptions when they occur. i) has control or joint control over the Company; ii) has significant influence over the Company; or Critical judgements in applying the entity’s accounting policies iii) is a member of the key management personnel of the Company or of a parent of the Company. Impairment of available-for-sale financial assets

b) An entity is related to the Company if any of the The Company records impairment charges on available- following conditions apply: for-sale financial assets when there has been a significant i) the entity and the Company are members of or prolonged decline in the fair value below their cost. the same group (which means that each parent, The determination of what is “significant” or “prolonged” subsidiary and fellow subsidiary is related to requires judgement. The Company evaluates, among the others); other factors, the duration and extent to which the fair value of a financial asset is below its cost, the financial ii) one entity is an associate or joint venture of the health of and near-term business outlook for the other entity (or an associate or joint venture of a investee, including factors such as industry and sector member of a group of which the other entity is performance, changes in technology and operational and a member); financing cash flow. Management is of the view that the iii) both entities are joint ventures of the same factors considered for purpose of determining impairment third party; of available-for-sale financial assets are appropriate and meet the requirements of FRS 39. iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity; 4. Revenue v) the entity is a post-employment benefit plan for the benefit of employees of either the Company 2014 2013 or an entity related to the Company. If the $'000 $'000 Company is itself such a plan, the sponsoring employers are also related to the Company; Fund management fee from a-iTrust 3,830 3,944 vi) the entity is controlled or jointly controlled by Trustee fee from a-iTrust 153 157 person identified in (a); Performance fee from a-iTrust 2,709 2,714 vii) a person is identified in (a)(i) has significant 6,692 6,815 influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

2.19 Transfers between levels of the fair value hierarchy Transfers between levels of the fair value hierarchy are deemed to have occurred on the date of the event or change in circumstances that caused the transfers.

126 5. Other income 8. Income taxes

Other income comprise the following: a) Income tax expense

2014 2013 2014 2013 $'000 $'000 $'000 $'000

Tax expense attributable to Dividend income from a-iTrust 1,105 1,119 profit is made up of: Government grant 15 5 1,120 1,124 Current income tax Based on current year’s results 554 576 Under provision in respect of prior years 7 60 6. Employee compensation Deferred income tax Current year (3) 3

2014 2013 Income tax expense $'000 $'000 recognised in profit or loss 558 639

Salaries, wages and employee benefits 2,350 2,450 Employer’s contributions A reconciliation between tax expense and the to defined contribution product of accounting profit multiplied by the plans including Central applicable corporate tax rate for the years ended 31 Provident Fund 117 206 March 2014 and 2013 is as follows: 2,467 2,656 2014 2013 $'000 $'000

7. Other operating expenses Profit before income tax 4,222 4,260 Income tax using the Other operating expenses comprise the following: statutory tax rate of 17% (2013: 17%) 717 724 2014 2013 Effect of partial tax exemption (26) (26) $'000 $'000 Tax effect of non-deductible expenses 87 103 Professional fees 23 103 Income not subject to tax (190) (191) Travel-related expenses 154 180 Effect of tax incentives (38) (31) Communication expenses 28 50 Under provision in respect of Insurance expenses 61 67 prior years 7 60 Directors’ fees 614 401 Others 1 # Rental expenses paid to Income tax expense a related company 81 95 recognised in profit or loss 558 639 Others 154 119 # Less than $1,000 1,115 1,015 b) Movements in current income tax liabilities

2014 2013 $'000 $'000

Beginning of financial year 672 793 Tax expense 554 576 Under provision in respect to prior years 7 60 Income tax paid (501) (757)

End of financial year 732 672

127 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

c) Deferred income tax assets and liabilities 10. Available-for-sale financial assets 2014 2013 $'000 $'000 2014 2013

Deferred income tax asset $'000 $'000

Provisions (13) (10) Beginning of financial year 18,844 15,587 (13) (10) Additions 3,281 3,381 Fair value losses recognised Movements in the deferred income tax account are in equity (Note 14) (1,083) (124) as follows: End of financial year 21,042 18,844 Non-current portion 21,042 18,844 2014 2013 $'000 $'000 Available-for-sale financial assets are analysed as follows: Beginning of financial year (10) (13) Provisions (3) 3 2014 2013 End of financial year (13) (10) $'000 $'000

Quoted equity securities - Singapore 21,042 18,844 9. Property, plant and equipment

Computers, Renovations furniture 11. Trade and other receivables and and improvements equipment Total 2014 2013 2014 $’000 $’000 $’000 $'000 $'000

Cost Trade receivables Beginning of financial year 10 52 62 a-iTrust 3,751 3,812 Additions - 10 10 End of financial year 10 62 72 Other receivables Intermediate holding company 2,500 3,834 Accumulated depreciation Other related companies 83 48 Beginning of financial year 10 41 51 Depreciation charge - 8 8 Non-related parties 8 5 End of financial year 10 49 59 2,591 3,887 6,342 7,699 Net book value End of financial year - 13 13 Trade receivables are non-interest bearing and are to 2013 be settled in the form of cash and/or units from a-iTrust Cost as the Company elects. As at 31 March 2014, trade Beginning of financial year 10 54 64 receivables arising from a-iTrust amounting to $1,850,000 Disposal - (2) (2) (2013: $1,863,000) are arranged to be settled via the End of financial year 10 52 62 issuance of units by a-iTrust. Accumulated depreciation Beginning of financial year 10 34 44 Other receivables from intermediate holding company Depreciation charge # 8 8 and other related companies are unsecured, interest-free Disposal - (1) (1) and repayable on demand in cash. End of financial year 10 41 51

Net book value End of financial year - 11 11

# Less than $1,000

128 12. Trade and other payables 15. Dividends

2014 2013 2014 2013 $'000 $'000 $'000 $'000

Other payables Declared and paid during the financial year Other related companies 34 45 Dividends on ordinary shares: Non-related parties 11 76 45 121 Final tax exempt (one-tier) dividend for FY2014 paid of Accrued operating expenses 1,856 1,575 $2.00 (2013: $2.70) per share 2,000 2,700 1,901 1,696 Proposed but not recognised as a liability as at 31 March Other payables to other related companies are Dividends on ordinary shares, unsecured, interest-free and repayable on demand subject to shareholders’ approval in cash. at the AGM: Final tax exempt (one-tier) Other payables to non-related parties represent mainly dividend proposed in respect of sundry payables and goods and services tax payable. the financial year of $2.50 (2013: $2.00) per share 2,500 2,000 Included in accrued operating expenses is an amount of $401,000 (2013: $400,000) that relates to directors’ fees for the current financial year. 16. Related party transactions

13. Share capital In addition to the related party information disclosed elsewhere in the financial statements, the following The Company’s share capital comprises fully-paid up significant transactions took place between the Company 1,000,000 (2013: 1,000,000) ordinary shares with no and related parties at terms agreed between the parties par value, amounting to a total of $1,000,000 during the financial year: (2013: $1,000,000). 2014 2013 The holder of ordinary shares is entitled to receive $'000 $'000 dividends as and when declared by the Company. All ordinary shares carry one vote per share Directors fees paid to: without restrictions. Immediate holding company 72 49 Directors 537 352 609 401

14. Fair value reserve Key management personnel compensation 2014 2013 (excluding directors’ fees) $'000 $'000 Salaries and other short term Beginning of financial year (133) (9) employee benefits 1,114 986 Fair value losses on available- Contribution to CPF 28 30 for-sale financial assets (Note 10) (1,083) (124) 1,142 1,016 End of financial year (1,216) (133)

Fair value reserve represents the cumulative fair value changes of available-for-sale financial assets until they are disposed of or impaired.

129 œÌiÃ̜Ì iw˜>˜Vˆ>ÃÌ>Ìi“i˜ÌÃ

For the financial year ended 31 March 2014

17. Financial risk management iii) Interest rate risk objectives and policies The Company is not exposed to any interest rate risk as its financial assets and liabilities are not The Company’s activities expose it to market risk interest-bearing. (including foreign currency risk, price risk and interest rate risk), credit risk, liquidity risk and capital risk. The b) Credit risk Company’s overall risk management strategy seeks Credit risk is the potential financial loss resulting from to minimise adverse effects from the unpredictability the failure of a customer or a counterparty to settle its of financial markets on the Company’s financial financial and contractual obligations to the Company, performance. The Company sets policies, strategies and as and when they fall due. In managing credit risk mechanism, which aim at effective management of these exposure, credit review and approval processes as risks within its operating environment. well as monitoring mechanism are applied.

Risk management is carried out in accordance with For trade receivables, the Company adopts the established policies and guidelines approved by the board policy of dealing only with customers of appropriate of directors. Management continually monitors the credit history, and obtaining sufficient security Company’s risk management process to ensure that an where appropriate to mitigate credit risk. For other appropriate balance between risk and control is achieved. receivables, the Company deals only with high credit Risk management objectives and policies are reviewed quality counterparties. regularly to reflect changes in market conditions and the Company’s activities. The maximum exposure to credit risk is represented by the carrying amount of that class of financial a) Market risk instruments presented on the balance sheet. i) Foreign currency risk i) Financial assets that are neither past due The Company’s exposure to currency risk is nor impaired minimal as its revenue, expenses, assets and liabilities are substantially denominated in SGD. Trade receivables that are neither past due nor impaired are receivables from a-iTrust which ii) Price risk represent the Company’s maximum exposure to As at 31 March 2014, the Company has available- credit risk. a-iTrust has a relatively healthy financial for-sale investment in equity securities listed in position and management does not expect Singapore and is exposed to price risk. a-iTrust to fail to meet its obligations. Sensitivity analysis for price risk ii) Financial assets that are past due and/or impaired If prices for the equity securities listed in There are no financial assets that are either past Singapore change by the percentages indicated due and/or impaired. below with all other variables including tax rates being held constant, the effects on profit after c) Liquidity risk tax and equity will be as follows: Excess cash in the Company will be transferred to 2014 2013 the intermediate holding company for efficient cash Profit Profit management. To meet payment obligations in a timely After Tax Equity After Tax Equity manner, the intermediate holding company makes $’000 $’000 $’000 $’000 fund transfers back to the Company as and when the Equity securities need arises. Listed in Singapore Increased by 22% The Company’s financial assets and liabilities based on (2013: 17%) - 4,629 - 3,203 contractual undiscounted cash flows, are due within 1 Decreased by 22% year from the balance sheet date. (2013: 17%) - (4,629) - (3,203)

130 d) Capital risk The following table presents the assets and liabilities measured at fair value at 31 March. The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern and to maintain an optimal capital Level 1 Level 2 Level 3 Total structure so as to maximise shareholder value. In $’000 $’000 $’000 $’000 Assets order to maintain or achieve an optimal capital

structure, the Company may adjust the amount of 2014 dividend payment, return capital to shareholder, Financial assets issue new shares, obtain new borrowings or sell Available-for-sale assets to reduce borrowings. financial assets Quoted equity Management monitors capital based on the debt securities 21,042 - - 21,042

equity ratio, which is calculated as total external 2013 borrowings divided by total equity. As at balance Financial assets sheet date, the Company does not have any Available-for-sale external borrowings. financial assets Quoted equity e) Fair value measurements securities 18,844 - - 18,844

The Company classifies its fair value measurement of assets and liabilities using a fair value hierarchy The Company has no derivative financial instruments as that is dependent on the valuation inputs used as at 31 March 2014. follows: The carrying value of current trade and other receivables i) Level 1 - Quoted prices (unadjusted) in active and payables approximate their fair values due to their markets for identical assets or liabilities that the short-term nature. Company can access at the measurement date; ii) Level 2 - Inputs other than quoted prices included within Level 1 that are observable for 18. Authorisation of financial the asset or liability, either directly or indirectly; statements and iii) Level 3 – Unobservable inputs for the asset These financial statements for the year ended 31 March or liability. 2014 were authorised for issue in accordance with a resolution of the directors on 24 April 2014. Fair value measurements that use inputs of different hierarchy levels are categorised in its entirely in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

There have been no transfers between Level 1 and Level 2 fair value measurements during the financial years ended 2014 and 2013.

131 Unitholding statement

As at 19 May 2014

Analysis of unitholdings Number of Units Issued: 917,782,301 Market Capitalisation : S$706,692,372 Voting Rights: One vote per Unit

Distribution of unitholdings

Size of Unitholdings No. of Unitholders % No. of Units %

1 - 999 10 0.10 845 0.00

1,000 - 10,000 8,157 78.46 23,704,607 2.58

10,001 - 1,000,000 2,208 21.24 111,590,158 12.16

1,000,001 AND ABOVE 21 0.20 782,486,691 85.26

Total 10,396 100.00 917,782,301 100.00

Twenty largest unitholders

No. Name No. of Units %

1 Ascendas Land International Pte Ltd 183,279,388 19.97 2 DBS Nominees (Private) Limited 176,159,917 19.19 3 Citibank Nominees Singapore Pte Ltd 116,425,682 12.69 4 DBSN Services Pte. Ltd. 90,191,823 9.83 5 Raffles Nominees (Pte) Limited 65,985,795 7.19 6 DBS Vickers Securities (Singapore) Pte Ltd 41,602,000 4.53 7 HSBC (Singapore) Nominees Pte Ltd 32,035,908 3.49 8 Ascendas Property Fund Trustee Pte. Ltd. 27,971,939 3.05 9 DB Nominees (Singapore) Pte Ltd 13,447,580 1.47 10 United Overseas Bank Nominees (Private) Limited 10,993,123 1.20 11 Chng Seng Chye @ Chng Hung Seng 5,020,000 0.55 12 Bank of Singapore Nominees Pte. Ltd. 4,501,000 0.49 13 BNP Paribas Securities Services Singapore Branch 2,966,166 0.32 14 OCBC Securities Private Limited 2,219,000 0.24 15 Yim Chee Chong 1,735,000 0.19 16 CIMB Securities (Singapore) Pte. Ltd. 1,598,000 0.17 17 OCBC Nominees Singapore Private Limited 1,517,370 0.17 18 Unitronic Components Pte Ltd 1,400,000 0.15 19 Gan Jai Chuan 1,280,000 0.14 20 Ng Soo Boon or Ng Soo Boon @ Low Siew Koon @ Lau Siew Koon 1,134,000 0.12

Total 781,463,691 85.15

132 Public unitholders Pursuant to Rule 1207(9)(e) of the SGX-ST Listing Manual, based on the information available to the Trustee-Manager as at 19 May 2014, approximately 59.96% of the total number of Units issued is held by the public. Therefore, Rule 723 of the SGX-ST Listing Manual has been complied with.

Substantial unitholders (as at 19 May 2014)

Name Direct Deemed Total %

Ascendas Land International Pte Ltd 183,279,388 - 183,279,388 19.97

Ascendas Pte Ltd - 211,251,327 211,251,327 23.02

Jurong Town Corporation - 211,251,327 211,251,327 23.02

Matthews International Capital Management, LLC - 90,034,000 90,034,000 9.81

Matthews International Funds - 76,481,000 76,481,000 8.33

Massachusetts Financial Services Company - 64,660,000 64,660,000 7.05

Notes: 1) Jurong Town Corporation and Ascendas Pte Ltd are deemed to be interested in the Units held by Ascendas Land International Pte Ltd and Ascendas Property Fund Trustee Pte Ltd. 2) Matthews International Capital Management, LLC (“MICM”) is a USA-registered investment advisor and Matthews International Funds (“MIF”) is a USA-registered investment trusts. MICM acts as an investment advisor to MIF and its other clients. MICM has discretionary authority over its clients’ Units. 3) Massachusetts Financial Services Company ("MFS") is deemed interested in the Units held by its multiple subsidiaries and its other clients for which it or one of its subsidiaries serves as investment manager. MFS has investment and/or voting discretion over its clients' Units.

133 Glossary

a-iTrust/Trust Ascendas India Trust INT FRS Interpretation to FRS AC Audit Committee IT Information Technology AGM Annual General Meeting ITES Information Technology Enabled Services AIDT Ascendas India Development Trust ITPB International Tech Park Bangalore AIITPT Ascendas India IT Parks Trust ITPC International Tech Park Chennai AITPCL Ascendas IT Park (Chennai) Limited ITPL Information Technology Park Ltd ALI/Sponsor Ascendas Land International Pte Ltd IT SEZ Information Technology Special Economic Zone APFT/Trustee-Manager/the Company Ascendas Property JIPL Jurong International Holdings Pte Ltd Fund Trustee Pte Ltd KPMG Messrs KPMG ASIPL/Property Manager Ascendas Services (India) Pvt Ltd Listing Manual The Listing Manual of SGX-ST aVance aVance Business Hub, Hyderabad m/mil million b/bn billion MAS Monetary Authority of Singapore BFSI Banking, Financial Services and Insurance MNC Multi National Corporation Board Board of Directors NC Nominating Committee BPO Business Process Outsourcing NPI Net Property Income BT Business Trust Pvt/Pte Ltd Private Limited CAGR Compound Annual Growth Rate REIT Real Estate Investment Trust CDP Central Depository (Pte) Limited ROFR Right of First Refusal CEO Chief Executive Officer SBA Super Built-up Area CGU Cash-Generating Units SEZ Special Economic Zone CIS Code on Collective Investment Schemes SFA Singapore Securities and Futures Act CP CyberPearl, Hyderabad SGD/S$ Singapore Dollar CPF Central Provident Fund SGX-ST Singapore Exchange Securities Trading Limited CPITPPL CyberPearl Information Technology Park SPV Special Purpose Vehicle Pvt Limited Sq ft Square foot/feet DFI Derivative Financial Instrument STPI Software Technology Parks of India DPU Distribution Per Unit The V The V, Hyderabad E&Y Ernst & Young TIDCO Tamil Nadu Industrial Development EBITDA Earnings Before Interest Expense, Tax, Corporation Limited Depreciation and Changes in Fair Value of Investment Properties Trust Deed Trust Deed constituting a-iTrust (as amended on 28 June 2007) FDI Foreign Direct Investment UK United Kingdom FII Foreign Institutional Investment USA United States of America FRS Singapore Financial Reporting Standards USD/US$ United States Dollar FY Financial Year Ended/Ending 31 March VAT Value Added Tax FY13/14 Financial Year Ended 31 March 2014 VCU Venture Capital Undertaking FY12/13 Financial Year Ended 31 March 2013 VITPPL VITP Pvt Ltd GDP Gross Domestic Product Group a-iTrust Group HRRC Human Resource & Remuneration Committee IC Investment Committee INR/ࡩIndian Rupee

134 Market research report

A India: Economic & Commercial Real G The V: Property Analysis Estate Overview 01 Introduction 01 Economic Overview 02 Location & Accessibility 02 Investment Climate 03 Tenant Mix 03 Overview of IT/ITES Industry 04 Specifications 04 Overview of Office Space Market 05 SWOT Analysis 05 Outlook

B Bangalore Commercial Market Overview H CyberPearl: Property Analysis 01 Overview 01 Introduction 02 Key Demand Drivers 02 Location & Accessibility 03 Commercial Real Estate 03 Tenant Mix 04 Connectivity 04 Specifications 05 Supply, Absorption and Vacancy Trends 05 SWOT Analysis

C ITPB: Property Analysis I aVance Business Hub: Property Analysis 01 Introduction 01 Introduction 02 Location & Accessibility 02 Location & Accessibility 03 Tenant Mix 03 Tenant Mix 04 Specifications 04 Specifications 05 Competition Analysis 05 SWOT Analysis 06 Absorption and Vacancy of the micro market 06 Outlook 07 SWOT Analysis 08 Outlook J Caveats & Limitations

D Chennai Commercial Market Overview 01 Overview 02 Key Demand Drivers 03 Commercial Real Estate 04 Connectivity 05 Supply, Absorption and Vacancy Trends

E ITPC: Property Analysis 01 Introduction 02 Location & Accessibility 03 Tenant Mix 04 Specifications 05 Competition Analysis 06 Absorption and Vacancy of the micro market 07 SWOT Analysis 08 Outlook

F Hyderabad Commercial Market Overview 01 Overview 02 Key Demand Drivers 03 Commercial Real Estate 04 Connectivity 05 Supply, Absorption and Vacancy Trends 06 Competition Analysis 07 Absorption and Vacancy of the micro market

135 India: Economic & commercial real estate overview 1 Economic Overview

India is the world's tenth largest economy at market grown by 10.5% during the same period. Manufacturing/ exchange rates and the third largest economy when Industrial sector is also witnessing a positive growth. adjusted for purchasing power parity1. The Indian As per advance estimates from the Central Statistical economy has been one of the fastest growing economies Organisation, India’s GDP growth for FY13/14 is expected e Implementation- 28 February 2014 2014 e Implementation- 28 February in the world and has consistently demonstrated a to be 4.9%. positive Gross Domestic Product (“GDP”) growth rate

averaging just below 8% over the last ten-years (FY03/04 There are several progressive indicators for the of India (RBI) 6 Central Statistics Reserve Bank to FY12/13)2. The below chart highlights India’s GDP and economy at large, including Foreign Direct Investment 5 the GDP growth rate since FY03/04. (“FDI”), large consumer market, urbanisation and important policy reforms in the last 12 months in the Gross Domestic Product (INR Trillion) country. With growing urbanisation, 31% of the Indian 60 5.0% population currently is city-dwelling and by 2039, the 9.6% 6.2% 9.5% 9.3% percentage is expected to touch 50%9. According to the 50 9.3% 8.6% 8.0% 6.7% World Investment Prospects Survey 2013-15 report by 7.1% 40 United Nations Conference on Trade and Development rd 30 (“UNCTAD”), India ranked 3 most popular among global Ministry of Commerce and Industry

FDI destinations after China and US. 4 20

10 In April 2013, the Government introduced certain revisions in the existing Special Economic Zones (“SEZ”) 0 Act, 2005 through the Annual Supplement 2013-14 to the Foreign Trade Policy (“FTP”) 2009-14 to boost FY03/04 FY04/05 FY05/06 FY06/07 FY10/11 FY11/12 FY07/08 FY08/09 FY09/10 FY12/13 the development of SEZs, which had started slowing GDP (INR Trillion) GDP growth rate (%) down due to the implementation of Minimum Alternate Tax (“MAT”) and Dividend Distribution Tax (“DDT”). GDP figures are at factor cost at FY04/05 prices Source: Planning Commission, Government of India The revisions provide reductions in minimum land area requirement with graded scaling, introduction of built-up However, the Indian economic growth touched a decadal area requirements for IT/ITES SEZs and introduction of an low of 4.99% in FY12/13, due to a combination of exit policy. international and domestic factors including slowdown in US and European economies, high inflation and local The Right to Fair Compensation and Transparency in structural and policy woes. The gap between Consumer Land Acquisition, Rehabilitation and Resettlement Bill, Price Index (“CPI”) and Wholesale Price Index (“WPI”) 2013, popularly known as the LARR Bill, was approved kept widening as the CPI inflation inched closer to double by the Parliament in September 2013. This is aimed at 3

digits (11.16% in November 2013 ) and WPI inflation was providing fair monetary compensation, rehabilitation – Ministry 8 Central StatisticsProgramm of Statistics Office and 2014 release on 5th March of India (RBI) – Press Reserve Bank 6.16% in December 20134 . The Rupee fell to an all-time and resettlement to both the land owners and people 7 low of 68.36 against USD in August 2013, compared to dependent on land, especially rural land, by replacing the

5 (CSO)-Ministry Central Statistics of StatisticsProgramme Implementation Office and

54.83 in January 2013. As per Reserve Bank of India archaic Land Acquisition Act of 1894. 3 (“RBI”), the country's Current Account Deficit (“CAD”) was at an all-time high of 4.8% of GDP during FY12/13 The Companies Act of 1956 was replaced by a new as exports declined by 1.76% and imports increased by Companies Bill in September 2013 and several sections 0.44% in USD terms. However inflation has moderated of the new act have already been implemented. Further, since November 2013 and came down to 25 month there have been relaxations in FDI limits in 13 key sectors low of 8.1%6 in February 2014. Currency volatility also including aviation, retail, insurance, telecom, etc. that will moderated and stabilized at current trading range of 60- open up new investment avenues in the country with 62 and 48-50 against the US Dollar and Singapore Dollar many firms vying to tap the Indian markets. Other archaic respectively in last six months. The growth in exports rules like the Income Tax Act of 1961 are proposed to and decline in imports led to the contraction in trade be replaced by the Direct Tax Code to suit the needs of changing times. RBI has issued two in-principle bank deficit which has resulted in reduction of Current Account of India. Planning Commission, Government Deficit (“CAD”) to USD 31.17 billion (2.3% of GDP) in licenses in the private sector, which will further boost 2 April-December 2013 from USD 69.8 billion (5.2% of the growth of the banking industry. All these positive GDP) during the same period last year. India’s GDP developments are expected to attract investments from has grown by 4.6%8 in first three quarters of FY13/14. domestic as well as international funds and boost the Ministry of Urban Development-December 2011 Ministry 2011 of Urban Development-December Service sector, a major contributor of India’s GDP has real estate and its supporting sectors. Bank,2012 World Office – Ministry of Statistics and Programme Implementation- 15 April 2014 April 2014 – Ministry15 of StatisticsProgramme Implementation-Office and 9 1 136 2 Investment Climate FDI Equity Inyows (USD billion) 90 35% The decade (2004-13) gone by would be considered 80 as a golden era for FDI in India. As per Department of 70 60 Industrial Policy and Promotion (“DIPP”), between years 50 2000-13, India attracted cumulative FDI inflow of USD 40 10 12% 326 billion (INR 15.57 trillion) and this represented 10% 30 8% a growth rate of 18.4% on a Compound Annual 20 5% 5% 3% 3% 2% Growth Rate (“CAGR”) basis. Almost 67% of FDI was 10 1% constituted of equity inflows while the rest was through 0

re-invested earnings capital. In FY13/14, FDI inflows U.K. Japan U.S.A. U.A.E. France stood at USD 24.3 billion (INR 1,409 billion) as compared Cyprus Germany Mauritius to FDI inflows of USD 22.4 billion (INR 1,219 billion) Singapore Netherlands during FY12/13. Cumulative FDI Equity Inyows (USD billion)

FDI Equity Inyows (USD billion) % of Total FDI Equity Cashyows 40 75% 75% Source: DIPP - March 2014 66% 71% 68% 35 67% 61% 62% According to data from DIPP, the top 10 sectors that 30 54% Central Statistics Office (CSO) Central Statistics Office 61% 61% received large FDI inflows include services, construction,

13 53% 55% 25 51% telecommunications, computer software & hardware, 20 drugs & pharmaceuticals, chemicals, automobiles, power, 15 metallurgical industries and hotels & tourism. These 10 sectors accounted for 67% total country’s cumulative 5 FDI equity inflows. Service sector comprising businesses of financial, banking, insurance, non-financial/banking, 0 outsourcing, R&D, courier and technology testing & analysis contributed almost 50%13 of the India’s total FY00/01 FY01/02 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 GDP in last 10 years accounted for the highest FDI with FDI Equity Inyows (USD billion) % of Total FDI Cashyows cumulative inflows of USD 39.46 billion (INR 1.86 trillion) *Figures are up to March 2014 from April 2000 to March 2014 accounting for 18% share Source: Department of Industrial Policy and Promotion (DIPP) Department of Industrial Policy and Promotion and Promotion Department of Industrial Policy of the total inflow. Construction development comprising 12 Post the liberalization impetus of the 1990s, India’s townships, housing and built up infrastructure accounted reserves swelled from a meagre USD 5.8 billion (March for cumulative equity FDI inflows to the tune of USD 23.31 199111) to a comfortable USD 292.24 billion (INR 18.16 billion (INR 1.09 trillion) from April 2000 to March 2014. trillion) (January 2014). However there is still considerable Telecommunications and computer hardware & software scope to expand FDI. sectors ranked 3rd and 4th with the total cumulative FDI equity inflow of USD 14.16 billion (INR 667 billion) and Reserve Bank of India Reserve Bank

11 According to DIPP, the highest FDI inflow in India USD 12.82 billion (INR 597 billion) respectively in the includes investors from Mauritius, Singapore, United aforementioned period. Drugs and pharmaceuticals sector Kingdom, Japan, United States of America, Netherlands, attracted FDI inflow of USD 11.6 billion (INR 561 billion) Cyprus, Germany, France and United Arab Emirates. while Automobile sector attracted an FDI inflow of 9.81 These top 10 countries almost account for 85% total billion (INR 482 billion). Chemical (other than fertilizer), country’s cumulative FDI equity inflows of USD 217.7 power, metallurgical industries and hotel & tourism billion (INR 10.44 trillion)12. Mauritius, Singapore and U.K. attracted an FDI inflow of USD 9.67 billion (INR 452 billion), were the top investing countries in India accounting for USD 8.9 billion (INR 427 billion), USD 8.01 billion (INR 383 35%, 12%, and 10%, respectively in the cumulative total billion) and USD 7.12 billion (INR 362 billion) respectively FDI inflows since April 2000-March 2014. from April 2000 to March 2014. Department of Industrial Policy and Promotion (“DIPP”)-November 2013 2013 (“DIPP”)-November and Promotion Department of Industrial Policy 10 137 India: Economic & commercial real estate overview

FDI Equity Inyows (USD billion) FDI in Construction Development 18% 45 According to data from DIPP, construction sector 40 attracted large part of FDI inflows since April 2000 with 35 total cumulative FDI equity cashflows of USD 23.31 30 10% 25 billion (INR 1.09 trillion). FY13/14 witnessed lowest level 20 of FDI equity inflows of USD 1.23 billion (INR 75.08 6% 6% 5% 15 billion) in last 5 years due to the issues faced by realty 5% 4% 4% 4% 10 4% sector locally like increase in interest rates, currency 5 depreciation, increase in inventory levels etc. However 0 FDI inflows are expected to improve in next few years as the economic conditions improving worldwide. Power Service Pharma Telecom Chemical Computer Automobile Metallurgical Construction Total FDI Equity-Construction Hotel & Tourism FDI Equity Inyows (USD billion) (USD billion)

Cumulative FDI Equity Inyows (USD billion) 40.0 4.0 % of Total FDI Equity Inyows 35.0 3.5 Source: DIPP - March 2014 30.0 3.0

25.0 2.5 In terms of geographical regions of India, most of the FDI has flown in to the states of Maharashtra (Mumbai 20.0 2.0 & Pune) with total cumulative FDI equity inflow of USD 15.0 1.5 66.76 billion (INR 3,141 billion), Delhi-National Capital 10.0 1.0 Region with total cumulative FDI equity inflow of USD 42.54 billion (INR 2,068 billion), Tamil Nadu (Chennai) 5.0 0.5 with total cumulative FDI equity inflow of USD 13.20 0.0 0 billion (INR 654 billion), Karnataka (Bangalore) with total cumulative FDI equity inflow of USD 12.68 billion (INR 609 billion), and Gujarat (Ahmadabad) with total FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 cumulative FDI equity inflow of USD 9.51 billion Total FDI Equity Cashyows (USD billion)

(INR 444 billion). Total FDI Equity Cashyows in Construction (USD billion) Source: DIPP - March 2014

FDI Equity Inyows (USD billion) 70 30.1% 60 50 19.8% 40 30 6.3% 20 5.8% 4.2% 3.9% 10 1.3% 0.6% 0.5% 0.5% 0 Kochi Bhopal Kolkata Mumbai Chennai Bangalore New Delhi Hyderabad Chandigarh Ahemdabad

Cumulative FDI Equity Inyows (USD billion)

% of Total FDI Equity Inyows Source: DIPP - March 2014 138 Private Equity Investments in Real Estate Sector (“PERE”) With a slowdown in transaction activity across asset While total number of deals increased to 40 in 2013 from classes, rising debt levels, high cost of capital and 34 in 2012, average deal size declined marginally to USD increased volatility in the capital markets, raising funds 29.17 million (INR 1.75 billion). Investment activities were has become increasingly important for developers. In low in the first two quarters, but gained momentum such a scenario, developers have been focusing on in the third quarter, which witnessed investments partnering with PERE funds to not only gain access to amounting to USD 513 million (INR 30.8 billion). much needed capital, but also to improve operational However in the fourth quarter, investments declined by processes and corporate governance. 26% from third quarter amounting to USD 380 million

some specific business purpose/objective. (INR 22.8 billion) PERE investments have remained healthy in 2013 with large contributions from investments in pre- Continuing the trend from last year, funds preferred leased office assets. Investments in office assets investing in commercial office assets through Special have been concentrated in the cities of Bangalore Purpose Vehicles (“SPV”)15 as they offer greater levels and Pune. In Bangalore, investments in office assets of transparency and control of the asset. Investments were concentrated in the Outer Ring Road (“ORR”), in residential assets took place primarily in the form which over the past few years has grown due to the of mezzanine deals where funds have reduced the availability of quality supply at competitive rentals for IT/ downside risks by charging a fixed coupon rate. While ITES companies. In addition, the locations enjoying easy there is a strong investment sentiment for PERE connectivity to social infrastructure and proximity to transactions in India due to the existing sluggish emerging residential catchments. Close to 26% of the economic conditions, funds have become cautious and overall absorption in 2013 was concentrated in the ORR are looking at only investing in projects by developers belt. Large investment funds have also been invested in with strong fundamentals. With a slowdown in the real office assets in Pune, primarily in the micro-markets of estate sector, the number of exits has declined to 7 in Hinjewadi and Kharadi. With the presence of large IT/ITES 2013 compared to 12 in the same period last year. The parks offering competitive rentals and the availability of volatility in the rupee's exchange value has resulted in necessary infrastructure to support both residential and additional pressure on exits due to a 20-25% loss on office sector growth, Hinjewadi and Kharadi have always value of Indian Rupee to US dollar, as most of the exits had high preference by the IT/ITES industry. are for investments that were made between years 2007 and 2009, when the rupee was trading at a value of According to Cushman & Wakefield India (“CW”/“CWI”) around 40-45 against the US dollar. research, total investments by private equity funds in real estate for 2013 were approximately USD 1.17 billion14 (INR 69.93 billion), an increase of 13% compared to 2012; the increase was primarily due to high investments in the residential asset class. Special Purpose Vehicle is a separate legal entity created solely for the purpose of development of the specific project or for of the specific project or is a separate legal entitythe purpose of development created solely for Vehicle Special Purpose 15 Exchange Rate 1 USD= INR 60 Rate Exchange 14 139 India: Economic & commercial real estate overview

PERE Investments By City According to C&W research, NCR witnessed an increase in PERE activities in the calendar year 2013 with 13 deals increasing from 6 deals in 2012. Mumbai and Pune also witnessed growth with 10 and 8 deals respectively with an increase of 2 and 4 deals respectively from 2012. Further, Bangalore saw a drop in number of transactions during the same period. All four major cities witnessed a healthy trend with the number of deals growing steadily since 2009.

No. of Announced PERE Deals

16

14

12

10

8

6

4

2

0 2008 2009 2010 2011 2012 2013

Mumbai NCR Bangalore Pune Source: Cushman & Wakefield

PERE Investments By Asset Class Residential asset class attracted highest investments of USD 675 million16 (INR 40.5 billion) in calendar year 2013 with an increase of 42% from 2012 and commercial asset class witnessed investments of USD 413 million (INR 24.76 billion) representing a 23% decline from last year.

Deal Volume - INR billion

50

40

30

20

10

0 2008 2009 2010 2011 2012 2013

Mixed Use Residential Ofwce Hospitality Retail

Source: Cushman & Wakefield Exchange Rate: 1 USD= INR 60 Rate: Exchange 16 140 3 Overview of IT/ITES Industry

The IT/ITES industry in India has become a growth engine for the economy, contributing substantially to increases in the GDP, urban employment and exports. The Federal and the State Governments have played a major role in positioning India as the IT/ITES hub and a major outsourcing location in Asia. The Indian government had introduced several notable policies such as creation of Software Technology Parks of India (“STPI”) in the past, which boosted the IT/ITES development in the country. And on the fiscal front, with the promulgation of Special Economic Zones (“SEZ”), companies were provided incentives such as duty-free imports of software and hardware products and exemptions in the corporate income tax. This promoted investment in the country and gave a further boost to employment.

Availability of quality talent at cost effective rates, rapidly developing infrastructure, an enabling innovative environment, supportive regulatory policies and a positive overall business environment – are all central pillars to India’s value proposition.

India’s total IT industry’s (including hardware) has increased at a CAGR of approximately 25% from 2000-2013.18 India's IT-Business Process Outsourcing (“BPO”) industry revenue is expected to cross USD 225 billion mark by 2020, according to a Confederation of Indian Industry (“CII”) report, titled 'The SMAC Code-Embracing New Technologies for Future Business'. India's IT and BPO sector exports are expected to grow by 12-14% in FY13/14 to touch USD 84 billion-USD 87 billion and domestic revenues are expected to grow by 13-15% for the same period, according to IT-BPO industry outlook in FY13/14 by Nasscom.

The following table highlights the industry’s performance over the last decade.

FY FY FY FY FY FY FY FY FY FY Particulars Unit 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13(E)

India IT-BPM19 USD billion 21.6 28.1 37.4 47.9 72.9 69.4 73.9 88.2 101 108 Revenue

Growth in IT-BPM % 34% 30% 33% 28% 52% -5% 6% 19% 15% 7% Revenue

Exports Revenue USD billion 13.4 18.2 24.2 31.7 40.9 47.5 50.1 59.4 69.1 76

Growth in exports % 37% 36% 33% 31% 29% 16% 5% 19% 16% 10%

Exports % of total % 62% 65% 65% 66% 56% 68% 68% 67% 68% 70%

Business Process Management (BPM) Business Process Domestic Revenue USD billion 8.2 9.9 13.2 16.2 32 21.9 23.8 28.8 31.7 32 19

Increase in % 30% 21% 33% 23% 98% -32% 9% 21% 10% 1% Domestic Revenue

Employment No. (In 000's) 830 1058 1293 1,621 2,010 2,196 2,300 2,540 2,776 2,964

Increase % 24% 27% 22% 25% 24% 9% 5% 10% 9% 7% India Brand Equity Foundation India Brand Equity Foundation

18 Source: NASSCOM 141 India: Economic & commercial real estate overview

As can be seen from the table, the IT/ITES industry has Moreover, India plans to spend around USD 3.9 billion grown nearly fivefold in last ten years showcasing the on cloud services during 2013-2017, of which USD 1.7 India’s continued and sustainable development in the billion will be spent on software-as-a-service (“SaaS”), sector. India’s IT exports have witnessed tremendous according the latest outlook of IT research and advisory growth in last ten years with CAGR of 21%, while company, Gartner Inc. domestic revenues increased by CAGR of 16% during the same period. As a proportion of India’s GDP, IT/ITES The industry is expanding its scope of services to sector revenues have grown from 1.2% in FY97/98 to include complex outsourcing process functions such 7.5% in FY11/12. as knowledge, legal, games and design process outsourcing, among others. According to AT Kearney, Revenue in billions % Growth India remains the most preferred destination for 120 60 companies to offshore their IT and back-office operations 100 50 on account of the cost advantage and availability of Gross absorption is the total space occupied and includes new 40 23 80 skilled people. 30 60 20 40 10 20 0 4 Overview of Office Space Market 0 -10 Demand for commercial office space in India was stable 22

FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 during 2013. Gross absorption across major 8 cities for

FY12/13(E) 2013 was 36.10 million sq ft, a drop of 0.5% compared India IT-BPM Revenue Exports Revenue to the 36.26 million sq ft absorption in 2012. This was Growth in IT-BPM Revenue Growth in exports largely due to lower fresh and expansion demand from Source: Nasscom companies in the current economic conditions. While cities like Mumbai, NCR, Kolkata and Ahmedabad According to Nasscom, India’s share of the global 23

witnessed lower level of gross absorption , Bangalore, purchases. es, sub leasing and investment sourcing market has also increased from 51% in 2009 Chennai, Hyderabad and Pune witnessed an increase in to 58% in 2011. The total direct employment from the gross absorption. Key suburban markets like Gurgaon in industry reached nearly 3 million as of March 201320. NCR, Malad and Goregaon in Mumbai have witnessed It is estimated that for every 1 direct employment, large take up by occupiers, reflecting their long term the industry generates indirect employment of 3.6- growth strategy. Nearly 25-30% of the absorption 4.0 person translating to about 9-10 million indirect

comprise relocations and/or consolidations, as many NCR and Pune Ahmedabad, Bangalore,Chennai,Hyderabad,Kolkata,Mumbai,

employment. In year 2014-2015 software and services 22 occupiers are increasingly leveraging on current market export revenues and domestic revenues are expected conditions to relocate to better quality, more efficient to grow by 16-18% and 15-17% respectively. and cheaper office spaces in the suburbs and peripheral micro markets across cities. The industry’s vertical mix is well balanced across several mature (like BFSI21) and emerging sectors (like Gross Absorption 2013 — 36.1 million sq ft retail, hospitality). While BFSI as a vertical and US as a geography accounted for the largest revenue growth, Pune Ahmedabad emerging verticals and new geographies growth rate 13% 2% was 1.3-1.5 times that of core markets, reiterating the industry’s focus on diversification in the coming decade. NCR Bangalore

15% 23% Financial Services Banking, and Insurance 21 Even though India has a 50-55% market share of the global sourcing market, there is tremendous headroom Mumbai for growth as current offshoring market is still a small 16% Chennai part of the outsourcing industry. Significant opportunities 15% exist in core vertical and geographic segments of BFSI Kolkata Hyderabad and US, and emerging geographies and vertical markets 3% 13% such as Asia Pacific, retail, healthcare and government Source: Cushman & Wakefield respectively. Development of these new opportunities can triple the current addressable market, and can increase Indian IT/ITES revenues to USD 225 billion by 2020. The industry also has the potential to transform India by harnessing technology for inclusive growth. Nasscom-Outlook for IT-BPM industry in FY2014 industry in FY2014 IT-BPM Nasscom-Outlook for 20 leases, relocations, expansion and consolidation and purchase of space for self use; does not include renewals of existing leas of existing self use; does not include renewals of space for and consolidation purchase leases, relocations, expansion 142 Bangalore registered the highest gross office space New office supply 2013 — 33.26 million sq ft absorption at 8.44 million sq ft, followed by Mumbai Pune Ahmedabad with office space absorption of approximately 10% 6% 5.87 million sq ft in 2013. Office space absorption declined, mostly on account of companies focusing on relocation and consolidation in order to NCR Bangalore rationalize costs. 25% 17%

Pre-commitments during the year also declined compared to previous year by 12% to 6.1 million sq ft, Mumbai Chennai majority of them noted in Bangalore, Hyderabad and 14% 10% Mumbai. There was a corresponding decline in the total supply during the same period which reduced by 16.5% over the last year and was noted at Kolkata Hyderabad 33.26 million sq ft. NCR witnessed highest supply 6% 12% of 8.26 million sq ft followed by Bangalore Source: Cushman & Wakefield with 5.82 million sq ft.

Vacancy across the office market increased by 2.5 percentage points from 2012 and was 23.4% at the end of 2013. Developers have also adopted a cautious approach towards supply to achieve acceptable occupancy rates in their projects.

Area in million sq ft

12 28%

10 24% 23% 14% 8 18% 19% 16% 19% 6

4

2

0 Ahmedabad Bangalore Chennai Hyderabad Kolkata Mumbai NCR Pune

Gross Absorption-2012 Gross Absorption-2013 Supply-2012 Supply-2013 Vacancy Source: Cushman & Wakefield

It is expected that given current trends, the absorption of commerical office space would remain stable. The demand for new office space would be primarily driven by IT/ITES and banking and finance sectors.

5 Outlook

There is optimism in terms of economic outlook in FY14/15, as businesses are upbeat about the new government post the general election. Improved international trade deficit, softening inflation and stabilization of currency is likely to bring positive reinforcement to the economic outlook. However the high interest rates, weak monsoons and inflation are very realistic concerns for the economy.

2014 is expected to be stronger for real estate sector. The gradual revival of the economy and political stability post general elections would boost the confidence of corporate and investors in the economy; thereby leading to an increase in demand for office space by 2H 2014. The same might also lead to construction activity gaining pace in the mid-term.

143 Bangalore commercial market overview

Bangalore 1 Overview Hyderabad Highway International Bangalore is the capital of State of Airport Karnataka and is located in the south Upcoming east of the state. Greater Bangalore is Mumbai Peripheral spread over a total area of over 786 Highway Ring Road 25 Old sq km (conurbation area) with a Madras population of around 9.5 million Road (provisional 2011 census). Whitefield CBD EPIP The city, known as Silicon Valley of India, has emerged as a favourite IT/ Outer Ring ITES destination over the last 8-10 years. Road Home to companies like Microsoft, Yahoo, Wipro, Infosys, IBM, GE, Mysore Electronic Highway Google, Accenture, TCS etc, the city City has been the front runner in attracting technology companies. Hosur Highway

Apart from successfully attracting IT companies, Bangalore is considered to be a biotech destination as well. Bangalore houses some of the most prominent biotechnology research institutions of India like Indian Institute of Science and National Centre for Biological Resources. The other industries in Bangalore are related to manufacturing of Aircraft, Earthmoving Equipment, Watches, Garments, Silk, Machine Tools amongst others.

The city has prominent educational institutions like Indian Institute of Management, Indian Institute of Science, National Law School and a number of engineering/medical colleges offering talent pool to the existing corporations.

2 Key Demand Drivers

Real estate development has evolved from the centre of the city, with the core Business District (MG Road) located at the centre of the city. The development pattern of the city is undergoing a significant shift with development shifting from the central areas to the peripheral areas, mainly along the south-eastern corridor owing to the IT/ITES companies and the northern corridor due to the international airport at Devanahalli. These corridors have witnessed large scale commercial as well as residential developments.

Eastern corridor comprising Whitefield, Outer Ring Road (Sarjapur – Marathahalli) and south eastern corridor comprising Hosur Road represents the largest clusters of IT/ITES companies in Bangalore. These peripheral areas have accounted for approximately 70% of the aggregate leasing in the city. The CBD and Off-CBD locations lose out to the suburban and peripheral locations because of the lack of large contiguous spaces. The subject property is located in the eastern corridor of the city.

The International Airport at Devanahalli has led to a spurt in development along the northern quadrant of Bangalore. Numerous residential and commercial projects are under development in this micro market.

The western and north western corridors of Bangalore city have been concentrated with industries. The major industrial presence is represented by Peenya Industrial Area along Bangalore-Tumkur Road (NH – 4). The south western corridor has been a trading and residential hub with industrial presence being mainly represented by the Bidadi Industrial Development Area along the Bangalore-Mysore State Highway.

The development of Ring Roads is expected to boost real estate developments in the city. The development of the Outer Ring Road has contributed to the connectivity of the peripheral areas of the city. Further, a Peripheral Ring Road (“PRR”) of about 110 km is proposed around Bangalore at a radial distance between 3 to 12 km from the existing Outer Ring Road and 14 to 22 km from the city centre. The south west corridor of the PRR of about 41 km is already www.bdabangalore.org

operational. The PRR will link major highways at Tumkur Road, Mysore Road, Old Madras Road, and the Hosur Road. 25

144 The proposed development of the Intermediate Ring Road and the Satellite Town Ring Road is expected to further improve the connectivity of the peripheral locations to the other parts of the city.

3 Commercial Real Estate

Bangalore micro-market classification and location for commercial sector is as below. There are primarily four commercial clusters in the city. Peripheral segment is the largest segment for the city and can be subclassified into –

Whitefield ORR (Sarjapur Road – K.R Puram) ORR (Hebbal) & North Bangalore Electronic City, Hosur Road and Mysore Road

Central Business District International Airport Mahatma Gandhi (M.G) Road

Bangalore Metro (Phase 1) Off - CBD

North-south Corridor 1. Cunningham Road

East-west Corridor 2. Millers Road

City Railway Station 3. Richmond Road Metro Stations 4. Residency Road

5. Lavelle Road

Suburban

6. Indiranagar

17 7. Old Airport Road

8. C.V Raman Nagar

13 9. Koramangala

10. Bannerghatta Road

12 11. Jayanagar 16 CBD 6 14 8 12. Rajajinagar 7 13. Malleswaram Peripheral

£{° **]7 ˆÌiwi`

9 15 15. Outer Ring Road (Sarjapur Road to Marathalli)

11 16. Outer Ring Road (Marathalli to KR Puram) 10 18 17. Outer Ring Road (KR Puram to Hebbal) 19 18. Hosur Road 19. Electronics City

145 Bangalore commercial market overview

The characteristics of each of these segment is presented in the table below:

Micro-market Locations included Nature

Central MG Road, Lavelle Road, Being the foremost commercial business district of Bangalore it Business Infantry Road, Vittal houses major banks, financial institutes, insurance companies, District Mallya Road, Palace Road, few corporate and IT/ITES companies. (“CBD”) and Residency Road, Millers Off Central Road, Richmond Road, As of 2013, the CBD and Off-CBD market has a total stock of Business Queens Road, Cunningham approximately 10.12 million sq ft. The vacancy rate during 2013 District (“Off- Road, Ulsoor Road, Kasturba was estimated at 11.2%. During 2013, the CBD/Off-CBD market CBD”) Road, Victoria Road, Brigade attracted rentals in the range of INR 75-90/sq ft/month. Road, Murphy Road

Suburban Koramangala including Located at a distance of 5-7 km from the CBD, these locations Business Adugodi (Hosur Road), house many medium sized IT/ITES companies. District Bannerghatta Road up (“SBD”) to Outer Ring Road, As of 2013, the stock of office space in suburban markets can be Indiranagar, Hosur Road (till estimated as 27.78 million sq ft. Vacancy in the suburban markets Silk Board Junction) Airport as of 2013 was registered at 10.9%. During 2013, the Suburban road including Intermediate market attracted rentals in the range of INR 60-90/sq ft/month, Ring Road, CV Ramannagar, based on the type of property and the location. JP Nagar, Jayanagar and Old Madras Road

Peripheral Whitefield, Electronic City, Peripheral locations currently account for 60-70% of the city’s Business Outer Ring Road (Hebbal absorption due to availability of large contiguous spaces. District Flyover – Sarjapur Road), (“PBD”) Hosur Road (From Silk The stock in these markets is estimated to be around 79 million Board Junction – Electronic sq ft. Vacancy in these markets as of 2013 was approximately City), Hebbal and Bellary 15.0%. During 2013, the peripheral market attracted rentals Road (including Yelahanka in the range of INR 25-55/sq ft/month, based on the type of & Jakkur) property and the location.

Source: Cushman & Wakefield

146 4 Connectivity Bangalore being the IT/ITES hub of India has good connectivity to other cities of the country. It has good connectivity through all the three modes (rail, road and air) of inland transportation.

Infrastructure Description

Airport The Nadaprabhu Kempegowda International Airport (earlier known as Bangalore International Airport) located at Devanahalli started operations since May 2008. The airport currently has a capacity to handle 12 million passengers every year. The movement of the airport to North Bangalore has resulted in development of this section as the new growth corridor of the city.

On 14th December 2013, another terminal-Terminal IA spread over 150,500 sq m. became operational, which has increased the capacity of the airport to approximately 20 million passengers ever year. The renaming of the international airport took place on 14th December 2013, along with the opening of the new terminal.

Roads & Bangalore is connected to various locations in Karnataka and other states via state and national Highways highways respectively.

National Highways connecting Bangalore to: State Highways connecting Bangalore to: NH 4-Maharashtra SH 17-Mysore NH 7-Tamil Nadu in the south and Andhra Pradesh SH 82-Andhra Pradesh in the north SH 96-Kolar NH 48-Andhra Pradesh via Doddaballapur SH 87-Bannerghatta NH 207-Tamil Nadu via Anekal in the south and to Andhra Pradesh via Hoskote in the north NH 209-Coimbatore in Tamil Nadu via Kanakapura

Railways Bangalore is one of the well-connected cities in southern India via rail. It has both meter gauge and broad gauge rail services. In all, the city has four railway stations i.e. Bangalore City railway station, Bangalore Cantonment railway station, KR Puram railway station and Yeshwanthpur railway station.

Source: Cushman & Wakefield

147 Bangalore commercial market overview

5 Supply, Absorption and Vacancy Trends The total absorption of commercial office space in Bangalore from January to December 2013 has been In the last seven years Bangalore and Whitefield micro approximately 8.50 million sq ft (approximately 1% market had witnessed steady supply and absorption higher than the previous year) of office space. In particular in the last 4-5 years, as The supply of commercial office space from January compared to the major cities in India like Mumbai, to December 2013 declined by around 34% at NCR, Pune, Kolkata, Chennai and Hyderabad, Bangalore approximately 5.80 million sq ft vis-a-vis the commercial has witnessed the highest quantum of office space office supply in the year ending 2012 at approximately absorption. The below chart represents the supply, 8.81 million sq ft. absorption and vacancy trend for the city since 2009: The expected commercial office space supply in Area in million sq ft Bangalore in the next 2-3 years is expected to be 17% approximately 27 million sq ft. 14 15% 14% 14% 12 12% The rentals in various micro markets of the city have 10 remained stable vis-a-vis the rentals of commercial 8 office space in the year ending 2012. 6 4 The vacancy level for commercial office space in 2 Bangalore as on December 2013 was approximately 0 14% and that as on December 2012 was 14.3%. FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 The peripheral market of ORR will continue to remain Supply (in million sq ft) Absorption (in million sq ft) Vacancy (%) the preferred occupier destination considering the Source: Cushman & Wakefield concentration of pre commitments in this location during this year. Going forward, rental levels are A snapshot of the supply, absorption and vacancy trend anticipated to hold on to the same levels. for the city is as below (based on C&WI research): The details of some of the leases in Bangalore from January to December 2013 are as under: The total stock of non-captive commercial office space in Bangalore from as at December 2013 is approximately 116 million sq ft (including Grade A and B office space). Area leased Projects Micro Market Lessee (in sq ft)

Divyasree Technopolis Old Airport Road Thomson Reuters 440,379

Bearys Global Research Triangle Whitefield Schneider Electric India PVT LTD 400,000

Bagmane Constellation Business Park Outer Ring Road Samsung India 354,400

Manyata Embassy Business Park Outer Ring Road Cerner 343,024

Mantri Commercio Outer Ring Road JDA Software Group, Inc 289,000

Brigade World Trade Centre Malleshwaram Amazon 265,000

PS Mac Electronic City Infosys 150,000

First Face Technology Park Whitefield Microchip Technology Design 142,777

Pritek Park (Block 11) Outer Ring Road Genpact 120,000

Embassy Tech Square Outer Ring Road Inmobi 111,215

Prestige Shanthinikitan Whitefield Britannia Industries Limited 100,000

Source: Cushman & Wakefield

148 ITPB: Property analysis

1 Introduction

The property is located in Whitefield (East Bangalore) within the Export Promotion Industrial Park zone (approximately 650 acres). The micro-market houses over 400 companies, prominent amongst them are Oracle, SAP, TCS, Cap Gemini, IBM, GM, Nipuna, GE, HUL, iGate, Aviva, 24*7, HCL Perot Systems, Intel etc. Currently the accessibility in the micro-market is good with access to MG Road, the CBD and the new International Airport at Devanahalli. Further the connectivity is expected to improve in the future with the development of the Peripheral Ring Road.

Profile of International Tech Park Bangalore

Overview

Date of Discovere r : Nov 1998 Operation Innovator : Nov 1998 Creator : Nov 1998 Explorer : Jun 2002 Inventor : Nov 2004 Navigator : Jan 2007 Concourse : Nov 1998 Park Square Mall : Dec 2010 Voyager SEZ : June 2011 Aviator SEZ : January 2014

Configuration

Total Project Area (Land) 68.5 acres

Development Mix IT/ITES Office : 1,697,616 sq ft Retail Mall : 443,656 sq ft Space (Non SEZ) Concourse : 115,242 sq ft SEZ Space : 1,138,993 sq ft

Floor Plate Area (Approximate) Discover : 20,000 sq ft Navigator : 34,000 sq ft Innovator : 40,000 sq ft Concourse : 116,000 sq ft Creator : 60,000 sq ft Park Square Mall : 75,000 sq ft Explorer : 33,000 sq ft Voyager (SEZ) : 40,000 sq ft Inventor : 31,000 sq ft Aviator (SEZ) : 45,000 sq ft

Number of Floors Discoverer : G +13 floors Navigator : G + 11 floors Innovator : G + 11 floors Concourse : G Creator : G + 5 floors Park Square Mall : LG + 4 floors Explorer : G + 11 floors Voyager SEZ : G + 13 floors Inventor : G + 8 floors Aviator (SEZ) : G + 13 floors

149 ITPB: Property analysis

Location

Address Survey No. 80, 83, 85, 86, 110/1, 110/2, 111/2, 113/1, 113/2, 114/3a, 114/3b, 114/1, 115/1, 115/2, 115/3, 116, 117, 118, 119, Sadarmangala/Pattandur Agrahara, Krishnarajpura Hobli, Bangalore urban district.

Business District Peripheral Business District

Proximity to Airport 45 km (75-115 minutes)

Proximity to Railway Station 20 km (45-60 minutes) (Bangalore city station)

Proximity to nearest Prime Residential Less than 1 km (1-3 minutes) Development: Whitefield

Proximity to nearest Retail/Entertainment Within ITPB

Connecting arterial roads Whitefield main road

Surrounding Localities Whitefield main Road on the north, on the west is GR Tech Park, on the east is Nagarjuna Signet building while the south the property is abutted by a connecting road.

Access to ITPB is well connected by the local Bangalore bus network to important commercial and Public Transport residential locations in Bangalore.

Access to Hired Transport Close to the development are auto rickshaw stands and call cabs vendors.

Infrastructure

Power Supply Dedicated captive power plant of 20 MW operating in synchronous with 220 KV state grid.

Voice & Data The park is supported by eight service providers for voice and data for seamless communication Communication connectivity. The park has WiFi-enabled zones as well.

Security System Advanced security systems, including CCTV camera surveillance, boom/flap barriers and visitor management system.

Fire Protection System Includes smoke detectors, water sprinklers, portable fire extinguishers and fire hydrant hose reels and 24-hour security.

Building Management Centrally monitored and controlled at a common console. Common area lighting and air conditioning are System time controlled through the building management system.

Parking Basement car park and a Multi-Level Car Park

Health Club Includes a fully equipped gym, an aerobics studio and shower and changing facilities.

Business Centre Incubation centre for companies wishing to start an office immediately, comprising cabins, discussion and conference rooms. It has six cabins with total 9 workstations, two suites with 16 workstations and one discussion room and three multi-purpose halls.

Retail Mall ATMs, food court, coffee shops, telephone service providers, convenience store, travel agent, and (covers the basement health care centre/clinic and pharmacy. floors)

Source: Ascendas Property Fund Trustee Pte. Ltd.

150 2 Location & Accessibility

ITPB is located in Whitefield which is a PBD of Bangalore. Whitefield is located in the Eastern quadrant of Bangalore. It is approximately 20 km from the CBD and 45 km from the International Airport at Devanahalli.

Kempegowda International Airport

NH7

NH4

Hebbal

ITPB CBD 7 ˆÌiwi` Peripheral Ring Road - South Outer Ring Ring Section

Sarjapur

Electronics City

3 Tenant Mix

The property has a diverse client base of IT/ITES, Telecom, Engineering, Advanced Research industry occupiers. The major tenants in the development are TCS, WIPRO, GE Healthcare Ltd. etc.

151 ITPB: Property analysis

4 Specifications 5 Competition Analysis

ITPB was conceptualised as a ‘plug-and-play’ concept ITPB was the first Grade A office space development and is equipped with such features to provide a complete in Bangalore. ITPB provides extended warm shell space26 lifestyle environment with value-added amenities. Some in their non-SEZ office space while most developments of these features include: in the vicinity offer only warm shell space. Due to the extended warm shell specification as well as the other Dedicated captive power plant of 20.0 MW, Wi-Fi/ facilities ITPB offers, it commands higher rentals as broadband connectivity. compared to other development in the vicinity. Large floor plates for efficient space usage and layout, Whitefield’s commercial micro market comprises a central air-conditioning. mix of Build-To-Suit, campus and speculative State-of-the-art fire and security systems, developments. The success of ITPB led to development centrally controlled and monitored building of many commercial buildings/projects in the micro- management systems. market. The present stock of office space in Whitefield is approximately 27 million sq ft (including ITPB) and Lush landscaping with fountains enhancing aesthetic accounts for approximately 23% of the office stock in appeal of the property. the city. The micro-market has witnessed high infusion of In addition, round-the-clock in-house maintenance office space in the last couple of years leading to an over- teams and qualified project management teams are supply situation. In addition, the micro-market witnesses available to oversee all requirements such as general competition from developments on Outer Ring Road too. maintenance and fit-out requirements of the tenants. Dedicated retail area with food courts and five-star hotel.

Some of the prominent commercial developments in Whitefield include:

Completed Vacancy Quoted Rentals Year of Super Built up as at 2013 (INR per sq ft Building Name Developer Completion Area (sq ft) (sq ft) per month) Main Occupiers

Prestige Prestige 2013 3,510,000 62% 35 Sonus Networks, Alcon Shantiniketan Developers Laboratories

DivyaSree DivyaSree 2011 1,425,000 0% NA Accenture Technopark Developers

Salarpuria GR Salarpuria 2006 1,200,000 0% 28 HP, Sapient, TCS, Goldman Tech Park Group Sachs

Kalyani Platina Kalyani 2012 920,000 20% 35 Infineon Technologies, ACS Developers

Bearys Global Beary's Group 2012 900,000 47% 32 Schneider Electric India Research Private Limited, Bluefish Triangle (Ph-1) Pharmaceuticals Private Limited

Brigade Brigade 2010 835,000 14% 36 Cap Gemini, GE Health Care Metropolis Developers

RMZ NXT RMZ Corp. 2007 800,000 0% NA State Street Global Advisor, Schneider Electric, GDC Suez India includes A/C ducting, False Ceiling, Lighting and Fires Fighting systems in tenant areas. A/C ducting,Ceiling, Lighting and Fires Fighting systems False includes

Source: Cushman & Wakefield 26

152 The total supply of commercial office space in Whitefield 7 SWOT Analysis from January to December 2013 was 0.41 million sq ft accounting for 7% of the total supply of commercial Strength office space in Bangalore. Due to the existing availability Established brand with International quality Grade A of office space in the micro-market, developers have development been cautious and there is limited upcoming supply in the micro-market. The upcoming planned supply of Located within the IT corridor of the city with good commercial office space in Whitefield in the next 2-3 connectivity and enjoys good frontage on the years is approximately 7 million sq ft which would be road access approximately 25% of the total upcoming supply of Captive power plant and high tension 220 KV Bescom Bangalore in the next 2-3 years. backup power line makes it a state of art facility with no power cuts round the year. Some of the prominent upcoming projects (planned for 2014) in the subject micro market are: The integrated development (retail/SEZ/Non-SEZ/ hospitality) adds value to the property Project Area (in sq ft) Weakness Divyasree Techno Park (C4) 640,000 Traffic congestion during peak hours. Salarpuria Mind Comp 425,000 Opportunities Divyasree Techno Park (B4) 400,000 Preferred location for clients requiring higher warm Kalyani Platina (Magnolia) 400,000 shell specifications With development of retail, residential and hotel K Raheja Building (Commercial) 275,000 projects on Whitefield Road,the micro market is self- sufficient in nature and a preferred residential location Brigade IRV Centre 270,000 for both end users and investors alike.

Borukha Tech Park (Block B) 150,000 Threats Source: Cushman & Wakefield Upcoming supply in the micro-market.

6 Absorption and Vacancy of the micro market 8 Outlook

As per C&WI research, the total absorption of office Whitefield is a self sufficient suburb of the city. space in the year 2013 (January to December 2013) was Further, with the ongoing infrastructure initiatives approximately 1.70 million sq ft in the micro-market. like the metro rail line and the peripheral ring road, Whitefield currently accounts for approximately 20% of the connectivity of the micro-market is expected the total city’s absorption. The supply and absorption trend to improve over the next few years. Rentals are for the micro-market has been highlighted below: expected to remain stable over the next 3-4 years owing to current vacant stock and potential upcoming Area in Million sq ft supply which would be able to cater to the demand of 7.0 commercial office space in the subject micro market.

6.0 However, due to the facilities provided by ITPB and the extended warm shell option, the property is expected to 5.0 continue commanding a rental premium in the future. 4.0

3.0

2.0

1.0

0.0 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 Supply on million sq ft Absorption in million sq ft

Source: Cushman & Wakefield

153 Chennai commercial market overview

1 Overview

Chennai, the capital city of Tamil Nadu, is spread over a total area of 1,189 sq km27 (Metropolitan Area), with an estimated population of approximately 8.70 million28 in 2011 and a decadal growth of approximately 33%. The physical infrastructure of the city is fairly well developed with good road, rail, air and sea transport networks. Chennai’s airport provides both domestic and international connectivity. Chennai Airport is located off GST Road (NH 45) and 16 km from the city centre.

Chennai is the third largest commercial and industrial centre in India, and is known for its cultural heritage and temple architecture. The city, known as the ‘automobile manufacturing hub’ of India, is a preferred manufacturing destination with over 60% share of India's automobile exports29. According to the survey by Cyber Media and Tholons, Chennai is one of the 6 cities from India and one in top 8 cities in the world, featured in the emerging outsourcing destinations. Chennai serves as the manufacturing base of large multinationals like Ford Motors, Hyundai, Saint-Gobain, Nokia and Flextronics. It is also home to IT/ITES majors like Infosys, Wipro, Polaris, Accenture, I-Flex, TCS, Cognizant, etc.

Logistics and Warehousing Corridor

SME Corridor

Port Proposed Dry Port CBD

2TQRQUGF)TGGPƂGNF#KTRQTV Chennai International Airport

Manufacturing India Invest 29 Corridor

ECR IT Corridor Census India 2011 Census India 2011

Mixed 28 Corridor

OMR Chennai Metropolitan Development Authority(“CMDA”) Authority(“CMDA”) Chennai Metropolitan Development 27

154 2 Key Demand Drivers 3 Commercial Real Estate

Chennai has registered significant growth in terms of real Chennai has emerged as a favoured investment estate. Expanding city limits and growing population have destination for Manufacturing, IT/ITES and Logistics by been key drivers of the city’s growth. As a result of this, virtue of its strategic location and government subsidies, the real estate sector also registered expansion towards making it one of the most lucrative locations in the suburban and peripheral locations in order to meet country. A permutation of various factors has led to the rising housing demand. Chennai has a diversified the current activity levels in the city viz., government economic base anchored by the automobile, software initiatives to attract investments, significant improvement services and electronics hardware sectors. These are the in the quality of real estate developments and the predominant sectors driving the economic and real estate favourable business environment. Real estate with growth in the city. respect to commercial space post year 2000 has witnessed healthy demand and supply. Software and Software Services: Software development and business process outsourcing are sectors that have Commercial Corridors been imperative for the growth of real estate in Chennai. Major software and software services companies like There are primarily five commercial clusters in the city; Accenture, CTS, HCL, HP, IBM, Infosys, WIPRO, TCS, all clusters are a mix of commercial and retail and Microsoft etc. have development centres in the city. developments. Retail developments in the peripheral The city is now the second largest exporter of IT/ITES in areas of Old Mahabalipuram Road & GST Road are at the country behind Bangalore. IT/ITES sector has been a very nascent stage. the major driver of office space and residential space in Chennai, particularly along OMR and Pour micro markets.

Electronics Hardware: Chennai has emerged as 1 an electronic manufacturing hub with multinational 4 corporations like Dell, Nokia, Motorola, Cisco, Samsung, Siemens, Sony-Ericsson, Flextronics and Foxconn setting 2 5 up electronics/hardware manufacturing plants, particularly 4 in the Sriperumbudur Electronics SEZ. Ericsson and Alcatel have research and development facilities in the city while Texas Instruments' R&D facility is in the pipeline. The development of electronics hardware manufacturing 4 sector has in turn resulted in the development of Sriperumbudur and other such neighbouring hubs as an affordable residential destination sought after by both end- 3 users and investors.

6 Automobiles: As per information from Invest India, 6 Chennai accounts for 60% of India's automotive exports, which leads it to be called as 'The Detroit of Asia'. Chennai has a market share of around 30%30 of India's 1. Old City 4. Suburban automobile industry and 35%31 of its auto components 2. Off-CBD 5. CBD industry. A large number of the automotive companies including several global automotive companies such 3. IT Corridor 6. Peripheral as BMW, Hyundai, Ford, Nissan-Renault, Mitsubishi, Commercial corridors in Chennai TVS Group companies, Ashok Leyland, TI Cycles, TAFE, Dunlop, and MRF have manufacturing plants in and around Chennai. Daimler and Apollo Tyres have plants started production in their plants. The automobile sector has resulted in the creation of industrial clusters including as Oragadam, Sriperumbudur and several parts of GST Census India Tamil Nadu Industrial Guidance & Export Promotion Bureau Nadu Industrial Guidance & Export Promotion Tamil Census India

31 Road which in turn has increased support infrastructure especially in terms of housing. GIREM 30

155 Chennai commercial market overview

Cluster Locations Nature

Central Business Anna Salai, As of 2013, the CBD market has a total stock of approximately 14.74 million sq ft. The District (“CBD”) Nungambakkam vacancy rate during 2013 was estimated at 12.8%. CBD markets consists of limited and R.K. Salai. supply of Grade A buildings and command the highest rental in Chennai market due to limited availability. During 2013, the CBD market attracted rentals in the range of INR 70-80/sq ft/month.

Off-CBD T.Nagar, Alwarpet, These markets account for a stock of approximately 9.84 million sq ft. Off-CBD markets Kilpauk registered a vacancy of around 8.6% during 2013. Off-CBD markets command a rental range of INR 55-65/sq ft/month.

Suburban Markets Guindy, Taramani- These clusters are the emerging office markets with significant demand. With limited Perungudi (OMR) availability of space in CBD and off-CBD markets, suburban markets are registering and Ambattur buoyant demand from occupiers. Stock in suburban markets can be estimated as 37.27 clusters million sq ft during 2013. Vacancy in the suburban markets as of 2013 was registered at 17.3%. Suburban markets attract rentals ranging between INR 25 and 65/sq ft/month.

Peripheral Markets Locations after While GST has very limited stock of office buildings, OMR has ample stock of the Thoraipakkam in same. The stock in these markets is estimated to be around 11.94 million sq ft. Vacancy OMR and after in these markets as of 2013 is approximately 22.8%. Due to limited demand for Perungulathur in office space, these markets have relatively higher vacancy levels. Office rentals in the GST peripheral districts range between INR 25/sq ft/month and INR 40/sq ft/month.

Source: Cushman & Wakefield

4 Connectivity

Transport Mode Details

Rail Rail connectivity within Chennai is through the suburban railway network. It consists of three lines:

1. Beach to Tambaram (30km, 18 stations): This section is parallel to but completely separate from the long- distance tracks of Indian Railways.

2. Chennai Central to Pattabiram (25km, 15 stations): This section is again parallel to but completely separate from long-distance tracks. Services run for a further 34km (14 stations) on this line on tracks shared with long-distance tracks.

3. Chennai Central-Gummidipoondi (48km, 16 stations) - This line currently shares tracks with long-distance trains but there are plans to build exclusive tracks in the future.

In addition to the above rail network, the Chennai Metro Rail Project is underway. The DPR envisages the creation of 2 initial corridors under the proposed Chennai Metro Rail Project as shown below

Corridor-1: Washermenpet–Chennai Airport.

Corridor-2: Chennai Fort–St. Thomas Mount.

The trial run for metro rail would be conducted on the elevated corridor between Koyambedu and Alandur in February; six months after this run, the stretch is expected to become operational.

156 Transport Mode Details

Road Road network in Chennai City is dominated by a radial pattern converging at George Town, which forms the Central Business District of the entire Chennai Metropolitan Area. Road transport is the dominant mode of transportation in the city both for moving goods and passengers, thereby assuming a pivotal role in development of the city.

As per Second Master Plan, the Chennai Municipal Corporation is maintaining about 2,875 km of road, of which 130 kms are highway roads, 222 km are bus route roads and 2,475 km are the interior roads and by lanes with a per capita road length of 0.6 m. In addition, the administrative jurisdiction of the Chennai Municipal Corporation had about 130 km of National Highways. Further, the city had about 158 bridges, 40 culverts, 15 subways and 9 over bridges to add on to the city road infrastructure.

The Chennai Metropolitan Development Authority (“CMDA”) proposed to develop an Outer Ring Road alignment as an express way with Rapid Rail system from Vandalur to Minjur for a length of 60 kms with inter-change facilities at five major road crossing at an estimated cost of INR 4 billion. The project is being executed under BOT (“Build, Operate and Transfer”) concept over a period of 8 years with commercial exploitations along the transportation corridors. The width of the Outer Ring Road is approximately 122 meters comprising 36.36 meters width for necessary two-way transportation having six lanes and two service lanes.

Air Chennai’s airport provides both domestic and international connectivity and is located off GST Road, 16 km from the CBD. Chennai is currently serviced by 19 international and 9 domestic airlines.

Sea The city is served by two major ports namely Chennai Port (one of the largest artificial ports in India) and Ennore Port. The Chennai port is the largest in Bay of Bengal, with an annual cargo tonnage of 61.46 million (2010–2011), and second busiest container hub in India. The port handles transportation of automobiles, motorcycles and general industrial cargo. The Ennore Port with an annual cargo tonnage of 11.01 million (2010–2011) handles cargo such as coal, ore and other bulk and rock mineral products.

Source: Cushman & Wakefield

5 Supply, Absorption and Vacancy Trends

The average commercial office space absorption in A snapshot of the supply, absorption and vacancy trend Chennai has been approximately 4.2 million sq ft per for the city is as below (as per C&W research): year during the last five years. Due to the high vacancy The average absorption of commercial space for last witnessed during 2009-2011 there was decline in supply six years is approximately 4.2 million sq ft per year. The of commercial office space in 2011- 2013 in comparison absorption in 2013 was approximately 5.49 million sq ft. to 2009-2010. In terms of absorption, office market in 2013 exceeded Area in Million sq ft the absorption levels in 2012 by almost 44%. 10 24% Office space supply during 2013 registered an increase 22.7% 8 of 35% over supply registered during 2012. Supply 17.2% during 2013 was registered at 3.39 million sq ft. 6 15.4% 16.1% Marginal year-on-year increase in vacancy levels was 4 noticed due to the increased supply during the year. 2 Vacancy grew by 0.7 percentage points in 2013 to at 16.1%. 0 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13

Supply on million sq ft Absorption in million sq ft Vacancy (%) Source: Cushman & Wakefield

157 Chennai commercial market overview

The major transactions during the year are as follows:

Building Name Location Leasee Area Leased (in sq ft)

SP Info City – Block II Perungudi, OMR Amazon 645,000

Prestige Cyber Towers OMR Capgemini 320,000

DLF IT Park Manapakkam L&T Infotech 189,000

Ramanujan IT SEZ Taramani, OMR TCS 100,000

Ramanujan IT SEZ Taramani, OMR Pershing 80,000

DLF IT Park Manapakkam Barclays 69,000

Espee IT Park Ekkaduthangal Calsoft 46,000

SP Info City Perungudi, OMR Siemens 42,900

Source: Cushman & Wakefield

The overall supply of office space across the next 2-3 years in Chennai is anticipated to be approximately 5.13 million sq ft. SEZ spaces in suburban locations are expected to witness heightened demand in the near future. Proposed projects in Chennai include:

Building Name Location Proposed Area (In million sq ft) Proposed Area (in sq ft)

DLF IT Park (2 Blocks) Mt.Poonamalle Road 0.80 800,000

Tata Realty SEZ-Phase II Old Mahabalipuram Road 1.33 1,326,264 (2 blocks)

The Gateway (2 blocks) GST Road 0.40 400,000

ETA Technopark (Block 2) OMR 0.20 200,000

ETA Mount Central Anna Salai-CBD 0.26 259,000

Purvankara Primus OMR 0.19 185,000

Espee IT Park Ekkaduthangal Calsoft 46,000

SP Info City Perungudi, OMR Siemens 42,900

Source: Cushman & Wakefield

158 ITPC: property analysis

1 Introduction

OMR also known as Rajiv Gandhi Salai is home to a number of IT/ITES developments. Since the development of TIDEL Park (one of the earliest developments set up through a joint venture between TIDCO and ELCOT ) in 2000, office market along the corridor has registered tremendous growth. As of 2013, OMR had a total office stock of approximately 27.58 million sq ft. The major players in the IT/ITES arena have their own campuses while the Small and Medium Scale Enterprises (“SME”) occupy the multi-tenanted structures. In addition to TIDEL Park, other initiatives by the government along this corridor include the ELCOT SEZ and SIPCOT IT Park.

Taramani is an established IT/ITES micro market located at the beginning of OMR. Prominent IT/ITES parks situated in this location include Tidel Park, Ramanujan IT SEZ, ITPC, Elnet Software City, and TICEL Biotech Park. Taramani borders the Indian Institute of Technology, Chennai on the west. It is home to several research labs and institutions, such as Central Leather Research Institute, Central Electronics Engineering Research Institute, National Environmental Engineering Research Institute, and Voluntary Health Services and the most renowned polytechnic of Tamil Nadu, Central Polytechnic. The National Institute of Fashion Technology is also located in Taramani. Further south along OMR, several small scale industries and factories are located within the Vikram Sarabhai Instronics Estate.

The World Bank opened one of its largest offices in the world in Taramani to house its growing financial and technical support services. The 120,000 sq ft facility is on a 3.5-acre plot near ITPC. The area is developing rapidly owing to the IT/ITES sector booming around the locality. It is also developing to be one of the more attractive residential localities in Chennai. The Taramani MRTS station and Thiruvanmiyur MRTS Station are located in close proximity to ITPC. It is also close to the newly developed residential locality of Velachery.

Profile of International Tech Park Chennai

Overview

Date of operation Phase 1 – August 2005, Phase 2 – December 2007 and Phase 3 – December 2010

Configuration

Total project area 15 acres

Development mix Commercial development with support retail and other amenities State Industries Promotion Corporation of Tamil Nadu Tamil Corporation of State Industries Promotion

34 Built up area 1,978,914 sq ft (Phase I, II & III)

Floor Plate Area (Approximate) 65,000 sq ft (Phase I), 70,000 sq ft (Phase II), 70,000 sq ft (Phase III)

Number of floors Phase I - Pinnacle (12 floors) Phase II - Crest (15 floors) Phase III – Zenith (14 floors)

Location

Electronics Corporation of Tamil Nadu Tamil Electronics Corporation of Address Taramani, CSIR Road (off Old Mahabalipuram Road), Chennai 33

Proximity to CBD Approximately 13 km from CBD

Proximity to Airport Approximately 15 km from Chennai International Airport

Proximity to Railway station Approximately 1-2 km from Taramani and Thiruvanmiyur MRTS Station Approximately 14-15 km from Chennai Central Railway Station

Number of approach roads 1 (from CSIR Road)

Surrounding areas Taramani Road on the north, American School on the south, World Bank and vacant land on the west and TICEL Biotech Park and vacant land on the east.

Tamil Nadu Industrial Development Corporation Nadu Industrial Development Tamil Availability of public transport Buses, MRTS and Auto rickshaws 32 159 ITPC: property analysis

Infrastructure

Power Supply Dual primary power through two sub-stations and 100% generator power backup.

Voice & Data Communication The park is supported by five service providers for voice and data for seamless communication connectivity. The park has WiFi-enabled zones as well.

Security System Advanced security systems, including CCTV camera surveillance, boom/flap barriers and visitor management system.

Fire Protection System Includes smoke detectors, water sprinklers, portable fire extinguishers and fire hydrant hose reels.

Building Management System Centrally monitored and controlled at a common console. Common area lighting and air conditioning are time-controlled through the building automation system.

Parking A total of 2,276 car parking lots and 5,304 two-wheeler parking lots.

Amenities

Fitness Centre Includes a fully equipped gymnasium, an aerobics studio and shower and changing facilities.

Business Centre Incubation centre for companies wishing to start an office immediately. Comprises cabins, discussion and conference rooms.

Retail ATMs, food court, coffee shops, telephone service providers, convenience store, travel agent, and pharmacy.

Source: Ascendas Property Fund Trustee Pte. Ltd.

2 Location & Accessibility

The property is located in Taramani, Chennai which in turn is located along Chennai’s IT Corridor. It is at a distance of approximately 13 kms from the Chennai CBD. Surrounding the property are primarily commercial developments like TIDEL Park, ELNET IT Park, SP Infocity and RMZ Millenia. ITPC is spread over an area of approximately 15 acres with total built-up area of approximately 2 million sq ft spread across three blocks (Pinnacle, Crest and Zenith). The property has been developed in phases over 5 years with Zenith being the latest (operational from 2010) development within the park.

The subject project is well connected to major locations in the city via road networks. The distances of the subject site from major locations are as follows:

Approximately 13-14 km from the Chennai CBD. Approximately 3-4 km from the Madhya Kailash junction. Approximately 14-15 km from the Chennai Central Railway Station. Approximately 15-16 km from the Chennai international airport.

160 Ascendas ITPC

Old Mahabalipuram Road (OMR)

3 Tenant Mix

The IT Park has a tenant mix of IT, BPO, ITES and other knowledge based industries. The development caters to companies in the IT/ITES space with space requirements in the range of 10,000-150,000 sq ft.

4 Specifications

ITPC was conceptualised as a ‘plug-and-play’ concept and is equipped with such features to provide a complete lifestyle environment with value-added amenities. Some of these features include:

Food courts, 100% power backup, Wi-Fi/broadband connectivity. Large floor plates for efficient space usage and layout, central air-conditioning. State-of-the-art fire and security systems centrally controlled and monitored building management systems, and a pharmacy. Lush landscaping with fountains adds an aesthetic appeal to the property. In addition, round-the-clock in-house maintenance teams and qualified project management teams are available to oversee all requirements such as general maintenance and fit-out requirements of the tenants

161 ITPC: property analysis

5 Competition Analysis

OMR is home to a number of IT developments. Since the development of TIDEL Park, office market along the corridor has registered tremendous growth. The major players in the IT arena have their own campuses while the SMEs occupy the multi-tenanted structures.

With the commissioning of the toll plaza at Perungudi in 2008, OMR was split into two stretches – Madhya Kailash to Perungudi and Thoraipakkam to Siruseri. While the suburban parts of OMR constituting Perungudi and Taramani account for 66% of the stock, the latter part of OMR extending from Thoraipakkam to Siruseri accounts for the remaining 34% of the total stock in the corridor.

Some of the prominent commercial developments in the micro market include:

Completed Quoted Rentals Building Year of Gross Leasable Vacancy as (INR per sq ft Name Developer Completion Area (sq ft) at 2013 (%) per month) Main Occupiers RMZ RMZ Corp 2005-2008 1,927,000 4% 40 Ford, Caterpillar, Shell, Millennia HP Phase II Tidel Park TIDCO & 2000 1,280,000 10% 44 TCS, Ajuba, iNautix ELCOT Chennai IG3 Infra 2006 1,200,000 0% 50 Tata Consultancy One SEZ Limited Services, HCL, Wipro, Siemens, Polaris SP Info City Shapoorji & 2009 910,000 27% 50 Amazon , Saksoft Pallonji Prince Info Prince 2005 780,000 51% 40 Tata Teleservices, City 2 Foundations 3i Infotech, Prodapt Solutions, Thinksoft Global Services AKDR Tech Individual 2009 204,000 21% 35 Ajuba, 3Edge Park Solutions, Finatel Technologies Ramanujan Rayala Grop 2006 125,000 21% 70 TCS, Pershing, HP IT SEZ

Source: Cushman & Wakefield

In terms of IT/ITES office space, OMR continues to remain a favoured destination, with most of the absorption expected before the toll plaza because of easier and more cost-effective commuting. There will be greater demand for Grade A office spaces along the corridor, since there is a severe dearth of high quality office buildings in the central areas. Details of the upcoming projects along OMR are as follows:

Project Name Developer Location Total Leasable Area (sq ft) ETA Technopark (Block 2 & ETA Star Navalur 500,000 Block 3) Chennai One Phase 2 IG3 Infra Thoraipakkam 2,400,000 SP Info city (Block C ) RR Group Perungudi 750,000

Source: Cushman & Wakefield

162 6 Absorption and Vacancy of the Area in Million sq ft

micro market 3.5 3.0 In 2013, OMR witnessed a total supply of around 3.01 2.5 million sq ft, accounting for 89% of the total supply 2.0 in Chennai. Leasing during the same time period was 1.5 registered at 3.35 million sq ft. OMR contributed around 1.0 61% to the overall absorption in the city. The overall 0.5 0 vacancy in OMR was registered at approximately 18.1% FY09/10 FY10/11 FY11/12 FY12/13 as against the overall city vacancy of 16.1%. Supply (in million sq ft) Absorption (in million sq ft) With the absorption taking place in the completed Source: Cushman & Wakefield buildings available in the micro market, the vacancy in the micro market has seen a minor dip from 18.6% in 2012 to 18.1% in 2013.

7 SWOT Analysis

Strength The project is located in the prime IT Corridor, which is a prominent and established IT/ ITES location.

The project is integrated with retail amenities and food court.

ITPC is located close to the MRTS.

Weakness Lack of vacant land for further expansion.

Opportunities It enjoys close proximity to residential catchment areas of Adayar, Perungudi, Thiruvanmiyur and Velachery. OMR is also witnessing high supply of residential apartments.

With the current tenant mix, the subject property attracts high profile tenants.

Threats Competition from upcoming IT/ITES supply in the micro-market and from other IT/ITES SEZ’s in the city

8 Outlook

In terms of IT/ITES office space, OMR continues to remain a favoured destination, with most of the absorption expected before the Perungudi toll plaza because of easier and more cost-effective commuting. There will be greater demand for Grade A office spaces along the corridor, since there is a severe dearth of high quality office buildings in the central areas. As a result of this demand, rentals in the micro market (suburban OMR) are expected to see upward pressure.

163 Hyderabad commercial market overview

1 Overview 2 Key Demand Drivers

Hyderabad, the capital city of the State of Andhra The city has over the last few years witnessed expansion Pradesh, is an established IT/ITES, Pharmaceutical and both in terms of its area and population. The growth in Biotech destination. With the demand for separate State Hyderabad city’s economic base (primarily establishment of Telangana for several years since independence, of IT/ITES industry) has altered the real estate dynamics on 30 July 2013, the Central Government announced in the city. There has been development of all segments the creation of Telangana state from the existing State of real estate (office space, residential, retail and of Andhra Pradesh. 2 June 2014 has been declared hospitality) in the city. The entry of leading national and as Telangana state formation day and from that date international developers to the city has accelerated real Telangana came into existence as the 29th state of India. estate development in the city. Hyderabad will be joint capital for both Telangana and erstwhile Andhra Pradesh for a period of 10 years. Primary growth drivers in the city are: IT/ITES services The city of Hyderabad is spread over five districts viz. Hyderabad, Ranga Reddy, Medak, Nalgonda and Pharmaceutical & bio-technology manufacturing, Mahboobnagar. The Hyderabad Metropolitan area (under research and development the jurisdiction of Hyderabad Metropolitan Development Scientific research and development (“R&D”) Authority (“HMDA”)) comprises nearly 7,229 sq km. Industrial activity in Hyderabad is quite broad based The city houses many Fortune 500 Corporations, the with sectors like IT/ITES, bio-technology, apparel parks, majority of them related to the IT/ITES industry – pharmaceuticals, construction etc. having presence in including the likes of Microsoft, Computer Associates, the city. IT/ITES and pharmaceutical & biotechnology Amazon, GE, IBM, AMD, Facebook, Accenture, industry are dominant players and are expected to play Google, Motorola, Deloitte, Dell, QUALCOMM, Verizon, an increasing role even in future. Convergys, and Hewlett-Packard. Besides international giants, Indian companies have a strong presence here Low cost of living as compared to other Indian metros, too. Infosys, Wipro, Cognizant Technologies, TCS, ICICI, good quality of life, rapid pace of infrastructure Polaris and others have set up their development centres development, and a proactive government have led to in the city. increased corporate interest and investments in the city. With the growing competition amongst Indian Pharmaceutical & biotechnology industry is a dominant states to attract investments in various industries and player and is expected to play an increasing role in the service sector, the State with its proactive approach has future. Hyderabad is considered as the ‘bulk drug’ capital undertaken several infrastructural initiatives to equip the of the country due to the presence of a large number of city to handle large scale projects and investments in bulk drug units which accounts for about 30-35%35 of the the city. The population of Hyderabad as per 2011 census total production in the country currently was 7.75 million. Hyderabad is also home to several financial services companies like Wells Fargo, GE, Deloitte, UBS, etc. The establishment of these industries has triggered the growth of the commercial office market in Hyderabad. Business Line- April 28, 2013 Business Line- 35 164 3 Commercial Real Estate

Based on areas of commercial developments, Hyderabad can be divided into the following established commercial micro markets. There are primarily five commercial clusters in the city. With the exception of suburban areas of Madhapur and Gachibowli, all clusters are a mix of commercial and retail developments.

2 5 4 3 1

5

5

1. Central Business District 4. Suburban Locations Phase 1 Outer Ring Road

Banjara Hills Road # 1, 2, 10 & 12 Madhapur Phase 2 Outer Ring Road 2. Off - CBD Gachibowli (Includes Nanakramguda, Manikonda & Raidurg) Begumpet, Somajiguda International Airport Kukatpally Raj Bhavan Road, SP Road 5. Peripheral Locations 3. Prime Suburban Locations Shamshabad Rest of Banjara Hills Pocharam Jubilee Hills Uppal

165 Hyderabad commercial market overview

The five commercial corridors identified are:

Cluster Locations Nature

Central Banjara Hills Road Located in the heart of the city, this commercial micro market comprises largely Business no. 1, 2, 10 & 12 of corporate offices of infrastructure/construction, real estate, IT, biotech and District pharmaceutical companies. It is the prime commercial micro market of the city. The developments are a mix of commercial and retail developments. Prominent companies that have presence in this micro market are Broadridge, Cbay, Karvy, HSBC, IVR Prime, Aparna Constructions, Nuziveedu Seeds, Essar, Nectar, Uninor, etc As of 2013, the CBD market has a total stock of approximately 3.6 million sq ft. The vacancy rate during 2013 was estimated at 23.2%. During 2013, the CBD market attracted rentals in the range of INR 40-50/sq ft/month.

Off-CBD Begumpet, Located on the eastern and southern periphery of the CBD, this micro market areas Somajiguda, has regional/sales/marketing offices of companies of various industries. Rajbhavan road & The developments in this micro market are a mix of commercial and retail S P Road developments. Prominent companies in this micro market are Aptuit Laurus, Schneider Electric, Aurobindo Pharma, GVK Bioscience, DRL, Aircell, Airtel etc As of 2013, the Off-CBD market has a total stock of approximately 9.2 million sq ft. The vacancy rate during 2013 was estimated at 13.1%. During 2013, the CBD market attracted rentals in the range of INR 35-45/sq ft/month.

Prime Rest of Banjara Located on the northern and western periphery of the CBD, this micro Suburban Hills & Jubilee market has corporate offices of companies of various industries. Most of the areas Hills developments in this micro market are also a mix of commercial and retail developments. Companies that have presence here are Madhucon, Seaways Shipping, Prajay Construction etc. As of 2013, the Prime Suburban market has a total stock of approximately 3.93 million sq ft. The vacancy rate during 2013 was estimated at 29.8%. During 2013, the CBD market attracted rentals in the range of INR 40-50/sq ft/month.

Suburban Madhapur, Located in the western quadrant of the city and approximately 5-7 km north- areas Gachibowli, west of the CBD of Hyderabad, this micro market largely houses offices of IT/ ITES and financial services companies. These recent developments comprise Nanakramguda, large scale Grade A commercial developments. Companies like Infosys, TCS, Raidurg and IBM, Accenture, UBS, Deloitte, Wells Fargo etc have presence in this micro Kukatpally market. Among all the commercial micro markets, this micro market is currently witnessing maximum activity. As of 2013, the Suburban micro market has a total stock of approximately 32.95 million sq ft. The vacancy rate during 2013 was estimated at 18.7%. During 2013, the CBD market attracted rentals in the range of INR 40-50/sq ft/month.

Peripheral Pocharam, Located in periphery of the city this micro market is the upcoming commercial areas Shamshabad and hub of Hyderabad. Existing and upcoming commercial developments are Uppal mostly IT/ITES focussed. Significant leasing in this micro market is yet to gain momentum. As of 2013, the Peripheral micro market has a total stock of approximately 1.9 million sq ft. The vacancy rate during 2013 was estimated at 43.3%. During 2013, the CBD market attracted rentals in the range of INR 20-25/sq ft/month.

Source: Cushman & Wakefield

166 4 Connectivity

The city is well connected by all modes of transport – rail, road, and air.

Transport Details Mode

Rail Hyderabad has a robust rail network both for commuting inside and outside the city.

The City has a combination of light rail transportation system known as the Multimodal Transport System (“MMTS”) which offers connectivity within the city. The Hyderabad Metro, another mode of rapid transport is under construction and is expected to be operational from 2015. Secunderabad, Nampally and Kachiguda railway stations are the major railway junctions in the city. These junctions provide connectivity via rail both within the city and to other parts of the country.

Road Hyderabad is well connected to the rest of the country by National Highways – NH-7, NH-9 and NH-202. It is well connected to other parts of the State also through Srisailam Highway, Karimnagar Highway, Nagarjuna Sagar Highway, etc. Inner Ring Road and major part of the ORR are operational. Phase 2 B of ORR connecting Shamirpet and Pedda Amberpet and various radial roads connecting to ORR are under construction. On completion these are expected to further enhance the accessibility and connectivity of the city. The city has several flyovers which facilitate easy and quick connectivity.

Andhra Pradesh State Road Transport Corporation (“APSRTC”) in Hyderabad runs the largest number of buses (approximately 19,000) in the world and connects the city to other cities and states of the country. The city is well connected by bus network and its Mahatma Gandhi Bus Station (Imlibun Bus Station) ranks third in the league of largest bus stations in Asia. The bus station consists of 72 platforms and has a capacity of housing about 89 buses at a time.

The other most common means of commuting within the city are auto rickshaw and private cabs.

Air The new state-of-the-art Rajiv Gandhi International Airport is well equipped to handle high passenger and cargo traffic. It commenced operations in March 2008. The present capacity of the airport is 12 million passenger per annum.

Source: Cushman & Wakefield

5 Supply, Absorption and Vacancy Trends Area in Million sq ft The commercial office space absorption in Hyderabad has 7 9.19% been approximately 4-5 million sq ft per year in last five 24.52% 6 21.71% years. Due to the economic slowdown, the absorption 19.30% 5 18.50% in 2008 was low at approximately 3.22 million sq ft and in 2010 Hyderabad witnessed highest absorption of 5.77 4 million sq ft with the recovery from economic slowdown. 3

Suburban areas of Madhapur, Gachibowli, Kondapur and 2 Raidurg accounted for almost 80% of the total city’s 1 absorption in last five years. 0 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 The chart represents the supply, absorption and vacancy Supply on million sq ft Absorption in million sq ft Vacancy (%) trend for the city since 2009. Source: Cushman & Wakefield

167 Hyderabad commercial market overview

A snapshot of the supply, absorption and vacancy trend for the city is as below (as per C&W research):

The total commercial office stock in Hyderabad as on December 2013 is 51.65 million sq ft (including Grade A and B office space). The total absorption of commercial office space in Hyderabad from January to December 2013 has been approximately 4.59 million sq ft (approximately 11% higher than the previous year). The supply of commercial office space from January to December 2013 increased by around 32% at approximately 3.91 million sq ft vis-a-vis 2012 at approximately 2.96 million sq ft. It is estimated that approximately 16.07 million sq ft of additional commercial space is expected to come up by 2015 (Grade A office space supply during the same period is estimated at approximately 11.5 million sq ft). Approximately 86% of the upcoming supply is expected to come up in suburban areas of Madhapur, Gachibowli and Raidurg. The rentals in various micro markets of the city have remained stable vis-a-vis 2012. The vacancy level for commercial office space in Hyderabad as on December 2013 was approximately 19.3% and that as on December 2012 was 18.5%. Demand for office space is expected to increase moderately in the next two years as economic conditions improve. The rentals are expected to rise in suburban micro market, due to the limited vacant commercial space and remain stable in the short term for the other micro markets.

The details of some of the leases in Hyderabad from January to December 2013 are as under:

Project Name Micro Market Lessee Area leased (in sq ft)

Cyber Tech Park Madhapur Oracle 494,032

aVance H6 Madhapur United Health Group 285,000

Jayabheri orange Towers Gachibowli Amazon.com 250,000

KRC MindSpace Bldg # 8 Pocharam Genpact 182,000

DLF Cyber City, Block 2 Gachibowli Genpact 113,000

Ramky Seleium Gachibowli NA 96,000

aVance H7 Madhapur I Gate 85,110

DLF Cyber City, Block 2 Gachibowli Berkadia 70,000

Lanco Hills Gachibowli Apollo street 60,000

KRC Mindspace Bldg # 10 Madhapur Broadcom 50,000

Source: Cushman & Wakefield

168 6 Competition Analysis

Madhapur is one of the established commercial micro markets in India with the presence of large scale commercial developments such as Raheja Mindspace, The V, Cyber Towers, Cyber Gate Way, I labs, RMZ Ventura, Satyam SEZ, and aVance Business Hub etc and campus developments of TCS and TCL. The surrounding micro markets of Gachibowli, Raidurg and Kondapur have large scale commercial developments such as Divyasree Orion, Divyasree Omega, DLF Cyber City, Q City and Ramky Selenium etc. Campus developments of Infosys, Wipro, Microsoft, Cognizant and Franklin Templeton etc are also located in Gachibowli.

The present stock of office space in Madhapur is approximately 22 million sq ft (including The V, Cyber Pearl and aVance Business Hub) and accounts for approximately 43% of the office stock in the city. Out of total office space Grade A office space in Madhapur is approximately 17 million sq ft (including The V, Cyber Pearl and aVance Business Hub) and accounts for approximately 63% of the Grade A office stock in the city. Due to buoyant leasing activity and controlled supply, the vacancy in Madhapur market was low. The current Grade A vacancy level in Madhapur micro market is approximately 5.5%.

Some of the prominent commercial developments in Madhapur include:

Quoted Completed Vacancy Rentals Gross as on (INR per Building Year of Leasable 2013 sq ft per Name Developer Completion Area (sq ft) (sq ft) month) Main Occupiers

Raheja K Raheja 2005-2012 7,467,000 0.25% 45 IBM, Accenture, Deloitte, Mindspace Corporation Novartis, Facebook, UHG, CSC, (SEZ and HSBC, Qualcomm, JP Morgan Non SEZ)

Divya Sree Divya Sree 2010-2011 1,500,000 4% 45 IBM, Wells Fargo, INVESCO, Orion-SEZ Developers Keane, Kony, Mind Tree

Cyber Gate L&T Infocity 2003 866,000 12% 42 Genpact, Oracle, BSNL, Andhra Way Bank, L&T Construction

Divya Sree Divya Sree 2009-2011 750,000 20% 45 Google, Ivy Comptech, Synopsis Omega Developers

Cyber Tower L&T Infocity 2000 510,000 20% 42 BSNL, Hyderabad Metro Rail, L&T ECC,

I-labs Peepul Capital 2004 500,000 0% 42 E&Y, Kroll, Intelli Group, Horsco Advisors Cyber Tech Salarpuria 2013 494,032 0% 45 Oracle Park Sattva

Krishh Sri krishna 2011 450,000 31% 42 Global Data, Future First, ITC, Info Sapphire Developers Brain

E park Vijay Textiles 2004 265,000 8.7% 42 Tata Consultancy Services

Jayabheri Jayabheri 2005 250,000 0% 45 DHFL, Google, Symantec Space, Silicon Group Towers

Source: Cushman & Wakefield 169 Hyderabad commercial market overview

Area The total supply of commercial office space in Madhapur Project (in million sq ft) from January to December 2013 is 2.2 million sq ft, which is 57% of the total supply of commercial office space Hitec City II SEZ/aVance Business Hub 2.32 in Hyderabad. The upcoming planned Grade A supply (H2,H3,H4,H6A and H9) of commercial office space in Madhapur in the next 2-3 years is approximately 8.45 million sq ft, which represents KRC Mindspace (Building # 12 A) 0.75 74% of the total Grade A upcoming supply of Hyderabad in the next 2-3 years. Approximately 1.45 million sq ft of KRC Mindspace (Building # 12 B) 0.75 upcoming Grade A supply is already pre committed. KRC Mindspace (Building # 18) 0.35 Some of the prominent upcoming projects (planned for 2014 and 2015) in the subject micro market is Divya Sree Omega Block C 0.45 as shown. Purvankara Building 0.70

Source: Cushman & Wakefield

7 Absorption and Vacancy of the Area in Million sq ft micro market 3.5 3 Of the approximately 4-5 million sq ft per annum of office 2.5 space that Hyderabad has absorbed historically from 2008 2 till 2013, Madhapur has accounted for approximately 2-2.5 million sq ft of absorption per year in the last five years 1.5 accounting for 50-60% of the city’s absorption. In 2013 1 Madhapur accounted for absorption of approximately 0.5 2.2 million sq ft (approximately 53% of the city’s absorption). 0 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13

Due to buoyant leasing activity and controlled supply, Absorption (in million sq ft) Supply (in million sq ft) the vacancy in Madhapur market was low. The current Source: Cushman & Wakefield Grade A vacancy level in Madhapur micro market is approximately 5.5% and overall vacancy is at 11%.

170 The V: property analysis

1 Introduction

The micro-market of Madhapur, located in the North West and TCS. Nehru Outer Ring Road is a recent development of Hyderabad city, is known for its IT/ITES infrastructural in the micro market, providing easier accessibility developments with the presence of large IT Parks and between Madhapur and Gachibowli and International Company Campuses. Hitec City located in Madhapur is Airport, Shamshabad. Madhapur and Gachibowli are well a well known IT/ITES development with the presence of connected with the other parts of the city through well large scale office space developed by major developers built roads and rail networks. Metro rail is also proposed such as Raheja Mind Space, Ascendas The V, TSI Wave in the micro market, which on completion is expected rock, ICICI Towers, Cyber Towers, Cyber Gate Way, DLF to provide easy commuting to Hitec City and Gachibowli Cyber City, Satyam SEZ, Cyber Pearl etc. Some of the from other parts of the city. prominent IT Parks in the micro market include L&T Cyber towers, Hitec City II SEZ, The V, Raheja Mindspace The micro-market also has several large scale residential SEZ, DLF IT SEZ, Satyam Computers IT SEZ and aVance projects like My Home Navadweepa, Fortune Towers, Business Hub, and various Built to suit campuses of NCC Urban, Fresh Apartments, Sky Lounge and Aditya Infosys, Wipro, Micro Soft, Franklin Templeton, Cognizant Sunshine amongst others.

Profile of Cyber Pearl Overview

Date of operation Mariner (June 2000) Capella (July 2005) Auriga ( August 2002) Vega (November 2007) Orion (October 2004)

Configuration

Total project area 19.4 acres

Development mix Commercial Office

Built up area 1,282,465 sq ft

Number of floors Mariner (4 floors) Capella (8 floors) Auriga (7 floors) Vega (14 floors) Orion (8 floors)

Location

Address Plot No.17, Survey no.64/2, Software Units Layout, Madhapur, Hyderabad.

Proximity to CBD Approximately 10 km from CBD

Proximity to Airport Approximately 35 km from International airport

Proximity to railway station Approximately 3-4 km from HITEC city railway station

Number of approach roads 3 (from Durgam cheruvu, from Gachibowli and from Cyber Towers)

Surrounding areas Kondapur, Gachibowli and Jubilee hills

Availability of public transport Buses and Auto rickshaws

Infrastructure

Power supply & Back up There is 100% back up for all the facilities in the IT park

Fire protection system The facility includes fire alarm, sprinklers and 24 hour security

Parking There are 1,226 parking slots for 4 wheelers and 2,723 parking slots for 2 wheelers

Amenities

Convenience stores, gyms, recreation areas form major amenities in the IT park

Source: Ascendas Property Fund Trustee Pte. Ltd. 171 The V: property analysis

2 Location & Accessibility 3 Tenant Mix

The property is located in HITEC (Hyderabad Information The tenants in The V are major IT and BPO firms along with Technology Engineering Consultancy) city, Madhapur, some finance companies. Some of the major companies in Hyderabad. It is located approximately 1 km from The V are Cognizant Technologies, AT&T, Diebold, Autodesk, Cyber Towers and is adjacent to the Inorbit mall at Cigniti, Evoke, etc. Madhapur. The surrounding real estate are commercial developments like Mindspace IT Park, I labs and Infotech campuses. The IT Park is spread over an area 4 Specifications of approximately 19 acres with total leasable area of approximately 1.28 million sq ft spread over five The IT Park is spread over 19 acres with a total area of commercial office buildings/blocks (Mariner, Auriga, approximately 1.28 million sq ft spread over five commercial Orion, Capella & Vega). The IT park (property) has been office buildings/blocks (Mariner, Auriga, Orion, Capella and developed in phases over 8 years with Vega being the Vega). Apart from the office spaces these buildings also latest (operational from 2008). The property is located have cafeterias, convenience stores, gyms, auditorium, adjacent to the Inorbit Mall. recreation areas, 100% power back-up, high efficiency offices, food courts and high-tech management systems The subject property is well connected to major locations which provide a unique experience compared to other IT in the city via road networks. The distance of the subject parks in the vicinity. site from major locations is as follows:

Approximately 3-4 km from the Outer ring road at 8 SWOT Analysis Gachibowli; Approximately 33-35 km from the International airport Strength through ORR (Outer Ring Road); Located in established commercial micro market Approximately 9-10 km from Banjara Hills and Jubilee with excellent connectivity with other parts of the city Hills (CBD). and Airport. It enjoys good frontage on the Hitec City-Durgam Cheruvu access road. Due to the lack of vacant Grade A commercial space in the micro market, subject property commands premium rental. The tenant profile of the subject property is good as they comprise of leading IT/ITES companies.

The V Subject property is located in well secured and business oriented location of Hitec City.

Weakness Lack of vacant land for further expansion Outer Ring Road Opportunities Improved connectivity as line 3 of Hyderabad Metro Rail is planned near to the subject property. On completion of the same (expected by 2015), subject property is expected to get faster and increased connectivity with the other parts of the city.

Threats Upcoming supply in the micro-market.

172 CyberPearl: property analysis

1 Introduction

CyberPearl is an IT park located in Hitec City, Madhapur, Hyderabad. The surrounding real estate is primarily commercial developments like TCS Deccan Park, Cyber Gateway and Infotech campuses. The IT park is spread over a land area of approximately 6 acres with a leasable area of approximately 0.43 million sq ft. Apart from the office spaces these buildings also have cafeterias, gyms and recreation areas. The CyberPearl property has two buildings.

Profile of CyberPearl

Overview

Date of operation Phase I (May 2004) Phase II (January 2006)

Configuration

Total project area 6.05 acres

Development mix Commercial

Built up area 429,098 sq ft

Number of floors Block 1 – Stilt +7 floors, Block 2 – 7 floors

Location

Address Plot no.9, Survey no.64/Part, Software units layout, Madhapur, Hyderabad.

Proximity to CBD Approximately 10 km from CBD

Proximity to Airport Approximately 35 km from International airport

Proximity to railway station Approximately 3 km from HITEC city railway station

Number of approach roads 3 (from Durgam Cheruvu, from Gachibowli and from Cyber Towers)

Surrounding areas Kondapur, Gachibowli and Jubilee hills

Availability of public transport Buses and Auto rickshaws

Infrastructure

Power supply & Back up There is 100% back up for all the facilities in the IT park

Fire protection system The facility includes fire alarm, sprinklers and 24 hour security

Parking There are 508 parking slots for 4 wheelers and 790 parking slots for 2 wheelers

Amenities

Convenience stores, gyms, recreation areas form major amenities in the building

Source: Ascendas Property Fund Trustee Pte. Ltd.

2 Location & Accessibility

The property is located in HITEC city, Madhapur, Hyderabad. It is located at a distance of less than half km from Cyber Towers and is next to Cyber Gateway. The subject project is well connected to major locations in the city. The distance of the subject site from major locations is as follows: Approximately 3-4 km from the Outer Ring Road at Gachibowli; Approximately 33-35 km from the International airport through ORR (outer ring road); Approximately 9-10 km from Banjara Hills and Jubilee Hills (CBD).

173 CyberPearl: property analysis

3 Tenant Mix

The tenants in CyberPearl are major IT and BPO firms along with some finance companies. Some of the major companies in CyberPearl are GE India, Xilinx India Technology Services, Keste Software, Harsco CyberPearl India Services, Market Tools Research and Power wave Technologies R&D.

4 Specifications

The IT Park is spread over an area of approximately 6 acres with a leasable area of approximately 0.43 million sq ft. The CyberPearl block is located in two separate wings Outer Ring Road (buildings). Apart from the office spaces these buildings also have cafeterias, gyms, recreation areas, 100% power back-up, high efficiency offices, food courts and high-tech management systems which provide a unique experience and compared to other IT parks in the vicinity.

5 SWOT Analysis

Strength Located in established commercial micro market with excellent connectivity with other parts of the city and Airport.

Due to the lack of vacant Grade A commercial space in the micro market, subject property commands a premium rental.

The tenant profile of the subject property is good as they comprise of leading IT/ITES companies.

Subject property is located in well secured and business oriented location of Hitec City.

Weakness Lack of vacant land for further expansion

Opportunities Improved connectivity as line 3 of Hyderabad Metro Rail is planned adjacent to the subject property. On completion of the same (expected by 2015), subject property is expected to get faster and increased connectivity with the other parts of the city.

Threats Upcoming supply in the micro-market.

174 aVance business hub: property analysis

1 Introduction

aVance Business Hub is located in HITEC City, Madhapur, Hyderabad. aVance Business Hub is an IT SEZ located near prominent commercial developments like CyberPearl, Cyber Gateway, and campuses of Oracle, DELL, CII-Green Building, Mahindra Satyam and HSBC. Raheja Mindspace and The V are also located in close proximity to the subject SEZ. Buildings H01 A and H08 in aVance Business Hub have 427,657 sq ft of super built up area.

The property is accessible from the HITEC City main road via the road adjacent to the Cyber Gateway. The subject property is located at a distance of approximately 500 meters from the HITEC City main road.

Profile of aVance Business Hub

Overview

Date of operation H01A (March 2008) H08 (November 2008)

Configuration

Total project area 25.68 acres (aVance Business Hub area) and 2.76 acres for H01 A and H08

Development mix Commercial Office

Built up area 427,651 sq ft (Built up area of H01A and H08)

Number of floors H01A (7 floors) H08 (7 floors)

Location

Address Survey Nos. 30 (Part), 34 (Part), 35(Part) and 38(Part), Gachibowli Village, Serilingampally Mandal, Ranga Reddy District

Proximity to CBD Approximately 10 km from CBD

Proximity to Airport Approximately 35 km from International airport

Proximity to railway station Approximately 3-4 km from HITEC city railway station

Number of approach roads 2 (from Hitec City-Durgam Cheruvu road and from Kondapur-Hitec City Road)

Surrounding areas Kondapur, Gachibowli and Miyapur

Availability of public transport Buses and Auto rickshaws

Infrastructure

Power supply & Back up There is 100% back up for all the facilities in the IT park

Fire protection system The facility includes fire alarm, sprinklers and 24 hour security

Parking There are 257 parking slots for 4 wheelers and 865 parking slots for 2 wheelers

Amenities

Convenience stores, gyms, recreation areas form major amenities in the IT park

Source: Ascendas Property Fund Trustee Pte. Ltd.

2 Location & Accessibility

The property is located in HITEC (Hyderabad Information Technology Engineering Consultancy) city, Madhapur, Hyderabad. It is located approximately 500 meters from Cyber Towers and is adjacent to the Dell campus and The Bamboos residential development. The surrounding real estate developments are IT parks like Cyber Gateway, Meenakshi Tech Park, Value labs, HSBC, CyberPearl, and campuses of Oracle, Mahindra Satyam etc. 175 aVance business hub: property analysis

The subject property is well connected to major locations 5 SWOT Analysis in the city via road networks. The distance of the subject site from major locations is as follows: Strength Located in established commercial micro market Approximately 3-4 km from the Outer ring road with excellent connectivity with other parts of the city at Gachibowli; and airport. Approximately 33-35 km from the International airport As the subject buildings are part of the SEZ through ORR (Outer Ring Road); development, there are tax benefits accruing to the Approximately 9-10 km from Banjara Hills and Jubilee subject tenants and owners as well. Hills (CBD). Due to the lack of vacant Grade A commercial space in the micro market, subject property commands premium rental. The tenant profile of the subject property is good as they comprise of leading IT/ITES companies. Subject property is located in well secured and business friendly location of Hitec City. Avance Business Hub Weakness Property located off key arterial road.

Opportunities Improved connectivity as line 3 of Hyderabad Metro Rail (“HMR) is planned near to the subject property. On completion of the same (expected by 2015), subject Outer Ring Road property is expected to get faster and increased connectivity with the other parts of the city.

Threats Upcoming supply of office space same SEZ and in the micro-market. 3 Tenant Mix 6 Outlook The tenants in the subject buildings (HO8 and H01A) are major IT/ITES firms/companies. Major tenants in Demand for office space is expected to increase these two buildings are Kony labs, Cognizant Technology moderately from 2014 as economic conditions improve. Solutions, HCL, Igate, Value Momentum, Value labs The rentals are expected to rise in the near term and Maq soft, etc. In view of the profile of the said in Madhapur, due to the limited vacant commercial companies, the tenant profile of the twobuildings is good. Grade A space in the near term. Hyderabad Metro Rail connectivity to Madhapur will further boost attractiveness of Madhapur as a commercial destination as compared to 4 Specifications other commercial micro markets in Hyderabad.

The SEZ development of 427,651 sq ft in these buildings (H08 and H01A) is completely occupied which indicates good commercial performance. Apart from the office spaces these buildings also have cafeterias, gyms, auditorium, recreation areas, 100% power back-up & high efficiency offices which provide a unique experience.

176 Caveats & limitations

1. The Market Research Report (hereafter referred to as the “Report”) will cover specific markets and situations, which will be highlighted in the Report. C&WI will not be carrying out comprehensive field research based analysis of the market and the industry given the limited nature of the scope of the assignment.

2. In conducting this assignment, C&WI will carry out analysis and assessments of the level of interest envisaged for the property(ies) under consideration and the demand-supply for the hospitality/retail/ land/commercial sector in general. C&WI will also obtain other available information and documents that are additionally considered relevant for carrying out the exercise. The opinions expressed in the Report will be subject to the limitations expressed below.

a) C&WI has adopted valuation method based on its own expertise and knowledge and endeavors to develop forecasts on demand, supply and pricing on assumptions that would be considered relevant and reasonable at that point of time. All of these forecasts will be in the nature of likely or possible events/occurrences and the Report will not constitute a recommendation to Ascendas Property Fund Trustee Pte. Limited (hereafter referred to as the “Client”) or its affiliates and subsidiaries or its customers or any other party to adopt a particular course of action. The use of the Report at a later date may invalidate the assumptions and bases on which forecasts have been generated and is not recommended as an input to a financial decision.

b) It should be noted that C&WI's value assessments will be based upon the facts and evidence available at the date of assessment. It is therefore recommended that the value assessments be periodically reviewed.

c) Changes in socio-economic and political conditions could result in a substantially different situation than those presented at the stated effective date. C&WI assumes no responsibility for changes in such external conditions.

d) In the absence of a detailed field survey of the market and industry (as and where applicable), C&WI will rely upon secondary sources of information for a macro-level analysis. Hence, no direct link is sought to be established between the macro-level understandings on the market with the assumptions estimated for the analysis.

e) The services provided will be limited to valuation and will not constitute an audit, a due diligence, tax related services or an independent validation of the projections. Accordingly, C&WI will not express any opinion on the financial information of the business of any party, including the Client and its affiliates and subsidiaries. The Report will be prepared solely for the purpose stated, and should not be used for any other purpose.

f) While the information included in the Report will be accurate and reliable, no representations or warranties, expressed or implied, as to the completeness of such information is being made. C&WI will not undertake any obligation to update or supplement any information contained in the Report save as provided for in the Agreement.

g) In the preparation of the Report, C&WI will rely on the following information:

i) Information provided to us by the Client and its affiliates and subsidiaries and third parties;

ii) Recent data on the industry segments and market projections;

iii) Other relevant information provided to us by the Client and its affiliates and subsidiaries at C&WI's request;

177 Caveats & limitations

iv) Other relevant information available to C&WI; and

v) Other publicly available information and reports.

3. The Report will reflect matters as they currently exist. Changes may materially affect the information contained in the Report.

4. All assumptions made in order to determine the valuation of the identified property(ies) will be based on information or opinions as current. In the course of the analysis, C&WI would be relying on information or opinions, both written and verbal, as current obtained from the Clients as well as from third parties provided with, including limited information on the market, financial and operating data, which would be accepted as accurate in bona-fide belief. No responsibility is assumed for technical information furnished by the third party organizations and this is bona-fidely believed to be reliable.

5. No investigation of the title of the assets will be been made and owners' claims to the assets will be assumed to be valid. No consideration will be given to liens or encumbrances, which may be against the assets. Therefore, no responsibility is assumed for matters of a legal nature.

6. C&WI's total aggregate liability to the Client including that of any third party claims, in contract, tort including negligence or breach of statutory duty, misrepresentation, restitution or otherwise, arising in connection with the performance or contemplated performance of the services is limited to an aggregate sum not exceeding 3 times the total fees paid for each instructions accepted. C&WI shall not be liable for any pure economic loss, loss of profit, loss of business, depletion of goodwill, in each case whether direct or indirect or consequential or any claims for consequential loss compensation whatsoever which, arise out of or in connection with services provided under this engagement.

7. C&WI endeavors to provide services to the best of ability and in bona-fide good faith. The proposed services and/or work product of C&WI shall be only for the use of the Client and the Authorised Parties. If the Client allows any third party other than any of the Authorised Parties to use or rely thereon the work product of C&WI, it shall be at the sole risk of the Client and there shall be no liability on C&WI (including its Directors, and employees) towards any third party claim for damages, economic loss or damage suffered arising out of or in connection with the services proposed to be rendered, direct or indirect due to whatsoever reasons and however the loss or damage is caused. The Client shall assist and cooperate with C&WI to defend any third party claim before any court of law or authorities, and indemnify C&WI of the cost of such proceedings.

8. The Client including its agents, affiliates and employees, must not use, reproduce or divulge to any third party any information it receives from C&WI for any purpose save as provided in the Agreement and should take all reasonable precautions to protect such information from any sort of disclosure.

9. In the event of any party wants to disclose any information it shall take prior written consent of C&WI and shall make only such disclosures as allowed by the C&WI. However, the non-disclosure condition shall not apply to any information that is already in the public domain or required by any court of law or authorities under any law. In such an event the disclosing party shall intimate the other party before making such disclosure.

10. This engagement shall be governed by and construed in accordance with Indian laws and any dispute arising out of or in connection with the engagement, including the interpretation thereof, shall be submitted to the exclusive jurisdiction of courts in Bangalore.

178 Notice of Annual General Meeting

ASCENDAS INDIA TRUST (Registration Number: 2007004) (a business trust registered under the Business Trusts Act, Chapter 31A) Managed by Ascendas Property Fund Trustee Pte Ltd, (Company Registration Number: 200412730D) as trustee-manager of Ascendas India Trust (“Trustee-Manager”)

NOTICE IS HEREBY GIVEN that the Seventh Annual General Meeting of the Unitholders of Ascendas India Trust (“a-iTrust”) will be held at Orchard Hotel Singapore, Orchard Ballroom 3, Level 3, 442 Orchard Road, Singapore 238879 on Thursday, 10 July 2014 at 2.00 p.m. to transact the following business:

ORDINARY BUSINESS Resolution 1 To receive and adopt the Report of the Trustee-Manager, Statement by the Trustee-Manager and Audited Financial Statements of a-iTrust, for the financial year ended 31 March 2014, together with the Auditors’ Report thereon.

Resolution 2 To re-appoint Messrs Ernst & Young LLP (“EY”) as Independent Auditor of a-iTrust, to hold office until the conclusion of the next Annual General Meeting (“AGM”) of a-iTrust and to authorise the directors of the Trustee-Manager to fix their remuneration.

SPECIAL BUSINESS To consider and, if thought fit, to pass the following resolution as Ordinary Resolution:

Resolution 3 That pursuant to Section 36 of the Singapore Business Trusts Act, Cap. 31A (the “BTA”), Rule 806 of the Listing Manual of the Singapore Exchange Securities Limited (the “SGX-ST”), and Clause 6.1.1 of the Amended and Restated Trust Deed dated 28 June 2007 constituting a-iTrust (the “Trust Deed”), the Trustee-Manager be authorised and empowered to:

a) i) issue units of a-iTrust (“Units”) whether by way of rights, bonus or otherwise; and/or

ii) make or grant offers, agreements or options (collectively, “Instruments”) that might or would require Units to be issued, including but not limited to the creation and issue of (as well as adjustments to) securities, warrants, debentures or other instruments convertible into Units, at any time and upon such terms and conditions and for such purposes and to such persons as the Trustee-Manager may in its absolute discretion deem fit; and

b) issue Units in pursuance of any Instrument made or granted by the Trustee-Manager while this Resolution was in force (notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the time such Units are issued), provided that:

(1) the aggregate number of Units to be issued pursuant to this Resolution (including Units to be issued pursuant to Instruments made or granted under this Resolution) shall not exceed fifty per cent (50%) of the total number of issued Units (excluding treasury Units, if any) calculated in accordance with subparagraph (2) below, of which the aggregate number of Units to be issued other than on a pro rata basis to Unitholders (including Units to be issued pursuant to Instruments made or granted under this Resolution), shall not exceed twenty per cent (20%) of the total number of issued Units (excluding treasury Units, if any);

179 (2) subject to such manner of calculation as may be prescribed by the SGX-ST for the purpose of determining the aggregate number of Units that may be issued under sub- paragraph (1) above, the percentage of issued Units shall be calculated based on the total number of issued Units (excluding treasury Units) at the time this Resolution is passed, after adjusting for:

(a) any new Units arising from the conversion or exercise of any Instruments which are outstanding or subsisting at the time this Resolution is passed; and

(b) any subsequent bonus issue, consolidation or subdivision of Units;

(3) in exercising the authority conferred by this Resolution, the Trustee-Manager shall comply with the provisions of the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST), the Trust Deed and the BTA;

(4) unless revoked or varied by the Unitholders in a general meeting, the authority conferred by this Resolution shall continue in force until (i) the conclusion of the next AGM or (ii) the date by which the next AGM is required by applicable regulations to be held, whichever is earlier;

(5) where the terms of the issue of the Instruments provide for adjustment to the number of Instruments or Units into which the Instruments may be converted, in the event of rights or any other events, the Trustee-Manager is authorised to issue additional Instruments notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the time the Instruments are issued; and

(6) the Trustee-Manager be and is hereby authorised to complete and do all such acts and things (including executing all such documents as may be required) as the Trustee-Manager may consider expedient or necessary or in the interests of a-iTrust to give effect to the authority conferred by this Resolution.

(Please see Explanatory Note)

By order of the Board of Ascendas Property Fund Trustee Pte Ltd as Trustee-Manager of Ascendas India Trust

Mary Judith de Souza Company Secretary Singapore 13 June 2014

180 Notes

1. A Unitholder entitled to attend and vote at the AGM, is entitled to appoint not more than two (2) proxies to attend and vote in his/her stead. A proxy need not be a Unitholder.

2. Where a Unitholder appoints more than one (1) proxy, the appointments shall be invalid unless he/she specifies the proportion of his/her holding (expressed as a percentage of the whole) to be represented by each proxy.

3. The proxy form must be deposited at the registered office of the Unit Registrar, Boardroom Corporate & Advisory Services Pte Ltd at 50 Raffles Place #32-01, Singapore Land Tower, Singapore 048623, not less than 48 hours before the time set for holding the meeting.

Explanatory Note

Ordinary Resolution 3 Ordinary Resolution 3, if passed, will empower the Trustee-Manager from the date of this AGM until (i) the conclusion of the next AGM of a-iTrust, or (ii) the date by which the next AGM of a-iTrust is required by the applicable regulations to be held, whichever is earlier, to issue Units and to make or grant instruments (such as securities, warrants or debentures) convertible into Units and issue Units pursuant to such instruments, up to a number not exceeding fifty percent (50%) of the total number of issued Units (excluding treasury Units, if any), of which up to twenty percent (20%) may be issued other than on a pro rata basis to Unitholders.

For determining the aggregate number of Units that may be issued, the percentage of issued Units will be calculated based on the issued Units at the time the Ordinary Resolution 3 is passed, after adjusting for new Units arising from the conversion or exercise of any Instruments which are outstanding at the time this Resolution is passed and any subsequent bonus issue, consolidation or subdivision of Units.

Personal Data Privacy By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend, speak and vote at the Annual General Meeting and/or any adjournment thereof, a Unitholder (i) consents to the collection, use and disclosure of the Unitholder’s personal data by the Trustee-Manager (or its agents) for the purpose of the processing and administration by the Trustee-Manager (or its agents) of proxies and representatives appointed for the Annual General Meeting (including any adjournment thereof) and the preparation and compilation of the attendance lists, minutes and other documents relating to the Annual General Meeting (including any adjournment thereof), and in order for the Trustee-Manager (or its agents) to comply with any applicable laws, listing rules, regulations and/or guidelines (collectively, the “Purposes”), (ii) warrants that where the Unitholder discloses the personal data of the Unitholder’s proxy(ies) and/or representative(s) to the Trustee-Manager (or its agents), the Unitholder has obtained the prior consent of such proxy(ies) and/or representative(s) for the collection, use and disclosure by the Trustee-Manager (or its agents) of the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that the Unitholder will indemnify the Trustee-Manager in respect of any penalties, liabilities, claims, demands, losses and damages as a result of the Unitholder’s breach of warranty. 181 This page is intentionally left blank.

182 IMPORTANT Proxy form PLEASE READ THE NOTES TO THE PROXY FORM.

Personal data privacy By submitting an instrument appointing a proxy(ies) and/or representative(s), the Unitholder accepts and agrees to the personal data privacy terms set out in the Notice of Annual General Meeting dated 13 June 2014. ASCENDAS INDIA TRUST (Registration Number: 2007004) (a business trust registered under the Business Trusts Act, Chapter 31A) Number of Units held Managed by Ascendas Property Fund Trustee Pte Ltd, (Company Registration Number: 200412730D) as trustee-manager of Ascendas India Trust (“Trustee-Manager”)

SEVENTH ANNUAL GENERAL MEETING (Before completing this form, please read the notes behind.)

I/We (Name) (NRIC No./Passport No.)

of (Address) being a Unitholder/Unitholders of Ascendas India Trust (“a-iTrust”), hereby appoint:

PROPORTION OF NAME ADDRESS NRIC/ PASSPORT NO. UNITHOLDINGS (%)

(a)

and/or (delete as appropriate) (b)

or failing him/her, the Chairman of the meeting, as my/our proxy/proxies to attend and vote for me/us and on my/our behalf at the Seventh Annual General Meeting of a-iTrust to be held at Orchard Hotel Singapore, Orchard Ballroom 3, Level 3, 442 Orchard Road, Singapore 238879 on Thursday, 10 July 2014 at 2.00 p.m. (“Meeting”), and at any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the resolutions to be proposed at the Meeting as indicated hereunder. If no specific direction as to voting is given, the proxy/ proxies will vote or abstain from voting at his/her/their discretion, as he/she/they will on any other matter arising at the Meeting.

NO. OF VOTES NO. OF VOTES NO. RESOLUTION FOR* AGAINST*

Ordinary Business

1. Adoption of the Report of the Trustee-Manager, Statement by the Trustee-Manager and the Audited Financial Statements of a-iTrust, for the financial year ended 31 March 2014, together with the Auditors’ Report thereon.

2. Re-appointment of Messrs Ernst & Young LLP as Independent Auditor of a-iTrust to hold office until the conclusion of the next Annual General Meeting of a-iTrust and to authorise the directors of the Trustee-Manager to fix their remuneration.

Special Business

3. Authority for the Trustee-Manager to issue units and to make or grant convertible instruments.

* If you wish to exercise all your votes “For” or “Against”, please tick (√) within the box provided. Alternatively, please indicate the number of votes as appropriate.

Dated this day of 2014

Signature(s) of Unitholder(s)/Common Seal 3rd fold here, glue along the dotted line and fold flap

Postage will be paid by addressee. For posting in Singapore only

BUSINESS REPLY SERVICE PERMIT NO. 08271

D  C

The Company Secretary Ascendas Property Fund Trustee Pte Ltd (as Trustee-Manager of Ascendas India Trust) c/o: Boardroom Corporate & Advisory Services Pte. Ltd. 50 Raffles Place #32-01 Singapore Land Tower Singapore 048623

2nd fold here

Notes:

1. Please insert at the top right hand corner of this Proxy Form the number 6. This Proxy Form must be signed by the appointor or by his/her attorney. In of units in a-iTrust registered in your name in the Depository Register the case of a corporation, this form must be executed under its common maintained by The Central Depository (Pte) Limited ("CDP") in respect of seal or signed by its duly authorised attorney or officer. the units in your securities account with CDP. If no number is inserted, this Proxy Form shall be deemed to relate to all the units held by you. 7. Where this Proxy Form is signed on behalf of the appointor by an attorney, the letter or power of attorney or a duly certified copy thereof, must (failing 2. A Unitholder entitled to attend and vote at the Meeting is entitled to appoint previous registration with a-iTrust), be lodged with this Proxy Form, failing one or two proxy/proxies to attend and vote in his/her stead. A proxy need which the instrument may be treated as invalid. not be a Unitholder. 8. Any alteration made in this Proxy Form should be initialled by the person 3. A Unitholder is not entitled to appoint more than two proxies to attend who signs it. and vote on his/her behalf. Where a member appoints two proxies, the appointments shall be invalid unless he/she specifies the proportion of his/ 9. The Trustee-Manager shall be entitled to reject this Proxy Form if it is her Unitholding (expressed as a percentage of the whole) to be represented incomplete, improperly completed or illegible or where the true intentions by each proxy. of the appointor are not ascertainable from the instructions of the appointor specified on the Proxy Form. In the case of Unitholders whose units 4. The sending of a Proxy Form by a Unitholder does not preclude him/her are entered against their names in the Depository Register, the Trustee- from attending and voting in person at the Meeting if he/she finds that he/ Manager may reject any Proxy Form lodged if such Unitholders are not she is able to do so. In such event, the relevant Proxy Form will be deemed shown to have the corresponding number of units in a-iTrust entered to be revoked. against their names in the Depository Register as at 48 hours before the time appointed for holding the Meeting or the adjourned meeting, 5. To be effective, this Proxy Form must be deposited at the registered office as appropriate. of the Unit Registrar, Boardroom Corporate & Advisory Services Pte Ltd at 50 Raffles Place #32-01, Singapore Land Tower, Singapore 048623, not less than 48 hours before the time set for holding the Meeting.

1st fold here Corporate information

Ascendas India Trust Investment Committee Website: www.a-itrust.com Mr David Lim Tik En (Chairman) Email: [email protected] Mr Rakesh Kumar Aggarwal SGX Code: AscendasIndT Mr T. V. Mohandas Pai Bloomberg Code: AIT SP Mr Girija Prasad Pande Reuter Code: AINT.SI Mr Khiatani Manohar Ramesh Mr Jonathan Yap Neng Tong Registered Office Nominating Committee 61 Science Park Road #04-01 The Galen Mr Philip Yeo Liat Kok (Chairman) Singapore 117525 Mr David Lim Tik En Phone: (65) 6774 1033 Mr Khiatani Manohar Ramesh Fax: (65) 6774 9563 Human Resource & Remuneration Committee Trustee-Manager Mr Philip Yeo Liat Kok (Chairman) Ascendas Property Fund Trustee Pte. Ltd. Mr David Lim Tik En Mr Khiatani Manohar Ramesh Independent Auditor Company Secretaries Ernst & Young LLP Public Accountants and Certified Public Accountants Ms Mary Judith de Souza One Raffles Quay Mr Edwin Kung Wee Tack North Tower Level 18 Singapore 048583 Unit Registrar Audit Partner-in-charge: Tham Chee Soon Boardroom Corporate & Advisory Services Pte Ltd Date of Appointment: 17 July 2012 50 Raffles Place #32-01 Singapore Land Tower Property Manager Singapore 048623 Ascendas Services (India) Private Limited 1st Floor, Innovator Building International Tech Park Bangalore Whitefield Road Bangalore 560066, India

Board of Directors Mr Philip Yeo Liat Kok (Chairman) Mr David Lim Tik En (Deputy Chairman) Mr Michael Grenville Gray Mr Rakesh Kumar Aggarwal Mr T. V. Mohandas Pai Mr Girija Prasad Pande Mr Ng Eng Leng Mr Khiatani Manohar Ramesh Mr Jonathan Yap Neng Tong

Audit Committee Mr Michael Grenville Gray (Chairman) Mr David Lim Tik En Mr T. V. Mohandas Pai Mr Ng Eng Leng

185