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CONTENTS Vision .............................................................................................................................. 02 The Year That Was .......................................................................................................... 04 Company Information ...................................................................................................... 06 Awards & Recognition ..................................................................................................... 08 Executive Chairman’s Message ....................................................................................... 12 Management Discussion and Analysis ............................................................................. 16 Directors Report and Annexures ...................................................................................... 30 Report on Corporate Governance .................................................................................... 75 Business Responsibility Report ........................................................................................ 92 Standalone Financials ...................................................................................................... 104 Consolidated Financials ................................................................................................... 175 Notice and Explanatory Statement ................................................................................... 250 This annual report is printed on Eco-Friendly Paper VISION 02 GODREJ PROPERTIES LIMITED ANNUAL REPORT 2017-18 We aspire to be the nation’s leading and most trusted real estate company. We shall deliver superior value to all stakeholders through extraordinary and imaginative spaces and service created out of deep customer focus and insight. .VKYLQ9LÃLJ[PVUZ)HUNHSVYL (Y[PZ[ºZPTWYLZZPVU5V[HUHJ[\HSZP[LWOV[VNYHWO 03 GODREJ PROPERTIES LIMITED ANNUAL REPORT 2017-18 THE YEAR THAT WAS FI5(5*0(3/0./30./;: *SYJWJINSYTFIJFQ\NYM,TIWJO+ZSI2FSFLJRJSY ,+2YTXJQQ XYFPJNS,TIWJO9\T ,51¸X YTYFQ .SHTRJ NSHWJFXJI G^ YT .37 2,397 crore from INR 1,733 crore )<:05,::+,=,3674,5; *'.9)&NSHWJFXJIG^ YT.37HWTWJKWTR 'JXYJ[JW^JFWKTWGZXNSJXXIJ[JQTURJSY&IIJI INR 403 crore SJ\UWTOJHYX\NYMXFQJFGQJFWJFTKRNQQNTS 3JYUWTÁYNSHWJFXJIG^ YT.37HWTWJKWTR sq. ft. INR 207 crore TKYMJFWJFFIIJINS+>NXNSUFWYSJWXMNU ,JSJWFYJI.37HWTWJTKSJYTUJWFYNSLHFXM with other developers ÂT\QJFINSLYTFIJGYWJIZHYNTSTK.37HWTWJ &QQYMJUWTOJHYXFIIJIFWJNSYMJKTZWQFWLJXYWJFQ :(3,:/0./30./;: estate markets in India -NLMJXY J[JW XFQJX NS F ÁSFSHNFQ ^JFW G^ ,51 :<:;(05()030;@/0./30./;: booking value of INR 5,083 crore is the highest booking value achieved by any publicly listed real ,51\FXWFSPJInd in Asia & 6th globally by GRESB estate developer in India in FY18 ,QTGFQ 7JFQ *XYFYJ 8ZXYFNSFGNQNY^ 'JSHMRFWP &S NSIZXYW^IWN[JS TWLFSN_FYNTS \MNHM FXXJXXJX 9TYFQ [FQZJ TK GTTPNSLX NS +> XYTTI FY .37 Environmental, Social and Governance (ESG) HWTWJ \MNHM WJUWJXJSYX F ^JFWTS performance of real estate assets globally. year increase GRESB is committed to rigorous and independent )JQN[JWJIXFQJXTKRTWJYMFS.37HWTWJNS evaluation of the sustainability performance of real each of the four quarters of FY18 estate assets across the globe +TWYMJÁWXYYNRJ,51JRJWLJIFRTSLXYYMJYTU ,TIWJO,FWIJS(NY^MFIYMJINXYNSHYNTSTKWJHJN[NSL three developers by value of real estate sold in 5QFYNSZRHJWYNÁHFYNTSG^YMJ.SINFS,WJJS'ZNQINSL each of the four focus markets of Mumbai, NCR, Council. The IGBC Green Residential Society 'FSLFQTWJFSI5ZSJ 5QFYNSZR HJWYNÁHFYNTS NX WJHTLSN_JI FX YMJ 8TQIRTWJYMFSRNQQNTSXVKY\NYMFGTTPNSL highest rating for residential societies and with value of over INR 800 crore in each of the four YMNX FHMNJ[JRJSY ,TIWJO ,FWIJS (NY^ GJHTRJX focus markets viz. Mumbai, NCR, Bangalore and the largest township in India to be IGBC Green 5ZSJ 7JXNIJSYNFQ8THNJY^5QFYNSZRHJWYNÁJI 8FQJXKWTRJ]NXYNSLNS[JSYTW^XYTTIFY.37 IJ[JQTURJSYX WJHJN[JI LWJJS GZNQINSL crore in FY18 as compared to INR 1,052 crore in HJWYNÁHFYNTSX FY17 6;/,9/0./30./;: *644,9*0(37961,*;: )JQN[JWJIcRNQQNTSXVKYFHWTXXHNYNJXNS+> +>XFQJXFY,TIWJO'0(XYTTIFY.37HWTWJ leading to remaining inventory of only ~ 51,000 sq. ft. F\FWIXWJHJN[JINS+> 04 GODREJ PROPERTIES LIMITED ANNUAL REPORT 2017-18 .VKYLQ)2*4\TIHP (J[\HSPTHNL (J[\HS0THNL 05 GODREJ PROPERTIES LIMITED ANNUAL REPORT 2017-18 COMPANY INFORMATION 2W&IN',TIWJO 9,.0:;,9,+6--0*, Chairman Emeritus ,TIWJO4SJth Floor, +09,*;69:! 5NWTOXMFSFLFW*FXYJWS*]UWJXX -NLM\F^;NPMWTQN *FXY 2W5NWTOXMF,TIWJO Mumbai – 400 079 Executive Chairman 5MTSJ <JGXNYJ\\\LTIWJOUWTUJWYNJXHTR Mr. Mohit Malhotra (.312-51( 2FSFLNSL)NWJHYTW (MNJK*]JHZYN[J4KÁHJW 2W/FRXM^I3,TIWJO 9,.0:;9(9 ;9(5:-,9(.,5; 3TS*]JHZYN[J)NWJHYTW 0FW[^(TRUZYJWXMFWJ5WN[FYJ1NRNYJI 2W3FINW',TIWJO µ0FW[^8JQJSNZR9T\JW'¶ 3TS*]JHZYN[J)NWJHYTW 5QTY3T ,FHMNGT\QN Financial District, Nanakramguda, Mr. Amit B. Choudhury Serilingampally, Independent Director -^IJWFGFI³9JQFSLFSF 2W0JPN')FINXJYM Independent Director :;(;<;69@(<+0;69: 2WX1FQNYF),ZUYJ '87 (T115 Independent Director 5th+QTTW1TIMF*]HJQZX Apollo Mills Compound, 2W&RNYF[F2ZPMJWOJJ N. M. Joshi Marg, Mahalaxmi, Independent Director 2ZRGFN )W5WNYFR8NSLM Independent Director )(52,9: State Bank of India 2W5WFSF^;FPNQ Independent Director .)'.'FSP1YI -)+('FSP1YI *647(5@:,*9,;(9@ */0,-3,.(3 6--0*,9 Mr. Surender Varma 06 GODREJ PROPERTIES LIMITED ANNUAL REPORT 2017-18 .VKYLQ7SH[PU\T2VSRH[H (J[\HSPTHNL (J[\HS0THNL 07 GODREJ PROPERTIES LIMITED ANNUAL REPORT 2017-18 AWARDS & RECOGNITION (^HYKZYLJLP]LKI`.VKYLQ7YVWLY[PLZPU-@ .VSKLU7LHJVJR5H[PVUHS8\HSP[`(^HYKµ Institute Of Directors India's 27th World Congress on Business Excellence and Innovation )LZ[+L]LSVWLYVM[OL`LHY Construction Times Builders Award 2017 9LJVNUP[PVUMVYZOHWPUN[OLPUK\Z[Y`JYLH[PUN IFC Times Network Strategy Award \UPX\LWVZP[PVUPUNHUKHS[LYPUN[OLIHZPZVM JVTWL[P[PVUMVY*VUZ[Y\J[PVU9LHS,Z[H[LHUK :[LLS 9LHS,Z[H[L*VTWHU`VM[OL@LHY &5&(.SXNIJW 0UKPHZ;VW)\PSKLYZ(^HYK CWAB Awards 2017 9\UULYZ\W[YVWO`MVY,_JLSSLUJLPU (54&\FWIX 7YVJ\YLTLU[:\Z[HPUHIPSP[` +L]LSVWLYVM[OL`LHY ,TQIJS'WNHPX&\FWIX :LJ[VYHS7YVJ\YLTLU[,_JLSSLUJL*VUZ[Y\J[PVU 5th5WTHZWJRJSY*]HJQQJSHJ&\FWIX 9LHS,Z[H[L )LZ[9LHS,Z[H[L+L]LSVWTLU[7HY[ULY0UKPH Business Vision Awards 2017 6\[Z[HUKPUN*VU[YPI\[PVUPU9LHS,Z[H[L:LJ[VY 5th National Conference Resident Welfare &XXTHNFYNTSX 3(7<&*]MNGNYNTS2ZRGFN 3LHKLYPU:\Z[HPUHISL9LHS,Z[H[L+L]LSVWTLU[Z ,WTMJ-ZWZS7JUTWY 0UKPHZ4VZ[;Y\Z[LK9LHS,Z[H[L)YHUK IBB Awards 2018 +L]LSVWLYVM[OL@LHY 6ZNPW-TRJX7JFQY^+FHY&\FWIX ,_JLSSLUJLPU9LHS,Z[H[Lµ0UKPH Corporate Insider .VKYLQ7YVWLY[PLZ/9[LHT ,TQI KTW µ:3.6:* -7 .3.9.&9.;*¶ th Annual (TWUTWFYJ(TQQFYJWFQF\FWIXG^57(. 08 GODREJ PROPERTIES LIMITED ANNUAL REPORT 2017-18 AWARDS & RECOGNITION 7YVQLJ[ 0UKP]PK\HS(^HYKZYLJLP]LKPU-@ .VKYLQ6UL=PROYVSP *RJWXTS(ZUF\FWIKTW.,'(,WJJS3J\'ZNQINSLX(FYJLTW^ .SYJWSFYNTSFQ *SLNSJJWNSL 8THNJY^ TK 3TWYM &RJWNHF .*83& MFX UWJXJSYJI &<& 1NLMYNSL )JXNLSJWX &\FWI TK 2JWNY KTW YMJ ,TIWJO4SJUWTOJHYNSWJHTLSNYNTSTKRJWNYTWNTZXHTSYWNGZYNTSYTQNLMYNSL design .73+LZPNU:[\KPV /TNSY \NSSJW 9MJ ,TQI 5WN_J FY >ZFS >J &\FWI .SYJWSFYNTSFQ Competition 2017 /TNSY\NSSJWHTRRJSIFYNTSNSYMJ-JWNYFLJ&WHMNYJHYZWJHFYJLTW^FY the Grohe NDTV Design & Architecture Awards 2017 .VKYLQ.HYKLU*P[`(OTLKHIHK 'JXY9T\SXMNU5WTOJHY&\FWITKYMJ>JFW(TSXYWZHYNTS9NRJX Awards 2018 .VKYLQ6YPNPUZ=PROYVSP .SST[FYN[J 2FWPJYNSL (FRUFNLS TK YMJ >JFW &XNF 7JFQ *XYFYJ Excellence awards 2017 .VKYLQ7\UL .SST[FYN[J(TSHJUY5WTOJHYTKYMJ^JFW,TQIJS'WNHPX&\FWIX .VKYLQ0UÂUP[`7\UL 8NQ[JWKTW·5WN[NQJLJXFWJST\02&\F^¸HFRUFNLS22&82&79.*8 India Awards 2017 .VKYLQ7YHUH7\UL0.VKYLQ 3FYNTSFQ8FKJY^(TZSHNQ 0UÂUP[`7\UL .VKYLQ<UP[LK)HUNHSVYL 8FKJY^&\FWI9MJ8FKJY^.SXYNYZYJ )NWJHYTWTK+FHYTWNJX0FWSFYFPF .VKYLQ:\TTP[7OHZL0.\YNHVU (.)(,WJJS5JWKTWRFSHJ&\FWI(JWYNKNHFYJ .VKYLQ7SH[PU\T2VSRH[H 'JXY1Z]ZW^7JXNIJSYNFQ5WTOJHY&XNF5FHNKNH5WTUJWY^&\FWIX 'JXY1FSIXHFUJ&\FWI&XNF5FHNKNH5WTUJWY^&\FWIX 9MJ9NRJX7JFQY^.HTS'JXY8ZUJW1Z]ZW^5WTOJHYX :QYWFQZ]ZW^XJLRJSYNSYMJJFXY_TSJth(3'(&<&&?7JFQ*XYFYJ Awards .VKYLQ.VSK*V\U[`)HUNHSVYL 4ZYXYFSINSL (TSYWNGZYNTS NS ,WJJS 'ZNQINSL 5WTOJHY 7JFQ *XYFYJ Category at the 7th*5(<TWQI&\FWIX .SST[FYN[J(TSHJUYTKYMJ>JFWth7JFQY^5QZX*]HJQQJSHJ&\FWIX 2017 (South) 7ZSSJW XZUYWTUM^ZSIJWYMJHFYJLTW^,WJJS5WTOJHYTKYMJ>JFW Construction Week India Awards 2017 .VKYLQ.YLLUZ7\UL ,TQIKTW·+JJQ9MJ,WJJSX¸HFRUFNLS22&82&79.*8.SINF&\FWIX 8NQ[JWFY.)2&KTWGJXY)NLNYFQ.SST[FYNTSNSYMJ'JXY'FSSJWX Rich Media With or Without Video category for its campaign "Feel the Greens" 09 GODREJ PROPERTIES LIMITED ANNUAL REPORT 2017-18 AWARDS & RECOGNITION 7YVQLJ[ 0UKP]PK\HS(^HYKZYLJLP]LKPU-@ .VKYLQ7YHRYP[P2VSRH[H .SYJLWFYJI9T\SXMNU5WTOJHYTKYMJ>JFWth7JFQY^5QZX*]HJQQJSHJ Awards EAST 2018 Silver at IDMA 2017 for best Digital Innovation in the Best Digital Direct Response Campaign category for its campaign "Feel the Greens" .VKYLQ.LULZPZ2VSRH[H 'JXYHTRRJWHNFQUWTOJHYNSYMJ*FXY?TSJth(3'(&<&&?7JFQ Estate Awards .VKYLQ(a\YL0.VKYLQ0UÂUP[`0 (TSXYWZHYNTS -JFQYM 8FKJY^ *S[NWTSRJSY (4)*. th CIDC ;OL;YLLZ0.VKYLQ(YPH0.VKYLQ Vishwakarma Awards 0.VKYLQ<UP[LK (KP.VKYLQ ,QTGFQ1JFIJWXMNU&\FWI:8.SINF'ZXNSJXX(TZSHNQ 7PYVQZOH.VKYLQ 2TXY 9WZXYJI (*4¸X TK <TWQI (TSXZQYNSL 7JXJFWHM (TWUTWFYNTS <(7(1JFIJWX&XNF 5WNIJTK.SINF,QTGJ1Z]ZWNr)rHTIr &XNF4SJ2TXY.SKQZJSYNFQ.SINFSX:SIJW 4VOP[4HSOV[YH *HTSTRNH9NRJXZSIJWQNXYTK (U\IOH].\W[H 5JWXUJHYN[JZSIJWNSYMJFWHMNYJHYZWJHFYJLTW^ 9\OPL7HUKL XZUJWQJFIJWXNS-7G^\TWQI-7)HTSLWJXX 010 GODREJ PROPERTIES LIMITED ANNUAL REPORT 2017-18 .VKYLQ4LYPKPLU.\YNHVU (Y[PZ[ºZPTWYLZZPVU5V[HUHJ[\HSZP[LWOV[VNYHWO