MANAGEMENT'S DISCUSSION & ANALYSIS

INDUSTRY OVERVIEW

Global Economic Scenario

The global economy grew at a slightly faster pace in 2014, as a modest revival in the euro zone and a pick-up in India helped offset slowdowns in China and Japan. Growth picked up, albeit marginally, from 2.5% to 2.6%, mainly driven by momentum in United States and U.K. It is seen shifting upwards to an average of 3.3% between 2015 and 2017, brought about by an upward shift of growth in Gross Domestic Product (GDP) of the developed economies from 1.8% to 2.2% and with developing economies accelerating from 4.8% to 5.4%. The combined gross domestic output of the Group of 20 largest economies, which accounts for 90% of the globa economic output, expanded 3.4% in 2014, up slightly from 3.2% in 2013, aided by a return to growth in the Eurozone. Global growth is forecast to rise moderately to 3.5% in 2015 and 3.7% in 2016, the net positive being a sharp decline in oil prices. The International Monetary Fund (IMF) projects growth in emerging markets and developing economies to remain broadly stable at 4.3% in 2015 and increase to 4.7% in 2016. Moving ahead, across nations, the mandate to Governments is to control inflation, improve fisca prudence and sustainable growth, with concerted efforts being on job creation through public and private investments.

India's Macro-Economic Environment

The Indian economy is one of the largest economies in the world with a GDP at current prices of Rs. 127 trillion for financial year 2014. India continues to be one of the most promising economies to sustain a strong growth in its GDP. The current growth in GDP, as per the new series, places it at 7.4% for FY2015 as against a revised past trend of 5.1% and 6.9% in FY2013 and FY2014, respectively. We foresee an upward trend in economic growth in FY2016. Brighter prospects in India owe mainly to the fact that the economy stands largely relieved of the vulnerabilities associated with an economic slowdown, persistent inflation, elevated fiscal deficit, slackening domestic demand, external account imbalances, and the oscillating value of the rupee in financial year 2012 and financial year 2013. During FY2015, the Indian  economy stood up to the challenges of consumer inflation, weakening of Indian rupee, widening current account and fiscal deficits and an unstable global environment. It is now on a firm path of a revival with a wave of optimism. The strong uptick in GDP growth was accompanied by a receding inflation - at 5.1% in January 2015, considerably lower than double-digit figures in 2013. Current account deficit and fiscal deficit, the prime causes of concern in 2013, are now within manageable levels.

The Reserve Bank of India (RBI) projects an improvement in investment climate with better governance, transparent, effective and efficient regulatory and legal regimes, improvement in technical efficiency, institutions improvements, improved labour mobility, and other such reforms. A boost is also expected from lower policy rates and stable commodity prices, with India becoming an attractive destination among peers. Irrespective of differences in the estimation method, the consensus is that GDP will maintain an upward movement by a minimum of 100 basis points year-on-year, if Government spending and policy initiatives remain on track. With a high growth potential, India is seen as a bright spot in the global economic landscape. (Source: RBI's Annual Report 2013-2014)

REAL ESTATE SECTOR

The significance of India's real estate sector in propelling growth of the Indian economy is undeniable. In FY2014, the sector contributed 5.9% to India's GDP and 5% to the total foreign direct investment (FDI) inflow. Real estate and construction sector is credited as India's second-largest employment generator, second only to agriculture. India's real estate sector has come a long way, becoming one of the fastest growing markets in the world and the most globally recognized sector. The growth of India's real estate industry can be attributed to a growing population in India, rising disposable incomes and rapid urbanization. The market size of India's rea estate industry is projected to touch $180 billion by 2020, according to Cushman & Wakefield, a globe private commercial real estate services company.

The real estate market in India can broadly be divided into retail, residential, commercial and hospitality segments. FY2014 was a mixed year from a real estate point of view, with a stable government in place which announced a series of reforms and policy initiatives to stimulate growth. In CY2014, the residential segment witnessed subdued demand, primarily due to high prices and rising financing costs leading to many interested home buyers sitting on the fence. Commercial real estate market fared well and a new government at the Centre led to an improvement in the overall economic sentiment and better absorptions. The retail real estate segment witnessed subdued performance with a total of approximately 1.7 million sq. ft. added during 2014 in the top 8 cities in India. Mall rentals remained stable across existing and new malls. (Source: Cushman & Wakefield)

Key Drivers of the Real Estate Sector

Economic growth

GDP growth has a direct bearing on real estate demand by putting more money in the hands of people. This also leads to expansion of business, eading to increased commercia and retail real estate demands. As discussed above, India is on course to be amongst ~the fastest growing major economy in the world over the next two years.

Interest rates and credit off-take rate cut cycle has already been kickstarted with the RBI reducing the benchmark repo rates by 50 basis points since January 2015. This has resulted in the lowering of base rates by banks and is expected to increase housing loan demand. On June 2, 2015, the RBI has announced a reduction in the policy repo rate under the liquidity adjustment facility ("LAF") from 7.5% to 7.25% with immediate effect.

Increase in per capita income

GDP per capita (at current prices) in India has grown from around US$318.01 for the year 1991 at the time of liberalization to US$1,808.41 (IMF staff estimate) for the year 2015 (Source: International Monetary Fund, World Economic Outlook Database). This increase in GDP per capita has created increasing wealth and positively affected disposable incomes, thereby increasing the demand for real estate. This has had a significant investment multiplier effect on the economy, leading to increasing consumerism and wealth creation, and positively impacting savings. A similar growth trajectory is observed in purchasing power parity adjusted income.

Household savings, as a percentage of GDP, are projected to increase from 23.2% in 2011 to 2012 to 25.2% in 2016 to 2017. Increasing income and rates of savings increase affordability for the genera population, positively impacting the real estate market.

Increase in Foreign Direct Investment

Overall, India attracted FDI of approximately US$ 36,860 million in financial year 2013, US$ 36,396 million in financial year 2014 and US$ 44, 877 million in financial year 2015, as compared to an average of US$ 24,563 million per year from financial year 2001 through financial year 2015.

Enhanced role of mortgage financing

Over the last five years, a significant portion of new land acquisitions, particularly in the larger cities in India, has been financed through banks and financial institutions. This has been aided by a decline in interest rates and broader availability of financing products, due to aggressive marketing and product development by financial institutions. According to the RBI, the gross personal loan credit outstanding to the housing sector (including priority sector housing) from scheduled commercial banks has grown from Rs. 4,567.00 billion at the end of March 2013 to Rs. 6,309.00 billion in March 2015. (Source: RBI -Sectored Deployment of Bank Credit - March 2015) However, institutions credit for housing investment is  well below that of countries such as China, Thailand, and Malaysia despite growing at a CAGR of about 19.0% per annum, as per the Union Budget for 2014-2015.

RETAIL SECTOR

The Indian retail sector has come a long way in the last decade on the back of robust economic growth, rising disposable incomes, urbanization and increasing consumerism and discretionary spending. Since 2005, the retail industry expanded in a major way, with large Indian corporate and brands undertaking significant investments to increase their brsence across major cities and with major international brands making a beeline for India, attracted by a large customer base and tremendous potential. With metros and Tier 1 cities maturing as markets, the next phase of expansion is now expected be driven by large-scale penetration in Tier 2 & 3 cities.

The Indian retail market is expected to witness rapid growth from being a $600 billion industry in 2015 to $1 trillion by 2020. Although the Indian market currently is brdominantly unorganised which commands 90% of the total share, the modern retail pie is growing at a robust pace with a rapid shift in consumer tastes. Organized retail is expected to grow at 25% CAGR from $60 billion  in 2015 to $180 billion in 2020, constituting nearly 18% of the retai market size in 2020. This imbrssive growth in modern retail is mainly driven by increasing per capita income and urbanisation, rapid consumer evolution in the form of greater brand consciousness, improving lifestyles and a need for modern shopping environment. (Source: BCG Report)

Being one of the largest and fastest growing markets, the Indian retail industry is on the radar of large-scale international retailers for its immense potential. The Indian retail industry in the single brand segment has received foreign direct investment (FDI) inflows to the tune of $275.38 million during April 2000 to January 2015, according to the Department of Industrial Policies and Promotion (DIPP).

In 2014, the retail market witnessed new infusion of 1.7 million sq. ft. across top 8 cities. While leasing activities remained stable, vacancy levels witnessed a marginal drop of 0.2% with average vacancy levels standing at 14.3%. (Source: Cushman & Wakefield) The demand for quality mall space continues to be strong, with various international brands and high-end retailers scouting for retail spaces in prime locations and high streets to attract target customers. However, many poor quality malls in non-prime locations have either closed down or are on the verge of closure owing to an oversupply of ordinary mall space. With globally recognised retailers such as GAP, Wacoal, and such others, looking to foray into India in 2015, while the existing international and Indian brands looking to expand their footprint, quality mall space is expected to witness sharp demand. In addition to metros, mall culture has now fully been adopted by Tier

1 cities and with growing brand consciousness, improving lifestyles and a rise in aspiration levels, Tier

2 & 3 cities should also witness considerable traction in development of quality mall spaces with increased penetration of organized retail.

Mumbai Retail

Mumbai has a total mall space of more than 15 million square feet. Expected new mall space for the city of Mumbai is the lowest among Delhi-NCR, Bengaluru, Chennai, Pune, Kolkata, Hyderabad and Ahmedabad. In 2014, rental values remained largely stable across prominent malls and established high street locations. 2015 demand for retail space is expected to gradually improve and domestic brands especially from the F&B segment are likely to continue as the prime occupiers for the space in the city. (Source: CBRE)

PUNE RETAIL

Pune has a total mall space of close to 7 million square feet. The modern retail space in Pune is almost equally divided between malls and shopping streets, however, the modern retail landscape of Pune is highly skewed towards the Central and Eastern part of the city. In 2014, the retail leasing activity in the city remained stable as enquiries for retail space increased with large number of brands zeroing in on the city for their 2015 investment plans. In 2015, the city should see an addition of 1 million square feet of mall space and leasing activity should remain buoyant. (Source: CBRE)

BENGALURU RETAIL

Bengaluru has a total mall space of close to 7.5 million square feet. The Bengaluru retail market is characterized by a fair distribution of modern retail, primarily as a result of rising income levels of consumers. Approximately 0.70 million square feet of new mall space was added in the city during 2014. Close to 2.5 million square of new mall space is expected to be added during 2015. Addition of this space is expected to spur demand and increase retail space transactions during the year. (Source: CBRE)

Chennai Retail

Chennai has a total mall space of close to 5 million square feet. Chennai has among the lowest  expected new mall space addition over the next few years when compared to Delhi-NCR, Mumbai, Bengaluru, Pune, Kolkata, Hyderabad and Ahmedabad. The retail market in Chennai is expected to gain traction during 2015 owing to strong demand for retail space across high street locations. Close to 0.7 million square feet of mall space is expected to become operational in 2015. (Source: CBRE)

RESIDENTIAL SECTOR

The residential sector experienced slow growth, primarily due to an uncertain political environment brvailing in first half of2014, high prices and elevated financing costs, leading to subdued demand. An atmosphere of cautious optimism brvailed among home buyers. Developers also failed to soften their rates significantly due to escalating input costs. Across the top 8 cities, the number of new residential launches were ~1, 53,070 units.

However, the medium and long-term growth outlook of India's housing sector remains strongly backed by positive demographics, rising disposable incomes, expected softening of interest rates and moderation in inflation. The demand for housing continues to outnumber supply. The current housing shortage in India is estimated to be ~60 million units, with ~110 million houses needed to be developed by 2022 to ensure universal housing. Investments to the tune of $2 trillion or about $250 billion are needed until 2022, with urban housing accounting for 80-85% of this investment. (Source: KPMG)

Pune Residential

Pune witnessed new launches of 16,150 units in 2014 majorly in the mid-end segment, which accounted for 78% of the total launched units during the year. The demand was largely driven by people employed in IT and ITES sectors. The developers also brferred the mid-segment, as it caters to a wider clientele base. Significant construction activity was noted in areas along the NH4 bypass such as Wakad, Baner, Balewadi, and such others, due to their proximity to the commercial hubs. Peripheral locations such as Sus and Pashan also witnessed significant  quantum of construction activity. There was an improvement in the overall sentiment with a pick-up in demand in the second half. Going forward, residential launch activity is projected to improve marginally, with a significant quantum of "under construction" projects leading to a lower pipeline comparatively. Capital values in peripheral locations are seen witnessing a rise due to existing low base and improvement in demand.

Bangalore Residential

The city of Bengaluru witnessed new launches of 40,760 units in 2014. Mid-end segment offerings continued to dominate with strong demand from mid-level executives of IT & ITeS companies acting as catalyst for robust launches. Southern submarket and eastern submarket witnessed highest concentration of projects due to consistent end-user demand from IT & ITeS employees. Availability of adequate social infrastructure and proximity to workplaces has been instrumental in sustaining buoyant demand for these locations. Northern submarket also witnessed significant construction activity in the second half. Capital values increased in the Southern & Eastern markets with strong brference for locations contributing to the uptrend. Going forward, new launches are expected to gain momentum and rental values across all submarkets are expected to remain steady. Capital values are expected to apbrciate in Northern, Eastern and Southern submarkets owing to continued demand from IT & ITeS working population.

Chennai Residential

Chennai witnessed robust increase in new launches, although delays in obtaining project approvals led to deferment of some project launches. Total number of new launches stood at 17,500 units, with the mid-end segment offering accounting for a lion's share at 87%. Rajiv Gandhi Salai, Grand & Southern Trunk (GST) Road & Suburban (South) were prominent locations that witnessed maximum concentration of launches primarily due to it being a continually brferred location with IT & ITeS executives owing to proximity to IT & manufacturing hubs. Some of the popular locations for mid segment such as Guindy, Perungudi, Ashok Nagar and Poonamallee High Road witnessed project launches catering to the high-end segment as enhanced connectivity and infrastructure upgrades have rendered these locations attractive for senior executives. Going ahead, the city is expected to see traction, accompanied by better absorption rates. This is on account of consistent demand from the IT working population, new launches in Q1 of 2015 which stood at 3,200, twice of that in Q4 of 2014.

COMMERCIAL SECTOR

2014 can be termed as an eventful year for the commercial real estate segment in India. The first half was primarily characterized by politica uncertainties, economic slowdown, high inflation and interest rates, subdued demand and a weak overall market sentiment. The positive policies, initiatives and reforms introduced by the new government led to an improvement in the overall sentiment. A pick-up in GDP growth, manageable current account deficit and fiscal deficit as well as moderation in inflation, led to companies revisiting their office space requirements and reviving their expansion plans, resulting in a significant ramp-up in demand and absorptions.

Around 32.5 million sq. ft. of office space was absorbed in 2014 across top 8 cities, exceeding 2013 absorption levels by 18%. Among the top 8 cities, Bengaluru witnessed the maximum demand, followed by NCR and Pune. Technology companies were key demand drivers for Grade A properties. Key announcements such as pass through status for REITs, rationalisation in FDI norms, creation of smart cities, among others, are encouraging signs and have further boosted sentiments.

Going forward, as economic revival picks up pace, demand for office rea estate is expected to gain traction. Capital and rental values may also see a moderate increase and rentals for Grade A properties are expected to see an upward brssure, with vacancy levels most likely to move downwards.

Mumbai Commercial

The total net absorption in Mumbai in 2014 remained stable at 4.46 million sq. ft. Office space leasing and absorption was mainly driven by the BFSI segment, followed by Engineering & IT & ITeS. Mumbai's commercial market saw a fresh supply of 5.9 million sq. ft. and overall vacancy levels fell to 17.2% in 2014 from 19.7% in 2013. The city received a major infrastructure boost with completion of the first Metro Rail connecting Versova, Andheri and Ghatkopar on 11.4­km stretch, greatly enhancing connectivity and providing swift commute. Going forward, demand and absorption in commercial space is set to improve. Rentals in popular commercial hubs such as Lower Parel, Andheri and Goregaon will see an uptrend in the upcoming months.

Quality office developments are in strong demand and rentals are likely to increase, with occupiers willing to pay a brmium for quality spaces.

Pune Commercial

The Pune market remained robust in 2014, with net absorption of 3.57 million sq. ft., a rise of 20% over 2013 levels. This imbrssive rise in office space off-take was brdominantly led by IT & ITeS organisations, followed by BFSI and engineering segments. Approximately 2 million sq. ft. of fresh supply was infused during the year with overall vacancy rates standing at 22.1%. Average rentals also witnessed an increase during the year. Looking ahead, significant quantum of fresh supply is expected to hit the market in 2015 in tandem with improving absorptions. Vacancies may witness a slight rise due to robust fresh supply, despite improvement in absorptions, with IT & ITeS sector continuing to lead market activity in near future. Rentals are expected to be slightly higher in certain submarkets due to quality developments being delivered at higher price points.

Foreign Direct Investment (FDI)

The construction development sector received total FDI inflows of Rs 61.8 billion in 2014. The new Government has taken adequate measures towards reviving the real estate sector. It has created a more transparent and business-friendly  environment to attract foreign capita and meet demand for housing and quality commercial spaces.

Real Estate Reforms

The Government initiated certain regulations in 2013. The new government made certain amendments to these regulations in order to safeguard the interests of buyers, ensure transparency and encourage investments to create a healthy real estate ecosystem, one that is beneficial to all concerned stakeholders.

Key Amendments to Real Estate Bill, 2013

The Government plans to bring the amended Real Estate Bill, which seeks to protect the interests of buyers and ensure transparency. The Union Cabinet approved amendments to the bill, paving the way for regulation of realty business. The applicability of the Bill would be extended to the commercial real estate sector as well. The government is now looking to pass the Bill in the parliament.

• The amendments seek to make it mandatory for all developers, including those of housing projects, to keep minimum 50% of funds collected from buyers in an escrow account to meet construction costs.

• The Cabinet has extended applicability of the Bill to commercial real estate as well

• On-going projects that have not received completion certificates have also been brought under the purview of the Bill and such projects will need to be registered with a proposed regulator within three months.

• Promoters will not be allowed to change plans and structural designs without the consent of 2/3rd of the consumers in a project

• Real estate agents will be punishable for non-compliance of orders of the regulatory authority. Appellate Tribunals will also be set up under the proposed law.

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Ordinance, 2015 The Government promulgated the new land bill in 2015 to promote development of rural areas and boost infrastructure, manufacturing and employment, while safeguarding interests of farmers. The government is currently awaiting clearance from both the houses of the parliament.

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Ordinance, 2015 was promulgated on April 3, 2015. The Ordinance amends the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, which regulates the acquisition of land for public purposes in the country.

Real Estate Investment Trusts (REITs) & Infrastructure Investment Trusts (InvITs)

The Government, in the Union Budget 2014-15, announced the following with respect to REITs and InvITs:

• Rationalisation of capital gains regime for sponsors exiting at the time of listing of units of REITs and InvITs

• Rental income of REITs from their own assets to have "pass through facility".

This has eased the path for listing of Real Estate Investment Trusts. This move is likely to boost REITs listing in the country, allowing faster and smoother exits to investors. These two trusts, which can be listed on stock exchanges, will help channelise both domestic and overseas investments into real estate and infrastructure projects in the country and speed up construction activity, leading to timely project delivery. Implementation of REITs will be the game changer for investors and real estate developers.

Smart Cities, Affordable Housing and Make in India

The Union Cabinet of India chaired by Prime Minister Narendra Modi approved a mission of building 100 smart cities, wherein each selected city would get central assistance of D 100 crore per annum for a period of five years. This mission intends to promote adoption of smart solutions for efficient use of available assets, resources and infrastructure with the objective of enhancing the quality of urban life and providing a clean and sustainable environment. Further, the Central Government has proposed to set up a mission on low cost affordable housing to be anchored in the Nationa Housing Bank. The intention of the government through this mission is to endeavour to have housing for all by 2022 by extending additiona tax incentive on home loans to encourage people, especially the young, to own houses. Such initiatives are likely to have significant positive impact on the real estate sector.

hospitality sector

India is known for its luxurious hotels and famed hospitality, with many of the country's hotels being included amongst the world's best hotels. It also plays a significant role in the Indian economy, contributing nearly 6.2% to India's GDP and generating 4.9% of total employment in 2013  (Source: WTTC). Hospitality sector is the third largest foreign exchange earner in India. The estimated size of the Indian hospitality industry stood at $38 billion in 2014. Source: Indian Brand Equity Foundation (IBEF)

India is also growing in popularity among foreign travellers, with 30 world heritage sites, 25 bio-geographical zones and world-class hotels. The number of foreign tourist arrivals in India has been growing steadily for the last 3 years. It touched 7.46 million in 2014, a 7.1% increase over that in 2013. (Source: IBEF) India's foreign exchange earnings (in rupee terms) from tourism stood at Rs 1,201 billion, up from Rs 1,058.4 billion registering 11.5% growth. (Source: IBEF) Domestic travel spending, which constitutes ~81% of the tota travel spending, is expected to grow almost 10-fold from $1,098 billion in 2013 to $9,657 billion in 2024. (Source: WTTC) Hotel demand in 2014-15 improved, resulting in increased occupancy levels of 59.6%, as compared to 57.1% in 2013-14. Average day rate remained flat at Rs 5,676 in 2014-15, while RevPAR (Revenue per available room) increased to Rs 3,405 in 2014-15, up from Rs 3,246 in 2012-13 on the back of improved occupancy levels.

Mumbai Hospitality

Mumbai is India's financial capita and home to top stock exchanges - the Bombay Stock Exchange, the National Stock Exchange and India's apex bank, the Reserve Bank of India. Most top Indian corporate houses, Indian and multi-national fund houses, investment banks and brokers have their corporate headquarters here, attracting a large influx of business travelers. A major portion of hotel demand in the city is contributed by the business and transient segment at almost 70%. Mumbai is also famous for Bollywood, its beaches, Gateway  of India and Marine Drive, which attract a good quantum of leisure travellers as well. In 2014, the city witnessed the start of the operations of Mumbai Metro Line 1 (Versova-Andheri-Ghatkopar Corridor) and the Eastern Freeway, connecting the Central Business District (to Chembur brviously) to Ghatkopar, enhancing the city's connectivity. During H1 of 2014, Mumbai witnessed an occupancy rate of 64% and an ADR of US$ 111.The outlook for Mumbai's hotel industry in H2 of 2015 is expected to be positive on the back of improving occupancy and a modest increase in ADR, with  a stable government at the helm and growth revival. Demand for MICE in the city is expected to be strong and the proposed Reliance Convention Centre in Bandra-Kurla Complex spanning 18.5 acres will definitely further augment demand for MICE in the city. The city is likely to witness an addition of over 10,500 keys in the next five years. (Source: C&W)

Agra Hospitality

Agra is the city of the magnificent 'Taj Mahal'. The Taj is the tourism icon of India and therefore a "must see" destination for any domestic or international tourist.

Apart from Taj, the city is home to many other splendid Mughal-era buildings, most notably of which are the two UNESCO world heritage sites - Agra Fort and Fatehpur Sikri. This makes Agra a sought-after leisure destination in India for its unparalleled heritage and monuments from a seasonal tourist destination,

In the last couple of years, there has been significant improvement in the connectivity between Delhi and Agra, with the advent of six-lane and 165 Kms. long Yamuna Exbrssway which has cut down the travel time between Delhi and Agra to just 2.5 hours. This has majorly transformed the business environment for Agra's hotel industry, as the city has now become a brferred destination for MICE business (meetings, incentives, conferences and Exhibitions), weekend getaways and also destination weddings. The occupancies have shown an improvement of 2.9% in 2013-14 to over 60%. The Average Room Rate (ARR) also registered a moderate growth of 2.1% in 2013-14 over 2012-13. As per industry discussions, the city is seeing increased quality business over the weekends with more spending power and the average stay has gone up to two nights. The improvement in  connectivity infrastructure has virtually expanded the domestic market base for the city. People from Punjab, Chandigarh and Haryana now consider Agra as a weekend destination, which has drastically increased the number of overnight travelers. Going ahead, the outlook for India's hotel industry stands strong with robust demand expected from leisure, MICE and weekend segments. Tourist inflow is also expected to gain enough strength, with Agra being now included in 'Golden Triangle tourist circuit.' (Source: Hospitality Biz India

COMPANY OVERVIEW

We are one of India's leading retai asset developers, owners and operators, with one of the largest retail portfolios among listed companies in India, consisting of nine retail properties comprising approximately 2,000 stores in some of India's largest cities.

For the financial years 2015, 2014 and 2013, our total income was Rs. 16,845.58 million, Rs. 14,875.76 million and Rs. 5,219.75 million, respectively, our total net profit for the same periods was Rs. 354.29 million, Rs. 1,284.62 million and Rs. 841.53 million, respectively, and EBITDA was Rs. 7,619.61 million, Rs. 6,784.25 million and Rs. 2,630.76 million, respectively.

Our existing real estate development portfolio primarily comprises retail-led, mixed-use developments in prime locations, together with a number of other standalone residential and commercial office developments. Our developments include retail and entertainment, commercial, hotel and residentia properties in Mumbai, Chennai, Bengaluru, Pune, Lucknow, Bareilly and Agra. Our operations typically encompass most aspects of real estate development, including land acquisition, planning (including liaison and approvals), execution and  marketing of projects, through to the management, maintenance and sales of the completed developments. We were one of the first real estate developers in India to transform a textile mill property into a modern, multi-use retail-led integrated development - High Street Phoenix and Palladium in Lower Parel, Mumbai. This development is comprised of a mall of approximately 0.74 million sq. ft. of Leasable Area consisting of retail, entertainment and commercial office space of approximately 0.13 million sq. ft of Leasable Area (net of areas let out on long leases), the Palladium Hotel, a 389 key luxury hotel, and Phoenix Towers, residential apartment towers built in partnership by the Company, as well as parking space. We believe High Street Phoenix was amongst the first large format, retai led, mixed use centre developments in India. Our Company's wholly owned subsidiary, Pallazzio Hotels & Leisure Limited, has entered into agreements with Starwood Hotels & Resorts India Private Limited and its affiliates for the management and re-branding of the hotel from the Palladium Hotel to The St. Regis, Mumbai, and subject to compliance with the terms of the agreement, we expect re-branding to occur in September 2015.

Our Phoenix Market City projects are conceptualised as large scale, retail-led, mixed-use, real estate developments which we believe are in prime locations and in close proximity to high-catchment areas. We own and operate several malls, through our Subsidiaries and Associates, under the brand "Phoenix Market City" in Mumbai, Chennai, Bengaluru and Pune (one mall in each city). Our Phoenix Market City developments encompass retai and entertainment space, including food and beverage and multiplex facilities, outdoor space and, subject to market demand, include one or more of commercial offices, hote or residential apartments for sale. These projects seek to optimise a combination of retail, entertainment and commercial and retail clients in order to attract a wide spectrum of consumers. We also operate malls under the brand name of "Phoenix United", with two operational projects in Lucknow and Bareilly, respectively. We believe that we have achieved reasonable success in each of our operational developments.

Our real estate development portfolio comprises of four types of real estate developments: Retail, Commercial ,Residential and Hospitality.

We currently have a portfolio of approximately 17.88 million square feet of constructed areas in our Completed and Ongoing projects, consisting of:

• eight Completed and one Ongoing retail developments,

• four Completed, one Ongoing and one Planned commercial office projects,

• one Completed, five Ongoing and Planned residential projects, and

• two Completed hotel projects.

Several of our Planned projects will be expansions of our existing developments.

Our retail development portfolio consists of approximately 6.16 million sq. ft of Leasable Area in Completed and Ongoing projects. Our commercial office development portfolio consists of approximately 1.82 million sq. ft of Saleable and Leasable Area in Completed, Ongoing and Planned projects (including areas already sold). Our residential development portfolio consists of approximately 5.51 million sq. ft of Saleable Area in Ongoing and Planned projects, of which we have sold approximately 1.65 million sq. ft.

We have received several awards for our retail developments including "Retailer of the Year (Mall) - 2015", "Shopping Center of the Year (Palladium Mall) - 2015" from CMO Asia, and "Among India's Best Existing Neighbourhood Shopping Malls, 2013-2014" from Estate Avenues for our High Street Phoenix and Palladium development, "Most

Admired Shopping Centre of the Year, 2015" from CMO Asia and "India's Best Existing Neighbourhood Shopping Mall, 2013-2014" from Estate Avenues for our Phoenix Market City Mumbai development, "Most Admired Shopping Centre of the Year Non Metro West, 2013" from Estate Avenues for our Phoenix Market City Pune development and "Best Malls & Shopping Centre of the Year 2015 - Operational Mixed Use" from Estate Avenues for our Phoenix Market City Chennai development. We have also won several awards for our One Bangalore West, Kessaku and Fountainhead residential developments

Food and Beverage

We are seeking to build a food and beverage portfolio of our own outlets through our hospitality services focused Subsidiaries, Bellona Hospitality Services Private Limited and Savannah Phoenix Private Limited (which became a Subsidiary with effect from April 7, 2015). Collectively, the Subsidiaries currently have five operational and six under fit-out food and beverage outlets across our Phoenix Market City malls in Mumbai and Pune, covering a tota area of over 21,600 square feet with an estimated total seating capacity of approximately 800. We plan to launch more food and beverage outlets in order to add to the leisure and entertainment options at our malls.

OUR STRENGTHS

Diversified portfolio and revenue streams

We are one of India's leading retai asset developers, owners and operators, with one of the largest retail portfolios in India, consisting of nine retail properties comprising approximately 2,000 stores, in variousIndia's largest cities. Our existing real estate development portfolio primarily comprises retail-led, mixed-use developments in prime locations, together with a number of other standalone residential and commercial office developments. Our developments include retail and entertainment,  commercial, hotel and residentia properties in Mumbai, Chennai, Bengaluru, Pune, Lucknow, Bareilly and Agra. Our operations typically encompass most aspects of rea estate development, including land acquisition, planning, execution and marketing of projects, through to the management, maintenance and sales of the completed developments.

Our retail development portfolio consists of approximately 6.16 million square feet of Leasable Area in eight Completed and one Ongoing project. Our commercial office development portfolio consists of approximately 1.82 million square feet of Saleable/Leasable Area in four Completed, one Ongoing and on Planned projects, (including areas already sold). Our residentia development portfolio consists of approximately 5.51 million square feet of Saleable Area in five Ongoing and Planned projects, of which we have sold approximately 1.65 million square feet of Saleable Area. Our hospitality portfolio consists of two Completed hotels with a total of 582 keys.

Our Ongoing and Planned residentia and commercial office projects aggregating approximately 7.33 million square feet of Saleable and Leasable Area (inclusive of areas already sold or leased (as applicable)), are at various stages of planning, approvals and completion.

Established market leadership and brand name

We were one of the first real estate developers in India to transform a textile mill property into a modern, multi-use retail-led integrated development - High Street Phoenix at Lower Parel, Mumbai. In addition, High Street Phoenix was among the first developments in India to combine retail and entertainment, commercial, hotel and residential properties into an integrated lifestyle destination. We believe that innovation and strategic vision has been key to our success and we have been able to establish a strong market position and a recognised brand name in the mixed-use real estate development business. Further, we believe that we were amongst the first real estate developers in India to introduce large retail-led mixed-use developments, which resulted in the creation of a large format, retail led, mixed use centre at High Street Phoenix, in turn creating location equity for Lower Parel, Mumbai. Further, having implemented this concept in Lower Parel, Mumbai, we have used our market expertise and brand name to seek to replicate the success of High Street Phoenix elsewhere in Mumbai and in a number of other cities throughout India through our Phoenix Market City, Phoenix United, residential, commercial and hospitality projects.

We believe we have a competitive advantage over our new and potential competitors in cities where we are already brsent due to several factors, including the significant time outlay required for potential competitors to build and establish a profitable retail mal (which, in our experience, typically takes approximately five to seven years), our early mover advantage in large, retail-led developments in specific micro-markets, non­availability or low availability of large parcels of land in proximity to our retail developments, high entry costs for our competitors to develop similar projects in cities where our developments and projects are located, our established track record in mall management testified by various awards we have won and our established relationships with international brands. In particular, we believe that our track record and the quality of our retail developments has enabled us to maximise our lease revenues through our established relationships with domestic and global retail clients.

For our residential projects, we believe that the Phoenix brand is well established and recognised, and is associated with good quality, design, innovation, marketing and project management that generally helps to achieve timely delivery of  completed projects to buyers of residential apartments. Amongst other factors, we believe our strong market position and recognizable brand is a differentiating factor for our customers, which helps establish customer confidence, influences buying decisions and has enabled us to generally achieve high realisable prices for our projects. Some of our Ongoing residential projects have won several awards. Our brmium and luxury residential projects, One Bangalore West and Kessaku, in Bengaluru, comprise, in aggregate, approximately 3.24 million square feet of Saleable Area. We launched Phase I of One Bangalore West, comprising approximately 1.21 million square feet of Saleable Area, in the third quarter of 2012, in respect of which, as of March 31, 2015, we have sold approximately 0.99 million square feet of Saleable Area. We launched our Kessaku project, comprising approximately 0.99 million square feet of Saleable Area, in the first quarter of 2015.

Presence in several of India's largest cities with growth in revenues

We currently own and operate retail, residential and commercial office developments in Mumbai, Chennai, Bengaluru, and Pune. With respect  to the residential real estate market, Mumbai, Chennai, Bengaluru and Pune, all showed positive growth in absorption rates during the period July to December 2014 compared to the period January to June 2014.

We believe that having projects located across several of India's largest cities allows us to attract high-end retail clients, receive high lease revenues per retail client and cater to large populations of consumers with high discretionary incomes. We believe that these factors allow us to increase our profitability and enhance the value of our brand. We expect that we wil own and operate our future projects (other than residential properties), which will continue to provide us with recurring revenues. For the financial year 2015, our revenue was Rs. 16,533 million, of which Rs. 11,964 million was from our rental (including common area maintenance revenue and other recoveries) and hotel portfolio, and the balance of Rs. 4,570 million was from our commercial office and residential portfolio. In addition to our operational projects, we have an Ongoing and Planned Projects portfolio of approximately 6.87 million square feet of Leasable and Saleable Area in the retail, residential and commercial office space.

Strategic relationships with large retail clients and a consumption-driven revenue model

We believe that we have an in-depth understanding of the retail market and the needs and brferences of retail consumers. We also believe that our retail properties are the brferred choice among retail clients in the cities in which we operate and provide a platform for large retail clients to expand their businesses with a common partner. To successfully lease out a retai property, we believe that the retai client's confidence in the developer is an important factor, especially in fast-growing and emerging cities where there may be few organised nationa developers. We continuously engage with our retail clients to identify their individual needs, and assist in the design and layout of their stores in order to improve visual impact and increase footfall. We believe that our retail clients have confidence in us, demonstrated by our longstanding relationships with several domestic and global retail brands such as Zara, Diesel, Lifestyle and PVR Cinemas, across our retail developments. Each of Zara, Diesel, Lifestyle and PVR Cinemas, have outlets/cinemas across our locations. We further believe that several of our globa retail clients have opened amongst their first few stores for their brands in India at our retail malls. We believe  that such relationships may help us to secure retail clients for our new developments and mitigate the risks that may arise from an inability to secure retail clients for large spaces at suitable rates.

Our mall operations and management teams focus on increasing total consumer spend by engaging with retail clients as well as consumers through several marketing and promotional initiatives. We believe such initiatives result in increasing footfalls of consumers in our targeted categories and higher per capita spend.

We further believe that the business of developing and operating successful retail properties also depends on our ability to cater to the consumption pattern of target customers, including spending patterns and behaviour within a catchment area. We believe that the income earning potential of a retail property is closely linked to a property's client mix and quality of management. We seek to leverage our long-standing brsence in this market segment and believe we are able to maximise the potential of a particular catchment area by bringing together appropriate retail clients. We also regularly evaluate the retail client mix at our retai  properties to ensure that it caters to the consumption and spending patterns of customers. To capitalise on these trends, as of March 31, 2015, a majority of the leases across our retail properties are structured so that we receive the higher of a fixed guaranteed license fee / rental income, as applicable, or a percentage of revenue generated by the retail client, with such fixed guaranteed license fee / renta rate generally increasing on a percentage basis annually with a further higher percentage increase after, for example, three to five years. This assures us of minimum guaranteed license fees / renta income, as applicable, across our retail properties, while aligning our interest with those of our retai clients through revenue share arrangements. With this model, our license fees and rental income collected, as applicable, can increase as Consumption increases in a particular location.

Quality project execution and management capabilities

We believe that our position as a successful property developer in some of India's largest cities is largely due to our project execution capabilities, our quality of operation and our management team. We select whom we believe to be reputed and highly qualified contractors and international architects, and we use quality construction materials and modern technology in our developments. We have established dedicated teams to oversee the design, engineering and construction phases of development to allow us to complete our projects in a cost-effective and quality-controlled manner.

In addition, critical to our success at our retail and hospitality projects is the successful ongoing operation and management of our developments. All projects are designed to address both various consumer concerns, such as adequate parking, aesthetics, comfort, safety and cleanliness, as well as the concerns of our retai clients, such as the continuous supply of utilities and security. We believe our focus on these operation and management aspects has a significant impact on the success of our developments. We periodically upgrade our retail developments in terms of quality and facilities offered in order to enhance visua impact and increase footfalls. We also track the revenues of our retai clients and provide suggestions to underperforming retail clients on how to improve revenues based on our operational experience.

We also focus on developing a range of in-house food and beverage outlets as anchors to drive footfalls to our retail clients. We believe that our focused initiatives that seek to enhance the quality and revenues of our retail clients and our malls will lead to higher Consumption and Trading Density.

We believe the success of our developments is also attributable to our experienced, qualified and dedicated management team, many of whom have experience in a diverse range of fields, including real estate development, operations and maintenance. As a result of our established brand name and reputation for project execution, we have been able to recruit and retain experienced senior and mid-level employees. We believe we provide our staff with competitive compensation packages and a cohesive work environment which we believe encourages responsibility, autonomy and innovation. We believe that the experience of our management team and their in-depth understanding of the rea estate market in India will enable us to take advantage of both current and future market opportunities.

OPERATIONAL REVIEW

Our property portfolio includes Completed, Ongoing and Planned retail, residential and commercia office developments that include large mixed-use retail projects, commercial office projects, hospitality/hotel projects and residential projects.

Completed projects are those projects where construction has been completed and occupation certificates have been granted by the relevant authorities with respect to such projects.

Ongoing projects are those projects which have been launched and the construction of which has commenced, after receipt of the commencement certificate with respect to such construction.

Planned projects are those projects which are in the design development stage and the land required for the development has been acquired with approvals necessary for use of such land.

Large Mixed-Use Retail Developments

The following is a description of our Completed and Ongoing large mixed-use retail projects:

High Street Phoenix and Palladium

As a result of development and its central location between South Mumbai and suburbs, we believe that Lower Parel has emerged as a viable alternative to the South Mumbai business district for commercial and retail purposes. The retail development on this land parcel consists of a combined Leasable Area of approximately 0.87 million square feet of retail mal and commercial office space (net of areas let out on long lease basis). For the financial years 2015, 2014 and 2013, Rs. 3,154.53 million, Rs. 2,948.02 million and Rs. 2,706.01 million of our total consolidated revenue, respectively, was attributable to the revenues (including common area maintenance revenues and other recoveries) of High Street Phoenix and Palladium.

As of March 31, 2015 there were over 270 stores at High Street Phoenix and Palladium divided among distinct areas known as the "Skyzone," "Grand Galleria," "Grand Galleria Annexe," "Courtyard" and  "Palladium". These areas were developed and became operationa in phases over a period of time, with the final retail space, Palladium, commencing operations in 2008.

We are also at the planning stage for further additional development potential that may be available under the existing policies and/or the new development plan (DP 2014 - 2034) which may be approved and become effective in the future.

During the financial year 2015, approximately 90% - 95% of the total Leasable Area was leased (including under executed letters of intent) at an average monthly license fee or rental, as applicable, of approximately Rs. 256 per square foot. From the financial year 2010 to financial year 2015, our renta income grew from Rs. 757 million to Rs. 2,293 million, at a CAGR of 17%. During the same period the monthly average rental grew from Rs. 115 per square foot to Rs. 256 per square foot.

In financial year 2015, we re-leased and/or renewed approximately 0.24 million square feet of Leasable Area at High Street Phoenix and Palladium at an average estimated minimum guaranteed fixed monthly license fee of approximately Rs. 335 per square  foot with 108 of our retail clients. There has also been a significant increase in minimum guaranteed license fees from a number of our retail clients between the financia years 2014 and 2015. During this period, in leases renewed or released by 19 of our retail clients, estimated minimum guaranteed license fees increased by between 50% and 100%, in leases renewed or released by 30 of our retail clients, estimated minimum guaranteed license fees increased by between 100% and 200%, and in leases renewed or released by three of our retail clients, estimated minimum guaranteed license fees increased by over 200%.

Our consumption, average Trading Density and rental income grew at a CAGR of 27%, 19% and 25%, respectively, from financial year 2010 to financial year 2015. The table below sets out our consumption, average Trading Density and license fees or rental income, as applicable, data for the financial years 2010 to 2015:

Phoenix Market City Projects

"Phoenix Market City" projects, as have been built by us at Pune, Chennai, Bengaluru and Mumbai, are conceptualized as large-scale, retail-led real estate developments of over two to three million square feet of Built-Up Area and approximately one million square feet in Leasable Area, in prime locations that are in close proximity to high-catchment areas. All of our Phoenix Market City projects have been developed on freehold land owned by the Company's Subsidiaries or Associates, as the case may be. Our Phoenix Market City projects encompass large retail stores, including several stores of varying sizes across all consumer categories, and multiple food and beverage outlets including fine dining, lounges, casual and quick service options. They also include large leisure and entertainment options, including cinemas, gaming, family entertainment centres and outdoor activities. Further, the Phoenix Market City projects may also include either commercial office and/ or residential projects depending on the need of the specific micro-market. Therefore, we believe these projects optimize a mix of retail, entertainment and commercial office retail clients and residential buyers in order to attract a wide spectrum of consumers. We own and operate Phoenix Market City projects in Mumbai, Chennai, Bangalore  and Pune. All of our Phoenix Market City projects are undertaken by project-specific companies. Subsequent to the completion of each Phoenix Market City project, we have continued to manage the developments.

Phoenix Market City, Chennai

Phoenix Market City Chennai is a development located on Velachery Road at Velachery in central Chennai on approximately 14.5 acres of land with approximately 1.00 million square feet of Leasable Area. Phoenix Market City Chennai has more than 250 stores and during financial year 2015, approximately 90% - 95% of the total Leasable Area was leased (including under executed letters of intent) at an average monthly license fee or rental, as applicable, of approximately Rs. 104 per square foot.

The leases for approximately 0.5 million square feet or 52% of mal area are up for renewal between the financial years 2016 to 2018. Our consumption, average Trading Density and rental income grew at a growth rate of 51%, 21% and 29%, respectively, from financial year 2014 to financial year 2015. The table below sets out our consumption, average Trading Density and rental income for the financial years 2013 to 2015:

Phoenix Market City, Bengaluru

Phoenix Market City Bengaluru is a development located on Whitefield Road in the commercia area of Whitefield in Bengaluru on approximately 15 acres of land with approximately 0.98 million square feet of Leasable Area. Phoenix Market City Bengaluru has more than 290 stores and during financial year 2015, 90% - 95% out of the total Leasable Area was leased (including under executed letters of intent) at an average monthly license fee or rental, as applicable, of approximately Rs. 84 per square foot.

The leases for approximately 0.50 million square feet or 51% of mal area are coming up for renewal between the financial years 2016 to 2018. Consumption, average Trading Density and rental income grew at a CAGR of 42%, 25% andk 21%, respectively, from financial year 2013 to financial year 2015.

Phoenix Market City, Pune

Phoenix Market City Pune is a development located on Nagar Road in Pune on approximately 17.6 acres of land with approximately 1.13 million square feet of Leasable Area. Phoenix Market City Pune has more than 310 stores and during the financial year 2015, approximately 90-95% out of the total Leasable Area was leased (including under executed letters of intent) at an average monthly license fee or rental, as applicable, of approximately Rs. 82 per square feet.

The leases for approximately 0.37 million square feet or 33% of mall area are coming up for renewal in financial year 2016, with approximately 0.61 million square feet coming up for renewa over the next three financial years. Consumption, average Trading Density and rental income grew at a CAGR of 29%, 22% and 21%, respectively, from financial year 2013 to financial year 2015. The table below sets out consumption, average Trading Density and rental income for the financial years 2013 to 2015:

Phoenix Market City, Mumbai

Phoenix Market City Mumbai is a development located in the eastern Mumbai suburb of Kurla, approximately five kilometres from the business district of Bandra-Kurla complex. The metro, the east-west link of Chembur Santacruz link road and the eastern exbrss freeway also make this development accessible from the tertiary catchment areas of Juhu, Andheri and Dadar, among others. Phoenix Market City Mumbai is developed on approximately 22 acres of land with approximately 1.11 million square feet of Leasable Area. Phoenix Market City Mumbai has more than 300 stores and during financial year 2015, approximately 85% - 90% of the total Leasable Area was leased (including under executed letters of intent) at an average monthly license fee or rental, as applicable, of approximately Rs. 85 per square foot.

The leases for approximately 0.70 million square feet, or 63.3%, of mall area are coming up for renewa between the financial years 2016 and 2018. Consumption, average Trading Density and rental income grew at a CAGR of 39%, 25% and 15%, respectively, from financial year 2013 to financial year 2015. The table below sets out consumption, average Trading Density and rental income for the financial years 2013 to 2015:

Phoenix United, Lucknow

Phoenix United, Lucknow is located along National Highway NH25, leading to Kanpur, with approximately 0.33 million square feet of Leasable Area. Phoenix United, Lucknow has more than 100 stores and during financial year 2015, approximately 90% - 95% of the total Leasable Area was leased (including under executed letters of intent) at an average monthly license fee or rental, as applicable, of approximately Rs. 52 per square foot.

Phoenix United, Bareilly

Phoenix United, Bareilly is located along the Pilibhit Bypass Road, on approximately 3.5 acres of freehold land, with approximately 0.31 million square feet of Leasable Area. Phoenix United, Bareilly has more than 130 stores with and during financial year 2015, approximately 90% - 95% of the total Leasable Area was leased (including under executed letters of intent) at an average monthly license fee or rental, as applicable, of approximately Rs. 44 per square foot.

Between the financial years 2013 and 2015, Consumption from our High Street Phoenix and Palladium, Phoenix Market City and Phoenix United retail projects, on a consolidated basis, grew at a CAGR of 38%. The combined Consumption  for the financial years 2015, 2014 and 2013 were approximately Rs. 49.0 billion, Rs. 40.3 billion and Rs. 25.7 billion, respectively. Between the financial years 2013 and 2015, the combined rental income grew at a CAGR of 25% during which period the total rental incomes for the financial years 2015, 2014 and 2013 were approximately Rs. 6.5 billion, Rs. 5.7 billion and Rs. 4.2 billion, respectively.

Palladium Mall, Chennai

Palladium Mall, Chennai is our Ongoing retail development located at Velachery, on approximately 5 acres of freehold land, with approximately 0.22 million square feet of proposed Leasable Area. Palladium, Chennai is expected to have a total of 76 stores. The project is expected to be operational in the second quarter of 2016.

Phoenix Paragon Plaza, Mumbai

Phoenix Paragon Plaza, Mumbai, is our Completed retail development project, located at L.B.S. Marg, Kurla, situated on approximately 22 acres of freehold land Phoenix Paragon Plaza, Mumbai, is expected to have more than 300 stores and is partly operational since April 30, 2015.

Commercial Office Projects

The following is a description of our Completed, Ongoing and Planned commercial office projects:

Phoenix House, Mumbai

Phoenix House, Mumbai, with approximately 0.13 million square feet of Leasable Area (net of area let out on a long lease basis) is our Completed project located at Lower Parel, Mumbai, and is located on the land parcel on which our High Street Phoenix and Palladium, Palladium Hotel and Phoenix Towers residential projects are located.

Centrium, Mumbai

Centrium, Mumbai is our Completed project located in the eastern Mumbai suburb of Kurla forming part of a mixed-retail development, Phoenix Market City Mumbai, on approximately 22 acres of freehold land. Centrium has approximately 0.28 million square feet of Saleable/ Leasable Area of which 248,617 square feet of Saleable/Leasable Area has been sold.

East Court, Pune

East Court, Pune is our Completed project located at Viman Nagar, Pune, forming part of the mixed-use development, Phoenix Market City Pune, on approximately 18 acres of freehold land, with approximately 0.25 million square feet of Saleable/  Leasable Area. As of March 31, 2015, approximately 0.24 million square feet of Saleable/Leasable Area of East Court, Pune had been sold.

Phoenix Paragon Plaza, Mumbai

Phoenix Paragon Plaza, Mumbai, is our Completed project, within our Phoenix Market City Mumbai retail project in the Mumbai suburb of Kurla and situated on approximately 22 acres of freehold land. This development comprises approximately 0.12 million square feet of Saleable/Leasable Area and includes both retail and commercial space with the flexibility to interchange the use between two formats. The commercial office space of Phoenix Paragon Plaza comprises approximately 0.12 million square feet of Saleable/Leasable Area. As of March 31, 2015, approximately 0.045 million square feet of Saleable/ Leasable Area has been sold and approximately 0.04 million square feet of Saleable/Leasable Area has been leased/licensed.

Art Guild House, Mumbai

Art Guild House, Mumbai is our Ongoing Project which, when completed, will form a part of our Phoenix Market City Mumbai development located in the eastern Mumbai suburb of Kurla situated on a part of the parcel of freehold land admeasuring approximately 22 acres. Art Guild House comprises  approximately 0.76 million square feet of proposed Saleable/Leasable Area. Approximately 0.38 million square feet of Saleable/Leasable Area has been sold. The project is expected to be operational in the fourth quarter of 2015.

West Court, Pune

West Court, Pune, is our Planned Project and part of our Phoenix Market City Pune development, located at Nagar Road on approximately 18 acres of freehold land, with approximately 0.28 million square feet of proposed Saleable/ Leasable Area, subject to panning and approval consents.

Residential Projects

The following is a description of our Ongoing residential projects:

Fountainhead, Pune

Fountainhead is our brmium residential apartment project located on Nagar Road in Pune and forms part of our Phoenix Market City Pune development sbrad across approximately 18 acres of freehold land. Once completed, this project will comprise two towers of 13 floors each. The project was launched in the first quarter of 2014 and construction of tower 1 is currently ongoing while tower 2 is currently under planning and awaiting approvals. It is estimated that tower

1 and tower 2 together will have a total Saleable Area of approximately 0.35 million square feet. The project is scheduled to be completed in 2018. As of March 31, 2015, approximately 0.03 million square feet of Saleable Area has been sold.

Crest, Chennai

Crest is our residential project located on Velachery Main Road in Chennai that forms part of the Phoenix Market City Chennai development, sbrad across approximately 14.5 acres of freehold land. Crest Towers A & B comprise a total Saleable Area of approximately 0.24 million square feet. Crest Tower C comprises a total Saleable Area of approximately 0.29 million square feet and Crest Tower D comprises a total Saleable Area of approximately 0.41 million square feet and is currently under planning and is awaiting approvals.

Once completed, these projects will comprise an aggregate Saleable Area of approximately 0.94 million square feet. Planning of the projects commenced in 2009, with Towers A, B and C being launched in the third quarter of 2011. All the three towers - A, B and C - are expected to be completed in FY2016. Tower D is currently in the planning stage, is expected to be launched this year and is scheduled to be completed in 2018. As of March 31, 2015,  approximately 0.36 million square feet of Saleable Area has been sold in Towers A, B and C.

One Bangalore West, Bengaluru

One Bangalore West is our brmium residential apartment project located at Rajkumar Road, Rajajinagar in West Bengaluru and is being constructed on part of the parce of freehold land admeasuring approximately 16.7 acres with a tota Saleable Area of approximately 2.25 million square feet. Once completed, this project will comprise nine towers of 30 floors each. Planning of the project commenced in the second quarter of 2011. The project is being developed in two phases with Phase I comprising five towers with a Saleable area of approximately 1.21 million square feet and Phase II comprising four towers with a Saleable Area of approximately 1.04 million square feet. Phase I of the project was launched in the third quarter of 2012 and is scheduled to be completed in the fourth quarter of financial year 2016. Phase II of the project was launched in the fourth quarter of 2014 and is scheduled to be completed in the second quarter of financial year 2019. The structural work for Phase I has been completed. The interior work is ongoing and the club house structure is near completion. As of March 31, 2015, approximately 1.07 million square feet out of the tota Saleable Area has been sold.

Kessaku, Bengaluru

Kessaku is our luxury residentia apartment project located at Rajkumar Road, Rajajinagar in West Bengaluru, with a total Saleable Area of approximately 0.99 million square feet. Once completed, this project will comprise one tower with 5 wings of 30 floors each. Planning of the project commenced in the third quarter of 2013 with launch occurring in the third quarter of financial year 2015. Completion is scheduled for the first quarter of financial year 2019.

Oberhaus, Bengaluru

Oberhaus is our part Ongoing and part Planned brmium residentia project and forms part of our Phoenix Market City Bengaluru mixed-use development, located at Whitefield in Bengaluru.

Once completed, this project wil comprise 2 towers with a total Saleable Area of approximately 1.02 million square feet. Phase I of this development if our Ongoing project, with a total Saleable Area of approximately 0.38 million square feet. The launch of Phase I is expected in FY2016. Phase II of this is our Planned project and is currently at the planning stage and awaiting approval. It is expected to have an estimated Saleable Area of approximately 0.64 million square feet

Hospitality Services

Our hospitality services include two hotels, Palladium Hotel in Mumbai and the Courtyard by Marriott in Agra.

Palladium Hotel, Mumbai

The Palladium Hotel is our luxury hotel located within our High Street Phoenix mixed-use development at Lower Parel in Mumbai with 389 rooms including serviced apartments (of which 335 rooms are currently operational), 11 food and beverage venues (of which nine are currently operational), eight event venues and 13 meeting rooms comprising approximately 42,500 square feet of events space, an exclusive members club and an extensive health club and spa with nine treatment rooms. The hotel has been operational since December 2012. The average occupancy during the financial year 2015 was 66% and the average room rate per night was 7 8,231.

The Palladium Hotel was developed and is owned by our wholly-owned subsidiary, Pallazzio Hotels & Leisure Limited. In September, 2014, Pallazzio Hotels & Leisure Limited entered into various agreements with certain Starwood entities, including an operating agreement with Starwood Hotels and Resorts India Private Limited and a trademark license and technical assistance agreement with Starwood Asia Pacific Hotels and Resorts Pte. Ltd., amongst others, for the management, marketing, technical services and branding of the Palladium Hotel to be operated under the trademark of St. Regis, a luxury hotel brand owned by Starwood. The Palladium Hote will be rebranded as The St. Regis, Mumbai from September 1, 2015.

Courtyard by Marriott, Agra

Courtyard by Marriott, Agra is a brmium leisure and business hote  located at Taj Nagri on Fatehbad Road in Agra, in close proximity to the Taj Mahal, with 193 keys, three restaurants and a bar (of which two restaurants and the bar are currently operational), and a banquet hal with a 200 person capacity. The hotel has been operational since January 2015 and is operated by the Marriott Group. The average occupancy during the fourth quarter of financial year 2015 was 28% and the average room rate per night was Rs. 4,800. We entered into a hotel operating agreement and other related agreements with Marriott Hotels India Private Limited and its affiliates for the operation, marketing, technical services and branding of the hotel to be operated under the trademark of Courtyard by Marriott. The amenities offered to guests include, among others, a swimming pool, fitness centre and meeting rooms.

FINANCIAL OVERVIEW

Income from operations

On Standalone basis, which includes operations of only High Street Phoenix & Palladium (HSP), Mumbai, income from operations has increased by 7% YoY to 3,154 Million in FY2015 from Rs.2,948 Million in FY2014 on the back of healthy footfalls, consumption growth and higher rental income post lease renewals during FY2015. On a Consolidated basis, Income from Operations increased by 14 % to Rs. 16,533 Million in FY2015 from Rs. 14,485 Million in FY2014. The rise in consolidated income from operations was due to a combination of higher rental income , and healthy inflows from the residential and commercial projects. The higher rental income in the malls was driven primarily by increased consumption (the total consumption in Phoenix malls increased by 23% to Rs. 49 Billion in FY2015 from Rs. 40 Billion in FY2014).

Earnings before Interest, Debrciation and Taxes (EBITDA)

The Standalone EBITDA increased by 5% YoY to 2,031 Million in FY2015 from Rs. 1,930 Million in FY2014. The EBITDA margins were 64% in FY2015 as compared to 65% in FY2014. Consolidated EBITDA has increased by 12% to 7,620 Million in FY2015 from Rs. 6,784 Million in FY2014. The consolidated margins have decreased to 46% in FY2015 from 47% in FY2014.

Interest and Debrciation

The Standalone debrciation increased at 22% to 310 Million in FY2015 from 254 Million in FY2014, whereas the consolidated debrciation increased by 59% YoY to 1,681 Million in FY2015 from Rs. 1,054 Million in FY2014. Due to an increase in standalone debt, standalone interest expense increased by 59% to Rs. 707 Million in FY2015 from Rs. 444 Million in FY2014. The consolidated interest expense has increased by 15% YoY to Rs. 3,956 Million in FY2014 from Rs.3,451 Million in FY2013.

Profit after Tax and Minority Interest

Standalone Profit after Tax decreased by 60% YoY to 618 Million in FY2015 from Rs. 1,526 Million in FY2014 . The Consolidated Profit After Tax and Minority Interest decreased by 72% YoY to 354 Million in FY2015 from Rs. 1,285 Million in FY2014. This was majorly due to creation of Provision for Impairment.

Share Capital

During FY2015, Share Capital of the Company which stood at Rs. 290 Million. Standalone Reserves and Surplus increased marginally to Rs. 18,799 Million in FY2015 from Rs. 18,547 Million in FY2014, whereas Consolidated Reserves and Surplus Stood at Rs. 16,446 Million in FY2015 as against Rs. 16,947 Million in FY2014.

Non-Current & Current

Liabilities

The Standalone Non-Current (long term) borrowings of the Company have increased to 5,318 Million in FY2015 from Rs. 3,807 Million in FY2014 . The Consolidated Non-Current (long-term) borrowings decreased to Rs. 28,190 Million in FY2015 from Rs. 28,328 Million in FY2014. The Consolidated Current Liabilities have increased to Rs. 12,048 Million in FY2015 from Rs. 11,928 Million in FY2014.

Fixed Assets

The Consolidated Tangible Assets have remained stable at Rs. 41,303 Million in FY2015 from Rs. 41,696 Million in FY2014 and CWIP has decreased to Rs. 2,137 Million in FY2015 from Rs. 2,350 Million in FY2014.

Current Assets

The Consolidated Current Assets have increased to Rs. 17,233 Million in FY2015 from Rs.17,161 Million in FY2014, due to increase in Investments, construction progress Across the commercial and residential developments and advances . Consolidated Inventories increased to Rs. 11,783 Million in FY2015 from Rs. 11,416 Million in FY2014.

RISK MANAGEMENT AND INTERNAL CONTROLS

PML identifies new risks and re­evaluates old risks during the year, in the process of considering risk mitigating strategies. Some of the risks the Company's core businesses are exposed to include credit risk, market risk, operational risk and legal risk. It is also exposed to specific risks in connection with the management of investments and the environment within which it operates. The Company manages cost escalation risk through processes aimed at optimising costs through suppliers and through rigorous contracts and procurement. To manage project execution risk, PML evaluates track records and performance capabilities to ensure the right contracts are on board. As a part of the monitoring system, a project review is done every week on timelines and budgets to evaluate project cost and costs to completion.

The Company seeks to understand, limit and manage the adverse impacts arising from externa and internal events. The risk management team safeguards and protects the Company's assets against unauthorised use or disposition, maintenance of proper accounting records and verification of authenticity of all transactions. Within the Company, the directors  are responsible for maintenance of a sound system of internal controls. This is done by way of continuous process of identifying, evaluating and managing the risks faced by the company. The Group's effectiveness on internal control and their internal control system is also checked by external agencies. This results in an unbiased and independent examination of the adequacy and effectiveness of the internal contro system and aims to achieve the objective of optimal functioning of the Company.

INFORMATION  TECHNOLOGY

Your Company well understands that an adequately equipped IT infrastructure, both technologically and quantitatively, is the foundation for stable IT systems and optimal IT support. It has the best-in-class IT systems and the entire IT backbone to manage administration and delivery of its services. A key hallmark of its IT systems is its ability to monitor and assist each retail store, helping them manage their business better and has a combrhensive package for managing its retail properties. This enables the entire operation to be on a centralised platform offering single-system property management and accounting integration.

The advanced IT system facilitates PML in establishing various business intelligence reports for investment management, electronic procurement, paperless transaction processing, budgeting, forecasting and cash flow modelling. The Company has adopted global standards in information automation, performance metrics and management excellence. The efficient enhancement of the application environment at different locations in the business processes and in the sales network is just as vital as having a modern IT infrastructure. The technica staff is responsible not only for programming the systems, but also supporting the users in technical development. Expert teams develop solutions that can be applied across verticals to establish IT standards in business areas that are the basis for leveraging potential synergies.

HUMAN RESOURCES

Over the years, PML has rapidly expanded its intellectual capacity to develop its unique projects aimed at becoming one of the largest mixed-use property companies in India. From an HR perspective, the Company emphasises on attracting the right talent to help the organisation achieve its vision and deliver globally acclaimed properties to customers and retailers. PML has strong strategic planning and decision making skills achieved through a highly capable and committed leadership team that is geared to build the finest and most unique properties across India.

To accomplish its goals, the Company is always on the lookout for talented, creative, ambitious individuals driven by challenges with a passion to excel. Today, PML hires some of the most talented and experienced individuals in their fields. It believes having the right people will take the organization to great heights. It endeavours to become a market leader in the most competitive environment and faces the challenge of accessing and deploying talent and unleashing the teams' innovative potential.

PML is a strong believer of developing and retaining the talented people by treating employees with dignity, honesty and respect and also helping employees realize their potential. It believes in providing appropriate working conditions to enable employees to work effectively and also recognising and rewarding each individual and the team achievement. The Company is driven by trust and the principles of empowerment, and believes in inculcating a winning attitude among its employees by encouraging learning, self-development and building effective leadership. It breaks the barriers of scale, size and efficiency. It also offers stimulating assignments, a great working environment and professiona management.

CAUTIONARY STATEMENT

Statements in this report pertaining to the Company's objectives, projections, estimates, exceptions and brdictions are forward-looking statements subject to the applicable laws and regulations. These statements may be subject to certain risks and uncertainties. The Company's operations are affected by many external and internal factors which are beyond the control of the management. Therefore, the actual position may differ from those exbrssed or implied. The Company assumes no obligation to amend or update forward looking statements in future on the basis of new information, subsequent developments or otherwise.