Brigade Enterprises Ltd Management Discussions

1. Economic Overview

As major economies of the world faced multiple challenges and grappled with growth, the Indian economy witnessed significant growth across sectors on the back of strong fundamentals, robust demand and government-led investments. Indias stature as the largest democracy with remarkable long-term growth prospects of a stable market, makes it one of the most attractive destinations to set up businesses. The governments policy initiatives, the RBIs success in controlling inflation with tight monetary policy while supporting growth, and several growth initiatives undertaken by the government have strengthened Indias footing on the world map as one of the global leaders among growth centres.

India continued to be the fastest growing major economy in the world with robust domestic demand. Strong government support in terms of reforms and financial push, increased focus on infrastructure development, technological advancements and various schemes are contributing to the expansion of the economy across various sectors including manufacturing, infrastructure, power, etc. Concerted efforts in utilising technology to enhance knowledge sharing, boost manufacturing and promote export competitiveness have resulted in India emerging as a hub for manufacturing and exports.

The growth in the Indian Economy is led by ever-increasing investment, growth in private consumption, improved business sentiments and the healthy financial positions of banks and corporations. The construction sector witnessed double digit growth at 10.7% in FY 2024. Manufacturing sector also posted robust 8.5% growth. The central bank continued to maintain its stance on monetary policy with a pause on rate hikes since April 2023. This move helped in curbing inflationary pressure amidst global uncertainty.

1.1. Outlook

With the likelihood of a normal monsoon, strong growth in manufacturing and service sectors and continued government thrust on economic development, India is expected to remain one of the fastest growing major economies in the world. Over the medium term, the fiscal deficit and debt are projected to decline, led by strong output growth and consolidation efforts by the government.

Robust economic growth, political stability, urbanisation, rising incomes and strong government push for infrastructure, coupled with the rising broad-based demand in housing bode well for the future growth prospects of the Real Estate sector and the Indian Economy.

2. Industry Overview

The real estate industry is one of the most globally recognised sectors in contributing to nation building. In India, the construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. The real estate sector is the second-highest employment generator, after the agriculture sector. It comprises four sub-sectors - residential, retail, hospitality and commercial. The growth of this sector is complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation.

With strong government push, the real estate sector has witnessed transformational changes including investor-friendly FDI policies, enhanced transparency, stricter regulatory measures, the Real Estate Regulation and Development Act (RERA), real estate investment trust (REIT) guidelines, the benami transactions (prohibition) amended act, the Goods and Services Tax (GST), Smart Cities Mission, Housing for All, and AMRUT (Atal Mission for Rejuvenation and Urban Transformation). These reforms have resulted in increased traction from both domestic and global investors. While major metropolitan areas such as Delhi NCR, Mumbai, Pune, Bengaluru and Chennai dominate the real estate construction, tier-II and III cities contribute to fast-paced growth, aided by the governments push for affordable housing and infrastructure development.

In 2023, the real estate sector witnessed record property sales amid rising consumer confidence and a robust economic growth. RBIs stable rate regime since April 2023, helped in instilling certainty among property buyers. The residential market saw good demand, with robust demand across all price segments. %. Apartment sales across the top seven cities hit ~2,72,000 units, with Bengaluru, Mumbai and Pune being the top three active markets. A new trend emerged in the housing segment with bigger houses priced above ? 15 million being the fastest-selling category for the first time ever.

Other segments like office spaces, malls, co-working, co-living and industrial & warehousing also saw a strong uptick. The co-working sector which was majorly impacted during the pandemic, saw revival in demand for flexible workspaces. Similarly, the industrial and warehousing sectors saw good traction led by ever increasing demand by e-commerce, logistics and manufacturing industries.

Despite 2023 starting on a weak note amid global inflationary headwinds, the real estate sector delivered remarkable resilience especially in the second half of the year. Indias office markets set new records with leasing activity surging to 63 million sq.ft. (square feet), led by strong demand in the second half of the year. Flex space also performed well, registering a record leasing of 10.3 million sq.ft.. Retail leasing across malls and high streets was over

7 million sq.ft. - a decade high. The logistics and industrial sector saw stable performance in 2023, with demand for Grade A compliant warehouses recording a vacancy rate of 6% compared to the overall sector vacancy of ~10.6

2.1. Residential Segment

The bull run in the Indian residential market continues and the fourth quarter of Financial Year 2023-24 witnessed an all-time high number of sales across all the metro cities put together. Amongst the launches, 83% were from the cities of Mumbai Metropolitan Region, Hyderabad, Pune and Bangalore. 79% of overall sales were from these 4 cities.

The fourth quarter witnessed a total sale of 1.3 Lakh units which was 2% YoY growth. Bengaluru city has the lowest inventory overhang nationally (only 8 months) and Hyderabad has the highest (18 months) due to higher number of launches.

Rising material costs and sustained increase in housing demand has led to price increase between 10% to 32% during FY 23-24 across cities. Hyderabad and Bangalore recorded the highest annual hikes of 31% and 24% respectively.

The quest to buy a new home post the pandemic continues thus driving the residential demand. Sustained economic growth and rising middle class income are also contributing to the uptick in residential sales. The sales momentum is expected to continue in the financial year 2024-25 and beyond as well. The preferences of buyers is for branded products. High end segment (>2 Cr) has witnessed 4x jump in sales compared to pre-pandemic levels and this trend is expected to continue.

Governments thrust on mega-infrastructure projects will catalyze the growth across all real estate sectors.

Financial Year 2023-24 was a historic year which witnesses the highest numbers in terms of sales, collections and registrations. We have consciously focussed on shortening our sales cycle and selling a larger chunk of our inventory at launches due to robust demand.

We have a strong pipeline of launches lined up across the cities of Bangalore, Chennai, Hyderabad & Mysore which should help us consolidate our position further in FY 24-25. With large projects like Brigade Cornerstone Utopia, Brigade El Dorado, Brigade Xanadu and Brigade Citadel coming to fruition, the focus on liveability will continue.

2.2. Office Segment

Office market is undergoing a significant transformation across the country, fuelled by evolving work trends, technological advancements, and renewed occupier confidence. Amidst this dynamic landscape, the officespace sector has shown resiliency in FY24, continuing to see growing demand in the top 6 cities. The demand was mostly sustained by Global Capability Centres and domestic occupiers from sectors including IT, BFSI, Engineering & Manufacturing. With the trend of pre-commitments making a comeback, large and medium size deals are forming a larger share of the absorption.

As India adopts global sustainability and emission targets, tenant focus continues to remain on sustainability and ESG compliance. Tenants are increasingly also settling into their hybrid office models and flexible, managed office solutions have become a core part of tenants growth strategies.

High performing markets across the top 6 cities have specifically seen up to 20% YoY rental rise, reflecting the growing preference of occupiers willing to pay a premium for Grade A/A+, sustainable buildings with a host of amenities.

The commercial segment (office & retail) of Brigade Group witnessed strong performance in FY24 with a net office space absorption of more than 1 million square feet in FY24. The year ended on a strong note achieving 97.5 % occupancy across the portfolio.

Brigade Tech Gardens (SEZ) has been in spotlight achieving 100% occupancy with marquee tenants from automotive, engineering and technology sectors growing within the campus despite shrinking SEZ market post sunset of the regime. Demand was driven by medium and large sized office space requirements, dominated by players from Automobile, Technology, Engineering & manufacturing sectors.

Demand scenario is likely to remain robust in FY25 as well with developers planning strong supply pipelines to cater to optimistic absorption forecasts. The Primary South Indian markets of Bengaluru, Hyderabad and Chennai will continue to lead in terms of absorption and rentals are likely to inch upwards.

2.3. Retail Segment

The retail industry is going through key shifts, wherein, income growth remains steady, and consumers are optimistic on personal income outlook. We have witnessed a double-digit growth in our footfalls along with higher consumer spending, thereby, resulting in our overall mall retail consumption growth by 8%.

We are witnessing an uptick in growth plans for big brands in both Premium and Bridge to luxury segments that will fuel our leasing traction in the foreseeable future.

Our retail segment had a good leasing traction both in malls and in our office parks. We have worked towards enhancing our office park amenity by leasing Food and Beverage counters and restaurants due to newlycurated cuisines. The Mall leasing segment was largely led by Food & Beverages, CDIT and Supermarket that contributed 45% of our overall financial year leasing followed by Fashion & Apparel category that contributed to 30% of our overall financial year leased area.

The occupancy levels at our mall significantly increased resulting in 90% trading occupancy with our flagship Orion Mall at Brigade Gateway Campus being 99% leased.

2.4. Hospitality Segment

The hospitality sector is part of the travel and tourism industry, which has seen a revival post the COVID period with increased traffic within and into the country. This increase in international arrivals and domestic travel is helping not only the tourism industry but also the hospitality sector to survive and thrive. Business travellers also form a key part of the hotel industry as well, and the number of business travellers continues to see growth as more and more companies return to a hybrid work mode.

The previous financial year witnessed a revival of the hospitality industry with travel restrictions being lifted in major parts of the country, and FY 2023-24 continued the positive trend with record results and growth observed in areas of Occupancy, Average Room Rate (ARR) and Revenue per available room (RevPAR). The industry saw an increase in international arrivals, which was augmented by India hosting the ICC World Cup 2023. Domestic travel within the country also increased, facilitated by the addition of extended capacity in the airports and the return to work from office or hybrid mode policies for many IT companies. Between April 2023 and March 2024, 376 million passengers (Domestic and International) were handled by airports in India vs. 327 million in the previous year, and as per current trends, it will become the 3^rd largest domestic and 5^th largest outbound market in the world by 2027.

Many city and state-specific events like the Vibrant Gujarat global summit, IPL matches, IMTEX, India Woods, and IFEX events in BIEC, and others helped to increase occupancies in their respective cities. The government has also maintained its focus on promoting tourism in the country, which has benefited states like Kerala, which saw increased tourism and positively contributed to the growth of their hospitality industry. Mysore seems to be the next focus, with the Karnataka government promoting tourism since Q4 of 2023 with a Brand Mysuru fest held in Jan 2024.

The year also saw the largest increase in the supply of keys with 14,000 new keys added, and moreprojects from prominent operators are in the pipeline indicating the confidence from operators for the industry to continue to grow. Four new convention centres have been established in the last 2 years - in Mumbai, two in New Delhi, and in Jaipur. In aggregate, these offer 0.7 mn sq. ft. meeting space, 5.2 mn sq. ft. exhibition space, and additional pre-function spaces. However, supporting convention hotels are lacking; these centres will drive new demand and opportunities for hotels in the respective cities until more dedicated hotels are developed.

This remarkable growth of the industry has been largely accelerated by the increase in domestic leisure travellers, which continues to grow and contribute positively to the segment. As mentioned earlier, the number of business travellers has increased, leading to more MICE (meetings, incentives, conferences, and exhibitions) events, which are major drivers for the growth of the industry. Weddings, social events, and spiritual/religious tourism have all had positive impacts on the growth of the industry. However, the industry also faced significant challenges - the unusually hot weather and the scarcity of water in major regions of the country have posed significant threats and had negative consequences on the performance of hotels.

In Q4 2023-24, India-wide occupancy witnessed a surge, reaching 66-68% in January 2024 and further increasing to 72-74% in February 2024, and we expect this positive trend to continue into the new financial year.

2.5. Outlook

The overall outlook for our business segments remains positive supported by a continued focus on land acquisition in our key markets of Bengaluru, Chennai and Hyderabad. In FY25, we are expecting to launch about 12.61 Million sq. ft of residential business. In the Commercial and Hospitality segment we are expected to launch about 2.98 Million sq. ft and 0.50 Million Sq. ft. respectively.

3. Performance

3.1. Business performance

All our business segments performed very well in the financial year 2023-24 with the major contribution from the real estate business. The year topped all of our previous yearly performances, with the biggest-ever sales value and collections in Real Estate Segment. Demand remained solid, led by strong home sales, a recovery in the leasing industry and strong performance from our hotel business. We launched 7 projects totalling 5.24 Million sq. ft. The overall launch was stronger than the previous year.

3.2. Business Segments 3.2.1. Real Estate

In FY24, Brigade Group achieved its highest ever pre-sales of 76,01,250 Lakhs with a sales volume of 7.55 Mn sq. ft. During FY24, 6.2 Million sq. ft. of new projects were launched. The average realization stood at 77,968/sq. ft. during FY 24, an increase of 23% over FY 23. Total collections stood at 75,91,510 Lakhs which grew by 9% over FY23.

The projects that we launched in FY24 are as follows:

# Project	City	Segment	Project Area (in Mn sq. ft.)	BEL Interest (in Mn sq. ft.)
1 Brigade Padmini Tech Valley- Tower C	Bengaluru	Commercial	0.26	0.13
2 El Dorado - Aurum	Bengaluru	Residential	0.59	0.59
3 Brigade Calista - Ph 2	Bengaluru	Residential	0.70	0.56
4 Brigade Millennium Annexe	Bengaluru	Residential	0.02	0.02
5 Brigade Sanctuary	Bengaluru	Residential	2.00	1.52
6 Brigade Orchards - Fairmont	Bengaluru	Residential	0.19	0.13
7 Brigade Orchards - Ivory Ph 2	Bengaluru	Residential	0.48	0.33
8 Brigade Oasis - Ph 3	Bengaluru	Residential	0.72	0.30
9 Brigade El Dorado - Dioro	Bengaluru	Residential	0.56	0.56
10 Elysium - Brigade Cornerstone Utopia	Bengaluru	Commercial	0.40	0.27
11 Arcadia - Brigade Cornerstone Utopia	Bengaluru	Retail	0.12	0.12
12 Brigade Senate 1 Wing B	Bengaluru	Commercial	0.14	0.14
Total			6.18	4.57

The projects under development as on March 31,2024 (Million Sq. ft.)

Projects	Project Area	Co. Share	LO/JV Share
Real Estate projects for sale	10.95	7.25	3.70
Brigade El Dorado*	5.14	5.14	-
Brigade Cornerstone Utopia*	2.54	1.69	0.85
Brigade Orchards*	1.35	0.92	0.43
Brigade Residences at WTC Chennai*	0.35	0.18	0.17
Brigade Twin Towers- Tower B*	0.55	0.55	-
Total Real Estate	20.88	15.73	5.15

‘Through Special Purpose Vehicles (SPVs)

3.2.2 Lease Rental (Office & Retail)

The Lease Rental business witnessed strong performance with a net absorption of more than 1 Mn sq. ft. during the year. The demand was driven by medium & large sized office space dominated by automobile, technology, engineering and manufacturing sectors.

Revenue stood at 793,773 Lakhs during FY 24, a growth of 25% over FY 23 with 97% occupancy across SEZ projects, which is 82% of overall office portfolio without denotifying, underscoring our commitment to quality assets. 100% occupancy was observed across Non-SEZ projects.

Operating Office and retail projects as on March 31,2024 are as follows (Million Sq. ft.):

Name of the Project	Location	Leasable Area	Leased	To be Transacted
Brigade Tech Gardens*	Bangalore	3.00	2.84	-
World Trade Center Chennai*	Chennai	2.01	1.82	0.19
World Trade Center Bengaluru	Bangalore	0.62	0.62	-
Brigade Opus	Bangalore	0.30	0.30	-
Brigade Bhuwalka Icon	Bangalore	0.19	0.19	-
WTC Kochi*	Kochi	0.77	0.77	-
Brigade Intl Financial Center, GIFT City*	Gift City	0.27	0.27	-
Brigade Southfield	Bangalore	0.15	0.15	-
Orion Mall @ Brigade Gateway	Bangalore	0.83	0.83	-
Orion Uptown Mall	Bangalore	0.27	0.24	0.03
Orion Avenue	Bangalore	0.15	0.12	0.03
Brigade Vantage, Chennai	Chennai	0.06	0.06	-
Others	Bangalore	0.06	0.03	0.03
Total		8.68	8.24	0.28

* Special Economic Zone Projects

Projects under development as on March 31,2024 (Million Sq. ft.)

Lease Rental Projects	Project Area	Co. Share	LO/ JV Share
Brigade Twin Towers- Tower A & C*	0.66	0.66	-
Brigade Square, Trivandrum	0.19	0.19	-
Arcadia @ Brigade Cornerstone Utopia*	0.12	0.08	0.04
Total Leasing	0.97	0.93	0.04

* Through Special Purpose Vehicles (SPVs)

3.2.3 Hospitality

The hospitality industry and segment continued its growth trajectory from last years revival and demonstrated record results and growth. Our portfolio was also a beneficiary of this positive trend in the segment with our occupancy rates and Average Daily Rate (ADR) witnessing healthy growths. Our portfolios occupancy rate for FY 2023-24 grew to 72% from 69% the previous year. Our portfolios ADR also witnessed a growth of 5% over the previous financial year.

This led to an overall revenue growth of 18% and an Adjusted Gross Operating Profit (AGOP) growth of 13% over the Financial Year 2022-23.

The segments positive trend was contributed to by an increase in domestic leisure, MICE (meetings, incentives, conferences, and exhibitions), weddings, and foreign tourist arrivals.

The elections during the months of April to June have and are expected to affect occupancy as offices close down for the election dates. This will also affect F&B revenues as states go into "dry periods" restricting the sale of liquor and social events.

4. Financial Review

4.1. Equity Share Capital

The Brigade Group has an authorised share capital of 725,000 Lakhs. As of March 31, 2024, the paid-up equity share capital was 723,110 Lakhs, compared to 723,073 Lakhs as of March 31, 2023.

4.2. Total Debt

As of March 31, 2024, the net bank debt was 72,59,030 Lakhs, compared to 72,13,930 Lakhs as of March 31, 2023. The net debt-to-equity ratio was 0.62. The average cost of debt is 8.82%.

4.3. Credit Rating

The credit rating upgrade for the credit facilities being availed from banks and financial institutions during the financial year 2023-24 is as follows:

Rating Agency	Present Rating & Outlook	Previous rating & Outlook
ICRA Limited	AA-/ Stable	A+ / Positive
CRISIL Ratings	AA-/ Stable	A+ / Positive

The credit rating upgrade is a testimony of the financial discipline as well as sound business performance.

4.4. Revenue

• We achieved our highest-ever sales and collection figures, with revenue from operations up by 42% to 74,89,669 Lakhs in FY24 from 7 3,44,461 Lakhs in FY23 growth is driven by better performance in all segments of Real estate, leasing and hospitality.

• The highest ever pre-sales of ~ 7.55 Million sq. ft with a sales value of 7 6,01,250 Lakhs in FY24, an increase of 46% from FY23 with an increase in average realisation by 23% to 7 7,968 per sq. ft. in FY24.

• Revenue from Real Estate segment climbed 55% in FY24 to 73,48,225 Lakhs from 72,24,475 Lakhs in FY23, owing to a project completions 3 towers in Brigade Cornerstone Utopia and 2 towers in Brigade Citadel.

• Revenue from leasing services climbed 22% in FY24 to 775,933 Lakhs from 762,018 Lakhs in FY23, owing to a higher leasing in Brigade Tech Gardens, WTC Chennai/Kochi, and Brigade Opus.

• Revenue from hospitality services climbed 14% in FY24 to 745,152 Lakhs from 739,627 Lakhs in FY23, owing to a high increase in occupancies and ARR.

• Our revenue from maintenance services increased by 12%, from 715,160 Lakhs in FY24 from 713,561 Lakhs owning to a higher leasing in Brigade Tech Gardens, WTC Chennai/Kochi, and Brigade Opus.

• Other operational revenue has been increased by 9% in FY24 to 75,199 Lakhs from 74,780 Lakhs in FY23.

4.5. Other Income

Other income increased by 41% in FY24 to 716,746Lakhs from 711,860 Lakhs in FY23. This increase wascaused by an increase in bank deposit interest andfinance lease and other non-operating income.

4.6. Expenses

• Sub-contractor cost: Our subcontractor cost reduced by 5% in FY24, from 71,69,699 Lakhs in FY23 to 71,60,790 Lakhs in FY24.

• Cost of raw materials, components and stores consumed: Increased from 713,651 Lakhs in FY23 to 719,093 Lakhs in FY24, our cost of raw materials, components and stores consumed grew by 40% in FY24. This growth was the result of increased operations and the launch of new projects.

• Purchase of land stock: Our purchase of land stock cost increased from 71,03,208 Lakhs to 71,75,056 Lakhs in FY24, Increase is due to the acquisition of land in Hyderabad, Chennai and Bangalore.

• Increase in inventories of flat stock, land stock and work-in-progress: Increase in inventories of flat stock, land stock and work-in-progress decreased to 781,113 Lakhs in FY24 from 71,10,272 Lakhs in FY23. This was attributed to higher number of new joint developments and new land acquisitions, which resulted in higher costs for inventories.

• Employee benefits expense: Our employeebenefits expense grew by 18% to 731,767 Lakhs in FY24 from 726,828 Lakhs in FY23, owing to an increase in employee cost due to increase in operations of all segments.

• Finance costs: Our finance costs increased by 13% in FY24 to 749,104 Lakhs from 743,415 Lakhs in FY23. The increase is due to the loan drawdown for new business development in Chennai and Hyderabad.

• Depreciation and amortisation expense: From 731,458 Lakhs in FY23 to 730,209 Lakhs in FY24, our depreciation and amortisation expense reduced by 4%. There are no major asset additions during the FY 24.

• Other expenses: Our other expenses increased by 17% in FY24, from 755,446 Lakhs in FY23 to 764,641 Lakhs in FY24. This was a result of an increase in Legal and professional charges, Power & Fuel, Rates and Taxes, Licence fees and plan approval charges, Sales and Marketing and Security charges.

4.7. Profit before exceptional items and taxes

In FY24, our profit before exceptional items and tax increased to 756,868 Lakhs, up from 723,298 Lakhs in FY23. This is due to increase in revenue in all segments

i.e. real estate, leasing and hospitality.

4.8. Tax Expenses

Our tax expenses grew from 75,582 Lakhs in FY23 to 716,632 Lakhs in FY24. This is due to increase in revenues and profits.

4.9. Cash Flows

(f in Lakhs)

	FY24	FY23
Net cash flow from operating activities	33,398	96,647
Net cash flow used in investing activities	(37,946)	(27,060)
Net cash flow from financing activities	24,062	(69,523)
Net increase in cash and cash equivalents	19,514	64

4.10. Operating Activities

Net cash flow from operating activities was 733,398 Lakhs for FY24 as compared to 796,647 Lakhs for FY23 due to new land acquisition in real estate segments which led to a net decrease in cash flow.

4.11. Investing Activities

Net cash flow used in investing activities was 7(37,946) Lakhs for FY24 as compared to net cash flow used in investing activities for FY23, which was 7(27,060) Lakhs, the increase is due to higher investments in Fixed deposits/Investments from operating activities surplus.

4.12. Financing Activities

Net cash flow from financing activities was 724,062 Lakhs for FY24 as compared to 7(69,523) Lakhs for FY23, this increase is due to availment of new borrowings for new business development in all segments.

Liquidity

Our liquidity needs are primarily driven by our operating activities, capital expenditures for new project construction, loan repayment, and debt servicing obligations. Historically, our primary sources

of funding have been cash from operations, short- and long-term bank borrowings, demand-repayable overdraft facilities, cash and cash equivalents, and stock and financing provided by our shareholders. We have also entered into several revolving credits and other working capital arrangements, which offer adequate liquidity for our Companys needs. Our cash and cash equivalents consist of cash in hand, cheques in hand, current accounts at banks, and other amounts kept with banks as short-term deposits. As of March 31, 2024 and March 31, 2023, we had cash and cash equivalents of 71,73,727 Lakhs and 71,47,808 Lakhs, respectively.

4.13. Capital Expenditure

During FY24 and FY23, our total capital expenditure was 730,440 Lakhs and 731,523 Lakhs, respectively.

Segmental capital expenditure

(f in Lakhs)

Segment	FY24	FY23
Real Estate	1,125	940
Hospitality	11,878	584
Leasing	17,437	29,999
Total	30,440	31,523

4.14. Key financial ratios as per consolidated financial statements for FY24 compared with FY23

Particulars	FY24	FY23	Variance%	Rationale
Total Assets Turnover Ratio	0.28	0.22	31%	Turnover for FY 24 is increased due to Project closure in Real Estate Segment and better occupancy in leasing and hotel segment.
Fixed Assets Turnover Ratio	1.11	0.76	45%
Current Asset Turnover Ratio	0.48	0.37	31%
Return on Equity	0.13	0.09	44%	Profits increased due to Project closure in Real Estate Segment and better occupancy in leasing and hospitality segments.

5. Risks & Enterprise Risk Management

Enterprise Price Risk Management is an important aspect which is given utmost importance at all levels as we continuously monitor, identify, analyse, evaluate, reduce and report business-related risks in order to ensure the long-term sustainability and continuation of the business. We are present in all domains of real estate viz residential, commercial- office & retail (leasing) and hospitality segments. We have developed a risk management tool during the financial year 2023-24. All the risk owners continuously monitor and update the risks relating to their area of operations / functions in discussion with the functional head along with Periodic review, monitoring and updating the progress of the risks. All the risks are based on certain contributing factors and has impact, likelihood andvelocity as factor to measure and rate the risk with and without control. The Corporate risk coordinator drives ERM framework and concepts. It engages with risk owners on validating risk assessment & developing risk mitigation plans and ensures periodic review and monitoring of mitigation plans. The Risk Management Executive Committee reviews key risks along with the risk response plans and report the progress to the Risk Management Committee. The Risk Management Committee (RMC) oversees the establishment and implementation of an adequate system of risk management. The Risk Management Committee advises the Board on the effectiveness on the risk management systems & appropriate methodology, processes, and systems are in place to monitor and evaluate risks and oversee implementation of the policy. Strong governance hasbeen guaranteed by our consolidated ideas concerning the definition of internal control, Internal Control over Financial Reporting (ICFR), internal audits, the COSO 2017 framework, strategic planning, and periodic reviews.

All identified risks are categorised under internal risks viz. land bank, project execution, talent attraction & retention etc. and external risks viz. macro-economic risks, political risks etc. A few major risks that could affect our operations and the relevant mitigation measures we have in place are as follows:

Market Risk

Market risk is a measurement of all the variables that influence the performance of financial markets. It refers to the potential for losses due to factors that influence the overall performance of financial markets. Market risk is also referred to as "systemic risk." Diversification cannot eliminate the same, but there are many methods to hedge against it. There are numerous sources of market risk, including macro factors such as changes in interest rates, foreign trade policy, indicators of industrial output, political unrest, natural disasters, and terrorist attacks. Systematic, or market risk tends to influence broad market behaviour. It may not be specific to the business or industry in which we operate, but it may have an effect on earnings.

Our residential and annuity businesses contribute to a solid business model. The residential business is directly exposed to market dynamics and risks, whereas the annuity business, which generates consistent revenue flows, will not be affected to the same extent. To mitigate this risk, we perform detail and thorough market research before making any investment decisions. This includes analysing local economic indicators, population growth, employment rates, and market trends. We believe in investing and developing in diverse property types and different geographic locations which also help spread out market risk.

Raw Material Risk

One of our key cost components is raw material. Any price and/or availability variation in any raw material we utilise may have a major impact on our profitability. Cash flow and operations may suffer as a result of such an incident because we do not enter into long-term vendor agreements or engage in hedging measures to protect ourselves against commodity-related risks. Due to dynamic fuel price, logistic price increases that majorly cause the inflation of raw material price time to time. Therefore, we control basic price of major raw materials by fixing the basic price while award and adjust/reconcile and pay the actual variations throughout the duration of actual procurement time to time. At our various project sites, we strive to keep an optimal level of inventory of commodities such as steel, cement, copper, and aluminium. The trends in commodity pricingand availability are regularly studied by numerous sources. Furthermore, efficient design, value engineering, optioning and waste management & reduction reduce the risk of price increases. There is a built-in budget contingency that accounts for any fair price increase.

Land-related Risk

Land is the most important component of the real estate industry. Title concerns, legal challenges, and the expenditures associated with them are substantial hazards for the real estate industry. Land expenses will rise if suitable land is not available at a reasonable price in suitable places. This raises the overall cost of the project and has a negative influence on the Companys performance.

Our business model is a hybrid of outright acquisition, joint venture, and collaborative development. In circumstances when land costs are high, the option of developing the site through joint venture or joint development rather than outright acquisition is available to ensure that there is no significant outflow for acquiring land.

Further, our in-house Legal Department conducts extensive due diligence on land titles. Apart from that, experienced legal counsels specialising in the real estate sector are recruited for thorough due diligence before we sign any land acquisition, joint venture, or joint development agreement. Limited availability of land at strategic locations, and of the desired quality and acceptable prices always impact the ability to grow existing land bank. But using aggregators we maximise the leads which in turn maximise options of feasible lands and mitigate potential risks.

Execution Risk

The execution is dependent majorly on a number of elements, that includes the availability of raw materials and their cost, the availability of manpower, regulatory approvals or clearances, limited working hour conditions especially projects within city, weather conditions, logistics, health & safety and so on. The act and management of execution is highly important. Project execution plans are formed before starting of execution and project orientations are done to all the stakeholders of the project to ensure the awareness of various processes required to execute and their implementations. During the course of the development of the project, we check and ensure the consistency of policies and processes being maintained by relevant stakeholders engaged in the project, hold meetings of the cross-functional team for the coordination and evaluation of progress and quality etc, engage reputable contractors best in class, and do a lot of strategic planning and track them on daily basis in order to ensure that the projects will be carried out on time while maintaining a high level of quality. Health & Safety being the major risk, maximum construction fatalities result from falls from heights and being struck by movingvehicles, whilst most of non-fatal injuries result from slips, trips and falls, and from being struck by a moving or falling object. Having robust E&S policy and monitoring in place we mitigate these risks effectively.

Interest Rate Risk

We are subject to market risk due to variations in interest rates on our borrowings. Our earnings may be harmed if interest rates rise since our finance costs would rise. All our borrowings are at floating interest rates that are linked to specific benchmark rates or rates that are adjusted based on changes in interest rates established by the Reserve Bank of India (RBI). Changes in the RBIs monetary policy, the global and domestic economic environment, inflationary pressures, and so on all have a substantial impact on interest rates. The majority of these variables are outside our direct control.

We have one of the lowest borrowing rates in the real estate industry. Construction loans are obtained during development and period and are repaid with project cashflows. Construction loans for commercial projects are typically converted to low-interest lease rental discounting loans once the property is finished being built and leased. Interest rate risk can also affect the overall returns on real estate investments. Investors may choose to shift their funds to other investments, such as bonds or stocks, that offer higher returns in a rising interest rate environment. We believe diversifying real estate investments across different geographic locations and property types can also help mitigate interest rate risk.

Inflation Risk

Inflationary pressure is brought on by a number of variables that affect both domestic and global economic growth. Pandemic outbreaks and unjustified geopolitical tensions that impair the supply chain could lead to inflationary pressure. The price of operations and procurement could directly rise as a result of domestic inflation.

Additionally, it might indirectly affect the cost of debt servicing because adjustments to monetary policy might result in an increase in the interest rate on our borrowings. We take essential precautions to prevent the impact of inflation from having a significant impact on the operations while being prudent and cautious in our approach. The most effective way of protecting against inflationary risk is to build an inflation premium into the interest rate or required rate of return (RoR) demanded for an investment.

6. Internal Controls

We have comprehensive processes, guidelines and procedures in to our internal control systems based on the scale, nature and complexity of our business. Strong internal controls assure the resilience and adaptability of business operations, resulting in high operational efficacy.

A management information and monitoring system is in place to support internal controls.

Our Internal Audit Department within the Company and external audit firm conduct periodic audits. Audits guarantee the integrity of internal control systems and adherence to management policies. The internal control system was designed with a firm commitment to complying with all applicable laws. The scope of work includes:

• Strict internal control review to verify accounting, productivity, and economy of operations;

• Submission of the internal auditors audit report to the Audit Committee;

• Suggesting improved practices by the internal auditors;

• Providing a status report on the implementation of their recommendations;

• Continuous review of various audit reports from our internal audit team, the Internal Auditors Audit;

• Committee and the Board to enhance the efficacy and efficiency of internal controls.

7. Human Resources

Enhancing employee experience and creating productive workforce through HR Initiatives

In our relentless pursuit of creating exceptional workplaces for all, our Brigade has embarked on a transformative journey marked by bold acts of leadership that extend beyond the confines of our immediate workspace, reaching into the broader community. Recognizing that great workplaces are not isolated entities but integral parts of thriving communities, we have implemented initiatives aimed at improving the root conditions essential for collective well-being.

Leadership plays a pivotal role in shaping the workplace culture, employee engagement, and overall organizational success. The leadership team at Brigade exhibits a collaborative and inclusive leadership style. Leaders demonstrate a commitment to fostering a positive work environment and actively support the personal and professional development of their teams. Brigades "Leadership Think-Tank" the "Management Committee" is cognizant of the fact that, building specific business strategies is an absolute necessity in this rapidly changing Global economy. There is a clear and transparent communication channels exists within the organization which enables the leadership team to communicate the companys vision, goals, and strategic objectives effectively, fostering alignment among teams. Also, ensuring that communication channels are consistently utilized to share updates, changes, and successes.

The culture of openness and honesty has helped us to be a more successful organization and for 13 years in a row we have been recognised as the "Great Place To Work". Every year we have excelled in all the five dimensions of building a high trust, high performance culture (Credibility,

Respect, Fairness, Pride, Camaraderie). In order to create this trusting environment, we have modelled trustworthiness in all our initiatives, processes, etc. We have rolled out many initiatives that have created a "High-trust organization in which employees feel safe to take risks, express themselves freely, and innovate, employees collaborate and communicate with each other in productive ways.

A sneak peek into our best practices that has created "Unique environment" for Brigadiers

1) Appreciating and rewarding Long tenured employees: Employees commitment is an important issue in an organization which is the outcome of trust and belongingness. Trust is an important aspect in the workplace as it increases the commitment level of employees and long tenured employees. Creating the "High Trust Environment" will be able to hold employees for a longer period of time and signify employee satisfaction. At Brigade we recognize the contributions of Brigadiers who have been with the organization and have served the organization with complete dedication, sincerity & passion. Brigadiers who complete 5, 10, 15 & 20 years and above are rewarded for their long association and meaningful contributions. A cash award is awarded to the Brigadiers. These awards are given away by our Chairman the Third Thursday of every month. This year 116 employees have received the LSA award.

2) Continuous improvement with Learning & Development: Building a learning centred ethos is paramount at Brigade. Assimilating learning into daily manoeuvres is the key- this ensures that learning isnt just a one off- event but rather a core part of the culture. Learning and development play an intricate role in enhancing an employees skill, knowledge, and competency. Employee development involves continuous learning to help each person grow in their career and to ensure optimal human capital development to build a business. It deals with improving the effectiveness of both the organization and the individuals. Aptly, the Learning & Development wing of HR is called ‘GROW.

We launched of our Learning Management System (LMS) - "GROW" in association with ‘Courseplay- a known service provider in this space. This is an AI-powered, employee growth-oriented platform focused on optimizing individual learning experience. Along with completing courses, earning rewards and badges, this platform also offers skill Management, app integration, announcements, mentorship, and coaching. In making learning more fun and engaging, it has inbuilt gamified learning with leader boards and an AI powered chatbot to offer zero-touch engagement.

3) Launch of iHRMS: In our continued efforts to enhance staff experience in various HR matters and to digitiseprocesses, we have been working on implementing ‘Integrated HR Management System (iHRMS) under the Katalyze program. As communicated earlier, we have partnered with ‘Darwinbox for implementation of this new system.

We are happy to announce the launch of iHRMS scheduled to go-live effective 20^th May 2023. This day coincides with ‘International HR Day and the theme for this years HR Day is ‘Shaping the New Future which is apt for this initiative.

The key features of the new iHRMS system are as follows:

i. iHRMS is an ‘all-in-one system with combined features of B1.net HRMS, KEKA, PMS, Travel Management & BHARAT (Recruitment Tool).

ii. Entire employee lifecycle will be managed on one unified platform with a single view of all modules.

iii. Integrated flow of information between different modules.

iv Smart phone friendly and easy to operate all functions on the mobile.

v. Attendance & Leave management: factored-in multiple scenarios viz. regularization, comp off etc.

vi. Employee Self-Service (ESS): caters to employee documents (address proof, employment proof etc.), data changes etc.

vii. Permission based roles can be assigned for each module.

viii. View of HR Policy applicability for individual staff.

ix. VIBE- An Enterprise Social Network - Brigades "SOCIAL" intranet - A digital space that Connects, communicates and engages the whole company. We strongly believe that its not the distance that keeps employees apart but the lack of communication and information. We have leveraged technology and using "VIBE" for an effective "Internal Communication" tool. Vibe facilitates spontaneous and real time discussions that helps employees stay up to date. This has helped in increasing "Collaboration" and "Productivity" as knowledge sharing, and real time updates of information happens. We also use VIBE as medium to get the "Feedback/Opinion" through poll which aids in faster decision making.

4) Campus to Corporate (C2C): A flagship program to on-board the "Graduate Engineering Trainees" to the corporate world.

C2C is a flagship program to attract and train the best millennial talent, through actively planned campus recruitments. Each year, we hire fresh Engineering Graduates through campus interviews. They are then trained to become effective Engineers in Civil and allied Engineering fields. Thanks to its, popularity and effectiveness, this program, has been applauded as one of the Best Practices in the industry. A pre-on-boarding session is conducted twice before they join, one each, in the 2 months before they come on board, with an objective to familiarize them on corporate culture and the benefits of having a long tenure with the company. This 45-day program comprises technical subjects along with Behavioral aspects such as Communication skills, Team building and Bonding.

Renowned external trainers from the industry and in-house experts speak to the GETs on different aspects of Construction & Management. Post the 3-week classroom sessions, GETs undergo On-the-Job-Training (OJT) for 4-weeks. During this time, the GETs are rotated across project functions for an overall understanding of the project life cycle.

5) Skill Development and Training: Collaborated with Bengaluru Chamber of Commerce and Industry to establish the ‘Brigade-BCIC Skill Development Academy: A Centre of Excellence on a 5-acre plot of land at Aerospace Park, Bengaluru North. This academy will specialise in the fields of construction, hospitality and tourism, manufacturing, and retail. Its primary objective is to address the significant shortage of skilled workers in Karnataka, which currently stands at 11 Lakh. By catering to the needs of these sectors, this ‘not-for-profit initiative aims to positively impact the lives of unemployed and underemployed individuals.

6) Our Employee Value proposition: We have a strong "Employee value proposition" employees need to be felt, understood, invested in, cared for, and valued is taken care of. Through our EVP we focus on holistic wellbeing capturing physical, social, and psychological comfort of employees. A few of the standout EVPs include:

a. B-ESOP: Brigade Employee Stock Option

Scheme: was introduced in FY-2013-14. The ESOPs are awarded in tranches, whereby employees can exercise 25% of their allotments every year. We have also partnered with financial institutions to enable financial assistance to exercise the option. This gesture has been well appreciated. In the real estate sector, we are one of the few companies who has implemented ESOPs and successfully used this to reward our performers.

b. BrigHT- career accelerator program: BrigHT - Brigade High Talent : Leadership Development - Career Acceleration program: This learning program is an ongoing program and is aimed at developing High Potential team members (HiPos) for the Brigade leadership pipeline to enable them for career progression opportunities within Brigade

Hospitality and the parent group companies. The HiPos are identified based on their past performance and will undergo further assessments (personality, leadership and psychometric) to identify areas of leadership development. Through this we intend to Develop internal talent, Build Leadership Pipeline & Succession Planning. Employees with consistent Performance ratings of 8.5/9 & above for the last 3 consecutive years are considered for this program. The identified BrigHTs undergo Individual assessment of Psychometric and Leadership traits through a scientific tool. Post assessments the identified BrigHTs will undergo personality development programs that enables development of leadership skills, Identify thrust areas for enhanced Learning and that creates talent pipeline for career progression. Currently we have identified 120+ employees as BrigHTs. Through the BrigHT program 27 Brigadiers have taken up leadership roles and few are heading the department/function.

c. Tailor-made Insurance policy for employees: we

have a Comprehensive Health Insurance Policy for employees and their family including in-laws. Our insurance policy is tailor made and covers additional features/benefits unlike the normal insurance policy. Few important features include:

• Surrogacy Covered under the maternity limit as per IRDA surrogacy act Compulsory Deduction

• Cataract Limit (upto multi focal lens) Enhanced up-to INR 40,000 per eye for all ESC (Employee, Spouse and Child) and Voluntary Parental Policy

• Psychiatric/psychological Treatment Covered on IPD basis up-to Family Sum Insured

• LGBT Cover Covered under the policy.

• Gender Reassignment Surgery Covered within Total Family Sum Insured AYUSH cover Covered up to 30 % of SI provided its taken in a registered Government Hospitals

• Advance Treatment and Procedures Covered under ESC Base Policy

• Vision & Lasik Surgery Covered for (+-) 5 power.

• OPD cover Dental Cover (Only for Root Canal Treatment) / Hearing Aid/ Hearing Treatment covered up-to INR 10,000 per family Vision: INR 5,000 for spectacles lenses expenses covered as per the Doctor prescription.

d. Higher Education Sponsorship: Brigade has instituted a Chair at IIT-Madras, which conducts research in the field of ‘Value Homes. Further, our best engineers are sponsored to undergo a 2-year M-Tech course here. we are sponsoring a high potential junior engineer to undergo this course.

All expenses are borne by the company, and the staff member retains the status of an employee and enjoys all benefits. This program was initiated in FY 2018 and this year we have sponsored two of our Women Brigadiers for this program.

e. Flexi work policies & Including work culture:

• Flexi work arrangement (Flexi clock in and clock-out timings)

• Sabbatical leave up to 6 months.

• Adoption leaves up to 6 months.

• Combination of Leaves for employee benefit.

f. Support employee well-being through "Employee Assistance program": We have partnered with YourDost, a specialized counselling organization which provides counselling services to all its staff and their dependents. The Company fully bears the cost of this service. The aim of YourDost is to provide professional help to all employees and their families to enable them to manage stress and work-related anxiety. The services are available for employees and their family 24/7 and accessible in 20 languages.

g. Discount for employees if they buy Brigade properties: Employees who buy Brigade properties get discount up to 5% on the agreement value.

h. Subsidized Tuition fees: for employee children working @ Brigade schools- Brigadiers Kids who study @ Brigade school gets a reimbursement of 25% on tuition fees.

i. Employee Emergency Fund: In order to extend a helping hand to those in need, we have set up an ‘Employee Emergency Fund. Through this fund, we will be able to extend financial assistance to employees who are in need, in addition to the corporate assistance being provided.

7) HR CONNECT - "Every good conversation starts with listening"- A platform to listen to employee concerns:

HR CONNECT - "Every good conversation starts with listening"- A platform to listen to employee concerns: we at Brigade believe in having a personal touch with our employees and building camaraderie and rewarding employee experience. HR Connect is an initiative intended at establishing direct connection between HR Team members with employees working on the ground, at all locations/sites. The HR & Admin team travels to the sites/locations to understand, firsthand, the challenges faced by them. The objective is to ensure transparency and two-way communication towards improving the quality of work-life. These interactions involve feedback and normal dialogue, helping with clarity of information.

It also provides a platform for employees to share their grievances and get them resolved, quickly.

8) Whistle-blower @ Brigade - an opportunity to all to blow the whistle and Raise the voice:

Whistle-blower Policy has been introduced at Brigade as a mechanism for employees to raise their concerns of any unacceptable, improper, or unethical practice being followed in the company. The Policy is intended to ensure that whenever an employee reports any practice, of the above nature, the concerned employee is protected against any vindictive action and/or any discrimination for such reporting. No discrimination, harassment or any other unfair employment practice like threat, intimidation, transfer, demotion, refusal of promotion etc. are adopted against the Whistle-blower. This policy requires employees to put their names in the disclosures they make. Any anonymous mails / letters are not taken cognizance off.

9) Employee wellness programs: Demonstrates the organizations concern towards the overall wellbeing of the employees. Thus, building a sense of trust among the employees that "We Care". When employee feels trusted to manage their own schedules & workloads, they can better prioritize personal wellbeing, Leading to reduced burnout & stress. Below are the few initiatives we have curated for overall employee wellbeing.

• Fitness@Brigade: For us "Fitness is not about being better than someone else ... its about being better than you used to be", to ensure this, we conduct 28-day Fitness@Brigade competition to help Brigadiers lead a healthier, happier, and a more productive lifestyle. Split over four weeks, the challenge includes motivating participants to walk at least 10,000 steps a day which are monitored digitally. All participants can track and check leaderboard for live updates. Winners will be announced on a weekly basis and overall championship winners will be announced at the end of the activity. This was a fun way to engage the employees, with the top performers walking away with interesting prizes.

• Sports sponsorship - To encourage fitness & sportsmanship among employees, we sponsor employees to participate in various sports activities such as marathons, corporate badminton, cricket & Football tournaments.

• "Yoga for you"- online desk yoga sessions: As part of our ongoing efforts to safeguard the health and fitness of our Brigadiers, we organize Online desk yoga sessions on World Yoga Day. These yoga classes are therapeutic in nature and are led by a skilled yoga instructor. They are intended to address specific ailments/ health concerns. Through a variety of physical and mental exercises, yoga seeks to achieve both a calm mind and a healthy body. Yoga emphasizes physical exercises, such as "pranayama," meditation, or "dhyana," and breathing techniques to assist people become more agile in their daily lives. More than 230 brigadiers participate in the yoga sessions.

• Annual health checkup: To ensure the health and safety of employees we organize annual health checkups for all employees, which is mandatory. The list of medical tests is customized based on the age of the employees; Employees can opt for additional health tests on discounted prices. Even family members can avail corporate discounted prices to undergo health check-ups at tied ups hospitals.

• Maternity Care & Rejoicing the "Motherhood": We create a WOW experience for our women employees who are expecting bundle of joy by gifting "mother to be" card and box of chocolates.

• Corporate Sport Events (Brigade Premier League):

To ensure work life balance, we conduct corporate sports events. BPL is a 3-week cricket tournament which brings together all the cricket enthusiasts for a healthy competition. Winners are awarded a Championship trophy followed by recognizing individual performers. This year we had 46 Teams participating in the championship.

• Nadahabba-3.0 - To bring out the talent in Brigadiers we conducted Rangoli, Best Dressed, Ethnic wear, Sketching, Singing & dancing competitions under the banner of Nadahabba during Dasara festival. Its a 3-day celebration filled with fun and joy.

• BRIGADE FIESTA "Brigade Foundation Day": To Commensurate our 37years of excellence and as a part of Founders Day, we organized an eventful week filled with Fun, laughter, and Togetherness for a week time and that ended up with a Grand Celebration. We named the event "BRIGADE FIESTA". We created curiosity among the staff by sending mailers, posters, and GIF images about the event. On the Brigade Fiesta Day, we had set up various zones all over including the grand Stage for employees performances. The icing on the cake was a performance by the Top Management which includes Chairmans Office. Event concluded with DJ on the dance floor. Talentz @ Brigade was awesome with the employees performance. Various events held during Brigade Fiesta includes:

• Laughter Therapy by Dr. Jagadish Chaturvedi

• Brigade Jam Fest by Savaari Band

• Virtutainment with Mc Archie

• Doodle Wall featuring Mitra ROBOT

• Totally unscripted with RJ Rakesh

• Talentz@Brigade

• Annul Outbound Team Bonding: Taking a break from the routine and engaging in enjoyable activities can boost team morale, motivation, and overall job satisfaction. This activity benefits both individuals and the overall team dynamics within the organization, builds trust and mutual reliance, which can positively impact their work relationships. As part of this initiative, we have organised 3 days outbound team bonding activity for all the teams/departments across the organization. Approximately 1000+ employees participated in this activity at Vythri Village Resort at Waynad. As part of this event various team building activities were organized.

• Brigade Project Experience: Brigade is known for its landmark projects, and we feel all employees should know more about our projects beyond a few details. To have better awareness of our projects we started ‘project experience visits to various projects across Bengaluru for all interested Corporate Office Staff. The project visits will be scheduled on one working Saturday of every month.

This will enable employees to:

• Experience & see our own projects.

• Interact with project team to understand the work progress.

• Understand the technical advancements in the projects.

• Celebrations of Festivals & Important days in the year: We celebrate various festivals & important days during the year to engage employees in a positive way & ensure employees come out of their daily routine & enjoy the same with fellow colleagues.

Following celebrations were organised during this year:

• Earth Day

• Environment Day

• Safety Day

• Womens Day

• Dasara, Christmas, Sankranthi, Ganesh Chaturthi festivals

• Super Colleague Program: As we continue to foster a culture of collaboration and excellence within our teams, we conducted super colleague appreciation day in the month of December. More than 400+ cards were exchanged as part of appreciate your colleague program.

• Exchanging - Thank You Cards - "A Small moment with Big Ripples of Camaraderie and Compassion among Brigadiers. Just a verbal thank you may not be enough to express the literal feeling of gratitude for fellow Brigadiers... hence our thank you cards act as a medium for all Brigadiers to express their feeling of perceptiveness in right words. We have designed physical and digital "Thank you" cards that are made available at ease at designated places and on the HRMS platform which makes exchange of thank you very convenient. To keep the moment exultant the message has been made so colorful that it stays in the heart and mind of the person who is reading.

• Corporate Sponsorship for Sports: To encourage sportsmanship among brigadiers, we sponsor employees to participate in various corporate sports activities.

• SILA Corporate Box Cricket: We are two times champions in a row (2022 & 2023) in this tournament. 10 of our employees who are passionate about cricket were chosen to participate.

• DH Cup Food Ball Championship: 9 of our brigadiers represented Brigade in this tournament in September 2023.

• Shuttleboi Mix Corp Badminton League 2:

We sponsored Mr. Vivek one of our Brigadier for this championship. He won across categories.

• Mixed Doubles - 2^nd place.

• Mens Singles - 2^nd Place.

• Mens Doubles - 1^st Place.

10) Strategic Leadership Development Program:

This Program is designed for proven business executives who want to take on greater leadership responsibilities. SDLP brings together participants from diverse backgrounds, skills and experience, thereby enabling peer learning. The most sought-after faculty at IIMB alongside industry leading coaches ensure that participants get the best of both worlds access to the sharpest thinking from the world of academia and hands on experience of driving business transformation from coaches who have a proven track record of working with senior management. This year we have sponsored 5 brigadiers from leadership team to participate in this program.

11) Environmental & Wellness Gifts to Employees on Brigade Foundation Day: 37^th anniversary: For a better tomorrow and to support our ESG initiatives to reduce pollution and emissions/footprint for a greener and healthier environment. This year we gave away wellness pack containing a Digital Wellness kit & an Eco Kit to all Brigadiers across the organization as part of our annual day celebrations.

a. Digital Wellness Kit - Mobile & Laptop Envirochip. Now a days we are all surrounded by multiple gadgets and digital Equipments emitting dangerous waves. To mitigate the effect of the waves, the mobile/laptop Enviro-Chips are said to be effective that will neutralize the impact of harmful radiations emitted by gadgets/ devices without impacting the performance of the device. These chips can be easily fixed to mobile & laptop which is a onetime action that does not require any further maintenance.

b. ECO Kit - To promote planting trees & enhance greenery we are promoting green thoughts among Brigadiers. We have designed a ECO kit that include plant seeds, Coir Pot, plant Nutrients, potting mix, Recycled PEN & Pencil & Plantable note pad. Employees can use this kit to grow few plants in their favourite areas.

12) Following initiatives have been taken during this financial year to promote women empowerment in the organization.

• Inner-Circle: A mentorship program by women and for women: We are committed to womens empowerment and our management is committed to helping women to leadership roles within the company. As part of this, we have introduced "Inner Circle" where the senior women mentor the junior staff, connect at regular intervals to brainstorm the challenges the women employees were facing, gain insights into any other issues that the women employees were confronting and create an action plan with solutions.

• Financial Wellness program for women:

A financially empowered person is both informed and skilled, understands how they spend their money, makes wise financial decisions, and have access to resources to help them reach their goals. In this context we have curated a financial wellness program for all the women employees of Brigade. In the journey of making women empowered and stronger, we are partnering with WOMONEYSTA to making Women@Brigade financially confident. There were six sessions conducted by WOMONEYSTA, every third Saturday of a month for a period of six months.

Following topics were covered:

• To the world of Finance - Introduction

• Equity - Building Wealth

• Getting started with mutual funds

• Shortlisting your fund

• Investing in safe products

• Retirement, taxation and goal planning

Post attending the program, women employees in Brigade had the below attributes.

• Knowledge of investment & Returns, Shares & Mutual funds.

• Knowledgeable session. clarity about the short term and long-term investment. clear about mutual funds.

• Women as Emerging Leaders: Developing women, growing into stronger personalities is primary to leadership roles. In this endeavour to enable every woman Brigadier, we have an interesting 6-week program for the women at Brigade. The ‘WOMEN AS EMERGING LEADERS program will have a blend of online and offline learnings conducted by Silver Oak Health. It involves live instruction, pre and post-assessments, case methodology, role plays, peer learning, concept learning, and toolkits to assist the participants in developing key attributes to become strategic leaders. The entire program was curated for six sessions and covered the following topics:

1. Self discovery and Strength finder

2. Key to executive presence

3. Build and keep relationships

4. Psychological and Emotional readiness

5. Work Life Integration

6. Managing Stress and being resilient.

8. Environment, Health and Safety (EHS)

The Environment, Health, and Safety (EHS) policy of ISO 14001:2015 and ISO 45001:2018 (OHS)-certified Brigade outlines elaborate procedures for EHS operational controls. This demonstrates our sincerity and dedication to EHS. Through proactive periodic review of statutory approvals, we ensure adherence to all compliances and timely application of all extensions. Effective EHS management is achieved through a well-defined control mechanism that specifies the controls objective, scope, and responsible departments/ teams, followed by tested procedures and a list of required documents for the process. All foreseeable hazards, risks, and environmental impacts are managed in accordance with the procedures and EHS plans outlined in place.

Our EHS Annual Activity Plan, which includes Safety Hazard and Risk Assessment (HIRA) and Environmental Aspect Impact Evaluation, Compliance to Statutory Requirement, monthly Helmet of Honour rating, internal audits, external audits, and a training calendar, identifies the key activities to be carried out during construction, as well as their frequency. Any activity affecting EHS is managed through HIRA. Before implementing any of the safe work method statements submitted by our vendor partners, we exhaustively examine each one. For high-rise buildings, we perform focused height work, deep excavation, and heated work, and we equip our employees with the necessary protective and safety equipment. In addition, we conduct periodic inspections and routine maintenance on all equipment with third-party certification.

For worker and workplace safety, activity-specific protocols and permits are adhered to. In accordance with the tasks designated to the emergency response team, we compile a comprehensive emergency response plan for all construction emergencies. To ensure the resilience and readiness of the emergency response team, routine training and simulated exercises are conducted. Regular EHS awareness training is provided to vendor partners to inform them about system implementations, monitoring, and ensuring a safe workplace. Every employee receives an EHS orientation, job-specific training, and regular toolbox discussions. This enables us to educate them on the appropriate use of the applicable personal protective equipment and to raise awareness about the hazards and risks associated with the job.

We hold monthly Safety Committee meetings with 50% contractor participation to encourage EHS commitment among our vendor partners. In these meetings, all issues are recorded and resolved. Effective since 2009, the Helmet of Honour rating evaluates the EHS system implemented at project sites and awards the highest-scoring contractors the Helmet of Honour at the monthly engineers meeting.

Similarly, the Brigade Platinum Star, Golden Star, and Silver Star are awarded for the finest EHS implementation on an annual basis.

The EHS performance is enhanced by initiatives such as the Monthly Cross site audits, Monthly EHS activity plan, weekly activity plan, EHS training calendar and adhering to the planned activity and trainings, sharing of safety alerts time to time which helps in improving the EHS awareness and performance. Brigade initiatives competed for the Bangalore Regional Level Safety Award-2024 competition Brigade Eldorado won the safety award.

Brigade Komarla and Nanda Heights participated in the CII EHS excellence award South Region awaiting the results.

As part of the safety week celebrations, skits, exams, poster-painting competitions, athlete meets, and displays of Personal Protective Equipment are held. This event is held annually in March and serves to motivate and educate the workforce. Also observed are World Environment Day, Road Safety Week, and Fire Safety Week.

9. Corporate Social Responsibility (CSR)

The social and environmental commitment of the Brigade Group is ingrained into its very structure. In the spirit of being responsible developers, we have carried out significant environmental improvement projects within our projects as well as the surrounding community. These projects include the planting of trees within and around our projects, the revitalisation of lakes, the preservation of historic trees,and the creation of green lung areas within our projects. Since we first opened our doors, all of us here at Brigade have made it a priority to give something back to the community. During the course of FY24, we embarked on a number of projects in addition to our ongoing projects - all of which are designed to improve both the quality of life in the surrounding communities and the natural environment in and around our operational sites. The Brigade Foundation has been responsible for a wide variety of developmental operations in the four core areas of Education, Health, Community Development and Skill Development & Vocational Training.