Executive Summary:

Market study has been carried out to initiate and start the lucrative business with capital investment of Rs.100.00-
Our RCB group consists of 3 members 1) K V R Rao(Self), 2) Charan, 3) Kottal. Other two are from Pharma back grou
Interested in taking up Pharma related business. As this is a group project we have contacted each other by phone,
met at RPG office on 2.12.2017 and spent 5-6 hours to conclude the project. As the first 2 options (projects related
as payback period, we have concluded on realestate project with a capital investment of Rs.110 Lakh (mostly used f

Description of the project: We have selected a project Off Sharjapur Road, Bangalore with plot area 92908 Sft and 1
a saleable area. The project is JV with land lord and with 60:40 model. The initial investment of Rs. 106.50 Lakh mo
We have taken a bank loan of Rs.2000 Lakh. Other details are as per the other sheets in this attachment.
 nvestment of Rs.100.00- 200.00 Lakh
re from Pharma back ground and very much
ted each other by phone, skype and finally we have
options (projects related to Pharma) is considered 5-6 years
Rs.110 Lakh (mostly used for land costs).

plot area 92908 Sft and 1.50 Lakh sft as

ent of Rs. 106.50 Lakh mostly for Land cost/ investment and Rs. 45 Lakh as a refund.
his attachment.
ASSUMPTIONS
Proposed Residential Project , Bangalore 15-Jan-19

Particulars Value Unit Remark

Location
Location Off Sharjapur Road
Land Details
Land Area 92908.00 sft 2.13
Land Deposit 105 Rs.lakhs 92908
Stamp Duty & Registration 1.5 Rs.lakhs
Total Land Value 106.50 Rs.lakhs
Land Cost per acre 49.9 Rs.lakhs
Land Cost per sq. ft. (Saleable) 71.3 Rs./ sq. ft.
Area Statement
Plot area 92908.00 sq.ft.
Plot area 92,908 sq.ft. 1 acre = 43560 sq. ft.
FSI Achieved 1.50 x
Permissible FSI x
BUA 139,362 sq.ft.
Add: Loading @ 7.2% %
Total Saleable Area 149,342 sq.ft.
Product Mix
Residential Apartments 100% %
Commercial Mix 0% %
Total Saleable Area 149,342 sq.ft. Villa
Commercial - Total Saleable Area 0 sq. ft
as part of JDA with the land
Developers share in the Saleable Area 60.0% %
owner
as part of JDA with the land
Developers share in the Saleable Area 89,605 sq.ft.
owner
Average Size of Apartments 3,895 sq.ft. B+G+1
Total No of Apartments 23 nos.
Sales
Current Sales Price 6,449 Rs./ sq. ft.
Increase in Sale Price - Residential p.a.
Increase in Sale Price - Residential 0.0% Per Quarter
Sales Price - Commercial Rs. / sq.ft.
Increase in Sale Price- Commerical % p.a.
Club Membership Charges 0 Rs per apartment
EDC, IDC Charges 0 Rs./ sq. ft.
No. of Car Parks (Developers Share) 0 nos.
Parking Charges 0 Rs. Per Unit per apartment
Planning, Permissions, liasioning …
Rs. Mn.
Rs. Mn.

Have been included in other cost

Total 0 Rs. Mn
post JV (@10% of COC)

Documentation, Valuation & Title Verification 0.00 Rs. Mn. To be absorbed into SPV
Budgeted Construction Costs
Cost of construction 1,785 Rs./ sq. ft. On Saleable area
Increase in Construction Costs % p.a.
Increase in Construction Costs 0.0% % Quarterly
Average Cost of Construction - Commercial Rs./ sq. ft.
Average Cost of Construction - Parking Rs./ sq. ft.
Total Budgeted construction cost 2,665.75 Rs.Lakh
Other Post JV Cost

Total Other Costs (inclusive of Architect, Admin, PMC,

757 Rs./ sq. ft. Fixed cost:+ Variable cost
Planning, Permission, EDC, IDC, Marketing exp etc. )
ASSUMPTIONS
Proposed Residential Project , Bangalore 15-Jan-19

Debt Costs
Interest rate 13.5% % Annual (Rs. 405.00 Lakh)
Interest rate %
Interest rate %
Interest rate %
Taxation
Marginal Tax Rate 31% %
%

Duration
Time to Launch project/ Start construction 0 Month
Construction Period 30 Month Post Launch
Time to Launch project/ Start construction 0 Quarters
Construction Period 10 Quarters Post Launch
Construction Phases 1
Sales Period 7 Quarters
Collection Schedule 10 Quarters
1,000,000
Projected Cash flow statement Based on Budgeted Revenue, Budgeted Cost & Debt costs:
Proposed Residential Project , Bangalore
Residential Sales
Construction Schedule Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9
Cost of Construction - Residential Rs. Psf -1785 -1785 -1785 -1785 -1785 -1785 -1785 -1785 -1785
Cost of Construction - Parking Rs. Psf 0 0 0 0 0 0 0 0 0
% Completion/CoC Incurrence % 5.0% 20.0% 15.0% 20.0% 25.0% 3.0% 7.0% 5.0% 0.0%
project other expenses % 5.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 12.5% 12.5%

Sale Schedule - Residential Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9

Basic Sales Price Rs. Psf 6449 6449 6449 6449 6449 6449 6449 6449 6449
Sales % 0% 2% 4% 6% 8% 8% 18% 15% 15%
Collection % 0% 5% 5% 5% 12% 10% 15% 15% 15%
Saleable Area sq. ft. 0 1,792 3,584 5,376 7,168 7,168 16,129 13,441 13,441

Collection of Sales Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9
Phase I 0 0 0 0 0 0 0 0 0
1 0 0 0 0 0 0 0 0 0
2 6 6 6 14 12 17 17 17
3 23 12 28 23 35 35 35
4 52 42 35 52 52 52
5 125 46 69 69 69
6 171 69 69 69
7 541 156 156
8 581 130
9 711
10

Total Sales Revenues Rs. Lakhs 0 6 29 69 208 287 784 979 1240
 Q10
-1785 -1785
0
0.0% 100.0%
10.0% 100%

Q10
6449
24% 100%
18% 100%
21,505 89,605

Q10
0 0
0 0
21 116
42 231
62 347
83 462
83 462
187 1040
156 867
156 867
1387 1387

2177 5779
0
CASH FLOWS - Commercial
#REF! 15-Jan-19 1,000,000

Unit Year 1 Year 2 Year 3 Year 4 Rs. Mn.

Project Cash Flow
Quarter Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Total
Sales Value- Commercial Rs. Mn. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 #VALUE!
Car Park Rs. Mn. 0 0 0 0
Sales Realized - Commercial Rs. Mn. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 #VALUE!
Land Cost - Commercial Rs. Mn. 0 0
Permission, Planning, Liaison… Rs. Mn. 0 0 0 0
Construction Cost - Commercial Rs. Mn. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 #VALUE!
Construction Cost - Parking Rs. Mn. #VALUE! #VALUE! #VALUE! #VALUE!
Other Costs - Pre JV - Commercial Rs. Mn. 0 0
Other Costs - Post JV - Commercial Rs. Mn. ### ### ### #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Marketing Cost Rs. Mn. ### ### ### #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Management Fees Rs. Mn. ### ### ### #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
CASH OUTFLOW-Commercial Rs. Mn. ### ### ### #VALUE! #VALUE! ### ### ### #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
NET CASH FLOW Rs. Mn. ### ### ### #VALUE! #VALUE! ### ### ### #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
IRR (Annual, Pre Tax) Commercial % ###

S
Phase I e
p
Construction Schedule Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 t
Cost of Construction Rs. Psf 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ###
1
% Completion/CoC Incurrence % 0% 5% 20% 20% 20% 20% 15% 100% 1
S
Other Costs- Post JV % 10% 20% 10% 10% 10% 20% 20% 100% e
p
Sale Schedule - Commercial Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 t
Sales Price Rs. Psf 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ###
1
Sales % 15% 15% 15% 15% 15% 15% 10% 100% 1
Collection % 20% 15% 15% 15% 15% 10% 10% 100%
S
Saleable Area sq. ft. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 #VALUE! e
p
Collection of Sales Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 t
Phase I 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1
2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 0 0 0 0 0 0 0 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0 0 0 0 0 0
7 0 0 0 0 0 0 0 0 0 0 0
8 0 0 0 0 0 0 0 0 0 0
9 0 0 0 0 0 0 0 0 0
10 0 0 0 0 0 0 0 0
11 0 0 0 0 0 0 0
12 0 0 0 0 0 0
13 0 0 0 0 0
14 0 0 0 0
15 0 0 0
16 0 0
17 #VALUE!
18 #VALUE!
19 #VALUE!
Total Sales Revenues Rs. Mn. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 #VALUE!
Private & Strictly Confidential
Particulars Value Unit

Budgeted Construction
Costs
Cost of construction 1,785
Cost of construction - Budgeted 1,785 Rs./ sq. ft.

Other Post JV Cost

Fixed cost:
Architect 50
Rent 20
Electricity 5
Salaries/PMC 10
Permissions 100
Signages 7

Variable cost:
Labour 100
Customer acquisition cost/B.D. 100
Commission & Marketing expenses 65
EDC 150
IDC 150

Total Other Costs (inclusive of

Architect, Admin, PMC, Planning,
757 Rs./ sq. ft.
Permission, EDC, IDC, Marketing
exp etc. )
Remark

On Saleable area

Fixed cost:+ Variable

cost
DCF = (CF/(1+r)^1) + (CF/(1+r)^2) + (CF/(1+r)^3) + …

FV is Future cash flow

Full Year Rate

Effective Periodic Rate
Note: To solve for effective periodic rate (quarterly in this case):
(1+r)4 - 1 =10% solve for r =>

Unit
Project Cash Flow
Q0 Q1

NET CASH FLOW Rs. lakhs. (106.5) 283

PV Factor (Quarterly) 1.0000 0.9765

Discounted Cash Flows (106.50) 276.42

Sum of DCF 2,088.05

NPV Formula 2038.88

IRR 174%
Annualised IRR 55.74

Investment/
Pay Back Period cashflow 0.041

Risk Factors

Break-even
 10.0%
2.4% see below note

r = (1+10%)4 -1

Year 1 Year 2

Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10

13 12 46 11 26 30 71 291 1906

0.9535 0.9310 0.9091 0.8877 0.8668 0.8464 0.8264 0.8070 0.7880

12.19 10.84 41.49 9.80 22.62 25.33 58.78 235.20 1,501.87

 Rs.
lakhs.
Total

2582
 Saleable area 1.493

Cost in Lakh
Particulars Value Unit
Rs.

100% capacity
Budgeted Construction
Costs 1785
Cost of construction- Material
1,250 1866.02
(fixed)
Cost of construction - Labour
536 Rs./ sq. ft. 799.72
(variable)

Other Post JV Cost

Fixed cost:
Architect 50 74.67
Rent 20 29.87
Electricity 5 7.47
Salaries/PMC 10 14.93
Permissions 100 149.34
Signages 7

Variable cost:
Labour 100 149.34
Customer acquisition cost/B.D. 100 149.34
Commission & Marketing expenses 65 97.07
EDC 150 224.01
IDC 150 224.01

Total 3785.81

Break even Fixed cost/(sale price per unit- variable cost per unit)

40058.0535094596
Lakh sft

Cost in Lakh
Remark
Rs.

50% 60% 70% 80%

1866.02 1866.02 1866.02 1866.02

On Saleable area 399.86 479.83 559.81 639.78

276.28 276.28 276.28 276.28 276.28

843.78 421.50 506.27 590.65 675.02

2963.67 3128.41 3292.76 3457.11

 90%

1866.02

719.75

276.28

759.40

3621.46