Case Problem Statement

Project Title : Financial Modeling and Analysis of 50 Flats Housing Project in Gurgaon, Haryana IN

Techvardhan Infra Pvt. Ltd (Any Company) “CLIENT” has acquired a piece of land near Gurugram HR and wants to develop i
50 flats of 900 sq. ft each.They are expecting to sell the flats at a rate of Rs. 4000 / sq.ft. The expected CapEx is Rs. 8 Crore and
for the whole project.They are seeking a non-recourse debt (project financing) with 70:30 as D/E ratio from leading commercia
loan.Please prepare a financial model and analyse the cost, revenue and debt repayment along with finflow / cash flow analysis
Project Cost (CapEx) Rate
(Rs./sq.ft) 3000 % of Project Cost
Flat 2500 7,500,000 47.1%

O & M Cost (Monthly Breakdown) (OpEx)

Annual operating cost 12 6,00,00,000 42.90%
Total Cost 14,00,00,000 100.0%
Revenue Parameters
City Gurgaon
Size (Sq. ft) 900.00
Sale 18 Crores
 PROJECT DETAILS ASSUMPTIONS
Size in Sq. Ft 3000 18,00,00,000 Inflation 4.00% Debt rate
Equity 30% 25500000 DDT 0.00% Moratorium
Debt 70% 59500000 Tax Holiday 0 yrs Debt tenure
Debt Service Resv (DSR) 12 years Tax rate 25.00% Depreciation

Year ------> Today 0 1 2

Capital Expenditure (8,00,00,000)
Revenue Collection
Sale of the flats 0.000 0.000
Total Revenue (million INR) 0.000 0.000
Operating expenses
Annual Operating Expenses -5000000.000 -5000000.000

EBITDA -5000000.000 -5000000.000

Non Operating Expenses
Interest payment -8532852 -8532852

Total Non-Operating Expenses -8532852.000 -8532852.000

Income before taxes -13532852.000 -13532852.000
Tax 3383213.000 3383213.000
Net Income -10149639.000 -10149639.000
Cash Flow
Equity 0.00 25500000 0.000
Net Income -10149639.000 -10149639.000
Principal Payment (-) -8532852 -8532852
Final Project Cashflow (Equity) 0.00 -25500000 -17065704 -17065704

DSCR ---> 0.47 0.47

ASSUMPTIONS RESULTS
10.0% USD/INR 75.00 Equity IRR -2.10%
0.25 yrs Discount 10% Min DSCR 0.47
12 years Construction Time 12 years Avg DSCR 0.47
7.00% MAT 18.5% Project IRR 0.53%

3 4 5 6 7 8 9

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000

-5000000.000 -5000000.000 -5000000.000 -5000000.000 -5000000.000 -5000000.000 -5000000.000

-5000000.000 -5000000.000 -5000000.000 -5000000.000 -5000000.000 -5000000.000 -5000000.000

-8532852 -8532852 -8532852 -8532852 -8532852 -8532852 -8532852

-8532852.000 -8532852.000 -8532852.000 -8532852.000 -8532852.000 -8532852.000 -8532852.000

-13532852.000 -13532852.000 -13532852.000 -13532852.000 -13532852.000 -13532852.000 -13532852.000
3383213.000 3383213.000 3383213.000 3383213.000 3383213.000 3383213.000 3383213.000
-10149639.000 -10149639.000 -10149639.000 -10149639.000 -10149639.000 -10149639.000 -10149639.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000

-10149639.000 -10149639.000 -10149639.000 -10149639.000 -10149639.000 -10149639.000 -10149639.000
-8532852 -8532852 -8532852 -8532852 -8532852 -8532852 -8532852
-17065704 -17065704 -17065704 -17065704 -17065704 -17065704 -17065704

0.47 0.47 0.47 0.47 0.47 0.47 0.47

 10 11 12

0.000 0.000 18,00,00,000

0.000 0.000 18,00,00,000

-5000000.000 -5000000.000 -5000000.000

-5000000.000 -5000000.000 -5000000.000

-8532852 -8532852 -8532852

-8532852.000 -8532852.000 -8532852.000

-13532852.000 -13532852.000 -13532852.000
3383213.000 3383213.000 3383213.000
-10149639.000 -10149639.000 -10149639.000

0.000 0.000 0.000

-10149639.000 -10149639.000 -10149639.000
-8532852 -8532852 -8532852
-17065704 -17065704 -17065704

0.47 0.47 0.47

 Debt /Loan Repayment Schedule

Debt Amount 102394305.00 Period No. Int. Pmt. Prin. Pmt. Total Pmt. Prin. Balance
Debt rate 10.00% 0 102394305.00
Moratorium 0.25 yrs 1 3574525.00 4958333.33 8532858.33 93861446.67
Term 12 years 2 3574525.00 4958333.33 8532858.33 85328588.34
Payment Periods 12 years 3 3574525.00 4958333.33 8532858.33 76795730.01
4 3574525.00 4958333.33 8532858.33 68262871.68
5 3574525.00 4958333.33 8532858.33 59730013.35
6 3574525.00 4958333.33 8532858.33 51197155.02
7 3574525.00 4958333.33 8532858.33 42664296.69
8 3574525.00 4958333.33 8532858.33 34131438.36
9 3574525.00 4958333.33 8532858.33 25598580.03
10 3574525.00 4958333.33 8532858.33 17065721.70
11 3574525.00 4958333.33 8532858.33 8532863.37
12 3574525.00 4958333.33 8532858.33 5.04
le