Reliance PMS Solutions

All Season Debt Shield

Aggressive Return Option
March 2011

A Reliance Capital
A Reliance company
Capital company
 Why Invest

 Background

 Project Background, Strengths & Terms

 Security & Repayment

A Reliance
A Reliance Capital
Capital company
company
Why Invest
 An opportunity to invest in a non convertible debenture which is backed by 66 unsold, ready to occupy apartments in 3
residential towers

 More than 80% of the apartments in the 3 towers have already

been sold. Majority of the apartments have been occupied and

people are using the building amenities

 Part of a mixed use complex. The complex includes a school,

“Vidya Mandir”, and the same is fully operational

 Security cover of more than 2 times

 Cash flows from the sale of residual apartments of 3 constructed Actual Image

towers will be used to retire the securities

 Arun Excello is a real estate group with a track record of successfully developing several residential projects over the past
15 years

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Background
 L&T Arun Excello Realty Pvt Ltd. is a 67:33 joint venture between Arun Excello and Larsen & Toubro Urban
Infrastructure Ltd. a subsidiary of Larsen & Toubro Ltd

 Arun Exello group has developed several projects over the past 15 years. It is based out of Chennai and has been
actively involved in engineering and construction projects for the last 2 decades

 Mr. P. Suresh is the Chairman of the group. The group is held and managed by technocrats each having around 20 years
of industry / business experience

 Mr. P.Suresh, Managing Director of L&T Arun Excello Pvt. Ltd., is an engineer from IIT, Kharagpur, with work experience
of 28 years. He has been instrumental in developing and implementing strategies for companies growth, formulating
strategic alliances and taking care of project planning, scheduling and monitoring

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Key Strengths of the project
 The project site is well connected by roads (MTC bus service), railways (Potheri & Guduvancherry station located within
1.5 Kms) and airport ( 18 kms)

 Three towers are ready and 80% of the flats have been sold with people staying in them and using the building amenities

 Large corporations have their offices / manufacturing facilities in the vicinity such as Ford, Nissan, Renault, Apollo Tyres,
BMW, TVS, Nokia, Motorola, Infosys, Cognizant and many others

 Around 30,000 students are enrolled within various institutes located in neighborhood. SRM university shares a common
boundary wall with the project

 The project site has road frontage to six lane national highway no. 45

 “Walk to work” concept by developing an IT SEZ park in the adjacent location

 A school, “Vidya Mandir”, is in the complex and is fully operational

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Key Terms of the Investment
 Issuer: L & T Arun Excello Realty Pvt. Ltd.

 Instrument: Secured, redeemable, unrated, unlisted, Non Convertible Debentures

 Tenure: 2 years

 Repayment: Repayment will be done in 24 Equated Principal installments, plus interest on outstanding principal,
payable on the 15th of every month

 Indicative Yield: 16% p.a. payable on the principal outstanding at the 15th of every month

 Others: Shareholding of Arun Excello group shall not fall below 67% in L&T Arun Excello Realty Pvt. Ltd.
throughout the tenure of the debenture

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Security & Repayment
 66 unsold apartments in 3 towers and hypothecation of all receivables arising from the sale of these 66 apartments in future.
Hypothecation of all amounts yet to be collected from the flats already sold in all the 3 towers

 2.6 acres of land in which is part of the overall complex

 Aluminium moulds used for the construction of the project

 All of the above put together aggregates to over 2 times cover

 Corporate guarantee from M/s. Arun Excello Constructions, Arun Excello Urban Infrastructure Private Limited, Arun Excello
Foundations Private Limited

 Personal guarantee of all 4 directors of Arun Excello

 PDC’s signed by Mr. P Suresh (Managing Director) in his capacity as authorized signatory of L&T Arun Excello Realty

 Cash flows from the sale of residual apartments of 3 constructed towers will be used to retire the securities

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The Estancia Project
 The project shall be made in 82 acres of land at
Maraimalai Nagar, Guduvanchery, on GST Road (NH
45), near SRM Engineering college

 The project consist of 3 major components

o 29 acres of ITSEZ, with 3.04 million square feet of

office space which will accommodate 50000
professionals

o 12 acres of commercial and retail development

with a hotel service apartment, a mall cum
multiplex and a school

o 41 acres of residential gated township with over

2000 apartments

 The residential land has been ear marked for

constructing 17 towers, to be constructed in 3 phases.
First phase would construct 5 towers and the next 2
phases would construct 6 towers each

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Risk Factors
Investments in securities are subject to market risks and there is no assurance or guarantees that the objectives of any of the
Product / Option will be achieved. Investors are not being offered any guaranteed or indicative returns through any of the
Product / Options. The investments may not be suited to all categories of investors. The past performance of the Portfolio
Manager in any Product / Option is not indicative of the future performance. There is no assurance that past performances
indicated in earlier Product / Option will be repeated. The names of the Product / Options do not in any manner indicate their
prospects or returns. The various factors which may impact the value of the Product / Option investments include, but are not
limited to, fluctuations in the equity and bond markets, fluctuations in interest rates, prevailing political and economic
environment, changes in government policy, factors specific to the issuer of the securities, tax laws, liquidity of the underlying
instruments, settlement periods, trading volumes etc. The investment could result into concentration on a specific asset/ asset
class/sector/ issuer etc., which could lead to non diversified portfolio which tends to be more volatile than diversified portfolio.
The inability of the Portfolio Manager to make intended securities purchases due to settlement problems could cause the
Product/Option to miss certain investment opportunities as in certain cases, settlement periods may be extended significantly by
unforeseen circumstances. Similarly, the inability to sell securities held in the portfolio may result, at times, in potential losses to
the Product/Option, should there be a subsequent decline in the value of the securities held in the portfolio of Product/Option.
The Structured Notes like the Non Covertible Debentures, in which funds are proposed to be invested in, are high risk
instruments. The return on investment in securities would depend on the prevailing market conditions, both domestically as well
as internationally. The portfolio Manager is not responsible or liable for any loss resulting from the operations of the Products/
Portfolios.

Reliance Capital Asset management is a SEBI registered Portfolio Manager.

Please read the Disclosure Document before investing.

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Disclaimers
The investments will be made in non convertible debenture. The Aggressive Returns option has been launched under is Option
has been launched under the All Season-Debt Shield. Aggressive Returns Option is a highly flexible investment option, which
offers a diversified investment portfolio across ratings and the yield curve. This option follows an aggressive approach to portfolio
construction with focus on: highly active money management, using cash and interest rate derivatives (if necessary) as
investment tools.The Portfolio Manager would endeavor to generate on a consistent basis superior risk adjusted returns and
capital appreciation by taking an active view on the markets in terms of interest rate movements or any other factor that may
affect it. The duration of the debt portfolio would primarily be managed with an attempt to generate coupon income with
minimum interest rate risk. The Portfolio Manager would either hold a single security / concentrated portfolio or hold a diversified
portfolio to mitigate the risk associated with debt securities.
The views expressed herein are the personal views of the Author. The views constitute only the opinions and do not constitute
any guidelines or recommendation on any course of action to be followed by the readers. This information is meant for general
reading purpose only and is not meant to serve as a professional guide for the readers. This document has been prepared on
the basis of publicly available information, internally developed data and other sources believed to be reliable. The Sponsor, The
Investment Manager, The Trustee or any of their respective directors, employees, affiliates or representatives do not assume any
responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Whilst no action has been
solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and
opinions given fair and reasonable. This information is not intended to be an offer or solicitation for the purchase or sale of any
financial product or instrument. Recipients of this information should rely on information/data arising out of their own
investigations. Viewers are advised to seek independent professional advice and arrive at an informed investment decision
before making any investments. None of The Sponsor, The Investment Manager, The Trustee, their respective directors,
employees, affiliates or representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or
exemplary damages, including lost profits arising in any way from the information contained in this material.

The Sponsor, The Investment Manager, The Trustee, any of their respective directors, employees including the fund managers,
affiliates, representatives including persons involved in the preparation or issuance of this material may from time to time, have
long or short positions in, and buy or sell the securities thereof, of company(ies) / specific economic sectors mentioned herein

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