PROJECT DETAILS

VARDHAN CONSTRUCTION has acquired a piece of land near Gurugram HR and wants to develop a residential building having
they are expectig to sell the flats at rate of Rs. 4000 sq/ft. The expected capex is Rs.8 crore and Opex is Rs. 50 lakh p.a. For the
VARDHAN CONSTRUCTION are planning to seek for non recourse debt as DEBT:EQUITY ratio as 70:30 from a leading commerc

Considering this case as a classic / simple case of Non-Recourse Debt (Project Finance), we prepared the financial model and a
collection and debt repayment to figured out if the project is feasible for financing or not. We took proper assumptions for the a
COST SHEET

Project Cost (CapEx) Rate

(Rs./sq.ft) 5000 % of Project Cost
Land 4000 20,000,000 25.0%
Flat Construction Cost 2000 10,000,000 12.5%
Interior Decoration 2500 12,500,000 15.6%
Furniture 2500 12,500,000 15.6%
Lift 500 2,500,000 3.1%
Fixture 1400 7,000,000 8.8%
Building registration 200 1,000,000 1.3%
Brokerage fees 360 1,800,000 2.3%
Stamp duty 500 2,500,000 3.1%
Fund Raising Fee 50 250,000 0.3%
Transfer of deed fund 50 250,000 0.3%
Interest During Moratorium 60 300,000 0.4%
Loan and Documentation Fee 250 1,250,000 1.6%

CSR, HSE, Training 1630 8,150,000 10.2%

Total Project Cost 80,000,000 100.00%

O & M Cost (Monthly Breakdown) (OpEx)

Building Maintainence 50 250,000
Utilities (Electric + Water + Internet) 200 1,000,000
Salary (Maid + Acountant) 100 500,000
Plumber + Electrician + Misc etc 80 400,000
Insurance (0.35 %) 570 2,850,000

Total O&M Cost (per year) 5,000,000

REVENUE SHEET

Revenue Parameters
City Gurugram, Haryana
Size (Sq. ft) 5,000.00
Sixe per flat (sq ft) 900.00
No of floors 10.00
No of flats 50.00
Selling price (sq ft) 4,000.00
Selling price per flat 3600000
Flat appreciation 10%
Sales commission 2%

Year 1 2 3 4 5 6
Flat sold per year 5 5 5 5 5 5
Sales 18.000 19.800 21.780 23.958 26.354 28.989
Sales commission 0.120 0.132 0.145 0.160 0.176 0.193

Total Revenue 17.880 19.668 21.635 23.798 26.178 28.796

 7 8 9 10
5 5 5 5
31.888 35.077 38.585 42.443
0.213 0.234 0.257 0.283

31.676 34.843 38.327 42.160

ASSUMPTIONS

PROJECT DETAILS ASSUM

Size in Sq. Ft 5000 80.00 Inflation 7.66%
size per flat 900 Tax rate 12.00%
No of flats 50 Debt rate 10.00%
Equity 30% 24.00 Morartorium 10.00 yrs
Debt 70% 56.00
Debt Service Resv (DSR) 0.10 yrs

FINANCIAL FLOW

Year Today COD 1 2

Date 10/8/2022 11/13/2022 11/30/2023 11/30/2024

Revenue collection 18.00 19.80

Sales commission 0.12 0.13
Total revenue 17.88 19.67
Operating expenses
Building maintainence 3.00 3.23
Utilities ( Electric + Water + Internet) 12.00 12.92
Salary ( Maid + Accountant) 6.00 6.46
Plumber + Electrician + Misc exp 4.80 5.17
Insurance 34.20 36.82
Total Operating expenses 60.00 64.60

EBIDTA -42.12 -44.93

Non Operating expenses
Interest payment -5.51 -5.24
Depreciation -0.50 -0.48
Total Non Operating Expenses -6.01 -5.72
Income before tax -48.13 -50.64
Tax -5.78 -6.08
Total income -53.90 -56.72
Cash flow
Equity -24 0 0
Net income -53.90 -56.72

(+) Depreciation 0.50 0.48

(-) Principle 2.56 2.83
Final project cashflow -24 -50.84 -53.42

DSCR -16.25 -21.12

Final Project Cashflow -56.00 2.95 2.42

 ASSUMPTIONS RESULTS
Debt tenure 12 yrs Discount 10.00% Equity IRR 0.00%
Depreciation 5.00% USD/ INR 79.33 Min DSCR -131.83%
Construction time 0.10 yrs DDT 0 Avg DSCR 12.46
MAT 15.00% Flat Appreciation 10.0% Project IRR -23.37%

3 4 5 6 7 8
11/30/2025 11/30/2026 11/30/2027 11/30/2028 11/30/2029 11/30/2030

21.78 23.96 26.35 28.99 31.89 35.08

0.15 0.16 0.18 0.19 0.21 0.23
21.63 23.80 26.18 28.80 31.68 34.84

3.48 3.74 4.03 4.34 4.67 5.03

13.91 14.97 16.12 17.36 18.69 20.12
6.95 7.49 8.06 8.68 9.34 10.06
5.56 5.99 6.45 6.94 7.47 8.05
39.64 42.68 45.95 49.46 53.25 57.33
69.54 74.87 80.61 86.78 93.43 100.58

-47.91 -51.07 -54.43 -57.98 -61.75 -65.74

-4.95 -4.62 -4.27 -3.87 -3.44 -2.96

-0.45 -0.43 -0.41 -0.39 -0.37 -0.35
-5.40 -5.05 -4.67 -4.26 -3.80 -3.30
-53.31 -56.12 -59.10 -62.24 -65.56 -69.05
-6.40 -6.73 -7.09 -7.47 -7.87 -8.29
-59.70 -62.86 -66.19 -69.71 -73.42 -77.33

0 0 0 0 0 0
-59.70 -62.86 -66.19 -69.71 -73.42 -77.33

0.45 0.43 0.41 0.39 0.37 0.35

3.12 3.44 3.80 4.19 4.63 5.11
-56.13 -58.99 -61.99 -65.13 -68.43 -71.87

-29.70 -48.94 -131.84 203.13 58.36 34.37

1.83 1.18 0.47 -0.32 -1.19 -2.15

 EBIDTA
0 1 2 3 4 5 6 7 8

-10

-20 -42.12 -44.93

-47.91 -51.07
-54.43
-57.9
9 10 -30
11/30/2031 11/30/2032
-40
38.58 42.44
0.26 0.28 -50
38.33 42.16
-60
5.41 5.83
-70
21.66 23.32
10.83 11.66
-80
8.66 9.33
61.73 66.45
108.29 116.58

-69.96 -74.42

-2.43 -1.84
-0.33 -0.32
-2.76 -2.15
-72.72 -76.58
-8.73 -9.19
-81.45 -85.77

0 0
-81.45 -85.77

0.33 0.32
5.64 6.23
-75.47 -79.23

24.48 19.06

-3.21 -4.39
 EBIDTA
3 4 5 6 7 8 9 10 11 12

2.12 -44.93
-47.91 -51.07
-54.43
-57.98
-61.75
-65.74
-69.96
-74.42
 Debt /Loan Repayment Schedule

Debt Amount 56.00 Period No. Date (EoQ) Int. Pmt. Prin. Pmt.Total Pmt. Prin. Balance
Debt rate 10.00% 0 13-Nov-2022 1.40 0 1.40 56.00
Moratorium 0.10 yrs 1 11-Feb-2023 1.40 0.62 2.02 55.38
Term 12.0 yrs 2 12-May-2023 1.38 0.63 2.02 54.75
Payment Periods 48 3 10-Aug-2023 1.37 0.65 2.02 54.10
One period is one quarter 4 8-Nov-2023 1.35 0.66 2.02 53.44
COD 13-Nov-2022 5 6-Feb-2024 1.34 0.68 2.02 52.76
First Quarter End 11-Feb-2023 6 6-May-2024 1.32 0.70 2.02 52.06
7 4-Aug-2024 1.30 0.71 2.02 51.35
8 2-Nov-2024 1.28 0.73 2.02 50.62
9 31-Jan-2025 1.27 0.75 2.02 49.86
10 1-May-2025 1.25 0.77 2.02 49.09
11 30-Jul-2025 1.23 0.79 2.02 48.31
12 28-Oct-2025 1.21 0.81 2.02 47.50
13 26-Jan-2026 1.19 0.83 2.02 46.67
14 26-Apr-2026 1.17 0.85 2.02 45.82
15 25-Jul-2026 1.15 0.87 2.02 44.95
16 23-Oct-2026 1.12 0.89 2.02 44.06
17 21-Jan-2027 1.10 0.91 2.02 43.14
18 21-Apr-2027 1.08 0.94 2.02 42.20
19 20-Jul-2027 1.06 0.96 2.02 41.24
20 18-Oct-2027 1.03 0.99 2.02 40.26
21 16-Jan-2028 1.01 1.01 2.02 39.25
22 15-Apr-2028 0.98 1.04 2.02 38.21
23 14-Jul-2028 0.96 1.06 2.02 37.15
24 12-Oct-2028 0.93 1.09 2.02 36.06
25 10-Jan-2029 0.90 1.11 2.02 34.95
26 10-Apr-2029 0.87 1.14 2.02 33.80
27 9-Jul-2029 0.85 1.17 2.02 32.63
28 7-Oct-2029 0.82 1.20 2.02 31.43
29 5-Jan-2030 0.79 1.23 2.02 30.20
30 5-Apr-2030 0.76 1.26 2.02 28.94
31 4-Jul-2030 0.72 1.29 2.02 27.65
32 2-Oct-2030 0.69 1.33 2.02 26.32
33 31-Dec-2030 0.66 1.36 2.02 24.97
34 31-Mar-2031 0.62 1.39 2.02 23.57
35 29-Jun-2031 0.59 1.43 2.02 22.15
36 27-Sep-2031 0.55 1.46 2.02 20.68
37 26-Dec-2031 0.52 1.50 2.02 19.18
38 25-Mar-2032 0.48 1.54 2.02 17.65
39 23-Jun-2032 0.44 1.58 2.02 16.07
40 21-Sep-2032 0.40 1.61 2.02 14.46
41 20-Dec-2032 0.36 1.65 2.02 12.80
42 20-Mar-2033 0.32 1.70 2.02 11.11
43 18-Jun-2033 0.28 1.74 2.02 9.37
44 16-Sep-2033 0.23 1.78 2.02 7.59
45 15-Dec-2033 0.19 1.83 2.02 5.76
46 15-Mar-2034 0.14 1.87 2.02 3.89
47 13-Jun-2034 0.10 1.92 2.02 1.97
48 11-Sep-2034 0.05 1.97 2.02 0.00
ule

Date (EoQ) Int. Pmt. Prin. Pmt. Total Pmt.

30-Nov-2023 5.51 2.56 8.07
29-Nov-2024 5.24 2.83 8.07
29-Nov-2025 4.95 3.12 8.07
29-Nov-2026 4.62 3.44 8.07
29-Nov-2027 4.27 3.80 8.07
28-Nov-2028 3.87 4.19 8.07
28-Nov-2029 3.44 4.63 8.07
28-Nov-2030 2.96 5.11 8.07
28-Nov-2031 2.43 5.64 8.07
27-Nov-2032 1.84 6.23 8.07
27-Nov-2033 1.19 6.87 8.07
27-Nov-2034 0.48 7.59 8.07
Total 40.78 56.00 96.78