Confidential

Preliminary Project Proposal

Township Development near
Sukhna Lake, CHANDIGARH

August 20, 2008

CONTENTS
• Location Analysis
¾ Location
¾ Road connectivity & Infrastructure
¾ Location Map & Pictures
¾ Surrounding Development

• Financial Analysis
¾ Cost & Revenue Calculations
¾ Cash Flows
¾ IRR

• Project JV Structure
LOCATION

ƒ Located at:
Village: KANSAL , adjacent to CHANDIGARH
State: PUNJAB

ƒ Land Area: 65 Acres

ƒ The Land is situated opposite Sukhna Bird Santuary 0.2 Kms

ƒ From Sukhna Lake 4 Kms
ƒ Chandigarh Engineering College 4.8 Kms
ƒ Famous Rock Garden 3.5 Kms
ƒ Chandigarh ISBT 6 Kms
ƒ Rajiv Gandhi Technology Park 4.5 Kms
ƒ HUDA Sector, Mansa Devi Complex 1.5 Kms
ƒ Famous Saketri Temple 2.5 Kms
ƒ Famous Mata Mansa Devi Temple 4.5 Kms
ƒ PGI Chandigarh 5 Kms
ƒ Chandigarh Railway Station 7 Kms
ƒ Chandigarh Airport 12 Kms
ROAD CONNECTIVITY & INFRASTRUCTURE

Connectivity Well Connected by 3 Approach Roads

•From Sector 4, Sector 5, CHANDIGARH

•From CHANDIGARH ENGINEERING COLLLEGE, Sector 12
•From Rajiv Gandhi Technological Park, CHANDIGARH
Landmarks ƒSukhna Bird Santuary 0.2 Kms
ƒFrom Sukhna Lake 4 Kms
ƒChandigarh Engineering College 4.8 Kms
ƒFamous Rock Garden 3.5 Kms
ƒRajiv Gandhi Technology Park 4.5 Kms
ƒHUDA Sector, Mansa Devi Complex 1.5 Kms
ƒFamous Saketri Temple 2.5 Kms
ƒFamous Mata Mansa Devi Temple 4.5 Kms

•Chandigarh ISBT 6 Kms

Infrastructure
ƒChandigarh Railway Station 7 Kms
•Chandigarh Airport 12 Kms
•PGI Chandigarh (Medical Research Centre & Hospital) 5 Kms
LOCATION MAP………….Proposed Site under reference in Red with important Landmarks in yellow
SURROUNDING DEVELOPMENT Analysis

•The Land is touching Approach roads from Sector 4, 5, 6 these areas which are having a Market
Sale price of USD 133.33 per Sqft .

•At Present Infrastructure & Real Estate Development is Booming in MOHALI & Chandigarh.

•A very Prime Project of UPPAL’s in 6.5 Acre has been marketed at USD 88.88 per SQFT.

•Another Prime Project launched by AMRAVATI ENCLAVE in 100 Acres is in progress since last 4
years which is towards Haryana Road is being marketed at USD 77.7 per Sqft without negotiations.

•This project can be easily marketed in US & UK Punjabi NRI’s.

PLOT AREA CALCULATIONS
Area of the Plot in Acres 17.5
Less Area in acres to be Developed (Flats) and handed to Society 3.5
NET Area Available for Development AND SALE for Development Company 14.0
Total Saleable Area of Plot in Square Metres 56,658
Total Saleable Area of Plot in Square Feet 609,840
FSI Permissible on Plot for Residential 1.65
FSI permissible on plot for Commercial 3.0
Net SALE Buildable component in Square Feet 1,829,520
Built up Area to be handed over to Society Tenants 251,559
SALE Built Up area (Add 20% on Buildable Squate Feet) 2,195,424
Amenities Area 109,771
TOTAL Market Commercial Saleable Area in Square Feet 2,085,653
PROPERTY DEVELOPMENT MATH & Analysis

Particulars Area in Sale Price Revenue from

Square feet Per Unit in USD Sales In USD

Commercial Area 2,085,653 143 297,950,400

Amenities, Business Club, Restaurants, Service Apartments 109,771 119 13,068,000

Amenities
Business Club Multi Speciality Restaurants Service Apartments
Swimming Pool Gymnasium & Health Spa Concierge Business Services Area
Particulars INR USD

TOTAL INCOME 13,062,772,800 290,283,840

Development Expenses 6,421,167,088 142,692,602

Earnings before Interest & Tax 6,641,605,712 147,591,238

Less Interest Cost on Investments 378,296,342 8,406,585

Earnings after Interest before Tax 6,263,309,370 139,184,653

CASH FLOW

USD USD USD USD USD

Particulars YR1 YR2 YR3 YR4 TOTAL
INFLOW from Sales Revenue 15,550,920 31,101,840 124,407,360 139,958,280 311,018,400
OUTFLOW from Expenses -
Upfront Payment to Billus Enterprises 5,952,381 - - - 5,952,381
Solicitor fees 29,762 29,762 - - 59,524
Stamp Duty (8%) & Registration(1%) Cost 535,714 - - - 535,714
Architect fees (5% of Development & Construction cost ) 3,083,685 2,466,948 308,369 308,369 6,167,370
Govt charges for Permissions Approvals 1,815,000 - - - 1,815,000
Development & Infrastructurte Cost 680,625 680,625 680,625 680,625 2,722,500
Construction Cost of Society Buildings 1,197,900 1,197,900 2,395,800 1,197,900 5,989,500
Construction Cost for Amenities Area 1,176,120 1,176,120 784,080 784,080 3,920,400
Construction Cost of Saleable Commercial Buildings @ Rs 2500 per Sqft 32,670,000 21,780,000 32,670,000 21,780,000 108,900,000
Administration & Miscellaneous Expenses 226,875 226,875 226,875 226,875 907,500
Marketing & Sales Cost 2,383,603 2,383,603 1,191,802 - 5,959,008
Brokerage Paid on Sales 155,509 311,018 1,244,074 1,399,583 3,110,184
Contegencies 2,188,476 1,495,604 1,912,878 1,248,892 6,845,850
Interest on Funds 3,589,578 5,251,760 165,718 - 9,007,056
Taxation - - - - -
Total Outflow 55,685,229 37,000,215 41,580,219 27,626,324 161,891,986

Profit & Loss/ Surplus, Deficit (40,134,309) (5,898,375) 82,827,141 112,331,956 149,126,414
Opening Balance - 0 0 82,827,141 82,827,142
Net cash Flow 0 0 82,827,141 66,299,272 149,126,414
Closing Balance 0 0 82,827,141 149,126,414 231,953,555
CASH FLOW

INR INR INR INR INR

Particulars YR1 YR2 YR3 YR4 TOTAL
INFLOW from Sales Revenue 653,138,640 1,306,277,280 5,225,109,120 5,878,247,760 13,062,772,800
OUTFLOW from Expenses
Upfront Payment to Billus Enterprises 250,000,000 - - - 250,000,000
Solicitor fees 1,250,000 1,250,000 - - 2,500,000
Stamp Duty (8%) & Registration(1%) Cost 22,500,000 - - - 22,500,000
Architect fees (5% of Development & Construction cost ) 129,514,770 103,611,816 12,951,477 12,951,477 259,029,540
Govt charges for Permissions Approvals 76,230,000 - - - 76,230,000
Development & Infrastructurte Cost 28,586,250 28,586,250 28,586,250 28,586,250 114,345,000
Construction Cost of Society Buildings 50,311,800 50,311,800 100,623,600 50,311,800 251,559,000
Construction Cost for Amenities Area 49,397,040 49,397,040 32,931,360 32,931,360 164,656,800
Construction Cost of Saleable Commercial Buildings @ Rs 2500 per Sqft 1,372,140,000 914,760,000 1,372,140,000 914,760,000 4,573,800,000
Administration & Miscellaneous Expenses 9,528,750 9,528,750 9,528,750 9,528,750 38,115,000
Marketing & Sales Cost 100,111,334 100,111,334 50,055,667 - 250,278,336
Brokerage Paid on Sales 6,531,386 13,062,773 52,251,091 58,782,478 130,627,728
Contegencies 91,915,997 62,815,350 80,340,855 52,453,482 287,525,684
Interest on Funds 150,762,291 220,573,909 6,960,142 - 378,296,342
Taxation - - - - -
Total Outflow 2,338,779,619 1,554,009,022 1,746,369,192 1,160,305,596 6,799,463,430

Profit & Loss/ Surplus, Deficit (1,685,640,979) (247,731,742) 3,478,739,928 4,717,942,164 6,263,309,370
Opening Balance - 4 8 3,478,739,936 3,478,739,947
Net cash Flow 4 4 3,478,739,928 2,784,569,435 6,263,309,370
Closing Balance 4 8 3,478,739,936 6,263,309,370 9,742,049,318
IRR and payback Calculation INR INR INR INR INR
Particulars YR1 YR2 YR3 YR4 YR5

Inflow 653,138,640 1,306,277,280 5,225,109,120 5,878,247,760 13,062,772,800

Outflow - - - - -
Net Outflow (1,685,640,979) (247,731,742) 3,478,739,928 4,717,942,164 6,263,309,370
Cumulative Cashflow (1,685,640,979) (1,933,372,721) 1,545,367,207 6,263,309,370 12,526,618,740
IRR 82%
Total Investment (1,933,372,721)
IRR and payback Calculation USD USD USD USD USD
Particulars Yr 1 Yr 2 Yr 3 Yr 4 YR 5

Inflow 14,514,192 29,028,384 116,113,536 130,627,728 290,283,840

Outflow - - - - -
Net Outflow (37,458,688) (5,505,150) 77,305,332 104,843,159 139,184,653
Cumulative Cashflow
IRR 82%
Total Investment (42,963,838)
 Contact Address
BILLUS ENTERPRISES
Chandigarh
Tel :- + +91 00 9814091214
+91 01722748346
+91 00 9855491214
Fax:- +91 00 00000000
email :[email protected].