Internship Project

On
“FINANCIAL MODELING AND ANALYSIS OF 50 FLATS HOUSING
PROJECT IN GURGAON, HARY

A Summer Internship Project Report submitted in partial fulfilment of the

requirements for the award of the degree of

Post Graduate Diploma in Management

Submitted by

G. Ashrita Reddy
Roll No: 2201199

Under the Guidance of

Prof. Rama Krishna Yelamanchili

IPE, Hyderabad

Institute of Public Enterprise

Hyderabad, Telangana, India -500101
2022-2023

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 Institute of Public Enterprise
Hyderabad, Telangana, India -500101

Declaration
I hereby declare that the work presented in the project entitled “A Report on Financial Modelling and Analysis of
50 Flats Housing Project in Gurgaon, Haryana IN”, is a Summer Internship Project Report submitted in partial
fulfilment of the requirements for the award of the degree of Post Graduate Diploma in Management is an
authentic record of my work carried out during a period from 1st June 2022 to 31st July 2022 under the supervision
of prof. Rama Krishna .Y, mentor and PGDM programme coordinator ,Institute of Public Enterprise, Hyderabad.

The matter presented in this project work has not been submitted by anyone or by me for the award of any other
degree of this or any other Institute/University.

G. Ashrit Reddy
2201199

ACKNOWLEDGMENTS

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 It gives me great pleasure to express my admiration and gratitude to my mentor and guide, prof. Rama Krishna. Y,
Associate Professor, Institute of Public enterprise, for his wisdom, vision, expertise, guidance, enthusiastic
participation, and persistent encouragement throughout the planning and development of this research work. I
also want to thank him for his tireless efforts in going over and revising the manuscripts, without which this job
would not have been possible. I am grateful to Prof. S. Sreenivasa Murthy, Director, IPE, and Dean of Academic
and Chairman Placements, IPE, as well, IPE, for giving all the facilities, assistance, and encouragement needed to
complete the research.

I would also like to convey my heartfelt gratitude to my industry mentor Kritika Verma for her constructive
comments, support, and encouragement.

I'd also like to express my gratitude to I would also want to thank Professor A.S Kalyan Kumar, faculty and SIP
Coordinator, IPE, and other IPE, Hyderabad staff members for their prompt assistance and cooperation throughout
the Summer Internship Programme.

Finally, I am grateful to the Almighty for assisting me in this endeavour.

G. Ashrita Reddy

2201199

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 Executive Summary
The purpose of this report is to illustrate the project's financial analysis and feasibility. With the assistance of
Vardhan Consulting Engineers (VCE), I worked on the analysis and feasibility assessment of a real estate project in
Gurugram, Haryana, since real estate has shown to be a real engine of growth. Over the years, the real estate sector
in India has emerged as a major driver of economic growth, ranking second only to agriculture in terms of
employment. India's global competitiveness remains restrained and is harmed by a lack of infrastructure, which is
crucial for increased productivity across the economy. However, meeting the Eleventh Plan's investment targets
faces several different problems.
Government financial resources in India are becoming increasingly constricted when it comes to financing
infrastructure projects. Public-private partnerships (PPPs) have emerged as a viable option for financing
infrastructure requirements in this environment. The patterns in PPP funding indicate numerous concerns with
consequences for the Indian government's large-scale PPP programme. PPPs have relied significantly on commercial
banks for debt funding, and it is unclear how long this reliance will last. Banks are exposed to the risk of asset
liability mismatch when they use long-term borrowing. An active bond market can boost the flow of long-term
capital while decreasing reliance on banks. In India, public-private partnerships face obstacles such as a lack of a
sophisticated financial sector, fiscal barriers, red tape, and procedural inefficiencies that have contributed to project
delays and discouraged private investors, and constraints resulting from a lack of adequate infrastructure regulation,
which exacerbates risks and uncertainties for investors. Haryana has several projects in the pipeline for private
investment using the Public Private Partnership model.
The company Tech Vardhan Infra Pvt Ltd. intends to build a residential building. The flats and offices will be built on
private property. The planned project will require around 4000 square feet of land.
PROJECT COST: The planned project will cost Rs. 8 Cr.

I worked from home for this internship "Project finance - Modelling and Analysis" because a physical internship was
not possible because to the pandemic COVID-19 lockdown. My internship project is titled Financial Modelling and
Analysis of a 50-Flat Housing Project in Gurgaon, Haryana, IN. I created a financial model for a 50-flat housing
project in Gurgaon, Haryana.
The goal of this is to research and analyse the project's financial viability using the revenue model, equity IRR,
minimum DSCR, average DSCR, project IRR, and process flow. Using this approach, the bank can determine whether
to issue a loan to the client. Banks also examine creditworthiness and future benefits.

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Cover page 1

Declaration 2

Mentor Certificate 3

Acknowledgements 4

Certificate of Completion 5

Certificate of Completion-Company 6

Executive Summary 7

List of Maps 9

List of Tables 9

List of Figures 9

Abbreviations 10

Chapter 1: Introduction to Real Estate 12

Map no. 1 Gurugram city layout 11
1.1 Overview of Real Estate in India 13

1.2 Infrastructure development in Gurugram 15

Table no. 1 Raw material Requirement 25
Chapter 2: project financing 16
Table no. 2 Details of existing land use 27
2.1 Project finance – primer and uses 17
Table no. 3 Details of existing social infrastructure 27
2.2 Parties involved and transaction flow 17
Table no. 4 Details of land use breakup 28
2.3 Advantages and Disadvantages 18
Table no. 5 Details of dwelling units 28
2.4 Real estate project finance- definition and industry terms 19
Table no. 6 Project implementation schedule 32
2.5 Real estate development timeline 20
Table no. 7 Project details 33
Chapter 3: Project description 22
Table no. 8 CAPEX cost Estimation 33
3.1 Type and location of project 23
Table no. 9 OPEX cost Estimates 34
3.2 Selection of proposed site 23
Table no. 10 Revenue parameters estimates 34
3.3 Raw material Requirements 23
Table no. 11 Other assumptions 35
3.4 Availability of water and power 23
Table no. 12 Revenue (net projected) 35
3.5 Generation of waste and its treatment 24
Table no. 13 in flow statement 36
3.6 Site analysis 24
Table no. 14 Debt/ repayment schedule 37
3.7 Project planning brief 25

3.8 Proposed infrastructure 25

Figure no. 1 Market growth forecast 13
Chapter 4: Project schedule and financial model 28
Figure no. 2 Parties involved in Project Finance 18
4.1 Project schedule 29
Figure no. 3 Solid waste management 29
4.2 Project cost assumptions 29
Figure no. 4 Distribution of project cost (CAPEX 41
4.3 preparation of financial model 31
Figure no. 5 Distribution of Operating Expenses (OPEX 41
Chapter 5: Results and feasibility study 35
Figure no. 6 Total operating expenses growth (2023-2032) 42
5.1 Financial feasibility analysis 36
Figure no. 7 Revenue growth (2023-2032) 42
Chapter 6: conclusion 40
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bibliography 42
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 ABRREVATIONS
GDP Gross Domestic Product

CAGR Compound Annual Growth Rate

REIT Real Estate Investment Trust

AIF Alternate Investment Fund

PMAY Pradhan Mantra Awas Yojana

DTCP The Directorate Of Town And Country Planning

RERA Real Estate Regulation & Development Act

CREAI The Confederation Of Real Estate Developers Association

NCR National Capital Region

NH National Highway

CAPX Capital Expenditure

SPV Special Purpose Vehicle

O&M Operation & Maintenance

D&B Design & Building

GMC Gurugram Municipal Corporation

DHBN Dakshin Haryana Bijli Vitran Nigam

IRR Internal Rate Of Return

DSCR Debt Service Coverage Ratio

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 PLOTTED BUILDING

BUBU

BUIK

Map .1 Gurugram city layout

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 CHAPTER-1:

INTRODUCTION TO REAL ESTATE

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