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Valuation Report

Fair Market Value of GroupHousing Project

ABC Project

At

Sector-74, Noida,U.P.

Submitted to

PNB Housing Finance Ltd

    Submitted By

INDEX

Sr. No. Description Page No.

Valuation Report 3

1. Objective 4

2. Site Inspection 4

3. Basis of valuation 4

4. Methodology 4

5. Market Overview & Region setting 4 -5

6. Location Overview 6-7

7. Location plan & Price Trend 7-8

8. Property Details 9

9. Marketability 9

10. Approvals 10

11. Builder Detail 11

12. Project Detail 11-12

13. Valuation 13-14

14. Conclusion 15

15. Construction Status 15

16. Assumptions 16

17 Remarks 17

18. Declaration  & Disclaimer 17

19. Property photos 18-19

This report has been prepared for valuation of property of 'M/s XYZ Ltd.' as requested by PNBHFL for Internship Program at PNBHFL  and not for public distribution. Neither the whole nor any part of this report nor any reference thereto cannot be used, reproduced by any other entity in any way without the permission of PNBHFL.

-: VALUATION REPORT: -

Based on the available data, together with our analysis and experience in the valuation industry, this is to certify that valuation of Remaining interest in project owned by 'M/s XYZ Ltd' Located at

Sector-74, Noida, U.P. Value of Unsold stock is INR 60.12 Cr as on date.

Date: - 16/07/2016 Signature: -

Place: - Delhi

1.0 Objective of the report

The objective of this report is to arrive at fair market value of an under construction residential Group Housing Project 'ABC Project' Sector-74, Noida,U.P., owned by M/s XYZ Ltd for collateral security.

2.0 Site Inspection

I,______________, along with the Technical services representative inspected the site on 10/07/2016. The details of the observations and the information provided by the representative of the client has been included as part of the report.

3.0 Basis Of The Valuation

Valuation of the assets under consideration is carried out on the basis of our perception about the macro & micro economic factors presently governing the real estate industry, location of property, existing market conditions, degree of development of infrastructure in the area, demand-supply conditions, internal amenities, common amenities etc.

4.0 Methodology

A residual method of valuation has been adopted for finding the fair market value of the property.

5.0 Market Overview

Noida is located in Gautam Buddh Nagar district of Uttar Pradesh state India. Noida is about 20 kilometres (12 mi) southeast of New Delhi, 20 kilometres (12 mi) northwest of the district headquarters, Greater Noida and 457 kilometres (284 mi) northwest of the state capital, Lucknow. It is bound on the west and south-west by the Yamuna River, on the north and north-west by the city of Delhi, on the north-east by the cities of Delhi and Ghaziabad, India and on the north-east, east and south-east by the Hindon River. Noida falls under the catchment area of the Yamuna river, and is located on the old river bed. The city is also famous for its wide roads, excellent maintenance and modern lifestyle.

Noida originally consisted of around 100 villages, but now comes under the Gautum Buddh Nagar District of Uttar Pradesh. As per provisional data of 2011 census, Noida had a population of 642,381, out of which males were 352,577 and females were 289,804. The literacy rate was 88.58 per cent.There are people of almost all major religions like Hinduism, Islam, Christianity, Sikhism, Jainism, Zoroastrianism etc. Noida stands at 17th place when it comes to cleanliness of a city in India; by comparison, Gurgaon and Faridabad in the National Capital Region stand at 87th and 237 respectively. The creation of associated physical infrastructure is higher in Noida and Greater Noida. Gurgaon and Faridabad are at the opposite spectrum. Most of the land in Noida is not very fertile and the agricultural output is low. It is in the flood plains of the Yamuna river on one side and the Hindon river on the other. Many villages are visible from the Noida Expressway, beginning from the Mahamaya flyover to Greater Noida on both sides. One end of Taj expressway terminates on Noida Expressway near Hindon river and other at Agra. U.P. until the 1980s these villages were flooded every 2'3 years, resulting in people temporarily moving to other places in Noida, and even as far as Mehrauli in Delhi.

5.1 Noida Economy

Noida is a major hub for multinational firms outsourcing IT services e.g. Sapient, Fiserv, Headstrong, EXL Service, First Flight Courier LTD, Students-Leads, IBM, Miracle, AON Hewitt, Fujitsu, CSC, TCS, WIPRO, Padma Infocom, HCL, Tech Mahindra, Adobe Systems, Ericsson, Dell, Sparta Consulting, Patni Computers, Corbus, Accenture, Samsung etc. Many large software and business process outsourcing companies have their offices in the city.

Energy and Power Utility companies such as Reliance Infrastructure, NTPC Limited, Tata Power, Gas Authority of India Limited, Indian Oil Corporation, Bharat Heavy Electricals Limited, Oil India Limited, Samsung Engineering, BGR Energy Systems Ltd have their corporate offices in Noida.

Many other companies have their Indian branch offices in Noida, because of many factors, including its Special Economic Zone status, its suburban atmosphere and its proximity to Delhi. Noida also hosts the head office of the Software Technology Park, which was established by the Government of India to promote the software industry. In the Special Economic Zone (SEZ) Sector 135 along the expressway TCS, Accenture, Genpect and Steria have started their offices.

Noida is a major hub of industry. Noida has quickly emerged as a hub for automobile ancillary units, with companies like Escorts, Honda-SIEL, Moriroku Technology India Pvt Ltd and New Holland Tractors (JV of FIAT with Ford). A Daewoo plant was also located in the city, but has since closed. Various MNCs and major manufacturers like Alstom, ISGEC, LG, Samsung, Barclays, Ericsson and music company T-Series also have their corporate offices in the city.

Film city, established by Sandeep Marwah, is a hub for major news channels and studios. News channels such as Zee News, NDTV, TV Today groU.P., CNN-IBN, CNBC, NewsX, India TV are situated here. Noida's proximity to Delhi, which is the political hub of the country, makes it an attractive destination for news channels. Commercial activities have also risen in recent years, with a spate of new malls and multiplexes.

Development in industry, commerce and trade have led Noida to be a model city in U.P.. It is a major revenue earner for the government through taxes. The Noida model is now being replicated across various cities in U.P., with a proactive development agency working to achieve high growth rates for business, industry and commercial ventures.

6.0 Location Overview

Developers and builders are coming U.P. with many in Noida-Greater Noida. On offer are a slew of housing options in different sectors of these twin cities. Sectors 34, 50, 74, 77, 76, 78 & 79 all near Noida Extension, are being developed at a rapid rate. Here, prices are competitive in comparison to the other sectors of Noida.

Sector-74 is one of the prime localities of Noida. The price trend in Sector-74 has been witnessing a downtrend. The price per sq ft was Rs 4067 in Oct-Dec 2011 quarter which rose to Rs 5040 in the next quarter of Jan-Mar 2012. In the succeeding Apr-June 2012 quarter, the rate per sq ft fell to Rs 4354. But the price in the locality are stable and increase gradually and demand also in mind as the development is near Near to Metro City Center Noida, Fortis Hospital, Noida, Proposed Metro Station at Sector-78 to Expressway to Greater Noida

7.0 Location Plan

8.0 Property Details

8.1 Name of the owner

M/s XYZ Ltd

8.2 Address of the Property

Sector-74, Noida,U.P.

8.3 Class of Locality

Under Developing stage

8.4 Proximity to Civic Amenities & Location

Within a radius of 10 Km.

8.5 Site Area

XX acres

9.0 Marketability

XYZ Ltd brings forth a first of its kind luxurious project under the name ABC at Sector 74, Noida. These Luxuriously comfortable and soul pampering homes offer a range of hi-end lifestyle abodes like Independent Villas, Penthouses and Luxury Apartments. Apart from this the location also adds to the value of the project in terms of serenity and peace. Though this neighbourhood has abundant supply of new projects, there is steady end use demand.

Connectivity

' 10 Mins away from Sector-32 Noida District Central

' Excellent connectivity with major landmarks in Delhi NCR

' Reputed institutional & medical facilities in close vicinity

' Utility points like ATM, Banks, Shopping malls, within the radius of 3-5 kms

The surrounding area is yet to be developed and this has given the authority and developers a chance to carry on a planned development here. As it is near district centre Noida, one can travel to Delhi. The place enjoys the status as the most well planned city in NCR, having high connectivity with Delhi as well as Ghaziabad (15-minute drive), Greater Noida (20 minutes), Vasundhara (30 minutes), Indirapuram (20 minutes), Vaishali (25 minutes) Strategic location with convenient approach located at Noida, Ghaziabad & Greater Noida. Thus considering the demand, proposed infrastructure, etc. the projects shall have good marketability subject to the condition that developer gives scheduled completion of the project.

10.0 Approvals

Approvals Provided

Complete Set of Sanctioned Plans

Inventory in specified format

Environmental Clearance

Height Clearance

Pollution Clearance

11.0 Builder Detail

XYZ India Limited is a flagship company of XYZ Ltd Group, which was incorporated on November 11,1991 as XYZ Ltd Farms and Services Private Limited Company. The company was converted into a public limited company on April 13, 1992 and name of the company was changed to XYZ India Limited on March 12, 2009.

The group operates in the Real estate industry and has provided the much needed housing facility and infrastructure support for the needy middle income groups in Dilshad Colony, Vivek Vihar and surrounding areas in Delhi as well as in Shalimar Garden, Vikram Enclave, Ram Prastha, Surya Nagar, Vaishali, Vasundhara, Indirapuram, Crossing Republik etc. across the border in Uttar Pradesh. The group has successfully completed various housing projects of different sizes and catered to different requirements. It has built U.P. a reputation at par with the top ranking builders and developers in the East Delhi areas. The group is amongst the prime builders in the East Delhi having successful track record of over 17 years.

12.0 Project Detail

M/s XYZ Ltd is developing Group Housing complex named as ABC Project, and got plans approved for developing high rise towers with 255 dwelling units. Currently there are 2 towers with approved building structure of 2B+G+26. The subject development is at initial stage. Thus progress is 8%

13.0 Valuation Based on residual Method

    

Valuation of "ABC Project"

S.No. Unit Amount

ASSUMPTIONS

1 Built up area Area of group housing Sq ft 5,05,696

2 Add for loading - of saleable area Sq ft

3 Salable area of Residential (total) Sq ft 3,85,945

4 Salable area of Commercial Sq ft 18,500

5 Construction area for basement Sq ft 37,889

6 Cost of construction per sq ft. for Residential Rs. 1,600

7 Cost of construction per sq ft. for commercial Rs. 1,100

8 Cost of construction per sq ft. for Basement Rs. 900

9 Construction cost (Residential+Commercial) Rs. 6378,62,000

10 Construction cost for basement Rs. 341,00,468

11 Total Construction Value Rs. 6719,62,468

12 Average ongoing sale price (Residential) Rs/sqft 4,800

13 Average ongoing sale price (Commercial) Rs/sqft 27,000

14 Average price for parking sale per parking 3,50,000

15 No of car parks 255

REVENUE

16 Group Housing-Residential Rs 18525,36,000

17 Commercial Rs 4995,00,000

18 Car parking Rs 892,50,000

19 EDC/IDC Rs

20 Other Charges Rs

21 Net Revenue Rs 24412,86,000

EXPENSES

22 Site Development Cost @20,00,000/- per acre Rs 25,65,884

23 Super Structure Construction Cost Rs 6378,62,000

24 Basement Cost Rs 341,00,468

25 Add for Architect fees (4%) Rs 268,78,499

26 Marketing Expenses (6%) Rs 1464,77,160

27 Contingencies (5%) Rs 335,98,123

28 Builder profit 20% Rs 4882,57,200

29 Proportionate Cost of funds (50% of total cost @ 14.5% for an average of 3 Years ) Rs 1917,22,364

30 Land Cost to be Paid to the Authority Rs 1700,00,000

31 FSI Cost to be paid Rs 1791,00,000

32 Total Expenses Rs 19105,61,699

NET VALUE

33 Net Value of Land Rs 5307,24,301

34 FSI Cost as on date Rs/sqft 1,049

35 FSI Cost on saleable area basis as on date Rs/sqft 1,375

Project Value On Completion

36 Project Value(Land+Construction) Cr 141

Project Value As on Date

37 Stage of Construction % 8%

38 Recommended % 8%

39 Present Value of construction Cr 7.05

40 Present Project Value (Land+Construction) Cr 60

Value Of Unsold Stock

41 Unsold Area sqft 4,04,445

42 Unsold Stock As on Date Cr 60.12

43 Value of Unsold Stock On Completion Cr 148

Note

Saleable area taken as per provided by developer

14.0 Conclusion

Considering location of property, marketability, demand & Supply, amenities and taking economic factors affecting the real estate industry/value and based on the information and actual observation valuation of Remaining interest in the property owned by property owned by 'M/s XYZ Ltd Located at Sector-79, Noida, U.P. is Value of Unsold stock is 60.12 Cr as on 14/07/2015, i.e. date of valuation.

15.0 Construction Status for Multi-storeyed

Presently the project is at initial stage of construction with excavation work being complete and overall progress is 8%

16.0 Assumptions

' This report is to be used in whole and not in part.

' Title of the property is clear and marketable. Any change in the status will significantly affect the valuation.

' The construction cost is assumed on the basis of site visit as per specification conveyed by Builder. All information (including inventory status, financial operating statements, estimates, and opinions) obtained from Owner's is assumed to be true and correct.

' It is assumed that the Developer has physical ownership of land.

' All the requisite approvals have been taken by the developer.

' This report is valid for 90 days from the date of Valuation.

17.0 Declaration

' The property was inspected by me/us.

' I/we have no direct or indirect interest in the property valued

' The information furnished above is true and correct to my/our knowledge.

Date: - 14/07/2015 Signature: -

Place: - Delhi

DISCLAIMER: This valuation report may contain an Estimated Market Value ("EMV"), Discounted Cash Flow analysis ("DCF"), and other associated assessment analytics for property. This is the product of combination of valuation technology, public record, and economic and other data to provide an estimate of the most probable market value of a property. This valuation contains no representations or warranties of any kind including but not limited to warranties regarding marketability, functional or economical obsolescence, and environmental contamination or flood insurance determination. This valuation does not warrant the accuracy or completeness of any public record information or data sources used to prepare this valuation report. This data may not be re-sold, re marketed, published, or incorporated into other products or services in any form or manner whatsoever.

18.0 Project Photo

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