Financial Modeling and Analysis of 50 Flats Housing Project in Gurgaon, Haryana IN.

Financial Modelling & Analysis on Housing Project.
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Internship Report, July 2020
Financial Modelling & Analysis.
Title: Financial Modelling & Analysis of 50 Flats in Gurgaon,
Haryana
Submitted By: Bhavika Rohira
Email: rohirabhavika17@gmail.com
Masters in Business Administration (MBA) 1st Year (Finance).
College: Sandip Foundation, Sandip Institute of Technology & Research Centre,
Department of Management Studies, Nashik.
Submitted to: Vardhan Consulting Engineers (VCE)
Mentor: Mr. Ashish Kumar and HR & Internship Coordinator: Neha Kumari

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Contents
TITLE: FINANCIAL MODELLING & ANALYSIS OF 50 FLATS IN GURGAON, HARYANA...............1
CONTENTS .............................................................................................................................................................................2
ACKNOWLEDGEMENT....................................................................................................................................................3
EXECUTIVE SUMMARY ..................................................................................................................................................4
CH.1 INTRODUCTION T
O PROJE
CT FINANCE................................................................................................................5
INTRODUCTION TO FINANCIAL MODELLING & ANALYSIS........................................................................................6
INTRODUCTIONTO REAL ESTATE......................................................................................................................................7
CH.2 BACKGROUND OF REAL ESTATE. .................................................................................................................8
CH.3 SCOPE............................................................................................................................................................................9
CH.4 HOUSING...................................................................................................................................................................10
CH.5 HOUSING DEVELOPMENT BUSINESS ........................................................................................................11
CH.6 PROPERTY DEVELOPMENT FINANCE......................................................................................................12
CH.7 PRICES OF REAL ESTATE IN INDIA............................................................................................................15
CH.8 IMPORTANCE OF FINANCIAL MODELLING & ANALYSIS IN REAL ESTATE
DEVELOPMENT................................................................................................................................................................17
CH.9 TERMS RELATED TO FINANCIAL MODELLING & ANALYSIS......................................................18
CH.10 TRENDS IN 2020 RELATED TO REAL ESTATE BUSINESS..............................................................19
CH.11 PROBLEMS RELATED TO REAL ESTATE IN 2020..............................................................................20
CH12. CONCLUSION .......................................................................................................................................................20
REFERENCES & BIBLIOGRAPHY............................................................................................................................22

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Acknowledgement
This Report is authored by Bhavika Rohira, 1st
year MBA (Finance) of Sandip Foundation, Sandip
Institute of Technology and Research Centre,Nashik. Currently Interning with Vardhan Consulting
Engineers (VCE) on the Module Financial Modelling & Analysis.
I would like to express her gratitude to Vardhan Consulting Engineers (VCE) for providing
me a chance to gain knowledge and learnings from this Internship Program on Financial
Modelling & Analysis. Through this Internship program I got an in-depth experience of
learning Project Finance.
I would also like to Thank my Mentor for this Internship program, Mr. Ashish Kumar, who
supported and provided me the guidance through various means i.e. podcasts, Doubt-Clearing
sessions and Corporate Skill Development Program (CSD). Your guidance and support were
generous throughout the Internship Program and I am immensely delighted that I got a
chance to intern with VCE.
Lastly, I would like to extend my gratitude to HR and Internship Coordinator, Neha Kumari,
for smooth coordination with students and interns. Continuous efforts and providing us with
all the necessary Information, Modules and Certificates throughout the internship which
helped interns conclude the internship efficiently and without any difficulty.

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Executive Summary
Vardhan Consulting Engineers (VCE) is a consulting company founded by group of
engineers with strong academic background and experience of management. VCE believes in
to pay back to the society; Therefore, they provide Internships and trainings to the students
for the betterment of the society and students.
The Internship program introduced by VCE is unique and informative in nature. It helps and
guides students to enhance the skills and knowledge. I am pursuing MBA in Finance and I
choose Financial Modelling & Analysis as my topic of project and internship; it gave me new
information and a clear picture of core finance. I gained knowledge about various topics like
Project Finance, Financial Modelling and Analysis of Financial model. The unique thing
about this internship Mr. Ashish Kumar, who is the founding member of Vardhan Consulting
Engineers personally mentors all the students and interns through various ways, Be it
Corporate Skill Development Program, Weekly Doubt-Clearing sessions, Pre-Placement
Program and Job Hunt program. VCE provided an in-depth knowledge through its modules,
which helps students and interns to get experience and confidence. Due to Vardhan
Consulting Engineer’s Internship program many students get to know and experience the core
knowledge and a practical view of the industry.
The objective of this report is to study:
 To study the Real Estate sector in detail.
 To study the Financial modelling and analysis of Real Estate Sector.
 To learn different terms in Financial modelling & Analysis.
 To study the trends in 2020 in real estate sector.
 To study the problems in 2020 in real estate sector.
 To study the different terms related to Financial Analysis & Modelling.
This Internship report mainly focuses on Financial Modelling and Analysis with respect to
real Estate in India. This report contains chapters related which contains detail study on
Prices of Real Estate development and Property development. The data used in this report is
gained by external sources and verified websites. i.e. I have taken the data from secondary
sources, i.e. Internet and various Articles.

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Ch.1 Introduction to Project Finance
Project Finance: Project Finance is a long-
term infrastructure and industrial project
using a non-recourse financial structure,
which relies on the projects cashflow for
debt repayment with project’s assets held as
collateral. Project Finance is basically to
raise funds, and capital for heavy intensive
funds project like infrastructure and
industrial projects. Investors are called
sponsors.
Project finance mainly deals with highly
intensive capital projects such as
infrastructure, Malls, Petrol pumps; which
requires high funding. Project finance
becomes a medium through which these
project gets funding.
Project Finance is cash flow based, the
basis of evaluation is cashflow and not
collateral. The valuation of the project
depends on how project company operates
to generates cash.
Project finance has a Limited Liability,
i.e. Any liability created at the project
finance company stays at the project
company.
Project finance is Non-recourse loans and
obligations, i.e. A new venture will
establish a project company what’s often
called as Special purpose vehicle, special
purpose company or special purpose
entity, these terms are used
interchangeably. A project company will
borrow a lot of money to acquire some
assets or build some assets. But the
obligation to repay the loan stays at that
project company level and not at the level
of the investors in that company. It doesn’t
matter that the owners of the project are
wealthiest people in the world.
Non-recourse loans are secured debt and
loans through collateral like property or
land. That is, the lender cannot pursue
anything other than the collateral, if the
borrower defaults then the lender can only
seize his collateral or mortgage property
not his entire assets. Also, if the lender
faces any loss, he cannot seek the loss
balance from the borrower.
A special purpose vehicle is a medium
through which a project finance company
can get funding from the sponsors and
investors. Non-recourse debt/loan are
obligations which are secured in nature
through a collateral generally with Land or
property. If the borrower defaults the
lender cannot go after his personal assets,
he can only seize the collateral and sell it
to recover the amount, i.e. that the
recovery is limited only to the value of the
collateral.

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Introduction to Financial Modelling & Analysis
Financial modelling is the task of building
an abstract representation of a model of a
real-world financial situation. The
Financial model is a summary of variables
through which a company can forecast its
financial position in the future. Financial
Modelling is a financial model is simply a
tool that’s built in Microsoft Excel to
forecast a business’ financial performance
into the future. This is a mathematical
model designed to represent the
performance of a financial asset or portfolio
of a business, project, or any other
investment.
These models are made to eliminate Future
contingent liabilities. It is mainly done so to
make a better decision in the world full of
options. Every variable is tested by
changing and analysing the effect of it on
other variables.
It is a set of assumptions about future
business conditions while preparing A
financial model certain assumptions are
taken into considerations, Assumptions are
a critical part of the financial model.
The forecast is basically based on the
company’s historical performance,
assumptions about the future, and requires
preparing an Income statement, Balance
sheet, Cash flow statement.
There are many different types of
professionals who build financial
models. The most common types of career
tracks are Investment Banking, equity
research, corporate
development, accounting, consulting firms
and etc.
Project Finance is mainly done in Power
Sector (Coal, Gas, Solar and Wind Power
Plant Project) Infrastructure (Residential
and Commercial Buildings). Public
Utilities (Airport, Road, Highways)
Manufacturing Sector.

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Introduction to Real Estate
Real Estate is often termed as complex and
large industry, many people like to invest
in real estate to gain profit as passive
income. In involves many varieties of
organisations, corporations, and
individuals. Real Estate involves land,
buildings and properties, immovable
properties with its natural resources. Over
the years Real Estate has become a
business through with investors make
profit.
Real estate sector is most recognised
sector, it comprises of for major
categories. i.e. Housing, Hospitality, Retail
and commercial. Real estate activities
encompass a range of services relating to
the provision of property, i.e. buying,
selling and renting of commercial and
residential properties or land, which can be
used for office or personal space.
· Housing: Housing is using
the land or space by
constructing houses,
apartments, flats and
various others to shelter
people and families.
· Hospitality: Hospitality
real estate is using the
building or property which
is in a prime or touristy
location for temporary
accommodation of tourists.
E.g. Hotels, Resorts.
· Retail: Retail property is
land or building used
specifically for business
purpose, they include
shopping centres, shops,
and showrooms, etc
· Commercial: commercial
property is using for
business activities which
generate income like
restaurant, office space,
garages, etc.
Real estate evolved in a business over the
years into real estate development. Real
estate development is the process of
buying a land and making buildings, hotels
and garages so that an income could be
generated from business activities. Real
estate development has grown into
million-dollar industry, Real estate
development is process which involves
purchasing the raw land, construction and
renovation of the building, sale or lease the
end product to the user. The construction
of commercial houses, residential housing,
and office spaces, commercial spaces, such
as hotels, restaurants, theatres, and
industrial buildings, namely factories and
government buildings, are all covered by
the real estate sector. Real estate also
involves activities such as the purchase,
sale, and development of land. Thus, the
real estate activities comprise both
construction and housing sectors.

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CH.2 Background of Real Estate.
We are in the 21st century, the world has
seen a shift from industrial revolution to
Digitalisation. India will be celebrating its
74th Independence Day, there are various
milestones India as an independent country
has achieved, Real estate industry has a
lasting impact, the real estate industry has
seen many changes and challenges since
Independence.
India has come a long way when it comes
to Real estate industry, From Zamindari
system in 1947 to the launch of first real
estate investment trust in 2019. There is a
lot of Improvement In the real Estate
Industry, the government schemes are set-
up, tenants and landlords have certain
privileges, therefore its eventful for the
Indian property Market.
 The Urban Land (Ceiling and
Regulation) Act was enacted in
1976, to curb projected hikes in
land prices in urban areas and to
provide low-income housing.
 The phase of 1994-99 marked
the completion of India’s first
property cycle as the market which
were opened up in post
liberalisation reforms saw property
prices go up for the first time.
 Foreign direct investment (FDI) in
real estate was first allowed in the
year 2005, which opened up newer
ways of funding and led to a
maturing of the industry, in terms
of business practices and product
offerings.
 Real estate (regulation and
development) Act, 2016 (RERA).
 GST Replaces VAT and Service
Tax: The Goods and Services Tax
(GST) was introduced in July
2017, which replaced the Value
Added Tax (VAT) and service tax
on under-construction property.
Initially, a GST of 18% was levied
on real estate with input tax credit,
which was successively brought
down to 5% for regular housing
projects and 1% for affordable
housing projects, in March 2019.
The GST helped as it became
easier to track transactions and the
money trail in project construction.
As multiple taxes are recorded
within the GST, it is hoped that this
will reduce developers’
construction costs, along with a
reduction in cost of logistics.
 Just like any other industry, even
the real estate has seen
digitalization. Digital
transformation in real estate is not
so rapid, because the industry is
based on construction and
hospitality. However, real estate
software solutions and technology
integration into practices are
Real Estate
Hopitality
Commercial
Housing
Retail

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already making their way into the
sphere. There are various Apps like
Magic-Bricks, 99 Acres; where
people can buy, or rent houses or
Apartments. Apps like Trivago,
OYO, MakeMyTrip lets tourist get
accommodation easily.
The real estate industry in India is
flourishing at a rapid pace. Over the years
the industry graph has shown an upward
trend. The Real Estate industry has shown
a growth rate of about 30% each year.
Ch.3 SCOPE
Real estate in India has gained tremendous growth in the past few decades, Real estate is the
second largest sector in India which provides employment to many people after agriculture
sector. Market scope of the real estate industry in India is evaluated the growth of this sector,
very easily the market size will be around $1 trillion by the year 2030. By the year 2025, this
sector is expected to contribute individually to 13% of the country's GDP.
In 2017, the realty sector contributed up to 6-7 % to India's GDP.
The Indian real estate sector is expected to contribute 13% to the country's gross domestic
product (GDP) by 2025.
According the Pie-Chart given above, it is observed that 56%, Which is the largest is
contributed by services sector in the GDP, 7% by Real Estate, 18% and 19% and by
Manufacturing and Agriculture respectively.
Along with the growth of real estate, it is equally important to appreciate the role of
infrastructure, as it provides the overall liveable environment and impacts the community in
its day-today life. As like other sectors of the economy, real estate is critically dependent on
19%
18%
7%
56%
GDP Contribution (2017)
Agriculture Manufacturing Real Estate Services

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the quality and availability of infrastructure. A transition has taken decades to occur and as
India moves up towards being in the top three to ﬁve economies in the world, it is important
to understand how infrastructure and real estate have evolved over the last few decades.
Ch.4 HOUSING
It is essential to have a shelter, a place one
can call Home. It is said that, Food,
Clothing and shelter are the basic
necessities of human beings. The role and
function of housing is multi-layered -
housing choices impact access to
infrastructure, employment, health,
education, poverty levels and many other
well-being indicators.
According to Wikipedia, Housing refers to
living space, but a home cannot just be a
living space, Housing satisfaction is one of
the indicators of the quality of life. It
affects all aspects of life, i.e. physical,
economic, social and psychological well-
being.
Major population of our country is below
lower income group. Low cost housing
projects for affordable living are major
concern for the government. Indian
government have started affordable
housing scheme as a pilot project
collaborating with public & private
partnership in states of Maharashtra,
Andhra Pradesh, Rajasthan, Telangana &
Kerala.
Government Schemes related to Housing
in India,
 Pradhan Mantri Awas Yojna
 Haryana Housing Board Housing
Scheme
 The Maharashtra Housing and Area
Development Authority Scheme
 Kerala Housing Board Housing
Scheme
 Rajiv Awas Yojna.
 Tamil Nadu Housing Board
Scheme (TNHB)
 NTR Urban Housing Scheme

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Ch.5 Housing Development Business
Real estate development or property
development is a business process,
covering activities that range from
the renovation and re-lease of
existing buildings to the purchase of
raw land and the sale of developed land.
Real estate developers are the people and
companies who coordinate all of these
activities, converting ideas from paper to
real property.
Real Estate development can pose the most
risk, but can also be the
most profitable technique as it is
dependent on the public sector for
approvals and infrastructure and because it
includes a long investment period with less
cash flow.
According to the Chart given, in last 10
years, i.e. 2010-2015, the Growth of Real
estate is 10% and 2015-2020 was 11.2%.
India’s housing market remains fragile.
Homes sales and residential construction
activity continue to fall. Except for
Hyderabad, which registered a remarkable
double-digit price growth during the year
to 2019, prices have been largely flat in
other major cities. In addition, India´s
economic growth is flagging, undermining
its possibly overvalued property market.
The strategic importance of real estate as
an economic facility, the construction or
developmental process and its investment
potential are some attributes that attract all
sectors of the economy to its projecting
rays. Building facility is like a catalyst that
not only serve as an engine that energies
every other sector of the economy but
gives impetus to the developmental rating
of the environment.

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Ch.6 Property Development Finance
Property development is a complex area,
especially when it comes to finance.
Eventually, the first step to take when
determining what type of finance, one needs is
to assess how extensive the project is, how
long it will take, and how much it is likely to
cost — in both the best- and worst-case
scenario. Property
development finance
is a type of loan,
which is secured
against property or
land in much the
same way as a
traditional mortgage. 10%
11.20%
2010-2015 2015-2020
Growth Rate of Real
Estate Business

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The production of building facility as one
refers it to building construction or
developmental process attracts professionals
from all fields of life and non-professionals.
Not only that, housing development
employment cut across all categories of human
endeavour.
In India, real estate assets are kept outside the
financial market and not leveraged for
investment purposes. India must try to make
real estate a full-fledged investment option.
Real estate as an asset class is vastly different
from capital market assets. It is a natural hedge
against inflation, experiences low volatility
and hence generates positive long-term
returns.
The investment attraction of building
development by public and private sectors of
the economy anchor on its requisite and
strategic importance as a solid rock of support
and strength to all sectors of the economy. To
this end, any effort to encourage investment in
building facility should be seen as a step in the
right direction.
All successfulproperty developers need good
plan, and getting the right finance in place is a
crucial ingredient in development success —
whether one is buying your company’s
premises, or growing your rental portfolio.
Also, property development can create large
profits for the developer, but requires a long
period of outlay, with the profit coming at the
end. This can cause cash flow to be poor
during the build, something that can be
resolved by financing the site.
Property development finance costs can
vary. The amount charged is generally from
around 5% per annum, right up to 16.2% p.a.
Most housing finance companies cater mainly
to individuals in the higher income group, who
have a reasonably assures credit worthiness.
Only 5-7 % of the loans distributed by these
housing finance companies go to builders and
institutional developers. To draw investment
into this sector, it is essential that the
government increases the comfort level of the
existing fund providers through appropriate
legal measures and corporatisation of real
estate, and maintaining industry discipline.

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Residential construction activity is falling. In Quarter 2, 2019, only 37,852 housing units
were launched, down 47.4% from a year earlier. Except in Gurugram, new launches fell
across all other cities in Quarter 2 2019. Housing prices in Gurugram and Noida fell 7% and
4%, respectively in the last five years on demand slowdown, huge delays in execution of
residential projects and many big developers turning bankrupt.
Source: Global Property Guide
 In Mumbai, the average house price increased by 3% y-o-y to ₹ 9,396 per sq. m.
 In Bangalore, prices increased by 3% y-o-y to ₹ 5,157 per sq. m.
 In Kolkata, prices increased by 1% y-o-y to ₹ 3,936 per sq. m.
 In Chennai, prices were steady at an average of ₹ 5,174 per sq. m.
 In Ahmedabad, prices increased by 1% y-o-y to an average of ₹ 2,857 per sq. m.
 In Mumbai, the average house price increased by 3% y-o-y to ₹ 9,396 per sq. m.
 In Gurgaon, the average house price fell by 3% y-o-y to ₹ 4,950 per sq. m.
 In Hyderabad witnessed the highest y-o-y price increase at 17%, to an average of ₹
5,131 per sq. m.
 In Pune, prices increased by 2% y-o-y to ₹ 4,821 per sq. m.
 In Noida, prices were unchanged at an average of ₹ 3,899 per sq. m.

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Ch.7 Prices of Real Estate in India
Some of the Prices of Real Estate in India in per sq.m Illustrated on the Map.
₹ 9,396
₹ 4,950
₹ 5,174
₹3,936
₹ 5,131
₹ 2,857

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The southern cities, especially Bangalore and Chennai are likely to witness strong supply and both cities
combined, are expected to have a share of 30% in the overall retail stock by 2020, as compared to around 23%
currently. A strong pipeline will confirm that Bangalore will overtake Mumbai to become the second largest
contributor to overall stockby 2020, while Hyderabad will more than double its existing retail stock.
Above are the Charts, which shows data from 2016 and 2020, The residential housing units sold in metropolitan
cities in India. E.g. Mumbai, Delhi, Chennai, etc. It is observed that Gurgaon and Mumbai have the highest
selling residential units i.e. 19% and 15% respectively. Pune and Kolkata following next with 10% and 12%.
18%
12%
11%
4%
14%
18%
6%
6%
11%
2016
Gurgaon
Noida
Kolkata
Delhi
Bangalore
Mumbai
Chennai
Hyderabad
Pune
19%
6%
10%
11%
11%
15%
7%
9%
12%
2020
Gurgaon
Noida
Delhi
Bangalore
Mumbai
Chennai
Hyderabad
Pune

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Ch.8 Importance of Financial Modelling & Analysis in Real Estate
Development
Today, Financial Modelling has become an essential part of most realestate transactions. The reason
behind the fact that realestate deals in present is complex and are undertaken not only by individuals
but by corporations who specialize in such transactions.
For the purpose of financial modelling, realestate is defined as any property, living space,residential
units which is owned by a group of people and rented out to a different income groups of people. Self-
occupied properties are generally beyond the land of financial modelling. This is because financial
modelling is done by corporations who are in the business of commercially letting out properties.
People buying residential properties generally do not require elaborate financial models. In most
cases,the simple back of the envelope calculations is more than sufficient.
 Simplicity: Designing a Financial Model brings simplicity and clarity to Project.
 Assumptions:Financial models gives the freedom to assume or predict the future situation.
 Accurate Calculation:It is easy to calculate and get results of the cost, debt and other
various calculations in Microsoft Excel.
 Investment Decision Tool:Financial Model becomes a proof for decision making related to
investments and other various decisions.
 Determining the expenditure: Financial model provides the liberty to calculated all the
expenditure incurred on the project. E.g. Capex and Opex.
 Dynamic In nature: As Financial Modelling is based on assumptions it can be changed
according to the situation i.e. external situations that affect the rates of the property, etc.
 Risk Management: A financial model helps to foresee any risks which can be minimised
with proper risk management strategy.
 Budgeting & Forecasting: A Financial Model brings simplicity in calculating large numbers
in the project which helps in budgeting and cost cutting.

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Ch.9 Terms Related to Financial Modelling & Analysis
 IRR: The internal rate of return is a measure of an investment’s expected future rate
of return. As the IRR is an estimate of a future annual rate of return. It is calculated in
Microsoft Excel Function by Selecting the end values of cash flows and the estimated
guess value. =IRR()
 NPV: Net present value (NPV) is the difference between the present value of cash
inflows and the present value of cash outflows over a period of time. NPV is used in
capital budgeting and investment planning to analyse the profitability of a projected
investment or project.
 DSCR: The debt service coverage ratio (DSCR) is defined as net operating income
divided by total debt service. DSCR is a measurement of the cash flow available to
pay current debt obligations. The ratio states net operating income as a multiple of
debt obligations due within one year, including interest, principal, sinking-fund and
lease payments.
 DCF: Discounted cash flow (DCF) analysis is a method of valuing a security, project,
company, or asset using the concepts of the time value of money. Discounted cash
flow analysis is widely used in investment finance, real estate development, corporate
financial management.
 Inflation: Inflation is a sustained increase in the general price level of goods and
services in an economy over a period of time.
 Amortisation: Amortization refers to spreading payments over multiple periods.
 YOY- Year-over-year (YOY) is the comparison of one period with the same period
from the previous year. The period is typically a month or quarter.
 Capex: Capital Expenditure involved in the Project.
 OpEX: Operating and Management Expenses which are incurred on the project are
called OpEX.

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Ch.10 Trends in 2020 related to Real Estate Business.
 Residential and Commercial Sector in real Estate to grow: According to Savills India the
real estate demand would improve in 2020. 2020 has a great potential for both residential and
commercial real estate business. In the last few years,the office space gained traction in most
cities, Rapid urbanization and white-collar migration will ensure strong development for the
commercial sector,which in turn will translate into higher residential demand. The
commercial front, co-working space,data centres and warehousing space would continue to
be in demand.
 Technology reforming the real estate sector: Smart technology and innovations in the real
estate sector will no longer be a distant future. In terms of construction, the major players will
adapt to the latest technology – data gathering, artificial intelligence and machine learning
which will play a major role in redefining the realty sector in India.
 Sustainable and green living will be widely accepted: Both developers and home buyers
have been supporting green technology. This will continue to grow with developers focusing
on technological advancements in obtaining raw materials that are eco-friendly and have
sustainable designs that are environment sensitive. The customers as well are opting for smart
homes which make way for sustainable living.
 Luxury housing will be redefined: The traditional concept of luxury housing will witness a
shift effected by the demands of the new age home buyers.
 Increase in demand for Customised spaces: on the account of Covid-1 and work from
home, there has been an increase in demand for customised work spaces and wellness spaces.
 Funding opportunities to broaden:As the RealEstate sector receives a determined push
from the government, it is likely to emerge as the new focus area for housing finance
companies. As per CRISIL,the assets under management of affordable housing finance
companies are expected to grow at a CAGR of 40% over the next four years,as compared to
17-18% for the housing finance sector, as a whole.

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Ch.11 Problems related to Real estate in 2020.
 Real estate launches drop by 56% in H1 of 2020 compared to H2 of 2019.
 Consecutively Supply of units have dropped down at the lowest point in the last 5 years.
 Office space leasing may fall by 30% due to Covid-19 crisis.
 The Price fall in luxury housing and residential sector is major in 2020.
 Real estate Developers are eager to liquid their existing inventory as Inventory overhang
increased to 44 months.
 Delayed in Construction of the building or the infrastructure due to the outbreak of Covid-19.
 Sales in H2, 2019 were higher than sales in H1, 2020, i.e. 49% sales in H1 2020.
Ch12. Conclusion
51% 49%
Sales in Real Estate Market
2019
2020

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In this Internship Report, I have tried to show Financial Modelling & Analysis is important
and essential for any Project. In every sector, Manufacturing, Services, Real Estate and other
Sectors it is essential to predict and foresee the business situation. Financial Modelling is a
tool which helps businesses to take decisions related to Investments and Expansions.
Financial Modelling is done in every career, as it brings accuracy and clarity which helps in
decision making.
Real Estate Business has seen an increase in growth as a career, As Real Estate contributes 6-
7% in the Gross Domestic Product (GDP). Also, according to researchers Real Estate sector
will reach $1 trillion by 2030 in India. To analyse the big numbers in the real estate
development projects Financial Modelling is done, i.e. To Calculate Debt-Equity ratio. To
Calculate, the return on Investment (ROI), EBIDA, and various other calculations.
In this report, Background and scope of Real Estate sector in India is explained and how
Financial Modelling & Analysis is essential for every sector to bring clarity in the project.
Opportunities and Problems regarding to Real estate in 2020 which can be observed in the
sector.
Through this Internship I have learned various Terms and Microsoft Excel Financial
Modelling & Analysis. In conclusion, the internship was a useful experience. I have found
out what my strengths and weaknesses are; I gained new knowledge and skills. Needless to
say, the technical aspects of the work I've done are not flawless and could be improved
provided enough time

22 | P a g e
References & Bibliography
 (Business and Financial Modelling - Vs...)
 (www. ETRealty.com )
 (scottjack 2019)
 (Shukla 2020)
 (Property Development Finance: What is...)
 (Housing | National Portal of India )
 (Shukla 2020; Housing prices in Gurugram fall 7%, N...)
 (30+ Essential Real Estate Statistics ...; India Real Estate )
 (India Real Estate )
 Global Property Guide
END
THANK YOU

Financial Modeling and Analysis of 50 Flats Housing Project in Gurgaon, Haryana IN.

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