final valuation report_dmi _feb 2014

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Valuation Report

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  • T +91 22 6745 0101 F +91 22 6745 0202

    Paville House, Near Twin Tower, Off Veer Savarkar Marg, Prabhadevi, Mumbai 400025

    KnightFrank.co.in Knight Frank (India) Pvt. Ltd.

    Valuation of a land parcel

    Located in Tukwada, Vapi, Gujarat

    Prepared on behalf of

    DMI Finance Private Ltd.

    February 2014

    Contact Details:

    DMI Finance Pvt. Ltd.

    Ashi Bhavan, Ground Floor,

    19, Rouse Avenue,

    New Delhi - 110002

    Knight Frank India Pvt. Ltd.

    Paville House, Near Twin Towers,

    Off Veer Savarkar Marg, Prabhadevi,

    Mumbai - 400025

    Pradeep Gandhi: pradeep.gandhi@in.knightfrank.com

  • Valuation Report Valuation of land parcel for proposed industrial use in Vapi, Gujarat ii

    Prepared on behalf of DMI Finance Pvt. Ltd. February 2014

    Executive Summary

    The executive summary below is to be used in conjunction with the valuation report of which it

    forms a part and is subject to the assumptions, caveats and bases of valuation stated herein

    and should not be read in isolation.

    On the instructions received from DMI Finance Pvt. Ltd. (the client) vide an engagement letter

    dated January 22, 2014 and our subsequent correspondence, Knight Frank India Pvt. Ltd. has

    been appointed to undertake the valuation of a 31.3-acre land parcel located in Vapi. Knight

    Frank India Pvt. Ltd. has estimated the market value of the subject property. Based on the

    instructions received from the client, we have carried out pre-tax* valuation.

    Client Name DMI Finance Pvt. Ltd.

    Address & Location Tukwada Village, Vapi, Valsad District, Gujarat

    Purpose of

    Valuation

    Internal

    Description Valuation of a 31.3-acre land parcel for proposed industrial use

    Land Area Land parcel measuring 31.3 acres has been converted to non-agricultural industrial

    use

    Tenure of Land Freehold

    Valuation Approach Market Approach

    Valuation Date February 3, 2014

    Market Value

    (Land Parcel)

    ` 640 mn.

    Valuers Details Pradeep Gandhi, MRICS

    Regional Head (West) Research & Advisory Services

    In preparing our valuation reports, no allowances are made for any liability which may arise for

    payment of Corporation Tax or Capital Gains Tax, or any other property-related tax, whether

    existing or which may arise on development or disposal, deemed or otherwise. No allowances

    are made in our valuations for any expenses of realisation, or to reflect the balance of any

    outstanding mortgages, either in respect of capital or interest accrued thereon. All valuations

    are given without any adjustment for capital-based government grants received or potentially

    receivable on the date of the valuation.

  • Valuation Report Valuation of land parcel for proposed industrial use in Vapi, Gujarat iii

    Prepared on behalf of DMI Finance Pvt. Ltd. February 2014

    Abbreviations & Measurements

    Abbreviations

    FSI Floor Space Index CBD Central Business District

    ` Indian Rupee Mn. Million

    CPI Consumer Price Index CRR Cash Reserve Ratio

    Nos. Numbers Q1 Quarter One

    `/sq. ft. Rupees per square feet Q2 Quarter Two

    Sq. ft. Square Feet Q3 Quarter Three

    Sq. km. Square Kilometre Q4 Quarter Four

    Sq. mt. Square Metre FDI Foreign Direct Investment

    GNP Gross National Product NPV Net Present Value

    GDP Gross Domestic Product TEUs Twenty Foot Equivalent Units

    SLR Statutory Liquidity Ratio NA Not Applicable

    USD United States Dollar EoU Export Oriented Unit

    MoU Memorandum of Understanding SEZ Special Economic Zone

    Measurements

    1 acre 43,560 sq. ft.

    1 mn. 10 lakh

    1 sq. km. 100 Ha.

    1 sq. mt. 10.764 sq. ft.

    1 Ha. 2.47 acres

  • Valuation Report Valuation of land parcel for proposed industrial use in Vapi, Gujarat iv

    Prepared on behalf of DMI Finance Pvt. Ltd. February 2014

    Table of Contents

    Executive Summary .................................................................................................................... ii

    Abbreviations & Measurements ................................................................................................. iii

    Table of Contents ....................................................................................................................... iv

    1. Instructions ............................................................................................................... 6

    1.1 Engagement of Knight Frank India Pvt. Ltd. .................................................................. 6

    1.1.1 Instructions ............................................................................................................... 6

    1.1.2 Valuation Standard ..................................................................................................... 6

    1.1.3 Purpose of Valuation .................................................................................................. 6

    1.1.4 Conflict of Interest ...................................................................................................... 6

    1.1.5 Currency and Measurement ......................................................................................... 6

    1.1.6 Responsibility to Third Parties ..................................................................................... 6

    1.1.7 Disclosure and Publication .......................................................................................... 6

    1.1.8 Limitations on Liability ................................................................................................. 7

    1.1.9 Vetting ....................................................................................................................... 7

    1.2 Scope of Enquiries and Investigations ........................................................................... 7

    1.2.1 Inspection .................................................................................................................. 7

    1.2.2 Enquiries .................................................................................................................... 7

    1.2.3 Legal Parameters of Property ........................................................................................ 7

    1.2.4 Environmental Aspects ................................................................................................ 7

    1.2.5 Information Provided .................................................................................................. 8

    1.3 Basis of Valuation ...................................................................................................... 8

    1.3.1 Market Value ............................................................................................................. 8

    1.3.2 Date of Valuation ........................................................................................................ 8

    2. Economic Snapshot: India ........................................................................................... 9

    2.1 Economic Indicators (December 2013) .......................................................................... 9

    2.2 Real Estate Indicators ................................................................................................. 9

    3. Vapi Overview ........................................................................................................... 10

    3.1 Vapi ......................................................................................................................... 10

    3.2 Connectivity .............................................................................................................. 10

    3.3 Demographics............................................................................................................ 11

    3.4 Economic Features ..................................................................................................... 11

    4. Property ................................................................................................................... 14

    4.1 Location ................................................................................................................... 14

    4.2 Site: ......................................................................................................................... 14

  • Valuation Report Valuation of land parcel for proposed industrial use in Vapi, Gujarat v

    Prepared on behalf of DMI Finance Pvt. Ltd. February 2014

    4.3 Legal Aspects ........................................................................................................... 15

    4.4 Site Inspection and Observation ................................................................................. 16

    4.5 Connectivity and Neighbourhood ................................................................................ 16

    5. Valuation Analysis ..................................................................................................... 17

    5.1 Methodology ............................................................................................................ 17

    5.2 Valuation Bases ........................................................................................................ 18

    5.3 Valuation Assumptions .............................................................................................. 18

    5.4 Valuation Cons