Incorporation /Headquarters 1979 in Patna, New Delhi

Industry Real Estate with focus on residential apartments

Business Segments Comfort Homes & Senior Living

Areas of Operation Jaipur, Bhiwadi, Jodhpur, Jamshedpur, Neemrana, South ofGurgaon(Sohna), Lavasa, Halol, Chennai and Kolkata

Key Metrics • 211.42 lakhs sq. ft. constructed• Operations in 10 Locations• 10,943 units under maintenance

Executive Summary

1979• Established in Patna. First organized developer in Patna.1985• Started operations in Jamshedpur.1986• Incorporation of Ashiana Housing & Finance (India) Limited1992• Shifted head office to New Delhi. Started Bhiwadi operations• Listed on the BSE1996• Started facility management of Ashiana properties1998• First organized developer in Neemrana

2004• Launched Senior L iv ing project at Bhiwadi2006• Started Jaipur operations2007• Started Jodhpur operations.• Completed India’s first senior living homes in Utsav, Bhiwadi2008• Started operations in Lavasa (near Pune)2011• Launched Utsav Care Homes (Assisted Senior Living)• Listed on NSE2013• Unveiled new identity of Ashiana

2014• Started Halol operations• Acquired land in South of Gurgaon (Sohna) and in Chennai2015• Successfully raised Rs 200 Cr from investors through QIP• Started operation in South of Gurgaon (Sohna) & Chennai2016• Successfully obtained approval from shareholders for maiden issue of NCD. Rs. 50 Cr was raised till 31stJuly, 2016.• Started operation in Kolkata2017• Crossed development (since inception) of 200 Lakhs Sq. ft.

2014-20171979-1998 2004-2013

Milestone

PromotersVishal Gupta (Managing Director)A graduate from Sydenham College (Mumbai) and an MBA from FORE School of Management (Delhi), he is acknowledged for his in depth understanding of the real estate business, customer psychology and market behavior. He is actively involved in finance, human resource, project execution and generaladministration.

Ankur Gupta (Joint Managing Director)He is a Bachelor in Business Administration from Fairleigh Dickinson University (USA) and an MS in Real Estate from New York University (USA) where he focused on residential projects for senior citizens during his research work. His experience was put to good use at Utsav and currently he leads Marketing, Sales, IT, Hotel and Facilities Management segments of the Company. He has around 16 years of experience and is actively associated with Ashiana for the last 14 years.

Varun Gupta (Whole Time Director)He is a Bachelor in Science from Stern School of Business, New York University (USA). He majored in Finance and Management and graduated with the high academic distinction, ‘Magna Cum Laude’. He then joined Citigroup in Commercial Mortgage Backed Securities where he was underwriting commercial real estate. After a year and a half of this rich experience, he has joined Ashiana where he is looking after Land and Finance for the last 8 years.

Recent Legislative HighlightsRERA, 2016

Registration• The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or

eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution.

• For failure to register, a penalty of up to 10 percent of the project cost or three years' imprisonment may be imposed. Real estate agents who facilitate selling or purchase of properties must take prior registration from RERA.

Benefit about RERA?• The provisions of this Act require that only those projects which have all approvals in place can be advertised and sold to home buyers.

Also information related to approvals, time taken for completion and master plan of project have to be disclosed before the launch. Non compliance of the Act would attract heavy monetary penalty and imprisonment.

• Rules of RERA require that each project must have a separate designated bank account. 70% of collections from customers are to be deposited in this dedicated account.

• This rule will be game changer in the industry; it will help industry in terms of ensuring timely delivery of projects, elimination of non serious/short term players the real estate sector and bring about better and cleaner financial management of customer advances

• Many developers are dependent on the advances from buyer for the completion of project, and funds were also diverted for purchase of land parcels and launching new projects. Now under the new law, the developer needs to ensure proper utilisation of money in the projects. Developers whose balance sheet is leveraged and which are facing liquidity crunch, and are not able to complete their unfinished inventory will suffer the most.

• This law will drive consolidation in the sector, as many smaller and weaker developers would find it difficult to continue operations.

Budget 2017 - Relief• Status of Infrastructure to real estate sector - Govt has granted Infra status to industry. This is very big boost for industry wherein

gestation periods are long and capital is in short supply. Infra status will attract cheaper and long duration capital funds to invest in the sector. This will also help in getting approval faster for the projects.

• Tax Benefit on Long Term Capital Gain - Holding period for long term capital gains for immoveable property has been reduced from 3 year to 2 years. This might lead to more resale cases and hence increase in demand. It will attract more investors in the real estate. Also indexation base year has been shifted from April 1984 to April 2001 for the benefit of investors.

• Tax relief on unsold inventory - Real estate developers are facing problem of huge unsold inventory. Also they had to pay tax on notional rental income from unsold inventory. In budget Govt. has relaxed time and taxability shall arise only after one year from receiving completion certificate.

• Deduction of 100% of profits for developers of affordable housing projects (Section 80 IBA of Income Tax Act, 1961) - Eligibility limits of 30 sq. Meters (4 metro cities) and 60 sq. Meters (other than 4 metro cities) has been laid down. Built up area has been substituted by carpet area. Time limit for completion extended from 3 years to 5 years. This would help developers expand their customer base and also avail tax benefits.

• Tax relaxation for land owner in Joint development model (only for Individuals and HUF) - Land owner in case of joint development had to pay tax on notional capital gain on the date of contract. In Budget 2017,Govt. announced that land owner will pay capital gain after completion of projects. This relaxation should improve supply of land for real estate projects

Besides, in a bid to boost housing post demonetization the government announced interest subsidy of up to 4 per cent on loans taken in the new year under the Pradhan Mantri Awaas Yojana (PMAY). In urban areas housing loans of up to `9 Lakhs and up to `12 Lakhs will receive interest subsidy of 4 per cent and 3 per cent respectively, while in rural areas loans up to `2 Lakhs will get an interest subvention of 3 per cent.

Source : IBEF, Real Estate

Source : IBEF, Real Estate

• Total rural housing shortage in India stood at 14.8 million as of 2015 & is expected to grow to 48.8 million during XII plan period (2012-2017)

• Significant increase in real estate activity in cities like Indore, Raipur, Ahmedabad, Jaipur & other 2-tier cities; this has opened new avenues of growth for the sector

• Relaxation in the FDI norms for real estate sector has been done to boost the real estate sector• Government’s plan to build 100 smart cities would reduce the migration of people to metro & other developed cities• In 2017, nearly US$4.2 billion worth of investments are expected to be invested in India’s real estate sector, as the

country is emerging as the preferred investment destination owing to favourable government initiatives• In March 2017, the State Bank of India (SBI) & the Confederation of Real Estate Developers’ Association of India (CREDAI)

signed an MoU for 3 years to work towards the development of real estate sector.• In April 2017, under the Swachh Bharat Mission, a total investment of US$378.4 million has been approved to develop 20

towns & cities in Haryana

StrengthExecution : • Timely delivery• In-house construction – Ensure high control over cost and quality and flexibility in executionBrand Recognition :• High Brand recall• Customer assured of timely delivery, affordable offering and transparency in dealings.Direct Sales Team :• In-house selling to actual users and investors• Provides better market insightsIn-house Maintenance• High quality maintenance at affordable rates• Maintaining relationship with customer after sale• Provides inputs to development team to improve quality Healthy Project Pipeline• Ongoing project of 19.1 Lakhs Sq. ft. (10.84 Lakhs sq. ft. already booked)• Future projects of 80 Lakhs Sq. ft.

Risk• Economy Slowdown• Inventory pilling• Any litigation during the project

CAGR 5 Year 3 Year

Sales 24.62% 58.52%

Operating Profit 27.15% 56.43%

EBIT 21.48% 38.73%

PAT 19.23% 20.00%

Year 2013 2014 2015 2016 2017

Gross Profit Margin 42.70% 51.66% 55.05% 39.02% 52.12%

EBITDA Margin 23.48% 17.84% 26.13% 26.04% 25.45%

EBIT Margin 30.32% 26.06% 35.73% 27.39% 27.37%

PAT Margin 22.30% 20.75% 32.61% 24.85% 17.53%

Adjusted PAT Margin 13.72% 9.77% 17.38% 22.01% 14.57%

Financials

Year 2013 2014 2015 2016 2017

Return on Asset 4.95% 1.76% 2.13% 9.03% 4.46%

Return on Equity 7.61% 3.80% 4.74% 17.76% 7.23%

Return on Capital Employed 16.04% 10.37% 9.80% 21.63% 9.60%

D/E 0.04 0.03 0.06 0.10 0.11

Interest Cover(x) 14.87 15.76 26.84 49.57 14.71

Trade recivable/sales 9.48% 8.65% 9.50% 5.18% 6.66%

Year 2013 2014 2015 2016 2017

CFO -39.32 -79.18 -3.95 -23.15 -21.97

Change in Inventory -75.27 -178.76 -246.3 -55.61 -55.51

Trade Payable and Advances From Customer 61.88 184.26 310.38 -106.93 -60.42

Free Cash Flow -26.57 -37.78 -29.5 -83.1 -9.5

H1 FY18 Data

Equivalent area constructed Area booked Average Realization Value of area booked

Year Lakh Sq.ft Lakh Sq.ft Per Sq.ft Crore

2011 10.74 13.5 2055 277.36

2012 14.62 17.83 2190 390.38

2013 12.27 18.65 2699 503.35

2014 17.87 22.13 2926 647.56

2015 22.8 18.12 3022 547.72

2016 23.44 8.63 3293 284.21

2017 17.39 6.96 3234 225.08

H1 2018 4.27 3.08 3075 94.71

Completed Project Having InventoryLakh Sq.Ft.

Saleable Area 60.83Booked Area 50.82

Area Recognized For Revenue 48.14Area Unrecognized For Revenue 2.68

Unbooked Area 10.01Revenue(E) Unbooked Area 289.98 CrEBITDA (E) Unbooked Area 68.99 Cr

PAT (E) Unbooked Area 44.95 Cr

Ongoing Projects SummaryLakh Sq.Ft.

Saleable Area 19.1Booked Area 10.84

Equivalent Area Constructed 12.14Sale value of Area Booked 353.09 Cr

Amount Recieved of sale Booked 270.86 CrRevenue (E) of total On Going Project 669.65 CrEBITDA (E) of total On Going Project 159.31 Cr

PAT (E) of total On Going Project 103.8 CrProject Completed % 63.56%Amount Received % 56.75%

Area Booked/Revenue (E) 52.73%

Future Value of Project

Future Projects Summary

Lakh Sq.Ft.

Saleable Area 79.41

Revenue (E) of Future project 2863.91 Cr

EBITDA(E) of Future project 681.32 Cr

PAT (E) of Future project 443.91 Cr

Total Revenue 3823.54 Cr

EBITDA Total 909.62 Cr

PAT Total 592.66 Cr

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