Financial Model — Matigarh Estate

Sources & Uses

Where the Money Goes

Uses of Funds

Item	₹ Cr
Land acquisition (27.55 acres)	4.50
Stamp duty + registration (7%)	0.32
Legal, aggregation, brokerage	0.25
Site infrastructure (roads, fencing, gate)	0.85
Drip + farm pond + solar (net of subsidy)	1.20
Orchard + crop establishment	0.75
Agri equipment (tractor, implements)	0.30
Cottage construction (16 keys × ₹18L)	2.88
Common amenities (clubhouse, pool, café)	1.30
Working capital + opex reserve (Y1-Y2)	0.65
Marketing + sales	0.60
Legal, entity setup, SEBI counsel	0.25
Project management fee	0.40
Contingency (7%)	0.95
TOTAL	15.20

Sources of Funds

Source	₹ Cr	Note
UDS Sales (200 × ₹7.5L)	15.00	At base price
Developer Equity	1.00	Pre-sales bridge
NABARD RIDF (cold room, Y3)	0.07	Loan
TOTAL	16.07

Developer Margin

₹16.07 − ₹15.20 = ₹0.87 Cr (5.7%) — thin margin. Protect by: (a) land below ₹16L/acre, (b) maximising subsidies, (c) value-engineering cottage spec.

Key Risk

If UDS sales stall at 150 (75%) and cottage costs overrun, developer margin turns negative. Mitigation: Start cottage build only after 160+ UDS EOI received.

Buyer's View

Per-UDS Economics — What ₹7.5L Buys

Cost Allocation (per UDS)

Land cost (6,000 sq ft)₹2,25,000

Development (infra + orchard)₹3,35,000

Cottage share₹1,44,000

Marketing + sales₹30,000

Developer margin₹66,000

Total UDS Price₹7,50,000

Land component = ₹125/sq ft (land value only). Compare: Purulia town plots at ₹800–2,000/sq ft.

Annual Benefits (illustrative)

Farm income (Y1–Y2)
Conservative — orchard establishing

₹2,000–5,000

Farm income (Y3–Y4)
Guava + lac + herbs mature

₹8,000–15,000

Farm income (Y5+)
Full mango orchard + all crops

₹25,000–40,000

Cottage nights (from Y3)
10 nights × ₹3,500 resort value

₹35,000 equivalent

Tax treatment

Tax-FREE (Sec 10(1))

Tax-Free Agricultural Income

Farm produce income distributed to co-owners constitutes agricultural income under Section 10(1) of the Income Tax Act 1961. Agricultural income is fully exempt from income tax. Verify with your CA for your specific situation.

Farm P&L

Steady-State Farm Economics (Year 5+)

Farm Revenue (Gross)

Crop	Area	Revenue (est.)
Mango (Himsagar + Amrapali)	10 ac	₹48–80L
Guava (3 crops/year)	4 ac	₹12–15L
Medicinal Herbs (dried)	2 ac	₹24L
Lac (seed lac processed)	5 ac	₹3.1L
Jackfruit	2 ac	₹2.4L
Honey (organic)	—	₹1.2L
Seasonal vegetables	2 ac	₹3L
Gross Revenue		₹93–128L

Farm Expenses (Annual)

Item	₹L/yr
Farm Manager salary	5.0
5 permanent workers	9.0
Seasonal harvest crew	3.0
Inputs (bio, fertiliser, pest)	4.0
Drip system maintenance	1.0
Power + fuel	1.5
Drone survey (quarterly)	1.0
Insurance (crop + equipment)	1.0
Miscellaneous	1.5
Total Opex	27L

Gross Revenue₹93–128L

Total Opex−₹27L

Management Fee (12% gross)−₹11–15L

Reserve Fund (5%)−₹5–6L

Distributable Income₹50–80L/yr

Per UDS (÷ 200)₹25K–40K/yr

Timeline

Developer Cashflow Phases

MONTHS 1–6

Pre-Launch

Developer equity deployment — Entity setup, legal counsel, DLRO application, land DD, first Meta test campaign. Cash out: ~₹1Cr equity deployed.

MONTHS 3–6

Land Acquisition

First UDS pre-sales fund land purchase — First 25 EOIs (₹6.25L deposits) + 25 registrations (₹1.875Cr) → fund ATS advance (₹90L) to seller. DLRO permission expected in this window.

MONTHS 6–18

Development

UDS sales fund infrastructure — Sales pace: ~15 UDS/month. Infrastructure built from rolling receipts. Drip, farm pond, solar pump by Month 12. Orchard planted Month 6–12.

MONTHS 12–24

Cottage Build

Cottage construction begins after 160 UDS sold — NA conversion process started Month 1. Construction starts on receipt of conversion. 16 keys completed by Month 24–30.

YEAR 3+

Ongoing

Management mode — All 200 UDS sold. Developer earns management fees through Management Co. Farm income distributed to co-owners. Hospitality revenue supplements Management Co. revenue.

Risk Analysis

Sensitivity Analysis

Variable	Pessimistic	Base Case	Optimistic
Land price/acre	₹20L	₹16.3L	₹13L
UDS price per unit	₹6.5L	₹7.5L	₹8.5L
UDS sold in 18 months	150 (75%)	200 (100%)	200 (100%)
Cottage cost/key	₹22L	₹18L	₹15L
Subsidy realised	₹20L	₹40L	₹60L
Developer margin	−1.5% to +1%	5.7%	11–13%

Top 3 Risks

Land price negotiation fails — land above ₹18L/acre
UDS sales stall at 60% — insufficient capital for cottages
DLRO permission delayed >18 months — buyer trust erodes

Mitigations

Target multiple parcels; walk away below ₹17L
Milestone-gate: No cottage build until 160 EOIs
File DLRO on Day 1; engage local political support

Government Support

₹40–60 Lakh in Subsidies

₹35L

PMKSY Drip Subsidy

₹8L

MGNREGS (Farm Ponds)

₹10L

NHM Orchard Planting

₹3L

PM-KUSUM Solar

All subsidies require proper application, land ownership proof (Sale Deeds), and government inspection. Apply via Purulia district offices. See Farm page for full tracker.

Project Economics