I need a few clarifications on the company after reading the transcripts of Mr Arun Nanda's interview in www.moneycontrol.com

(http://www.moneycontrol.com/india/news/results-boardroom/sezs-were-main-sourceq4-income-mahindra-lifespace/394942)

1. Now that the Chennai SEZ (first phase) is complete how will the company earn revenues from the project? Is there any recurring revenue stream for the company from the Chennai SEZ? How will revenues from existing Chennai SEZ grow in the coming years?

Chennai MWC Project has both SEZ and Domestic Tariff area (DTA). The SEZ area has been fully leased out. The DTA industrial area already developed has been leased out and is being expanded. We are looking at further development contiguous to the existing park. This additional area as and when developed and leased would give us additional lease revenue. In addition, we have earmarked some land for retail development which is unsold. The retail strategy is under discussion.

Going forward, the recurring revenue stream for both SEZ and DTA area would be Operation and Maintenance charges and water charges.

Further, residential development will be undertaken by Mahindra Integrated Township Ltd a 74: 26 SPV between MLDL and MWCDL over the next 7/8 years.

2. When is the second phase of the Chennai SEZ coming through? Has the land been acquired for the same?

Land procurement is in preliminary stage. It will take a year before we can start development.

3. Will the proposed Thane SEZ also follow the Chennai and Jaipur models? That is, construction of the SEZ followed by development of land nearby for residential purposes?

The R&D focused biotechnology SEZ project is spread over 52 acres. The development model here will be largely own-built, multi-tenanted blocks and Built-To-Suit facilities. There will be some element of non-processing activity as well, mainly residential.

We intend having close to 1 million sq ft of development, in the form of research laboratories, office space and other ancillary facilities like libraries, auditoria, business centres, etc, supported by residential, convenience shopping, and other related elements of social infrastructure.

4. I was running through the financials of the company with an analyst friend of mine and he was surprised at the ROE and ROCE still being in single digits. This when, brokerages like Motilal Oswal and others, expect the company's EPS to treble in the coming years. Could youenlighten us on why this is so? Usually companies with low debt and good growth rates have ROCE of 30 per cent or thereabouts.

The main business segment of the company is Projects, Project Management and Development, in which, the income accrues as per Percentage completion accounting on fulfilment of requirements under Indian GAAP. So the Revenue and result trend is not uniform over the years.

Over the last 4 years the Company’s EPS has grown at a CGR of 342%. The Company runs its SEZ business thru investment in Subsidiaries. The ROE and ROCE of Consolidated business gives a correct picture of the growth of the business of the company.