Our Working Structure

Company Working Structure of REDDINGTON FINANCIAL ADVISORY PRIVATE LIMITED

1. Overview

At REDDINGTON FINANCIAL ADVISORY PRIVATE LIMITED (“Reddington”), we have established a comprehensive working structure to ensure the smooth execution and management of real estate investment projects. This structure outlines the roles, responsibilities, and processes involved in our partnerships with Developers and Promoters (“Developer”) under both Perpetual and Direct Investment models.

2. Organizational Roles and Responsibilities

2.1 Reddington’s Role

• Principal Investor: Reddington acts as the principal investor, managing funds on behalf of associated investor partners. We oversee the financial structure and ensure that investments are allocated efficiently and effectively.
• Compliance Management: We ensure all investment activities comply with the latest guidelines from the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and other relevant regulatory bodies. Our strict adherence to legal and regulatory standards protects both our investors and partners.
• Financial Oversight: Reddington manages the disbursement of funds in tranches to the Developer, ensuring that each release is contingent upon meeting specific conditions outlined in the investment agreement.
• Monitoring and Auditing: We regularly monitor project progress and conduct independent audits to ensure compliance with the terms of the agreement. This includes financial auditing and project performance reviews.
• Project Support: Reddington provides ongoing support to Developers, including financial management, compliance assistance, and project assessment, ensuring that projects are completed successfully and within the agreed timelines.

2.2 Developer’s Role

• Project Execution: The Developer is responsible for the complete planning, execution, and completion of the project as per the terms agreed upon in the investment agreement. This includes all construction, management, and operational aspects.
• Regulatory Compliance: The Developer ensures that the project complies with all applicable laws, including environmental regulations, RERA registration, tax laws, and any other relevant statutes. Adherence to these laws is crucial for the project’s success and legal integrity.
• Documentation and Reporting: The Developer is required to submit all necessary documentation and progress reports to Reddington, including financial statements, project plans, and compliance updates. This ensures transparency and accountability throughout the project lifecycle.
• Security and Collateral Management: The Developer must provide the necessary collateral as outlined in the agreement, securing Reddington’s investment against potential risks.
• Communication: Maintaining open and transparent communication with Reddington is essential. The Developer must provide regular updates on project milestones, financial status, and any challenges that may arise, ensuring that all parties are informed and aligned.

3. Workflow and Processes

3.1 Pre-Investment Phase

• Initial Screening: Reddington conducts a thorough review of the Developer’s proposal, including financial projections, project plans, and regulatory compliance status. This screening ensures that the project aligns with our investment criteria.
• Incorporation Agreement: Following a successful initial screening, an incorporation agreement is sent to the Developer via email, messaging platforms like WhatsApp, and registered mail for review and signature. This formalizes the partnership and sets the stage for the investment.
• Fee Payment: The Developer is required to pay the mandatory listing fee (for Perpetual Investments) or additional fees (for Direct Investments), along with incorporation fees. These fees are necessary for initiating the investment process.

3.2 Investment Phase

• Tranche Disbursement: Funds are disbursed in tranches based on the Developer meeting the conditions precedent outlined in the agreement. Each disbursement is contingent on a detailed review of the submitted documentation, ensuring that the project is on track.
• Progress Monitoring: Reddington continuously monitors project progress through regular updates from the Developer. We may also conduct site visits or independent audits to verify the project’s status and adherence to the agreed terms.
• Compliance Checks: Ongoing compliance checks are conducted to ensure that the project adheres to RBI guidelines, SEBI regulations, and other applicable laws. This step is crucial for maintaining the project’s legal and financial integrity.

3.3 Post-Investment Phase

• Project Completion: Upon project completion, the Developer must submit a final report detailing the financial outcome, project achievements, and compliance status. This report is critical for assessing the project’s overall success.
• Revenue Distribution: For Perpetual Investments, revenue is distributed according to the fixed slab structure. For Direct Investments, revenue is shared in a 60:40 ratio between Reddington and the Developer. This ensures that all parties receive their fair share of the returns.
• Final Audit: Reddington conducts a final audit to confirm that all obligations have been met before releasing the last tranche of funds or finalizing revenue distribution. This audit provides closure and ensures that all terms of the agreement have been fulfilled.

4. Communication and Transparency

4.1 Communication Channels

• Primary Communication: Reddington and the Developer will primarily communicate via email, official letters, and messaging platforms like WhatsApp. These channels ensure that all communication is timely and documented.
• Regular Updates: The Developer is required to provide weekly or bi-weekly updates on project progress, including financial and operational milestones. These updates keep all parties informed and allow for prompt responses to any issues.
• Meetings: Monthly or quarterly meetings (either in-person or virtual) will be held between Reddington and the Developer to discuss project progress, address challenges, and review financial performance. These meetings foster collaboration and ensure that the project stays on track.

4.2 Transparency Measures

• Shared Documentation: All relevant project documentation, including financial statements, project plans, and compliance certificates, must be accessible to both Reddington and the Developer. This ensures transparency and facilitates effective decision-making.
• Audit Reports: Reddington will share audit reports with the Developer to ensure mutual understanding of any issues or discrepancies. This openness is key to maintaining trust and addressing concerns promptly.

5. Conflict Resolution

5.1 Arbitration

• Arbitration Clause: Any disputes arising from this working relationship will be addressed through arbitration as outlined in the investment agreement. This process ensures a fair and legally binding resolution, minimizing the impact on the project.

5.2 Jurisdiction

• Legal Jurisdiction: The courts at Panvel, Navi Mumbai, Maharashtra (or the relevant jurisdiction as specified in the agreement) shall have exclusive jurisdiction over any legal disputes that cannot be resolved through arbitration. This provides a clear legal framework for resolving disputes.

6. Disclaimer

Reddington reserves the right to amend this working structure and any associated policies based on quarterly updates following guidelines issued by the RBI, SEBI, and other relevant regulatory bodies. All amendments will be communicated to the Developer in a timely manner, ensuring that all parties are aware of any changes that may affect the project.