Académique Documents
Professionnel Documents
Culture Documents
-1-
18.3.2008
Whether fresh/renewal/
Enhancement / Fresh
enhancement
Asset Classification as Standard
on 31-03-2007
Credit Risk Rating by
Rating Date of Score
ABS
Reasons for
Bank
Rating
degradation
Present BB22/02/08 51.51 31.03.2007 Financial
Performance
Previous BB+ 03/01/07 57.89 31.03.2006 N.A.
Whether
No
Agriculture/Retail/
SME/Large
a) Whether
No
Sensitive Sector
Real
Estate/Capital
Market
b) Applicable Risk weight
Consortium/Multiple
Banking
Lead Bank
PNBs Share %
Date of Receipt of
Proposal at BO/CO/HO
Date of last sanction &
authority/In Principle
Consent
-1-
-2-
Borrowers Profile
a) Name of the Borrower
Name of Units
B Address of Regd. Office and institutes
C Constitution
d. Date of incorporation/
Establishment
e. Dealing with PNB since
f. Industry/Sector
g. Business Activity (Product)/
Installed Capacity.
3.
Name
1.Sh.Rakesh Garg
2.Sh.Atul Garg
3 Sh.Sarish Agarwal
4.Sh.Sunil P.Gupta
5.Sh.Ghanshyam Das Jain
6.Sh.Ram Avtar Karanwal
7.Sh.Mittul Singhal
8.Sh.Om Parkash Shah
Designation
Chairman
Vice Chairman
Secretary
Treasurer
Member
Member
Member
Member
Whether
Promoter/
Professional /Nominee
Promoter
Promoter
Promoter
Promoter
Promoter
Promoter
Promoter
Promoter
a)
b)
No
c)
No
d)
No
-2-
-3-
f)
No.
shares
N.A.
N.A.
N.A.
N.A.
N.A.
of Amt.
in
Crores.
N.A.
N.A.
N.A.
N.A.
N.A.
(Rs. in lacs)
Proposed
Secured/Unsecured
along
with
the
basis
thereo
f
50.00
50.00
100.00
100.00
Secured
225.00
225.00
232.11
377.80
959.98
-1569.89
1844.89
225.00
225.00
232.11
377.80
959.98
1022.00
2591.89
2916.89
Secured
Existing
Fund Based
Overdraft against tangible security
Fund based ceiling
Non Fund Based
ILG
Non Fund Based Ceiling
Term Loan I (Rs.7.22 crores)
Term Loan II (Rs.5.00 crores)
Term Loan III (Rs.12.00 crores)
Term Loan IV Fresh
Total Term loans
Total Commitment
N.A.
N.A.
N.A.
N.A.
N.A.
N.A
N.A.
N.A.
N.A.
Rs. % Holding
Secured
Secured
Secured
Secured
KCT*
Existing
Proposed
1400.00
1400.00
-3-
%age
of Exposure
Banks Capital Norms in %age
Funds as on
31.03.______
FCS*
1844.89
-4-
2916.89
Amount
Period
ROI
Date of
Adjustment/
Roll over
Purpose
Rate
Interest
of
investment
in
NIL
4. D Details of facilities provided outside consortium, if any l
Name of
Institution
the Nature
facility
of Security
a)
b)
5.A
O/s
as on
NIL
of
NIL
Name of
Institution
the Nature
facility
of Security
a)
b)
O/s
as on
Purpose
Overdue,
any
if
NIL
Facility
Sanctioned
Auto Loan
Auto Loan
Auto Loan
Balance O/s
in Rs.
132609.45
122025.00
132609.45
Overdue, if
any
NIL
NIL
NIL
Rate of
Interest
7.30%
7.30%
7.30%
Rating
Date of
Rating
Significance
of Rating
NA
Purpose
Validity
Date
Name of the
Bank
Existing
FB
NFB
-5-
Share %
Proposed
FB
NFB
FB
NFB
NIL
Share %
FB NFB
ROI
6. Details of Group /Allied/Associate firms and the facilities sanctioned to them along
with conduct of these accounts with our Bank/ other Banks and comments on adverse
indicators, if any.
As per Appendix II
7.A (i) Financial Position of the Society (as a whole)
(Rs. In Lacs )
31.03.05
Audited
Particulars
(12 Month)
31.03.06
31.03.07
Audited Audited
(12 Month)
(12 Month)
Gross Sales/Receipts*
-Domestic
-Export
Other Income
PBIDT
Operating Profit/Loss
Profit before tax
Profit after tax
Cash profit/ (Loss)
Paid up capital/Corpus Fund
Reserves
and
Surplus
excluding
revaluation
reserves
Misc. expenditure not written
off
Accumulated losses
Deferred Tax Liability/Asset
00.00
NIL
NIL
NIL
NIL
-63.03
-63.03
-63.03
-63.03
322.42
-
00.00
NIL
NIL
NIL
NIL
-163.05
-163.05
-163.05
-163.05
280.02
-
00.00
NIL
NIL
NIL
NIL
-113.58
-113.58
-113.58
-113.58
213.68
-
0.00
0.00
0.00
0.00
0.00
0.00
a)
Tangible Net Worth
b)
Investment in allied
concerns and amount of
cross holdings
c)
Net Owned Funds (a-b)
322.42
0.00
280.02
0.00
213.68
0.00
322.42
280.02
213.68
Total
322.42
540.18
1090.48
280.02
332.30
337.70
213.68
872.67
872.67
Unsecured Loans
Total Borrowings
-5-
Secured
Unsecured
Investments
Total Assets
Out of which net fixed assets
Net Working Capital
Current Ratio
Debt Equity Ratio
Operating Profit/Sales
TOL/TNW
Fund flow
Long Term Sources
Long Term Uses
Surplus/Deficit
Short Term Sources
Short Term Uses
Surplus/Deficit
-6-
550.30
540.18
1412.20
1413.74
0.00
0.64
1.77
3.38
00
3.38
5.40
332.30
586.31
619.55
0.00
31.34
18.13
1.21
00
1.21
872.67
914.69
1090.20
0.00
171.60
45.69
4.08
00
4.08
1412.91
1412.27
0.64
0.83
1.47
-0.64
617.72
586.38
31.34
1.83
33.17
31.34
1086.36
914.76
171.60
3.84
175.44
171.60
*The fee etc. are received in the Institutes and unit wise surplus and deficit is transferred
to Societys account.
(ii) Krishna Engineering College (Unit of Friends Charitable Trust)
(Rs. In Lacs)
31.03.2005 31.03.2006 31.03.2007
Audited
Audited
Audited
Receipts
111.48
234.80
500.50
Other Income
11.47
7.76
12.69
Operating Profit (loss)
-74.81
-84.90
-25.78
Excess of Expenditure over
Income
-63.34
-77.14
-13.09
Depreciation
62.07
83.29
120.81
Cash Profit
-1.27
6.15
107.72
Capital Fund
698.19
507.46
768.04
Miscellaneous Exps. Not written
off
0.00
0.00
0.00
Accumulated loss
0.00
0.00
0.00
Tangible Net Worth
698.19
507.46
768.04
Debt Equity ratio
0.06
1.37
1.12
Current Ratio
1.61
0.94
1.19
NWC
24.41
-4.97
19.70
(iii) Krishna Dental College (Unit of Friends Charitable Society)
(Rs. In lacs)
31.03.2005 31.03.2006
-6-
31.03.2007
Receipts
Other Income
Operating Profit
Excess of Expenditure over
Income
Depreciation
Cash Profit
Capital Fund
Miscellaneous Exps. Not written
off
Accumulated loss
Tangible Net Worth
Debts Equity ratio
Current Ratio
NWC
-7-
Audited
4.23
0.31
-106.42
Audited
195.75
1.49
-87.42
Audited
379.94
2.12
-102.61
-106.11
--106.11
714.01
-85.93
60.02
-25.91
78.85
-100.49
91.19
-9.30
146.65
122.39
0.00
591.62
0.01
2.49
0.00
0.00
78.85
12.55
0.48
0.00
0.00
146.65
8.39
1.49
14.01
-51.19
37.21
Till 2005, the bank loans taken by the society for Engineering College and Dental college
were shown in the Balance Sheet of the Society and not in the Balance sheets of
the respective colleges. Later on, on the observation of Fee fixation committee, the
secured loans taken by the colleges were reflected in their respective balance
sheets as at 31.03.2006. As such, there is no decline in capital fund of colleges
from 2005 to 2006 but due to change in presentation, it is appearing as declining.
Besides, capital account in the balance sheets of college represent amount invested
by the society.
7A (ii) Key Financials upto last quarter ended 31/12/2007
(as per Un-audited Results )
M/s Krishna Engineering College
Period
ended
Sales
Other
Income
PBT
PAT
Latest
quarter
ended
Corresponding
quarter of last
year
7.69
3.52
NIL
NIL
-186.17
-186.17
-134.09
-134.09
(Rs. in lacs)
%
Change
(38.84%)
Cumulative
upto this
quarter of
current year
857.85
6.92
Cumulative
upto this
quarter of
previous
year
500.94
5.43
+71.25%
+27.44%
467.21
467.21
296.13
296.13
+57.77%
+57.77%
Rs. in lacs
-7-
%
Change
Period
ended
Sales
Other
Income
PBT
PAT
Latest
quarter
ended
Corresponding
quarter of last
year
290.50
5.46
231.54
3.61
+25.45%
+51.24%
486.50
12.33
Cumulative
upto this
quarter of
previous
year
399.89
7.30
204.63
204.63
186.00
186.00
+10%
80.88
80.88
161.66
161.66
%
Change
Cumulative
upto this
quarter of
current year
-8-
%
Change
+21.65%
+68.90%
-50%
-50%
N.A.
Listing
BSE/NSE
Face Value
NA
Current Share Price as on
NA
52 weeks High / Low
NA
Market Capitalisation as on
NA
7.C Comments on Financial Indicators (only major variation/trends to be explained)
(Rs. In Crores)
Particulars
Accepted during
Actuals
for
FY
last assessment for FY 2006-07
2006-07
Net Sales/Receipt
998.66
895.24
Excess of income
218.90
-113.58
over Expenditure
Receipts :
The Society has achieved total receipts of Rs.127.55 lacs during FY 2004-05 and Rs.
439.80 lacs in F.Y. 2005-06 including both Engineering as well as Dental college,
registering an increase of Rs. 312.25 lacs in F.Y. 2005-06. Further, during academic
session 2006-07, the society has achieved total receipt of Rs. 895.24 lacs showing that
the society has achieved more than double as compared to the receipt of F.Y. 2005-06.
The party has achieved receipts of Rs.895.24 lacs against the projections of Rs.998.66
lacs during the FY 2006-07. The party has informed that they had assumed 60 students
for MCA classes but only 30 students was admitted and also there is decline in hostel
fees in Krishana Engg College. Besides, they got 86 students against the 100 students
as proposed in Dental College in 2007. However, the party has got 100 students in
Dental College in 2008.
Profitability
Profitability during FY 2006-07 has suffered mainly due to increase in salary & other
benefits of qualified faculty staff which the society had to incur so as to maintain quality
of education. Due to increase in seats of Computer Science and Electronics &
-8-
-9-
Communication and introduction of one new branch of Engineering i.e. Information &
Technology, the profitability of the society will improve significantly. Further, MCA course
with in take of 60 students has been started and society is going to start PGDBM course
from ensuing session, consequently profitability is likely to increase.
The net of income and expenditures of colleges are transferred to P&L account of society.
As such, there are cash losses of society because depreciation has not been transferred
to P&L account of society due to net surplus/deficit transfer. The true picture is as under :Losses as per P&L of society
Depreciation as per P&L of Colleges KEC
Depreciation as per P&L of Colleges KDC
Actual cash loss/profit of society
2005
-63.03
62.07
-- 0.96
2006
-163.05
83.29
60.02
-19.74
2007
-113.58
120.81
91.19
98.42
Corpus Fund
The society prepares three balance sheets and income expenditure account every year.
These represent (i) dental college, (ii) engineering college and (iii) society. The corpus is
brought into the society and the money utilized by the society in college is shown as
Investment in colleges, in the society balance sheet. The bank loan is shown in the
balance sheets of colleges.
The society is raising corpus fund by obtaining donations every year but it is declining due
to excess of expenditure over income as under :2005
221.89
163.57
385.46
63.04
322.42
2006
322.42
120.65
443.07
163.06
280.01
2007
280.01
47.24
327.25
113.58
213.67
Besides, the society has raised unsecured loans from Rs.332.30 lacs as on 31.03.2006 to
Rs.872.67 lacs as on 31.03.2007. As such, the society is raising its long term funds.
Current Ratio
The current ratio is very high. Though the same is not of much relevance in such cases.
Debt Equity Ratio
The debt equity ratio of the society is very high i.e. 4.08 as at 31.03.2007 due to high
amount of unsecured loans in comparison to the corpus fund. The DE ratio of the colleges
of the society as on 31.03.2007 are 1.12 and 8.39 as shown above. The society will raise
the corpus fund to the tune of Rs.1222.74 lacs against the debt of Rs.2712.05 lacs
resulting in DE ratio to 2.22 as.at 31.03.2008 The same will come to 1.61 by raising
corpus fund to Rs.1598.17 inclusive of surplus against the debt portion of Rs.2570.85
resulting in DE ratio to 1.61 as at 31.03.2009.
The corpus fund of the society has increased from Rs.213.67 lacs as at 31.03.2007 to
Rs. 624.89 lacs as at 31.01.2008 as per Prov. Balance Sheet (Fund Rs.278.05 lacs +
Surplus of income Rs.346.84 lacs = Rs.624.89 lacs).
-9-
- 10 -
The society is incurring losses in initial years and will be in positive soon. The overall
financial position of the society may be termed as satisfactory.
7.D
7.E
7.H
7.I
Overall likely impact of (7.B to 7.F) on the financial position of the borrowing unit
BGs have been issued for normal course of business and shall not have any
adverse impact on the financials of the society.
8.
SECURITY
A.
Primary
i)
ii)
- 10 -
- 11 -
Security
Descripti
on
ii)
Nature of
limits
Area in
Sq M
Ownership
Last
sanct
ion
Value(Rs./crore)
Prese Realisab
nt
le value
book
value
NIL
Basis
for
valuatio
n
Dat
e
Wheth
er
existin
g/
fresh
Value of
block
assets as
on: (as per
B/Sheet)
Term
Loan
Working
Capital
Value of
Extent of first /
block assets second charge
excluding
holders
specific
charge if any
NA
NA
- 11 -
Balance /
residual value of
charge available
to bank/
consortium
Sl.No.
Name of
Guarantor
Net Worth
Previou
s
Present
- 12 -
Immovable property
Previou
s
1.
2.
3.
Present
Sh.Atul Garg
66.13
643.57
87.50
Sh.Rakesh Garg*
19.00
343.50
26.49
Sh.Sarish Kr.
142.40
473.90
142.00
Chaudhary*
4.
Sh.Sunil P Gupta*
14.45
297.50
14.00
Total
241.98 1758.47
269.99
*They are also guarantors for the credit facilities in favour of
being availed at ours.
iv
103.50
70.00
578.50
Present
20.11.2006
20.11.2006
20.11.2006
12.02.08
20.11.07
20.11.07
200.00
20.11.2006
952.00
Kanha Charitable Trust
Increase in Net Worth is due to acquiring fresh immoveable properties by the guarantors
and also some of the old properties were not included in previous statement for want of
proof of titles at that time.
V
8. C
Nature
Primary
Collateral
Total
T Loans
Total Exposure
Existing
Proposed
Book value As FACR
Book
Value FACR on project
per
ABS
(31.03.2009)
completion
31.03.2007
2946.48
2.01
4506.36
2.38
----2946.48
2.01
4506.36
2.38
1460.61
2.01
1893.28
2.38
1685.61
1.75
2218.28
2.03
1.00
25.92
- 12 -
Rs in crores
20.11.07
BG
- 13 -
2.25
Total Exposure
B. Value of Securities
29.17
EM of IPs
Hypothecation of other assets
Margin on BG @10%
C. Total value of the securities offered.
Asset Coverage Ratio- C/A
87.70
7.80
0.225
95.72
3.28 times
At the time of last sanction , the value of IP was Rs. 56.67 crores ( 44.58 crores + 12.09
crores) but looking into the construction and rise in land values, we have accepted the
same at Rs.87.70 crores ( App. Rs.75.37 crores + 12.33 croes) which is realistic and
reasonable.
9.
Nature
Term Loan I
Term Loan-II
Term Loan III
Overdraft
Bank Guarantee
Limit
900
500
1200
50
VS
24.66
225
(Rs. in lacs)
DP
232.11
377.80
959.98
60.00
225.00
Balance
Irregularity
232.11
Nil
377.80
Nil
959.98
Nil
60.00* Allowed within
discretionary
powers of
AGM(Br.)
225.00
Nil
- 14 -
NIL
NIL
NIL
01.04.06 to 31.03.07
01.04.07 to 31.12.07
01.04.06 to 31.03.07
01.04.07 to 31.12.07
Nature
of Limit
TL
TL
OD
OD
Amount
1443.75
1543.71
50.00
50.00
Interest/Commission Earned
109.80
136.89
5.26
2.17
Yield (%)
7.61%
8.87%
11.38%
5.78%
Brief History
- 14 -
- 15 -
Friends Charitable Society is a society registered under the Societies Registration Act
1860 registration number 1423 dated 13.03.2003. The society owns land measuring
69,000 Sq. Mtr. approx and has been running Engineering and Dental College at Mohan
Nagar, Ghaziabad. An engineering college in the name of Krishna Engineering College
has become operational from academic season 2004-05 and Dental college in the name
of Krishna Dental College has become operational from the academic session 2005-06.
As per All India Council for Technical Education letter dated 06.06.2006, number of seats
for admission to 1st year of Elect & Comm. Engg. w.e.f. academic session, 2006-07,
has been increased to 120 from existing 60. Further one new branch of Engineering i.e.,
Information Technology with intake of 60 students and M.C.A. with intake of 60
students has been started.
Further, as per All India Council for Technical Education letter dated 21.08.2007, number
of seats for admission to 1st year of Computer Science & Engineering w.e.f. current
academic session, 2007-08, has been increased to 120 from existing 60.
Presently, the society is running the following courses/student strength:
Sl. No.
1.
2.
3.
4.
5.
6.
7.
Intake
(2005-06)
60
60
60
-60
-100
Intake
(2006-07)
60
60
120
60
60
60
100
Revised
Intake
(2007-08)
120
60
120
60
60
60
100
2.
Mitigating Factors
Our Views
on higher side.
3.
4.
- 16 -
rating.
The
sensitivity
analysis
shows the company value at
11.95%.
Number
of
professional
institutes are coming in and
around NCR region.
the project as at
31.03.09, the DE
ratio will be 1.61 by
raising corpus fund.
It is properly considered in the The same has been
rating.
factored into the risk
rating.
The professional approach & The management
quality education is required has its own name
for
survival
in
present and
fame.
The
scenario.
society has got
award from UP
Govt.
for
best
institute among Pvt
and Govt. sector.
Present Proposal
Present proposal has been submitted by the society to finance the expansion plan of the
existing Engineering College and the Dental College. To finance the construction of new
academic and PGDBM block along with purchase of computers, lab equipments and
furniture fixture.
For the above purpose, the party has requested for Term Loan of Rs.1022 lacs to be
used for Engineering College & Dental College.
The society is already availing OD against tangible security of Rs.50 lacs , which the
society has requested to enhance to Rs.100 lacs and renewal of BG limit of Rs.225 lacs.
The party has requested for renewal of the same.
a)
- 16 -
- 17 -
fee etc. The monthly cash flow statement from September to August is placed in the next
sheets for each college separately indicating the peak level deficit.
The society is already availing OD limit against tangible securities of Rs.0.50 crores. In
order to meet the expenditure / deficit in cash-flow, we recommend for enhancement in
OD limit from Rs.0.50 crores to Rs.1.00 crores.
KRISHNA DENTAL COLLEGE
STATEMENT SHOWING PEAK LEVEL DEFICIT
Particulars
Opening
Balance
Up to
March
08
Apr08
May08
Jun08
Jul-08
Aug08
Sep08
Oct08
Nov08
Dec08
Jan09
Feb09
Mar09
2.40
-38.93
-39.19
-39.45
-50.76
-49.02
34.34
-46.65
39.21
198.07
139.81
83.50
30.82
155.00
0.00
0.00
0.00
0.00
0.00
0.00
10.00
0.00
0.00
0.00
0.00
INFLOW
Corpus Fund
Academic
Fee
530.50
0.00
0.00
0.00
0.00
184.00
184.00
184.00
184.00
0.00
0.00
0.00
0.00
Hostel Fee
48.00
0.00
0.00
0.00
0.00
28.12
28.14
28.12
28.12
0.00
0.00
0.00
0.00
Misc. Recpt.
Security from
Student (Net)
Secured Loan
- Term Loan
Unsecured
Loan
Net Current
Assets
23.00
2.37
2.37
2.37
2.37
2.37
2.37
2.37
2.37
2.37
2.37
2.43
2.37
197.36
0.00
0.00
0.00
0.00
123.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
367.69
25.00
25.00
25.00
25.00
28.00
28.00
26.00
25.00
25.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
55.00
55.00
65.00
57.00
0.00
10.00
0.00
0.00
0.00
0.00
0.00
0.00
1321.55
82.37
82.37
92.37
84.37
365.99
252.51
250.49
239.49
27.37
2.37
2.43
2.37
309.84
30.45
30.45
30.45
30.45
30.45
30.45
30.45
30.45
30.45
30.45
30.87
30.45
126.03
11.55
11.55
11.55
11.55
11.55
11.55
11.55
11.55
11.55
11.55
11.55
11.59
8.97
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
147.73
12.47
12.47
12.47
12.47
12.47
12.47
12.47
12.47
12.47
12.47
12.52
12.52
4.05
0.00
0.00
4.05
0.00
0.00
0.00
0.00
0.00
0.00
4.05
0.00
0.00
344.64
28.00
28.00
28.00
28.00
28.00
28.00
28.00
26.00
26.00
0.00
0.00
0.00
281.00
0.00
0.00
17.00
0.00
0.00
216.00
32.00
0.00
5.00
0.00
0.00
5.00
24.13
0.00
0.00
0.00
0.00
0.00
34.87
0.00
0.00
0.00
0.00
0.00
0.00
-1.00
117.49
0.04
0.00
0.04
0.00
0.04
0.00
0.04
0.00
0.04
200.00
0.04
0.00
0.04
50.00
0.04
0.04
0.04
0.05
0.05
TOTAL
INFLOW
OUTFLOW
Revenue
Expenditure
Salaries &
Other
Benefits
Administrative
Expenses
Hostel
Expenses
Interest on
Loans
Commission
on Bank
Guarantee
Capital
Expenditure
Construction
& Other
Assets
Repayment of
Term Loans
Repayment of
Unsecured
Loans
Repayment of
Car Loan
Net Current
- 17 -
- 18 -
Assets
TOTAL
OUTFLOW
Net Flow
OD from PNB
Closing Cash
Balance
1362.88
82.63
82.63
103.68
82.63
282.63
333.50
164.63
80.63
85.63
58.68
55.11
59.73
-41.33
-0.26
-0.26
-11.31
1.74
83.36
-80.99
85.86
158.86
-58.26
-56.31
52.68
57.36
0.00
0.00
-38.93
-39.19
-39.45
-50.76
-49.02
34.34
-46.65
39.21
198.07
139.81
83.50
30.82
26.54
Up to
March
08
1.93
Apr08
May08
Jun-08
Jul-08
Aug08
Sep08
Oct08
Nov08
Dec08
Jan09
Feb09
Mar09
-45.04
-45.15
-48.26
-48.37
1.86
154.25
145.64
318.03
234.92
146.81
88.81
30.47
INFLOW
Corpus Fund
350.00
Academic Fee
690.58
0.00
0.00
0.00
250.25
250.25
250.25
250.25
0.00
0.00
0.00
0.00
0.00
Hostel Fee
165.56
0.00
0.00
0.00
55.25
55.25
55.25
55.25
0.00
0.00
0.00
0.00
0.00
17.50
1.71
1.71
1.71
1.71
1.71
1.71
1.71
1.71
1.71
1.82
1.71
1.71
65.00
65.00
65.00
65.00
65.00
65.00
Misc. Recpt.
Security from
Student (Net)
Secured Loan
- Term Loan
Unsecured
Loan
Net Current
Assets
TOTAL
INFLOW
26.06
369.71
27.84
70.00
65.00
65.00
0.00
90.00
80.00
100.00
1724.38
161.71
146.71
166.71
400.05
372.21
372.21
372.21
66.71
66.71
1.82
1.71
1.71
290.92
32.38
32.38
32.38
32.38
32.38
32.38
32.38
32.38
32.38
32.38
32.47
32.38
123.45
12.85
12.85
12.85
12.85
12.85
12.85
12.85
12.85
12.85
12.85
12.96
12.85
55.18
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.15
0.15
141.47
14.39
14.39
14.39
14.39
14.39
14.39
14.39
14.39
14.39
14.39
14.39
14.46
738.93
102.00
90.00
90.00
90.00
90.00
90.00
90.00
90.00
90.00
0.00
0.00
0.00
281.00
0.00
0.00
17.00
0.00
0.00
216.00
50.00
0.00
5.00
0.00
0.00
5.00
1.03
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.12
139.37
0.00
0.00
0.00
200.00
70.00
15.00
0.00
0.00
0.00
0.00
0.00
0.00
104.97
OUTFLOW
Revenue
Expenditure
Salaries &
Other Benefits
Administrative
Expenses
Hostel
Expenses
Interest on
Loans
Capital
Expenditure
Construction &
Other Assets
Repayment of
Term Loans
Repayment of
Unsecured
Loans
Repayment of
Car Loan
Net Current
Assets
- 18 -
TOTAL
OUTFLOW
- 19 -
1771.35
161.82
149.82
166.82
349.82
219.82
380.82
199.82
149.82
154.82
59.82
60.05
64.96
-46.97
-0.11
-3.11
-0.11
50.23
152.39
-8.61
172.39
-83.11
-88.11
-58.00
58.34
63.25
0.00
0.00
-45.04
-45.15
-48.26
-48.37
1.86
154.25
145.64
318.03
234.92
146.81
88.81
30.47
32.78
Net Flow
OD from PNB
Closing Cash
Balance
Purpose
A. Appraising agency
The project has not been appraised by any bank/institution, because no technical
process is involved. Number of seats for engineering/dental courses is decided
by AICTE/DCI and fee to be charged is decided by U.P.Govt. However, the
branch has appraised the proposal of the party and being a running institute
based on estimates/projections, the same is found viable. The financial
projections given by the party have been assessed and found reasonable and
acceptable. We agree with the same. The cost of construction, implements are
as per market trend and have been accepted. The party will purchase the same
from reputed suppliers.
B.
(iii)
COST OF PROJECT
( Rs.in lacs)
Engg. College
- 19 -
Dental College
Total COP
Civil Construction
Lab Equipments
Computers- Hardware
& Software
Furniture & Fixtures
Books
Diesel Generator
Dental Vans
TOTAL
- 20 -
924.00
40.00
30.00
309.00
150.00
---
1233.00
190.00
30.00
30.00
5.00
---
15.00
5.00
10.00
45.00
10.00
10.00
--1029.00
15.00
504.00
15.00
1533.00
MEANS OF FINANCE :
Term Loan from PNB
Internal Accruals
Own Contribution
Total
(iv)
1022.00
150.00
361.00
1533.00
Promoters Contribution to the tune of Rs. 511.00 lacs will include Internal
Accruals and Own Contribution by raising corpus fund. The funds will be brought
in as per the margin proportionately. The party has informed that they will bring in
their contribution well in time by withdrawing deposits/investments with their other
sister concerns. They have also requested to release the term loan with
proportion of their contribution from time to time.
The party has estimated cash accruals of Rs.267.51 lacs and Rs.375.43 lacs for
FY 2007-08 and FY 2008-09 and they will bring an amount of Rs.150 lacs in the
project.
(v) Status of tie-up of loans
The Society has requested for a term loan of Rs. 1022 lacs for the present
expansion programme.
(vi)
Brief explanation for each major individual item of cost of Project with
present status
along
with
comments
on
the
reasonableness/competitiveness
As per Appendix VI
vii)
- 20 -
viii)
- 21 -
Debt-Equity Ratio
Average DSCR
Minimum DSCR
Internal Rate of Return (Pre Tax)
Break Even Point
ix)
x)
xi)
Present physical & financial status of the last project, if any :The party had been sanctioned term loan of Rs.12.00 crores for
construction of additional building , purchase of lab equipments, furniture
& fixtures, computers etc. for both the colleges on 07.02.2007 by ZO. As
per implementation schedule given at the time of sanction of proposal, the
construction was to be completed in March 2007. But due to delay in
sanction and the fact that the construction activities takes some time , the
party approached us in the month of July 2007 and submitted the revised
implementation schedule as under :Acitivity
Completion of construction
Purchase of other assets
Time Period
Dec 2007
Dec 2007
Looking into the genuine request of the party and the same was not
properly estimated intially , the same was accepted by us. We
recommend to note the facts. The above project also stands completed
in Dec 2007.
xii)
Implementation schedule
Activity
Starting Date
Completion Date
Construction
Already commenced 31.08.2008
Other fixed assets 01.07.2008
31.08.2008
xiii)
- 22 -
250.00
200.00
150.00
422.00
The party has submitted the above draw down schedule and we recommend for
approval of the same.
xiv)
31.08.2008
Sept 2008
7 months
1 month
Yearly
5 (five)
30.09.2008
30.09.2012
4 Years 8 Months
Pricing
Rate of interest
Facility
Overdraft
TL
Processing Fee
Processing Fee
Upfront Fee
Documentation
Fee
OD
renewal
NFB
renewal
TL
--
Applicable rate
@ BPLR + 2%
i.e. 14.50%
@ BPLR + 2%+
0.50%
(term
premia)
i.e.
15.00%
Rs.250 per lac
Rs.125 per lac
Existing
@ BPLR -1.25%+
i.e. 11.25%
@ BPLR %+
0.50%
(term
premia)1.75%
i.e. 11.25%
As per Bank
rules
As per Bank rules
Proposed
@ BPLR -1.25%+
i.e. 11.25%
@
BPLR
%+
0.50%
(term
premia)1.75%
i.e. 11.25%
As per Bank rules
As per Bank rules
@ 0.625%
Rs.25,000.00
(a) Justification
As per Sl.No.14 given below.
(b) ROI/other charges stipulated by other participating banks, if applicable -N.A.
14.
Other Issues
(i)
Relaxation in ROI
The members of the society are running four educational institutions at
- 22 -
- 23 -
Ghaziabad and having very good reputation in the area. Party is presently
availing overdraft and Term Loan facility on ROI @ 11.25% and requested to
continue the same for existing as well as proposed facilities. They are availing
credit facilities in their other organizations from OBC and other bank at
competitive interest rates.
Keeping in view the sizeable volume of business as recently another engineering
college at Moradabad being established has come to our folds and also the
possibility of taking over the accounts of their other institutions from other banks,
we recommend for enhancement in existing overdraft facility from Rs. 50.00 lacs
to Rs.1.00 crore at rate of interest @ 11.25% (Linked with BPLR) and sanction of
fresh term loan of Rs.10.22 crores on ROI @ 11.25% (Linked with BPLR).
Hence, we recommend for approval of relaxation in ROI by 3.25% in case of OD
against Tangible Security and 3.75% in case of Term Loans (existing and
proposed).
(ii)
(iii)
- 24 -
Programme Codes
1. Computer Science
2. Electrical Engineering
3. Mechanical Engineering
4. Electronic Communication
5. Information Technology
(B) MCA
(C) BDS
10
21
40
31
13
14
15
Total
The total projected number of students for all the courses will be 1700 approximately
taken together in the year 2008-2009.
FEE DETAILS PER YEAR
Academic Programme
Existing fees(2007-08)
- 25 -
The maximum fees under B.TECH & BDS Courses may be estimated at approximately
Rs. 99000/- (Rs. 65000/- + Rs. 34000/-) and Rs. 258620/- (Rs. 208620/- +Rs. 50000/-)
respectively. As per existing practice , the fees are being paid by the Guardians
/Students through drafts issued by different Banks therefore a student who is required to
purchase a draft for Rs. 99000/- is supposed to pay a commission of Rs. 300/approximately to the issuing Bank . Therefore extending the leverage of CBS Facility to
the students so that students are induced to deposit the fees only through the branches
of PNB Charges of RS. 10/- per thousand with a maximum of Rs. 100/ per fees
transaction is proposed. Such transactions will be a matter of routine and as such no
significant cost is involved.
As Such if the facility is availed by say 1000 students (Conservative estimates) then the
remuneration to be earned by Bank is estimated at Rs. 100000/- in the first year The
Charges will be borne by the Students as agreed. With the above estimates and
relaxation on the part of the students the above remuneration may be garnered by our
Bank .
BRANDED DEBIT CARDS
This is proposed by the Institute that the Branded Debit Cards will be issued to
approximately 800 salaried employees and students. As such this is estimated that
average balance in the above accounts proposed to be opened with our Bank would be
around Rs. 1 Crore which is a significant amount of Low Cost Deposit.
In view of the above we recommend for sanction facility of pay fee and branded debit
Cards in favour of engineering & dental Colleges of the society.
15.
Strengths
-
- 25 -
- 26 -
SR.MANAGER
CHIEF MANAGER
DATE:
- 26 -
ASSTT.GENERAL
MANAGER
- 27 -
Appendix II
Details of Group /Allied/Associate firms and the facilities sanctioned to them along with
conduct of these accounts with our Bank/ other Banks and comments on adverse
indicators, if any.
Members are running Krishna Institute of Engineering and Technology-Muradnagar,
Indraprastha Engineering College(IPEC)-Sahibabad and Ajay Kumar Garg Engineering
College (AKG)-Ghaziabad and Krishna Institute of Management & Technology,
Moradabad.
Name of the
Company
Activity
Dealing
Bank
Facilities
Nature &
Amount
Bank
of Overdraft limit
Baroda
Rs.44.46 lacs
& Term Loan
of Rs.396.04
lacs
Indian
Educational
Institute
of Institute
Managemen
t
&
Engineering
Society. Unit
AKG Engg.
College,
Delhi Hapur
By
Pass
Road
Ghaziabad.
Period
Corpus
fund
Add
Reserves
& Surplus
TNW
PBT
Sales
Period
31.03.2006 31.03.2007
Corpus
450.00
572.40
fund
Add
0.00
.0.00
Reserves
& Surplus
Less Acc.
0.00
0.00
Losses &
Intangible
Assets
TNW
450.00
572.40
PBT
55.00
122.76
Sales
962.00
1302.00
UTI Bank
Krishna
Educational
Charitable
Institute
Society
Unit Krishna
Institute
of
Engineering
Period
Corpus
fund
Add
Reserves
& Surplus
31.03.2006 31.03.2007
963.00
963.46
939.00
993.67
1902.00
18.40
999.00
1957.13
54.96
1037.65
31.03.2006 31.03.2007
121.00
121.00
929.00
- 27 -
1011.80
Term
Loan
Rs.5.56
crores,
Overdraft limit
Rs.0.60
crores
&
Technology
Murad
NagarGhaziabad
Kanha
Educational
Charitable
Institute
Trust Unit
Krishna
Institute
of
Managemen
t
&
Technology
Moradabad.
TNW
PBT
Sales
Period
Corpus
fund
Add
Reserves
& Surplus
TNW
PBT
Sales
1050.00
63.00
1081.00
- 28 -
1132.76
83.09
1327.20
31.03.2006 31.03.2007
----
--
----
----
Punjab
Term
Loan
National
Rs.1400 lacs,
Bank,
under
MCB,
disbursement.
Rajnagar,
Ghaziabad
Kanha Charitable Trust is a new Trust formed in May 2007 and in a construction stage,
there is no financials for the year ending 31.03.2006 and 31.03.2007.
Comments on conduct of these accounts with our bank/other banks
Name
KIET
IPEC
Dealing Bank
ING
Vysya
Bank
UTI Bank
AKG
BOB
Kanha
PNB, MCB
Charitable Trust
Conduct
Satisfactory and Standard
as on 31.03.07
Satisfactory and Standard
as on 31.03.07
Satisfactory and standard
as on 31.03.07
Term
Loan
under
disbursement
- 28 -
- 29 -
Appendix III
Review of the Account and Summary of serious irregularities pointed out by Banks
Inspectors, Concurrent Auditors, Credit Audit & Review Division (CA&RD), RBI
Inspectors, Statutory Auditors, observations of Stock Audit Report, Comment on
Preventive Monitoring Score Trends, (and status of rectification of these irregularities)
- 29 -
- 30 -
Appendix - IV
Detailed Industry Scenario and Comments on management, production and marketing
as well as Borrowers' diversification, expansion, modernization programme
Technical courses are ever-demanding courses, more so when our economy has
opened up and many Fortune 500 companies are having/evincing a presence in Indian
sub-continent. Hence, demand for technically qualified personnel is on constant rise.
The students of West U.P. and Delhi used to go other place for studying Engineering,
BDS and other professional courses. To bridge the demand and supply gap and to
provide quality education to the students of U.P., the State Government has allowed
higher technical education to the private sector by way of permitting opening of private
Dental, Engineering, Management & Business Administration colleges. As per the
Essentiality Certificate dated 21.11.2003 for Dental College issued by Govt. of U P there
is 1 dental surgeon on 72248 population in the State and with the expansion of the
dental college surgeon population ratio would improve. Demand of qualified engineers
also is regularly on increase, particularly in I.T.Sector and many leading IT companies
like Infosys, Microsoft, Wipro, Satyam and TCS are feeling acute shortage of trained IT
personnels.
With the availability of these courses in West U.P. itself the students have natural shift
towards these local colleges. The Engineering and Dental institutes are located at
Ghaziabad, and due to its proximity to Delhi, it is fast becoming a major institutional area
in the field of higher education and students from Delhi are attracted to Ghaziabad to
pursue higher studies.
Recent Developments
The UNESCO Education for All Global Monitoring Report2007 has ranked India at the 99th position
with a composite Education for All Development Index (EDI) of 0.789. Referring to a Nationwide Sample
Survey on out of school children by the Social and Rural Research Institute in 2005, the report notes
that that the number of out of school children has halved from 25 million in 2002 to 13.5 million in 2005.
The nation-wide sample survey was commissioned by the GoI under the Sarva Siksha Abhiyan (SSA)
Programme.
In India, since private universities do not generally receive financial assistance from public outlays, the
fees charged by them are reportedly higher than the fees charged by publicly funded universities. The
University Grants Commission (UGC), is empowered under the UGC Act, 1956 to make regulations,
with the prior approval of the Central Government, for Admissions and Fee Structure in Universities and
Colleges. In August 2007, the UGC has constituted an Expert Committee to formulate:
Regulations with regard to admission and fee for self-financing, private professional institutions,
including deemed to be universities.
Regulations for admission and fee for self-financing courses in aided Universities/Colleges.
Regulations for admission and fee for aided courses in aided Universities and Colleges.
- 30 -
- 31 -
Score
5.33
4.38
3.89
Weight
1
1
1
3.0
Score x Weight
5.33
4.38
3.89
13.59
Score
4.53
Definition of Scores
Score
Meaning
6.01-7
Highly Favourable
4.51-6
Favourable
4.01-4.5
Marginally Favourable
3.01-4
Neutral
2.51-3
Marginally Unfavourable
1.01-2.5
Unfavourable
0-1
Highly Unfavourable
This report has been prepared by ICRA for the exclusive and private use of Punjab National Bank (PNB).
The report provides content and analytical inputs for the risk-scoring model being used by PNB, with the risk
scoring scale and the respective definitions being those of PNB. All information contained herein has been
- 31 -
- 32 -
obtained by ICRA from sources believed by it to be accurate and reasonable. Although reasonable care has
been taken to ensure that the information herein is true, such information is provided as is without any
warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to
the accuracy, timeliness or completeness of any such information. All information contained herein must be
construed solely as statements of opinion and ICRA shall not be liable for any losses incurred by users from
any use of this report or its contents. In the course of work, ICRA may have received information from
companies being rated or graded. However, this report does not contain any confidential information
obtained by ICRA in the process of rating or grading. This report contains data/information available only in
the public domain or available through secondary sources. Opinions expressed in this report are not an
indication of any prospective rating/grading of any instruments to be issued by any entity operating in the
industries for which the risk scores have been assigned.
Comments on management, production and marketing
The promoters of the society, Shri Rakesh Garg, Shri Atul Garg, Shri Sarish Agarwal and
Shri Sunil P.Gupta are having rich experience of running the educational institutions and
are already running/ associated with the
reputed colleges in Ghaziabad:- Krishna
Institute of Engineering Technology, Murad Nagar, Ghaziabad.- Ajay Kumar Garg
Engineering College, Ghaziabad.- Indraprastha Engineering College, Sahibabad.
Shri Rakesh Garg, an entrerpreneur and educationist and philanthropist with growing
taste and dream of making the society educated at large has a lot of experience. He is
the Chairman of Krishna Engineering College, Ghaziabad, Krishna Dental College and
Secretary of Ajay Kumar Garg Engineering College, Ghaziabad.
Shri Sarish Chaudhary, an Industrialist, and an Educationist with deep rooted interest in
higher and technical education reforms in the country having vast experience as an
educationist. He is the Vice-Chairman of Krishna Institute of Engineering & Technology,
Ghaziabad, Krishna Dental College Ghaziabad, Krishna Engineering College,
Ghaziabad.
Shri Atul Garg, an industrialist and an educationist with long qualitative experience in the
education field. He is the Treasurer of Krishna Institute of Engineering & Technology,
Ghaziabad, Vice-Chairman of Krishna Dental College, Ghaziabad, Krishna Engineering
College, Ghaziabad and Secretary of Indraprastha Engineering College, Ghaziabad.
Shri Sunil P Gupta is a Chartered Accountant by qualification and an educationist with
long qualitative experience in the education field. He is the General Secretary of Krishna
Institute of Engineering & Technology and Joint Secretary of Krishna Engineering
College & Krishna Dental College, Ghaziabad.
Borrowers' diversification, expansion, modernisation programme.
The present proposal is for construction of academic block, etc. for Engineering & Dental
Courses. The society has started one new branch in engineering i.e. Information
Technology with intake of 60 students and M.C.A. with intake of 60 students and their
intake in Electronics & Communication has been increased from 60 to 120 seats by
AICTE vide their letter dated 6/6/2006. Further, their intake in Computer Science &
Engineering has been increased from 60 to 120 seats by AICTE vide their letter dated
21.08.2007. Also, the Management proposes to start PGDBM course also w.e.f. next
session i.e. from 2008-09.
- 32 -
- 33 -
Appendix - VI
Brief explanation for each major individual item of cost of Project with present
status along with comments on the reasonableness/competitiveness
CIVIL WORK
The Society will construct 41200 sq ft. area for Civil Construction of Dental College &
Extension of academic block and 123200 sq ft. area for Civil Construction of Engineering
College & Extension of academic block as well as PGDBM Block in Engineering College.
Rs. in lacs
Academic Blocks at KEC Basement and GF
4459.30 Sq.Mts.
360.07
Hostel Blocks KEC GF,FF,SF,TF
4756.60 Sq. Mts.
384.09
PGDM Block KEC GF, FF, SF
1672.23 SQ.Mts.
180.09
Hostel Block KDC GF,FF,SF
1505.01 Sq.Mts.
121.50
Academic Block KDC -- SF
2322.56 Sq.Mts.
187.50
Total
14715.70 Sq.Mts.
1233.25
Detailed estimates ( 5 Nos.) of M/s Atul & Associates dt. 06.02.2008 for different blocks
to be constructed having detailed description of items is annexed. Total cost of
construction has been estimated at Rs.1233.00 lacs with an average of Rs.838 per
sq.mt. In view of increase in cost of cement , steel and other items as well as quality of
construction, same may be treated as satisfactory. The rates are competitive.
Lab Equipments & Computers
The society has estimated the requirement of lab equipments of Rs.190.00 lacs , out of
which Rs.40.00 lacs will be invested for Krishna Engineering College and 150.00 lacs for
Krishna Dental college. Krishna Engineering College will start PGDBM course from the
next session for which 120 computers are required costing to Rs. 30.00 lacs.
Krishana Engg. College
Electrical labs
Mechanical labs
Krishana Dental College
Dental Chairs
OPG Machines & Other Eqp
Total
25.00 lacs
15.00 lacs
100.00 lacs
50.00 lacs
190.00 lacs
- 33 -
- 34 -
Appendix VI(A)
- 34 -
- 35 -
Appendix VII
Summary of profitability, Break-Even, DSCR and IRR with comments thereon
including Assumptions underlying profitability projections:
Krishna Engineering College and Krishna Dental College have earned good
name in a very short span of time. Krishna Engineering College ranks amongst
first 10 of private Engineering colleges of UP.T.U.LKO.
Summary of profitability
(Rs. in lacs)
31.03.2008
PAT IC U LAR S
31.03.2009
31.03.2010
31.03.2011
KEC
KDC
TOTAL
KEC
KDC
TOTAL
KEC
KDC
TOTAL
KEC
KDC
TOTAL
690.58
530.50
1221.08
1001.00
736.00
1737.00
1427.00
766.00
2193.00
1725.00
820.00
2545.00
165.56
48.00
213.56
221.00
112.50
333.50
272.00
112.50
384.50
306.00
125.00
431.00
(I) I N C O M E
(c) Interest
5.00
1.00
6.00
5.00
1.00
6.00
5.00
1.00
6.00
5.00
1.00
6.00
12.50
22.00
34.50
15.63
27.50
43.13
19.53
41.25
60.78
21.48
45.38
66.86
873.64
601.50
1475.14
1242.63
877.00
2119.63
1723.53
920.75
2644.28
2057.48
991.38
3048.86
290.92
309.84
600.76
388.65
365.82
754.47
513.31
402.41
915.72
671.64
442.65
1114.29
123.45
126.03
249.48
154.31
138.64
292.94
231.46
152.50
383.96
347.19
167.75
514.94
55.18
8.97
64.15
1.50
1.50
3.00
1.65
1.65
3.30
1.82
1.82
3.63
0.00
4.05
4.05
0.00
4.05
4.05
0.00
4.05
4.05
0.00
4.05
4.05
121.97
110.23
232.19
148.75
107.74
256.49
111.99
76.16
188.15
73.20
45.59
118.79
(II) E X P E N D I T U R E
d) Commission on BG
(e) Interest on Term Loan
f) Interest on OD limit
1.50
1.50
3.00
6.00
6.00
12.00
6.00
6.00
12.00
6.00
6.00
12.00
18.00
36.00
54.00
18.00
36.00
54.00
18.00
36.00
54.00
18.00
36.00
54.00
(h) Depreciation
179.45
147.00
326.45
205.26
161.98
367.24
194.84
159.06
353.90
217.50
156.32
373.82
790.46
743.62
1534.08
922.47
821.73
1744.20
1077.26
837.83
1915.08
1335.35
860.17
2195.51
83.18
142.12
-58.94
320.16
55.27
375.43
646.27
82.92
729.20
722.14
131.21
853.34
262.62
4.88
267.51
525.42
217.25
742.67
841.11
241.99
1083.10
939.64
287.52
1227.16
0.00
0.00
562.00
290.60
272.60
563.20
335.00
265.00
600.00
315.31
245.31
560.62
Repayment Obligations
Debt Service Coverage
Ratio
0.63
1.22
- 35 -
1.61
1.98
- 36 -
31.03.2013
KEC
KDC
TOTAL
KEC
KDC
TOTAL
1866.00
340.00
5.00
23.63
2234.63
820.00
125.00
1.00
49.91
995.91
2686.00
465.00
6.00
73.55
3230.55
1974.00
374.00
5.00
26.00
2379.00
820.00
125.00
1.00
54.90
1000.90
2794.00
499.00
6.00
80.90
3379.90
839.55 486.91
520.79 184.53
2.00
2.00
0.00
4.05
39.09
21.46
1326.46
705.31
3.99
4.05
60.55
1049.44
650.98
2.20
0.00
11.75
535.60
202.98
2.20
4.05
5.88
1585.04
853.96
4.39
4.05
17.63
6.00
18.00
223.09
6.00
36.00
147.67
12.00
54.00
370.77
6.00
18.00
235.49
6.00
36.00
136.53
12.00
54.00
372.03
1648.52
888.62
2537.14
1973.86
929.23
2903.10
586.12
107.29
693.41
405.13
71.67
476.80
809.21
254.96
1064.18
640.63
208.20
848.83
265.33
165.33
430.66
2.29
200.00
100.00
300.00
2.73
(I) I N C O M E
(a) Academic Fees
(b) Hostel Fees
(c) Interest
(d) Miscellaneous Receipts
(II) E X P E N D I T U R E
(a) Salaries & Other Benefits
(b) Administrative Expenses
(c) Hostel Expenses
d) Commission on BG
(e) Interest on Term Loan
f) Interest on OD
limit
g) Intt on Unsecured loans
(h) Depreciation
1. The fee projections have been submitted and accepted are as given
below. The fee structure is reasonable, comparable and as per prevailing
market trend.
2. The hostel fees has been accepted @ Rs.34000/- per student for
Krishana Engg. College with app. 40% student occupancy and @
Rs.50000/- per student for Krishana Dental College with app. 60%
student occupancy. These fees are realistic and competitive.
3. Interest has been accepted on the FDRs submitted with AICTE , DCI and
other Govt. departments.
- 36 -
- 37 -
199
Total
6.00
28.80
3.36
28.80
80.64
179.58
3.00
1.44
6.00
3.00
3.00
2.40
4.80
2.16
13.68
1.80
1.08
8.64
8.64
1.08
0.75
370250 388.65
Total
7.92
1.00
72.60
95.04
57.60
79.38
3.42
1.584
2.64
3.36
1.02
2.64
2.64
0.798
15.30
2.04
1.20
5.04
5.88
1.54
0.78
2.394
365.82
Thereafter an increase of 10% in 2010, 15% in 2011, 10% in 2012 and 15% in
2013 has been estimated. The same is reasonable as per market trend.
2. The administrative expenses has been estimated from 15% to 25% of the
total receipts. These expenses mainly comprises of electricity,
advertisement, repairs, conveyance, consumable stores etc.
3. The hostel expenses are related to mess charges of Hostels.
4. The commission on BG has been estimated looking into the estimated
availment and bank rates.
5. Interest on TL has been calculated @ 11.75% ,OD @ 12% and 12% on
unsecured loans.
6. Depreciation has been calculated on WDV basis.
- 37 -
- 38 -
The assumptions taken by the party is reasonable and realistic. Besides, the
financial projections given by the party have been assessed and found
reasonable and acceptable. We agree with the projections given by the party.
KRISHNA ENGINEERING COLLEGE
PARTICULARS
RATE
2008-09
FEE PROJECTIONS
2009-10
2010-11
2011-12
2012-13
Student
Amount
Student
Amount
Student
Amount
Student
Amount
Student
Amount
60000
420
252
420
252
540
324
600
360
600
360
60000
420
252
420
252
420
252
540
324
600
360
50000
360
180
420
252
420
252
420
252
540
324
360
180
420
252
420
252
420
252
B.TECH
Ist year
Admission Fees
IInd year
Annual Fees
IIIrd year
Annual Fees
60000
IVth year
Annual Fees
50000
233
117
60000
TOTAL -A
1433
801
1620
936
1800
1080
1980
1188
2160
1296
55000
60
33
120
66
120
66
120
66
120
66
55000
59
32
60
33
120
66
120
66
120
66
55000
28
15
59
32
60
33
120
66
120
66
147
80
239
131
300
165
360
198
360
198
60
120
120
240
120
240
120
240
120
240
M.C.A
Ist year
Admission Fees
IInd year
Annual Fees
IIIrd year
Annual Fees
TOTAL -B
PGDBM
Ist year
Admission Fees
200000
- 38 -
- 39 -
IInd year
Annual Fees
200000
TOTAL -C
G. TOTAL A+B+C
60
120
120
240
120
240
120
240
60
120
180
360
240
480
240
480
240
480
1640
1001
2039
1427
2340
1725
2580
1866
2760
1974
RATE
FEE PROJECTIONS
2008-09
2009-10
2010-11
2011-12
2012-13
Student
Amount
Student
Amount
Student
Amount
Student
Amount
Student
Amount
205000
100
205
100
205
100
205
100
205
100
205
205000
100
205
100
205
100
205
100
205
100
205
175000
86
151
100
205
100
205
100
205
100
205
86
151
100
205
100
205
100
205
400
820
400
820
400
820
BDS
Ist year
Admission Fees
IInd year
Annual Fees
IIIrd year
Annual Fees
205000
IVth year
Annual Fees
175000
100
175
205000
TOTAL
386
736
386
766
DSCR
(Rs. In crores)
31.03.07
31.03.08
31.03.09
31.03.10
31.03.11
31.03.12
31.03.13
-1.13
-0.59
3.75
7.29
8.53
6.93
4.77
Depreciation
2.12
3.26
3.67
3.54
3.74
3.70
3.72
1.17
2.32
2.56
1.88
1.18
0.60
0.17
TOTAL (A)
2.16
4.99
9.98
12.71
13.45
11.23
8.66
Repayments Obligations TL
2.52
5.62
5.63
6.00
5.60
4.30
3.00
1.17
2.32
2.56
1.88
1.18
0.60
0.17
TOTAL (B)
3.69
7.94
8.19
7.88
6.78
4.90
3.17
0.63
1.22
1.61
1.98
2.29
2.73
DSCR (A)/(B)
- 39 -
- 40 -
Average DSCR
61.02/38.86 = 1.57
Average DSCR on the basis of projections from the FY 2008 to 2013 comes to
1.57 with minimum 0.63 and maximum 2.73, which may be treated as
satisfactory for such type of infrastructure projects. The party is developing its
colleges and in initial stage of project and expenses are increasing due to
increase in capacity as well as facilities like Hostel Block etc. As such, the DSCR
is on lower level in starting years but it is improving gradually and reasonably.
The party is meeting its all payment liabilities either from internal accruals or
raising funds. In view of these facts, we may accept the average DSCR 1.57
looking into the past performance.
BEP :
KRISHNA ENGINEERING
COLLEGE (Rs. in lacs)
Break-even analysis
Year
Total no. of students
Total Cost
Fixed cost
Administrative expenses
(25% fixed)
Interest to bank (100% fixed)
Depreciation (100% Fixed)
Total
Variable Cost(Cost other than
fixed)
Variable Cost per student (in
Rs.) (A)
Total Receipts
Receipts per student (B)
Contribution per student (BA)
B. E. P. (in terms of student)
(utilised capacity)
B. E. P. (in terms of student)
2009
1640
922.47
2010
2039
1077.26
2011
2340
1335.35
2012
2580
1648.52
2013
2760
1973.86
140.62
154.75
205.26
500.63
191.11
117.99
194.84
503.94
259.66
79.20
217.50
556.36
345.09
45.09
223.09
613.27
430.16
17.75
235.49
683.40
421.85
573.32
778.99
1035.26
1290.47
0.26
1242.63
0.76
0.28
1723.53
0.85
0.33
2057.48
0.88
0.40
2234.63
0.87
0.47
2379.00
0.86
0.50
0.56
0.55
0.46
0.39
1000
42
893
37
1018
42
1319
55
1733
72
- 40 -
(installed capacity)
B. E. P. (in terms of Sales)
- 41 -
757.92
755.13
895.36
1142.61
1493.56
2009
386
821.73
2010
386
837.83
2011
400
860.17
2012
400
888.62
2013
400
929.23
136.50
113.74
161.98
412.22
149.15
82.16
159.06
390.37
163.07
51.59
156.32
370.98
178.37
27.46
147.67
353.50
195.21
11.88
136.53
343.62
409.51
447.46
489.20
535.12
585.62
1.06
877.00
2.27
1.16
920.75
2.39
1.22
991.38
2.48
1.34
995.91
2.49
1.46
1000.90
2.50
1.21
1.23
1.26
1.15
1.04
340
318
295
307
331
14
773.32
13
759.44
12
732.35
13
764.02
14
828.16
The party is estimated higher receipts against the BEP level . We may accept the same
as it is on the basis of realistic projections. The units are performing well.
DEBT EQUITY RATIO
The debt equity ratio of the society is 4.08 as at 31.03.2007. The same will be improved
to 2.22 as at 31.03.2008 and 1.61 as at 31.03.2009 by raising corpus fund.
- 41 -
- 42 -
Repayment
Insurance
Repayment
Default
Prepayment
Penalty
Escalations
CONDITIONS
- 42 -
- 43 -
FACILITY NO.2
Nature
Overdraft against tangible Security Renewal cum enhancement
Limit
Rs.1.00 crores (Rs One Crore only)
Enhancement from Rs.0.50 crores.
Interest
@ 11.25% [BPLR +2.00% 3.25% (relaxation)] (linked with
BPLR) with monthly rests. Interest in the A/c as and when levied
will be serviced immediately by the Society.
Processing
As per Bank Guidelines or as approved in the sanction
Fee
Security
1.Extension of EM of societys land & building valuing Rs.2466.84
lacs as per ABS as at 31.03.2007, situated at plot no. 27(1) & 28
Site 2, Industrial Area, Loni Road, Ghaziabad measuring
66910.57 Sq. Mtrs., market value Rs.9118.72 lacs and realizable
value Rs.7537.75 lacs as per detailed valuation report of M/S Atul
& Associates report dated 06.02.2008 plus cost of proposed
construction of Rs.12.33 crores. Thus total value will be Rs.87.70
crores.
2.Hypothecation of other fixed assets like equipments, furniture &
fixtures, other assets valuing Rs.479.62.00 lacs as per ABS dt. 31-
- 43 -
- 44 -
Sh.Atul Garg
Sh.Rakesh Garg*
Sh.Sarish Kr.
Chaudhary*
Sh.Sunil P Gupta*
Total
66.13
19.00
142.40
643.57
343.50
473.90
87.50
26.49
142.00
103.50
70.00
578.50
20.11.2006
20.11.2006
20.11.2006
12.02.08
20.11.07
20.11.07
14.45
241.98
297.50
1758.47
14.00
269.99
200.00
952.00
20.11.2006
20.11.07
- 44 -
- 45 -
6. The Bank or its authorized officials or other representatives will have the right to
carry out periodical inspection or examine the books of accounts of the borrower
and to have their premises/offices/assets inspected from time to time by officers
of Bank and /or by outside agencies and the expenses incurred by the Bank in
this regard will be borne by the society.
7. The Bank shall have the right to withdraw or modify all/any of the conditions of
sanction or stipulate fresh conditions, under intimation to the society. Society
shall undertake to give its acceptance to these stipulations.
8. In case the society commits default in the repayment of loan/advance or in the
payment of interest thereon or any of the agreed installment of the loan on due
date, the bank, CIBIL and /or Reserve Bank of India will have an unqualified right
to disclose or publish the names of the society and its office bearers as
defaulters in such manner and through such medium as the bank/RBI in their
absolute discretion may think fit.
9. The unsecured loans raised from friends/relatives will not be allowed to be repaid
during currency of Banks loans. An undertaking to this effect to be obtained from
the society and kept on banks record.
10. During the currency of banks credit facilities, the borrower shall not, without the
prior approval of the Bank in writing:
a. permit any transfer of the controlling interest or make any drastic
change in the management set up;
b. divert/utilize Bank's funds to other sister/associate/group concerns or
for purposes other than those for which the credit facilities have been
sanctioned;
c. Effect any change in their capital structure, which may effect banks
interest adversely.
d. Formulate any scheme of amalgamation or reconstruction.
e. Undertake any new project or expansion or modernization scheme or
make any capital expenditure other than estimated/ projected , without
obtaining banks approval.
f. Undertake guarantee obligations on behalf of any other borrower/
organization.
g. Sell, assign, mortgage, alienate or otherwise dispose off any of the assets
of the borrower charged to the bank
h. Enterer into any contractual obligation of a long-term nature effecting the
borrower financially to a significant extent.
i. Undertake any activity other than those indicated in the objective
clause/bye laws of the society.
11. Margins/rates of Interest are subject to revision from time to time at the sole
discretion of the Bank.
12. The Bank shall charge penal interest for non compliance of terms and conditions
or due to irregularity as per LA Circular No 61/06 dated 08.06.2006.
13. The borrower shall execute all necessary legally enforceable loan documents, as
per banks guidelines. Documents will be drafted/vetted by banks counsel at
borrowers cost.
14. Branch to submit legal compliance certificate as per LA Circular No.87 dated
20.09.02.
15. Borrower shall give acceptance of terms and conditions as per letter of sanction
which will form part of documents and be placed on banks record.
- 45 -
- 46 -
16. All other HO/RBI guidelines applicable to such type of advances to be strictly
adhered to.
Sr. Manager
Chief Manager
- 46 -
Asstt.General Manager