S FORMAT : Section A

EXECU T IVE SUMMARY Zone / Region:Tirupathi BRANCH: Chirala

COMPANY: M/s. BALAJEE EDUCATIONAL SOCIETY MARUPALLI BALAJEE POLYTECHNIC

Section Contents Pages

1

Borrower profilea. Name , Address, Manufacturing activity/Locations, Date of

incorporation, Banking arrangement etc ofb. Brief Background(Company/ Group/ Promoters/ Management

including shareholding pattern )c. Brief write up on Industry/Sector and Company’s standingd. RMD Advisory/qualitative approach/Quantitative approach /

Commentse. Indebtedness/Exposure & capital charge

2

Present Proposala. Proposal : For sanction/approval/confirmation b. Credit limits (existing and proposed)c. Sharing pattern

3

Performance Detailsa. Performance and Financial indicators b. Industry exposure as on c. Movement in TNWd. Synopsis of balance sheet

4

Risk assessment :a. Credit Ratingb. Risk and mitigating factorsc. Warning signals/Major irregularities in Inspection Audit/Credit

Audit/Other Reports d. Securitye. Changes in Security if any, justification

5Pricing

a. Conduct of account b. Income analysisc. Other Bank’s/FIs pricing d. Proposed pricing

6

Loan Policy : Deviations & Compliance:a. Whether names of promoters, directors, company, group concern

figure in defaulters/willful defaulters listb. Deviation in Loan policyc. Deviation in Take over norms and commentsd. Directors of Borrowers company: status of relation with

Board/ Sr Official of the bank etc

7

a. Future plans & Business Potential including cross selling/retail marketing

b. Environmental and sustainability implications c. Earlier terms of Sanction: Compliance statusd. Statutory dues /Contingent Liabilities

8 a. Justification for the Proposal & b. Recommendations :

Page 1 of 40

SECTION 1(Rs. in crs)

Zone / Region : Tirupathi Branch : ChiralaBorrower’s Profilea..Name , Address, Manufacturing activity/Locations, Date of incorporation, Banking arrangement etc ofCompany: M/s.BALAJEE EDUCATIONAL SOCIETY MARUPALLIAddress: D.No:19-45’ 5th ward, Ramakrishnapuram,Chirala,

Prakasam Dist.Regd Office: D.No.19-45, Ramakrishnapuram,Chirala, Prakasam Dist.Mfg facility( Locations): -do-Segment:MSME(T&S) Constitution: SOCIETY IRAC Status: NA, New A/c

Advances : Investments :

Industry: Not applicable Activity : Polytechinc College,

Date of incorporation: 12-08-2008 Banking with us since: 07.01.2010

Existing Connection : NoIf yes, date of last renewal: Sanctioned on

New unit : Yes If Take over, whether all normscomplied with : No

b) Brief Background (Company/ Group/ Promoters/ Management including shareholding pattern ) :

Balajee Educational Society Marupalli,Chirala registered under society Act on 12.10.2010 register no:

295/2010, Now the society is Amalgamated by Balajee Educational Society Marupalli, Gajapathi

nagaram established in the year 2008 as a charitable Society Registered under the A.P Society Regn.Act-

35 of 2001 , by a group of educationalists with inner urge to impart meaningful and quality education to

youth. The society has started a ITI college at Marupalli , Gajapathi nagaram in the year 2008, and has

completed admission of 2 batches in the college with an intake capacity of 160 students per year.The

society got permission for a Polytechnic college at Marupalli , Gajapathinagaram, now started

construction for the year 2010-11, with an intake capacity of 300 students in the first year that is 2011-

2012 Academic year , and to reach 960 students per year by the end of 3rd year i.e 2014.

Page 2 of 40

The society has received a letter of intent from AICTE for establishing a new Polytechnic College, vide letter No. F.No./AICTE/SCRO/Hyd/Diploma/LOI/2009-10dated 14.05.2010 which is valid for 3 years.

Only on fulfillment of all the stipulations laid down by the AICTE, an Expert Committee will inspect/examine the facilities and submit a feasibility report to AICTE. Based on the recommendations of the Expert Committee, a separate grant of approval will be issued by the AICTE. After receipt of approval from AICTE, the society can be permitted to admit the students for the Polytechnic course.

The Members of the Balajee Educational Society are qualified service and technical oriented people they

are financially sound and able to spend huge amounts for development of the institution as they are all

interested to run the educational institutions.

Academic Directors:

Dr.K. Siva Prasada Rao and K. Sivanarayana Rao are well reputed persons in the field of education.

They are currently running Engineering, MCA, MBA and Pharmacy under the RAHUL GROUP OF

INSTITUTIONS ( SAANKHYA EDUCATIONAL SOCIETY ) in Andhrapradesh, Orissa and

Bangalore. These people are acting as academic directors of Balajee polytechnic college.

Mr Vasa Srinivasa Rao is presently working as Senior Manager with ANZ. For last 7+ years, he has

managed varied banking applications teams. Earlier he worked as Principal Consultant in

PricewaterhouseCoopers. He has 22 years experience in the business functions of Human

Resource Management, Inventory Management, Project Management, Project Implementation and

Information Technology in the transportation and software industries.

His wide background spans across many industry processes. He has wealth of Human Resource and

Program Management experience with computer expertise and excellent communication and people

skills.

Following members of the society are the executive body.

Sl. No. Name Designation Occupation1 Mr. Reddi Narayana Rao Chairman Educationist2 Ms.Yasarla Pavani Vice-Chairman Doctor3 Mr. Reddi Chandra Sekhar Secretary &

CorrespondentEducationist

4 Mr. Reddi Madhava Naidu Treasurer Educationist5 Ms. Yasarla Lakshmi Executive Member Educationist6 Ms. Pydithalli Executive Member Social Worker7 Mr Vemala Rama Rao Executive Member Entrepreneur

Apart from the above administrative committee the society has also got the following committees.

Page 3 of 40

1. Selection Committee: The committee will identify the requirement of faculty in all the

colleges, continuously identify qualified and experienced faculty working in other colleges

and willing to work with the society. The committee will also monitor the performance of the

faculty, and their incremental policy.

2. Infrastructure Committee: The committee will take care of the procurement of library

books, subscription of various journals, procurement of lab equipment and other

infrastructure requirements to the faculty and students.

3. Relationship committee: The committee will maintain relationship with the parents, to

understand the requirements of the students, and to maintain discipline in the college. The

college believes, that the homely atmosphere can be provided, by interacting with parents

and students, so that it gives comfort to the student to enhance their hidden talents.

c) Brief write-up on industry/sector and company’s standing (domestic / international)

in the industry including market share, future growth strategies, comments on recent

news reports, etc. ( To mention / dovetail Pre-marketing Committee Presentation, if

applicable)

INDUSTRY SCENARO

Vizianagaram District is industrially well developing and offers very good employment

opportunities for technically qualified persons. There is several thermal power, agro based industries

such as Rice Mills, Sugar Mills, sponge iron, Ferro alloys plants and several other major industries

like Engineering Industries are situated in the district. Vizianagaram is endowed with valuable

deposits like Mica Asbestos, Limestone, Bauxite, Copper, Lead and Manganese. The biggest bauxite

reserves of the country and the second biggest in the world estimated at 500 million tones exist in

Vizianagaram and Visakhapatnam.

There is a big gap between the present manpower requirements of the industry and the availability of

skilled/technical personnel. Considering the present age profile of the existing manpower, future

manpower requirements also have to be addressed.

Industrial Scenario of the State

The economy of Andhra Pradesh, predominantly agricultural in nature, witnessed a pleasant shift on

the industrial front during 1970s when there was a spurt in the number of large, medium and small

scale industries several sophisticated lines. Although, this industrial development has to face certain

Page 4 of 40

ups and downs due to natural calamities and occasional spells of power shortages, the rate of growth

was steady.

The state has a reasonably developed infrastructure with a wide network of roads, railway lines and

airways. Through the agency of State Industrial Infrastructure Corporation, The State has provided a

network of Industrial Estate (IEs) and Industrial Development Areas for locating industries at

specific growth points. So far 217 IEs, have been developed providing 15000 plots and 3400 sheds

and 4500 industrial houses to the prospective entrepreneurs. During the 8th plan period, it is proposed

to develop 12500 acres of land, construct 2000 work sheds and 5000 houses for industrial workers at

an estimated cost of Rs.266 crores at 104 places including expansions.

With a wide network of 5 rivers flowing across the length and breadth of the State, supplemented by

number of rivulets, canals, tanks and good ground water resources, there are adequate facilities of

water to meet the needs of industry.

Some of the manufacturing lines from the industrial sector have recorded very good performance,

thus contributing to the industrial production of the State, while a few require to be further toned-up,

both from the point of promoting additional units as also improving the productivity of the existing

units. A few important manufacturing lines have been discussed here.

Scope of College vis-à-vis the Industrial Scenario and Educational Facilities already available in the State:

As against the total facilities (128 Colleges with 21670 seats) available in the State as a whole, the

Vizianagarm District has got 1 Government Colleges and 3 Private College with a total number of

665 seats in all. Considering the total population 28.72 lakhs of the district, there is a need of more

technical education colleges to impart Diploma in E&T to provide technical education facilities in

the district.

Introduction (LINKAGES IN TECHNICAL EDUCATION)

Any Technical institution needs to maintain linkages with various agencies to achieve its objectives.

The objectives include a) imparting quality education which ultimately helps the students in the

career development, b) guiding the students in their career opportunities.

Page 5 of 40

Justification for starting the proposed institution in view of (a) above

In each Academic year around 150000 students are acquiring 10th class qualification in

Vizianagaram & Visakhapatnam Districts and this qualification is the required minimum

qualification to join diploma in Engineering and Technology. Whereas there are eight colleges (4+4)

imparting diploma education to 1000 students only. Thus the existing Institute is catering to very

negligible percentage (0.66%) of the total students. With the increase in industrial activities in

Vizianagaram & Vizag by Industrial Leaders such as Hinduja, NCC, Power Plants and AP Paper

Mills, Nagarjuna Fertilizers, development of port at Gangavaram and Rambilli supported by rapid

growth in Infrastructure Facilities there is a demand for Diploma Holders in Engineering. The

promoters experience reveals that the industrial Units are interested in recruiting Diploma Holders

instead of Engineering Graduates. Thus there is a wide gap between demand and supply of diploma

holders. The promoters are having their own means of earning and assessed to Income Tax. Hence,

they are interested to contribute the society by providing Educational qualification in Engineering

Technology. On account of the proposed institute, there is every scope to increase the strength of

well trained and skilled 300 Diploma Holders every year beginning from 2014. had this project been

successfully implemented, a 10th qualified boy will admit into the diploma and comes out by the end

of third year as a Diploma Holder at the age of 18 years. In view of the demand for the Diploma

Holder in Engineering, all will get a gainful employment in and around their native place. Due to

this, the industry will benefit in account of the availability of Diploma Holder at local which will

help in reducing the cost of production. This will help the units to sell its products at competitive

rates.

Rapid growth in Infrastructure Facilities there is a demand for Diploma Holders in Engineering. The

promoters experience reveals that the industrial Units are interested in recruiting Diploma Holders

instead of Engineering Graduates. Thus there is a wide gap between demand and supply of diploma

holders. The promoters are having their own means of earning and assessed to Income Tax. Hence,

they are interested to contribute the society by providing Educational qualification in Engineering

Technology. On account of the proposed institute, there is every scope to increase the strength of

well trained and skilled 300 Diploma Holders every year beginning from 2013. had this project been

successfully implemented, a 10th qualified boy will admit into the diploma and comes out by the end

of third year as a Diploma Holder at the age of 18 years. In view of the demand for the Diploma

Holder in Engineering, all will get a gainful employment in and around their native place. Due to

this, the industry will benefit in account of the availability of Diploma Holder at local which will

Page 6 of 40

help in reducing the cost of production. This will help the units to sell its products at competitive

rates.

S W O T Analysis:Strength: Remote area, good potentiality of students, technically and economically backward area,

no polytechnic college Gajapathinagaram Mandal, Experienced promoters, Potential Industrial area,

plenty of job opportunities etc.,

Weakness: No management Quota of seats.

Opportunities: -Near by and surrounding 60+ scholls students. -Vizianagaram, Vizag and surrounding places are mine and industrial areas. -Employment opportunities in Vizag port. -Existing Industrial Growth Centre for young entrepreneurs.

Threats: - NO-

Market Share:

d) There is no Diploma in Engg. College from 15 kms radious of the proposed institution the

number of 10th class students produced with mathematics background form the surrounding high

schools are more than 5000, who are prepared for CEEP-2010 entrance Examination and the

Students are inclined to join Diploma courses. Hence, there is need and demand for establishment

of Diploma courses in this area.

i) RMD Advisory dated: ii) Qualitative approach : iii) Quantitative approach:iv) Comments:

e) Indebtedness / Exposure & Capital Charge: (Rs. In lacs )

Indebtedness

Company Group Proposed exposure

Existing Proposed Existing ProposedCredit

conversion factor

Risk weight

Fund based -- 290 -- 290Non fund basedTOTAL (Indebtedness) -- 290 -- 290Investment - - - -Leasing - - - -TOTAL (Exposure) --- 290 -- 290Capital charge for Total exposure :

Page 7 of 40

PRESENT PROPOSAL SECTION 2

a. Proposal: For sanction:i. Term Loan limit of Rs.290.00 lacs in stages of 1st Year Rs.140.00 lacs 2nd Year Rs.75.00

lacs, and 3rd Year Rs.75.00 lacs. for construction of Polytechnic college.

This proposal falls within the powers of ………………..as(i) FB/NFB/Total indebtedness is Rs. (Corporate / Non Corporate)(ii) Involves policy level deviations:(iii) is a director in Bank.

b. Credit Limits (Existing and Proposed) : (Rs. in crs)

Existing Proposed Change

Limits SBH %Total Cons/MBA.

SBH %Total Cons/MBA.

SBHTotal Cons /

MBA.

FBWC

TotalFBWCTLs - - - 290.00 100 290.00 - -Total FB - - - 290.00 100 290.00 - -LC - - - - - - - -BG - - - - - - - -Total NFB - - - - - - - -Total FB+NFB

- - 290.00 100 290.00 - -

c. SHARING PATTERNFinancial Arrangement: Sole Banking

FB NFB TotalSBH 290.00 - 290.00SBI & Other Ass.Bks.State Bank GroupOther Banks

Total 290.00 - 290.00

Page 8 of 40

Performance Details SECTION 3

a. PERFORMANCE AND FINANCIAL INDICATORS: (Rs. In lacs)

Last two years actualsCurrent

YearNext year

Q/HY results as on-Not applicable

Audited-(Estimate)@

Aud (Estimate)@

Esti -2010-11

Proj2011-

12

Prev.Year

CurrentYear

Installed cap Qty.

Construction FIRST YEAR

Net Sales Qty. -Net Sales (Value)

- --- - 46.50 Sales

(Exports) (Exports)Operating profit - --- - 3.16PBT --- - 32.97PBT / Net Sales -- - 0.71PAT --- - 3.16 PATCash Accruals --- - --PBDIT --- - b. Industry Exposure asPUC FBLTNW -- - -- NFBLAdj. TNW --- - -- TotalTOL/TNW --- - 0.46TOL / Adj.TNW --- - -- Exposure of the

company as per prudential exposure norms

%

Total CA -- - -- To Industryexposure

Current Ratio - - - To total advances(domestic)

NWC - - -@ At the time of earlier renewals

Comments only on adverse movements in the above : (Not to exceed 5-6 lines) No adverse movements.

c) Movement in TNW (Past three years)2009 2010

Opening TNW - -Add PAT - -Add. Increase in equity / premium - -Add./Subtract change in intangible assets - -Adjust prior year expenses -Deduct Dividend Payment -Closing TNW - -

d) Synopsis of Balance Sheet:

Sources of fundsPrevious year2010

2010-2011

Share Capital -- 85.92Reserves and Surplus --

Secured Loans : short term: long term -- 140.00Unsecured Loans --Provisions --Total -- 225.92Application of FundsFixed Assets (Gross Block) -- 207.42Less Depreciation --Net Block -- 207.42 Capital Work in ProgressInvestments(Deposits) -- 16.00InventoriesSundry debtorsCash & bank balances -- 2.50Loans & advances tosubsidiaries and group companiesLoans & advances to others( Less : Current liabilities )(Less : Provisions )Net Current AssetsMisc. Expenditure(To the extent not written off or adjusted )Total -- 225.92

Comments only on adverse movements in the above: (Not to exceed 5-6 lines)

RISK ASSESSMENT SECTION 4

a. CREDIT RATING—Not applicableBorrower rating Facility rating

WC TL Facilities Existing ProposedExist: Prop Exist: Prop Hurdle

rate

CRACRISILICRAOthers

(Marks scored in borrower rating / facility rating to be mentioned).

Existing Proposed

CRA based on Audited balance Sheet as onValidated on

b. Risks and mitigating factors :Critical risks perceived Mitigating factors

-NA- -NA-

c. Warning signals / Major irregularities in Inspection report / Credit Audit:/Other reports

Report Warning Signal / Major

irregularities

Comments

I/A Audit Report -NA- -NA-

Credit Audit Reports -NA- -NA-

Other Audit Reports -NA- -NA-

Qualification if any, in Auditors report

d. SECURITY

Details Value and basisof valuation

Date ofValuation / opinion report

Primary Security First charge on fixed assets ofThe Society including L & B

1. Polytechnic College L&B

301.00 lacs(Net block of fixed assets)

151.20 lacs (land value)

08.09.2010

Collateral Security 1.EM of 200.0sq.yds vacant site, near D.No.1/509, Plot No.22, Sy.No.100/1 to 9, 15, Ayyannapet,Vijayanagaram(M) in the name of KV Nadidu2. EM of 330.0 sq.yds vacant site, near D.No.8-124, Sy.No/201/3p, Mandalivari colony,Purutupenta, Gajapathinagaram(M) in the name of R Narayana Rao3.EM 600.0 sq.yds vacant site near D.No.1-509, Sy.No/100/1 to 9, 100/15, Plot No.14,15,16 Ayyannapet, near S.K.Degree college bus stop, Vijayanagaram, in the name of R.Chandrasekhar.Legal Opinion by Sri B.Satyanarayana, empanelled Advaocate.

3.00 lacs

13.20 lacs

9.00 lacsValued by Sri A.V.Ramana, empanelled valuer.

08.09.2010

08.09.2010

08.09.2010

Guarantee 1. Sri. Reddi Narayana rao, Net worth Rs.460.00 lacs

2. Sri. Yasarla Pavani Net worth Rs.12.00 lacs

3. Sri.Reddi Chandra Sekhar Rs.71.00 lacs4 Smt.Yasarla Lakshmi W/o.

R.Chandra SekharRs.8.00 lacs5. Smt.Pydithalli W/o R.Narayana

Rao Rs.27.00Lacs 6. Sri V.Rama Rao, N.W.Rs.18.00

lacs7. Sri Reddi Madhav Naidu,

N.W.Rs.7.00 lacsCollateralcoverage %

For SBI NILFor others NIL

e. Changes in security if any, Justification:

PRICING SECTION 5

a) CONDUCT OF ACCOUNT: (last year)

No. of occasionsAverage period for

regularisationIrregularity reportlast submitted on

Irregularity inWC :

Not applicable Not applicable

Comments: Not applicable Not applicableIrregularity inTL

NIL NIL

Comments : No irregularityUtilisation of limits:FB Limits Average

utilisation %NFB Limits Average

utilization %Not applicable Not applicable

b) INCOME ANALYSIS: ( Rs. in crs)

SBHFrom Estimates

( last year)Actuals(last year)

Estimates(current year)

WC Int.TL Int.LCBGBillForexOthers

Interest & Other Charges as per latestBalance Sheet dated

SBH Share Amount and percentage

InterestOther Charges

c. Other Bank’s/FIs Pricing: Not applicable

Existing ProposedTerm LoanWorking Capital

d. PROPOSED PRICING :

ITEM Existing Rate Card rate Proposed rateInt. on WCInt. on TLProcessing feeCommit chargesUpfront feeLCBG

Justification for concessions already extended / proposed: (mention about cost benefit)

SECTION 6

LOAN POLICY: DEVIATIONS AND COMPLIANCE:

a. Whether names of promoters, directors, company, group concerns figure in defaulter/willful defaulters list:RBI defaulters’ list dated : : NoName of the director Default in connection with:

(Name of the company)Remarks

Justification for consideringcontinuation / enhancement in facilities)

Not applicable

Willful defaulters’ list dated : : NoName of the director Default in connection with:

(Name of the companyRemarks

Justification for consideringcontinuation / enhancement in facilities)ECGC caution list

CIBIL

b. Deviations in Loan Policy:

Parameters Indicative

Min / Max level as

Company's level as on31-03-2012(projected)

1. Liquidity -- 1.152. TOL/TNW -- 0.463. Average gross DSCR (TL) -- 1.354. Debt / equity -- 1.155. Promoters contribution -- --6. Prudential norms - -7. FB exposure to the industry - -8. Substantial exposure : Borrower

- -9. Substantial exposure : Group - -10. Others - -

Brief comments only if there is deviation (Not more than 5 lines)- No deviations

c. Deviations in Take over norms and comments: Not applicable

d. Directors of the borrower company are relatives (scope of the term ‘relative as defined in RBI Master Circular on loans and advances- Statutory and other Restrictions) of any member of the Bank’s Board/Senior Officer of the Bank/ Member of any other Bank’s Board - No

If yes, details

e. Compliance with Section 20 of the Banking Regulation Act : Whether any of the Directors of the Bank is Director of the borrower company or is having any interest in the same:

NO

SECTION 7

a. Future Plans & Business potential(over a 3-5 year horizon) including Cross selling / Retail Marketing based on Co / Group’s future plans: (to be quantified).

Item Present Position –Whether Tied Up?

(Yes / No) *

Business estimated

(i) Corporate Salary Package Yes Rs.125 lacs(ii) P Segment Loans

(a) Housing(b) Auto Loans(c) Personal Loans

(iii) SBI Credit Card(iv) SBI Life 10.00 lacs(v) SBI Mutual Funds(vi) SBI Vishwayatra Foreign Travel Yatra Cards(vii) Vendor/ Dealer Finance(viii) Any Other (Please specify)

* If no, please advice efforts made and outcome thereof

b. Environmental and sustainability implications: Not applicable

c. Earlier terms of Sanction: Compliance status: All the terms of sanction were complied

d. Statutory dues/other contingent liabilities:Dues Level (Rs in crores) Impact on financial positionStatutory dues NILContingent liabilities NIL

SECTION 8a. Justification for the proposal: (Only bullet points)

b. Recommendation for sanction / approval:

“BALAJEE EDUCATIONAL SOCIETY MARUPALLI ” is a society mainly framed for

development of technical education and other education. The society is going to start BALAJEE

POLYTECHNIC college for the development technical education. The society has applied and

got the permissions for 5 branches in the polytechnic course. In this current year 2010-11 the

society started the construction of Building for college for the new entrants. The college is

maintained by an efficient management of ‘BALAJEE EDUCATIONAL SOCIETY MARUPALLI

The Members of the Balajee Educational Society are qualified service and technical oriented people they

are sound in financial and able to spend huge amounts for the uplift of the institution as they are all

interest to run the educational institutions. The well qualified members in the society have prepared the

same to establish and run Polytechnic College as required by the Commissioner of Technical Education.

The committee members understood the need for creation of highly trained man power for the present as

well as prow the future develops technologies.

Academic Directors:

Dr.K. Siva Prasada Rao and K. Sivanarayana Rao are well reputed persons in the field of education.

They are currently running Engineering ,MCA, MBA and Pharmacy under the RAHUL GROUP

OF INSTITUTIONS ( SAANKHYA EDUCATIONAL SOCIETY ) in Andhra pradesh, Orissa and

Bangalore. These people are acting as academic directors of Balajee polytechnic college. The Saankhya

group of people are very useful to our branch in mobilising deposits, SBI life, CASA deposits and other

business also. We are having Saankhya group of institutions deposits to the tune of nearly Rs.100.00

lacs depostis with our branch . We are also contacting with this group of people for mobilisation of

deposits to the tune of Rs.2.00 Crores with in 2 month. In this way, Saankhya group of Institutions are

prime customers of our Branch and very helpful to the Branch.

TO meet the current requirements it is proposed to construct 25,800 sp. Ft plinth area of

buildings for the polytechnic college. The total cost estimated for the first year construction

activity is Rs.201.50 Cr and land development and for providing the other facilities like

furniture, laboratory equipment and computers etc. the estimated cost is RS 77.86 lacs. Of

this total 279.36 lakhs, 139.36 lakhs rupees will be spent out of the funds of the society for the

balance amount of Rs 140 lakhs Balajee educational society is approaching the state bank of

Hyderabad for a term loan. The repayment may be fixed for Eight years.

As this is the first and initial year of college the constructions and facilities were taken up to

meet the demand of first year students only. As the time goes on the buildings and facilities has to

be provided additionally in the second and third years also for which the society is estimated to

approach the Bank for a term loan of Rs. 75 lakhs each in the second and third years

consecutively.

As all the required facilities will be provided in the college, the educational institution is under the

best management, the course is quite suitable for present days and able to show good opportunities

for employment and in view of the technical development, the above referred construction project

is very much needed. Hence, the loan may be disbursed at an early date to meet the urgent needs of

the educational institution of “BALAJEE EDUCATIONAL SOCIETY MARUPALLI”.

The society is maintaining a current account with our branch and dealing with us since inception

of the society. The society also deposited a fund of Rs.200.00 lacs with our branch for getting

AICTE approval and all members of the society are also promised to mobilise deposits to our

branch. The society members are also very helpful to the branch in mobilizing deposits, maintain

salaries accounts with our branch. The college students accounts also we can mobilize. They have

approached us for sanction of TL of Rs. 290.00 lacs for construction of polytechnic college.

The society got AICTE approval to start Polytechnic college. The promoters of the Society are

experienced in their field of activities and are actively engaged in Social Welfare activities. The

society also proposes to add some more courses in near future.

In view of the above, we request the AGM to sanction/approve the following:

a) To sanction a Term Loan of Rs.290.00 lacs for construction of polytechnic college.

Desk Officer / Field Officer Branch Manager/ Chief Manager / AGM / DGM

Date:

Appraisal Memorandum for term loan: Section B

Zone : ThirupathiBranch : ChiralaCompany : M/s. Balajee Educational Society Marupalli

BALAJEE POLYTECHNIC.

Term Loan / DPG:

a) Proposal : For Sanction of Term Loan limit of :1) 1st Year Rs.140.00 lacs2) 2nd Year Rs. 75.00 lacs3) 3rd Year Rs. 75.00 lacs

b) Project / Purpose: For construction of college building and purchase of equipment to the Polytechnic college.

c) Appraised by: As no technology involved appraising the project, technical appraisal was not considered,

d) Cost of Project & Means of finance: (Rs. In lacs)Cost MeansL & B 420.86 Equity :P & M 79.00 Internal accruals 245.86Other assets 36.00 Debt: 290.00WC MarginTotal 535.86 Total 535.86

PARTICULARS 1st 2nd 3rd 4th TotalCost of the Project :  Land * 10.86 0.00 0.00 0.00 10.86Land Development 10.00 0.00 0.00 0.00 10.00Building 175.00 90.00 135.00 0.00 400.00Furniture 0.00 4.00 3.00 3.00 10.00Lab Equipment 0.00 23.00 18.00 13.00 54.00Computers 0.00 5.00 5.00 5.00 15.00Books 0.00 4.00 4.00 4.00 12.00Deposit 16.00 0.00 0.00 0.00 16.00IDC 5.00 3.00 0.00 0.00 8.00Total 216.86 129.00 165.00 25.00 535.86Means of FinanceEquity 76.86 54.00 65.00 0.00 245.86Term Loan 140.00 75.00 75.00 0.00 290.00Cash Accruals 0.00 0.00 25.00 25.00 45.00Total 216.86 129.00 165.00 25.00 535.86

*NOTE: In the project report land cost of Rs10.86 lakhs is purchased for the year 2009-10 For the purpose of the particular college construction that is BALAJI POLYTECHNIC

COLLEGE.

e) Remarks on Cost of project & Means of finance (in brief):

1. Location of the project:

The Balajee Polytechnic is located at Marupalli ,N.H-43 road Gajapathinagaram Mandal,

Vizianagaram, Dist.

2. Land:

The college has acquired 5.71 acres of land at Marupalli , Gajapathinagaram, Vizianagaram

District and got it registered in the name of Balajee Educational Society Marupalli. The

society also proposed to mortgage 5.71acres to the Bank for obtaining loan. The society

proposed to construct college in 5.04 acres and plan approved for the same.

3. Buildings:

The management is approaching us for term loan for construction of building to provided

the required institutional, administrative areas and amenities at a cost of Rs 201.50 lakhs

with a plinth area of 25800sq. mts. to conduct Ist Year Polytechnic courses as per the

AICTE norms. It is proposed to construct building in phased manner year after year from

2010-11 onward for 2nd, and 3rd years

The details of construction with engineers’ estimations are as under:

Sl.No. Year Area available (sq.Fts.) Estimated cost.(Rs.)01. 2010-June 2011 25800 175.0002. July 2011-Dec

20117349 95.00

03. Jan2012-June 012

7349 135.00

Total 40498 400.00

4. Furniture:

Furniture for students, lecturers’ rooms, canteen, rest rooms and other furniture is estimated

at Rs 4.00 lacs in the 2010-11. The college proposes to furnish the other building as an

when they are completed. The furniture cost per year at Rs.3.00 lacs in the 2nd year and 2.00

lacs in the 3rd year is taken as lump sum.

5. Lab Equipment:

The lab equipment for first year has been estimated at a cost of Rs.25.00 lacs. The

equipment for other years shall be incurred as the building gets completed in phased

manner. The estimated expenditure for the same is as per the quotations submitted by the

society.

6. Computers:

The College has estimated an amount of Rs5.00 lacs in the year 2010-11 for acquiring

computers for the first year classes. The estimated expenditure for the next 2 years shall be

incurred in phased manner on computers is as per the quotations and bills.

7. Books:

The society has to maintain library for the students from 1st year to 3rd year classes of all

sections with required quantity. The estimated cost of the books as per the quotations for the 1st

year and for 2nd year, 3rd year will be purchased by the society as and when required.

8. Deposit:

The society has to make a caution deposit of Rs.15.00 lacs to AICTE to run the Polytechnic

College.

9. IDC

During 1st year an amount of Rs.5.00 lacs per month has been arrived at as interest during

implementation of the project and in 2nd year it is calculated at 12.50% for Rs.3.00 lacs p.m..

The interest during construction is capitalized.

f) Project implementation schedule:Particulars Duration Completion dateLand procurement Procured completedLand development Developed completedConstruction of 1st Year Building May’2011Procurement of equipment 1 month June’2011Construction of 2nd year building 6 months November, 2011Procurement of equipment 1 month December, 2011Construction of 3rd year building 6 months May, 2012Procurement of equipment 1 month June, 2012

g) Production factors:

The College needs manpower and equipment. The main man power requirement is

lecturers, professors for each faculty. The college has already obtained and short listed the

candidates for appointment.

h) Marketing: Marketing strategy not required for the Polytechnic College. The Govt. of Andhra Pradesh

will allot the seats under Govt. Quota as well as management quota.

i) Commercial viability: STAND ALONE

POLYTECHNIC COLLEGE GAJAPATHINAGARAMYears 2012 2013 2014 2015 2016 2017 2018 2019 Total

   Cover  Profit After Tax 6.24 -16.45 42.01 41.45 41.13 40.61 40.63 41.00 236.62Depreciation 19.95 29.81 31.03 31.36 31.45 31.91 31.72 31.48 238.71Int.on Term Loan 0.00Loan 0 54.03 34.41 30.86 26.85 22.31 17.20 11.42 197.08Total 26.19 67.39 107.45 103.67 99.43 94.83 89.55 83.90 672.41   Service  Repayment of Term Loan  Loan 7.96 27.58 31.13 35.14 39.68 44.79 50.57 57.08 293.93Interest on Term Loan 0 54.03 34.41 30.86 26.85 22.31 17.20 11.42 197.08Total 7.96 81.61 65.54 66.00 66.53 67.10 67.77 68.50 491.01DSCR 3.29 0.82 1.63 1.57 1.49 1.41 1.32 1.22 1.36

Comments on DSCR (in brief):

The Maximum DSCR of 3.29 is in the year 2012 and the minimum DSCR of 0.82 is in

2013. Average DSCR worked out to 1.36. The minimum DSCR in second year is due to

intake of 300 students out of total capacity of 960 students. The DSCR is above the bench

mark level of 1.35 in all the years except in 2nd year and 9th year. This is due to intake of

students in 1st year is300 and 330 students in 2nd year. However, the average DSCR is

above bench mark level of 1.35. Therefore, the society is able to meet its financial

commitments to the bank in all the years.

ii) Commercial viability: Debt service Coverage Ratio of Polytechnic College

DEBT SERVICE COVERAGE RATIO

Years 2012 2013 2014 2015 2016 2017 2018 2019 TotalCover  Profit After Tax 6.24 -16.45 42.01 41.45 41.13 40.61 40.63 41.00 236.62Depreciation 19.95 29.81 31.03 31.36 31.45 31.91 31.72 31.48 238.71 Int. on Term Loan 0 54.03 34.41 30.86 26.85 22.31 17.20 11.42 197.08

Depreciation 19.95 29.81 31.03 31.36 31.45 31.91 31.72 31.48 238.71Int. on Term Loan 0 54.03 34.41 30.86 26.85 22.31 17.20 11.42 197.08   Total 46.14 151.23 172.89 165.89 157.73 149.05 138.47 126.80 1108.20Service  

 Repayment of Term Loan

7.96 27.58 31.13 35.14 39.68 44.79 50.57 57.08 293.93

Interest on Term Loan 0 54.03 34.41 30.86 26.85 22.31 17.20 11.42 197.08

Total 7.96 81.61 65.54 66.00 66.53 67.10 67.77 68.50 491.01DSCR 5.79 1.85 2.63 2.51 2.37 2.22 2.04 1.85 2.26

Comments on DSCR (in brief):

The Maximum DSCR of 5.79 is in the year 2012 and the minimum DSCR of 1.85 is in 2013

& 2019. Average DSCR worked out to 2.26. The minimum DSCR in second year is due to

intake of 300 students out of total capacity of 2400 students, in Polytechnic College. The

DSCR is above the bench mark level of 1.75 in all the years. This is due to intake of

students in 1st year is 300 and 630 students in 2nd year in Polytechnic college. However, the

average DSCR is above bench mark level of 2.26. Therefore, the society is able to meet its

financial commitments to the bank in all the years.

j) Security Margin: Standalone

Particulars 2012 2013 2014 2015 2016 2017 2018 2019WDV of fixed assetsAgg. TL / DPG outstdg.Security margin available

% of margin

Comments on security margin, in brief: The security margin available is more than 50%

from2013 where the college is able to operate with full capacity.

ii) Security Margin:

Particulars 2012 2013 2014 2015 2016 2017 2018 2019WDV of fixed assets 291.91 428.11 419.39 410.79 391.2 386.33 383.60 373.12Agg. TL / DPG outstdg. 215.00 364.54 282.95 235.82 190.37 148.49 103.69 53.12Security margin available 76.91 63.57 136.44 174.97 200.83 237.84 279.91 320.00% of margin 35.77 17.44 48.22 74.20 105.49 160.17 269.95 602.41

Comments on security margin, in brief: The security margin is more than 50 percent from

2013 onwards where the society is able to operate the Polytechnic college with full

capacity utilization.

Break Even Analysis: Standalone

BREAK EVEN ANALYSIS(for the first 3 years is calculated)

Item   Rs In Lakhs  2011-12 2012-13 2013-14Salaries 16.62 24.42 32.76Telephone ,Electrical,Postage 0.66 1.17 1.68Printing and stationery 0.36 0.72 1.08Books and perioidicals 0.03 0.03 0.03T.A/D A 0.24 0.36 0.48Maintenance &Repair 0.48 0.72 0.96Miscellaneous 0.30 0.45 0.60Interest on Term Loan 0.00 54.03 34.41Depreciation 19.95 29.81 31.03Preliminary expenses written off  Total 38.64 111.71 103.03Sales RealisationLess:Variable costContributionBreakeven capacityBreakeven SalesCash breakeven capacity 50.91 51.99 39.14

Sensitivity Analysis: Standalone

DEBT SERVICE COVERAGE RATIO( Polytechnic college)(If decrease in receipts by 5%)

Years 2012 2013 2014 2015 2016 2017 2018 2019 TotalCover  Profit After Tax 6.24 -16.45 42.01 41.45 41.13 40.61 40.63 41.00 235.62Depreciation 19.95 29.81 31.03 31.36 31.45 31.91 31.72 31.48 238.71Int.on Term Loan  Loan-1 0.00 54.03 30.86 26.85 22.31 17.20 11.42 4.91 201.99Total 26.19 67.39 103.90 99.66 94.89 89.72 83.77 77.39 633.91Service  Repayment of Term Loan  Loan-1 7.96 27.58 31.13 35.14 39.68 44.79 50.57 57.08 293.93Interest on Term Loan  Loan-1 0.00 54.03 30.86 26.85 22.31 17.20 11.42 4.91 201.99Total 7.96 81.61 65.54 66.00 66.53 67.10 67.77 68.50 491.01DSCR 3.29 0.82 1.63 1.57 1.49 1.41 1.32 1.22 1.36Cash Accruals 44.08 112.93 271.84 528.44 734.14 842.09 887.48 868.38 4289.38total repayment 42.86 85.71 135.71 135.71 135.71 135.71 135.71 92.86 1100.00Net DSCR 1.03 1.32 2.00 3.89 5.41 6.20 6.54 9.35 3.90                   

k) Break-even and sensitivity analysis and whether acceptable:

Break-even: The Polytechnic College is able to break even at 0.91 in the first year itself

and breakeven income is Rs.136.38 lacs out of projected income of Rs.149.40 lacs.

Therefore, the income generated from the Polytechnic College is able to meet all its fixed

costs during first year itself. In third year the break even capacity is at 58% is due to full

implementation of the project and increase in depreciation to the fixed assets. However,

break even capacity is more than 50%. Therefore, the income generated from the college

will be able to meet its fixed cost in all the years.

Sensitivity: Even if the college receipts are reduced by 5%, the average DSCR is 2.92 and

the minimum DSCR is more than one. Therefore, the college independently can service

the debt.

Break Even Analysis:

Break even PointBREAK EVEN ANALYSIS(for the first 3 years is calculated)

Item   Rs In Lakhs  2011-12 2012-13 2013-14   Salaries 16.62 24.42 32.76Telephone ,Electrical,Postage 0.66 1.17 1.68Printing and stationery 0.36 0.72 1.08Books and perioidicals 0.03 0.03 0.03T.A/D A 0.24 0.36 0.48Maintenance &Repair 0.48 0.72 0.96Miscellaneous 0.30 0.45 0.60Interest on Term Loan 0.00 54.03 34.41Depreciation 19.95 29.81 31.03Preliminary expenses written off  Total 38.64 111.71 103.03   Sales Realisation 46.50 97.65 148.80

   Less:Variable cost 67.20 151.68 234.72   Contribution 162.21 350.86 580.27   Breakeven capacity 0.87 0.75 0.59Breakeven Sales 199.13 377.64 476.97Cash breakeven capacity 50.10 49.81 38.80       

DEBT SERVICE COVERAGE RATIO(if decrease in receipts by 5%)

Years 0 1 2 3 4 5 6 7 TotalCover  Profit After Tax 6.24 -16.45 42.01 41.45 41.13 40.61 40.63 41.00 235.62Depreciation 19.95 29.81 31.03 31.36 31.45 31.91 31.72 31.48 238.71Int.on Term Loan 0.00 54.03 30.86 26.85 22.31 17.20 11.42 4.91 201.99Total 26.19 67.39 103.90 99.66 94.89 89.72 83.77 77.39 633.91Service  Repayment of Term Loan    7.96 27.58 31.13 35.14 39.68 44.79 50.57 57.08 293.93Interest on Term Loan

0.00 54.03 30.86 26.85 22.31 17.20 11.42 4.91 201.99Total 7.96 81.61 65.54 66.00 66.53 67.10 67.77 68.50 491.01 DSCR 3.29 0.82 1.63 1.57 1.49 1.41 1.32 1.22 1.36   Cash Accruals 76.94 147.98 325.79 604.39 824.60 942.06 993.83 978.40 4893.99total repayment 46.85 110.33 160.33 200.33 200.33 200.33 200.33 152.04 1270.89   Net DSCR 1.64 1.34 2.03 3.02 4.12 4.70 4.96 6.44 3.85                   l) Break-even and sensitivity analysis and whether acceptable:

Break-even: The Society is able to break even at 87% in the year 2010 itself and breakeven

income is Rs.199/13 lacs out of projected income of Rs.229.41 lacs. Therefore, the

income generated from the society is able to meet all its fixed costs during first year

itself. In third year the break even capacity is at 59% is due to full implementation

of the project and increase in depreciation to the fixed assets. However, break even

capacity is more than 50%. Therefore, the income generated by the society will be

able to meet its fixed cost in all the years.

Sensitivity: Even if the Society receipts are reduced by 5%, the average DSCR is 2.86 and the

minimum DSCR is more than one. Therefore, the Society can service the debt.

l) CRA & Pricing :

m) Pricing by other major banks / FIs and justification of the proposed pricing:

Not applicable

n) Compliance of the project with environmental / social / statutory requirements:

Not applicable

o) Environment and Sustainability implications:

Not applicablep) Overall viability and acceptability of the proposal:

PROJECTED PROFITABILITY STATEMENT

Particulars 2012 2013 2014 2015 2016 2017 2018 2019

Fee Receipts 46.50 97.65148.8

0 148.80148.80 148.80 148.80 148.80

 

Total Receipts 46.50 97.65148.8

0 148.80148.80 148.80 148.80 148.80

ExpensesSalaries 16.62 24.42 32.76 36.00 39.60 43.56 48.00 52.80Telephone ,Electrical,Postage 0.66 1.17 1.68 1.86 2.04 2.23 2.50 2.75Printing and stationery 0.36 0.72 1.08 1.20 1.30 1.45 1.60 1.75Books and perioidicals 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03T.A/D A 0.24 0.36 0.48 0.52 0.60 0.66 0.72 0.80Maintenance &Repair 0.48 0.72 0.96 1.04 1.20 1.32 1.44 1.60Miscellaneous 0.30 0.45 0.60 0.66 0.72 0.78 0.90 1.00Bank Interest 0.00 54.03 34.41 30.86 26.85 22.31 17.20 11.42Dep 19.95 29.81 31.03 31.36 31.45 31.91 31.72 31.48

Total expenses 38.64111.7

1103.0

3 103.53 103.79 104.25 105.7 103.63 Surplus 6.24 -14.06 45.77 45.27 45.01 44.55 43.10 45.17tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PAT 6.24 -14.06 45.77 45.27 45.01 44.55 43.10 45.17

PROJECTED BALANCE SHEET FOR THE YEAR ENDING MARCHPOLYTECHNIC COLLEGE GAJAPATHINAGARAM Rs. In Lacs

Particulars 2012 2013 2014 2015 2016 2017 2018 2019 2020          SOURCE OF FUNDS    Capital    Share Capital 92.17 75.71 117.73 159.18 200.32 240.93 281.57 322.57 364.07Reserves & SurplusSecured Loans    

Term Loan 215.0

0282.0

3254.4

5 223.32 188.17 148.49 103.69 53.12 0Current liabilities and provision

20.00102.5

083.50 63.00 37.70 40.57 35.57 35.50 38.57

Total327.1

7460.2

5455.6

9 445.51 426.19 430.00 420.83 411.20 402.64     Application of Funds         Fixed Assets    

- Gross Block303.9

2440.1

1431.3

9 422.70 403.20 406.34 395.60 385.12 374.91 - Depreciation 19.95 29.81 31.03 31.36 31.45 31.91 31.72 31.48 31.21 - Net Block 283.97 428.11 419.39 391.34 371.75 386.33 363.88 353.64 343.70Current assets                  Deposits 16.66 17.96 19.28 20.59 21.90 23.21 24.53 25.84 27.16                    - Cash in hand & bank 6.59 2.18 5.02 2.22 1.09 0.45 0.70 0.24 0.57 

Total327.1

7460.2

5455.6

9 445.51 426.19 430.00 420.83 411.20 402.64

PROJECTED CASH FLOW STATEMENT POLYTECHNIC COLLEGE, GAJAPATHINAGARAM Rs. In lacs

Years 2012 2013 2014 2015 2016 2017 2018 2019

                 Sources                Increase In capital 20.00 82.50 -- -- -- 2.87 -- --Increase in Term Loans 75.00 75.00 -- -- -- -- -- --Profit after Tax & Interest 6.24 -16.45 42.01 41.45 41.13 40.61 40.63 41.00Depreciation 19.95 29.81 31.03 31.36 31.45 31.91 31.72 31.48Total 121.19 170.86 73.04 72.81 72.58 75.39 72.35 72.48                 Uses                Increase in Fixed Assets 126.00 165.00 25.00 21.00 21.00 26.00 21.00 21.00Increase in Current Assets 4.75 -3.09 4.15 1.48 .18 0.67 1.56 .84Increase in Deposits -- -- -- -- -- -- -- --Preliminary Exp -- -- -- -- -- -- -- --Outstanding interest payment 54.03 34.41 30.86 26.85 22.31 17.20 11.42 4.91Repayment of Term Loan-1 7.96 27.58 31.13 35.14 39.68 44.79 50.57 57.08Total 192.68 223.9 91.14 84.47 83.17 88.66 84.55 83.83                 Opening Balance 117.97 62.51 47.26 111.99 176.84 237.64 288.90 340.56                 Surplus/ deficit -55.46 -15.25 64.73 64.85 60.80 51.26 51.66 47.12                 Closing Balance 62.51 47.26 111.99 176.84 237.64 288.90 340.56 387.68

Assumption in ProfitabilityTABULAR PRESENTATION OF EXISTING AND PROPOSED STRENGTH OF THE COLLEGE                        

Course  1st Year

2nd Year

3 Year

4 Year

5 Year

6 Year

7 Year

9 Year

9 Year

10 Year

Branch-1(EEE) 60 60 60Branch-2(EC) 60 60 60Branch-3(CSE) 60 60 60Branch-4(Mechanical Engineering) 60 60 60Branch-5(Civil Engineering) 60 60 60

30 30

                       Total   300 330 330Total No of StudentsFees StructureThe existing fees and the proposed fee to be charged per student is detailed below

           Proposed          

                       Fees for General QuotaFees for Management QuotaCapitive Fees 15500 

Salaries for teaching staffThe salaries for the staff are paid for 12 months in a year.

Staff ParticularsSalary pm 1 2 3 4 5 6 7 8 9 10

 Principal 15000 1 1 1 1 1 1 1 1 1 1Lectures 7500 2 4 6 10 10 10 10 10 10 10Lecturers ( non Polytechnic) 5000 3 5 8 15 15 15 15 15 15 15Total Teaching staff   6 10 15 26 26 26 26 26 26 26

Annual salary for teaching staff (Rs. In Lacs)

Principal 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80

Lectures 1.80 3.60 5.40 7.50 7.50 7.50 7.50 7.50 7.50 7.50Lecturers ( non Polytechnic) 1.80 7.20 14.40 36.00 36.00 36.00 36.00 36.00 36.00 36.00    44.40 121.68 204.72 287.28 287.28 287.28 287.28 287.28 287.28 287.28Non- Teaching staff Salary pm 1 2 3 4 5 6 7 8 9 10

Office superintendent 15000 1 1 1 1 1 1 1 1 1 1Clerk 8000 3 4 6 10 10 10 10 10 10 10Computer operator 10000 2 2 4 4 4 4 4 4 4 4Lab technician 8000 5 5 12 12 12 12 12 12 12 12Librarian 15000 1 1 2 2 2 2 2 2 2 2Attender 5000 4 6 8 8 8 8 8 8 8 8Sweeper 4000 4 6 8 8 8 8 8 8 8 8Watchman 5000 2 4 4 4 4 4 4 4 4 4Driver 4000 2 2 3 4 4 4 4 4 4 4Cleaners 2500 2 2 4 5 5 5 5 5 5 5Total 76500 26 33 52 58 58 58 58 58 58 58

Annual Salary for non teaching                      Office superintendent   1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80Clerk   2.88 3.84 5.76 9.60 9.60 9.60 9.60 9.60 9.60 9.60Computer operator   2.40 2.40 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80Lab technician   4.80 4.80 11.52 11.52 11.52 11.52 11.52 11.52 11.52 11.52Librarian   1.80 1.80 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60Attender   2.40 3.60 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80Sweeper   1.92 2.88 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84Watchman   1.20 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40Driver   0.96 0.96 1.44 1.92 1.92 1.92 1.92 1.92 1.92 1.92Cleaners   0.60 0.60 1.20 1.50 1.50 1.50 1.50 1.50 1.50 1.50Total salary of non-teachig   20.76 25.08 41.16 45.78 45.78 45.78 45.78 45.78 45.78 45.78

Power, Postage & Telephone expenses is assumed to be at Rs 80,000 per month in the first 2 years and Rs 1,20,000 per month in the second year and Rs 1,50,000 per month from 3rd year onwards Expenditure on printing & stationery is assumed to be Rs.2 50000 per annum

Books and periodicals assumed to be Rs.100000 perannum

P.F is at 12% on the salaries

Annual expenditure on lab chemicals is estimated to bef Rs.40000per annum

Annual expenditure on games is assumed to be Rs.10000per annum.

Particulars 2012 2013 2014 2015 2016 2017 2018 2019

Fee Receipts 46.50 97.65148.8

0 148.80 148.80 148.80 148.80 148.80

 Interest  0.65

1.31 1.31

1.31

1.31

1.31 1.31

1.31

Total Receipts 47.15 98.96150.1

1 150.11 150.11 150.11 150.11 150.11Expenses                Salaries 16.62 24.42 32.76 36.00 39.60 43.56 48.00 52.80Telephone , Electrical, Postage 0.66 1.17 1.68 1.86 2.04 2.23 2.50 2.75Printing and stationery 0.36 0.72 1.08 1.20 1.30 1.45 1.60 1.75Books and periodicals 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03T.A/D A 0.24 0.36 0.48 0.52 0.60 0.66 0.72 0.80Maintenance &Repair 0.48 0.72 0.96 1.04 1.20 1.32 1.44 1.60Miscellaneous 0.30 0.45 0.60 0.66 0.72 0.78 0.90 1.00Bank Interest                Loan 75 75

Dep 19.95 29.81 31.03 31.36 31.45 31.91 31.72 31.48

Total expenses113.6

4132.6

8143.6

2 72.67 76.94 81.94 86.91 92.21                 

Surplus 21.41 87.20240.6

6 496.81 739.99 872.88 936.26 930.35Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

PAT 21.41 87.20240.6

6 496.81 739.99 872.88 936.26 930.35   

Cash Accruals 80.94176.1

1355.1

2 635.03 856.69 975.751029.2

8 1015.77

BALAJEE POLYTECHNIC

PROJECTED BALANCE SHEET FOR THE YEAR ENDING MARCHRs. In Lacs

Particulars 2012 2013 2014 2015 2016 2017 2018 2019                                  SOURCE OF FUNDS            Capital            

Share Capital 92.17 75.71117.7

3159.1

8200.3

2240.9

3281.5

7322.5

7Reserves & SurplusSecured Loans            

           

Term Loan 215.0

0 282.04254.4

5223.3

2188.1

7148.4

9103.6

9 53.12Unsecured loans 20.00 102.50 83.50 63.00 37.70 40.57 35.57 35.50

Total Term loan235.0

0 384.54337.9

5286.3

2225.8

7189.0

6139.2

6 88.62Current liabilities and provision                Interest payable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total327.1

7 460.25455.6

9445.5

1426.1

9430.0

0420.8

3411.2

0                 Application of Funds                         Fixed Assets            

- Gross Block303.9

2 440.11431.3

9422.7

0403.2

0406.3

4395.6

0385.1

2 - Depreciation 19.95 29.81 31.03 31.36 31.45 31.91 31.72 31.48

- Net Block283.9

7 428.11419.3

9391.3

4371.7

5386.3

3363.8

8353.6

4

Current assets                Deposits 16.66 17.96 19.28 20.59 21.90 23.21 24.53 25.84                  - Cash in hand & bank 6.59 2.18 5.02 2.22 1.09 0.45 0.70 0.24

Total327.1

7 460.25455.6

9445.5

1426.1

9430.0

0420.8

3411.2

0

BALAJEE POLYTECHNICPROJECTED CASH FLOW STATEMENT

Rs. In lacsYears 2012 2013 2014 2015 2016 2017 2018

               Sources  Increase In capital 20.00 82.50 -- -- -- 2.87 --Increase in Term Loans 75.00 75.00        Increase in Reserves & surplusesProfit after Tax & Interest 6.24 -16.45 42.01 41.45 41.13 40.61 40.63Depreciation 19.95 29.81 31.03 31.36 31.45 31.91 31.72Preliminary Exp  

Total

121.19 170.86 73.04 72.81 72.58 75.39 72.35

   Uses  

Increase in Fixed Assets126.0

0 165.00 25.00 21.00 21.00 26.00 21.00Increase in Current Assets 4.75 0.00 4.15 1.48 0.18 0.67 1.56

Increase in Deposits  Preliminary ExpOutstanding interest payment  Repayment of Term Loans 7.96 27.58 31.13 35.14 39.68 44.79 50.57

Total138.7

1 192.58 60.28 57.62 60.86 71.46 73.13   

Opening Balance117.9

7 62.51 47.26 111.99 176.84 237.64 288.90   Surplus/ deficit -55.46 -15.25 64.73 64.85 60.80 51.26 51.66 Closing Balance 62.51 47.26 111.99 176.84 237.64 288.90 340.56

On Standalone basis on combined basis 1. DSCR 3.16 2.942. Debt/equity 2.37 0.383. TOL/TNW 1.05 0.894. Break-even 0.97 0.875. Sensitivity to Receipts (DSCR) 2.92 3.85The unit do not require any technical study since so technology is involved in the project. Hence,

fianancial viability is studied and found the unit is financial viable.

Assessment of WC facilities: Not applicable SECTION C(If the assessment of the WC limits is based on any other parameters, please specify them along with an explanation)a. Inventory & receivable levels : (Months/Days)

Inventory/Payments Actuals Estimated ProjectedRaw material-Imported-DomesticSIPFG -NA-ReceivablesS Creditors

- Import- Domestic

b. Assessed Bank Finance:Assessed Bank Finance Actuals Estimated ProjectedYearTCAOCLWC GapNWC -NA-BFNWC/TCA(%)BF/TCA(%)OCL/TCA(%)

c. Assessment of EPC / FBD limits :

d. Computation of LC limits for WC:Annual RM Cons.under LC -NA-Monthly RM purchasesUsanceLead timeL/C Limit requiredRecommended LC limitDocumentary : Non Documentary :

e. Assessment of BG limit:Outstanding BGs as on ……..Add: BGs required during the period ..……..Less : Estimated maturity/cancellation of BGs during the period…………

-NA-

Requirements of BGsRecommended BG limitFinancial : Performance :

SECTION C contd

f. Efficiency ratios: (Society)Particulars A E PNet sales to Total Tangible Assets (times)PBT to Total Tangible Assets (%)Operating cost to Sales (%)Bank Finance to Current Assets (%) NA NA NAInventory + Receivables to Net Sales (days) NA NA NA

Brief comments on the assessment of the above limits: The society is not in need of working capital funds.

g. Fund Flow Analysis : Stand aloneFor the year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17Long Term SourcesLong Term UsesLong term Surplus

Comments: The college will have long term surplus to meet to their commitments in all the years.

g. Fund Flow Analysis : Society For the year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17Long Term SourcesLong Term UsesLong term Surplus

Comments:The society will have long term surplus to meet to their commitments in all the years. No diversion funds for short term purpose are projected.

Terms & Conditions: SECTION D

ZONE : Tirupathi

COMPANY: M/s. BALAJEE EDUCATIONAL SOCIETYBALAJEE POLYTECHNIC.

A. SECURITY :Facility Primary Collateral Guarantee

Term Loan

All fixed assets of the College including Land & BuildingExtension of charge on fixed assets of Polytechnic college

1.EM of 200.0sq.yds vacant site, near D.No.1/509, Plot No.22, Sy.No.100/1 to 9, 15, Ayyannapet,Vijayanagaram(M) in the name of KV Nadidu2. EM of 330.0 sq.yds vacant site, near D.No.8-124, Sy.No/201/3p, Mandalivari colony,Purutupenta, Gajapathinagaram(M) in the name of R Narayana Rao3.EM 600.0 sq.yds vacant site near D.No.1-509, Sy.No/100/1 to 9, 100/15, Plot No.14,15,16 Ayyannapet, near S.K.Degree college bus stop, Vijayanagaram, in the name of R.Chandrasekhar.Legal Opinion by Sri B.Satyanarayana, empanelled Advaocate.

1. Sri. Reddi Narayana rao, Net worth Rs.460.00 lacs

2. Sri. Yasarla Pavani Net worth Rs.12.00 lacs

3. Sri.Reddi Chandra Sekhar Rs.71.00 lacs4 Smt.Yasarla Lakshmi

W/o. R.Chandra SekharRs.8.00 lacs

5. Smt.Pydithalli W/o R.Narayana Rao Rs.27.00Lacs

6. Sri V.Rama Rao, N.W.Rs.18.00 lacs

7. Sri Reddi Madhav Naidu, N.W.Rs.7.00 lacs

Deviation from existing security (if any) to be mentioned in the proposal.

B. ECGC COVER: Not applicable

C. MARGINS: (FOR EACH FACILITY AS APPLICABLE)— Not applicable

Cash Credit: Existing Proposed

RM:DomesticImportedSIPFG -NA- -NA-Receivables (Cover ---days)Letter of CreditBG

Justification for deviation from existing margins, if any to be provided in the proposal.

D. RATE OF INTEREST:

Facility CRA Pricing

i.) ………………... ………. ………….

ii) …………………

………. ………….

iii) ………………… ………. …………

E. Insurance: The lab equipment, furniture, computers etc. will be insured against fire, theft, riots etc. and Building will be insured against fire, earthqauake etc.

F. Processing fees:

G. Inspection: Quarterly inspection by Branch manager of Berhampur Branch and half-yearly inspection by Branch Manager, Chirala Branch.

H. Term Loan margin: 50% on building cost and 25% on equipment.

I REPAYMENT SCHEDULE:

Term Loan – Rs.290.00 lacs repayable in 16 half-yearly installments of Rs.31.00 lacs payable in September and March, each year

i) The Interest on the four term loans will be paid as and when applied.

ii) Repayment to start from : 30th September, 2012 for Term Loan

J. OTHER CRITICAL COVENANTS:

Note : Any change in the terms and conditions vis-à-vis earlier sanction should be justified in the proposal.