Professional Documents
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Project Report
Project Report
1. 2.
Contact Sheet Company Name Mobile E-mail finance@excelgroup.in Mobile E-mail cfo@excelgroup.in
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TABLE OF CONTENTS
Executive Summary ................................................................................................................... 4 1. Project Company Profile .................................................................................................... 8 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Brief Background of Group and Company ............................................................ 8 XYZ Company Ltd ..................................................................................................... 8 Capital Structure and Shareholding Pattern .......................................................... 8 Board of Directors ...................................................................................................... 8 Key Management Personnel..................................................................................... 8 Financial Performance ............................................................................................... 9 Existing Banking Arrangement................................................................................ 9 Credit Rating .............................................................................................................. 9
2. The Project.......................................................................................................................... 10 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 Project Background.................................................................................................. 10 Details of Land ......................................................................................................... 10 Location Advantages ............................................................................................... 10 Inputs for Construction ........................................................................................... 13 Proposed Implementation Schedule ..................................................................... 14 Status of Approvals and Consents ........................................................................ 14 Project Consultants & Contractors ........................................................................ 15 Cost of Project ........................................................................................................... 16 Means of Finance ..................................................................................................... 17
3. Project feasibility .............................................................................................................. 18 3.1 3.2 3.3 3.4 Financial Feasibility - Annexure I .......................................................................... 18 Marketing and Selling Arrangement .................................................................... 18 Locational Advantage: ............................................................................................ 18 SWOT ANALYSIS OF THE PROJECT .................................................................. 19 Page II
3.5
4. Conclusion........................................................................................................................... 21 5. Annexures ........................................................................................................................... 22 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 Master Plan of Group Hostel.................................................................................. 22 Brief Details the Key persons of the company ..................................................... 22 Land Details .............................................................................................................. 22 CIBIL report of the Directors .................................................................................. 22 Copy of External Credit Rating.............................................................................. 22 Approvals Copies .................................................................................................... 22 Contract copies executed for implementation of project ................................... 22 Layout Plan of both types of Hostel Rooms......................................................... 23 Financial Feasibility ................................................................................................. 24
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Executive Summary
______ group was founded by Mr. ____________ in ________year. The company is engaged in ___________ business from past _____ years. XYZ Company, a company promoted by ______ Group, was incorporated on _______________. The Promoter directors of the company are Mr. ______________ and Mr. ______________. The company is developing Group Hostel facility at _________ near Dr. Ambedkar_____University. LBPPL is developing the above mentioned Group Hostel Facility on land admeasuring 84,500sq.ft. out of which 50,700sq.ft. shall be utilized for development and balance shall be kept as open space. The following are the proposed development to be made on 84,500 sq.ft land area: Particulars Type of Facilities Group Hostel Recreational Development Type A - 200 sq.ft/unit Administrative office and Club Type B - 250 sq.ft /unit House including GYM, Swimming Pool, Table Tennis, Big Ground and Canteen Total Number of 540 -units Land Area Utilised 84500 sq.ft FAR Utilised 1,17,000 sq.ft 10,000 15000 sq.ft Permissible area 1,69,000 sq.ft Ground Coverage 40%
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Status of Approvals and Consents SL NATURE OF APPROVAL STATUS NO CORE SEGMENT 1 Land Development Rights 2 3 Application to Directorate of Environment, Government of Maharashtra 4 Approval of Building Plan 5 No objection from pollution control board 6 Clearance from Airport Authority of India 7 Fire Department NON-CORE SEGMENT 1 Installation of DG sets Approval during the implementation of project. 2 Availability of Water Approval during the implementation of project. 3 Approval for sewage connection Approval during the implementation of project. 4 Approval with regard to income Already received tax, sales tax, VAT, entry tax etc. Project Consultants & Contractors The Company has appointed following consultants for the Proposed Project. Domain Architectural Design Consultancy Services Structural and MEP Services Master Planning Liaison Consultants Statutory Clearances Soil Investigation and Topographical Survey Consultant
of of of
Cost of Project:
The cost of the project is estimated to be Rs. 30.53 crores as per the detailed item wise break-up given below: Cost of Project Amount Cost of Land 7.00 Cost of Construction 13.78 Furinture and Fittings 2.70
Strictly Private and Confidential Page 5
Provision for Contingencies @ 5% Interest on PC IDC on Term Loan Preliminary and Pre-operative Expenses TOTAL
Particulars
Promoters Contribution Advances from Customers Term Loan TOTAL
Total
10.00 3.53 17.00 30.53
% of Total
32.75% 11.57% 55.68%
100.00%
Current Status
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Key Terms of Financing M/s _________________ (__________ or the Company) _________ Group developing Group Hostel facility named as ___________ consisting of 540 hostel rooms and Recreational facilities at___________ Lonere Raigad District near Dr. Ambedkar University Rs. 30.03 crores Total Project Cost to be funded at a debt equity ratio of 1.13:1 Equity contribution :Rs. 10.00Crores Rupee Term Debt : Rs. 17.00 Crores Deferred Payment to NOIDA : Rs. 5.03 Crores Rupee Term Loan : Rs. 17.00 Crores To part finance the capital expenditure for the implementation of the proposed Group Hostel Project Door-to-door tenure of 4 years including 2.00 years of construction period 8 quarterly structured instalments after moratorium period of 2 years of Construction period from first disbursement
Investment rationale
To sum up, the key strengths of the project that makes it a bankable proposal are:
Know How available with the management: Good Industrial & Social Political relations:
The key financial indicators of the project are as under: Financial Indicators Estimated Value Average DSCR* Minimum DSCR* *The DSCR mentioned is calculated for the loan repayment period. In view of sound financial indicators of the project and financial strength of the promoters, the proposal for term lending can be considered.
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Sl. No 1. 2. 3. 4 5. 6. 7. 8. 9. 10.
Name
Designation
Department
Age
Qualification
Experience (Years)
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2. The Project
2.1 Project Background
The __________is developing Group Hostel facility named as ___________ consisting of 540 hostel rooms and Recreational facilities at___________, Lonere near Dr. Babasaheb Ambedkar Technological University. The Company is developing Hostel facility comprising of the land area of 84,500 sq. mts which will consist of 540 hostel rooms, Club House and open area development for other sports facilities. The whole master plan of project is given in Annexure - I. _______________ OVERVIEW Prominently located near to Dr. Babasaheb Ambedkar Technological University, Lonere. Total plot area of 84500 sq.ft with club house and open area for sports facility 540 Hostel Rooms with 200sq.ft and 250sq.ft area per Hostel room Club House comprising of Canteen, Gym, Swimming Pool and Table Tennis Court
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Map
Accessibility from major destinations: Destination Mahad City Mangaon, Tehsil Raigad Fort Goregaon Indapur Panvel Distance (in Kms.) 25 kms North 10 Kms, South 25 kms 5 kms, West 20 kms, North 108 Kms, North
Brief details regarding Dr. Babasaheb Ambedkar Technological University. Dr. Babasaheb Ambedkar Technological University (DBATU) is a unitary, state university located at Lonere in Raigad district,Maharashtra, India. Established by Government of Maharashtra in 1989 under the Government of Maharashtra Act 1983. Dr. Babasaheb Ambedkar Technological University is one and only one of its kinds in the State. Being located at Lonere, the place in the ranges of Western Ghat, at the foot of Raigad fort, the place from where Chhatrapati Shivaji administered his major activities. It is autonomous in nature and Unitary in its character. It is established in the year 1989 by the Government of Maharashtra. The University has a conducted institute of its own, "Institute of Petrochemical Engineering", running Diploma Courses in eight streams of engineering and technology. Established Type Chancellor
Strictly Private and Confidential
Vice Chancellor Admin Staff Students Undergradutes Postgraduate Location Affiliations Website
Hostel Rooms availability in the Region
R. B. Mankar 146 5000 2322 252 Lonere, Maharashtra, India UGC www.dbatu.ac.in
The project location is highly populated with Students studying in Dr. Ambedkar University. There are very less Hostels compared to required number rooms. The table below provides the details of supply and demand of Hostel rooms in the region: Particulars 2011 2013 2016 Demand of Hostel Rooms Supply of Hostel Rooms GAP Presently there are 4 Hostels in the region providing Hostel facilities with __________ number of rooms. Hence by the above table it is evident that there is requirement of Hostel rooms in the region.
Land Area Disrtibution Total Land Area (Sq ft) Permissible FAR (2.00) (Sq Ft) Achieved FAR (Sq.Ft) Particulars Hostel Rooms Non FAR Area Open Area Development Break up of Area distribution
Units per Floor Floors Incl. Ground Floor Unit Area(per sq. ft) Tower Floor Plate (Sq.ft) Total Ground Level Area
Type of Tower
No. of Towers
Total Units
4 2 6
30 30
3 3
200.00 250.00
24000 18,000 72,000 15000 22,500 45,000 39000 40500 117000 11700 12150 35100
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Total SPECIFICATIONS OF HOSTEL ROOMS 1 2 3 4 5 6 External Faade Flooring Doors & Windows Toilet Electrical Inside wall & finish
17550
50700
52650 152100
Combination of stone work in dado &superior texture paint on all floors. Vitrified tile flooring in rooms. Branded anti-skid ceramic tiles in toilets & balconies Hardwood frames veneer finished entrance door. External aluminium/ UPVC doors and windows Branded anti-skid ceramic floor tiles: Sanitary ware: Fittings: Copper wiring in concealed PVC conduits. Sufficient light and power points. Provision for TV, telephone, internet, intercom points in all room Drawing/ dining with plastic paints & all other internal walls with OBD.
Company has engaged/ is to engage the services of reputed Architects/ Structural Consultants/ Contractors/ for execution of project. Project Off-take The company has appointed ____________. as the project management consultant to take care of the implementation proposed Project. Project Commencement The project is envisaged to be completed in 24 months from the date of financial closure.
SL NATURE OF APPROVAL STATUS NO CORE SEGMENT MOEF- NOC 1 MESCOM - NOC 2 3 Electricity Board NOC 4 Approval of Building Plan 5 No objection from pollution control board 6 Clearance from Airport Authority of India 7 Fire Department NON-CORE SEGMENT 1 Installation of lifts 2 3 4 5 6 Installation of DG sets Availability of Water Approval for sewage connection Approval for other value added facilities as part of project detailed in technical specifications Approval with regard to income tax, sales tax, VAT, entry tax etc.
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Particulars Total Land Add: Registration Charges @ Land and Registration Cost
Building, Civil Works, Interiors and Furniture & Fixtures - Building Cost & Civil Works A total sum of Rs.13.78 Crores has been estimated for construction of the Buildings for the proposed Group Hostel. The breakup of building cost for the same is provided in the following table: (In Rs. Crore) Total Amount Particulars 1.40 Preliminary works 66.22 Civil works 23.12 Faade works 90.74 Total - Furniture & Fixtures
Strictly Private and Confidential Page 16
It has been estimated that a sum of Rs 2.70 Crores will be required for the various furniture & fixtures necessary to furnish the hostel rooms. The break-up of estimated cost for each Hostel room is as follows: (In Rs. Crore) Particulars Plumbing works Electrical works Interiors Graphics and Signage Total Contingencies A sum of Rs. 0.82 crores assuming 5% of the Building, Civil works and Furniture & Fittings has been estimated for contingencies. Interest during construction period Interest during construction period of Rs.2.33 crores is taken for term loan @ 13.50% p.a. for implementation period of 24 months based on estimated draw down schedule linked to Project implementation schedule. Preliminary and Pre-operative Expenses Preliminary and Pre-operative costs estimated at Rs.1.50 crores include expenses such as consultancy fees, preliminary approvals, required, upfront fees on Term Loan etc.
3. Project feasibility
3.1 Financial Feasibility - Annexure I
Detail assumptions underlying the Financial Projections. Debt Draw-down Schedule and Repayment Schedule Projected Cash Flow Projected Profit and Loss Account Projected Balance sheet Projected Debt Service Coverage Ratio Internal rate of return
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3.5 Risk Factor & Mitigations:Risks Execution Risk Risk Perception Delay in execution of project will increase the cost of project. Non availability of adequate materials/ labour / finance might delay the progress of the project.
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Mitigations
Operational Risk
Price risk
Price quoted should be reasonable and any risk of volatile prices due to supply-demand factors increases the price risk.
The rates assumed are considerably reasonable and Company shall be able to sell the facilities at assumed rate and hence the risk is not major for the Project.
This is the risk of non-conformance of laid down quality standards for construction processes and raw materials. This risk relates to matters such as increased taxes and any policies that may have a bearing on the project. This is the risk that official Permitting clearances like approved building Risk plans, licenses from competent authorities may not be forthcoming or subject to expensive conditions. Interest Rate This is the risk that the floating interest rate of the project, if any, Risk would increase beyond the levels assumed for preparing projected cash flows. Quality and nonconformance risk: Political risk
The Company shall acquire all the necessary approvals and shall take necessary steps to mitigate the risk.
Site Risk
The project cash flows have been prepared and viable under the high interest rate scenario and also under the sensitivity analysis carried out for interest rate. Considering the same the company does not face a major threat due to interest rate risk. This is the risk that the project site The site has been acquired and all the might have legal encumbrances. verifications have been carried out by the Company.
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4. Conclusion
___________ is newly established SPV of ______ group. It is coming up with a Group Hostel project named ______________ at ______, next to Dr. Ambedkar University, Lonere, Raigad District. The company has already purchased land for the proposed project for Rs. 7 crores promoter contribution. The Market Valuation of the land is Rs. ________ as per valuer ___________. The estimated cost of the project is Rs.32.03 crores which is proposed to be funded with the Debt/Term Loan of Rs. 17.00 Crores and Promoters contribution of Rs. 10.00 Crores and Advance income from sale of units of Rs. 5.03 Crores at an estimated Debt Equity ratio of 1.2:1. The promoters have already incurred Rs. ____Crores in the proposed project. Company has already obtained certain necessary approvals/clearances for the proposed project. They have also made and are in the process of making applications to other authorities for getting the approvals. In view of the sound financial indicators of the project and the execution and financial strength of the promoters, the proposal for term lending can be considered.
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5. Annexures
Annexure I
5.1 Master Plan of Group Hostel 5.2 5.3 5.4 5.5 5.6 5.7 Brief Details the Key persons of the company Land Details CIBIL report of the Directors Copy of External Credit Rating Approvals Copies Contract copies executed for implementation of project
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84500 sq.ft 8150 Sq. mts. ____ Two A & B Type Entire Project 540 200 sq. ft. Rs. 3,300 Rs. _____ Rs. 3,404 Rs. 50.19 Rs. 30.03 Rs. 16.58 48 Rs. 17
250 sq. mts. Per Sq. Ft. Per Sq. Ft. Per Sq. Ft. Crores Crores Crores Months Crores
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32.45%
5%
COST OF CONSTRUCTION Total Land Area (Sq ft) Permissible FAR (2.00) (Sq Ft) Achieved FAR (Sq.Ft)
10000000
Type of Tower
No. of Towers
Total Units
Total Ar (Sq.ft)
4 2 6
30 30
3 3
200.00 250.00
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Total Construction Plan PARTICULARS Cost of Land Cost of Construction Furniture and Fittings Provision for Contingencies @ 5% Preliminary and Pre-operative Expenses Q1 100% 8% 0% 8% 50% Q2 0% 10% 0% 10% 50% Q3 0% 12% 5% 12% 0% Q4 Q1 CONSTRUCTION 0% 0% 15% 15% 10% 15% 15% 0% 15% 0%
17550
50700
52650
152
Revenue Assumptions
Variable Payments Basic Sales Price Maintainence Security Parking Charges Documents and financing
Strictly Private and Confidential
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charges Total Selling Price Per Sq Ft Revenue Plan PARTICULARS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue 459 54 513 5% 5% 27 38 7% 7% 43 475 475 3,300.00
No of rooms available Additions Saleable Inventory Rooms % of Sales % of Sales Sold Rooms Sold Area Selling price Total Sales Value 43 43
324 81 405 0% 0% -
405 81 486
8% 8%
- 7,605 10,647 12,168 3300.00 3300.00 3300.00 3300.0 0.00 2.51 3.51 4.0
PARTICULARS
Q1
Q2
Q3
Q4 Q1 CONSTRUCTION
Q2
Q3
Q4
Repayment
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Opening Balance Additions Repayment Closing Balance Average Balance Interest @ 13.50%
2.40 Q4
OutFlow
Strictly Private and Confidential Page 28
Land Cost Construction Cost Furniture and fittings Preliminary Exepenses Administrative and Selling Expenses Interest on Term Loan Repayment of Term Loan Interest on Promoter Contribution Tax Payment Total Outflow Inflow Promoters Contribution (PC) Proceeds from customers Total Inflow Surplus / Deficit Opening Balance Cash Surplus / Deficit Term Loan Required Closing Balance
Profit and Loss Statement
7.00 1.17 0.00 1.50 0.00 0.02 0.00 0.30 0.00 9.99
0.00 1.46 0.00 1.50 0.00 0.07 0.00 0.30 0.00 3.33
0.00 1.75 0.14 0.00 0.00 0.14 0.00 0.30 0.00 2.33
0.00 2.19 0.27 0.00 0.00 0.23 0.00 0.30 0.00 2.99
0.00 2.19 0.41 0.00 0.00 0.33 0.00 0.30 0.00 3.22
0.00 2.19 0.54 0.00 0.00 0.45 0.00 0.30 0.00 3.48
0.00 2.19 0.68 0.00 0.25 0.53 0.00 0.30 0.21 4.16
0.00 1.46 0.68 0.00 0.35 0.57 0.00 0.30 0.30 3.65
0 0 0 0
0 0 1 0 0 3
0 4 4 1
-0
1.00 1.01
2.00 -0.31
2.50 -0.14
2.50 -0.63
3.50 -0.36
3.50 -0.33
1.50 -0.49
0.50 -0.12
0 0
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PARTICULARS
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Proceeds from customers Net Sales Cost of Construction Administrative and Selling Expenses Interest on Promoter Contribution Interest on Term Loan Profit Before Tax Less: Taxes PAT
3.51
3.51
0.62
Balance Sheet
Q1 10.00 0.00
Q2 10.00 0.00
Q3 10.00 0.00
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Q4 10.00 0.00
Q1 10.00 0.00
Q2 10.00 0.00
Q3 10.00 0.44
Q4 10.00 1.07
10 1
Term Loan TOTAL Work in Progress Cash and Bank Balance TOTAL Error D/E FACR
15 26
25 0 26
0 1 1
CALCULATION OF DSCR
PARTICULARS
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Cash Generation before Interest and Repayment Interest Repayment of Term Loan TOTAL DSCR AVERAGE DSCR
2.09
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IRR
PARTICULARS
Cashflows IRR
Year 1
-18.63
Year 2
-13.40 15%
Year 3
25.50
Year 4
16.90
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