M/S SARASWATI TRUST

RPOFILE/PROJECT REPORT

1. INTRODUCTION:

Mata Shatru Pita Vairi, Yen BalenaPathita

Te Shobhate Sabha Madhye, Hans Madhye Vako Yatha.
The slogan referred herein above is magnificently expressing the thousands year old glorious
tradition, culture and educational system of Indian Society which tells importance of education
for the mankind. India was known as Vishwa Guru for its excellent Gurukul System ands self
styled universities like Nalanda and Takshila which enlighten the beam of knowledge to the
human society.

India is a country of vast mineral resources and has one of the largest reservoir and manpower.
All it needs to alloy them. Only then we will acquire our rightful place as one of the fastest
growing economy in the world and would soon become the biggest. We are beginning to realize
this and also started to understand our needs to achieve such a goal. Government policies to
encourage privatization of educating and entrepreneurs to set up Private Educational
Institutions and Technical Institutes are the steps in this direction. Global competitiveness is
multiplying every day at every step and truth is that markets are becoming battle grounds where
only the best will survive leaving no place for runners up. This institute is being promoted
keeping the above cardinal principles in view. Academic excellence, in serene calm
environment, state of the art laboratories equipped with all facilities, will be its hall mark.

Uttar Pradesh still has literacy percentage of about 54% only. It is struggling for its economic
survival and has to industrialize in a big way for being most populous state of the country. On
the other hand, number of educational institutions for higher education, technical &
professional education and job oriented education are far too less and young generation is
being perpetually deprived the opportunities wanting such education.

Recently in the month of Feb, 2008, the Government of Uttar Pradesh has opened the filed
for the private sector by issuing Rules and Regulations for the establishment of private
university by an act of the state assembly.

Varanasi is a business, commercial, religious and educational center of Eastern Uttar Pradesh; it
is surrounded by North Bihar, Madhya Pradesh and Chattisgarh. It has been centre for
education from ancient times. It has a population of about 3 millions people. It caters to the
educational need of entire Purvanchal which has a population of more than 30 millions.
Varanasi is the largest city in Eastern Part of Uttar Pradesh and it attracts increasing numbers of
student’s from other areas also. From operational point of view, 3 Universities namely BHU,
Kashi Vidyapith and Purvanchal Universities are functioning at Varanasi.

Though there are three Universities in the Varanasi but there are following institutions
having courses of B.Pharmacy in the entire Purvanchal
1) IIT BHU 30 Seats
2) Prasad College of Engineering , Jaunpur 60 Seats
3) RK College of Pharmacy, Chhatiyoan, Azamgarh 60 Seats
4) Harishchandra College of Pharmacy, Varanasi 60 Seats

Hence, total seats available for B. Pharma in Purvanchal are not sufficient to meet educational
requirement of Pharmacy aspirants having aspiration to make career in para medical and allied
 fields. Saraswati Trust is making an effort to train and prepare world class pharmacy
professionals by establishing SHEAT College of Pharmacy at Gahani, Varanasi.

2. ABOUT THE TRUST ITS, INTITUTIONS AND TRUSTEES

Shri Jagdish Narayan Singh, the eminent social personality of Varanasi District formed
SARASWATI trust on 03 February 2000. The basic purpose of forming the trust was to
establish a world class educational institute.
At present the trust managing and running following educational institutions/colleges:
a) Saraswati Higher Education and Technical College of Higher Studies at Gohani, Ayar,
Varanasi has started from the year 2005-06 and is duly approved/ affiliated for BA, B. Ed
and B. PEd. From respective governing bodies. The Institute has also got approval for BBA
and BCA courses. The project under consideration is also for the approved BCA and BBA
course.
b) Saraswati Higher Education and Technical College of Pharmacy at Gohani, Ayar, Varanasi
has started classes of B. Pharma from session 2007-08. The college is running is Bachelor
Degree course for second year and the proposal under consideration is presented for the
third year and final year of the B. Pharma Courses.

The management committee of the trust consists of the following:

Name Age Qualification Occupation/Experience Functional

responsibility
Shri Jagadish BSc. Retired Forest Range Managing/Chief
Narayan Singh officer, continued social Trustee.
service after retirement
from Government Job.

Sri Vinod 46 B.A. Businessman is Proprietor Trustee

Kumar Singh of M/s Chola pur Auto
Sales and Partner of M/s
V.K. Transport and Ankit
Road Carrier.
Sri Virendra 54 B.SC. Eminent Social and Trustee
Kumar Singh Political Personality of the
Uttar Pradesh. He was
minister in the Cabinet of
U.P. Government for two
terms and successfully
handled the challenging
portfolio like transport and
Forest.

The well known philanthropist Sri Virendra Kumar Singh and Sri Jagdish Narayan Singh
are the key persons in turning the dreams of forming the Saraswati Trust. They have been
managing the affairs of the trust since inception. Under their dynamic leadership, overall standards
of the education institutions run by the trust has become comparable with the best in the country, it
has been making rapid strides on the path of progress and it has emerged as an eminent educational
institution in the private sector in Eastern Uttar Pradesh. Overall

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3. PROJECT:

The present project is in respect of SHEAT College of Pharmacy which is running B.Pharma.
The duration of the course is four years (eight semesters). The institute is running its IInd Year
course. The course has an approved intake of 60 students per year. The course run by the
institute is properly approved by AICTE (All India Council of Technical Education) and
affiliated with UPTU (Uttar Pradesh Technical University). The college has sufficient
infrastructure and teaching staff for 1st year and 2nd Year. The infrastructure for 2nd year is in
progress.
The present project also covers the courses of BBA and BCA to be run from the year 2009-10 .
The courses are approved and affiliated with Purvanchal University Jaunpur and having
approved intake of 60 students for each course respectively. The course will the run by SHEAT
college of Higher Studies which is already running duly approved and affiliated courses of
B.A., B.Ed. and B.PEd.

4. VISION OF THE TRUST:

To ESTABLISH leading high end educational institutions for providing quality education to
meets the needs of Indian Economy, keeping in mind the international standards, global
competitiveness and overall betterment of the Society.

5. AIMS AND OBJECTIVES:

A. To make all out efforts to inspire young people to learn with devotion, act with discipline
and later serve the humanity with a sense of social responsibility.

B. To offer ample opportunities to the students to acquire self confidence and constructive
leadership abilities.

C. Phased and planned development of the institution to make it a preferred destination for
higher studies, technical and professional education.

D. Facilitate quality education in chosen fields as per the needs of the Indian Economy.

6. PROJECT IMPLEMENTATION SCHEDULE:

The proposed activities of the Project will be completed in the following manner;

Description of Activity Commencement Completion

Approval from AICTE to establish a Pharmacy Completed Completed
College for Running B.Pharma
Affiliation from UPTU to establish a Pharmacy Completed Completed
College for Running B.Pharma
Approval/ Affiliation from Purvanchal University Completed Completed
for running the BCA and BBA courses
Acquisition of the Land Completed Completed

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 Completed Completed

Building , Civil Work and Development Work for

B.Pharma Course for Up to Second Year Course
March 09

Building , Civil Work and Development Work for

B.Pharma Course entire project
March09 March10

Building , Civil Work and Development Work for

BCA and BBA Courses
March,07 March,09

Orders for Equipments/ furniture and other Fixed

Assets

April,07 Dec,09

Arrival of Orders for Equipments/ furniture and other

Fixed Assets at site.
April,07 Dec, 09
Installation and fabrication of equipments/ furniture
and other fixed assets at site.

PRESENT STATUS of the project is as given below:

1) The approval for running the courses of B.Pharma, BBA and BCA has been obtained.

2) Infrastructure as per requirement up to B.Pharma Second Year has been completed..

3) Building and Civil Construction for B.Pharma 3rd Year and Final Year and BCA and BBA
courses are in progress.

7. DETAILS OF REQUIRED INFRASTRUCTURE AND FACILITIES

7.1 LAND:

As per the norms of AICTE 1.25 acre land is required for establishing college at metro cities
including state capital. The college has already got registers land admeasuring area ……acres
lands in the name of Institution which is situated at Link Road to Varanasi Lucknow Highway
which passes through Babatpur International Airport at Varanasi. The project site is at a
distance of about 8 kms from from Railway Station and 21.5 Kms from Babatpur International
Airport.. As such the site is ideal for the project. Details of the entire land are given As per
Annexure-2 to this project report.

7.2. BUILDING & CIVIL WORK AND DEVELOPMENT WORK:

It includes Class Room, Faculty Room, Library Room, Administration Department, Tutorial
Room, Common Facility, Computer Lab, and Lab for Chemistry, Lab for Pharmacology, Lab
for Pharmaceutics, Lab for analysis-I & II and Lab for Pharma cog nosy, for Library,

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Conference Room, and Multipurpose Hall. The trust has constructed/ proposed to construct
24811 Sq.Mt carpet area in the first phase as per details given below:

Description of Building Carpet Area Cost

(Sqm) (Rs in lacs)
Science Building - Ground Floor 1117 96.06
BCA/MCA Building - Ground Floor 1117 96.06

Management Building - Ground Floor 1424 122.46

- First Floor 1424 122.46
Commerce Building - Ground Floor 1117 96.06
B.Ed - Ground Floor 1117 96.06
- First Floor 1117 96.06
Engineering College - Ground Floor 4679 402.39
- First Floor 4679 402.39
Girls Hostel 2340 201.24
Boys Hostel 4680 402.48

For more details please refer to Annexure-3 to this report.

10.3. EQUIPMENTS, COMPUTERS, FURNITRE & OTHER FIXED ASSETS:

It includes UPS, D.G. Sets, Cooler, Water Filter, A.C., Fans, DVD, T.V, Computer, Printer,
Scanner, Xerox Machine, Students Table and Chair, Faculty Table and Chair, Computer Table,
Black & White Board, Cupboards, Hostel Table & Chairs and Other furnitures etc. As per the
specified norms, the society has to incur at least Rs.5.00 crores in five years (including initial
Rs.1.00 crore) on these items. The society has proposed to invest Rs.416.28 Lacs in these items
in the first to third years as per details given below:

Year Amount( Rs in Lacs)

1 238.51
2 123.79
3 53.98
TOTAL : 416.28

10.4. LIBRARY:

As per the specified norms, the society has to incur at least Rs.60.00 lacs Library, Books,
Magazines, Library computers and Library Networking in the first 3 years of operations
(including Rs.10.00 lacs incurred initially). The Society has proposed to incur Rs.75.82 lacs on
these items in the first to third years as mentioned below:

Year Amount( Rs in Lacs)

1 61.40
2 7.21
3 7.21
TOTAL : 75.82

10.6. OTHER FACILITIES:

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 As per the specified norms, the society will be committed to provide and arrange infrastructure
facilities as per the standard of the regulatory bodies for co-curricular activities, debate, quiz,
extra curricular, sports, N.S.S. and NCC.

10.7. POWER AND WATER ARRANGEMENT:

Estimated requirement of power will be 800 KVa for which power load will be obtained from
UPVRVNL. To fulfill water requirement, the society will have its own boring 5 of 8 inch. It
will also install 8 DG Sets aggregate capacity 500 KVA as stand by arrangement.

10.8. FACULTY, TEACHING AND OTHER STAFF:

As per the norms, the Society has to ensure at least one professor, two readers and adequate no
of lecturers and supporting staff for each department/ discipline. The society has proposed
following man power for the first phase:

Year No of departments/ No of No of No of Other

Disciplines professors readers Lecturers supporting
Staff
I Science
II MCA/BCA,
III Management, 9 18 36 85
IV Commerce
V B.Ed
VI Engineering

11. PROFILE OF THE ARCHITECT AND CONTRACTOR:

The society has appointed Mr. Kishore Kapoor as Architect for the project. He is an eminent
architect of Varanasi and has very rich experience. He has been associated with the society for
more than a decade and is capable to handle such big project. The society has also appointed
Mr. Suresh Singh as Civil Contractor for the project. He is one of the best contractor of
Varanasi and has executed various big projects of Educational Institutions in Eastern U.P. He
is also associated with the society for about more than two decades. Detailed profiles of the
Architect as well as the Contractor are submitted herewith.

14. SECURITY COVERAGE:

(I) TANGIBLE SECURITY

The proposed term loan will be primarily secured by equitable montage/ hypothecation of
entire land & building, Equipments, computers, furniture, other fixed assets of the proposed
University. It will be collaterally secured by the equitable mortgage/ hypothecation of the land
& building, equipments and other fixed assets of the existing schools/colleges of the Society as
detailed below:

A) PRIMARY SECURITY

Description of the property Owner and Cost/Estimated Remarks

Mortgagor Market value
(Rs. In Lacs)
1. University land bearing Arazi No 846 Vill Sunbeam English 5.98
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 Karsna, Bachhaon, varanasi , admeasuring 121 School Society.
ares ( 0.299 acres)

2. University land bearing Arazi No 845 Vill 6.18

Karsna, Bachhaon, Varanasi , admeasuring 125 -DO-
ares ( 0.309 acres)

3. University land bearing Arazi No 821CHa - DO- 7.60

Vill Karsna, Bachhaon, Varanasi , admeasuring
154 ares ( 0.380 acres)

4. University land bearing Arazi No 821Da - DO- 19.82

Vill Karsna, Bachhaon, Varanasi , admeasuring
401 ares ( 0.991 acres)

5. University land bearing Arazi No 821Ga - DO- 40.00

Vill Karsna, Bachhaon, Varanasi , admeasuring
494.20 ares ( 2 Acres)

6. University land bearing Arazi No 821Ga - DO- 12.40

Vill Karsna, Bachhaon, Varanasi , admeasuring
252 ares or 2520 sqmt ( 0.62 Acres)

7. University land bearing Arazi No 821Ga - DO- 55.00

Vill Karsna, Bachhaon, Varanasi , admeasuring
1112.90 ares or 275 decimal ( 2.75 Acres)

8. University land at Vill -Karsna, Bachhaon, Sunbeam English 869.99

Varanasi , admeasuring (43.4995Acres) School Society. Yet
to be registered in the
name of society.
9. University Building and Civil work on the 3015.33
aforementioned land

10. Proposed Furniture, Vehicle and Equipments 654.10

TOTAL (A) 4686.40

B) COLLATERAL SECURITIES

Description of the property Owner and Cost/Estimated Remarks

Mortgagor Market value
(Rs. In Lac)
I ) ALREADY MORTGAGED
1. Plot no 854 at Vill. Karsana Post Smt. Rajrani 1.60 Valuation report dated
Bachaon Distt Varanasi, and Chawla. 16.10.2007 of Pratishilp.
construction there on

2. Plot No 821 (GHA) at Karsana and Sri Harsha 10.40 Valuation report dated
construction there on. Madhok 03.03.03 of M/s Kumar &
Associates.
3. School Building of Sunbeam Sunbeam 449.86 Valuation report dated
Varuna at Arazi No 858 mauza English 04.04.2007 of M/s
Sikraul, Pargana Shivpur City School Pratishilp.Substantial con-
Varanasi. Land admeasuring 2.47 Society. struction thereafter to be
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Acre and construction thereon. revalued. Present
estimated value Rs.600.00
4. School Building of Sunbeam Sunbeam 163.68 Valuation report dated
Annpurna, Arazi No 58/736/2 and English 04.04.2007 of M/s
59/2 at Mauza Habibpura, Pargna School Pratishilp
Dehat Amant, Ward Chetganj, Society
varanasi.
Sub Total (I) 625.54

II. TO BE MORTGAGED
1. School Building of Sunbeam Sri Deepak 345.00 Valuation report dated
Lahartara at Arazi No. 145, 146 and Madhok 04.04.2007 of M/s
148 at Mauza lahartara, Pargna Dehat Pratishilp. Substantial
Amanat, Ward Dashaswamedh, construction thereafter to
Varanasi and construction thereon. be revalued. Present
estimated value Rs.450.00
2. Part of School Building of Sunbeam 52.00 Valuation report to be
Sunbeam Bhagwanpur Arazi No. 210 English obtained. Permission from
Bhagwanpur, Lanka, Varanasi. Land School district judge to be
admeasuring 4 Biswa and Society obtained.
construction thereon 4150 sqft.

3. Part of School Building of Sunbeam 25.00 Valuation report to be

Sunbeam Bhagwanpur Arazi No. 210 English obtained. Permission from
Bhagwanpur, Lanka, Varanasi. Land School district judge to be
admeasuring 3252 sqft and Society obtained.
construction thereon 1200 sqft.

4. Part of School Building of Sunbeam 90.00 Valuation report to be

Sunbeam Bhagwanpur Arazi No. 208 English obtained. Permission from
Bhagwanpur, Lanka, Varanasi. Land School district judge to be
admeasuring 4080 sqft and Society obtained.
construction thereon 16320 sqft.

5. Part of School Building of Sri Deepak 23.00 Valuation report to be

Sunbeam Bhagwanpur Arazi No. 212 Madhok obtained. Permission from
Bhagwanpur, Lanka, Varanasi. Land district judge to be
admeasuring 986 sqft and obtained.
construction thereon 3944 sqft.

Equipments, vehicles, computers and 359.81

furnitures (WDV as on 31.03.07 as
per audited balance sheet)
Sub Total (II) 894.81
TOTAL (B): 1520.35
GRAND TOTAL (A) + (B) : 6206.75

TERM LOAN:
1) Term Loans for school(present o/s) 406.00
2) Proposed Term Loan-University 3300.00
3) Funded Interest 329.90
TOTAL DEBT 4035.90
SECURITY COVERAGE 153.79%

(II) INTANGIBLE SECURITY:

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 The proposed loan will also be secured by the personal guarantees of the promoters and others
as noted below:

Particulars Net Means

1) Sri Deepak Madhok 354.89 Lacs

2) Smt. Vijay Bharati Madhok 284.52 Lacs
3) Smt. Raj Rani Chawla 131.34 Lacs
4) Sri Harsh Madhok 294.56 Lacs
5) Sri Karan Madhok 120.08 Lacs

13. SWOT ANALYSIS:

Strength:

The main promoter Shri Deepak Mahok is well known philanthropist of Eastern Uttar Pradesh.
He is Ex. P.C.S. Officer, U.P. Cadre. And has more than 20 years of experience of outstanding
performance in education sector. He is largest player in education in private sector in Eastern
U. P. and is of large means. He is respected among elite class of the society for his vision,
commitments and management / administrative skills. He is capable to raise the required
resources for implementation of the project.

Sunbeam Group of Schools is the most popular brand in education in eastern U.P. The
promoting body is cash rich earning profits from last several years. All the schools/ colleges/
other institutes run by the society under the brand name of “Sunbeam Group of Schools” are
making profits from the very first year of operation. Future cash accruals of the society from its
existing schools/ institutes will provide adequate support to the University in case of any crisis.

The promoters have already identified and acquired requisite land as per the norms. Land
acquisition is considered to be one of the major hurdle in such project.

Promoters Contribution to the project at 41% of COP and DER at 1.31 is satisfactory.

Weakness:

New entrant Technical and management/professional education. (The promoters do not any
envisage any difficulty in view of their brand name, education scenario and market scope in the
eastern UP

Opportunity:

Demand for educational institutions is bound to grow further in view of economic development
of the country.

To start various other academic programes in future in phased manner as indicated herein
before at page no 4 of this report.

Threat:

Change in the Government policy may affect the scenario. (It is most unlikely that there might
be any change having adverse impact on the educational institutions in private sector.)

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The state government may refuse to enact an act in the State Assembly to establish the
university. (First of all such possibility is minimal. Second, in such situation the society will
start technical institutes and colleges with the affiliation/approval of regulating bodies namely
AICTE and NCTE and also with the approval from other Universities, as the proposed
institution will be adhering to the norms of the respective bodies. The degree college for
Women is already affiliated to VBS Purvanchal University.)