Project Report Sample Format for Bank Loan in Word

Sample Template Example of Professionally Prepared Detailed Preliminary Information Memorandum (PIM) Report For Project Financing, Loan For New Business with Financial Projections in Word / Doc / Pdf Free Download

PRELIMINARY INFORMATION MEMORANDUM (PIM)

			I	Name of the Borrower			:	M/s Atima Commercial  Pvt. Ltd
			II	1.            Regd. Office			:	51, Duncon Road, Mumbai- 400015
				2.            Location of the project				New Delhi
			III	Date of Incorporation			:	5-2-2008
	IV	Share Holding Pattern			:	Individual Shareholder				%age Shareholding
						Nivedita Commercial Pvt. Ltd.				120%
						Total				120 %
	V	Directors				Mr. Sanjay Kumar Roy Mr. Paritosh Ojha

	V	Business/Activity Prod	:	Holding and dealing in properties
	VI	Details of Limits from the banks under Multiple/ Consortium Banking  Arrangement	:	Nil, Fresh case

  

       VII     Asset Classification                                  :    New Account

      VIII :  Details of Group Companies & their banking arrangements:

Details of  Associates  and Allied  Concerns are furnished below:

IX	DIRECTORS	:
	Mr. Sanjay Kumar Roy		Director
	Mr. Nirmal Kumar Modi		Director

X

If any of them, in RBI’s Defaulter’s list :    NO

	XI	a) Facilities Desired
		Term Loan	:	Rs   165.00     crore
		Total Commitment	:	Rs. 165.00     crore

b)    Proposed Rate of Interest               : 12 % ( linked to BR)

c)    Upfront fee                                         : 0.50% of loan amount + applicable tax

	XII	Primary Security		1. Exclusive charge on the underlying Project Property (Land and Structure) with an Asset cover of 1 time of the Loan amount 2. Exclusive charge on the lease rent receivables of the  underlying Project through Escrow Mechanism
		ii) Collateral Security		Nil
		iii) Guarantee		Nil
		Moratorium		6 months
		Commercial Operation Date (COD)		October 2015
		Repayment Schedule		Payable in 154 equal monthly installment after moratorium period of 6 months

XIII

Key Financials:

The total rental receivable from the property per annum will be Rs. 24.27 Crores.

XIV      Project details

The total rentable area in the office complex is 1,19,000 sq ft, which will be leased out to following companies of Pathak Group:

Bipul Tyres Limited         :   Floors 1, 2 & 3      [51,000 sq ft]

Rolax Tyres Limited    :  Floor 2 and Basement      [27,000 sq ft]

Ludlow Polymers Limited  :  Ground Floor & Basement  [20,500 sq ft]

Ludlow Rubbers Limited   :  U Basement & Basement   [20,500 sq ft]

.    

XV     Status of tie-up of Funds :

           (i)  Source  of  Finance :

The company has approached us for term loan against securitization of the future lease rentals from the commercial complex. The total loan requirement is Rs. 165 Crores

(ii)  Promoters’ Contribution :  

  

 (iii)   Appraisal   of the project 

The Company will be executing the long term lease agreements with the Pathak Group of Companies. The agreement tenure will cover the entire repayment period and the yearly rent generated from the property will be able to cover the EMI as per financial projections attached.

The complete building project will be leased out to Pathak Group of Companies. The group’s brief profile is as under:

The Pathak Group, a fast emerging industrial conglomerate with interest in infrastructure & engineering, tyre & rubber products, sugar and electronics, has had a phenomenal growth since its inception in 1993. The able leadership of its chairman Mr Sunil K Pathak has given the Pathak Group a formidable reputation in turning around ailing industrial giants through innovative management practices. The core capability of the Pathak Group lies in identifying the opportunities and reinventing the acquired companies. Headquartered in Kolkata, the Pathak Group has a workforce of about 9000 skilled, committed and qualified professionals.

In 2003 the Group took over ailing Engineering PSU Jessop & Co Ltd and introducing innovative management policies, turned it into a growth engine in a short span of time. In 2005 the Group to

 over tyre major Ludlow India Ltd from its erstwhile promoters and settling enormous liabilities, resumed production after a hiatus of almost 7 years. Both the sectors, infrastructure and tyre, are now experiencing unprecedented boom in India. The acquired companies, in the meanwhile, have successfully wiped out the accumulated losses and consequently shed the tag of “sick company”.

The journey continues and in recent years the Group has extended its business empire overseas by acquiring  Schlegel Automotive Europe Ltd, a UK-based manufacturer of automotive sealing systems. It has further, set its foot – print in Germany by acquiring 3 companies, one each in the sealing systems, solid tyres and fastener manufacturing segments.

The Pathak Group today has a pan-India presence with manufacturing facilities at Kolkata and Sahaganj (West Bengal), Chennai (Tamil Nadu), Mysore (Karnataka) and offices in New Delhi, Mumbai, Chennai and Bangalore. Pathak Group has its overseas offices in Wasington, Kuala Lampur, Dubai and Guangxhou(China) and manufacturing units in London, and Germany . 

The Group aspires to match global standards in each segment of its operation while gratifying all its customers, employees and stakeholders

About the Lessee Companies

1.      Bipul Tyres Ltd.

Bipul Tyres Limited, Located in Patna, Bihar , India and incorporated in 1973 is into Manufacturing and marketing of a wide range of nylon bias ply tyres and butyl tubes for two and three wheelers, passenger cars , jeeps , light commercial and farm vehicles under the LUDLOW brand in Indian market and Bipul and Donin brands for export markets . In the two and three wheeler category, the company offers an unmatched choice of patterns and design constructions, catering to the different needs of its customers.

Bipul is the preferred choice of leading vehicle manufactures in India including Tata Motors Ltd., Mohon Motors Ltd., Elisha Vehicles Pvt. Ltd. , Saegal and Saegal Ltd. , India Yamaha motors Ltd., Classic Enfield Ltd. etc.

The company has entered into a Technical Aid Agreement with Palitomo Rubber Industries Ltd. of JAPAN which will give it access to the latest International technology, new product range , upgraded product quality and best processes. Bipul’s aim is to give maximum satisfaction to its customers by offering the highest standards of service excellence and world-class products .

The Company has achieved gross turnover of Rs. 844 Crores ruing financial year ending on September 31, 2014 with EBIDTA of Rs. 25.20Crores and cash profits of Rs.----------. The Company’s net worth as on September 30, 2012 was Rs. 178 Crores.

2.      Rolax Tyres Limited

Rolax Tyres Ltd (RCL) was incorporated on 9th February 1998.  Subsequent to the acquisition of Ludlow and flacon Tyres in December 2010, the Pathak Group increased its presence in the tyre industry by scooping up Rolax Tyres Ltd in Janyuary 2006. Rolax Tyres has the state of the art manufacturing capabilities for a wide variety of sizes of nylon bias tyres and butyl tubes and has been supplying its products to several large OEMs in the two wheeler segment under the brand name RACER. Rolax has also established a large export market, especially for LCV tyres and three wheeler tyres.

Since 1997, Rolax Tyres Limited has been supplying tyres and tubes to Mohon Motors Limited under the brand name RCL RACER. After supplying 600,000 tyres and tubes to Mohon by end of September 1995, RCL set up a new plant and started making 1.5 million tyres and tubes per annum.

Annualized capacity was reached by Feb 2001, a record time for the Tyre Industry. Today, RCL has expanded to a capacity of 5,00,000 Tyres &8,00,000 Tubes / month and is supplying to Mohon Motor Ltd., Kinetic, LML and has a big presence in the retail market with over 400 dealers throughout India. 

The Company has achieved gross turnover of Rs. 157.64 Crores during financial year ending on 31st March, 2013  with EBIDTA of Rs. 7.14  Crores and cash profits of Rs.        .  The Company’s networth as on March 31, 2013 was Rs. 80.4  Crores.

3.      Ludlow Polymers Limited

Formerly known as Alfa & Alfa Polymers Pvt Ltd, this 2/3 wheeler tube – manufacturing company which supplied tubes to Bipul Tyres was taken over by the Pathak Group in October, 2008. Since then, the production capacity was fine – tuned and enhanced to 6 lacs units per month – up from 2.5 lacs units per month earlier. 

The previously loss – making company was turned around under the Pathak – group within 6 months of takeover and it clocked a turnover of Rs 24 crs as on 31st March, 2012, which was a six – fold increase since takeover.

The immediate target of the company is to step – up capacity to 12 lac units per month. Parallely, it plans to undertake an expansion project of around Rs 25 crs for the manufacture of Cycle tyres/ tubes and pre – cured tread rubber.

In 2010 – 13, on a turnover of Rs 24 crs, the company achieved a EBIDTA of Rs 1.36 crs. Its net – worth for the same period stood at Rs 0.88 crs.

4.      Ludlow Rubbers Ltd.

This is the Pathak group’s latest venture to trade in tyres and tubes of cycles and rickshaws. The purpose was to cash in on the ”green environment”  awareness and high conventional use by “aam aadmi” and sports/ fitness use by the youth as also the older generation.

Considering the high recall value of the “Ludlow” brand, the tyres are being marketed under it. Given the annual market volume of more than Rs 3,000 crs, there is immense growth potential in this segment.

With the purpose of venturing into its own manufacturing, DRL has taken over a small manufacturing unit at UNA, Himachal Pradesh, where it proposes to go for an expansion soon.

The company, operating from Delhi, started its actual operations from July 12 and till Dec 12 had logged a turnover of Rs 545 lacs with an EBITDA of Rs 4.85 lacs. Its networth  stood at Rs 50 lacs.

(iv)                         About the project

The commercial complex is completely ready and was fully occupied by HDFC bank. Now HDFC has shifted its entire operation to their centralized office and hence the entire property is acquired by the Company and leased out to the Pathak Group for making their corporate headquarters in Mumbai.

(v)    Details of consultants, appointed  for various activities, along with their brief profiles are mentioned below:

Ø   

Implementation Schedule

The possession of the property will be taken by the Company by _ _  and the lease rental will start from _ _ .

           Proposed repayment schedule

By way of 154 monthly EMI of Rs. _ _  (154 installments after moratorium period of 6 months).

3.            XVI    Financial Projections

Total rentable area will be approx 1,20,000 square feet. The market rentals are in the range of 170/- to 190/- per sq ft.

		Years	2013-14	2014-15	2015-16	2016-17	2017-18	2018-19
		Duration (in months)	12	12	12	12	12	12
1		INCOME ASSUMPTIONS
	1.1	Leasable Area –Lower Basement
	1.2	Leasble area – upper basement
	1.3	Leasble area – first floor
	1.4	Leasble area – second floor
	1.5	Leasble area – third floor
	1.6	Leasble area – forth
	1.7	Rent Rate (per sq.ft./ p.m.) -
	1.8
	1.9

4.             Based on  above assumptions Profitability  has been worked out as under  :  

(INR / Lacs)
Years		2013-14	2014-15	2015-16	2016-17	2017-18	2018-19	Total
INCOME
Rent Income
TOTAL INCOME
TOTAL EXPENDITURE
Profit before Dep., Int. & Tax

Interest
Depreciation
Profit before Tax
Income Tax
Profit after Tax

XVIII    Comment on Industry Scenario with particular reference to the present project:      

           

  RMD, HO has awarded industry rating of  “ Neutral”  to Commercial Real  Estate.     

XIX     SWOT analysis

Strengths

(i)            Promoters

(ii)          Reputed Lessee : The entire building is to be leased out to Pathak Group.

(iii)         Locational Advantage  - The project site is located in the commercial hub of New Delhii and very near to Ashray Complex (BKC). The complex is 5 Kms distance from the New Delhi Airport.

Weaknesses

1.

2

XXI.     Recommendations

Proposal is palced to NBG to  to take a view for considering TL of Rs. 165 crore at ROI of 12%pa i.e.   BR+__%(tp)+__% (Applicable ROI : __% pa i.e. BR+__%(tp)+__% for “BB”  risk rated  commercial real  estate account)    repayable in  154 equal monthly instalments  after moratorium period of 6 months [ door to door tenor :12 years] with recovery of upfront fee  of 0.50% + AST  [ Applicable : 1.25% +AST]  against securitization of lease rentals to be generated from the office complex to be leased out to Pathak Group of Companies.

Relationship Manager          Sr. Rel. Manager            Dy. General Manager.

Annexure-I

Details of Associate/ Allied/ Group concerns and the facilities sanctioned to them.

XVII     PROJECTED FINANCIALS

(FY ending 31^st March / Rupees in lacs)

PROJECTED PROFIT AND LOSS
									(INR / Lacs)
		Years														Total
S.No.			Particulars
1		INCOME
	1.1	Rent Income
	1.2
	1.3
	1.4
	1.5
		TOTAL INCOME
2		DIRECT EXPENDITURE
	2.1	Maintenance Charges
	2.2	Electricity Expenses
	2.3	Diesel Expenses
	2.4	Parking Expenses (salary & other)
	2.5	Insurance Charges
		TOTAL DIRECT EXPENSES
3		INDIRECT EXPENSES
	3.1	Employees Remuneration & Benefits
	3.2	Administrative Expenses
	3.3	Marketing & Promotion Expenses
		TOTAL INDIRECT EXPENSES
		TOTAL EXPENDITURE
4		Profit before Dep., Int. & Tax
		Interest
		Depreciation
5		Profit before Tax
		Income Tax
6		Profit after Tax

PROJECTED CASH FLOW
Month		2015-16	2015-16	2016-115	2015-16	2016-17	2017-18	2018-19	2018-19	2019-20
Particulars
Opening Cash in Hand
CASH INFLOW
Promoters Contribution
- Capital	-	-	-	-	-	-	-	-	-	-
							-	-	-	-
							-	-	-	-
- Interest Free Unsecured Loan	-	-	-	-	-	-	-	-	-	-
Increase in Current Liabilities	-	-	-	-	-	-	-	-	-	-
Security Deposits from Tenants	-	-					-	-	-	-
Recovery of Loans & Advances	3,500.00	250.00	-	-	-	-	-	-	-	-
Profit before Dep., Int. & Tax (PBDIT)	-	-	-	-	-	-	-	-	-	-
Total Cash Inflow
CASH OUTFLOW
Purchase Cost	-	-	-	-	-	-	-	-	-	-
								-	-	-
HR & Admin Expenses
Marketing / Launch Expenses
Contingencies
Maintenance Charges
Electricity Expenses
Diesel Expenses	-	-	-	-
Parking Expenses (salary & other)	-	-	-	-
Insurance Charges
Indirect Expenses
Loans & Advances to Subsidiary
Finance Cost
Interest
Repayment of Secured Loan
Repayment of Unsecured Loan
Decrease in Current Liabilities
Increase in Sundry Debtors
Payment of Income Tax
Total Cash Outflow
Net Cash Inflow
Closing Cash in Hand

Annexure-II 

 

1.A.        Detailed Industry Scenario

Large Corporate Branch,        Cuffe Parade, Mumbai - 400 005

E Mail: Ph

December 15, 2012

The General Manager

CAD, HO

New Delhi

 

Reg:    M/s Atima CommercialPvt. Ltd

We enclose a proposal for ‘In principle’ sanction for Fresh Term Loan of Rs.165 Crores @ 15% p.a. and upfront fee @ 0.50% of loan amount plus applicable taxes against securitization of future lease rentals

We request for an early approval.

Dy. General Manager

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