1.

EXECUTIVE SUMMARY-KDSA Center

1.1 Objective of the Information Memorandum

KDSA Center Pvt. Ltd (KDSA) (It is suggested that you float a SPV for this purpose) is
proposing to raise a term loan of Rs. 4 crores for development of a commercial property on
an area of ……….. Sq. ft with saleable area of ………….. sq ft. The total project cost is Rs.
crores. The project is to be funded by way of term loan of Rs. crores, equity of Rs.
crores and customer advances of Rs. crore.

1.2 Company Background – KDSA

KDSA, incorporated in …… , is promoted by:
A] Mrs. Sheila Konnanur, a Director of …….. and
B] Mr. Aneal V.Krishnamurthy,

1.3 Promoters

The promoters are:

(Pl give detailed business experience of Sheila and career profile of Aneal). The details of
project executed and ongoing projects are given in elsewhere in this report.

KDSA is developing a commercial property in Indiranagar, Bangaqlore.

(Pl give further details such as importance of indiranagar as a shopping hub, gross area
under construction, number of shops to be accommodated, type of shops which will come
up, etc.)
1.4 Shareholding Pattern & Holding Structure
SN Name Economic Interest
1. Sheila ...... %
2. Aneal V.Krishnamurthy %

TOTAL 100.00%

1.5 Organization Setup of KDSA Pvt. Ltd

 The senior management of the Company is professionally qualified with relevant

experience in the area of business.
 As on March 31, 2014 there are ...... people directly/indirectly employed by the
company. Going forward KDSA expected to have people for execution of the
project once project reached peak of the execution.
 All the construction related work will be outsourced to reputed firms, with KDSA
personnel mainly limited to supervision and project administration work.

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  The company plan to have in house marketing team which will be mainly responsible
for marketing strategy covering pricing of the various products, schedule of launch of
various products and payment schedule.

1.6 Commercial Project

 The project is FDI compliant project and fulfilled all the requisite criteria of RBI under
automatic route and hence separate approval from RBI/FIPB is not required.
 The company proposes to develop commercial and utility buildings having a
consolidated saleable area of about ....... sq.ft.
 The property will be developed in ...... phases within a timeframe of .......months
 Proposed building is planned to have all facilities viz. shopping centre, Entertainment
zone etc. This will be helpful in creating wholesome experience with Indiranagar
residents having access to all the facilities in the vicinity.
 The KDSA has decided to adopt ……. technology. It has advantage in terms of speed
……… (Optional)
 The list of key consultants and advisors hired by the company is as follows:

Consultant Scope of work

Auditors

1.7 Project Cost & Means of Finance

 The total cost of the project is Rs. crores and is proposed to be funded by term loan
of Rs. crores , equity Rs. crores and advances from customers of Rs. crores. Cost
and means of finance for the project are as follows:
(In Rs. Crores)
Phase I Phase II Phase III Total
Cost outflow of Project
Cost of Land
Infrastructure cost
Cost of Costruction -
Interest Cost

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 Phase I Phase II Phase III Total
Other Cost
Total
Means of Finance
Share holder's Funds
Term Loan-
Advance Bookings from Customers
Total
Operating Statement
Rental Income Year 1 Year 2 Year 3 Year 4
Commercial 0 0
Less:Cost
Construction Cost
Infrastructure Cost
Land Cost*
Interest Expenses
Other Cost
PBT**
PBT (%)
*Amortized in proportion to phase wise saleable area
**It is presumed that the project will take about 2 years to complete and the bank will grant a holiday
period of 2 years during which time only interest will be serviced and repayment of principal will start
thereafter.

 The promoters have brought almost entire contribution of Rs …….. crore upfront
which is predominantly used towards acquisition of land, approval cost, planning
and preliminary expenses. As of date, land required for the project is in
possession of the company and no loan has been availed for this purpose.

1.8 Approvals & Permissions

 All the key permissions and approvals for the project have received. An indicative
list of key approvals is as follows:
Approval Type Status
Location clearance by urban
development department of Govt of
Karnataka
Consent from Pollution Control Board Not applicable???
of Karnataka
Clearance from MOEF
Letter of Municipal Corporation of
Bangalore for Water Supply
Feasibility study of green building Not applicable???
concept –
KSEDCL for electricity load sanction of

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 Approval Type Status
….. MVA
Approval from Deputy Director of
Town Planning
IOD/CC for the project Received dated 17-05-2013

1.9 FSI Working

 BDA has awarded the Commencement Certificate (CC)/Plan approval for the
concerned project dated …………. Against an area of sq.ft. FSI of ………. sq.ft.
(@ …… times) is allotted.
Sr. No. Area Description In lakh Sq. In Lakh Sq.
Meter Ft.
1 Area under construction -Land Area
2 Required green space area as per rule no:……… [ ……. % of
the gross area]
3 Proposed area of project[Permissible Area/Built up area]
4 Basic FSI @ ………. x of Land Area
5 Saleable FSI
6 Loading % %
7 Area under construction
- Against FSI
- Free of FSI

1.10 Current Status

 As on date, KDSA has spent Rs. ……. crore towards the project and same is funded
out of promoter’s contribution and some advances from customers. Few
vendors have already commenced work for piling and infrastructure.
 Commencement Certificate (CC) – Received from ……………………
 Site Office :- Ready & Operational.
 Infrastructure Work :- Construction of approach is in progress.

1.11 Marketing Strategy for leasing the property

1.12 Peer Projects in Indiranagar (Pl provide details after enquiring from
sources)
Sr. Developer Project Salea Products Price Range Expected Completi
No. Name ble (Rs/Sq Ft) start of on of
area possession Project
(lakhs
sq ft)
1
2
3
4

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Sr. Developer Project Salea Products Price Range Expected Completi
No. Name ble (Rs/Sq Ft) start of on of
area possession Project
(lakhs
sq ft)
5.
6.

1.13 Construction Planning & Execution

 KDSA plan to outsource all the construction and execution related work to reputed
third party contractors. The area of construction is subject to construction cost in the
range of of Rs …….. to Rs …… Per sq Ft depending upon product.
 …………………………………….. is appointed as Project Manager (Pl provide a brief on his
experience). The scope of work covers supervision of construction process which
includes - will co-ordinate in terms of inviting, defining the criteria, short listing
prospective vendors, scheduling the work flow etc.
 He will regularly update the work status and will work in sync with KDSA on all
strategic issues.

1.14 Key Financial Parameters

PARTICULARS FY15 FY16 FY17 FY18 FY19

Rental income (Rs. crores) 0 0

Net Profit/Rental income (%)
Debt Equity Ratio (times) -
TOL/TNW(times)
Interest Coverage Ratio(times)
DSCR Ratio
Average DSCR

1.15 Funds Flow Statement

(In Rs. Crore)
Particulars FY15 FY16 FY17 FY18 FY19
Opening Cash Balance
INFLOW
Rental income 0 0
Promoters Own Contribution - - - - -
Project Loans - - - -
Other Current Liabilities (Net) - - - - -
Refund of DSRA 25.00
TOTAL (A) :

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Particulars FY15 FY16 FY17 FY18 FY19
OUTFLOW
Other Fixed Assets - - - - -
Profit & Loss Account -
Other Advances - - - - -
Land Cost - - - -
Construction Cost- - - - - -
Infrastructure Cost – General
Consultants Fees & Charges
Building Planning & Approvals
Project PR + Corp PR Expenses
Project Management Consultancy
D M A Charges
Administration Costs
Marketing Expenses
Interest on Loans
Repayment of Project Loans
Income Tax
Increase in DSRA

TOTAL (B) :

Surplus/(Deficit) (A-B)

1.16 DSCR Working

(In Rs. Crore)
Particulars FY15 FY16 FY17 FY18 FY19
Peak Loan Period
Cash Balance after Tax & Distribution
Add : Repayment of Project Loans
Add: Interest on Project Loans
Total – A
Installment of Project Loans
Interest on Project Loans
Total – B
D.S.C.R. (A/B)

Average D.S.C.R.
Average D.S.C.R. of Peak Loan Period

1.18 SWOT Analysis

CRITERIA OBSERVATION
1 Strengths 

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2 Weakness 
3 Opportunities 

4 Threats 

1.19 Indicative Term Sheet

Indicative Term Sheet- KDSA Private Ltd

1. Type of Facility Term Loan- Construction Financing Loan

2. Purpose  Construction financing of the commercial project.

3. Facility Amount  Term Loan Rs. 4 crore

4. Tenor Door to door tenor of …… years with moratorium period of

……. months.
5. Moratorium Period …… months from date of disbursement.

6. Repayment Schedule
 ...... equal quarterly instalments after moratorium
period of ....... months.

Period from date No of

of Disbursement Rs. Crore Instalments
First Year - -
Second Year
Third Year
Fourth Year
Fifth Year
Total

The utilisation of receivables are subject to waterfall

mechanism as follows:
- Construction and related expenses
- Statutory dues
- Interest
- Build-up of construction reserves for contingencies of
Rs. ....... crore
- Principal Instalment as per fund flow
- Towards build up of DSRA
- Any other expenses with permission of lenders

7. Interest Rate ……….%

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8. Processing Fees ……….% on sanctioned amount.

9. DSRA One quarter of principal repayment.

 By way of guarantee initial period of 12 months from
date of disbursement.
 Post 12 months from date of disbursement DSRA of
one quarter will be built from cash accruals of the
project.
10. Drawal Process  The loan will be drawn in tranches with minimum of
Rs. …….. crore.
 A detailed bill will be submitted towards utilization of
previous drawal at the time of request of subsequent
drawal.
 KDSA should be permitted to be reimburse the
expenses related to project which was spent out the
company’s own resources.

Security
11. Security  First charge on project land upto …… Sq. ft and
structures there on and stocks.
12. Guarantors  Personal guarantee of promoter directors