APPRAISAL / MISSION REPORT

Allotment No : A 5065
1.0 SALIENT FEATURES :

1. PROJECT DETAILS
1.1 (i) Name of the Construction of 82 Nos of villa type row houses at Thundalam
Project Village, Ambattur Taluk, Tiruvallur District
(ii) Name of the A E F Pvt. Ltd.
Borrower
(iii) Project Category Housing
1.2 Location Town / District State
Porur, Chinglepet District Tamil Nadu
Applied for Appraised by F I
1.3 Project Cost (Rs in 28.70
crores)
1.4 Loan Amount (Rs in 10.00
crores)
1.5 Means of Finance (Rs in lacs) Percentage
1.F I loan 1000.00 35%
2. Borrower’s
contribution
 Existing equity 1000.00 35%
 Quasi equity Nil
 Unsecured loans 0.00
 Debentures Nil
3. Advances from 869.65 30%
customers
4. Loan from other Nil
banks /Fis
5. Govt grant / subsidy Nil
if any
Total 2869.65 100%
1.6 Consortium leader (In Nil
case of consortium
lending)
1.7 Rate of interest 16%(floating)
(Floating / fixed)
 During
implementation
period
 After
implementation
period
1.8 Security

HUDCO/mission report / A- / Page 1 of 16

  Project related
 Promoter’s related
 Safeguards (need
based)
Equitable mortgage of project property measuring 115897 Sq.ft.
of saleable areas of plots out of 67.22 Grounds consisting of 82
Nos. of Villa type row houses bearing Type / Plot nos. Type I-
37,44,45,46 to 59 & 1, Type-III – I to IV, Type IV-
14,15,23,30,31,35&62, Type – V, 66,67,69,71,74,76,79 to
84,7A,7B,8A & 8B, Type – VI – 10,11,18,27,34,36,61,63,60 B,
19 & 20, Type-VII -
12A,12B,13A,13B,16A,16B,17A,17B,20A,20B,21A,21B
24A,24B,25A,25B,28A,28B,29A,29B,32A,32B,33A,33B,9A,9B
comprised in Survey Nos. 5,6/1,6/2,8/1,11/1,12/1,12/2, & 13/1
at 93 Thundalam Village, Saidapet Taluk, Chengaleput District
along with development thereon. The minimum security cover
to be available at all time should not be less than 175% of the
loan amount.
1. Personal Guarantee of main promoters (i.e) Mr. RN J,, Mrs. B
J and Mr. J A
2. Corporate Guarantee of M/s. S Developers & Promoters Pvt
Ltd
1. Post dated cheques for repayment of principal and interest
for the entire repayment period.
2. Opening and maintenance of Escrow Account as per the
extent of F I norms.
3. Assignment of all insurance policies relating to the project in
favour of F I.
4. General Power of Attorney in favour of F I.

1.9 a) Project Construction 5 quarters

period
b) Loan repayment 10 quarters
period
c) Moratorium period -
(if any)
d) Total period 15 quarters
including moratorium/
project period

HUDCO/mission report / A- / Page 2 of 16

 1.10 Loan drawal program 5 quarters
(in Qtrs) Release Quarter Amount
installment
No.
1 27

2 160

3 152

4 185

5 476

Total 1000

2 DETAILS OF BORROWER
2.1 Status of the Borrower Pvt. Ltd. Company
(Pvt. Ltd Company,
Public Ltd Company
etc)

2.2 Legal Eligibility Eligible

2.3 Borrowing Power Available

2.4 Date of incorporation 10.6.1992

and date of
commencement of
business
(applicable for Public
Ltd Companies)
2.5 Name of the Chairman / Mr.T G B, Director & CEO ./contact No. 24944378
MD/CEO of Borrower / agni@dishnetdsl.net
contact No./E.Mail
2.6 (a) Listed Company / Not Applicable
Unlisted company
(give details such as
BSE, NSE, quoted
value, highest
lowest in the past 52
weeks etc)

(b) If proposed for NA

listing, give details
2.7 Name of Group S Developers & Promoters Pvt Ltd

2.8 Net worth of Borrower 18.97 crores as per Provisional Balance Sheet (2008-09)
as on 31.3.09
HUDCO/mission report / A- / Page 3 of 16
 2.9 Net worth of each Mr R N J – Rs.277.59 lakhs
Promoter Directors as Mrs B J – Rs. 713.25 lakhs
on 31.3.09 Mr J A – Rs.93.90 lakhs
Mr T G B – Rs.336.89 lakhs
2.10 Assessment of The agency is in to the field of real estate & building construction
borrower’s main line of and has successfully developed/ completed 17 projects so far in
business different locations in the City of Chennai.
2.11 Whether the Borrower’s No
name or its Director’s
name is in the list of
RBI defaulters?
2.12 Rating by rating agency Not rated
(i) Borrower
(ii) Project

Track record of the

Borrower
Project executed so far 15 projects in different locations in the city of Chennai
: The loan outstanding against banks /Fis as per provisional Balance
Finance availed from Sheet (2008-09)
FIs / Bank (indicate Rs in lakhs
sanctioned & released
amount)
Default if any (whether Nil
the loans classified as
standard /NPA by other
Fis / bankers during
previous three years)
Any DRT / Legal cases Nil
pending
3 F I’s EXPOSURE TO THE BORROWER - It is a new agency
3.1 Total No. of Schemes No of schemes Loan amount sanctioned (Rs in
sanctioned with loan crores)
amount to the Borrower
3.2 Loan amount released First scheme of agency, hence not applicable
3.3 Loan amount
outstanding
3.4 Default status
3.5  Exposure to Group
Companies
 Default Status (of
group companies)
4 F I’s EXPOSURE TO THE STATE (IN CASE OF GOVT GUARANTEE)

NOT APPLICABLE
NOT APPLICABLE

HUDCO/mission report / A- / Page 4 of 16

 5. PROJECT PARTICULARS
5.1 Proposed components Construction of 82 units of individual row type houses ranging from
1315 sq.ft. to 2515 sq.ft of built-up area in a plot area of 800 sq.ft to
2850 sq.ft
5.2 Implementing Agency A E F (P) Ltd.
5.3 Consultants. Architect /Engineering /PMC –B
Engineers
& Contractors

Finance - M/s S & Associates

5.4 Units cost / No. of units Rs.1839/- per sq.ft/ 82 units in six different types.
5.5 Tariff / User charges / Rs.3250 per Sq.Ft sale price initially
Toll / Sale price
5.6 Expenditure incurred Rs. 7.96 lakhs (as per CA certificate dated 24.06.2009 )
on the project so far

6 FINANCIAL INDICATORS FOR THE PROJECT

6.1 Debt Equity Ratio, including proposed 1:1
loan
6.2 Financial projections
6.2.1 Break even point as percentage of out 57%
put
6.2.2 FIRR 23%
6.2.3 DSCR
Min Average Maximum
Base Case 1.21 3.10 4.44
Sensitivity Analysis
(a) 5% decrease in income 1.11 2.89 4.48
(b) 10% decrease in income 1.17 2.80 4.48
(c) Increase in interest
rate 1.20 3.05 4.37
(d) 5% decrease in income
and increase in expen 0.63 2.76 4.48

6.2.4 Payback period 11th – 12th quarter

6.2.5 Fixed Asset coverage ratio
For the project 287%
Overall ratio 227%
6.2.6 Return on equity 277%
7 FINANCIAL INDICATORS FOR THE BORROWER
7.1 Debt Equity Ratio (Existing) 0.35:1
7.2 DSCR (Existing) Not applicable

HUDCO/mission report / A- / Page 5 of 16

 7.3 Overall Debt Equity Ratio 1.35:1

Debt (Ex) 3.51 cr. Sh. Cap. 10.00

cr.
Debt (pro.) 10.00 cr.
Total 13.51 cr. Total 10.00
cr.

8 Site Inspection
 Presanction, if any (by Mission Mission Team inspected the site on
Team) 04.05.2009
 Post sanction (Proposed) Before release of each loan installment
9 Milestones
 Date of receipt of the Proposal 09.4.09
 Date of registration of schemes 01.5.09
 Date of last information received 30.06.2009
from the borrower

2.0 BACKGROUND

M/s. A E F Pvt Ltd was established in the year 1992 with the objective of quality
construction and real estate development in Chennai. This is a Private Limited Company
with the first Promoter Directors of the Company being Mr. R N J and Ms B P. The
company has successfully completed 17 projects with a total built up area of about 2.50
lakhs sq.ft of residential and commercial complex in and around Chennai. The company
has earned a reputation of quality in construction and timely completion of projects. The
company has a team of experienced technical, financial and marketing discipline. As per
the audited accounts for 31.12.2008, agency is having a net worth Rs. 18.97 Crs and the
financial details of the agency are as given in the clause 7.5 under financial Assessment

3.0 PROMOTERS ASSESSMENT

 Promoters profile :

The Promoter Director Mr R N J is the Chairman of the Company.

 Share holding pattern

The existing share holding pattern is as under:

M/s. S Developers & Promoters Pvt. Ltd. 51.61%

Mr. R N J 17.45%
Mrs B J 4.65%
Mr. A 16.48%
Others 9.81%

HUDCO/mission report / A- / Page 6 of 16

 Management Structure :

1 Mr R N J Chairman
2 Mrs B J Director
3 Mr T G B Director
4 Mr A S Director
5 Mr G P Nesarajan Director
6 Dr Ishari K Ganesh Director
7 Mr J A Director

 Organisation Structure :
1 Mr T G B Director & CEO
2 Mr P Selvam General Manager
3 Mr N Akshay Kumar Manager
4 Mr Veeraputhiran Chief Engineer
5 Mr N Chandrasekar AGM – Projects
6 Mrs Ramani Ravikumar Accounts Officer

 Group Companies Profile :

M/s. A E F Pvt Ltd is a subsidiary company of M/s S Developers & Promoters Pvt Ltd
which has a stake of 51.61% in M/s. AEFPL. M/s. S Developers & Promoters Pvt Ltd
was incorporated on 17.5.96 by the promoter director Mr R N J for acquisition and
development of lands, construction of multiplex complexes, etc. The present directors of
the company are Mr R N J, Ms B J, Mr T G B and Mr A. The networth of the company
as on 31.3.09 is Rs.1.98 Crs

 Existing guarantee given by the applicant / details of guarantees invoked/

revoked.

Mr R N J, promoter director and Mr T G B, Director of M/s. AEFPL had given personal

guarantee for the overdraft facility availed from Andhra Bank, Adyar for the company to
the extent of Rs.2.80 Crs.

Dr Ishari K Ganesh, one of the director of M/s. AEFPL has given personal guarantee for
term loans availed by Vels Group of Educational Institutions from Bank of Baroda and
ICICI Bank to the extent of Rs.35 Crs

Mr A S, Director of M/s. AEFPL has given personal guarantee for a project loan to the
extent of Rs.2 Crs availed from Vijaya Bank by his friend .

A certificate that the directors of the company have no litigation pending against them
duly certified by the CA firm M/s. S Associates is furnished.

HUDCO/mission report / A- / Page 7 of 16

 4.0 TECHNICAL ASSESSMENT

Project Location
The Fairy Land site is located in Thundalam Village Ambattur Taluk & Tiruvallur
District at a distance of about 18 km from the heart of Chennai town and about 4 km
from Porur Junction. It is located behind Sri Ramachandra Medical University.

Site Analysis
The project is being developed on a single piece of contiguous land of about 5.86
acres. About 64% of the land area is used for construction of villas and 36% of the land
area is kept for common area consisting of roads, common amenities, parks,
administrative buildings, club, swimming pool etc. The 82 houses taken up for F I
funding are of individual villa type duplex houses, with different elevation, land area and
built-in area.

Proposed project components/area-break-up detail

Type Plot Nos No. of units Land area Built-up
Area (in
sq.ft)
I 37, 44, 45, 46 to 59 & 18 36103 44466
1
III I to IV 4 8800 10220
IV 14, 15, 23, 30, 31, 7 14000 17332
35, 62
V 66, 67, 69, 71, 74, 76, 16 14110 21765
79, 80, 81, 82, 83, 84,
7A, 7B, 8A, 8B
VI 10, 11, 18, 27, 34, 36, 11 17004 23309
61, 63, 60B, 19, 20
VII 12A, 12B, 13A, 13B, 26 25880 38948
16A, 16B, 17A, 17B,
20A, 20B, 21A, 21B,
24A, 24B, 25A, 25B,
28A, 28B, 29A, 29B,
32A, 32B, 33A, 33B,
9A, 9B
Total 82 115897 156040

It has been proposed to construct the colony as self-contained with its own infrastructure
facilities with the following facilities:-
 Water Supply
 Sewerage
 Electricity
 Drainage

System/Technology

Construction will be carried out as per standard building code and disaster
resistant technologies would be incorporated in the design system/technology. The
HUDCO/mission report / A- / Page 8 of 16
agency is executing the work through contractors and exercising supervision by its own
to maintain quality.

Features of the project

Wall covering: The exterior finished with weather coat, interior finished with
putty and emulsion paint

Flooring : The entire house with vitrified tiles

Doors & Windows: Ornamental main door with teak and sal wood doors and
windows with high quality fittings and locks

Kitchen: The spacious kitchen is provided with polished granite

platform with polished granite platform with stainless steel sink

Toilets: Western style water closer and wash basin with designer
ceramic tile wall and flooring. Good quality chromium placed
bathroom fixtures

Electrical: Copper wiring in concealed PVC conduits. Adequate

provisions for AC, telephone, TV, and geyser power points with
phase changer

Infrastructure:
Water supply : Adequate measures to ensure continuous supply of water
through individual borewell, overhead tank.

Power supply : A 500 KVA transformer has been provided inside the project
land to provide power to the proposed 105 houses

5.0. DEMAND ASSESSMENT

The agency has a dedicated clientele based on their 15 year period of real estate
development. Since this project is targeted at high end buyer, the profile is NRI,HNI,
businessman etc. who can afford an individual project. The scheme offers villas for wide
price range average Sale price of Rs.100 lakhs . Ranging from Rs 80 Lakhs to Rs.120
Lakhs The agency has already booked 36 houses in the first year itself in the overall project.
The agency has tied-up with several banks for effecting upto 75% of the loan to prospective
buyers.

Since the land was bought by the agency in the year 2005 at a lower cost, they are in a
position to wait and sell in phases to get the best price. Demand assessment has been done by
ITCOT Consultancy & Services Ltd which has indicated good demand for the proposed
Villa houses in the price band of Rs.2900 – Rs.3250 per sq.ft.

The agency has proposed to sell at Rs.3250/- per sft in the first instance. However, the cost
works out to Rs.1839/- sft and the agency has an adequate cushion to provide rebates to
speed up the sales.

HUDCO/mission report / A- / Page 9 of 16

 6.0. PROJECT COST AND MEANS OF FINANCE
Component-wise break up of the project cost:
(Rupees in lakhs)
Land acquisition 110.81
Land Development 351.08
Construction cost 2075.33
A&S Expenses 194.03
Interest during construction Approximate) 132.40
Front end fees 6.00
Total 2869.65
Reasonability of cost
Land cost
Guideline value of the land is Rs.200 per Sq.ft. Registered value of the land is Rs.96.79 lacs
@ Rs.65 per Sq.ft. As per the Report of ITCOT consultancy and services Ltd, market value
of plots in this locality is around Rs.950-Rs.1200 per sq.ft.

For the purpose of project cost registered value of land including registration charges
is considered which is reasonable. However valuation will be done by F I empanelled
valuer before release of loan for the purpose of Security.

Development cost
Land development including Sewerage Treatment Plant, RO plant for water treatment etc at
a cost of Rs.350.00 lacs is reasonable
Construction cost
Construction cost of Rs.1330 per Sq.ft is reasonable considering the specifications proposed

Means of finance
Rs in lakhs
F I loan 1000.00
Borrower’s 1000.00
contribution
Advances from 869.65
customers
Total 2869.65

7.0 FINANCIAL ASSESSMENT

7.1 Details of revenue streams

Total no. of units - 82 (156040 sq.ft)
Sale price per unit - Rs. 3250 per Sq.Ft
Total Sale Value - Rs. 8,2000 lakhs

Sales have already started. 12 flats have already been sold/ booked in the layout.
Sales is expected to be completed within say 3 years of completion of the project

7.2 Profitability projections of project

A sales realization of Rs.8200 lakhs (including advances from buyers during
HUDCO/mission report / A- / Page 10 of 16
 project implementation period) for 82 flats out of a project expenditure of
Rs.2869.65 lakhs has been indicated. An IRR of 23% has been indicated

Profit before Tax – Rs. 5,380 lacs

Profit After tax - Rs. 4,300 lacs (Tax rate net 20%)

7.3 Cash flow assumptions

Sale Price of Rs.100 Lakhs Per unit assumed.

Sale price is indicated as Rs.3250/- per sq.ft against the cost of Rs.1839 per sq.ft.
Increase in future sale price has not been considered in the cash flow.

7.4 F I’s comments on assumptions

Sale price of Rs.3250/- per sq.ft appears to be reasonable. As per Demand

assessment report of ITCOT Consultancy & Services Ltd, there is good demand
for the proposed houses in the price band of Rs.2900 – Rs.3250 per sq.ft

7.5 Financial performance of agency (past 3 years) / if agency is an SPV / new agency,
then

M/s. A E F Pvt Ltd (subsidiary of M/s. S Developers & Promoters Pvt Ltd)

Rs in lakhs
Particulars 2008-2009 2007-2008 2006-2007 2005-2006
(Provisional)
Sources
Share 1000.00 353.83 353.84 352.69
Capital
Share
Application
Money
Reserves & 897.58 505.13 101.99 62.91
Surplus
Net Worth 1897.58 858.96 455.83 415.60
Secured 350.85 603.66 327.11 81.73
Loans
Unsecured 0.710 3.10 3.10
Loans
Total Loan 350.85 604.36 330.21 84.83
Funds
Total 2248.43 1463.32 786.04 500.43
Application of funds
Net Fixed 195.73 130.14 129.01 143.94
Assets
Investments 25.60 14.00 -
Current 4273.02 5343.68 2827.79 1445.67
Assets,
HUDCO/mission report / A- / Page 11 of 16
Loans &
Advances
Current 2245.92 4024.50 2170.76 1089.18
Liabilities &
Provisions
Net Current 2027.10 1319.18 657.03 356.49
Assets
Total 2248.43 1463.32 786.04 500.43
P & L Account
Income 2389.54 1520.08 484.06 852.94
Expenditure 1313.21 958.64 379.53 756.34
PBDIT 1076.33 561.44 104.53 96.60
Depreciation 16.34 15.30 13.83 81.95
PBIT 1059.99 546.14 90.70 70.65
Interest & 44.30 78.84 23.40 11.30
Finance
Charges
PBT 1015.69 467.30 67.30 70.65
Profit after 892.46 403.14 39.08 47.61
Tax
Profit 505.13 101.99 62.91 15.30
brought from
last year
Less: 750.00 - - -
transfer to
general
reserve
Net Profit 647.59 505.13 101.99 62.91
after tax
Net Profit 42.51% 30.74% 13.9% 8.28%
Ratio
(%)
Current 1.90 1.33 1.30 1.33
Ratio
(times)
Fixed Assets 0.55 0.22 0.39 1.70
Coverage
Ratio (times)
Debt/equity 0.18 0.70 0.72 0.20
ratio (times)

7.6 Analysis of Financial Performance

 Net worth of the company has been increasing during the last 3 years and there
is a quantum jump in the net worth during current financial year ( from
Rs.858.96 lacs to Rs.1897.58 lacs)

HUDCO/mission report / A- / Page 12 of 16

  Net profit ratio has been steadily increasing.

 Debt equity ratio is within the norms of F I

7.7 Any qualifying remarks / notes in the annual reports – Nil

7.8 Contingent liabilities in the annual report - Nil

7.9  Litigation / contingent liability if any - Nil

 Income tax demands against which the applicant has gone in
Appeal - Nil
 Sales Tax Demands against which the applicant has gone in
Appeal - Nil
 Customs / Excise demands under dispute, not provided for
Others – Nil

7.10 Confidential report form other Bankers / Fis

The credit information from Andhra Bank, Mowbrays Road is yet to be received
and suitable condition incorporated in this regard.

8.0 LEGAL APPRAISAL

 The eligibility of the borrower to raise loan from F I

The agency is eligible to take up the project under Clause III (A) of MOA. The
agency is also empowered to mortgage the property and borrow under Clause III
(B) (35) of Memorandum and Articles of Association and clause 16 of Articles of
association

 Examination of land documents

M/s. ICES is the original owner of the property and obtained approval for
subdivision of the property and had executed a power of attorney with S
Developers & Promoters Pvt Ltd for transfer of 67.22 grounds as per the approved
lay out excluding lands gifted for parks and roads out of the total extent of 5.86
acres comprised in Survey No.s. 5, 6/1, 6/2, 8/1, 11/1, 12/1, 12/2 and 13/1 of 93
Thundalam Village, Saidapet Taluk, Chengleput District and S Developers &
Promoters Pvt Ltd as the power holder had executed a sale deed with A E F Pvt
Ltd for transfer of this property on 24.10.05. Out of the total 105 residential plots ,
the agency is availing loan for construction of dwelling units in 82 plots and for
the development works.

The detailed examination of the land documents would be done by the F I

empanelled advocate

 Security – as per Item 1.8

HUDCO/mission report / A- / Page 13 of 16
 9.0. RISK ANALYSIS AND MITIGATION MEASURES

RISKS MITIGATIONS
Construction The agency has completed many residential and other civil
projects. The official contractor for all projects undergtaken
by the agency is promoted by Shri G P Nesarajan who is also
a director of the company.
Marketability Though there is a downtrend in real estate sector because of
the economic slowdown, the market is expected to pick up
with a stable Government at the center and concessions
expected for construction sector in the forthcoming budget.
Further, the agency has considerable cushion in the costing
and sale price to take care of market fluctuation.
Environmental risk There is no environmental risk

10.0 ENVIRONMENTAL / SOCIAL IMPACT (EA&SIA)

 Environmental / social impact, if any

The project will have positive impact on the Environment & the society

 Environmental Pollution Control Measures

It is a residential development with construction of 105 units. Sewage disposal is
proposed through a Sewage Treatment Plant. Rain water harvesting system will be
incorporated

 Rehabitation and Resettlment Plan – Not Applicable

 Status of Government Consent - Not Applicable

11.0 STATUS OF STATUTORY COMPLIANCES / APPROVALS / AGREEMENTS

 Planning plan approval from CMDA and local panchayat is available.

12.0 ISSUES FOR CONSIDERATION OF PAC (IF ANY)

NIL

HUDCO/mission report / A- / Page 14 of 16

13.0 Evaluation & Recommendation

The scheme for a loan amount of Rs.1000.00 lacs has been appraised by the Mission
team and accordingly the scheme is recommended for sanction subject to the following
conditions in addition to the standard terms & conditions:
1. Personal Guarantee of main promoters (i.e) Mr. RN J , Mrs. B J and Mr. J A
2. Corporate Guarantee of M/s. S Developers & Promoters Pvt Ltd
3. Post dated cheques for principal and interest for the entire repayment period.
4. Agency should open a separate “Escrow Account” and should ensure to maintain
one quarter balance after release of last installment and during construction the
Interest During Construction (IDC) will be deducted and adjusted from the release
at the end of each quarter to the extent provided.
5. Power of Attorney in favour of F I to sell the project assets.
6. Assignment of insurance policies relating to Project in favour of F I.
7. Furnishing of an Undertaking to bear expenses in connection with Title
Investigation, Valuation, Due Diligence exercise, vetting of documents etc.
8. The loan is subject to satisfactory legal report by F I’s empanelled advocate.
9. F I will take on mortgage of project property only after the title to the property in
favour of present owner and developer has been cleared by Panel Advocate in
the legal opinion to be obtained. Further the borrower shall undertake to
comply/furnish the duly executed documents as suggested by the panel advocate
10. Structural Engineers certificate regarding structural safety of building and that
safety precaution have been incorporated as per relevant IS provisions and water
quality report before release of loan for construction.
11. Satisfactory performance report from Andhra Bank , Mowbrays road
Branch & ICICI Bank for hire purchase loan

Standard Terms and Conditions:-

1. The borrowing agency shall submit undertaking:

 That it will not repay the unsecured loan/deposit taken from friends, associates,
group companies etc. till F I loan is repaid in full.
 That the debt equity ratio will not exceed more than 1.5:1 at any stage.
 That it will not change capital structure without prior written permission of F I.
 That it will bear any cost overrun due to any reason from its own sources.
 That it will not appropriate or use any receipts accruing under the instant project for
any other purpose till F I loan with other dues (if any) are repaid.
 That it shall furnish consent from its designated banker (not a cooperative bank),
through which all monies released by F I from time to time to borrower shall be
routed, to the effect that it shall not exercise its right of general lien & set-off as
available to it u/s 171 of the Indian Contract Act against monies released by F I.
 That none of the Director’s Name(s) is appearing in defaulter list of RBI, nor has in
any case been convicted or any case is pending against him in any
Court/Tribunal/Judicial Authority to the best of information is under investigation
by any authority. And that the company /Promoter(s)/Director(s) are not involved
in any economic offence.
HUDCO/mission report / A- / Page 15 of 16
 That it has obtained/will obtain, if not obtained all required statutory approvals for
implementing the project and abide by the conditions contained therein.
 That in case of shortfall in revenue generation for repayment of F I dues, the agency
will make it good from their other sources.

2. The borrowing agency shall arrange to have F I’s charge registered with the office
of Registrar of Companies under the provisions of Section 125 of the Indian
Companies Act, 1956 within the stipulated period and submit the copy of the
Certificate of Registration of charge for F I’s record.

3. F I shall have the right to recall the loan outstanding in case of any
misrepresentation/suspension of information subsequently noticed.

4. The borrower shall be required to obtain prior written permission from F I in case
of any sale of the project property or part thereof.

5. In the event of borrower committing default on the repayment of loan or payment

of interest on due dates, F I shall have an unqualified right to disclose the name of
the firm, its group companies and its directors as willful defaulter to RBI/CIBIL.

6. F I reserves the right to modify the security package and other terms and
conditions at any stage even during the repayment period.

7. Stamp duty, other fees & charges payable on creation of mortgage including title
investigation of the properties to be mortgaged and/or other securities under law
& execution of loan documents will be borne by agency. The application fee paid
to F I is non-refundable.

8. The agency shall obtain permission from F I in writing before

selling/transferring/letting/alienating or otherwise handing over the possession of
any plots/ residential units etc.

9. The agency shall submit statutory auditors certificate for expenditure incurred on
the project and for the existing debt equity ratio of the company including the
proposed loan from F I.

10. Commitment that the agency will bring in funds from its own resources if the
advances from customers beyond 15% of the project cost does not materialize.

11. Satisfactory report from Andhra Bank & for the hire purchase loan lending
institution.

ACP AFO

ED

HUDCO/mission report / A- / Page 16 of 16