Graviti Ra

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IndusInd Bank Ltd
Date:28-Jun-2023 Date of meeting: Agenda No:
Risk Advice for Sanction / Approval of Facilities by Corporate Office Credit Committee
Location: Hyderabad
Segment: CCBG-Corporate Banking (Large Corporates)
Lead RM Krishnan Srinivasan
Relationship Manager Sarthak Goyal
Relationship:
Zonal Head Vivek Kejriwal
Unit Head Manish Modi
Credit-Risk Analyst: Abhishek Shetty, Shashank Rao
I. Borrower Profile
Constitution:32_Private Non-Financial Corporations
Name: Graviti Pharmaceuticals Private Limited
Listing Status:Unlisted
Industry: BE-PHARMACEUTICAL AND MEDICAL GOODS ( 52313 ) Availing Credit limits from us since:New to Bank
Nature Of Business: formulations PAN: AALCA2773N
Banking Arrangement: Multiple Banking
Asset Classification:Standard (STD)
Participant Banks: Axis Bank,IndusInd Bank
Promoters:Yashoda Healthcare Services Private Limited, Dheeraj
Group, if any:Yashoda Hospital Group
Kumar Gorukanti, Suguna Raman
Purpose:Fresh Key People:Mr. Dheeraj Kumar Gorukanti. Mrs. Suguna Raman.
Date of last review / renewal:Not Applicable Due Date for next review:30-Jun-2024
Interim Date:NA Date of Sanction: NA
Activity: Manufacturing MSME Classification: NA
URC Available: NA URC Number: NA
CME No Project Finance Related No
Real Estate No Priority Sector No
Commodity No
Balance Transfer/Take-Over:No
ESG Sector: Non ESG ESG Sub-Sector: Non ESG sector
LEI Number: 335800WPFLIG49D7HH24 LEI Date of Expiry: 18-May-2024
ESMS Applicable flag : YES ESMS Initiated Flag : NO
ESMS Reference Number: ESMS-3613 ESMS Approval Stage: APPROVE
Industry Classification: Others
Lead Initiation Date : 16-Mar-2023
} Agreed to e-sign/stamp : No
Graviti Pharmaceuticals Private Limited (GPPL), rated 'CARE A' is a subsidiary of Yashoda Healthcare Services Private Limited (YHSPL), rated
CRISIL AA-. GPPL, incorporated in 2012, based at Hyderabad, Telangana, is a research-focused formulation company established to produce
complex generics in the form of oral solid dosage formulations of the highest quality, primarily for the US markets.
Operations of company are specially focused on modified-release, bio & stability sensitive molecules and novel drug delivery platforms. At
present, the manufacturing capacity of the company is 3.2 billion tablets per annum.
II. Proposal
A. Sanction For
-Term Loan of Rs.100 crore towards capex
-Working capital limits of Rs.10 Crores
-Forward cover/derivative with PFE/MTM Rs 4 Crs
-Limit for forex and interest rate derivative contract against Term Loan of Rs 100 Crs, with PFE/MTM of 22 Crs
B. Approval For
Deviation from net worth policy and acceptance of CA certified net worth statements in the format provided by guarantors.
ANY OTHER DEVIATION
C. Noting For
Facility Details
Amounts In crores
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Existing Existing Proposed Proposed Increase -

Facility Type - Desc
Amount(CCY) Amount(INR) Amount(CCY) Amount(INR) Decrease
Cash Credit - - INR 10.00 10.00 10.00
Long Term Loan - - INR 100.00 100.00 100.00
INR 4.00 4.00
Notional: 0 Notional: 0
Forward Cover Limit - - 4.00
PFE: 4 PFE: 4
MTM: 4 MTM: 4
INR 22.00 22.00
Interest Rate Notional: 0 Notional: 0
- - 22.00
Derivative PFE: 22 PFE: 22
MTM: 22 MTM: 22
Credit Exposure 0.00 136.00 136.00
Total Sanctioned
0.00 136.00 136.00
Limit
Final pricing to be approved by CCBG-Head, basis pricing policy.

Proposed RORWA : 2.52% (higher than the minimum threshold)
III. Credit Rating

A. Internal Credit Rating (ICR)
Parameter Existing Proposed
Final Rating NA IB4+
Base Year NA 2022
Override (Y/N) NA N
No of grades override NA NA
Justification for Notch up /override NA NA
B. External Rating
Rating Agency Rating Scale Rating Rating Date Outlook Amount
CARE Long Term A 03-Jan-2023 Stable 207.00
CARE Short Term A1 03-Jan-2023 Stable 60.00
Internal rating- IB3 ????? OVERRIDE
As per CARE Rating rationale dated 3rd Jan 2023,
Ratings assigned to the company factor strong parentage, satisfactory operations for over two years, improvement in financial performance
in 8MFY23 and comfortable capital structure. The ratings also draw strength from launch of new molecules, increased Abbreviated new drug
application (ANDA) filing along with favorable demand-supply scenario of the industry. Rating, however, is offset due to limited track record
of operations of the company along with geographical and customer concentration risk. Further with the entire operations being carried out
from single manufacturing unit exposes the company to significant regulatory risk associated with the pharmaceutical industry coupled with
intense competition and resultant pricing pressure in the export market.
Key Rating Strengths:

Strong parentage: GPPL is a subsidiary of Yashoda Healthcare Services Private Limited (YHSPL). YHSPL is an established player in the
Hyderabad region, operating three large multi-specialty hospitals with the current capacity of ~1800 beds. The hospital has a long
operational track record of about 30 years in the area of tertiary and quaternary healthcare. The hospitals have a premier pulmonology set
up which supported healthy patient inflow. The hospital has branches at Secunderabad, Malakpet and Hitech city, all of them being located in
Hyderabad. The recently opened branch at Hitech city is one of the largest medical facilities and will be spread over 20 lakhs sq. ft. with
potential capacity of 2000 beds (currently operational 300 beds). All of its branches are NABH and NABL accredited. During FY22, YHSPL has
clocked total operating income of Rs. 1,474.66 crore and has reported PBILDT% of 38.95% while holding strong liquidity of ~Rs. 1,240 crore
in the form of cash and liquid funds. Through GPPL, YHSPL has successfully forayed into the pharmaceutical business.
Commencement of operations without time and cost overrun: Company commenced it commercial operations without time and cost
overrun. The total envisaged cost of the project was about Rs 308.75 crore to be funded by way of debt to equity of 1.48x (promoter’s
contribution of Rs 125.50 crore and the balance Rs 185.25 crore by way of bank borrowings) and the commencement of operations was
expected to be by April 2020. However, company achieved commercial operation date (COD) by June 2018 viz. 22 months ahead of the
schedule. The actual cost of the project came to be about Rs 284.30 crore funded by way of debt to equity of 1.30x (promoter’s contribution
of Rs 123.74 crore and term loan of Rs 160.56 crore). The facility received US FDA approval in October 2017.
Incremental filing of ANDAs resulting in improved diversification: GPPL is research focused formulation firm catering primarily to US
market. The company has been spending about 8-9% of its revenue in R&D activity. Company has filed, till November 2022, 19 molecules
out of which 10 have been commercialised, 4 have received approval and 5 are under approval. Further, 13 other molecules are under
various stages of development. Company plans to file 6-7 ANDAs every year.
Healthy margin profile on account of favourable contract structure; margins to improve further: GPPL has a revenue model which
allows it to have healthy margin profile. Currently company caters only to US market. In US market company through its marketing partners
sells its drugs. Company sells drugs to its marketing partner on transfer price and it receives the payment of the same within 45 days from
such transfer. Further, when the marketing partners sells the drugs GPPL receives its share of profit. On account of the aforementioned
contract structure with its marketing partners the company’s PBILDT margin, barring FY22, had remained healthy of about 30%. In FY22, on
account of pricing pressure for its anti-cholesterol molecule company revenue and profitability declined. PBILDT margin for FY22 declined to
7.26% from ~29% in FY21. However, during 8MFY23 the same has again improved to 22.01%.
Moderation in TOI during FY22 albeit the same has improved during 8MFY23: GPPL commenced operations from October 2018. For
FY19 company booked revenue of Rs 64 crore (operated for six months) and the same was scaled up to about Rs 259 crore in FY21. Till FY21
company was generating 100% revenue from only one molecule viz. anti-cholesterol. However, in FY22, there was pricing pressure in the US
market for the anti- cholesterol drug and the same has resulted in moderation of revenue to Rs 175 crore and PBILDT margin to 7.23%. Over
the years, company has been actively engaged in research and development for its other molecules in order to diversify its revenue. This
resulted in improved performance during 8MFY23 for the company where company successfully commercialized six more molecules and has
booked revenue of about Rs 172 crore, generated out of improved diversification. The additional commercialized molecules pertain to various
therapeutic segments. Top five products contributed to ~96% of company’s total operating income during 8MFY23.
Comfortable capital structure: Capital structure of GPPL remained comfortable with overall gearing improved, as on March 31, 2022, to
0.94x as against 0.95x as on March 31, 2021. However due to moderation in overall performance other debt coverage indicators like total
debt to GCA and Interest coverage deteriorated and stood at 5.30x (PY:2.80x) and 1.05x (PY: 5.04x) in FY22. With the improvement in
performance in 8MFY23 CARE Ratings expects improvement in overall capital structure of the company going forward.
Key Rating Weakness:
Geographical and customer concentration risk: GPPL is 100% export-oriented firm, and its entire revenue is generated from US market
which exposes company to geographical concentration risk. On account of geographical concentration to one market, the performance for
FY22 got negatively impacted when the pricing pressure was high in the US market. Further, till FY22 company had only one major customer
from whom more than 90% of its sales were derived which exposed company to customer concentration. However, during 8MFY23, company
has successfully added three more reputed customers which mitigates the customer concentration risk to some extent.
Limited track record of operation in highly regulated market: GPPL has limited track record in pharma industry. Company commenced
operations in FY19 which provides operational track record of four years. Though the company has grown well however operational track
record remains limited. Further, US being a highly regulated market, any adverse observation by USFDA inspection may negatively impact
revenue and profitability of the company.
Liquidity: Strong
The liquidity position of the company is strong with strong accruals against debt repayment obligations. Total term debt outstanding as on
March 31, 2022 was Rs 146.69 crore. During FY23 company has debt repayment obligations of Rs 18.52 crore out of which company has
already repaid Rs 9.26 crore till September 2022. As on November 2022, company had cash & liquid investments to the tune of Rs 45 crore.
With gearing of 0.94 times as on March 31, 2022, the company has some gearing headroom, to raise additional debt for its capex. Further
the working capital cycle for FY22 was stretched and stood at 102 days (PY: 62 days). The primary reason for increase in working capital
cycle was increase in inventory period to 124 days (PY: 84 days) and due to research and development of other molecules coupled with
pricing pressure in US market which resulted in decline of revenue and stocking of inventory.
IV. Indebtedness/ Exposure

Amounts In crores
Name of the Client Existing Proposed
Graviti Pharmaceuticals Private Limited 0.00 136.00
Total (a) 0.00 136.00
Not Available
V. Conduct of Account
a. Comments on Average Utilization
NA, as NTB
b. Irregularities during the year

NA, as NTB
c. Comments on security creation

Security perfection
Amounts In crores
Status
of Market Valuation Valuer
ID Security Additional Comments
Security Value Date Name
Creation
Personal
COL- Not
Guarantee 0 Personal Guarantee of Promoter Directors
107777 Created
-
Fixed Pari-Passu first charge on the entire fixed assets (movable and immovable) of the
COL- Not
Assets 200 company– present and future – including EM of immovable fixed assets of the
109476 Created
(All) - company thereon along with other Term Loan lenders
Pari-Passu First charge on the entire current assets of the company, present and
COL- Current Not
193 future viz. inventory, receivables and other Current assets along with other working
109478 Assets - Created
capital lenders.
Status
of Market Valuation Valuer
ID Security Additional Comments
Security Value Date Name
Creation
Name of the Owner Property details Valuation Date Valuation Amt(in Crs) a.)M/s
Jade Realtors Pvt Ltd b.) Green sky Estates Pvt Ltd c.) Twister Constructions Pvt Ltd
Open land in Survey no. 96/AA,97/AA2,98/A1,98/A2,
100/A3,100/A4,159/AA/1,159/A/2 & 159/A/3 , Kollur village, Ramachandrapuram
Mandal, Medak Dist, Telangana 30-11-2017 12.44 M/s Alpaca Constructions Pvt Ltd
Open land in Survey No. 152/A/1, 152/A/2, 153/E/1,153/E/2,153/E/3, 153/E/4 &
Immovable 153/A, Kollur Village, Ramachandrapuram Mandal, Medak Dist, Telangana 30-11-
Fixed 2017 8.37 a.)M/s Jade Realters pvt Ltd b.) Stanza Promoters Pvt Ltd c.)Waxen
COL- Not 30-Nov-
Assets - 61.40 Realters Pvt Ltd Open land in Survey No. 157/A/3, 157/A/4,
113187 Created 2017
IMFA by 157/A/1,157/AA/2,157/AA/3, 158/AA/1,
third party 158/AA/2,158/AA/3,158/AA/4,158/A2,159/AA/4 & 161, Kollur Village,
Ramachandrapuram Mandal, Medak Dist, Telangana 30-11-2017 15.61 a.)Waxen
Realters Pvt Ltd b.) Stanza Promoters Pvt Ltd Open land in Survey No. 92/A/1,
92/A/2, 92/A/3,
92/A/4,92/AA/4,92/A5,92/AA/6,92/AA/7,92/AA/8,221/A/1,221/A/2,221/A/3,221/A/4
& 221/A/5,Kollur Village, Ramachandrapuram Mandal, Medak Dist, Telangana 30-11-
2017 24.60
Equity
COL- Shares - Not
14.7 First PP on pledged 30% equity shares of the company.
113189 EQ Shares Created
of GPPL
Pari-Passu first charge on the entire fixed assets (movable and immovable) of the company– present and
Primary security future – including EM of immovable fixed assets of the company thereon along with other Term Loan
lenders.
Pari-Passu second charge on the entire current assets of the company, present and future viz. inventory,
receivables and other Current assets along with other Term Loan lenders.
First pari-passu on Pledge of 30% of the paid up capital of the company along with other TL Lenders
Collateral security Pari passu first charge (to be shared with Axis Bank) by way of EM of the 3rd party Immoveable
properties given below with market value not less than Rs.50 Cr. Guarantee of the following
companies/individuals to the extent of value of their respective properties given as collateral security to the
bank
Personal Guarantee of Promoters Directors
Guarantees 1. Mr. G. Dheeraj
2. Mrs. Suguna Raman
Break up of Net Worth of Guarantors as on 31.03.2022

(Rs in crs)
Particulars G. Dheeraj G. Suguna Raman
Immovable Properties 2.79 0.25
Investments in Shares, cash and others 90.14 1.36
Other movable assets 57.71 0.37
Sub-total 150.64 1.98
Less: Loans and Liabilities 13.78 0.15
Net Worth 136.86 1.83

Compliance with Process to be followed for obtaining Net worth Certificates from Customers
Circular No.: CR/249/245/05/2021
Condition Compliance Status

A simple declaration of statement of CA certified net worth certificate/
assets and liabilities should be statement of assets and liabilities have
obtained, accompanied by the latest been provided by the company.
ITR. This declaration should be certified ITR shall be obtained prior to
by a Chartered Accountant (UDIN to be disbursement.
verified and held on record). This
statement should also declare the gross Waiver sought for declaring the gross
amount of guarantees given by the amount of guarantees given, other
individual for any other obligations of obligations of the Borrower/others, and
the Borrower or any other party and any encumbrance over assets.
any encumbrance created over these
assets. May be considered acceptable
considering the personal guarantors are
part of reputed Yashoda Hospitals group
and have declared loans/advances and
other external liabilities in the net worth
certificate.
A confirmation to be obtained from the To be complied with prior to
guarantor to maintain the level of disbursement
assets as disclosed and any major
variation (more than 10%) will be
intimated to the Bank immediately
Additionally, the Bank, may at its Shall be complied at bank’s discretion.

discretion, call for back up documents. No back up documents are proposed to
be obtained considering Yashoda
group’s market standing.
The RM/ SRM will be required to To be complied prior to disbursement.
compile and evaluate the net worth of
such guarantors. The RM/ SRMs
evaluation of the Net Worth should also
be signed off by the supervising official,
i.e., the Zonal Head of Business
Vertical/ Business Head. This evaluation
should be reviewed by the RM/SRM &
supervisor, annually at the time of
review/ renewal.

Credit Department will verify that this
evaluation is done before placing
proposals before the respective
sanctioning committees. The authority
to approve deviations from the policy
shall rest with the approving authority
as per extant Delegation of Powers.
Such deviations will need to be reported
to the COCC at monthly intervals. Such
deviations should be approved as
exceptions and it is expected that the
net worth details is generally submitted
at the time of annual renewal/review
The declarations furnished by the Considering the market reputation of
guarantors, should be certified by a the personal guarantors, belonging to
Chartered Accountant from a firm Yashoda group, it is proposed that
acceptable to the Bank. The standing of Chartered Accountant firm as
the firm should be commensurate with considered appropriate by the
the net worth of the guarantor/ amount guarantors may be acceptable to IBL.
of loan guaranteed, and for large
exposures (>50 crs), this should be
done a practising CA belonging to firm Certifying CA firm: B. Narsing Rao Co
who are auditors for entities of size The firm, established in 1983, has
similar to the size of the Borrower, and qualified and experienced partners with
should be empanelled with prominent specialized skills in Audit & Assurance
banks/ IBA. For firms, which are not and Tax, Financial and Business
well known, references, if required by Advisory services, Management
the Bank should be furnished. Consultancy services. These skills
enable the firm to deliver
comprehensive range of professional
services to diverse client groups with
quality and value addition. The client
base includes businesses from industry
sectors such as Infrastructure, health
Care, Real Estate, Manufacturing,
Banking, Chemicals & Pharmaceuticals,
Power, etc

d. Whether appearing in any defaulter list

Save Risk check as on: June 05, 2023.
Sr.No Particulars GPPL Connected Company
1 Bureau Default SAFE SAFE
2 STK – 5 SAFE SAFE
3 STK – 7 SAFE SAFE
4 Key People on Bank Board SAFE SAFE
5 Wilful Defaulter SAFE SAFE
6 Major Default SAFE SAFE
7 Credit Rating SAFE SAFE
8 NCLT SAFE SAFE
9 Disqualified Directors U/S 164 (Current) SAFE SAFE
10 Stressed Asset Sale SAFE SAFE
RBI/ CIBIL Defaulter Nil

NCLT/ IBC List check Nil
Central Fraud register No reference found
Regulatory notices No reference found
CIBIL (personal guarantors) &
No adverse observations
Commercial CIBIL
RBI Caution List No reference found
ECGC Check List No reference found.
NPA & CDR List Company does not appear on the list.
Status of security creation NA, NTB
Early Warning Signals Nil
RBI Moratorium schemes Not availed
Dependency on Russia/ Ukraine/

Nil
Sri Lanka
ESMS commentary
Industry Classification: Others
Borrower Score – ???
Borrower Risk Level: The company is a specialized pharma company focusing on the niche therapeutic areas of inhibitors, anti-cholesterol
etc. Company has been focussing towards sustainable development of its business and has regularly undertaken measures to minimize
negative impact on the environment
e. SMA status
CRILC- PENDING
Standard as per latest CRILC report dated 26th June 2023, with no instances of Move to Default reported in last xx months.
f. Audit Comments
Auditor Details
Auditor Name:Narasimha Rao & Associates
Registration Number:2336S
Signing Partner:CA J. Vikram Simha
Nil qualifications made by the auditor in the annual report FY22.
g. Corporate CIBIL
No overdues as per CredPro check
h. Compliance with existing terms of Sanction

NA, as NTB
i. Position of Account
NA, as NTB
j. Management Interactions
Mr. Krishnan Srinivasan, Relationship Manager and Mr. Karthik Nagabhushan, Regional Head have been in contact with the management of
the company.
Date of visit/interaction : April 20, 2023 & May 24, 2023 (over tele-conferencing)
Company representatives : Mr. Atul Loonkar, Manager-Finance
Karthik Nagabhushan, Regional Head
Krishnan.S, RM
Bank representatives :
Abhishek Shetty, Zonal Head— Credit
Shashank Rao, Credit Analyst
Mr. Atul has informed there is an ongoing capex of around Rs.141 Crores to be completed in
Brief point discussed :
the next 2 years. IBL has pitched in for the Rs.100 Crores of TL requirement
VI. Performance & Financial Indicators

Amounts In crores
Particulars FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30
(Rs in crore) (A) (A) (A) (Prov.) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)
Net Sales 203 253 163 262 328 410 512 640 769 922 922
EBIDTA 67 74 1 50 85 116 156 208 259 322 303
PAT 23 36 4 1 27 48 77 115 155 201 190
Net cash flows (NCF; A) 46 63 32 30 52 74 101 138 176 222 210

Adjusted Net Cash Flow (C=A-B) 46 63 32 30 52 74 101 138 176 222 210
Less: Dividend paid out of accruals (B) - - - - - - - - - - -
TNW (D) 127 182 189 198 223 271 348 463 618 819 1,009
Adjusted TNW (E=D-F-G-Q) 46 98 93 89 114 162 239 354 509 710 899
Investments (Equity) in related parties (F) 0 2 12 17 17 17 17 17 17 17 17
Loans & Advances related parties (G) - - - - - - - - - - 1
Quasi Equity (Q) 82 81 84 92 92 92 92 92 92 92 92
Total Debt (H= I+J+K) 161 161 160 177 227 250 211 171 151 115 95
Long Term Debt (I) 161 147 131 103 133 141 101 65 45 25 -
CPLTD (J) - 14 16 25 24 38 40 36 36 20 25
Working Capital Borrowing (k) - - 13 49 70 70 70 70 70 70 70
Total Outside Liabilities 195 198 216 262 282 315 290 265 261 244 224
Total Assets 323 380 404 460 504 586 637 729 879 1,064 1,234
Contingent Liability - - - - - - - - - - -
Ratios
EBIDTA Margin (%) 32.99% 29.37% 0.66% 18.93% 25.82% 28.21% 30.45% 32.46% 33.73% 34.91% 32.85%
Net Margin (%) 11.45% 14.41% 2.44% 0.32% 8.20% 11.77% 14.99% 18.00% 20.12% 21.85% 20.60%
Debt/TNW 1.26 0.88 0.85 0.90 1.02 0.92 0.61 0.37 0.24 0.14 0.09
Debt/ATNW 3.52 1.63 1.72 1.99 2.00 1.54 0.88 0.48 0.30 0.16 0.11
Debt/EBIDTA 2.40 2.16 149.64 3.57 2.68 2.16 1.35 0.82 0.58 0.36 0.31
TOL/ TNW 1.53 1.09 1.14 1.33 1.26 1.16 0.83 0.57 0.42 0.30 0.22
TOL/ Adj. TNW 4.28 2.01 2.32 2.95 2.48 1.94 1.21 0.75 0.51 0.34 0.25
Current Ratio 3.35 3.66 2.48 1.46 1.77 2.01 2.17 2.55 3.10 3.96 4.05
Interest Cover 4.65 4.98 0.09 3.49 3.94 5.47 7.10 10.02 15.07 23.38 26.93
DSCR 4.19 5.24 1.71 1.35 1.57 2.09 2.04 2.60 3.63 4.73 7.09
Financial Indicators for parent company on standalone basis - Yashoda Healthcare Services Pvt Ltd
Particulars FY20 FY21 FY22

(Rs in crore) (A) (A) (A)
Sales 1,029 1,005 1,311
EBIDTA 344 309 607
PAT 265 387 538
Net cash flows (NCF; A) 299 258 467
TNW (D) 1,196 1,634 2,243
Adjusted TNW (E=D-F-G) 1,099 1,546 2,153
Investments (Equity) in related parties (F) 78 78 78
Unsecured Loans & Advances related parties (G) 19 10 12
Total Debt (H= I+J+K) 47 84 253
Long Term Debt (I) 47 84 219
CPLTD (J) - - 17
Working Capital Borrowing (k) - - 17
Unencumbered cash, Mutual funds,
N.A 1,035 1,139
listed investments
Net debt N.A (951) (886)
Total Outside Liabilities 189 238 348
Total Assets 1,385 1,872 2,591
Contingent Liability 216 216 429
Ratios
EBIDTA Margin (%) 33.43% 30.75% 46.30%
Net Margin (%) 25.75% 38.51% 41.04%
Debt/TNW 0.04 0.05 0.11
Debt/ATNW 0.04 0.05 0.12
Debt/EBIDTA 0.14 0.27 0.42
TOL/ TNW 0.16 0.15 0.16
TOL/ATNW 0.17 0.15 0.16
Current Ratio 8.68 7.88 10.75
Interest Cover 86 77.25 121.4
DSCR N.A 106 115
Peer Financial Details
Comments
GPPL Medihauxe Viven Drugs and

International Pvt Pharma Ltd
(FY23)
Ltd
(FY22)
(FY22)
Revenue 262 216 217
EBITDA 50 15 17
Profit After Tax 1 10.6 2.8
Total Debt 177 7.6 50
Current ratio 1.46 3.6 1.2
Net worth 198 39 56
Debt/Equity 0.90 0.19 0.89
Debt/EBITDA 3.57 0.5 3
Interest cover 3.49 24 1.3
Rating A BBB+ B+
The industry is quite fragmented with large players as well as smaller local companies.
Comparison is done with other companies based out of Hyderabad, who are into manufacturing/distribution of bulk drugs with scale of
operations similar to GPPL.
VII. Risk Analysis

i) Management Risk
Borrower:
GPPL is promoted by Mr. G. Dheeraj and Mrs. Suguna Raman and is a subsidiary of Yashoda Healthcare Services Private Limited (YHSPL,
rated CRISIL AA-/Stable).

Shareholding Pattern of GPPL:
As on As on
Shareholding as on March 31, March 2022 March 2023
Yashoda Healthcare Services Pvt Ltd (YHSPL) 59.18% 51.00%
G. Dheeraj 40.81% 48.99%
G. Suguna Raman 0.01% 0.01%
Total 100.00% 100.00%

There is a decline in shareholding by YHSPL, however we have stipulated ownership covenant that 51% of shares are to remain with YHSPL
for entire loan tenure.
Directors Profile:
Dheeraj Gorukanti (Director at YHSPL & GPPL):
Dheeraj (aged 43) is the Director at Yashoda Group with experience in the industry close to two decades. Prior to Yashoda Group, he has
worked for the Boston Consulting Group, Washington DC. During his tenure at BCG, he acquired deep insights into the pharmaceuticals,
retail and financial services verticals, particularly in the US. Mr. Dheeraj has a bachelor’s degree in engineering from the prestigious Indian
Institute of Technology, Chennai and an MBA degree from Duke University, US.
At present, He is the Founder and CEO of Graviti Pharmaceuticals, he drives the company’s vision, strategy and innovation efforts. He plays
key role developing strategic business plans and implementation.
Suguna Raman (Director at GPPL):

Suguna (aged 42) has more than a decade of experience in the healthcare industry and looks after the business strategy and marketing. She
completed her MBA from the Duke University, US in 2007 and her undergraduate degree in management from Delhi University in 2002. She
has a strong background in new product development, customer engagement, strategic marketing and brand development.

Parent company - YHSPL:
The company based at Hyderabad, Telangana was incorporated on Aug. 19, 1993. YHSPL is health-care services company that provides
quality healthcare in diverse medical needs since three decades and is promoted by Rao Family.
Shareholding Pattern as on Mar. 31, 2022:
2022 2021
G. Ravender Rao 29.74% 29.74%
G. Surender Rao 9.61% 15.61%
G. Phalgun 9.41% 9.41%
G. Devender Rao 9.32% 15.32%
G. Abhinav 8.96% 8.96%
Dheeraj Gorukanti 8.56% 8.56%
G. Pavan Kumar 8.35% 8.35%
G. Laxmi Devi 7.12% 0.00%
G. Jayashree 6.94% 0.00%
Others 1.99% 4.05%
Total 100.00% 100.00%
YHSPL is a part of the Yashoda group and operates three hospitals providing services for Heart, Brain & Nerves, Cancer, Bones & Joints,
Gastro, Renal, Spine, organ transplantations, other specialities etc., with the current capacity of ~1800 beds in the Hyderabad region.
The recently opened branch at Hitech city is one of the largest medical facilities in Hyderabad and will be spread over 20 lakhs sq. ft. with
potential capacity of 2000 beds (currently operational 300 beds). All of its branches are NABH and NABL accredited.

Group Structure of YHSPL:
Experienced Promoters: YHSPL was founded by Rao family (3 brothers- Mr. Ravender Rao, Dr. Surendra Rao, and Mr. Devendra Rao) with
initial capacity of 50 beds in 1993 at Malakpet. Gradually, company added beds which led to organic growth backed by operationally efficient
hospital. Subsequently, second generation of the family joined the business and led the addition of pharma segment of operations and
diversification & scaling up of operations by introducing latest equipment/specialty services in hospital.

The promoters and the management for both YHSPL and GPPL are common and both the companies have centralised Accounting, Treasury
functions to manage its investments, debt finance and forex requirements.
Subsidiaries (all 100% held)

Name Line of business
Graviti Pharma Inc It is the US subsidiary of GPPL, has been setup
as vertical integration arm to promote
marketing and sales of goods produced by
GPPL.
Graviti Foundation It’s the CSR arm of the GPPL to execute CSR
initiatives and activities
Hopped up Trade Pvt Ltd Primarily setup towards domestic sales and
trading of formulations, however, at present
Daimen Pharma Pvt Ltd:
there is no operations in same.

Financial support:
To support GPPL’s operations Both the promoter-directors have offered their personal guarantees to existing lender Axis Bank and the same
is proposed for the proposed IBL Loan.
As on date, unsecured loan extended by directors to GPPL is Rs 17 crs with Rs 8 crs added in FY23. Unsecured loan from holding co YHSPL
is approx. Rs 75 crs

Assessment: Given the experience of the promoter family in the healthcare segment, who run the successful and financially strong Yashoda
Healthcare, operational and financial linkages of GPPL to its parent Yashoda group, and demonstrated financial support offered to GPPL,
management risk is considered as medium.
ii) Business Risk
GPPL has two-business segments namely, R&D and manufacturing of USFDA approved generics medicines (oral solid formulations). The
company is focused on modified -release, bio and stability sensitive molecules.

It is 100% export-oriented unit and company is entitled to benefits namely Remission of Duties or Taxes on Export Products (RoDTEP) or
duty drawback.
Business model:
· The company has profit-sharing and transfer-pricing model with its partners/clients (mainly subsidiaries of reputed & well-
established Indian manufacturers) in US market.
· GPPL initially develops/researches on a molecule, files for Abbreviated new drug application (ANDA) and commercialises the same
post ANDA approval in its name.
Abbreviated new drug application (ANDA) contains data which is submitted to US FDA for the review and potential approval of a generic
drug product. Once approved, an applicant may manufacture and market the generic drug product to provide a safe, effective, lower
cost alternative to the brand-name drug it references
· Transfer-pricing model is the primary source of revenue. The transfer price is the component of revenue which GPPL charges to
its customers to recover just the cost of manufacturing (Raw materials + Packing materials + Overheads) without any profit markup.
The invoice for transfer price is raised on an "As and When" basis.
· The profit share element of total sales is the component of share in profits of the final onward sale of the molecules by
clients/marketing partners to the end customers in US markets.
· GPPL has contracts with multiple marketing partners with variable profit-sharing structure for tenor of 3-4 years that allows
company to maintain margins. After the drugs are delivered at destination, GPPL receives transfer pricing revenue in average 45 days
and profit-share revenue as & when it’s sold by the partner. The profit sharing mechanism varies from client to client. As per payment
terms, the invoices for the transfer price element of sale are raised quarterly with the profit share element taking approx 200 days to be
realized.
· At present, the company has filed for 19 ANDAs of which 9 have commercialised, 5 have received approval and 4 under advanced
stages of approval.
· The company plans to spend 8%-9% of sales revenue on R&D annually. R&D for each molecule takes 1-2 years.
· Key therapeutic areas- Cardiovascular, Diabetic, Hypertension Anti Virals, Anti Cholestorol, Antioxidants.
The core team consists of highly experienced and skilled team who have experience in working with renowned pharmaceutical major
organizations. The Company also has a well-equipped Research and Development (R&D) facility for new product development and to improve
cost and efficiency of current processes.

GPPL’s manufacturing unit situated at Isnapur Village in Medak District, Telangana and R&D facility is at Patancheru, Hyderabad. The facilities
have successfully cleared multiple USFDA audits without any observations which has helped in nurturing client trust in its ability to deliver on
its commitments.
The company’s current capacity is about 3.2 billion units per annum which it wants to expand to about 4.7 billion units per annum. With 9
commercial molecules, company has been operating at capacity of 70-75%, with the industry peak level being 80%. The company proposes
to take the number of commercialized molecules to 20 by FY 26 and use the increased capacity to service the demand for the additional
molecules.
Commercial production commenced in August 2018 with its main product Atorvastatin, and by the end of FY23 it has diversified its product
portfolio with 9 molecules which have been commercialized for sale.
Sales-Bifurcation:
Export (under transfer pricing) 202 80% 118 73% 224 85%
Profit-Sharing 51 20% 29 18% 22 8%
Domestic (under transfer pricing) 0.35 0% 15 9% 16 6%

Total 253 100% 163 100% 262 100%
Reputed customer/marketing partner: The categorization of marketing partner is integral to the outsourcing process in the pharma
industry. The company has growing relationships with its well-established reputed customer/partners in USA, namely, Biocon Pharma Inc.,
(‘BPI’), a wholly owned subsidiary of Biocon Pharma Limited (rated IND AA+/Stable/IND A1+) (which was incorporated in July 2015 in USA
and is engaged in the commercialization of generic formulations in the United States) and Laurus Generics Inc., USA, which is a step-down
subsidiary of Laurus Labs Ltd (rated CARE AA; Stable/CARE A1+) etc., which allows the company to generate repeated orders.
While Graviti has exclusive rights to manufacture these US FDA approved products, following ANDA approval, its partners/clients have
exclusive rights to sell the same in US markets.
The below table shows transfer price sales break-up molecule-wise
Credit
Molecule Customer Profit Share% FY21 % FY22 % FY23 %
period*
Atorvastatin
Biocon Pharma INC 50-50 45 198 98% 109 81% 92 38%
(cardiovascular)
Gabapentin Rising Pharma LLC 60-40 60 - - - - 67 28%
Bupropion
Rising Pharma LLC 65-35 60 - - - - 41 17%
(cardiovascular)
Furosemide Rising Pharma LLC 70-30 60 - - - - 18 8%
Bupropion
Method Pharmaceuticals LLC 85-15 45 - - 7 5% - -
(cardiovascular
Esomeprazole
Biocon Pharma Ltd 50-50 45 - - 16 12% 16 7%
(cardiovascular)
Choline Fenofibrate Leading Pharma INC 85-15 45 - - - - 1%
Choline Fenofibrate Laurus Generics 85-15 45 - - - - 4 2%
Chlorozoxazone Rising Pharma LLC 60-40 60 - - - - 2 1%
Fenofibrate
Leading Pharma INC 85-15 45 - 1 1% 1 -
(anti-infective)
Irbesartan Jubliant Generics Ltd - - - - - - - -
Valcyclovir Jubliant Generics Ltd - - - - - - - -
Fenofibrate
Laurus Generics 85-15 45 4 2% 2 1% - -
(anti-infective)
Total 202 100% 135 100% 240.00 100%
*in days
Volumes sold and realizations at transfer price

FY21 FY22 FY23
Volumes(million Realization Volumes(million Realization Volumes(million Realization
tablets p.u tablets p.u tablets p.u
Atorvastatin 1220 1.62 762 1.44 694 1.32
Esomeprazole 77 2.15 88 1.78
Gabapentin 444 1.50
Bupropion 29 2.44 162 2.55
Furosemide 285 0.62
Choline Fenofibrate 14 2.86
Fenofibrate 25 1.87 9 2.06 5 2.64
Chlorozoxazone 4 5.12
Irbesartan -
Valcyclovir -
1245.24 877.23 1695.57
The company’s sales are primarily export driven and primarily catering to US market. As entire export sales are to client’s/marketing
partners in US, the same exposes the company to geographical concentration to one market. Consequently, the performance for FY22 got
negatively impacted when the pricing pressure was high in the US market.
During FY23, the company has successfully diversified its customer base by reducing its dependence on Biocon Pharma Inc. to 45% from
98% in FY21. Company being able to add reputed customers mitigates the customer concentration risk to an extent.
The client also mentioned that Biocon USA exclusively purchases the Atorvastastatin drug only from Graviti. Company is looking to diversify
its client base beyond Indo-US companies and has received inquiries from foreign companies like Pfizer.
The dip in sales and profits in FY22 was owing to pricing pressures in USA, with Biocon, the lone client in FY22 asking for a price cut,
ultimately resulting in poor offtake, which led to Graviti diverting its capacity into production of other molecules.
The company is focussing only on export/foreign markets - as they are more lucrative than domestic market (low domestic prices) and also
considering recovery of huge capex incurred on setting up the USFDA plant. Besides, there are other Yashoda group companies who deal in
trading of similar products for Indian markets.
The company’s clientele are reputed listed groups, with strong financial profile.
Profit Profit Profit
FY21 % FY22 % FY23 %
Client Name Share Share Share
Rising Pharma LLC - - - - - - 128 53% 4
Biocon Pharma INC 198 98% 51 126 94% 28 92 38% 18
Biocon Pharma Ltd - - - - - 1 15 6%
Laurus Generics - - - 1 1% - 4 2% -
Leading Pharma INC 4 2% - - - - 1 1% -
Method LLC - - - 7 5% - - - -
Total 202 100% 135 100% 240 100%
https://credpro.indusind.com/OSDocumentsGeneration/CreditApplicationPDF.aspx?ActionID=EmXIy4KqIQs=&WFSTAPP_ID=0v2Y+c68+lY=&… 10/48
Raw material: The key input is active pharmaceutical ingredients (API). The company majorly relies on few key suppliers for procurement
of raw materials namely, Hikal Limited Labs Limited, Sri Krishna Pharmaceuticals Ltd, MSN Pharma and which contributes about 95% of RM
and balance is sourced from local vendors. There is supplier concentration, however comfort is drawn from the financial profile of suppliers
with all of them having a minimum external rating of A.
Credit Period for all vendors - 60 days
Supplier Name Volume (Kgs) Value(Crs) Volume (Kgs) Value(Crs) % Volume (Kgs) Value(Crs) %
Hikal Limited 35,071 13 22% 1,12,346 28.29 38%
MSN Pharmachem Private Limited 1,056 1.94 24,361 35.48 60% 14,235 19.15 26%
Hikal Limited - (Mfg Site) 0% 21,198 9.50 13%
Laurus Labs Limited-Unit-III 26,555 50.74 498 3.62 6% 4,081 5.33 7%
Hetero Drugs Limited-(Unit IX) 1,150 1.40 4,500 4.14 7% 3,562 4.35 6%
Sri Krishna Pharmaceuticals Ltd 0% 8,499 4.14 6%
Syn-Tech Chem And Pharm Co Ltd 0% 2,000 1.25 2%
Epic Pharma LLC 0% 4,937 1.17 2%
Harman Finochem Ltd (Chikalthana) 9,455 2.81 1,200 1 2% 1,117 1.00 1%
Sun Pharmaceutical Industries Ltd 1,291 2 3% 0%
Dr Reddy's Laboratories Ltd 17,165 41.20 0% 0%
Biocon Limited - SEZ Unit 2,068 5.18 0% 0%
Total 57449 103 66920 59 100%
171975 74 100%

On the customer and supplier front, the company is in continuous efforts to diversify channels to decrease its dependence on a particular
group.

Order book as on May 31, 2023: The company expects sales from 21 molecules, out of which 9 are already commercialized, 5 will start in
June/July 2023 and balance 8 by October 2023 which are dependent on receipt of ANDA approval. At present, the company has order book
of Rs.304 crores on-hand for FY24 as follows.
Order book summary
Molecule Volume in
# Partner Order value in Crs
(confidential) Million(tablets)
1 Molecule 1 532 Biocon 64
2 Molecule 2 196 Rising 53
8 Molecule 8 64 Biocon/Quallent 13
14 Molecule 14 23 Leading 4
16 Molecule 16 8 Laurus/Leading 3
17 Molecule 17 4 Rising/Reliable/Glenmark 2
19 Molecule 19 12 Jubilant 1
20 Molecule 20 12 Jubilant 0
21 Molecule 21 2 Laurus/Leading 0
Total 2176 304

During April & May 2023, the company has recorded gross revenue of Rs.60 Crore. With current order book worth Rs 304 Crs, company
expects to touch topline Rs 350 Crs by end of FY24.
Key risks and mitigants
Risks Mitigants
Nascent stage of operations and limited track record (operations Comfort drawn from 51% shareholding with Yashoda group, a cash
started in 2018) rich company which has been in the healthcare business for 30
years. Company has achieved breakeven within one year of

operations, has been posting healthy EBITDA margins and capacity
utilization
Unavailability of Corporate Guarantee support from parent Yashoda Given the satisfactory performance of Graviti and progress achieved
Healthcare: on an independent basis, Axis Bank has released the CG initially
provided by Yashoda Healthcare. Company shall not be providing CG
to any lender for the upcoming fund raise. However, the
management function is common, and the group continues to
support GPPL’s operations as an when required. Both the promoter-
directors have offered their personal guarantees to existing lender
Axis Bank and the same is proposed for the proposed IBL Loan. As
on date, unsecured loan extended by directors to GPPL is Rs 17 crs
with Rs 8 crs added in FY23. Unsecured loan from holding co YHSPL
is approx. Rs 75 crs. Also we have stipulated ownership covenant.

Concentration risk with 2-3 major clients with whom company has Company is gradually diversifying its customer base and is presently
only short term contracts, with company not diversifying beyond targeting Europe markets. Company’s has expertise in R&D,
clients with Indian parentage: manufacturing US FDA approved products with ANDAs held in
company name. It also benefits from a healthy order book position,

along with favorable demand-supply scenario of the industry.
Project execution risk: For the greenfield capex, company achieved DCCO 22 months
ahead of the schedule at 8% lesser than the estimated cost, and
also received timely approval from USFDA.
Volatile nature of US markets impacting pharma product pricing and Company has bounced back strongly in FY23 with increase in
realizations as seen FY22 numbers. Further, US being a highly volumes sold and healthy operating margin. However, we seek
regulated market, risk of adverse observation by US FDA inspection comfort from the company’s parentage. GPPL is strategically
important and has financial integration with YHSPL.Company is

compliant with USFDA norms
Stretched WC cycle, with slow realization of profit-share from its All clients are reputed listed companies with favourable credit
partners profile. Though delayed, the Owned R&D model ensures that Graviti
has right to profit upside in addition to the fixed transfer price. High
Margin model due to unlimited profit upside. Also company has
financing flexibility with adequate WC lines to manage cash flow
mismatches.
Assessment: Given the above, business risk is medium
Parent company - Yashoda Healthcare Services Pvt Ltd
Experienced Promoters: YHSPL was founded by Rao family (3 brothers- Mr. Ravender Rao, Dr. Surendra Rao, and Mr. Devendra Rao) with
initial capacity of 50 beds in 1993 at Malakpet. Gradually, company added beds which led to organic growth backed by operationally efficient
hospital. Subsequently, second generation of the family joined the business and led the addition of pharma segment of operations and
diversification & scaling up of operations by introducing latest equipment/specialty services in hospital.
The promoters and the management for both YHSPL and GPPL are common and both the companies have centralised Accounting, Treasury
functions to manage its investments, debt finance and forex requirements.
Established Market Player with certified facilities: YHSPL has been operating 2 multi-specialty hospitals in Hyderabad region for close to
three decades with ~1800 beds under the brand ‘Yashoda Hospitals’. The hospitals have a premier pulmonology set up which supported
healthy patient inflow. The hospital has branches at Secunderabad and Malakpet. Third hospital is being set-up in one of the niche areas of
Hyderabad, Hitech City with 1000 beds for at an estimated cost of Rs.800 crores (debt of Rs.550 crores has been tied-up). All of its branches
are NABH and NABL accredited.
Favourable location: Hyderabad is well-connected via air, road & rail and has moderate weather conditions throughout the year. Telangana
has been promoting itself as a favourable destination for medical tourism and the project is expected to be benefitted from the same
Satisfactory operating capacity: YHSPL’s occupancy levels were satisfactory at ~91% in FY22. During FY21, it was 59% in FY21
(FY20:89%) mainly due to a reduced in-patient footfall owing to the pandemic. However, the revenue remained steady because of longer
than average length of stay during the pandemic and higher share of revenue from COVID-19 treatment (about 40%), which required longer
stays in the hospital and yielded higher average revenue per occupied bed, owing to the need for longer stays in the intensive care unit for
COVID-19 treatment. The presence of highly qualified professionals enables relatively low average length of stay during fiscal 2023, which is
comparable to large hospital chains, namely, KIMS and Apollo.
Geographical risk & project execution risk: YHSPL’s existing and upcoming facilities are located in the Hyderabad region, which has a
highly competitive healthcare services market. The hospitality industry is associated with relatively longer gestation period and time lag
required for stabilization of the project. Thus, it may take YHSPL’s new hospital significant time to achieve EBITDA-level breakeven. However,
the same is partially off-set by established presence and brand value in the market.
Exposure to regulatory risk: YHSPL remains exposed to regulations which may come into play, as & when introduced. For instance, the
performance of private hospitals was significantly impacted on account of price caps cardiac stents and knee implants imposed in the last
quarter of FY17. Besides, the cap on cash transactions up to Rs.2 lakhs posted as temporary challenges which was introduced in FY18.
Regulatory actions and their impact will remain a monitor able.
iii) Industry Risk

India is the largest provider of generic drugs globally and is known for its affordable vaccines and generic medications. The Indian
Pharmaceutical industry is currently ranked third in pharmaceutical production by volume after evolving over time into a thriving industry
growing at a CAGR of 9.43% since the past nine years. Generic drugs, over-the-counter medications, bulk drugs, vaccines, contract research
& manufacturing, biosimilars, and biologics are some of the major segments of the Indian pharma industry. India has the most number of
pharmaceutical manufacturing facilities that are in compliance with the US Food and Drug Administration (USFDA) and has 500 API
producers that make for around 8% of the worldwide API market.

Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all
medicine in the UK. The domestic pharmaceutical industry includes a network of 3,000 drug companies and ~10,500 manufacturing units.
India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with a
potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS
(Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms. India is rightfully known as the "pharmacy of the
world" due to the low cost and high quality of its medicines.

Market Size:
According to the Indian Economic Survey 2021, the domestic market is expected to grow 3x in the next decade. India’s domestic
pharmaceutical market stood at US$ 42 billion in 2021 and is likely to reach US$ 65 billion by 2024 and further expand to reach US$ 120-
130 billion by 2030.

India's biotechnology industry comprises biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics. The Indian
biotechnology industry was valued at US$ 70.2 billion in 2020 and is expected to reach US$ 150 billion by 2025. India’s medical devices
market stood at US$ 10.36 billion in FY20. The market is expected to increase at a CAGR of 37% from 2020 to 2025 to reach US$ 50 billion.

Government initiatives:
Some of the initiatives taken by the Government to promote the pharmaceutical sector in India are as follows:
To achieve self-reliance and minimise import dependency in the country's essential bulk drugs, the Department of Pharmaceuticals
initiated a PLI scheme to promote domestic manufacturing by setting up greenfield plants with minimum domestic value addition in four
separate ‘Target Segments’ with a cumulative outlay of Rs. 6,940 crore (US$ 951.27 million) from FY21 to FY30.
Under Union Budget 2022-23: Rs. 3,201 crore (US$ 419.2 million) has been set aside for research and Rs. 83,000 crores (US$ 10.86
billion) has been allocated for the Ministry of Health and Family Welfare, Rs. 37,000 crore (US$ 4.83 billion) has been allocated to the
'National Health Mission’, Rs.10,000 crore (US$ 1.28 billion) has been allocated to Pradhan Mantri Swasthya Suraksha Yojana. The
Ministry of AYUSH has been allocated Rs. 3,050 crores (US$ 399.4 million), up from Rs. 2,970 crores (US$ 389 million).
In March 2022, under the Strengthening of Pharmaceutical Industry (SPI) Scheme, a total financial outlay of Rs. 500 crore (US$ 665.5
million) for the period FY 2021-22 to FY 2025-26 were announced.

Road Ahead
Medicine spending in India is projected to grow 9-12% over the next five years, leading India to become one of the top 10 countries in terms
of medicine spending.

Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic
therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers, which are on the rise.

The Indian Government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs
into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health
programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.

Source: ibef.org
Assessment: Despite positive outlook of the pharma sector, the industry remains exposed to significant regulatory risks with intense
competition and resultant pricing pressures in the export market. Given that, industry risk is Medium
iv) Financial Risk
Borrower, GPPL:

Net Sales: GPPL commenced operations from October 2018, and recorded of Rs.64 crores for six months’ operations. During FY21, the same
improved to Rs.253 crores mainly driven by the demand of Atorvastatin (anti-cholesterol) in US market.

However, during FY22, GPPL witnessed lower-than estimated sales of Atorvastatin owing to pricing pressure in the US market. This was
mainly due to decline in Net Selling Price (NSP) led by increased competition in US generics market leading to decline of export sales with
Biocon, the lone client in FY22 asking for a price cut. The volumes (tablets) sold also declined by 30% in FY22. Company has ever since
added 4-5 new clients. Further, the sector remains exposed to regulatory scrutiny by USFDA & SEC.`

However, GPPL was able to commercialise successfully 4 new molecules, namely, Esomeprazole, Bupropion, Fenofibrate and Fenofibric Acid in
H2FY22 leading to relative revenue-diversification.

Monthly Sales-Break (Transfer-Pricing) Up through marketing partners:
Month FY21 % FY22 % FY23 %
April 16 8.14% 25 18.33% 9 3.79%
May 12 6.11% 9 6.66% 9 3.61%
June 26 12.94% 16 11.89% 14 5.83%
July 17 8.61% 7 5.07% 19 7.93%
August 17 8.46% 8 5.83% 19 7.83%
September 25 12.39% 6 4.23% 19 8.08%
October 19 9.53% 10 7.24% 18 7.61%
November 4 1.73% 8 5.74% 32 13.37%
December 22 10.80% 10 7.12% 26 10.70%
January 16 7.88% 8 6.15% 20 8.28%
February 14 6.80% 11 8.37% 21 8.66%
March 13 6.60% 18 13.36% 34 14.32%
Total 202 100.00% 135 100.00% 240 100.00%

For FY23, the company has booked gross revenue of Rs.262 crores from 9 of its molecules, of which 3 have been recently commercialised
backed by price stabilisation in US Market from November 2022, thus registering a 36% rise in volumes over FY21 quantity sold.

The company continues to benefit from release of new formulations leading to growth in sales with the support of diversified product-mix and
does not expect the pricing-pressure to impact the operations going forward. For the month April & May 2023, the company has recorded
gross sales of Rs.60 crores.

Particulars FY20 FY21 FY22 FY23
(Rs in crore) (A) (A) (A) Prov.
Net Sales 203 253 163 262
EBDITA 67 74 1 40
EBIDTA Margin (%) 33% 29.37% 0.63% 15%
PAT 23 36.48 4 0.06
PAT Margin (%) 11.45% 14.41% 2.43% 0.02%

Profitability: GPPL follows transfer pricing model in which it adds margin to the price over the cost of manufacturing. The entire operating
gain for GPPL is derived out of the profit share element passed on to GPPL by its client upon onward sale in US market.
GPPL continues to maintain higher inventory to avoid future possible disruptions due to global events.
During FY22, the company has experienced elevated costs across the value chain, namely, raw material, personnel, power & fuel and
shipping costs mainly led by impact of global events namely, covid-19 pandemic and Russia-Ukraine war. Also the significant reduction in
sales caused pressure on margins due to lower absorption of fixed costs, with interest expenses continuing at similar levels due to debt
funded capex and reliance on WC debt. Due to ongoing development of new molecules, company incurred incremental R&D expenses of Rs
22 crs in FY22, as against Rs 18 crs in FY21 and Rs 5.5 Crs in FY20.

2023 % to net
Cost of Sales 2020 % to net sales 2021 % to net sales 2022 %
sales
COGS 122 60% 135 57% 110 83% 190 73%
Personnel Cost 20 10% 23 9% 28 17% 32 12%
Net Sales 203 - 253 - 163 - 262 -

To mitigate the volatility in demand, the company changed its product-mix and focus from production of Atorvastatin following the pricing
pressure to production & commercialisation of Esomeprazole, Bupropion, Fenofibrate and Fenofibric Acid at existing capacity which led to
increase in RM costs.
For FY22, other income consists of profit on sale of shares of Rs 35 Crs, which brought up the net margin.
Capital Structure:

Further, the capital structure remains comfortable with low leverage mainly led by gradual repayment of debt coupled with accretion of cash
profit to net-worth.

TNW, Movement of TNW:
Particulars (Rs in crore) FY20 FY21 FY22 FY23
Opening TNW 22.47 127.25 181.64 188.76
Add: PAT 23.27 36.46 3.99 0.83
Less: Dividend payment - - - -
Add/(less): Adjustments (0.09) 18.64 0.24 -
Quasi Equity^ 81.60 (0.71) 2.89 8.22
Closing TNW 127.25 181.64 188.76 197.81
Less: Investment in Group Companies* 0.01 2.36 12.01 17.00
Less: Loan to Group Companies - - - -
Adj. TNW 45.64 98.39 92.97 88.81
^For FY20, QE as on March 31, 2020 has been considered, whereas, FY21 - FY23, increase/decrease in QE has been shown.
*Investment in subsidiaries/associates as on March 31.

Debt profile of the company comprises of unsecured loans from promoter/related party (treated as quasi equity), working capital
borrowings and term loan. YHSPL and directors provided support in the form of unsecured loan for meeting any shortfall for payment of
dues.

For the year ended Mar. 31 2020 2021 2022 2023
Unsecured Loans from related party/promoters 81.60 80.89 83.78 92.00

As per the management, the same shall continue to stay in the business, hence, we are stipulating undertaking from the borrower to
maintain the same throughout the tenor of term debt.

Bifurcation of the debt and leverage is given as below:
For the year ended Mar. 31 2020 2021 2022 2023
Equity 49 49 49 49
Quasi Equity^ 81.60 80.89 83.78 92.00
Reserves & surplus (3.34) 51.76 55.98 56.81
Net-worth 127.26 181.65 188.76 197.81
Term Loans 160.61 146.69 130.63 102.96
Bank Borrowings - - 13.43 49.00
CPLTD - 13.88 16.06 25.20
Unsecured Loans - - - -
Total Debt 160.61 160.57 160.12 177.16
Debt/TNW 1.26 0.88 0.85 0.90
Debt/ATNW 3.52 1.63 1.72 1.99
^Unsecured loans are treated as Quasi Equity. Intangible assets have not been reduced for net worth calculation as they pertain to R&D

Liquidity: Adequate liquidity position of the company marked by more than sufficient cash accruals (Rs.32 crores) and Current ratio
satisfactory at 2.48x in FY22. During FY23, company has debt repayment obligations of Rs.16.06 crore out of which company has already
repaid Rs.9.26 crore till September 2022.

Further, GPPL is backed by strong parent to bring in support in the case of any exigency.

Cash flow statement:
Cash Flow (Rs in Crore) FY21 FY22 FY23

Cash from Operations (CFO) 116.27 18.69 67.87
Cash from Investments (CFI) (75.58) 7.28 (34.35)
Cash from Financing Activities (CFF) (29.37) (27.14) (29.73)
Increase/Decrease in cash 11.33 (1.16) 3.80
Cash balance at the beginning of the year 3.96 15.29 14.12
Cash balance at the end of the year 15.29 14.12 17.92

CFI comprises majorly of capex for capacity enhancement being undertaken by the company, incurred out of company own funds
pending debt tie up
CFF comprises repayment of debt obligations and interest servicing

FY21 FY22 FY23
Cash in hand (encumbered) 0.07 0.07 0.06

Balance at bank 14.57 3.13 6.49
Total unencumbered 14.64 3.20 6.55
Margin money 0.65 10.92 11.37
Total cash and bank balance 15.29 14.12 17.92

Apart from the above company has ST liquid investments worth Rs 21.45 Crs, down from Rs 64.5 Crs in FY22, which were partly sold to fund
capex.

Funding pattern of current assets

Funding pattern of Current Assets (in %) FY2020 FY2021 FY2022 FY2023
ST Bank Borrowings 0 0 7 22
Creditors for purchases 29 17 22 34
Net Working Capital 70 73 60 32
Other Current Liabilities 1 10 11 12
Total Current Assets 100 100 100 100

Projected Debt-Servicing Ability
DSCR FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
PAT 0.83 26.89 48.23 76.78 115.28 154.59 201.47 189.97 191.23
Depreciation 29.12 24.75 25.60 24.37 22.45 21.18 20.32 20.32 20.32
Interest 14.23 21.48 21.12 21.98 20.74 17.20 13.77 11.25 9.45
Cash Available for debt-servicing 44.18 73.12 94.95 123.12 158.47 192.97 235.57 221.55 221.01
Repayment 16.06 21.84 29.25 38.24 40.33 35.99 35.99 20.00 25.00
Interest 16.53 21.48 21.12 21.98 20.74 17.20 13.77 11.25 9.45
Debt Obligation 32.58 43.32 50.37 60.21 61.06 53.19 49.76 31.25 34.45
DSCR 1.36 1.69 1.89 2.04 2.60 3.63 4.73 7.09 6.42

Holding Levels, existing and projected
In Months FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
Inventory 2.43 3.44 5.79 4.09 3.14 2.14 2.21 2.28 2.36 2.39 2.51 2.51
Receivables 1.21 0.93 2.39 3.16 3.10 3.08 3.06 3.04 3.03 3.02 4.85 7.15
Gross WC 3.64 4.37 8.19 7.25 6.24 5.21 5.27 5.32 5.39 5.41 7.36 9.66
Creditors 2.46 2.45 5.91 5.58 3.62 2.82 2.82 2.82 2.85 2.85 2.85 2.85
Net WC 1.19 1.92 2.28 1.67 2.62 2.39 2.44 2.49 2.54 2.57 4.52 6.81

Contingent Liabilities: NIL.

Interlocking of funds: GPPL has infused approx Rs.17 crores in 4 subsidiaries as on Mar. 31, 2023, by way of Equity.

Subsidiary Investment % holding
Graviti Pharma Inc. 8.81 100
Graviti Foundation 0.01 100
Hopped up Trade Pvt Ltd 7.81 100
Daimen Pharma Pvt Ltd 0.01 100
Total 16.64

Exchange Risk: The Company is majorly an export oriented unit with 70%-80% of revenue attributes to export sales. The company has no
hedging mechanism in place, however, at present due to rupee depreciation company witnessed partial off-set of forex risk.

Particulars (Rs. Crores) 2020 2021 2022
Realized Forex Gains 2.48 1.13 1.59

Further, the company does not import raw materials and has no foreign currency borrowings.

Promoter, YHSPL: The company is externally rated CRISIL AA-.
Net Sales: During the period FY20-FY22, the company has reported satisfactory financial performance and witnessed 19% growth in
revenue to Rs.1451 crores in FY22 from Rs.1220 crores in FY21 backed by increase in occupancy levels with ramped up in bed capacity
coupled with established brand/services in Hyderabad.
(Rs in crore) (A) (A) (A)
Net Sales 1029 1005 1311
EBDITA 344 309 607
EBIDTA Margin (%) 33.43% 30.75% 46.30%
PAT 265 387 538
PAT Margin (%) 25.75% 38.51% 41.04%
In-line with increase in revenue, EBITDA/PAT levels & margins have improved significantly.
Satisfactory Capital Structure and Liquidity Position: As on Mar.31, 2022, YHSPL has debt to the tune of Rs.225.82 crores which is to
support the capex of third hospital and equipment at facilities and TNW of Rs.2243 crores, which indicates leverage ratio of 0.10x and the
same provides sufficient headroom to raise capital to meet operations/capex requirements.
Liquidity position of the company is adequate marked by the repayment is negligible against the internal cash accruals of the company. The
current ratio of 12.16x and free cash & bank balance of Rs.74 crores as on Mar. 31, 2022. Also, the company has liquid marketable securities
to the extent of Rs.720 crores, which makes the company net debt-free.

Contingent Liabilities: As per the Annual Report FY22, YHSPL is confident to win all the cases since there is no negligence on the part of
the company. Further, CG is towards the credit limits of 3 group companies namely, GPPL (Rs.185 crores), Jaya Educational & Research
Society (Rs.14 crores) and Lakshmi Educational & Research Society (Rs.9 Crores), wherein, directors are members of the aforementioned
entity.
Particulars FY21 FY22
Medical Negligence 5 8
Corporate Guarantee 208 208
Capital Commitments (net of advances) 3 213
Total Contingent Liability 216 429
TNW 1634 2243
% of CL to TNW 13.22% 19.13%
The capital commitments of Rs.213 crores pertain to the debt-funded capex towards the third hospital in Hi-tech city being setup by the
company.

Assessment: Company's business operations are volatile, comfort drawn from the strong operating margins, and liquidity support from the
cash-rich Yashoda group.
UHFC Details
Amounts In crores
ID Head Value
1 Total FB exposure (Rs. in cr) 40.00
2 Project entity/ Newly formed entity
3 Unhedged exposure for next 5 years (Rs in cr) 0.00
4 UFCE position as on DD/MM/YYYY 31/12/2022
5 Volatility % 12.49
6 Likely loss on UFCE (Rs. in cr) 0.00
7 Annualised EBID (Rs in cr)(PAT + Depreciation + Interest on debt + Lease Rentals, if any) 91.00
8 Likley Loss/EBID % 0.00%
9 Incremental Provision % (other than Project/newly formed entities) 0.00%
10 Incremental Prov for Project/Newly formed entities (Min Floor : 0.20%) 0.00%
11 Additional RW @ 25% applicable (Y/N) N
12 Incremental Provision (Rs in cr) 0.00
v) Structural Risk
A. Existing & Proposed Multiple banking arrangement:
Existing Proposed
Lender
FB NFB Term loan Total % FB NFB Term loan Total %
Axis Bank 60.00 - 153.37 213.37 100% 60.00 - 153.37 213.37 66%
IndusInd Bank - - - - - 10.00 - 100 110 34%
Total 60.00 - 153.37 213.37 100% 70.00 - 253.37 323.37 100%

Axis Bank loan details
Purpose: In September 2017, Axis Bank had sanctioned a Term Loan of Rs 185.25 Crs to fund the greenfield capex which involved setting
up GPPL’s plant, initial R&D etc.
Repayments: TL availed from Axis Bank is repayable in 26 quarterly payments which started from June 2021, to March 2028.
Security structure
Primary : Exclusive charge on fixed assets of company, present and future.
Collateral : Minimum collateral coverage of 1.12x, comprising of the following:
a. Second charge on current assets, present and future
b. Exclusive charge by way of equitable mortgage on land/building with market value not less than Rs 50 Crs along with Corporate/personal
guarantee of the owner of the asset.
c. Pledge of shares to extent of 30% of paid up share capital of company.
Guarantees:
a. Corporate guarantee of Yashoda Healthcare (YHSPL) till 2 years from DCCO or USFDA approval whichever is later
b. Personal guarantees of promoters Mr Dheeraj and Mrs Suguna
Update: Upon receipt of USFDA approval and DCCO achievement, the Corporate guarantee from holding company has been released by Axis
Bank (letter has been verified by BU and Credit)
B. Present request:
1. Sanction of Working capital limits (cash credit) of Rs.10 Crores
With rising scale of operations and capex expected to be incurred, company shall require incremental FBWC limits. The limits will ensure
smooth operations to meet additional orders.
Purpose: To meet working capital requirements/short-term cash-flow mismatch

Tenure : 12 months, renewable annually.
Margin for DP: Minimum Margin Required-
Book Debt
including Export
Receivables with 25 %
cover period upto
90 days
Stocks-
25 %
RM/WIP/FG

Primary Security: First Pari-Passu charge on the entire current assets (present and future) of the company viz. inventory, receivables and
other Current assets along with other working capital lenders.
Collateral Security: Second Pari-Passu charge on the fixed assets (movable and immovable) including EM on the company properties -
present and future - along with other working capital banks
Personal Guarantee of Promoter Directors:

1. Mr. Dheeraj Kumar Gorukanti.

Security creation process and cap on disbursement : Same as detailed as per term loan.
MPBF: The proposed limit utilization will be as per the DP availability and within assessed MPBF of Rs 70 crores.
2. Sanction of Forward cover derivative limits
PFE/MTM : Rs 4 Crs (@8% of Notional)
Purpose: To cover trade related payables/receivables in foreign currency
Security: Unsecured
Maximum Tenor: 12 months
3. Limit for forex and interest rate derivative contract against Term Loan proposed
PFE/MTM : Rs 22 Crs (@22% of Notional)
Purpose: To hedge interest rate risk, currency risk and to convert risk exposure from one currency to another of Term Loan. Facility to be
used to against IBL Loan only
Security: As applicable to the underlying Term Loan (the additional collateral cover of 1.12x of TL to not apply)
Maximum Tenor: As applicable to the underlying Term Loan

Product: Interest rate swap structure, Option structures like deferred call spread & seagull, Cross currency swap structures – USD to INR/
INR to USD (Deferred premium for derivative structure to be paid over the period of loan)
Documentation: ISDA and other standard documents to be obtained
Assessment of limits is covered under annexures
1. Term Loan of Rs.100 crore towards capex

Tenure: Door to door tenor of 7 years 9 months; Moratorium is for 9 months and repayment is quarterly for 7 years.

Request for TL:
The company has envisaged a capex program towards capacity enhancement to meet the growing scale of operations & demand in the
market. The company’s current capacity is 3.2 billion units per annum and intends to expand to 4.7 billion units per annum. The capex shall
be achieved by addition of a new floor in the existing facility and construction of new warehouse, along with R&D expenditures, as detailed
ahead.
The total project cost is envisioned to be around Rs.144 crores and the company is seeking to raise a long term debt of Rs.100 crores. The
remaining Rs. 44 crores will be funded by the company through equity.
Currently, the construction of the new floor is complete and the new warehouse is also about 70% complete and capex orders for the
additional lines have been lined up.
Company has incurred about Rs.65 crores towards aforementioned expansion (of which Rs.21 crores shall be reimbursed via term
loan) out of promoter/internal funds. However we are not capping reimbursement amount to allow borrower flexibility.

Project cost and means of finance :
Project cost 144
Means of finance
TL from bank 100
Promoter contribution 44

The break-up of the project cost already incurred and proposed to be incurred is as under:

S.
Particulars FY 22 FY 23 FY 24 FY 25 Total
No.
1 Building 2.95 3.63 - - 6.58
2 HVAC 0.44 - 8.00 - 8.44
3 Electrical - - - - -
Lab
2.84
4 Equipment 2.34 0.50 - -
Granulation
0.45 2.01 7.00 2.00 16.37
5 Machine
Blending
0.25
6 Machine
Compression
1.54
7 Machine
Coating
1.57 1.55
8 Machine
Packing
15.39
9 Machine 0.73 11.66 3.00 -
Misc Fixed
10.98
10 assets 1.57 4.41 5.00 -
12 IDC - - 4.00 10.00 14.00
Total
74.60
Tangible 10.30 25.30 27.00 12.00
Product
development
expenses
(Capitalization
13 of R&D costs) 4.62 24.20 22.00 18.00 68.82*
Total Proj
Cost 14.92 49.50 49.00 30.00 143.42
*12 pending molecules in pipeline with approx. cost being Rs 5-6 crs/molecule

Drawdown Schedule
Year Amt in Crs

FY 23-24 30.00
FY 24-25 30.00
FY 25-26 40.00
Total 100.00

The capex is to be incurred over a period of 2-3 years. Hence the drawdown schedule (captured ahead) is linked accordingly. There is a high
gestation period involved for getting regulatory approvals. The various stages involved are new molecule development post R&D, seeking
USFDA approvals followed by ANDA approvals. As seen above, out of Rs 65 crs incurred, company has spent Rs 29 Crs on R&D.

STATUS OF PROJECT APPROVALS for Capex

Since the additional block is being constructed on the same unit, most of the approvals are already in place. The additional block will be
ready by next year and the company can start manufacturing existing molecules in the new block till any new molecule gets approvals.

Sl No Name of Clearance/Approval Department Current Status
1 Power Feasibility & issue of Power connection Discom/Dept of Energy Available
2 Building Plan approval DTCP Available
3 Ground Water sanction Water Board Available
Directorate of
Factories
4 Factory Plan Approval Dept. of Labor Available
Employment Training
and Factories
5 Registration for GST Commercial Tax Available
6 Consent for Establishment under Air Act Available
7 Consent for Establishment under Water Act Available
Post-Establishment stage approval/Clearances
Sl No Name of Clearance/Approval Department Current Status
Chief Electrical
Final Approval from Electrical Inspectorate –
1 Inspectorate – Dept. Available
Dept. of Energy – Chief Electrical Inspector
of Energy, Govt. of AP
Directorate of
2 Factory License / Registration Available
Factories –
Directorate of Fire
Occupancy certificate from Fire Services
3 Services – Dept. of Available
Department
Home, Govt. of AP
Directorate of Fire
4 Fire – No Objection Certificate Services – Dept. of Available
Home
5 Authorization for handling hazardous wastes Available
Directorate of Boilers -
Dept. of Labor
6 Boiler Registration Employment Training Available
and Factories, Govt. of
Telangana

Implementation schedule
Project implementation schedule Status

Land acquisition Done
Land Development Done
Financial Closure Basis IBL sanction
Orders for Building contracts Already placed
Orders for machinery & equipments Partly placed and balance by 31-Dec-2023
Buildings & Civil Works completion Additional block construction 60% over and balance expected to be comp
Machinery/equipment receipts at site 31-03-2024
Machinery Erection & Commissioning 30-06-2024
Trial Run , Exhibit batches, validation, USFDS Filing/ANDA Approvals etc Tentative date is 31-12-2025 but the expansion block shall be used for th
Commercial production 31-Mar-2026 is for the new molecules

KEY TERMS AND CONDITIONS

Repayment: The Term Loan is proposed to be repaid in ballooning quarterly instalments with a moratorium of 4 qtrs as per the following
schedule starting from Q1 FY2025
Year % of Repayment No. of instalments Instalment amt per qtr Total Amount
(Rs in Crs)
2023-24 - - - -
2024-25 5% 4 1.25 5.00
2025-26 5% 4 1.25 5.00
2026-27 5% 4 1.25 5.00
2027-28 20% 4 5 20.00
2028-29 20% 4 5 20.00
2029-30 20% 4 5 20.00
2030-31 25% 4 5 25.00
Total 100% 28 100.00

Primary Security for Term loan: Pari-passu first charge on the entire fixed assets (movable and immovable) of the company– present and
future – including EM of immovable fixed assets of the company thereon along with other Term Loan lenders.

Collateral Security for Term loan :
· Pari-Passu second charge on the entire current assets of the company viz. inventory, receivables and other Current assets along with
other Term Loan lenders

· First pari-passu on Pledge of 30% of the paid up capital of the company along with other TL Lenders

· Pari passu first charge (to be shared with Axis Bank) by way of EM of the 3rd party Immoveable properties given below with
market value not less than Rs.50 Cr. Guarantee of the following companies/individuals to the extent of value of their respective properties
given as collateral security to the bank. Detailed as follows -

Name of the Property details Valuation Valuation
Owner Date Amt(in
Crs)
a.)M/s Jade Open land in Survey no. 96/AA,97/AA2,98/A1,98/A2, 30-11- 12.44
Realtors Pvt 100/A3,100/A4,159/AA/1,159/A/2 2017
Ltd & 159/A/3 , Kollur village, Ramachandrapuram Mandal, Medak Dist, Telangana
b.) Green
sky Estates
Pvt Ltd
c.) Twister
Constructions
Pvt Ltd
M/s Alpaca Open land in Survey No. 152/A/1, 152/A/2, 153/E/1,153/E/2,153/E/3, 153/E/4 & 30-11- 8.37
Constructions 153/A, Kollur Village, Ramachandrapuram Mandal, Medak Dist, Telangana 2017
Pvt Ltd
a.)M/s Jade Open land in Survey No. 157/A/3, 157/A/4, 157/A/1,157/AA/2,157/AA/3, 158/AA/1, 30-11- 15.61
Realters pvt 158/AA/2,158/AA/3,158/AA/4,158/A2,159/AA/4 & 161, Kollur Village, 2017
Ltd Ramachandrapuram Mandal, Medak Dist, Telangana
b.) Stanza
Promoters
Pvt Ltd
c.)Waxen
Realters Pvt
Ltd
a.)Waxen Open land in Survey No. 92/A/1, 92/A/2, 92/A/3, 30-11- 24.60
Realters Pvt 92/A/4,92/AA/4,92/A5,92/AA/6,92/AA/7,92/AA/8,221/A/1,221/A/2,221/A/3,221/A/4 2017
Ltd & 221/A/5,Kollur Village, Ramachandrapuram Mandal, Medak Dist, Telangana
b.) Stanza
Promoters
Pvt Ltd
Total Value 61.02

Guarantees: Personal Guarantee of Mr Dheeraj Gorukanti and of Mrs Suguna Raman

Security Timeline:
For Charge by way of hypothecation and pledge:
o Hypothecation for moveable fixed assets (first charge) and current assets (second charge) to be executed and filed with
ROC/CERSAI upfront
o Security perfection including receipt of NOC from other lenders to be obtained with-in 90 days from date of first disbursement of
facilities
o NOC/Letter ceding Pari-Passu second charge on the Current Assets of the Company
o NOC/Letter ceding Pari-Passu first charge on the entire moveable fixed assets of the company
o Pledge to be created within 90 days from date of first disbursement of facilities after obtaining NOC from Axis Bank

For charge by way of mortgage:
o EM on the immoveable properties offered as security (including collateral with MV of min. Rs 50 Crs) to be done with-in 90
days from date of first disbursement of facilities
o NOC for ceding Pari-Passu first charge on the immovable fixed assets from all lenders (including from Axis Bank for collateral)
to be obtained with-in 90 days from date of first disbursement of facilities.
Filing of charge for the immovable assets to be filed with ROC/CERSAI within 30 days from the date executing the documentation.
Disbursement flow:
Disbursement of the TL facilities up to 50% of the · Compliance with pre-disbursement conditions.
sanctioned limit shall be permitted subject to: · Execution of loan documentation
· Execution of deed of hypothecation for Current Assets and movable
fixed assets
· Filing of charge with ROC/CERSAI for Current Assets and Movable Fixed
Assets.
· Execution of Personal guarantees
· Upfront submission of TSR and valuation for the immovable FA security
which may be taken from Axis Bank.
Disbursement of the TL facilities up to 100% of the · Perfection of entire security package covering:
sanctioned limit shall be permitted subject to: o Receipt of NOC from other lenders for ceding charge on items
provided as security - fixed Assets (movable and immovable; pari-passu
first charge) and Current Assets (pari-passu second charge) from other
lenders.
o Filing of charge with ROC and CERSAI for immovable fixed assets.
o Execution of corporate guarantee of companies/individuals to the
extent of value of their respective properties given as collateral security
to the bank.
o Creation of pledge post NOC from Axis Bank
· Compliance with sanction terms.

Disbursement conditions:
Stage-wise depending on the progress of the project as follows –
1. A minimum of 30 % of the Equity component should be brought in either upfront or on pro-rata basis, and a Chartered Accountant’s
certificate to the effect should be submitted
2.Disbursement will be normally made direct to suppliers/ contractors (on a pro-rata basis of the Margin component
3. For expenses pertaining to civil construction, copy of Contractors agreement to be provided to the Bank. Payment would be released to the
Contractor as per milestones mentioned in the agreement. Payments to be made based on request letter from the borrower mentioning the
heads of payment along with supporting documents like PO/Invoice copies for the expenses incurred for plant & machinery, computers and
software and furniture & Fixtures.
4. Disbursement towards reimbursement of expenses incurred (upto 12 months) shall be allowed against submission of documentary proof
like PO/ invoice copies for the expenses incurred along with CA certificate confirming on the capex incurred, maintenance of debt-equity
margin and that the expenses have been incurred out if internal accruals/unsecured loans/other equity.

Additional Terms and conditions

Semi-annual Progress reports: Borrower to submit CA certified project progress report every 6 months, covering physical and financial
progress of the project, cost and time overrun if any, in a form acceptable to the bank.

Credit had insisted on submission of TEV and appointment of LIE to monitor the project progress. However, the client is not keen to provide
the same as the capex is brownfield in nature and to be undertaking in the same building premises.

Undertaking : Prior to disbursement, Borrower to provide Management certified undertaking that there shall be no variation in excess of
10% in the key provisional financials figures vis-a-vis Audited financials for FY23

CIR: Satisfactory Confidential credit opinion report to be obtained from Axis Bank prior to disbursement

Approvals: The borrower shall obtain all necessary statutory permissions from regulatory, governmental, environmental and other agencies
and submit the same for IBL’s records

Financial covenants
During the continuation of Facility, the Borrower will adhere to the following financial covenants, which will be tested annually, FY24 onwards,
on the basis of the standalone audited financial statements.
Borrower to provide CA certificate confirming on the compliance of the following financial covenants within 180 days of close of financial
year.

1. Debt/ ATNW not to exceed 2.5x.
2. Debt/EBITDA not to exceed 4x.
3. DSCR not below 1.25x.
4. FACR: Not below 1.12x
5. Interest coverage: 2.5x

Definitions captured under sanction terms

Management Ownership
Minimum 51% ownership of the company should remain with Yashoda Healthcare Services Pvt Ltd (YHSPL) during the currency of our loan.

Cash flow routing: Client to ensure cash flow routing through IBL counters proportionate to IBL lending share

MFN clause: Any other favorable terms of sanction with respect to security and / or covenants offered to any other lenders will also be
applicable to facilities sanctioned by IBL.

Overall assessment: The proposed limits is being sanctioned on the existing security on Pari-Passu basis with other lenders, with collateral
available, and utilization in IBL limits shall be within available drawing power and assessed WC limits, hence the risk is considered Medium ,
VIII. Compliance with RBI/ Bank's policy norms

A.Financial Parameter
Actual
Financial Ratio Compliance Comments/Justifications
Value
Bench mark for Financial Parameters
EBIDTA - Positive for last 2 years
Applicable for
(i) All Entities with turnover of over Rs. 200 crores, FY 2022 :
(ii)All service entites with turnover over Rs. 25 crores INR 107.00
and Amt in
(iii)Manufacturing Entities - Turnover between over Rs Lacs;FY 2021 Complied Complied
25 crores and upto Rs. 200 crores : INR
7433.00 Amt
Not Applicable for in Lacs
(i)Trading Entities - Turnover between over Rs.25 crores
and upto Rs. 200 crores and
(ii)All Entites (including service entites) having turnover
less than or equal to Rs. 25crores
PAT - Positive for last 2 years
Applicable for
(i)Trading Entities - Turnover between over Rs.25 crores FY 2022 :

and upto Rs. 200 crores and INR 399.00
(ii)All Entites (including service entites) having turnover Amt in
less than or equal to Rs. 25 crores Lacs;FY 2021 Complied Complied
: INR
Not Applicable for 3646.00 Amt
(i)All Entities with turnover of over Rs. 200 crores , in Lacs
(ii)All service entites with turnover over Rs. 25 crores
and
(iii)Manufacturing Entities - Turnover between over Rs
25 crores and upto Rs. 200 crores
Net Cash accruals- Positive for last 2 years FY 2022 :
INR 3218.00
Not applicable: Amt in
For New projects/start up entites/cases under remedial Lacs;FY 2021 Complied Complied
action programme : INR
For new projects- last year after commencement of 6337.00 Amt
Commercial operations in Lacs
Actual
Value
Interest coverage- Min 1.50
For
(i)All Entities with turnover of over Rs. 200 crores ,
and
(iii)Manufacturing Entities - Turnover between over Rs Low ICR as EBITDA declined to Rs 1 crs owing to pricing
25 crores and upto Rs. 200 crores FY2022 : pressures in US markets as explained in the proposal.
Not Complied
0.09 Maybe accepted basis improvement in ICR to >3x in
Interest coverage - Min 1.25 FY23 (prov)
For
(i)Trading Entities -Turnover between over Rs. 25 crores
(ii)All Entities (including service entities) having
turnover less than or equal to Rs. 25 crores.
Current ratio -Min 1.10
For :
(i)All Entities with turnover of over Rs. 200 crores ,
and
(iii) Manufacturing Entities - Turnover between over Rs
FY2022 :
Current Ratio- Min.1 Complied Complied
2.40
For
(i)Trading Entities -Turnover between over Rs. 25 crores
and upto Rs. 200 crores (ii) All Entities (including
service entities) having turnover less than or equal to
Rs. 25 crores.
Lower current ratio can be acceptable, in case cash

accruals are sufficient to meet term loan repayment
obligations
Interest Bearing debt/EBIDTA <= 6
Applicable for
(i)All Entities with turnover over of Rs. 200 crores,
and
EBITDA declined to Rs 1 crs owing to pricing pressures
(iii)Manufacturing Entities - Turnover between over Rs
FY2022 : in US markets as explained in the proposal. Maybe
25 crores and upto Rs. 200 crores Not Complied
149.64 accepted basis improvement in the ratio to approx 4x in
(iv)All Entites (including service entites) having
FY23 (prov).
turnover less than or equal to Rs. 25crores
Not Applicable for

(i)Trading Entities - Turnover between over Rs. 25
crores and upto Rs. 200 crores
(ii) MFI/G&J/HFC/NBFC
Interest Bearing debt/TNW <= 2.50
FY2022 :
ATNW to include quasi equity/subordinated unsecured Complied Complied
1.03
loans and preference shares, redeemable after the
currency of our loan.
Actual
Value
Total means / total assets >= 0.15
For
(i)Manufacturing Entities - Turnover between over Rs
Total means / total assets >= 0.12

For FY2022 : Not
NA
(i)Trading Entities -Turnover between over Rs. 25 crores 0.42 Applicable
(ii)All Entities (including service entities) having
turnover less than or equal to Rs. 25 crores.
Not applicable for

(i) All Entities with turnover over of Rs. 200 crores
B.Non-Financial Parameters
All parameters complied, please see annexure.
Any other Policy related norms and compliances
Financial Ratio Benchmark Value Actual Value Complied(Y/N) Remarks

Positive for last 2
EBITDA
years
Positive for last 2
PAT
years
Positive for last 2
Net cash Accruals
years
Interest Coverage Min 1.50
Current Ratio Min 1.10
Interest Bearing Debt/
Max 6
EBIDTA
Interest Bearing Debt/ TNW Max 2.50
Total Means/ Total Assets Min 0.15
Debtors/ Short term Bank
debt Min 0.50
(Only for Diamond Units)
(Inventory + Fixed Assets
+ Financial Assets)/(Own
Max 1.25
means+Long Term loans)
(Only for Diamond Units)
Financial Ratio Benchmark Value Actual Value Complied(Y/N) Remarks

Internal Rate of Return Min 10%
Min1;
DSCR
Min Average 1.2
Interest Bearing Debt/ TNW
Max 4.5
(Post Implementation)
Project Debt/ Equity Max 4
c. Extant RBI guidelines
Complied
IX. Other matters (Modification in terms/ other approvals/ concessions etc.)

a. Pending Deferrals
NA, as NTB
b. CQALR Comments
NA, as NTB
c. Any other issue
X. Rationale/ Justification
We recommend the exposure basis the following-
Growing presence in US Market with gradual increase/diversification in product-mix and client base.
Extensive experience and strong financial risk profile of promoters from Yashoda group with demonstrated track record in the industry.
Availability of collateral over and above primary security and personal guarantee of promoters.
The company is externally rated CARE A/A1.
As per DOP, the proposed exposure basis the internal rating of IB3- maybe approved by COCC. Hence the proposal is placed for COCC approval
Shashank Rao Abhishek Arpit Srivastava

Shetty
Credit Analyst Segment Head-credit
Zonal Head-Credit
Resolution
The COCC may consider and, if deemed fit, pass the following resolution:

“The commitee considered and after discussions approved:
-Term Loan of Rs.100 crore towards capex

-Working capital limits of Rs.10 Crores
-Forward cover/derivative with PFE/MTM Rs 4 Crs
-Limit for forex and interest rate derivative contract against Term Loan of Rs 100 Crs, with PFE/MTM of 22 Crs
-Deviation from net worth policy and acceptance of CA certified net worth statements in the format provided by guaranto
to Graviti Pharmaceuticals Pvt Ltd as detailed in the memorandum dated June 28, 2023”
Annexures
Annexure I: Draft Terms and Conditions

Description Proposed Existing
Type of Facility: Cash Credit
Amount: INR 10.00 (In crores)
Earmarking: NA
To meet working capital requirements/short-
Purpose:
term cash-flow mismatch
Indicative Rate: Floating rate of Base Rate +
10.00% at monthly rest.
a. The bank has the right to
substitute/change MCLR with any
alternate rate or change the spread over
Rate of interest: MCLR or over such rate as per policy of
the bank or as may be requested by
RBI/statutory directives.
b. Final pricing to be approved by Head
CCBG
Repayable on demand, subject to review at

Period of Sanction: annual intervals or as may be decided by the
Bank.
Minimum Margin Required
Book Up To 90 25
Margin: Debt days %
25
Stocks RM/WIP/FG
%
Specific securities as Primary Security -:
Current Assets
Pari-Passu First charge on the entire current

Primary Security:
assets of the company, present and future viz.
inventory, receivables and other Current
assets along with other working capital
lenders.
Specific securities as Collateral Security -:
Fixed Assets (All)
Pari-Passu first charge on the entire fixed

Collateral Security:
assets (movable and immovable) of the
company– present and future – including EM
of immovable fixed assets of the company
thereon along with other Term Loan lenders
Guarantee of: As per common security conditions

Drawing Power will be computed by applying
the above margins to declared value of stocks,
after excluding Advance payment guarantees,
Drawings and Exclusions:
Sundry Creditors, and stocks acquired under
Usance LCs, procured on credit under Stand by
LCs and receivables from subsidiaries.
For unutilized portion of cash credit limit, Bank
reserves the right to charge Commitment fee,
Additional condition: penal interest or fee in any other form towards
meeting additional regulatory directives for
undrawn portion.
As per Bank's Documentation
Documentation: Manual/Instructions, in consultation with Legal
Department

CAD to ensure that following clause is included
in Primary Security while issuing final sanction
letter. Standard Cred Pro language mentioned
under “Common Collateral and Security” to
be ignored:
Primary Security:
First Pari-Passu charge on the entire current
assets (present and future) of the company
viz. inventory, receivables and other Current
assets along with other working capital banks.
CAD to ensure that following clause is included

in Collateral Security while issuing final
sanction letter. Standard Cred Pro language
mentioned under “Common Collateral and
Security” to be ignored:
Second Pari-Passu charge on the fixed
assets (movable and immovable) including EM
on the company properties - present and
future - along with other working capital
banks.
Personal Guarantee of Promoter Directors:

Personal Guarantee: 1. Mr. Dheeraj Kumar Gorukanti.
Disbursement of the CC up to 50% of the

sanctioned limit shall be permitted subject to:
- Upfront Execution of deed of hypothecation
for Current Assets, facility agreement and ROC
filing in 30 days, execution of PG
Security creation process and cap on
disbursement : Balance WC to be disbursed after Security
perfection including receipt of NOC from
other lenders for which timeline of 90
days from date of first disbursement of
facilities is granted.
The CC limit utilization will be as per the DP

MPBF: availability and within assessed MPBF of Rs 70
crores.
Description Proposed E
Type of Facility: Long Term Loan
Amount: INR 100.00 (In crores)
Earmarking: NA
Purpose: To meet the project cost of plant expansion and procurement of machineries
Indicative Rate: Floating rate of Base Rate + 0.00% at monthly rest.
Rate of
The bank has the right to substitute/change MCLR with any alternate rate or change the spread over MCLR or over such rate as
interest:
per policy of the bank or as may be requested by RBI/statutory directives. Final pricing to be approved by Head CCBG
37 Month(s)
Tenor:
Door to door tenor of 7 years 9 months;
Moratorium is for 9 months and repayment is quarterly for 7 years.
Moratorium:
Interest to be serviced Monthly and as and when debited to the account.
Equity Margin: Minimum 30% of the total cost
The loan will be disbursed in multiple phases and final disbursement will happen by end of 2nd year from the date of disbursement
Availability Subject to the satisfaction of all agreed terms and conditions, the Facility shall be available to the Borrower for drawdown from the
period: date of disbursement till 24 months.
Any amount remaining un-drawn at the end of the Availability Period shall automatically be cancelled.
Repayment The Term Loan is proposed to be repaid in quarterly instalments with a moratorium of 4 quarters from date of
Schedule: sanction/disbursement.
Specific securities as Primary Security -:
Primary Fixed Assets (All)

Security:
Pari-Passu first charge on the entire fixed assets (movable and immovable) of the company– present and future – including EM of
immovable fixed assets of the company thereon along with other Term Loan lenders
Current Assets
Pari-Passu First charge on the entire current assets of the company, present and future viz. inventory, receivables and other
Current assets along with other working capital lenders.
Immovable Fixed Assets - IMFA by third party
Name of the Owner Property details Valuation Date Valuation Amt(in Crs) a.)M/s Jade Realtors Pvt Ltd b.) Green sky Estates Pvt
Ltd c.) Twister Constructions Pvt Ltd Open land in Survey no. 96/AA,97/AA2,98/A1,98/A2, 100/A3,100/A4,159/AA/1,159/A/2 &
Collateral 159/A/3 , Kollur village, Ramachandrapuram Mandal, Medak Dist, Telangana 30-11-2017 12.44 M/s Alpaca Constructions Pvt Ltd
Security: Open land in Survey No. 152/A/1, 152/A/2, 153/E/1,153/E/2,153/E/3, 153/E/4 & 153/A, Kollur Village, Ramachandrapuram
Mandal, Medak Dist, Telangana 30-11-2017 8.37 a.)M/s Jade Realters pvt Ltd b.) Stanza Promoters Pvt Ltd c.)Waxen Realters Pvt
Ltd Open land in Survey No. 157/A/3, 157/A/4, 157/A/1,157/AA/2,157/AA/3, 158/AA/1,
158/AA/2,158/AA/3,158/AA/4,158/A2,159/AA/4 & 161, Kollur Village, Ramachandrapuram Mandal, Medak Dist, Telangana 30-11-
2017 15.61 a.)Waxen Realters Pvt Ltd b.) Stanza Promoters Pvt Ltd Open land in Survey No. 92/A/1, 92/A/2, 92/A/3,
92/A/4,92/AA/4,92/A5,92/AA/6,92/AA/7,92/AA/8,221/A/1,221/A/2,221/A/3,221/A/4 & 221/A/5,Kollur Village,
Ramachandrapuram Mandal, Medak Dist, Telangana 30-11-2017 24.60
Equity Shares - EQ Shares of GPPL
First PP on pledged 30% equity shares of the company.

Stage-wise depending on the progress of the project as follows –
1. A minimum of 30 % of the Equity component should be brought in either upfront or on pro-rata basis, and a Chartered
Accountant’s certificate to the effect should be submitted
2.Disbursement will be normally made direct to suppliers/ contractors (on a pro-rata basis of the Margin component
Disbursement: 3. For expenses pertaining to civil construction, copy of Contractors agreement to be provided to the Bank. Payment would be
released to the Contractor as per milestones mentioned in the agreement. Payments to be made based on request letter from the
borrower mentioning the heads of payment along with supporting documents like PO/Invoice copies for the expenses incurred for
plant & machinery, computers and software and furniture & Fixtures.
4. Disbursement towards reimbursement of expenses incurred (upto 12 months) shall be allowed against submission of
documentary proof like PO/ invoice copies for the expenses incurred along with CA certificate.
Interest on Unsecured Loans from promoters shall be subservient to interest payable to IBL.
Undertaking from the borrower that the facility will not be utilized for land acquisition/capital market transaction, or for any
speculative purposes.
Any unsecured loans/deposits raised by the borrower (Present/Future) would be subordinate to IBL loan and to be repaid
only with IBL prior approval.
The Bank reserves the right at its sole discretion without assigning any reason whatsoever, to modify, vary or add to the
terms and conditions, or to terminate the said Banking Facilities concerned, at any time, and to recall any or all of the
amounts due under the said Banking Facilities. All amounts due in respect of the said Banking Facilities shall become payable
Other forthwith on such demand
Conditions: Certificate from the Income Tax Officer of the ward that clearance has been granted under Sec 281 of the Income Tax Act for
creation of mortgage. (To be obtained within 60 days after 1st disbursement).
The Bank will have the right to share credit information as deemed appropriate with CIBIL or any other institution as
approved by RBI from time to time.
All special and general covenants as applicable as per Bank’s norms to be complied with.
Company to submit Information on UFCE on a quarterly basis on self-certification basis. However, at least on annual basis,
UFCE information should be audited and certified by the statutory auditors of the Company. First such information to be
provided before disbursement/release. UFCE data statement to be submitted within 30 days of the quarter-end.
No dividend to be paid in case of company defaulting in servicing of principal or interest
During the continuation of Facility, the Borrower will adhere to the following financial covenants, which will be tested annually,
FY2024 onwards, on the basis of the standalone audited financial statements.
Borrower to provide CA certificate confirming on the compliance of the following financial covenants within 180 days of close of
financial year
1. Debt/ ATNW not to exceed 2.7x.

2. Debt/EBITDA not to exceed 4x.
3. DSCR not below 1.25x.
4. FACR Not Below 1.12x
5. Interest Coverage not below 2.5x
Definitions
· Total “Debt” will be defined as Outstanding sum of secured and unsecured term loans and working capital bank
borrowings, including bills discounted, preference share capital, external commercial borrowings, foreign currency
Financial convertible bonds, and other interest bearing advances (including mobilization advance). Debt will not include non-
covenants: interest bearing group advances, loan from related parties, CCPS, other quasi equity.
· ATNW shall mean the sum of equity share capital, share premium, general reserves and retained earnings less
revaluation reserves. Goodwill and any other intangible assets shall be excluded for calculations of Equity. TNW will not
include minority interest, if any. ATNW to exclude advance/investments in related parties. ATNW will include non-interest
bearing group advances, loan from related parties, CCPS, other quasi equity.
· EBITDA shall mean net income from ordinary activities (for the avoidance of doubt excluding non-operating income
and expense) before taking into account: (a) Tax; (b) Interest Expense; c) any exceptional or extraordinary items;
and (d) amortization of intangible assets and depreciation of tangible assets
· Annual DSCR for any Financial Year is to be calculated as (PAT + Depreciation + Amortization + Deferred Tax +
Other non-cash items + Interest Expense) divided by the (Interest Expense + Repayment)
· FACR: Fixed asset coverage ratio which shall be computed as ratio of net fixed assets to the aggregate external term
debt
· Interest Cover: EBITDA / Finance cost
CAD to ensure that the following clause is included in Security while issuing final sanction letter. Standard cred pro language for
security and guarantee to be ignored.
Primary
Security:
Pari-Passu first charge on the entire fixed assets (movable and immovable) of the company– present and future – including EM of
immovable fixed assets of the company thereon along with other Term Loan lenders.
CAD to ensure that the following clause is included in Security while issuing final sanction letter. Standard cred pro language for
security and guarantee to be ignored.
- Pari-Passu second charge on the entire current assets of the company viz. inventory, receivables and other Current assets along
with other Term Loan lenders.
· First pari-passu on Pledge of 30% of the paid up capital of the company along with other TL Lenders
· Pari passu first charge (to be shared with Axis Bank) by way of EM of the 3rd party Immoveable properties given
below with market value not less than Rs.50 Cr
· Guarantee of the following companies/individuals to the extent of value of their respective properties given as collateral
security to the bank.
Name of the Property details Valuation Valuation

Owner Date Amt(in
Crs)
a.)M/s Jade Open land in Survey no. 96/AA,97/AA2,98/A1,98/A2, 30-11- 12.44

Realtors Pvt 2017
100/A3,100/A4,159/AA/1,159/A/2
Ltd
& 159/A/3 , Kollur village, Ramachandrapuram Mandal, Medak Dist, Telangana
b.) Green
sky Estates
Pvt Ltd
c.) Twister
Collateral Constructions
Security: Pvt Ltd
M/s Alpaca Open land in Survey No. 152/A/1, 152/A/2, 153/E/1,153/E/2,153/E/3, 153/E/4 & 30-11- 8.37
Constructions 153/A, Kollur Village, Ramachandrapuram Mandal, Medak Dist, Telangana 2017
Pvt Ltd
a.)M/s Jade Open land in Survey No. 157/A/3, 157/A/4, 157/A/1,157/AA/2,157/AA/3, 158/AA/1, 30-11- 15.61
Realters pvt 158/AA/2,158/AA/3,158/AA/4,158/A2,159/AA/4 & 161, Kollur Village, 2017
Ltd Ramachandrapuram Mandal, Medak Dist, Telangana
b.) Stanza
Promoters
Pvt Ltd
c.)Waxen
Realters Pvt
Ltd
a.)Waxen Open land in Survey No. 92/A/1, 92/A/2, 92/A/3, 30-11- 24.60
Realters Pvt 92/A/4,92/AA/4,92/A5,92/AA/6,92/AA/7,92/AA/8,221/A/1,221/A/2,221/A/3,221/A/4 2017
Ltd & 221/A/5,Kollur Village, Ramachandrapuram Mandal, Medak Dist, Telangana
b.) Stanza
Promoters
Pvt Ltd
Total Value 61.02
Personal Guarantees of the following Promoter Directors:

1. Mr. Dheeraj Gorukanti
Guarantees:
For Charge by way of hypothecation:
o Hypothecation for moveable fixed assets (first charge) and current assets (second charge) to be executed and filed with
ROC/CERSAI upfront
o Security perfection including receipt of NOC from other lenders to be obtained with-in 90 days from date of first
disbursement of facilities
o NOC/Letter ceding Pari-Passu second charge on the Current Assets of the Company
o NOC/Letter ceding Pari-Passu first charge on the entire moveable fixed assets of the company
Security o Pledge to be created within 90 days from date of first disbursement of facilities after obtaining NOC from Axis
Timeline: Bank
For charge by way of mortgage:
o EM on the immoveable properties offered as security (including collateral with MV of min. Rs 50 Crs) to be done
with-in 90 days from date of first disbursement of facilities
o NOC for ceding Pari-Passu first charge on the immovable fixed assets from all lenders (including from Axis Bank for
collateral) to be obtained with-in 90 days from date of first disbursement of facilities.
Filing of charge for the immovable assets to be filed with ROC/CERSAI within 30 days from the date executing the
documentation.
Disbursement of the TL facilities up to 50% of the · Compliance with pre-disbursement conditions.
sanctioned limit shall be permitted subject to:
· Execution of loan documentation
· Execution of deed of hypothecation for Current Assets and movable

fixed assets
· Filing of charge with ROC/CERSAI for Current Assets and Movable

Fixed Assets.
· Execution of Personal guarantees
Upfront submission of TSR and valuation for the immovable FA security

which may be taken from Axis Bank.
Disbursement of the TL facilities up to 100% of · Perfection of charge on the Immovable Fixed Assets of the company
the sanctioned limit shall be permitted subject to: including:
Disbursement
flow: o Receipt of NOC from other lenders for ceding charge on items
provided as security - fixed Assets (movable and immovable;
pari-passu first charge) and Current Assets (pari-passu second
charge) from other lenders.
- Execution of corporate guarantee of companies/individuals to the

extent of value of their respective properties given as collateral
security to the bank.
o Filing of charge with ROC and CERSAI for immovable fixed

assets.
o Creation of pledge post NOC from Axis Bank
· Compliance with sanction terms.
The Borrower should inform the Bank in case of time overrun of more than one month or cost overrun of more than 5%, together
Delay/ Time
with the action plan for correction. Failure to do so will be treated as a breach of covenant. The borrower should fund all such
Cost overruns:
overruns.
Quarterly reset of basis and spread.
Further Lenders shall have a right to reset the Spread for the Facility immediately upon occurrence of the following events:
· RBI revises the standard provision on assets and/or;
Interest Reset: · RBI enhances the risk weight for assets and/or;
· Failure to obtain Credit rating within the stipulated timelines and/or;
· Downward revision in the Credit rating of the borrower by an accredited rating agency.
Occurrence and subsistence of an Event of Default.
Within 1 month from the date of final drawdown, the company has to provide end use certificate from a practicing Chartered
End Use
Accountant validating that the TL sanctioned by the IBL not been utilized for the acquisition of land.
Certificate:
Documentation: As per Bank’s manual/guidelines.

Valuation and Satisfactory Title search reports (TSR) shall be obtained.
Bank reserves the right to acceptance of TSR or valuation report from other lenders provided advocate/professional is/are not
blacklisted by IndusInd Bank
Other Terms:
The Bank reserves the right at its sole discretion without assigning any reason whatsoever, to modify, vary or add to the terms and
conditions, or to terminate the said Banking Facilities concerned, at any time, and to recall any or all of the amounts due under the
said Banking Facilities. All amounts due in respect of the said Banking Facilities shall become payable forthwith on such demand
The Term Loan is proposed to be repaid in quarterly instalments with a moratorium of 4 qtrs as per the following schedule starting
from Q1 FY2025: -
Year % of Repayment No. of instalments Instalment amt per qtr Total Amount
(Rs in Crs)
2023-24 - - - -
2024-25 5% 4 5.00
Repayment
Schedule: 2025-26 5% 4 5.00
2026-27 5% 4 5.00
2027-28 20% 4 20.00
2028-29 20% 4 20.00
2029-30 20% 4 20.00
2030-31 25% 4 25.00
Total 100% 100.00

Type of Facility: Forward Cover Limit
Notional Principal-NA This Notional Principal
amount is for purpose of guidance value only.
The Bank will enter into such contract, purely
on a discretionary basis. The Bank may not
Notional Amount:
accept bookings, even if the amount of
outstanding contracts is below this value,
depending on nature of outstanding &
proposed contracts and market conditions
PFE: INR 4.00 (In crores)
MTM: INR 4.00 (In crores)
Earmarking: NA
To cover trade related payables/receivables in
foreign currency and risk exposure of foreign
currency loans. The Bank will enter into such
contract, purely on a discretionary basis, for
Purpose:
each deal based on an internal exposure
computation. The manner and mode of
arriving at this is solely as per the Bank’s
internal guidelines.
The Contracts under this limit should not extend
beyond the tenor of the loan.
Regardless of the maturity date of contracts,

Period of Sanction: the facility will be subject to a review on
annual basis, and the bank will have the right
to modify the terms/ withdraw any undrawn
facility, at its discretion.
Commission: As mutually agreed
Cash/Deposit margin: NIL.
Maximum tenure of Contract: 12 Month(s)

Security / Guarantees: Unsecured
Board resolution with all RBI covenants.
Documentation: Any other document suggested by Bank’s
Legal Department
· The Borrower is in default to the
Bank in this or any other facility, or is in
default to any other bank or financial
institution.
Events of default:
· Failure to bring in additional deposit
margin forthwith to maintain the
exposure within the sanctioned threshold
MTM.

1. The transactions should be in full
conformity with RBI regulations.
2. Net payables and charges recoverable

immediately when due, by debit to
borrower’s operative account.
3. All outstanding contracts under this
facility shall be subjected to a “mark-to-
market” computation, in a manner decided
by the Bank, on a daily basis, or even during
the course of a day. In case, the net
payables as a result of such computation
exceeds Rs. 4.0 Crores, the Bank has the
right to:
a. Call upon the customer to bring in
additional deposit margin forthwith to
maintain the exposure within the
sanctioned exposure,
b. In case of failure to bring such margin,
the Bank shall have the right to cancel one
or more or all of the outstanding forward
contracts, without further reference to the
customer. The customer shall be liable to
make good the losses suffered by the Bank
consequently, and the Bank will not be
responsible for any consequential direct or
indirect loss.
c. Refuse to enter into any fresh contracts
and market conditions/ or withdraw/ cancel
the facility in part or full.
4. The limit will be governed by

Bank’s/RBI/FEDAI rules and regulations.
Other Terms:
5. The company shall furnish a certificate to
the effect that the exposure covered by the
facility has not been covered with any other
bank.
6. Application and documentation will be as

per RBI/ Bank's rules. All Exchange Control
norms and FEDAI rules are to be complied
with.
7. Depending upon volatility of forex

market, the Bank in its absolute discretion,
may insist for requisite cash margins for
booking of forwards.
8. Swap charges and losses will be

payable immediately on cancellation/ early
delivery/ roll over or extension of contracts,
unless agreed to otherwise, by the Bank in
writing.
9. Company to furnish Risk Management

Policy declaration before entering into long
term forward contract or any other
derivative instrument.
10. In case of unwinding of above swaps

under any circumstance, the swap
unwinding cost, if any, will be charged to the
borrowers account
Primary Security: As per common security conditions

Collateral Security: As per common security conditions

Type of Facility: Interest Rate Derivative

Notional Principal-NA This Notional Principal
amount is for purpose of guidance value only.
The Bank will enter into such contract, purely
on a discretionary basis. The Bank may not
Notional Amount:
accept bookings, even if the amount of
outstanding contracts is below this value,
depending on nature of outstanding &
proposed contracts and market conditions
PFE: INR 22.00 (In crores)
MTM: INR 22.00 (In crores)
Earmarking: NA
To hedge interest rate risk, currency risk and
to convert risk exposure from one currency to
Purpose:
another of Term Loan. Facility to be used to
against IBL Loan only.
The Contracts under this limit should not extend
beyond the tenor of the loan.
Regardless of the maturity date of contracts,
Period of Sanction: the facility will be subject to a review on
annual basis, and the bank will have the right
to modify the terms/ withdraw any undrawn
facility, at its discretion.
One year from the date of Sanction / Renewal,
Period of Validity:
whichever is later
Commission, charges, premium, cost:

As mutually agreed
Cash/Deposit margin: Nil
Margin: Nil
36 Month(s)
Tenor:
As applicable to the underlying Term Loan
As applicable to the underlying Term
Security / Guarantees: Loan. (the additional collateral cover of
1.12x of TL to not apply here)
· ISDA and other standard

documents to be obtained. Non-
standard documents to be obtained in
consultation with legal cell.
· Board resolution with all RBI
Documentation: covenants
· Risk management policy
declaration from the Customer should
be obtained and perused
Any other document suggested by Bank’s
Legal Department
Events of default: As stipulated for the Term Loan

1. The transactions should be in full
conformity with RBI regulations.
2. Net payables and charges recoverable
immediately when due, by debit to
borrower’s operative account.
3. All outstanding contracts under this
facility shall be subjected to a “mark-to-
market” computation, in a manner decided
by the Bank, on a daily basis, or even during
the course of a day. In case, the net
payables as a result of such computation
exceeds Rs. 22.00 Crores, the Bank has the
right to:
a. Call upon the customer to bring in
additional deposit margin forthwith to
maintain the exposure within the
sanctioned exposure,
b. In case of failure to bring such margin,
the Bank shall have the right to cancel one
or more or all of the outstanding
forward/derivative contracts, without
further reference to the customer. The
customer shall be liable to make good the
losses suffered by the Bank consequently,
and the Bank will not be responsible for
any consequential direct or indirect loss.
c. Refuse to enter into any fresh contracts
and market conditions/ or withdraw/ cancel
the facility in part or full.
4. The limit will be governed by
Other Terms: Bank’s/RBI/FEDAI rules and regulations.
5. The company shall furnish a certificate to
the effect that the exposure covered by the
facility has not been covered with any other
bank.
6. Application and documentation will be as

per RBI/ Bank's rules.
7. Depending upon volatility of forex

market, the Bank in its absolute discretion,
may insist for requisite cash margins for
booking of derivatives.
8. Swap charges and losses will be

payable immediately on cancellation/ early
delivery/ roll over or extension of contracts,
unless agreed to otherwise, by the Bank in
writing.
9. Company to furnish Risk Management

Policy declaration before entering into long
term forward contract or any other
derivative instrument.
10. In case of unwinding of above swaps

under any circumstance, the swap
unwinding cost, if any, will be charged to the
borrowers account.
Primary Security: As per common security conditions
Fixed Assets (All)
Pari-Passu first charge on the entire fixed

assets (movable and immovable) of the
company– present and future – including EM
of immovable fixed assets of the company
thereon along with other Term Loan lenders

Financial covenants: As stipulated for the Term Loan
Interest rate swap structure, Option structures
like deferred call spread & seagull, Cross
Products: currency swap structures – USD to INR/ INR to
USD (Deferred premium for derivative
structure to be paid over the period of loan
Common Conditions
Common Facility Specific Conditions
Defer/
S No Header Condition Text Status Justification
Waive
1 Common Conditions Proposed
for Medium Term
Events of Default
Loan & Long Term
Loan Indusind Bank reserve the right to call an Event of
Default under circumstances that are customary to a
Facility of this nature, including but not limited to:
The Borrower is in default to the Bank in this or

any other facility, or is in default to any other
bank or financial institution
The Borrower has not complied with any loan
covenant applicable for this facility or for any other
facility structure
The Borrower ceases to carry on operations/
prolonged strike/ lock outs
Any material adverse change, which in the opinion
of the Bank, impairs the ability of the borrower to
make timely repayments
Any downgrade in external loan ratings below
BB+.
Failure to comply with security and other
covenants (including financial and performance).
Non-maintenance or avoidance of Insurance
Revocation of operating licenses and regulatory
and other authorizations and approvals in case of
Borrowers
Misrepresentation
Cross default for all indebtedness in the Borrower
Breach of material terms
Insolvency or initiation of insolvency proceedings
with respect to the borrower
Cessation of business by the borrower or threat of
cessation
Invalidity/rescission/unlawfulness/repudiation of a
Finance Document
Any of the Financing Agreements of the Facility
becoming ineffective, unenforceable or invalid
Non reinstatement of corporate guarantee as per
the conditions given in the Corporate Guarantee
Falloff Event
Unlawfulness of any Financing Agreements or any
condition or stipulation under any Financing
Agreements ;
The occurrence of any event or circumstance
which is prejudicial to or imperils or depreciates
the security given to the Lenders or security
ceases to be effective
Occurrence of any other event, which are likely to
result or which can have/shall have Material
Adverse Effect and the same is not cured within 30
days
Failure to obtain / maintain any insurance as
required by the Lender(s), and or review from
time to time, or failure to pay insurance premium
when due.
Promoter or Borrower or any of their directors are
included in RBI's willful defaulters (except nominee
directors nominated by any financial institution).
Consequences of Event of Default
On occurrence of an Event of Default (at Bank’s sole

discretion), the Bank may exercise rights as are
customary to a transaction of this nature including,
inter-alia, any one or more of the following rights:
Restrict the Borrower from declaring or paying any

dividend or other distribution in respect of the
shares in case of payment default
Stipulate any further terms and conditions as the
Lenders deem fit with respect to Financing
Defer/
Waive
Agreements
Accelerate the maturities of the Facility
Enforce the Security including invocation of
personal Guarantee in case of payment default
Declare the commitment to be cancelled or
suspended
In case of a payment default, appoint concurrent
auditor and determine the terms of concurrent
audit
Issue notice regarding payment of proceeds of any
insurance or compensation received by the
Borrower
Lender(s) and/or the Reserve Bank of India (RBI)/
Credit Information Bureau of India Ltd. (CIBIL) will
have an unqualified right to disclose the name of
the Borrower and its directors as defaulters in such
manner and through such medium as Lender(s)
and the RBI, in their absolute discretion, may
think fit
Appoint its nominee on the Board of Directors of
the Borrower
To convert the loan to equity or other capital in
accordance with the regulatory guidelines.
Restructure management set-up of the Borrower
Exercise any other right that the Lender(s) may have

under the Financing Agreements and Security
documents or under applicable law
Pre Disbursal Conditions
Header Defer/
S No Condition Text Status Justification
Text Waive
Unit Inspection mandatory for manufacturing company, real estate/other
1 New to Bank Proposed
project finance proposals
CIR: Satisfactory Confidential credit opinion report to be obtained from Axis
2 Proposed
Bank prior to disbursement
Approvals: The borrower shall obtain all necessary statutory permissions
3 from regulatory, governmental, environmental and other agencies and submit Proposed
the same for IBL’s records
Undertaking : Prior to disbursement, Borrower to provide Management
4 certified undertaking that there shall be no variation in excess of 10% in the Proposed
key provisional financials figures vis-a-vis Audited financials for FY23
Business to obtain a declaration from the borrowers about the credit
facilities already enjoyed by them from other banks as specified in
Annex I to RBI’s circular DBOD.No.BP.BC.94/08.12.001/2008-09 dated
December 8, 2008 read with circular RBI/2008-
2009/183/DBOD.No.BP.BC.46/08.12.001/2008-09 dated September 19,
5 2008. Proposed
Business to obtain regular certification by a professional Company
Secretary, Chartered Accountants or Cost Accountants regarding
compliance of various statutory prescriptions that are in vogue, as per
specimen given in Annex III to the circular
DBOD.No.BP.BC.110/08.12.001/2008-09, February 10, 2009
Shortfall undertaking from client to be obtained to meet any short fall in debt
6 Proposed
servicing obligation.
Post Disbursal Conditions
Header Defer/
Text Waive
Information
Exchange
Exchange of information with multiple banks as per the RBI circular
1 under Proposed
(mentioned above) should be done at quarterly intervals.
Banking
Arrangement
Information
Exchange The Due Diligence certification, regarding compliance with various statutory
2 under prescriptions, should be obtained, and should be submitted and utilized for Proposed
Banking providing inputs, for the review proposal, i.e. within 6 months.
Arrangement
Header Defer/
Text Waive
1. Drawing and Exclusions:
Drawing Power will be computed by applying the above margins to

declared value of stocks after excluding Advance payment guarantees,
Sundry Creditors and stocks acquired under Usance LCs, Buyer’s Credits
(whether guaranteed or not by us) and procured on credit under Stand
by LCs.
2. Drawing Power Computation:
Drawings under these facilities will be subject to “Drawing Power”

computation based on monthly stock statements. While calculating
drawing power value of primary securities would be determined in the
same manner as arrived by the company in its annual audited accounts
and should ordinarily be as follows:
Raw Materials & Lowest of cost/

Stores market
Stock in process At cost of

production
Finished goods Lower of cost of

Sales/ market price
Receivables & Book At billing price

Debts
Common
Conditions Any deviation should have Bank’s consent.
3 Proposed
For Cash 3. Stock Statements
Credit a. It is essential that the outstanding borrowings at all times are fully
covered by the value of the hypothecated security less the
stipulated margins and less value of stocks purchased / imported
against usance letters of credit outstanding. The value of the
security to be taken at market value/actual value whichever is
less.
b. If, at any time, the drawing power yielded by the stocks, stores
etc., held by the borrower falls below the amount borrowed, the
borrower should forthwith adjust such excess under advice to us.
c. In order to ensure compliance with this requirement, it is
necessary that appropriate books and records (e.g. a control
ledger/register) are maintained by the borrower showing the
relevant particulars on a periodic basis. It should be possible for
the borrower to watch the extent of the outstanding borrowings /
liability vis-à-vis the stock position and for the Bank to verify at
any future date the declarations and statements required to be
submitted to it under the arrangements, on the basis of books and
records maintained by the borrower.
d. The stocks/book-debts statement as on the last day of each month
should be submitted to the bank within 15 days from the last day
of the preceding month.
e. Boards mentioning that the stocks are hypothecated to the
Consortium/ Bank are to be displayed at a prominent place at the
factories and warehouses.
Processing As mutually agreed

4 Proposed
Charges
Yearly inspection to be carried out. Cost to be borne by the company. Bank
5 Inspection reserves the right to accept inspection report of other banks in consortium or Proposed
multiple banking arrangement.
Minimum 51% ownership of the company should remain with Yashoda
Healthcare Services Pvt Ltd (YHSPL) during the currency of our loan.
Ownership In the event of breach of this covenant, the Bank reserves the right to recall
6 Proposed
Covenant the facility. All amounts due in respect of the said Banking Facilities shall
become payable forthwith on such demand.
Header Defer/
Text Waive
7 General The borrowing arrangements would be subject to the following terms and Proposed
Covenants conditions:
1. The Bank will have the right to examine the books of accounts of the
borrower and to have their factories inspected from time to time by
officers of the Bank and/or outside consultants and the expenses
incurred by the Bank in this regard will be borne by the borrower.
2. The Bank may at its sole discretion disclose such information to such
institution(s) in connection with the credit facilities granted to the
borrower.
3. During the currency of the Bank’s credit facilities, the borrower shall not
without the prior approval of the Bank in writing: -
i. Effect any change in their capital structure.
ii. Shall not pledge the shares held by the promoters, group beyond
10% of holdings, for raising any loan or for securitizing any loans
or advances availed/to be availed by them from any bank/FI/
lender.
iii. Formulate any scheme of amalgamation/reconstitution.
iv. Undertake any new project/scheme without obtaining the Bank’s
prior consent unless the expenditure on such expansion etc., is
covered by the borrower’s net cash accruals after providing for
dividends, investments, etc., or from long term funds received for
financing such new projects or expansion.
v. Invest by way of share capital in or lend or advance funds to or
place deposits with any other concern. Normal trade credit or
security deposits in the usual course of business or advances to
employees, etc., are, however, not covered by this covenant.
vi. Enter into borrowing arrangements either secured or unsecured
with any other Bank, financial institution, borrower or otherwise
save and except the working capital facilities, granted/to be
granted by other consortium /member banks, under
consortium/multiple banking arrangement and the term loans
proposed to be obtained from financial institutions/banks for
completion of the replacement-cum-modernization programme.
vii. Undertake guarantee obligations on behalf of other companies/
associates/ affiliates
viii. Declare dividends for any year except out of the profits relating to
that year
4. The borrower should not make any material change in their

management set up without the Bank’s permission. No material change
in the shareholding pattern of the company which has an effect of a
possible change in the management control of the company shall be
made without prior approval of the Bank.
5. The borrower will keep the Bank informed of the happening of any
event, likely to have a substantial effect on their production, sales,
profits, etc., such as labour problem, power cut, etc., and the remedial
steps proposed to be taken by the borrower.
6. The Borrower will inform the Bank if any winding up petition is filed
against the Borrower.
7. The borrower will keep the Bank advised of any circumstances adversely
affecting the financial position of their subsidiaries including any action,
taken by any creditor against any of the subsidiaries.
8. The borrower shall submit the declarations as regards:
i. Not to use the funds for capital market activities,
ii. That neither the Company nor the Directors face any litigation.
iii. The Directors / senior executives of the company, and/or their
relatives are not connected with the Bank (IBL) and are not
directors in any other bank.
iv. No commission has been paid to guarantors on extending their
guarantee for the advance
9. The Bank would charge the standard service charges in respect of

different items of service as in force from time to time.
10. The borrower to furnish to the Bank every year two copies of
audited/printed balance sheet and profit and loss account statements of
the borrower immediately on being published / signed by the auditors,
along with the usual renewal particulars.
11. To forward half-yearly balance sheet and profit and loss account
statements within two months from the end of the half-year and annual
audited accounts within 3 months.
12. To maintain a minimum net working capital of 25% of current assets.
Header Defer/
Text Waive
13. Negative Lien:
The borrower should not create, without prior consent of the Bank, charges
on their any or all properties or assets during the currency of the credit
facilities granted by the Bank.
14. Insurance: -
All stocks and collateral securities like immovable properties should be kept
fully insured against all risks including fire, strikes, riot, malicious damages &
natural calamities etc., with the incorporation of Bank’s Hypothecation clause
and the policies retained by the borrower.
A copy of this policy should be submitted to the Bank for their record.
A list of the current insurance policies should be submitted to us with the

monthly stock statements detailing therein the names and addresses of the
insurer, brief particulars of goods covered, type of cover, amount of cover and
date of expiry of each policy(This is required only for large corporate
borrowers with multiple stock locations and numerous insurance
policies).
15. External Loan Rating:
The Borrower is advised to have all the facilities sanctioned herein rated by an
approved external rating agency, and the rating letter specifying these limits
should be with us within 3 months of date. In case of default in this, Bank will
have the right to reprice the facilities, with retrospective effect from 3 months
of date of sanction.
16. Valuation and Satisfactory Title search reports (TSR) shall be

obtained. Bank reserves the right to acceptance of TSR or valuation
report from other lenders provided advocate/professional is/are not
blacklisted by IndusInd Bank
17. Working capital finance should not be diverted to capital market, real
estate or other long term uses.
18. Others –
i. Non-fulfillment of above financial and non-financial covenants will

trigger an event of default, unless specifically waived in writing.
Consequence of an event of default could be levy of penal interest
and/or withdrawal of the facility.
ii. In the event of withdrawal/cancellation of the facility, the borrower
accepts to fully cash collateralize any exposure that the Bank has
assumed on the client or on behalf of the client, which could not
be immediately repaid or unwound.
iii. Borrower/facilities should conform to guidelines that have
been/will be issued by RBI from time to time.
iv. All interest and cess are exclusive of any taxes and withholdings
that may be payable on account of prevailing statutes.
v. The Bank has the right to change or modify the rate of interest, or
alters the spread, at such intervals or whenever it may deem fit,
and a notice of the change to the Borrower will be binding on
them.
vi. The Bank reserves the right at its sole discretion without assigning
any reason whatsoever, to modify, vary or add to the terms and
conditions, or to terminate the said Banking Facilities concerned,
at any time, and to recall any or all of the amounts due under the
said Banking Facilities. All amounts due in respect of the said
Banking Facilities shall become payable forthwith on such demand.
vii. As regards the un-utilised limits if any under the facility, Bank
reserves the right at any point of time, to revoke or cancel and/or
vary, alter or modify the said un-utilised limits, at Bank’s discretion
without prior notice & without assigning any reasons therefore.
viii. The copy of Annual Stock Audit Report should be made available to
the Bank (in case of consortium /Multiple Banking).
ix. The company shall pay on demand to the bank the cost between
the solicitors/ advocates/ company secretaries/ inspectors and
clients incurred by them or any of them in connection with the
registration of the securities and clarifications/ charges thereof
with the Registrar of Companies, compilation of search/ status
reports and/ or any other matter incidental to or in connection
with transactions of the Company with the Bank and also
reimburse the Bank for all out-of-pocket expenses including legal,
stamping, documentation, communication and travel costs
Header Defer/
Text Waive
incurred in the negotiation, documentation, and disbursement of
the facility
x. The company shall deposit sales proceeds and shall route all
foreign exchange business and other ancillary business through
their account maintained with us in proportion to our share in the
capital financing.
xi. Moneys brought in by partners/ proprietors/ principal
shareholders/ directors and their friends and relatives will not be
allowed to be maintained at lower than the projected levels
without Bank’s written permission.
xii. Company should furnish a written confirmation that the company/
its directors in the best of their knowledge and belief are not
defaulters with any bank/FI, and there are no legal proceedings
initiated or pending against them for recovery of any borrowings.
In case in the opinion of the Bank’s there has been a material adverse change
in the Borrower’s business and financial condition, such as:
1. Sale or curtailment or closure of any of the Borrowers main businesses

2. Cash losses in any one quarter or continuing accounting losses in three
quarters,
3. Adverse action by any Regulatory Authority
4. Default to the Bank under any other facility or to any other lender
5. Action by any class of stakeholders which is likely to significantly impair
Borrower’s business
6. Filing of winding up petition by any creditor/shareholder against the
Borrower.
The Bank is entitled to withhold further disbursements and/or recall the loan
in part or full.
Header Defer/
Text Waive
Bank should inform details of this sanction to other banks offering
working capital limits to the borrower. NOC from other lenders should be
obtained before disbursement of enhanced amount. In case no reply is
received in 15 days, it will be deemed that they have no objection.
Company to inform the Bank in case of default to any other
Bank/ Financial Institution. In case of default to any other bank/ FI
or defaults/ non-compliances in any other facility, the Bank may recall
the facilities and may choose not to disburse against vacant limits, if
any.
Company shall keep the Bank informed of legal action, if any, initiated
against the directors / the company in any court of law during the
currency of the facility.
Non-fulfilment of any of the financial and non-financial covenants will
trigger an event of default, unless specifically waived in writing.
Consequence of an event of default could be levy of penal interest
and/or withdrawal of the facility.
Bank may at its discretion disclose such information to such
institution(s)/regulatory/statutory authority(ies) in connection with the
credit facilities granted to the company
Taxes and out of pocket expense shall be in addition to the fees and
interest mentioned.
Aggregate outstanding under all the sanctioned limits should not exceed
Other Rs. ………. crs at any point of time.
8 General and special covenants are applicable. Proposed
Covenants
The Company is advised to have the facilities sanctioned herein rated by
an approved external rating agency. Copies of such external rating letter
should be forwarded to IBL within 90 days of the disbursement.
Company to submit Information on Unhedged Foreign Currency
Exposure on a quarterly basis on self-certification basis. However,
atleast on annual basis, UFCE information should be audited and
certified by the statutory auditors of the Company. First such
information to be provided before disbursement/release. Business Head
to approve pricing of facilities taking into account RW/provision impact,
if any.UFCE data statement to be submitted within 30 days of the
quarter-end. Prior to disbursement the company to submit the latest
UFCE data statement audited and certified by Statutory Auditor
Business team to confirm and hold on record the following, prior to
disbursement of facility:
a. Company/ its directors do not appear on RBI/CIBIL defaulters list
or SAL of ECGC
b. Neither the company nor any of its directors are facing any
litigation from banks/ FIs.
c. None of the Directors/ senior executives or their relatives is
connected with our Bank or are directors in any other bank.
d. Confirmation from company that Accounts with all lenders are
‘Standard’ and that there are no overdues with the lenders
Business to obtain a declaration from the borrowers about the credit

facilities already enjoyed by them from other banks as specified in
Annex I to RBI’s circular DBOD.No.BP.BC.94/08.12.001/2008-09 dated
2008.
Business to obtain regular certification by a professional Company
Secretary, Chartered Accountants or Cost Accountants regarding
compliance of various statutory prescriptions that are in vogue, as per
specimen given in Annex III to the circular
Internal DBOD.No.BP.BC.110/08.12.001/2008-09, February 10, 2009
9 CAD should ensure that quarterly information in the format specified in Proposed
Compliance
the RBI’s circular DBOD.No.BP.BC.94/08.12.001/2008-09 dated
2008, is passed on to the other banks, and information called for
likewise from them.
Business should ensure that copies of external rating letter should be
forwarded to CAD & RMD within 90 days of the disbursement(As per
Circular no.: RMD/351/10/10/2013)
Business should send demand notice for recovery of interest and
principal as due every month and ensure complete recovery in time.
Header Defer/
Text Waive
Cash flows to be routed through IBL counters in proportion to the share in
banking arrangment.
10 Proposed
Internal condition- Compliance of cash flow routing to be informed to Risk on
a quarterly basis
Other Conditions
Defer/
Waive
All assets charged / financed by the Bank to be fully
1 Insurance insured for 110% of the value in the name of the Proposed
borrower with the Bank Clause.
Any other favorable terms of sanction with respect to
2 MFN Clause security and / or covenants offered to any other lenders Proposed
will also be applicable to facilities sanctioned by IBL.
The Facility Agreement will permit the Lender to assign
or transfer any of its rights and/or obligations under the
Assignment and Facility Agreement to other banks and financial
3 Proposed
Transferability institutions. The Borrower must cooperate in providing
required information and executing appropriate
documentation in this regard
Internal Conditions
Header Defer/
Text Waive
Noting of valuations to be obtained by RETSO Team within time period of 60
1 Proposed
days from date of disbursement.
Common Collateral and Security

Amounts In crores
Proposed Existing
Personal Guarantees of all partners/directors/minimum 51% shareholders/property owner which shall include-
Name of Guarantor Guarantor Address Tangible Net Worth Date of Networth
DHEERAJ KUMAR GORUKANTI Hyderabad 136.86crores -
SUGUNA RAMAN Hyd 1.84crores -
Annexure II: Industry Exposure
Not Available
Annexure III: Confirmations
Annexure IV: Facility Assessment

1. Working Capital
a. FBWC Limits
AUD-Mar-2020 AUD-Mar-2021 AUD-Mar-2022 PRO-Mar-2023 PRJ-Mar-2024
Turnover : Net Sales 203.15 253.04 163.31 262.14 327.90
CURRENT ASSETS 0.02
Raw Materials 16.20 28.47 46.60 77.00 44.47
[Month's consumption] 1.74 2.75 7.98 6.95 2.97
Work in Progress 16.59 24.25 12.57 0.00 0.00
[ Months' cost of
1.58 1.95 1.30 0.00 0.00
production]
Finished Goods 0.00 0.00 0.00 0.00 0.00
(Month's cost of goods
0.00 0.00 0.00 0.00 0.00
sold)
Packing, Stores &
0.00 0.00 0.00 0.00 0.00
Consumables
Domestic Receivables 20.49 19.60 32.54 69.00 84.69
[ Months' Domestic
6.42 4.58 8.71
Sales]
Export receivables 0.00 0.00 0.00 0.00 0.00
[ Months' Export Sales] 0.00 0.00 0.00 0.00 0.00
(Total receiveables -
Including Non current- 0.01 0.01 0.02 0.03 0.03
Months Sales)
Other current Assets 0.00 0.65 10.92 10.95 10.92
Cash and Bank 3.96 14.63 3.20 7.20 46.25
Loans, advances &
23.60 74.39 87.42 58.81 64.15
Deposits etc
Deferred Receivable 0.00 0.00 0.00 0.00 0.00
TOTAL CURRENT ASSETS 80.84 161.99 193.25 222.96 250.48
CURRENT LIABILITIES
Trade Creditors 23.22 27.85 43.43 76.00 44.47
[ Months' purchase] 2.46 2.45 5.91 5.58 3.62
Trade Creditors for Exp 0.00 0.00 0.00 0.00 0.00
Loans & advances 0.00 0.00 0.00 0.00 0.00
Statutory liabilities due
0.00 0.00 0.00 0.00 0.00
within one year
Provisions
- Tax 0.00 0.00 0.00 0.00 0.00
- Dividend 0.00 0.00 0.00 0.00 0.00
-Others 0.57 1.93 3.65 0.00 0.00
Others 0.31 0.62 1.46 2.00 3.03
LT Liabilities due within
0.00 13.88 18.52 25.20 24.25
one year
TOTAL CURRENT
LIABILITIES (other than 24.10 30.40 48.54 78.00 47.50
Bank Borrowings)
COMPUTATION OF
MAXIMUM PERMISSIBLE
BANK FINANCE
Total Current Assets (A) 80.84 161.99 193.25 222.96 250.48
Total Current Liabilities
24.10 30.40 48.54 78.00 47.50
(B)
(other than bank
borrowings)
Working Capital Gap (C
56.75 131.59 144.71 144.96 202.98
= A-B)
Minimum Stipulated
20.21 40.50 48.31 55.74 62.62
NWC (D)
(25% of total current
assets excluding export
receivables)
Actual/Projected net
56.75 131.59 131.28 95.96 132.98
working capital (E)
Item C minus Item D 36.54 91.09 96.40 89.22 140.36
Item C minus Item E 0.00 0.00 13.43 49.00 70.00
Maximum Permissible
0.00 0.00 13.43 49.00 70.00
Bank Finance
(lower of the above two
figures)
Excess borrowing
0.00 0.00 0.00 0.00 0.00
representing
shortfall in NWC
FBWC Limit Comments

Inventory: Overall inventory levels are expected to improve gradually in FY23. However, inventory holding is expected to increase as a
precaution to any disruptions caused due to global events.

Months FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
Raw Materials 1.74 2.14 2.13 1.93 2.97 2.96 2.96 2.96 2.96 2.96 2.85 2.85
WIP 1.58 1.95 1.30 - - - - - - - - -

Receivables: Receivable levels during FY23 & FY24 are expected to stretch marginally mainly to accommodate diversification in consumer
base and accommodate lead time taken from production to final delivery of goods.

Rs. Crores FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
Receivables 20 20 33 69 85 105 131 162 194 232 232 232
Months’ Sales 1.49 1.17 3.30 3.16 3.10 3.08 3.06 3.04 3.03 3.02 3.02 3.02

Trade Creditors: Creditors stretched marginally due to less than estimated sales and volatility in inputs in FY22 and However, the same is
improve in the projected period.

Rs. Crs FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
Creditors 23 28 43 76 44 55 68 84 100 119 119 119
2.85
Months’ Purchase 2.46 2.45 5.91 5.58 3.62 2.82 2.82 2.82 2.85 2.85 2.85
b.NFBWC Limits
Assessment of Forward Cover Limit:

Amount
Sr. No Parameter
(Rs. in Crores)
1 Total Export turnover (3 years) 1,250
2 Average turnover 417
3 Previous year exports turnover (FY 23) 262
4 Eligible Limit (Higher of 2 or 3) 417
5 Limit Recommended by IBL 50
2. Term Loans Assessment

TEV study: The company has not entrusted detailed TEV study to any outside agency, because the existing staff are technically qualified and
experience to handle the proposed capex which is not complex in nature.
Assumptions Considered:
Gradual increase in capacity utilization backed by commercialization of new molecules.
Interest rate on WCL & TL is taken at 9% per annum and Annual Tax rate at 30%.
Existing & Proposed TL in Balance Sheet:

Lender FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
Axis Bank 160.57 146.69 130.63 108.80 84.55 51.31 15.99 - - -
IBL - - 30.00 55.00 90.00 85.00 65.00 45.00 25.00 -
Movement of Debt:
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
LTL 160.61 146.69 130.63 102.96 132.96 141.31 100.99 65.00 45.00 25.00 0.00 0.00
CPLTD 0.00 13.88 16.06 25.20 24.25 38.24 40.33 35.99 35.99 20.00 25.00 0.00
Total LTD (A) 160.61 160.57 146.69 128.16 157.21 179.55 141.31 100.99 80.99 45.00 25.00 0.00
BB (B) 0.00 0.00 13.43 49.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00
Total debt (A+B) 161 161 160 177 227 250 211 171 151 115 95 70
USL (promoters) (C ) 81.60 80.89 83.78 92.00 92.00 92.00 92.00 92.00 92.00 92.00 92.00 92.00
Total A+B+C 242 241 244 269 319 342 303 263 243 207 187 162
Scenario-1: EBITDA remains at 18.93% for projected period.
FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31

EBITDA 62.07 77.59 96.99 121.23 145.48 174.58 174.58 174.58
PBT 15.84 30.87 50.64 78.05 107.09 140.48 143.00 144.80
PAT 11.09 21.61 35.45 54.63 74.97 98.34 100.10 101.36

PAT % 3.38% 5.27% 6.92% 8.53% 9.75% 10.66% 10.85% 10.99%
NCF 35.84 47.21 59.82 77.08 96.15 118.66 120.42 121.68
Rep 21.84 29.25 38.24 40.33 35.99 35.99 20.00 25.00

Int. 21.48 21.12 21.98 20.74 17.20 13.77 11.25 9.45
Net Obligation 43.32 50.37 60.21 61.06 53.19 49.76 31.25 34.45
DSCR 1.32 1.36 1.36 1.60 2.13 2.66 4.21 3.81

Avg. DSCR 2.31
Scenario-2: Sales growth 5% annually and EBITDA at 18.93% for projected period.
FY24 FY25 FY26 FY27 FY28 FY29
Net Sales 327.90 344.30 361.51 379.59 398.56 418.49
Dep 24.75 25.60 24.37 22.45 21.18 20.32

Int. 21.48 21.12 22.20 21.41 18.19 15.48
EBITDA 62.07 65.18 68.43 71.86 75.45 79.22
PBT 15.84 18.45 21.87 28.00 36.07 43.42
PAT 11.09 12.92 15.31 19.60 25.25 30.39

PAT % 3.38% 3.75% 4.23% 5.16% 6.34% 7.26%
NCF 35.84 38.52 39.67 42.04 46.43 50.72
Rep 21.84 24.25 33.24 38.33 21.99 24.99

Int. 21.48 21.12 22.20 21.41 18.19 15.48
Net Obligation 43.32 45.37 55.44 59.74 40.18 40.47
DSCR 1.32 1.31 1.12 1.06 1.61 1.64

Avg. DSCR 1.34
Others Annexures:
Annexure V: PSL Details

Not Applicable
Annexure: GST Detail
Annexure - Compliances to Non Financial Norms

Parameter Policy Prescription (Norm) Compliances Comments/Justifications
Ad hoc Facility
Ad hoc Facility Need based ad-hoc facility permitted as per applicable DOP Not Applicable NA
for period not exceeding 3 months.
Borrower Eligibity Norm
Borrower Eligibility The borrower/any of the group entities (basis available Complied Complied
Norm information) should have been a standard asset in the
books of other bank/FI and is not under the purview of
CDR/ BIFR/NCLT/Resolution/Restructuring
framework/RFA/Fraud etc. in preceding 3 years unless
there is a change in management consequent to the
transfer of equity/control to a new, unrelated promoter.
Any deviations to the prescribed norms shall be approved

as provided under Bank's scheme for Delegation of Powers
- detailed below
For borrowers where any one of the above is observed,

COCC shall be the minimum Sanctioning Authority
Note: For borrowers reported as RFA/Fraud or if the

entity/Promoter directors/partners are reported as wiful
defaulters, prior approval of MD is required
Borrower Eligibility The borrower/any of the group entity (basis available Complied Complied
Norm information) should not have entered into an OTS with any
of the lenders in last 3 years
Any deviation to the prescribed norms shall be approved as

provided under Bank’s Scheme for Delegation of Powers
Borrower Eligibility The Borrower/ Promoters’ names are not appearing in Complied Complied
Norm Wilful Defaulters/Defaulters List of RBI/CIBIL during last
three year.
Any deviation to the prescribed norms shall be approved as

provided under Bank’s Scheme for Delegation of Powers
detailed below



Borrower Eligibility Borrowers /Directors/promoters names are not appearing Complied Complied
Norm in CFR

as provided under Bank's scheme for Delegation of Powers
detailed below


Borrower Eligibility The borrower is not reported as SMA2 by any Bank, at the Complied Complied
Norm time of sanction

as provided under Bank's scheme for Delegation of Powers.
As per DOP as below
"COCC shall be the minimum Sanctioning Authority for

company reported SMA-2 in last one year (unless the
reporting bank confirms that it is due to a minor/ technical
error)"
Borrower Eligibility The borrower is not a non constituent borrower (NCB) and Complied Complied
Norm if a NCB then guidelines for sanction of credit facility to
Non - Constituent Borrowers (as per the circular dated
December 2, 2019) are met with.
Equipment leasing, Hire purchase and Factoring services
Equipment leasing, Banks have been permitted to undertake leasing, Hire Not Applicable NA
Hire purchase and Purchase and Factoring activities departmentally. Where
Factoring services Banks undertake these activities departmentally, they
should maintain a balanced portfolio of equipment leasing,
hire purchase and factoring services vis-à-vis the
aggregate credit. Their exposure to each of these activities
should not exceed 10 percent of total advances. An overall
cap of 5% of Bank’s advances is proposed for purchase of
receivables (including assignment of receivables).
Group Exposure Limit including NBFC
Group Exposure Credit exposure to group of connected borrowers should Complied Complied
Limit as per RBI not exceed 25% of Tier 1 capital funds of the bank as per
the latest audited balance sheet. The maximum group
borrower exposure works out to Rs. 12,398 crore.
Industry Wise Exposure Limits
Industry Advance If industry Is high risk then Hold/ or to be reduced from Not Applicable NA
Limits (High Risk) the present level
ECC may be authorized to permit exceptions to the above

ceilings for High Risk industries on a case to case basis,
subject to proper justifications
Industry Advance Category Ceiling for FB+NFB outstanding (% Complied Complied
Limits (Other than to total FB + NFB outstanding)
High Risk) Low Risk 7%
Medium Risk 5%
Ceiling for Trading and Services sector advances, excluding
advances backed by deposits shall be as follows.
Trading (Wholesale + Retail) : 10% of total FB + NFB
outstanding.
Services sector : 5% of total FB + NFB outstanding
Large Value Exposure
Large Value The overall quantum of large value exposure is capped at Not Applicable NA
Exposure 100 % of Tier 1 capital funds. For this purpose any single
ticket size exposure (FB+NFB) greater than or equal to Rs.
2000 cr will be considered as large value exposure.
Any deviations to this limit shall be approved by COD based

on appropriate justifications.

Letter of Comfort (LOC)
Overall cap on The overall cap for all credit proposals backed by Letter of Not Applicable NA
Letter of Comfort Comfort / Counter guarantee issued by NBFCs should be
Exposure issued by Rs. 7,500 cr
NBFC
Product wise Exposure Limit
Limit for term loan The aggregate ceiling (based on outstanding) of the Bank Complied Complied
exposure with residual maturity in excess of 5 years to be restricted
to 25% of the total fund based and non-fund based
outstanding of the Bank.
Single Borrower Exposure Limit
Internal exposure Complied Complied
Limit for all except RAM Rating Exposure Limit (Rs. in cr)
LRD Central Govt PSU Others
IB 1 5000 4000
IB 2+/IB 2/IB2- 4000 3000
IB 3+ 3000 2500
IB 3 2300
IB 3- 2000
IB 4+ 1500
IB 4 1200
IB 4- 1000
IB 5+ 150
IB 5 100
IB 5- 75
IB 6 25*
IB 7 & IB 8 Exit from account / Reduction in limits
*for CCBG cases any deviations to be approved in terms of

the Board approved Delegation of Powers.
Single Borrower Exposure Limit including NBFC
Credit Exposure to Single Borrower exposure limit to be maximum Rs. 9918 cr. Complied Complied
Single borrower as As per RBI norms Credit exposure to single borrower may
per RBI exceed 20% by an additional 5% (i.e. up to 25% of Tier 1
capital funds) in exceptional cases and with the approval of
the Board. Additional exposure limit of 5% works out to Rs.
2479 crores.
Derivative Exposures - selling of Cost Reduction products
Derivative ‘Contracted Exposure’ can be taken only on Listed Not Applicable NA
Exposures - selling companies and their subsidiaries/joint ventures/associates
of Cost Reduction having common treasury and consolidated balance sheet or
products unlisted companies with a minimum net worth of Rs. 200
crore provided:- a. All such products are fair valued on
each reporting date b. The companies follow the AS
notified u/s 211 of the Companies Act, 1956 and other
applicable Guidance of ICAI for such products/ contracts as
also the principle of prudence which requires recognition of
expected losses and non-recognition of unrealised gain c.
Disclosures are made in the financial statements as
prescribed in ICAI press release dated 2nd December 2005
d. The companies have a risk management policy with a
specific clause in the policy that allows using the type/s of
cost reduction structures.
Derivative ‘Probable Exposure’ can be taken only on Corporates Not Applicable NA
Exposures - Cost having a minimum net worth of Rs 200 cr and an annual
Reduction products export and import turnover exceeding Rs 1000 cr and
satisfying all other conditions as stipulated for ‘Contracted
Exposure’.
Exposure to Individual, Proprietor and Partnership firms
Single borrower In respect of exposures to individuals, proprietors, the Not Applicable NA
exposure limit internal ceiling for Single borrower exposure will be limited
by the amounts shown in the above table or Rs. 50 cr
whichever is lower

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6/28/23, 9:33 AM credpro.indusind.com/OSDocumentsGeneration/CreditApplicationPDF.aspx?

IndusInd Bank Ltd

Date:28-Jun-2023 Date of meeting: Agenda No:

ANY OTHER DEVIATION

Existing Existing Proposed Proposed Increase -

Final pricing to be approved by CCBG-Head, basis pricing policy.

III. Credit Rating

Internal rating- IB3 ????? OVERRIDE

As per CARE Rating rationale dated 3rd Jan 2023,

Key Rating Strengths:

IV. Indebtedness/ Exposure

b. Irregularities during the year

c. Comments on security creation

Break up of Net Worth of Guarantors as on 31.03.2022

Condition Compliance Status

Additionally, the Bank, may at its Shall be complied at bank’s discretion.

d. Whether appearing in any defaulter list

RBI/ CIBIL Defaulter Nil

Dependency on Russia/ Ukraine/

Industry Classification: Others

Borrower Score – ???

Nil qualifications made by the auditor in the annual report FY22.

h. Compliance with existing terms of Sanction

VI. Performance & Financial Indicators

Particulars FY20 FY21 FY22

Peer Financial Details

GPPL Medihauxe Viven Drugs and

Revenue 262 216 217

Profit After Tax 1 10.6 2.8

Total Debt 177 7.6 50

Current ratio 1.46 3.6 1.2

Net worth 198 39 56

Debt/Equity 0.90 0.19 0.89

Debt/EBITDA 3.57 0.5 3

Interest cover 3.49 24 1.3

VII. Risk Analysis

Suguna Raman (Director at GPPL):

diversification & scaling up of operations by introducing latest equipment/specialty services in hospital.

Subsidiaries (all 100% held)

ii) Business Risk

Domestic (under transfer pricing) 0.35 0% 15 9% 16 6%

The below table shows transfer price sales break-up molecule-wise

Volumes sold and realizations at transfer price

Key risks and mitigants

Assessment: Given the above, business risk is medium

Parent company - Yashoda Healthcare Services Pvt Ltd

iii) Industry Risk

iv) Financial Risk

FY21 FY22 FY23

Cash in hand (encumbered) 0.07 0.07 0.06

Axis Bank loan details

Primary : Exclusive charge on fixed assets of company, present and future.

Collateral : Minimum collateral coverage of 1.12x, comprising of the following:

a. Second charge on current assets, present and future

c. Pledge of shares to extent of 30% of paid up share capital of company.

b. Personal guarantees of promoters Mr Dheeraj and Mrs Suguna

Purpose: To meet working capital requirements/short-term cash-flow mismatch

Personal Guarantee of Promoter Directors:

2. Sanction of Forward cover derivative limits

PFE/MTM : Rs 4 Crs (@8% of Notional)

Purpose: To cover trade related payables/receivables in foreign currency

Maximum Tenor: 12 months

PFE/MTM : Rs 22 Crs (@22% of Notional)

Maximum Tenor: As applicable to the underlying Term Loan