INFORMATION MEMORANDUM

RISHS INTERNATIONAL SCHOOL

PROPOSAL FOR
TAKE OVER AND ADDITIONAL FINANCIAL ASSISTANCE
AGGREGATING TO RS. 30.00 CRORES

December, 2023

RISHS INTERNATIONAL SCHOOL

 I N D E X

1. PROFILE …………………………………………………………………………………………………………………………2

2. INTRODUCTION…………….. ……………………………………………..……………………………………………. 3

3. FACILITIES OF SCHOOL……………………………………………………………………….……………………….4

4. MANAGEMENT DETAILS……………. ………………………………..………………………..……………………9

5. PRESENT PROPOSAL ……………………. ……………………………..………………………..…………………. 11

6. PROFITABILITY PROJECTIONS..……………………………………..…………………………..…………….…16

7. ENCLOSURES .…….. ……………………………..……………………….…………….…… 24

8. FINANCIAL DATA …………………………………………………………………………………………..25

RISHS INTERNATIONAL SCHOOL 1

 PROFILE

Name of the School : RISHS INTERNATIONAL SCHOOL

(Run by RISHS Educational Foundation)

ROC Code : ROC-Chennai

CIN Number : U80902TN2015NPL101296

Registration No. : 101296

Company Sub Category : Non-Govt. Company

Date of Incorporation : 07/07/2015

Constitution & Date of : Section – 8 Company

Constitution/Commencement Affiliation Number 1930979
Of Business School Code : 55870

Business : International School (CBSE) (Nursery to XII)

Mangadu : CBSE Classes KG - Grade 12

Arcot : CBSE Classes KG - Grade 12
Asset Classification : Standard

Registered Address : : 16/2A, Kuntrathur Main Road, Mangadu,

Chennai – 600 122 (Tamilnadu)

Students strength (Class Pre- :

Primary to XII) Branch
Academic Year Academic Year
2022-23 2023-24
Mangadu 1,306 1,553
Ranipeth 372 749
Total 1,678 2,302

Revenue : 2023-24 - Rs. 20.31 Crores

2024-25 - Rs. 29.05 Crores
Website : https://www.rishsinternationalschool.com/

RISHS INTERNATIONAL SCHOOL 2

 2.0. INTRODUCTION

2.01 Brief Particulars of School :

RISHS International School commenced its operations in academic year 2016-17. The
School is affiliated to the Central Board of Secondary Education – International, New
Delhi (CBSE). The School was commenced with classes from Kindergarten to Class VII
in the first phase and second phase expansion of the school was included classes VIII to
XII. Excellent Infrastructure, with air conditioned classrooms for the pupils to canvass in
a sizable and comfy ambience.

2.02 RISHS International School, Mangadu, Chennai – 122 - Mr. N. Sakthivelu, Founder
Chairman of the Institution, hails from the family of Landholders. His focus to do
something for the field of education stands non parallel resulting in starting the RISHS
International School, at Mangadu, Chennai in the year 2016. Within a span of five
years, the school has established its name as one of the premier institutions offering
quality education to the student community at large. The USP of the Institution are as
under :-

 As far as the infrastructural facilities are concerned, the school stands on an

alluring landscape with a sprawling campus with spacious centralized
classrooms and a large playground.

 The Science Laboratories, infirmary, library stocking over 6000 books on its hold,
magnificent reception area/front office and large atrium to conduct school
functions are to just a name a few facilities.

 The School has a fleet of 10 school buses for children and staff to commute. The
school, on its parameters, meets all the global standards.

 The following sports activities are conducted on the campus :

Cricket, Badminton, Tennis, Football, Archery, Silambam, Equestrian facilities,
gymnastic exercises, training for swimming and other indoor games such as
Carrom and Chess.

 Besides, Western and Classical music and Dance of all genres are also taught.

RISHS INTERNATIONAL SCHOOL 3

2.02 RISHS International School, Arcot, Ranipet – We started the operations in the year
2021-22 in the name of Rishs International School , Veppur , Housing Board affliated to CBSE
New Delhi having classes for KG till Grade 12. Initially we started the school with 36 students
and in the second academic year it increased to 370 students and currently we function with
about 753 students and 13 Busses.

3.0. FACILITIES OF SCHOOL

3.01 Details of Facilities :

Rishs International School believes that good infrastructure is a pre-requisite for quality
education. As a mark the wide, classy, sophisticated RISHS School building was
established in the year 2016.

The school campus is spread over Two acres of land and authentically designed where
the students learn and strive to achieve their best. The infrastructure of RISHS is a
valuable asset towards building a student community par excellence.

Bright Classrooms

At RISHS, it’s ensured that the process of assimilating knowledge works seamlessly. For
this very purpose, it designed its classrooms to be comfortable and complementary to
our learning methods.

RISHS INTERNATIONAL SCHOOL 4

 The campus is centrally air conditioned with technology enabled classrooms which
include all essential elements like activity corner, projector and smart boards which
augment smart learning.

Lab Equipment

RISHS has well equipped laboratories for each of the science subject which aims to
provide ample space and adequate equipment’s as per the CBSE guidelines. The labs
are well ventilated and comprise all safety procedures.

RISHS INTERNATIONAL SCHOOL 5

 Library

RISHS library is a rich treasure trove of encyclopedia, illustrated dictionaries and popular
Science books with series such as Tell Me Why and Book of Knowledge. It is well
stocked with classic, modern and contemporary works of literature in Tamil, English
and Hindi. Moreover the library has a decent assortment of CDs of all ranges. The
library also subscribes for many journals and magazines to help students to stay up to
date and explore new career avenues. RISHS library is a great reservoir of knowledge
with appropriate learning resources.

RISHS INTERNATIONAL SCHOOL 6

 Sports Arena

Sports is an integral part of the curriculum and RISHS offers a plethora of indoor and
outdoor activities for the physical development of a child. We believe that our students
must have the opportunity to engage in a competitive and recreational sport as well as
cultivate the true spirit of sportsmanship.

Visual and Performing Art

Every individual pupil is encouraged to enrich and heighten the creative aspect of their
mind and to be highly involved in the performing arts. This is achieved through diverse
trainings and workshops for different categories viz. piano, guitar, drums, theatrical
games, animations, drawing, play dought, sculpture and recycling.

RISHS INTERNATIONAL SCHOOL 7

 Health and Hygiene

Personal health and cleanliness of the premises are our key words and are under the
strict vigilance of our health department with its qualified physician.

RISHS INTERNATIONAL SCHOOL 8

 4.0. MANAGEMENT DETAILS

4.01 RISHS is a pioneer co-educational school located in the heart of the city of Chennai
established on 2016; the school is a rare blend of tradition and modernity. RISHS
International School comes from the illustrious lineage of RISHS Groups established in
the year 2007 by Mr. N. Sakthivelu, Founder Chairman with agro machineries and Real
Estate for above two decades. RISHS Groups has always strived to reach out to society,
beyond the realms of business. Education has remained a key element of its socially
responsible endeavor. As an initiative, RISHS International School marked its beginning
in 2017.

4.02 RISHS EDUCATIONAL FOUNDATION is formed by the promoters Directors, Mr. N.

Sakthivelu, MBA and Mr. R. Balambika, MSc, M.Phil, in the year 2015, RISHS Educational
Foundation ‘has been registered under section 8 of the Indian Companies Act 2013, as
Non Profit Organization with an objective to promote education by establishing
schools, colleges, institutions of with international standards, accordance with
Governments’ National Education Policy.

4.03 “RISHS International School” is located at Mangadu, Chennai, affiliated with the Central
Board of Secondary Education, New Delhi. The School is having world class amenities
and infrastructures are on par.

4.04 Shri N. Sakthivelu, MBA ,Chairman: an entrepreneur from last many years. Builder and
Developer by profession he is a well known personality in the Society.

Aadhaar Number : 8563 9016 6043

PAN : BJGPS1943E

RISHS INTERNATIONAL SCHOOL 9

4.05 Smt. R. Balambika Sakthivelu is a Post Graduate in Statistics and has done her M.Phil. As
a Director, she administers multiple discipline of the school. She is a good
communicator and has a skill to get the work done from her subordinates. Her goal to
convert the school into a thousand plus learning center is challenging and achievable.

Aadhaar Number : 4793 7032 3954

PAN : AJKPB0935G

4.06 Both the Directors are Tax Payers. Their gross income and net worth are tabulated below :

(Rs. In Lacs)
Name of the Directors Financial Gross Income Tangible Net worth
Year As at 31st March 2022

2018 58.01
Shri N. Sakthivelu 2019 30.60
2020 94.00 3501.51
2021 68.42
2022 28.97
2023 58.00
2018 79.44
Mrs. R. Balambika Sakthivelu 2019 27.90
2020 79.20
2021 8.00 705.47
2022 13.44
2023 48.00
Total 2018 138.45
2019 58.20 4206.98
2020 173.20
2021 76.42
2022 42.41
2023 106.00

RISHS INTERNATIONAL SCHOOL 10

 5.0 PRESENT PROPOSAL

5.01 RISHS has been growing in number of students and renew over the years as shown
below :

Financial Student Total

Revenue (in Lacs) excl. Other Total
Year Income
Mangadu Ranipeth Mangadu Ranipeth Books &
Uniform
2021-2022 1106 67 1173 777.99 0 777.99
2022-2023 1306 372 1678 1102.44 209.36 1311.80
2023-2024 1553 749 2302 1440.12 491.00 100 2031.12
(Projection)

5.02 It can be seen from the above table that the total student strength has gone up from
723 to 2302 during academic year 2019-20 to 2023-24. During these years, the school
has added Arcot branch which has started giving revenue from academic year 2022-
23. No significant capital expenditure was incurred in the intermittent years. Two
academic years were affected by Covid-19 and resultant low growth in revenues.

Post Covid-19, academic year 2022-23 was the full year when the students attended
physical classes from the commencement of the academic year.

Looking into the trend of admissions, the management is projecting strength of 2302
students with combined revenue of Rs. 2031.12 lacs excluding Other Income for the
ensuing academic year. By 2024-25 the management expects a total strength of
students 3292 and projected revenue of Rs. 2868.00 Lacs excluding Other Income.

5.03 In order to achieve the above revenue and to accommodate the expected students,
the school has added infrastructure in the form of construction of one floor, installation
of lifts, setting up of solar panels to reduce the power bill, extend air conditioning to
the new classrooms and also to furnish the same. Similarly, in Ranipet School, the extra
area needs to be created and additional infrastructure in the form of furniture,
computers and other education aid need to be added.

RISHS INTERNATIONAL SCHOOL 11

 Prior to commencement of Academic Session 2023-24 required Capital Expenditure
incurred. In order to fully utilised the expecting infrastructure and to accommodate the
number of Students following further expenses needs to be urgently incurred.

Sr. Particulars Amount

No. (Rs. in Crores)
A Mangadu – Phase II
1 Upgradation of Electrical Supply 130.00
2 Lifts – amount required for completion 75.00
3 AC - Duct Type (For 2 floors) 75.00
5 Furniture & Computer 50.00
6 Playground and Others 300.00
7 Other Capex 100.00
8 Elevation 60.00
9 Lab 75.00
Total (A) 865.00
B Ranipet
7 Finishing the existing infrastructure to add more space for 300.00
classrooms
8 Furniture & fixtures 65.00
9 Computers and accessories (30 nos @ Rs.50,000) 15.00
10 Sports equipment & Miscellaneous assets 21.00
Total (B) 401.00
TOTAL CAPITAL EXPENSES ESTIMATED (A+B) 1266.00

5.04 Fund requirement:

Sr. Particulars Amount
No. (Rs. in Lacs)
Phase II
a) To take over the existing facility from Indian Bank 1134.00
b) Present Working Capital 400.00
c) Additional Working Capital 200.00
d) Proposed Term Loan 1266.00
Total 3000.00

RISHS INTERNATIONAL SCHOOL 12

5.05 Present Banking Arrangement:

Presently, the school is having the following limits with Indian Bank, Ambattur branch

(Rs. In Lacs)
Bank Sanctioned limit As on outstanding
06.02.2024
Indian Bank – 6528126498 400.00 238.49
Indian Bank – 6562818398 36.00 8.75
(1 Bus)
Indian Bank – 6585514110 300.00 183.24
Indian Bank – 6885675064 134.00 22.59
Indian Bank – 7109248214 69.75 64.47
Indian Bank – SOD 400.00 400.00
Indian Bank – Rs. 6.11 Crores 611.00 617.07
Total 1950.75 1534.70

In addition, the school has availed financial assistance from NBFCs for purchase of
vehicles. The present outstanding of the vehicle loans is as under:

Bank Present Outstanding

06.2.2024
TATA Motors ( 4 Busses) 88.02
Cholamandalam (10 Busses) 163.87
Indusind Bank Ltd ( 3 Busses) 7.82
Total 259.71

RISHS INTERNATIONAL SCHOOL 13

5.06 Security :

 Primary

First charge on the immovable property and hypothecation of movable property

situated at

a) Primary Security -1 ,16/2A, Kuntrathur Main Road, Mangadu, Chennai –

600 122, having measurement and market value as follows;

Floor Sq.Ft Amount

Ground 15,545 3,73,08,000
First 15,488 3,56,22,400
Second 15,488 3,71,71,200
Third 15,488 3,87,20,000
Terrace 1,279 23,02,200
Play Area 4,853 48,53,000
Amenities 4,88,70,000
Total 68,141 20,48,46,800

b) Primary Security no -2 situated at No. 408/3, Veppur, Housing Board

Phase – 1, Arcot, – Ranipet – 632509.

Floor Sq.Ft Amount

Ground 19,734 4,53,88,200
First 19,586 4,30,89,200
Second 18,235 3,64,70,600
Third 914 18,27,540
Amenities 62,50,000
Total 58,469 13,30,25,540

RISHS INTERNATIONAL SCHOOL 14

  Personal Guarantee
(Rs. in Lacs )
Name of the Guarantors Total as on
31.03.2023
Shri Sakthivelu ( Details annexed below) 4608.59
Smt. Balambika Sakthivelu 486.14
Total : 5094.73

Shri N.Sakthivelu :

Property 1 – Tiruvachi Village

Immovable Property Situated at R.S No 464/1,464/2 – Part 2,3,4,5 , Vaikalmedu,

Tiruvachi, Perundurai, Erode 638 052 measuring 1,33,510 Sq.Ft and having market
value Rs 289.99 Lacs/-

Part No Survey No Area ( SQ Ft) Market Value

Part 2 464/1, 464/2 39,857 8,65,74,186.84
Part 3 464/1, 464/2 39,857 8,65,74,186.84
Part 4 464/1, 464/2 39,857 8,65,74,186.84
Part 5 464/1, 464/2 13,939 3,02,77,180.68

Total 1,33,510 28,99,99,741

Property 2 : Mowbrays Road, Alwarpet:

Immovable Property Situated at Door No 191/7, Mowbrays (TTK Road) Alwarpet,

Chennai 600 018, measuring 1,33,510 Sq.Ft and having market value Rs 119.70 Lacs/-

Floor Sq.Ft Amount

Ground 116 41,23,833
First 925 3,30,26,370
Second 925 3,30,26,370
Third 462 1,64,95,333
Fourth 925 3,30,26,370
Total 3,353 11,96,98,275

RISHS INTERNATIONAL SCHOOL 15

 Movable Property (Vehicles and Jewellery):

Description Amount. .Rs

Vehicle ( Toyota HyCross) 37,00,000
Vehicle (Volvo) 15,00,000
Jewellery 50,00,000
Cash in Hand 15,79,379
Total 1,17,79,379

Consolidated

Particulars Amount. .Rs

Property 1 28,99,99,741
Property 2 11,96,98,275
Vehicles 52,00,000
Jewelley 50,00,000
Cash in Hand 15,79,379
Investment in Rishs 3,93,81,247
Total 46,08,58,642

Smt R.Balambika :

Description Amount. (Rs)

Vehicle ( Bolero) 11,04,372
Property - Reddipatti Village 2,40,00,000
Jewellery 75,00,000
Cash in Hand 16,94,838
Investment in Rishs 1,43,15,000
Total 4,86,14,210

RISHS INTERNATIONAL SCHOOL 16

5.08 Analysis of project cost :

Land and Building:

The land at Mangadu school has been taken on lease for 29 years and 11 months
commencing from 15.07.2015. The total area of land is 75,358.8 sq.ft. The present
constructed area admeasures about 50,466.24 sq.ft. The proposed construction is
15,858 sq.ft. which with present building will aggregate to total constructed area of
66,324.24 sq.ft. and area for construction of new lift in rear side from G.F well to
second floor is 369 sq.ft., 3 staircases admeasures to 300 sq.ft., staircase headroom and
lift machine room is 1184 sq.ft., terrace floor all sides providing 8” solid block wall at 10”
height including RCC column is 1636 sq.ft.

In terms of clause 3 “Covenants, Rights and Obligations of Lessee” of the supplemental

lease deed dated 03/04/2017 para 3.1 “The lessee is entitled to create mortgage by
deposit of title deeds in respect of Leasehold rights or execute registered mortgage in
respect of leasehold rights granted by the lessors under the original lease deed dated
15/07/2015 bearing document number 11507/2015 on the file of sub-registrar,
Kundrathur along with this supplemental lease deed together with the building to be
constructed by the lessee on the scheduled mentioned property by lessee in favor of
any of the financial institutions or banks enabling the lessee to raise loan. The lessor
has no objection in the lessee obtaining loan from any bank or financial institution. In
case the lessee defaults to repay the loan, the bank/ financial institution is entitled to
proceed only against the lessee and also in respect of the above leasehold rights
without affecting the lessor’s rights under the lease deed.”

 The Ranipet school is situated on a leasehold land admeasuring 95,832 sq.ft. The
proposed civil work is to finish the existing building to add capacity.
 The above estimates are based on the discussions with various vendors and
indicative prices have been considered while computing project cost.

RISHS INTERNATIONAL SCHOOL 17

 Solar Panels

 The school proposes to install Solar Panels with a capacity of 150 KVA to meet
the power requirements of Mangadu school. The management has discussed
with various vendors and indicative prices have been considered in computing
the project cost. This will reduce the power bill to upto Rs. 25,00,000 a year.

Lifts

 With the addition of third floor, it has become imperative to have elevators for
the teachers and children. It is proposed to install two lifts with a capacity of 15
persons. Quotations from KONE Ltd have been obtained and the same has
been taken for the estimation.

Air Conditioning

 Duct type air conditioning is proposed to be installed/ extended to the second

and third floor of the building. The organization has discussed with several
vendors.

Furniture & Fixture

 To accommodate additional intake in the ensuing years, school furniture is

proposed to be increased. The company has received quotation from M/s
Neelkamal for the furniture & fixtures.
 Similarly, it is decided to add school furniture in Ranipet school to accommodate
increased intake of students in the ensuing years.

RISHS INTERNATIONAL SCHOOL 18

 6.0 PROFITABILITY PROJECTIONS

6.01 Summary of financial projections is as under:

RATIO ANALYSIS March, March, March, March, March, March, March, March, March,
2022 2023 2024 2025 2026 2027 2028 2029 2030

Current Ratio 0.50 0.59 1.16 1.24 1.35 1.62 2.18 2.64 2.75

Debt equity ratio 2.82 3.11 2.79 1.61 1.04 0.61 0.34 0.20 0.10

DSCR 1.39 1.27 2.17 1.64 1.77 2.05 2.70 3.52 4.77

Leverage ratio (Total 4.11 6.27 3.78 2.38 1.61 1.03 0.62 0.40 0.27
outside
liabilities/Tangible
Networth)

6.02 Assumptions:

ASSUMPTIONS MADE WHILE PREPARING CMA DATA:

1. Tuition Fees :

Tuition fees include Term Fees, Books and Uniform Fees, Bus Fees and apportionment
of the Rise Scheme fees collected. The Tuition fees for the audited F.Y. 2020-21 and
Audited F.Y. 2021-22 is Rs. 751.99 Lacs and Rs. 1256.31 Lacs respectively. Given below
are the details of the total number of students admitted in each academic year, the
average fees charged per student, the fees hike and the total revenue generated in
such academic year.

Academic Year 2022 2023 2024 2025 2026 2027 2028 2029 2030
Total Number of 1173 1680 2302 2800 3000 3300 3400 3500 3500
Students

Average 0.641 0.747 0.870 0.935 0.935 0.935 1.028 1.028 1.028
Revenue per
Students (Rs. in
Lacs)
Fees Increase - - - 10% - - 10% - -
Proposed

Total Revenue 751.99 1256.31 2031.12* 2905.81* 3105.00* 3395.50* 3816.90* 3929.73* 3934.75*
generated (Rs. in
Lacs)

RISHS INTERNATIONAL SCHOOL 19

 * The total revenue generated for the year 2024 and 2026 and onwards includes the
Books and Uniform fees of Rs. 100 Lacs and Rs. 250 Lacs every year respectively.

2. Other Income :

Other income includes Misc. income and Bank Interest income.

3. Salary :

Salary for F.Y. 2020-21 and F.Y. 2022-23 was Rs. 320.97 Lacs and Rs. 503.65 Lacs
respectively which is 41.26% and 35.82% of the fees received. Salary for subsequent
years is projected @ 40% of Total Revenue. This year, the school has started its
operation full-fledged for both the location Mangadu and Arcot. All the teaching
and non-teaching staff have rejoined along with new employees, hence, period of
2022-23 sees a significant rise in the salary expenses.

4. Depreciation :

Depreciation on Fixed Assets is calculated on WDV method as per Companies Tax

Act, 2013.

5. Student Centric Expenses :

Student centric expense for F.Y. 2020-21 and F.Y. 2022-23 were 66.59 Lacs and
149.86 Lacs respectively which was 8.56% and 10.66% of the fees received. Student
Centric Expenses are projected to be 8% of Total Revenue. Student Centric expense
includes Books, uniform fees and student welfare expense. Due to Covid-19, the
schools were shut down during the lockdown period and thus Student Centric
expenses were low in the Covid period. However, post lockdown with the schools
starting a new with offline classes, the said expenses have come back to normal in
academic year 2022-23 amounting to Rs. 149.86 Lacs.

6. Operating and other expenses :

Operating and other expenses are Rs. 126.60 Lacs and Rs. 296.42 Lacs which
workout to 16.27% and 21.08% of Total sales in the FY 2021-22 and FY 2022-23
respectively. The ongoing construction has added repairs, , maintenance and other

RISHS INTERNATIONAL SCHOOL 20

 operational expenses in FY 2022-23 to a tune of Rs. 296.42 Lacs. It is assumed that
the said expenses will be 12% of Total Revenue in the subsequent years.

7. Interest Rate :

Interest rate for the proposed Term Loan is assumed to be 10.50%.

8. Provision for Taxation :

RISHS International School is a section 8 company registered under Companies Act
2013, availing exemption under section 11. Thus no provision for tax is made while
preparing CMA report.

9. Holding Period :
Particulars 2021-22 2022-23 2023-24

Sundry Payables 6.48 2.68 1

Sundry Receivables 0.79 0.47 3.45

Sundry Payables include Vendor payments. School being not a conventional unit like
a trading or manufacturing activity, these are subject to variations depending on
timing and quantum of amount paid to vendors of school uniforms, books,
periodicals, etc.

For the FY 2022-23, the sundry payable was 2.68 months of total revenue which is
projected at 1 month of total revenue from the FY 2023-24 onwards.

Sundry Receivables include receipts from students towards fees, JEE-NEET coaching,
uniforms, books, etc. The students are required to pay the total fees in the following
manner:

Due Date % of Total Fees to be paid by the

students
On for before 5th March 50%
On for before 5th July 25%
On for before 5th October 25%

RISHS INTERNATIONAL SCHOOL 21

 During the academic year 2023-24, in view of the proposed capital expenditure, we
persuaded the parent’s right from the month of January to pay their fees as per the
above schedule. They also responded positively. However, in the ensuing years, we
expect that this pattern will not continue and the dues of March will be deferred
and about 3.5 months fees due will be received after 31st March every year.
Accordingly we have shown a receivable of fees to the extent of Rs.5.99 Crores will
be receivable as on that date. In the event the same is received earlier, it will be
reflected as current assets in the form of cash and bank balances.

6.03 ANALYSIS OF FINANCIAL INDICATORS:-

1. Fees Receipts:

Revenue receipts collected as fees includes term 1, term 2, term 3 fees along
with fees for books and uniform, transportation fees. The fees collection for the
FY 2020-21 and 2021-22 had been Rs. 640.10 lacs and Rs. 751.99 lacs,
respectively. In the FY 2022-23 has been Rs. 1252.89 lacs with a student
strength of 1680. The students expected in the ensuing year is 2300-2700.
Looking into the trend, we can assume that the projected sales can be achieved.

2. Profitability:

Net profit of the company was at Rs. 6.30 lacs. as on 31.03.2022. In the FY 2021-
22, the school had reopened after the second lockdown, the students and staff
strength at the fullest capacity had started attending the school. The cost of
maintenance, repairs and other expenses occurrence were back to the usual
and thus compared to the first lockdown period in the FY 2020-21, the expenses
had increased back to normal. Thus the trend in the net profit for FY 2021-22.
The net profit for the current year of 2022-23 is at Rs. 101.19 lacs and with the
increase in the student strength, the profit margin estimated at Rs. 312.94 lacs
and Rs.569.70 lacs is achievable.

RISHS INTERNATIONAL SCHOOL 22

 3. Current ratio:

Current ratio is 0.50 as on 31.03.2022 & 0.59 as on 31.03.2023, respectively.

This is estimated at 1.16 & projected at 1.24, 1.35, 1.62, 2.18, 2.64 & 2.75 as on
31.03.2025 to 31.03.2030 respectively. This ratio is well above the benchmark
level of the bank.

4. Debt Equity Ratio/ Leverage Ratio (excluding Quasi capital):

Debt Equity Ratio is 2.82 & 3.11 as on 31.03.2022 & 31.03.2023 respectively.
This is estimated at 2.79 & projected at 1.61, 1.04,0.61,0.34,0.20 & 0.10 as on
31.03.2025 to 31.03.2030 respectively. This ratio is well within the benchmark
level of the bank.

5. Leverage ratio:

Leverage ratio was 4.11 & 6.27 as on 31.03.2022 & 31.03.2023, respectively.
This is estimated at 3.78 & projected at 2.38,1.61,1.03,0.62,0.40,0.27 as on
31.03.2025 to 31.03.2030, respectively. This ratio is well within the benchmark
level of the bank.

RISHS INTERNATIONAL SCHOOL 23

 7.0 ENCLOSURES

 MOA, AOA of the company along with certificate of incorporation

 Relevant license issued by ROC

 KYC of promoters and company

 Audited Balance Sheet of 3 financial years of the company

 ITR of the company and promoters for last 3 financial years

 CA certified net worth statement of the promoters

 Sanction letters of existing loans

 Quotations, estimates in respect of proposed capital expenditure

 CBSE affiliation certificate

 CMA data along with assumptions

 Valuation report in respect of Erode property

RISHS INTERNATIONAL SCHOOL 24

 8. Financial Data

Statement of EAT for the FY 2023-24

Particulars Amount / Nos

No of Students 2432
Average Fees per Students Rs.91.000
Expected Revenue Rs 2031.12
Purchase of Books and Uniforms Rs.114.44 lacs
Employee Benefit Expenditure Rs.696.00 lacs
Rent Rs.105 .00 lacs
Operating Expenditure Rs.247.60 lacs
Concession Rs.70.17 lacs
Remuneration to Directors Rs.98.00 lacs
EBITDA Rs 699.91 lacs
Depreciation and Amortization Rs.170.00 lacs
Expenditure
Interest on loans Rs.175.00 lacs
EBT Rs354.91 lacs
Taxes (Exempted U/s 11) -
EAT Rs.354.91 lacs

*Rise Scheme Students counting about 200 is not counted for the purpose of fee
calculation as single shot payment is received in advance and adjusting book
entries are passed to effect the same.

RISHS INTERNATIONAL SCHOOL 25

 Ratio Analysis for the FY 2023-24

Particulars Ratio
Current Ratio 0.59
Debt equity ratio 3.11
DSCR 1.27
Leverage ratio (Total outside 6.27
liabilities/Tangible Net worth)
GP/Net Sales % 14.93
NP/Net worth 17.47
Capital Gearing 8.39
Operating Profit Ratio 13.29

Students Teachers Ratio:

Mangadu Arcot Total

Year
Students Teachers Students Teachers Students Teachers
2022-23 1306 77 372 38 1678 115
2023-24 1478 99 721 55 2199 154

*Note: Ratios are prepared on the basis of projected data. Higher leverage ratio is due to
inclusion of non-refundable rise scheme in calculation which is not refundable at any
circumstances and hence no cash outflow from the component.

RISHS INTERNATIONAL SCHOOL 26