Business Plan:Project Funding for 5 Star Hotel Project (West Delhi)

Business Plan:Project funding for 5 star hotel project (West Delhi) Project Summery

The borrower company has been implementing a 12 storey 5 Star Hotel Project in west Delhi at Plot No-12, Mangalam Palace (a commercial centre developed by DDA), Rohini, Sector-3, where free hold land admeasuring 7127 Sq Meters was purchased. The Project is on stream and civil construction has been completed to the extent of approx 70%. The civil and structural work has been awarded to a company on item rate basis inclusive of labour, material and equipments to be used in construction. The work of finishing, furnishing, electrification and erection of other services shall be taken up in due course of time when the Hotel’s bare shell construction reaches near completion.

The borrower company had originally planned for 4 Star Hotel however, the intense competition posed by recently constructed 5 Star hotels in the vicinity of west Delhi, impelled the borrower company to immediately change their plan and go for a 5 Star Hotel which necessitated upgradtion in the abstract design of the Hotel. The planned change in the status of the Hotel from 4 Star to 5 Star has been observed to be a need of the hour and a step in right direction.

It has been studied that though the construction on the site has been going on yet due to various reasons, the Project completion may get delayed by approx 10 to11 months from the earlier accepted scheduled date. The reasons for over-run have been explained in the forthcoming paragraphs.

In terms of the original plan, the Project COD was agreed as 1-10-2012, later on its extended to 1- 9-2013 and now for up gradation of hotel from 4 Star to 5 Star with upgraded amenities it has been extended to 1st April 2015.

The initial Cost of Hotel Project with 104 standard rooms, 3Nos Banquet Halls & Restaurants was estimated as Rs 198.02Crores, however because of various changes and upgradations raises the cost of Project to Rs352Crores.

Project Location The project is located in West Delhi  Site The Hotel Complex is strategically located at Plot No 12, Mangalam place, Sector-3, Rohini-New Delhi. There is direct access road from outer ring road and the Project is hardly 1 Km from there. Since the Hotel structure is almost 71 feet high, it shall be fully visible from a long distance if viewed from the main road. The project land is part of Central Business District, Rohini - West Delhi.

The large frontage of project land faces 20mtr. wide road and would provide large visibility to the project. The project being of 71mt. height would be visible from the large distance and would be a landmark project. The project has following location advantages:- The Central Business District would have number of retail complex, offices complexes, institutions, Cultural Centres etc. Such complexes mainly office, institutional and cultural complexes would provide occupancy to the subject hotel. DISTANCE FROM IMPORTANT PLACES IN DELHI/NCR

STATION KILOMETERS Delhi Airport 30 Railway Station 15 Connaught Place 14 NOIDA 25

Features/Facilities Numbers No. of floors 12 (including ground floor) No. of Basements 03 Total height of the building 67.25 Meters Rooms 104 – 8 suites & 96 deluxe rooms State of the Art banquet Halls 3 divisible into 12 halls Capacity of Banquet Halls 4200 persons simultaneously Open Air Banqueting Facility 300 persons Restaurants & Bar 3Nos with total 300 persons sitting capacity Swimming Pool ONE Health club ONE Car Parking facility in three basements 490 Cars

The Business Business Structure: Pvt. Ltd. Company Business Location: Delhi Date of Incorporation: 08-12-2006 Relevant Experience: Promoter Director 1 is engaged in the business activity for more than 35 years. He looks after the financial management of entire business concerns of the family including the proposed project borrower company.

Promoter Director 2 is engaged in the business activity for more than 27 years. He looks after marketing, event management and logistics of the proposed project borrower company and also all other businesses of the family. He is also responsible for dealings with other services providers such as decoration, lighting services etc.

Promoter Director 3 is the CMD of the company. He was associated with Gola Five Star Banquets situated at GT Karnal Road for over about 13 years, wherefrom he has acquired a lot of experience of managing big events. He is the key person behind the development of hospitality business in the family and has helped to achieve the present position of the company in the market. Today, with his efforts, the borrower company is known among the best banqueting companies of Delhi. He looks after the overall supervision as well as marketing of the business.

Promoter Director 4 is fully involved in the business with the borrower company. He looks after marketing of the company. He has been instrumental in mobilizing large ticket clients for the company.

Promoter Director 5 is fully involved in the business of with the borrower company. He looks after purchases and also day-to-day operations of the company related to the catering activities. The Finances

TOTAL LOAN AMOUNT REQUESTED: Rs. 270 to 300 Cr

TYPE OF LOAN: Debt

INEREST RATE: 7 to 8% p.a

TIME PERIOD:

Profit and Loss Statement (Combined)

(Rs. In Lacs) Particulars 31.03.15 31.03.16 31.03.17 31.03.18 31.03.19 31.03.20 31.03.21 31.03.22 31.03.23 31.03.24 31.03.25 31.03.26 Income Income from banqueting 3,320 12,518 14,407 16,260 17,905 18,636 18,794 18,952 19,111 19,269 19,437 19,606 Income from rooms - 911 1,068 1,198 1,452 1,467 1,482 1,497 1,512 1,527 1,543 1,558 Income from restaurants - 1,478 1,779 1,978 2,109 2,204 2,227 2,250 2,273 2,296 2,319 2,345 Income from health clubs - 120 200 300 300 300 300 300 300 300 300 300 Income from operations 3,320 15,028 17,454 19,736 21,766 22,607 22,803 22,999 23,196 23,392 23,599 23,809 Other Income 7 62 71 79 94 95 96 97 98 99 99 100 Total (A) 3,327 15,089 17,525 19,815 21,860 22,702 22,899 23,096 23,293 23,491 23,699 23,910

Expentidure Room maintenance expenses - 64 75 84 102 103 104 105 106 107 108 109 Food & Beverages Expenses 2,622 6,893 7,898 8,888 9,801 10,331 10,588 10,848 11,112 11,380 11,656 11,938 Health Club Expenses - 30 51 78 80 81 83 84 86 87 89 90 Marketing Expenses 1 707 853 496 558 583 589 595 601 608 614 621 O&M expenses 80 665 815 966 1,113 1,198 1,249 1,300 1,352 1,404 1,459 1,514 General and Administration expenses - 118 170 231 297 349 391 435 479 524 570 617 Depreciation 19 1,688 1,715 1,742 1,741 1,894 2,062 2,061 2,060 2,060 2,059 602 Miscellaneous Expenditurte written off - 502 502 502 502 502 ------Power & Fuel 84 1,118 1,209 1,297 1,386 1,478 1,571 1,668 1,767 1,868 1,973 2,082 Salaries & Wages 438 460 484 509 537 567 599 634 671 711 755 802 Insurance 1 539 553 567 567 602 640 640 640 640 640 690 Contract Labour for Banqueting - 142 173 216 261 293 317 343 370 400 433 467 Interest on Loan from India Bulls ------Interest on Term Loan - 2,448 2,283 1,977 1,671 1,365 1,059 753 446 140 (0) (0) Interest on working capital limit 44 44 44 44 44 44 44 44 44 44 44 44 Total (B) 3,290 15,418 16,824 17,597 18,657 19,389 19,295 19,508 19,735 19,974 20,400 19,577 Profir Before Tax (A-B) (PBT) 38 (329) 701 2,218 3,203 3,313 3,604 3,588 3,559 3,517 3,298 4,333 Less: Tax 103 104 105 106 106 106 107 1,150 1,802 1,787 1,769 1,674 PAT (66) (433) 596 2,113 3,097 3,206 3,497 2,437 1,757 1,729 1,529 2,659

PROFITABILITY STATEMENT (HOTEL) Rs Lacs Particulars 31.03.15 31.03.16 31.03.17 31.03.18 31.03.19 31.03.20 31.03.21 31.03.22 31.03.23 31.03.24 31.03.25 31.03.26

Incom e Income from banqueting - 9,198 11,087 12,940 14,585 15,315 15,474 15,632 15,791 15,949 16,117 16,286 Income from rooms - 911 1,068 1,198 1,452 1,467 1,482 1,497 1,512 1,527 1,543 1,558 Income from restaurants - 1,478 1,779 1,978 2,109 2,204 2,227 2,250 2,273 2,296 2,319 2,345 Income from health clubs - 120 200 300 300 300 300 300 300 300 300 300 Incom e from operations - 11,707 14,134 16,416 18,446 19,287 19,483 19,679 19,876 20,072 20,279 20,489 Other Income - 55 64 72 87 88 89 90 91 92 93 93 Total (A) - 11,762 14,198 16,488 18,533 19,375 19,572 19,769 19,966 20,164 20,372 20,583

Expentidure Room maintenance expenses - 64 75 84 102 103 104 105 106 107 108 109 Food & Beverages Expenses - 4,271 5,275 6,266 7,178 7,709 7,965 8,226 8,490 8,758 9,034 9,315 Health Club Expenses - 30 51 78 80 81 83 84 86 87 89 90 Marketing Expenses - 706 852 495 556 581 587 593 599 605 611 617 O&M expenses - 585 735 886 1,033 1,119 1,169 1,220 1,272 1,325 1,379 1,434 General and administration Expenses - 118 170 231 297 349 391 435 479 524 570 617 Depreciation - 1,671 1,701 1,730 1,730 1,886 2,055 2,055 2,055 2,055 2,055 599 Miscellaneous Expenditurte w ritten off - 502 502 502 502 502 ------Pow er & Fuel - 1,034 1,125 1,213 1,302 1,394 1,488 1,584 1,683 1,785 1,890 1,998 Salaries & Wages 273 295 319 344 372 402 434 468 506 546 590 637 Insurance - 538 552 566 566 601 638 638 638 638 638 688 Contract Labour for Banqueting - 142 173 216 261 293 317 343 370 400 433 467

Interest on Term Loan - 2,448 2,283 1,977 1,671 1,365 1,059 753 446 140 (0) (0) Interest on w orking capital limit ------Total (B) 273 12,404 13,813 14,588 15,649 16,382 16,289 16,504 16,730 16,970 17,397 16,573 Profir Before Tax (A-B) (PBT) (273) (642) 385 1,901 2,884 2,992 3,282 3,265 3,236 3,193 2,975 4,009 Less: Tax ------1,043 1,694 1,680 1,662 1,566 Profit after Tax (PAT) (273) (642) 385 1,901 2,884 2,992 3,282 2,222 1,541 1,514 1,313 2,443

Income Tax Details of the Company:

Assessment Year Gross Total Income Tax Paid

2012-13 50687040 15228247

2011-12 37143292 10950190

2010-11 31949571 10612848

Brief of the Company 31st March 2013 31st March 2012 31st March 2011 Share Capital (Amount) (Amount) (Amount)

Authorized:

Equity shares of Rs 10/- each

Issued, Subscribed & fully paid:

Equity shares of Rs 10/ 25051150 15371150 13871450

Share Application Money received

Total 25051150 15371150 13871450

Shareholding Pattern:

Name of As on March 2013 As on March 2012 As on March 2011 Shareholders

Holding No. of Holding No. of Holding No. of Shares (%) Shares (%) Shares (%)

Directors 1399885 55.88% 431885 28.10% 389788 28.10% Family /Members / 254535 10.16% 254575 16.56% 235815 17.00% Relatives Body Corporate 849025 33.89% 849025 55.23% 762930 55.00% Others 1670 0.07% 1630 0.11% 1375 00.10%

Total 2505115 100% 1537115 100% 1387145 100%

Financial Snapshot:

For the year ending: 2013 2012 2011

Revenue 2891.94Lacs 2887.2Lacs 2621 Lacs

PAT 307.98Lacs 224.48Lacs 202.87 Lacs Share Capital 250.5 Lacs 153.7 lacs 138.7 Lacs

Reserves & Surplus 3708 Lacs 1991 Lacs 1487 Lacs

Loans 13817 Lacs 9844 Lacs 5122 Lacs

Cash and Bank Balances 14.04 Lacs 8.17 Lacs 38.91 Lacs

Total Assets 21327 Lacs 15499 Lacs 8235.84 Lacs

PROJECTIONS OF BALANCE SHEET (COMBINED) (Rs IN Lacs)

Particulars 31.03.15 31.03.16 31.03.17 31.03.18 31.03.19 31.03.20 31.03.21 31.03.22 31.03.23 31.03.24 31.03.25 31.03.26

Sources of Funds Shareholders' Funds Share Capital (plus Unsecured 7,272 7,272 7,272 7,272 7,272 7,272 7,272 7,272 7,272 7,272 7,272 7,272 Loans) Reserves and Surplus 971 539 1,135 3,247 6,345 9,551 13,048 15,485 17,242 18,972 20,501 23,160 8,244 7,811 8,407 10,520 13,617 16,823 20,320 22,758 24,515 26,244 27,773 30,432 Term Loan 27,407 27,407 23,981 20,555 17,129 13,703 10,277 6,852 3,426 (0) (0) (0) Working Capital Limit 400 400 400 400 400 400 400 400 400 400 400 400 27,807 27,807 24,381 20,955 17,529 14,103 10,677 7,252 3,826 400 400 400 current liabilities 301 476 517 558 596 617 628 639 649 660 672 683 Total 36,351 36,094 33,305 32,033 31,742 31,544 31,626 30,648 28,990 27,305 28,845 31,515 Application of Funds Fixed Assets Gross Block 32,968 32,968 33,668 34,368 34,368 36,118 37,968 37,968 37,968 37,968 37,968 40,468 Less: Depreciation 174 1,862 3,577 5,319 7,060 8,954 11,016 13,077 15,138 17,197 19,256 19,858 Net Block 32,793 31,106 30,091 29,049 27,308 27,164 26,952 24,890 22,830 20,770 18,711 20,609 Investm ents ------Defe rre d Tax Assets 3 3 3 3 3 3 3 3 3 3 3 3 Current Assets, Loans and 657 1,236 1,364 1,489 1,604 1,664 1,690 1,715 1,741 1,767 1,794 1,821 Advances cash and Bank Balance 390 1,743 342 489 2,325 2,713 2,982 4,040 4,417 4,765 8,337 9,082 Misc Expenditure 2,508 2,006 1,505 1,003 502 ------TOTAL 36,351 36,094 33,305 32,033 31,742 31,544 31,626 30,648 28,990 27,305 28,845 31,515 The Collateral

Company will provide the exclusive right and first charge to the lender to the extent of the loan amount till the repayment of Loan on the Hotel & its Assets.