1

Borrower Name SMG Realities Private Limited

Industry / Sub industry Service Date of Incorporation: 28th June 2012
Outlook
Constitution of borrower Private Limited Company Vintage: 11 Years 9 Months
Registered Office/ Factory Plot No.144, Block No. 9, 2nd Floor Pandey Layout, Khamla
Address NAGPUR - 440025
CMR/ CER: CMR 5
PD score/ Internal Rating BBB- Relationship since: Oct-23
Independent Reference Positive feedback taken from CA Hitesh Sanklecha- CFO Raisoni Group of
Check Details Institutions

Present Proposal:
Takeover of TL from Abhyudaya Co-Operative bank ltd under multiple banking arrangement with second
lender (to be identified)
Total TL O/s – 457.9 Mn residual tenor – 55 months.

Proposed with ICICI bank – 280.0 Mn

Proposed with TBI banker – 177.90 Mn.
Proposed Tenor – 21 months in line with balance / revised lease.

Borrower has requested to make it consortium arrangement, same shall be decided post sanction from second
lender

Total Banking Facilities:

Current and proposed sharing pattern: (Rs. in million)
Lender Present Limits Proposed Limits
FB NFB TL Total FB NFB TL Total
Abhyudaya Co-operative Bank Ltd 0.00 0.00 630.00 630.00 0.00 0.00 0.00 0.00
ICICI Bank 0.00 0.00 0.00 0.00 0.00 0.00 280.00 280.00
TBI Lender 0.00 0.00 0.00 0.00 0.00 0.00 177.90 177.90
Total 0.00 0.00 630.00 630.00 0.00 0.00 457.90 457.90
Notes:
 Term loan of Rs. 630 Mn was availed in Sept-21; present outstanding Rs 459.7 Mn
 Tenure of Term Loan is 84 Months.
 Moratorium period 12 Months.
 Repayment for Term Loan started in Nov-22.
 Tenure proposed with I-bank will be 21 months due to revised lease terms.

Type of banking – Multiple / Consortium

ICICI Bank’s exposure on Borrower group:

Borrowing entity have availed Auto Loan from I Bank amounting to Rs 2.47 Mn in Oct-23 and Rs. 1.89 Mn in
Jan-24.

Brief Background of the Group:

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About the Entity:

M/s SMG Realities Private Limited (SRPL) incorporated in year 2012 is promoted by Meghe Group.
Concern is engaged in business of providing bus rental service and solar electricity sale activity. In year,
2021 concern added another line in renting business i.e. of Heavy Equipment.

About the Group:

Meghe Group is one of the leading groups in educational sector in central India.

Number of education institutes including Schools, Engineering Colleges, Architecture College, Medical
Colleges and Management Colleges are part of this group.

Apart from educational institutions, group has also diversified into IT, Healthcare and Construction
industries.

At present entire group is managed by Mr. Sagar Meghe.

Group firms:
Educational Institutions:
 Meghe Group of Schools (School of Scholars)
 Vimalatai Tidke Convent & Junior College
 Yeshwantrao Chavan College of Engineering
 Rajiv Gandhi College of Engineering & Research
 Dr.Babasaheb Ambedkar College of Engineering & Research
 Datta Meghe Institute of Engg. Tech. & Research
 Shri Datta Meghe Polytechnic
 Shri Datta Meghe College of Architecture
 Jawaharlal Nehru Medical College
 Sharad Pawar Dental College and Hospital
 Ravi Nair Physiotherapy Colleg
 Smt. Radhikabai Meghe Memorial College of Nursing
 Mahatma Gandhi College Ayurveda and Research
 Acharya Vinoba Bhave Rural Hospital
 The Florence Nightingale Training College of Nursing
 Datta Meghe Institute of Management Studies
 Department of Management, DMIETR

Information Technology
 Ceinsys Tech Ltd – Geospatial services, Enterprise & Engineering and mobility services.
 ADCC Academy Pvt Ltd- IT and Website services

Healthcare
 SMG Hospital Pvt Ltd-Super Specialty Hospital with 200+ bed capacity at Nagpur
 SMD Hospitals Pvt Ltd- Super Specialty Hospital with 300+ bed capacity at Nagpur

Construction
 Raghav Infra Developers and Builders Private Limited – Real Estate -Infra
 AI Instruments Private Limited – EPC – Electrical contractor

Others
 Sincare Management Services Pvt Ltd- Accommodation Services and Hostel Services
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Political Background: Meghe family has been actively involved in politics since last 3 decades.
Meghe family were associated with INC until 2014 and are presently associated with BJP.
 Mr. Datta Meghe been member of Lok Sabha 4 times when he was associated with Congress. At
present, he does not hold any position.
 Mr. Sagar Datta Meghe fought last election in 2014 when he was in INC for MP Wardha Constituency
but he could not win. At present, he does not hold any position.
 Mr. Sameer Datta Meghe: He is MLA representing Hingna Constituency since 2019 represents BJP.

Borrower details and Agreement Details

Borrower, M/s SMG Realities Private Limited in mainly involved in rental of commercial vehicles such as
school busses and other transport buses to transporters in the city. Hansa travels is on the main customers of
the firm. Firm also rents to schools and colleges of the own group.

Apart from these, in May’21 firm signed a rental agreement with SMS Ltd for supply of 9 CAT AD 63
underground mining trucks. Total cost of purchase of these machineries was 1000 Mn against which company
availed TL of Rs. 630 Mn

Mining equipment were imported from Singapore with supplier being M/s GMMCO Singapore Pte Ltd.

Lessee, SMS Limited, has deployed these machinery at copper mining site of HCL - Malanjkhand Copper
Project, Balaghat Madhya Pradesh. Total project cost is 15738.1 Mn awarded in Nov’19. By Mar’23, 24% of
the project was completed.

Key Features of Agreement

Lessor/Borrower: SMG Realities Private Limited

Lessee: SMS Limited

Parameter Terms
Agreement Notarized agreement executed on 1st May 2021.
Execution date and
type
Lease Term 7 years from date of successful commissioning and installation of equipment
Lease Rent Rs 25.96 Mn inclusive of taxes. (Rent; Rs 22 Mn + GST; 3.96 Mn).

DSRA 3 months lease rental to be created within 9 months from signing of agreement or 1 st
EMI, which is later. This shall be with SMG Realities.
Delay payments of Interest on delay payment of Rent: 1.5% p.m
Rentals
Termination of If lessee terminates lease prior to expiry period then lessee is liable to pay rent
lease together with interest, penalties, damages and all such amount due for that many
years remaining along with casualty value
Buy Back of Lessee has to buyback the equipment without any option at end of lease term at price
Equipment’s of Rs 200 Mn i.e. 20% of original purchase price of equipment
Insurance and To be borne by lessee
Repairs

Lessor and Lessee through mutual consent have revised agreement in Feb-24 with certain change as illustrated
below with other terms remaining the same:
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Parameter Terms
Lease Term 3 years from date of successful commissioning and installation of equipment
Lease End Term 30th Nov 2025
Lease Rent Rs 26.84 Mn inclusive of taxes. (Rent; Rs 20.97 Mn + GST; 5.87 Mn).

Buy Back of Lessee has to buyback the equipment without any option at end of lease term at price
Equipment’s of Rs 521.35 Mn + taxes.
Out of which advance already paid is Rs. 379.83 Mn balance will be paid over the
period of 36 months with monthly payment of Rs.3.93 Mn.

About Lessee SMS Limited:

SMS Limited (SMSL) is engaged in the business of infrastructure development in roads, railways, irrigation,
toll collection, mining, environment, waste management, multi-level car parking, and radio taxis.

The company’s clientele includes Bharat Electronics, Coal India, and Rail Vikas Nigam Limited, NHAI,
PWD, Uranium Corporation of India (UCIL), South Eastern Coalfields Limited (SECL) and Indian Railways
Construction Company.

The company is IVR A- rated - April’23.

Financials:
Rs MM
For year ended/ ending March 31 2021 2022 2023
Audited
Total operating income 14,889.94 17,667.75 21413.74
EBIDTA 5,768.08 5,603.47 5966.04
PBT 1,451.15 1,778.27 2396.65
PAT 1,257.89 1,482.06 2084.47
Equity 8,678.54 9,333.29 10978.02
Long Term Borrowings 8,660.33 7,933.29 7201.75
Short Term Borrowings 7,474.68 7,070.21 7268.59

Political connection:
The company is promoted by Sancheti family of Nagpur. Mr. Ajaykumar Sancheti, key person of the group
was former member of Rajya Sabha for the period 2012 to 2018 and was affiliated with BJP.

Details of Key Managerial Personnel/Promoters/ Guarantors:

Name of promoter/ Capacity Relationship Stake Net worth PG CIBI
guarantor Mar’23 (Y/N) L
Score
Sagar Dattatraya Meghe Director Promotor 77.76% 1448.29 Mn Y 765
Devika Sagar Meghe Shareholder Wife of 13.25% NA N NA
Promotor
Sagar Dattatraya Meghe Shareholder Promotor’s HUF 0.46% NA N NA
HUF
Sameer Dattatraya Meghe Shareholder Promotor’s HUF 0.46% NA N NA
HUF
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Sandeep Vitthal Meghe Director Promotor’s 0.22% NA N 673

Cousin
Mahendra Roshansingh Director Promotor’s 2.47% NA N -1
Thakur Friend
Manish Dinakar Ingale Shareholder Promotor’s 2.69% NA N NA
Friend
Sayaji Vishwanath Jadhao Shareholder Promotor’s 2.47% NA N NA
Friend
Ab Shakeel Ab Sattar Shareholder Promotor’s 0.22% NA N NA
Friend
Radhika Meghe Singh Property Daughter of 0 NA Y 803
Provider Sagar Meghe
Total 100%

Note: Recently there has been change in shareholding wherein Mr. Sagar Meghe shareholding has increased
from 28.76 % to 77.76%. This arrangement was done through Gift deed wherein Mr. Sameer Meghe, Mrs.
Virnda Sameer Meghe and Mrs. Shalimitai Datta Meghe has transferred shares to Mr. Sagar Meghe.

Security Details:
A – Primary security: (Rs million)
Particulars Type of Charge Value Remarks
Charge on Current Assets Pari – Passu 4.96 Mn FY23 (A)
Hypothecation on Mining Equipment’s Pari–Passu 100 Mn As per Master Agreement

B – Collateral security for borrowing entity: (Rs million)

Property Address Type Charge Owner Occupancy Valuation
Name
1st, 2nd and 3rd Floor Sai Complex on Commercial Pari-passu Radhika Rented to SBI 170.00
plot no 5 KH No 39 CS No 184 charge Sagar
Sheet No 19 Mouza Pandhrabodi Meghe
Near Bharat Nagar Square,
Amravati Road, Nagpur,
Maharashtra- 440033
Plot bearing corporation house No Commercial Pari-passu Sagar Hostel- 60.00
3273/A, 3273/B, 3273/C and charge Meghe occupied by
3273/D Khasra No 81(1) Gha of students from
Mouza Babulkheda, P.S.K 39 City one of the
Survey No 7111 and Sheet No institution
291/68, Ward No 15 situated in the
layout of Arthik Magaswargiya
Society Ltd, in Rama Nagar,
Babulkheda, B/h Tukaram
Sabhagruh, Off Baltarodi, Tahsil
and District Nagpur
Total Collateral Value 230.00
Total Exposure excluding Derivative/ ECLGS 457.90
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Collateral cover % excluding Cash margin on NFB facility 50.23%

Custody: Custody of Property paper to be with I Bank.

Key Financials (Borrower):

For year ended/ ending March 31 2021 2022 2023 2024 2025
Audited Projection
No of Months 12 12 12 12 12
Total operating income 66.9 73.46 163.47 312.49 322.23
EBIDTA 19.78 29.58 67.58 297.39 301.22
EBIDTA/TOI (%) 29.01% 40% 41% 95% 93%
Interest 5.31 5.42 41.72 70.87 41.75
Depreciation & Amortization 73.10 7.86 18.78 180.0 180.0
Operating profit -58.62 16.3 7.08 46.52 79.47
Non-operating income 4.18 3.22 3.05 0 0
PBT -54.44 19.52 10.13 46.52 79.47
PAT -39.07 26.01 -2.25 34.89 59.6
PAT/TOI (%) -58% 35% -1% 11% 18%
Net Cash Accruals (NCA) 18.65 26.10 28.91 214.89 239.6
Net fixed assets 166.57 160.38 914.44 734.44 554.44
Tangible Networth (TNW) 297.69 329.54 326.63 361.52 421.12
Quasi Equity 27.79 73.45 94.75 94.75 94.75
Exposure in subsidiaries/Group Cos.
Investments 150.92 150.92 150.92 150.92 150.92
Loans and advances 0 0 41.6 41.6 0
Adjusted TNW (ATNW) 174.6 252.1 228.9 263.7 364.9
Long term debt (LTD) (A) 18.15 356.96 470.73 193.73 -0.004
Short term debt (STD) (B) 4.54 89.24 175.61 268.64 193.74
Term loan repayments 4.54 89.24 117.68 268.64 193.74
Other working capital STD 0 0 57.92 0 0
WC bank finance (C) 0 0 0 0 0
Total Debt (w/o Gtee) ( A+B+C) 22.68 446.20 646.34 462.38 193.74
Corporate Guarantee/SBLC (D) 0 0 0 0 0
Total Debt (A+B+C+D) 22.68 446.20 646.34 462.38 193.74
LTD/TNW (times) 0.06 1.08 1.44 0.54 0.00
LTD/ATNW (times) 0.10 1.42 2.06 0.73 0.00
Total Debt/TNW (times) 0.08 1.35 1.98 1.28 0.46
Total Debt/ATNW (times) 0.13 1.77 2.82 1.75 0.53
Other term liabilities not considered debt 4.51 143.74 258.34 259.37 259.37
Total outside liabilities (TOL) 30.48 631.1 917.04 726.07 457.43
TOL/TNW (times) 0.10 1.92 2.81 2.01 1.09
TOL/ATNW (times) 0.17 2.50 4.01 2.75 1.25
Total current assets 36.71 718.63 227.3 251.22 263.78
Total current liabilities 7.82 130.4 187.97 272.96 198.06
Net working capital 28.89 588.23 39.33 -21.74 65.72
Current ratio (times) 4.69 5.51 1.21 0.92 1.33
Non-current assets 152.68 155.08 196.68 196.68 155.08
Operating cash flow 0 0 0 0 0
Free cash flow 0 0 0 0 0
Fixed assets turnover ratio (times) 0.40 0.46 0.18 0.43 0.58
ROCE (%) -15% 3% 5% 13% 17%
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Interest cover (times) 3.73 5.22 1.62 4.03 6.74

Total debt/EBIDTA (times) 1.15 15.09 9.56 1.55 0.64
Total debt/NCA (times) 1.22 17.09 22.36 2.15 0.81
Inventory Turnover Ratio (days) 0 0 0 0 0
Debtors Turnover Ratio (days) 34.29 18.43 11.07 5.79 5.61
Creditors Turnover Ratio (days) - - - - -
Accruals available for debt servicing (E) 19.78 28.30 67.58 285.76 281.35
Total Debt service requirement (F) 5.31 9.96 130.96 188.55 310.39
DSCR (times) (E/F) 3.73 2.84 0.52 1.52 0.91

Turnover:

 Topline of the concern is growing year on year.

 Until Dec-23, concern has achieved topline of Rs 194 Mn and is projecting topline of Rs 310 Mn for
FY 24.
 Rental started post installation of machinery which started from Jan’23
 Increase in topline in FY24 is considering the complete rental received in this year from SMS Ltd

Rental bi-furcation.
Rentals FY21 FY 22 FY 23 FY 24 FY 25
Bus & Car 66.90 73.46 79.57 60.85 70.59
Equipment - - 83.90 251.64 251.64
Total 66.90 73.46 163.47 312.49 322.23

GST data for FY23 and FY 24

Month FY23 FY24
April 0.00 0.17
May 4.80 21.19
June 4.23 26.78
July 2.25 23.25
August 1.05 23.53
September 1.77 23.99
October 71.68 26.65
November 2.12 21.03
December 2.14 28.14
January 43.10 -
February 25.65 -
March 10.46 -
Total 169.25 194.72
YTD till Dec 90.04 194.72
Growth 116.26%

Profitability:

 EBIDTA margins are increasing year on year with increase in scale of operations.
 In FY 21, concern was in operating loss as depreciation on Goodwill was availed. From FY 22
onwards concern is in operating profit.
 Non-operating income relates to Rental income, Shop revenue share and other interest income.
 Exponential increase is projected in EBIDTA and PAT margin in FY24 due to 1) Full rental received
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in FY24 for Heavy Machinery/Equipment 2) As per agreement maintenance and insurance cost to be
borne by SMS Ltd (Lessee).
 Advance tax of 4.5 Mn paid till Dec in line with tax projected in Fy’24.
Deprecation
 Low PAT even after substantial increase in EBIDTA is mainly due to high depreciation expense of
the new machinery leased to SMS.
 Low deprecations expense reported in FY’23 since machinery were put to use in Dec’23.
 Deprecation for entire year considered for FY’24. Depreciation considered at 20%

Leverage and ATNW

 TOL/ATNW stands 4x in FY 23.
 CR is around 1.2x, which is slightly below unity due to high current liability majorly towards term
loan.

SN Particulars FY21 FY22 FY23

1 Ordinary Share Capital 2.30 2.30 2.30
2 General Reserves (Surplus/Deficit) (25.60) 0.40 (2.50)
3 Share Premium 457.40 457.40 457.40
4 Quasi Equity 27.80 73.50 94.80
5 Total (TNW) 461.90 533.60 552.00
6 Investments/Loans & Advances to group 150.90 150.90 192.50
7 Goodwill 136.40 130.60 130.60
8 ATNW 174.60 252.10 228.90
9 Receivable more than 6 months 0.00 0.00 0.00
10 ATNW 2 174.60 252.10 228.90
11 TOL 30.50 631.10 917.00
12 TOL/ATNW2 (in times) 0.2x 2.5x 4x

Group company where major advances given are- SMG Hospitals (150.9), Raghav Infra (41.6)

Fund Flow analysis

Liabilities FY'22 FY'23 +/- Assets FY'22 FY'23 +/-
TNW 460.1 457.2 (2.9) FA 291.0 1,045.0 754.1
QE 73.5 94.8 21.3 Inventory - - -
TL 446.2 588.4 142.2 Receivables 3.7 5.0 1.2
CC/OD - - - Receivables > 6M - - -
Creditors 1.0 4.0 3.1 SD 0.1 0.1 -
OCL 36.8 61.9 25.1 OCA (Details in Below) 712.2 207.6 (504.6)
Provision 3.4 4.3 0.9 NCA (Details in Below) 155.0 196.6 41.6
NCL 143.7 258.3 114.6 Cash and Bank Balance 2.7 14.8 12.0
Total 1,164.7 1,469.0 304.3 Total 1,164.7 1,469.0 304.3

TL was availed for purchase of machinery leased to SMS ltd. TL of Rs.445 Mn was availed in Oct-21 and balance
184.6 Mn TL was availed in Aug-22 to Dec-22.

NCL-
Particulars FY22 FY23
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Security Deposit SMS Ltd 0.0 224.70

Security Deposit Buses 7.61 8.12
Inter corporate loans 149.52 26.39
Total 157.13 259.21
(-)Deferred Tax Liability -13.4 -1.0
Total 143.7 258.21

Intercorporate deposits replaced by security deposit provided by SMS Ltd against the machineries rented.

OCA
OCA Details FY 22 FY 23
GMMCO Supplier of Machinery 659.5 -
Other advances, Taxes and Prepaid expenses 52.7 207.6 #
712.2 207.6

Major amount of Rs 207.6 Mn includes GST receivable of Rs 178.74 Mn and Nexen Car Rentals Rs 19.6 Mn
(Total=196.34 Mn) balance amount includes TDS receivable, prepaid insurance, advance for petro card etc.

NCA
NCA Details FY 22 FY 23
Investment and Advances to Group Cos 150.9 192.5
Other investments 4.1 4.1
155.0 196.6

DSCR

Lease agreement considers two components monthly rental and salvage value. Monthly rental form part of
P&L and salvage value is provision towards purchase of machinery at the end of lease period.

As per terms of contract, no regular schedule for salvage value is provided however, same is received on
monthly basis regularly and has been verified from bank statement for last 12 months.

Hence, same is considered for DSCR calculation.

DSCR: FY'23 FY'24 FY'25 FY'26

Sales 163.47 312.49 322.23 250.22
EBIDTA % 41.34% 95.10% 93.40% 90.80%
Cash accrual 55.20 268.74 262.28 198.96
Salvage Value 173.76 173.76 115.84
Cash Accruals including
442.50 436.04 314.80
salvage value II B
Debt obligation II C 62.41 153.29 302.44 205.36
DSCR (B/C) 2.89 1.44 1.53
DSCR excld Salvage value 1.86 0.93 0.97

Auditor’s Comments if any: NA

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Contingent Liabilities: As per financial statement for FY 23, no contingent liability reported.

Analysis of the bank statement (last 6 month/12 months as applicable):

Bank Related Analysis- Term Loan
1 Banking with existing bank /s since when Abhyudaya Co-operative Bank Ltd since 2021
2 Are we getting all securities and guarantees as Concern has offered two properties
given to existing bank?  Durga Hostel Building situated at Wardha.
 Educational Premises and Ramabai Girls
Hostel situated at Babhulkheda Nagpur.

Hostel situated at Wardha Road is being released

against which borrower has offered Commercial
property situated at Nagpur-Amravati highway.

Tentative valuation of Hostel Property is around

120 Mn. We are getting better collateral as
compared to existing banker.
3 Reason of shifting the bank Low interest rate
4 Overall Banking Conduct ETR

Banking Conduct:
SN Observations Abhyudaya Co-operative Tiripati Urban Co-operative
Bank Ltd- Current Account Bank Ltd- Current Account
1 Churning (direct/Indirect) 355.47 308.79
1A Routing % 53.51% 46.49%
2 Average utilization for WC NA as account is current NA as account is current
limits (Including sub limit)*
last 12 months
3 Inward cheque return as % of Nil Nil only 2 INW return out of
cheque issue 1524, which are because of
NEFT/RTGS return.
4 Outward cheque return as % Nil 22.22%
of cheque received Out of 9 chq received 2 chq were
bounced because of tech issues.
Major transactions is through
online/NEFT/RTGS only.
5 Overdrawing (No. of times) / NA NA
other irregularities
6 Delay in Interest servicing NA NA
7 Penal Charges if any Nil Nil
8 TL Servicing Regular NA
9 LC/BG conduct NA NA
10 a SMA 0 reporting in last 12 No No
months (Count)
10 b SMA 1 reporting in last 12
months (Count)
10 c SMA 2 reporting in last 12
months (Count)
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11 Any COVID relief availed No No

Moratorium 1 and 2/ ELCGS/
Restructuring
12 Account Conduct ETR for Term Loan NA

MOM sales via-a-vis Banking

Particular Nov- Oct- Aug- Jul- Jun- May- Apr- Mar- Feb- Jan- Tota
Dec-23 Sep-23
s 23 23 23 23 23 23 23 23 23 23 l
MOM
Sales 28 21 27 24 24 23 27 21 0 26 43 263
Banking 72 35 70 36 37 39 40 148 50 26 65 46 664

Notes:
 CA maintained with Tirupati Urban Co-operative Bank is used for receiving bus and car rentals.
 CA maintained with Abhyudaya Co-operative Bank is used for receiving Lease rentals from SMS
Limited, Salvage value and buy back amount of equipment.
 Churning is higher than sales due to salvage value received.

Recommendations & Conclusions:

A. Pro’s
Pro’s –
Well established group with business interest in multiple segments – IT, Education, healthcare, Transport.
 Group ATNW of 10110 Mn, leverage of 0.44x
 Group Topline of 10003 Mn.
Proposed exposure is in the form of TL with tenure of 21 months and cash flow for repayment is ensured from
lease agreement with SMS Ltd an IVR A- rated account.
 SMS Ltd reported topline of 21413.74 Mn with TNW of 10978.2 Mn.
 PDC from SMS ltd is stipulated for proposed exposure.
 Tripartite agreement vetted by our internal legal team with borrower and SMS Ltd shall be obtained for
payment of rental in I-bank account.
Satisfactory loan repayment with Abhuday Co-op bank. Accelerated TL repayment ahead of schedule. Total
TL sanctioned was Rs.630 Mn against current O/s of Rs.457.9 Mn.
Monthly TL obligation will be Rs.23.70 Mn, against which monthly rent receivable from SMS Ltd is Rs.30.78
Mn. Breakup of same is as below:
 Monthly lease rental incld GST – 26.84 Mn.
 Monthly Salvage/ buy back Value – 3.93 Mn.

GST on machineries purchased is already paid off and GST receivable of Rs.178.7 Mn is visible in balance
sheet. Thus no outflow for GST in future.
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B. Con’s
Con’s - Mitigate (including proposed condition if any)
Collateral:  Customer has requested for release of 1 commercial property being used
 Release of Collateral. as girls hostel in Wardha. The value of the collateral is Rs 120.00 Mn. The
 Cover of 52.13% same is being replaced by commercial property worth Rs. 170.0 Mn.
 Commercial property offered is situated at Prime Location and is currently
being rented to SBI. This property is owned by Radhika Meghe Singh
(Daughter of Sagar Meghe. Since daughter is married property being
treated as 3rd party.
 Original limits sanctioned by existing bank (Abhuday Co-Op) was Rs.630
Mn which has run down to 457 Mn as on date.

Release of PG  PG of Mr. Sagar Meghe and his daughter Mrs. Radhika Meghe is offered
in the deal.
 PG of Devika, Sameer and other member was taken as they were security
providers. With release of property, their PG is proposed to be released.
 Shareholding of Sagar Meghe is 78%.
Continuation of CA with  Customer routes bus rentals from Tirupati Urban Co-bank since inception.
Tirupati Urban Co-op  Even with sanction of TL, customer is only routing machinery lease
Bank and part routing of payments received from SMS through Abhuday and balance continues
churn through that with Tirupati Urban.
account.  Customer is reluctant to close the CA.

CPG view:
 We should recommend PDC from Tirupati Urban as additional security
with us.

 Credits from SMS ltd towards machinery lease is sufficient to repay our
TL obligation and hence recommended.
Revised Agreement is not  Earlier agreement for period 7 years is validated. Customer has revised the
notarized or registered. agreement for period of 3 years, whose draft is provided to us but the
agreement is not registered or notarized.
 Lessor has already started payment as per revised agreement.
 Final agreement shall be vetted by CPG before disbursement.

Credit view:
The said agreement should be registered, previous agreement was notrorized.
Political Connection for Lesser – SMG Realties Pvt Ltd is promoted by Meghe Family
lesser and lessee-  Borrower’s real brother is exiting MLA from Hingna Constituency in
Nagpur represents BJP
 Borrower’s father was also in politics and was MLA earlier and was
representing Congress till 2014.
 Borrowing entity is run by Sagar Meghe who is not into active politics as
on date.
 HDFC and SBI are already one of the lenders in group companies
promoted by Sagar Meghe.

Lessee – SMS Ltd is promoted by Sancheti Family

 Mr. Ajay Sancheti the present chairperson of SMS group was the former
member of BJP rajya Sabha. (2012-2018)
 Mr. Sancheti is not actively involved in politics now.
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 We have taken exposure on one of the group company of SMS i.e Ponda
Envocare Ltd of Rs 200 Mn and track is ETR.
Recommendation: Recommended for approval subject to following:
 Since terms with multiple / consortium banker – TBI bank are not finalized yet, the terms to be
vetted by Credit team and our terms should be better or in line with them.
 PDC and tripartite agreement to be obtained from SMS Limited.
 Insurance: Insurance on Machinery/Equipment to be assigned in favor of I-Bank & TBI lender
 Proportionate rental to be received in I-Bank
 Lease agreement to be registered.

Due to stamp duty charges for registration of lease agreement, business has asked to stipulate for notarized
agreement only and they would explore for registered agreement on best effort basis.

Annexures (Please comment on points as applicable for the proposal)

Annexure 1: NFA to be highlighted

Standard/ Existing NFA/ Proposed Justification
Third party Commercial property offered as Property offered is in name of Mrs. Radhika Singh
collateral offered collateral is in name of daughter of (Daughter of promoter). Mrs. Radhika is married so as
promoter who is married. per policy it is third party collateral. Approval is
requested basis PG of Mr. Sagar Meghe who holds
majority stake in company and Mrs. Radhika Singh
Political Exposure Borrower’s real brother is exiting Borrowing entity is run by Sagar Meghe who is not
MLA from Hingna Constituency in into politics
Nagpur represents BJP Track with existing institutions is ETR.
Borrower’s father was also in HDFC and SBI are already one of the lenders in group
politics and was MLA earlier and companies promoted by Sagar Meghe.
wae representing Congress till 2014.
Now he is not active in politics or
contesting election.

Annexure 2: 360 Degree Business Opportunity (Existing & Proposed)

Existing: Two auto loans amounting to Rs. 2.46 Mn and Rs. 1.89 Mn.
Proposed: SA and Credit Card of Mr. Sagar Meghe.

Annexure 3: Group Entities

Name of company TOI PAT ATNW TOL Banker Borrow CMR
CEINSYS TECH LTD 1670.40 63.60 1725.8 1053.9 HDFC 600 NA
SMG HOSPITALS PVT LTD 54.60 42.50 406.8 207.8 NA Nil CMR 1
SMD HOSPITALS PVT LTD 279.5 22.30 763 291.50 Axis 160 CMR 3
SINCARE MANAGEMENT 37.20 23.50 3105.8 35.40 Indusind 48.62 CMR 3
SERVICES PVT LTD
RAGHAV INFRADEVELOPERS Nil -5.60 560.8 462 NA Nil NA
AND BUILDERS PVT LTD
ADCC ACADEMY PVT LTD 116.10 55.8 116.4 27.7 NA Nil CMR 4
 14

PRIMUS FINANCE PRIVATE 40.3 15.3 184.7 251.9 NA Nil NA

LIMITED
Total 2198.1 217.4 6863.3 2330.2

Meghe Group of Institutes (Education Institution in the group):

Name of company TOI PAT ATNW TOL Banker Borrowings CMR

Datta Meghe Institute of 7327.82 925.0 3020.0 2080 HDFC 611.0 No rank
Higher Education and available
Research Nagpur
Late Radhikabai Meghe 477.5 91.6 207.48 128.73 Wardhaman Urban 100.0
Mahila Shikshan Sanstha Co-op bank
Total 7805.32 1016.63227.482208.73 711.0

Annexure 4: Comparison of sanction terms

Bank Abhyudaya Co- ICICI Bank TBI Lender
operative Bank Ltd
Date of Sanction 04-09-2021 Proposed Proposed
Total Limit 630 Mn 280 Mn 190 Mn
Facilities TL- 630 Mn TL- 280 Mn TL-177.99 Mn
Present o/s around 457.9
Mn.
Pricing 12% 9.50% Yet to sanction
Tenure 84 Months including 21 months Yet to sanction
moratorium of 12
Months
Processing Fee 0.40% 0.30% Yet to sanction
Margin Owner Contribution Already paid while availing Already paid while
approx. 35% fresh RTL availing fresh RTL
Security – Primary Hypothecation of  Pari-Passu charge on CA  Pari-Passu charge on CA
Mining Equipment’s.  Hypothecation of Mining  Hypothecation of
Equipment is which will Mining Equipment is
be also in pari-passu. which will be also in
pari-passu
Security- Collateral  Durga Hostel  Pari-passu charge on  Pari-passu charge on
Building situated at Commercial Property Commercial Property
Wardha. situated at Nagpur- situated at Nagpur-
 Educational Amravati Highway. Amravati Highway.
Premises and  Pari-passu charge on  Pari-passu charge on
Ramabai Girls Educational Premises and Educational Premises
Hostel situated at Ramabai Girls Hostel and Ramabai Girls
Babhulkheda situated at Babhulkheda Hostel situated at
Nagpur. Nagpur Babhulkheda Nagpur
Personal Guarantee/  Sagar Meghe  Sagar Meghe Yet to sanction
Corporate Guarantee  Devika Sagar
 15

Meghe  (PG of Mr. Sameer

 Sameer Meghe. Meghe, Mrs. Vrinda
 Vrinda Sameer Sameer Meghe, and Mrs.
Meghe Devika Sagar Meghe was
 Sandeep Meghe offered to Abhyudaya as
 Mahendra Thakur they were property
 Praful Vaidya provider. At present, that
property is being released
so PG is not offered.)
 Mr. Praful Vaidya has
resigned as director so PG
is not proposed.
 Mr. Sandeep Meghe hold
only 0.22% of equity so
borrower is not willing to
offer PG.

PDC  PDC of SMS No PDC offered Yet to sanction

Limited