SRS Limited (RHP) - Karvy

SRS Limited1.9 Working Capital Facility – SBPSBP has extended Working Capital facility of Rs. 100.00 mn. to the Company under theConsortium Arrangement.Details of the said arrangement are as under:Nature of LoanPurposeAmount SanctionedLoan AvailedAmount outstanding as onMay 31, 2011TenureWorking Capital FacilityFunding the Company’s Working Capital RequirementsRs.100.00 mn.Rs.100.00 mn.Rs. 99.17 mn. (approx.)The facility is valid for a period of 1 year (Sanctioned vide letterdated July 27, 2010)Security Primary Charge –Hypothecation charge of stock of goods in transit and all presentand future book debts, shared with the other Consortium Banks.Collateral Security –1. First pari passu charge along with the other ConsortiumBanks on the following properties:a) EM of 8 acres of land located at village – Prithila, Tehsil– Palwal, Dist.- Faridabad in the name of SPS BuildconLimited;b) EM of 6.84 acres of land located at village – Prithila,Tehsil – Palwal, Dist. Faridabad in the name of SRSRetreat Services Limited.2. Extension of charge on Current Assets.3. Second charge on fixed assets of the Company on pari passubasis.Guarantee -(i) Personal Guarantee(s) from Company’s directors, namely, Mr.Anil Jindal Rs. 26.3 mn., Mr. Sunil Jindal – Rs. 0.1 mn., Mr.Raju Bansal – Rs. 23.8 mn. and Mr. Vinod Gupta – Rs. 15.3mn.(ii) Corporate Guarantee(s) from SPS Buildcon Limited and SRSRetreat Services Limited, BTL Industries Limited, BTLPortfolio Limited, SRS International Limited, SRSProfessional Services Limited and SRS IT Solutions PrivateLimited..Margin Raw Material 25%;Book Debts 30%.Rate of interestCompetitive pricing at 4% above Base Rate. Present effective rateis 11.75% per annum (floating) as against applicable rate of interestof 6.10% above Base Rate i.e. 13.50% per annum (floating) withmonthly rests.Implications of default in Continuously irregular for a period beyond 60 days – penal interestrepayment (penal interest) @ 2% p.a. on the entire outstanding. Otherwise 2% on the irregularportion.Negative CovenantsThe document entered into with SBP contains the following negative covenants:1. The Company shall not make any drastic change in their management set up without SBPpermission;2. The monies brought in by principal shareholders/ directors/ depositors will not beallowed to be withdrawn without SBPs permission.283