OF ADITYA GROUP BONDS
GENERAL RISK FACTORS
INVESTMENT DESCRIPTION: ASSET BACKED CORPORATE BOND
Offering fixed regular returns (paid monthly / quarterly / annually) or capital gain (paid at the end of the term). All investment secured by assets with a maximum 65% loan to value.
*Investments are calculated in INR (alternative currencies available subject to promo-tional Terms & Conditions)*
Aditya Group bonds are simply a vehicle to enable investors to make secured loans to Aditya Group.
Aditya Group bonds and the subsequent structure that runs parallel with them allow Emerging Trends Advisors to offer clients what they truly believe is the best investment option available in the private investment market when considering risk verses reward. A product that enables the investor to benefit from a level of security usually only enjoyed by the banks. Ultimately, the banks who currently lend to Aditya Group will be replaced by the Bondholders.
There is also an ethical element to this investment with every client having a direct impact on the Aditya Group schools’ student education. Aditya Group is not a profit focused organisation and any money generated from their portfolio of companies gets reinvested into the Educational Society. The bonds will mean savings of around US$1m per annum on interest charges which will enable more investment into the schools themselves.
Whilst developing this product Emerging Trends Advisors (ETA) spared no expense,working with some of the largest companies in the world to ensure a solid product.The companies involved in the setting up of the bonds included a legal team that combined lawyers from CMS Law, an English law firm with international presence and one of the largest law firms in the world. Working with sub-lawyers on the ground in India, including a local lawyer from Kolkata and our own in-house licensed
lawyer, to brainstorm on the most secure, tax effective way to structure the transaction making sure the legalities were never compromised.
CBRE were employed to provide detailed valuation reports of all assets being used to secure the investments. KPMG were employed to audit the companies to confirm the revenue stream of which the returns will be paid from. When evaluating a product for pure investment, there are only two elements to consider:
The risk to principle invested is very low for the following reasons:
Established real estate is used to secure the investment with the value being equal to a minimum of 150% of the principle amount invested.
The property title deeds are placed in an Escrow arrangement with full legal rights passed over to the law firm holding the responsibility.
Aditya Group has also accepted full liability of both principle and interest due. This is a written guarantee from a group of companies with the following criteria:
ESTABLISHED FOR 35 YEARS
HARD ASSETS (REAL ESTATE) VALUATION OF US$100M
TOTAL VALUATION IN EXCESS OF US$ 150M
The legally binding investment agreement falls under both Singaporean and Indian jurisdiction. The assisting Warrantor Letter clearly states that Aditya Group is fully liable for the bonds.
In the current investment climate, a return of 7% and upwards is regarded as medium to high.
ADITYA GROUP BONDS OFFER AN INVESTMENT PRODUCT WHERE THE REWARDS FAR OUTWEIGH THE RISKS.
WHO ARE ADITYA GROUP ?
Emerging Trends Advisors Co., Ltd,
Tectona Advisory Pte., Ltd
Aditya Realtors & Developer
Aditya Properties & Developer
Bhasdeep Infrastructure Limited
The Local Co., Ltd
projected. Given these risks and uncertainties, potential investors should not place any reliance on forward looking statements.
THE INVESTMENT OPPORTUNITY
A legally binding Investment Agreement subject to the laws of Singapore.
A third party established law firm acting as an Escrow agent which is in receipt of unencumbered title deeds of properties with a total value that far exceeds the total value of any and all bonds issued. This is subject to the parameters set in place of 65% loan to value (determined by CBRE). The Escrow agent has the legal authority to liquidate the assets and distribute the proceeds of any sales directly to the Bondholders in the event of any default. To add further security, the properties are also being transferred into a SPV that enables the properties to be “ring-fenced” from any other business activities of the group, thus ensuring that in the event of liquidation,no other creditors would be able to make any legal claim against these assets, thereby resulting in the Bondholders having the first and only charge.
A Warrantor Letter from Aditya Group in its entirety, accepting liability of 100% of both principle and interest due to any Bondholder. This ensures that there is no legal way for Aditya Group to continue operating at any level without being bound to me meet any and all obligations to any and all Bondholders. This also means that in the event of the Escrow agent having to liquidate the assets and the proceeds from any such sales not being sufficient to clear all outstanding principal and interest payments, Aditya Group would still be liable to make up any shortfall to the Bondholders. This acceptance of liability is subject to the laws of India.
The parameter of capping money being raised to no more than 65% of the asset value securing the investment falls in line with the well-established concept of what the banks and lending institutions consider a safe formula. History confirms that it is very rare for property values to decrease more than 35% and if they ever do then this is generally short lived.
In the rare event of a property crash, where values dropped significantly and thus the proceeds of any sale during the liquidation process were not sufficient to meet the entire obligations to the Bondholders, then Aditya Group would still be liable to make up any short fall.
1. Real estate values decrease by 50%
2. Aditya Group in its entirety goes into liquidation.
(For the purpose of this scenario let’s also factor in 10% of the sales price for tax and legal fees).
Investment amount – $65k
Investment type – Capital Gain
Value of security – $100k (at time of investment)
New value of security – $50k
Tax and fees incurred during liquidation process – $5k
Returned to investor $45k
Total loss $20k (approx 30%)
THIS WORST CASE SCENARIO IS OF COURSE HIGHLY UNLIKELY.
Another risk factor to take into account is the potential currency fluctuations if you are a non-Indian and/or if you do not require money in INR currency. Aditya Group bonds are an investment in Indian Rupee and bare no relevance to the fluctuations in INR or any other currency. We advise that you seek advice from a qualified financial advisor if you are living outside of India before making any investment.
DEVELOPING THE BONDS
Emerging Trends Advisors became very unsatisfied with the quality of investment products on the private investment market and strived for better options to offer to their clients. Their first fund structured product (set up in Delaware, USA) was quickly and successfully sold off to a large Asian developer. The Aditya Group bonds are their next and even better product.As previously stated, investing is very simple, it boils down to two simple things; Risk vs Reward.
Banks offer various types of loan but the cheapest rate is usually a ‘secured loan’ in the form of a ‘mortgage’. ETA decided to base the security element of the investment product around the same criteria banks look for before offering mortgages.
REAL ESTATE ASSET USED AS COLLATERAL
VALUE OF COLLATERAL TO BE 150% OF LOANED AMOUNT
3 YEAR ESTABLISHED REVENUE STREAM CONFIRMING ABILITY TO COMFORTABLY MAKE LOAN REPAYMENTS
ADITYA GROUP DIRECTORS
Founding Chairman – Aditya Group
The man behind the Group. It is for his vision and dynamic leadership that Aditya Group today stands tall and high, serving millions of people in various sectors. Though from a family of business background, he chose to be different, drifting away from the core family business. He presented himself as the first generation business man venturing into unknown territories – and achieving them. From 1984 when he started the journey of Aditya Group till his last day in office in 2014, Mr. Aditya lead from the front and built up the empire brick by brick under his very close vigilant eyes. From trading in marbles to real estate, from medical to education, and finally entertainment, he ensured that Aditya Group marched on its way to success and reached out to the cross-sections of the society that was in the most need..
Vice Chairman – Aditya Group
Having excelled in the field of Sound Engineering and Film Production from London Ankit’s zeal towards music and creativity gives the Group another new and very different dimension. Many of his works as individual artist have been recognized and have gone forth to win prestigious accolades. With his in-depth knowledge in music and filming the Group ventured into not only film production but into various creative spaces. It is for his endeavors that Aditya Group has produced and directed feature films both in the long and short formats that have won critical praises in various national and international film festivals. His present mission is to transform the Group’s real estate establishments like the schools, offices, restaurants, etc by overhauling them to a contemporary architecture and style.
Chairperson – Bhaskar Aditya Foundation & Director Hospitality
Chairman – Aditya Group
A pass out of University of Wales, Cardiff, UK, Anirban with his exceptional management skills, administrative principles and smart expansion policies has given the direction & momentum that is catapulting Aditya Group to greater heights of success.The Group under his dynamic leadership is growing exponentially making it one of the fastest growing business houses in this part of the country. It is for his vision that Aditya School of Sports has seen the light of day today and sports has been integrated seamlessly with education in all group school ventures under the flagship of Aditya Academy. His concept and vision of EduSports – combining Education and Sports, has not only been accepted and praised but has caught everyone’s imagination. EduSports is all set to revolutionize both Education and Sports in India.
Managing Director – Aditya Group
David is a successful entrepreneur hailing from the United Kingdom and settled in Thailand for the last fifteen years, now finding home in India. He runs Investment Corporations and Marketing Management companies based out of Thailand catering to South Asian countries, including India, Thailand, Cambodia, Indonesia, and others.
Mr. Simpson runs one of the largest Marketing Corporations in Thailand, catering to over one thousand businesses that are connected to his inimitable Marketing network. As the Managing Director, he brings in his dynamism and smart business ideas which give Aditya Group the competitive edge that it needs to excel in this cut-throat competitive world.
Executive Director – Aditya Group
At Aditya School of Sports, we are committed to providing top class infrastructure and support to help budding sportsmen perform better. We believe sports build up character, it prepares us for every eventualities, it makes us face defeats and learn from them to taste success. It is utmost important for kids to understand that life is not a bed full of roses. One cannot be a winner on every occasion. We lose more than we win and that’s where the character is tested. Nothing but sports can train better. We believe that through sports students understand the true value of team spirit and help in bonding with every member of the society with a positive approach.
Head Bussiness Developer
At Aditya Group, we understand that the every needs of every single business vertical are different, with challenges that are unique to the particular business unit or region. These challenges need to be met with solutions that have been tailored to suit the needs, environment and surely, the budgets.
Presently, Aditya Group’s core business is its management business that is currently managing over a dozen businesses with a staff count of over 1,000. Today Aditya Group boasts ownership of many properties as well as the businesses that operate from them. The group is strong in hospitality with several restaurants and bars around Kolkata, as well as a hotel.
BUSINESSES OF ADITYA GROUP / EDUCATION
BUSINESSES OF ADITYA GROUP / REAL ESTATE
BUSINESSES OF ADITYA GROUP / HOSPITALITY
variety of soups, main dishes, mocktails, cocktails and desserts in both styles, makes Babumashai a much chosen restaurant for all age.
Variety of Drinks
BUSINESSES OF ADITYA GROUP / SPORTS
AWARDS & ACCREDITATION OF ADITYA GROUP
Educational Reformer – Aditya Academy Secondary, Barsat
FUTURE STRATEGY OF ADITYA GROUP
& ASSOCIATED COMPANIES
Aditya Group is a group of companies to which the investment bonds relate. The Aditya Group is rich in assets and properties, which are offered as securities against the bond investments in the form of an “Escrow”, held by a reputed law firm. The Aditya Group also offers a letter of warranty for further security to the investors.
ADITYA GROUP BOND FLOW CHART
– CBRE valuation reports of all assets held in Escrow
– Confirmation of receipt of title deeds from Escrow agent
– Company registration papers of all relevant companies
– Valuation reports (CBRE or government value) of other real estate assets owned by Aditya Group.
– KPMG audit of education society (2018)
– Existing loan contracts from Aditya Group
– Investment Application Form
– Investment Agreement Policy
– Investment Agreement Terms & Conditions