DENA BANK, SME CELL, REGIONAL OFFICE, NEW DELHI

PROPOSAL No:-Shree/ADV/10721300100 Proposal received at Proposal received at RO Branch Date: 04-10-2012 Date : Date:05/10/2012 Complete Proposal received at HO Date

FOR APPROVAL

SANCTIONING AUTHORITY

SENIOR MANAGER

1. GIST OF THE PROPOSAL Fresh 2. PROFILE Name of borrower M/s. Unique Engineering Address (Regd. Office)

Branch: Shree Nagar, Thane Established on Dealing with us since Group: 2000 Unit 1996

Region: Thane Whether appearing in Standard B List No

Willful Defaulter List

No

Line of Activity Manufacturing.

Key Person/Promote r Multiple Consortium Leader Bank /

Defaulter / CIBIL List

No

Key Person Promoter Sole

Mr. Shyam V Kurup

EXISTING Asset Classification Asset Category

PROPOSED

N.A.

Standard

Standard

Our share:

(Rs. In Lakhs)

as

per

CMC

N.A.

N.A

Guidelines FB NFB- % STLTLPriority BSR Code: Risk Weightage Credit Rating Risk 100% BB 115.00 0.00 0.00 0.00 Yes/No D2K Codes & Description Activity Sector Special Category
Manufacturing

Priority

SME N.A

Date

of

last

Sanction Basel II Code:

Provisioning: 0.25%

Risk Grade as per ABS Dt 31/03/2012

3. NAMES OF DIRECTORS/ PARTNERS / PROPRIETOR & NET WORTH (Rs. in Lacs) Sr. 1 Name Mr. Kurup Shyam Net Worth V. 132.68 As on Basis

30/09/2012

As mentioned in Branch Note Process

Whether Proprietor / Partner/ Director / Guarantor has any No relationship with any Director or Senior Official (Scale IV &

above) of the Bank. If so give details (Refer to Guidelines)

* CA certificate confirming Net Worth of the Proprietor to be obtained by the Branch before release of enhanced limit and Branch to ensure that the same is in accordance with Net Worth as mentioned in the Process Note.

4. Major Shareholders: S.N Name Status No. Share N.A.( Proprietorship Firm) of Percentage

5. EXPOSURE: Borrower EXPOSURE Fund Based Non Fund Based Forward Cover* Total Credit Exposure Investments Other Commitments Total Exposure 0 Nil Nil Nil Existing 0 0

[Rs in lacs] Proposed 15.00 0 Variation(+/-) (+)15.00 0

15.00 Nil Nil Nil

(+)15.00 Nil Nil Nil

GROUP EXPOSURE Fund Based Non Fund Based Forward Cover* Total Credit Exposure Investments Other Commitments Total Exposure Nil Nil Nil Nil Nil Nil 0.00 Nil Nil Nil Nil Nil Nil 15.00 Nil Nil Nil Nil Nil Nil +15.00

I. SECURITY / DOCUMENATION a) Prime Security Nature (Rs. in lacs) Value Basis Stock & Book Debts Statement as on 30/09/2012

Hypothecation of Stocks and Book 9.71 & 18.14 Debts

b) Collateral Security Nature Security of Type of Charge Value

(Rs. in lacs) Basis / Source Whether eligible under CRM

(Basel II Norms) Proposed Equitable Mortgage 65.00 of lacs Valuation Report Yes

residential property situated at C 32 Uma Chsl, Town, Balrajeshwar road, Mulund (West), Mandakini Nr Model

Mumbai - 80

i) Percentage coverage of Collateral Security: 1 2 3 4 Total value of Fixed Assets Of which our share Total limits proposed from our Bank Collateral Coverage Rs. Rs. Rs. 65.00 Lacs 65.00 Lacs 15.00 Lacs 127.85%

ii) Reasons in case of dilution of security coverage: N.A.

c) d) e)

Date of creation of Charge: Date of subsequent modification of charge: N.A. Date of vetting of documents by legal officer /Panel Advocate:

f) Name of Guarantors & their Net Worth (Rs. in lacs)

Name Smt. Kurup Sheena

Relationship S. Wife Proprietor

Net Worth of 9.14 Lacs

As of 30.09.2012

Basis As per Annexure CC

* Net Worth of the guarantors includes their investment in the subject Company and Group Companies.(Declaration from borrower to be obtained and kept on record, that no commission or remuneration is paid to them for providing guarantee)

II. CREDIT RATING & Pricing:

Pricing Credit Rating Score Based on ABS [ March 12] Applicable interest rate as per Credit Rating Interest rate presently Charged and Proposed Concession if any Interest Rate charged by Lead Bank Commission on NFB Limits Processing Charges -

Existing

Proposed A

Credit Rating Work Sheet furnished as Annexure 1

10. COMPANY PROFILE (in brief)

Key Person Mr. Shyam V. Kurup is graduate in Engineering (Marine Engineering) is having 18 years experience in this line of activity. He worked as works design manager in M/s. Precision Gears then e started his own business in year 2000. Mr. Shyam Kurup has good contracts in various Pharmaceuticals Companies like Cipla Ltd, Dr. Reddys Laboratories, Glenmark Generics ltd, Abbott Laboratories etc, who are also his main clients. The competition in this line is very limited as very few trained engineers who are trained in manufacturing of Blister pack Machines. These machines are used by pharmaceutical companies for packing of tablet.

Proprietor Mr. Shyam Kurup is banking with us since year 2000 and maintaining current accounts with an average balance of Rs 2.00 lacs. He is also having overdraft accounts against term deposits with us but most of times accounts are remaining in credit balance. He is also having term deposits to tune of Rs. 20.00 lacs with us and also maintaining S.B accounts in his family members name. Operations in all these accounts are very much satisfactory.

Mr. Shyam Kurup is proprietor of M/s. Unique engineering Co. The firm is engaged in manufacturing of Blister Pack Machines, De-foiler machines & also undertake changing parts of any make of Blister, Alu-Alu & Strip pack machines and also after sales service. All these machines are used in pharmaceutical companies for packing purpose. Firm has reported satisfactory level of performance as the sales have increased to Rs. 73.62 lacs for year 2012 when compared to Rs 48.01 lacs in FY 2011. The firm has estimated sales turnover of Rs. 121.00 lacs for 31.03.2013 and has achieved a turnover of Rs. 64.80 lacs for the period of 6 months i.e from April to September, 2012 and have sufficient orders on hand in view of which the estimated level is considered as achievable and accepted. Firm is now expanding the business and they have purchased adjacent Gala of 520 sq ft in Bharat industrial Estate, L.B.S Marg, Bhandup where they have decided to install new automatic machines

In view of above, even the projected sales turnover can be considered as achievable and hence accepted for assessment. The increase in business volume has necessitated the firm in approaching the bank for working capital which is justified due to above stated factors

11. INDUSTRY SCENARIO

a. Industry Categorisation

Manufacturing and exports of readymade garments.

b. Demand and supply situation The firm is engaged in manufacturing of machinery of of the product present and which is exclusively used in pharmaceutical companies projected information) (source of and the same are key industries there is always demand for their product

c. Major players & their market There are very few units engaged in this field in view of share d. Banks industry e. NPA position as of Sep. N.A 2009 f. Cyclical trends g. Govt. Policies Nil Encouraging in view of the proposed expansion of pharmaceutical industries h. Whether the product is an No import substitute, if so, what is the landed cost of import and what is the production cost of the indigenous exposure in the specialised job this N.A

manufacture i. Availability of raw materials, Easily available. labour, advantages j. What are internal & external The proprietor is well experienced in this line of advantages of the business. infrastructural

borrower/technology used k. What are the weaknesses Nil

l. What

are

the

relative In view of continuous process of latest development in pharmaceutical industries and competition among them there is always demand for machinery manufactured by M/s. Unique engineering

opportunities

m. What are the threats

No threats

n. Any other information

Nil

12. PRODUCTION CAPACITY :

Production Capacity Installed Utilised % Utilisation

Existing

Proposed

13. MARKET CAP :

N.A. (not a listed Company)

14. FINANCIAL INDICATORS : Audited As on 31.03.2011 Audited 31.03.2012 Estimate 31.03.2013

(Rs in lacs) Projection 31.03.2014

i. Capital ii. Reserves & Surplus iii. Intangible Assets Tangible Net worth Net Working Capital Current Ratio Net Block Net Sales - of which exports PBDIT Gross Profit - PBDT Net Profit / Loss PAT Depreciation Cash Accruals PBDIT/ Gross Sales Gross Profit Margin Net Profit Margin TDER (TOL/TNW) Interest Coverage Ratio Current Assets to Turnover Ratio

20.29

27.68

38.28

56.11

20.29 7.05 1.17 18.12 48.01

27.68 15.28 1.40 17.62 73.62

38.28 7.39 1.13 52.41 121.00

56.11 30.42 1.68 46.83 181.50

8.80 2.77 7.20 0.71

8.48 4.60 7.45 0.49

18.17 6.51 12.10 3.37

29.14 8.29 19.75 5.85

18% 27% 15% 1.49 9.88

11% 18% 10% 1.09 15.70

15% 20% 10% 0.87 6.37

16% 21% 11% 0.56 7.62

1.48

3.52

3.10

3.67

15. Comments on financial indicators, in brief:

I. Positive indicators

1. Sales : The sales of the firm registered a growth around 52% from Rs 48.01 Lacs as on 31.03.2011 to Rs 73.62 Lacs for the year ended 31.03.2012. The firm has estimated sales turnover of Rs 121.00 lacs for the year ended 31.03.2013 which they are confident to achieve as they have achieved the sales of 64.80 lacs for the period from April, 2012 to September, 2012 and also they have orders on hand under execution. Hence targeted level of sales of Rs. 121.00 lacs for the year 2013 can be considered as achievable

2. Profitability: The net profit of the company has increased from 3.46 lacs as of 31.03.2011 to Rs. 10.11 lacs as of 31.03.2012 which is mainly on the account of increase of sales from Rs 48.01 lacs to Rs 73.62 Lacs. For the year ending 31.03.2012 the company has reported net profit of Rs 10.00 lacs as per provisional balance sheet 3. Current Ratio: The current ratio has improved from 1.17 as of 31.03.2011 to 1.40 as of 31.03.2012 but declined 1.13 as of 31.03.2013 due to higher level of other current liabilities. The actual level for the past years and estimated for the current year is above minimum requirement level of 1.10 as per policy guidelines of Bank and can be considered as satisfactory and acceptable. 4. Debt Equity Ratio: Capital of the firm is increasing since last 3years. On account of retention of profits in business the net worth has increased from Rs 20.29 lacs as of 31.03.2011 to Rs 27.68 lacs as of 31.03.2013 and further to Rs 38.28 lacs for 31.03.2013 and estimated net worth is 56.12 lacs as of 31.03.2012 Debt equity ratio (DER) was 1.49 as of 31.03.2011 improved to 1.09 in the year March, 2012 and further improved to 0.87 for the year 31.03.2013 on account of increased in net worth 2013. The actual level of DER for the past years and estimated & projected level is also within the Banks norms and considered as satisfactory.

5. Interest Coverage Ratio: Interest coverage ratio for past years as well as current year ending 31.03.2012 is above the minimum requirement level of 1.75 as required by the banks policy guidelines and can be considered satisfactory 6. Current Asset Turnover Ratio: The mentioned ratio for the past on actual basis and estimated/projected level of 2.00 as per our loan policy guidelines indicating satisfactory turnover of current assets

II.Negative indicators, if any, with reasons III.Auditors remarks and Management replies. Nil as reported by the Branch.

IV.Contingent Liabilities: Nil.

V.Current performance trends: Estimated Net sales turnover for the FY Achievement till Pro-rata achievement

Rs in lakhs 121.00 64.79 53%

VI.Comment on current performance trends:

The firm has estimated sales turnover of Rs 121.00 Lacs for the year 31.03.2013 and they achieved the sales of 64.80 lacs for the period from April, 2012 to September,2012 and they have sufficient orders on hand under execution. Hence targeted level of sales of Rs 121.00 lacs for the year 2013 can be considered as achievable.

VII.INTER-FIRM COMPARISON (PEER GROUP) (In case aggregate limit exceeds Rs.5000 lakhs) (Rs in lakhs) Particulars Sales Net Worth Net Profit Borrowing D/E Ratio Current Ratio N.A. Our borrower Company A Company B Company C

16.A. ASSESSMENT OF WORKING CAPITAL REQUIREMENTS : (Rs in lacs)

Audited

Estimated

Projected

1 Gross Sales Total Working capital requirement being 25% of the gross

73.62

121.00

181.50

2 estimated/projected sales Of this bank finance is to extent of 20% 3 of gross sales Minimum net working capital @ 5% of 4 gross sales 5 Actual/Projected Net WC 6 Max permissible bank finance 7 Bank Borrowing 8 Shortfall in margin

18.40

30.00

45.37

14.72

24.20

36.30

3.68 7.05 64.78 14.72 Nil

5.80 15.28 88.41 24.20 Nil

17.87 30.42 110.00 27.50 Nil

B. INVENTORY AND RECEIVABLE LEVELS: Inventory Audited Projected

(Rs in lakh) Estimated Months Value 31.03.11 0.00 0.00 60.00 0.00 0.00 2.09 0.00 0.00 60.00

Months Value Months Value 31.03.09 Raw Materials Work in Progress Finished Goods Receivables - Domestic - Export Stores & Spares Creditors 1.43 0.00 0.36 0.00 8.72 0.00 17.89 0.56 0.00 0.65 0.00 18.00 0.00 9.00 0.00 0.00 0.83 0.00 0.00 19.71 31.03.10 0.00 0.00 2.18

0.00 0.69

0.00 20.00 0.00

0.67

8.50

D.

COMMENTS

ON

ASSESSMENT

OF

WORKING

CAPITAL

WITH

JUSTIFICATION: The working capital cycle stood at 1.19 months during FY 2008-09 comprising inventory holding of 0.83 months and receivables at 0.36 months sales. The borrower has now estimated working capital cycle of 2.83 months during FY 2009-10, comprising inventory holding of 2.18 months and receivables at 0.65 months.

Nature of business of the borrower is seasonal considering the fact that most of the garment exports to UK and US for Spring-Summer Season takes place during the period between November to March.

Receivables : In Balance Sheet Analysis, receivables have been taken as Rs 8.72 lacs as Rs 102.85 lacs out of them have been excluded since these bills have been negotiated under FLC and accordingly FLC outstanding is also excluded from Bank Borrowings. The Firm exports on L/C-90 days DA/DP basis.

Receivables have been estimated at 0.65 months (Rs 18.00 lacs) and projected at 0.69 months (Rs 20.00 lacs), as Rs 50.00 lacs have been excluded from Bank Borrowings towards export bills negotiated under FL/C. The estimated and projected holding of receivables is considered need based and reasonable to achieve the estimated/projected sales turnover.

Sundry Creditors: The creditors for goods during FY 2008-09 stood at 1.43 months purchases (Rs 17.89 lacs) which is estimated at 0.56 months (Rs 9.00 lacs) during FY 2009-10. The main reason for low creditors level during FY 2009-10 is as under :

The Firm has represented that they had received certain goods during the last week of March09 for their suppliers, which were under checking as on the Audited date (31.03.09) and hence remained unpaid as on that date. The same was paid during 1st week of April out of available PCH limit. The creditors level is projected at 0.67 months (Rs 8.50 lacs) during FY 2010-11, which is almost in line with the creditors holding level during FY 2009-10. In view of the above, the estimated and projected creditors holding period is considered need based and reasonable.

Based on the accepted level of holding and receivables, the working capital limit works out to Rs 70.00 lacs under Modified MPBF Method during FY 2009-10 and FY 2010-11.

However, the Drawing Power, as of 31.03.10, based on the accepted holding levels as above, works out as under: Particulars Amount (Rs in lacs) Margin Drawing Power (Rs in lacs) 2009-10 2010-11 200910 Stocks 60.00 60.00 10.00% 2010-11

Less: Sundry Creditors Paid Stock Receivable Total

9.00 51.00 18.00

8.50 51.50 20.00 10.00%

45.90

46.35

16.20 62.10 Say 62.00

18.00 64.35 Say 65.00

The D.P. works out to Rs 62.00 lacs during FY 2009-10 and Rs 65.00 lacs during FY 201011. Since only around tow and half months is left before the end of the current financial year, the limits, based on the accepted projections of FY 2010-11 works out to Rs 65.00 lacs. Accordingly and in line with the Branch recommendation, we recommend for enhancement in working capital limits by way of PCH-cum-FBP limit from Rs 55.00 lacs to Rs 65.00 lacs. However, the operative limit would be capped at Rs. 62.00 lacs during FY 2009-10. The full limits i.e. upto Rs. 65.00 lacs may be released only during FY 2010-11, subject to availability of D.P.

Renewal of Negotiation of Bills under L/C Limit : The borrower is presently enjoying Bills Negotiation (under L/C) limit of Rs 50.00 lacs, outside the overall MPBF, which it has requested for continuation. The borrower utilizes PC limits basically for stocking purpose, which is evident from the month-wise position of stocks is as under : Date of Stock Statement 31.07.08 31.08.08 30.09.08 31.10.08 30.11.08 31.12.08 31.01.09 28.02.09 Total (Rs in lacs) 26.88 57.22 75.53 93.84 109.12 92.85 102.25 75.60

31.03.09 30.04.09 31.05.09 30.06.09 31.07.09 31.08.09 30.09.09 31.10.09 30.11.09

19.17 90.67 80.25 65.20 51.78 62.40 63.75 66.44 90.25

In view of the above, the borrower is unable to utilize the FBP limit. The borrower requires separate Bills Negotiation Limit for negotiation of the Bills under L/C, which is outside overall MPBF. The overall record has been satisfactory and no bills have been returned unpaid. Accordingly, Branch has recommended for renewal of the Bills Negotiation under L/C limit of Rs 50.00 lacs and we endorse the Branch recommendation.

17. ASSESSMENT OF TERM LOAN/ DEFERRED PAYMENT GUARANTEE: N.A.

18. ASSESSMENT OF NON-FUND BASED LIMITS

A. LETTER OF CREDIT For purchase of raw materials/stocks Average time taken from date of L/C till the date of shipment (Days)

(Rs in lakh)

Average time taken from date of shipment to the date of retirement of the bill (Days) (A) Average rotation of letter of credit in one year (360/A) (times B) N.A.

Projected Purchase Level of L/C limit = {Projected Purchase/Import during the year}/B Say Our share Whether as per Cash Flow statement there will be adequate cash accruals to retire the bills under L/C on first presentation/due dates. Names of the Suppliers/beneficiaries in whose favour L/Cs to be opened Whether credit reports on the suppliers obtained from

bankers/outside agencies (especially in case of DA L/Cs)

B. BANK GUARANTEE : N.A.

1.

Views/comments on the conduct of the account A. Comments on utilisation of both fund and Non fund based limits Whether stock statements are submitted every month. If not Yes, 30.11.2009 submitted regularly mention the date of last stock statement Whether operations are within sanctioned limits Whether limits are utilised optimally /satisfactorily Yes Yes

Frequency of inspection of stocks. Date of the last inspection 30.10.2009, by Sr. and irregularity/adverse features, if any observed and steps Manager. taken to set right the same. No major/adverse

observations.

Insurance cover - Whether securities adequately insured and Yes in force All Policies are

obtained directly by the Branch from

Oriental Co. Ltd. Whether terms and conditions of previous sanction have been Yes complied with, if not, specify time frame to complete (with explanation) & permission obtained from competent authority

Insurance

Whether certificate from Pollution control Board has been Branch has reported obtained. that the Firm falls in category F of PC Band certificate applicable. Whether the borrower is facing any litigation from banks None /FIs/creditors/ Govt. Deptt./ Statutory bodies etc., if so, state in brief. In case of consortium advance, whether our bank is getting N.A. proportionate share of business Additional / temporary limits sanctioned subsequent to the Additional FBNLC last regular sanction and whether same is liquidated on due limit of Rs. 100.00 date or not lacs sanctioned by DGM,NDR 02.02.2009 on and is hence not

liquidated on time. Outstanding Exposures Rs in Lakhs Particulars 31.03.2009 31.11.2009 amount of unhedged Foreign Currency FC INR

Sales Actual Purchases Credit Summation Debit Summation Minimum Balance Maximum Balance LC Number Devolved

312.24 150.46 247.72 258.09 0.01 57.97 - N.A.

184.01 94.14 180.13 223.02 14.26 57.98 N.A.

Amount Guarantee Number Invoked: N.A. N.A.

Amount Whether sales and purchase figures match with the Satisfactory. turnover in the account

B. Income value of account

(Rs. in Lakh) Last year 08-09 Current year 09-10

Value of account (Deposits) Process Fee recovered Interest earned Exchange income Commission earned Income from Third party products / insurance Others (Lead Bank Fee, Commitment fee, Penal Interest, Syndication fee) Total Turnover in Foreign Exchange Business 179.00 219.00 0.28 6.67 0.26 3.29

Deposits placed (Owner Directors/ partners or Family Members, Relatives & Friends) - Current - Savings - Term Deposits 0.40 1.50 20.00 0.50 1.50 20.00

a. Adverse features affecting credit decision and action proposed (including noncompliance to terms and conditions of sanction and present position) Sr No N.A. Pending Matters Present position Steps taken / Remarks

b.

MAJOR INSPECTION / AUDIT IRREGULARITIES POINTED OUT IN THE LAST INSPECTION REPORT Brief details of irregularities Compliance Status reported

Internal Inspectors

Nil as reported by Branch.

RBI-AFI Inspectors

(i)Credit Rating 2008-09 not Credit Rating carried out as on record. per B/S 31.03.2009.

(ii)Audited Balance Sheet 08- Audited B/S obtained and 09 not on record. 3 Statutory Auditors 4 5 Stock Auditors Credit Auditor Directors name figuring in RBI/ Wilful Defaulters / CIBIL / SAL ECGC list and comments thereon. Impact on taking exposure where names are appearing in the defaulters list: Nil Nil as reported by Branch. kept on record.

c.

d.

Position of statutory dues and incentives receivables N.A. 31.10.2009 N.A. N.A. N.A. 2010 N.A. N.A. N.A. N.A. N.A.

Provident Fund, ESI and Superannuation contribution paid upto Wages and salaries paid upto Sales Tax paid upto Service Tax paid upto Income Tax Assessment completed upto and for the year ending # Advance Tax paid for the year ending Excise duty paid upto Municipal Tax, Octroi etc. Incentives from the Government and other agencies Disputes not acknowledged as debts Contingent Liabilities (Likely to turn into Liabilities) Reconciliation of Debtors/ creditors

*Before release of enhanced limit Branch to obtain C.A. certificate and ensure that the borrower has paid all its Statutory Dues upto date.

e. Group dealings/experience & desirability of further exposure: N.A.

f. RISK ASSESSMENT Risk Risk Factor Risk Mitigation Firm hedges by

Industry/Activity Risk Fluctuations in the Forex The market.

Forward Contract.

20. COMPLIANCE OF RBI / BANK LOAN POLICY GUIDELINES : The Proposal is as per RBI/ Banks Loan Policy Guidelines.

21. MODIFICATION IN EXISTING TERMS OF SANCTION IF ANY: N.A.

22. VIEWS/RECOMMENDATIONS OF THE CREDIT COMMITTEE:

In terms of HO circular No.DCC/GM-Cr/CAD/1249/08 dated 02.06.08, a meeting of the Credit Committee was held on 07.01.10 at Regional Office, New Delhi.

The Committee cleared the proposal and suggested as under :

i.

As per the estimates in CMA data submitted by the Borrower the D.P. stood at the level of Rs. 62.10 lacs during FY2009-10 and Rs.64.30 thereafter. Accordingly the operative limit can be capped at Rs. 62.00 lacs during FY 2009-10. The full limits i.e. upto Rs. 65.00 lacs may be released during FY 2010-11 subject to the availability of the Drawing Power.

ii.

It is also being observed that at the time of last sanction/renewal Capital was estimated at the level of Rs. 22.50 lacs for FY 2008-09, whereas as per the Audited B/S of 31.03.2009 Capital stood at the level of Rs. 19.17 lacs. Therefore it is being stipulated that the Firm has to introduce fresh Capital or Unsecured Loan of Rs. 3.00 lacs before release of the enhanced limits.

23. DISCRETIONARY POWER FOR SANCTION AND FOR APPROVAL OF DEVIATION, IF ANY: The credit proposal falls within the overall discretionary powers of Asst. Gen. ManagerNDR.

24. RECOMMENDATION: It is an Export Credit Account falling under SME sector. Though the Firm was established in April 2008, however the Proprietor, Sh. Mohit Gupta is associated with the Bank since 1999 by virtue of being a Partner in M/s xyz Apparels Inc. Overall conduct of the a/c is Satisfactory, as reported by the Branch. One Time Additional FBNLC limit of Rs. 100.00 lacs sanctioned by DGM, NDR on 02.02.2009 and liquidated on time. The family members of the Proprietor are maintaining substantial deposit in the Branch.(O/s as on Nov. 2009 Current A/c 0.50 lacs, Saving A/c 1.50 lacs, Term Deposits 20.00 lacs). Though the borrower has not offered any fresh collateral, however, extension of Equitable Mortgage over the existing property would result in the coverage of 527.99%, which is satisfactory. Overall financial indicators of the borrower are satisfactory as per Banks Policy Norms. Branch has recommended the proposal, as requested by the borrower.

In view of the foregoing and based on Branch recommendation, we recommend following subject to the terms and conditions enclosed as per Annexure II

Release of the limits would be as under:

i. The operative limit can be capped at Rs. 62.00 lacs during FY 2009-10. The full limits i.e. upto Rs. 65.00 lacs may be released during FY 2010-11 subject to the availability of the Drawing Power.

ii. It is also being observed that at the time of last sanction/renewal Capital was estimated at the level of Rs. 22.50 lacs for FY 2008-09, whereas as per the Audited B/S of 31.03.2009 Capital stood at the level of Rs. 19.17 lacs. Therefore it is being stipulated that the Firm has to introduce fresh Capital or Unsecured Loan of Rs. 3.00 lacs before release of the enhanced limits.

Put up for approval. Deepika Kansal Officer (SME) Annexure 1 J.D. Sinha Sr. Manager (SME) Devi Singh Chhonkar Chief Manager-Credit

FOR EXISTING BORROWERS AND NEW BORROWERS FOR EXISTING UNITS. FOR FUND BASED LIMITS ABOVE RS.10.00 LACS

CREDIT RATING REPORT Branch and Region Borrower Sanctioning Authority Date of Sanction / Okhla M/s XYZ Exim Asst. General Manager Renewal-cum-enhancement 26.12.2009

Renewal Credit Rating as on Analysis for Credit

Rating done based on the Audited / Audited Balance Sheet as of 31.03.09

Unaudited

Balance

Sheet and Profit and Loss A/c of the

borrower for the period ending

Credit facility enjoyed Nature of Arrangement i. Fund Based ii. Non Fund Based TOTAL ( i + ii )

Sanctioned (Rs in lacs) 115.00

limit

Outstanding 10.01.2010

as

on

78.15

0.00 115.00

0.00 78.15

Marks secured 95%+ 90% - 94% 85% - 89% 80% - 84% 75% - 79% 70% - 74% 65% - 69% 60% - 64% 55% - 59% Non-Performing Assets NPA SS NPA - D1 NPA - D2 NPA - D3 NPA - Loss

Credit Risk Rating AAA AA A BBB BB B C D E

Grade High - Prime Medium Prime Low - Prime Excellent Best Better Very Good Good Satisfactory -

Interest Slab BPLR BPLR + 0.25 BPLR + 0.50 BPLR + 0.75 BPLR + 1.00 BPLR + 1.25 BPLR + 1.50 BPLR + 1.75 BPLR + 2.00

Sub-standard Doubtful - 1 Doubtful - 2 Doubtful - 3 Loss Interest calculated at to be agreed

rates but not to be charged

Asst. General Manager

SUMMARY SHEET OF CREDIT RATING MODEL FOR EXISTING BORROWERS AND NEW BORROWERS FOR EXISTING UNITS FOR FUND BASED LIMITS ABOVE RS.10.00 LACS Parameters / Risk factors to be rated Maximum for existing projects /units External risk /Gov. Policy Risk/ score Max.score Applicable Score allotted parameter 5 3

Environmental risk Industry / Business / Sector risk Management Risk Security (Collateral) Income value to the Bank Past Operating performance vis-a-vis

2 3

20 15 5 5

20 15 5 5

11 13 5 3

4 5

projections

and

financial

position 40

37

33

represented by ratios/trends 7 Conduct of the Account TOTAL MARKS 10 100 8 95 8 76

% age of Marks Scored

77.55%

SUMMARY SHEET OF CREDIT RATING MODEL FOR EXISTING BORROWERS AND NEW BORROWERS FOR EXISTING UNITS FOR FUND BASED LIMITS ABOVE RS.10.00 LACS Max. Parameters / Risk factors to be rated Maximum for existing projects /units score score Score

Applicable allotted parameter

1 2 2.1 2.2 2.3 2.4

External

risk

/Gov.

Policy

Risk/

Environmental risk Industry / Business / Sector risk Intensiveness of Competition Presence of substitute etc. Barriers to entry for new players Business returns Cyclicality 2.5 vagaries in of earnings, nature subject to

2 2 1 3

2 2 1 3

1 1 0 0

technological 2

obsolescence 2.6 2.7 Technology adopted by Borrower Dependence on a few suppliers for raw material Borrowers customers Foreign exchange component of total business Whether borrower dealing in perishable commodity dependence on a few 3 1 3 1 2 1

2.8

2.9

2.10

1 3

1 3

1 2

2.11 Demand/supply gap in the business

Total 3 3.1 3.2 Management Risk Ownership pattern Past track record of the Management: a. Sales b. Financial Discipline c. Furnishing Information 3.3 3.4 3.5 3.6 3.6 3.7 3.8 Quality of the management personnel Experience of the Management Payment record with banks Financial conservatism Market standing / credibility Support from Group Companies Succession risk/plan Total 4 5 Security (Collateral) Income value to the Bank Past Operating performance vis-a-vis 6 projections and financial position

20

20

11

1 1 1 1 2 2 1 2 1 1 15 5 5

1 1 1 1 2 2 1 2 1 1 15 5 5

1 1 1 1 2 2 1 2 1 1 13 5 3

represented by ratios/trends 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 Achievements of borrowers projections of sales / gross receipts Current Ratio 5 5 5 5 1 5 3 5 2 3 5 5 1 3 3 5 0 2

Trend analysis - variation in Current ratio 1 Interest Coverage ratio Current Asset to Turnover Ratio Debt Equity Ratio Trend analysis - variation in Debt Equity ratio Achievement of Profit Projections 5 3 5 2 3

6.9 6.1

Profitability to Net worth (Net Profit/Net worth) i.e. Return on Net Worth Profitability to sales (Net profit/sales) Contingent Liabilities of the Borrower

2 2

2 2

2 0

6.11 (Total contingent liabilities to Tangible 2 net worth) Qualifications in Audit Report of the 6.12 borrowers Balance Sheet and Profit & 1 Loss A/c. 6.13 Diversion of funds - No diversion 6.14 Guarantee to Group Companies 6.15 Investment in Group Companies Total 7 7.1 Conduct of the Account Timely submission of stock and/or Book debts statement Compliance with terms and conditions of sanction Timely renewal/review of the account Regularity/irregularity of Term Loan A/c. Regularity / irregularity of the working capital facilities Submission of FFR-I & FFR-II Conduct of the Group Account, if any 1 2 1 1 40

2 1 1 40

2 1 1 33

7.2 7.3 7.4

2 2 1

2 2 0

2 2 0

7.5 7.6 7.7

2 1 1 10

2 0 1 8 98

2 0 1 8 76

TOTAL MARKS % age of Marks Scored

100 77.55%

Annexure II

Detailed Terms & Conditions RO/NDR/SME/24/10 Borrowers Name BRANCH 12.01.2010

: M/s XYZ Exim : Okhla

Nature of Arrangement

: PCH-cum-FBP

Sanctioned Limit

: Rs.65.00 lakhs (Rs. Sixty Five lacs only.)

Margin

: 10% for PCH

Rate of Interest

: As per Ho guidelines

(Subject to change as per RBI Directives or bank's policy from time to time)

TERMS AND CONDITIONS (For PCH)

Security

a. Hypothecation of stocks of raw materials, semi-finished goods and finished goods such as fabric, ready-made garments etc, manufactured by the unit for export purpose etc. b. The advance under pre-shipment credit to be covered under Whole Turnover Packing Credit Guarantee of ECGC granted to the Bank as a whole and monthly premium to be recovered from the borrower wherever applicable and remitted to the respective Regional/ Branch Office of ECGC. 2. Other Terms and Conditions a. Lodgment of original irrevocable Letter of Credit/firm contract with the

Branch and our rubber stamp to be affixed on it. L/C should not be restricted to other bank. b. The goods to be fully insured against fire, theft, burglary, pilferage, earthquake, flood, SRCC with Bank clause Place of storage is to be mentioned in the Insurance Policy. Transit Risk Policy to be obtained if goods are to be transported to a different centre for shipment. c. Pre-shipment advance to be liquidated within specified period by negotiation/ purchase/discounting of export bills. d. The borrower shall submit packing credit hypothecation stock statement every month so that periodical inspection can be carried out by the bank. e. Where the goods are given for processing "No Lien Letter" to be obtained from the processors. Insurance policy including transit risk to cover stock s sent to 3rd party for processing be obtained. g. Packing credit for shipment to buyers in the countries placed under Restricted cover by ECGC to be disbursed only with the prior permission from ECGC. h. Preshipment advance will be treated as Cash Credit advance if the export does not take place at all. Penal rate to be charged as per RBI/HO circulars issued from time to time, i. Packing credit to be allowed for a period not exceeding 180 days or till such date shipping documents are tendered in compliance of terms of L/C order, whichever is earlier. Due date diary to be maintained to monitor timely submission of documents. Extension beyond 180 days but upto 360 days can be permitted by concerned General Manager after satisfying about the need for the same. In

exceptional cases extension of shipment beyond 360 days can be permitted after obtaining approval from ECGC. j. The advance will be disbursed in phases depending upon cycle of production/procurement period and delivery schedule. Application to be obtained from the exporter client stating FOB value of the goods which will be initially financed. Freight & insurance premium amount would be disbursed at the time of shipment. k. Banks name plate stating "GOODS HYPOTHECATED TO DENA BANK,

OKHLA BRANCH should be promi nently displayed where goods are stored. l. No Packing Credit to be disbursed against the goods received under DA Letter of Credit. m. Packing credit advances are to be liquidated only from the proceeds of foreign bill purchased/discounted/negotiated. Repayment of packing credit advance from local funds shall attract interest at commercial rate prevailing at the time. q. In case of failure by the borrower in complying with the terms and conditions as stipulated above, advance may attract charging of interest at commercial rates.

Standard terms and conditions for Foreign Bills Purchase/ discounted (DA/DP) (under L/C / confirmed order) 1. a. Security :

Export Bills with a maximum tenor of 180 days drawn on overseas buyers

accompanied by shipping documents like complete set of Bill of Lading / Consignee copy of Airway Bill, Invoice, Drafts and other documents evidencing the shipment of goods manufactured by the unit. b. The party should obtain a comprehensive policy of ECGC (shipment and contract). Monthly shipment made under the above policy to be declared to ECGC every month. 2. Other Terms and Conditions

a. Advances to be covered under whole turnover post shipment guarantee of ECGC taken by the Bank and monthly premium thereon will be paid by the

concerned branch to respective Regional/Branch office of ECGC. [Premium to be paid by Branch where Exporter is maintaining the account.] b. In case of Bills drawn under firm contract/order drawing should be allowed to the extent of credit limit approved for each buyer by ECGC. c. In case of bills negotiated under letter of credit, all documents as per terms

of L/C must be submitted at the time of negotiation of bills. Export bills should be drawn strictly in conformity with LC terms.

d. Branch to ensure that documents tendered are clean. In case of discrepancies and if the amount received is under reserve, it be held in margin/reserve and may be released only against the guarantee signed by the firm and the proprietor in his personal capacity. . f. ECGC to be informed of the limits sanctioned by the Bank within 30 days of sanction. g. Proceeds of the Foreign Bills Purchased/Discounted/negotiated to be credited to Packing Credit account if any Packing Credit has been disbursed against the goods exported under such bills. h. In case export proceeds are not received as per tenor, penal rate of interest as per HO circular to be charged. NOTE: while advising the terms of sanction to the borrower please incorporate the details of penal rates. Forward Contract Limit Rs.200 lac

OTHER GENERAL TERMS AND CONDITIONS 1. The prescribed documents to be executed by the Firm and Proprietor, Sh. Mohit Gupta, in his personal capacity. 2. The advance to be guaranteed by Shri Mahesh Chand Gupta & Smt. Shashi Khandelwal and Sh. Vikas Gupta. 3.All the assets charged to the Bank to be fully insured against fire, SRCC, fIood, breakdown of machinery with bank clause. 4. The unit to submit stock statement every month latest by 15th of the next month. 5. The advance is restricted to manufacturing activities. 6. Interest rates are subject to revision as per RBI/HO guidelines or as decided by consortium. 7. Branch to ensure that there are no inter-firm transfer of funds except for genuine sales transactions.

8. Bank will have a right to examine all the times Firm's (borrowers) books of ac counts, assets etc. and have the Firms workings and operations examined from time to time by the officers of the Bank or technical experts and/or management consultants and/or C.A and fees to be borne by the Firm 9. Bank may charge penal rate of interest over and above the rate applicable under the following circumstances:a. delay in submission of stock statement. b. delay in submission of renewal papers. 10. Guidelines issued by HO/RO from time to time are to be strictly adhered to. 11. The Borrower be informed of the terms and conditions of sanction and the confirmation be obtained to the effect thereof in writing. 12. Date of reconsideration - One year after sanction. 13. In case of Credit Limit of Rs. 25 lakhs and above there will be mandatory audi t of annual accounts by Chartered Accounts and the audited accounts of the borrower should be furnished to the Bank latest by 31st October of each year with reference to the position as at 31st march of the same year. 14. Process / Upfront Fee @ 0.25% of the sanctioned limit for Working Capital limit to be charged at applicable rate p.a. plus applicable service tax. 15. Party to pay Supervision Charges @ 0.05% plus Service Tax, subject to maximum of s 50000/- per quarter. 16. There will be mandatory audit of annual accounts by Chartered Accounts and the audited accounts of the borrower should be furnished to the Bank latest by 31st October of each year with reference to the position as at 31st march of the same year. 17. Stock audit may be conducted if bank so desires. The charges for the audit to be borne by the borrower. Reports will be obtained and examined and necessary action will be taken as may be decided by the Bank. 18. Plant and Machinery, equipments, furniture and fixtures to be taken as additional security to cover both the fund based and non-fund based limits. 19. The Borrower to give an undertaking that they are not a defaulter to any Bank / Financial Institution and has not any relation with any Director of the Bank.

20. Bank reserves the right to modify /alter terms and conditions of sanction and cancel the limit at any time without assigning the reason 21. The borrower shall undertake that in case of project cost over-run, it shall arrange funds from its own sources to meet the shortfall. 22. Date of reconsideration one year after sanction. The borrower to submit the review/renewal papers 2 months before the due date of sanction/approval. 23. The Borrower be informed of the terms and conditions of sanction and the confirmation be obtained to the effect thereof in writing. 24. Branch to obtain an undertaking from the borrower that it would maintain its Capital/ Net Worth as per CMA projections. 25. The documents to be vetted by Advocate on Banks Panel (at the borrowers cost) to ensure that the documents are as per terms of sanction, valid and enforceable. A copy of the Vetting Certificate should be kept on Branch record. 26. As per HO circular No.346/42/99 dated 22.11.1999 the following clause should be incorporated in the sanction letter addressed to the borrower: In case you commit default in repayment of the CC/Loan/Overdraft facilities/additional interest or any other dues that may arise out of the loan amount /financial assistance, the bank reserves the right to disclose or publish the names of the directors of the company as defaulters, in such a manner and through such media as the Bank/RBI in their absolute discretion may think fit. 27. As per HO circular No.346/42/99 dated 22.11.1999, 54/1/2004 dt.22/5/2004, consent letter to be obtained from the borrower for disclosing or publishing their names in the event of borrower becoming defaulters. The said clause should be incorporated as last clause of the respective document: I/We hereby agree as pre-condition of the loan/advance( fund based and non-fund based ) given to me/us by the Bank that in case I/We commit default in the repayment of loan/advance or in the repayment of interest thereon or any of the agreed installment of the loan on due dates the Bank and/or RBI will have an unqualified right to disclose or publish my/our name or the name of the company/firm/unit and its

directors/partners/proprietor as defaulter in such manner and through such media as the bank or RBI in their absolute discretion may think fit. 28. Declaration about no pending court cases (as per H.O. circular no. 351/02/2003) to be obtained and kept on Branch records. 29. An undertaking to be obtained from the borrower, that the Directors/Guarantors are not, in any way, connected with any senior official (Scale-IV and above) of the Bank. 30. Commitment Charges: The utilization of limit should be made within 3 to 6 months of date of communication of sanction to the party for working capital. If average utilization is less than 75% in case of working capital facilities, commitment charges will be levied @ 0.50% p.a. at quarterly rests on the sanctioned amount. 31. Further an undertaking is to be obtained from the borrower that it will not effect any change in neither management nor declare/pay dividend nor encumber any of the securities charged to the Bank, without the express consent of the Bank. 32. Branch to submit certificate of compliance of terms and conditions, as per prescribed format, to Regional Office. 33. General Undertaking as per H.O. Circular No. 54/1/2004 dated 22.05.04 to be submitted by the borrower. 34. Branch Official should visit the site/property offered as collateral and cross-check its Valuation/Title/Marketability etc. through discrete / market enquiries and ensure that the valuation done by the valuer is justified. Significant divergence observed, if any, vis--vis Reports submitted by Banks Approved Valuer and Panel Advocate should be immediately brought to the notice of the sanctioning authority. 35. All legal expenses/other expenses including incidental charges to be incurred during the course of operation in the account and for completion of documentation formalities will be borne by the borrower 36. Declaration to the effect that no court cases are pending against the company, its directors and the group concerns (as per H.O. circular no. 351/02/2003) to be obtained and kept on Branch record.

37. Compliance of terms and conditions should be sent to RO in terms of H.O. circular no.253/41/2002 dated 30.11.2002. 38. The borrower to furnish an undertaking that, where it transpires that the borrower has given a false declaration, the Bank shall forthwith recall the loan. 39. The Company to submit full details of all the items of Statutory Dues along with CA Certificate of latest date and Branch to ensure that there are no over dues. 40. Consent clause to be submitted by the borrower & guarantor permitting the Bank for submission of credit information to Credit Information Bureau (India) Ltd. 41. The Branch to ensure that all the suggestions as suggested by the advocate in Non Encumbrance Report / Legal Search Report ought to be complied before disbursement. The Branch Head should personally ensure that if the proposed mortgagor acquired the title from Government then Non Encumbrance Report / Legal Search Report should be at least 30 years and if the proposed mortgagor acquired the title from sources other than the Government then Non Encumbrance Report / Legal Search Report should be at least 13 years. The Branch also obtains all the documents (chain of documents) in original which are mentioned in the Non Encumbrance Report / Legal Search Report. 42. If the last documents of the mortgaged property is Lease Deed / Perpetual Lease Deed then the Branch Manager personally go through the Lease Deed / Perpetual Lease Deed and before creating mortgage obtain the stipulated permission from the lessor and if there is any redemption clause (in case of sale of the property the lessor have the first right in some percentage of the difference between the premium value and market / sale value) in the Lease Deed / Perpetual Lease Deed, then valuation of the property should be computed according to redemption clause.

Nature Security

of Type Charge

of Value

Basis / Source

Whether eligible under CRM (Basel II Norms)

Residential

Equitable

680.26**

Valuation Report by Banks No Panel Advocate Shri K.C. Talwar, as on 20.02.08. As per Legal Opinion-cumNon-Encumbrance Certificate by our Panel Advocate, Shri Kalim Ur Rehman dated 08-07-08, the subject property bears

property belonging Mortgage to Mr. M.C. Gupta situated Friends (West), Delhi-65, comprising of 418 sq. yards having construction on at 15B

Colony New

clear title and is marketable.

Ground, First and Second Floor. Total Collateral Security (considering Realisable Value of property) is Rs 680.26 lacs

The said property is also mortgaged to the Bank for Mortgage Loan of Rs. 10.85 Lacs sanctioned to Sh.. Mahesh C. Gupta, Smt. Shashi Khandelwal, Sh. Vikas Gupta, Sh. Mohit Gupta O/S as on 10.01.2010 being Rs. 7.95 Lacs and Machinery Term Loan sanctioned to M/s xyz Apparels Inc-O/S as on 10.01.2010 being Rs. 5.89 Lacs. The conduct of the aforesaid accounts are satisfactory as reported by the Branch and both the accounts are classified as Standard.

SPECIAL CONDITIONS ON CASE TO CASE BASIS 1. Plant and Machinery, equipments, furniture and fixtures to be taken as additional security to cover both the fund based and non-fund based limits. 2. C.A. certificate confirming Net Worth of the Proprietor and Guarantors to be obtained by the Branch before release of enhanced limit and Branch to ensure that the same is in accordance with Net Worth as mentioned in the Process Note. 3. With a view to ease the liquidity position, we propose a stipulation that the borrower should liquidate the OD facility before release of enhanced limits. 4. The Operative Limit can be capped at Rs. 62.00 lacs during FY 2009-10. The full limits i.e. upto Rs. 65.00 lacs may be released during FY 2010-11 subject to the availability of the Drawing Power. 5. It is also being observed that at the time of last sanction/renewal Capital was estimated at the level of Rs. 22.50 lacs for FY 2008-09, whereas as per the Audited B/S of 31.03.2009 Capital stood at the level of Rs. 19.17 lacs. Therefore it is being stipulated that the Firm has to introduce fresh Capital or Unsecured Loan of Rs.3.00 lacs before release of the enhanced limits.

Deepika Kansal Officer (SME) Date:

J.D. Sinha Sr. Manager (SME) Date:

Devi Singh Chhokar Chief Manager Date:

Annexure 3 FINANCIAL INDICATORS (Rs in lacs) Audited As on Audited Estimates 31.03.2010 XYZ Exim Projection 31.03.2011 XYZ Exim

31.03.2008 31.03.2009 XYZ Apparels XYZ Exim

A. LIABILITIES

CURRENT

i. Bank Borrowings iii. Term installments within one year. iii. Deposits/Unsecured loans iv. Sundry Creditors v. Provision vi. Other current liabilities Loan due

46.01

20.27

70.00

70.00

1.00

0.64

2.70

2.60

22.36 0.00 0.00

17.89 0.00 2.82

9.00 0.00 0.40

8.50 0.00 0.40

Total (A)

69.37

41.62

82.10

81.50

B. TERM LIABILITIES a) Term Loan b) Unsecured Loan Other Term Liabilities 7.51 11.99 0.00 3.50 1.29 0.00 10.80 2.38 0.00 8.20 1.06 0.00

Total Term Liability

19.50

4.79

13.18

9.26

C. NET WORTH i. Capital ii. Reserves & Surplus Total (I + ii) 22.10 22.10 15.62 3.55 19.17 21.17 5.95 27.12 26.60 7.40 34.00

Total (C) Revaluation Reserve Net worth Excluding

22.10 0.00

19.17 0.00

27.12 0.00

34.00 0.00

Revaluation Reserve D. TOTAL LIABILITIES (A+B+C) E. CURRENT ASSETS i. Cash & Bank Balance ii. Receivables Domestic - Export iii. Inventory iv. Loans & Advances v. Other current asset

22.10 110.97

19.17 65.58

27.12 122.40

34.00 124.76

3.01

19.34

17.30

17.40

17.60 53.41 3.71 11.43

8.72 19.71 1.58 9.38

18.00 60.00 0.00 6.60

20.00 60.00 0.00 8.00

Total (E)

89.16

58.73

101.90

105.40

F. NET FIXED ASSETS (Excluding Reserve) G. ADVANCES/ IN 0.00 0.00 0.00 0.00 Revaluation 18.16 5.85 19.50 18.36

INVESTMENT SUBSIDIARY/

ASSOCIATE CONCERNS

H.

OTHER

NON 3.65 1.00 1.00 1.00

CURRENT ASSETS

I.

TOTAL

ASSETS 110.97 65.58 122.40 124.76

(E+F+G+H+I)

J.

FINANCIAL

PERFORMANCE i. Gross Sales Domestic Export Duty Drawback Less: Excise Duty Net Sales Growth (%) ii. Gross Profit iii. Depreciation iv. Taxation v. Net Profit vi. Dividend - Amount - Percentage vii. business ix. Interest x. PBDIT Profit retained in 3.12 13.86 20.35 3.55 7.11 11.76 5.95 9.00 17.31 7.40 9.50 20.14 6.49 3.37 0.00 3.12 0.00 262.11 26.17 0.00 288.28 0.00 287.61 24.63 0.00 312.24 8.31% 4.65 1.10 0.00 3.55 0.00 0.00 330.00 30.00 0.00 360.00 15.30% 8.31 2.36 0.00 5.95 0.00 0.00 350.00 31.50 0.00 381.50 5.97% 10.64 3.24 0.00 7.40 0.00

K. RATIO ANALYSIS i. Current Ratio ii. Total Debt/Equity iii. Gross Profit/Sales 1.29 3.14 2.25% 1.41 2.17 1.49% 1.24 3.03 2.31% 1.29 2.40 2.79%

iv. Net Profit/Sales v. Debtors/Sales vi. Creditors/Purchase vii. Ratio viii. Current Assets to Interest Coverage

1.08% 0.73 2.36

1.14% 0.34 1.43

1.65% 0.60 0.56

1.94% 0.63 0.67

1.47

1.65

1.92

2.12

Turnover Ratio

5.40

15.84

6.00

6.36

Annexure 4

DETAILS OF CONSORTIUM / MULTIPLE BANKING ARRANGEMENTS (Rs. in lakh) Particulars % Share EXISTING FB Our Bank Other Member Banks Total (Details as per Annexure) Nil NFB PROPOSED FB NFB

Annexure 5

Limits enjoyed by Associate / Group concerns: A. With our bank Name Branch Details of limits

(Rs. In lakh)

Last sanction

Ass

et TL FBWC of 10.01.10 as NFB Date Cla Authority ssifica tion Mortgage Loan Okhla 7.95 11.07.08 DRM (NDR) Stan dard

of Rs. 10.85 lacs sanctioned Sep.05 Mahesh to in Sh. C

Gupta,(Borrower) Smt. Shashi

Khandelwal, Sh. Vikas Gupta, Sh. Mohit Gupta (Co Borrowers) Machinery Term Okhla Loan Sanctioned to M/s xyz 5.89 11.07.08 DRM (NDR) Stan dard

Apparels Inc

(Rs. In lakh) B. With other bank/FIs/others Bank/FIs /Others Details of limits FBWC TL NFB Outstanding FBWC TL NFB Asset Classification

Name

Nil

Annexure 6

Profile of the group concerns with brief financial indicators

The Firm is having a sister concern under the name and style of M/s xyz Apparels. A machinery Term Loan is still operational having current O/s as of 10.01.2010 being Rs. 5.89. The Account is classified as Standard.

Gist of Financial Indicators of M/s Central Agencies (Rs. In lacs.) S.No. Particulars As Audited per B/S

of 31.03.2009 1. 2. 3. 4. 5. 6. Net Sales Gross Profit Net Profit Capital Net Worth Net Fixed Assets 144.19 6.41 0.93 5.34 5.34 15.43

Annexure 7

Details of properties/assets etc. Under collateral security viz. Valuer, valuation date, encumbrance & marketability status etc. Nature Security of Type Charge of Value Basis / Source Whether eligible under Valuation Report by Banks No Panel Advocate Shri K.C. Talwar, as on 20.02.08. As per Legal Opinion-cumCRM

(Basel II Norms) Residential property belonging to Mr. M.C. Gupta Equitable Mortgage 680.26**

situated at 15B Friends (West), Delhi-65, comprising 418 sq. of yards Colony New

Non-Encumbrance Certificate by our Panel Advocate, Shri Kalim Ur Rehman dated 08-07-08, the bears subject property clear title and is

having construction Ground, and Floor. on First Second

marketable.

Total Collateral Security (considering Realisable Value of property) is Rs 680.26 lacs

The said property is also mortgaged to the Bank for Mortgage Loan of Rs. 10.85 Lacs sanctioned to Sh.. Mahesh C. Gupta, Smt. Shashi Khandelwal, Sh. Vikas Gupta, Sh. Mohit Gupta O/S as on 10.01.2010 being Rs. 7.95 Lacs and Machinery Term Loan sanctioned to M/s xyz Apparels Inc-O/S as on 10.01.2010 being Rs. 5.89 Lacs. The conduct of the aforesaid accounts are satisfactory as reported by the Branch and both the accounts are classified as Standard.

Annexure 8 Additional comments, if any along with investments details in associate /sister concerns, comments on balance sheet, auditors remarks etc. Nil ______________________