Atr Cars - SBH S Format

1
ZONAL OFFICE CREDIT CELL ZONAL OFFICE VISAKHAPATNAM

NOTE-CUM-MEMORANDUM FOR THE ZOCC
Agenda No.
Meeting Date :
Zone
: Region II - Vishakapatanam
Segment
: MSME (Services)
Branch : Governorpet, Vijayawada.

Industry : Others (Dealer in Volkswagen cars)
Dealing with us since : Group - March 2010
Account : M/s. ATR Cars Private Limited

(Private Limited Company)
To Sanction:
i)
Cash Credit(Hyp) Limit of Rs. 250.00 lacs for its Volkswagen showroom/work shop
at Rajahmundry for a period of one year.
ii)
Term Loan of Rs. 700.00 lacs for completion of semi finished show room/ work
shop premises at Nellore at a project cost of Rs. 1103.75 lacs repayable in 83
variable monthly instalments, w.e.f. November 2012. Total tenor is 83 months.
iii)
Bank Guarantee Limit of Rs. 500.00 lacs for lifting of stocks from the car company
to the Nellore unit.
To approve :
i)
Dilution of security for M/s. ATR Warehousing Co. P. Ltd., as the same security is
extended to the current exposure of M/s. ATR Cars P Ltd.
ii)
Waiver of TEV study
iii)
The marks scored by the company (23.37) in the Financial parameters of CRA rating
as against the minimum prescribed marks of 25 (within 25% deviation - ZOCC is the
deviation approving authority)
iv)
10% cash margin on the Bank Guarantee as against minimum stipulated 25%
To Note:
i)
ii)
The deviations in take over norms approved by G M (RNW SZ III) in respect of

a) non achieving 3 years continuous profits and
b) CRA rating of SB 9 as against minimum stipulated SB 6
The following credit rating assigned to the Company based on the Audited
Balance Sheet for 2011-12:Borrower Rating
Facility Rating
SB-9
Cash Credit(Hyp)
Term Loan
Bank Guarantee
FR-2
FR-2
FR-2
Section A1
Present Proposal:
CIRCLE/SBU:
BRANCH:
GOVERNORPET
a) Borrowers Profile:
Name: ATR CARS PRIVATE LIMITED (Nellore)
Segment: MSME (Services)
Constitution :
PRIVATE LIMITED COMPANY
Location: Nellore
New unit/Existing unit: New Unit
Existing Connection:
Yes
If yes:
Banking with us since:
2010
Date of last Renewal/Review (*) New
If Reviewed valid upto:
NA
IRAC Status of 1.Advances:
: Standard
2.Investments: NA
( * ) In case of review date up to which reviewed to be mentioned
b)
i)
Proposal: For sanction/ approval/ confirmation:

Sanction:
a) Cash Credit(Hyp) Limit of Rs. 250.00 lacs for its Volkswagen showroom/work shop at
b)
c)
ii)
Nellore for a period of one year.

Term Loan of Rs. 700.00 lacs for completion of semi finished show room/ work shop
premises at Nellore at a project cost of Rs. 1103.75 lacs repayable in 83 variable
monthly instalments, w.e.f. November 2012. Total tenor is 83 months.
Bank Guarantee Limit of Rs. 500.00 lacs for purchase of stock from the car company
to the Nellore unit.
Approval:
a) Dilution of security for M/s. ATR Warehousing Co. P. Ltd., as the same security is
b) Waiver of TEV study.

c) The marks scored by the company (23.37) in the Financial parameters of CRA rating
as against the minimum prescribed marks of 25 (within 25% deviation - ZOCC is the
deviation approving authority).
10% cash margin on the Bank Guarantee as against minimum stipulated 25%.
d)
iii) To Note:
a) a) The deviations in take over norms approved by G M (RNW SZ III) in respect of

b) The following credit rating assigned to the Company based on the Audited Balance
Sheet for 2011-12:-
Borrower Rating
SB-9
3
Facility Rating
Cash Credit(Hyp)
Term Loan
Bank Guarantee
FR-2
FR-2
FR-2
b)
This proposal falls within the powers ZOCC (V)
as:
of
i) FB/NFB/Total indebtedness is Rs 1450.00 Lakhs (Corp)
ii) Involves policy level deviations:
c) The marks scored by the company (23.37) in the Financial parameters of CRA rating as
against the minimum prescribed marks of 25
iii)
is a director in
Bank
c i)
Credit Limits (Existing and Proposed):

Existing
Proposed
Limits
SBH %
Total
SBH
%
Cons/
MBA/
Syndication
CC/WCDl/BD
250.00
100
EPC/FBD
Total FBWC
TLs/ECBs/FCL
Adhoc, if any
Total FB (a)
NFBWC LC
NFBWC BG
Total NFBWC (b)
Derivative/FC/CEL
( c)
Projected related
LC
Projected related
BG
Project NFB (d)
Total NFB (b)+(c)
+(d)+(e)+f
Total
indebtedness (a)+
(f)=g
Investments (h)
Leasing (i)
Total Exposure
(g)+(h)+(i)
Total
Cons/
MBA/
Syndication
-
Change
SBH Total
Cons/
MBA/
Syndication
Sole
Banking
-
700.00
950.00
500.00
-
100
100
100
-
500.00
100
1450.00
100
c ii) Credit Limits (company & Group):

Exposure
Company
Group
Existing Proposed Existing
Proposed
Fund Based
950.00
NA
NA
Non Fund Based
500.00
Total Indebtedness
Investments
Leasing
Total Exposure
Banks Share++(%)
100%
Banks Share in TL++(%)
100%
-
d Banking Arrangement and Sharing Pattern:

Financial Arrangement: Sole Banking
FB
TL
WC
SBH
800.00
Associate Banks
400.00
1000.00
SB Group
1200.00
1000.00
Other Banks
4663.26
1200.00
(Total)
Top five banks in
terms of their
exposure
Bank A IndusInd
2538.00
Bank B
....
SBH
AXIS
Total
% Share
1000.00
1200.00
1183.00
APSFC
Bank
354.00
NFB
Indian
Overseas
Total
853.00
5863.26
2200.00
c) Sharing Pattern Group company : M/s. ATR Warehousing P Ltd. : The Company is presently
enjoying the following WC/Term Loans from several Banks mostly for the construction of
Warehouses in various parts of the A.P. The brief details of the Term Loans enjoyed by the
company are as under:(Rs. in lacs)
Name of the Bank
Term
Outstanding as per
Purpose
Loan
ABS as on
Limit
31.03.2011
Indian Overseas Bank
--do---do---do-Indusind Bank
State Bank of India
110.00
350.00
463.15
900.00
3175.00
500.00
10.45
22.99
322.41
497.23
2537.67
313.85
--do-APSFC
Axis Bank
Shriram Transport
Finance Co Ltd.
SBH
300.00
1200.00
1200.00
192.59
1182.30
1117.73
172.48
400.00
353.00
1000.00
7722.70
Total
Rent Discounting120.45
--do---do---do---do-Construction Equipment Loan
(for purchase of Dumpers)
--do-Term Loan
Overdraft
Vehicle Loans
Rent Plus Loan
WC CC
Section A2
PERFORMANCE DETAILS
a) Performance and financial indicators:
Year
Gross Sales (Value)
Net Sales (Value)
(Exports)
Raw Materials
Power and Fuel
Direct Labour
Add: Op. Fin. goods
Less: Cl. Fin. goods
Selling, General &
Admn Costs)
Interest
Operating Profit after
interest
OPM% (OP/NS%)
PBT
PBT/Net Sales%
PAT
Cash Accruals
(Rs. in lakhs)
Last two years

Curr
Next Q/HY results as on
actual
year
year
2011
2012
2013
2014
Audited
Prov.
Est.
Proj
LastYr Cur Yr
337.54 2765.11 5580.51 6562.69 Net sales 337.54 2656.99
337.54 2765.11 5580.51 6562.69 (Exports) - PAT
648.59 2653.99 5129.09 6087.39
320.69
19.02
320.69
349.28
78.46
796.98
785.43
266.81
785.43
828.98
237.34
22.14
-31.52
33.62
9.92
140.85
40.16
(9.34%)
-31.52
(9.34%)
-31.52
-23.52
(0.33%)
9.92
(0.37%)
9.92
27.63
0.72%
42.80
0.76%
28.25
132.83
122.76
140.93 b. Industry Exposure as on
31.03.2013
2.15% FBL
950.00
143.83 NFBL
500.00
2.19% Total
1450.00
94.94
183.86 Exposure of the
--
PBDIT
-1.38
61.25
288.23
355.52
Interest Coverage
Ratio*
PUC
125.00
125.00
403.75
403.75
TNW
93.48
364.41
392.66
487.61
Adj. TNW
93.48
364.41
392.66
487.61
TOL/TNW
5.12
4.36
3.77
2.78
TOL/ Adj. TNW
5.12
4.36
3.77
2.78
Current Ratio
1.33
1.32
1.08
1.15
NWC
DSCR
1.08
1.12
1.27
ROE%
@figures in brackets denote estimates at the time of last renewal
*Interest Coverage Ratio: Calculation method EBITDA/Interest
company as per
prudential exposure
norms
To Industry exposure
To total advances
(domestic)
b)
Comments on Performance & Financial Indicators (Comments only on

adverse movements in the above):
i)
Net Sales: The Company has achieved a sales of Rs. 2765.11 lacs during 2011-12 and
estimated Rs. 5580.51 lacs during 2012-13 and projected Rs. 6562.69 lacs during 2013-14.
The company (Nellore unit) has achieved sales turnover of Rs. 3449.07 lacs up to
30.09.2012 as against the estimated 5580.51 lacs for the FY 2012-13
ii)
iii
)
Profitability (PBT/NS): The company has shown a marginal profit in the first year of
operations at Nellore Branch. The company has estimated gross revenues of Rs. 5580.51
lacs during the year 2012-13 and projected Rs. 6562.69 lacs for the year 2013-14.
TNW:
(Past three years)
2010
Opening TNW (excluding SAM$)
2011
2012
93.48
364.41
Add PAT
-31.52
-7.82
Add. (a) Increase in equity
278.75
61.96
635.34
Share Application Money (SAM) $
(b) Increase in share premium

Add./Subtract change in intangible assets
Adjust prior year expenses
Deduct Dividend Payment
Add/Subtract: DTL/DTA
Closing TNW
Investments in Associates/ Subsidiaries (A&S)
Long Term Loans to A&S
Adjusted TNW
$SAM be converted to equity by next Balance Sheet date

Comments:
iv) TOL/TNW: The Gearing Ratio of the Company has been estimated to improve from 4.36 as
on 31.03.2012 to 3.77 as on 31.03.2013. With the increase in TNW during 2012-13, the
Gearing Ratio of the Company has been estimated to improve to 3.77 and projected at 2.78
for FY 2013 & 2014, respectively, which is within bench mark level of 5:1 for nonmanufacturing units. Hence, it is acceptable.
vi) Current Ratio & NWC: The Current Ratio of the Company has marginally decreased from
1.33 as on 31.03.2012 to 1.32 as on 31.03.2013 and further projected to derease to 1.08 as

on 31.03.2014. The Current Ratio of the Company for the FY 2012 is below the bench mark
level of 1.20:1 in case of non-manufacturing units. Due to the lower Current Assets as on
31.03.2012, its first year of operations only (2 months ) the current Ratio of the Company
was lower at 1.33 as per ABS as on 31.03.2012. However, the Current Ratio is estimated to
improve in the next few years.
We request the ZOCC (V) to note the deviations in TOL/TNW and Current Ratio.
c)
Movement of long term funds:

FUNDS FLOW
Actuals
(PY-3)
2010
Actuals
(PY-2)
2011
Actuals
(PY-1)
2012
Estimated
(Current Yr)
2013
Projected
(Next Yr)
2014
Long Term Sources

a) Retained Profit after Tax
b) Equity Funds
-31.52
125.00
-7.82
278.75
c) Loans
120.10
582.98
d) Others (Depreciation)
e) Others
8.00
24.28
22.08
-
104.58
-
Long Term Uses

a) CAPEX
b)Others
Long term Surplus / Deficit
86.22
50.00
109.64
711.03
212.72
(204.75)
164.96
28.25
94.94
88.92
59.00
Comments: The movement of Long Term funds is satisfactory.
d) Synopsis of Balance Sheet:

LIABILITIES
Prev year Last year

2011
2012
CURRENT LIABILITIES
Short Term Bank Finance (A)
Other Current Liabilities (Total of i, ii, iii & iv )
( B)
i. Sundry Creditors
ii.Advance Payments received
iii. TL inst. Repayable in 12 months ( incl FCCB)
iv. Others
TOTAL CURRENT LIABILITIES (A+B)
(C)
v. Term Loans - SBH (> 12 months)
vi. Term Loans Others (> 12 months)
vii. Debentures,Redeemable Pref. Shares (< 12 years), FCCB etc
viii. Unsecured Loans
ix. Other Term Liabilities
TOTAL TERM LIABILITIES ( Total of v to ix )
(D)
TOTAL OUTSIDE LIABILITIES ( TOL = C+D)
(E)
x. PUC
xi. Reserves & Surplus (Other than revaluation reserves)
xii Share Application Money
xiii. DTL
Net Worth ( NW ) Total of x, xi, xii and xiii
(F)
TOTAL LIABILITIES (E + F )
(G)
ASSETS
334.87
310.32
24.55
334.87
120.10
24.28
144.38
479.25
125.00
-31.52
93.48
572.73
Prev year
2011
CURRENT ASSETS
a) Cash & Bank Balances
b) LC/BG Margins & liquid investments
c) Receivables( < 6 Months)
d) Investments (Other than long term)
e) Total inventory
f) i) Other current Assets- Dues from Associates /Subsidiaries
ii) Other Current Assets- Others
TOTAL CURRENT ASSETS
FIXED ASSETS
Gross Block
-3.82
(A)
250.00
611.91
290.58
107.73
648.31
112.77
202.30
315.07
963.38
125.00
8.81
133.81
1097.19
Last year
2012
320.69
127.65
444.51
60.32
349.28
103.51
513.11
86.22
599.85
9
Less Cum Depreciation
Net Block (excluding revaluation reserves)
Investment in Associates, Subsidiaries, sister concerns etc
Other investments
Receivables > 6 months
Others
Non Current Assets
Total Tangible Assets
A+B+C =
DTA
Other Intangible Assets
Intangible Assets, including DTA (E)
Total Assets (D+E)
8.00
78.22
(B)
-
50.00
(C)
(D)
50.00
572.73
572.73
17.71
582.14
1095.25
1.94
1097.19
e)
Comments on adverse movements only in the above : (Not to exceed 5-6 lines)
i)Comments on any change in capital
structure.
ii)Comments on Short Term borrowings, if not
commensurate with increase in value of
inventory & receivables.
iii)Movement of Unsecured Loans (quasi
equity)
iv)Change in investments in Group
companies / others
v)Comments on Sundry Debtors beyond 6
months - present position
vi)Loans and advances to group companies.
viii)Others, if any
f)
ACTIVITY-WISE CASH FLOW ANALYSIS:
(Brief observations on whether operating activities are the principal revenue producing
activities of the enterprise; extent of cash flow from investing activities and financing
activities may be given) [Refer CPPD Circular No. CPP/CIR/CSK/30 dt. 07.07.2011 on
Credit Assessment: Cash Flow Statement (CFS)]
CASH FLOW
a. Net cash from Operations
b. Net cash from Investments
c. Net cash from financing
d.Net increase in cash/ cash equivalent
g)
Actuals Actuals Estimated

(PY-2) (2011-12) (2012-13)
27.63
598.79
(513.63)
(410.10)
351.66
(207.37)
(134.34)
(18.70)
Remarks
Consolidated Data* :(NOT APPLICABLE as ATR Cars Pvt. Ltd is not a

Listed Company. This data is applicable for *listed
companies. * mark implies applicable to listed
companies only)
i) Key Financial Indicators:
Net Sales
Previous Year (2011)

Last year (2012)
337.57
3361.40
10
PBT
PAT
Cash Accruals
PUC
TNW
TOL/TNW
TOL/Adj TNW
-31.52
-31.52
-7.82
-7.82
-23.52
14.26
125.00
93.48
403.75
364.41
5.12
5.12
4.36
4.36
11
ii) Consolidated Cash Flow:(NOT APPLICABLE as ATR Cars Pvt. Ltd is not a
Listed Company)
Consolidated Cash Flow (Activity wise)
Prev Year Last Year
d. Net increase in cash/ cash equivalent
h)
Inter-firm Comparison:
i) Finance related:
S.
Name of Co. FB Lts$ NFB Year
No.
Lts$
S.
No.
ii) Market related:

Name of Co.
PE
(NOT APPLICABLE)
Sales
CR
Cash
Cycle
Net
Profit
TOL/
TNW
(NOT APPLICABLE)
Market Cap Share Price* (@)
EPS of Last Year
H
L
C
(* for listed companies)

@ 52 weeks High Low; face value to be mentioned, if not Rs 10.
Comments:
PBT/
Net
Sales
12
2) M/s. ATR CARS P LTD CONSOLIDATED DATA
a) Performance and financial indicators:
Last two years actuals
Current
year
Estimate
s
31.03.20
13
Next year
25361.93 Net
Sales
Exports
25361.93 PAT
Audited
31.03.2011
Audited
31.03.2012
Gross Sales(value)
5418.80
12808.89
21918.41
Net Sales (value)

(Export)
Net Sales (Quantity)
5418.80
12808.89
21918.41
(Exports)
Raw Materials
Power and Fuel
Direct labour
SG & A costs
Interest
Operating Profit(OP)
after interest
6310.09
12122.35
21990.67
48.23
142.02
151.39
187.05
456.57
450.83
- 110.77
- 239.78
361.83
Q/HY results as on
Projectio
ns
31.03.20
14
Last
Year
Curre
nt
Year
S b. Industry Exposure
as on
FBL
24112.24 NFBL
Total
165.20
Exposure of the
%
company as per
prudential
exposure norms
387.73 To Industry
exposure
651.34 To total
advances
(domestic)
2.53
681.38
2.65
449.78
665.65
1284.98
3.31
OPM% (OP/NS%)
-2.01
- 1.87
1.63
PBT
- 91.36
- 42.18
388.73
PBT / Net Sales%
-1.65
-0.33
1.75
PAT
- 97.53
- 48.51
256.60
Cash Accruals
- 13.88
61.14
505.60
PBDIT
179.34
524.04
1088.56
Interest Coverage
0.96
1.15
2.41
Ratio *
PUC
410.05
410.05 13.89.82
1389.82
TNW
214.42
394.19
1428.06
1882.39
Adj. TNW
214.42
394.19
1428.06
1882.39
TOL/TNW
15.02
13.91
3.29
2.24
TOL / Adj.TNW
15.02
13.91
3.29
2.24
Current Ratio
1.07
1.32
1.07
1.11
NWC
175.64
1052.64
202.35
346.77
DSCR
2.48
1.26
ROE%
- 34.58
- 15.39
28.02
27.06
b) Comments on Performance & Financial Indicators -(Comments only on adverse
movements in the above):
i) Net Sales : 2011 is the first full year of operations for the company. The Company has
achieved a sales of Rs. 5418.80 lacs during 2010-11 and Rs. 12808.89 lacs during 2011-12
13
and estimated Rs. 21918.41 lacs during 2012-13. The company as a whole achieved a sales
turnover of Rs. 8454.00 lacs up to 30.09.2012 as against estimated sales turnover of Rs.
21918.41 lacs for the FY 2012-13.
ii)Profitability (PBT / NS): The company has incurred losses during the initial years 2010,
2011 and 2012 due to depreciation provision and interest on loan. The company has posted
Gross revenues/cash accruals of Rs.61.14 lacs during the year 2011-12 and estimated Rs.
505.60 lacs for the year 2012-13.
iii)TNW:
(Past three years)

2010
2011
2012
1.00
-105.72
214.42
409.05
200.00
- 90.30
- 97.53
- 48.51
409.05
7.98
6.17
6.33
-24.40
2.45
21.95
Opening TNW ( excluding SAM $ )

Share Application Money $
Add PAT
Add. (a) Increase in equity
(b) Increase in share premium
Add./Subtract change in intangible
assets
Adjust prior year expenses
Deduct Dividend Payment
Add / Subtract : DTL / DTA
Closing TNW
303.33
Investments in Associates/
Subsidiaries(A & S)
Long Term Loans to A & S
Adjusted TNW
303.33
$ SAM be converted to equity by next Balance sheet date.
214.42
394.19
214.42
394.19
Comments:
iv). TOL / TNW:
The Gearing Ratio of the Company has been estimated to improve from 13.91 as on 31.03.2012
to 3.29 as on 31.03.2013. The Rajahmundry unit has commenced operations from mid January
2012. With increased capacity of operations, and the increase in TNW during 2012-13, the
Gearing Ratio of the Company has been estimated to improve to 2.24 during FY 2014, which
is within bench mark level of 5:1 for non-manufacturing units. Hence, it is acceptable.
vi CURRENT RATIO & NWC:
The Current Ratio of the Company has marginally deteriorated from 1.32 as on 31.03.2012 to
1.07 as on 31.03.2013 and further deteriorated to 1.11 as on 31.03.2014. The Current Ratio of
the Company for the FY 2013 & FY 2014 are below the bench mark level of 1.20:1 in case of
non-manufacturing units. However, with better management of current assets, the Current
Ratio is estimated to improve in the next few years.
14
c) MOVEMENT OF LONG TERM FUNDS:
FUNDS FLOW
Long Term Sources
a) Cash Accruals
b) Equity Funds
c) Loans
d) Others
Long Term Uses
a) CAPEX
b)Others
Long term Surplus /
Deficit
Estimated
Projected
Projected
2013
1556.44
2014
670.20
2015
721.72
670.20
525.78
721.72
502.31
525.78
144.42
502.31
219.41
979..77
576.67
2406.73
1724.60
682.13
- 850.29
Comments:
d) Synopsis of Balance Sheet:
LIABILITIES
CURRENT LIABILITIES
Short Term Bank Finance (A)
Other Current Liabilities ( B)
( Total of i, ii, iii & iv )
i. Sundry Creditors
ii.Advance Payments received
iii. TL inst. Repayable in 12 months ( incl FCCB)
iv. Others
TOTAL CURRENT LIABILITIES (C)
(A+B)
v. Term Loans -SB (> 12 months)
vi. Term Loans Others (> 12 months)
vii. Debentures, Redeemable Pref. Shares (< 12
years), FCCB etc
viii. Unsecured Loans
ix. Other Term Liabilities
TOTAL TERM LIABILITIES (D)
( Total of v to ix )
TOTAL OUTSIDE LIABILITIES (E)
( TOL = C+D)
x. PUC
xi. Reserves & Surplus
( Other than revaluation reserves )
xii Share Application Money
xiii. DTL
Net Worth ( NW ) (F)
Total of x, xi, xii and xiii
TOTAL LIABILITIES (G) (E + F )
ASSETS SSETS
CURRENT ASSETS
a) Cash & Bank Balances
Previous year
2011
Last year
2012
382.64
921.78
1998.60
1837.77
0.00
0.00
160.83
2404.98
2206.58
0.00
0.00
198.40
2381.24
0.00
839.98
3326.76
0.00
2157.38
0.00
0.00
0.00
0.00
0.00
0.00
839.98
2157.38
3221.22
410.05
5484.14
410.05
-173.68
0.00
-215.86
200.00
236.37
3457.59
394.19
5878.33
Previous year
Last year
240.45
593.62
15
b) LC/BG Margins & liquid investments
c) Receivables( < 6 Months)
d) Investments (Other than long term)
e) Total inventory
f) Other current assets
0.00
637.70
0.00
1397.39
281.34
0.00
1855.54
0.00
1513.84
416.40
TOTAL CURRENT ASSETS (A)

FIXED ASSETS
Gross Block
Less Cum Depreciation
Net Block (excluding revaluation reserves)
(B)
Investment in Associates, Subsidiaries, sister
concerns etc
Other investments
Receivables > 6 months
Others
Non Current Assets (C)
Total Tangible Assets A+B+C = (D)
DTA
Other Intangible Assets
Intangible Assets, including DTA (E)
Total Assets (D+E)
2556.88
4379.40
984.15
105.39
878.76
0.00
0.00
0.00
0.00
1636.92
215.04
1421.88
0.00
0.00
3435.64
77.05
5878.33
21.95
0.00
3457.59
5878.33
0.00
77.05
e) Comments on adverse movements only in the above : (Not to exceed 5-6 lines)
i)
ii)
iii)
iv)
v)
vi)
viii)
Comments on any change in capital structure.

Comments on Short Term borrowings, if not
commensurate with increase in value of inventory &
receivables.
Movement of Unsecured Loans (quasi equity)
Change in investments in Group
companies / others
Comments on Sundry Debtors beyond 6
months -present position
Loans and advances to group companies.
Others, if any
f) ACTIVITY-WISE CASH FLOW ANALYSIS: - Not applicable (Brief observations on whether operating activities are the principal revenue producing activities
of the enterprise; extent of cash flow from investing activities and financing activities may be
given)
CASH FLOW
d. Net increase in cash/ cash
equivalent
g) Consolidated Data*
Actuals
(PY-2)
Actuals
(PY-1)
Estimated
(Current Yr)
Remarks
16
i) Key Financial Indicators
Current Year
Next year 2013
2012
Net Sales
12808.89
21918.41
PBT
-42.18
388.73
PAT
-48.51
256.60
Cash Accruals
61.14
505.60
PUC
410.05
1389.82
TNW
394.19
1428.06
TOL/TNW
13.91
3.29
TOL/Adj TNW
13.91
3.29
* For borrowers with annual turnover of Rs 500 crores and above, consolidated data for past
two years to be provided in full, on the lines of item 2A-a), d) and f), instead of g).
ii) Consolidated Cash Flow - Not applicable
Consolidated Cash Flow (Activity wise)
d. Net increase in cash/ cash equivalent
Previous Year
Last Year
h) Inter-firm Comparison: - Not available i) Finance related:

S. No.
Name
of Co.
FB
Lts$
NFB
Lts$
Year
Sales
CR
Cash
Cycle
Net
Profit
($ wherever available either from our own data or external source)

ii) Market related:
S. No.
Name of Co.
PE
Market
Share Price* (@)
Cap
H
L
C
(* for listed companies)

@ 52 weeks High Low; face value to be mentioned, if not Rs 10.
Comments:
PBT/Net TOL/
Sales
TNW
EPS of Last
Year
17
RISK ASSESMENT
SECTION A3
a) Credit Rating
Current
CRA based on balance Sheet as on 31.03.2012
Validated on
Borrower rating
Current
Previous
CRA -Rating
SB 9
NA
Overall Score
54
Financial Score/
23.37
Minimum Score
25.00
Previous
Facility rating
Facilities
CC
TL
BG
Current
FR 2
FR 2
FR 2
Previous
-NA-
Marks scored by the company in borrower rating/ facility rating mentioned below:
Borrower rating
Parameter
Financial Risk
Business &
Industry Risk
Management Risk
Total
Minimum
Score
25/65
12/20
Marks Scored
by the Co.
23.37/65
18/20
8/15
12.95/15
45/100
54.32/100
Facility rating
Facility
Rating
CC
TL
FR-2
FR-2
Marks Scored
by the Co.
90/100
90/100
BG
FR-2
90/100
90/100
The Credit rating summary is placed as Annexure-8.

Comments on
change(s)
in CRA Rating / Model
The credit rating of the Company has been carried out based on the
Audited Balance Sheet for 2011-12 and the company has been
assigned CRA rating of SB 9 and Facility Rating of FR 2 (Cash
Credit (Hyp), Term Loan, & Bank Guarantee)
The company has scored 23.37 marks under Financial Risk as
against the minimum score prescribed 25 due to adverse gearing
ratio, net profit and other financial parameters. As the difference is
within 25% of the minimum prescribed marks ZOCC (V) is the
competent authority to approve the deviation. We request ZOCC (V)
to approve the deviation.
b) External Rating : Branch will be advised to get the unit rated by External rating
agency
Rating Agency :
Date and Amount of
Rating :
Rating Rationale in brief:
c) RMD ADVISORIES:
i)
RMD Guidance Note
ii)
Qualitative approach
Rating Obtained:
(Previous Rating)
Rating valid upto:
18
iii)
iv)
Quantitative approach
Comments
d)
i) Conduct of Account: N A New connection
(to comment briefly on irregularities in the accounts in the past 12 months no. of times
irregular & time taken for adjustment of peak irregularity. Details in Annexure-6)
ii) Utilization of limits: N A New connection
Utilisation of limits:
Comments
FB Limits
Average utilisation
%
NFB
Average utilisation
%
Review of Cash Credit Account for previous year:
Rs in crores
Comments
(i)Total debit summations
(ii)Total credit summations
% of (ii) to total sales.
Comments (if the utilization is less than 60%)
e) Review of Term Loans (Term Loans with all Banks/FIs to be mentioned): N A New
connection
Name
Limit
DP
Outstandings Irregularity, DSCR
FAC Date of
of the
as on -------if any *
R
restruct
FI/Bank
ures, if
any.
Sanction Actuals
* Comment on reasons for over dues :
i)
No of instalments due:
ii)
No of instalments paid:
iii)
No of Installments in arrears:
iv)
Amount of interest in arrears:
v)
Comment on the companys action plan for regularizing the account.
vi)
Cross
Defaults: If any, please specify:
f) Security Coverage :
(Pl. Furnish summary position here; Full details to be furnished in Section- C)
Security Coverage SB:
including
excluding
including
residual
residual
residual
value
value
value
Amount (%) Amount (%) Amount (%)
Term Loan
Working Capital
Comment on infirmities in
security creation, if any
excluding
residual value
Amount
(%)
19
g) Warning signals and unattended major irregularities - N A - New connection
Report
Date
Warning Signal /Major

irregularities/ Other significant
observations
Comments
RFIA Report
Credit Audit Reports
RBI AFI u/s 35
Other Audit Reports
Qualification if any, in
Auditors report
Stock & Receivables
audit report
h) Earlier terms of Sanction -Compliance status : N A New connection
S.N o.
Conditions/observations
Covenant details/ time

frame
Compliance status
a) FINANCIAL COVENANTS
A.1 Equity infusion
A.2 Conversion of Share Appln money/
Unsecured loans into equity @
A.3 Dividend outflow/ Sale of
Investments
A.4 TOL/TNW (Times)*
A .5 TOL/ Adj TNW (Times)*
A.6 Current Ratio*
A.7 PBDIT/ Interest (Times)*
b) OTHERS [Observations / Conditions/
including Post Sanction modifications (if
any)]
1
2
* Comments only when the negative variance is more than 20%.
Penal action stipulated in last sanction: N A - New connection
Stipulation
Status of compliance
Penal action recommended, if any:

i) Statutory dues/other contingent liabilities:
Dues
Amount quantified in
ABS
Statutory dues
Contingent liabilities
Comments, in brief, if the impact is significant
j) Risks and mitigating factors :
Impact on financial
position (as % of TNW)
Negative score in
CRA, if any
20
Critical risks perceived
CRA
1. Financial Risks
related
2. Business and Industry Risks
Mitigating factors
The Company is estimated to have
lower profitability from the operations.
The Promoters submitted that the profit
margins are thin in the vehicle dealer
business. Further, the dealers are
expected to offer discounts in line with
the market scenario in order to achieve
the higher business goals. Due to the
above, the profitability of the unit was
estimated at lower level which is in line
with the prevailing market situation.
(Risk perception Low)
The Company is the authorized dealer
of Volkswagen Cars in Visakhapatnam
Vijayawada, Nellore and Rajahmundry.
Volkswagen Cars are having good
image and command good market
value for high networth individuals.
The company is hopeful of getting
good business in future too.
However, due to the severe
competition in car segment,
established brands like Maruti, TATA,
Hundai, Toyota and emerging brands
like Nissan, Renault etc., may pose
tough challenges to the continuous
sales of the Volkswagen products.
(Risk perception Medium)
Group
related
Sustaina
bility
concerns
Country risk
3. Hurdle Rates
4. Group gearing, where applicable
5. Adverse features in Group
Concerns/ Associate entities,
interlocking of funds, if any
6. Environmental Clearances&
Sustainability measures
7. Other pending approvals, if any
21
Section A4
PRICING
a)
Income Analysis:
From
WC Int.
(Rs. in Lakhs)
SBH
Actuals (last year) Estimates (curr year)
2013
2014
27.50
27.50
43.76
113.35
8.75
8.75
80.01
149.60
Estimates ( last year)

2012
-
Interest & Other Charges as per latest

Balance Sheet dated 31.03.2012.
Interest
Other Charges
* If share not pro -rata then reasons for the same
Return on Capital
Charged
Comments
Estimated (Prev Year)

-
SBH Share
Amount
Actual (Prev Year)

-
Other Banks/FIs Pricing: --NA-Name of the Bank

Term Loan
Working Capital
-
Percentage
Estimated (Curr year)

-
b)
Existing
-
Proposed
-
c) Proposed Pricing:
ITEM
Base
Existing Rate
Card rate
Proposed rate
Rate
Spread Effective Spread Effective Spread
Effective
Rate
Rate
Rate
Int. on WC
10.25
4.50
14.75
4.50
14.75%
%
Int. on TL
10.25
5.00
15.25
5.00
15.25%
%
( As per MSME 2012-13/20 dated 12.10.2012)
22
d) Other concessions already extended / proposed:
Other income
ITEM
Existing Rate
Card rate
Proposed rate
Processing fee
-NARs. 400 per lac
Rs. 400 per lac
Commit
charges
Upfront fee
-NA1.25%
1.25%
LC
BG
-NAJustification with cost benefit analysis : No concessions proposed
Extent of
concession (%)
Nil
Nil
Nil
Nil
Nil
Nil
23
Section A5
LOAN POLICY: DEVIATIONS AND COMPLIANCE:
a)
Whether names of promoters, directors, company, group concerns figure in

defaulter/willful defaulters list:
Willful defaulters list dated:

RBI defaulters list dated:
Name of the director
Name of the director
31.12.2011
No
30.09.2011
Yes/No
Default in connection with
(Name of the company)
Default in connection with
(Name of the company)
Remarks
Remarks
ECGC Caution List dated:

CIC Credit History
CICs - Suit filed list
Banned list of Promoters
(SEBI)
(CIC: Credit Information Companies)
Deviations in Loan Policy:
Parameters
b)
a) Prudential norms - Borrower

b) Prudential norms - Group
c) FB exposure to the industry
d) Substantial exposure: Borrower
e) Substantial exposure : Group
f) Term Loan -Tenor
g) CRA Minimum Score
h) Hurdle rate
i) TOL/TNW
j) Liquidity
k) Debt / equity
l) Promoters contribution
m) Average gross DSCR (TL)
n) Non compliance of norms for
strategic schemes: viz. Corporate
Loans, TIFS, CRE and ,others
p) Others
Justification:
Indicative Min/Max level

as per Loan policy
Rs. 15.00 crores
Rs. 50.00 crores
Company's
level as on
31.11.2012
Rs. 14.50 crores
Rs. 23.00 crores
7.50% of Banks capital fund

15.00% of Banks capital fund
10 years
45
SB 10
5.00 : 1.00
1.20 : 1
2:1
30% of equity
1.75
Rs. 14.50 crores

Rs. 23.00 crores
83 months
54
SB 9
4.29
1.32
1.93
43.22 %
1.53
Justifications
24
c) Other deviations
Parameters
a. Deviations in
Takeover norms
Deviations
i) The advance to
be taken over
should be rated SB
6 (old rating SBH-3)
or above whereas
the companys CRA
rating as per ABS
2012 is SB 9.
ii) The company
should have earned
3 years continuous
profits 3 years
losses
iv) The company
shall score
minimum scores
prescribed under
various risk
segments 23.37 /
25 in Financial Risk
Parameters
b. Scheme specific
deviations, if any
Deviations
-
Justification
In view of
i) the existing connection /
conduct of the accounts ii)
value of the security iii) to get
a share in the groups car
business iv) The Directors of
ATR group are from business
family with good track record
v) the company is showing
positive signs of profit building,
(cash accruals of Rs. 51.95
lacs in 2012 and projected a
net profit of Rs. 262.49 lacs for
FY 2013) requested the GM
(RNW SZ III) to approve the
deviation.
This is a deviation. ZOCC (V)
is the competent authority to
approve deviation. We
recommend for ZOCC (V) to
approve the de viation.
Compliance
Complied
Justification
-
Compliance
Complied with
c. Advances to Bank's
Directors and parties
related to Directors*
d. Advances to Officers and the Relatives
of Senior Officers of
SB/other Banks*
e. Advances to
Directors of other
Bank(s) and parties
related to other Banks
Directors*
[* Refer latest RBI master Circular on Statutory and other Restrictions]
Approved by
G M (RNW SZ
III) on
17.10.2012.
Complied with
Approved by
G M (RNW SZ
III) on
17.10.2012.
Not applicable
Not applicable
Complied with
d) Deviations, if any, in respect of compliance with Prudential exposure limits as per RBI norms:
Proposed Exposure
Exposure cap as per

Prudential norms as
on:
Substantial
exposure
25
Banks exposure to
borrower
Banks exposure to
group
SB groups exposure
to the borrower / group
14.50 crores
23.00 crores
d.ii) Unsecured exposure, if any: Nil

Agg.
Outstanding
Unsecured
Advances
Agg.
Outstanding
Unsecured
Guarantees
Total
Outstanding
Advances
Policy Norms
prescribed
Position
presently
available
Comments:
d.iii) Position regarding status of Statutory / In-Principle approval from SB, if required.
26
Section A6
SYNOPTIC APPRAISAL MEMORANDUM FOR TERM LOAN:
a) Whether names of promoters, directors, company, group concerns figure in
defaulter/willful defaulters list:
Circle:
Branch:
Company:
VIJAYAWADA
Governorpet Branch
M/s. ATR CARS PRIVATE LIMITED (Nellore)
Term Loan/DPG:
a) Proposal: Sanction of Term Loan of Rs. 700.00 Lakhs,
Cash Credit Limits of Rs. 250.00 Lakhs &
Bank Guarantee of Rs. 500.00 Lakhs.
b) Project/Purpose:
i) Description: Construction of Volkswagen showroom in Nellore. Detailed
Project report is annexed.
ii) Key Project Parameters:
Project Cost
Rs. 1103.00 Lakhs
Debt/ Equity Ratio
1.73
Promoters Contribution
36.54%
Our share in total debt
63.46%
83 variable monthly instalments w .e. f . Nov
Tenor of the loan (moratorium to be
2012 interest as and when debited.
specified)
Average Tenor
83 Months
Gross Avg. DSCR
1.53
Min. Security Margin
Details of sponsor, having major stake I the SPV:
M/s. ATR Warehousing P Ltd
a) Name
(Details to be furnished here if available)
b) Credit Enhancement Mechanism
(Available/ not available) (Details to be
furnished, if available)
c) Appraised by:
In house of the company.
d) Details of TEV Study (if proposed for waiver, justifications to be given):

The Company has requested for waiver of TEV study by approved consultant as it has already
established successfully show rooms at other places Vizag, Vijawada and Nellore with its in
house appraisal. The activity also will not require much technical expertise and the unit is also
employing technical people to look after the business activities. As the request of the Company
is genuine, we recommend to ZOCC (V) for according approval for waiver of the TEV study for
the project.
27
e) Cost of Project, Means of Finance and Key Project Parameters: (Rs. in lakhs)
Cost
Means of Finance
Land
A. Equity:
Promote Others
Total
r (a)
(b)
(c=a+b)
Building & Site
533.75 i) Equity Shares
403.75
403.75
Development
P&M
Other assets
Prel. and Pre-op.
expenses
Deposits
Deposit for BG
Margin
WC Margin
300.00 ii) Pref. Shares

140.00 iii) Internal Accruals*
403.75
A. Total equity contribution 403.75
(i+ii+iii)
55.00 B. Debt
50.00 i) Secured Loan (Term
700.00
Loan)
25.00ii) ECB
iii) Debentures
iv)Unsecured loans
v) Others, if any
B. Total Debt (i+ii+iii+iv+v)
700.00
1103.75
Total
1103.75Total (A+B)
Debt Equity (B/A)
1.73
[@ IDC interest during construction, as a component of preliminary & preoperative expenses]
Promoters contribution: 36.54%
a) Sources of Promoters funds to be specified, e.g details of assets, investments to
be liquidated; in case of Investments from Associates - their Cash Accruals to be
examined over the project implementation period with reference to past
performance, current trends, debt servicing requirements/ CAPEX, cash flow
comfort and other requirements
b) Internal accruals: Details relating to availability/ adequacy of surplus to be
commented upon )
e)
Remarks on Cost of project & Means of finance* (in brief):

* to include analysis of Group equity plans for the projects , projected cash flows
& leverage
1.Cost of the Project : The cost of the project consists of the cost of
construction/completion of the Workshop premises. The amount of Rs.1103.75 lacs
pertains to the site Development, Building Construction, cost of machinery, furniture,
fixtures and completion of automobile sheds etc.
2.Means of Finance : The promoters contribution in the project is Rs.403.75 lacs out of
total cost of the project 1103.75 lacs works out to 36.54%.
3.Project implementation Schedule : As mentioned above, the Company has already
commenced its operations. It also started the construction of their own building.
4)Production factors
: The Company is presently doing its operations in the partly
28
completed showroom at Nellore, with minimum infrastructure for the sale/servicing works of
the Volkswagen vehicles.
5) Marketing : Not Applicable as the Company is engaged in the dealership of the
passenger Cars of Volkswagen Motors which is having good brand value and the Principal
is taking care of the promotional activities of the vehicles.
f) Overall viability and acceptability of the proposal :

2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
(31.52)
(7.82)
28.25
94.94
128.62
173.04
224.54
280.32
Depreciation
Interest on Term Loan
8.00
22.08
104.58
88.92
76.40
66.20
57.77
22.38
0.01
43.76
113.35
95.26
76.85
58.43
40.01
4.22
(23.51)
58.02
246.18
279.13
281.86
297.68
322.32
306.92
A) SERVICE
Net Profit as per P& L A/c
Add:
Total - A
B) DEBT
Repayment of Term Loan
Repayment of Interest on
Term Loan
10.01
106.91
124.86
124.86
124.86
124.86
124.86
0.01
43.76
113.35
95.26
76.85
58.43
40.01
4.22
Total - B
0.01
53.77
220.26
220.12
201.71
183.29
164.87
129.08
1.08
1.12
1.27
1.40
1.62
1.95
2.38
C) DSCR - RATIO - (A/B)

D) Average DSCR
1.53
7) Comments on DSCR: The Average Gross DSCR of the Firm works out to 1.53 which is
acceptable as the same is above our minimum norm of 1.75:1. The DSCR is lowest in the year
2012-13 at 1.08:1 which does not comply with our norm of a minimum of 1.25:1 throughout the
repayment period. However, DSCR in the later years has picked up and therefore, the Average
Gross DSCR is considered as satisfactory reflecting adequate cash surplus available to the unit
for the repayment of Term Loan throughout the repayment period.
It is observed that the DSCR is higher only during the latter period of the loan tenor; thus
reducing the repayment period may put a strain on repayment capacity of the unit in the first few
years. In view of the above, we recommend to ZOCC to accept the Term Loan tenor of 83.
8) Security Margin :
(Rs. in Lacs)
2011-12
WDV of
fixed
assets
Aggregate
TL/DPG
767.17
703.08
2012-13
2013-14
2014-15
875.31
578.22
786.39
453.36
709.99
328.5
201516
201617
201718
643.79
203.64
586.02
78.78
535.30
74.55
201819
490.54
-
201920
450.85
-
29
outstanding
Security
margin
available
% of
margin.
64.09
297.09
333.03
381.49
440.15
507.24
460.74
490.54
450.85
8.35%
33.94%
42.35%
53.73%
68.37
%
86.56
%
86.07
%
100.00
%
100.00
%
Comments on Security Margin : The Security Margin is lowest at 8.35% in the year 2011-12
and is considered as satisfactory.
9) Break-even and sensitivity analysis and whether acceptable : Not carried out as the
Company is not a manufacturing unit and is engaged in the sale and servicing of the
Volkswagen Vehicles.
10) CRA & Proposed pricing: The credit rating of the unit is carried out and the unit was
assigned a risk rating of SB-9 based on the audited financials as on 31.03.2012, the first full
year of operations. The rate of interest corresponding to the rating is 14.75% p.a.(floating - @
4.50% above SBH Base Rate) on the term loan.
11)Repayment Schedule: The proposed Term Loan will be payable in 83 monthly variable
installments as under. The first installment of the Term Loan falls due on 30.11.2012 and last
instalment 30.11.2012. Interest on the Term Loan is payable as and when debited.
The variable repayment schedule of the Term Loan is as under:Period
No.
of
instalme
nts
June 2012 to March 2013
9
Apr 2013 to March 2014
12
12
12
12
12
Apr 2018 to October 2019
7
Apr 2019 to Aug 2019
1
Amount
of
Monthly
installment
Rs. 8,98,000/Rs. 8,98,000/Rs. 8,98,000/Rs. 8,98,000/Rs. 8,98,000/Rs. 8,98,000/Rs. 8,98,000/Rs. 8,92,000/-
Total amount
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
89,75,000
1,07,70,000
1,07,70,000
1,07,70,000
1,07,70,000
1,07,70,000
62,82,000
8,92,000
12) Pricing by other major Banks / FI and justification of the proposed pricing:
13) Compliance of the project with environmental / social / statutory requirements:
Complied with.
14) Environment and Sustainability implications:
Nil
g) Overall viability and acceptability of the proposal :

Keeping in view the Companys business prospects, promoters profile and the satisfactory
projected financials, we recommend for sanction of Term Loan of Rs.700.00 lacs to the
Company for completion of showroom workshop premises at Rajahmundry for undertaking its
authorised sales / servicing works as dealer of Volkswagen Vehicles.
30
Section A7
a) Justification for the proposal: (Only bullet points):
(Other than those covered in Section A4, A5, A6, B-1 and B-2)
a) Working Capital :
Sl Particulars
No
1
2
Net sales
Inventory/NetSales +
Receivables/ Gross Sales
(days)
3 Net Sales to Total tangible
Assets
4 ABF/ TCA
5 S Cr/ TCA
6 OCL/ TCA
7 NWC/ TCA
8 FB WC
9 NFB WC
Brief Comments:
b)
Last Sanction
Estimated Actual
( Rs. in lakhs)
Curryear Proj
for
following
year
2764.06
-
5580.51
-
2.52
2.30
0.57
1.26
(0.26)
250.00
-
0.31
0.62
0.38
250.00
-
Other sanctions :
i)Cash Credit(Hyp) Limit of Rs. 250.00 lacs for its Nellore unit for a period of one
year.
The branch/company has requested for sanction of WC limits of Rs. 250.00 lacs to run the
companys Nellore showroom/workshop. Based on the ABF assessment, the Fund Based
working capital requirement of the Company is estimated at Rs.250.00 lacs for the year
ended 31.03.2013. Details of appraisal of working capital is described at Section B 2 of
the proposal. As per the request of the branch and Company, we recommend to ZOCC
(V) for sanction of the Fund Based Working Capital Limits (CC-Hyp) of Rs.250.00 lacs for
a period of one year.
ii) Term Loan of Rs. 700.00 lacs for completion of semi finished show room at
Rajahmundry
The company has requested for sanction of Rs. 700.00 lacs for completion of workshop at
Nellore.
Details of appraisal of Term Loan is described at Section B 1 of the
proposal.Keeping in view the Companys business prospects, promoters profile and the
satisfactory projected financials, we recommend for sanction of Term Loan of Rs.700.00
lacs to the Company for completion of showroom workshop premises at Rajahmundry for
undertaking its authorised sales / servicing works as dealer of Volkswagen Vehicles.
iii) The Company has requested for Bank Guarantee Limit of Rs. 500.00 lacs to be issued
in favour of M/s. Volkswagen for lifting of stocks from the car company to the Nellore unit.
i) Dilution of security for M/s. ATR Warehousing Co. P Ltd., as the same security is
31
The promoter company of M/s. ATR Cars P Ltd., M/s. ATR Warehousing P Ltd., was
sanctioned the following credit facilities by ZOCC (V) on 02.09.2010 and renewed the
same on 04.07.2012:
Facility
Limits
Cash Credit (Hyp)

Term Loan
1000.00
400.00
DP
O/s as on
19.10.2012
1000.00
1011.36
353.44
326.59
(Rs. in lacs)
Irregularity
11.36
--
The collateral security is as under :

b. Collateral : Extension of Equitable Mortgage of the property as under :
Details of Security*
Total Value
E M of Industrial land
adm. Ac.4.876 cents in
Survey no. 62/1 and 65/1
in
Mindi
village,
Gajuwaka,
Visakhapatnam district of A.P.
and the super structures
thereon valued at Rs.
4974.45 lacs valued by Sri
Lt. col. B.K.Sahoo, panel
valuer, vide report dated
23.08.2010.
Existing
Facility
Proposed
4974.45
Steel City Properties
416.00
(1820.00)
4974.45
(1820.00)
4558.45
4558.45
ATR Warehousing P Ltd.
Rent Plus
400.00
CC
1000.00

Rent Plus
CC
ATR Cars P Ltd

CC
TL
BG
400.00
Total exposure
Overall Security coverage %
400.00
1000.00
3158.45
3158.45
Security coverage %
416.00
325.60
250.00
250.00
350.93
1816.00
2716.00
273.92
183.15
The ZOCC (V) is requested to note the dilution in overall collateral security coverage from
the existing 273.92% to 183.15 %.
ii) Waiver of TEV study
The Company has requested for waiver of TEV study by approved consultant as it has
already established successfully show rooms at other places Vizag, Vijawada and Nellore
32
with its in house appraisal/expertise. As the request of the Company is genuine, we
recommend to ZOCC for waiver of the TEV study by an approved consultant for the
proposed project at Rajahmundry.
iii) The marks scored by the company (23.37) in the Financial parameters of CRA
rating as against the minimum prescribed marks of 25 (within 25% deviation - ZOCC
is the deviation approving authority)
The credit rating of the Company has been carried out based on the Audited Balance
Sheet for 2011-12 and has been assigned CRA rating of SB 9 and Facility Rating of FR 2
(Cash Credit(Hyp), Term Loan, & Bank Guarantee)
The company has scored 23.37 marks under Financial Risk as against the minimum score
prescribed 25 due to non-securing of marks in certain financial parameters like gearing
ratio, etc . As the difference is within 25% of the minimum prescribed marks ZOCC (V)
can take a view on the position. We request ZOCC (V) to approve the same.
iv) 10% cash margin on the Bank Guarantee as against minimum stipulated 25%
At present, the company is availing the Bank Guarantee of Rs. 400.00 lacs at Indian Bank
Gajuwaka branch, Vizag at 10% cash margin. The company has requested for
continuation of the same. We request ZOCC (V) to approve 10% cash margin on the
Bank Guarantee as against minimum stipulated 25%.
d) Noting
i) The deviations in take over norms approved by G M (RNW SZ III) in respect of
The company could not meet 2 of the Take over norms viz., a) non achieving 3 years
continuous profits and b) CRA rating of SB 9 as against minimum stipulated SB 6. Taking
in to account the genuine reasons putforth by the company, and the existing connection,
and on the request of the branch we have recommended to the GM (RNW SZ III), the
competent authority to approve this deviation which was approved on 17.10.2012. Hence,
we request the ZOCC (V) to note the position.
ii) The credit rating SB 9 assigned to the Company based on the Audited Balance
Sheet for 2011-12
The credit rating of the Company has been carried out based on the Audited Balance
Sheet for 2011-12 and has been assigned CRA rating of SB 9 and Facility Rating of FR 2
(Cash Credit(Hyp), Term Loan, & Bank Guarantee). We request the ZOCC (V) to note
the CRA rating assigned to the company.
a) Justification for the proposal: (Only bullet points)
(Other than those covered in section A4,A5,A6, B-1 and B-2)
The proposal is considered as a fair banking proposition in view of the following:
The Directors of M/s. ATR Cars are from business family with good track records.
The company is promoted by reputed M/s. ATR Warehousing P Ltd
We have no exposure in the cars division of the company/group and with this our
33
exposure will be of 21.31% in MBA

The company has established show rooms where no other dealers of
Volkswagen have show rooms
Though the company has incurred losses during the initial years of operation, the
company has projected profits from FY 2013.
The firms stake in the project at Rs.403.75 lacs (37.54%) out of the total project
cost of Rs. 700.00 lacs is considered satisfactory.
The projected financials of the project with DSCR at 1.53 will generate good cash
surplus towards repayment of instalments and interest
The company has made a turnover of Rs 12482.41 lacs for the FY 2012 and
projected a turnover of Rs. 20696.06 lacs for FY 2013
Keeping in view the profile of the promoters, companys standing and the business
potential, and the request of the branch, we recommend to the ZOCC for the following:b) Recommended for sanction / approval / confirmation.
To Sanction:
i)
Cash Credit(Hyp) Limit of Rs. 250.00 lacs for its Nellore unit for a period of one
year.
ii)
Term Loan of Rs. 700.00 lacs for completion of semi finished show room at
Nellore.
iii)
Bank Guarantee Limit of Rs. 500.00 lacs for lifting of stocks from the car
company to the Nellore unit
To approve :
i)
Dilution of security for M/s. ATR Warehousing Co. P Ltd., as the same security
is extended to the current exposure of M/s. ATR Cars P Ltd.
ii)
Waiver of TEV study
iii)
The marks scored by the company (23.37) in the Financial parameters of CRA
rating as against the minimum prescribed marks of 25 (within 25% deviation ZOCC is the deviation approving authority)
iv)
10% cash margin on the Bank Guarantee as against minimum stipulated 25%
To Note:
i)
The deviations in take over norms approved by G M (RNW SZ III) in respect
of
ii)
The following credit rating assigned to the Company based on the Audited
Balance Sheet for 2011-12:-
b)
Borrower Rating
Facility Rating
SB-9
Cash Credit(Hyp)
Term Loan
Bank Guarantee
FR-2
FR-2
FR-2
Recommended for sanction / approval / confirmation:

Appraised by
Assessed by
Signature
Additional
Assessment by
34
Name
Designation
Place: Hyderbad
Date: 01.12.2011
Credit Analyst
Team Leader
Deputy General
Manager
35
ZONAL OFFICE CREDIT CELL
ZONAL OFFICE -VISAKHAPATNAM
Date : 18.10.2012
CHIEF MANAGER
(ZOCC)
ZONAL OFFICE CREDIT COMMITTEE

Sanctioned/Approved/Confirmed/Noted
Meeting Date :
Observations:
1) The branch shall obtain latest stock statement duly certified by the
Chartered Accountant before release of the loan. Subsequently, the same
shall be obtained, at every quarter end, branch/division wise and company
as a whole.
2) The insurance shall be done through SBI General Insurance Co. Ltd.
3) The branch shall get SBI Life Insurance business from the
company/Directors/Employees
Deputy General Manager (Chairman):
Assistant General Manager (Member):
Assistant General Manager (Member):
36
SECTION A8
PROFILE OF THE BORROWER
CIF No, Addresses & Locations of the company :
CIF No(s) - N A -
ATR Cars P Ltd. Corporate Identity Number U50300AP2009PTC063215

PAN AAHCA6327J
11-8-34, Daspalla Hills, Visakhapatnam 530
003
- Do -
Registered Office (Full Address)

Administrative Office (Full Address)
Factories/ Production Centres
(Full Addresses)
1. Vijayawadae
2.. Nellore
3. Visakhapatnam
4. Rajahmundry
Names & Addresses of the Promoters / Directors :

S.No.
Name
Designation
AT
RAYUDU
MD
A
AMMAJI
A
AVNASH
DIRECTOR
ABHPA0658E
DIRECTOR
AAMPA1094J
Identifiers
DIN PAN
AALPA9219L
Full Address
Passport
Others
11-8-34
Daspalla
Hills Vizag
03
4
5
[* Identifiers based on KYC guidelines]
Details of Share-holding pattern of Promoter Directors :
S.No.
1
2
3
Name of the Promoter /

Director
A T Rayudu
Ammaji Anumolu
Corporate ATR
Warehousing P Ltd
No. of Shares
held
5000
5000
4090500
4
ii) Shareholding Pattern as on .
Description % of Holding
Promoters
Pvt. Corporate Bodies
Indian Public
NRI/OCB
Mutual Funds
0.25
99.75
Value of Shares
held
% of share
holding
0.12
0.12
99.75%
37
Banks / Financial Institutions
Foreign Institutional Investors
Others
Total 100
100
iii. Comment on change in shareholding pattern, if any, subsequent to previous sanction:

Credit History (with our Bank):
(Last 5 years for all segments)
i.
Year
Date of
Existing
Sanction
FB
WC TL
Sanctioned
NFB FB
WC
NFB
TL
Net Sales
(only for the
relevant period)
CRA
( All credit sanctions including ad-hoc sanctions to be captured)

ii.
Particulars
Loss/Notional loss/ Haircut suffered by
the Bank on account of Write
off/Compromise settlements/ References
to CDR
in respect of previous exposures on
Companies floated by Related parties
Groups, Associates and Directors
(Please quantify). Specific comments on
Right to recompense clauses needs to
be commented upon
Notional Loss
NA
Comments
NA
Brief Background of the company / Group & Management (To include

competence / reputation/ corporate governance etc;):
Group:
M/s. ATR Warehousing P Ltd : Founded by Mr. A.T Rayudu in 1972, the group has been in a
continuous evolution and expansion. The group is managed by the founder along with his son,
Mr. Avnash Anumolu. The ATR group is into industrial warehousing for Oil, Gas, and Consumer
Goods and is assorted with land pieces at strategic locations Suited for Logistics across
Southern India. The group has structured itself into different companies due to Control of land
possessions under Urban Land Ceiling Act. ATR warehousing is the flagship Company of the
group and controls all other Group companies through direct or indirect holdings. The group
adopted the strategy of buying distressed companies which had land assets at strategic
locations.
Established in 1993 with ice cold storage space for Fisheries in Vizag (Costal
Andhra Pradesh). To cater to the urgent need for Cold storage warehousing, the Company
opened six ice factories and three cold storage Warehouses within a span of 9 months. The
Company owned land in Vizag and at the behest of Cairns Energy, built its first industrial
38
warehouse for storing Cairns pipes which are used in offshore rigs. Later, the Company
moved into Kakinada which was fast developing into a major oil & Natural Gas Exploration
centre on the east coast. It signed contracts with Reliance Energy & SCHLUMBERGER for
further expansion. At present, the Company has around 75 acres of land bank which is valued
at around INR 4,000 Mn
The names of the group companies and their activity are as under :Sl.
Name of the Associate/Group
Activity
No.
Concern
1.
Usha Tube & Pipes Ltd (UTPL),
Logistics & Warehousing
Visakhapatnam
2.
Steel City Properties (P) Ltd
Warehousing & Logistics
3.
Anmol Trading Corporation
Trading (Import & Export), manufacturers of
Metal roofing sheets.
4.
Avnash Automobiles (P) Ltd
Authorized Dealers for Maruti Suzuki Cars
Visakhapatnam
5.
ATR Cars (P) Ltd Visakhapatnam
Authorized Dealers for Volkswagen Cars
& Vijayawada
6.
Avnash Estates & Resorts Ltd.:
Resorts & Property Development
7.
Pragati Fertilizer (P) Ltd
8.
UB ELASTOMERS LTD(P) Ltd
Visakhapatnam
9.
ATR Logistics
10.
NAI AE&R, Hyderabad
Commercial real estate Services
ATR Cars Private Ltd. :
ATR Cars Pvt Ltd is a company promoted by Mr A T Rayudu ,Mrs A Rayudu and Mr Avnash
Anumolu, S/o Sri A T Rayudu . The company has set up a 3S facility (Sales + Service + Spares)
of Volkswagen Cars at Vijayawada in the year 2009, at Visakhapatnam in March 2010, and at
Nellore in January 2011. The company has been selling Volkswagen Cars from August, 2010.
M/s Volkswagen Group Sales India Pvt Ltd (manufacturer of Volkswagen car), gave another
Letter of Intent dated 03.10.2011 to ATR Cars for opening another facility at Rajahmundry. The
facility at Rajahmundry is partially set up and company has requested for Term Loan of Rs.
250.00 lac for completing the show room .
The companys credit requirement for Vijayawada and Visakhapatnam facilities have been
funded by Andhra Bank, Gunadala Branch, Vijayawada. The credit requirement for Nellore
show room has been funded by Indian Bank, Gajuwaka Branch. In addition to it , the Indian
Bank has given a Bank Guarantee of Rs. 400.00 Lakhs for the purpose of lifting stock from M/s.
Volkswagen for Rajahmundry show room of the company. It has been proposed by the branch
for take over of the BG limit as well as all the credit requirements of companys Rajahmundry
show room will be financed by us.
Brief write up on the Industry/ Sector and the Companys standing
(Comments on domestic/ international standing, market share, business strategies and
competitive advantage etc. The para to conclude with the outlook for the unit)
Currently, penetration of cars & UVs in India is currently 9 per thousand people, less than in
than most developed markets. This unaddressed potential has attracted more players to the
cars & UVs segment, especially the small cars category. Five new players entered this
category, during 2005-06 to 2010-11. Rising competition in segment has kept sales per model
flat over the past 5 years, even as total sales have grown by 18 per cent. MSIL lost clout in
39
this segment, with its share falling by 10 percentage points to 54 per cent between 2005-06 and
2010-11. As competition intensifies, carmakers R&D costs as a percentage of total sales, will
rise in the coming years from about 4 per cent as of 2010-11. Moreover, as players look to
expand their reach in smaller cities, selling and distribution costs, as a percentage of total sales
will also rise from current levels of 2.5 per cent. This will intensify cost pressures on players
over the next 5 years.
CRISIL Research expects the Indian automobile industry to more than double by 2015-16 from
2010-11 levels. More global automakers are setting up independent operations in India to
capitalise on this growth. They are also driven by an under penetrated vehicle market and
relatively lower operating costs. Rising competition from these players has offered Indian
consumers newer models at competitive prices. Consequently, this will pressure existing
market leaders to launch products more frequently at better prices, thus pushing up their cost
pressures. CRISIL Research believes that localisation and platform sharing will enable Indian
automakers tackle rising competition in the coming years.
M/s. Volkswagen is a car maker with history of more than a century. Its headquarters is in
Wolfsburg, Germany and the design and R&D support is provided from Germany. In India it has
established its facility i.e., M/s. Volkswagen India P Ltd., at Chakan in 575 acres and its
buildings constitute 115 thousand sq. meters (around 2 Km). The facility was constructed in
record 17 months and commissioned in 2009 by investing about 580 million Euros (Rs. 3800
crores). It is the largest single investment in India by a German company, till date.
It has
capacity to produce 1,10,000 vehicles per year. In India it offers 5 models in luxury segment 1
in mid size and 1 in small segment.
40
Section B-1
APPRAISAL MEMORANDUM FOR TERM LOAN:
Circle: VIJAYAWADA
Branch: GOVERNORPET
Company: ATR CARS PRIVATE LIMITED.
Term Loan/DPG:
a) Proposal: Sanction of Term Loan of Rs. 700.00 lacs for construction/completion of
showroom at Nellore for retail sales/servicing of Volkswagen cars.
b)
Project/Purpose:
The company has commenced Volkswagen cars showroom at Nellore in January 2012
in a semi-finished premises with their own funds. Now they are completing the
construction of the showroom at a project cost of Rs.1103.75 lacs.
Term Loan :
a)
Proposal : Sanction of TL of Rs. 700.00 lacs for completion of Nellore workshop premises
b)
Project / Purpose : Completion of construction of workshop premises
ii) Key Project Parameters:

Project Cost
Debt
Equity
D/E Ratio
Tenor of the loan
Gross avg DSCR
Min. Security Margin
Promoters contribution
c) Appraised by:
Rs. 1103.75 Lakhs

Rs. 700.00 Lakhs
Rs. 403.75 Lakhs
1.73
83 Months
1.53
Rs. 403.75 Lakhs
In house of the Company.
d) Details of TEV Study (if proposed for waiver, justifications to be given):

The Company has requested for waiver of TEV study by approved consultant as it
has already established successfully show rooms at other places Vizag, Vijayawada
and rajamundry with its in house appraisal/expertise. As the request of the
Company is genuine, we recommend to ZOCC for waiver of the TEV study by an
approved consultant for the proposed project at Nellore.
41
e) Cost of Project, Means of Finance and Key Project Parameters:

Cost
Means of Finance
Land
A. Equity:
Promote Others
r (a)
(b)
Building
533.75 i) Equity Shares
403.75
P&M
Other assets
Prel. and Pre-op.
expenses
IDC @
Contingencies
WC Margin
300.00 ii) Pref. Shares

140.00 iii) Internal Accruals*
Total equity contribution
(i+ii+iii)
55.00 B. Debt
50.00 i) RTL
25.00ii) ECB
iii) Debentures
iv)Unsecured loans
v) Others, if any
Total Debt (i+ii+iii+iv+v)
Total
1103.75Total (A+B)
Debt Equity (B/A)
1.73
Promoters contribution: a/A% 37.54%
f)
403.75
Total
(c=a+b)
403.75
403.75
700.00
700.00
1103.75
Remarks on Cost of Project ( CoP) & Means of Finance ( MoF) (in brief):
(comments on MoF to also include promoter Groups equity commitments during
project implementation period in the context of Groups projected free cash flows &
leverage over the period;)
The main promoter of M/s. ATR Cars P Ltd. is M/s. ATR Warehousing P Ltd., promoted by
high networth individuals having adequate means to infuse the remaining contribution of
Rs.190.27 lacs. All the Directors of the Company are businessmen with varied interests in
industrial warehousing for Oil, Gas, and Consumer Goods and is assorted with land pieces
at strategic locations suited for Logistics across Southern India.
The company has taken authorized dealership of Volkswagen cars from M/s. Volkswagen
Cars India P Ltd and has been selling Volkswagen Cars from August, 2010. The company
has so far established authorized dealership show rooms at Vijayawada, Visakhapatnam,
Rajamundry and now at Nellore. The companys credit requirement for Vijayawada and
Visakhapatnam facilities have been funded by Andhra Bank, Gunadala Branch,
Vijayawada. The credit requirement for Nellore show room has been funded by Indian
Bank, Gajuwaka Branch.
It has been now been proposed by our MSME branch, Visakhapatnam, for sanction of all
the credit requirements of companys Nellore show room.
1.Cost of the Project :
42
(Rs in lacs)
S No
Particulars
Cost
Site Development
50.00
25.00
50%
25.00
Buildings
483.7
5
138.75
29%
345.00
Plant & Machinery
300.0
0
75.00
25%
225.00
Furniture
75.00
18.75
25%
56.25
Electrical Items
45.00
11.25
25%
33.75
Office Equipment
20.00
5.00
25%
15.00
Deposits
55.00
55.00
100%
Deposit for BG Margin
50.00
50.00
100%
Working Capital Margin
25.00
25.00
100%
2
3
Total
1,103.75
Borrowers %
Margin
Bank
Finance
403.75
700.00
2.Means of Finance : The promoters contribution in the project is Rs.403.75 lacs

out of total cost of the project 1103.75 lacs works out to 37.54%.
Share Capital Company
Term Loan from bank
Total
(Rs lacs )
403.75
700.00
1103.75
3.Project implementation Schedule : As mentioned above, the Company has

already commenced its Showroom operations in the partly completed owned
premises at Nellore from mid January 2012. The present project is for completion of
43
the partly constructed show room which will be fully ready by December 2012.
4)Production factors : The Company is presently doing its operations in the partly
completed showroom at Nellore, with minimum infrastructure for the sale/servicing
works of the Volkswagen vehicles.
5) Marketing : Not Applicable as the Company is engaged in the dealership of the
passenger Cars of Volkswagen Motors which is having good brand value and the
Principal is taking care of the promotional activities of the vehicles.
a) Commercial viability (company as a whole):

( not applicable for SPVs)
(Rs. in Lakhs)
PY 2 AUD
PY 1 AUD
CY
FY
Net sales
337.54
2764.06
5580.51
6562.69
OP
-31.52
8.87
491.56
140.93
PBT
-31.52
9.92
494.20
143.83
PAT
-31.52
9.92
326.22
94.94
Cash Accruals
-23.52
14.26
132.83
183.86
-1.38
85.82
288.23
355.52
PBDIT
Year
2011- 2012- 2013- 2014- 2015- 2016- 2017- 201812

13
14
15
16
17
18
19
Capacity utilization %
Sales
2765.115583.156565.596760.927209.637813.168494.669189.6
Net Profit
-31.52 9.92
326.22 94.94 128.62 173.04 225.54 280.32
Cash Accruals-23.52 27.63 430.81 183.86 205.02 239.25 282.31 302.70
0.01
6.12 113.35
95.26
76.85
58.43
40.01
4.22
Interest
TOTAL
TL / DPG Existing
repayments Loan
Proposed
Loans
Interest
TOTAL
Gross DSCR
Average Gross DSCR
(23.51)
33.75
544.15
279.13
281.86
297.68
322.32
306.92
10.01
106.91
124.86
124.86
124.86
124.86
124.86
0.01
6.12
113.35
95.26
76.85
58.43
40.01
4.22
0.01
16.13
220.26
220.12
201.71
183.29
164.87
129.08
2.09
2.47
1.27
1.40
1.62
1.95
2.38
1.82
44
Net DSCR
1.82
i b) Commercial viability (Current project):

Year
2011- 2012- 2013-14 2014- 2015- 2016- 2017-18
12
13
15
16
17
Capacity utilization %
Sales
2765.115583.15 6565.596760.927209.637813.16 8494.66
Net Profit
-31.52
9.92 326.22 94.94 128.62 173.04 225.54
Cash Accruals -23.52 27.63 430.81 183.86 205.02 239.25 282.31
0.01
6.12
113.35
95.26
76.85
58.43
40.01
Interest
(23.51)
TOTAL
TL /
Existing Loan
DPG
repayments Proposed Loans
Interest
TOTAL
Gross DSCR
33.75
544.15
279.13
281.86
297.68
322.32
10.01
106.91
124.86
124.86
124.86
124.86
0.01
6.12
113.35
95.26
76.85
58.43
40.01
0.01
16.13
220.26
220.12
201.71
183.29
164.87
2.09
2.47
1.27
1.40
1.62
1.95
Average Gross DSCR

Net DSCR
1.82
1.82
7) Comments on DSCR: The Average Gross DSCR of the Firm works out to 1.53 which is
acceptable as the same is above our minimum norm of 1.75:1. The DSCR is lowest in the year
2012-13 at 1.08:1 which does not comply with our norm of a minimum of 1.25:1 throughout the
repayment period. However, DSCR in the later years has picked up and therefore, the Average
Gross DSCR is considered as satisfactory reflecting adequate cash surplus available to the unit
for the repayment of Term Loan throughout the repayment period.
It is observed that the DSCR is higher only during the latter period of the loan tenor; thus
reducing the repayment period may put a strain on repayment capacity of the unit in the first few
years. In view of the above, we recommend to ZOCC to accept the Term Loan tenor of 83.
8) Security Margin :
(Rs. in Lacs)
2011-12
WDV of
fixed
assets
Aggregate
TL/DPG
outstanding
Security
margin
available
% of
margin.
201516
201617
201718
201819
201920
2012-13
2013-14
2014-15
767.17
875.31
786.39
709.99
643.79
586.02
535.30
490.54
703.08
578.22
453.36
328.5
203.64
78.78
74.55
64.09
297.09
333.03
381.49
440.15
507.24
460.74
490.54
450.85
8.35%
33.94%
42.35%
53.73%
68.37
86.56
86.07
100.00
100.00
450.85
45
%
Comments on Security Margin : The Security Margin is lowest at 8.35% in the year 2011-12
and is considered as satisfactory.
9) Break-even and sensitivity analysis and whether acceptable : Not carried out as the
Company is not a manufacturing unit and is engaged in the sale and servicing of the
Volkswagen Vehicles.
10) CRA & Proposed pricing: The credit rating of the unit is carried out and the unit was
assigned a risk rating of SB-9 based on the audited financials as on 31.03.2012, the first full
year of operations. The rate of interest corresponding to the rating is 14.75% p.a.(floating - @
4.50% above SBH Base Rate) on the term loan.
11)Repayment Schedule: The proposed Term Loan will be payable in 83 monthly variable
installments as under. The first installment of the Term Loan falls due on 30.11.2012 and last
instalment 30.11.2012. Interest on the Term Loan is payable as and when debited.
No.
of
instalme
nts
9
12
12
12
12
12
7
1
Amount
of
Monthly
installment
Total amount
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
89,75,000
1,07,70,000
1,07,70,000
1,07,70,000
1,07,70,000
1,07,70,000
62,82,000
8,92,000
12) Pricing by other major Banks / FI and justification of the proposed pricing:
13) Compliance of the project with environmental / social / statutory requirements:
Complied with.
14) Environment and Sustainability implications:
Nil
g) Overall viability and acceptability of the proposal :

Keeping in view the Companys business prospects, promoters profile and the satisfactory
projected financials, we recommend for sanction of Term Loan of Rs.700.00 lacs to the
Company for completion of showroom workshop premises at Rajahmundry for undertaking its
authorised sales / servicing works as dealer of Volkswagen Vehicles.
1) The project cost details to be vetted by Chartered Accountant.
2) Branch is advised to release the Term Loan on prorate basis only after the company
brings its margin
upfront
3) Chartered Engineers certificate to be obtained after completion of the project to verify the
end use of funds
4) COD to be obtained from the company after completion of the project
46
Section B-2
Appraisal Memorandum for Working Capital:
(If the assessment of the WC limits is based on any other parameters, like Cash Budget
method, Nayak Committee- Turnover Method, please specify them along with an
explanation)
a) Overall viability and acceptability of the proposal :
Inventory/Payments
2011-12
2012-13
2013-14
Raw material
-Imported
-
( Rs. in lakhs)
2014-15
-
Amount
Da
ys
-Domestic
11.98
14.38
17.26
20.71
Amount
Da
ys
SIP
1371.05
1336.72
Amount
Da
ys
FG
785.00
1335.68
Amount
Day
s
Receivables
Amount
Day
TL insl. Payable in 12 M
S Creditors
46.19
-
76.78
-
90.28
124.86
92.92
-
124.86
124.86
47
- Import
Amount
Days
- Domestic Amount
Days
Other
Current
Assets
480.00
-
480.00
480.00
480.00
-
Amount
b) Assessed Bank Finance:

Assessed Bank Finance
Year
TCA
2011-12
2011-12
2012-13
2012-13
2013-14
2013-14
2014-15
2014-15
843.17
1,462.21
1,444.26
1,449.30
OCL
480.00
604.86
604.86
604.86
WC Gap
363.17
857.35
839.40
844.44
NWC
-135.20
BF
250.00
250.00
250.00
250.00
16.01%
29.65%
56.93%
-
40.36%
17.09%
41.36%
-
39.79%
17.31%
41.88%
-
17.25%
41.73%
-
NWC/TCA (%)
BF/TCA (%)
OCL/TCA (%)
OCA/TCA (%)
LC/SC(%)
590.20
574.70
48
c) Assessment of EPC / FBD limits : (Not Applicable)

Sl. No. AS ON 31st MARCH
ACTUAL
A
EPC
A1Annual Export Sales
A2Exports Per month
A3Average RM holding (in months)
A4Average processing period (in
months)
A5Total requirement [A2 x(A3+A4)]
Less : Margin
A6EPC Limit Recommended
B
PSC
B1Average export receivables (in
months)
B2PSC required (A2 *B1)
B3FBD Limit Recommended
C
Total export finance required
(A6+B3)
d)
Computation of LC limits for WC:
Not Applicable
Foreign LCs
ESTIMATE
PROJECTION
NA
Domestic LCs Total LCs

Total Purchases of RM (Esti/Proj)
Procurement out of LC (%)
Monthly RM purchases out of LC*
a) Usance (average)
NA
b) Lead time (average)
Total Time (a + b)
LC Limit required
Recommended LC limit
Documentary :
Non Documentary :
Margin (Existing / Proposed):
Usance / Sundry Creditors :
*In case of foreign LCs, purchases should be net of duties.
Comments on mismatch, if any, between Usance available & Sundry Creditors :
e) Assessment of BG limit:
(Rs. in lakhs)
Outstanding BGs as on 31.03.2012
0.00
Add: BGs required during the period 31.03.2012 to 500.00
31.03.2013
Less : Estimated maturity/cancellation of BGs during the 0.00
period
Requirements of BGs
500.00
Recommended BG limit
500.00
Financial :
Performance :
Margin (Proposed): 50.00
49
(In case of EPC Contractors/ Construction industry detailed assessment in respect of

Guarantees issued for Bid bond, Mobilization, Performance, Retention, Other BGs be
provided)
The company has availed a Bank Guarantee of Rs. 400.00 lacs from Indian Bank Gajuwaka Branch, for lifting stock
from the company to its Rajahmundry unit , in favour of M/s. Volkswagen Group Sales India P Ltd., issued for a period
of one year and valid up to 23.11.2012.
The company has requested for takeover the Bank Guarantee limit from Indian Bank, Vizag,
along with the sanction of WC/TL facilities to its Rajahmundry unit. We have issued a letter of
intent for taking over the BG limit to the Indian Bank. The credit opinion report and B G letter
submitted by the Indian Bank is enclosed.
We propose to take over the limit by issuing a letter of comfort to the bank. As the BG is due to
expire on 23.11.2012, we will issue a fresh BG in favour of the M/s. Volkswagen Group Sales India P
Ltd., . In case of any devolvement in between the due date we will honour the Bank Guarantee
based on the letter of comfort issued to Indian Bank, Gajuwaka branch.
S
BG Parameters
Particulars
No
1
Limit
400.00 lacs To be taken over from Indian
Bank, Gajuwaka branch, Vizag.
The
existing BG issued by them is due on
23.11.2012.
2
Cash Margin
10% - The applicant has to deposit a cash
margin of on Non-fund based limits in the
form of Banks Special Term Deposit.
3
Security
i) Counter Indemnity of the borrower.
ii)Extension of Charge over current assets,
all collaterals available to Working
Capital/TL
limits should cover Bank
Guarantee limit also.
4
Purpose
Lifting of stocks from M/s. Volkswagen Group
Sales India P Ltd., .
5
Period of B G
12 months
6
Commission
As per banks standard rates
Assessment of BG limits for EPC contractors/ Construction Industry : N A
Comments on mismatch, if any, between Mobilization BGs given and Advance payment Outstanding
l)
Assessment of Credit Exposure Limit (Forward Contract Limit):As per Annexure-2. - Not Applicable
Assessment of BG limits for EPC contractors/ Construction Industry (Not Applicable)
f)
Assessment of Credit Exposure Limit (Forward Contract Limit): Not Applicable
50
Section C
Standard Terms & Conditions:
Circle:
Branch:
Company:
VIJAYAWADA
GOVERNORPET
ATR CARS PRIVATE LIMITED (Nellore)
Security:
a. Primary
Facility
CC (HYP)
TL
Type of Charge
Hypothecation of the Stocks Hypothecation

(Cars), Spares and other
Receivables, both present and
future, of the Company.
All the equipment, plant & Hypothecation
machinery, Electrical fixtures
furniture and fittings and all
other movable assets at the
companys workshop
is
situated in a leased industrial
shed premises at 69-31-14,
Sriramnagar,
Rallacheruvu,
Opp.
FCI
godowns,
Rajahmundry 533103.
Value**
Rs in lacs
Date of
valuation
Basis of
valuation
1103.75
as per
project cost
BG
*To include detail like Khata no./ Survey No./ Patrta No.etc, Flat no, House no, Area/extent of land, address.
** In case of Consortium/ MBA Accounts our share to be provided. Details of Total Security for the facility and for the
Banking System may be shown in brackets
Collateral : Extension of Equitable Mortgage of the property as under :
(Rs. in lacs)
Total Value
E M of Industrial land
adm. Ac.4.876 cents in
Survey no. 62/1 and 65/1
in
Mindi
village,
Gajuwaka,
Visakhapatnam district of A.P.
and the super structures
thereon valued at Rs.
4974.45 lacs valued by Sri
Lt. col. B.K.Sahoo, panel
23.08.2010.
Existing
Facility
Proposed
4974.45
416.00
(1820.00)
4974.45
(1820.00)
4558.45
Rent Plus
400.00
CC
1000.00
416.00
4558.45

Rent Plus
CC
400.00
1000.00
3158.45
3158.45
ATR Cars P Ltd
51
CC
TL
BG
400.00
Security coverage %
Total exposure
325.60
250.00
250.00
350.93
1816.00
2716.00
273.92
183.15
The branch is advised to obtain latest copies of EC s and verify our charge and keep on record.
Charges to be registered with ROC within 30 days of release of the facilities
Latest search report to be obtained and verify that our charge is persisting.
c. Guarantees:
i) Guarantee of Managing Directors/Directors of the company
Facility
CC 2.50 Cr
TL 2.62 Cr
BG 4.00 Cr
Name
A T Rayudu
Ammaji Anumolu
Avnash Anumolu
Net Means
10236.02
2353.24
3611.59
As on
31.03.2012
31.03.2012
31.03.2012
(Rs. in lacs)
Compiled on
15.10.2012
15.10.2012
15.102012
ii) Corporate guarantee of M/s. ATR Warehousing P Ltd.

In case of Corporate guarantee(s) -brief profile and financials of the company extending the guarantees executed by the
entity on behalf of the associate concerns to be given.
In case of personal guarantees, net worth to be furnished
d. Security Coverage:
(Rs. lacs)
Total Value
Existing
Facility
4974.45
E M of Industrial land Steel City Properties
adm. Ac.4.876 cents in 416.00
Survey no. 62/1 and 65/1 (1820.00)
in
Mindi
village,
Gajuwaka,
Visakha- 4558.45
patnam district of A.P. ATR Warehousing P Ltd.
and the super structures Rent Plus
thereon valued at Rs. 400.00
4974.45 lacs valued by Sri CC
Lt. col. B.K.Sahoo, panel 1000.00
23.08.2010.
3158.45
Proposed
4974.45
(1820.00)
416.00
4558.45

Rent Plus
CC
400.00
1000.00
3158.45
ATR Cars P Ltd

CC
TL
BG
250.00
250.00
52
400.00
Security coverage %
Total exposure
325.60
350.93
1816.00
2716.00
273.92
183.15
Comments on Collateral Security Coverage

:
As
per
the
MSME
Policy
guidelines, the collateral security coverage required for any exposure is 75% in respect
of non-manufacturing units. Thus, the collateral security coverage complies with our
collateral security norms.
Security Coverage
SB:
Existing
including
residual
value(%)
excluding
residual
value(%)
Proposed
including
residual
value(%)
excluding
residual
value(%)
Term Loan (%)

Working Capital (%)
Comment on infirmities in
security creation, if any
i. Please indicate time frame allowed for security creation:
ii. Deviation from existing security (if any) to be mentioned in the proposal.
Justification of deviation to be furnished in Section A7
e. ECGC COVER: Not applicable
f. MARGINS : (For Each Facility as Applicable)
Cash Credit:
Existing
RM: Domestic
RM: Imported
SIP
FG
Receivables (Cover ---days)
Letter of Credit
BG
TL / DPG
Project LC
Justification for deviation from existing margins, if any to be provided in Section A 7above.
Proposed
10%
37.54%
C. MARGINS: Term Loan 37.54%

D. RATE OF INTEREST:
CRA
Pricing
SB-9 based on Audited Balance Sheet as on 31.03.2012

CC (Hyp) 14.75% p.a.(floating - @ 4.50% above SBH Base Rate) as card rates
T L 15.25% p.a. (floating - @ 5.00 % above SBG Base Rate)
53
E. Insurance :
All the Movable Assets (at the Workshop premises proposed to be
fianced by us ) and Current Assets of the unit should be insured against all risks in the joint
names of the Bank and the Company. The insurance shall be done from M/s. SBI General
Insurance Co. Ltd.
F. Processing Charges ( For CC (Hyp) & BG) : Rs. 2,60,000/- (400 X 650)
Upfront Fees(on Term Loan)
Loan).
Rs. 8,75,000/-(Upfront Fees @ 1.25% of the Term
Equitable Mortgage Charges
Rs.20,000/-
Commitment Charges
undrawn portion.
1.20% for delayed drawdown beyond 2 months on
G. Inspection
Quarterly Intervals.
H. Term Loan Margin
37.54%%.
I. Repayment Schedule
Cash Credit
: On demand
Term Loan
The proposed Term Loan will be payable in 83 monthly variable installments as under. The
first installment of the Term Loan falls due on 30.11.2012 and last instalment 30.09.2019.
Interest on the Term Loan is payable as and when debited.
No.
of
instalme
nts
9
12
12
12
12
12
7
1
Amount
of
Monthly
installment
Total amount
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
89,75,000
1,07,70,000
1,07,70,000
1,07,70,000
1,07,70,000
1,07,70,000
62,82,000
8,92,000
Disbursement
:
The branch is advised to release the Term Loan directly to the
Vendors alongwith the remaining margin money of the promoters.
K. Drawdown of Term Loan :
The Term Loan should be released at the written request
of the company depending on the progress of the work completed by ensuring the companys
stipulated margin.
54
L. Pre-disbursement Conditions :
Obtaining Legal Opinion Reports on the immovable properties offered as Primary and
collateral security.
Obtaining Valuation Report on the properties offered as security by our panel valuer and
conducting branch inspection of the properties to confirm the reasonableness of the
valuation accorded by the panel valuer.
Filing of our charges with ROC.
Processing/ Upfront Fees/Mortgage charges should be recovered before release of
Limits.
M. Other Critical Covenants for Term Loan:
Amount
Tenor
Security
Documentation
Penal Interest
Pre-payment
penalty
Legal Expenses
Other Critical
Covenants
Rs.700.00 lacs.
83 months
MSME -Series Documents to be obtained.
Agreement to Mortgage to be obtained from the Company.
2% p.a. on the overdue interest and installment amount if the irregularity
for 60 days and on the entire amount if it is for more than 60 days
(persistent).
2% of the prepaid amount if paid by other than out of the internal cash
accruals of the Firm.
To be borne by the Firm.
a) Any cost overrun to be met by the Firm, for which they will submit
undertaking to the Bank.
b) Dividends cannot be paid without Banks prior permission, in case of
any arrears/ overdues in the loan account/ interest payments.
c) The Company should agree for disclosures under RBI/ CIBIL norms.
d) Satisfactory Bankers Opinion Report on the Company from existing
bank/branch, i.e., Indian Bank, Vizag, to be obtained and held on
record.
TERMS AND CONDITIONS : BANK GUARANTEE
Model
S
No
1
2
BG Parameters
Particulars
Limit
Cash Margin
Security
Purpose
5
6
Period of B G
Commission
500.00 lacs.
10% - The applicant has to deposit a cash
margin of on Non-fund based limits in the
form of Banks Special Term Deposit.
i) Counter Indemnity of the borrower.
ii)Extension of Charge over current assets,
all collaterals available to Working
Capital/TL
limits should cover Bank
Guarantee limit also.
Lifting of stocks from M/s. Volkswagen Group
Sales India P Ltd., .
12 months
As per banks standard rates
:
The guarantee bond should be on the lines of the
55
model circulated vide HO Circular No. Adv/2001-2002/50
dt. 07.11.2001. Any deviation is to be approved by Banks
Law Officer before issuance of Bank Guarantee.
Monitoring
It will be ensured that the conditions stipulated in

guarantee bond are complied with by the Company.
The books of the firm are to be periodically examined
to satisfy that the party is complying with the essential
stipulations of the agreement. In addition, constant
contact will be maintained with the beneficiary/
institution/department in whose favour the guarantee
is issued to ascertain whether there are any
aberrations or any breach of contract at any stage.
Restrictive Clauses
Please also ensure to call for copies of letters of

intent before issuance of Bank Guarantee to make sure
that there are no restrictive clauses.
Inspection
Control & Follow up
Inspecting Officials will be deputed at irregular

intervals to verify the register of works completed, cheques
received and such other books/registers etc., which would
furnish the required information to confirm that the
particulars furnished by the Company in the statements
are correct.
All other control and follow up measures advised
vide Head office Circular No. Adv/2001-2002/50 dt.
07.11.2001 and other circulars issued from time to time
have to be complied with.
Incorporation
The guarantee bond should be issued

incorporating the following paragraph invariably:
`NOT WITHSTANDING ANY THING CONTAINED HEREIN ABOVE, THE LIABILITY OF THE
BANK UNDER THIS GUARANTEE IS RESTRICTED TO RS.___________ (RUPEES
ONLY) AND SHALL BE IN FORCE UPTO DATE. UNLESS A DEMAND OR A CLAIM IS
PREFERRED/ MADE UNDER THIS GUARANTEE IN WRITING WITHIN _________ DAYS
FROM THE DATE OF EXPIRY OF GUARANTEE, THE BANK SHALL STAND DISCHARGED
OF THE LIABILITY UNDER THIS GUARANTEE. THE BANK SHALL STAND DISCHARGED
OF THIS LIABILITY UNDER THIS GUARANTEE AND THE COMPANY/BENEFICIARY SHALL
HAVE NO CLAIM WHAT SO EVER THEREAFTER.
General Covenants:
i) The Bank will have the right to examine at all times, the Companys books of accounts and to
have the Company/projects inspected from time to time by officer(s) of the Bank and/or qualified
Auditors and/or technical experts and/or management consultants of the Bank's choice. Cost of
such inspections shall be borne by the Company.
ii) During the currency of the Bank's facilities, the Company will not without the permission in
writing from bank a) effect any change in the capital structure;
b) formulate any scheme of amalgamation or reconstruction;
c) implement any schemes of expansion or acquire fixed assets;
56
d) invest by way of share capital in or lend or advance funds to or place deposits with any
other concerns except in normal course of business or as advances to employees;
e) enter into borrowing arrangements either secured or unsecured with any other bank or
financial institutions, Company or otherwise;
f) undertake guarantee obligations on behalf of any other Company;
g) declare dividends for any year except out of profits relating to that year after making all
due and necessary provisions and provided further that no default had occurred in any
repayment obligations.
iii) The Company will place with the Bank(and SBI) all its banking business including foreign
exchange, if any, and deposits.
iv) The Company should not make any drastic changes in its management set up without the
Bank/'s permission.
v) The Company will maintain its net working capital position above the levels furnished in its
projections for working capital finance. In the event of any difference of opinion arising as to
what constitute current assets and current liabilities, the Bank's decision will be final and binding
on the Company.
vi) The Company will keep the Bank informed of the happening of any event likely to have
substantial effect on their profit or business, if, for instance, the monthly production/sales are
substantially less than what had been indicated to the Bank, the Company will inform the Bank
accordingly with explanations and the remedial steps proposed to be taken.
vii) The Company will keep the Bank advised of any circumstances adversely affecting the
financial position of their subsidiaries including any action taken by any creditor against the
subsidiaries.
viii) Any other terms and conditions, which are not specifically covered herein but stipulated,
should be strictly complied with.
ix) The Bank will be free to suitably modify the terms and conditions detailed above whichever
considered necessary, this will of course, be done in consultation with the Company.
GENERAL:
The credit facilities granted are subject to the directives issued by Govt.of India, RBI, SBI and
any other regulatory authority from time to time.
All the above facilities have been sanctioned for the purpose of
the Companys normal
business requirements. If the facilities are used for any other purpose or the bank apprehends
that the facilities are likely to be used for such other purposes by you, the bank may immediately
withdraw the facilities and recall the amounts due from you.
A declaration from the directors of the Company to be furnished as under:
"I/WE HEREBY AGREE AS A PRE-CONDITION OF THE LOAN/ADVANCES GIVEN TO
ME/US BY THE BANK THAT IN CASE I/WE COMMIT DEFAULT IN THE REPAYMENT OF
57
THE LOAN/ADVANCES OR IN THE REPAYMENT OF INTEREST THEREON OR ANY OF
THE AGREED INSTALMENT OF THE LOAN ON DUE DATE (S), THE BANK AND/OR THE
RESERVE BANK OF INDIA WILL HAVE AN UNQUALIFIED RIGHT TO DISCLOSE OR
PUBLISH MY/OUR NAME OR PHOTO OR THE NAME OF OUR COMPANY/ FIRM/UNIT AND
ITS DIRECTORS/PARTNERS/PROPRIETORS/ GUARANTORS AS DEFAULTERS IN SUCH
MANNER AND THROUGH SUCH MEDIUM AS THE BANK OR RESERVE BANK OF INDIA IN
THEIR ABSOLUTE DISCRETION MAY THINK FIT."
Finally, consent of the Company for disclosure of information to CIBIL to be furnished on the
lines as under:
I/We, understand that as a pre-condition, relating to grant of the loans/advances/other non-fundbased credit facilities to me/us, the Bank, (State Bank of Hyderabad) requires my/our consent
for the disclosure by the Bank of, information and data relating to me/us, of the credit facility
availed of/to be availed, by me/us, in discharge thereof.
Accordingly, I/We, hereby agree and give consent for the disclosure by the Bank of all such:
a) Information and data relating to me/us;
b) The information or data relating to any credit facility availed of/to be availed, by me/us;
and
c) Default, if any, committed by me/us, in discharge of my/our obligation;
as the Bank may deem appropriate and necessary to disclose and furnish to Credit Information
Bureau (India) Limited and any other agency authorized in this behalf by Reserve Bank of India.
I/We, declare that the information and data furnished by me/us to the Bank are true and correct.
I/We, undertake that:
a) the Credit Information Bureau (India) Limited and any other agency so authorized may
use, process the said information and data disclosed by the Bank in the manner as
deemed fit by them; and
b) the Credit Information Bureau (India) Limited and any other agency so authorized may
furnish for consideration, the processed information and data or products thereof
prepared by them, to banks/financial institutions and other credit grantors or registered
users, as may be specified by the Reserve Bank in this behalf.
From Guarantors
I, understand that as a pre-condition, relating to grant of the loans/advances/other non-fundbased credit facilities to M/s. Jayabheri Automotives Pvt. Limited and furnishing of guarantee in
relation thereto, the Bank (State Bank of Hyderabad), requires my consent for the disclosure by
the Bank of, information and data relating to me, of the credit facility availed of be availed, by
me/us, in discharge thereof.
58
Accordingly, I, hereby agree and give consent for the disclosure by the Bank of all/any such :
a) information and data relating to me/us;
b) the information or data relating to my obligations in any credit facility granted by the
bank and guaranteed by me as a guarantor; and
c) default, if any, committed by me, in discharge of my obligation;
as the Bank may deem appropriate and necessary to disclose and furnish to Credit Information
Bureau (India) Limited and any other agency authorized in this behalf by Reserve Bank of India.
I, declare that the information and data furnished by me to the Bank are true and correct.
I, undertake that:
a) the Credit Information Bureau (India) Limited and any other agency so authorized may
use, process the said information and data disclosed by the Bank in the manner as deemed
fit by them; and
b) the Credit Information Bureau (India) Limited and any other agency so authorized may
furnish for consideration, the processed information and data or products thereof prepared
by them, to banks/financial institutions and other credit grantors or registered users, as may
be specified by the Reserve Bank in this behalf.
Calling up of the loan:
The bank will be at liberty to call up the loan, or such portion thereof as may remain outstanding
on the happening of any of the following or other events considered likely to jeopardize the
bank's interests
a) Any installment of the principal monies being unpaid on the due date for payment
thereof.
b) The Company committing any breach or default in the performance or observance of the
covenants in the mortgage deed executed by them.
c) The Company entering into any arrangements or compromise with its creditors or
committing any act of insolvency.
d) Any interest remaining unpaid and in arrears for a space of three months after the same
shall have become due.
e) Execution or distress being enforced or levied against the whole or any part of the
Company's property.
f) The Company going into liquidation (except for the purpose of amalgamation or
reconstruction approved by the Bank)
g) Any of the directors of the Company being adjudicated insolvent or taking advantage of
any law for the relief of insolvent debtors.
h) A receiver being appointed in respect of the whole or any part of the property of the
Company.
i) The Company ceasing or threatening to cease to carry on business.
59
j)
The occurrences of any circumstance which is prejudicial to or impairs, imperils or

depreciate or is likely to prejudice, impair, imperil or depreciate the security given to the
bank.
k) The occurrence of any event or circumstance which would or is likely to prejudicially or
adversely affect in any manner the capacity of the Company to repay the loan.
l) If default is made in due and effective payment of legal expenses, commitment charges,
cost, charges or any other monies payable by the Company.
ANNEXURE-1
Future Plans & Business potential(over a 3-5 year horizon) including Cross
selling / Retail Marketing based on Co / Groups future plans: (to be quantified).
Item
Corporate Salary Package

P Segment Loans (Nos)
(a) Housing
(b) Auto Loans
(c) Personal Loans
SBI Credit Card (No.)
Point of Sale Terminals
SBI Corporate Card (No.)
SBI Life Business : (Premium )
a) Corporate Business
b) Retail Business
SBI General Insurance (Premium- Rs. In
crores)
SBI Mutual Funds (Gross investment Rs.
crores)
SBI Capital Markets Ltd
Present
Position
Whether Tied
Up?
(Yes / No) *
Business
estimated
60
(a)Project Advisory & Loan Syndication

(b) M & A
(c ) Private Equity
(d)IPO/FPO
(e) Others (if any)
(Potential Ticket size & when expected may be
furnished against each applicable item)
SBI Vishwayatra Foreign Travel Yatra Cards (In
USD)
Vendor/ Dealer Finance
Any Other (Please specify)
* If no, please advise efforts made and outcome thereof
61
ANNEXURE-2
ASSESSMENT OF
DERIVATIVE LIMIT)
CREDIT
EXPOSURE
LIMIT
(FORWARD
CONTRACT
Not Applicable
ANNEXURE-3
EARNINGS & ROCC:
Net Interest Margin:
Facility
Rate of interest
charged % (A)
CC
14.75%
TL-1
15.25%
TL-2
-
MRFTP Rate % (B)
Net Interest Margin %

(C= A-B)
External Rating::
Name of the External Credit Rating Agency
Credit Rating assigned
Date of Rating
Rating valid upto
Risk Weight applicable
Capital Charge:
Facility
1.
2.
3.
4.
5.
6.
7.
8.
9.
FBWC
TL
Corporate Loan
SLC
LC (Docum)
LC (Non-docum)
BG (Perform)
BG (Financial)
Proposed Effective CCF (%)

Limits
Exposure (E)
(D)
Risk
Weight
(%) (F)
250.00
700.00
500.00
CEL
Total
1450.00
* After netting off financial / cash securities (as per Basel norms)
(Rs. in lakhs)
Risk
Capital
Weighted Charge
Exposure (H+G*13%)
(G+D*E*F)
62
Return on Capital Charge (ROCC):

Actuals
Interest NII
Fee
Total
Income
(Q = Income Income
(Last
P
* (R )
(S)
year)
C/A)
(P)
WC Int./discount
TL interest
LC
BG
Forex
Bills
Others
TOTAL
ROCC(%) (Total Income
*100/H)
Estimates
Interest Income NII Fee
Total
(Next Year)
(U = Income Income
(T)
T * (V)
(W)
C/A)
63
ANNEXURE-4
Details of Due Diligence:
Date of Pre-Sanction visit
Place(s) visited
Name(s) of officials, who visited
Shri Pavan Kumar Branch Manager
Whether papers required for KYC obtained Yes
(PAN/Articles/Memo etc)? Yes/No
Advised the branch for compliance
Date of Search Report obtained from ROC
Formalities
regarding
obtention
of
legal Yes
opinion/valuation report completed? (Yes/No)
Whether CIRs obtained from existing Bankers? Yes
(Yes / No)
Other Observations, if any
Data Chart:
1. Nature of facility (ies) applied for:
CC, TL, BG.
03.10.2012
2. Date of receipt of the proposal
03.10.2012
3. Information sought on changes in the revised
business plan
12.10.2012
4. Reply received
5. Discussions held with Companys officials
6. Information recd
7. In Principle Note submitted
17.10.2012
8. Date of receipt of complete information
9. Date of submission to sanctioning authority (for
sanctioning authorities up to the level of GM)
10. Date of submission to CCCC if proposal is to
be
sanctioned by CCCC or higher authorities
Appraisal: done by and date of completion
Assessment: Done by & Date of completion
Additional Assessment: done by and date of
completion
Designation
Credit Analyst
Team Leader/
AGM
DGM/ GM
Date
Initials
64
ANNEXURE -5
GROUP / ASSOCIATE ENTITIES / COMPANIES
(Rs. in crores)
PARAMETERS/
COMPANY
ACTIVITY
M/s. Steel City

Properties
Pvt.
Limited
Warehousing
&
Automobile Dealer
M/s.
Sriram
Textiles
Pvt.
Limited
Trading in Iron &
Steel products
M/s.
Avnash
Automobiles
Pvt. Ltd.
Automobile
Dealer for Bajaj
vehicles
ATR
Ware
housing P Ltd
Warehousing &
Logistics
services
and
Contract Work
from
HCC
Warehouses at
Visakhapatnam,
Kakinada and
Hyderabad
CONSTITUTION Private
Limited Private
Limited Private Limited Private Limited
Company
Company
Company
Company
DIRECTORS
/ S/Sri/Smt.
S/Sri/Smt.
S/Sri/Smt.
Sri A.T.Rayudu,
PARTNERS
A.T.Rayudu
B.C.Agarwal
Avnash
Managing
B.C.Agarwal
S.N.Agarwal
Anumolu
Director
Avnash Anumolu
Anita Agarwal
Harshita
Anumolu
Sri
Avnash
Aumolu,
Director; and
BANKERS / Fis
wef
OPINION
BANKS / FIs
SBH,
Dwarakanagar
Branch, Vizag
2010
OF NA(Banking with
us)
FB LIMITS
NFB LIMITS
TOTAL LIMITS
ASSET
CLASSIFICATIO
N
CRA RATING
20.90
-20.90
Standard
SB-7 based
PBS
as
31.03.2012
Financials as on
31.03.2011
NET SALES / 14.32
INCOME
NET PROFIT
LOSS
/ -0.13
SBH,
Dwarakanagar
Branch, Vizag
2010
NA(Banking with
us)
10.00
5.00
15.00
Standard
on SB-7 based
on ABS
as
31.03.2011
31.03.2011
120.65
0.17
Smt.
Ammaji
Anumolu,
Director.
MSME Branch, MSME Branch,
Vizag
Vizag
2011
NA(Banking
with us)
2010
7.00
-7.00
Standard
14.00
-14.00
Standard
on SB-5 based on
on PBS
as
on
31.03.2013
31.03.2011
The
unit
commenced its
operations
during 2012-13
SB 9 based on
ABS
31.03.2011
31.03.2011
17.56/0.49
0.49
65
TNW
NET BLOCK
TOL / TNW
CR
7.09
13.98
2.01
0.84
14.46
0.94
0.68
1.74
12.59
43.41
8.01
1.11
ATR Warehousing P Ltd. M B A (Rs. in lacs)

Outstanding as Purpose
per ABS as on
31.03.2011
Name of the Bank
Term Loan
Limit
Indian Overseas Bank

--do---do---do-Indusind Bank
State Bank of India
110.00
350.00
463.15
900.00
3175.00
500.00
10.45
22.99
322.41
497.23
2537.67
313.85
--do-APSFC
Axis Bank
Shriram
Transport
Finance Co Ltd.
SBH
Total
300.00
1200.00
1200.00
192.59
1182.30
1117.73
172.48
400.00
353.00 Rent Plus Loan

6722.70
Rent Discounting
--do---do---do---do-Construction Equipment
Loan(for
purchase
of
Dumpers)
--do-Term Loan
Overdraft
Vehicle Loans
Details about Associate concerns (Not Banking with us)

(Rs. in crores)
ATR Infracons
PARAMETERS/COMP
ANY
M/s. Usha Tubes & ATR Cars P Ltd

Pipes Pvt. Limited
ACTIVITY
Warehousing
&
Automobile Dealer
Private
Limited
Company
A T Rayudu
Automobile
dealer Automobile
Dealer
for Volkswagen
for Bajaj vehicles
Private
Limited
Company
A T Rayudu
A T Rayudu
SBI, Main Branch,

Vizag
APSFC, Rajahmundry
AXIS BANK
Ram
nagar Br, Vizag
IIFL
Dwarakanagar,
Vizag
15.58
-15.58
Standard
Andhra
Bank, AXIS Bank, Ram
Gunadala,
Vijaya nagar Br, Vizag
wada
Indian
Bank,
Gajuwaka, Vizag
APSFC Vizag
CONSTITUTION
DIRECTORS/
PARTNERS
BANKERS / Fis
FB LIMITS
NFB LIMITS
TOTAL LIMITS
ASSET
24.70
20.50
45.20
Standard
0.50
-0.50
Standard
66
CLASSIFICATION
M/s. Visakha Infra Projects P Ltd. , and M/s. Pragathi Fertilizers Limited have not availed any
credit facilities with any bank as on date.
67
ANNEXURE-6
CONDUCT OF VARIOUS FACILITIES*
(Last 12 months period to be covered for all facilities)
(+*Applicable for Accounts with Group turnover of less than Rs 1000 crores)
(a) Cash Credit New sanction Not applicable
Particulars
Last Financial year
Current Financial year up to

previous month
Credit summation*
Debit summation*
Maximum outstanding
Minimum outstanding
Average outstanding
No. of times and days the account
was irregular
Reasons for the
irregularity(ies)
Peak irregularity in the
account, if any
No of times
No of times
No of days
No. of days taken to

adjust peak irregularity
(* To be provided for accounts with exposure less than Rs. 100 crores)
(a i): Comments:
(b) Bills Facility : Not applicable
No of days
68
a) Letter of Credit : New sanction - Not applicable
d). Bank Guarantees : New sanction Not applicable
Movement Chart:
Nature of Proposal
Sanctioned under Discretionary Powers of
Proposal received from Branch on
Further information received from Promoter on
Appraisal submitted to the CM (CR) on
Appraisal submitted to the AGM (CR) on
Appraisal submitted to the DGM (CR) on
Appraisal submitted to the GM (SAMG) &GE(Corp. Bkg)
Appraisal submitted to the HOCC I on
Name and Signature (with S.S. No.) of the second Dealing
official (s) involved in the transaction (Manager of Division / Branch Head)
Zone / Region
Branch
Company
New - WC/TL/BG
ZOCC V
69
ANNEXURE - 7
Take over norms vis--vis compliance :
Norms
Compliances
The advance to be taken over should be CRA rating has been carried out and the company
rated SB 6 (old rating SBH-3) or above
has been rated SB 9 based on ABS 2012.
As per P&C/2011 - 12/180 dated dt. 19.12.2011,
it is a deviation and the GM (Operations) is
competent authority to approve this deviation.
Hence, we requested the GM (RNW SZ III) to
approve the deviation. Approved on 17.10.2012.
The unit should score the minimum The companys Financials score at 23.37 is less
scores as prescribed, under the various than the minimum prescribed financials score of
risk segments, in the revised model for 25 marks. Deviation ZOCC(V) is the deviation
Credit Risk Assessment.
approving authority.
The account should have been a Standard
standard asset in the books of the other (Branch will be advised to obtain a certificate to
bank/Fl during the preceding 3 years. this effect from Indian Bank before take over
However, if a unit is not having a track proposal is submitted)
record for 3 years, as it has been in
existence for a shorter duration,
takeover can be considered based on
the track record for the available period,
which should normally be for at least
one year. Where a minimum history of
at least 1 year is not available and
where for specific reasons it is still
considered appropriate to take over, the
authority
structure
provided
for
permitting deviations will be used.
The unit should have earned net profits The Company has incurred loss in initial years
(post tax) in each of the immediately (2009-10 & 2010-11) of operation due to
preceding 3 years. However, if the unit depreciation and interest on loan account resulting
has been in existence for a lesser in loss to the company.
period, it should have earned net profit
(post tax) in the preceding year of Depreciation :
operation.
Year
Gross
Dep
Net
Block
Block
2010
2011
2012
829.54
984.15
1791.02
21.74
83.65
104.28
807.80
878.76
1583.38
The net losses were eroding the Networth of the

company. However, the company has shown
cash accruals of Rs. 51.95 lacs during 2012 and
projected a net profit of Rs. 262.49 lacs for the FY
2013.
Due to this the TNW has been
improve at Rs. 881.06 lacs.
projected to
70
Also the total liabilities were showing a stabilising
trend from Rs. 1265.22 lacs in 2010 to Rs.
5484.14 lacs in 2012 and to Rs. 5911.01 lacs in
2013.
Due to these factors the TOL/TNW is expected to
improve.
The Term Loan proposed to be takenover should not have been rephased,
generally, by the existing FI / Bank after
commencement
of
commercial
production. However, if a rephasement
was necessitated due to external factors
and viability of the unit is not in doubt,
such proposals may also be considered
for sanction on a case to case basis.
Norms
When only TLs are taken over, the
remaining
period
of
scheduled
repayment of the term loan should be at
least 2 years. For takeover of existing
TLs, while the original time frame for
repayment will be generally adhered to,
flexibility may be allowed in the quantum
of periodical repayments. If sanction of
fresh term loan is proposed along with
the takeover, the schedule of repayment
for the existing term loans, if necessary,
may be permitted to extend normally up
to 10 years.
Take over of units from SBI & Associate
Banks is not permitted. Term loans from
State Financial Corporations may be
taken over selectively.
Take over of units not complying with
any one or more of the norms
prescribed and takeover of rescheduled
loans to be approved / sanctioned by
respective sanctioning authority not
below the level of ZOCC/ROCC/ HOCC
III.
As per P&C/2011 - 12/180 dated dt. 19.12.2011,

it is a deviation and the GM (Operations) is
competent authority to approve this deviation.
Hence, we recommended to GM (RNW SZ III) to
approve the deviation. Approved on 18.10.2012.
Not applicable
Compliances
Not applicable
Complied with(Take over from Indian Bank is

proposed)
Not applicable.
71

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1

ZONAL OFFICE CREDIT CELL ZONAL OFFICE VISAKHAPATNAM

Branch : Governorpet, Vijayawada.

Account : M/s. ATR Cars Private Limited

The deviations in take over norms approved by G M (RNW SZ III) in respect of

Proposal: For sanction/ approval/ confirmation:

Nellore for a period of one year.

b) Waiver of TEV study.

a) non achieving 3 years continuous profits and

Credit Limits (Existing and Proposed):

c ii) Credit Limits (company & Group):

d Banking Arrangement and Sharing Pattern:

Last two years

Comments on Performance & Financial Indicators (Comments only on

Opening TNW (excluding SAM$)

Add. (a) Increase in equity

Share Application Money (SAM) $

(b) Increase in share premium

$SAM be converted to equity by next Balance Sheet date

1.33 as on 31.03.2012 to 1.32 as on 31.03.2013 and further projected to derease to 1.08 as

Movement of long term funds:

Long Term Sources

Long Term Uses

Comments: The movement of Long Term funds is satisfactory.

d) Synopsis of Balance Sheet:

Prev year Last year

ACTIVITY-WISE CASH FLOW ANALYSIS:

Actuals Actuals Estimated

Consolidated Data* :(NOT APPLICABLE as ATR Cars Pvt. Ltd is not a

Previous Year (2011)

ii) Market related:

(* for listed companies)

Net Sales (value)

(Past three years)

Opening TNW ( excluding SAM $ )

TOTAL CURRENT ASSETS (A)

Comments on any change in capital structure.

h) Inter-firm Comparison: - Not available i) Finance related:

($ wherever available either from our own data or external source)

(* for listed companies)

The Credit rating summary is placed as Annexure-8.

i) Conduct of Account: N A New connection

Warning Signal /Major

Covenant details/ time

Penal action recommended, if any:

2. Business and Industry Risks

Estimates ( last year)

Interest & Other Charges as per latest

Estimated (Prev Year)

Actual (Prev Year)

Other Banks/FIs Pricing: --NA-Name of the Bank

Estimated (Curr year)

Whether names of promoters, directors, company, group concerns figure in

Willful defaulters list dated:

ECGC Caution List dated:

a) Prudential norms - Borrower

Indicative Min/Max level

7.50% of Banks capital fund

Rs. 14.50 crores

Exposure cap as per

d.ii) Unsecured exposure, if any: Nil

In house of the company.