ES-2

(Branch or SARAL or RO or FGMO or CO)

Executive Summary Format for Credit proposal of above Rs.10Lacs and less than Rs.500Lacs
Reference:

Date:
MEMORANDUM TO (SANCTIONING AUTHORITY)
A/C WITH:________BRANCH_______RO______ FGMO

A.1
A.2

Name of the account

Address

: M/s Shourya Virat Trading Company

: C/o Shri Sanjeev Kumar, IOC Road, Sipara, PO-

A.3

: NA as Proprietorship

G.

CIN
Registration no., if applicable
PAN
Group, if any
Date of incorporation
Constitution
Dealing with bank since
Credit facility since
If the a/c is new, name of present
bankers, if any
Line of activity

H.
I.

BSR code (Sector)

Classification

: Trading of Raw Material and Finished Goods of PVC

Pipes and proposed to manufacture the PVC Pipes
: (Sector as per BSR code)
: MSME (Small)

J.
K.
L.

(If MSME, original investment in

P&M/equipment)
Category, if applicable
Banking arrangement
CGTMSE Coverage

61.00 Lakhs
:
: OBC
: Sole
: (Yes)

B.
C.
D.
E.1
E.2
F.

Delwahan, PS-Beur ,District-Patna,PIN-800020

:
: NA
:
: Proprietorship
: New Account
New Account hence no applicable
: Current Account with IDBI Bank

1. Purpose of Note (Synopsis of Final Recommendation)

Nature of
Limit

Existing
Limit.

Prop.
Limit
Applicable

Our Bank
CC
Term Loan
Total
Other
Banks/FIs

0.00
0.00
0.00
0.00

Interest/Commission
[With reference to BR]
Existing /
Prop.
Effective
/Effective
rate
rate

(Rs. in _____)
Margin
Conces
sion

46.05
49.87
95.92
0.00

Total
0.00
0.00
Grand
0.00
0.00
Total
(The referred interest rate as well as approval of concession shall be enumerated.)

Exist

Prop

0.00
0.00
0.00
0.00

15.35
16.62
31.97
0.00

0.00
0.00

0.00
0.00

Delegated authority: The proposal falls within the delegated authority of Branch Head on account of the
amount of Limit.
Date of sanction / Last review

: -NA-

Name of the concern

Name of the Branch/RO

Sanctioning authority (previous sanction)

: -NADue date of review
: -NAAsset classification
: -NAStatus of account
: New Account hence not applicable
Credit rating:
Rating Date ABS as of previous year
ABS as of current year
Date:
Date:
Internal Rating
Not applicable
2.

Sr.
No.

1.

Names of Proprietor / Partners / Directors & their means:

Name

Abhishek Kumar
Total

Designation

PAN

(Rs. in ______)

Means
Previou
s
Date:
NA

Proprietor

DIN, if
applicable

Latest
Date:
NA

(PAN & DIN, if applicable should be invariably mentioned / Reason for variation in means to be
commented upon)
3.

4.1

Background
(Including
latest
development in business & present
request in brief.)
3.1 Firm/Company/Concern

: M/s Shourya Virat Trading Company is incorporated in

3.2 Promoters / Directors

Proprietor / Partners

: Mr. Abhishek Kumar is proprietor of M/s Shourya Virat

Capital
Structure,
applicable

Authorised Capital
Issued & Subscribed Capital
Paid Up Capital
Book Value
Market Value (Listed companies)

December 2015 and started the trading of raw material of pvc

pipes and has plan to manufacture of PVC pipes and also
trading of finished goods.

Trading Company and he is Post Graduate in Marketing .He

is of 30 years of age and associated with PVC pipes
business since last 15 years and has the ambitious future
plan related to this industry

wherever

:
:
:
:
:

NA as Proprietorship
NA as Proprietorship
NA as Proprietorship
NA as Proprietorship
Not Applicable

Concern
Concern
Concern
Concern

4.2 Shareholding pattern : Not Applicable as Proprietorship Concern

In case of company indicate following details:
Share Holder
No. of
Face Value
Holding %
Shares
Current
Previous
Date:
Date:

Page 2 of 11

Name of the concern

Name of the Branch/RO

TOTAL
In case of partnership firms indicate capital contributed by each partner separately:
Name of the partner
Current/Date:
Previous/Date:
TOTAL
4.3 Any significant change in share holding pattern : NA
5.

Comments on the following:

5.1 Credit Report/s
5.2 Search report/s
5.3 CIBIL Report/s
(CIBIL report of promoters/guarantors should
also be commented upon along with
individual score)

6.1

Comment on due diligence of borrower

: (Along with Date of Report)

6.2

Whether the name of the concern /

directors/group concerns figure in RBI
defaulters / caution list / caution list of
exporters / wilful defaulters /ECGC SAL List.
If yes, furnish details (Date of the list shall
be mentioned)

: Not figuring in the RBI defaulters /

caution list / caution list of exporters /
wilful defaulters /ECGC SAL List

6.3

Whether director / partner / proprietor is a

director in our / other bank or is related to
them. If yes i)
Name of such Director with name of
the Bank
ii)
Type of Relation

: No

6.4

Any litigation in force against the firm /

company or against the partners / director.
If so, mention details and present position

: No

7.

Whether account is taken / to be taken

over. If so norms for takeover are fulfilled

: Not Applicable

8.1

Operational experience of our bank with

regard to sister / allied concerns
Name of
Branch
Conduct
Working
Term
the
of
Capital
Loan
Concern
Account

of

other

Banks

on

sister

:
:

: New Account
Contingent

Investments

8.2

Comments
concerns

8.3

Brief Financials of Sister Concerns, if any

: Not Applicable

9.

Comments on foreign currency exposure

and un-hedged exposure, if any

: Nil

MOR

: Not Applicable

10.1 Nature & value of prime security (Immovable assets):

Nature / Description
Value
Dt. & Value along
of primary Security
Accepted by
with name of
Branch
Valuers
Page 3 of 11

Present
irregularity, if
any

Insurance

[Rs. in ____]
CERSAI
Remarks
Search with
date

Name of the concern

Name of the Branch/RO

Raw Materials
Finished Goods

and

Mkt Value:
Distress Value:
Guideline Value:
Name of Valuer:

Sundry Debtors(Less
than 90 Days)

Amount:
Date
of
Expiry:

Plant and Machinery

TOTAL
(Whether insurance is adequate should be comment upon. Details of valuation of plant & machinery, if
applicable shall also be provided. Comments on latest & previous valuation, wherever available should
be mentioned)
10.2 Nature & value of collateral security:
(Rs. In ____)
Nature / Description
Value
Dt. & Value along
Insurance
CERSAI
Remarks
of collateral
Accepted by
with name of
Search with
Security
Branch
Valuers
date
Mkt Value:
Amount:
Distress Value:
Date
of
Expiry:
Guideline Value:
Name of Valuer:
Total
Our Share
Collateral coverage
(In %)
(Whether insurance is adequate should be comment upon. Comments on latest & previous valuation,
wherever available should be mentioned)
Comments on Due diligence of property: (Primary/Collateral)
Comments on Title Search Report (Date of report/including specific comments on enforceability of
mortgage):
10.3

Personal guarantee / corporate guarantee:

Name of the
PAN
Latest Means
Guarantor
(Credit Report date _____)
1
Abhishek Kumar
2
Sanjeet Prakash
Total
(Reason for variation in means to be commented upon)
11

Financial indicators of borrower

S.
No
.

Year ended /
ending

a.

Paid-Up Capital

b.

Reserves &
Surplus

c.

Intangible assets

: -

(Rs. In ____)
Means as per last sanction
(Credit report date ____)

New Account hence not Applicable (Rs. in ____)

Mar.2022 Mar.2023

Mar.2016

Mar.2017

Mar.2018

Mar.2019

Mar.2020

Mar.2021

(Est.)
16.00

(Proj.)
18.76

(Proj.)
31.02

(Proj.)
36.19

(Proj.)
44.88

(Proj.)
57.15

(Proj.)
73.09

(Proj.)
92.86

3.76

14.27

7.37

11.11

14.93

18.87

22.99

26.78

Page 4 of 11

Name of the concern

Name of the Branch/RO

d.

Tangible Net
Worth (a+b-c)

19.76

33.02

38.39

47.30

59.81

76.02

96.08

119.64

e.

Long Term
Liabilities

42.34

35.28

28.22

21.16

14.10

7.04

5.51

6.51

e(i)

(w/w unsecured
loan i.e. Quasi
Equity)

15.97

22.97

18.00

11.16

0.67

0.00

0.00

0.00

f.

Capital
Employed (d+e)

35.73

55.99

56.39

58.46

60.48

76.02

96.08

119.64

g.

Net Block

0.00

56.95

48.41

41.15

34.97

29.73

25.27

21.48

h.

Investments

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

i.

Non Current
Assets

67.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

j.

Net Working
Capital (f-g-h-i)
or (k-l)

9.79

32.32

34.00

36.05

36.94

50.41

73.10

101.12

k.

Current Assets

64.90

91.38

96.90

103.34

108.76

126.91

155.45

185.36

l.

Current
Liabilities

55.11

59.06

62.90

67.29

71.82

76.50

82.35

84.23

m.

Current Ratio
(k/l)

1.18

1.55

1.54

1.54

1.51

1.66

1.89

2.20

n.

DER (TL/TNW)
(e/d)

2.14

1.07

0.74

0.45

0.24

0.09

0.06

0.05

o.

TOL/TNW Ratio
((e+l)/d)

2.81

1.75

1.68

1.58

1.49

1.14

0.95

0.78

p.

TOL/TNW along
with Contingent
Liabilities

2.81

1.75

1.68

1.58

1.49

1.14

0.95

0.78

q.

Net Sales

106.00

200.00

220.00

242.00

266.20

292.82

322.10

354.31

r.

Cost of Sales

100.70

171.75

194.69

212.15

231.68

253.45

277.64

305.11

s.

Operating
Profit/EBDITA

5.30

36.30

30.86

33.81

37.06

40.62

44.53

48.83

t.

Other Income

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

u.

Interest/Finance
Charges

1.54

11.98

13.11

12.66

12.22

11.78

11.34

10.90

v.

Depreciation

0.00

10.05

8.54

7.26

6.17

5.25

4.46

4.46

w.

Tax

0.00

0.00

1.84

2.78

3.73

4.72

5.75

6.69

Page 5 of 11

Name of the concern

Name of the Branch/RO

x.

Net Profit after

Tax (s+t-u-v-w)

3.76

14.27

7.37

11.11

14.93

18.87

22.99

26.78

y.

Cash Accruals
(v+x)

3.76

24.32

15.91

18.37

21.10

24.12

27.45

31.24

* As per previous sanction, wherever applicable.

11.1
11.2
11.3
12

Comments on Financial Indicators

Audit Notes in Balance Sheet if any, to be
specified
Comments on Restructuring, if any

:
: NA AS NEW CONCERN

Evaluation of the following:

Management Risk

: NA
Proprietor is associated in this business
since last 15 years, hence, he understand
all the business i.e sourcing of raw
materials and marketing of the products.

Industry Risk

PVC pipes are used for a variety of purposes

e.g. water supply schemes, spray irrigation,
deep tube well schemes and land drainage
schemes. PVC slotted and corrugated pipes
are ideal systems for drainages of water from
land where water logging is inevitable. It is
widely used by various utility services now-adays too. The major consumer of PVC pipes
are the Public Health Engineering Department
(PHED) and Irrigation Departments. Besides
these two, it is used by the Municipal
Corporations, Tea estates as well as in N.E.
Region. The usage of PVC pipes also
depends upon the size of these pipes too. It is
manufactured in different sizes having
innumerable usage value.
The World Bank has recently given top priority
in rural water supply in developing and
underdeveloped countries. India has also
received large amounts from World Bank aid
for Rural Water Supply Schemes. However,
due to the acute shortage of appliances
including pipes this money could not be
utilized to a large extent in our country. Thus
PVC/HDPE pipe manufacturing industry has
received higher priority. The requirement of
PVC pipes in Bihar and Jharkhand Region is
around 10,000 MT out of which the
requirement in Bihar is more than 50%.

Business risk

Bihar and Jharkhand has huge potential for

the market for PVC pipes and demand has
accelerated in the recent years due to
govt. Spending on the drinking water
project. In Bihar , Govt of Bihar has
initiated the drinking water project in
mission mode hence demand for the
products likely to be very good. However,
Concern has to develop the nearby market
of Nepal and Bangladesh in for long run.
Page 6 of 11

Name of the concern

Name of the Branch/RO

13.
13.1

13.2

Conduct of the account

Regularity in submission of
Stock/Book Debt Statement
QPR/Half Yearly Statement
Financial Statements
CMA Data
Name of the Statement / Return

13.3

Stock Statement / BD
QPR/Half Yearly Statement
Comments on operations / overdues
(New Account hence not applicable)

13.4
13.5
13.6

Comments on statutory dues

Comments on invocation of BG/Devolvement
of LC, wherever applicable
Any irregular feature observed in the
monitoring report, wherever applicable

: New Account hence not applicable

(If applicable Yes/No)
: Not applicable
Not Applicable
: New Account hence not applicable
: New account hence not applicable
:
No. of Statements /
Last Stat. /
Return recd. During
Return recd.
the year
: (Not applicable)
: Not applicable
(Date)
:
Particulars
Previous Current
Year
Year
Credit Turnover
Sales
% of credit
turnover to sales
Maximum Debit
Balance
Average Debit
Balance
No. of days in
debit
Inward cheque
return (No.)
Outward Cheque
return (No.)
No. of occasions
excesses/ TOD
allowed
Maximum
Excesses/ TOD
allowed
Remarks:
: Not Applicable as new concern
: Not applicable as no credit history
: (Including Date of MMR)

13.7
Value of account (During Financial Year):
i) Advances:
Previous year/Date:
- Interest Income
- Fee Based Income
ii) Third party products:
iii)
Retail / Consumer / Finance[to
No. of Accounts
employees associates]
iv) Deposits:
- Own
- Third Party

Amount

14.
14.1

Compliance to terms of sanction

Completion of Mortgage formalities & vetting
of mortgage by advocate along with date

14.2

Registration of Charges with RoC

Page 7 of 11

(Rs. in _____)
Current year/Date:

Amount
Tenure

:
: (Yes/No
Date of completion of mortgage:
Date of legal vetting of mortgage: )
: (Yes/No
Search ID

Name of the concern

Name of the Branch/RO

Date:______)
14.3

14.4
14.5

14.6
14.7
14.8.1
14.8.2
14.9
14.10
(In case

Whether documents valid and in force

Compliances to CPAO observations along with

date of CPA
Whether all other terms and conditions
complied along with observations/remarks of
sanctioning authority, if any, as per previous
sanction / modification proposals
Whether Consortium meetings held at
prescribed periodic intervals
Compliance of consortium/multiple banking
guidelines of the bank
Compliance on Loan Policy
Compliance of RBI guidelines
Date of last inspection of factory / stock /
assets, etc
Date of Technical Inspection, wherever
applicable
of non-compliance, suitable justification shall be

15.
Audit
observations
(Pending for compliance)
15.1RBI Inspection
15.2 RBIA (Internal Audit)
15.3Concurrent
15.4Statutory
15.5 Stock Audit

Date

: (Yes/No
Date of documents:
Date of DBC:
Date
of
legal
documents:______)
: (Yes/No
Date:______)
(Yes/No)

Vetting

of

: (Yes/No)
Date of last Consortium meeting
Gist of minutes:
: (Yes/No)
: (Yes/No)
(Yes/No)
: (Date:
Comments :)
: (Date:
Gist of inspection :)
provided)

Observations

Branch Replies
including COR

Present status

Exposure details from our bank including investment, if any.:

OUR BANK
Limits
Limits
O/s as on
Value of Prime
Nature of Facility
Existing
Recomm
Securities [Our
ended
share]

(Rs. in _____)

16.1

Irregularities,
if any

TOTAL
Investment
(Date of Stock-Book debt statement should be mentioned in prime securities)
16.2 Exposure details from banking system/FIs (Incl. Our Bank):
Existing Limits : New Concern hence not applicable
Fund Based WC
Non Fund Based
Term Loan
Sl.
No.

Name of
the Bank

% Share

Amt.

% Share

TOTAL
Proposed Limits
Page 8 of 11

Amt.

%
Share

Amt.

(Rs. In _____)
Comments on
Conduct of the
Account and
position of last
sanction / review

Name of the concern

Name of the Branch/RO

Sl.
No.
1

Name of
the Bank
Union Bank
of
India,
Main Branch
TOTAL

16.3

Fund Based WC
% Share
Amt.
100
46.05

Non Fund Based

% Share
Amt.
0%
0.00

Term Loan
% Share
Amt.
100.00%
49.87

46.05

49.87

17.

Other liabilities of directors / partners [In

their individual capacity]
Comments on assessment of limits

17.1

Projected Level of Sales

17.2

Inventory / Receivable holding period

: Nil
: Proposed limit will be on sole banking
basis
: Considering the experience of the
proprietor in this field and sales achieved
in one month, it is likely that projected
sales will be achieved.

: (Applicable for assessment under FBF

method)
[Rs. in _____]
Mar.____
Mar.___
Mar.____
Mar._____
(Aud.)
(Aud.)
(Aud. / Est.)
(Proj.)

Particulars
Finished Goods
(Months Cost of Sales)
Domestic Receivables
(Months domestic Sales)
Sundry Creditors
(Months Purchases)

44
3.67
15
1.70
2
0.17

17.3

: (FBF/Cash Budget/turnover method)

Working Capital Assessment

54
3.59
32
1.94
5
0.37

57
3.47
35
1.89
5
0.33

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR W/C

Sl
No.

Particulars

Prov

Estimated

Proj

2016

2017

2018

65

91

97

11

58

83

86

16

23

24

( 45 in Form III )

34

36

37

Item 3 minus item 4

42

60

62

Item 3 minus item 5

24

47

49

Total Current Assets ( 9 in form IV)

Other Current Liabilities (other than

Bank borrowing & AMTL - 14 of Form IV)

3
4

Working Capital Gap (WCG) (1-2)

Min. stipulated net Working Capital ie., 25% of
WCG/25% of total Current Assets as the case
may be depending upon the method of lending
being applied
Actual /projected net working capital

Page 9 of 11

60
3.35
38
1.87
6
0.36

Name of the concern

Name of the Branch/RO

8
17.4

Maximum Bank Finance ( Item 6 or 7

Term Loan

47

49

Particulars
Machinery
Miscellaneous fixed assets
Preliminary and other pre op. expenses
Total
75% of Total is to be financed
Balance will be own contribution

Amount(In Lakhs)
61.00
3.30
2.20
66.50
49.87

17.5 Non-Fund Based Limits

: Not required
17.5.1Nature: (Performance/Financial BG ) (Inland/Import LC)(Domestic/Foreign BG)
17.5.2Amount:
17.5.3Period/Usance: (Period of BG/Usance of LC)
17.5.4Commission:
17.5.5Margin: (By way of Cash/FDR)
17.5.6Assessment: (Including Name of major suppliers/LG beneficiaries/LC beneficiaries
(Buyers))
17.6

Any other matter including Forex

related
concessions
along
with
justification for concession, if any

: Not Applicable

18

INTERNAL CREDIT RATING

:
Marks Obtained
Previous Year
Current Year
ABS as of
ABS as of

Parameters

Borrower Rating
Facility Rating
Risk Mitigators
Business aspects
Total Marks with Grade
Rating Rationale:
(In case of down-gradation of credit rating, justification for the same shall be provided. Comments on
external rating, wherever applicable)
19.
Recommendations
:
We recommend for review/renewal/enhancement/fresh credit facilities as mentioned below on stated
terms and conditions:
(Rs. In _____)
Amount
Int./
Nature of Limit
Margin
Primary Security
Comm.
Existing
Proposed
CC
0.00
46.05
25%
Raw materlals, Finished
Goods
and
Sundary
Debtors
Term Loan
0.00
49.87
25%
Plant and Machinary
TOTAL
95.92
(Present Base Rate @ ________ w.e.f. ______ vide IC No._______ dt._________)
19.1 Collateral Security: 2.58 Kattha of land (3512 Sqft) in the name of Sanjeet Prakash at
Sorampur,PS-Janipur,Patna.
19.2 Personal/Corporate Guarantee: 1. Avinash Kumar
2.Sanjeet Prakash
19.3 Processing charges/Upfront Fees:
19.4 Upfront Contribution (In case of Term Loan)
19.5 Repayment Schedule (In case of Term Loan)
19.6 Other Matters:

Page 10 of 11

Name of the concern

Name of the Branch/RO

20. Terms and conditions:

Annexure-I: Standard terms and conditions
Annexure-II: Undertakings to be obtained from the borrower
Annexure-III: Standard terms for advance under Consortium/Multiple Banking Arrangement
Annexure-IV: Sector Specific additional terms and conditions
Annexure-V: MIS template (As per Instruction Circular 9989 dt.01.07.2014)
Annexure-VI: Flow Chart (As per Instruction Circular 34-2015 dt.01.04.2015)
(In annexure-I/II/III/IV, standard conditions to be appropriately selected during the sanction process
based on nature of advance & constitution of the borrower as per Instruction Circular 9287
dt.16.05.2012. Further, standard terms and conditions should not be repeated in Point No.20 of the
Executive Summary and only reference of the annexure to be made therein.)

Page 11 of 11