Professional Documents
Culture Documents
1
Exposure:
As per Ceilings as per *Constitution wise ceiling as per **Our Bank's exposure
Projected B/S RBI norms bank policy Existing Proposed
31.03.2010
To the unit 83457 12.18x6=73.08 --- 21.50
To the Group 222554 NA
* Ceiling as applicable to Individuals, Proprietorship / HUF Trusts / Co-operative Societies / Association persons / Pvt.
Ltd. Companies/ Public Ltd. Companies etc.
** Term loans out standings + 100% of fund based working capital limits or out standings whichever is higher + 50% of
non fund based limits or outstanding which ever is higher (with effect from 01.04.2003 100% of non fund based limits or
out standings which ever is higher)
11. Credit facilities enjoyed by sister/Associate concerns with us and others: NIL
2
16. Verification of Caution list, defaulters list:
17 A. PERFORMANCE OF THE UNIT FOR THE LAST 3 YEARS: (for existing units only)
B. RATIO ANALYSIS: New Unit – Projected Balance sheet and ratio analysis encloed
Comments on Financial Position and Performance : ALL KEY RATIOS ARE SATISFACTORY as per
Projected Balance sheet .
18. Particulars of operations in OCC / KCC / SOD / PC Limits : New Account msod
3
• KVIC Hyderabad vide their Lr.No.DD/KNL/APKVIB/ PMEGP/MMS/Consent/ 2009-
10/SO/KVIC/PMEGP/ Kurnool/927/2009-10 dt.17.10.2009 informed that The Dist.
Task Force Committee (PMEGP) recommended the project for consideration of bank
loan
• The project cost is justifiable for the market conditions for the economic viability and
financial feasibility.
• Borrower offered House site Plot No. 6 & 7, R.S.No.380/A1, 380/A3, at Kallur at
Bethamcherla ( 288.88 Square yards each ) belongs to him worth Rs.28.80 Lakhs as
Collateral security
• The raw material and skilled labor are available locally
• Finished products are having good market in AP and Karnataka States.
• Cost of Machinery reasonably quoted by the suppliers as per prevailing market rates
• Selling price projected by the borrower is acceptable as per prevailing market rates
Branch Recommended for sanction of Composite Term Loan of Rs.21.10 lakhs ( Consisting of Term
Loan Rs.17.00 Lakhs and Working capital limit of Rs.4.50 lakhs )
xxxxx xxxxxx
Appraising Officer Branch Manager
4
10.02.2010
We confirm that the proposal conforms to the loan policy. Deviations are mentioned as above.
Collateral Security : :
Name of the owner Details of Security Including Value Date of valuation
the extent & Name of the ( In Lakhs )
Owner
V.Ganeswara Gupta House site Plot No.7, 28.80 13.02.2010
R.S.No.380/A1, 380/A3, at
Kallur 288.88 Sq.yards
House site Plot No.6,
R.S.No.380/A1, 380/A3, at
5
Kallur 288.88 Sq.Yards
The borrower is expecting Margin Money / Subsidy of Rs.6.00 Lakhs from KVIC to the project as per
KVIB letter dt.17.10.2009. Bank’s exposure net of subsidy will be Rs.15.10 Lakhs only and the same is
also covered by 190% collateral security.
Apart from that, Factory Land worth Rs.10.00 Lakhs (RF 216 dt.13.02.2010) is also available as
Primary security.
PRE-DISBURSEMENT CONDITIONS:
ENABLING CONDITIONS:
10. Bank reserved it’s right to alter/cancel and/or modify the credit
limits/loans sanctioned and/or terms and conditions stipulated without notice and without
assigning any reason thereof.
11. Our bank reserved the right to rearrange the repayment schedule
and to call upon the company to accelerate the payments, if the company’s financial position
so warrants as per the opinion of the bank.
12. The rate of interest and margins stipulated are subject to changes
from time to time at the sole discretion of the bank/as per the guidelines of Reserve Bank of
India/Government of Indian/IBA etc with out any further notice to the borrower.
13. Branch to obtain letter of undertaking from the borrowing concern
as well as cooblignat/guarantor to the effect that “no consideration by way of commission
6
Brokerage, fee or any other form would be paid by the borrower or received by the Co-
obligant /guarantor directly or indirectly for standing as a co-obligant /guarantor
14. Party should produce original invoice of machinery to be purchased.
15. Branch to obtain engineers valuation report for
Machinery purchased along with building valuation(After completion)
INSURANCE:
16. Primary securities are to be insured for full value with bank clause.
OTHER CHARGES:
17. Processing charges/Upfront charges to be collected as applicable.
SECURITY C0NDITIONS:
18. Valuation of properties offered as Collateral securities to be carried
out as per guidelines in H.O. Cir.No.66, Ref 26/14 dt.08.06.2009. Collateral securities are to
be revalued once in two years as per guidelines.
19. Inspection of properties offered as collateral securities to be done
before disbursal and certificate to be kept along with documents as per H.O. Cir.No.020, Ref:
26/04, dt.23.04.2009
20. Branch has to register Memorandum of Title Deeds of the property
offered as collateral security with Registrar / Sub registrar of Assurances as per Cir No 360
Ref No 26/60 dt 06.01.2009 and H.O.Cir.No.324, 11/04 dt.01.01.2010
21. Branch has to entrust obtention of certified copies of title deeds,
encumbrace certificate upto date and search reports to the advocate for all the securities
offered and get legal opinion ( as per HO cir. No. 165 Ref No. 11/03 dated 07.08.2003.
22. Equitable Mortgage by deposit of title deeds of the property offered
as collateral security should be created as per guidelines in force. Legal Opinion, valuation
report are to be obtained and branch has to satisfy about the worth of the security.
COMPLIANCE WITH ALL EXISTING GUIDELINES:
23. Other conditions as per Bank’s guidelines and circulars issued from
time to time.
24. All other terms & conditions as specified in our HO booklet on
“Guidelines of the bank on (a) loan policy & Credit Assessment methods. (b) Credit Risk
management & (c) delegation of powers through Cir. No.118 Ref.26/15 dt.29.06.2002, and
modified from time to time.
POST DISBURSEMENT MONITORING:
25. Unit inspection to be conducted as per HO guidelines.
26. Party has to meet the term loan installments from their own
sources in case of projections are not achieved.
GENERAL TERMS & CONDITIONS:
Sole Banking:
27. The borrower should deal with us exclusively and all other bank
accounts should be closed. Branch to ensure closure of other bank accounts of the
institution before release of enhanced limits.
Terms & Conditions applicable to OCC:
28. Branch shall obtain Stock Statement and review the same as per
the Procedure.
29. Our Banks Name Board must be exhibited in the premises as
financiers
TERMS & CONDITIONS APPLICABLE TO TERM LOAN:
30. Pre payment charges of 2% flat are to be collected in case of pre
closure of the loan as per HO Cir.No. 53 , ref 26/05 dated 09.05.2005
31. Certificate from Chartered Accountant is to be obtained for the
amount spent till date of disbursement, while releasing the instalments.
32. The borrower shall give undertaking that they will meet term loan
instalments from their own sources, in case projections are not achieved in any of the year.
33. An undertaking letter from the borrowers shall be obtained,
undertaking to pay the residual amount, if any, in the loan account on payment of stipulated
equated instalments.
34. Loan shall be released in phases depending on the progress of work.
7
35. Term loan should be disbursed directly to
suppliers/contractors. Reimbursement should be made as per HO Cir No.247/26/12
dt. dt.6.10.2004 in case, the party has already spent the amount.
36. Advance payments, if any to be made for the supply of furniture/
fixtures /equipment are to be met out of the margin. No portion of term loan is to be released
for advance payments. The amount of advance to be made is also to be paid only by way of
demand draft/pay order directly to suppliers through our bank account, duly ensuring that
necessary margins are bought in.
37. All Statutory approvals such as pollution control board approval,
inspector of factories, AP Transco, food grains licenses etc. should be in force.
38. Branch to disburse directly to the suppliers after obtaining
quotations, invoices etc. within the limit prescribed in the estimated project, duly
collecting the margins stipulated. Branch to ensure that the cost of machinery is
reasonably quoted as per prevailing Market rates.
39. No consideration by way of commission, brokerage, and fee
or in any other form would be paid by the borrower or received by the
coobligant/guarantor directly or indirectly for standing as a coobligant/guarantor.
(HO Cir.No.022 Ref.No.26/3 dt.21.4.2006)
40. Letter authorizing the bank to submit the information of the
applicant and all guarantors to CIBIL is to be signed
39.Branch ensure to obtain renewed Entrepreneur’s Certificate issued by DIC after due date of
the existing certificate.
Deputy Manager
8
ANNEXURE-A-1
WORKING CAPITAL ASSESSMENT
(FOR LIMITS ABOVE Rs.10 LACS AND UPTO RS. 5O LACS)
Installed capacity of the firm is 700000 SFT per year as per DIC certificate dt.22.01.2010
By assuming 71% of installed capacity , the firm projected sales turnover of Rs.75.00
lakhs for the 1st year by assuming the selling price Rs.15.00 per SFT.
The firm projected an average increase of 10% of sales every year considering the increase in
selling price and operating capacity
In view of the above, the projected Turnover is reasonable to achieve and justified
ANNEXURE-B
M/S Sri Sai Pooja Marbles, 1st Year 2nd Year 3rd Year 4th Year 5th Year
Bethamcherla
Projected Projected Projected Projected Projected
A. Turnover 75.00 85.00 94.00 103.00 113.00
B. 25% of (A) 18.75 21.25 23.50 25.75 28.25
C. 20 % of ( A) 15.00 17.00 18.80 20.60 22.60
D. Margin Required at 5% of 3.75 4.25 4.70 5.15 5.65
(A)
E. Actual Margin / NWC as 3.72 7.10 10.90 15.13 19.95
per previous ABS
9
ANNEXURE – A 2
COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE
Inventory Method (Rs. in lakhs)
The borrower is eligible for working capital limits of Rs.15.00 lakhs as per Turnover method and
Rs.4.50 Lakhs as per Inventory method as per projected Balance sheet 1st and 2nd years. However,
borrower requested for OCC Limit of Rs.4.50 Lakhs (Working capital Component of CTL)
10
ANEXURE – D
Civil Works, Edge Cutting Machine 1, High performance Heavy duty bridge machine for cutting colour
stones, Edge Cutting Machine, High speed polishing machines 2, Electrical Motors etc.,
1-2. Uses of the product: Buildings, Flooring, Cup Boards, Kitchen platforms, Railway platforms
1-3. Manufacturing process: Cutting of Colour stones to different sizes and polishing
1-4. Capacity for each product : Installed Capacity 700000 SFT per year as per DIC certificate
Borrower projected 70% of utilization in 1st year
1-5. Particulars of collaboration, if any : (names of collaborators and details of
collaboration agents): NIL
1-6. Locational advantages : Availability of raw material, labour and ready market is available as the
town is famous for selling of polished black stone/ Colour Stones.
Town is well connected by road and railways
1-7. Infrastructure facilities required and arrangements made for the same:
Plant & Machinery : Heavy Duty Bridge Cutting Machine (1), High speed Polishing Machines (2)
Cost Rs.9.87 lakhs as per quotations submitted,
Electrical Motors & Other Equipment Rs.2.03 Lakhs
Power & Fuel : 30 HP Power . Feasibility certificate submitted that the same will be provided
Water : Available
1-8. Arrangements made for procurement of raw materials: Raw material is available within a distance of
25 KM from the factory
1-9. Arrangements made for marketing of products: There is a good demand for the Black and Colour stone
slabs in AP and neighboring states and all over India
Selling could be done at factory itself
11
1-12.Time Schedule for implementation:
Capital : Borrower meet his margin from own sources like Cash / Deposits
DSCR Calculations: (till the end of the year by which Term loan is proposed to be repaid) (Rs. In lakhs)
Year 1 2 3 4 5 Total
Cover
Profit after Tax 3.78 4.37 5.15 5.89 6.74 25.93
Depreciation 2.84 2.41 2.05 1.74 1.48 10.52
Prel. Expenses written 0 0 0 0 0 0
Interest on Term Loan 2.1 1.7 1.3 0.9 0.5 6.5
0
Total (A) 8.72 8.48 8.5 8.53 8.72 42.95
Service
Term loan Instalment 4.3 4.3 4.3 4.3 4.3 21.5
Interest on TL 2.1 1.7 1.3 0.9 0.5 6.5
0
13
Total (B) 6.4 6 5.6 5.2 4.8 28
DSCR (A-B) 1.36 1.41 1.52 1.64 1.82
Average DSCR 1.53
Debt/equity: 1.12
Security Coverage: Rs.28.80 Lakhs collateral security and KVIC Margin Money of Rs.6.00 lakhs
(Composite Term Loan consisting of Term Loan Rs.17.00 lakhs and Working capital Component Rs.4.50 Lakhs)
Credit Rating
Rate of Interest proposed: B , BMPLR + TP presently 12.00 + 0.25 = 12.25%
14
ANNEXURE - IV
CREDIT RATING MODEL FOR NEW UNITS WITHOUT AUDITED BALANCE SHEET
Personal Guarantee of
Directors/3rd party Available ----- x ---- Not available
guarantee in case of
partnership/proprietary
concern
Total Crosses 4 3
5 4 3 0
Multiplying factor
16 9
Marks obtained 5 12 0
Maximum Marks 20 16 12 0
15
III FINANCIAL RISK FACTORS
Marks Tick
A. GROUP RISK Allotted
All group units are standard assets, profit making with no adverse 5 X
financial features.
All group units are standard assets with no adverse financial features and most of
them are making profits except those units, which have commenced commercial 4
operations recently.
All group units are standard assets with no adverse financial features. Though one
or more of them have made losses for latest financial year, due to temporary 3
reasons, their long term viability is not in doubt.
All group units are standard assets but one or more them have made losses for
latest financial year resulting in adverse financial position for which the promoters 1
are taking sufficient steps to improve.
All group units are standard assets but one or more of them are making losses for 0
more than one year with/without adverse financial position.
IV OTHER RISKS
Marks Tick
CONSTITUTION RISK
Allotted
Widely held Company/PSU 5
16
Public Limited Company 4
Private Sector Company 3
Partnership firm 2
Proprietary 1 X
TABULATION OF SCORES
Risk Factor Marks Allotted Marks Scored
I. Management/Industry Risk Factors 20 16
II. Collateral Security 05 5
III. Financial Risk Factors 20 16
IV. Others 05 1
Total 50 38
17