Professional Documents
Culture Documents
(Rs. in lacs)
Application Information BO/ZO HO Loan Loan For
Received on Completed Appraisal Appraisal Applied Appraised HO
Date by Completed Completed Consideratio
Promoters on on n
on
20.10.10 20.11.10 05.12.10 21333.33 21333.33 21333.33
TL TL TL
FINANCIAL PARAMETERS
Promoters 33.33% Appraised by Means of Finance
Contribution
Debt-Equity ratio 1.43 Technical Financial (Rs. In lacs)
D.S.C.R. 3.32 Capital 14920.1
Security Margin Mr.Lokesh Mr. Rohit Term Loan 21333.33
(Project) 51.95 Mgr. Singh
(Overall) (Tech.) Manager
Return on own capital 24%
R.O. Capital 10% Mr. Suraj
employed Gupta, DM
1. PROPOSAL IN BRIEF
The promoter of the concern proposes to establish a unit in the name of M/s XYZ
Industries, Indore for manufacturing of readymade garments. The main plant supplier is
M/s. Guru Teg Company, Ludhiana & M/s. Pareek Pvt.Ltd., Indore. The cost of project
of the proposed project is Rs. 60.00 lacs and Shri X has approached the Bank for
financial assistance of Rs. 40.00 lacs Term Loan for implementation of the project.
Shri X S/o. Late Shri Y Aged 25 years has done B.Tech. in 2006 from DAVV, Indore
and MBA in 2008 from DAVV, Indore. Thereafter he joined a Garment manufacturing
company named M/s. Narayandas Udyog, Indore as a Manager to gain experience. He is
an income tax payee.
2(c) The other details about the promoters be given in the following format.
(Rs. In lakh)
Name of the Age Father’s/ Qualifica Address Responsi- Financial I.T.
Promoter/ [yr] Husband’s tion bility Worth Payer
Guarantor Name [F.A.]
Shri X 25 Late Shri Y B.Tech Indore Overall 130.96 Yes
Proprietor MBA (120.96)
3. GUARANTORS
The Promoter shall provide personal guarantee for repayment of loan :
i) Shri X S/o Late Shri Y
Cutting
The cutting machine makes the separate piece and then marked with
it's size, using a piece of chalk so it won't show after washing.
The Stitching
After cutting on the cutting table the garments are then send for
stitching.
Inspection
The garment is inspected for faults and loose threads are cut.
The Packing
After that it goes on to the garment packing room where final quality
inspection takes place and paper tags and labels are placed or
attached.
MARKET DETAILS:
The Indian Garmentl industry undergoes major revolutions. It is gradually becoming the
next boom industry. In India, there will be the fastest growth in Garment manufacturing.
The consumer buying patterns and behavior are changing steadily. The growth of India's
Garment sector is not only limited to urban areas but also growing in rural areas. In the
next five years, it is expected that, India's Garmentl industry will expand more than 80%.
EFFLUENTS:
The process of manufacturing of garments shall not discharge any harmful effluent. It
shall also not have any air/water pollution and no hazardous solids shall be produced.
However, a suitable condition is being stipulated to obtain NOC from competent
authority i.e. Pollution Control Board.
7. COST OF PRODUCTION :
- Average Cost of Production is Rs. 175/- per garment.
RAW MATERIAL:
RAW MATERIAL:
The main raw material required for the unit is Cloth, which is easily and locally available.
The unit is being set-up at Indore & there is 15-20 cotton ginning factory are working in
and around Indore & they are producing cloth as finished product, so, no difficulty is
envisaged in procurement of Raw Material. The requirement of raw material at 100%
capacity utilization has been estimated.
POWER:
Required Power connection shall be available from State Electricity Board from ST line
connection. Since the unit is being set-up in Industrial Estate, getting power connection
shall not be a problem for the concern.
WATER:
Water will be required for drinking and sanitation, which is already available in the
existing premises through, tube well.
MANPOWER:
The manpower requirement of the unit is 8 workers ( Skilled & Unskilled workers) & 4
administrative. Skilled and unskilled workers are locally available.
(Rs in lacs)
Particulars I II III IV V VI VII VIII
Capacity Utilization 60% 70% 80% 80% 80% 80% 80% 80%
Turnover 143.64 175.14 200.34 201.60 201.60 201.60 201.60 201.60
Profit before
Depreciation,
Interest and Tax 23.13 22.51 25.70 24.94 24.94 25.54 25.54 25.54
Interest 6.39 6.69 6.41 5.68 4.94 4.20 3.47 2.73
Depreciation 5.00 4.37 3.82 3.35 2.94 2.59 2.28 2.02
Profit before tax 11.75 11.45 15.47 15.91 17.05 18.74 19.79 20.79
Profit after tax 9.68 9.47 12.29 12.60 13.40 14.58 15.31 16.01
Cash accruals 14.68 13.84 16.11 15.94 16.34 17.17 17.59 18.03
Detailed profitability estimates together with Fund flow statements are appended
herewith in CMA Data Form
12. REPAYMENT:
The loan is proposed to be repaid in 8 years in 13 half yearly installments with one and
half years’ off period. The details are as under:
[Rs. in lacs]
Particulars Amount
I No repayment in the first year 0.00
Total 40.00
• The overall security margin available shall approx. 130%. (The additional security
is in form of freehold land admeasuring 8000 sq.ft. located at KH. No.78/2, 79/3
(Part) P.H. No.87, Industrial Area, Indore belonging to Shri X Proprietor of
M/s.XYZ, Indore)..
19. RECOMMENDATIONS:
Bank's appraisal team has recommended sanctioning a Term Loan of Rs. 40.00 lacs
(Rupees Fourty Lacs) to Shri X, Prop. of M/s XYZ Industries, Indore, for setting up a
new unit for manufacturing of readymade garments at Indore (MP).
MANAGER DY. MANAGER
SECURITY : FIRST LEGAL MORTGAGE/ LEGAL MORTGAGE
a) By way of Equitable mortgage of Land admeasuring 2000 sq.ft. and building, of
the concern. admeasuring 2400 sq.ft. situated at Indore (M.P.)
b) Land (freehold) admeasuring 8000 sq.ft. situated at No. 87, Industrial Area,
Indore, belongs to Shri X, Prop. of the unit as additional security.
d) The firm shall lodge post dated cheques for repayment of entire principal and for
Five years of interest amount.
UTILIZATION:
(Rs. in lacs)
Particulars Amount
Land 5.00
Building 17.91
Plant & Machinery 24.04
Furniture 5.00
Preoperative and preliminary exp. 3.00
Margin Money for working capital 5.05
Total: 60.00
INTEREST:
@ 12% p.a. payable yearly on term loan.A penalty of 2% will be charged in case of
default for the period of default and on the amount of default. A rebate of 1% shall be
allowed for timely repayment of principal and interest installments.
GUARANTEE:
Personal guarantee for repayment of loan along with interest shall be offered by:
REPAYMENT:
The loan is proposed to be repaid in 8 years in 28 quarterly installments with one year’s
off period. The details are as under:
Particulars Amount
I No repayment in the first year 0.00
Total 40.00
CAPITAL:
The firm shall invest capital of Rs. 20.00 lacs towards implementation of the project
before release of sanctioned loan.
OTHER CONDITIONS:
i) The sanctioned loan will be automatically cancelled, if documentation is not
done within nine months from the date of sanction. An extension of 3 months
can be given on deposit of additional fees @ 0.10% of the sanctioned loan.
ii) In case the full amount of loan is not availed within a period of 15 months from
the date of sanction, the balance loan will automatically be cancelled. An
extension of 3 months can be given on deposit of additional fees @ 0.10% of
the balance unavailed loan.
iii) The promoter/guarantors shall give undertakings stating that in case of the
Bank’s loan account goes out of order; the Bank shall have a right to publish the
name of the company and its promoters in the newspaper or through other
media and may publish their names in the defaulter list of CIBIL.
iv) Fixed Assets shall be insured with assignment in favor of the Banks.
v) No assistance from other financial institution should be availed on assets under
consideration, without prior consent of the Bank.
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