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M/S G. K. Trading Co. Store Proprietor V. J. Parikh 9, 10, Municipal Shopping Center, Godhara, established in the year 2002, is engaged in retail business of Marbles, Wall and Floor Tiles etc. The party has been in connection with and dealing with the PRIME Co-Op Bank Ltd Godhra branch since year 2006 with satisfactory dealings and good conduct. The turnover of account is encouraging. The party has established good trade connections and is involved in related trade. No negative complaints has been registered or found against the party ever since the opening of account with the bank branch. The amount is frequently routed through the account and the performance of account is good. Borrowers Information Name of Applicant Borrower Address of the Head/Regd. Office Constitution Date of Establishment Period since dealing with branch Net worth as on 31.10.2007 : : : : : : V. J. Parikh 9, 10, Municipal Shopping Center, Godhara Individual Year 2002 Year 2006 Rs.
General Information of the Proposal Existing Banking Arrangements Proposed Banking Arrangements Sanction Comes Under Powers of Activity Sector Present Facilities by the Applicant Facility Requested by the Applicant : : : : : : : Sole Banking Sole Banking Branch Head Trading of Wall & Floor Tiles, Marbles etc. Trading Nil Cash Credit
: :
1. Computation of Income & Personal B/S of Proprietor 2. Computation of Income for Applicant for last 3 completed Years 3. B/S for Last Three years 4. P & L A/c with Trading A/c for last three years 5. Copy of Registration under Shop & establishment Act. 6. List of Existing / Proposed Machinery 7. Documentary Evidence regarding Movable/Immovable Assets hold by Proprietor Guarantors
8. Month wise Sales/Purchase during Current Financial Year. 9. Insurance Policy on the name of PRIME Bank - Security Securities Proposed for the Facility Primary Security 1. Hypothecation of stocks and Book Debts 2. LIC Policy Detail Policy No. 871647826 Sum Assured 500000 Issue Date 11/11/98 Collateral Security Third Party Guarantee of two persons: 1. Mr. Nikhil N. Parikh S/o Mr. Narayandas R. Parikh 2. Mr. Ajay J. Parikh S/o Mr. Jayendra Parikh
Both the guarantors are dealing with the PRIME Co-Op Bank Godhra Branch. As reported both are availing cash credit facility with their respective branches and with a satisfactory performance.
G. K. Tradind Co.
Balance Sheet 31.3.2012 31.3.2011 31.3.2010 31.3.2009 Liability Capital V J Parikh Loans Liability Secured Loan Unsecured Loan Current Liabilities Sundry Creditors Total Assets Fixed Assets Investment Current Assets Stock Deposits (Short) Loan and Advances Income Tax Advance Sundry Debtors Cash in Hand Bank Total
P & L A/c As On 31.3.2012
1456678 1266656 1083065 1570762 36782 90000 43636 90000 52132 90000 37188 190000
512572 43750
444775 43750
474482 43750
458831 33750
932545 820330 400690 1037190 116500 105000 80000 80000 7286 7286 0 0 0 0 5071 0 252540 205120 286434 459176 286969 230280 392201 142139 65870 58370 9145 21554 2218032 1914911 1691773 2232640
G K Trading Trading A/c. As on 31.3.2012 Amount Particular 820330 Sales 5212468 Closing Stock 662538 6695336 Total
P & L A/c. As on 31.3.2012 Particular Amount Particular Accounting Fees 13500 Gross Profit Bank Charges 1250 Commission Income Bank Interest 12600 Discount & Vatav Depriciation 31125 Interest Income Electric Charges 8572 Shop Rent Income Freight Expense 65570 Insurance Expance 3548 Legal Fees 3200 Salary & Bonus Exp. 56000 Shop Exp. 14050 Shop Rent Exp. 29600 Stationary Exp. 900 Telephone Charge 12379 Traveling Exp. 13973 Income Tax 53950 Vehicle Fuel & Maintanance 8012 Vehical Loan Interest 4413 Net Profit 377649 Total 710291 Total
710291
Income Statement
31.3.2010 31.3.2011 31.3.2012 31.3.2013E Income Sales Expendature Material Gross Profit Operating Expance EBITDA Less : Depriciation Other Income EBIT Less : Interest EBT Less : Tax Net Profit 4610066 4895088 5482498 4103194 4318968 4819960 506872 576120 662538 232311 211205 230554 274561 364915 431984 28145 29707 31126 85695 42501 47753 332111 377709 448611 18855 17836 17013 313256 359873 431598 39157 44984 53950 274099 314889 377648 6277460 5417635 859825 259603 600222 35540 45576 610258 17013 593245 74156 519089
2013E
1212838 116500 7286 0 288763 328562 69492 2023441
706965 911767
Important Ratio 2010 2011 2012 Curent Ratio 2.51 2.77 2.61 LTD to Equity 13.12% 10.55% 8.70% Interest coverage ratio 17.61 21.18 26.37 Profit after tax/sales 5.95% 6.43% 6.89% Debtor Collection Period Creditors Payable Period Inventory Holding Period 29.52 40.09 60.14 18.33 15.23 41.61 43.51 48.87 62.95
Apart from the above financials of the party, the account statement reveals the following transactions of the party with the Bank Branch (Amt. in Rs. Lacs) :
Debt Summation From 01/04/2006 to 31/03/2007 (1 year) From 01/04/2007 to 31/10/2007 (7 months) 6.52 11.62 Credit Summation 6.50 11.10
Comments and Observations: Financial Indicators has been calculated as follows: a) Net Working Capital: Total Current Assets less Total Current Liabilities. b) Current Ratio: Total Current Assets divided by Total Current Liabilities. c) Stocking Velocity: Stock for the year divided by Cost of Goods Sold or Credit Purchase during the year multiplied by 360 days. d) Debtors Velocity: Average Receivables or Debtors for the year divided by Credit Sales during the year multiplied by 360 days. e) Creditors Velocity: Average Payables or Creditors for the year divided by Credit Purchase during the year multiplied by 360 days. Other Comments and observations: f) The party has projected to achieve a sales target of Rs. 19.00 Lacs over previous year achievement of Rs. 6.12 Lacs. The projected sales target seems to be achievable owing to the fact that up to 31/10/2007 (7 months) the party has a sales turnover of Rs. 11.62 lacs through the account. g) Stock Velocity reveals the part of sales always invested in stock during the year or in other words it refers to the period of sales sans obstacles out of the current stock in case the production halts due to strike or other reason. The stocking period of 175 days is on higher side hence its been accepted at 90 days level. h) Debtors Velocity reveals the duration within the debtors are expected to be realized. The projected debtors period seems reasonable hence accepted for assessment as projected. i) Creditors Velocity reveals the duration within the creditors are expected to be paid. Lesser the days better is the position of the firm. The projected creditors velocity is at a lower level, keeping the kind of stocks in trade into consideration, the velocity has been accepted at 50 days level.
Current Assets Stock (17.53*19360) Debtors (19*60360 Cash in hand Loans & advances Total Current Assets (a) 90 days 60 days 4.38 3.16 0.54 0.00 8.08
Current Liabilities Creditors (17.53*50360) Other liabilities Total Current liabilities (b) 50 days 2.50 0.00 2.50
5.58 2.58
MPBF
3.00
In view of above, it is proposed, if agreed, to allow Cash Credit Facility of Rs. 3 Lacs (Rupees three lacs only) in favor of M/S G. K. Trading Co. Prop. V. J. Parikh for a period of one year subject to renewal after review against securities as discussed.
Rate of Interest :
PLR presently 13 % with monthly rests or any other rate This may be prescribed by the Bank from time to time.
Margin
40% on Stocks 50% on Book-Debts (excluding book debts older than 6 months). .
M/S A.M. Classic Proprietor Mr. Saleem Siddique E-115 Cannought Circle New Delhi, established in the year 1997, is engaged in wholesale and retail trading of shawls,dress material and artificial jewelries. The party has been in connection with and dealing with the J&K Bank Lajpat Nagar brannch with satisfactory dealings and good conduct. The turnover of account is encouraging. The party has established good trade connections and is involved in related trade. No negative complaints has been registered or found against the party ever since the opening of account with the bank branch. The amount is frequently routed through the account and the performance of account is good. The party was maintaining current
account with J&K Bank Lajpat Nagar Branch and was accommodated by way of cash credit facility of Rs. 5.50 lacs in December 2005 against collateral security of 3rd party guarantee of two persons. The said C/C limit was renewed on 31/01/2007.
Borrowers Information
Name of Applicant Borrower Address of the Head/Regd. Office Constitution Date of Establishment
: : : :
Mr. Saleem Siddique E-115 Cannought Circle New Delhi Sole Proprietorship Year 1997
Existing Banking Arrangements Proposed Banking Arrangements Sanction Comes Under Powers of Activity Sector Present Facilities by the Applicant
Sole Banking Arrangements : : : : : Sole Banking Arrangements Zonal Office Delhi Trading Handicrafts C/C facility of Rs. 5.50 lacs against Collateral security of 3rd party Guarantee of two persons.
Mortgage loan for Trade & Service Sector Purpose of Borrowing Amount Requested : : For Expansion of Existing Business Rs. 35.00 Lacs.
Collateral Security Third Party Guarantee of two persons: 1 2 Existing Offered : : 3rd Party Guarantee of two persons
The security offered as mortgage comprises of residential flat at F-87, Connought Circle, New Delhi standing in the name of Mr. Saleem Siddique S/o Mr. Shahid Siddique (Proprietor of the Firm). As per the valuation report of P. Kumar, the market value of the said flat is Rs. 54.00 lacs and the realizable value (Forced Sale Value) is less by 15% of the cost. It is to be mentioned that the against said flat, the party is presently availing Home Loan Facility from IDBI Bank and the party will adjust the said loan in full and final prior to availing the fresh facility from the Branch. The papers regarding clearance of title deeds in respect of flat to be offered as mortgage have been forwarded to Banks approved lawyer/Legal Department Zonal Office New Delhi for Legal Opinion.
Particulars
31/03/2006
31/03/2007
31/03/2008
64.08 60.32
3.55
4.41
Liabilities
Share Capital Car Loan- IDBI Bank Home Loan- IDBI Bank Unsecured Loans Total Term Liabilities
Current Liabilities
Working Capital
0.00
0.00
39.51
32.21 50.94
12.18 40.46
54.11 74.43
Assets
Current Assets
33.98 50.94
20.63 40.46
55.72 74.43
Financial Indicators
Particulars Net Working Capital (In Rs. Lacs) Current Ratio Stocking Velocity ( Days) Debtors Velocity (Days) Creditors Velocity (Days)
Apart from the above financials of the party, the account statement reveals the following transactions of the party with the Bank Branch (Amt. in Rs. Lacs):
July-2006 August-206 September-2006 October-2006 November-2006 December-2006 January-2007 February-2007 March-2007 Total
2.99 6.52 3.49 3.40 6.32 12.58 18.45 14.87 15.27 106.12
0.00 6.53 0.00 4.69 3.55 13.04 18.97 32.41 7.84 109.80
a) Net Working Capital: Total Current Assets less Total Current Liabilities. b) Current Ratio: Total Current Assets divided by Total Current Liablities. c) Stocking Velocity: Stock for the year divided by Cost of Goods Sold or Credit Purchase during the year multiplied by 360 days. d) Debtors Velocity: Average Receivables or Debtors for the year divided by Credit Sales during the year multiplied by 360 days. e) Creditors Velocity: Average Payables or Creditors for the year divided by Credit Purchase during the year multiplied by 360 days.
f) The party has achieved sales target of Rs. 127.00 lacs during the financial year 2006-2007, out of which Rs. 109.80 lacs has been routed through the C/C account thorough the Bank Branch. It is about 86% of sales that have been routed through the account. g) The conduct of account has remained satisfactory. h) The firm is running on profitable lines and capital of the firm is showing continuous increasing trend. i) The firm is availing Car Loan Facility from IDBI Bank and is regularly depositing installments in the said account. j) The proprietor of the firm is also availing Home Loan facility again from IDBI Bank and the party intends to adjust the same.
Particulars Sales achieved during the year 2006-2007 Projected Sales for the year 2007-2008 Accepted Sales (Maximum 125% of the achieved turnover) Permissible Limit (20% of the accepted sales) Market Value of property as per valuation report Forced Value (85% of market value) Permissible Limit (75% of the forced Sale Value) Maximum Permissible Limit (Lower of A or B) Limit Recommended by the branch
31.75
31.75
32.00
In view of above, it is recommended to sanction Cash Credit Facility of Rs. 32.00 Lacs (Rupees Thirty Two Lacs only) in favor of M/S A.M. Classic proprietor Mr. Saleem Siddique under Banks scheme Mortgage Loan for Trade and Service Sector against before said securities for a period of one year subject to renewal after review.
Rate of Interest :
Validity
One year
Other Conditions 1. Prior to release of facility, the party shall have to adjust C/C facility of Rs. 5.50 lacs sanctioned under Normal Cash Credit Scheme of Bank. 2. Prior to release of facility, party to adjust Home loan facility with IDBI Bank in full and final
M/S Healthy Heart Hospital (Popularly known as 3H) South Extension New Delhi is headed by eminent cardiologist of the country Dr. Nasir. Dr. Nasir is the recipient of various prestigious awards and has a rich expertise in treating heart ailments. The hospital run with the specialization of treating heart ailments with all kinds of modern equipment and infrastructure. There are four stake holders of the hospital one being Dr. Nasir himself, apart from him, out of three stacke holders, two are doctors by profession and both are the daughters of Dr. Nasir. The fourth partner Mrs. Zainab Kareem is teacher by profession and is part of the family. All the three partner have 2% stake each in the Hospital rest is lying with Dr. Nasir. Dr. Nasir presently enjoying the facilities of Car Loan, and Housing Loan and he has requested for sanction of mortgage loan of Rs. 100.00 lacs. The conduct of all the loan accounts of Dr. Nasir is satisfactory.
Borrowers Information
Name of Applicant Borrower Address of the Head/Regd. Office Constitution Date of Incorporation Period since dealing with branch Net worth
: : : : : :
Healthy Heart Hospital (3H) South Extension, New Delhi. Partnership Year 1995 Year 2002 Rs.600.00 lacs. Approx.
1.
Presently Adhoc Facility of Rs. 25.00 lacs over and above the Regular limit of Rs. 25.00 Lac. 2. Term Loan Facility of Rs. 396.00 Lac with Outstanding Balance of Rs. 50.41 Lac as on Date. 3 Term Loan facility of Rs. 15.00 lac for Purchase of Machinery with O/S Balance
Of Rs. 3.99 lacs as on date of proposal. 4 Term Loan facility of Rs. 9.00 Lac with O/S Balance of Rs. 7.13 lacs Proposed Banking Arrangements : Enhancement in working capital limit of Rs. 25.00 lacs to Rs. 100.00 Lacs as Cash Credit Limit under Mortgage Loan under Trade And Service sector. Sanction Comes Under Powers of Activity : : Zonal Office Running Hospital with specialization in Treating heart ailments. Sector Present Facilities by the Applicant : : Professionals Detailed above at the head Existing Banking Arrangements Facility Requested by the Applicant : Cash Credit limit under Mortgage Loan Under Trade and Service Sector. Purpose of Borrowing Amount Requested : : For Expansion and growth of Business Rs. 100.00 Lacs.
Collateral The property is commercial in nature and is one of the reputed hospitals of metropolis. The property secured is none other than Healthy Heart Hospital itself. The full description of property is : Plot No-1 South Extension New Delhi with four storied building and basement. The property has been valued to the tune of Rs. 889.58 Lacs as per recent valuation report prepared by Mr. P Kumar, registered valuer on approved panel of the Bank. In view of the fact that real estate has witnessed enormous price escalation particularly in preceding years and the present property is enjoying placement at prime location the assessed value seems reasonable.
Apart from above mentioned securities there is also personal guarantee of partners.
Details of Credit Facilities Enjoyed By Dr. Nasir Partner M/S Healthy Heart Hospitals (3H):
Serial No. 1. 2.
of
Credit
Limit
Balance O/S
Security
2.26 15.00
1.70 9.90
Housing Loan
3.
Housing Loan
102.00
60.00
Particulars
31/03/2006 Audited
335.38 12.36
Liabilities
Share Capital Term Loan-J&K Bank Term Loan-Other Banks Unsecured Loans Total Term Liabilities
Current Liabilities
20.82 73.88
15.89 70.30
18.39 84.37
17.06
16.51
16.21
111.76 362.85
102.70 334.74
118.97 354.24
Assets
346.53 346.53
321.88 321.88
297.26 297.26
Current Assets
16.32 362.85
16.16 338.04
56.98 354.24
Financial Indicators
a) The Hospital income has shown marginal increase over previous years income (from 335.38 lacs to 339.16). However projected income (Rs. 424.55 Lacs) seems achievable owing to proposed expansion program. b) The current ratio has remained below bench mark, however keeping into account the nature of engagement present level seems justified..
Particulars Provisional business income during the year 2006-2007 Projected business income for the year 2007-2008 Accepted Income/Turnover (Maximum 125% of the achieved turnover) Permissible Limit (20% of the accepted Income/Turnover) Realizable Value of the property Forced Value
84.79
889.58 889.58
Permissible Limit (75% of the forced Sale Value) Maximum Permissible Limit (Lower of A or B) Loan requested by applicant Limit Recommended by the branch
667.19
84.79
100.00 100.00
Recommendations of Bank Branch Keeping into consideration the reputation, satisfactory dealings and value of the property the requested enhancement of present limit from Rs. 25.00 Lacs (Rs, Twenty Lacs) to Rs. 100.00 Lacs (Rs. One Crore only) is proposed in favour of the party under Banks Mortgage Loan Scheme For Trade and Service. In view of past satisfactory working results and excellent track record supported by sufficient collateral security, the sanction of Rs. 100.00 Lacs as cash credit facility is recommended for sanction in favor of Healthy Heart Hospitals (3H). The facility allowed is for the period of one year subject of renewal after review of performance. However present limit of Rs.25.00 lacs which the party enjoys will be withdrawn simultaneously with the release of proposed facility. Apart from this all other terms and conditions coming under the purview of mortgage loan scheme for trade and services will apply.