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Corporation Bank

Branch Surat CREDIT SANCTION INTIMATION 1. Applicable to credit facilities sanctioned by the Branches under delegated powers of the Branch Head. 2. To be prepared in triplicate. Copy of CSI signed by the borrower shall be held in the borrowers file /with the loan documents along with the office copy. Ref : 21 Digit Sanctioned Code M/s. OM SAI FASHION PROP.: MILAN L.KATRODIYA SURAT Dear Sir / Madam Sub: CREDIT SANCTION INTIMATION Ref: Your loan application dated With reference to your application referred above, we are pleased to sanction / renew credit facilities to you under the following terms and conditions. Please note that the credit facilities now sanctioned will lapse if not availed within a period of 2 months. 1. 2. 3 (a) Nature of Credit Limit (b)Extent of Credit Limit Purpose of loan 1. Term Loan of Rs.82.50 Lacs 1.Term loan for purchasing Rapier Machineries Date :02/07/2012

Rate of interest ( Subject to change 1. Term loan 12% (P.A.) from time to time as decided by the at present subject to change from time to time Bank) as per H.O guidelines Margin Name of the Guarantor/s 25% 1. PURIBEN UKABHAI KAKADIA 2. BHAVESH ASHOKBHAI BHINGRADIYA 3.MADHUBHAI MOHANBHAI PADSHALA 1. Hypothecation of Rapier Machineries. (1)Mortgage of Property situated at Plot N0433, Tirupati Society,Yogi Chowk, Puna Simada Road, Puna Gam, R.S. No-246, Block No-275, & RS.No-247 +259, Block No-276,

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Principal / Main Security/ies Collateral Security/ies

T.P. Scheme No-68, (Puna- Simada) Plot No74/A, 74/B, 75/A, 75/B, (2) Mortgage of Property situated at Plot No-A5, Yogi Nagar Vibhag-A, Puna Simada, Road, Puna Gam, Surat 7 Mode of disbursement 1.Term Loan: Directly payment to supplier Account. 2.Cash Credit: Not Applicable. 8 Terms of Repayment Term Loan:- ---------. . 9 Other Terms and Conditions As per annexure enclosed 10. The Bank may revoke in part or in full or withdraw / stop financial assistance at any stage without any notice, or giving any reasons for any purpose whatsoever Yours Faithfully,

Date:

Signature of the Branch Head (With Seal) Acknowledgement from the Borrower/s:

I/We accept the above terms and conditions of sanction

Date:

Signatures of Borrower/s

Others Terms & Conditions:The loan is sanctioned under TUF scheme. The proceeds of the term loan for machineries / equipments shall be directly remitted to the suppliers of the machineries along with the margin money and copy of invoice/stamped receipt for the full value shall be obtained and held on record. 3. The reimbursement for the amount already invested in the project may be made after obtaining necessary documentary proof for having investment the amount and after obtaining CA certificate to this effect, by keeping the required margin. 4. Any over run in the cost of project shall be borne by the promoters out of their own funds.
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Bank reserves the right to accelerate the repayment period depending on the actual cash accruals position.
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Periodical progress in execution of the project shall be submitted by the company. Branch shall inspect the progress and report the progress achieved in this regard.
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Upon completion of the project, a Charted Accountants Certificate shall be produced for the same showing details of total investments made and source thereof.
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The machineries/other assets acquired shall be fully insured against all risks with the bank clause.
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Upfront fee as stipulated by H.O. presently @ 1.00% in this regard shall be collected.
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All the standard terms and conditions applicable to the term loan shall be complied

with. The firm shall not divert working capital funds for meeting cost of acquisitions of fixed assets, etc. An undertaking to his effect shall be obtained from the firm.
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The firm shall not invest any amount for acquisition of fixed assets without any long term arrangements. Necessary undertaking to his effect shall be obtained from the firm.
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Rate of interest / commission and other terms applicable to the credit facilities are subject to review from time to time and are liable to be modified at the sole discretion of the Bank. Interest as indicated will be / will continue to be charged with monthly rests. The bank reserves the right to give notice at any time and thereafter to charge such other rate of interest as the Bank may decide.
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Legal and other charges incurred by the Bank in connection with documentation shall be charged to the borrowers account.
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Branch shall obtain an undertaking from the firm as well as guarantors stating that no consideration whether it be by way of commission, brokerage, fees or in any other from will be paid by the former or received by the later directly or indirectly in connection with guarantee furnished in favour of the Bank.
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Assets charged to the Bank shall be kept comprehensively insured against all risks at the firms cost with Bank clause duly incorporated.
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The firm shall submit renewal papers before the due date for the purpose of review / renewal of credit limits.
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Obtain access letter from lessor to visit the factory and inspect machineries.

During the currency of the Banks credit facilities any material change in the composition of the partners, management structure or equity pattern of the firm shall be informed to the Bank. 20. The firm should give details of legal heirs of the partners and an undertaking from the borrowers that they would keep the Bank informed about change in address of their legal heirs.
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The firm shall submit stock, quarterly information system statements and other financial statements / date to enable supervision and follow up of the advance within the time limit prescribed for the purpose.
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In case the borrower commits default in payment of any of the facilities or in the payment of interest thereon or any of the agreed installment of nay loan / advance on due date/s, the Bank disclose or publish the name of the firm and its partners as defaulters in such manner and through medium as the Bank or the Reserve Bank of India in their absolute discretion may deem fit. The borrower / guarantor shall furnish a consent letter to the Bank to furnish the information to CIBIL
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The bank will have a right to examine all the times firms books of accounts, assets etc., and have the firm workings and operations examined from time to time by officers of the bank or technical experts and / or management consultant and / or chartered accountants and the fees thereof to be borne by the bank.
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The bank reserve the right to add, amend, alter, cancel and modify any of the terms and condition stipulated herein above with or without any prior reference to the firm. Further, the banks general rules governing advances shall also apply. The firm shall abide by such terms and conditions as may be stipulated by the bank from time to time.
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Confidential Opinion from the firms present banker to be produced before availing disbursement of loan
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SSI Certificate with registration no. with DIC to be submitted before the release of

loan All the original invoices of the machineries purchased by the firm through banks finance to be deposited with the branch.
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Sanctioning Authority ANNEXURE 18 CHECKLIST FOR SCRUTINY OF LEGAL OPINION (To verify whether the legal opinion has certified the clear and marketable title to immovable property proposed to be mortgaged to the Bank as security) Branch: Surat Date: 02-07-2012

RA Name of Borrower : OM SAI FASHION Name of the property owner: Prop.. MILANBHAI LABHUBHAI KATRODIA Guarantor : 1. PURIBEN UKABHAI KAKADIA 2. MADHUBHAI MOHANBHAI PADSHALA 3. BHAVESHBHAI ASHOKBHAI BHINGRADIYA Specific location of the property : (1)Mortgage of Property situated at Plot N0-433, Tirupati Society,Yogi Chowk, Puna Simada Road, Puna Gam, R.S. No-246, Block No-275, & RS.No-247 +259, Block No276, T.P. Scheme No-68, (Puna- Simada) Plot No74/A, 74/B, 75/A, 75/B, (2) Mortgage of Property situated at Plot No-A-5, Yogi Nagar Vibhag-A, Puna Simada, Road, Puna Gam, Surat Details of Legal Opinion :

Name of the advocate : Date of Legal Opinion: S. No. 1 Yes / No Whether the legal opinion has been given by as approved advocate of the Bank in the format prescribed by the Head office in the circular No. 98/88 or covering all heads enumerated to the documents handed over to him and required for scrutiny? Whether the history and flow of tile have been traced adequately, say for a period of 25-30 years next before scrutiny on the basis of documents produced? Whether the chain of title to property from persons to person/s upto the present holder/s has been maintained throughout and up to date? Whether the party has produced all original title deeds pertaining to the property to be taken as mortgaged which are and ought to be held by the party? Whether the documents in proof of possession of the properties and the certified copy of record of rights relating to properties have been produced to be verified and cleared by advocate? Whether the encumbrance certificate or search report covering the period of 13 years next before the scrutiny of title by the advocate has been verified and a nil encumbrance has be ensured? If the property proposed to be mortgaged is a flat / apartment, whether the Yes

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Yes Yes Yes Yes Yes N.A

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title to the flat / apartment has been certified as clear and marketable with reference to special enactment, if any, applicable to the respective flat / apartment. In case no special enactment is applicable to the flat or apartment in question whether the advocate has certified the title of the applicant to the flat / apartment together with an undivided share in the land on which building comprising of flats / apartments has been constructed and right for common areas and amenities? If the property proposed to be mortgaged is a flat / apartment in a residential / commercial complex, whether the independent transferable and heritable title of the holder of the flat / apartment together with the right of the enjoyment of common areas and facilities has been certified by the advocate? Whether the advocate has suggested the mode by which the mortgage has to created i.e. whether as equitable mortgage by deposit of title deeds with or without the memorandum duly registered or a simple mortgage supported by the reason for the same? Whether the advocate has certified the title of the applicant to the property / flat / apartment as clear, marketable, free from encumbrance and free from claim of minors? Whether the titleholder has confirmed that the property is free from order of attachment before judgment or in execution of a decree or from order of injunction or other litigation affecting the right of the titleholder to create a mortgage? (Declaration may be obtained to ensure the same) If the titleholder of the property is a company whether search of register of charges maintained by the Registrar of Companies has been made to ensure that the property is found free from any charge?

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Yes

Yes

N.A.

DECISION: All the property is free from encumbrance and title clear.

OFFICER

MANAGER

Note: If credit facility is extended to the applicant accepting the immovable property proposed to be mortgaged to the Bank as security, this checklist should be kept with other documents of the credit facility under joint custody.