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MEMORANDUM FOR SANCTION/APPROVAL OF __________

(Please mention only the applicable authority)

(Sanction/Review/Renewal of Term Loan/Working Capital Limit, Modification in Terms of


Sanction (including fixing of rate of interest, Extension of validity of sanction (on existing/
revised terms, Ratification of sanctions by lower authority OR Combination of one or
more of the above). Please incorporate whatever applicable.

Br Ref. No.
Date

SSIAnd/ADV/16-17/

Approval /
Decision
Noting /
Ratification
Information

HO Ref. No.
Date
MD & CEO

ED

Initial

Date
CREC has endorsed the recommendations of General Manager in its meeting held on
__________
________________
Branch: SSI Andheri east
Name of Account
CUST ID:
PAN NO:

Zone: Mumbai North


Auto Power
133733904
AISPP3804H

Reasons for referring the proposal/memorandum to this Committee:

CUST ID: 133733904

(All Amounts in Rs. Crore)

1.
2.

Name of Account
Constitution

AUTO POWER
Proprietorship Firm
NA

3a

If Company/Partnership:
Date of Incorporation/Regn:
Commencement of
Operation (in case of Co):
Business/Activity

3b

4.
6a
6b
6c
6d
7.

9
10a
10b

Manufacturing of Auto Parts

Business/Activity wise scheme codes (in FINACLE Menu-ACM V)


(i) Facility Code
1 1 0 (iv)Borrower Category Code
0 3
(ii) Industry Type
1 5 7 (v) Purpose of Adv. (BSR Code) 3 4 3 0
(iii)Scheme Code
3 5 1
Established in
1991
5.
Advance since August
2013
If the account is new, name of No, Existing Account
the present bankers:
In case of Takeover, Name of N A
Bank/FI, Reasons and status
of compliance
IRAC Status (as on..)
Advances:
Investments:
IRAC Status (as on..)
With other Banks
(as per CRILC data search)
Credit Rating
a) Internal Rating
Risk Grade
Pricing Grade
b) External Rating@
c) Risk weight

Advances:
Previous
SBS -5

2
1

Investments:
Present
8. Asset code

11/
Standard

8a. SMA (Y/N) No


100%
8b. SMA Date
NA
(if SMA-2)
@External Rating done by________ (Agency) report dated _______ NA
(Long Term/Short Term)
Group (if known group)
Not a major Group
Principal Person
Ms. Parinda Dinesh Patel (proprietress)
Promoters shareholding
Current Year:_ N A Previous Year: N A

10c

Whether Promoters share N A


pledged

10d

Management

If yes,
to our Bank:_____________%
to consortium:____________%
to other Bank/FI:__________%

Ms. Parinda Dinesh Patel is proprietress of the firm, has


several years experience of running the business with her
late husband. She is managing business efficiently after
the demise of her husband. She oversees the overall
management of the firm.
The proprietress is assisted by qualified and experience
staff. Overall management of the firm is satisfactory.

11a. Shareholding patterns as on 31.03.2015 N A


Shareholders

Shares
held

% of
Shares
held

Shares
Pledged

% of
Share
pledged

Banks/FIs to
whom
pledged

Amount

Promoters
NA
i)
ii)
iii)
Institutional
Investors
B -FII
NA
C -Mutual Funds
D Public
E Total
The promoters having share more than 5% should be listed separately.
11 b. Banking Arrangement and Sharing Pattern:
Financial Arrangement

Working Capital

(Sole)
If not Sole Banking, Leader / Main Bank

Term Loan

0.50

0.00

Existing

Proposed

Existing

Proposed

Lead Bank/Main Bank share %


Our Share %
11 c. Exposure with All Banks (including our Bank):
Name of Lenders

Existing Limits
NFB

1 Bank of India

FB
TL
WC
0.00 0.50

TOTAL

1.00

1.50

Total

0.00

1.00

1.50

0.50

11.d Borrower Exposure details)


Growth in Our Exposure in the
last 3 years

nd

100

2 Last year

FB
TL
WC
0.0 0.50
0

NFB

TOTAL

Share
%

1.00

1.50

100

0.0
0

1.00

1.50

0.50

Total Exposure
Last Year
Current Year
(including proposed)

1.50
Total Indebtedness of the Unit
with other Banks/FIs as per
CRILC Data search

Proposed Limits
Sha
re%

1.50
--

1.50
--

11e. Exposure details particulars

Actual

Ceiling

Remarks

Borrower
Group
Industry

12. EXPOSURE TO INDUSTRY: (including present exposure) (mention sector):


a)
b)
c)
d)
e)

Sectoral Cap for(


Banks Exposure
Zones Exposure
NPA at Bank level
NPA at Zonal level

% ) industry

:
:
:
:
:

13. DETAILS OF PRESENT PROPOSAL:


1.

Last Sanction : SZLCC/ MNZ dated 17.03.2015

2.

NBG Approval :

Renewal / Review
(i)
Renewal of CC facility
(ii)
Review of NFBL

Fresh Approvals: NIL


(i)
(ii)

Continuation of Existing Approvals:


(i)Renewal of CC limit of Rs. 0.50 crores
(ii) Review of NFBL of Rs. 1.00 crores

Modifications/Revisions in Existing terms and conditions if any:- NIL


S No
1
2
3
4
5

(Terms of approval in brief)

Existing terms and Conditions

Proposed modification in terms and


conditions with justifications

14. FACILITIES:
Particulars

Position as on
Existing

Fund Based Limits (Term Loans)


1
NA
2
Total Term Loans
WC Fund based Limits
1
CC- Stock
0.50
2
CC Book-Debts
0.50
Up to 90 days
Total/Max WCFB
0.50
Total FB (TL+WCFB)
0.50
Non Fund based Limits
1
L/C- I/F
1.00
(DP/DA up to 90
days)
2
BG - Inland
0.25
Total Non-Fund Based
1.00
Total Aggregate/ Max
1.50

Proposed

Inc./
Dec.

0.50
0.50
0.50
0.50

0.50
0.50

0.50
-

1.00
0.25
1.00
1.50

DL

Bal.
O/S

Over
dues

0.11

0.11
0.11

1.00

0.00

0.25
1.00
1.50

0.01
0.01
0.12

Proposed
Pricing/ROI/Comm.

Treasury Exposure to be shown separately.- N A


15. REPAYMENT OF TERM / DEMAND LOANS: N A
Loan-I:
(Original limit Rs.________) Repayable in ______ monthly/quarterly/half yearly/ annual
instalments of Rs._______ each commencing from the last day of _______. Door to door
tenor is __________.
Loan-II:
(Original limit Rs.________) Repayable in ______ monthly/quarterly/half yearly/ annual
instalments of Rs._______ each commencing from the last day of _______. Door to door
tenor is __________.
Repayment schedule of each Term/Demand Loan Account to be mentioned separately
as mentioned above.
16. PURPOSE:
Working Capital Fund Based Limit :
WCFBL is required to facilitate day to day operations. Limit has been assessed as per
turnover method.
Letter of Credit :
This limit is requested for purchase of material from Japan, Taiwan and China.
Bank Guarantee :
The firm files tenders to get orders for their product. Hence, the firm has requested for
Bank Guarantee limit of Rs. 0.25 crores within total NFB limit of Rs. 1.00 crore.

17. SECURITY (Facility wise):


Value @
Security

Particulars$

Principal

Hypothecation of stock
Hypothecation of Book-Debts

Date
of
valuation
As per stock
statement of
April 2016

20% Margin for LC and BG in


the form of Banks TDR
Collateral#

EQM of Office premises No 20, 10.06.2013


Ground floor, Virwani Industrial
by R D
Estate, Off. W E Highway Ashtaputre
bearing Survey No 20, Hissa & Associates
No 7(p) & 8(p), C T S No 62,
situated at village Dindoshi,
Goregaon
East,
Mumbai400060

Total

1.44 1.44

0.20
(On full
utilization
of limit0
2.22

0.20
(On full
utilization
of limit)
2.22

2.22
3.86

2.22
3.86

Total Collateral
Total (Principal+Collateral)
Previous
Year

Our share

Last Year

Asset Coverage Ratio (ACR)++


Collateral Coverage Ratio (CCR) ++
FACR (wherever applicable)

Current
Year

3.83
1.48

2.57
1.48

Note : It should be specifically mentioned as to the facility for which such security is
available .

18. GUARANTEES (as on _______________):


Name of Guarantor
Mr. Rohit S. Patel
Mr. Neil D. Patel
Mrs. Maniben Amritlal Patel

Assets

Name of Guarantor

Networth as per Last


Proposal

Mr. Rohit S. Patel


Mr. Neil D. Patel
Mrs. Maniben Amritlal Patel

Liabilities

Net worth

Basis

Present Net worth

19. CONDUCT OF ACCOUNT:


1)

Conduct of the account : Satisfactory

2)

Cheques returned during the year under


review for financial reasons: NIL

3)

LC devolved and BG invoked:


a) In case of devolvement of LCs, please give details like number of LCs
devolved, maximum and minimum amount of LCs devolved, total amount of
devolvement, present amount outstanding under devolvement, with earliest
date of outstanding devolvement. - NIL

4)

5)

b) In case of B.G. invocation, please give number of BGs. invoked maximum


and minimum amount of BGs invoked, total amount of BGs
invoked, reasons for invoking that guarantee, whether funds are provided
by the borrower immediately to meet the liabilities under BGs invocation, if
not , what is the amount recoverable from the borrower under BG
invocation.
-- NIL
Whether there are Sales / Purchase to/from associate companies
(including Exports/Imports). If Yes give details No
Turnover in the Account (Period from 01.04.2015 to 31.03.2016):
S.No.
1
2
3
4
5
6

Particulars
Credit Turnover
Proportionate Sales (our share)
Average Balance
Maximum Balance
Minimum Balance
No. of times TOL/Adhoc Limit
allowed

Amount

6)

Details of SMA / JLF / CAP / Restructuring / SDR (if applicable)

7)

Comments/Remarks on the above:

20. FINANCIAL INDICATORS:


Particulars

Audited
Audited
( 2013-14) (2014-15)

Provisional Estimate
(2015-16)
(2016-17)

Projected
(2017-18)

Name of the Borrowers


Auditor/Audit firm (with
Membership No/Firm Regn. No.)
a) Paid up Capital:
483.68
489.97
470.34
477.84
494.16
- Equity
483.68
489.97
470.34
477.84
494.16
- Preference Share (*)
0.00
0.00
0.00
0.00
0.00
b) Tangible Networth
483.68
489.97
470.34
477.84
494.16
c) Quasi Equity
d) Investment in Cos
0.00
0.00
0.00
0.00
0.00
(Of which in group Cos)
e) Adjusted TNW
483.68
489.97
470.34
477.84
494.16
f) Med. & LT Loans
g) Capital Employed
533.76
524.97
513.58
502.84
514.16
h) Current Assets
701.78
612.92
540.70
527.47
546.00
i)
Current Liabilities
195.96
163.26
149.78
128.78
142.50
j)
NWC (g-h)
505.82
449.66
390.92
398.72
403.50
k) Net Block
27.30
73.56
102.46
103.26
108.70
l)
Imports
m) Net sales : Domestic
814.81
579.59
482.68
531.00
584.00
Exports
0.00
0.00
0.00
0.00
0.00
Total
814.81
579.59
482.68
531.00
584.00
n) Other Income
1.75
5.05
0.61
1.75
2.00
o) EBIDTA
19.18
16.36
13.49
31.55
51.21
p) Interest
5.17
4.01
1.84
5.50
6.05
q) Gross Profit/(Loss)
14.01
12.35
11.65
26.05
45.16
r) Taxes
0.00
0.00
0.83
4.36
10.28
s) Cash Accruals
14.01
12.35
10.82
21.69
34.88
t) Depreciation
4.04
3.51
4.93
4.19
3.56
u) Net Profit/(Loss)
9.97
8.84
5.89
17.50
31.32
v) Accumulated Losses
w) Unhedged Fx. Exposure
x) Contingent Liability (Disputed)
RATIOS:
i)
Current Ratio
3.58
3.75
3.61
4.10
3.83
ii) Debt Equity Ratio:
Term liab./ Adjusted TNW
0.10
0.07
0.09
0.05
0.04
TOL/ Adjusted TNW
0.51
0.40
0.41
0.32
0.33
TOL/Quasi Equity
0.38
0.31
0.29
0.32
0.33
iii) Profitability%:
1.22
1.53 1.22
3.30
5.36
(PAT/Net Sales)
iv) Net Profit/Capital Employed (%)
v) DSCR
vi) Interest Coverage
3.71
4.08
6.88
4.94
6.77
vii) Inventory+ Receivables/ Sales
63.92
82.50
82.41
74.01
69.52
(%)
In item(d) include all investments/Loans. Worked out (e) if investment in group Cos is above 10% of TNW.

In case of NBFC, Gross NPA, Net NPA and CRAR(Tier 1 & II) and Asset under Management (AUM) to be
given separately.

Share price : Rs.______ as on ___________


(52 week's High/Low : Rs._____ /Rs._______

Face Value: Rs._______ Market Cap:


Source: _____________

Details of unaudited quarterly results (cumulative):


Estimates/
(Current Year)

Up to Q1/H1/Q3/
(Current Year)

Up to Q1/H1/Q3/
(Last year)

Net Sales
EBIDTA
Net Profit
21.

COMMENTS IN BRIEF ON FINANCIAL POSITION


Firm has since submitted audited BS and P&L account for the financial years
ending 31.03.14,31.03.15.31.03.16 & estimated and projection for the financial
years 2016-17 and 2017-18.Our observations on the financials of the firm are as
under.
21.1 PAID UP CAPITAL/TNW:
The capital of the firm has decreased from Rs489.97 lac as on 31.03.15 to
Rs470.34 lac as on 31.03.16 mainly due to the withdrawals by the proprietors
and decreased in the profitability. It is to be increased to Rs477.84 lac and
Rs494.16 lac as per estimates/projection.
Last Year

This Year

Last Year

This Year

TNW as on
Add:
Less:
TNW as on
Components of TNW:
Particulars

Redemption date of Preferential Shares to be mentioned.

21.2 NET SALES: Sales turnover of the firm has decreased from Rs814.81 lac as on
31.03.2014 to Rs579.59 lac as on 31.03.15 and further decreased to Rs482.68 lac
current financial year 31.03.16

10

21.3 OTHER INCOME : Other income of the firm has decreased from Rs5.05 lac as on
31.03.15 to Rs0.61 lac as on 31.03.16.As per CMA, firm has estimated other
income of Rs1.75 and Rs2.00 lac for the year ended 31.03.17 and 31.03.18.
21.4 PROFITS/PROFITABILITY: The net profit of the firm has decreased from Rs8.84 lac
as on 31.03.15 to Rs5.89 lac as on 31.03.16 .The same way EBITDA has
decreased from Rs16.36 lac to Rs13.49 lac during the same period. The decreased
in the profitability is mainly due to the decreased in the purchases amounting
.With increased sales in 2016-17,the profitability is likely to show a rise in the next
year with EBITDa showing a rise to
p.a
21.5 INVESTMENTS:
During FY16 firm has made investment of Rs
in Bank FDR,whicg is w
21.6 CURRENT RATIO:
Current Ratio of the firm was at 3.54 on 31.03.14,3.75 as on 31.03.15 and 3.61 as
on 31.03.16.The estimated and projection current ratio are 4.10 on 31.03.17 and
3.83 on 31.03.18 respectively. This shows the better liquidity position of the
firm .The ratio is above the bench mark level. Hence we may accept the same
21.7 DEBT EQUITY RATIO:
DER as on 31.03.14 was at 0.51, as on 31.03.15 was at 0.40 and current year
31.03.16 is 0.41.The estimated and projection DER are 0.32 and 0.33 as on
31.03.17 and 31.03.18 respectively. This shows the firm have better position to
repayment of debt .We may accept the same.
21.8 DSCR/ ISCR: No DSCR
21.9 NET BLOCK:
Net block of the firm has increased from Rs27.30 lac as on 31.03.14 to Rs73.56 lac
as on 31.03.15.the current financial year 31.03.01, the Net Block is further
increased to Rs102.46 lac. As per estimated /projections Net Block will be
Rs103.26 lac and Rs108.70 lac. The Net Block of the firm comprises Air
conditioner, computer, furniture and vehicle etc. The reason for movement in net
block is depreciation , which is done under WDV method.
21.10 CONTINGENT LIABILITIES: NIL
21.11 Segmental Reporting and Consolidated financials:NIL
21.12 STATUTORY AUDITORS REMARKS/QUALIFICATIONS:NIL

22.

INTER COMPANY COMPARISON:


Name of Company

Year

Sales

PBDIT

PAT

TNW

CR

Note: In case it is NBFC, please also give Gross NPA, Net NPA and CRAR for
respective years.

DER

11

ASSESSMENT/JUSTIFICATION FOR PROPOSED LIMITS


23.

PROJECT FINANCE/TERM LOAN ASSESSMENT:


No Term Loan availed/proposed.

24. WORKING CAPITAL ASSESSMENT:


a) Firm has requested for WCFB limit of Rs0.50Crs for the FY 2015-16 based on
estimated gross sales of Rs531.00 lac for FY2016-17 which is achievable for the firm.
b)
Last
Actual
Estimated Projected
accepted
as on
for for
Raw material
Stock in process
Finished goods
Receivables:
Export
Domestic
Creditors
C) Components of other current assets considered for finance and comments on the
same
d) As the estimated holding period is more than 3 months, Hence assessment of working
capital has been carried out as per MPBF method as under:-

2014-15
Audited
612.92

(Figures in lac)
2015-16 2016-17 2017-18
Audited
Audited
Audited
540.92
527.47
546.00

177.72

163.26

107.84

78.75

87.50

524.06

449.66

432.86

448.72

458.50

175.45

153.23

135.18

131.87

136.50

505.82

449.66

390.92

398.72

403.50

348.62

296.43

297.69

316.85

322.00

Particular/year
A
b
c
D

E
F

2013-14
Audited
current 701.78

Total
asset
Current
liabilities other
than bank
Working capital
gap(a-b)
Minimum
working
capital(25% of
a)
Actual/projected
working capital
c-d

12

c-e

MPBF(lower of f 18.24
& g)
Excess
Nil
borrowing,
if
any

18.24

0.00
0.00
Nil

41.94

50.00

55.00

41.94

50.00

55.00

Nil

Nil

Nil

The CC limits have been estimated at Rs0.50crs and also proposed at


Rs0.50crsfor the next year 2016-17as per the request of the firm.

e). Recommendation:
We recommend approval of assessment of WCFB limits at Rs.________ crore as
above with our share Rs.________ crore (______%age). (In case our percentage
share is decreasing or increasing, reasons for the same to be given.) We recommend
sanction of our share of WCFB limits as under:
In the view of above mentioned assessment the firm is eligible for Rs0.50crs &
Rs.0.55crs for FY17 & FY18 respectively .WCFBL as per assessment based on
2nd method of lending and acceptable holding level ,we recommended for
WCFBL limit of Rs0.50crs as under.
:
Sr.no
1
2

Facility
CC-Hyp of
stocks
CC-Hyp of
B/debt(up to 90
days only)
Total/Max(1+2)

Existing
0.50

Proposed
0.50

Margin
25%

0.50

0.50

40%

0.50

Specific approval be sought in case of extending credit limits to cover sales to asset
purchases from group company/ies with a cap stipulated. Approval be also sought for
allowing DP against receivables of group companies, advance paid to suppliers, stocks in
transit and unbilled invoices/revenues with justification.
25. NON FUND BASED LIMITS ASSESSMENT:
While making LC assessment for raw material, points to be covered broadly are - raw
material being purchased, out of which how much is being purchased under LC, from
where and from whom it is being purchased, whether indigenously or imported and
assessment to be made as under:
Assessment of Letter of Credit (L/C-I/F)/DP/DA:
a.
b.
c.
d.
e.

Total purchases of raw material


Out of which under LC
Lead period (including transit period)
Usance Period
Total period (c+d)
LC requirement (b*c/365)

Rs.
Rs.
days
days
days
Rs.

13

Assessment of LC limit should be assessed separately for Imports and


domestic purchases.
While making assessment of LC limit for capital goods points to be covered
broadly are which machinery is being purchased under LC, from where and from
whom it is being purchased, whether indigenously or imported, what will be broad
terms of LC, how liability under LC to be met by the borrower, what is the tie up
arrangement for funds to meet liabilities under LC, cash flow to be enclosed if to be
met out of internal accruals etc. Period of Trade cycle/Buyers Credit/LOC to be given.
In case LC is required on clean basis or is required to be opened in favour of group
companies or consignee is not our Bank in the document of title to goods, etc., special
approval to be obtained giving reasons/proper justifications for such request and
sublimit for such type of LCs to be fixed and got approved.
While making assessment of BG limits
The firm is required to furnish guarantees to various companies foe bidding tenders,
performance guarantees for the tenders awarded etc. The firm has requested for
reviewing the BG limit at existing level of Rs0.25crs with all term and condition
including margin @ 20% remaining unchanged. We recommend subject to:
1) Period of guarantee should not exceed 3 years and maximum claim period
should not exceed 6 month
2) There is no onerous clause in the guarantee.
We recommend for continuation of the BG limit of Rs0.25crs with a sublimit of LC
Maximum Rs1.00crs.

Assessment of BG limits for EPC contractors/ Construction Industry:


(In case of EPC Contractors/ Construction industry detailed assessment in respect
of Guarantees issued for Bid bond, Mobilization, Performance, Retention, Other
BGs be provided)
S.No. Particulars
1 Total Value of tenders participated at any point of (A)
time Next 12 months

Amount

14

2
3

4
5
6
7
8
9
10

Success/ Strike rate @ _%


(B) = A * ___%
Bid Bonds @ _ % (n%)on value of the tenders
participated calculated on the assumption that
the EMD BGs are rotated once in months (P)
[C = A * n% * p/12 ]
[A=Total Value of Bid bonds, p = no of months]
Performance Guarantees @ % of item 2
(on
average basis)
Mobilisation advance guarantees @ % of item 2
(on average basis)
Retention money guarantees @ _% on completion
of works (on average basis)
Requirement of Guarantees for miscellaneous
purposes
Guarantees required for existing/new projects
(C+D+E+F+G)
Add: Outstanding Bank Guarantees as on
Total Bank Guarantees (8+9)
Less: Bank Guarantees expiring during next 12
months including return of bid bonds
Bank Guarantees required
Recommended

(B)
(C)

(D)
(E)
(F)
(G)

Assessment of Bank Guarantee (applicable for others):


Particulars
Confirmed order for Current Year
Projected turnover for Current Year
Estimated BG requirement for Current Year
(a) For Mobilisation of Advance
(b) For Retention Money
(c) For Bid Bonds
(d) For Performance Guarantees
(e) For Financials Guarantees
(f) Others/Miscellaneous
Less : BG expiring in Current Year
Less : BG limits available as on date for utilisation
Total requirement during the Current Year
BG Facility Required

Amount

Recommendations:
We recommend approval of assessment of NFB limits (LC/BG) at Rs.________ crore
as above with our share Rs.________ crore (______%age). (In case our percentage
share is decreasing or increasing, reasons for the same to be given.) We recommend
sanction of our share of WCFB limits as under:

15

Facility

Proposed

Existing
Amount
Margin (%)

Amount

Margin (%)

26 a. INDUSTRY RISK SCORES (IRS):


As per banks quarterly industry update for Q2 of
IRS signifies neutral risk

IRS for this sector is

.this

26 b. INDUSTRY PERCEPTION:
The Indian auto-component industry is expected to witness a moderate growth in
sales during 2016-17 even as the domestic demand may be impacted by automotive
segment, specific growth rates in the short to medium term. While the export growth
potential remains significant during the medium-term, the ability of auto-component
player to capitalize on their strengths and overcome challenges assumes
importance .Going Forward the sustainability of the increase in ROCE will depend
crucially on demand growth and the effective utilization of capacities.
27. FAVOURABLE FACTORS (in brief):
1) The proprietress has several year of experience in the same business.
2) Firm has good base of customer.
3) Satisfactory Collateral coverage ratio at
RISK FACTORS AND MITIGANTS:
1) Existing as well as new manufactures in the same industry are the main
competitor and price fluctuation are the major risk factor.
2) Change in Government policies on service tax adversely impact the working
of the firm.
3) Business is solely depending on proprietress.
Mitigant:
1) Borrower is experienced enough to face the competition and take adequate
measures to control cost and prevent loss out of price fluctuation.
2) Vastness of the Indian Market.

28. BORROWERS EXPOSURE:


With Us

(Existing)

Facility
WCFBL
NFB
-

With Other Banks


With FIs*
Under Lease Finance/Invt.
Total
* Name of banks/FIs to be given.

29. GROUP EXPOSURE (including this proposal)

Limit
0.50
1.00
1.50

Outstanding Asset Status


0.11 standard
0.11
-

16

Name of Co/ Zone/


firm
Branch

AC/
CR

Limit
FB

Domestic:
1.Auto
Power

MNZ/
Andheri
SSI

New
A/c/
SBS
5

2.
Treasury:
1.
2.
Overseas:
1.
2.
Total

Total/
Max.

NFB

O/s
FB

Out of
Order

NFB

0.50

1.00

1.50

0.11

0.01

0.50

1.00

1.50

0.11

0.01

30. EXPOSURE CAP BASED ON CAPITAL:


Maximum exposure based on
capital
funds
as
on
..

Borrower
Cap.
Actual

Group
Cap.
Actual

31. INFORMATION ON HEDGING OF FOREX EXPOSURE:


(as declared by the borrower as on last day of previous quarter ended)
Particulars

Currency

Exports
Hedged
Unhedged

Imports
Hedged
Unhedged

Trade Payables
Trade Receivables
Non-Trade @
@ Non-trade exposure to include ECB, FCCB, FCNR (B) Loans, etc.
Remarks and Mitigants for Unhedged portion of the exposure

32. UTILISATION/VALUE OF ACCOUNT:


A

Utilisation of :

a) Fund Based Limits


i. Term Loan
ii. Working Capital
b) Non Fund Limits
Export Turnover

Last Year 2014-15


Amount
%
0.50
1.00

25%
25%

Current Year 2015-16


Amount
%
0.50
1.00

17

Import Turnover
C

Earning
Interest
Other Income
Bills Purchased/ collected
LCs opened
Guarantees issued
Any other Income
Total
Yield (%)

Last Year
No.

Amt.

Earnings

No.

Current Year
Amount Earnings

(The above information to be based on CUSTPSN report generated from FINACLE)

33. CROSS SELLING:


Particulars

Present
Arrangement with

Total
Volume

Our
share
(%)

Income
Earned
(Last.Yr)

Income
Likelihood of shifting
Expected to our Bank
(Curr.Yr)
Y/N
Timeline

CMS Facility
Salary
Tax/Excise
Collection
Dividend
Card Products
Other (Retail)
Other (3rd Party
Product)
Other (Specify)

34. DETAILS OF FLOAT AVAILABLE:


Current year position
No. of A/cs
Amount

Position during last year


Average
Outstanding as on
Balance
..

Saving Bank
Current Deposit
Term Deposit
Total
Any other ancillary business of the company / group with us:
35 a. TARIFF:

18

Item
Rate of Interest
LC charges
BG charges
Processing/TEV
other charges

Applicable charge
Cash Credit

Present charges

Proposed charges
Cash Credit

and

35 b. Comments and Recommendations on the Proposed Pricing/Charges:

36. AUDIT/INSPECTION/MEETINGS/CPA:
A

B
C
D

Last Date
Inspection
(Primary/Collateral)
Stock audit
NA
For FY:
Consortium meeting
NA
Any adverse comments of Statutory/
Internal/ Concurrent/RBI Auditors and
Borrower's Auditors
Closure of CPA (Authority & Date)
(comment
on
any
specific
direction/qualification, if any)
Insurance (Coverage, validity and
adequacy)

Remarks/observations
Satisfactory
NA
NA
NIL
CPA 2

37.1 CONFIRMATION:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.

Compliance of last sanctioned terms(if No, give details)


Security Documents are valid/in force
Proper charge on securities created in Banks favour
Last Audited Balance Sheet submitted by the company is
verified from the Balance Sheet submitted to ROC
Exposure is within Banks prudential Norms/RBI guidelines
Whether company/directors are under Banks/RBI/
ECGC/CIBIL defaulters list
Any deviation from usual norms
Whether directors are disqualified under Section 164 of
Companies Act, 2013
Any arrears in payment of statutory liabilities by the Co.
Whether status report/D&B (similar) report, if applicable,
obtained

Yes
Yes/No
Yes
Yes/No
Yes
No
Yes/No
No
No
Yes/No

19

k.
l.
M
N
O
P
Q
r
S
T

Yes/No

Auditors comments on Corporate Governance Practices


followed in case of Limited Companies
Pending litigation against/by the company (If yes details to be
given)
Whether company/directors/firms partners/proprietor are
related to Banks director/s
Whether Companys directors are directors in our
Banks/Other Banks Board
Exchange of information with participating banks has been
done in the RBI prescribed format
Whether a confirmation from the company has been obtained
regarding the status of different regulatory compliances.
In respect of restructuring proposals, flexible restructuring,
5/25 scheme, funding of cost overrun of project, etc., all
RBI guidelines have been complied with
Due Diligence carried out in terms of HOBC No 103/16
dated 22.04.2009 and amended from time to time
Whether Asset Status with other Banks as per CRILC data
No Third Party is involved at any stage of
processing/appraising the Loan/Credit facilities.

Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No

37.2 Directions of sanctioning authority in the previous sanction: N/A


Directions of the
Authority

Compliance
(If pending reasons
therefor and the road map
for its compliance)

Date by which it is
expected to be
complied

Comments / Recommendations on pending compliances:


37.3 Early warning signals observed:
1

Financial

Remarks

a) Persistent Irregularity in account


b) Defaults in repayment obligations
c) Frequent Devolvement of LC / Invocation of BG
d) Lower credit summations viz a viz Sales
e) Sales transactions not routed through CC
account
f) Declining Current Ratio
g) Operating losses / Net Losses
h) Erosion of TNW
i) Opening of accounts with non-lenders
j) Large Transactions/outstanding in related
companies.
Operational & Physical
a) Low activity level in plant

Yes / No

20

b) Disorderly diversification / frequent changes in


plans
c) Overdue bills
d) Return of outward bills unpaid / dishonored
cheques
e) Low inventory movement
f) Non-payment of wages / power bills
g) Frequent labour troubles
h) Declining profitability
i) Loss of critical and important customers
j) Frequent return of finished goods
Loss of Market Reputation
a) Court cases against the unit
b) Inability to raise supplies on usual credit terms
Attitudinal Changes
a) Avoids contact with branch
b) Non / delayed submission of data and financials
c) Fudging of financial statements
d) Dissension amongst partners / promoters
Others
a) Adverse impact on change in Govt. Policy
b) Raid by IT/Sales Tax/Excise Officials.
c) Emergence of new competitors / technology
If yes, suitable comments to be given as a separate para under Branch comments.
38. FLOW CHART:
Date of Branch Proposal
Date proposal received at ZO/HO
Date of submission to Risk Dept. for Rating
Date of receipt of Rating Report
Date proposal received at NBG
Date of receipt of Proposal at Head Office
Date of receipt of clarifications at Head Office
Remarks

39. HO/ZO/BRANCH COMMENTS/RECOMMENDATIONS (in Chronological order):

Brief Background
Auto Power, a proprietorship firm, was established in 1990 with late Mr. Dinesh
Patel as its proprietor. It was re-established by Mrs. Parinda w/o Late Mr. Dinesh
Patel in Jan12 after the demise of the husband. she has god experience of
running the business with her late husband. The firm is involved in manufacturing
& disturbing of Ac and DC drives, Distribution Panels, Battery Operated
Vehicle, Digital panel Meter, Stabilizer and other Electrical Equipment. These
products are widely used in residential and commercial purposes. Its procures

21

material from its suppliers and gets the fabrication work done from other parties.
Once the fabricated parts are received in the factory, the engineer and technicians
work is done on it to produce final product. The work done in the firms factory
involves more of human expertise than the machine work.
The firm is an authorized dealer of Fuji Electrical, Japan and also having ISO
9001:2008 certificate.
The products of the firm are:
Battery Operated Electrical Vehicles: Its includes Battery Operated Vehicles
such as Electric Vehicles-4 seater, EVS 6 seater and rough Terrain EVS.
Electric Golf Carts: Its includes Golf Carts such as Electric Vehicle-4 seater,
Electric Vehicles, Electric Golf Cart Cars and Electric Golf Cart-6 seater.
Variable Frequency AC Drives: Its include Variable Frequency AC Drives such as
Frenic Mini,Frenic Multi,Frenic Eco Power Controllers, Frenic Mega, Frenic
speed controllers, Frenic 5000 G11 and many more items.
Industrial wireless Radio Remote Controllers
APFC systems
Fuji Servo System
Temperature controllers
Control Panels
Digital Panel Meters,etc.
The firm has its administrative office at 22,virvani industrial Estate,off.Western
Express Highway, Goregaon(East),Mumbai -400063.Factory of the firm is situated
at block no.97 & 98,plot mo.24 opp. Khodiyar Temple,Chacharwadi Vasna,Talukasanand district-Ahmadabad, which is owned by the sister concern of the firm viz
Auto Power Drives(India)
Mangement:
Ms. Parinda Dinesh Patel is proprietress of the firm ,has several year of
experience of running the business with her late husband. She managing business
efficiently after the demise of her husband .She oversees the overall management
of the firm. She id adequately conversant and has vast experience/numerous
contacts in this line of business
The proprietress is assisted by qualified and experience staff. Overall
management of the firm is satisfactory.

Detail of Group Companies and their financials (Sales, PAT, TNW, CR, DER).
Banking Arrangements.
The group concern of the firm namely Auto Power Drives(India) Ltd. Has not
started any operation due to death of Mr. Dinesh Patel. At present te Auto Power is
maintaining carious current a/c & EEFC a/c with HDFC and development Credit

22

bank, Which they have closed as per last proposal. They have requested for
allowing continuation of the CD A/c with HDFC due to tax payment. We may
agree.

Separate paras for:


Credit Rating
Since the limit of the firm is less than Rs5 crs.we have carried out credit raing
exercise based on Audited B/S for FY2016 in SBS model and the firm is eligible
for Credit Rating of SBS-5(score-186)
Pricing/Rate of Interest
Facility
Applicable Charge
Cash Credit
Security
Other matters/developments.
Techno Economic Viability Study.
TEV study is not applicable as proposed limits are less than Rs 15 crs

Derivatives and Unhedged exposure (UFCE) with us/other banks, import on


pricing, mark to market details etc. to be included.

Due Diligence :
Not applicable since existing account
CIBIL:
CIBIL reports of the proprietress firm and the guarntos generated and no
adverse remarks found

Banks Policy for the sector and deviation/no deviation


Industry Perception/Risk, Qualitative & Quantitative Outlook
Cross Selling

40.

RECOMMENDATIONS (in brief):

I.

SANCTION of:
Limits
Existing
Term loan
Working capital (FB)
Non Fund Based
Total/Maximum Limit

0.50
1.00
1.50

Rs. in crore
Proposed
by ZO/Br.
0.50
1.00
1.50

Recommended by
HO

23

II.

APPROVAL FOR:
i)
ii)

III.

SUBJECT TO:
a) Pre-Disbursement terms and conditions
(i)
(ii)
b) Post-Disbursement terms and conditions
(i)
(ii)
c) All other terms and conditions proposed by Branch / ZO / NBG

41.

AUTHORITY FOR SANCTION: ZLCC


As per BC 107/163 dated 22.11.13,sanction of above credit facilitiesfalls within
delegared authority of ZLCC,MNZ
Submitted for sanction/approval, please.

Signature with Name


Designation & Date

24

ANNEXURE -1
BRANCH:
ACCOUNT :
LIMITS PROPOSED
Nature of Facility
Fund
Limits

Existing

Proposed

Margin

Effective ROI/
Commission

Based

cc-stock
cc-Book debt

0.50
0.50

0.50
0.50

Non-Fund
Based Limits
L/C-I/F(DP/DA
up to 90days)
BG-Inland

1.00

1.00

0.25

0.25

ALL OTHER TERMS, CONDITIONS AND COVENANTS, INCLUDING SECURITY


(PRINCIPAL & COLLATERAL) APPLICABLE TO THE PROPOSED FACILITIES -

We also confirm that the proposed terms/conditions have been discussed with the
borrowers and the same are acceptable to them. (In case of any disagreement, appropriate
comments should be offered.)

25

ANNEXURE - 2
BRANCH:
ACCOUNT :
SUPPLEMENTARY INFORMATION
Details of security (to be given facility wise - if common security is obtained for more than
one facility, suitable remarks to be incorporated)
PRINCIPAL SECURITY
Facility

Nature of
Security

Value of
Security

Date of
Valuation

Hypothecation
of stock
Hypothecation
of Book-Debts

1.44

As
per
stock
statement
of
April
2016

Date of
Creation of
first/Second
charge

In case of
pari-passu/
second
charge over

20%
Margin
for LC and BG
in the form of
Banks TDR
COLLATERAL SECURITY
Nature of
Security
EQM of Office
premises No
20,
Ground
floor, Virwani
Industrial
Estate, Off. W
E
Highway
bearing Survey
No 20, Hissa
No 7(p) & 8(p),
C T S No 62,
situated
at
village
Dindoshi,
Goregaon
East, Mumbai-

Owned by

Location

Valuation
Initial
Latest
Date
Date
10.06.20
13 by R
D
Ashtaput
re
&
Associat
es

Date of
creation of
first/secon
d charge

In case of
pari-passu/
second
charge over

26

400060

Immovable properties (existing) already mortgaged to our Bank: CERSAI registration


date to be mentioned separately.
0
For credit exposure of Rs.5.00 crore and above, legal audit of Title documents is
required in terms of guidelines laid down under IOM No. HO/I&A/RSP/573 dated
21.08.2014.
Note : In case of delay in creation of stipulated security, creation of first or second charge,
suitable explanation to be given and specific approval to be sought.

ANNEXURE - 3
BRANCH:
ACCOUNT :
SUPPLEMENTARY INFORMATION
STATUS OF SECURITY DOCUMENTS, ADEQUACY AND VALIDITY OF INSURANCE,
REGISTRATION OF CHARGES
S.No
1.

Particulars
Whether security
:
documents including the charge
documents are properly
executed and are in order
Validity of security documents :
Facility

3
4
5

Yes/No *

Existing limit

Whether other documents/ :


undertakings/declarations, obtained as per the
terms of sanction
Date of search in the files of Registrar of
Companies last taken
Whether all our charges are properly registered
with requisite priority and certificates held by
Branch.

Documents in force upto


(Date)

Yes/No *

Yes/No *

27

Whether insurance cover for assets including


collateral security charged to the Bank is
adequate, covers all required risks, in force and
assigned/obtained in Bank's favour.
Irregularities reported by internal/ external/
statutory auditors in documentation, insurance,
registration of charges and steps taken for
regularising the same.
Please also confirm that deficiencies reported will
not affect safety of Bank's funds.
Irregularities reported in Stock Inspection Report

Irregularities reported in LIE Report

10

Comments on Minutes of the Consortium

* If not, indicate irregularities and steps taken for rectifying the same.

ANNEXURE 4
Branch:
Group's liabilities with us (including this Borrower Company) ON GLOBAL BASIS
(Exposure at overseas branches may be mentioned in both domestic currency and Rupee equivalent) :
Name of Account
(last San. & Auth)

1.

Limits
Funded
NonFunded
2.

3.

Conduct of
Account

Asset
Code/
Credit
Rating

4.

5.

Our share
in
consortium
/ MBA
advance
6.

Our Investment
in Equity/Deb. &
CPs of the
Co./Lease
Finance
7.

Total
Exposure
in the
Co/Lease
Finance.
8.

Maximum
Exposure as
per norms *
9.

(Rs. in Crore)
Sales
PBT/
Sales
(%)
10.

11.

Bank's exposure to Company:

Bank's exposure to Group:

Within Bank's Norms as per RBI Guidelines : Yes/No


(If not reasons for exceeding the norms)

Within Bank's Norms as per RBI Guidelines : Yes/No


(If not reasons for exceeding the norms)

DER

CR

12.

13.

(Brief comments on conduct of Group accounts with us)

* (100% funded limits & investment in Equity/Pref. Shares/Debentures, Lease Fin., CPs, etc. plus 100% of Non-funded limits)
** (Bank's Norms : as per RBI guidelines
For Borrower : 15% (20% for infrastructure)of Bank's Paid up Capital & Free Reserves
For Group
: 40%(50% for infrastructure) of Bank's Paid up Capital & Free Reserves)

Annexure - 5
Checklist for sanction/approval of ____________
BRANCH/ZONE:

Date:

Sanctioning authority
(Credit Committee)
Category of Proposal
Asset code/Classification
Name of Project company/SPV/Borrower
Company/Firm
Name of Promoter/Group
Banking Arrangement
(Sole/Consortium/Multiple)
Lead Bank and its share
Our bank share
Status of Rating
-External(Date)
-internal(Date)
Total Project Cost
Total Debt
Existing/Proposed Loan from BOI
General Compliance:
S.N. Check-list
1
2
3

4
5
6

RBI Policy Compliance


Banks Loan Policy Compliance.
Whether exposure
(intenal/regulatory) norms complied
with
- Individual
- Group
Whether Sectoral Ceiling norms
Complied with
Whether exposure is within hurdle \
(entry Level) internal/external rating
In case of existing borrower with our
bank Whether existing security
(primary & Collateral) is created &
Perfected as per terms of sanction

Whether security document vetting is


done and documents are in force for
existing credit facilities

Compliance
Status
Yes/No

Remarks

30

Legal Vetting:
Vetting of security document by panel
advocate (Date of vetting in case of
existing accounts)
Status of compliance of existing
terms of sanction. If not, Complied
status to be given.

Due Diligence
S.N. Check-list
1

2
3

4
5

Whether Pre sanction/ post sanction


visit done(Latest date of inspection to
be furnished in remarks)
Site inspection:
Visit of Project/Plant site
(Date of visit/findings)
Visit of Residence of Promoters
(Date of visit /Findings)
Verification of assets
Charged/proposed to be charged to
our bank
(Date/Findings)
Whether Exchange of information
with existing lenders done
Status of verification of Latest RBI
Defaulter List (As of September
2014) and Wilful Defaulter List (as of
September 2014)
Status of latest CIBIL /ECGC
SAL/SMA verified(Date of verification
to be mentioned in remarks)
Verification of Audited Balance Sheet
for companies registered under the
companies act from MCA and/or
BSE/NSE
Website(For
listed
companies)
Verification of Directors and DIN no
From MCA website

Compliance
Status
Yes/No

Remarks

31

Project Term Loan (as applicable except power and Road Sector Accounts):
S.N. Check-list
1
2
3
4
5
6
7
8
9
10
11
12
13

14

15

16

Whether project fulfils banks Sector


policy Norms (if policy guidelines for
specific sector are in place)
Whether Adequate Land has been
acquired
Whether orders with suppliers placed
Whether Due diligence has been
carried out on suppliers of machinery
as per guidelines in place
Whether environmental Clearance
and consent to establish /operate
obtained from pollution control board
Whether arrangement for power
supply requirement is in place
Whether arrangement of water
supply requirement is in place
Industrial License/SIA
acknowledgement/Registration/SSI
Registration
Whether Raw material Sourcing in
place
Whether Marketting/Selling
arrangements/tie up in place
Whether technical Know how and
key technical persons are in place
Whether Lenders Engineer is
appointed (if applicable)
Key project parameters
a) Debt/equity Ratio(DER)
b) Debt Service Coverage
Ratio(DSCR)
Scheduled Commercial operation
Date
-Revised COD, if any

Status of project implementation


-Physical Progress
-Financial Progress
(as per latest Lenders engineer
Report, if applicable)
Other issues, If any (please specify)

Compliance
Status
Yes/No

Remarks

32

Power Sector: (Additional Check-list):


Sr.
No
.
1
2
3
4
5
6
7
8
9

10

11
12
13
14

15

Particulars

Status (Yes/No)

Whether Project fulfills Banks


Power Sector Policy norms
Whether Fuel Supply Agreement
has
been
executed
with
Suppliers
What is the Source of Fuel?
Domestic or imported
What is the mode of Transport
and its viability
Whether Fuel cost is PassThrough
Whether the Power Purchase
Agreement has been executed
Whether the PPA has been
executed with DISCOMs
Whether the PPA has take or
pay arrangement
Whether adequate evacuation
infrastructure i.e. Transmission
line and Grid substation is
available.
Whether adequate sources of
water
supply
is
there.
Comments on distance and
Right of Way (Row)
Major Suppliers of equipment
India/Chinese/Others
Track record of the Promoter
Group with BOI
Status of Land Acquisition
Key Project Parameters
As
per As
on
A Debt /Equity Ratio (DER)
banks
31.03.20__
B Debt Service Coverage policy
Ration(DSCR)
C Scheduled Commercial
Operation Date Revised COD, if
any
Status of Project Implementation
-Physical Progress
-Financial Progress
(as per latest Lenders Engineer
Report)

Remarks

33

16
17

18

19
20

21

22
23

Whether
the
Environment
Clearance has been obtained
Whether there is any deviation
with reference to guidelines, if
yes, whether the same has been
clearly indicated
Solar / Wind Power Project
(Additional for the sector)
Status of Land Acquisition
a-Defence Land
b-Forest Land
c-Connectivity and location
Insolation Studies in case of
Solar/wind Studies in case of
Wind Power carried out
Whether the site where solar
power project is being setup has
been identified by Ministry of
New and Renewable energy
(MNRE). Solar energy Centre
and renewable energy ministry
of
the
respective
state
governments (Solar Project)
Whether the site where windmill
project is setup has been
identified by Ministry of NonConventional energy Sources/
C-WET (Centre for Wind Energy
Technology) (Wind Mill Project)
Transmission
Project
(Additional for the sector)
Whether Transmission Service
Agreement has been executed
Whether EPC contract executed
Major supplier of equipment
India/Chinese/Others

34

Working Capital (as applicable):


S.No
1
2

3
4

5
6
7

8
9

Particular
Status (Yes/No)
Whether
Sole/Consortium/Multiple
In case of consortium,
whether assessment as done
by Lead Bank has been
approved by consortium
Whether Lead Bank has
approved enhancement as
per assessment
Whether
all
the
items
considered
for
arriving
drawing power has been
proposed/approved

Remarks

Whether enhancement with


our bank is proposed as per
existing share (%share)
Whether the holding levels
are in line with the past
Whether Stock Audit is done
as per Banks guidelines and
Stock Audit report (Date of
latest stock audit and major
irregularities to be mentioned
in remarks)
Date of last inspection carried
out (our bank/consortium
member bank)
Date of last consortium
meeting held
Initiated By

Officer-Credit Department
PF No:
Head Office Comments:

Verified by

Asstt. General Manager


PF No:

Approved by

Deputy General Manager


PF No:

35

GLOSSARY:
Short Name
AC
ACR
BEP
BC
BG
CAP
CR
CCR
CPA
COD
COP
DER
DSCR
DL
ECB
FCL
FACR
FBL
FITL
FG
IRAC
IRR
ISCR
JLF
LC
LOC
MPBF
MOF
NFBL
NWC
PAT
PCFC
PUC
PG
ROI
SMA
SDR
STL
TL
TNW
TOL
UFCE
WC
WCDL
WCTL

Abbreviation
Asset Code
Asset Coverage Ratio
Break Even Point
Buyers Credit
Bank Guarantee
Corrective Action Plan
Credit Rating / Current Ratio
Collateral Coverage Ratio
Credit Process Audit
Commercial operation Date
Cost of Project
Debt Equity Ratio
Debt Service Coverage Ratio
Drawing Limit
External Commercial Borrowing
Foreign Currency Loan
Fixed Assets Coverage Ratio
Fund Based Limit
Funded Interest Term Loan
Financial Guarantee
Income Recognition Asset Classification
Internal Rate of Return
Interest Service Coverage Ratio
Joint Lenders Forum
Letter of Credit
Line of Credit
Maximum Permissible Bank Finance
Means of Finance
Non-Fund Based Limit
Net Working Capital
Profit after Tax
Packing Credit in Foreign Currency
Paid up Capital
Performance Guarantee
Rate of Interest
Special Mention Account
Strategic Debt Restructuring
Short Term Loan
Term Loan
Tangible Net Worth
Total Outside Liability / Temporary Over Limit
Unhedged Foreign Currency Exposure
Working Capital
Working Capital Demand Loan
Working Capital Term Loan

36

WCFB
WCNFB

Working Capital Fund Based


Working Capital Non-Fund Based