SBB - Renewal Propsoal - R. S. A. Knit India - Ludhiana - June 2017

M/s R.S.A.
Knit India, Ludhiana – Renewal Proposal
BUSINESS BANKING LOAN (up to Rs 200 Lacs)

EXISTING RELATIONSHIP – PROPOSAL FOR APPROVAL OF CREDIT FACILITIES
Basic Information Sheet
Name M/s R.S.A. Knit India

Constitution Proprietorship Firm
Name of Promoters Name Relationship PG
Akshay Jain Proprietor Yes
Type of Proposal Renewal
Cust ID 33201309
Line of Activity Manufacturing
Nature of Business Manufacturing of hosiery goods and knitted fabrics
Registered Office / Factory Office; 1709, Mohalla Bandian, Ludhiana
Statutory Registrations PAN:ASSPJ2200P / VAT:03922099015
Industry (CODE) YO
External Rating NA
Internal Rating & Scoring Internal Rating: SBB4
Score: 47
Group Nil
Segment Small Business Banking
Priority Sector NPS
RM/RSM/CA Sumit Jain/ Dheeraj Kumar/ Kapil Bansal
RH/ZH Sandeep Gupta / Sunil Aswal
Date of last Sanction 22.04.2016
Due date of next Renewal 12 months from date of last sanction
Banking Arrangement Sole Banking
Point of Sanction ZCC
Request & Rationale
The company/firm is availing credit facilities from us since April 2016 and have requested for renewal in
credit facilities as under:-
INR in Lakhs
Facility Renewal Enhancement Proposed Proposed
Total Pricing
Cash Credit 50.00 0.00 50.00
Total 50.00 0.00 50.00
Group Exposure
Brief details of Group Concerns ownership

Name of group company Constitution Promoters Line of Activity Established
Since
M/s Anoop Oswal Hosiery Proprietorshi Sh. Anoop Jain Mfg. of Hosiery Goods & FY 2004
p Knitted Fabrics
M/S RSA Knit (India) Proprietorshi Sh. Akshay Jain Mfg. of Hosiery Goods & FY 2011
p Knitted Fabrics
Key Financials of Group Concerns

Name of group company Sales EBITDA PAT TNW Total TD/
(Fy16) debt EBITA
M/s Anoop Oswal Hosiery 703.34 52.22 10.08 195.46 244.64 4.68
M/S RSA Knit (India) 316.77 15.13 7.32 22.43 167.20 11.05
1
M/s R.S.A. Knit India, Ludhiana – Renewal Proposal
Banking Relationship
Name of group company Name of Bank Nature of Credit Facilities
M/s Anoop Oswal Hosiery IndusInd Bank Ltd. CC limit- 220 lacs, TL- 99.56lacs
M/S RSA Knit (India) IndusInd Bank Ltd. CC limit- 50 lacs
Inter firm transactions:
Particulars FY 2016 FY 2017

Purchase from Anoop Oswal Hosiery 29.77 19.74
Rent paid to Anoop Oswal 0.60
Eligibility
ELIGIBILITY CRITERIA:
S. Y/N
No. Primary Parameters Remarks
1 Is collateral under Negative List N Industrial Property
2 Customer's principle place of business & collateral offered Y Ludhiana
is at approved location
3 Borrower Score <=40 Y Score is 47.
4 Default History (Sub-standard / Wilful Defaulter)* N Standard
* as per the CIBIL report / RBI willful defaulter’s list / Red Flagged Account (RFA) as per CRILIC. The
account should not be restructured account / SMA-II
Note: There should not be any deviation in any of the Primary parameters.
S. Other Parameters Deviation Actual Remarks
No. -Y/N value
1 Is the borrower under Negative Industry/ N Manufacturer Complied
Segment
2 Entity has 3 or more years business vintage N >3 years Complied
3 Profitability N 7.17 Complied
4 Credit summation for last six months is 75% or N 100% Complied
more of sales turnover
5 Inward cheque return due to insufficient funds is N 1 Complied
<=10.
6 Gearing <=4 (for traders & service 5) N 3.88 Complied
7 Leverage <=6 (for traders & service 7) N 6.82 Not Complied-1
8 Age of the promoter is between 25 to 70 years N 25 yrs Complied
9 Collateral coverage as per Product N 90.1% Not Complied-2
(1) The client had installed new machinery in the business to the tune of Rs. 160 lacs against loans from
NBFC’s due to which leverage ratio is high. The client will retain profits in the business which will improve
the leverage ratio in FY18.
(2) Minimum required DSV cover is 100% due to CR<1 against which available DSV cover is 90.01%
Security Template:
DETAILS OF SECURITIES OFFERED

Primary Security:
First and exclusive charge on entire current assets and Fixed assets of the company both INR Lakhs
present and future. Charges to be registered with ROC.
2
Collateral security; Equitable mortgage of following properties

Address Industrial Plot of Land bearing M.C. No. B-XXV-539/136/5/5&6 (Old) & B-
XXV-G-4/87&88 (New), Street No. 10, Opp. Amar Sweet Shop, New
Shivpuri, Ludhiana
Type Industrial Land and Building
Owner Sh. Anoop Jain S/o Sh. Shri Pal Jain and Smt. Neha Jain W/o Sh. Anoop Jain
thru (i) Sale deed dated 10.07.2009 bearing vashika no 5427 for property
admeasuring 110 square yards and comprised of Khata no 524/540 Khasra
no 941/824/676/200 as entered in the Jamabandi for the year 2006-2007 of 337.80
Taraf Sekhewal Hadbast no 78 Tehsil and District Ludhiana and (ii) Sale
deed dated 10.07.2009 bearing vashika no 5425 for property admeasuring
263 square yards and comprised of Khata no 524/540, 525/541 Khasra no
941/824/676/200, 942/825/676/200 as entered in the Jamabandi for the
year 2006-2007 of Taraf Sekhewal Hadbast no 78 Tehsil and District
Ludhiana
Area 110 sq. yards and 263 sq. yards i.e. 363 sq. yards
Usage Manufacturing Unit
Collateral security; Equitable mortgage of following properties
Address Industrial Plot of Land bearing M.C. No. B-25-1133/A/B, Bank Colony, Opp.
Maggu Karyana Store, New Shivpuri, Ludhiana.
Type Industrial Property
Owner Smt. Neha Jain w/o Sh. Anoop Jain thru (i) Sale deed dated 17.05.1999
bearing vashika no 4532 for property admeasuring 199 square yards and 161.10
comprised of Khata no 739/776 Khasra no 945/761/714/356 as entered in
the Jamabandi for the year 1996-1997 of Taraf Sekhewal Hadbast no 78
Tehsil and District Ludhiana
Area 199 sq. yards
Usage Manufacturing Unit
Total Value of collateral (Whether common with the group concern) - Yes 498.90
5% FDR cover as per SBB policy 2.50
Personal Guarantees of all the directors /shareholder and property owners which necessarily
include personal guarantee of :
Name of the Guarantor PAN DOB Age Designation
Anoop Jain ABDPJ6829Q 02-11-1969 48 Proprietor
Akshay Jain ASSPJ2200P 15-01-1992 25 Guarantor
Neha Jain ABDPJ7008D 15-08-1970 47 Guarantor
Valuation Details as per last approval:

Details of Properties Valuation Valuation Average Lower Latest
1 2 Value Value Valuation
Industrial Property (373 sq. yards) 328.25 337.80 333.03 328.25 337.80
Industrial Property (199 sq. yards) 152.38 161.10 156.74 152.38 161.10
Date of valuation 21.03.2016 21.03.2016 11.05.2017
Valuer Cube Aakar Aakar
Computation of Unsecured Exposure:

Sr Collateral Offered Group Anoop Oswal RSA Knit
. Gross Hair DSV Gross DSV Gross DSV
No Value cut Value Value
3 Industrial (373 sq. yards) 337.80 40% 202.68 300.00 180.00 37.80 22.68
4 Industrial (199 sq. yards) 161.10 40% 96.66 128.00 76.80 33.10 19.86
5 Cash Margin 2.50 0% 2.50 0.00 0.00 2.50 2.50
256.8
Total 501.40 301.84 428.00 0 73.40 45.04
Total Limit 414.56 364.56 50.00
DSV of Security 301.84 256.80 45.04
% of limit covered 72.8% 70.40% 90%
Net Asset At Risk 27.20% 29.60% 10%
3
Group Exposure against above collaterals security
Sanctioned Exposure Proposed Exposure Minimum DSV

Name of the Group
Concerns Funde
Funded NFB Total NFB Total Required Available
d
Anoop Oswal Hosiery 350.54 0.00 350.54 364.56 0.00 364.56 70% 70.4%
RSA Knit (India) 50.00 0.00 50.00 50.00 0.00 50.00 100% 90%
Total 400.54 0.00 400.54 414.56 0.00 414.56
Background of Company & Promoters
The Group & Company:

M/s R.S.A. knit India is a proprietorship firm of Mr Akshay Jain established in 2011 and engaged in
manufacturing of all hosiery goods and knitted fabrics.
The client is also having a group concern namely M/s Anoop Oswal Hosiery - proprietorship firm of Mr
Anoop Jain, established in 2005. This concern is engaged in manufacturing of hosiery goods and knitted
fabrics.
The manufacturing units of the group concerns are located at;
 Industrial Plot of Land bearing M.C. No. B-25-1133/A/B, Bank Colony, Opp. Maggu Karyana Store,
New Shivpuri, Ludhiana.
 Industrial Plot of Land bearing M.C. No. B-XXV-539/136/5/5&6 (Old) & B-XXV-G-4/87&88 (New),
Street No. 10, Opp. Amar Sweet Shop, New Shivpuri, Ludhiana.
 G-5-300, Sekhewal, 60ft Road, Near PNB, New Shivpuri, Ludhiana
The Promoters/management:
Akshay Jain: Mr Akshay Jain is 25 years old. He had joined family business in year 2011 after completing
his studies and opened new firm under the name in year 2011. He is looking after overall business under
this firm.
Mr Anoop Jain: Mr. Anoop Jain is 48 years of age and is graduate. He had started this business of
manufacturing of fabrics in FY2004-05. He is proprietor under the firm M/s Anoop Oswal Hosiery. He is
looking after the overall business and having experience of around 12 years in this line of activity.
The Firm has total staff strength of 50 persons in both group firms deployed under manufacturing process
and dispatching process.
Unit Visit:
The unit was visited by RM Sumit Jain along with CA Isha Goel and found satisfactory set up.
Business Model &Product Line of the firm
Business Model:
1. M/s R.S.A. Knit India is a proprietorship concern owned by Mr. Akshay Jain.
2. Firm is engaged in to Manufacturing of knitted fabrics and hosiery goods.
3. Firm purchases major raw material i.e. yarn from various mills located in Ludhiana, majorly
through agents.
4. Client is procuring material direct from domestic traders also as per business requirement.
5. Client is availing credit period of around 60-90 days from suppliers, client has to bear extra
cost to avail higher credit period.
6. Firm has staff strength of around 50 employees combined in both firms, who are engaged in
to manufacturing, finishing and dispatching of goods.
4
7. Firm is offering credit period of around 3 months to buyers.

8. Client has to carry good stock of raw material (yarn) of different colours for smooth
functioning, which is indispensable as per nature of business.
9. Client is dealing in to vide variety of designs under knitted yarn as per orders of the buyers
thus has to carry higher stock to meet immediate requirement of the buyers.
10. Client is supplying finished goods majorly to manufacturers of hosiery goods in the south
market. Client has good business vintage thus having long relationship with these buyers and
regular orders.
11. Major USP of the client is timely supply of material and maintaining good acceptable quality to
the buyers.
Product Line:
Manufacturing of Hosiery goods and knitted fabrics
Top 3 Debtors (as per last audited financial):

S Name of Debtors Outstanding % of Total Years of
L (Rs in Lacs) Sales. Relationship
1 S. K. Oswal Hoisery 18.25 5.8% 6
2 Jainson Creation 11.74 3.7% 6
3 Rankson Oswal Hoisery 7.88 2.5% 6
Total 37.87
Total Outstanding Debtors 53.64
Top 3 Creditors (as per last audited financial):

S Name of Creditors Outstanding % of Total Years of
L (Rs in Lacs) Purchases Relationship
1 Parashnath Spin & Knitfab Limited 40.03 13.4% 6
2 Anoop Oswal Hoisery 34.92 11.7% 6
3 BMV Exim (P) Limited 5.27 1.8% 6
TOTAL 80.22
Total Creditors’ outstanding 83.70
CIBIL Check /ECGC /RBI List of defaulters
Type of CIBIL Match Enquires

Remarks
Check Found reported
Consumer
Sh. Anoop Jain Yes 146 There is DPD of 22 day in Sep2016 in LAP of Rs. 22.13 lacs
Sh. Akshay Jain Yes 66 and LAP of Rs. 330.29 lacs. The client had informed that
Smt. Neha Jain Yes 88 due to heavy business engagements m/o Sep & Oct and
the payments were not being received regularly, the
instalments got delayed by some days which were cleared
later on. There are DPD’s of 30 days from Aug15 to Mar16
and again in Sep16 in CV Loan form IBL for Rs. 1.55 lacs.
As discussed with borrower there is overdue of Rs. 3298
which was paid in April 16 and now loan is running regular.
All other loans are running regular.
Commercial :
M/s Anoop Oswal Yes 24 There is settled and closed status appearing in CC a/c and
Hosiery 2 MTL’s takeover from SBOP. According to client, he has
paid all the dues to the bank at the time of takeover of
limits by IBL. All other Loans are running regular.
M/s RSA Knit (India) Yes 16 There is settled and closed status appearing in CC a/c
takeover from SBOP. According to client, he has paid all
the dues to the bank at the time of takeover of limits by
IBL. All other Loans are running regular.
Whether company /any directors appears on the latest RBI defaulters list or SAL of ECGC No
Whether company/any of its directors face litigation from Banks/FI No
5
Whether the directors /partners /senior executives of the company or their relatives are
No
connected with the bank or directors in any other bank
Whether commission has been paid to guarantors for extending their guarantee for the
No
advance
Whether the company/firm/directors /guarantors appearing in watch out investors.com No
Auditor qualification : Nil
(Supporting documents attached along with the note)
Compliance
Particulars Y/N Remarks
Whether all terms of sanction complied with No
Whether all prescribed documents obtained? Yes
Whether necessary exchange of pari passu letters/inter se NA
agreement has been completed
Whether our charge with ROC has been filed NA
Whether stock statements/QIS forms are regularly submitted Yes
If not, whether Penal interest is charged for delayed submission NA
Whether Insurance is available for all the securities charged to the Bank and the same Yes
is valid as on date and adequate
Whether branch is carrying out unit inspections at the prescribed periodicity and Yes
preparing unit visit reports
Whether any adverse observations during inspections, if so, details. No
Whether irregularity reports have been submitted to Corporate Office in time? NA
Details of Previous Sanction Term not complied

Sanction Term of Last Sanction Remarks
Undertaking from the borrower that unsecured loans from As per ABS 16, the unsecured loans
partners, family members, associates and friends shall be are maintained at the level of Rs
retained in the business at a minimum level of Rs.20.00lacs 16.40 lacs & TNW is maintained at
during the currency of bank limits and shall be subordinate to the level of Rs 22.43 lacs.
bank’s dues. However ATNW has been increased
The firm shall undertake to maintain capital at minimum level to the level of Rs 38.83 lacs in FY 16
of Rs 49.21lacs during the currency of bank limits. from Rs 27.21 lacs.
Pending Audit Comments (Concurrent/ Internal/ Statutory/ Quality Audit/RBI)

Nature of report Pending Comments Present Position
and date of report
Nil
Key Financials
Financial Analysis
Financial Year FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18
Type of Accounts Audited Audited Audited Provisional Projected
Profit & Loss A/c
Total operating Income 165.74 206.42 316.77 457.69 600.00
Sales Growth Rate - 24.54% 53.46% 44.49% 31.09%
CAGR- Sales - 24.54% 38.25% 40.30% 53.55%
Gross Profit 15.20 18.90 29.14 72.60 75.00
Gross Profit % 9.17% 9.16% 9.20% 15.86% 12.50%
EBIDTA 9.65 9.75 15.15 51.10 48.50
EBIDTA% 5.82% 4.72% 4.78% 11.16% 8.08%
PBT 5.08 5.52 7.87 6.10 11.00
PBT% 3.07% 2.67% 2.48% 1.33% 1.83%
PAT 4.70 5.26 7.02 5.70 9.80
PAT% 2.84% 2.55% 2.22% 1.25% 1.63%
PAT with NOI/E 4.70 5.26 7.17 5.70 9.80
PAT with NOI/E% 2.84% 2.55% 2.26% 1.25% 1.63%
6
Interest Coverage 2.19 2.38 3.57 2.43 2.77

Balance Sheet Analysis
Total Current Assets 124.57 143.66 121.40 208.56 205.11
Total Current Liabilities 102.14 135.91 167.31 246.43 240.24
Total Term Liabilities 10.00 15.20 113.76 95.73 67.49
Total Outstanding Liabilities(TOL) 112.14 151.11 281.07 342.16 307.73
Total Debt 39.84 46.26 167.20 168.92 145.73
TNW 13.31 17.21 22.43 30.00 32.00
TNW (Adjusted) 23.31 27.21 38.83 49.40 51.40
TOL (Adjusted) 102.14 141.11 264.67 322.76 288.33
Total Debt(Adjusted) 29.84 36.26 150.80 149.52 126.33
Current Ratio 1.22 1.06 0.73 0.85 0.85
Leverage 8.43 8.78 12.53 11.41 9.62
Gearing 2.99 2.69 7.45 5.63 4.55
Leverage (Adjusted) 4.38 5.19 6.82 6.53 5.61
Gearing (Adjusted) 1.28 1.33 3.88 3.03 2.46
Total Debt / EBIDTA 4.13 4.74 11.04 3.31 3.00
Stock days 99.89 64.99 82.36 76.25 59.10
Debtors days 175.19 192.03 56.92 96.23 71.18
Creditors days 172.15 199.08 138.50 162.52 107.76
Working Capital Cycle 102.94 57.94 0.78 9.96 22.51
YTD Performance:
FY16 FY17
Particular YTD Correspondin Net Particulars YTD Corresponding Net
s (present g YTD change (present YTD (Previous change
year) (Previous year) Year)
Year)
Q1 9.40 21.73 -56.7% Q1 33.96 9.40 261.3%
Q2 17.77 21.50 -17.3% Q2 103.20 17.77 480.8%
Q3 125.32 46.58 169.0% Q3 189.52 125.32 51.2%
Q4* 164.28 116.61 40.9% Q4 128.87 164.28 -21.6%
Total 316.77 206.42 53.5% Total 455.55 316.77 43.8%
(*) There is difference of Rs. 78.82 lacs in sales as per Vat 15 and as per books in FY16. The difference is
adjusted in Q4 sales of FY16. The same has been verified from VAT 20 as well.
The client has achieved sales of Rs. 136 lacs till 15.06.2017.
Key Financials – Comparison

Parameter FY 15-16 FY 15-16 FY 16-17 FY 16-17
Provisiona
l Audited Projected Provisional
Sales 325.00 316.77 350.00 457.69
TNW 49.21 22.43 54.00 30.00
ATNW 69.21 38.83 79.00 49.40
Gearing 2.06 3.88 1.81 3.03
Leverage 3.55 6.82 2.92 6.53
Current Ratio 1.07 0.73 1.06 0.85
Gross Profit 29.00 29.14 32.50 72.60
EBIDTA 19.00 15.15 20.50 51.10
PAT 1.80 7.02 4.70 5.70
7
Comments on Financial Indicators:

Turnover Growth Turnover is reflecting growth on y-o-y basis. Turnover has increased from
Rs. 206.42 lacs in FY2015 to Rs. 316.77 lacs thereby registering growth of around
53.46%. In FY17, the client had achieved growth of around 44.49% with sales
turnover of Rs. 457.69 lacs. Client is having regular orders in hand during the year
and supplying material in all over India. Further, the client expects that with
implementation of GST, the sales of the firm will reach upto 600 lacs
Profitability EBIDTA and PAT margin are 4.78% and 2.26% respectively for FY2016 which are
Margin within the acceptable norms.
Promoter’s Equity During FY16, TNW has been increased from Rs 17.21 lacs to Rs 22.43 lacs. The
client also has unsecured loans worth Rs 16.40 Lacs which shall be retained in the
business and are to be treated as quasi equity.
Gearing & Gearing stands at level of 3.88 times in FY2016 which is well within the acceptable
Leverage norms. However leverage stands at the level of 6 82 times. The reason for the
same is that the client has installed machineries worth Rs.163 lacs and all the
amount is raised through term loans from various NBFC’s. The same has been
repaid regularly and is proposed to decrease to 5.61 in FY18.
Repayment ICOR stands at 3.57 times for FY2016 which is within the acceptable norms. The
capacity Current Ratio of the firm stood at level of 0.73 in FY16. The decline in CR is due to
purchase of fixed assets due to which the short term liability of the prop.
increased.
BANKING AND CREDIT HISTORY
Bank statement analysis:
We have assessed last 6 months bank statements of cash credit limits with IndusInd Bank and other bank
statement if any and below mentioned is the summary:
S Month SUM - IBL CC Cheque Retn. Utilisation Net CC

L Dr Cr Out In Min Max AVG Dr Dr Cr
1 Oct-16 47.09 51.81 0 0 44.93 49.89 48.30 47.09 51.81
2 Nov-16 21.80 23.18 0 0 39.78 49.18 43.19 21.80 23.18
3 Dec-16 21.46 22.22 0 0 41.15 47.71 44.73 21.46 22.22
4 Jan-17 18.51 27.12 0 0 28.39 47.27 42.25 18.51 18.52
5 Feb-17 35.95 25.42 0 0 29.60 45.16 38.63 35.95 25.42
6 Mar-17 63.45 65.27 1 0 28.43 49.28 45.90 63.45 55.82
Total 208.26 215.02 1 0 28.39 49.89 43.83 208.26 196.97
7 Apr-17 38.09 33.33 1 1 41.49 49.45 46.08 38.09 33.33
Details of Cheque Return

Inward Returns Outward Returns
Date Amt Reasons Paid Date Amt Reasons Realised
06.04.201 Non Financial Financial
10.04.2017 16.03.2017 0.50 20.03.2017
7 0.78
13.04.2017 0.25 Financial -
Details of TOD / Adhoc

Date of TOD / Date of
Amt Day Valid up to Date of Adj. Delay
Sanction ADHOC Disb.
10.05.2016 TOD 5.00 5 days 10.05.2016 15.05.2016 14.05.2016 Nil
21.07.2016 TOD 5.00 5 days 21.07.2016 26.07.2016 28.07.2016 2 days
31.08.2016 TOD 5.00 5 days 31.08.2016 05.09.2016 07.09.2016 2 days
Pending Deferrals- Nil
8
Comments:
 Total credit summation (combined) as per the last 6 month is ~ INR 196.97 lacs and the same is
61 % of the turnover for the same period. Approx. 66% of the total sales were done in Q4 of
FY17. Considering the debtors period of 3-4 months the credit summation comes to be more than
100% of turnover of Q2 and Q3 of FY17. The credit summation in IBL CC during last 12 months
ending April 2017 is Rs 427 lacs which is about 100% of the corresponding period sale.
 There is 1 inward return for Rs 0.78 lacs & 2 outward returns for Rs 0.75 lacs as reflected in last 6
months statement. The inward returns were due to non-financial reasons.
 The average utilisation of limits was INR 44.15 lacs i.e. ~ 88% of the limit.
 Overall account conduct is satisfactory and there is no incidence of non-service of interest seen.
 The client had availed 3 TOD’s during the review period; out of which 2 TOD’s were delayed by 2
days each. The client told that due to late realization from debtors and cash crunch, adjustment
got delayed.
Term Loan details:
The details of term liabilities with other banks/FI/Indus ind bank

Name of Loan Type of Loan Sanctio EMI Teno Date of Principa
Financer Amoun n on r Last l OS as
t Instalmen on
(Rs in t 31.05.1
lacs) 7
26,354.0 2.41
Bajaj Finserv 7.14 Business Loan 2-Apr-15 36 m 2-Mar-18
0
Machinery 1-Sep- 55.59
DHFL 75.55 183,738.00 60 m 10-Aug-20
Loan 15
35,157.0 4.16
ICICI Bank 10.00 Personal Loan 8-Jun-15 36 m 5-Jun-18
0
Intec Capital Machinery 91,101.0 30.92
39.59 5-Jan-16 60 m 05-Dec-20
Ltd Loan 0
33,908.0 8.45
Capital First Ltd 9.00 Personal Loan Jan-17 36 m 05-Feb-20
0
Total 101.53
All the EMIs are regular and reflecting in the bank statement and have been marked in the statement
submitted to credit
Reference Check - NA
Assessment of Proposed Facilities
FY 14-15 FY 15-16 FY 16-17 FY 17-18

Year / Financials Audited Audited Provisional Projection
Sales 206.42 316.77 457.69 600.00
Sales Growth 24.54% 53.46% 44.49% 31.09%
CAGR of past 2 years 38.25% 48.91%
Turnover for assessment 595.00
Working capital finance eligibility 119.00
9
Recommendation
Declaration:
1. The proposal is recommended under SBB PDD, which is valid up to……….

2. We have gone through the DOP as currently in force and having done so, confirm that the approval of
the above proposal falls within the authority of ZCA.
Submitted for approval.
Name: Kapil Bansal

Credit Analyst – BBG (P&H)
Recommended for approval
Name: Sumit Jain/ Dheeraj Kumar Name: Sandeep Gupta Name: Sunil Aswal
RM/RSM RH ZH
10
MEMORANDUM BY FOR SANCTION / APPROVAL OF FACILITIES BY ZCC:
Managem Medium  M/s R.S.A. knit India is a proprietorship firm of Mr Akshay Jain. Firm was
ent Risk started in year 2011. Firm is engaged in manufacturing of all hosiery goods
and knitted fabrics. Firm is operating from 1709, Mohalla Bandian, Ludhiana.
Mr Akshay Jain joined family business in 2011 after completing studies and
opened new firm in name of M/s R.S.A Knit (India).
 Mr Anoop Jain father of Akshay Jain is proprietor of M/s Anoop Oswal
Hosiery. He is looking after the overall business and having rich experience
of around 2 decades in this line of activity.
Business Medium  M/s R.S.A. Knit India is a proprietorship concern owned by Mr. Akshay Jain.
&  Firm is engaged in to Manufacturing of knitted fabrics and hosiery goods.
Industry However majority of the top line of the firm remained of fabrics (as the same
Risk is validated under tax free sale as per Vat returns).
 Firm purchases major raw material i.e. yarn from various mills located in
Ludhiana, majorly through agents.
 Client is procuring material direct from domestic traders also as per business
requirement.
 Firm is having common business premises with group concern M/s
Anoop Oswal Hosiery. Stock and machinery are also common.
Financial Medium  Top line of the firm is on increasing trend since last three years and the firm
Risk has surpassed the estimated turnover of Rs350lacs in Fy17 (Actual
Rs458.93lacs).
 In CFY the firm has reportedly achieved a YTD sale of Rs136lacs till
15-06-17 which is about 377% higher vis-à-vis corresponding period sale of
Rs28.33lacs Fy17 (on pro-rata basis Q1 sale Rs33.96lacs). With the benefit
of increased capex undertaken in Fy17 and implementation of GST the firm
is confident of surpassing the estimated sale of Rs1400lacs in FY18.
 EBIDTA margin of the firm remained at 4.78%in FY2016 which is in line with
that of FY15. In FY2017, EBIDTA margin is estimated to improve due to
better management of COGS.
 PAT margin of the firm remained at 2.22% in FY2016 which is in line with
that of FY15. The same is estimated to decline in future as the firm has
undertaken capex in FY17 partially through Bank borrowing and partially
through consumption of NWC margins all this has increased the depreciation
and interest expenses thus PAT margin is estimated at about 1.50% in
future.
 Leverage (adjusted) and CR is not in conformity with the policy parameters.
 It is pertinent to mention that the client has expressed its inability
to provide either management or CA certified PBS as on 31-03-17 as
the account has recently undergone heart surgery thus in view of
existing satisfactory relationship the business team has strongly
recommended enhancement without PBS. Thus in absence of proper
information nothing much has been commented upon financials of
Fy17.
Structure Medium  Current proposal is towards renewal of CC limit of Rs50lacs at existing level.
Risk  The exposure to the Captioned firm alongwith group (Anoop oswal Hosiery)
is secured against industrial properties with an estimated DSV of 90% (post
factoring in 70% DSV towards group concern exposure) against norm of
100% for cases with less than 1 CR, BH approval vide mail dated 20-06-17
is on record for consideration of 90% DSV .
 Total credit summation through IBL in FY17 is about 100% post factoring in
opening and closing debtors .Average utilization has been observed to be at
about 88%.
 1 instance of inward and 1 instance of outward cheque return has been
noticed in the last 7 months (Oct’16 to April’17) which may be taken to be in
the normal course of business.
Deviations Matrix:
11
S# Item Standard Proposed Term Approving Justification

Term Authority
1. CIBIL No adverse Akshay Jain ZCA
Remarks  DPD of 22 days w.r.t 2
Property Loan(s) in Sept’16
(Joint name).
 DPD of 30 days w.r.t CV
loan of IBL recent in No aberration has been observed
Sept’16 w.r.t Property loan and CV loan
Anoop Jain after Sept’16. Thus the position
 DPD of 30 days w.r.t CV may be taken to be satisfactory.
loan of IBL recent in
Sept’16 (Joint name)
Neha Jain
 DPD of 22 days w.r.t 2
Property Loan(s) in Sept’16
(Joint name).
2. Collate Collateral Collateral cover 90% against Business head Approval from Head-CB already
ral 100% since 100% since CR is <1 BBG taken (vide mail dated 20-06-17)
Cover CR is <1 along with group exposure in M/s
Anoop Oswal Hosiery.
3 CIBIL No adverse There is settled and closed ZCA The business team has submitted
Remarks status appearing in CC a/c that as per client, he has paid all
and 2 MTL’s takenover from the dues to the bank at the time
SBOP (Anoop hosiery Factory of takeover of limits by IBL. All
) and CC account of RSA Knit other Loans are running regular.
India.
4 Geari <= 4.00 12.53 Sanctioning The gearing is high on account
ng authority of high external debt raised for
6.82 (Adjusted ABS 16)
undertaking capex however
with increased level of
profitability the same is
estimated to improve in
future.
5 Lever <= 6.00 7.45 Sanctioning Adjusted leverage is as per
age authority policy parameters with
3.88 (Adjusted ABS 16)
increased level of profitability
the same is estimated to
improve in future.
Rationale/ Justification &Recommendations for proposal:
12
 Experienced promoters
 Satisfactory conduct of account
In view of the above, we recommend sanction of following limits to M/s R.S.A. Knit India on the terms and
conditions mentioned in Annexure-A:
INR in Lakhs
Facility Renewal Enhancement Proposed Proposed Pricing
Total
Cash Credit 50.00 0.00 50.00 As per BH approval
Total 50.00 0.00 50.00
Submitted for approval
BB Credit Analyst ZH – Business Banking
Resolution:
The Zonal Credit Committee may consider and, if deemed fit, pass the following Resolution:
"The Committee considered and after discussions, approved credit facility of Rs.364.56lacs to
M/s R.S.A. Knit India under SBB, as per the terms and conditions mentioned in the Memorandum dated
21/06/2017”
Name of borrower M/s R.S.A. Knit India

Account no ( if existing ) 650014059772
New ( in case of fresh ) Renewal
PDD type WC/TL/SME SBB
Approved under deviation Yes
Deviation Type CIBIL , Collateral Cover , gearing and leverage
UFCE Exposure as on 31-03-17: NIL
13
Annexure I
Terms & Conditions
Type of Facility Cash Credit
Amount Proposed Rs.50.00 Lacs
Purpose To meet working capital requirements
Rate of interest Minimum 12m MCLR+1.90% presently 11.00% p.a. at monthly rest. Presently
applicable Bank’s 12m MCLR is 9.10%. (floating). The Bank has the right to
substitute/change MCLR with any alternate rate or to change the spread over
MCLR or such rate, as per policy of the Bank or as may be required by RBI/
statutory directive.
( Disbursement shall be as per approval from Head- BB)
Interest Reset Interest rate would be subject to Annual reset.
Period of Sanction Repayable on demand, subject to review at annual intervals or as may be
decided by the Bank.
Margin Minimum
Stocks 25%
Book Debts
40%
Margin
90 (days). Drawing Power will be computed by applying the above margins to
(Cover period for book declared value of stocks after excluding Advance payment guarantees, Sundry
debts) Creditors and stocks acquired under Usance LCs, Buyer’s Credits (whether
guaranteed or not by us) and procured on credit under Stand by LCs
Hypothecation of the entire current assets of the borrower comprising , inter
Primary Security alia, of stocks of raw material, work in progress, finished goods, receivables,
book debts and other current assets
Collateral Security As per Common Security
Guarantee As per Common Security
14
General Covenants Applicable To All Facilities
Common collateral security:

First and exclusive charge on movable fixed assets of the company both present and
Fixed assets: future except other assets exclusively financed by other banks.
Property: Equitable Mortgage of following properties:
Particulars Property 1 161.10
Address 1133/1A/B, Shivpuri, Taraf Sekhewal, Jodhewal,
Ludhiana
Owner Neha Jain
Area 199 sq. yards
Usage Office Premises of M/s R.S.A. Knit India and M/s
AnoopOswal Hosiery
Particulars Property 2 328.25

Address B-25-G-4/87 & B-25-G-4/88 St no 10, New Shivpuri,
Ludhiana
Owner Anoop Jain and Neha Jain
Area 373 sq. yards
Usage Office Premises of M/s R.S.A. Knit India and M/s
AnoopOswal Hosiery
Any Other
FDR of Rs.2.50.00las lien marked in fav of IBL
Security
15
Personal Guarantee of promoters/guarantors /property owners (including residential address with

CA certified net-worth as on recent date)
Personal Guarantees of all partners/directors/minimum 51% shareholders/property owner which
shall include-
Name of Guarantor S/o W/o R/o NW (in Lacs)

Mr Anoop Jain Mr Pal Jain House No. B-II-2017, Near Nahar To be
Karyana Store, Krishna Street, Submitted
Shivpuri, Ludhiana
Mr Akshay Jain S/o Mr Anoop Jain House No. B-II-2017, Near Nahar To be
Shivpuri, Ludhiana
Mrs Neha Jain W/o Mr Anoop Jain House No. B-II-2017, Near Nahar To be
Shivpuri, Ludhiana
Total To be
Submitted
#Net worth should be 100% of the Proposed group assistance.
16
Others Terms and Conditions

Processing Charges Upfront Processing fee of 1% on total exposure plus applicable service tax and other
charges, on the total facilities payable on the issuance of the sanction letter.
Please note that processing fees will be non-refundable in the event of applicant unable
to accept/comply with the sanction conditions or refusing to take disbursal, the amount
paid as processing fees shall be forfeited.
Rate of Interest The Bank has the right to substitute/change MCLR with any alternate rate or to change
the spread over MCLR or such rate, as per policy of the Bank or as may be required by
RBI/ statutory directive.
( Disbursement shall be as per approval from Head- BB)

Validity of Sanction Three months
Review / Renewal All the on demand facility would be subject to annual renewal at the discretion of the
bank. The bank may at its discretion renew the facility without waiting for any request
by borrower and/or submission of financial and other data provided.
All other facilities would be subject to subject to review at annual intervals or at such
interval as may be decided by the Bank.
Penal interest rate (a) Penal interest for non-compliance – 18.75% p.a. or 2% above present applicable
rate whichever is higher.
(b) Penal interest for irregularity/overdue – 18.75% p.a. or 2% above present
applicable rate whichever is higher.
Documentation As per Bank’s internal policies/ guidelines.
Inspection To be carried out at quarterly intervals or as per specific terms or as per calendar
decided by the bank. The cost of inspection shall be recovered as per bank’s guidelines.
Insurance All assets charged / financed by the Bank to be fully insured for 110% of the value in
the name of the borrower with the Bank Clause.
In the event of non-compliance of the same, the Bank reserves the right to debit the
CC a/c for the insurance premium and get the policies assigned in favour of the bank.
Valuation Two valuations shall be done of collaterals independently by the Bank’s approved
valuers, and Title Clearance report from Bank approved advocates/ solicitors. The cost
of these will be on Borrower’s account.
Both the valuations to be done prior to disbursement of limits. The average of two
valuations shall not be less than value as stated in sanction terms. In case there is
more than 10% variation between two valuations, the lower value to be considered and
it shall not be less than value as stated in sanction terms.
Prepayment Charges The facility shall attract prepayment charge on the facility limits granted to the
borrower in the event of:
 Repayment by the borrower to the bank of any amount ahead of previously
agreed repayment schedule or tenor or terms of dates of repayment or renewal
as contained in the sanction letter; or
 The borrower’s is not availing of the facility or any part thereof within 60 (sixty)
days from the date of its grant.
The prepayment charges would be 2% plus applicable service tax on the facility limit
granted in case of payment through own resources and 4% plus applicable service tax
on the facility limit granted in case of takeover of facility limit by any other
bank/financial institution.
Registration Charges In case of advances granted to Public/Private Ltd Companies, charge/modification of
charge in favour of the Bank to be got registered with ROC within 30 days of
creation/modification of charge and copy of charge registration certificate to be kept on
record.
17
Others Terms and Conditions

Statement(s) Stock & B/D Stock Statement and Book debts Statement on
Submission monthly/Quarterly basis within 10 days from the end of
current month/Quarter.
Audited B/L & P/L Within -15- days of completion of Audit
Renewal Papers At least one month before the due date of renewal.
Specific Conditions  Undertaking from the borrower that firm shall maintain capital (TNW) at minimum
applicable level of Rs30lacs which will increase to Rs32lacs as at 31.03.18 and shall be
maintained during the currency of bank limits.
 Undertaking from the borrower that unsecured loans from Director/partners, family
members, associates and friends shall be retained in the business at a minimum
level of Rs.19.40lacs during the currency of bank limits and shall be subordinate to
bank’s dues. Interest payment on unsecured loans shall be subservient to the
interest payment to IndusInd Bank Ltd.
 CA/ Management certified PBS as on 31-03-17 to be obtained before upload of
proposed limits.
 Deferrals as per Internal Credit Observations and CAD confirmation to be suitably
addressed by business team prior to upload of renewed limits.
 An undertaking from the borrower that CC limit sanctioned to the concern will be
utilized only for working capital requirement and no inter group transfers will be
made. Borrower to also undertake that the borrowing co would only do the genuine
business transactions through CC account maintained with us and would not route
any inter group transactions/or transactions pertaining to other group firms/ or
investment transactions through its CC account.
 The facilities sanctioned to M/s Anoop Oswal Hosiery shall be cross-collateralized
and cross defaulted with the facilities sanctioned to and RSA Knit India
 Any default committed by the firm (or its proprietor/partner/ director/guarantor of
the captioned account) under any other loans or credit facilities viz business loan,
loan against property, credit card etc. sanctioned by IBL, shall be deemed to be a
default under BBG loan and vice- versa.
 Before disbursement the borrower shall provide declaration (if borrower doesn’t
have any unhedged exposure) on its letter head. The borrower undertake that in the
event the entity assumes foreign exchange risk, the borrower shall submit
information on unhedged forex exposure on a quarterly basis as per the Bank’s
format in terms of RBI guidelines on “Capital and Provisioning Requirements for
Exposures to entities with Unhedged Foreign Currency Exposure” or any other
guidelines in force from time to time. Failure to submit such information would
attract penal interest of 2% p.a.”
Internal Compliance 1. Client application form/request letter for proposed facility from IBL to be held on
only record prior to disbursal/renewal/enhancement of limit.
2. Other terms and conditions as per applicable on case to case basis.
Deferral to be tracked
# RM/ASM to obtain stamped & signed ABS 2017 and ensure that there is no negative
variation of more than 5% in critical parameters. The same to be reviewed by
15-11-2017 RM/ASM to ensure the same and in case of any variation in critical
parameters the same to be reported to credit so that corrective measures can be taken.
RM /ASM to ensure that sales are on growing trend and pro-rata sale achievement is in
sync with projections else the limit to be curtailed accordingly.
18
Other General Covenants

The borrowing arrangements would be subject to the following terms and conditions:
1. The Firm shall avail working capital facilities with us under sole banking arrangement. Without written
permission of the bank the firm shall not avail any working capital facility with any other bank. All other
current accounts with other banks to be closed and certificate to that extent be kept in record by the
branch.
2. The Bank will have the right to examine the books of accounts of the borrower and to have their
factories inspected from time to time by officers of the Bank and/or outside consultants and the
expenses incurred by the Bank in this regard will be borne by the borrower.
3. The Bank may at its sole discretion disclose such information to such institution(s) in connection with the
credit facilities granted to the borrower.
4. During the currency of the Bank’s credit facilities, the borrower shall not without the prior approval of the
Bank in writing: (i) Effect any change in their capital structure. (ii) Shall not pledge the shares held by
the promoters, group beyond 10% of holdings, for raising any loan or for securitizing any loans or
advances availed/to be availed by them from any bank/FI/ lender. (iii) Formulate any scheme of
amalgamation/reconstitution. (iv) Undertake any new project/scheme without obtaining the Bank’s prior
consent unless the expenditure on such expansion etc., is covered by the borrower’s net cash accruals
after providing for dividends, investments, etc., or from long term funds received for financing such new
projects or expansion. (v) Invest by way of share capital in or lend or advance funds to or place deposits
with any other concern. Normal trade credit or security deposits in the usual course of business or
advances to employees, etc., are, however, not covered by this covenant, (vi) Enter into borrowing
arrangements either secured or unsecured with any other Bank, financial institution, borrower or
otherwise save and except the working capital facilities, granted/to be granted by other consortium
/member banks, under consortium/multiple banking arrangement and the term loans proposed to be
obtained from financial institutions/Banks for completion of the replacement-cum-modernization
programme, (vii) Undertake guarantee obligations on behalf of other companies/ associates/ affiliates
(viii) Declare dividends for any year except out of the profits relating to that year (ix) Grant loans to
promoters/partners / Directors.
5. Moneys brought in by principal shareholders/ directors / depositors / depositors will not be allowed to be
withdrawn without the Bank’s permission.
6. The borrower should not make any material change in their management set up without the Bank’s
permission. No material change in the shareholding pattern of the company which has an effect of a
possible change in the management control of the company shall be made without prior approval of the
Bank.
7. The borrower will keep the Bank informed of the happening of any event, likely to have a substantial
effect on their production, sales, profits, etc., such as labour problem, power cut, etc., and the remedial
steps proposed to be taken by the borrower.
8. Bank’s Sign Board(s) be displayed/ painted at some conspicuous place at the shop/Godown of the
borrower, mentioning our Bank’s Charge on the goods lying threat
9. The Borrower will inform the Bank if any winding up petition is filed against the Borrower.
10. The borrower will keep the Bank advised of any circumstances adversely affecting the financial position
of their subsidiaries including any action, taken by any creditor against any of the subsidiaries.
11. The borrower shall submit the declarations as regards (i) Not to use the funds for capital market
activities, (ii) That neither the Company nor the Directors face any litigation, (iii) The Directors / senior
executives of the company, and/or their relatives are not connected with the Bank (IBL) and are not
directors in any other bank. (iv) No commission has been paid to guarantors on extending their
guarantee for the advance
12. The Bank would charge the standard service charges in respect of different items of service as in force
from time to time.
13. The borrower to furnish to the Bank every year two copies of audited/printed balance sheet and profit
and loss account statements of the borrower immediately on being published / signed by the auditors,
along with the usual renewal particulars.
14. To forward half-yearly balance sheet and profit and loss account statements within two months from the
end of the half-year and annual audited accounts within 3 months.
15. To maintain a minimum net working capital of 25% of current assets.
16. The borrower/owner shall deposit all the title documents of the collateral security required as per title
search report (by bank’s empanelled lawyer) in case of EM/Simple/English mortgage to be created on
said collateral.
19
17. The borrower undertake that in the event the entity assumes foreign exchange risk, the borrower shall
submit information on unhedged forex exposure on a quarterly basis as per the Bank’s format in terms of
RBI guidelines on “Capital and Provisioning Requirements for Exposures to entities with Unhedged
Foreign Currency Exposure” or any other guidelines in force from time to time. Failure to submit such
information would attract penal interest of 2% p.a.”
18. Negative Lien:
The borrower /Promoters should not create, without prior consent of the Bank, charges on their any or all
properties or assets during the currency of the credit facilities granted by the Bank.
19. Insurance: -
All stocks and collateral securities like immovable properties should be kept fully insured against all risks
including fire, strikes, riot, malicious damages & natural calamities etc., with the incorporation of Bank’s
Hypothecation clause and the policies retained by the borrower.
A copy of this policy should be submitted to the Bank for their record.
A list of the current insurance policies should be submitted to us with the monthly stock statements detailing
therein the names and addresses of the insurer, brief particulars of goods covered, type of cover, amount of
cover and date of expiry of each policy.
20. Others -
 Non-fulfillment of above financial and non-financial covenants will trigger an event of default, unless
specifically waived in writing. Consequence of an event of default could be levy of penal interest and/or
withdrawal of the facility.
 In the event of withdrawal/cancellation of the facility, the borrower accepts to fully cash collateralize any
exposure that the Bank has assumed on the client or on behalf of the client, which could not be immediately
repaid or unwound.
 Borrower/facilities should conform to guidelines that have been/will be issued by RBI from time to time.
 All interest and cess are exclusive of any taxes and withholdings that may be payable on account of
prevailing statutes.
 The Bank has the right to change or modify the rate of interest, or alters the spread, at such intervals or
whenever it may deem fit, and a notice of the change to the Borrower will be binding on them.
 The Bank reserves the right at its sole discretion without assigning
any reason whatsoever, to modify, vary or add to the terms and
conditions, or to terminate the said Banking Facilities concerned, at
any time, and to recall any or all of the amounts due under the said
Banking Facilities. All amounts due in respect of the said Banking
Facilities shall become payable forthwith on such demand.
 As regards the un-utilised limits if any under the facility, Bank reserves the right at any point of time, to
revoke or cancel and/or vary, alter or modify the said un-utilised limits, at Bank’s discretion without prior notice
& without assigning any reasons therefore.
 The copy of Annual Stock Audit Report should be made available to the Bank (in case of consortium /Multiple
Banking).
 The company shall pay on demand to the bank the cost between the solicitors/ advocates/ company
secretaries/ inspectors and clients incurred by them or any of them in connection with the registration of the
securities and clarifications/ charges thereof with the Registrar of Companies, compilation of search/ status
reports and/ or any other matter incidental to or in connection with transactions of the Company with the Bank
and also reimburse the Bank for all out-of-pocket expenses including legal, stamping, documentation,
communication and travel costs incurred in the negotiation, documentation, and disbursement of the facility
 The company shall deposit sales proceeds and shall route all foreign exchange business and other ancillary
business through their account maintained with us in proportion to our share in the capital financing.
20
 Moneys brought in by partners/ proprietors/ principal share holders/ directors and their friends and relatives
will not be allowed to be maintained at lower than the projected levels without Bank’s written permission.
 Company should furnish a written confirmation that the company/ its directors in the best of their knowledge
and belief are not defaulters with any bank/FI, and there are no legal proceedings initiated or pending against
them for recovery of any borrowings.
 The Borrower/Guarantor hereby expressly give consent to the Bank to disclose any information, at any point
of time, relating to conduct and operations of the account to the Reserve Bank of India and / or any other
Agency/ Authority such as Credit Information Bureau (India) Ltd. appointed/ designated by Reserve Bank of
India. The Bank, without any further notice or intimation, can disclose and supply any information to the Reserve
Bank of India and / or any Agency/Authority appointed by Reserve Bank of India. The Borrower/ Guarantor,
further agree that Reserve Bank of India and/or any other Authority so appointed can compile such data and/or
information and can convey/supply such data and/or information and/or results thereof to Government, Reserve
Bank of India, Other Banks, and/or Financial Institutions for any reasons whatsoever, for Credit Discipline in
Banking Industry in India. The Borrower/Guarantor expressly waive their right and discharge the Bank and/or
Reserve Bank of India and/or any other Authority appointed by Reserve Bank of India from any liability for
disclosure and/or use of such information on account of breach of any secrecy clause.
In case in the opinion of the Bank’s there has been a material adverse change in the Borrower’s business and
financial condition, such as:
1. Sale or curtailment or closure of any of the Borrowers main businesses
2. Cash losses in any one quarter or continuing accounting losses in three quarters,
3. Adverse action by any Regulatory Authority
4. Default to the Bank under any other facility or to any other lender
5. Action by any class of stakeholders which is likely to significantly impair Borrower’s business
6. Filing of winding up petition by any creditor/shareholder against the Borrower.
The Bank is entitled to withhold further disbursements and/or recall the loan in part or full.
Scoring Model for Small Business Banking Loan

Name: M/s R.S.A. Knit (India)
Constitution Proprietorship
Line of Manufacturing of Hosiery goods and Knitted
Activity fabrics
Industry
Code YO
Managerial / Promoter Experience in this line of Allocated

1
business Score
> 15 yrs 5
5 to 15 yrs 4
3 to 5 yrs 1
<3 years 0
Cust. Score 4
2 Succession Plan Allocated

Score
Promoters legal descendent (s) is/ are adult and is/
are also Partner/ Director in the business 5
Promoters legal descendent (s) is/ are adult and is/
are involved in business only in executive capacity 4
Promoters legal descendent (s) is/ are adult but not
involved in business (borrowing entity) in any way 2
Promoters don't have any legal descendent 0
Cust. Score 4
3 Collateral Type Allocated

Score
Residential (Self Occupied) with >70% DSV Coverage 5
21
or Cash Collateralised
Only industrial Property / vacant land as collateral 2
Others 3
Cust. Score 2
4 Collateral Coverage on DSV Basis Allocated

Score
More Than 200% 5
101% - 200% 3
80% to 100% 2
<80% 1
Cust. Score 2
Cheque Bouncing (Inward Cheque Bounce due
5 to insufficient funds, history - six months, non Allocated
EMI) Score
NIL 5
Upto 10 4
More than 10 upto Max of 2% of chq issued 2
More than 2% of the chq issued 1
Cust. Score 5
Credit Summations (Credit summations (six Allocated
months) annualized as % age of yearly sales Score
6
turnover excluding contra entries of cheque
returns etc.)
Credit Summations between 90-100% of turnover 10
Credit Summations between 70%-89% of turnover 5
Credit Summations < 70% 2
Cust. Score 5
Account [OD/TL/LAP/BL] irregularity/over limit Allocated
7 Score
in last 6 months
Irregular up to 7 days in a month 10
Irregular between 8-30 days in maximum of two
months out of 6 months 5
Irregular for 30+ days twice or more / Irregular for
60+ days once or more 0
Others 3
Cust. Score 10
8 (Capital+Net Reserve) and USL ratio (as per last Allocated
audited financial) Score
USL less than two times of capital 4
USL more than five times of capital 0
USL two to five times of capital 3
Cust. Score 4
Allocated
9 Topline/Sales Trend (Lower of past two years) Score
> 25 % growth 5
0 to 25% growth 3
Negative Growth 0
Cust. Score 3
Allocated
10 ATNW Trend (Lower of past two years) Score
> 20 % growth 4
5 to 20% growth 3
< 5% growth 2
(-) Growth 0
22
Cust. Score 3
Allocated
11 EBIDTA level (last Audited) Score
>20% 4
>10-20% 3
0-10% 2
Negative 0
Cust. Score 2
Allocated
12 Current Ratio (Times) Score
>= 1.33 4
Between 1.00 to 1.33 3
<1.00 0
Cust. Score 0
Allocated
13 Gearing (Times) Score
<2 4
2-4x 3
>4 0
Cust. Score 3
Management Score
(Max 10) 8
Collateral Score (Max
10) 4
Account Conduct
Score (Max 25) 20
Financial Score (Max
25) 15
Total Score 47
Grade SBB 4
Status Pass
23

SBB - Renewal Propsoal - R. S. A. Knit India - Ludhiana - June 2017

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SBB - Renewal Propsoal - R. S. A. Knit India - Ludhiana - June 2017

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M/s R.S.A.

Knit India, Ludhiana – Renewal Proposal

BUSINESS BANKING LOAN (up to Rs 200 Lacs)

Basic Information Sheet

Name M/s R.S.A. Knit India

Request & Rationale

Brief details of Group Concerns ownership

Key Financials of Group Concerns

Inter firm transactions:

Particulars FY 2016 FY 2017

DETAILS OF SECURITIES OFFERED

Collateral security; Equitable mortgage of following properties

Valuation Details as per last approval:

Computation of Unsecured Exposure:

Group Exposure against above collaterals security

Sanctioned Exposure Proposed Exposure Minimum DSV

Background of Company & Promoters

The Group & Company:

The manufacturing units of the group concerns are located at;

Business Model &Product Line of the firm

7. Firm is offering credit period of around 3 months to buyers.

Manufacturing of Hosiery goods and knitted fabrics

Top 3 Debtors (as per last audited financial):

Top 3 Creditors (as per last audited financial):

CIBIL Check /ECGC /RBI List of defaulters

Type of CIBIL Match Enquires

Details of Previous Sanction Term not complied

Pending Audit Comments (Concurrent/ Internal/ Statutory/ Quality Audit/RBI)

Interest Coverage 2.19 2.38 3.57 2.43 2.77

Key Financials – Comparison

Comments on Financial Indicators:

BANKING AND CREDIT HISTORY

Bank statement analysis:

S Month SUM - IBL CC Cheque Retn. Utilisation Net CC

Details of Cheque Return

Details of TOD / Adhoc

Pending Deferrals- Nil

Term Loan details:

The details of term liabilities with other banks/FI/Indus ind bank

Assessment of Proposed Facilities

FY 14-15 FY 15-16 FY 16-17 FY 17-18

1. The proposal is recommended under SBB PDD, which is valid up to……….

Submitted for approval.

Name: Kapil Bansal

Recommended for approval

MEMORANDUM BY FOR SANCTION / APPROVAL OF FACILITIES BY ZCC:

S# Item Standard Proposed Term Approving Justification

Rationale/ Justification &Recommendations for proposal:

BB Credit Analyst ZH – Business Banking

Name of borrower M/s R.S.A. Knit India

UFCE Exposure as on 31-03-17: NIL

General Covenants Applicable To All Facilities

Common collateral security:

Particulars Property 2 328.25

Personal Guarantee of promoters/guarantors /property owners (including residential address with

Name of Guarantor S/o W/o R/o NW (in Lacs)

Others Terms and Conditions

( Disbursement shall be as per approval from Head- BB)

Others Terms and Conditions

Other General Covenants

Scoring Model for Small Business Banking Loan

Managerial / Promoter Experience in this line of Allocated