M/s. Karuna Interior Pvt.

Ltd -Renewal

Nepal Bangladesh Bank Ltd.

Branch:Maharajgunj
CREDIT FACILITY REQUEST FOR RENEWAL OF BUSINESS ENTITY
A. Client Detail
Purpose of CFR Renewal of Overdraft Loan facility
Constitution: Private Limited
Client Name: M/s. Karuna Interior Pvt. Ltd
Type of the client Existing
Suwarnasamser Rd,
Name Mr. Devraj Sharma Place of Business:
Kathmandu 11720, Gairidhara
Key Business Distance
Contact 9851022732 About 3 Km
Person from lending Branch
Suwarnasamser Rd,
E-mail karunainterior@gmail.com Office Address
Kathmandu 11720, Gairidhara
Credit Relation
A/c no. & open date 044000801C dated 27.06.2019
period 1 Year
Risk Weight as per Nature of Business: Making of furniture
100% (claims on domestic
Capital Adequacy Manufacturing of Furniture
corporate) Objective of MOA
Framework 2015: Items
Internal Credit Risk
58 Sector (NRB 9.3 Ka) Manufacturing
Grading Score
Sister Concerns: M/s. UpalabdhiPrakashan Pvt. Ltd. Obligor Code: N/A
Date of proposal Date of Submission
09.09.2020 10.09.2020
received: to H.O.:
Relationship
Anju GC Next Review: 15.08.2021
Officer:
Registration on 2062.03.27Office of the company registrar , Tripureshwor, Kathmandu
Reg. No. 35167/061/62
License obtained from---------------
For-----------------------------------------------,dated
Registration Status
VAT Registration No. 302622384 Dated 01.10.2065
PAN Registration No. 302622384 Dated: 09.02.2064
Tax Clearance Up to : - 74/75

Please make tick mark as per NRB Classification

Tourism/ Cottage & Deprived
Agriculture Hydro Industry Trading Construction Real Estate Service Transport Other
Hotel Small Ind. Sector
√
Shareholder Board of Directors
Name % of Share Name Status
Mr. Dev Sharma Mishra 50% Mr. Dev Sharma Mishra Director
Mr. Bipin Sharma Mishra 50% Mr. Bipin Sharma Mishra Director

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 M/s. Karuna Interior Pvt. Ltd -Renewal

“000”
KEY FIGURES OF PROVISIONAL FINANCIALS AS OF FY 076/077

PAID UP CAPITAL 42,500.00 TOTAL SALES 20,557.34

EBIT (Operating Profit -

NET WORTH 43,587.02 7,161.07
Depreciation)

TOTAL BORROWING DEBT 37,938.18 NET PROFIT AFTER TAX 946.72

NET CURRENT ASSETS

TOTAL ASSETS 93,070.19 (Current Assets - Current 55,978.56
Liabilities)

Brief of the Business:Karuna Interior, a private limited company, registered under Office of Company Registrar
on2062.03.27 was established with the purpose to provide service of durable products like wooden furniture, wooden works,
furnishing, aluminum fabrication, metal works & interior works specializing in both residential and commercial design. Its
corporate office is located at Chandragiri-1, Dahachowk and the showroom is at Gairidhara, Kathmandu. They are involved in
design, manufacture and sale of home, office and outdoor furniture products. The company’s main objective is to provide
furniture products at better rates, best quality and delivery on time.Their customers are mainly wholesalers, retailers and traders.
They have relationships with many local craftsmen and subcontractors, so they can assure that products are completed with the
highest standards. They are committed to delivering inspired designs that fulfill client expectations through collaboration and
exceptional service. They provide high standards products like: -
1. Home: -Bed Closet Dresser, Sofa-Tea Table-Showcase, Kitchen Cabinet-Dining Set, Storage Rack- Shoes Rack & Door-
Window- Railing- Staircase.
2. Office: - Office Table, Revolving Chair, Office cabinet, Meeting Table & Library Furniture.
3. Out Door: - Garden Set-Umbrella, Restaurant Furniture & Sun Bed-Swing.

Facility Proposed
1. CORE CREDIT FACILITY PROPOSED
Overdraft facility of NPR 19,000K for smooth running of the business.

2. Exposure including proposed credit on account of: Karuna Interior Pvt.Ltd. “000”

Existing Proposed
Facility
Limit Principle Past Air Int Rate Expiry Date Proposed Int Rate Expiry Date
O/s Due Limit

19,000.00 18,942.00 --- 344.00 10.93% 18.08.2020 19,000.00 9.93%

Overdraft Loan 15.08.2021
20,000.00 18,949.00 --- 193.00 11.25% 10.08.2029 20,000.00 10.43%
Term Loan 10.08.2029
Total Funded 39,000.00 37,891.00 537.00 39,000.00

Total Non - - - - - -
Funded

Date of last review of the pricing;

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 M/s. Karuna Interior Pvt. Ltd -Renewal

“000”
PROPOSED CONSOLIDATED EXPOSURE DETAIL INCLUDING SISTER CONCERNS
NAME FUNDED NON- TOTAL MORT. COLL. AMOUNT
FUNDED
M/S. KARUNA INTERIOR PVT. LTD 39,000.00 -- 39,000.00 73,256.00
M/S. UPALABDHIPRAKASHANPVT. LTD 22,025.60 5,500.00 27,525.60 9,300.00
PROPOSED EXPOSURE TOTAL 61,025.60 5,500.00 66,525.60 82,556.00
PRESENT EXPOSURE TOTAL 61,025.60 5,500.00 66,525.60
MULTIPLE BANKING CREDIT INFORMATION REPORT DATED 04.09.2020
On Account of BANK/ BANK CODE EXPOSURE OVERDUE IF ANY
KARUNA INTERIOR PVT LTD MBL( HP LOAN)
STATUS OF PARIPASSU OR NO
OBJECTION LETTER (IN CASE OF
MULTIPLE BANKING)
INTERNAL CREDIT INFORMATION Seeking branch consent reported thatthe concerned party is not enjoying
any types of credit facilities from any of our other branches, till date.
“000”
Consodilated Income Generating Record During Last FY 76/77 Including of Sister Concerns

NAME INTEREST EARNING COMISSION EARNING TOTAL

karuna interior Pvt LTd 4,283.65 296.06 4,579.71

Upalabdhi Prakasan sewa Pvt LTd 2,138.39 196.80 2,335.19

Total 6,422.04 492.86 6,914.90

EXPOSURE AND COLLATERAL DETAIL ON ACCOUNT OF SISTER CONCERNS:
Name of Firm: UpalabdhiPrakashanSewa Pvt. Ltd. Rs. in ‘000”
Reason of being sister
concern Both companies are run by same family members.
FACILITIES LIMIT OUTSTANDING TENURE EXISTING PRICING
FUNDED:
OD 7,300.00 7,272.23 07/07/2021 9.98%
DL 4,500.00 4,500.00 11/03/2021 11.45
TL 10,225.60 9,628.17 10/07/2028 11.66%
NON-FUNDED:
PB 1,500.00 56.00 -- --
BB 2,000.00 470.50
CG 2,000.00 0.00
TOTAL 27,525.60 -- --
FUNDED 22,025.60 7,458 -- --
NON-FUNDED 5,500.00 526.50 -- --

Collateral Security (s) Mortgaged/Lien on account of (sister concern): Upalabdhi Prakasan Sewa P Ltd.
“000”
S. Owner Relation Plot No Location Type Area Market Value Distress Value Status
N

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 M/s. Karuna Interior Pvt. Ltd -Renewal

Pratibha Shareholder 107 & Ward No. L 14,350 Sq.m (as 13,294,729.51 9,306,000.00 Already
1 Niroula 206 17, Damak per lal purja) mortgaged for
Municipalit 12,350.19 (area NPR 9,300.00
y, Jhapa considered for
valuation)

Total 13,294,729.51 9,306,000.00

Collateral Security Coverage
“000”
Security
Facilities
Coverage
Required Security
Value as Proposed
Type Existing Outstanding Existing %

Overdraft Loan 7,300.00 7272.23 150% 10,950.00

Term Loan -I 952.59 952.59 125% 1,190.74

Term Loan -II 1,620.19 1,620.19 125% 2,025.24

Term Loan-III 7,240.49 7,240.49 125% 9,050.61

Hypothecation
Demand Loan 4,500.00 - -
stock

Total Funded 21,613.27 17,103.27    

Bid Bond 2,000.00 0 10% 200

Performance Bond 1,500.00 0 100% 1,500.00

SCG 2,000.00 0 100% 2,000.00

Total Non Funded 5,500.00      

Total Collateral Security value required 26,916.59

Available Collateral Security value as detailed above (9,300 K + 20,516.48 K) 29,816.48

Excess (Less) on Collateral Security Value 2,899.89

B. Justification of the Proposed Facilities:

1. Justification of requirement:
(i) Business & Account Monitoring Report (Mandatory in case of WC Financing):
“000”
1st Quarter End of F/Y 2nd Quarter End of F/Y 3rd Quarter End of 4th Quarter End of
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 M/s. Karuna Interior Pvt. Ltd -Renewal

2076/77 2076/77 F/Y 2076/77 F/Y 2076/77

Net Current Assets 35,008.50 42,064.60 44,946.87 46,037.00
Bank Financing 19,000.00 19,000.00 19,000.00 19,000.00
% of Bank Financing 54.27% 45.17% 42.27% 41.27%
Business Visited By Krishna Hari Bhandari Krishna Hari Bhandari Krishna Hari Bhandari Krishna Hari Bhandari
Visit Date 10.06.2076 20.09.2076 26.12.2076 15.03.2077
Observations During visit we have found well managed stock placement and account are kept properly.

(ii) Funded Facilities:

(a) Working Capital Financing assessment:
“000”
Particulars Current Position BSVR Dated: Projected Position for: FY
15.03.2077 2077/78
Stock/Inventory 48,272.00 64,346.70
Receivable 7,466.00 3,957.61
Other Current Assets (Advance Payment 411.00 362.05
etc.)
Total Current Assets 56,149.00 68,666.36
Sundry Creditors 10,112.00 8,695.11
Other Payable ------ ----
Current Liabilities (Excluding bank’s loan) ---- ----
Net Current Assets (TCA-CL) 46,037.00 59,971.25
Bank Financing Amount 19,000.00 19,000.00
Bank Financing % 41.27% 31.68%

(b) Capital Investment Financing

Capital Investment Equity Fund Bank Financing

Items Amount Amount % Amount Facility

Machinery - - #DIV/0! - Term Loan

Building Construction - - #DIV/0! - Term Loan

Vehicle/Equipment - - #DIV/0! - HP Loan

Other - - #DIV/0! - Term Loan

(iii) Non-Funded Facilities:

a) Job Turnover/Contract performed :

Fiscal Year 75/79 76/77

Turnover Amount 27,681.87 20,557.34

2.Justification by Financials:
As per the audited financial statement provided by the party for the Audited F/Y 2075/76, Provisional F/Y 2076/77&
projected financial statement for the F/Y 2077/78 ,F/Y 2078/79,F/Y 2079/80 the following indicators have been observed:
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 M/s. Karuna Interior Pvt. Ltd -Renewal

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 M/s. Karuna Interior Pvt. Ltd -Renewal

a. Balance Sheet: Rs. In '000

Audited Provisional Projected Projected Projected

2075/76 2076/77 2077/78 2078/79 2079/80

1 Equity Capital (Paid-up) Rs. 42,500.00 42,500.00 42,500.00 42,500.00 42,500.00

2 Retained Earning Rs. 140.31 1,087.02 2,228.83 4,232.23 7,372.19
3 Net worth(1+2) Rs. 42,640.31 43,587.02 44,728.83 46,732.23 49,872.19
4 Unsobordinated promoter's loan Rs. - - -
5 Sundry creditors & other payable Rs. 19,619.11 11,229.41 8,695.00 6,956.09 5,564.87
6 Short Term Bank Loan Rs. 18,846.93 18,588.60 19,000.00 19,000.00 19,000.00
7 Current portion of Long term loans Rs. - - 1,076.00 1,267.00 1,358.00
8 Provisions Rs. 46.77 315.58 400.00 500.00 700.00
9 Term Loans Rs. 19,985.69 19,349.58 18,273.60 17,006.58 15,648.58
10 Total Current Liabilities Rs. 38,512.81 30,133.59 28,095.00 26,456.09 25,264.87
11 Total liabilities (3+4+8) Rs. 101,138.81 93,070.19 92,173.43 91,461.90 92,143.64

1 Cash & bank balance Rs. 521.52 202.61 231.20 85.32 102.71
2 Sundry debtor Rs. 6,035.73 3,565.42 3,957.60 4,274.22 4,744.38
3 Advance payment & deposits Rs. 257.95 354.94 362.04 - -
4 Closing stock Rs. 61,656.40 63,085.00 64,346.60 64,990.17 66,289.97
5 Current assets(1+2+3+4) Rs. 68,471.60 67,207.97 68,897.44 69,349.71 71,137.06
6 Fixed Assets Rs. 32,667.21 25,862.22 23,275.99 22,112.19 21,006.58
7 Total Assets (5+6) Rs. 101,138.81 93,070.19 92,173.43 91,461.90 92,143.64
8 Net Working Capital Rs. 48,284.20 55,460.37 59,571.24 61,808.30 64,769.48
b. Income Statement
1 Sales Revenue Rs. 27,681.87 20,557.34 51,393.35 53,963.01 56,661.17
2 Other Income Rs. 3,830.14 4,979.19 6,472.95 8,414.83
2 Total Income Rs. 27,681.87 24,387.48 56,372.54 60,435.96 65,076.00
3 Less: Cost of good sold Rs. 18,553.45 14,685.43 45,226.15 48,566.72 52,128.28
4 Gross profit (3-4) Rs. 9,128.42 9,702.05 11,146.39 11,869.24 12,947.72
5 Administration exp. Rs. 2,312.26 2,540.98 3,811.48 4,002.05 4,202.15
6 Selling & distribution exp Rs. - - -
7 Total Operating exp.(6+7) Rs. 2,312.26 2,540.98 3,811.48 4,002.05 4,202.15
8 Operating Income (5-8) Rs. 6,816.16 7,161.07 7,334.91 7,867.19 8,745.57
9 Less: Interest expenses Rs. 5,044.35 4,863.65 4,500.00 4,200.00 3,800.00
10 Less:Depreciation Rs. 1,002.93 1,035.14 1,293.11 1,163.79 1,105.60
11 Net profit before tax (9-10-11) Rs. 768.88 1,262.28 1,541.80 2,503.40 3,839.97
12 Less: Tax Rs. 46.77 315.56 400.00 500.00 700.00
13 Net profit after tax (12-13) Rs. 722.11 946.72 1,141.80 2,003.40 3,139.97
14 Operating Cash Flow Rs. (46,559.16) (5,194.31) (1,675.96) 930.13 1,284.39
c. Ratio Analysis
1 Working Capital Financing % 0.39 0.34 0.32 0.30740208 0.29334804
2 Financing on FA % - - - 0.00 0.00
3 Ratio of Total Loan to Net Worth times 0.44 0.43 0.42 0.406571653 0.380973845
4 Current Ratio times 1.78 2.23 2.45 2.62 2.82
5 Total Assets turnover times 0.27 0.22 0.56 0.59 0.61
6 Current Assets Turnover times 0.40 0.31 0.75 0.78 0.80
7 Inventory Turnover times 0.45 0.33 0.80 0.83 0.85
8 Debtors Day on Hand days 79.58 63.30 28.11 28.91 30.56
9 Stocks Day on Hand days 606.48 783.98 514.22 481.27 457.36
10 Creditor Day on Hand days 385.96 279.10 70.17 52.28 38.96
11 Total Debt to Total Assets % 0.19 0.20 0.21 20.77% 20.62%
12 Short T erm Debt to Net Working Capital % 0.39 0.34 0.32 30.74% 29.33%
13 Return on Total Assets % 0.76 1.36 1.67 273.71% 416.74%
14 Return on Sales % 2.78 6.14 3.00 463.91% 677.71%
15 Interest Coverage Ratio times 1.35 1.47 1.63 1.87 2.30

Comparison of Projected/Provisional and Audited Financials of Last Fiscal Year

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 M/s. Karuna Interior Pvt. Ltd -Renewal

Balance Sheet: Rs. In '000

Provisional or Projected of Deviation if any

SN Particulars Audited of Last Year
Last Year (%)

1 Net worth(1+2) Rs. 45,178.92 43,587.02 -4%

2 Net Working Capital Rs. 40,738.87 55,460.37 36%

3 Sales Revenue Rs. 60254.12 20,557.34 -66%

4 Operating Income (5-8) Rs. 8,715.17 7,161.07 -18%

Comment on the deviation (Mandatory):
As per the borrower, they have not been able to operate business fully in the last 6 months. Due to effect of
COVID-19 recent scenario, it has seriously declined the revolving cash inflow. So, they are unable to make
business as they have expected as per the last year projected target. However, all the particulars been expected
to increase in coming FY.
d. Repayment Capacity: Based on projection “000”

1st Year 2nd Year 3rd Year

Operating Income (EBIT+Depreciation) 7,334.91 7,867.19 8,745.57
Interest on revolving loan 4,500.00 4,200.00 3,800.00
Installment on schedule loan (existing and new) 1,076.00 1,267.00 1,358.00
Total required amount for debt serving 5,576.00 5,467.00 5,158.00
Debt serving ratio 1.32 1.44 1.70
Payback Period (applicable only for project financing): N/A
Internal Rate of Return (IRR) (applicable only for project financing):
Declaration of the Relationship Officer on The Financials Remarks
(Yes/No)
Presented latest actual financials are found verifiable as per the business site visit conducted on Yes
09.08.2020
Projected financials are justifiable as per the business scenario & business plan of the client Yes
The actual & projected financials justify to the proposed credit facilities Yes
Comments on Financials and justification:
 The current ratio as per the provisional financial statement for the year 2076/77 is 2.23 times which states
that the company’s ability to remain solvent and liquidity position was strong to meet its short term
obligation. The projected figures are 2.45 times, 2.62 times & 2.82 times in increasing trend.
 The interest coverage ratio for the projected figure of 1.63 times, 1.87 times & 2.30 times and its increasing
trend shows that company is comfortable to meet its interest obligation for the coming years.
 The net worth of the company is increasing gradually and is also expected to increase further in coming years
too. This states that client will be able to absorb losses and conduct its normal operation even under difficult
circumstances. It sends positive gestures to outsiders in terms of company gaining both financial stability and
business growth over the years.
 The working capital requirement for the FY 2077/78 is projected to be NPR. 595.71 Lakh, which justifies the
proposed credit facility.
 As per the projection report for FY 2077/78 the cash flow from operation is negative however in FY

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 M/s. Karuna Interior Pvt. Ltd -Renewal

2078/79 it shows positive as per the projection which indicates the smooth operation of the business.

e. Technical & Manpower Strength

The company has around 6-8 permanent staffs. The company also hires workers on contract basis depending upon the
load of works.

2. Justification by Security of the loan:

I. Collateral Security
“000”
Owner Relation Plot Location Type Area Market Distress Status
No Value Value
Sq. Mtr

128 Wad No. l. 79.49 Already

mortgaged
188 Chandragiri 508.74 for Karuna
Municipality (Sabik Interior
Ward No. 2 Nqa.
190 Sabik Dahachowk L&B 461.05 95,308K 73,256K NPR 73,256K
1 Karuna Self
VDC). (DV of FAC)
Interior
131 508.74
Kathmandu District.
Pradesh No. 3.
Nepal

1,558.02 95,308K 73,256K

Total

Valuation Report

S.N. as per Previous Valuation Current Valuation

above Valuator Dated Value Valuator Dated
1 Draft &Design 19.06.2019 73,256.00
Pvt. Ltd.

Summary of Valuation Report

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 M/s. Karuna Interior Pvt. Ltd -Renewal

SN as per above table 1

Name of Property Owner M/S KARUNA INTERIOR P LTD.
Location WARD NO:1 CHANDRAGIRI MUNICIPALITY ( SABIK WARD NO:2 DAHACHOWK
VDC)
Distance from our (any) branch About 10Km from our Branch
Plot No 128,188,190 &131
Approximate distance from Around 500m from srijana Chowk
prominent place

Date of registration of property 2/16/2071

Mode of Registration rajinama
Rajinama Value if date of
registration is < 1 Year
Plot no; E W N S
131 129 188 &190 31 189 &188
Four Boundaries 188 189 331 &101 190 101 &249
128 road 189 127 248
190 131 33 33 & 31 188
Road Access (width) 13'-0" towards east
Area as per Lalp[urja 3-1-0-0
Area Considered for Valuation 1447.034 sq.mtr

Market Value of the area (per 22,00,000 per anna

unit area)
Government Value of the area 300,000.00 per ana
(per unit area)
Mode of Valuation (40-60; 70- 70-30
30; 80-20 etc)
Distress Value per unit area
Market Value of Land 85,112,000.00
Distress Value of Land 63,060,000.00
Area of Building as per 3226 Sq ft
approved drawings

Area of Building Considered for 3226 Sq ft

valuation
Value of Building 10196000
Total DV Value of Property 73,256,000.00

Collateral / Residential Site Visit “000”

S.N. as Visiting Staff Visit Date Present Use Road Access Market Is it
per above Value bankable
Yes or No
1 Krishna Hari 17.06.2019 Residential 13 ft Black Topped 95,308K Yes
Bhandari Towards East Side

Collateral Security Coverage

“000”

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 M/s. Karuna Interior Pvt. Ltd -Renewal

Facilities Security Coverage Required Security Value

as Proposed
Type Existing Proposed Existing Proposed %
%
Overdraft Loan 1,90,00,000.0 1,90,00,000.00 150% 150% 2,85,00,000.00
0
Term Loan 2,00,00,000.0 2,00,00,000.00 125% 125% 2,50,00,000.00
0
Total Collateral Security value required 5,35,00,000.00
Available Collateral Security value as detailed above 7,32,56,000.00
Excess (Less) on Collateral Security Value 1,97,56,000.00
ii. Hypothecations over stock and plant machinery
iii. Assignment of Receivables with Power of Attorney for NPR 39,000K
iv. Letter of Continuity
v. Corporate Guarantee of M/s. Karuna Interior Pvt. Ltd.
vi. Personal Guarantees
Name Father’s Name G. Father’s Name Spouse Guarantee Declared Net
Amount Worth
Devraj Sharma Jagdish Mishra Tulshi Ram Mishra Devika Mishra 3,900K 5,000K

Bipin Sharma Jagdish Mishra Tulshi Ram Mishra Pratibha Niroula 3,900K 5,000K

Details of Insurance Policies:

S.N Assets Insurance Company Insured Insurance Expiry Status
Insured Amount Coverage
1. Building, Lumbini Insurance Co. 63,600K 30.01.2020 Updated
P &M
2. Stock Lumbini Insurance Co. 55,000K 30.01.2020 Updated
3. Justification by Performance Record (In case of Existing Client)
FY 76/77______ FY__77/78_____
SN Facilities Transaction turn over for last 2 years
No of Tran Amount No of Tran Amount
1 Credit turnover (OD/CC)
Type of Income Earning from Facilities
3 Interest Income
a Overdraft 2,207.66
b Cash Credit
f TERM LOAN 2,075.98 197.82
b Guarantee Comission
c LC Comission (LC, SWIFT, Postage & Others) 1.06
Total Income 4,284.70 197.82
Never Rarely Often Frequently
Comments regarding past due history

Earning expected to be derived on the basis of new/renewal limits Rs. IN '000'

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 M/s. Karuna Interior Pvt. Ltd -Renewal

FACILITIES PRICING INT. SER. CHR. REW. CHR COMM. OTHERS TOTAL
Overdraft Loan 9.93% 1,886.70 142.5 -- 2.75 1,889.45
Term loan 10.43% 1,981.70 -- -- 1,981.70
TOTAL 1,886.70 - 142.50 - 2.75 1,889.45

C. Credit Risk Assessment

Risk Grading Matrix- Business Entity
Aggregat
S.N. Factor Actual Position Mark
e
1 Liquidity Position Current ratio more than 2 times 3
2 Repayment Capacity Debt service coverage ratio up to 1 time or no information 5
3 Debt Ratio Total Debt to total assets ratio more than 60% to 80% 4
Financial Risk 21
4 Profitability ROA below 15% 5
5 Nature of the % of Fixed asset on total assets less than 10% 1
investment
6 Size of Credit Total group exposure between Rs.100 to Rs. 500 million 3
7 Managerial quality of Have experience of more than 5 years on same business along with 1
the key person related academic background
8 Management Risk Support Team & Equally capable another one person is available on the concern 2 7
Successor
9 Period of Business Business recently came on operation 4
Operation
10 Period of association Recently opened account for banking with us / Account yet to open 5

11 Performance record New Client / Default not more than 2 times in a year & period not more 4
Relationship Risk than30 days 10
12 Know Your Customer Duly filled up loan application, BSVR, CSVR & RSVR of key person & 1
(KYC) collateral owner along with evidencing documents obtained
13 Sector Trading sector 3
Industry Risk 5
14 Product/ Service The product/service is widely accepted within the country 2
15 Brand Image The product/service brand of the concern is growing image in the market 3
Market Risk 7
16 Market Competition Many competitors are in the targeted market but running normally 4
17 Type of security Real estate property taken as the collateral security 2
18 Security Coverage Value of cash equivalent security or mortgage property covers the total 1
Security Risk Ratio credit exposure by at least 110% 4
19 Quality of the First party owned mortgage collateral including residential property at 1
collateral security prime market area
20 Risk Weight as per Basel Claim on corporate (100% risk weight requirement) 4 4
Total 58
LEVEL OF RISK MANAGABLE RISKY
Comment on Risk Assessment

ACCEPT UNDER FOLLOWING CONDITIONS: i) Security coverage not less than as

Requirement as per credit risk management
prescribed by the CPG of the bank,
policy of the bank
ii) Charging interest at least 1% more than published lower side rate.
Sector-wise Risk
Covenants
D. Certification of Compliance
Compliance of previous approval condition -Applicable on credit review
Condition put from HO on previous
approval of the credit
Status of implementation

Compliance of banking act, NRB Directives & internal policy of the bank. Yes or No

The client and/or its proprietor/shareholder/director/guarantor or his/her family member is not holding Yes
share of this bank by 1% or more
The client and/or its proprietor/shareholder/director/guarantor is not associated with the director or Yes
family member of the director of this bank.

The proprietor/shareholder of the client holding 50% share is not the executive or managerial level Yes

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 M/s. Karuna Interior Pvt. Ltd -Renewal

official of the BFIs.

The client, its proprietor, shareholder, director or guarantor is not in the blacklist of Credit Information Yes
Center.
The client and/or its proprietor/shareholder/director/guarantor is not the family member of any official Yes
of this bank.
The proposal is complied with the Bank’s Credit Policy Guidelines Yes
The proposal is complied with the Bank’s Risk Management Policy Yes
The proposal is complied with the Nepal Rastra Bank Directive Yes
E. Recommendation:Based on the above information and documents submitted by the client, request of
the client for sanction of following funded facilities under following mentioned terms and conditions is forwarded
for review and approval.

1. Facility : Overdraft Loan (Renewal)

Limit : NPR 19, 000,000.00(Nepalese Rupees Nineteen Million Only)
Purpose : To fulfill working capital requirement of the firm.
Disbursement : Sanctioned / upon approval & Annually Renewable
Premium Rate : Applicable premium rate on this loan is 2.00% to 5.00%
Present Effective : 2.00% over the prevailing base rate (7.93%)
Premium Rate
Present Base Rate : 7.93%
Condition : In case of any irregularity/ default recorded on this credit account, bank shall
increase the effective premium rate within above mentioned applicable premium rate
of 2.00% to 5.00%
Service Charge : 0.75% of Loan Limit (i.e. NPR. 142,500.00)
Prepayment Charge :0.15% in case of prepayment from source other than own revenue.
CIC charges :NPR 2,750.00
Repayment : Lump sum within Expiry.
Expiry : 15.08.2021
Securities : 150% of FAC coverage along with PG and corporate guarantee.

2. Facility : Term Loan (Continuation)

Limit : NRs. 20,000,000.00 (Nepalese Rupees Twenty Million Only)
Purpose : To fulfill fund requirement of the company for already used machines based on recent
valuation
Disbursement : N/A
Premium Rate : Applicable premium rate on this loan is 2.50% to 5.00%
Present Effective : 2.5% over the prevailing base rate (7.93%)
Premium Rate
Present Base Rate : 7.93%
Condition : In case of any irregularity/ default recorded on this credit account, bank shall
increase the effective premium rate within above mentioned applicable premium rate
of 2.50% to 5.00%
Service Charge : N/A
Prepayment Charge : N/A
Repayment : Total 120 EMI of Rs.300, 866.99
Expiry : 10.08.2029
Securities : Charge on the financed machine by taking title ship on bank’s name and tie-up with
collateral security purpose.

13
 M/s. Karuna Interior Pvt. Ltd -Renewal

Waivers, if any: N/A

 Interest Rate:

Proposed Exposure (in Million)

Total Funded
Total N Funded
Total 0
Decision of _____ BOD (If
Applicable)- Amt in Million

Total Funded
Total N Funded
Total 0

_____________ ____________
Recommended By Recommended By
Name: Anju GC Name:Krishna Hari Bhandari
Designation: RM Designation: Branch In-charge

Province Office Decision or Comments, if any:

_________________
Rec./Approved by
Name:
Designation:

Head Office Credit Department Comments, if any:

_________
Recommended by
Name:
Designation:

________________
Rec./Approved By
Name:
Head of Credit
Head Office Credit Risk Management Department Comments, if any:

________________
Recommended by
Name:
Designation:

Chief Credit Officer’s Decision/Comments, if any:

14
 M/s. Karuna Interior Pvt. Ltd -Renewal

_________________
Approved/Rec. by
Name:
Designation:

Dy. Chief Executive Officer’s Decision/Comments, if any:

_______________
Approved/Rec. by
Name:
Designation:

Recommendation/Comments of Credit Committee

_______________ _______________ _______________ _______________

Recommended by Recommended by Recommended by Recommended by
Name: Name: Name: Name:
HOC COO CBO CRO

_______________ _______________ _______________

Recommended by Recommended by Recommended by
Name: Name: Name:
CFO CCO Dy.CEO
Approving authorities comments, if any, on the proposed terms and conditions.

___________________
Approved by
Name:
CEO

15
 M/s. Karuna Interior Pvt. Ltd -Renewal

CAD Annex
C0FL sDkgLsf] gfd >L s?0ff OG6]l/o/ k|f=ln= hdfgLstf{sf] gfd >L b]j/fhzdf{
>L hulbzzdf{ ld>÷>L
hf/L ug{] sfof{no sDkgL /lhi6«f/sf] sfof{no afa'÷kTgLsf] gfd b]ljsfld>
>L t'n;L/fdld>÷>L /fdk|;fb
btf{ g+= #%!^&÷)^!÷)^@ afh]÷ ;;'/fsf] gfd vgfn
btf{ ldlt @)^@–)#–@& gful/stf g+= )$!))&÷&(!
kfg= g+= #)@^@@%*$ hf/L ePsf] ldlt la=;+= @)^%÷)&÷!*
kf=g+= hf/L ldlt / 7]ufgf @)^$–)@–)(, sf7df08f}–! hf/L ePsf] lhNnf lh=k|=sf=M emfkf
:yfoL 7]ufgf
#)@^@@%*$ -gof“ ;
Eof6 g+= +/rgfadf]lhdfsf]_ j8f g+=–^, rGb|u9L, emfkf
xfnsf] 7]ufgf
-gof“ ; j8f g+=–@, u}x|Lwf/f,
d'=c=s= btf{ ldlt @)^%–!)–)! +/rgfadf]lhdsf]_ sf7df08f}
C0fL kmd{sf] 7]ufgf j8f g+=–#@, l8NnLahf/,
-gof“ ;+/rgfadf]lhdsf]_ sf7df08f} pd]/ %@aif{
hdfgLstf{sf] gfd >L b]ljsfzdf{ hdfgLstf{sf] gfd >L ljlkgzdf{ld>
>L /fdk|;fbvgfn÷>L >L hulbzzdf{ ld>÷>L k|ltef
afa'÷kltsf] gfd b]j/fhzdf{ afa'÷kTgLsf] gfd lg/f}nf
>L OGb|k|;fbvgfn÷>L >L t'n;L/fdld>÷>L s]zjk|;fb
afh]÷ ;;'/fsf] gfd hulbzzdf{ ld> afh]÷ ;;'/fsf] gfd lg/f}nf
gful/stf g+= )$!)!@ ÷!!$( gful/stf g+= )!@*#@(*
hf/L ePsf] ldlt la=;+=@)^%÷)&÷!& hf/L ePsf] ldlt la=;+= @)%@÷)&÷@!
hf/L ePsf] lhNnf lh=k|=sf=M emfkf hf/L ePsf] lhNnf lh=k|=sf=Memfkf
:yfoL 7]ufgf
:yfoL 7]ufgf -gof“ ;
-gof“ ;+/rgfadf]lhdsf]_ j8f g+=–^, rGb|u9L, emfkf +/rgfadf]lhdsf]_ j8f g+=–^, rGb|u9L, emfkf
xfnsf] 7]ufgf
xfnsf] 7]ufgf j8f g+=–@, u}x|Lwf/f, -gof“ ; j8f g+=–@, u}x|Lwf/f,
-gof“ ;+/rgfadf]lhdsf]_ sf7df08f} +/rgfadf]lhdsf]_ sf7df08f}
pd]/ $#aif{
pd]/ $@aif{

hdfgLstf{sf] gfd >L k|ltef lg/f}nf

>L s]zjk|;fb lg/f}nf÷>L
afa'÷kltsf] gfd ljlkgzdf{ ld>
>L d's'Gbk|;fb lg/f}nf ÷>L
afh]÷ ;;'/fsf] gfd hulbzzdf{ ld>
gful/stf g+= $^&(!÷@$))

16
 M/s. Karuna Interior Pvt. Ltd -Renewal

hf/L ePsf] ldlt la=;+= @)%*÷)#÷)&

hf/L ePsf] lhNnf lh=k|=sf=MtfKn]h'ª
:yfoL 7]ufgf
-gof“ ;+/rgfadf]lhdsf]_ j8f g+=–@, km'naf/L, tfKn]h'ª
xfnsf] 7]ufgf j8f g+=–@, u}x|Lwf/f,
-gof“ ;+/rgfadf]lhdsf]_ sf7df08f}
pd]/ #*aif{

;'? shf{ :jLs[lt g+=

ldlt M

b[li6aGws ul/g] lwtf]x? -go“f_

hUuf

lhNnf If]qkmn lsQf g+= lsl;d÷ k|sf/

j8f g+=÷l;6 g+= b[li6aGws ldlt÷/=g++ b[li6aGws d"No lwtf]wgL

rf/ lsNnf

ls=g+= k"j{ klZrd pQ/ blIf0f

!#!, !**, ! !@(, !*(, !**/ !(), ##/ !)!, !*(, ## #!, !(), !@&, ## / #! !*( / !*&, !)! /
@*, !() leqLkSsL df]6/ @$(, @$*, !**
af6f], !#!

b[li6aGws ul/Psf] lwtf]x? -;fljs_ M

3/ tyfhUuf

lhNnf If]qkmn lsQf g+= lsl;d÷ k|sf/

sf7df08f} %)*=&$, %)*=&$, !#!, !**, !@*, !() hUuf
&(=$( / $^!=)%
j8f g+=÷l;6 g+= b[li6aGws ldlt÷/=g++ b[li6aGws d"No lwtf]wgL
@ ÷ @ª >L s?0ff OG6]l/o/ k|
f=ln=

6d{ shf{
d];Lgtyf pks/0fsf] ljj/0f

btf{ g+=

17
 M/s. Karuna Interior Pvt. Ltd -Renewal

O{GhLg g+=÷ r];L; g+=

df]8n

kf/Ljf/Ls ljj/0f

gfd gftf gfu/Lstf g+= hf/L lhNnf hf/L ldlt pd]/

>L b]ljsfzdf{ kTgL )$!)!@ ÷!!$( emfkf @)^%÷)&÷! $@aif{
&
>L ljlkgzdf{ efO{ )!@*#@(* emfkf @) $# aif{
%@÷)&÷@!
>L k|ltef efO{–a'xf/L $^&(!÷@$)) tfKn]h'ª @)%*÷)#÷)& #* aif{
lg/f}nf

18