final. eb (repaired)

EXECUTIVE BRIEF(Sanction/Review/Renewal)

SANCTIONING AUTHORITY: ZONAL OFFICE LEVEL CREDIT APPROVAL COMMITTEE

BORROWER’S PROFILENAME OF THE ACCOUNT : Evergreen Boardlam Private limitedGROUP : Not belonging to any recognized group.ASSET CLASSIFICATION (As of- Last Quarter)

: Standard as on 31.10.2013

1 ACCOUNT WITH : Branch ZoneMCB Surat Ahmedabad

i Constitution : Private limited companyii Company Identification

Number(CIN) /registration Number ( as applicable)

U21015GJ2011PTC065872

iii Date of Incorporation/Establishment

: 13.03.2011

iv Registered Office : Block No.139, Plot No.1,.H.No.8, Near Neelam Hotel,Kadodara Char Rasta, Palsana, Surat.

v Corporate Office : Block No.139, Plot No.1,.H.No.8, Near Neelam Hotel,Kadodara Char Rasta, Palsana, Surat.

vi Factory/Worksite Block No.110. R. S. No. 140/2, At & Post : Ninat, Tal : Bardoli, Dist : Surat

vii Dealing with us since : August 2012viii Date of Last Sanction

/Renewal/Review and Sanctioning Authority

: On 21.08.2012 BY RLCC headed by DGM. Further modification proposal sanctioned by ZLCC on 28.02.2013.

ix Status of compliance of terms & conditions of last sanction

: Yes Compliance certificate submitted on 08.05.2013. Copy of compliance certificate is enclosed herewith for your reference.

x Market Perception : Not applicable since not a listed company xi Market Capitalisation :

2 PRESENT PROPOSAL :-To review the existing Term loan – I on reduced Balance of Rs. 2.62 crore ( sanctioned limit 2.90 Crore)- To review the existing Term loan – II on reduced Balance of Rs. 11.02 crore ( sanctioned limit 11.80 Crore)- To enhance the CC cum ODBD limit from RS. 3.85 crore to RS. 10.00 crore

Other request - To curtail the sanctioned BG limit of RS. 1.00 crore to 0.35 crore - To reduce the margin of CC cum ODBD limit from 40.00 % to 25.00%

Review cum Enhancement Proposal of Evergreen Boradlam Pvt. ltd with MCB Surat 1

2.a LIMITS RECOMMENDED : (Rs in crore)

Facility Limits Interest/Comm. MarginFBWC (Exit) (Prop) (Exit) (Prop) (Exit) (Prop)CC cum ODBD limit 3.85 10.00 BR +3.50 BR +3.50 40.00% 25.00%

Sub total 3.85 10.00NFBWCBG limit 1.00 0.35 As per

circularAs per circular 10.00% 10.00%

Sub total 1.00 0.35TL-I 2.90 2.62# BR +3.50

+1.00BR +3.50 +1.00 35.00% 35.00%

TL-II 11.80 11.02# BR +3.50 + 1.00

BR +3.50 +1.00 25.00% 25.00%

Sub Total 14.70 13.64

TOTAL 19.55 23.99#o/s as on 03.12.2013. 3 I Industry : Agro waste industry

Ii Line of Activity : Manufacturing of particle board.Iii Facility Arrangements : Sole Banking Arrangement Iv If Consortium, lead bank with share : Not applicable V Our Bank’s Share : Not applicable Vi Number of Banks in Cons/JLA : Not applicable Vii If new relationship, asset

classification with existing Banks as on.............

: Not applicable

Viii If take Over, whether all norms complied with

: Not applicable

Ix Whether Large / Mid Corporate / SME / Agriculture ?

: Large

X Whether Sensitive Sector: Real Estate / Capital Market / NBFC?

: No

Xi Provisioning requirement As applicable to standard asset.

4 SHARE HOLDING PATTERN AS ON: 31.03.2013I Name of Promoters / Major share

holdersNo. of Shares (Rs. in crore) % Holding

Ii Promoters 2907000 2.90 100.00Iii FIs/Mutual Funds/UTI/Banks/FIIs 0 0.00 0.00Iv NRI’s/ OCBs 0 0.00 0.00V Public 0 0.00 0.00Vi Total 2907000 2.90 100.00Vii Whether Pledged to any No


Bank/FI/Others

4.a INTERNAL RISK RATINGOverall Financial Business Management

Present rating based on ABS as on: 31.03.2013

CBI V CBI I CBI IV CBI IV

Previous rating based on ABS as on: 31.03.20131.03.2012

CBI V CBI I CBI IV CBI IV

Denoting Moderate Safety

4.b EXTERNAL RISK RATINGAgency Rating Date of Rating Purpose Valid up toICRA B March 2013 Long term funds March 2014

A4 March 2013 Short term funds March 2014DenotingRisk Weight As applicable to standard asset. 5.a: DETAILS OF NBG APPROVAL DATED,IF ANY: Not applicable

5.b POINTS WHERE RECOMMENDING AUTHORITY RECOMMENDATIONS NOTBEING CONSIDERED BY CENTRAL OFFICE: Not applicable

5.c PRICING /COMMISSION/UPFRONT FEE/PROCESSING /OTHER CHARGES

Approval for pricing As per Rating /Policy Recommended by BrRate of InterestCCH cum ODBDTERM LOAN

BR +3.50BR +3.50+1.00

BR +3.50BR +3.50+1.00

Upfront Fee 0.50% 0.50%Processing charges FB Limits:0.40%

(Minimum 0.40 lacs and Maximum Rs 20 lacs) NFB: 50% of FB Charges.

FB Limits:0.40% (Minimum 0.40 lacs and Maximum Rs 20 lacs) NFB: 50% of FB Charges.

Inspection Charges Rs 10000/- Rs 10000/- Commission etcLCLGSBLC

As per circular As per circular

Other charges (Specify)

Nil Nil

5.d Other Bank’s Pricing: State ROI /Commission being charged/ proposed by Lead Bank, Maximum/Minimum ROI/Commission charged by other Banks (with name of Bank. Not applicable since credit facilities are under sole banking arrangement.


5.e MODIFICATIONS: (Justification given in recommendatory part point 12.1 : NIL

5.f OTHERS such as : I Time period for Security Perfection Not Requested Ii Release of limits pending security

creation.Not Requested

iii Release of limits on the basis of individual documents subject to NOC from Lead Bank

Not Requested

Iv Waiver of pre-post shipment cover of ECGC

Not Requested

V Waiver of insurance Not Requested vi Waiver of stock inspection etc, Not Requested vii Transfer of DP Not Requested viii Interchangeability in limits: Not Requested Ix Others Not Requested

5.g DEVIATIONS FROM POLICY: (Justification for each deviation to be given point 9.9 of the proposal.)PARTICULARS AS PER POLICY ACTUAL/ESTIMATED

I CURRENT RATIO 1.33 :1 Actual : 0.88Projected 1.33

Ii DE RATIO 3:1 Actual : 1.67Projected 0.86

iii TOL/TNW 4:1 Actual : 2.34Projected: 1.86

Iv DSCR 1.50 1.78V IRR 15.00% 21.40%vi MARGIN 25.00% Building : 35.00%

Machineries : 25.00% CC cum ODBD : 40.00%

vii TAKE OVER NORMS Not applicable Not applicable viii WAIVER OF LOAN

DELIVERY SYSTEMNot applicable Not applicable

Ix OTHERS Not applicable Not applicable X Whether within the internal cap fixed for the

activity/industry as per Loan Policy. (CO ITEM)

5.h SHARING PATTERN: (Working Capital/ Term Loan) : Not applicable

5.i Item Bench Mark Level Actual/proposedFACR 1.50 Actual : 2.04

Projected : 2.44ACR 1.50 Actual : 1.82


Projected : 2.05INTEREST COVERAGE RATIO 2.00 Projected : 2.21

5.j In case of review of existing term loans:Whether repayment of instalment/interest is regular? Yes/No ( State reasons if No in brief)

Yes

In case of review of term loan under disbursement whether project is progressing as per schedule: Yes /No ( State reasons if No in brief)

Not applicable since not under disbursement phase

Conduct & Operations in the account are satisfactory: Y/N. If not, give reasons in brief

Satisfactory

5.k FRESH TERM LOAN: Not proposed

6 A Primary Security: (State in brief whether Exclusive/ 1st paripassu/2nd charge with value of Rs. 29.92 as on date ) (Details as per point 9.14(i) of the note):

B Collateral Security: (State in brief whether Exclusive/ 1st paripassu/2nd charge with value of Rs. 3.87 as on date.) (Details as per point 9.14 (ii) of the note)

c PERSONAL/CORPORATE GUARANTEE:Name Worth As on

1 Limbani Jitendra Popatbhai 89.96 31.03.20132 Patel Uttamkumar Waljibhai 96.30 31.03.20133 Patel Vitthalbhai Nanjibhai 29.90 31.03.20134 Patel Mitesh Kantilal 26.86 31.03.20135 Patel Jethabhai Virjibhai 30.79 31.03.20136 Patel Premilaben Jethabhai 35.11 31.03.20137 Patel Bhavisha Dilipbhai 8.50 31.03.2013

7 A BRIEF HISTORY :

The Company promoters are engaged in trading activities such as Plywood, Sawmill, Timber Import, etc. The activities are related to timber wood/furniture making. With flourished business and as a part of business expansion, they have decided to go in for Particleboard Manufacturing Industry in their own line of trade, where they have good association with Market.

The Particleboard industry is growing. This is because of inexpensive panel product which could be produced from sugarcane waste or low-quality wood unsuitable even for plywood. Indian Economy offers scope for the proposed product ready furniture items required in small families especially in scenario when prices of the plywood are increasing with deficient wood supply conditions.

Particleboard is an engineered wood product manufactured from bagasse, wood particles, sawmill shavings, or even saw dust, and a synthetic resin or other suitable binder, which is pressed and extruded. Particleboard is a composite product of modern day development for wood substitute. Living standards and income middle class population are increasing in the country. With this demand for ready and modular furniture are increasing and cost of furniture also affordable rate is required


by the people where Particleboards has taken space and therefore, the Company will find good demand for its production.

We have sanctioned credit facilities of RS.19.55 crore in August 2012. Zonal office has accepted the company’s request and approved the release of RS. 1.00 crore CC limit with margin of 40.00% before COD for procurement of RM- Baggase on 28.02.2013. The company has started the production in September 2013. The commercial production of the company is going on in full swing. The company is servicing the interest and instalment regularly.

7 B CONDUCT & OPERATIONS IN THE ACCOUNT SINCE LAST REVIEW: Satisfactory

7 C DETAILS OF CONSORTIUM MEETING HELD SINCE LAST REVIEW ,IMPORTANT DECISIONS TAKEN ETC: Not applicable since sole Banking arrangement

7 D COMMENTS ON PRE-INSPECTION,DUE DILIGENCE AND MARKET REPORTS : NA7 e. PARTNERS/PROMOTERS/BOARD OF DIRECTORS: Name Designation DIN PAN UID

Limbani Jitendra Popatbhai Director 03540420 AALPL7512R Not applied Patel Uttamkumar Waljibhai Director 03540456 ABGPP5153L Not applied Patel Vitthalbhai Nanjibhai Director 03540463 ABGPP5323E Not applied Patel Mitesh Kantilal Director 03540467 AQVPP6374R Not applied

7.f BRIEF PROFILE OF DIRECTORS:

The Company is promoted by four young promoters having family as well as business association. All promoters have business activities. Viz Jitendra Popatbhai Limbani; Uttamkumar Waljibhai Patel; Vitthalbhai Nagjibhai Patel; and Mitesh Kantilal Patel.

Shri Jitendra Popatbhai Limbani is a technocrat. He is a chemical engineer.Presently he is running business in name of M/s Ornet enterprise as a partner. Shri Limbani has worked in various chemical industries before joining business. He has worked with Sintel Organics Ltd. Vapi, Aarti Industries Ltd. Vapi, and Alcon Pharmaceuticals Ltd, Vapi in various capacities in all departments which are important in industrial management. The experience gained by him will be handy for the current venture.

Shri Uttamkumar Waljibhai Patel is under-graduate and runs M/s. Kamal Enterprise. It deals in wood supply by importing different quality wood required in various timber industries/trade. He is a business man with experience in wood imports/supplies. He also has experience in textile machinery trade, Grey Fabrics and marketing of the fabric in textile market.

Shri Vitthalbhai Nagjibhai Patel is a 46 years. He is HSC. He has established a sawmill and running it successfully since 17 years. As saw mill is an industrial activity, he is conversant with law related to it and labour management.

Shri Mitesh Kantilal Patel is HSC. He is running family business. He is comparatively fresher in the business.


8: OPERATIONAL RELATIONSHIP

(8.a) Income to the Bank: ( Rs. in crore)From Company Interest Income Fee Based Income TotalLast Year 0.19 0.07 0.26Current Year up toCompleted Months

0.74 0.00 0.74

Sub Total 0.93 0.00 0.93From other Group AccountsLast Year 0.07 0.00 0.00Current Year up toCompleted Months

0.03 0.00 0.00

TOTAL 1.03 0.07 1.208.b DETAILS OF CROSS SELLING: ( Rs in crore) : NIL

(8.c) TOTAL INDEBTNESS AS ON: 03.12.2013 (Rs. in crore)Facility Fund Based Non- Fund Based Total

Limit O/s Limit O/s Limit O/sOur BankW.C. 3.85 2.54 1.00 0.35 4.85 2.89Term Loan 14.70 13.64 0.00 0.00 14.70 13.64Sub Total 18.55 16.18 1.00 0.00 19.55 16.53Other Banks 0.00 0.00 0.00 0.00 0.00 0.00TOTAL 18.55 16.18 1.00 0.35 19.55 16.53

(8 .d) POSITION OF ACCOUNT WITH US AS ON 03.12.2013 (Rs. in Crore)Nature ofFacility

Limit Nature of Security

Value of Security

Margin DP O/S Balance

Overdue, if any

CC cum ODBD 3.85 Hypothecation of stocks

4.55 40.00% 2.72 2.54 Nil

Term loan I 2.90 EM of factory building

4.46 35.00% 2.72 2.62 Nil

Term loan II( FLC/ Buyers credit)

11.80 Hypothecation of P& M

15.75 25.00% 7.03 11.02 Nil

BG 1.00 0.35Total 19.55 # includes Buyers credit of Rs. 3.07 crore

(8.e) OPERATIONS IN THE ACCOUNT: CC/ODBD (Rs. in crore) Period From 01.04.2013 to 30.11.2013Facility Limit Credit

SummationDebit Summation

Out of Order

CC um ODBD 3.85 7.26 8.73Reasons if sales are not being routed through the account and steps initiated to improve the same: NA sales are routed through account.


(8.f) BILLS/LC/LG/Cheques (Period September 2012. To November 2013 Rs. in crore)

Number Amounti Total No. of Bills purchased /discounted during the

PeriodNil Nil

ii Out of which bills returned unpaid Nil Nil iii Reasons of Bills returned unpaid

AND/OR delay in retirement noticedNil

iv Total No. of cheques purchased during the Period

Nil Nil

v Cheques returned unpaid Nil Nil vi Reasons of cheques returned unpaid: Avii Total no of Letter of Credit (Inland) opened during

the periodNil Nil

viii Out of which L/Cs (inland) devolved Nil Nil ix Reasons of devolvement under L/C and steps taken to mitigate the same: NAx Total no of Letter of Credit (import) opened during

the period5 3.07

xi Out of which L/Cs (import) devolved Nil Nil xii Reasons of devolvement under L/C and steps taken to mitigate the same: NA

xiiiTotal no of Letter of Guarantee opened during the Period

1 0.35

xiv Out of which guarantees invoked Nil Nil xv Reasons of invocation of guarantees and steps taken to mitigate the same: NA

(8.g) Availment of limits: (Rs. in crore)Facility Limit Max. O/S Min. O/S Average availment % availment *CC cum ODBD

3.85 3.00 0.00 3.00 100.00%

Reasons for poor availment and steps initiated to improve the same:

(8.h)Details of Short Term Loan /Adhoc sanctioned during last 12 months by our Bank , if any. (Rs. In Crore) NIL

(8.i) Term Loans from other Banks /FIs/Other Institution- (including Loans / CDs/ Corporate Loans, Debentures etc. NIL

(8.j) Details of Working Capital limits under Consortium/JLA/MBA ( Amt in crore) NA(8.k) Details of Working Capital limits outside Consortium/JLA, if any. ( Amt in crore) NA

8.l Group Exposure (As on 28.11.2013) (Rs. in crore)Name of the A/c

Last Sanction

Fund Based Non-Fund Based Total

Limit O/s. Limit O/s Limit O/s


1 Mahakali stone quaryy

1.16 0.55 1.16 0.55

23

TOTALCONDUCT OF THE GROUP ACCOUNTS AND OVERDUE POSITION, IF ANY:

8.m Group Financials ( All group Companies taken together) ( Rs in lacs)S.No Year FY

AuditedFYProjection

FYProjection

1 Adjusted TNW of the Group (Without unsecured Loans as quasi-equity)

594.3 1239.69 1580.22

2 Adjusted TNW of the Group (With unsecured Loans as quasi-equity)

796.9 1239.69 1580.22

3 Total Fixed Assets 1610.54 2035.71 2035.71

4 Total Term loans 991.66 1266.89 1032.29

5 Total working Capital (FB)+ STLs

95.55 1000 1000

6 Total working Capital (NFB) 35 35 35

7 Total indebtedness (4+5+6) 1122.21 2301.89 2067.29

8 FACR ( ¾) 1.624084868 1.60685616 1.972033053

9 ACR (chargeable assets/total indebtedness)

1.619411697 1.550795216 1.878715613

10 Total Sales/Revenues 0.00 1629.51 3668.42

11 Total PAT 0.00 105.81 339.55

9 RISK ASSESSMENT:i Status of Compliance of Terms of Sanction. (Give reasons if

terms not complied with; risk perception and mitigation thereof)

Complied with compliance certificate submitted on 08.05.2013.

ii Whether any of the Directors/Company appearing in - (Give date of report)Caution Advices circulated by the Bank: NoRBI’s Wilful defaulters list: December 2012


Caution advice of ECGC/SAL: Updated up to 27.11.2013CIBIL: 19.11.2013

iii Compliance of KYC Norms Complied with iv Whether any of the Directors/Company is connected in

the past with any NPA/One Time Settlement etc ?Reported no

iv Whether any of the Directors is related to Directors/Senior Officers of Central Bank of India/Other Banks ?

Reported no

v Whether there has been any change in the Management since last sanction ?

No

vi Whether there is any litigation initiated against the Borrower by any Bank/FI/Govt Agency etc.?

Reported no

vii Whether account has been restructured in the past by the Bank/CDR or BIFR .If yes, present status viz-a-viz restructuring package approved ?

Reported no

viii Whether the proposal is in conformity with RBI/FEMA Guidelines/Banks Loan Policy

Yes

Ix Whether increase in investment in subsidiaries/affiliates is noticed. If yes, its impact on company’s liquidity position, return on such investment, necessity, justification and when investment made is likely to be received back ?

No

X Whether all Statutory permissions required under the law of the Land are in place? (Permissions/Approval pending should be mentioned here.) ANDRisk envisaged due to anticipated delay/delay in commissioning of Project.

Yes

xi Group Risk (i.e. our total exposure to the Group should be discussed here and commented upon as to safety of Bank Funds etc.)

The company also their one associate concern is dealing with our Bank. The conduct of the account is satisfactory.

xii Product/Activity Risk The product risk is low as The product manufactured by the company is accepted by the market. The company is having letter of intent of their existing two customer for confirm order

xiii Market Risk i.e acceptability of product manufactured by the Company

The product manufactured by the company is accepted by the market. The company is having letter of intent of their existing two


customer for confirm order

xiv Country risk in case Export Bills discounted without L/C Not applicablexv In case of Export oriented accounts whether opinion

on foreign buyer is obtained periodically from ECGC/MIRA Inform./Dun& Bradstreet

Not applicable

xvi Whether opinion report on the suppliers of raw material/P&M obtained in case of L/C opened by us on behalf of our Borrower ?

Not applicable

xvii Whether Dun& Bradstreet or approved agency report obtained in case of finance to Joint Ventures abroad on the foreign JV Partner?

Not applicable

xviii In case Company is engaged Export/Import, following information should be informed

Export Import

Total Foreign Exchange exposure Not applicable Out of which hedged position Not applicable If un-hedged, how the borrower plans to cover it Not applicable

9.1 Compliance of Prudential Cap (Amt. In crore)Borrower Bank Group Bank

Fund Based

Non Fund BasedInvestmentForward Contract(conversion factor)Total

9.2 EXPOSURE LIMITS ( INDUSTRY/EXPOSURE WISE)I Type of Industry Agro based Industry –particle boardIi Cap fixed for the industry for........... Central office item iii Existing Exposure as on Central office item

9.3 Unsecured exposure (Including Proposed) as at :

Not applicable

Gross Bank Credit as at Rs Not applicablePercentage: Not applicable

9.4 Compliance of exposure norms with regard to Borrower’s Net Worth

Complied with. The TOL /TNW ratio of the Company is 2.34 and 1.86 as on 31.03.2013 and 31.03.2014 which is within the benchmark level of 4: 1.

9.5 Compliance of RBI Instructions on Loan Delivery System

Yes

9.6 FIXED ASSETS COVERAGE RATIO –TERM LOAN


Nature Existing Proposed as on 31.03.2014Primary 26.00 29.43Collateral 3.87 3.87Total 29.87 33.30Term Loan 14.70 13.64FACR 2.04 2.44

9.7 ASSET COVERAGE RATIO: Total chargeable assets+ value of collateral/total indebtedness from the Banking system.

i Nature Existing Proposed as on 31.03.2014ii Primary 29.92 44.61iii Collateral 3.87 3.87iv Total 33.79 48.48v Working Capital 3.85 10.00vi Term Loan 14.70 13.64vii Total 18.55 23.64viii ACR (iv/vii) 1.82 2.05

9.8 LAST TWO STOCK INSPECTIONS & STOCK AUDIT:Date of Inspection By whom Findings (Satisfactory / Unsatisfactory)29.10.2013 (S B P SINGH)

Chief Manager Satisfactory

02.08.2013 ( J VPOOJARY)AGM & RM

Satisfactory

Stock Audit Zonal office has assigned the stock audit work which is under process.

9.9 LOAN POLICY DEVIATIONS: NIL

9.10 Auditor’s observations / adverse feature, as noticed in the Company’s last available audited accounts for the last year ended 31st March 2013

No major audit observation noticed.

9.11 Whether Diligence Report from Company Secretary & Certificate by C.A. as per RBI Guidelines have been furnished?

Not applicable since sole Banking arrangement

9.12 Comments on Rectification of Deficiencies observed in: Internal / Concurrent /Statutory Auditor's Report/RBI Inspection/ Loan Review Reports Date of Rectification/Date of Closure of report.(In case not rectified/closed, reasons thereof)

As under

Internal audit report date 24.11.2012: Rectification and closure certificate submitted on 26.02.2013

Concurrent audit report for the months September 2013: Rectification and closure certificate submitted on 15.11.2013.


Statutory audit report for the year 2012-13: closure report submitted on 05.04.2013 and closure has been submitted on 12.06.2013.

LRM report dated 29.09.2013: closure report submitted on 30.10.2013

Credit audit dated 06.03.2013: closure submitted on 09.05.2013

9.13i Date of release of limits/date of 1st

disbursement in case of Term Loans.Term loan : 11.09.2012CC : 06.03.2013

ii Whether time for security creation was given. If yes whether created within the extended period. If not, whether additional interest was charged.

Time period was not given. Security was created before disbursement

9.14 SECURITY((Mention whether Exclusive/1st /2nd /3rd Pari passu charge))i PRIMARY SECURITY

Nature / Description of Security

Nature of Charge

Security Value

Our share In %

Date of Valuation& Nameof Valuer

Insurance

Amount Expiry Date

Stock & Book Debts (As on 31.03.14)

Hypothecation

3.92 100.00% As per stock statement of October 2013

4.00 05.03.2014

Factory Land & Building situated at Block No.110, R.S.No.140/2, At & Post: Ninat, Tal: Bardoli, Dist: Surat.

Equitable Mortgage

13.70 100.00% Jashwant Mehta Dated 30.09.2013

2.00 05.03.2014

Plant & machineries Hypothecation

15.73 100.00% As per invoices. 13.00 05.03.2014

)ii COLLATERAL SECURITYNature / Description of Security

Nature of Charge

Security Value

Our share In %

Date of Valuation& Nameof Valuer

Insurance

Amount Expiry Date

Land & Building situated at Plot No.7 to 14, R.S. No.188/3, At Umiya Estate, Bhestan, Surat.

Equitable Mortgage

Rs. 3.43 100.00% S G MUNDHRA

Dated 21.06.2012

0.28 08.10.2014

Equitable Mortgage of Shop No. 14, Surya Plaza, Near Vidyabharti School, Bhatar Surat

Equitable Mortgage

Rs. 0.44 100.00% S G MUNDHRA

Dated 21.06.2012

0.30 08.10.2014

Iii Date of inspection/verification of properties Primary security visited on


charged to us as prime/collateral security 29.10.2013 Iv Comments on change in Prime/Collateral

security /Guarantor, if any:-No Change

V Status of creation of charge with ROC with date of creation

Yes on 31.08.2013 with charge id no 103822801038198710381991

Vi Whether Equitable Mortgage created on or after 01-04-2011, has been registered with the Central Registry of Securitization Asset Reconstruction and Security Interest of India (SERSAI) as per guidelines effective from 01-04-2011

Yes on 13.09.2012 with Asset ID no 200003778787200003779853200003779988

9.15 Reasons for downgrading in rating and increase in Risk perception as stated by RMD and Department comments/mitigation:

9.16 Risk & Mitigating factors template, SWOT and Industry Scenario and comparison with peer industries should be enclosed as Annexure)

SWOT Analysis:

Strengths:

Land offers scope for expansion with locational advantages Proximity to Inputs Cost competitive product to wood and Plywood Growing demand of the product

Weaknesses:

Dependency on inter plant operations Voluminous material handling Large product variety Dependency on Consultants, Chinese machinery Suppliers

Opportunities:

Established market relations Scope of forward integration in furniture making Consumption of process waste as fuel

Threats:

Adverse change in Government policy Large plant area covered with flammables

Mitigation of Weaknesses & Threats:


- For the dependency on inter plant operations the Company will have to keep stocks of glue,

resin, lamination/design paper so that interruption may not hurt main activity.

- Voluminous material handling is integral part of the activity. The Company will have to

always hire adequate manpower and material handling equipment’s.

- Large product variety needed as per the taste of the market. Design/lamination paper and

thickness of the boards will be decided by the market requirement. The Company will have

to keep updated with the market trends.

- Dependency on Consultants, Chinese machinery Suppliers is a key area. The Company should

make doubly sure itself about the competency, integrity, capability, skill, reliability of both of

the agencies.

- The Company will have to keep updated with economic developments in the field to track

any adverse change in Government policy

- The Company will have to train workers in fire safety training and put necessary freighting

devices in working conditions as large plant area will be covered with flammables.


2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Actual Proj Proj Proj Proj Proj Proj Proj 0 0 0 0 0 0 0 0Paid Up Capital 290.70 610.00 610.00 610.00 610.00 610.00 610.00 610.00

Reserve & Surplus 309.30 634.41 973.961323.4

31628.8

51955.9

22318.1

82701.2

9Intangible Assets 5.70 4.72 3.74 2.76 1.78 0.80 0.00 0.00

Tangible Net Worth 594.301239.6

91580.2

21930.6

72237.0

72565.1

22928.1

83311.2

9

Adjusted TNW 796.901239.6

91580.2

21930.6

72237.0

72565.1

22928.1

83311.2

9

Long Term Liability 991.151063.7

8 829.18 594.62 360.04 125.46 0.00 0.00Unsecured Loan from Pro-moters/ Family included un-der 5 202.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Capital Employed (4+6)1585.4

52303.4

72409.4

02525.2

92597.1

12690.5

82928.1

83311.2

9

Net Block1610.5

41888.4

81635.8

01518.8

71632.5

41702.4

21754.7

51936.3

2Investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Non Current Assets 22.29 0.00 45.00 145.00 105.51 0.00 0.00 25.00

Current Assets 354.011660.9

62025.1

32172.3

92308.0

22449.5

42537.4

92628.2

4Current Liabilities Other Than BB 305.84 245.97 296.53 310.98 448.97 461.38 364.06 278.28

Working Capital Gap 48.171414.9

91728.6

01861.4

11859.0

51988.1

62173.4

32349.9

6

NWC -47.38 414.99 728.60 861.42 859.06 988.161173.4

31349.9

7

NWC Excl TL Inst 155.73 618.10 931.711064.5

31062.1

71191.2

71267.4

21349.9

7

Bank Finance 95.551000.0

01000.0

01000.0

01000.0

01000.0

01000.0

01000.0

0

Net Sales 0.001497.0

53376.8

03602.7

23828.6

44054.5

74187.9

94309.4

2

Domestic Sales 0.001497.0

53376.8

03602.7

23828.6

44054.5

74187.9

94309.4

2Export Sales 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

% Growth 0.00% 0.00%125.56

% 6.69% 6.27% 5.90% 3.29% 2.90%

Long Term Sources 0.001089.1

6 593.21 567.37 532.22 593.68 500.91 502.33Long Term Uses 0.00 627.77 279.60 434.56 534.58 464.58 315.46 325.00Surplus/Deficit 0.00 461.39 313.61 132.81 -2.36 129.10 185.45 177.33Short Term Sources 0.00 924.77 50.56 14.45 137.99 12.41 0.00 0.00

Short Term Uses 0.001387.1

4 364.17 147.26 135.63 141.52 185.27 176.53

Surplus/Deficit 0.00-

462.37-

313.61-

132.81 2.36-

129.11-

185.27-

176.53FACR


Return on Equity % 0.00% 8.54% 21.49%18.10

%19.02

%17.43

%16.47

%15.19

%Return on Capital Employed % 0.00% 4.59% 14.09%

13.84%

16.38%

16.62%

16.47%

15.19%

Return on Assets % -ve 3.50% 10.77%11.38

%13.14

%13.46

%14.04

%13.70

%

10.1 Key Financials up to last quarter (as per unaudited results- of listed companies) (Rs. in crore) : Not applicable since private limited company

2012-13 2013-14 2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Actual Proj Proj Proj Proj Proj Proj ProjCurrent Ratio 0.88 1.33 1.56 1.66 1.59 1.68 1.86 2.06Current Ratio Excluding TL In-stal 1.79 1.59 1.85 1.96 1.85 1.95 2.00 2.06Debt/ Equity Ratio 1.67 0.86 0.52 0.31 0.16 0.05 0.00 0.00Debt (Excl Unsec)/ Equity 1.33 0.86 0.52 0.31 0.16 0.05 0.00 0.00TOL/TNW Ratio 2.34 1.86 1.35 0.99 0.81 0.62 0.47 0.39TOL/Adj TNW Ratio 1.49 1.86 1.35 0.99 0.81 0.62 0.47 0.39

Gross Profit 0.00 425.08 914.74 967.501077.8

61110.3

31129.5

41134.0

7EBIDTA 0.00 496.13 966.04 933.05 962.81 929.07 916.01 892.10Net Profit Before Tax 0.00 124.49 399.47 436.83 531.78 558.84 602.83 628.88Net Profit After Tax 0.00 105.81 339.55 349.46 425.42 447.07 482.26 503.10

% Growth #DIV/0!220.89

% 2.92% 21.74% 5.09% 7.87% 4.32%Depreciation 0.00 147.23 252.68 216.93 186.33 160.12 137.67 118.43Cash Accruals 0.00 253.04 592.23 566.39 611.75 607.19 619.93 621.53Gross Profit Margin % - 28.39% 27.09% 26.85% 28.15% 27.38% 26.97% 26.32%Net Profit Margin % - 7.07% 10.06% 9.70% 11.11% 11.03% 11.52% 11.67%

Debt/ EBIDTA % -214.42

% 85.83% 63.73% 37.39% 13.50% 0.00% 0.00%Working Capital Turnover 0.00 0.90 1.67 1.66 1.66 1.66 1.65 1.64

10.3 COMMENTS ON FINANCIAL INDICATORS:


I TNW The TNW of the company as on 31.03.2013 is of Rs. 594.60 lacs which are proposed to increase to Rs. 1239.69 lacs. The company has proposed to increase share capital of Rs. 319.30 With share premium of Rs. 219.30 lacs as on 31.03.2014 by converting the unsecured loan of Rs. 202.60 and infuse additional capital from their own sources. The TNW of the company is projected in increasing trend due to plough back of profit.

Ii Long Term Loans Long term liability of the company of Rs. 991.15 lacs as on 31.03.2013 includes the term loan of Rs. 788.55 excluding Term loan installment due within one year and unsecured loan of Rs. 202.60 lacs. The company has projected to convert the unsecured loan into share capital by the end of this financial year.

Iii Net Block The net block of the company as on 31.03.2013 stood at Rs. 1610.54 which is projected to increase to 1888.48 lacs as on 31.03.2014. The company has informed that the some of the machineries were purchased in the year 2013-14. The company has projected to increase the net block in future years.

Iv Investments Nil V Non-Current Assets NIL Vi NWC The NWC of the company as on 31.03.2013 is negative. This

was mainly due to the reason that the commercial production of the company was not started. Further the Company has projected to increase the NWC by increasing the TNW of the company from Rs. 594.30 lacs to Rs. 1239.69 lacs as on 31.03.2014.

Vii Net Sales Due to delay in implementation of the project the company has revised the projection and projected to achieve the sale of Rs. 1497.05 for the year 2013-14. The commercial production of the company started in October 2013 accordingly the company has projected the sales of Six months. Further the company has submitted the letter of intent of their prospective Buyer’s i.e Rangoli particle Board private limited and S. Motilal & sons. Copy of letter enclosed. As per provisional balance sheert submitted by the copany as on 31.10.2013 they have achieved the sale of Rs. 1.12 crore. Company has informed that looking to the demand of their product in the market they are of confident to achieve the targated sales.


Viii PAT The company has projected to earn the profit of Rs. 105.81 lacs for the year 2013-14 which is six month period. As per provisional balance sheet as on 31.10.2013 submitted by the company they have earn the profit of Rs. 12.04 lacs. Company has informed that looking to the demand of their product in the market they are of confident to achieve the targeted sales thereby earn the targeted profit.

Ix Current Ratio The current ratio of the company as on 31.03.2013 is 0.88 which is below the bench mark level. However as on 31.03.2013 the project is under implementation hence we may accept the same. Further the company has proposed the current ratio of 1.33 which is at benchmark level and accepted.

X Debt/Equity Ratio The DE ratio of the Company is 1.67 and 0.86 as on 31.03.2013 and 31.03.2014 which is within the benchmark level of 3: 1.

Xi TOL/TNW Ratio The TOL /TNW ratio of the Company is 2.34 and 1.86 as on 31.03.2013 and 31.03.2014 which is within the benchmark level of 4: 1.

Xii ACR The ACR ratio of the company is 1.82 which is proposed at 2.05. The ACR of the company is above the benchmark level.

Xiii FACR The FACR ratio of the company is 2.04 which is proposed at 2.44 the ACR of the company is above the benchmark level.

Xiv Interest Coverage Ratio THE ICR of the company 2.21 which is above the beanch mark level of 2.00.

10.4 DETAILS OF OTHER CURRENT ASSETS (OCA) : Other current assets of Rs. 37.66 lacs stands for GEB deposits as on 31.03.2013 which is proposed to increase to 54.79 lacs from the year 2013-14 and will maintain at the same level for future years. DETAILS OF OTHER CURRENT LIABILITIES (OCL) : other current liabilities of Rs. 7.00 lacs includes sundry creditors for miscellaneous expenses.

10.5 BUILD UP OF NWC (Rs. in crore)

AS ON 2013-14 2014-15 2015-16I Opening NWC (47.38) 414.99 728.60Ii + Long Term Sources 1089.16 593.21 567.38Iii - Long Term Users 627.77 279.60 434.56Iv Surplus/DeficitV Closing NWC 414.99 728.60 861.42

10.6 MOVEMENT ON TNWAS ON Last ABS Estimated Projected

I Opening TNW 0.00 600 1244.41Ii +Increase in paid up capital/

/Share application money290.70 319.30

Iii Increase Decrease in Reserves(Excl. Revaluation Reserves)

309.70 219.30


Iv -Debit balance in PL, if any 105.81 339.55V Closing TNW 600 1244.41 15836.96Vi Less Intangibles Assets 5.70 4.72 3.74Vii Less investment in affiliates/

Subsidiaries etcViii Adjusted TNW 594.30 1239.69 1580.22

10.7 STATUTORY DUES AND OTHER CONTIGENT LIABILITIES: as on 31.03.2013 : NIL

11. JUSTIFICATION/RECOMMENDATIONS OF FACILITIES PROPOSED :(Please delete 11.a to 11.h if request is not for working capital)

11.a ASSESSMENT OF WORKING CAPITAL LIMITS:Comments on sales estimates:

Due to delay in implementation of the project the company has revised the projection and projected to achieve the sale of Rs. 1497.05 for the year 2013-14. The commercial production of the company started in October 2013 accordingly the company has projected the sales of Six months however company had paid the interest and installment from their own sources regularly.

Further the company has submitted the letter of intent of their prospective Buyer’s i.e Rangoli particle Board private limited and S. Motilal & sons. Copy of letter enclosed. As per provisional balance sheert submitted by the copany as on 31.10.2013 they have achieved the sale of Rs. 1.12 crore. Company has informed that looking to the demand of their product in the market they are of confident to achieve the targeted sales.

11.c COMMENTS ON COMPUTATION OF MPBF:

At the time of original sanction the company has requested the working capital limit of Rs. 600.00 lacs. But due to current ratio is projected below benchmark level our regional office has curtailed the limit to 385.00 lacs. Now the company has requested for the enhancement in the CC limit from 385.00 lacs to 1000.00. The company has informed that due to seasonal availability of the raw material during the month November to march they are in need of the fund during the same period. The company has submitted the cash budget which is enclosed herewith as per annexure I. As per the cash budget the Peak level requirement comes in the month of March 2014.

11.d CAPACITY UILIZATION: ( IN UNITS)Installed Capacity

Actual Production last two years

Current year 2013-14

Next year 2014-15

26976000 NA NA 9441600 ( 6 months working

20232000 ( 12 months working)

COMMENTS: During the year 2013-14 the commercial production is only for 6 months i.e from October 2013 to march 2014

11.e HOLDING LEVELS:


Inventory Permitted Level – as per last Review(days)

Estimates being accepted for year the year ending:



Days Value(In lacs)

Days Value(In lacs)

Days Value(In lacs)

Raw MaterialIndigenous

0 239 685.00 169 693.00 161 710.00

Work In Progress 46 93 309.67 50 338.00 50 361.37Finished Goods 23 50 145.93 23 156.82 23 167.11Store & Spares 75 8 0.28 4 0.32 5 0.40Receivables Export

Domestic 74 88 393.17 66 660 69 735.00Sundry Creditors 38 6 23 5 15 3 17.50

11.f Comments compliance under Inventory and Receivables Levels:I Raw

Material (Indigenous)

Raw material holding level is increase from 0 days to 239 days which is mainly due to the seasonal availability of the raw material i.e. bagasse. The company has informed that RM is available from October to March after the crushing of sugarcane by the sugar factories. Accordingly the company has accumulated the stock well in advance up to next crushing period of the sugarcane in which RM is available.

Due to seasonal availability of the RM- Bagasse they have to maintain the high level of RM which is used in production from April to September and then again the RM will be available from October to march.

In view of the seasonal availability of the RM and operation of the company is only six months in the first year we may accept the contention of the company.

Ii Raw Material (Imported)

NIL

Iii Stock-in –process

Against the permitted level of WIP of 46 days the company has revised the projection and projected to hold the WIP of 93 days. Company has informed that they have modified the projection to the extent of practical experience gained during the initial period of operation.

Due to seasonal availability of the RM- Bagasse they have to maintain the high level of WIP to satisfy the requirement of the production up to next availability of the RM. Further operation of the company is only six months in the first year. We may accept the same.

Iv Finished Goods

Against the permitted level of finish goods of 23 days the company has revised the projection and projected to hold the WIP of 50 days. Company has informed that they have modified the projection to the extent of practical experience gained during the initial period of


operation.

Due to seasonal availability of the RM- Bagasse they have to maintain the high level of finished goods to satisfy the requirement of the production up to next availability of the RM. Further the operation of the company is only six months in the first year We may accept the same.

V Stores & Spares

The company has reduced the Holding level of Stores and spares from 75 days to 8 days as the same is available normally. We may accept the same.

Vi Receivables (Domestic)

The holding period of the receivables has increase from 74 days to 88 days. The company has informed that during the first year of company they are selling the finish goods on slightly higher credit period as against the estimated to build up the relation with the purchaser. After build up the relation they have projected the holing period of Debtors to 66 days. We may accept the same.

Vii Receivables (Export)

NA

Viii Sundry Creditors (Trade)

The holding period of the receivables has increase from 38 days to 6 days. The company has informed that they have to make advance payment for procurement of the RM i.e bagasse. Further the projected holing level of 6 days related to ancillary RM i.e gum and other. They have informed that they have modified the projection to the extent of practical experience gained during the initial period of operation We may accept the same.

Ix Sundry Creditors (usance L/C)

NA

11.g Additional Ratios in case of Working Capital Finance: (Adjusted Sales= (Net Sales+ Increase in FG& SIP)

YEAR ENDED/END-ING

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Projec-tion Projection Projection Projection Projection Projection Projection

1Total Inventory/Net sales % 76.21 35.19 34.39 34.47 34.73 34.79 35.10

2Receivables/Gross Sales % 24.13 17.99 18.78 18.87 18.84 18.84 18.81

3Inventory to Net Sales (days) 274.35 126.67 123.79 124.11 125.02 125.23 126.37

4Receivables to gross Sales (days) 86.86 64.77 67.61 67.95 67.84 67.83 67.70

5Sundry Creditors/RM consumption (Days) 7.20 6.90 7.20 6.90 7.20 7.20 6.90

6 RM/Adj sales (%) 69.85 43.41 43.16 42.56 42.77 42.16 41.807 Spares/ Adj. sales (%) 0.82 0.80 0.79 0.81 0.81 0.81 0.81

8Power & Fuel/ Adj. sales (%) 13.84 13.51 14.74 16.62 18.37 19.55 20.91


9Other Mfg Expenses/ Adj. sales (%) 1.61 1.55 1.60 1.70 1.76 1.82 1.88

10Cost of Production/ Adj. sales (%) 92.20 65.05 65.95 67.43 69.44 70.17 71.35

11Cost of Sales/ Adj. sales (%) 71.61 71.23 70.88 71.37 72.52 72.89 73.56

12Net Sales/Total Tan-gible Assets (times) 0.42 0.91 0.94 0.95 0.98 0.98 0.94

13PBT/ Total Tangible Assets (%) 3.50 10.77 11.38 13.14 13.46 14.04 13.70

14Bank finance/Current Assets (%) 60.21 49.38 46.03 43.33 40.82 39.41 38.05

11.h JUSTIFICATION OF PROPOSED WORKING CAPITAL LIMITS:

At the time of original sanction the company has requested the working capital limit of Rs. 600.00 lacs. But due to current ratio is projected below benchmark level our regional office has curtailed the limit to 385.00 lacs. Now the company has requested for the enhancement in the CC limit from 385.00 lacs to 1000.00. The company has informed that due to seasonal availability of the raw material during the month November to march they are in need of the fund during the same period. The company has submitted the cash budget. As per the cash budget the Peak level requirement comes in the month of March 2014.

In view of the peak level requirement we recommend for the enhancement in CC limit from RS. 385.00 lacs to Rs. 1000.00 lacs.

11.1 ASSESSMENT AND JUSTIFICATION OF NON FUND BASED LIMITS: Not proposed

11.2 BANK GUARANTEE LIMIT: (Amt in crore)

The company has availed the bank guarantee of Rs. 35.00 lacs in favour of DGVCL for supply of electricity and requested to curtail the sanctioned BG limit of RS. 1.00 crore to 0.35 crore.

11.2.b Justification /Recommendation of proposed limit : Not proposed

11.3 REVIEW OF EXISTING TERM LOAN:

11.3.(a)

PURPOSE: Construction of the factory building and purchase of plant & machineries.

11.3 (b)

SUMMARY OF COST OF PROJECT & MEANS OF FINANCE: (Rs in lacs)

COST OF PROJECT MEANS OF FINANCEITEMS ENVISAGED ACTUAL ITEMS ENVISAGED ACTUALLand / Development. 45.17 45.17 Share Capital 189.57 291.00Factory Building. 445.95 446.00 Share Premium 377.20 309.00Plant & Machinery 1564.30 1564.30 Term Loan - (Building) 290.00 290.00


Electric Fittings & Erection Charges.

10.00 10.00 Term Loan - (Machinery)

1180.00 1180.00

Other Assets. 2.00 1.30 Loan from Friends & Relatives.

120.00 303.60

Deposit with DGVCL 40.00 35.00 2373.6Vehicles. 1.50 0.50 P. & P. Expenses. 7.85 5.70 Sub Total 2115.77 2107.97 Working Capital Margin ( 41+215)

256 265.63

2371.77 2352.00 2371.77 2373.60

11.3(c)

RATIOS ENVISAGED FOR CORROSPONDING YEAR

ACTUAL AS ON ( LATEST ABS)

I DSCR 1.78 ( overall) 1.78 ( overall)Ii DER 1.59 1.67Iii TOL/TNW 3.06 2.34Iv EBIDTA % NA NAV OPERATING PROFIT % NA NAVi PAT % NA NA

11.3 (d)

REPAYMENT OF EXISTING TERM LOAN:

Door to Door Tenor 94 monthsActual Repayment Period 7 yearsWhether Mnthly/Qtly/Hy/Yrly installment

Monthly

1st installment due on 01.04.2013Last instalment due on 01.08.2019Installment amount Rs. 15.32 lacs and Rs. 3.95 lacs.Installment /interest serviced up to November 2013

11.3(e)

ADDITIONAL INFORMATION FOR TERM LOAN: (Rs. in crore)

YEAR 2013-14 2014-15 2015-16 2016-17A Increase in Gross Block 425.17 0.00 100.00 300.00

B Term Loan Raised 275.23 0.00 0.00 0.00

C ( +/- ) 149.94D Cash Accruals 271.72 652.15 653.76 718.11

E TL Instalment 203.74 235.20 235.20 235.20

F Net DSCR (D/E) 1.12 1.65 1.64 1.78


11.3(f)

JUSTIFICATION/RECOMMENDATIONS FOR REVIEW OF EXISTING TERM LOAN:

The COD of the company is achieved in September 2013. The commercial production of the company is going on. Conduct of the account is satisfactory and repayment of the term loan is regular.

In view of the above we recommend to review the term loan at o/s level as mentioned in Para 2.a.

Other request:1. Company has requested To reduce the margin of CC cum ODBD limit from 40.00 % to

25.00% Justification: initially the CC cum ODBD limit was sanctioned with margin of 25.00 % on stocks and 40.00 % on book debts. Letter on the company has requested for the release of CC limit before COD. Zonal office has accepted the company’s request and approved the release of RS. 1.00 crore CC limit with margin of 40.00%. we have maintain the margin of 40.00%. now the company’s informed that they have achieved the COD and to maintain 40.00% margin on the stocks and book debts is over burden on the company which will affect the liquidity of the company. Company has informed that they have raised the required amount as per last sanction. Further company has also given plea that since their RM is highly inflammable they have taken sufficient amount of insurance to secure the bank finance. Thus the company has strongly requested for the reduced the margin from 40.00% to 25.00%.

In view of the strong request of the company and the fact that the 40.00% margin the company will face the liquidity problem we recommend to reduce the margin on stock and book debts from 40.00% to 25.0%.

11.4 REVIEW TERM LOAN (PROJECT UNDER IMPLEMENTATION) : Not applicable

11.5 FRESH TERM LOAN POPOSAL: Not proposed

12. RECOMMENDATIONS of Branch

We have considered following points while recommending the proposal.

1. One of the directors of the Company i.e Patel Vitthalbhai Nanjibhai is also guarantor in Ma-hakali stone who is enjoying the credit facilities of Rs. 1.16 crore from us. The conduct of the account is satisfactory.

2. The overall financial of the company is satisfactory.3. The commercial production of the company is going on full swing. 4. Company has two Letter of intent of two prospective buyers for regular purchase which saw

the market acceptability of the product.


(DENIS GANDHI) ( S B P SINGH) ( J V POOJARY)MANAGER CHIEF MANAGER ASSISTANT GENERAL MANAGER

(NIRAJ JARIWALA) (S K SINHA) (P N WAINGANKAR)MANAGER DY. REGIONAL MANAGER REGIONAL MANAGER REGIONAL OFFICE SURAT

Date: 17.12.2013

Place: Surat


Terms and conditions:

Cash credit Cum ODBD limit

1. Cash Credit to be covered by hypothecation of stocks & book debts2. Stock Statement and MSOD should be submitted before 10th day of every subsequent

month and Branch should ensure submission of the same. Delay in submission of Stock Statement or MSOD would attract penal interest, as per rules.

3. The Company shall submit QIS statements regularly. 4. Book debts statement should be submitted before 10th day of every subsequent month 5. Book debts statement duly certified by Chartered Accountant should be obtained once in a

quarter.6. Unpaid stocks should be shown separately and no drawing power to be allowed against the

same. 7. ODBD limit should not exceed 50.00 % of the overall sanction limit. 8. Stock should be adequately insured comprehensively with Bank’s clause (preferably with

Channel Partner under Banc assurance).9. The Company should maintain requisite margin on inventories as stipulated at all points of

time.10. Bank’s sign board to be placed on proper place viz. godwon / factory etc. 11. Book debts pertaining to associate / sister concern should be excluded from calculating

Drawing power.12. All Book-debts should by hypothecated to Bank, however Debtors less than 90 days only be

considered for calculating drawing power.13. The Company should submit the irrevocable power of attorney in favour of the Bank for re-

covery from Debtors.

General Terms and Conditions:

1. In case the Firm commits default in the repayment of loan/advance or in the payment of in-terest thereon or any of the agreed instalments of the loan on due date, the bank, CIBIL and/or RBI will have an unqualified right to disclose or publish the names of the Firm and its partners as defaulters in such manner and through such medium as the bank/RBI in their ab-solute discretion may think fit. (Consent of borrowers and guarantors in terms of C.O./CMD/POL/02-03/1501 dated 16.1.2003 to be obtained).

2. Margins/rates of interest are subject to revision from time to time at the sole discretion of the bank.

3. No legal case of any nature has been filed against the Firm/Firm/its associates affecting the financial position substantially, and in case of any suit is/will be filed against the Firm/the bank shall be kept informed.

4. The Firm shall not induct a person who is/was a partner in a Firm, which has been identified as a willful defaulter by the bank, RBI or any Bank/FI on Firm’s Board and if such a person is found to be on the Firm’s Board, the Firm shall take expeditious and effective steps for re-moval of such person/s from Firm’s Board.

5. Entire assets shall be comprehensively insured against all possible risks with Bank’s clause, including properties mortgaged to the Bank should be insured against all the possible risks including earthquake (preferably with an Insurance Firm having Tie up arrangement with the Bank under Banc assurance).

6. Inspection should be carried out by the Branch before release of sanctioned limit and the re -port thereof to be kept on record.


7. The Firm will not embark upon any further expansion / modernization program without Bank’s prior written permission. Further, the Firm should inform the bank in writing if any situation, circumstances, or decision of the Firm affects the working of the Firm.

8. Interest rate will be charged at monthly rests & it is subject to revision from time to time as per our Central Office / RBI guidelines.

9. The Firm should provide supplementary agreement that the bank will always be at liberty to stop making further advance or cancel the credit facility at any time without previous notice and without assigning any reason even though the said limit/credit facility has not been fully availed of.

10. The Firm should submit following undertakings before release of limit:a. Unsecured loan shall be maintained during the currency of credit limits.b. They will exclusively deal with our Bank and all sales/ turnover will be routed

through OD account shall not open current account/s with any other bank without our prior permission and shall route all sale transactions through accounts. The Firm should undertake to submit the statement of a/c to the branch for verification of the transactions.

c. They will restrict inter Firm transfer of funds amongst associate/ sister concern d. They will inform Bank from time to time of the significant business developments

which may have bearing on the Bank’s interest.e. They will maintain current ratio/NWC at the estimated/projected level.F The Firm shall not divert/utilize bank’s funds for purposes other than those for which the credit facilities have been sanctioned.

11. A declaration to be obtained from the Directors/Promoters/Guarantors that they are not the relative of any director of our Bank’s Board or of any other bank.

12. The Firm should satisfy Bank that they have obtained and are holding all necessary approvals and licenses required to run the present activities.

13. Bank shall have the right to appoint any outside agency for concurrent audit/ stock audit, su-pervision of cash collection and monitoring of the day to day affairs of the Firm as and when deemed fit, at the cost of the Firm.

14. Neither the Firm will pay consideration in any form to the Guarantying Partners/ Directors nor the Guaranteeing Partners / Directors will receive consideration in any form directly or indirectly for the guarantees extended. The Firm and guaranteeing partners will give an un-dertaking to this effect.

15. Recovery of processing and commitment, inspection, supervision and other incidental charges wherever applicable, should be complied with/ recovered.

16. Party shall undertake as under:a. Party shall not change the constitution of the Firm without prior permission / con-

sent of the Bank.b. Party shall not change place of activity/ office without prior permission / consent of

the Bank.c. Party shall not dispose of any fixed assets without prior permission/ consent of the

Bank.17. Our Bank’s charge/ nameplate shall be prominently displayed over factory’s / Sheller’s /

shop’s /godown’s gate & in the office & over all other assets charged to the Bank.18. Inspection of stocks, other assets financed by the Bank & books of accounts shall be carried

out on fortnightly/ monthly basis by branch officials for which necessary charges shall be levied as per Bank’s rules.

19. Our Bank reserves the right to cancel/change/alter any of the terms and conditions inclusive of sanctioned limits without any prior intimation to the Firm.

20. The borrower shall execute all necessary legally enforceable loan documents, as per bank’s guidelines. Documents will be drafted and vetted by banks’ counsels at borrower’s cost.


21. The sanction is valid for 3 months.22. Stock/book-debts audit shall be conducted once in a year by bank’s empanelled charted ac-

countant at the cost of the Firm as per bank’s extant guidelines and irregularities (if any) pointed out there in shall be rectified by the Firm.

All other terms & conditions stipulated in the original sanction / modification, not contradicting or vitiating the terms mentioned herein above, shall continue to apply mutates mutandis..

(DENIS GANDHI) (S B P SINGH) (J V POOJARY)MANAGER CHIEF MANAGER ASSTT GENERAL MANAGER

(NIRAJ JARIWALA) (S K SINHA) (P N WAINGANKAR)MANAGER DY. REGIONAL MANAGER REGIONAL MANAGER REGIONAL OFFICE SURAT

Date: 17.12.2013

Place: Surat


final. eb (repaired)

Documents

crore sanctioned limit

odbd limit

sanctioned bg limit

applicable viiiif

applicable vour banks

applicable vinumber

reduced balance of rs

existing banks