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NOTE FOR THE ASTT.GENERAL MANAGER , RASMECCC MUZAFFARPURNote no.-RASMECC/RKR/ 315/2010-11 Date:-16.06.2010

APPRAISAL MEMORANDUM FOR SANCTION OF WORKING CAPITAL LIMIT OF Rs.40.00LACS & TL OF Rs49.00LACS TO “M/S USHA POLY PLAST” Under

SMECFL Scheme with a coverage under CGTMSE. S FORMAT: Section A EXECUTIVE SUMMARY CIRCLE:PATNA BRANCH: BELA INDUSTRIAL ESTATE COMPANY/UNIT: M/S USHA POLY PLAST Section Contents Pages1 Borrower profile

a. Name , Address, Manufacturing activity/Locations, Date of incorporation, Banking arrangement etc of

b. Brief Background(Company/ Group/ Promoters/ Management including shareholding pattern )

c. Brief write up on Industry/Sector and Company’s standingd. RMD Advisory/qualitative approach/Quantitative

approach/Comments e. Indebtedness/Exposure & capital charge

2

2

2

3

32 Present Proposal

a. Proposal : For sanction/approval/confirmationb. Credit limits (existing and proposed)c. Sharing pattern

444

3 Performance Detailsa. Performance and Financial indicators b. Industry exposure as on c. Movement in TNW

d. Synopsis of balance sheet

5667

4 Risk assessment : a. Credit Rating b. Risk and mitigating factors c. Warning signals/Major irregularities in Inspection

Audit/Credit Audit/Other Reports d. Security e. Changes in Security if any, justification

88

888

5 Pricinga. Conduct of accountb. Income analysisc. Other Bank’s/FIs pricingd. Proposed pricing

9999

6 Loan Policy : Deviations & Compliance: a. Whether names of promoters, directors, company, group

concern figure in defaulters/willful defaulters list b. Deviation in Loan policy c. Deviation in Take over norms and commentsd. Directors of Borrowers company: status of relation with

Board/ Sr Official of the bank etc

10101010

7 a. Future plans & Business Potential including cross selling/retail marketing

b. Environmental and sustainability implications c. Earlier terms of Sanction: Compliance statusd. Statutory dues /Contingent Liabilities

1111111111

8 a. Justification for the Proposal b. Recommendations :

1212

SBI,RASMECCC/MUZAFFARPUR , M/S USHA POLY PLAST 1

SECTION 1

Circle: Patna

Branch : Bela Industrial Estate

Borrower’s Profilea..Name , Address, Manufacturing activity/Locations, Date of incorporation, Banking arrangement etc of Company: M/S USHA POLY PLAST Address: Regd Office: Plot no-3,Near Raman flour mill, Industrial Area, Bela,

Muzaffarpur9431013820

Mfg facility( Locations): --do--

Residence : Near Bharat Scout & Guide,Ward no-13,Sikandarpur, Muzaffarpur

Segment: SSI Constitution: Proprietorship IRAC Status-New connectionAdvances : N.AInvestments : N.A

Industry: Mfg. Activity : Manufacturing of PVC Pipes.Date of incorporation: New connection(However running a CA with Bela

Industrial Estate Br.a/c no- 30715927780 )Banking arrangement : Sole Banking

Existing Connection : Yes/No If yes, date of last sanction/renewal: NA

New unit : YES/ No If Take over, whether all norms complied with : (Yes/No) N.A

b) Brief Background (Company/ Group/ Promoters/ Management including shareholding pattern):

Mr. Shiv Nath Prasad Gupta, S/o Sri Ragir Prasad Gupta, resident of Near Bharat Scout & Guide, Ward No.13, Sikanderpur, is well experienced and have good job knowledge of the activity.

He is belonging from business community having genetic characteristics of business. He has an experience of more than 12 years. He had started his first Mfg unit of PVC pipe in 1999 in the name & style of M/s Krishna

Plastic at Bairiya Chowk, Muzaffarpur. The business is running satisfactorily and the promoter has earned goodwill. The following table illustrates the working of the firm during last three years of its existence. The table are:

(Rs. In lac)Year 2007-08 2008-09 2009-10SaleProfit after TaxNet Profit/ Net Sales (%)TOLTNWTOL/TNWCurrent Ratio

The promoter after improvement in industrial environment of State, particularly, law & order situation, has decided to shift his unit to Industrial Area, Bela, Muzaffarpur and hence applied to the authority for allotment of land but new name, “M/s USHA POLY PLAST”. Incidentally, the first name “USHA” is his wife name. The concerned authority has allotted a piece of land measuring about 43560.Sq.ft. to the unit.


The promoter has finally shifted working of his unit from Bairiya to Bela in December 2009 and started working with new name, “M/s USHA POLY PLAST”. The promoter has informed us that the unit M/s KRISHNA PLASTIC has been closed in April 2011 after completing all formalities and liquidating statutory dues to the unit.

The unit, M/s Usha Poly Plast, has ISO 9001:2008 quality certificate no – NS - EN ISO 9001:2008 from Norsk Akkreditering of Norway (An international organization for quality certification).

The unit has VAT no-10312771058 /CST NO-10312772149 ; Weight & measurement license no-505/2010 dt-25.01.10; Challan for Rs4163/- dt-06.03.2010 for labor & employment license fee.

The promoter is presently manufacturing HDPEE Roll Pipe, PVC Section Pipe, PVC Garden Pipe and proposed to manufacture PVC Rigid Pipe. He has assessed the investment in manufacturing facility for proposed activity, which is large enough. He is unable to meet by himself and hence requested us to sanction a term loan of Rs.49.00lac and working capital limit of Rs.40.00lac.

c) Brief write-up on industry/sector and company’s standing (domestic / international) in the industry including market share, future growth strategies, comments on recent news reports, etc. ( To mention / dovetail Premarketing Committee Presentation, if applicable). With the burgeoning economic growth, providing adequate infrastructure facilities to a populous country like India is very important. Pipelines used in transportation of oil, gas and water are crucial in developing a nation’s infrastructure. Transportation through pipes is cheaper and faster as compared to traditional modes of transport like road and rail. Pipes also have a long useful life of approximately 25-30 years for Steel pipes, 25 years for PVC pipes and 70-75 years for Cement pipes.The Indian Pipe Industry is among the top three manufacturing hubs after Japan and Europe. However, the penetration level of pipelines in oil and gas transportation is low at 32% in India as compared to 59% in USA and 79% globally. The pipeline network of India for oil and gas transport stood at 13,517 kms in April 2006. Sanitation levels are also lower at 33% in India compared to 91% in Srilanka and 100% in France. Of 140 mn hectares of cultivable land, only 40% the land is irrigated. The low penetration levels represent the huge scope for growth for the pipe industry.The positive trend in the Indian pipe industry is to be continue in the next 3-5 years on the back of high oil and gas discoveries worldwide, increased efforts by GoI on infrastructure development for laying pipelines for oil and gas transport, water and sewage transport and irrigation facilities. Demand triggers for the growth are:GoI increased the annual budget allocation under the Rajiv Gandhi Drinking Water Mission from • Rs. 46 bn to Rs. 58 bn in Union Budget 07-08.For the XIth five year plan, GoI is aiming to add 11 mn hectares of irrigational facilities, entailing • an investment of Rs. 1,580 bn. Growth in the real estate sector due to growing population and affluence will require investments • in water, drainage and sewage systems.GoI in its efforts to reduce crude imports has formulated the New Exploration Licensing Policy • for exploration and production of oil and gas. 165 blocks have been awarded till date and the number is set to increase to 245 by 2008. Private players like RIL, Cairn have shown interest in setting up pipe infrastructure for oil & gas • transport. National gas grid will also be set up requiring an investment of Rs. 210 bn.City gas pipe is currently available in 10 cities and the coverage is expected to grow to 40 cities in • next 5-7 years.In addition to above, replacement demand from USA & European countries, having a vast pipeline • infrastructure, will be huge.Hence, in view of above, we can safely say that the unit has very good chance to flourish its wing freely


d) i. RMD Advisory dated #: 10.06.2010 for qualitative approach & data dt-31.03.08&11.08.08 for Quantitative approach.

There is no clear cut instruction about Plastic insustry, We have taken the information about Chemical sector(organic + inorganic).

ii. Qualitative approach : For Chemicals sector - Moderately +ve (1.5) iii. Quantitative approach: FB exposure as % of Bank’s total FB exposure-within

1.5% (organic + inorganic).Total FB level as on 31.03.2010-Rs 4306.97 CRORES i.e. -0.80%

(for organic + inorganic)iv. Comments: The proposal merits consideration as there is enough gap and the

promoter has strong back up support on professional, managerial, social and financial levels.

#As per extant instructions contained in the STATE BANK OF INDIA, CRAVC, RMD, MID CORPORATE REGIONAL OFFICE, LHO, BANGALORE. Dt-10.05.2010 CRMD Out look is to be incorporated in addition to the RMD advisory details.The status of CRMD outlook for the proposed proposal is detailed as under:-

Name of the extant Advisory

Proposed to be changed to read as

Threshold for additional exposure

Enhancement NewGrow Selectively Moderately Positive SB 10 and above SB 8 and above

comments In the proposed proposal the CRA rating is SB-5 againast the threshold SB-8 for additional exposure and hence within the acceptable Band.

e) Indebtedness / Exposure & Capital Charge:

Company Group Proposed exposureIndebtedness Existing Proposed Existing Proposed Credit

conversion factor

Risk weight

Fund based 0.00 89.00 NA NA NA as no NFB Limit proposed.

100% as company account is unrated.

Non fund based 0.00 0.00 NA NATOTAL (Indebtedness)

0.00 89.00 NA NA

Investment 0.00 0.00 NA NALeasing 0.00 0.00 NA NATOTAL (Exposure) 0.00 89.00 NA NA

Capital charge for Total exposure : Risk weight applicable to the rating of the borrowerx11 %= Rs 89.00 Lacs x 100 % (as account is unrated) x 11 % = Rs.9.79lacs


SECTION 2 PRESENT PROPOSAL: Proposal:

a. For sanction of :i. Sanction of Cash Credit (stock) limit of Rs. 40.00lacs .

ii. Sanction of TL of Rs.49.00lacs

b. Approval of:

NA

c. Confirmation of

NA

The proposal falls within the powers of Assistant General Manager, SBI RASMECCC asFB / NFB / Total indebtedness is Rs.89.00 lacs, Non-Corporate (ii) Involves policy level deviations: N.A(iii) _________________ is a director in ________________ Bank. N.A

b.Credit Limits (Existing and Proposed) : (Rs. in lacs)

Existing Proposed Change

Limits SBI % Total Cons/ MBA.

SBI % Total Cons/MBA.

SBI Total Cons /MBA.

C/C (Stocks) 0.00 N.A N.A 40.00 100 N.A 40.00 N.AC/C (Book Debts) 0.00 N.A N.A 0.00 N.A N.A 0.00 N.ATotal FBWC 0.00 N.A N.A 40.00 100 N.A 40.00 N.ATLs 0.00 N.A N.A 49.00 100 N.A 49.00 N.ATotal FB 0.00 N.A N.A 89.00 100 N.A 89.00 N.ALC 0 N.A N.A 0 N.A N.A 0 N.ABG 0.00 N.A N.A 0.00 N.A N.A 0.00 N.ATotal NFB 0.00 N.A N.A 0.00 N.A N.A 0.00 N.ATotal

FB+NFB

0.00 N.A N.A 89.00 100 N.A 89.00 N.A

c. SHARING PATTERN: Not Applicable (Sole Banking)Financial Arrangement: Sole Banking/Consortium/ Multiple BankingLead Bank:

FB NFB TotalSBI 89.00 0.00 89.00Ass.Bks. 0 0 0SBI Group 0 0 0Other Banks 0 0 0Total 89.00 0.00 89.00


Performance Details SECTION 3 a. PERFORMANCE AND FINANCIAL INDICATORS: (Rs. in lac)

Parameters 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 AUD EST PROJ PROJ PROJ PROJ PROJ

Domestic Sales(Gross) 23.30 150.00 318.33 378.39 412.99 447.58 482.17 Export Sales 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Sales 23.30 150.38 318.33 378.39 412.99 447.58 482.17 % rise/fall (-) in net sales 545.41% 111.68% 18.87% 9.14% 8.38% 7.73%Profit Before tax 0.04 4.52 0.01 8.82 13.20 17.17 20.72 PBT/ Sales (%) 0.17 3.01 0.00 2.33 3.20 3.84 4.30 Profit After Tax 0.04 4.52 0.01 7.39 10.41 13.16 15.62 PBDIT/Interest (times) 0.86 7.18 2.01 2.71 3.14 3.64 4.23 Cash Accrual 0.86 7.18 12.30 17.87 19.36 20.80 22.14 Paid Up Capital 22.63 33.88 42.93 42.93 42.93 42.93 42.93 TNW 22.67 38.44 47.50 54.89 65.30 78.46 94.08 TOL/TNW (times) 0.72 1.44 2.19 1.73 1.32 0.99 0.74 Adjusted TNW 22.67 38.44 47.50 54.89 65.30 78.46 94.08 Adjusted TOL/TNW 0.72 1.44 2.19 1.73 1.32 0.99 0.74 NWC 6.28 23.51 16.85 25.96 36.56 49.80 64.38 Current Ratio 1.49 1.60 1.35 1.53 1.75 2.05 2.35

Comments only on adverse movements in the above: (Not to exceed 5-6 lines)

FINANCIAL KEY FACTORS:-

Sales / Gross Receipt: The sale for the year 2009-10 is based on audit report & VAT return submitted to the

department. The sale for the year 2009-10 was only for four months operation of the unit. The sales as per VAT return for Q1 to Q3 during 2010-11 is Rs122.10lacs.Hence estimated sales of Rs150.00lacs for 2010-11 appears reasonable.

The promoter has estimated sales turnover for the unit conservatively considering only 8 hours working in a day and 25 days working in months at 100% capacity utilization. The total sales receipt of the unit is Rs.691.89lac, existing products Rs.488.08lac and Rs.203.81lac of proposed product.


He has taken capacity utilization of each products and receipt is as follows: Year 0 2012 2013 2014 2015 2016 2017 2018Existing ProductsCap. Uti 100% 60% 65% 70% 75% 80% 85% 90%Amt. 488.08 292.85 317.25 341.66 366.06 390.46 414.87 439.27Proposed ProductsCap. Uti 100% 25% 30% 35% 40% 45% 50% 55%Amt. 203.81 25.48 61.14 71.33 81.52 91.71 101.91 112.10Total 691.89 318.33 378.39 412.99 447.58 482.17 516.78 551.37

The sale receipt from proposed product is taken for only six months during first year. The selling price of each product, like Suction Pipe @Rs.80/-Kg, HDPE Roll @Rs.90/-Kg, Garden Pipe @Rs.48/-Kg, Rs.65/-Kg, delivery pipe @Rs.90/-Kg and PVC Rigid Pipe @Rs.70/-Kg and Rs.88/-Kg is par with prevailing with prevailing wholesale market price.Hence, in view of above, the estimated & projected sale appears reasonable and may be accepted.

Raw Materials & Consumables:The basic raw material for the unit is RESIN which is easily available. The biggest

manufacturer & supplier of the resin is Reliance Industries Ltd. The additives for the industry is calcium carbonate, one pack, CPW, DOP, Asteric Acid, Yuvamol etc used for different quality of products. The price taken for appraisal for the main raw materials & additives is at par with prevailing market price. The promoter has conservatively taken 1% wastages whereas it is negligible for the industry. PBT/Net Sales:

The profitability of the unit increases from 0.71% to 3.01% in the year 2010-11 due to increase in volume of sale but decreases to nil, in the year 2011-12, due to increase in burden of depreciation & interest. However, thereafter it is improving during the year under consideration. TNW:

The increase in TNW during 2010-11 is Rs.15.77 lac .This is due to introduction of capital of Rs21.50lacs (supported by a CA certificate ) & withdrawal of Rs10.25lacs & plough back of profit of Rs4.52lacs. Fresh introduction of Rs.9.05lac during 2011-12 is mainly for margin purpose. Thereafter the increase in TNW is due to plough back of profit. TOL/TNW:

The highest ratio during the year under consideration is 2.19 in the year 2011-12 when present proposal is to be implemented. Thereafter the ratio is below 2. Current Ratio:

The current ratio is more than acceptable level 1.33 during the year under consideration. The lowest current ratio is 1.35 in the year 2011-12, during the year of implementation of present proposal.


b.Industry Exposure as on

Whole Bank Level(Rs. in crores)

Q/HY resultsas on ________

Prev. year(2008-09)

Current Year(2009-10)

FBL 4306.97 Net Sales

NFBL 1342.11 Exports

TOTAL 5649.08 PAT

Exposure of the company as per Prudential Exposure Norms (%)

To Industry Exposure - (%) 0.80%

To Total Advances (Domestic) - (%)

Comments only on adverse movements in the above: (Not to exceed 5-6 lines):

------------------------------NIL----------------------c) Movement in TNW (projection)

2009-10Actual

2010-11Estimated

2011-12Projected

Opening TNW 22.63 22.67 38.44Add PAT 0.04 4.52 0.01Add. Increase in equity / premium - 21.50 9.05Add./Subtract change in intangible assets

-- --

Adjust prior year expenses -- --Deduct Withdrawals -- 10.25Closing TNW 22.67 38.44 47.50

Comments:-


d) Synopsis of Balance Sheet:

Actuals2009-10

Estimates2010-11

Sources of funds Share Capital 22.66 38.44 Reserves and Surplus --

-- Secured Loans : short term -- : long term -- Unsecured Loans 3.50 16.30 Deferred Tax Liability Total 26.16 54.74Application of Funds Fixed Assets (Gross Block) 19.47 27.98 Less Depreciation 0.82 3.48 Net Block 18.65 24.50 Capital Work in Progress Investments Other Non Current Assets Inventories 14.19 57.50 Sundry debtors Cash & bank balances 0.30 0.16 Other Current Assets 1.24 5.33 Loans & advances to subsidiaries and group companies

-- 1.40

Loans & advances to others 4.59 4.75 ( Less : Current liabilities ) 12.75 35.00 (Less : Provisions ) 0.05 3.90 Net Current Assets 7.51 30.24Misc. Expenditure (To the extent not written off or adjusted )

-- --

Total 26.16 54.74

Comments only on adverse movements in the above: (Not to exceed 5-6 lines)


RISK ASSESMENT SECTION 4 a. CREDIT RATING Borrower rating Facility rating

WC TL Facilities

Existing

Proposed

Exist:

Prop Exist: Prop Hurdle rate

CRA NA SB -5(76/100) Marks

NA SB - 5(76/100) Marks

SB10 CC+TL NA NA

CRISILICRA Others (Marks scored in borrower rating / facility rating to be mentioned).The CRA of the unit is based on projected balance Sheet as on 31.03.2012. The unit has completed only for 1 year.

Validated on: No validation committee at this centre.

b. Risks and mitigating factors: Critical risks perceived Mitigating factors The promoter is not able to arrange margin required to complete the proposl.

The promoter has already introduces Rs21.50lacs during 2010-11 supported by a CA certificate, They have proposed to invest Rs9.05lac including Rs2.30lac as unsecured loan. He is belonging from reputed business community his son and wife is also engaged in the business and generating cash. Thus we can safely say that the promoter will arrange proposed margin.

Proposed technology & machines would not full fill requirement.

The promoter is experienced businessman having more than 12 years experience of industry. He has good knowledge of the industry. He has selected the machines after extensive survey of available alternatives. Thus we can safely say that proposed technology & machines fulfill the requirement of the unit.

Change in Technology of Mfg PVC pipes.

The proprietor is well acquainted with the activity & competent to acquire the latest technology in time.

Tough competition from other players The Government special initiative to increase the infrastructure facility in the State will increase the demand of PVC Pipe. The increasing population and improvement of its economic condition will also boost the demand of products. Further, the promoter has genetic characteristics of business as he belongs to business community will helps in meeting the competition.

Succession Plan The son of the proprietor is also helping in the present activity. Hence the succession plan is very well

Raw Material Though there are limited supplier of raw materials of PVC pipe, the option of import of raw material is open for the unit.

Failure of BSEB Power Supply The unit had already purchased two generator sets of 125 KVA & 62.5KVA and also proposed to purchase a DG set of 200KVA to meet the power failure of BSEB..The unit has also purchased a 100KVA UPS. Thus we can safely say that unit is able to meet BSEB


power cut. c. Warning signals / Major irregularities in Inspection report / Credit Audit:/Other reports

Credit Audit Reports N.A. New unit

Other Audit Reports N.A.

Qualification if any, in Auditors report N.A.

d. SECURITY Details Value and basis of valuation

Date of valuation /opinion report

Primary Security Hypothecation of all the assets purchased out of bank’s finance inclusive of existing equipments

Equitable mortgage of lease land from BIADA

For Full value

For others N.A

Collateral security- NILGuarantee NIL coverage under CGTMSE

Changes in security if any, Justification: NIL


SECTION 5 PRICING:

As per CRA rating SB -5,

For CC – 0.75% over SBAR, i.e. 13.75% p.a. on monthly rests.For TL – 1.25% over SBAR, i.e. 14.25% p.a. on monthly rests

a) CONDUCT OF ACCOUNT: New connection (last year)No. of occasions

Average period for regularization

Irregularity report last submitted on

Comments: Irregularity in TL Comments : Utilisation of limits:FB Limits Average utilisation

%NA

NFB Limits Average utilization %

NA

b) INCOME ANALYSIS: ( Rs. in lacs) competition SBI

From Estimated(last year)

Actual (last year) Estimates(current year)

WC Int. & Charges NA NA 5.60TL Int. NA NA 6.60LC NA NA NABG NA NA NABill NA NA NAForex NA NA NAOthers(Charges ) NA NA 0.60

Interest & Other Charges SBI Share Amount and percentage

Interest Other Charges

100%100%

c. Other Bank’s/FIs Pricing Existing Proposed

Term Loan NA NAWorking Cap[ital NA NA

d. PROPOSED PRICING:ITEM Existing Rate Card rate Proposed rate Int. on WC NA 13.75%(SB-5) 13.75%(SB-5)Int. on TL NA 14.25%(SB-5) 14.25%(SB-5)Justification for concessions already extended / proposed: (mention about cost benefit):No concession is proposed.


SECTION 6LOAN POLICY: DEVIATIONS AND COMPLIANCEa. Whether names of promoters, directors, company, group concerns figure in defaulter/willful

defaulters list:

RBI defaulters’ list dated : : Yes/No Name of the director Default in connection with:

(Name of the company)Remarks

N.AJustification for considering continuation / enhancement in facilities)

N.A

Wilful defaulters’ list dated : : Yes/No **Name of the director Default in connection with:

(Name of the companyRemarks

N.AJustification for considering continuation / enhancement in facilities)

N.A

ECGC caution list N.A

CIBIL **

**Internet is not working at our outfit, hence search report has not been enclosed. However as

per the CBS report available at our outfit, no any account is NPA as on date.

b. Deviations in Loan Policy:

Parameters IndicativeMin/Max level as per

loan policy

Company's level as on 31.03.2012

(PROJECTED)1. Liquidity 1.33 1.352. TOL/TNW 3:1 2.193. Average gross DSCR (TL) 1.75 2.214. Debt / equity 2:1 1.27:1*5. Promoters contribution 20% of Equity 100% of equity6. Prudential norms N.A N.A7. FB exposure to the industry N.A N.A8. Substantial exposure :

Borrower N.A N.A

9. Substantial exposure : Group N.A N.A10. Others N.A N.A

Brief comments only if there is deviation (Not more than 5 lines):

*If we consider the unsecured loan of Rs15.00lacs form relatives as quasi equity the ratio reduces to 0.78 only.

c. Deviations in Take over norms and comments: Not Applicable (New unit)

d. Directors of the borrower company are relatives (scope of the term ‘relative as defined in RBI Master Circular on loans and advances- Statutory and other Restrictions) of any member of the Bank’s Board/Senior Officer of the Bank/ Member of any other Bank’s Board - Yes/No SBI,RASMECCC/MUZAFFARPUR , M/S USHA POLY PLAST 13

If yes, details: N.A

e. Compliance with Section 20 of the Banking Regulation Act : Whether any of the Directors of the Bank is Director of the borrower company or is having any interest in the same: No

SECTION 7


a. Future Plans & Business potential(over a 3-5 year horizon) including Cross selling / Retail Marketing based on Co / Group’s future plans: (to be quantified).

Item Present

Position – Whether Tied Up?(Yes / No) *

Business estimated

(i) Corporate Salary Package N.A(ii) P Segment Loans (a) Housing Y Rs 15.00LACS (b) Auto Loans Rs 3.00LACS (c) Personal Loans(iii) SBI Credit Card(iv) SBI Life Y Rs 1.00LACS(v) SBI Mutual Funds(vi) SBI Vishwayatra Foreign Travel Yatra

Cards(vii) Vendor/ Dealer Finance(viii) Any Other (Please specify)(SRTO) Rs7.00lacs

* If no, please advise efforts made and outcome thereof

b. Environmental and sustainability implications: There is no environmental and sustainability implication. The waste material is reusable

after cutting into pieces. However the unit has already applied for license from Bihar State Pollution control Board, Patna on 20.11.2008 (Maint.Deptt please ensure to obtain the necessary license before disbursement loan).

c. Earlier terms of Sanction: NA d. Statutory dues/other contingent liabilities:

SECTION 8a. Justification for the proposal: (Only bullet points)


Dues Level (Rs. in crore) Impact on financial position

Statutory dues

NIL NA

Contingent liabilities

NIL NA

i. The firm is new and the Proprietor Sri Shiv Nath Prasad Gupta is well experienced, good job knowledge of the activity and skill to manage the unit successfully.

ii. Staffs are well skilled for production activity. iii. The projected business level, viability and other assumptions and the limits proposed are

reasonable.iv. The quality of management is satisfactory and the applicant is having adequate

experience in this line of activity. v. Coverage under CGTMSE hence no collateral security & guarantor required.vi. Products, in which the firm deals in, have wide acceptance in the market.

Exposure comes under SSI under SMECFL scheme, which are the thrust areas for Bank Finance.Estimated sales for 2011-12 Rs.318.33 lac appears justified and achievable.

vii. The unit has started its production since End of Dec 2010. CRA has been done on Simplified Model (Non-Trading) on the basis of Estimated financial statement as on 31.03.2012 and borrower rating qualifies to SB-5 (Score-76/100) which is above hurdle rate of SB -10. This shows our risk level as Moderate risk with adequate cushion and comfort level as adequate safety.

A.Recommended for Sanction on bank’s usual terms and conditions: In view of the foregoing and the annexure enclosed herewith, we recommend for (1)For sanction of :

(i) Fresh sanction of CC (stock) limit of Rs. 40.00 lacs ..(ii) Fresh Term Loan limit Rs.49.00 lacsUnder SMECFL Scheme with a coverage under CGTMSE.

Appraised by Assessed by Credit Officer Chief Manager (Loan Sanction)SBI, RASMECCC, Muzaffarpur SBI, RASMECCC, MuzaffarpurDate: 29.03.2011 Date: Sanctioned, as recommended, on bank’s usual terms & conditions. (1)For sanction of :

(iii) Fresh sanction of CC (stock) limit of Rs. 40.00 lacs ..(iv) Fresh Term Loan limit Rs.49.00 lacsUnder SMECFL Scheme with a coverage under CGTMSE.

Asstt. General Manager(SBI, RASMECCC, Muzaffarpur)Date:-

Appraisal Memorandum for term loan: Section B Circle :PatnaBranch : Bela Industrial Estate BranchCompany : M/s Usha Poly PlastTerm Loan / DPG : a) Proposal : For purchase of various equipmentsb) Project / Purpose : For Mfg. of PVC pipesc) Appraised by : Credit officerd) Cost of Project & Means of finance : Amount in Lac

Cost Existing To be Total Means Amount in Lac


IncuredL & B 14.37 1.26 15.63 Equity

:55.30

P & M * 9.84 65.57 75.41 Unsecured Loan

15.00

F &F 0.30 0.30 BIADA 6.00Security Deposit

5.33 5.33

Contingencies

1.34 1.34 Debt: 49.00

WC Margin 27.29 -- 27.29Total 57.13 68.17 125.30 Total 125.30Debt / equity Ratio:-1.27:1

List of Plant & Machineries to be purchased.Sl. No. Particulars Suppliers Amount

1 SE-SHAKTI Transformer M/s Sai Enterprises, Jaipur

170000.00

2 200 KVA DG Sets M/s Jaksons Limited 1060000.00

3 High Speed heater Cooler Mixer, Model HSM 200R CM - 400, with Batch Hopper & AC variable Frequency Drive

M/s Neoplast Engineering Pvt. Ltd., Ahmedabad

1219500.00

4 24 TR Air Cooled Chilling Plant M/s Blue Star 579075.00

5 Lathe Machines M/s Pathak Industries 381150.00

6 Windsor Make Twin Screw RPVC Pipe Plant, Model KTS - 140e/110v

M/s Windsor Machines Limited

2255000.00

7 Die Inserts Do 190000.00

5854725.00

Add: Taxes, packing exp., transportation, Insurance, erection Charge, @12% 702567.00

Total 6557292.00

# if the cost of equipments increases difference will be born by the applicant .

e).Remarks on Cost of project & Means of finance (in brief): The cost of plant & machineries is based on quotation as listed above. The supplier is experienced, reliable and reputed. The promoter has selected after extensive survey of the market. Some of the quoted amount is ex-factory and hence promoter has made provision @12% of quoted amount for taxes, packing, transportation, insurance and erection charge. The promoter has requested our finance only for plant & machineries with a margin of 25% on each component of plant & machineries. The promoter has also made provision of Rs.1.26lac for civil construction which is self estimated. He has made provision of contingencies for the proposed


investment which is reasonable in the era of price rise. The cost of civil construction & contingencies is to be meet by borrower himself. He proposed to meet the required margin as under:

Fresh Capital : Rs.9.07lacUnsecured Loan : Rs.2.30lacInternal Cash accrual* : Rs.7.80lac Total : Rs.19.17lac

* The promoter has short term fund of Rs.25.90 lac as per balance sheet dated 31/03/2011 and the promoter has proposed to meet term loan margin and balance is sufficient to meet working capital margin.

f) Project implementation schedule: The civil construction work is in progress and expected to be completed within two

months. The promoter has made six months provision from placing of order of machineries to the start of commercial production. The proposal is ready for commercial production from 1st October 2011.

g) Production factors:

Power & Fuel: The unit has required BSEB connection for power supply and proposed to apply for load enhancement after installation of proposed machineries. However, it has two DG sets of 125 KVA & 62.5KVA and proposed to purchase another one of capacity of 200KVA to meet the load shedding period BSEB power. Further, it is important to mention here that the promoter has purchased a UPS for uninterrupted power supply to the unit.

Labour : Availability of all types of technical, Non-technical, skilled, semi skilled staffs is abundance in Muzaffarpur. The promoter has long experienced and specialized staffs to be engaged in unit after completion of new project. Other staffs are already working with unit.

h) Marketing: The unit already catch the market of North Bihar, and the finished good is supplied to samastipur, Sitamadhi, East Champaran, Muzaffarpur, Rosera & Begusarai. In view of promoter background and long experience we can safely say that the unit has no problem in marketing of proposed and existing products.

i) Commercial viability:Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 TOTAL

Receipt 318.33 378.39 412.99 447.58 482.17 516.78 551.37 3107.61


Net Profit after tax 0.01 7.39 10.43 13.16 15.62 17.80 19.71 84.12

Depreciation 12.29 10.48 8.95 7.64 6.52 5.57 4.76 56.20Cash Accrual 12.30 17.88 19.38 20.80 22.14 23.37 24.46 140.32Term Loan [email protected]% and 90% with calculatingOn reducing balance 6.60 5.70 4.75 3.79 2.84 1.89 0.93 26.49Cash for Repayment 18.90 23.58 24.13 24.59 24.98 25.26 25.39 166.83

Term Loan Interest 6.60 5.70 4.75 3.79 2.84 1.89 0.93 26.49

Term Loan Intalment 3.78 7.56 7.56 7.56 7.56 7.56 7.42 49.00Repayment Obligation 10.38 13.26 12.31 11.35 10.40 9.45 8.35 75.49

Gross DSCR 1.82 1.78 1.96 2.17 2.40 2.67 3.04 2.21Average Gross DSCR 166.83/75.49 = 2.21

Net DSCR 3.25 2.36 2.56 2.75 2.93 3.09 3.30 2.86 Comments on DSCR (in brief): Average gross DSCR is well above 1.75 in all the years of

repayment period, which is well above acceptable range; It indicates that the cash accruals are sufficient to service the interest as and when applied and to repay the term loan installments timely.

j.Security Margin :

Particulars 2011-122012-13 2013-14

2014-15

2015-16 2016-17

2017-18

TOTAL

WDV 80.39 69.91 60.97 53.33 46.81 41.24 36.48 389.14

T/L Outstanding 45.22 37.66 30.10 22.54 14.98 7.42 0.00 157.92

Margin 35.17 32.25 30.87 30.79 31.83 33.82 36.48231.2

2Security Margin % 43.75 46.13 50.63 57.73 68.00 82.01

100.00 59.42

Comments on security margin, in brief:The security margin available with the bank is sufficient enough to recover our dues from the borrower. In the above table we have only taken into account the primary security available with us (existing equipments as well as new equipments purchased out of Bank’s finance) excluding coverage of our exposure under CGTMSE scheme.

k) Break-even and sensitivity analysis and whether acceptable:

Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 TOTAL

Capacity Utilisation % 46 55 60 65 70 75 80 64

Gross Receipt318.3

3378.3

9412.9

9447.5

8482.1

7 516.78551.3

73107.

61

Variable Cost282.7

9340.9

5372.3

3403.8

5435.5

3 467.37499.4

02802.

22

Contribution 35.54 37.44 40.66 43.73 46.64 49.41 51.97305.3

9

Fixed Cost 23.33 29.52 28.40 27.51 26.88 26.47 26.28188.3

9BEP 66 79 70 63 58 54 51 62

BEP at Rated Capacity 30 43 42 41 41 41 41 40Average BEP 40


Sensitivity analysis:

As on 31/03 20132nd Year

When Sale price Reduces by 5%

When variable Cost Increases by 5%

When both occurs

Situation No. I II III IVReceipt 378.39 359.47 378.39 359.47Variable Cost Excl. Raw Materials Cost

41.47 41.47 43.54 43.54

Profit before tax 8.82 -10.01 6.75 -12.17Cash for repayment 23.58 13.48 22.14 4.01Repayment Obligation

13.26 13.26 13.26 13.26

l) CRA & Pricing : The CRA of the unit is based on estimated financial as on 31.03.2011 is SB-5.

m) Pricing by other major banks / FIs and justification of the proposed pricing :----------- Not applicable -------------

n) Compliance of the project with environmental / social / statutory requirements:

o) Environment and Sustainability implications :There is no environmental and sustainability implication. The waste material is reusable after cutting into pieces. However the unit has already applied for license from Bihar State Pollution control Board, Patna on 20.11.2008

p) Overall viability and acceptability of the proposal : In view of the foregoing the proposed venture is considered commercially viable and profitable.


SECTION CAssessment of WC facilities: (If the assessment of the WC limits is based on any other parameters, please specify them along with an explanation) a. Inventory & receivable levels : (Months/Days) 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15Particulars AUD EST PROJ PROJ PROJ PROJRaw Material :a)Indegenous 0.00 0.00 33.00 35.00 37.50 40.00 0.00 0.00 43.61 42.00 41.61 41.04

b) Imported 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Stock in Process 0.00 0.00 2.50 2.50 2.50 2.50 0.00 0.00 2.87 2.60 2.40 2.23

Finished Goods 14.19 57.50 18.00 22.50 25.00 27.50 55.29 147.43 21.92 23.67 24.20 24.63Other Spares : a)Indigenous 0.00 0.00 0.00 0.00 0.00 0.00/Consumables 0.00 0.00 0.00 0.00 0.00 0.00

b) Imported 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Receivables : a) Domestic 0.00 0.00 7.50 9.00 14.00 20.00 0.00 0.00 8.60 8.68 12.37 16.31

b) Export 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Advance Payments 0.04 3.50 0.00 0.00 0.00 0.00S. Creditors 0.61 0.00 0.00 0.00 0.00 0.00 1.60 0.00 0.00 0.00 0.00 0.00Other Creditors 12.19 38.90 8.76 8.76 8.76 7.56Other Current Assets 4.89 4.91 4.61 5.72 6.32 7.36

b. Assessed Bank Finance:

2009-

102010-

11 2011-122012-

13 2013-142014-

15Particulars AUD EST PROJ PROJ PROJ PROJ

Total CA 19.08 62.41 65.61 74.72 85.32 97.36

Other CL(Ex. Bank Borr.) 12.80 38.90 8.76 8.76 8.76 7.56

Working Capital Gap 6.28 23.51 56.85 65.96 76.56 89.80

Net Working Capital 6.28 23.51 16.85 25.96 36.56 49.80

Assessed Bank Finance 0.00 0.00 40.00 40.00 40.00 40.00

NWC to TCA (%) 32.91 37.67 25.68 34.74 42.85 51.15

Bank Finance to TCA % 0.00 0.00 60.97 53.53 46.88 41.08

S. Cr. To TCA (%) 3.20 0.00 0.00 0.00 0.00 0.00

Other CL to TCA (%) 63.89 62.33 13.35 11.72 10.27 7.76

Inv. To Net sales (days) 183 115 50 48 47 47Rec. to gross sales(days) 0 0 7 7 10 13S. Cr.To purchases(days) 6 0 0 0 0 0


(A) Traditional Method:- We have appraised the working capital requirement of the unit on the basis of requirement of the unit, 2011-12 Raw Materials 1.5months Rs.31.96lacWork in progress 3 days Rs.2.75 lac{RM+(Salary+Power+Repair+Adm.)/2}Finished Goods 1 month Rs.25.24lacCost of sale – Dep. & Sell. Exp)Total Rs.59.94lacCreditors 7 days Rs.5.97lacW/c Required Rs.53.98lacMargin, 25% Rs.13.50lacPermissible Bank Finance Rs.40.48lacRounded to Rs.40.00lacIt is assumed here that debtors, which is negligible, and other current assets will be

financed by other current liabilities.

(B) Limit Assessment on the basis of Sales Projection Projected Annual Turn Over Method: (Amt. in lac)

Particulars 2011-12

a. Projected Annual Turnover (including Excise duty) 318.33

b. Turnover in last financial year ----c. 125% of turnover in next year -----

d. Total WC required[20% of (a) or © whichever is less] 63.67

e. M.P.B.F. 63.67

f. Recommended Working Capital limit 40.00

CC (stocks) limit of Rs.40.00 lac is being recommended for sanction as assessed above.

c. Assessment of EPC / FBD limits: N.A.

d. Computation of LC limits for WC: N.A Annual RM Cons.under LCMonthly RM purchasesUsanceLead timeL/C Limit requiredRecommended LC limit Documentary : Non Documentary :

Assessment of BG limit: N.A Outstanding BGs as on 11.05.2010Add: BGs required during the period (2010-11)Less: Estimated maturity/cancellation of BGs during the period(2010-11)Requirements of BGs Recommended BG limit Financial : Performance :


f. Efficiency ratios:

Particulars2009-

102010-

112011-12

2012-13

2013-142014-

15AUD EST PROJ PROJ PROJ PROJ

Net Sales/ Total Tangible 0.60 1.61 2.10 2.52 2.72 2.87

PBT/ Total Tangible Assets (%) 0.10 4.83 0.01 5.88 8.71 11.01

Operating Cost to sales (%) 99.83 96.99 100.00 97.67 96.80 96.16

Bank Finance/ Ct. Assets (%) 0.00 0.00 60.97 53.53 46.88 41.08

Inventory+ Receivables to net Sales 183 115 57 55 57 60

ROCE(%) (PBDIT/TTA) 2.21 7.67 16.19 20.41 21.44 21.92

Brief comments on the assessment of the above limits:

h. Fund Flow Analysis : 2010-11 2011-12 2012-13 2013-14 2014-15Particulars EST PROJ PROJ PROJ PROJLong Term Sources 31.23 61.51 17.87 19.36 20.80Long Term Uses 14.00 68.17 8.76 8.76 7.56Surplus/Deficit 17.23 -6.66 9.11 10.60 13.24

Comments: Fund Flow analysis shows satisfactory situation except in the year 2011-12 this due to facts during the year 2011-12 the promoter will use short term fund as margin for proposed proposal.


Terms & Conditions: SECTION DCIRCLE: PATNA

COMPANY/ UNIT: M/S USHA POLY PLAST A. SECURITY :

Facility Primary Collateral GuaranteeCASH CREDIT Hypo. of Stocks & Existing

equipments* NIL NIL

TL Hypo. of equipments to be

purchased out of Bank’s finance.

NIL NIL

*Detailed list of equipments must be taken before documentation.Collateral security Details NIL coverage under CGTMSE.Coverage under CGTMSE vide SMU-BU/119/2009-10 dated 09.07.2009 and SME-BU/6 dated 31.01.2009Coverage Upfront service Fee Annual Service FeeCredit facility- Above Rs.5 lakh to Rs.50.00 lac =75% of the amount in default subject to a maximum of Rs.37.50 Lacs

1.50% of loan amount 0.75% of loan amount

Credit Facility-Above Rs50.00lacs up to Rs100.00lacs= Rs37.50lacs plus 50% of amount in default above Rs50.00lacs subjected to overall ceiling of Rs62.50 lacs.

1.50% of loan amount 0.75% of loan amount

Maintenance Dept. please ensure completion of all formalities regarding CGTMSE coverage and kept on record.Compliance report on SMECFL separately enclosed as Annexure elsewhere in the porposal.

B. ECGC COVER:N.AC.D. MARGINS : (FOR EACH FACILITY AS APPLICABLE)

Cash Credit: Existing ProposedRM: DomesticImported 0 25%SIP 0 25%FG 0 25%Receivables (Cover 30 days) N.A NALetter of Credit N.A NABG(Cash Margin) NA NATERM LOAN 0 47.77%

Justification for deviation from existing margins, if any to be provided in the proposal. NO

E. RATE OF INTEREST: As per CRA Rating SB 7 Facility CRA Pricing CC (Stock) SB 7 SB 7 (1.50% over SBAR, i.e.13.25% p.a.)


TL SB 7 SB 7 (2.00% over SBAR, i.e.13.75% p.a.)(The above rate will reassessed at the time of next renewal exercise based on fresh CRA at that time . For the first year the rate will applicable according to the SMECFL scheme i.e.-For CC stock 10.00% fixed & for TL 10.50% fixed)

F. Insurance: Comprehensive inter-alia covering risk against Fire, theft, riots, flood, earthquake, and civil commotion. In transit insurance to be done. Other risk to be covered whenever considered necessary by the bank.

G. Processing fees: For working capital -Rs.250/- per lac to be realized for CC limit.

For TL- Up front fee:0.63% (50% concession in processing charge under SMECFL scheme.Cir no-NBG/SMEBU-SMECFL/61/2009-10 dt-12.01.2010)

H. Inspection: Monthly by Bank’s officials. I. i) REPAYMENT SCHEDULE : Rs 63000/- per month ii) Repayment to start from : -------- Oct. 2010.J. Other terms & conditions* (Please see on page 20.)K. OTHER CRITICAL COVENANTS:

Note: Any change in the terms and conditions vis-à-vis earlier sanction should be justified in the proposal.*TERMS AND CONDITIONS of CC (stocks) limit:

Margin 25% of stocks .

Bank’s charge Hypothecation of Stocks and equipments (existing as well as new to be purchased out of Bank’s Finance).

E/M charge NA ,

Repayment CC- Repayable on demand.TL-In 78 monthly installment of Rs63000/-+intt.(as & when applied)starting form Oct.2010. The Intt. will be serviced by the unit during moratorium period.

Validity of Sanction,Review/Renewal

Sanction valid for 12 months.A renewal shall be made after 12 months after satisfactory conduct of account. TL a/c should be reviewed annually .

Stock Statement To be submitted monthly. (Maintenance Deptt. please ensure to meticulously follow the bank’s instruction in this regard.)

Non Submission of Stock statement*

Rs.200/- if not submitted within 7 days of due date.

Processing Fee For working capital -Rs.250/- per lac to be realized for CC limit.For TL- Up front fee:0.63% (50% concession in processing charge under SMECFL scheme.Cir no-NBG/SMEBU-SMECFL/61/2009-10 dt-12.01.2010)

Sales Transaction Entire sales proceeds must be routed through the CC A/c.Documents As per Revised Simplified SME DocumentationInspection Monthly at irregular intervals by RASMECCC/Branch official.Maintenance of Books The unit to maintain proper Books of account to show the business

transaction.Dealing with bank/branch

The Borrower shall deal only with SBI, Bela Industrial Estate Branch and shall close all accounts with other Banks, if any.

Commitment Charges* If unutilized portion is 60% and above of the credit limit then 0.25% p.a. on entire unutilized portion to be realized.

Non submission of audited balance sheet*

For limit above Rs.25.00 lac- Rs.1200/- per month, if not submitted within 6 to 8 months of year end.

Penal Interest* 2% on irregular portion. If irregular more than 60 days on entire outstanding.

Other terms & conditions

All other terms and conditions will be also applicable.

Other Stipulations, if any.

An undertaking is required to be obtained stating therein that they would not be any inter firm transaction without


bank’s knowledge. The CA certification for initial capital infusion to be taken before release of Loan amt.

(*Vide Circular no. CCO/CPPD-SERVICE/CHA/39/2007-08 dt.17.08.2007)

ANNEXURE-IV

Compliance of SME COLLATERAL FREE LOAN scheme UNDER GUARANTEE COVER OF CGTMSE (SMECFL)

“M/S USHA POLY PLAST” WORKING CAPITAL LIMIT OF Rs.40.00LACS& TL OF Rs49.00LACS (Vide circular no-SME/RKG/CIR-63/2009-10 DT-12.01.10 & SME/MKS/CIR-18/2010-11 DT-18.05.10)

Target Group

Micro & Small Enterprises as defined by MSMED Act 2006.

a. The chief promoter /chief executive should be 21to 65 years of age in case of non corporateborrower.

b. New and existing Micro and Small Enterprisesengaged in Manufacturing and service sector.

Note : In respect of Micro & Small enterprises in service sector, Branches are advised to adhere to the RBI's guidelines on lending to Priority Sector i.e. small road and water transport operators, small business, professional and self employed persons and all other service enterprises under the ambit of Micro and Small Enterprises definition under MSMED Act are covered but finance to retails/wholesale trade, educational institutions, training institutions and SHGs are not eligible under the scheme.

Applicant’s age is 45 years

NEW

Screening of

Eligibility

i. For Loans up to Rs.25 lacsThe applicant must obtain a minimum overall score of 50% under each sub-head of Business & Personal and 60% in overall score except collateral details as per the scoring model of SME Smart Score. The score under collateral has to be normalised with Business & Personal details parameter score.ii. For Loans between Rs.25 lacs to Rs. 1.00CroreUnits having CRA Rating of SB-10 and above as per the applicable revised CRA rating norms as circulated by Risk Management Department from time to time.

iii. CRA rating of SB-7 has been accessed for the unit

CGTMSE GuaranteeCoverage

MandatoryBeing Proposed

Purpose

a. Working capital needs (FB+NFB).b. Term loan for construction of Building, office,acquisition of machines / equipmentsincluding expansion and modernization of theunit.

Working capital of Rs40.00lacsTL of Rs49.00lacs for purchase of Verious equipments as per details motioned elsewhere in the proposal.

Assessment a. Manufacturing Enterprises :Working Capital (WC): As per Nayak Committee

Manufacturing Enterprises:Working Capital (WC): (20%


norms (20% of the projected turnover),Term Loan(TL) : 75% of project cost,b. Service Enterprises: Working Capital(WC) : 15% of the projectedturnover /Revenue.Term Loan (TL) : 75% of project cost.

of the projected turnover),Term Loan (TL) : 52.23% of project cost

Quantum of finance

Total Exposure to the unit (FB+NFB) : Above Rs 5lacs & upto Rs. 1.00 crore (All facilities WC & TL facilities)(Proposals upto Rs. 5.00 lacs have to be coveredunder the scheme "SBI Micro Loans" ).

CC(Stock) limit of Rs40.00lacsTL of Rs.49.00lacsTotal Exposure to the unit is Rs89.00lacs

Type of FacilityCash Credit, Letter of Credit, Bank Guarantee,Term Loan.

. CC(stock)TL

Repayment

Working Capital(WC) : On DemandTerm Loan : Maximum Seven Years including moratorium period not exceeding 6 months -1 year.

Working Capital(WC) : On DemandTerm Loan In 78 monthly installment of Rs63000/-+intt.(as & when applied)starting form Oct.2010. The Intt. will be serviced by the unit during moratorium period.

Submission of StockStatement

Up to Rs.25.00 lacs, once in a quarter.Above Rs. 25.00 lacs once in a month.

Once in a month

Rate of Interest

We propose the following concessional rate ofInterest for the first year. Thereafter, the interest will be charged at the applicable rate for the advance.Limits WC & TL for

< 3 yrsTL for 3 yrs.& above

Upto Rs. 25.00lacs

Fixed 9% p.a.

Fixed 9.5%p.a.

Above Rs. 25.00lacs to Rs.1.00Cr

Fixed 10% p.a.

Fixed 10.50%p.a.

The aforesaid concessionary rate of interest will be applicable to loans sanctioned upto 30th September 2010.

for 1st year onlyWorking capital:- Fixed 10% p.a.TL- Fixed 10.50%p.a.

thereafter ROI will according to the pricing based on CRA rating at that time.

Loan Processing andService Charges

50 % of the normal rates. (Applicable on first time sanction and annual renewal charges)

For working capital -Rs.250/- per lac to be realized for CC limit.For TL- Up front fee:0.63% of loan amt.

Other Charges Normal rates Being proposedCGTMSE Fee Guarantee fee & Annual Service Fee as per the

rates prescribed by CGTMSE from time to time to berecovered. Details mentioned in the Part -2 of

As per the Part -2 of theCircular no. SME/RKG/CIR-63/2009-10 DT-12.01.10


thecircular.

Inspection of theUnit

Exposure upto Rs.25.00 lacs : Once in a quarter.Exposure above Rs. 25.00 lacs : Monthly.

Monthly.

Security

Primary Security: Assets created out of the creditfacility so extended.

Other Security: Unencumbered assets which aredirectly associated with the business for which thecredit facility is extended. i.e. land & building ofFactory /office/godown which pertains to unit andassociated with the business.Third Party Guarantee: No third party guaranteeother than personal guarantee of the borrowerPromoters, Partners etc.In case the loan is sanctioned to Private/PublicLimited company, the guarantee of directors willbe treated as third party guarantee.

Hypo of stock & equipments (existing as well as new to be purchased by bank finance.)

N.A.

Personal guarantee of the borrower Sri Shiv Nath Prasad Gupta.

No third party guarantee has been obtained.

Application and Appraisal format

Annexure -I : Common loan application form forloans upto Rs.1.00 crs.

Annexure -II :Appraisal below Rs.25.00 lacsAnnexure - III :Scoring Model below Rs. 25.00 lacsAnnexure - IV :Annual ReviewLoan proposals for loans of Rs. 25.00 to Rs.1.00crore have to be appraised on format "S".

Applied on General application form on 29.03.10,we have processed the loan proposal on the above application only.We have processed the loan proposal on Format S as the loan amount is Rs.89.00 lac.

Documentation : As per the SME documentation.

As per Revised Simplified SME Documentation

SanctioningAuthority

As per the scheme of delegation of powers.

The proposal falls within the discretionary power of Astt.General Manager (SANCTION), as the total FB exposures are at Rs.89.00 lacs and segment is SSI.

Credit Rating a. Below Rs. 25.00 lacs : Preliminary screening and eligibility of the entrepreneur as per the scoring model of SME Smart Score with modification in collateral score. As third party collateral security is not applicable to the scheme, score under personal and business parameter need to benormalised to get a score out of 100. (Annexure- III)b. Rs. 25.00 lacs to Rs. 1.00 crore Simplified CRA rating model as prescribed by CRMD. Any deviation in "Hurdle Scores" against individual

Here loan amount is above Rs. 25.00 lacs, hence Simplified CRA rating model as prescribed by CRMD has been enclosed..


risk parameters has to be approved by the Competent authority.

Review / Renewal

Working capital renewal every two years. However,performance of the unit and conduct of account will be reviewed annually for continuation of limits.

Being Proposed

TAT

Under the scheme, formalities like valuation, NECcum lawyer's opinion, physical inspection ofcollateral security, are generally not involved.Hence, after receipt of completed application formand documents as per checklist the loan has to besanctioned within two weeks time.

Initially, the proposal was under CGTMSE coverage scheme only. The required paper has been submitted by the unit on 14.06.2010, accordingly we have processed the proposal on 16.06.2010.

Invocation ofCGTMSE Guarantee

In case there is a slippage in the account,Branch/CPC has to take proactive measureincluding invocation of CGTMSE Guarantee in the prescribed manner

Maint.deptt please ensure to comply all the necessary formalities.

Other term & conditions

As per CGTMSE coverageBeing Proposed


format_s

Documents

ms usha poly plast address

ms usha poly sbi

unit ms krishna plastic

mfg unit of pvc pipe

pvc section pipe

na new unit

bela industrial estate

industrial area