Vidisha Bhopal Kshetriya Gramin Bank,Head Office, Vidisha

HO/CREDIT/50/2011-12 20thOct 2011

Memorandum: Appraisal Note

Proposal for sanction of Term Loan: M/s Mini Warehouse

Proposal:

We have received a proposal for sanction of a new term loan of Rs.51.30 lacs from our Basoda Branch for construction of Ware house, Grading Shed , purchase of Grading Machine,Weigh bridge etc. under the NABARD’s AMI Scheme for which subsidy of 25% of the project cost will be available from the Government of India. This scheme has been formulated to develop marketing infrastructure in the country to cater to the post-harvest requirement of production and marketable surplus of various farm products. This scheme is reform linked and assistance for development of infrastructure projects will be provided in those States/Union Territories which permit setting up of agricultural markets in private and cooperative sectors and allow direct marketing and contract farming. The required reform in APMC Act has been done in Madhya Pradesh and as such the infrastructure financed by bank are eligible for subsidy under the scheme.The recent change in instructions from NABARD dated 11.10.2011 has been incorporated in calculation of subsidy & promotor’s margin has been proportionately increased in the project

Brief History:

Smt. Savita Samaiya w/o Shri A.K. Samaiya proprietor of M/s Mini Warehouse proposes to establish aWarehouse & other services at Village Hatoda, Tahsil Ganj Basoda, District Vidisha. The promoter is from a business family and is also proprietor of firm M/s Mini Agencies which is into manufacturing & trading of Agriculture Equipments & they had a good customer base in the surrounding area among farmers which they intend to encash in the present project. The promoter’s husband Mr. Amresh Kumar Samiya will also assist in the above project & although they are new to our bank but are well known & established in Ganj Basoda with very large means.The above unit will be managed and controlled by the promoter with the assistance of three other employees. The details of their A/cs with other FI are mentioned elsewhere in this appraisal , both A/cs are regular & Standard Asset as per IRAC norms.

Project:

Construction of Warehouse, Grading shed, installation of Grading Machine and Weigh Bridge for Storage, Grading & Weighing of food grains and pulses of nearby farmers with the installed capacity of 3000 M.T. (Warehouse), 1 MTPH (Grading Machine) 50 MT (Weigh Bridge) respectively. The demand in the area far exceed the existing capacity of storage & other services in private as well as Government Warehouses.Technical Feasibility:

Location and site Selection: The proposed project is situated at Village Hatoda in Tahsil Basoda District Vidisha on Ganj Basoda- Bareth road. The land is situated at near New Grain Mandi Ganj Basoda where there is no Godown nearby & the proposed unit is well connected to other parts of state and other major cities by road. The location is situated and surrounded with famous Gram Wheat and Soybean producing Ganj Basoda and Vidisha. The project’s site is free from flood and water logging in rainy season.Building of Warehouse: The building of the warehouse is being built as per the specification of Indian Standard code of practice for construction of bagged food grain storage structures.Area of the godown is 1392.53 Sq.m with the average height of a godown not less than 5.6m as per the Indian Standard code of practice for bagged food grain storage structures (IS: 607-1971),the passage between the two stacks is 1.56m, parallel to the width of the building and 0.76 m in the longitudinal directions and around the stacks at the periphery. The cost of construction of godown per MT as per projection comes to Rs.1875. The storage capacity of the proposed warehouse is 3000 M.T.

2.

Building of Grading Shade: The size of grading shed is 83.53 Sq.m & the capacity of grading machine is 1 MTPH .

Weigh bridge : A fully electronic weigh bridge of capacity 50 MT is to be installed at site.

Process of grading: The grading process is very simple & technical person required is easily available locally, the process involve putting grains through different size of sieve which help in sorting uniform size of grains resulting in higher value of produce.

Financial Feasibility:

i) Cost of Project: (Rs. in lacs)Cost of Construction of Rural Godown 56.45of 3000 MT capacity. Grading Machine 7.35

Grading Shed 4.04Boundary wall 4.99Weighing Structure (50 MT) & operator Room 1.43Weighing Machine (50MT) 6.38 Tubewell 0.65Internal Road 2.51Total: 83.80

Cost of Construction of the Rural Godown: The estimated cost of construction for the godown has been prepared by Mr. R.K. Dixit Engg. Consultants at Rs. 56.45 lacs for the 3000 MT capacity of the godown which conforms to the NABARD norms of cost of warehouse construction @ of Rs.1875/- per MT capacity. Cost of Grading Machine: The entire processing plant and machine (capacity 1 TPH on wheat basis) will be purchased from the Padsons Industries Pvt. Ltd at the cost of Rs.7.35 lacs which appears to be reasonable and acceptable to us.Cost of Weighbridge :A Kanan fully electronic weighbridge 50MT is proposed to be purchased from M/s Kanan Weighing system for Rs.6.38 lacs which seems to be fairly valued and acceptable to us. Construction Cost of Grading Shade, Weigh Structure, Tubewell, land development and boundary walls: We have discussed about the construction cost of the above with the Engineer and the cost of construction of above items of Rs.13.62 lacs appears to be reasonable as per the enquiries from the existing similar projects operating locally.

ii) Means of Finance: (Rs. In lacs)Promoter's Contribution 32.49Subsidy through NABARD (Back end subsidy) 17.10Bank Term Loan 34.20Total: 83.80

Promoter’s Contribution in the Project: The promoter will contribute 38.77 % of the total project cost excluding land cost as per the 25% norms under the above NABARD Scheme. Subsidy: As per the new guidelines of NABARD that godown cost shall not be more than 50% of total financial outlay (TFO) so it is assumed that Godown cost is 49% of TFO i.e. 83.80*49% = 41.06Now revised cost for subsidy purpose is Rs. 68.40 Lacs. Subsidy @ 25% = Rs.17.10 lacs The subsidy of Rs.17.10 lacs calculated is realistic.Bank’s Term Loan: Term loan of Rs.34.20 lacs as computed is as per the scheme. The bank will initially sanction a total term loan of Rs.51.30 lacs including the amount of the subsidy as it is back ended and will be adjusted in the term loan account at the expiry of the entire loan.

3.

Debt Equity Ratio: Debt to Equity Ratio in the above case is 1.50 when subsidy is also treated as debt and it is as per the standard norms of 3. Hence, it is acceptable to us.

Promoter’s contribution in case of cost overrun: Promoter is capable of contributing additional investment in case of cost overrun & has consented to bear the amount if cost overrun than the projections.

Working Capital : There is no requirement of working Capital in the project but any meager amount required will be contributed by promoter

Project implementation Schedule:

Building has been constructed up to plinth level and walls up to the lintel have been completed.

Necessary permission for construction has been received from the Gram Panchayat Vill Hatoda

Diversion of agriculture land vide Case No.75A02/10-11 dated 24.06.2011 has been obtained from SDM Court.

Promoter has invested his contribution as on date. Market:As described earlier, Village Hatoda, Bareth Road which is a good centre for this type of post-harvest management/marketing service business & due to their existing business of M/s Mini Agencies they had a good customer base in the surrounding area among farmers which they intend to encash in the present project. Nowadays due to better Agronomic practices & Farm Management adapted by the farmers the production of cereals, pulses and grains are increasing every year as such providing this type of facility in the area will enable the promoter to utilize installed capacity easily. This facility will also enable the farmers to sell their produce at remunerative prices and avoid distress sales.

Economic Viability: Economic viability of the project has been computed on the assumptions of capacity utilization of 75% in first year, 80% in second year and 85% in third year, 90% fourth year onwards for Godown & the Grading machine has been assumed to work at 50% (first year) and 60% from second year onwards after discussion with the promoter and the promoters of similar units presently operating locally. Projected Profitability and DSCR, Cash Flow , Balance Sheet, IRR and Credit Rating have been computed in annexure I, II, III & IV respectively. Financial indicators of the unit are as follows.

Average Gross DSCR: Projected Average Gross DSCR of the unit is 2.77. This is well above the standard norms and therefore it is acceptable to us.

Particulars Y-0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10Profit after Tax -3.08 4.01 8.54 9.77 11.04 11.68 11.23 11.85 12.48 13.14 13.3Add: Depreciation 0 3.14 4.03 3.83 3.64 3.46 3.28 3.12 2.96 2.82 2.68Add: Intt on Loan 3.08 4.02 3.78 3.51 3.21 2.87 2.49 2.06 1.58 1.03 0.89

Total(A) 0 11.17 16.35 17.11 17.89 18.01 17 17.03 17.02 16.99 16.87Repayment of term loan 0 1.9 2.14 2.4 2.71 3.05 3.43 3.86 4.34 4.89 5.5Add: Intt on Term loan 3.08 4.02 3.78 3.51 3.21 2.87 2.49 2.06 1.58 1.03 0.89

Total(B) 3.08 5.92 5.92 5.91 5.92 5.92 5.92 5.92 5.92 5.92 6.39DSCR (A/B) 0.00 1.89 2.76 2.90 3.02 3.04 2.87 2.88 2.88 2.87 2.64 Average DSCR 2.77

*Income tax have not been provided as 100% income is exempted from IT for a period of 5 years to the project and thereafter 70% of income is exempted from IT for the next five year.As clear from above, promoter has sufficient liquid surplus to meet out unforeseen expenditure and can easily repay bank's term loan installments as well as interest in phased manner

4.

Cash Flow Statement: Net cash generated each year has been given as under. It is evident from the following table that the unit has sufficient cash to repay the loan.

PARTICULARS Y-0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Net cash generated -

3.36

10.44

11.20 11.98 12.10 12.20

11.17 11.17 11.14

10.49

Break Even Point (BEP) Analysis : The unit will break even in the first year itself with a safety margin of minimum 32.85 % & the BEP as computed in the project report is acceptable to the bank.

Internal Rate of return : The IRR of the unit is 36.25 % which is above the stipulated norms of 15% & hence acceptable to the bank.

Family Concern : The firm is having two more business namely M/s Mini Agencies prop Smt. Savita Samaiya & M/s Mini Traders prop Shri A.K. Samaiya.

Other Financial liabilities:

S.N.

FI Type of loan

Particular Date of sanction

Sanction Amt. Present O/s

Status IRAC

1 Nagrik Bank Basoda

CC M/s Mini Agencies

22.12.2008 Rs.7.00 lacs Rs.7.33 lacs Regular &

Standard Asset*2. Nagrik Bank

BasodaCC M/s Mini

Traders22.12.2008 Rs.5.00 lacs Rs.5.05 lacs

* Branch to obtain opinion report from existing bankers.

Managerial Competency :The above unit will be managed & controlled by promoter himself & her husband both have good experience of running various type of business.

Credit Rating :As per the credit policy of bank ,the methodology adopted for Credit rating is as followed in Sponsor bank (SBI) similar loan appraisal. The credit rating is at SBTL - which denote good safety & acceptable bankable risk in the venture.

Special Terms & Conditions for Term Loan Rs. 51.30 lacs:Security: A) Primary - 1) Hypothecation of Grading Machine, Weigh bridge etc.

2) EM of 0.627 Hact. land and proposed Warehouse building

S.N. Particulars Market Value Nature of Charge1. EM of land 0.627 hact. diverted land part of survey

no.410/3/1/1 P.H No.24/42 and proposed Warehouse Godown at village Hatoda Teh.Ganj Basoda Distt. Vidisha owned by Smt Savita Samaiya

Rs. 130.00 lacs(Value of land)

EM

TOTAL: Rs.130.00 lacs

B) Collateral Security:S.N. Particulars Market Value Nature of Charge1 EM of double story residential house situated at W-7

House No. 728 Near SDO Residence Bareth Road Ganj Basoda Vidisha, Plot size aprox. 1500 sq .ft. owned by Smt Savita Samaiya bounded by E- Bareth Road, W- Gali, N- H/o Shri Samaiya ,S- H/o Smt Rukmini Bai

Rs. 48.00 lacs EM

TOTAL: Rs. 48.00 Lacs *

* Valuation by approved valuer dated 25.09.2011

5.

C. Guarantee: Third party Guarantee of Shri Amresh Kumar Samaiya s/o Shri S. K. Samaiya R/o W-7 House No. 728 Near SDO Residence Bareth Road Ganj Basoda Vidisha having networth of Rs.60.00 lacs as per branch opinion report dated 07th Oct 2011

D. Margin : 38.77 %

E. Subsidy : 25% (Back end subsidy)

F. Interest : 12.00% p.a. With monthly rests

G. Period of Sanction : 10.5 years including moratorium period

H. Repayment Schedule: 120 EMI of Rs,49067.00 with start up period of 6 Months from the date of first disbursement made or completion of project whichever is earlier. Interest & other charges during start up period to be paid on applied basis. I. Inspection : Quarterly by Branch Manager J. Insurance : For full value with usual bank's clause to cover usual risks at the Borrower’s cost.

Other Terms & Condition

01. The terms and conditions of sanction be conveyed in duplicate to the Borrower and Guarantor and obtain their acknowledgement on the duplicate copy and keep it with the security documents.

02. All the documents obtained must be stamped as per rates prescribed in State Stamp Act. 03. Recover processing & other charges as per instructions. 04. Please inspect the properties proposed to be mortgaged and keep it with the inspection report

along with security documents.05. Please take full precaution, to prevent damage to the goods by fire/ water/ moisture/ dampness/White ants/ rusting etc. 06. The security offered to the Bank should be outside the purview of the charge of any other

Bank or Financial Institution. 07. Please ensure that the borrowers deal exclusively with our Bank. 08. Bank will have the right to publish the name of borrower/guarantor in case of default.09. Disbursement shall be made as per progress of work and report of each inspection kept with

loan document 10. Branch Manager must ensure the end use of fund after verification of bills and inspection

during stages of construction. A detailed report of each inspection shall be prepared and kept with loan document.

11. Ensure valid Equitable Mortgage is created and also follow the suggestions / observations made by the advocate in his title search report12. Please also refer HO/Cir/ 27 /09 dated 17.08.09 and accordingly please ensure register of EM with the Sub-Registrar.13. Please ensure compliance of KYC norms14. Please obtain SME series document.15. Please ensure to obtain an undertaking that in case subsidy is not received the borrower & guarantor are liable to pay the full amount including subsidy.16. Please obtain an undertaking from the applicant/borrower that they are not related to any of the Board of Director’s & staff members of the bank. 17. A CA certificate should be obtained to this effect that the applicant/borrower has already invested his share of margin money.

6.Recommendation:

It is well known that the small farmers neither have the economic strength to retain the produce with themselves till the markets prices are favorable nor they have the facility to standardize their produce to fetch good prices in the market. There is large gap between demand & supply as during harvest season there always remain lack of space in godowns as such ample scope of rural godowns is always felt in the area.The grading plant will help in value addition of agriculture produce for storage & weighing machine will able farmers to sell the goods with proper weight at warehouse itself. Smt. Savita Samaiya w/o Shri A.K. Samaiya proprietor of M/s Mini Warehouse, although are new to our bank but are well known & established in Ganj Basoda with very large means.The IRR of the project is at 36.25% which is similar to this type of project in vicinity. Keeping in view the Economic viability & technical feasibility of the project, applicant’s worth , security offered by them & Branch Manager’s recommendation, We recommend for sanction a Term loan of Rs. 51.30 lacs (including back end subsidy Rs. 17.10 lacs). Thus total liability excluding subsidy shall be Rs.34.20 lacs, which is covered by collateral securities of Rs.48.00 lacs apart from the value of land in primary security which itself is worthRs.130.00 lacs

Recommended for sanction Rs.51.30 lacs (Rs. Fifty One Lacs Thirty Thousands only)

Senior Manager (Credit)

Sanctioned as recommended Rs.51.30 lacs (Rs. Fifty One Lacs Thirty Thousands only)

General ManagerSubmitted for control to the Chairman.

General Manager

Annexure I

Estimates of Probable Profits & DSCR.

PARTICULARS Y-0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10Storage Capacity (MT) - 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

Capacity UtilisatIon ( Rs. 3.50 per qt.*12month*10) 0% 75% 80% 85% 90% 90% 90% 90% 90% 90% 90%

INCOMES (Rs. In Lacs)

Gross rentals from storage - 7.09

10.28

11.14

12.03

12.27

12.52

12.77

13.03

13.29

13.55

Income from Grading - 2.06

3.37

3.43

3.50

3.57

3.64

3.72

3.79

3.87

3.94

Income from Weighbridge 1.69

2.36

2.48

2.60

2.73

2.87

3.02

3.17

3.32

3.49

Income from trans. & Han-dling

2.63

3.57

3.52

3.46

3.40

3.32

3.24

3.15

3.05

2.94

GROSS INCOME - 13.46

19.58

20.58

21.60

21.98

22.36

22.74

23.13

23.52

23.92

LESS: DIRECT COST

Power and Fuel - 0.36

0.60

0.63

0.66

0.69

0.73

0.76

0.80

0.84

0.88

Labour exp. For Grading - 0.24

0.33

0.35

0.36

0.38

0.40

0.42

0.44

0.47

0.49

LESS : EXPENDTURE

Salaries - 1.04

1.52

1.67

1.84

2.02

2.22

2.44

2.69

2.96

3.25

Fumigation and other Preser-vation exp. -

0.04

0.05

0.06

0.06

0.06

0.07

0.07

0.07

0.07

0.08

Dunnage and cleaning exp. - 0.07

0.10

0.11

0.12

0.13

0.13

0.14

0.15

0.16

0.16

Maintenance of Structure(0.5% of cost of Fixed Assets) -

0.16

0.16

0.16

0.16

0.16

0.16

0.16

0.16

0.16

0.16

Insurance Exp. (@ Rs. 8.25 per MT per annum) -

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.38

Other operational Exp. - 0.14

0.21

0.23

0.25

0.26

0.28

0.29

0.30

0.32

0.34

Depreciation - 3.14

4.03

3.83

3.64

3.46

3.28

3.12

2.96

2.82

2.68

Operating Profit - 8.03

12.32

13.29

14.26

14.56

14.83

15.08

15.29

15.48

15.50

Financial Charges (Intt. Etc) 3.08 4.02

3.78

3.51

3.21

2.87

2.49

2.06

1.58

1.03

0.89

Profit Before Tax -3.08 4.01

8.54

9.77

11.04

11.68

12.34

13.02

13.72

14.44

14.61

Provision for Taxes - - -

- - -

1.11

1.17

1.23

1.30

1.32

Profit After Tax -3.08 4.01

8.54

9.77

11.04

11.68

11.23

11.85

12.48

13.14

13.30

DSCR - 1.89

2.76

2.89

3.02

3.04

2.87

2.88

2.88

2.87

2.64

Average DSCR 2.

77

Annexure II

Projected Cash Flow

PARTICULARS Y-0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Cash from operating activities

Net profit as per P/L A/c -3.08 4.01

8.54

9.77

11.04

11.68 11.23 11.85

12.48

13.14 13.30

Add: Depreciation 0 3.14

4.03

3.83

3.64

3.46 3.28 3.12

2.96

2.82 2.68

Income Tax Provided for - -

-

-

- 1.11 1.17

1.23

1.30 1.32

Net cash generated from op-erations

(3.08)

7.15

12.57

13.61

14.68

15.14 15.63 16.14

16.68

17.26 17.29

Less: Income Taxes Paid - -

-

-

-

-

(1.11)

(1.17)

(1.23)

(1.30)

Increase/decrease in net 3.08 -1.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Working Capital - -

-

-

-

-

-

-

-

-

Net cash from operating activ-ities

-

5.55

12.57

13.61

14.68

15.14 15.63 15.03

15.51

16.02 15.99

Cash from investing activities

Net increase in Fixed Assets (83.80) -

-

-

-

-

-

-

- -

Back Ended Subsidy ( Deposit)

(17.10)

- 17.10

Security Deposit(MPEB) -

(0.30)

Net cash from investing activi-ties

(17.40) -

-

-

-

-

-

-

- 17.10

Net cash from financing activities

Net capital introduced 32.49 -

-

-

-

-

-

-

- -

Subsidy -

17.10

-

-

-

-

-

-

- -

Long Term loans ( including Subsidy)

51.30 -

-

-

-

-

-

-

- -

Repayment of loans (1.90)

(2.14)

(2.40)

(2.71)

(3.05)

(3.43)

(3.86)

(4.34)

(4.89)

(22.60)

Net cash generated from fi-nancing activities

83.80

15.20

(2.14)

(2.40)

(2.71)

(3.05)

(3.43)

(3.86)

(4.34)

(4.89)

(22.60)

Total cash generated(A, B, and C)

-

3.36

10.44

11.20

11.98

12.10 12.20 11.17

11.17

11.14 10.49

Add: Opening balance of cash and cash equivalents

- 3.36

13.79

25.00

36.97 49.07 61.27

72.44

83.61 94.75

Cl. balance of cash and bank

-

3.36

13.79

25.00

36.97

49.07 61.27 72.44

83.61

94.75 105.23

Projected Balance Sheet : Annexure III

LIABILITIES Y-0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10OWNERS FUND

CAPITAL A/C 32.49 32.49

32.49

32.49

32.49

32.49

32.49

32.49

32.49

32.49

32.49

RESERVE & SURPLUS

Net Profit during the year (3.08) 4.01

8.54

9.77

11.04

11.68

11.23

11.85

12.48

13.14

13.30

Net Profit previous year (3.08)

0.93

9.47

19.25

30.29

41.98

53.21

65.05

77.54

90.68

CAPITAL SUBSIDY - 17.10 17.10 17.10 17.10 17.10 17.10 17.10 17.10 17.10 17.10

BANK LOAN 51.30 49.41

47.27

44.87

42.16

39.11

35.69

31.83

27.49

22.60

-

UNSECURED LOAN - - - - - - - - - - -

CURRENT LIABLITIES

PROVISIONS

Interest due but not paid 3.08 -

Installment due of term loan

- 1.48

1.48

1.48

1.48

1.48

1.48

1.48

1.48

1.48

1.48

Provisions for Taxes- - - - -

1.11

1.17

1.23

1.30

1.32

TOTAL 83.80 101.41

107.82

115.19

123.52

132.16

141.08

149.13

157.33

165.65

156.36

ASSETS Y-0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

FIXED ASSETSGross Block

83.80 83.80 80.65

76.62

72.79

69.15

65.69

62.41

59.29

56.32

53.51

Depreciation - 3.14

4.03

3.83

3.64

3.46

3.28

3.12

2.96

2.82

2.68

Net block 83.80 80.65

76.62

72.79

69.15

65.69

62.41

59.29

56.32

53.51

50.83

INVESTMENT(Back Ended Subsidy) 17.10

17.10

17.10

17.10

17.10

17.10

17.10

17.10

17.10

-

LOANS & ADVANCESCash and Bank Balance

- 3.36 13.79

25.00

36.97

49.07

61.27

72.44

83.61

94.75

105.23

Security Deposit (MPEB) - 0.30

0.30

0.30

0.30

0.30

0.30

0.30

0.30

0.30

0.30

TOTAL 83.80 101.41

107.82

115.19

123.52

132.16

141.08

149.13

157.33

165.65

156.36

INTERNAL RATE OF RETURN

Total Outlay Rs. 83.80Lacs

INTERNAL RATE OF RETURN

Net Cash inflows (PBDIT)19.3

7 25.2127.2

0 27.9428.7

1 29.5130.3

4 31.20 32.1232.6

5P V factor at 36.50% 0.73 0.54 0.39 0.29 0.21 0.15 0.11 0.08 0.06 0.04Discounted cash flows 36.50%

14.19 13.53

10.70 8.05 6.06 4.56 3.44 2.59 1.95 1.45

1.365 1.365

1.365 1.365

1.365 1.365

1.365 1.365 1.365

1.365

Total NPV 66.51

P V factor at 36.00% 0.74 0.54 0.40 0.29 0.21 0.16 0.12 0.09 0.06 0.05Discounted cash flows 36.00%

14.24 13.63

10.81 8.17 6.17 4.66 3.53 2.67 2.02 1.51

1.36 1.36 1.36 1.36 1.36 1.36 1.36 1.36 1.36 1.36Total NPV 67.40

Internal rate of return (IRR)36.25

%Total Ouflows at the beginningRs.83.80 Lacs

Note : Cash inflows also includes Capital Subsidy of Rs 17.10 Lacs

Net outflows Rs. 66.69 Lacs

Annexure IV

Name of Unit : M/s MINI WAREHOUSETerm Loan : SME Credit rating based on financial statement as on 31.03.2012

Financial Risk Parameters Value Full

marks Marks

ObtainedStatic Ratio      Project Debt / Equity ratio 1.50 5 5TOL / TNW 1.50 5 5Gross average DSCR of the project 2.88 5 5Gross average DSCR for all Loans 2.88 5 5Terms of Repayment   5 0Sub-Total Score (out of 25)   25 20Risk Mitigation: Collateral Security/ Financial standing   6 6Sub-Total Score (out of 6)   6 6Aggregate Fin. Risk Score (Out of 31)   31 26Normalized Financial Risk Score (Out of 25)   25 20.97

Business Risk Parameters  Full

marks Marks

ObtainedTechnology   4 3.5Capacity Utilization Vs. Break Even Point   2 2Compliance of Environment Regulations   2 2User /Product profile   2 1.5Consistency in Quality   4 3.5Distribution Network   2 2Consistency of Cash Flows   4 3.5Aggregate Business Risk Score (Out of 20)   20 18Normalized Business Risk Score (Out of 25)   25 22.50

Industry Risk Parameters  Full

marks Marks

ObtainedCompetition   2 1.5Industry Outlook   2 1.5Regulation Risk   2 1Contemporary issues like WTO etc.   2 1.5Aggregate Industry Risk Score (Out of 8)   8 5.5Normalized Industry Risk Score (Out of 10)   10 6.88

Management Risk Parameters  Full

marks Marks

Obtained

Integrity : Sole proprietor firm / partnership firm / Pvt. Ltd. Compa-nies      or Integrity : Corporate Governance   3 3Track record   3 2Managerial Competence / Commitment   3 3Expertise   2 1.5Structure & System   2 1.5Experience in the Industry   2 0Credibility : Ability to meet sales projections   2 1.5Credibility : Ability to meet Profit (PAT) projections   2 1.5Payment record   2 1.5Strategic Initiatives   2 1.5Length of relationship with the Bank   2 2Aggregate Management Risk Score (Out of 25)   25 19Normalized Management Risk Score (Out of 40)   40 30.40Total Score   100 80.75Credit Risk Rating SBTL -