Annexure-II

CREDIT APPRAISAL FORMAT FOR LIMITS UPTO RS.2 CRORE (FOR MSME UPTO
RS.5 CRORE)
SANCTIONING AUTHORITY
The proposal falls under the powers of Chief Manager(Incumbent Incharge) on account of
Fresh Term Loan limit of Rs. 11.25 lacs for purchase of some new machineries.
Credit Proposal Tracking System (CPTS) No. / Date:

1274002014000033

01-10-2014

1. Name of the Borrower, BO & Controlling Office :

Date of
proposal

01-10-2014

Whether
fresh/renewal
/
enhancement
/
In-principle
Asset
Classification
as
on
30.09.14

Fresh sanction of Term Loan of Rs. 11.25 lacs

Credit
Rating
Bank

Standard

Risk
by

Credit Risk
Rating
Facility
Rating

Rating

Date of
Rating

Score

ABS

Date*

Reasons
for
degradatio
n
**

Validity

Present

PNBB2

17-1014

48.00

31.03.14

30.09.15

Previous

PNB- D

14-0314

22.00

31.03.13

30.09.14

Present

NA

Previous
*12 months from the month of confirmation of rating or 18 months from the date of
balance sheet on the basis of which credit risk rating was assigned, whichever is
earlier.
** The rating was improved due to score under future financial risk

compared to last rating.

Last
PMS
Score (as on
),
if

NA

applicable
Customer ID
No./Corporat
e Identity No.
(CIN)

D11455453

Activity Code
as
per
LADDER

4001

Whether
sensitive
sector Real
estate/Capita
l
market
alongwith
applicable
risk weight
Whether
priority/non
priority sector
as
per
PS&LB
guidelines
(Sub-sector
may also be
mentioned.)
Date of last
sanction
&
Sanctioning
Authority

NA

Priority Sector

SME- Manufacturing

24-06-2014, CM

GIST OF THE PROPOSAL

Fresh Term Loan of Rs.11.25 lacs for purchase of new machine.

1.
a)
b)

Name of the Borrower and

Constitution
Address of Regd. Office
with e-mail ID

K D Fashions India Pvt Ltd

c)

Works/Factory

Plot No. J-65, M.I.D.C. Industrial Area,

Tarapur, Boisar 401 504. Dist. Thane,
Maharashtra

d)

Date of incorporation/
establishment

07-02-2002

e)

Dealing with PNB since

Feb.2002

f)

Business

Job work for readymade garments

Activity

210, Dwarkesh Market, 2nd Floor, Mumbai 400

002.
kdfashions@gmail.com

(Product)/
Capacity

Installed
Peddar Road, Mumbai

2.

Branch Office/CO

3.a
)

Directors/Partners/Propriet
ors
(Name,
Address,
Mobile No., e-mail
ID of main Directors/Key
persons) with PAN No. &
DIN(in case of Co.)

b)

Whether any of them, in

RBIs
Caution
advices/ECGC
Caution
list/Wilful defaulters' list. If
yes, the reasons for
considering the proposal.
If any of them, related to
Directors/ Sr. Officers of
PNB

No

d)

Management
Change
since last sanction, if any

Nil

e)

Whether Memorandum of
Association permits the
Activity & Powers for
borrowings

yes

f)

Shareholding Pattern

c)

g)

1)

2) Mr. Ravi Jain (AACPJ5813E)

M-9821078730
3) Mr Dharmchand Jain
(AABPJ9170B)
4) Mr Mukesh Jain
(AABPJ9123C)
B-2, 14th Floor, Tirupati Apt, Bhulabhai
Desai Road, Mumbai, 400026

No

Name
Dharamchand K. Jain
Mukesh D. Jain
Ravi Jain
Yes

(i) Confirmation that CRs

have
been
compiled/reviewed as per
extant
guidelines
(presently L&A Circular No.
33 dated 31.03.2011) and
comments on adverse
features, if any
Dat
e of
CIR
131014
081014
10-

Rating ID

Name
CIC

of

1274002014511
253

CIBIL
(commercial)

1167643

CIBIL

1167588

CIBIL

%
shares
held
33.29
33.28
33.28

Adverse
features, if any
observed
Nil (For
Company)
Nil ( For
Dharamchand
Jain)
Nil (For Ravi

1014
101014
(iii)
In case of Joint
Lending/multiple banking/
consortium
lending
arrangement:
Due diligence report on
prescribed from banks
approved CA/CS.
If qualified, whether
rectified?
Adverse features, if
any, are discussed in
the proposal (copy to
be enclosed with the
proposal)
Confirmation that Sharing
of
Information
on
prescribed format [L&A
Circular No.31/2012 &
99/2012
(compulsory)]
have been obtained from
all lenders and adverse
features, if any, are
discussed* in the proposal
(copy to be enclosed with
the proposal)

Jain)
1158550

CIBIL

Nil (For Mukesh

Jain

NA

Details of other lenders:

1.____________
2.______________
3.______________
4.______________

iv) Views/comments* for

the adverse report about
the borrower/guarantor, if
any,
in
the
public
domain/media:
4. Facilities Recommended:
Nature

Existing

(Rs.in lac)
Proposed

Fund Based
CC(H)/CC (Book Debt)
Inland Bills limit
FOBP/FOUBP/FABC
-Others
Fund Based Ceiling

15.00
15.00

Non Fund Based

NA

ILC/FLC
ILG/ FLG
Non Fund Based Ceiling
Term Loan

11.25

Limit of credit exposure on account of all

derivative products

Exposure Limit for capital adequacy on account

of all derivative products.

15.00

26.25

TOTAL COMMITMENT
5

Details of loans from other Banks/FIs/Consortium/Multiple Banking/JLA as on.

(Rs.in lac)

Name of the Bank

Existing
FB

Share %
NFB

FB

Proposed
NFB

FB

Share %
NFB

FB

NFB

NA

6.A Details of Group Companies/Allied/Associate firms and the facilities sanctioned to

them
Name of the Company

FB

NFB

Name of Dealing Bank

Classification
Account

of

nil

6.B

Comments on conduct of these accounts with our bank/other banks

NA

6.C

Key Financial Figures (Audited) of Group/Allied/Associate concerns (for the last 3

years).
(Rs. in lac)
31.03._____

31.03._____

Paid Up Capital
Reserves & Surplus

Tangible Networth
Block Assets
Secured/Unsecured Loans
Sales
Profit before Tax
Profit After Tax

NA

31.03._____

Comments on Financial Indicators

7.A(i) Financial Position of the borrower
Latest data up to
last quarter of
current financial
year Prov. 31.03.15

(Rs. in lac)
Estimates for the
current year
(31.3.15)

Three
years
earlier
(31.3.11
)

Two
years
earlier
(31.3.12
)

One
year
earlier
(31.3.1
3)

Previou
s year
(31.3.14
)

Audite
d

Audite
d

Audite
d

Audited

Gross Sales

187.43

213.00

170.21

209.91

241.74

Other Income

0.12

2.43

0.03

0.07

Profit before tax

-7.89

-6.00

-19.28

-12.98

5.84

Profit after tax

-7.89

-6.00

-19.31

-12.98

Cash profit/ (Loss)

14.02

7.00

-7.89

-2.75

14.65

Block Assets

222.07

225.30

230.18

230.18

246.10

Accumulated
Depreciation

115.39

128.40

139.80

150.04

160.08

Net Assets

106.68

96.90

90.37

80.14

71.31

Secured Loan

12.35

14.72

17.40

11.69

3.67

Operating Profit/Loss

Unsecured Loan

85.50

88.07

106.24

108.65

99.00

Paid up capital

40.56

40.56

40.56

40.56

40.56

Reserves and Surplus

excluding revaluation
reserves

-26.75

-32.76

-52.08

-65.06

-59.21

Misc. expenditure not

written off

Accumulated losses

Deferred Tax
Liability/Asset

00

Net Working Capital

5.25

-4.11

-101.78

-104.22

-91.12

Current Ratio

1.52

1.00

0.27

0.24

0.24

Debt Equity Ratio

0.29

0.33

-ve

-ve

Long term loans

407096

263096

282281

40608

Tangible Net Worth

13.80

7.80

-11.52

-24.50

-18.65

Operating Profit/Sales

Loss

Loss

Loss

Loss

Profit

7.A(ii)

Comments on Financial Indicators

Sales declined from Rs. 213.00 lacs (FY11-12) to Rs. 170.21 lacs (FY 12-13). However,
there is slight increase in sales in the FY 2013-14 but that was not as per or near to projections.
However, as per audited figures for FY 13-14 same is Rs. 209.91 lacs and the company
estimated sales of Rs. 241.74 lacs for FY 14-15. TNW became negative as at 31.03.14 due to
cumulative net loss. Also, the company has raised unsecured loans from directors/ related party
of Rs. 108.65 lacs as at 31.03.14 and it has constant upward trend. Due to this huge amount
NWC comes -104.22 lacs as at 31.03.13 and current ratio at below acceptable level i.e 0.24:1.
During personal meet with directors, we advised them to convert part of unsecured loans into
paid up capital. This will create positive TNW, accepatable current ratio and positive NWC.
7.B

Details of investment in Shares, Debentures, Units or diversion of funds outside

the business etc.
Nil

7.C

Details of Liabilities not accounted for/Contingent liabilities

Nil

7.D

Status/details of adverse comments by Auditors of the borrowing unit

Nil

7.E

Position of assessment of income tax/sales tax/wealth tax of the borrowing

concern/ partners/proprietor
Copies of IT return filed for AY 2013-14 held on record for the company and 3
directors/ guarantors Sh. Mukesh Jain, Sh. Ravi Jain and Sh. Dharamchand Jain.

7.F

Overall likely impact of (7.B to 7.E) on the financial position of the borrowing unit
Nil

8.A

Primary Security.

8.B

i)

Working capital facility

ii)

Term Loan facility

Hypothecation of book debts

Hypothecation of Machines

Guarantee/Guarantors

Name
of
Guarantor
Mr. Ravi Jain

NMs
Previous
Present
9.18
9.12

IPs1
Previous
Present
0.00
0.00

(Rs. In Lacs)
CR Date
Previous
Present
18.06.14
17.10.14

Mr.
Dharamchand
Jain

27.21

27.66

0.00

0.00

18.06.14

17.10.14

Mr. Mukesh
Jain

46.20

49.22

65.14

65.14

18.06.14

17.10.14

Comments on changes, if any:

Slight Decline in NM of one of the directors/ guranators is due to exclusion of investment shown in K. D.
Fashion I P Ltd which is having ve TNW. However, there is overall increase in net means of all
guarantors taken together.
___________________________
1
Whether charged. If yes, give details

8.C
Total Commitments by Guarantor(s) Rs. 26.25 lacs (15 Lacs Existing CC + 11.25
lacs proposed TL) only
8.D

(i) Collateral Security (Including details of changes in IPs as security from last
sanction, if any)

Security
Area in Ownershi
Description Sq M or p
Sq Ft
Extension
of Equitable
Mortgaage
of Property
situated plot
No. J-65,
MIDC,
Tarapur,
Bhoisar,
Thane

1800
sq.mtr
s..

K.D.Fashio
n Pvt.Ltd.,

Last
sanction
Rs.127.1
6

Value
Present
book
value
Rs.77.42

(ii) Status of verification of the IP

(Amt Rs. in lac)

Basis for Dat
e
Realisable valuation
value

Whether
existing/
fresh

Rs. 270.76

Existing

Valuation
report
from
Banks
approval
valuer
M/S Young
India
Engineers
&
Surveyors

06052014

Name of the Officer, who visited

the site/IP
Nehal Rasania

9.

Designation

PF No.

Sr. Manager

97126

Date of Visit
17-06-2014

Position of Account as on: 08-11-2014

(Rs. in lac)

Nature

Limit

VS

DP

Balance

CC (BD)

15.00

38.89

15.00

5.49

Irregularity
reasons
--

alongwith

10.A

Conduct of the Account

Availment of limit (FB & NFB), overdrawings,

CC limit utilized fully by the company. The company was regular in repayment of TL and
TL availed from us paid fully on time.
Turnover in the A/c (FB/NFB), Routing of proportionate business in consortium, routing
of sale proceeds, honouring of commitment in non fund based facilities(details of LC/LG
devolved/invoked with amount),
Against sales of Rs. 170.21 lacs in FY 2012-13, credit summations in the account was
Rs. 182.36 lacs. Also against sales of Rs. 209.91 lacs in FY 2013-14, credit summations
in the account was Rs.216.98 lacs. So the company is routing sales proceeds through
our account. TL was fully repaid by the company on time.
Regularity in submission of CMA data/ financial statement/QMS/Stock Statement.
The company is regular in submission of stock statement and various financial
statements.
The information regarding no. of cheques returned with amount involved due to financial
reasons during the review period should be mentioned.
Nil
The amount/frequency of irregularity in the account during the review period should be
mentioned.
N.A.
10.B

Review of the Account (Appendix C also to be discussed)

Period
F. Y. 2012-13
F. Y. 2013-14
F. Y. 2014-15
Till the date
08.11.2014

10.C

Cr.
Summation
s
182.36
216.98
143.98

Dr.
Summation
s
187.84
213.54
138.37

Max
Availment

(Rs. In Lacs)
Min.
Availment.

16.11
14.94
14.80

3.20
0.27 cr
6.33

Value of the Account

Period

Nature of
Limit

F. Y. 2012-13
F. Y. 2013-14

CC (BD)
CC (BD)

Amou
nt
15.00
15.00

Average
Availment
15.00
15.00

Interest/Commission
Earned
1.80
1.83

(Rs.in lac)
Yield (%)
12.00
12.20

F. Y. 2014-15
Till the date
08.11.2014

CC (BD)

15.00

15.00

0.96

11.00

Comments, if any:
10.D

Summary of irregularities pointed out by Banks Inspectors, Concurrent Auditors, Credit

Audit & Review Division (CA&RD), RBI Inspectors, Statutory Auditors, observations of
Stock Audit Report, Comment on Preventive Monitoring Score Trends, (and status of
rectification of these irregularities
NIL

11.

Brief History (Should also include comments on industry scenario and industry
outlook, management, production and marketing, borrowers' diversification,
expansion, modernisation programme, risk perception including environmental
and social risk alongwith proposed mitigations)
The company is engaged in jobwork contracts for Readymade Garments. The
company is mainly dealing in Gents readymade garment segment i.e. manufacturing of
shirts and trousers. The company is doing jobwork mainly for Siyaram Silk Mills Ltd,
Raymond Apparel Ltd and Future Retail Ltd.

12.

Present Proposal

a)

Brief of the proposal: Fresh Term Loan of Rs 11.25 lacs

b)

Justification for working capital sanction as per simplified method or traditional

method of lending, as the case may be:
NA

i)

Assessment of Fund Based Limits as per second method of lending:

Rs. in lacs)

Item

Last year actuals

Chargeable current assets

Other current assets
Total current assets
Other current liabilities
Working capital gap
Net Working Capital at 25% of
Total Current Assets less
Export Receivables
Projected net working capital
Permissible bank finance

Current Years
Estimates
20__-20__

Accepted for
assessment Year
20__- 20__

NA

(Reasons for any variation in actual, estimates and accepted level be discussed)

iii)

Assessment of Fund Based Limits as per simplified turnover method

(Rs. In Lacs)

NA

c) Justification of non-fund based facilities

i)

Assessment of Non Fund Based Limits

d)

NA

Justification for term loan/DPG

(i)
(ii)

Purpose- Purchase of Machinery

A.
B.

Appraising agency

NA

Whether vetted by any Technical Officer/ Other Official of Bank

(Name and designation to be furnished).
NA

(iii) Summary of cost of project and means of finance-

Particulars

Amount

Total cost of project (as attached)

16 lacs

Means of Finance-

Own Contribution

04.75 lacs

Bank Finance

11.25 lacs

As per proforma invoice to and fro, loading and boarding of erectors shall be charged
extra.
(iv)

Sources of Promoters Contribution and the time schedule as to when the

funds will be brought.
Promoters will bring in their contribution from their savings & personal accounts
by way of capital & some part by way of quasi capital from relatives.

(v)

Status of tie-up of loans

NA

(vi)

Brief explanation for each major individual item of cost of Project with
present status
along
with
comments
on
the
reasonableness/competitiveness
The firm is purchasing several small machines from Toniy Impex Pvt. Ltd.,
Banglore and Apparel & Leather Technics Pvt Ltd, Banglore, the details are given
below. As per the proforma invoice description of machine is as follows:

S.
No
.

Description

Qty

Rate

Amt

Toniy Impex Pvt. Ltd.

Key Hole Machine

Rs.46500
0

Rs.465000

Bartech Sewing Machine

Rs.15000
0

Rs.150000

Button Hole Machine

Rs.16750
0

Rs.167500

Button Sewing Machine

Rs.15750
0

Rs.157500

Sub-Total

Rs. 991700

CST @ 5.5%

Rs.51700/-

Total

Rs.991700/
-

Apparel & Leather Technics Pvt Ltd

Fusing Press

$ 7670

$ 7670

( Appx Rs. 475540 @ usd/inr -62)

Ex-bonded Warehouse Banglore in USD

$7670

GRAND TOTAL (991700 + 475540 approx)

1467240

As per proforma invoice to and fro, loading and boarding of erectors shall be charged
extra and to be borne by promoters wholly.Margin has been proposed at 25%
and balance will be banks contribution.
vii)

Comments on all major technical aspects like locational advantage,

Technology/ manufacturing process, power, man power, utilities,
transportation, etc.

Yielding the new machines, the competitive advantage of the borrower will
increase substantially. The products of the company will be of better quality and the
productivity will also be better.
The unit is nearer to Bhiwandi warehouses, so power cost is also less there, making the
products more competitive. Also in Tarapur, Boisar , where the unit of the borrower is
located there is no octroi.
viii)

Summary of profitability, Break-Even, DSCR with comments thereon

including Assumptions underlying profitability projections:

Stand Alone Project

Firm as a whole

Debt-Equity Ratio

0.2:1

Average DSCR

6.37

Minimum DSCR

4.75

Internal Rate of Return (Pre Tax)

Break Even Point

Existing running unit

Cash Break Even

Existing running unit

If sales are decreased by 5% then DSCR comes to 2.17:1

This depicts project is moderately sensitive to market changes and carries risk to
external factors.

x)

Status of various statutory approvals and clearances

Unit is already functional. Earlier 2 Term loans were given which were paid
by party on time.

xi)

Present physical & financial status of project, if any

The unit is already functional. The company has requested for TL for
purchase of various machines to add in their production line.

xii)

xiv)

Implementation schedule

Activity

Period

Placement of order for machinery

05,Nov - 14

Balance payment of Machinery

Nov. 2014

Receipt of Machinery & Installation

Dec -2014

Commencement of Production

Jan - 2015

The repayment will start from

April 2015

Proposed repayment schedule: The project is already in operations. The

additional machines will be used

Scheduled date of Completion of Project

Dec - 14

Commercial Operations Date (COD

Jan-15

Implementation period (in months)

1 month

Moratorium (in months)

4 Months

Repayment period in months/quarters/ Half year

60 months with 4
months
moratorium

No. of instalment

60

Starting Date

April 2015

End Date (Last Instalment)

Mar. 2020

Door to door tenor

60 months

Monthly instalment of Rs 18750 and the company will repay interest charged as and when it
becomes due during moratorium and repayment period.
13.

a) Rate of Interest applicable as well as proposed

Rate of Interest for Rating B-2 = Base Rate +2.25% + TP 0.50% presently 13%
subject to change from time to time.
b) Risk perception, if any
The company is doing jobwork for only 3-4 major customers. Any adverse affect
to these customers will have considerable effect on the companys job orders. Also, the
company is doing business with big retail customers; the company has limited
negotiation power on margin.

14.

Other Issues NA

15.

Summary of merits/justifications for considering the proposal.

The company is dealing with us since last 10 years. Accounts of the company are
regular with us. The company has repaid various TLs timely in past. Existing limits are
fully secured by collateral security having value of around Rs. 2.70 crores which is most
imp. Reason for recommendation of the loan.

16.

Recommendations:

16.A
16.B

Deviations in the proposal observed by the recommending authority NIL

Recommendations:
We recommend for term loan of Rs 11.25 lacs for five years.

SIGNATURE OF APPRAISING AUTHORITY

ORDER OF SANCTIONING AUTHORITY

TERMS AND CONDITIONS FOR PROPOSED Term Loan of Rs. 11.25 Lacs: M/s. K D Fashions
India Pvt Ltd.

FACIILITY NO.I
Nature

Term Loan (Purchase of domestic as well as imported machine)

Amount

Rs. 11.25 lacs (Rupees Eleven Lacs Twenty Five Thousand only)

Rate of Interest

Base Rate + 2.25% + 0.5% term premia = presently 13.00% p.a. at

monthly rests as per B2 rating of the party, subject to change as
per RBI/Bank guidelines. Interest rate will be determined based on

Audited Balance Sheet every year.

Primary Security

Hypothecation of Machines purchased by our bank finance

Margin

25 %

Period

Five Years

Repayment

:
Entire loan to be repaid into 60 monthly installments of Rs.18750
per month starting from April 2015 for principal portion plus interest to be
repaid as and when charged.

Conditions:
Insurance

Maintenance of Books :

Banks Name Plate

Insurance of primary security to be done at the cost of the

borrower and policy to remain with the bank.
Party to maintain the books of accounts to the satisfaction of the
Bank

To be displayed prominently where

the machinery/equipments have been installed.

Processing fee / Documentation :

Collateral Security/Guarantee
Security
Area in Ownershi
Description Sq M or p
Sq Ft
Extension
of Equitable
Mortgaage
of Property
situated plot
No. J-65,
MIDC,
Tarapur,
Bhoisar,
Thane

1800
sq.mtr
s..

Guarantors :

K.D.Fashio
n Pvt.Ltd.,

Upfront fee at the rate of 1.25% of the term loan

Last
sanction
Rs.127.1
6

Value
Present
book
value
Rs.77.42

Realisable
value
Rs. 270.76

(Amt Rs. in lac)

Basis for Dat
Whether
valuation
e
existing/
fresh
Valuation
report
from
Banks
approval
valuer
M/S Young
India
Engineers
&
Surveyors

06052014

Existing

Personal Guarantee of Sh. Ravi Jain, Sh. Dharamchand Jain & Sh. Mukesh Jain,
directors of the company to the proposed limit also.

General Conditions :
1. Physical verification of the machinery purchased out of bank finance to be carried by
branch officials.
2. Party to submit the original invoices/ bills upon receipt from suppliers.
3. Insurance of the new company to be got done at the cost of the Company, after
installation of machinery with agreed Banks clase and policy to be kept at Bank.
4. All other terms and conditions applicable to such type of advance to be stipulated.

Nature

Term Loan (Fresh)

Amount

Rs. 11,25,000/- (Rupees Eleven Lacs Twenty Five Thousand Only)

(for purchase of machineries)

Margin

25%

Interest

Base Rate +2.25% + TP 0.50% presently 13% subject to change from time to
time

Security

Hypothecation of Machineries to be purchased out of the term loan

Repayment

Proposed Term Loan will be repaid over a period of 5 Years in 60 monthly

instalments of 18750/- each The first Term Loan Installment will start April 2015.
Any Bank charge, penal interest, commission and amount of insurance premium
shall be paid separately as and when debited to a/c.

GENERAL TERMS & CONDITIONS

1
Party to deal with the bank exclusively.
2
3
4
5

6
7
8

Party to ensure that all the statutory approvals are in place including pollution
control boards certificate.
Facilities will be released only after execution of Documentation duly drafted by
Banks approved advocate is submitted.
Processing Fee as per banks extant guidelines to be recovered before release of
the limits.
The borrower to deal with our Bank only and shall not open current account/s
with any other bank without our prior permission and shall route all sale
transactions through accounts. The sale proceeds should be routed through our
bank proportionately and non compliance of the condition will attract penal
interest.
The Firm and the guarantors shall give a letter of undertaking that, no
consideration whether by way of commission / brokerage / fees in any form will
be paid by the former or received by the latter in any form.
Firm to submit an undertaking that they will not declare or pay any dividend when
there are arrears / overdues in the Loan accounts.
Bank may at its discretion entrust the job of periodical valuation of securities
charged, to a valuer approved by the bank and such expenses shall be borne by
the Firm.

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The validity of the sanction for working capital limits shall be 12 months and the
borrower shall arrange submission of complete papers for renewal of limits within
10 months from the date of sanction.
The borrower shall not undertake expansion / diversification / modernization
without obtaining prior permission of the bank and without proper tie up of funds.
Similarly, no investment shall be made in associate/allied/group concerns without
prior bank permission.
The Bank or its authorized officials or other representatives will have the right to
carry out periodical inspection or examine the books of accounts of the borrower
and to have their factories/offices/assets inspected from time to time by officers
of the Bank and/or outside consultants and the expenses incurred by the Bank in
this regard will be borne by the borrower.
Bank shall have the right to withdraw or modify all/any of the sanctioned
conditions or stipulate fresh conditions, under intimation to the borrower.
The sanction does not vest in anyone right to claim any damages against the
bank for any reasons whatsoever.
Stock Audit to be got carried out on annual basis, as per guidelines of the bank.
Loan documents to be got examined from approved legal retainer for their validity
and the cost to be borne by borrower.
Acceptance of sanctioned conditions to be got from the borrower and placed on
bank records.
The Bank may at its sole discretion disclose any information to any Institution(s)
in connection with the credit facilities granted to the borrower.
During the currency of the Banks credit facilities the borrower shall not, without
the prior approval of the Bank in writing:
(a)
Effect any change in their capital structure;
(b)
Formulate any scheme of amalgamation of reconstruction;
(c)
Undertake any new project or expansion or modernization schemes or
make any capital expenditure other than those estimated/projected in the
CMA data, without obtaining the Banks prior consent;
(d)
Enter into borrowing arrangements either on secured or unsecured basis
with any other Bank, financial institution, borrower or otherwise save and
except the working capital facilities granted/to be granted by other
member banks, under consortium arrangement with the bank and the
term loans to be obtained from financial institutions;
(e)
Undertake guarantee obligations on behalf of any other
borrower/organization;
(f)
Declare dividends for any year, if the account (s) of the borrower with the
Bank is/are running irregular or if any of the terms & conditions of the
sanction remains un-complied with by the borrower.
(g)
Create any charge, lien or encumbrance over its undertaking or any part
thereof in favor of any financial institution, bank, borrower, firm or
persons;
(h)
Sell, assign, mortgage, alienate or otherwise dispose of any of the assets
of the borrower charged to the Bank;
(i)
Enter into any contractual obligation of a long term nature affecting the
borrower financially to a significant extent;
(j)
Undertake any activity other than those indicated in the Object Clause of
the Memorandum of Association of the borrower;
(k)
Permit any transfer of the controlling interest or make any drastic change
in the management set up;
(l)
Divert/utilize Banks funds to other sister/associate/group concerns or for
purposes other than those for which the credit facilities have been
sanctioned; and

(m)

The borrower will keep the bank informed of the happening of any event
likely to have a substantial effect on their operations/production, sales,
profits/disbursements etc., such as defaults/overdues, labour problem,
lock-out, lay-off, power cut etc., and the remedial steps proposed to be
taken by the borrower.
23. Margins/rates of Interest are subject to revision from time to time at the sole
discretion of the Bank.
24. The Bank shall charge penal interest under the following circumstances:
(a)
Default in repayment of Term Loans instalments.
(b)
Irregularities/overdrawing in cash credit account(s).
(c)
Non submission/delayed submission of stock statements after the 10 th of
the following month.
(d)
Non submission/delayed submission of quarterly review sheet information
after 10 days from the closure of the quarter concerned.
(e)
Non/delayed submission of renewal proposal with audited Balance Sheet,
CMA data and statement of assets and liabilities of the guarantors after 9
months from the date of sanction.
(f)
Default in observance of borrowing covenants/terms and conditions of the
sanction.
(g)
Excess borrowings arising out of shortfall in minimum stipulated Net
Working Capital as reckoned in the PBF computation.
(h)
Any other eventuality/situation to be decided by the Bank.
25. The QIS/ QMS are to be submitted to the Bank within the stipulated time. Penal
interest to be charged for delayed/non submission of follow up forms as prescribed.
26. The borrower should execute necessary loan documents, as per banks guidelines
and as drafted by banks counsels at borrowers cost.
27. In case the firm commits default in the repayment of loan or in the repayment of
interest thereon or loan on due date, the bank and/or Reserve Bank of India will have
an unqualified right to disclose or publish the name of the firm and its directors as
defaulters in such manner and through such medium as the bank or Reserve Bank
of India in their absolute discretion may think fit.
28. The firm is required to give its consent for disclosure of information regarding all
credit facilities (both fund based and non-fund based) to Credit Information Bureau
(India) Ltd (CIBIL) and any other agency. The firm to undertake that they shall submit
the required information to the bank which can be disclosed to CIBIL or any other
agency so authorized which may use, process the information and data disclosed by
the bank in the manner as deemed fit. CIBIL report on promoters and firm to be
obtained and kept on record.
29. Party to ensure that all the terms and conditions are carefully read before conveying
to the borrower and also in case of any discrepancy the same should be brought to
the notice of sanctioning authority before release of facilities. The documentation will
be done only after receipt of unconditional acceptance of all terms and conditions in
writing from the party.

Credit Manager

Senior Manager

Chief Manager