ANNEXURE: “1”EXECUTIVE SUMMARY

(All the figures reported in the proposal are in Rs. Crores, unless specified otherwise)

Circle/SBU:changed Branch :changeda) Borrower’s ProfileName :Promoters detailsS.No. Name Designation Identifiers Full Address

DIN PAN Passport Others

12345

Segment: (C&I/MSME/AGL)

Constitution (Prop./Partnership/Limited Partnership/Corp. Entity – Pvt Ltd/ Ltd – Listed/ Unlisted)

Location:(R/SU/U/M/FO)

Activity: (Mfg./ Trading/ Services/ NBFC/ Others)

Industry

Location (Regd/ Corporate office only) :Main Production Centres:

Promoters’ shareholding %:Market Cap: 52 Week H/L: Group to which company belongs: Group connections : Yes /

NoWhether name of Promoters/ Directors/ Company/ Group concerns figures in RBI Defauters list/ ECGC Caution List/ CICs/ Suit filed list

Yes/ No

Date of incorporation Date of Commencement of Operations - (only for units having connection with us for less than 3 years)

New unit/Existing unit Existing Connection Yes / No

If yes Banking with us sinceDate of last Renewal/ Review: (*)If Reviewed valid upto : IRAC Status of 1.Advances : 2. Investments :

Banking arrangement : Sole Banking/ Consortium/ MBA/ Syndication

If Take over, whether all norms complied with : Yes / No

1

Exposure Company GroupExisting Proposed Existing Proposed

Fund BasedNon Fund BasedTotal IndebtednessinvestmentsLeasingTotal ExposureBank’s Share++ (%) Bank’s Share in TL++ (%)( * ) In case of review – date up to which reviewed to be mentioned(++) In case of Consortium/ Multiple Banking/ Syndication arrangement indicate quantum and %age(Details in Section-A1-c)

b) Proposal: For sanction / approval / confirmation :

i) Sanction

a) b)c)

ii) Approval a)b)c)

iii) Confirmation

a)b)c)

c) RMD ADVISORIES and RATINGS:

i) RMD Guidance Note ii) Qualitative approachiii) Quantitative

approachiv) Comments

CRA Rating/ Score Current: Previous:CRA Financial Score Current: Previous: ECRA Long term rating: Valid upto:

Short term rating: Valid upto:

2

d) Indebtedness / Exposure & Capital Charge: Indebtedness Date of

Sanction/

Renewal

Existing Limits

O/S Proposed Limits

Change in Limits

Residual

Tenor

Secured/ Unsecure

d

Working CapitalTerm LoanAd-hoc, if anyTotal Fund based (A)Letters of CreditCapex – LCsBank GuaranteeAd-hoc, if anyDerivatives/ CELTotal Non fund based (B)TOTAL Indebtedness (A) + (B)Investment (C)Leasing (D)TOTAL (Exposure)E (A+B+C +D)Financial / cash collateral (as per Basel norms) FEffective Exposure(E-F)Capital charge

Estimated (Last Year)

Actual (Last Year)

Estimated (Current year)

Net Interest Income

Fee Income

Return on Capital Charged

e) Performance and Financial Indicators

As on 31/03/ Actuals Actuals (Estim.)

Estimates (Current Year)

Projections (Next Year)

Net Sales(Exports)PBTPBT/ N SalesPATCash AccrualsPBDIT

3

Interest Coverage RatioPUCTNWAdjusted TNWTOL/TNWTOL/ Adjusted TNWCurrent RatioNWCDSCRROE %

f) Proposed Pricing:ITEM Base

RateExisting Rate Card rate Proposed rate

Spread Effective Rate

Spread Effective Rate

Spread Effective Rate

Int. on WC

Int. on TL

Other incomeITEM Existing Rate Card rate Proposed rate Extent of concession (%) Processing feeCommit chargesUpfront feeLCBGOthers g) Key deviations with justification:

h) Security (including Guarantee):

Type of facilities

Security stipulated

Value of security*

Status of security creation

Guarantee details

Remarks

Existing

4

(* In case of Consortium/ MBA, %age of Security available to the Bank to be mentioned)

ii) Proposed

Type of facilities Security stipulated Value of security

Guarantee details

Net means

i) Justification for the proposal(Please provide brief particulars about the Unit, present proposal, highlights of the proposal and justification)

GENERAL MANAGER

5

S FORMAT: Section A INDEX CIRCLE/SBU: BRANCH: COMPANY:Section Contents Pages

A1 Present Proposala) Borrower’s profileb) Proposal : For Sanction/ Approval/ Confirmationc) Credit limits (existing and proposed)d) Banking Arrangement and Sharing pattern

A2 Performance Details Performance and Financial indicators Comments on Performance and Financial Indicators Movement of Long Term Funds Synopsis of Balance Sheet Comments on adverse movements, if any Activitywise Cash Flow analysis Consolidated Data and Cash flow Inter Firm comparison

A3 Risk assessment : a) Credit Rating b) External Ratingc) RMD Advisoriesd) Conduct of Accounte) Review of Term Loanf) Security Coverageg) Warning signals/unattended major irregularities in Inspection Audit/Credit Audit/Other Reportsh) Earlier Terms of Sanction & Compliance statusi) Statutory dues / other contingent liabilitiesj) Risks and mitigating factors

A4 Pricinga) Income analysis b) Other Banks’/FIs’ pricing c) Proposed pricing d) Justification

A5 Loan Policy : Deviations & Compliance: a) Whether names of promoters, directors, company, group

concerns figure in defaulters/willful defaulters list b) Deviation in Loan policy

6

c) Justifications for deviationsA6 Synoptic Appraisal Memorandum for Term Loan (where applicable)A7 a) Justification for the Proposal

b) Recommendations :A8 Profile of the borrower and Industry

a) Address and Location of the company. b) Names and Addresses of the promoters/ directors. c) Details of share-holding pattern of promoters/ directors. d) Credit History e) Brief background of the company/ group and management. f) Brief write up on the industry / sector and the company’ s standing

B-1 Appraisal memorandum for Term LoanB-2 Appraisal memorandum for Working CapitalC Terms and Conditions

Annex-1 Future Plans and Business potential.Annex-2 Assessment of Credit Exposure Limit (FC)Annex-3 Earnings.Annex-4 Details of due diligenceAnnex-5 Details of Group Associate entities/ Concerns Annex-6 Conduct of various facilities

7

a) List of abbreviations used

8

SECTION A1

Present Proposal:

Circle/SBU: Branch :a) Borrower’s ProfileName :Segment: (C&I/MSME/AGL)

Constitution (Prop./Partnership/Limited Partnership/Corp. Entity – Pvt Ltd/ Ltd – Listed/ Unlisted)

Location:(R/SU/U/M/FO)

New unit/Existing unit Existing Connection Yes / No

If yes Banking with us since

Date of last Renewal/ Review: (*)If Reviewed valid upto : IRAC Status of 1.Advances : 2. Investments :

b) Proposal: For sanction / approval / confirmation :

i) Sanction

a) b)c)

ii) Approval a)b)c)

iii) a)

9

Confirmation

b)c)

This proposal falls within the powers of ………………..as (i) FB/NFB/Total indebtedness is Rs. (Corporate / Non Corporate) (ii) Involves policy level deviations: If yes, Indicate policy level deviations (only major deviations):(iii) _________________ is a director in ________________ Bank.

c i) Credit Limits (Existing and Proposed) : Existing Proposed Change Limits SBI % Total Cons/

MBA/Syndication

SBI %Total Cons/MBA/Syndication

SBI Total Cons /MBA/Syndication

CC/WCDL/BDEPC/FBDTotal FBWCTLs/ECBs/FCLAd-hoc, if anyTotal FB (a)NFBWC LCNFBWC BGTotal NFBWC (b)Derivative/FC/CEL (c )Project related LCProject related BGProject NFB (d)Ad-hoc, if any (e)Total NFB (b)+(c)+(d) + (e)= fTotal Indebtedness (a)+(f) = gInvestments (h)

Leasing (i)

Total Exposure(g) + (h) + (i)

c ii) Credit Limits (Company and Group)

Exposure Company GroupExisting Proposed Existing Proposed

Fund Based

10

Non Fund BasedTotal IndebtednessinvestmentsLeasingTotal ExposureBank’s Share++ (%) Bank’s Share in TL++ (%)

d. Banking Arrangement and Sharing Pattern:

Financial Arrangement: Sole Banking/Consortium/ Multiple Banking/ SyndicationLead Bank:

FB NFB Total % ShareTL WC

SBIAssociate BanksSBI GroupOther Banks (Total)Top five banks in terms of their ExposureBank ABank B....

Total

11

SECTION A2 PERFORMANCE DETAILS

a) Performance and financial indicators:Last two years actuals Current

yearNext year Q/HY results as on

Audited (Estimates)@

Audited (Estimates)@

Estimates Projections

LastYear

Current Year

Gross Sales (value) Net Sales( Exports)

Net Sales ( value) PAT(Exports)

Net Sales (Quantity) b. Industry Exposure as on(Exports) FBLRaw Materials NFBLPower and Fuel Total Direct labourSG & A costs Exposure of the

company as per prudential exposure norms

%

Interest To Industry exposure

Operating Profit(OP) after interest

To total advances (domestic)

OPM% ( OP/ NS%)PBTPBT / Net Sales%PATCash AccrualsPBDIT Interest Coverage Ratio *PUCTNWAdj. TNWTOL/TNWTOL / Adj.TNW Current Ratio

12

NWCDSCRROE%

@ figures in brackets denote estimates at the time of last renewal * Interest Coverage ratio: Calculation method EBITDA / Interest.

b) Comments on Performance & Financial Indicators - (Comments only on adverse movements in the above):

i). Net Sales

ii). Profitability (PBT / NS):

iii). TNW: (Past three years)

Opening TNW ( excluding SAM $ ) Share Application Money $Add PATAdd. (a) Increase in equity (b) Increase in share premiumAdd./Subtract change in intangible assetsAdjust prior year expensesDeduct Dividend Payment Add / Subtract : DTL / DTAClosing TNWInvestments in Associates/ Subsidiaries(A & S)Long Term Loans to A & S Adjusted TNW$ SAM be converted to equity by next Balance sheet date.

Comments:

iv). TOL / TNW:

13

v). TOL / Adj. TNW:

vi). CURRENT RATIO & NWC:

c) MOVEMENT OF LONG TERM FUNDS:

FUNDS FLOW Actuals(PY-2)

Estimated(PY-1)

Actuals(PY-1)

Estimated(Current

Yr)

Projected(Next Yr)

Long Term Sources a) Cash Accruals b) Equity Funds

c) Loans

d) OthersLong Term Uses a) CAPEX

b)OthersLong term Surplus / Deficit

Comments:

d) Synopsis of Balance Sheet:LIABILITIES Previous year Last year CURRENT LIABILITIESShort Term Bank Finance (A) Other Current Liabilities ( B) ( Total of i, ii, iii & iv )i. Sundry Creditorsii.Advance Payments receivediii. TL inst. Repayable in 12 months ( incl FCCB)iv. OthersTOTAL CURRENT LIABILITIES (C) (A+B) v. Term Loans - SBI (> 12 months) vi. Term Loans – Others (> 12 months) vii. Debentures, Redeemable Pref. Shares (< 12 years), FCCB etcviii. Unsecured Loans ix. Other Term LiabilitiesTOTAL TERM LIABILITIES (D)( Total of v to ix )

14

TOTAL OUTSIDE LIABILITIES (E)( TOL = C+D) x. PUCxi. Reserves & Surplus( Other than revaluation reserves )xii Share Application Moneyxiii. DTLNet Worth ( NW ) (F)Total of x, xi, xii and xiii TOTAL LIABILITIES (G) (E + F )

ASSETS Previous year Last year CURRENT ASSETS a) Cash & Bank Balancesb) LC/BG Margins & liquid investmentsc) Receivables( < 6 Months)d) Investments (Other than long term)e) Total inventoryf) i) Other current Assets- Dues from

Associates /Subsidiariesii) Other Curent Assets- Others

TOTAL CURRENT ASSETS (A)FIXED ASSETS Gross BlockLess Cum DepreciationNet Block (excluding revaluation reserves) (B)Investment in Associates, Subsidiaries, sister concerns etc Other investmentsReceivables > 6 monthsOthers Non Current Assets (C) Total Tangible Assets A+B+C = (D)DTAOther Intangible AssetsIntangible Assets, including DTA (E)Total Assets (D+E)

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

capital structure.ii) Comments on Short Term

borrowings, if not commensurate with increase in value of inventory & receivables.

iii) Movement of Unsecured Loans

15

(quasi equity)iv) Change in investments in Group

companies / othersv) Comments on Sundry Debtors

beyond 6 months - present positionvi) Loans and advances to group

companies.viii) Others, if any

f) ACTIVITY-WISE CASH FLOW ANALYSIS: (Brief observations on whether operating activities are the principal revenue producing activities of the enterprise; extent of cash flow from investing activities and financing activities may be given) [Refer CPPD Circular No. CPP/CIR/CSK/30 dt. 07.07.2011 on Credit Assessment: Cash Flow Statement (CFS)]

CASH FLOW Actuals(PY-2)

Actuals(PY-1)

Estimated(Current

Yr)

Remarks

a. Net cash from Operationsb. Net cash from Investmentsc. Net cash from financingd. Net increase in cash/ cash equivalent

g) Consolidated Data* i) Key Financial Indicators

Previous Year Last yearNet SalesPBTPATCash AccrualsPUCTNWTOL/TNWTOL/Adj TNW* For borrowers with annual turnover of Rs 500 crores and above, consolidated data for past two years to be provided in full, on the lines of item 2A- a), d) and f), instead of g) .

ii) Consolidated Cash FlowConsolidated Cash Flow

(Activity wise) Previous Year Last Year a. Net cash from Operationsb. Net cash from Investments

16

c. Net cash from financingd. Net increase in cash/ cash equivalent

h) Inter-firm Comparison:

i) Finance related:

S.

No.

Name of Co. FB Lts$ NFB Lts$

Year Sales CR Cash Cycle

Net Profit

PBT/ Net Sales

TOL/

TNW

($ wherever available either from our own data or external source)

ii) Market related:

S.

No.

Name of Co. PE Market Cap

Share Price* (@) EPS of Last Year

H L C

(* for listed companies)@ 52 weeks’ High Low; face value to be mentioned, if not Rs 10.

Comments:

17

RISK ASSESMENT SECTION A3 a) Credit Rating

Current Previous

CRA based on balance Sheet as onValidated on Borrower rating Facility rating

Current Previous Facilities Current PreviousCRA - RatingOverall ScoreFinancial Score/ Minimum Score Comments on change(s) in CRA rating/ Model

b) External RatingRating Agency : Rating Obtained:

(Previous Rating)Date and Amount of Rating :

Rating valid upto:

Rating Rationale in brief:

c) RMD ADVISORIES:

i) RMD Guidance Note ii) Qualitative approachiii) Quantitative

approachiv) Comments

d) i) Conduct of Account:(to comment briefly on irregularities in the accounts in the past 12 months – no. of times irregular & time taken for adjustment of peak irregularity. Details in Annexure-6)ii) Utilization of limits:

Utilisation of limits: CommentsFB Limits Average

utilisation %

18

NFB Limits

Average utilization %

Review of Cash Credit Account for previous year:Rs in crores Comments

(i)Total debit summations (ii)Total credit summations% of (ii) to total sales.Comments (if the utilization is less than 60%)

e) Review of Term Loans (Term Loans with all Banks/FIs to be mentioned):Name of the FI/Bank

Limit DP Outstandings as on ---------

Irregularity, if any *

DSCR FACRDate of restructures, if any.

Sanction Actuals

* Comment on reasons for over dues :i) No of instalments due: ii) No of instalments paid:iii) No of Installments in arrears: iv) Amount of interest in arrears: v) Comment on the company’s action plan for regularizing the account.

vi) Cross Defaults: If any, please specify:

f) Security Coverage : (Pl. Furnish summary position here; Full details to be furnished in Section-C)

Existing ProposedSecurity Coverage – SBI: including

residual value

Amount (%)

excluding residual

valueAmount (%)

including residual

valueAmount (%)

excluding residual valueAmount (%)

Term Loan Working Capital Comment on infirmities in security creation, if any

g) Warning signals and unattended major irregularities Report Date Warning Signal /Major Comments

19

irregularities/ Other significant observations

RFIA ReportCredit Audit Reports RBI AFI u/s 35Other Audit Reports Qualification if any, in Auditors reportStock & Receivables audit report

h) Earlier terms of Sanction - Compliance status

S.No.

Conditions/observations Covenant details/ time frame

Compliance status

a) FINANCIAL COVENANTS

A.1 Equity infusion A.2 Conversion of Share Appln money/

Unsecured loans into equity @

A.3 Dividend outflow/ Sale of Investments

A.4 TOL/TNW (Times)*A .5 TOL/ Adj TNW (Times)*A.6 Current Ratio*A.7 PBDIT/ Interest (Times)*

b) OTHERS [Observations / Conditions/ including Post Sanction modifications (if any)]

12

* Comments only when the negative variance is more than 20%.

Penal action stipulated in last sanction:

Stipulation Status of compliance

Penal action recommended, if any:

i) Statutory dues/other contingent liabilities:Dues Amount quantified Impact on financial Negative score in CRA,

20

in ABS position (as % of TNW)

if any

Statutory dues

Contingent liabilities

Comments, in brief, if the impact is significant

j) Risks and mitigating factors :

Critical risks perceived Mitigating factors

CR

A

RE

LA

TE

D

1. Financial Risks2. Business and Industry Risks3. Hurdle Rates

GR

OU

P

RE

LA

TE

D

4. Group gearing, where applicable5. Adverse features in Group Concerns/ Associate entities, interlocking of funds, if any

SU

ST

AIN

AB

ILIT

Y C

ON

CE

RN

S

6. Environmental Clearances & Sustainability measures7. Other pending approvals, if any

CO

UN

TR

Y

RIS

K

21

SECTION-A4 PRICING:a) Income Analysis:

SBIFrom Estimates

( last year)Actuals(last year)

Estimates (current year)

WC Int.TL Int.LCBGBillForexOthersTOTAL

Interest & Other Charges as per latest Balance Sheet dated * .

SBI ShareAmount Percentage

Interest

Other Charges

* If share not pro -rata then reasons for the same

Estimated (Previous Year)

Actual (Previous Year)

Estimated (Current year)

Return on Capital ChargedComments

b) Other Banks’/FIs’ Pricing Name of the Bank Existing Proposed

Term LoanWorking Capital

c) Proposed Pricing:ITEM Base

RateExisting Rate Card rate Proposed rate

Spread Effective Rate

Spread Effective Rate

Spread Effective Rate

Int. on WCInt. on TL

d) Other concessions already extended / proposed: Other incomeITEM Existing Rate Card rate Proposed rate Extent of concession (%) Processing feeCommit chargesUpfront feeLCBG

Justification with cost benefit analysis

22

SECTION A5LOAN POLICY: DEVIATIONS AND COMPLIANCE:a) Whether names of promoters, directors, company, group concerns figure in defaulter/willful defaulters list:Wilful defaulters’ list dated : : Yes/NoRBI defaulters’ list dated : : Yes/No Name of the director Default in connection with

(Name of the company)Remarks

Name of the director Default in connection with:(Name of the company

Remarks

ECGC caution list dt.CIC – Credit HistoryCICs - Suit filed list Banned list of Promoters (SEBI) (CIC: Credit Information Companies)

b) Deviations in Loan Policy: Parameters Indicative Min/Max level

as per Loan policy Company's level as on

Justifications

a) Prudential norms - Borrowerb) Prudential norms - Groupc) FB exposure to the industryd) Substantial exposure: Borrower e) Substantial exposure : Groupf) Term Loan -Tenorg) CRA Minimum Scoreh) Hurdle ratei) TOL/TNWj) Liquidityk) Debt / equityl) Promoters contribution m) Average gross DSCR (TL)n)Non compliance of norms for strategic schemes: viz. Corporate Loans, TIFS, CRE and ,others p) Others

Justification:c) Other deviations Parameters Compliance (Y/N) Deviations Justificationa. Deviations in Takeover normsb. Scheme specific deviations, if anyc. Advances to Bank's Directors and parties related to Directors*d. Advances to Officers and the Relatives of Senior Officers of SBI/other Banks* e. Advances to Directors of other Bank(s) and parties related to other Bank’s Directors* [* Refer latest RBI master Circular on Statutory and other Restrictions]

23

SECTION A6

.SYNOPTIC APPRAISAL MEMORANDUM FOR TERM LOAN:

Circle :Branch : Company :

Term Loan / DPG :

a) Proposal :

b) Project / Purpose :

i) Description:

ii) Key Project Parameters:

Project Cost Debt Equity D/E RatioPromoters’ contributionOur share in Total Debt

DebtExpsoure (%)Tenor of the loan (moratorium to be specified)Average Tenor

Gross avg DSCR Min. Security MarginDetails of sponsor, having major Stake in the SPV

(a)Name (b) equity stake

(c) Credit Enhancement Mechanism(Available/ not available)

(Details to be furnished here if available)

c) Appraised by :

d) Details of TEV Study (if proposed for waiver, justifications to be given):

i) Name of the Agency:

ii) Gist of major findings:

24

e) Cost of Project, Means of finance and Key Project Parameters:

Cost Means of FinanceLand .

Building

P & M A. Equity: Promoter (a)

Others (b)

Total (c=a+b)

Other assets i) Equity SharesPrel. and Pre-op. expenses

ii) Pref. Shares

IDC @ iii) Internal Accruals*

Contingencies Total equity contribution (i+ii+iii)

(A)

WC Margin B. Debt

i) RTL

(ii) ECB

(iii) Debentures (iv)Unsecured loans (v) Others, if any Total Debt (i+ii+iii+iv+v) (B)

Total Total (A+B)

[@ IDC – interest during construction, as a component of preliminary & pre- operative expenses

Debt: Equity: (B/A)

Promoter’s contribution: a/A %a) Sources of Promoter’s funds to be specified, e.g details of assets, investments

to be liquidated; in case of Investments from Associates - their Cash Accruals to be examined over the project implementation period with reference to past performance, current trends, debt servicing requirements/ CAPEX, cash flow comfort and other requirements

b) Internal accruals: Details relating to availability/ adequacy of surplus to be commented upon )

f) Remarks on Cost of project & Means of finance* (in brief):* to include analysis of Group equity plans for the projects, projected cash flows & leverage

g) Overall viability and acceptability of the proposal :

25

Section A7a) Justification for the proposal: (Only bullet points) (Other than those covered in section A4,A5,A6, B-1 and B-2)

a.) Working Capital Sl No Particulars Last Sanction Current year Projections for

following year EstimatedActual

1 Net sales 2 Inventory/NetSales

+ Receivables/ Gross Sales (days)

3 Net Sales to Total tangible Assets

4 ABF/ TCA5 S Cr/ TCA6 OCL/ TCA7 NWC/ TCA8 FB WC9 NFB WCBrief Comments:

b.) Other sanctions:

c.) Approvals:

d.) Confirmation

b) Recommended for sanction / approval / confirmation.

Appraised by Assessed by Additional Assessment by

SignatureNameDesignation Credit Analyst Team Leader Deputy General

ManagerPlace :Date:

26

SECTION A8PROFILE OF THE BORROWER CIF No, Addresses & Locations of the company :CIF No(s) Registered Office (Full Address)Administrative Office (Full Address)Factories/ Production Centres (Full Addresses)

1.

2.3.

Names & Addresses of the Promoters / Directors :S.No. Name Designation Identifiers Full Address

DIN PAN Passport Others

12345

[* Identifiers based on KYC guidelines] i) Details of Share-holding pattern of Promoter Directors :

S.No. Name of the Promoter / Director

No. of Shares held

Value of Shares held

% of share holding

1234

ii) Shareholding Pattern as on ………………….Description % of HoldingPromotersPvt. Corporate BodiesIndian PublicNRI/OCBMutual FundsBanks / Financial InstitutionsForeign Institutional InvestorsOthersTotal 100

iii. Comment on change in shareholding pattern, if any, subsequent to previous sanction:

Credit History (with our Bank):

27

(Last 5 years for MCG and others and last 3 years for CAG)i.YearDate of

SanctionExisting Sanctioned Net Sales

(only for the relevant period)

CRA

FB NFB FB NFB

WC TL WC TL

( All credit sanctions including ad-hoc sanctions to be captured)

ii.Particulars Notional Loss CommentsLoss/Notional loss/ Haircut suffered by the Bank on account of Writeoff/ Compromise settlements/ References to CDR in respect of previous exposures on Companies floated by Related parties, Groups, Associates and Directors (Please quantify). Specific comments on ‘Right to recompense’ clauses needs to be commented upon

Brief Background of the company / Group & Management (To include competence / reputation/ corporate governance etc;):

Brief write up on the Industry/ Sector and the Company’s standing (Comments on domestic/ international standing, market share, business strategies, competitive advantage etc. The para to conclude with the outlook for the unit )

28

Section B-1

APPRAISAL MEMORANDUM FOR TERM LOAN:

Circle :Branch : Company :

Term Loan / DPG :

a) Proposal :

b) Project / Purpose :

i) Description:

ii) Key Project Parameters:

Project Cost LC sub-limit within DebtDebt Bank GuaranteeEquity Our share in DebtD/E Ratio Our share in LCTenor of the loan Our share in BGGross avg DSCR Derivative LimitMin. Security Margin Our Share in Total exposure

Promoter’s contributionDetails of sponsor, having major Stake in the SPV

(a) Name

(b) equity stake

(c) Credit Enhancement Mechanism(Available/ not available)

c) Appraised by :

d) Details of TEV Study (if proposed for waiver, justifications to be given):

i) Name of the Agency:

ii) Gist of major findings:

29

e) Cost of Project, Means of finance and Key Project Parameters:

Cost Means of Finance

Land .

Building

P & M A. Equity: Promoter (a)

Others (b)

Total (c )

Other assets i) Equity Shares

Prel. and Pre-op. expenses

ii) Pref. Shares

IDC @ iii) Internal Accruals

Contingencies Total equity contribution (i+ii+iii)

(A)

WC Margin B. Debt

i) RTL

(ii) ECB

(iii) Debentures

(iv)Unsecured loans

(v) Others, if any

Total Debt (B)

Total Total (A+B)

Debt:equity : B/APromoter’s contribution: a/A %

f) Remarks on Cost of Project ( CoP) & Means of Finance ( MoF) (in brief):(comments on MoF to also include promoter Group’s equity commitments during project implementation period in the context of Group’s projected free cash flows & leverage over the period;)

30

Project implementation & disbursement schedule :

1 Deal Diagram:(Applicable for projects with Project cost > Rs.500 crore or Bank exposure > Rs.100 crore)

2 Location :

3 Land:

4 Production Factors / Technical Aspects:

5. Lender’s Independent engineer/ Insurance consultant/ Legal Consultant

6. Marketing & Selling Arrangements:

7. Any Other Factors:

8. Utilities:

9. Approvals and Clearances:

Sl.No Approvals required * Authority to accord approval viz., Forest Department, MoES, PCB, etc.,

Present status

* Based on Bank’s Panel Engineer’s /CA/ TEV Report.

Implementation Schedule:

Status of implementation & disbursement schedule :

31

i) a) Commercial viability (company as a whole): ( not applicable for SPVs)

PY 2 AUD PY 1 AUD CY FYNet salesOPPBTPATCash AccrualsPBDIT

Year 20.. 20.. 20.. 20.. 20.. 20.. 20..Capacity utilization %SalesNet Profit

Cash AccrualsInterest

TOTALTL / DPG repayments

Existing LoanProposed Loans

InterestTOTALGross DSCRAverage Gross DSCR Net DSCR(Cash accruals utilized for the project, if any, to be factored in DSCR for the

corresponding financial year)

Any measures being taken to ring fence the project from the company: ( in case of proposals from PF - SBU, wherever warranted)

Comments on DSCR (in brief):b) Commercial viability (Current project):

Year 20.. 20.. 20.. 20.. 20.. 20.. 20..Capacity utilization %SalesNet Profit

Cash AccrualsInterest

TOTALTL / DPG repayments

Existing LoanProposed Loans

InterestTOTALGross DSCRAverage Gross DSCR Net DSCR

32

Comments on DSCR (in brief):

(c ) TRA arrangement : ( to comment on treatment to cash flows of the project - whether separate TRAwould be established etc;)

j) Repayment Schedule and DSRA (DSRA: Applicable for projects with Project cost > Rs.500 crore or Bank

exposure > Rs.100 crore)

k) Security Margin:

Particulars Last Year

The Current Year

WDV of fixed assetsAgg. TL / DPG outstdg.Security margin available% of margin

Minimum Security Margin:

Comments on security margin: (Mitigations in case of low levels of minimum security margin or DSCR)

l) Break-even analysis and whether acceptable:

m) Sensitivity Analysis and whether acceptable:

n) Project Risk Allocation Matrix:

o) Overall viability and acceptability of the proposal :

33

SECTION B-2Assessment of WC facilities: (If the assessment of the WC limits is based on any other parameters, like Cash Budget method, Nayak Committee- Turnover Method, please specify them along with an explanation)

g) Inventory & receivable levels : Amount) ( Days)

Inventory/Payments Estimates Actuals Estimated ProjectedRaw material-Imported Amount Days-Domestic Amount DaysSIP Amount DaysFG Amount DaysReceivables Amount DaysS Creditors - Import Amount Days - Domestic Amount DaysOther Current Assets Amount

h) Assessed Bank Finance:

Assessed Bank Finance Estimated Actuals Estimated ProjectedYear TCAOCL WC GapNWCBFNWC/TCA (%)BF/TCA (%)OCL/TCA (%)OCA/TCA (%) LC/SC(%)

34

i) Assessment of EPC / FBD limits :

Sl. No. AS ON 31st MARCH ACTUAL ESTIMATE PROJECTIONA EPCA1 Annual Export SalesA2 Exports Per monthA3 Average RM holding (in months)A4 Average processing period (in

months)A5 Total requirement [A2 x(A3+A4)]

Less : MarginA6 EPC Limit RecommendedB PSCB1 Average export receivables (in

months)B2 PSC required (A2 *B1)B3 FBD Limit RecommendedC Total export finance required

(A6+B3).

j) Computation of LC limits for WC:

Foreign LCs Domestic LCs Total LCsTotal Purchases of RM (Esti/Proj)Procurement out of LC (%)Monthly RM purchases out of LC*a) Usance (average)b) Lead time (average)Total Time (a + b)LC Limit requiredRecommended LC limit Documentary : Non Documentary :

Margin (Existing / Proposed):

Usance / Sundry Creditors :

*In case of foreign LCs, purchases should be net of duties.Comments on mismatch, if any, between Usance available & Sundry

Creditors :

35

k) Assessment of BG limit:

Outstanding BGs as on ……..Add: BGs required during the period ..……..Less : Estimated maturity/cancellation of BGs during the period …………Requirements of BGs Recommended BG limit Financial : Performance :Margin (Existing / Proposed):(In case of EPC Contractors/ Construction industry detailed assessment in respect of Guarantees issued for Bid bond, Mobilization, Performance, Retention, Other BGs be provided)

Assessment of BG limits for EPC contractors/ Construction Industry

(In case of EPC Contractors/ Construction industry detailed assessment in respect of Guarantees issued for Bid bond, Mobilization, Performance, Retention, Other BGs be provided)

1 Total Value of tenders participated at any point of time – Next 12 months (A)

2 Success/ Strike rate @ _m % (B) (B) = A * m%

3 Bid Bonds @ _ n % on value of the tenders participated – calculated on the assumption that the EMD BGs are rotated once in p months. [C = A * n% * p/12 ] (C) [ A=Total Value of Bid bonds, p = no of months]

4 Performance Guarantees @ q % of item 2 (D)[D= B * q% * nn/12 ][where nn = no of months]

5 Mobilisation advance guarantees @ r % of item 2 (E)[E= B * r% * nn/12 ][where nn = no of months]

6 Retention money guarantees @ _s % on completion of works for next t months (S) [ B* s%* nn/12] [where nn = no of months]

7 Requirement of Guarantees for miscellaneous purposes

8 Guarantees required for new & existing projects (3+4+5+6+7)

9 Add: Outstanding Bank Guarantees as on .

Total Bank Guarantees (8+9)

9 Less: Bank Guarantees expiring during next months including return of bid bonds Bank Guarantees required

Recommended

36

Comments on mismatch, if any, between Mobilization BGs given and Advance payment Outstanding

l) Assessment of Credit Exposure Limit (Forward Contract Limit):As per Annexure-2.

Forward Contract/Derivative limits Exports Imports Total LimitI Past Performance (Revenue)*II Documentary EvidenceII.(a) Exchange Rate Contracts

DE -RevenueII.(b) Exchange Rate Contracts

DE - OthersIII. Interest Rate Contracts

(Liabilities)iv. Sub- Total {[( I or II (a)] +II (b)+III}v) Negative MTM for existing deals TOTAL LIMITS (iv+v)

g. Efficiency ratios :

Particulars Aud Aud (Est)

Esti Proj

Net sales to Total Tangible Assets (times)PBT to Total Tangible Assets (%)Operating cost to Sales (%)Bank Finance to Current Assets (%)

(Inventory / Net Sales) + (Receivables / Gross Sales) (days) Interest / cost of salesBF/Gross Sales Brief comments and justification on the assessment of the above FB and NFB limits:

37

SECTION CStandard Terms & Conditions:

CIRCLE :

COMPANY :

SECURITY :

a. PrimaryFacility Details of

Security*Type of Charge

Value** Date of valuation

Basis of valuation

*To include detail like Khata no./ Survey No./ Patrta No.etc, Flat no, House no, Area/extent of land, address. ** In case of Consortium/ MBA Accounts our share to be provided. Details of Total Security for the facility and for the Banking System may be shown in brackets b. CollateralFacility Details of

Security*Owned by Type of

ChargeValue** Date of

valuation Basis of valuation

* To include detail like Khata no./ Survey No./ Patrta No.etc, Flat no, House no, Area/extent of land, address. In case of Agri land time line for conversion. ** In case of Consortium/ MBA Accounts our share to be provided. Details of Total Security for the facility and for the Banking System may be shown in brackets

c. Guarantees:Facility Name Net Means As on Compiled on

i. In case of Corporate guarantee(s) - brief profile and financials of the company extending the guarantees executed by the entity on behalf of the associate concerns to be given.

ii. In case of personal guarantees, net worth to be furnished

d. Security Coverage:38

Existing Proposed

Security Coverage – SBI:

including residual value(%)

excluding residual value(%)

including residual value(%)

excluding residual value(%)

Term Loan (%)

Working Capital (%)

Comment on infirmities in security creation, if any

i. Please indicate time frame allowed for security creation:

ii. Deviation from existing security (if any) to be mentioned in the proposal.

Justification of deviation to be furnished in Section A7

e. ECGC COVER:

Pre-shipment Credit Guarantee (Yes / No)

Post-shipment Credit Guarantee (Yes / No)

SCR Policy with buyer wise Limit (Yes / No)

f. MARGINS : (For Each Facility as Applicable)

Cash Credit: Existing Proposed

RM: Domestic

RM: Imported

SIPFGReceivables (Cover ---days)Letter of CreditBGTL / DPGProject LCJustification for deviation from existing margins, if any to be provided in Section A 7 above.

g. INSURANCE:

39

h. INSPECTION:

i. Rate of Interest

j. Processing Fee/ Upfront Fee

k. Repayment Schedule

l. OTHER CRITICAL COVENANTS:

m. MODIFICATIONS, IF ANY, REQUIRED FROM STANDARD COVENANTS (detailed in Circular CPP/RSN/CIR/50 dated 26.09.2006), ALL OTHER COVENANTS WILL APPLY :

Justification of deviation to be furnished under section A7

40

ANNEXURE - 1 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

Corporate Salary Package P Segment Loans (Nos) (a) Housing (b) Auto Loans (c) Personal Loans SBI Credit Card (No.) Point of Sale Terminals SBI Corporate Card (No.) SBI Life Business : (Premium ) a) Corporate Business b) Retail Business SBI General Insurance (Premium- Rs. In

crores) SBI Mutual Funds (Gross investment – Rs.

crores) SBI Capital Markets Ltd

iii. (a)Project Advisory & Loan Syndicationiv. (b) M & Av. (c ) Private Equityvi. (d)IPO/FPOvii. (e) Others (if any)

(Potential Ticket size & when expected may be furnished against each applicable item) SBI Vishwayatra Foreign Travel Yatra

Cards (In USD) Vendor/ Dealer Finance Any Other (Please specify)

* If no, please advise efforts made and outcome thereof

41

ANNEXURE – 2

ASSESSMENT OF CREDIT EXPOSURE LIMIT (FORWARD CONTRACT / DERIVATIVE LIMIT)

I: Past Performance MethodNote: Only revenue exposures for the year are considered under this component (Rs. in Crs)Year Exports T/O Imports T/OPr Year-2 Pr Year-1 Pr Year Total T/O (3 years)Average T/O (3 Years)Eligible NotionalNote: Eligible Notional is higher of the average of previous 3 years T/O or previous year's T/O.Applicable CCF=2% (< 1 Year)

Purchase Limits (PFE) Sales Limits (PFE)

PFE on Eligible NotionalNote: PFE on eligible notional is the Limit. Separate sub-limits for Sales and Purchases are to be assessed.CEL under PP component A

II: Documentary Evidence MethodEligible Notional based on various contracts and obligations on hand. (Revenue contracts both short and long term, repayments, other inflows or outflows).Exchange Rate Contracts TenorEligible Notional (actual) <1 year >1 year <=5 years > 5 yearsII.a)Exchange Rate Contracts Revenue (current year) NA NAApplicable CCF 2% NA NACEL under DE ( revenue cur.yr) BNote: Higher of the A or B is added to the other components of exposures and limits

Higher of A or B

42

II. b)Exchange Rate Contracts DE Others (Repayment /Revenue other than II (a) & others) Tenor <1 year >1 year <= 5 years > 5 yearsAmountApplicable CCF 2% 10% 15%PFE

i ii iii

II (b). DE Others (i+ii+iii) CTotal Exchange Rate Contracts (higher of (A or B) +C) (1)Notes: Eligible Notional arrived at on aggregate repayments / receipts for the relevant years basis. Notes: Receipts out of long term revenue contracts for first year are considered only under DE eligibility

III. Interest Rate Contracts TenorEligible Notional (actual) <1 year >1 year <=5 years > 5 yearsAmount (ECB etc.)

Applicable CCF ( max period) 0.50% 1.00% 3.00%PFE on eligible notional

i ii iiiTotal CEL IR Contracts (i+ii+iii) (2)Add Negative MTM of existing contracts (3)Total Forward/Derivative Limits (1) + (2) + (3) (4)SummaryForward Contract/Derivative limits

Exports Imports Total Limit

I Past Performance ( Revenue)*

II Documentary EvidenceII.(a) Exchange Rate Contracts( Revenue)*II.(b) Exchange Rate Contracts(DE Others)III Interest Rate Contracts (Liabilities)IV. Sub Total {[( I or II (a)] +II (b)+III}V. Negative MTM of existing contractsTOTAL (IV + V)

Terms and conditions as per Circular No. …………. Dated …………………………….

43

ANNEXURE – 3EARNINGS & ROCC:

Net Interest Margin:Facility Rate of Interest

Charged % (A)MRFTP

Rate % (B)Net Interest Margin %

(C = A - B)CCTL-1TL-2

External Rating:Name of the External Credit Rating AgencyCredit Rating assignedDate of RatingRating valid uptoRisk Weight applicable

Capital Charge:Facility Propose

dLimits

Effective Exposur

e (D) *

CCF (%)(E)

Risk Weight (%) (F)

Risk Weighted Exposure

(G = D*E*F)

Capital Charge (H = G *

13%)1. FBWC2. TL3. Corporate Loan4. SLC5. LC (Docum)6. LC (Non-docum)7. BG (Perform)8. BG (Financial)9. CEL

Total* After netting off financial / cash securities (as per Basel norms)

Return on Capital Charge (ROCC) :Actuals Estimates Interest Income(Last year)(P)

NII(Q = P * C/A)

Fee Income (R )

Total Income (S)

Interest Income(Next Year)(T)

NII(U = T * C/A)

Fee Income (V)

Total Income (W)

WC Int./discount TL interestLCBGForexBillsOthers

TOTALROCC(%) (Total Income *100/H)

44

ANNEXURE-4Details of Due Diligence:Date of Pre-Sanction visitPlace(s) visitedName(s) of officials, who visitedWhether papers required for KYC obtained (PAN/Articles/Memo etc)? Yes/NoDate of Search Report obtained from ROCFormalities regarding obtention of legal opinion/valuation report completed? (Yes/No)Whether CIRs obtained from existing Bankers? (Yes / No)Other Observations, if any

Date Chart1. Nature of facility (ies) applied for:

2. Date of receipt of the proposal 3. Information sought on changes in the revised business plan4.Reply received 5.Discussions held with Company’s officials 6.Information recd7. In Principle Note submitted8. Date of receipt of complete information9. Date of submission to sanctioning authority (for sanctioning authorities up to the level of GM)10. Date of submission to CCCC if proposal is to be sanctioned by CCCC or higher authorities

Designation Date InitialsAppraisal: done by and date of completion Credit AnalystAssessment: Done by & Date of completion Team Leader/

AGM Additional Assessment: done by and date of completion

DGM/ GM

45

ANNEXURE - 5GROUP / ASSOCIATE ENTITIES/COMPANIES

1 NAME OF THE UNIT

2 NAMES OF PROMOTER DIRECTORS

3 ACTIVITY

4 ANALYSIS OF FINANCIALS AS ON A COMMON DATE

PY LYNET SALESPBTCASH ACCRUALSPUCTOL/TNWTOL/Adj TNW

5 BANKING ARRANGEMENTS

FB NFB OUR SHARE ( % )

6 NAMES OF OTHER BANKERS

7 IRAC STATUS

8 CRA / ECR

9 ANY DEALINGS WITH THE BORROWING COMPANY

10 KNOWN ADVERSE FEATURES, IF ANY

46

ANNEXURE-6CONDUCT OF VARIOUS FACILITIES*

(Last 12 months period to be covered for all facilities)(+*Applicable for Accounts with Group turnover of less than Rs 1000 crores)

(a) Cash Credit Particulars Last Financial year Current Financial year

up to previous monthCredit summation*Debit summation*Maximum outstandingMinimum outstandingAverage outstandingNo. of times and days the account was irregular

No of times

No of days No of times No of days

Reasons for the irregularity(ies)Peak irregularity in the account, if anyNo. of days taken to adjust peak irregularity

(* To be provided for accounts with exposure less than Rs. 100 crores)

(a i): Comments:

(b) Bills Facility (Amount in lacs)Particulars Last Financial year Current Financial

year up to previous month

No. of Bills purchased / discountedAmount of Bills purchased / discountedNo. of Bills returned unpaidAmount of Bills returned unpaidInterest / discount earned

(b i) Reasons for return of Bills.

(+* Since such accounts are being reviewed by GM and above under the Account plan exercise hence may lead to duplicity of work)

47

c) Letter of Credit (Amount in lacs)

Particulars Last Financial year Current Financial year up to previous month

No of LCs openedAggregate amount of LCsNo. and days amount of bills that devolved Of the above, not adjusted in 15 daysMaximum no. of days taken for regularising the accountCommission earned

d). Bank Guarantees (Amount in lacs)Particulars Last Financial year Current Financial year

up to previous monthNo. and amount of guarantees issuedNo. and amount of guarantees invoked, if anyWhether Cash Credit a/c was rendered irregular, on account of above – no. & amountMaximum no. of days takenCommission earned

48

ANNEXURE: “2”Appraisal Note Format ‘AS’

To be used as appraisal note for reviews, ad hoc limits, Corporate loans (Units with ECRA of BBB+ and above and CRA greater than SB5), interchangeability, changes in security/margin and other matters.

For Corporate loan (Units with ECRA of BBB+ and above and CRA greater than SB5), commercial viability, repayment schedule and security margin etc are to be furnished as annexure.

(All amounts are to be in crores)

1. Company Profile:Circle/SBU: Branch :a) Borrower’s ProfileName :Segment: (C&I/ MSME/AGL)

Constitution: (Prop/ Partnership/ LLP/ Corp. Entity/ Pvt Ltd./ Public Ltd- Listed/ Unlisted)

IRAC Status ofi. Advances :ii. Investments :

(For Companies):Location (Regd office only) :(Indicate R/SU/U/M)Sl No

Promoter’s name (Include names of major Corporate shareholders also)

Designation Shareholding (%)

Promoter Director(s):(mention combined shareholding %)Group to which company belongs:Industry: Activity:

(Mfg./ Trading/ Services/ NBFC/ Others)Date of incorporation: Banking with us since: Banking arrangement : Sole Banking /Consortium/ /MBAGroup connections (if any) Yes/ No

Whether name of Promoters/ Directors/ Company/ Group concerns figures in RBI Defauters list/ ECGC Caution List/ CICs/ Suit filed list

Yes/ No

Date of last Review/ Renewal:

CRA Existing: Proposed:

49

ECRA Rating: Valid upto:1. Present Proposal:

a) Proposal: For sanction / approval / confirmation :

i) Sanction

a) b)c)

ii) Approval a)b)c)

iii) Confirmation

a)b)c)

This proposal falls within the powers of ………………..as (i) FB/NFB/Total indebtedness is Rs. (Corporate / Non Corporate) (ii) Involves policy level deviations: If yes, Indicate policy level deviations (only major deviations):(iii) _________________ is a director in ________________ Bank.

3. Credit limits (Existing and proposed):EXISTING PROPOSED CHANGE

LIMITS SBI % CONS SBI % CONS SBI CONSFB…..…..Total FBWCTerm Loans/ ECBs / FCLsTOTAL FBLCsBGsDPGsTOTAL NFB FB+NFB

4. Indebtedness / Exposure & Capital Charge:Exposure Company Group Proposed Exposure

Existing Proposed Existing Proposed Credit Conversion factor

Risk Weight

Fund BasedNon Fund BasedTotal IndebtednessinvestmentsLeasing

50

Total ExposureBank’s Share++ (%) Bank’s Share in TL++ (%)Capital charge for Total exposure :( * ) In case of review – date up to which reviewed to be mentioned(++) In case of Consortium/ Multiple Banking/ Syndication arrangement indicate quantum and %age

5. Banking Arrangement and Sharing Pattern:

Financial Arrangement: Sole Banking/Consortium/ Multiple Banking Lead Bank:

TL FBWC NFB Total % ShareSBIAss.Bks.SBI GroupOther Banks Total)Top five Banks in terms of their ExposureBank ABank BBank C

Total

6. Performance and Financial IndicatorsAs on 31/03 Actuals Actuals

(Estim.)Estimates

(Current Year)Projections (Next

Year)Net Sales(Exports)PBTPBT/ N SalesPATCash AccrualsPBDITPUCTNWAdjusted TNWTOL/TNWTOL/ Adjusted TNWCurrent RatioNWCDSCRROE (%)

51

7. Synopsis of Balance Sheet :

LIABILITIES Previous year Last year CURRENT LIABILITIESShort Term Bank Finance (A) Other Current Liabilities ( B) ( Total of i, ii, iii & iv )i. Sundry Creditorsii.Advance Payments receivediii. TL inst. Repayable in 12 months ( incl FCCB)iv. OthersTOTAL CURRENT LIABILITIES (C) (A+B) v. Term Loans - SBI vi. Term Loans - Others vii. Debentures, Redeemable Pref. Shares (< 12 years), FCCB etcviii. Unsecured Loans ix. Other Term LiabilitiesTOTAL TERM LIABILITIES (D)( Total of v to ix ) TOTAL OUTSIDE LIABILITIES (E)( TOL = C+D) x. PUCxi. Reserves & Surplus( Other than revaluation reserves )xii Share Application Moneyxiii. DTLNet Worth ( NW ) (F)Total of x, xi, xii and xiii TOTAL LIABILITIES (G) (E + F )

ASSETS Previous year Last year CURRENT ASSETS i) Cash & Bank Balancesii) LC/BG Margins & liquid investmentsiii) Receivables( < 6 Months)iv) Investments (Other than long term)v) Total inventoryvi) i) Other current Assets- Dues from

Associates /Subsidiariesii) Other Curent Assets- Others

TOTAL CURRENT ASSETS (A)( Total of i, ii, iii & iv )FIXED ASSETS Gross Block Less Cum DepreciationNet Block (excluding revaluation reserves) (B)Investment in Associates, Subsidiaries, sister concerns etc

52

Other investmentsReceivables > 6 monthsOthers DTANon Current Assets (C) Total Tangible Assets A+B+C = (D)Intangible Assets, including DTA (E) Total Assets (D+E)

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

8. Consolidated Data i) Key Financial Indicators*

Previous Year Last yearNet SalesPBTPATCash AccrualsPUCTNWTOL/TNWTOL/Adj TNW* For borrowers with annual turnover of Rs 500 crores and above, consolidated data for past two years to be provided in full, on the lines of item 6 & 7 instead of 8 i) and ii)

ii) Consolidated Cash FlowConsolidated Cash Flow

(Activity wise) Previous Year Last Year a. Net cash from Operationsb. Net cash from Investmentsc. Net cash from financingd. Net increase in cash/ cash equivalent

9. 1. a) Credit Rating : Current Previous

CRA based on balance Sheet as onValidated on Borrower rating Facility rating

Current

Previous Facilities Current Previous

CRA - Rating/ ScoreFinancial Score/ Minimum Score Brief reasons for deterioration/improvement

53

in CRA

9.1 b) External Rating

Rating Agency : Rating Obtained:(Previous Rating)

Date of Rating : Rating valid upto:Rating Rationale in brief:

9.1. c) Pricing:ITEM Existing Rate Card rate Proposed rate

Link to Base Rate

Effective Rate

Link to Base Rate

Effective Rate

Link to Base Rate

Effective Rate

Int. on WCInt. on TL

Other IncomeITEM Existing Rate Card rate Proposed rateProcessing feeCommit chargesUpfront feeLCBG

9.1 d) Value of the Account: SBI

From Estimates( last year)

Actuals(last year)

Estimates (current year)

WC Int.TL Int.LCBGBillForexOthersTOTALDetails of cross selling to be furnished in Annexure - 1.

54

10. Details of Term Loans (all Term Loans with all Banks/FIs to be mentioned):Name

of FI/Ban

k

TL

Limit

Outstandings as on

date

Irregularity, if any.*

Date of Rate of

interest

FACR

AVG DSCRsanctio

nint. reset

Est. as per the sanctio

n

Actual

* Pl. offer comments, giving company’s action plans for regularization of the account / payment of overdue installments/ interest with a definite time frame.

i) No of instalments due: ii) No of instalments paid:iii) No of Installments in arrears: iv) Amount of interest in arrears: v) Comment on the company’s action plan for regularizing the account.

vi) Cross Defaults: If any, please specify:

11. Security Coverage : (Pl. furnish summary position here; Full details to be furnished in Annexure-2)

Existing ProposedValue (Rs. In cr.) Value(Rs. In cr.)

Total value of security (incl. residual value)SBI Share (value)

%ageTotal Exposure (SBI)Security Coverage – SBI:

including residual value

(%)

excluding residual

value(%)

including residual

value(%)

excluding residual value

(%)

FACR (%)Justification for change, if any, from the existing position:

12. Salient Features and Justification for the Proposal :

55

13. Non-compliances, if any (Only non compliances / irregularities, if any to be indicated along with a brief justification):

S.No. Non-compliance with regard to

Nature of non-compliance

Comments

1 Loan Policy Guidelines2 Earlier prescriptions of

Sanctioning authority3 RMD Exposure norms4 RBI Defaulters / Willful

Defaulters / CIBIL List of Defaulters / ECGC

5 Take-over norms6 Inspection / Audit

irregularities7 Scheme-specific deviations8 Environmental clearances9 Others, if any

14. Comment on the level of Statutory Dues and contingent liabilities and their impact on the financial position of the borrowing concern:

Dues Level (Rs in crores)

Impact on financial position

Negative score in CRA, if any

Statutory dues

Contingent liabilities

15. Recommended for sanction / approval / confirmation.

56

It is certified that: i) The undersigned is holdiing and has taken into consideration the certificates from Assessing Officer/ Appraising Officer/ Addl Appraising Officer ii) CRA rating has been validated by the Special Committee for independent validation iii) The proposal complies with RBI guidelines iv) All the laid down Systems and Procedures, as applicable to the proposal has been complied with by me/ us, to the best of my knowledgev) The undersigned is satisfied with the overall viability of the proposal and the recommendations made

Appraised by Assessed by Additional Assessment by

Signature

NameDesignation Credit Analyst Team Leader Deputy General

ManagerPlace :Date:

57

ANNEXURE - 1 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

a) Corporate Salary Packageb) P Segment Loans (Nos)

(a) Housing (b) Auto Loans (c) Personal Loans

c) SBI Credit Card (No.)d) Point of Sale Terminalse) SBI Corporate Card (No.)f) SBI Life Business : (Premium )

a) Corporate Business b) Retail Business

g) SBI General Insurance (Premium- Rs. In crores)

h) SBI Mutual Funds (Gross investment – Rs. crores)

i) SBI Capital Markets Ltd Project Advisory & Loan Syndication M & A Private Equity IPO/FPO Others (if any)(Potential Ticket size & when expected may be furnished against each applicable item)

j) SBI Vishwayatra Foreign Travel Yatra Cards (In USD)

k) Vendor/ Dealer Finance l) Any Other (Please specify)

* If no, please advise efforts made and outcome thereof

ANNEXURE- 2

58

SECURITY : PrimaryFacility Details of

Security*Owned by

Type of Charge

Value Date of valuation

Basis of valuation

*To include detail like khata no etc, flat no, house no, area/extent of land, address. ** In case of Consortium/ MBA Accounts our share to be provided. Details of Total Security for the facility and for the Banking System may be shown in brackets

CollateralFacility Details of

Security*Owned

byType of Charge

Value Date of valuation

Basis of valuation

*To include detail like khata no etc, flat no, house no, area/extent of land, address. In case of Agri land time line for conversion. ** In case of Consortium/ MBA Accounts our share to be provided. Details of Total Security for the facility and for the Banking System may be shown in brackets

Guarantees:Facility Name Net Means As on Compiled on

Security Coverage:Total value of security (incl. residual value)

Existing Proposed

SBI Share Value (Rs. In cr.)

Value(Rs. In cr.)

% %Total Exposure (SBI)Security Coverage – SBI:

including residual

value(%)

excluding residual

value(%)

including residual

value(%)

excluding residual

value(%)

FACR (%)

Deviation from existing security (if any) to be mentioned in the proposal.

59

ANNEXURE- “3”GUIDANCE NOTE ON PREPARATION OF S-FORMAT

(Please avoid long history or obvious information)Sl.no

Item/Heading Item Write-up to cover the following…

1 Executive Summary

All the proposals submitted to WBCC II and above to have a snapshot of the proposal in Executive Summary.Synopsis of the proposal needs to be provided in the format. Explanations need not be provided.Justifications to provide brief particulars about the Unit, highlights of the present proposal, its requirement and justifications

2 Present ProposalSection:A1

b) Sanction/ Renewal/ Review/ Approval/ Confirmation items of the agenda of the proposal should be as per the standard texts suggested vide CPP/BSG/257 dated 12th October, 2001.

c) Credit Limits are to be captured facility-wise

d) In case of MBA/Consortium arrangements, details of top 5 participating Banks and their exposures and proposed changes, if any, in the sharing pattern shall be brought out in the proposal with comments.

3 Performance Details Section A2

a) & b)

General Comments on performance should capture/

assess in essence the company’s business model Performance should be with specific focus on activity levels, PBDIT, profits and profitability ratios.

Key elements of the company’s business model that differentiates it from its peers and contribute to its success are to be commented upon.

To undertake meaningful analysis of the performance of the unit, last two years’ audited data along with estimates made at the time of last sanction/renewal need to be furnished

Sales (Pls do not repeat what is given in the table). Discuss the following –

Has the growth in the past followed the projections made for the period. Has it exceeded industry trends or otherwise – reasons for the same. Are the estimates made of the current year feasible and if so why? Order book position. Strategies for achieiving the estimated/ projected level of sales. Segmental analysis of sales. Customerwise analysis of sales – if relevant (order book position may be given in an annexure if required)

Profitability

60

On similar lines as above Liquidity

To include comment on the current ratio, debtors ageing analysis. Adverse features pointed out in the Stock and Receivables Audit. If any, and its impact on liquidity to be commented upon.

c) & e)

Remarks on movement of TNW with special focus on movement of Equity, Share Application Money, Share Premium and present status thereof to be given.

If Share Application Money has been treated as part of NW, the date of conversion of the amount in to PUC to be mentioned. If conversion is yet to take place, stipulation for conversion to be made for release of new limits. A copy of board resolution along with a copy of Form – 2 filed with ROC to be obtained.

Changes in Adj. TNW to be commented upon, in the context of last sanction stipulations and the company’s current financials.

Any changes in the capital structure, disproportionate movements in other items to be commented upon along with their impact on overall health of the company

Contingent obligations undertaken by the Unit on behalf of SPVs/ Group entities needs to be commented upon ( especially in case of High value MCG / CAG/PF SBU) Accounts

Comment on the ability of the company to raise short/ long term resources and meet its short term liquidity needs

Plans for infusion of funds, investments in fixed assets (if these have not been covered elsewhere)

Comments on diversion of funds, if any

61

d) Synopsis of the balance sheet in line with CMA data

All liabilities in the form of Instalments/ Obligations, including FCCB/ ECB, falling due in the next 12 months and hence needs to be hobnoured in the ensuing year, should be treated as an item of current liability in the CMA data.

In other words the Corporates’ ability to meet the liability from its internal cash generation and cash comfort available needs to be critically examined and suitable additional stipulations are to be incorporated in the proposal, wherever warranted.

f) Activity-wise cash flow Comment on revenue generating capacity of the

unit from the operating activity being financed, Whether the returns on the company’s investments are on anticipated lines or not needs to be examined; To assess the impact of investment activities on the company. In cases where investments are proposed by the company, the company’s cash flow statement to be put to strict scrutiny to analyse demands on the cash flow and availability of free cash flow for investment.

To assess the cash generating capacities/ profitability of various activities and their impact on the overall performance of the company.

Compare the cash movement with the transactions in the CC Account (If more accounts are involved, observations from all the accounts), check for routing of all the transactions, transactions are arising from the main activity of the unit, if the movement is on account of investments etc., whether the flow is through the Operative Unit. (Purpose is to ensure/ comment on the validity of figures in balance sheet with the actual as recorded in bank statements

Brief observations on whether operating activities are the principal revenue generating activities, adequacy of operating cash flow ratio (i.e. net operating cash flow/ current liabilities); extent of cash flow from investing activities and financing activities be given

h) Inter firm comparison is an important tool to gauge competitive advantage of the borrowing unit vis-a-vis its peers in the industry. Therefore, current data needs to be sourced from authentic sources like CRISINFAC, CMIE, CRISIL etc., relating to relevant size and activity

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of the units. Source of the information needs to be mentioned.

4 Risk Assessment Section: A 3

a)&b)

CRA & ECRA The following points need to be critically examined for ascertaining- any deterioration or major changes in CRA and

ECR ratings vis –a vis previous ratings and variance in the movement of ratings – CRA and

ECRd) Conduct of the Account

Comment briefly on irregularities in the accounts in the past 12 months – no. of times irregular & time taken for adjustment of peak irregularity

e) & f)

Review of TLs to o Comment on reasons for overdues, if any,

ando DSCR comforto Cross defaults (defaults with other member

banks /FIs) to be meaningfully commented upon.

Security coverage: Comment on dilution of security or any other weakness observed.

In case of derivative transactions (including forward contracts), the exposures are to be backed by appropriate underlying assets. (In other words, derivative transactions arising out of Working Capital needs, should be covered by securities applicable for regular working capital loans) In case of Consortium/ Multiple Banking arrangements, where there is resistance from Corporate/ Other member Banks, the transactions are to be taken with full knowledge that our exposures are Clean in nature, and be said so in the appraisal also, to bring it to the notice of the Sanctioning Authority. The attendant risk with the clean nature of advances needs to be taken note of and to be judiciously exercised.

g) Comment on Action initiated to address the warning signals/

irregularities brought out in various audit reports flagged on the borrower account in any of the audit reports and

the impact on the quality of asset and any mitigation suggested should form part of ‘Other Critical Covenants’ in Section C.

Any other critical mitigants related to monitoring of the account neds to be spelt out clearly

h) Apart from comments on the compliance status of various financial and other Covenants, comments in respect of changes in Post

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Sanction modifications (if any), and approving authority thereagainst needs to be provided. (These include changes detailed in Circular No. CPP/KKK/CIR/65 dt. 07.11.2006 and modifications in pricing)

i) & j)

Risks and mitigation factors table should capture

the risk profile and the mitigants to address the risks.

5 Pricing Section A 5

a) Return on Capital Charged and whether it is in alignmemt with the risk perceived needs to commented upon

c) Any increase or decrease in pricing compared to the previous sanction to be discussed and properly justified in comparison with the pricing offered by other banks and in terms of generation of other income

6 Loan Policy – Deviations & Compliances Section A5

a) & b)

Latest list of Defaulters/ Wilful Defaulters/ Suit filed/ Non Suit filed accounts, circulated by RBI/CIBIL/ Other CICs/ ECGC Caution list has to be referred on the borrowing unit as well as Directors and Guarantors

For all listed companies, a confirmation to the effect that SEBI website/ Orders and Ruling page has been visited and taken note of. (Adjudicatrion order and banned list under Section 11(4)b and 11B of SEBI)

c) Approvals for deviation from Loan Policy guideines wherever warranted are to be obtained from appropriate Authority and the same has to be mentioned in the proposal as well

Compliance with the laid down takeover norms, has to be ensured and approvals for deviation, if any, to be recorded in the proposal.

7 Synoptic Appraisal of Memorandum for Term LoanSection A6 and B 1

Purpose of Term Loan: to be specified: Expansion / Modernisation / Diversification / acquisition / Shoring up of NWC (Corporate Loan) / R&D expenditure / Acquisition of Machinery / Construction of Building, etc., followed by brief details thereof.

Sources of Promoter’s funds to be specified, e.g details of assets, investments to be liquidated, in case of Investments from Associates - their Cash Accruals to be examined over the project implementation period with reference to past performance and debt servicing/ CAPEX and other requirements.

Comments on Means of Finance to also include promoter Group’s equity commitments during project implementation period in the

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context of Group’s projected free cash flows & leverage over the period;

Indicative list of Approvals/ Clearances: Land/ Site availability, Environmental and CRZ clearance, NOC from PCB, Stack height clearance, Forest clearance, Power connection, Water connection, Chief Controller of Explosives from Petroleum and Explosives Safety Organisation, NOC form Defence, Rail Route Clearance, Customs landing Permit, Permission from the State Government for extraction of boulders from quarry, License from Inspector of Factories or other competent Authority for setting up Batching Plant, Permission from State Government for cutting of trees, Any other permission/ clearances required under applicable laws for the specific proposal

Comments on Term Loans to include Risk assessment in relation to:

Pre construction contract/ approval/ resettlement risks

Financing Risks, tie up Construction risk and Operational Risk Average tenor of the loan needs to be provided

Weighted Average Tenor of the loan (WAL): WAL is a useful measure in credit risk analysis, bearing in mind that the main credit risk of a loan is the risk of loss of principal. The primary reason for this is that, all else equal, a loan with a longer tenure has greater risk than its shorter-dated counterpart.

8 Justification for the proposal: Section-A7

Since justification for a few Agenda items has already been provided in Sections 5, 6, B-1 and B-2, the same need not be repeated in this section. Please ensure that there is no duplicity in this section.

9. Profile of the Borrower: Section-A8

e) At times single borrower may have more than one CIF No(s). All such CIF No(s) need to be mentioned.

Loss haircut suffered by the Bank on account of Compromise/ Writeoff/ references to CDR, including Recompense clause, in respect of exposures on Companies floated by Groups/ Asssociates/ Related parties/ Directors/ Guarantors to be commented upon

Background of the Company shall include brief information on the following aspects:

o Business of the company.o Key milestones achieved since

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incorporationo Business Segments and Product Profileo Capacities and Production facilitieso Technical Collaborationso Marketing o Group companies

Background of the Promoters and Management shall include brief information on the following aspects:o Promoters o Vision and strategy of the management.o Managerial experience to run the business /

key managers.o Management style- Family run /

professionally managed/ mix.o Management achievements and skills

(project management skills/ market share/ shareholder value/ strong marketing and production skills/operational efficiencies / decision making skills/ challenges faced and their ability to overcome them etc.).

o Key man risk and succession plan. Corporate Governance issues such as :

o In the proposals there should be a separate paragraph on corporate governance practises in the borrower company.

o The promoters have ever defaulted in the past either in this company or in any of the group companies and the reasons for the same

o their market reputationo non-compliance of any regulatory

guidelines/compliant with clause 49 of the listing norms etc.

o Details on the constitution of the company's board with particular reference to the number of independent directors (to comment on the independent nature of the board or otherwise), number of board meetings held and whether the company was involved in any unsavory incidents vis-à-vis the government/regulators/investors in the immediate past (During the period under review).

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Industry Outlook:A brief discussion covering overall future outlook for the industry taking in factors such as Demand and Supply Competition Global scenario and Government initiatives and Regulatory issues.

(lengthy write up should be avoided) on the following aspects

This is to be concluded with an overall future outlook for the industry and the unit.

10 Section B2 – Assessment of WC

The purpose of WC may be incorporated – for eg. Enhancement o/a increase in sales Enhancement o/a increase in capacity addition Enhancement o/a change in operating cycle. Enhancement o/a change in the product mix. Enhancement o/a abnormal / unprecedented

increase in prices of core raw materials / cost of production.

EPC Contract – depending on the contract period and terms of contract, need for individual BGs to be assessed.

11 Terms and conditionsSection C

All columns / Paragraphs to be specifically commented, else, to be mentioned as Not applicable. Vague T&C like “As per extant guidelines” to be avoided. For eg. Inspection, insurance, etc.

Full details to be provided, including valuation details and basis thereagainst needs to be stated. Details of ownership of land, i.e., owned / leased need to be specifically incorporated.

In respect of Apartments / Flats, the value of insurance to be obtained may be specifically mentioned. This is to avoid ambiguity on value of un-divided share of land, to be reckoned or not which is debatable.

Time granted for security creation, deviations from existing security (if any) to be detailed

Modifications in Standard Covenants, if required needs to be detailed alongwith reasoning

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