Kumar Proposal for Enhancement 27-32

8/18/2019 Kumar Proposal for Enhancement 27-32

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M/S Kumar Bros. Chemists Pvt. Ltd. BO: Sec-22 B Chandigarh

CREDIT & REHABILITATION DEPTT.CIRCLE OFFICE: SEC.17B, CHANDIGARH

Ph. 0172-2703075, 2706822

D!": 2#-0$-201#

N%" ' !h" D()(*(+: I!"% N.: ""!(+ D!":

""!(+ T/": FGMCAC, Chandigarh. P/*": F A//)

G(*! ' !h" P/*: The proposal falls under the powers of FGMCAC due to

enhancement of existing FBWC from Rs.!."" crores to Rs #."" crores $ %FB Rs. ".&"

Crores, Total Rs. #.&" Crores in fa'our of M(s )umar Brothers Chemists *'t. +td.

*roposal Trac-ing %o. ( ate/ #01"""0""""1" D!":11.0$.201#

2 CRR AB2 4( /!"

" under internal rating

model signif3ing ris-

B4 52core &0.!6 AB2 #."#.0 *(+('(+

"*! S'"!

3 7xternal Rating BB * /" CAR7 R!(+ 'alid up to ."8."0

# Acti'it3 Retail $ Wholesale trading of medicines

5 Group )umar Group

6 Ban-ing 2ole Ban-ing7 +ead Ban- 5 if applica9le6 %A

8 *%B 2hare 5if applica9le6 "":$. *ro;ect +oan5 if applica9le6 %A

Total cost of pro;ect/ %ATotal e9t/ %A

(*h%"+! L!(+ ' R"C/!" O''("P+!*.4 ."&.881 'ide certificate of incorporation no. #!! of 881 issued 93

office of the Registrar of Companies =alandhar. 7arlier, it was a partnershipconcern since 8."8.1".

4 2C< !41, 2ector , Chandigarh which is owned 93 director(guarantors of the compan3.

3 R(*? R!(+ E@!"+ R(*? R!(+.

Page 1 of 34


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4 The internal ris- rating of the compan3 is >B4? with score &0.! 9ased on AB2#."#.0 indicating Modest safet3 under Mid Corporate 9orrower rating modeland +B under facilit3 rating model indicating moderate safet3.

4 The external ris- rating of the compan3 is >BB? as per CAR7 report as per AB2dt/ #."#."#. The 7RR is 'alid up to ."8.0

# A!()(! =(!h C/(!, (' +T! C"(! (%(!* =(!h C+*!(% N ' B+?"* ' CTL L" B+? PNB B+hCO + L(%(!*.4 The compan3 comprises of itself in # di'isions i.e. Whole sale(retail trade of

medicines $ surgical, cosmetics. The compan3 is a leading chemist of theentire region and supplier of medicines(surgical items to go't. and armedforces hospitals in addition to local hospital and nursing home in Chandigarh,*anch-ula, Mohali and all other near93 areas. The Compan3 is also leadingsupplier of products used for cardiac surger3 items i.e. stunts, heart 'al'es,9alloons angiograph3, angioplast3 e@uipments and high 'alue in;ecta9lesparticularl3 for cancer treatment.

4 2ole 9an-ing with *%B and is en;o3ing CC 56 facilit3 of Rs. !."" Crore and%FB limit of Rs. ".&" Crore.

5 C+! ' !h" A+! (" S!(*'! O/"!(+* S")((+ !((*!(+

")"* ' FB, NFB, *> (%(!* ("(!("*, (' + %/(+" ' *+!(+!"%*.4 2atisfactor3 conduct of Account, all Terms $ Conditions of pre'ious sanction

ha'e 9een compiled with.

6 T+ O)"E@/!I%/! T+ O)"TNT! D">!(+!"++" ' F(++(R!(*.

4 The sale of the compan3 is on the increasing side and is Rs !0.8 Crores asper AB2 as at #."#.0 as compared to #.! Crores as per AB2 #."#.#.

4 T%W as on #."#."# $ #."#."0 9eing Rs..! Crores and Rs.!.00Crores respecti'el3.

4 All other financial ratios $ parameters 9eing satisfactor3.

7 ?"! L!"*! "> R"/!, (' +, (+ >("' . 2atisfactor3

8 !"( )"*" R"/! '% C"(! B"*, (' +. %il

$ P/* (+ >("'.

- 7nhancement of FBWC limit from Rs ! Crores to Rs # Crores.

10 S"T(%(+ ' P%!" C+!(>!(+, =(!h *!('(!(+. %A

11 S!!* ' /h*( /"** F(++( T(" / S+!(+ > !h" >+?*/ %A

12 TE; R"/! C+*(+ : %A

13 S!!* ' !h" /"!* A)"*" /"'%+" ' / +"+*, (' +, (+>("'.4 )umar Group ( Conduct of allied concerns is satisfactor3.

1# P(% S"(! (+ )" ' C+*!(%PNB + /""+!" ' )""

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4=h"")" /**(>".4 2ole 9an-ing with us and"": co'erage.

15 C!" S"(! (+ )" ' +*!(%PNB + /""+!" ' )"".E''!* !?"+ ' (%/)(+ )"", =h"")" //(>", (+ >("'.4 To the extent of Rs.!.&& Crores, against proposed exposure of Rs.##.

crores including enhanced portion of FBWC limits of Rs & crore $ # car loanaccounts sanctioned under BM power.We recommend for considering enhancement of proposed facilities for sanction againstcollateral co'er of 10.!:.

16 *!('(!(+ ' =" /((+, (' *"*!". %o concession is allowed.

17 ECGC !h" C"(! I+*+", (' + + (!* )"": N.A.

18 *+" /"( ' D%"*!(I%/! LC*B"* C"(! "!: N.A.

1$ D")(!(+* '% !h" P(, (' +: %il

20 E@!"+! ' +h"" "@/*"T(%" /* (+ +! h""* "%"(%"*"* *"*!"/ %.A.

21 A+ !h" %!"( '!*: N(

22 NGB //) !", =(!h ")(!(+ (' +. NA

23 R"%%"+!(+ ' !h" C(" H": Recommended for enhancement of FBWClimits from Rs !."" Crores to Rs #."" Crores 9ut restricted to Rs. #"."" Croresup to #."#.&.

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N%" ' !h" A+! + BOC+!(+ O''("FGO/ M(s )umar Bros. Chemists *'t +td. B


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93 Ban-

Facilit3 Rating

R!(+ '

"!(

+

*resent B4 #"."!.

0

&0.!

#."#.

0

#"."8.&

*re'ious

A0 .".#

&1.8

#."#.#

#"."8.0

*resent +B "."1.0

4 #."#.0

#"."8.& %A

*re'iou

s

+A0 .".#

4 #."#.#

#"."8.0 %A

ecrease in su9;ecti'e mar-s in management e'aluation and

9usiness industr3 e'aluation.

Rating from 7xternal

Agenc3 5The external

rating should 9e

mapped to theinternal rating6

F((!

!"

R!(+ D!" '

!(+

R!(+

A"+

R"%?*

CC

%FB

>BB?

A0

."8.# CAR7 long Term

2hort Term

Mapped as B with our internal rating as per AB2 #."#."0

Whether priorit3(non

priorit3 sector as per

*2$+B guidelines

5+atest 9eing

*2$+B (+BC(

Codified Circular

%o.0 dated

"."!."06

2u94sector ma3 also9e mentioned.

%on *riorit3 2ector

Whether Agriculture(

Retail( 2M7(


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ate of clarifications,

if an3, recei'ed at

C<

%A

ate of su9mission of

proposal

!.""8."0

ate of the originalsanction

"&."&.""

ate of last sanction

$ authorit3(Hn

*rincipleH Consent

"1.."#, FGMCAC, Chandigarh.

Authorit3(Hn *rincipleH

Consent(%BG

clearance sale with

date

%A

Remar-s %+

Customer %o. 7IJ""81!

Acti'it3 code 5as perladder6

0"80

2. B="* P'("

a. Group %ame )umar Group

9. Address of Regd.(Corporate


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3. D("!* 4SSh(

%ame $ esignation Address(Mo9ile %o.(e4mailaddress of Main irectors(Guarantor irectors()e3persons

Whether*romoter(

% %o. *A% %o.

*rofessional(%ominee

.Ashwani )umar

2ingla

810#1& K# sec

Chandigarh

-umar9rothers.chdLgmail.com

*romoter ""008#& ACB*2"10*

.*armod )umar

2ingla

K# sec Chandigarh *romoter ""008"1 ABC*)&11C

a6 f an3 of them, in the list of Caution Ad'icescirculated 93 the Ban- from time totime(RBNs(Willful defaultersN list(Caution +istof 7CGC. f 3es, action ta-en

%o

96 f an3 one of them connected in the past withan3 %*A(


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ii6 Confirmation that CRs ha'e 9een drawnfrom CCs data 9ase5CB+(7@uifax(7xperian( igh Mar-6 andcomments on ad'erse features, if an3/

D!"O' CIR

N%" N%" 'CIC

A)"*"'"!"+>*")"

.".0 Ashwani2ingla

Ci9il(7@uifax

%il

.".0 *armod2ingla Ci9il(7@uifax %il

.".0 Pinod2ingla

Ci9il(

7@uifax

%il

.".0 2angeeta2ingla

Ci9il(

7@uifax

%il

.".0 =agat2teels

Ci9il(

7@uifax

%il

.".0 )umar Bros5Chem6 *'t+td

Ci9il(

7@uifax

%il

."."0 M(s %orthndia2urgical Co

Ci9il %il

."."0 )umar 7nterprises

Ci9il %il

."."0 )umar Realtors*'t ltd

Ci9il %il

i ii6 n case of =oint +ending(multiple

9an-ing(consortium lending arrangement/• Confirmation that ue iligence Report from a

professional 5i.e. Compan3 2ecretar3(Chartered Accountant(Cost Accountant6 from9an-Hs appro'ed CA(C2 on prescri9ed format5+$A Circular %o. # dated 1."0."6 ha'e9een o9tained.

f @ualified, whether rectifiedQ

Ad'erse features, if an3, are discussed in

the proposal 5cop3 to 9e enclosed with theproposal6

• Confirmation that 2haring of nformation on

prescri9ed format +$A Circular %o.#(" $88(" 5compulsor36S ha'e 9een o9tained fromall lenders and ad'erse features, if an3, arediscussed in the proposal 5cop3 to 9e enclosedwith the proposal6

i'6 Piews(comments for the ad'erse report a9outthe 9orrower(guarantor, if an3, in thepu9lic domain(media/

%A

%ot applica9le as it is not a multiple financing (consortium ad'ance.

etails of other lenders/

%+

%+

Page 8 of 34


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' Sh" H(+ P!!"+ * +: #."#."0

N%" ' !h" P%!"* Sh"h"*

N. ' Sh"* A%!. (+ C" H(+

P%!"* H(+ 81" ".8 &.8!

FI*! F+*TIB+?*FII*

F%( %"%>"* 1#0 ".1# !0."#

P>(

T! #001 . "".""

#.A F((!("* R"%%"+" : 5Rs. in Crores 6

N!" E@(*!(+ P/*"S""+*"" + =(!h!h" >*(* !h""' 4A* /" RBI* ("(+"*

F+ B*"

CC4H !."" #."" 2ecured

CDL "."" ".""

FOBPFOBPFABC "."" ".""

O!h"* "."" ".""F+ B*" C"((+ !."" #.""

N+ F+ B*"

ILCFLC "."" ".""

ILG FLG ".&" ".&"

N+ F+ B*" C"((+ ".&" ".&"

T"% L+4O*-C ".!" ".Car +oans account with B


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#. C Sh! T"% L+*Ah L(%(!* *+!(+" > PNB (+ *! 12 %+!h*, (' +

D!" ' *+!(+ A%+! P"( ROI D!" '

A*!%"+!

R

)"

."."# ."" 0 Months: o'er and a9o'eapplica9le rates "."."# %A

"0."."0 #."" # Months: o'er and a9o'eapplica9le rates "#."&."0 %A

"."&."0 #."" 0 Months: o'er and a9o'eapplica9le rates "0."8."0 %A

The adhoc limit were 9eing allowed to the compan3 to meet with their urgentre@uirements due to increased le'el of turno'er( in'entor3 le'el and their additional authoriation with some of the ospitals, the said adhoc was dul3appro'ed 93 the competent authorit3 and the same were ad;usted 93 thepart3 on its due date.

#. D D"!(* ' '((!("* /)(" !*(" +*!(% (+(+ "@/*" + +! '"()!()"*, (' + %A

N%" ' !h" N!" ' S"(! O* P/*" R!" '

I+*!(!!(+ '((! * + I+!""*!

a6

96

5.A F((!("* '% PNB S>*((("*E@/*" > = ' (+)"*!%"+! (+ E(!D">"+!"* / D"()!()"*F"(+ E@h+" "!. : %A 5Rs. in Crore6

N%" ' !h" N!" ' S"(! O* P/*" O)"", ('

I+*!(!!(+ '((! * + +

a6

96

5B. D"!( ' +* '% !h" B+?*F(++( I+*!(!!(+*O!h" I+*!(!!(+* - 4(+(+ C(%(!*, T"% L+*, L"*", ICD*, C/!" L+*, D">"+!"* "!.

5Rs. in Crore6

%ame of the Ban-(F Facilit32anctioned

Balance


11/34


the assets of the compan3 and no an3 such charge has 9een created(Regd withR*(* ' ABS31.03.201#, !h"=(*" /+" (+!""*! * /" >+? ("(+"* >" h".

5D. D"!(* ' ?(+ C/(! L(%(!* '% !h" C+*!(%!(/" B+?(+

5Rs. in Crore6

%ame of the 7xisting 2hare : *roposed 2hare : R


12/34


Cash *rofit ".!8 ." .# .# .8 .1

7BTA(*BTA &.! . !.8 #.1 !.1& 1."

*aid Ip Capital . . . . . .

Reser'es $2urpluses excl.re'aluation reser'es 0.#1 &.0 .0 .! !.18 8.0

eferred Tax +ia9ilit3 "."" "."" "."" "."" "."" ".""

Re'aluation Reser'e "."" "."" "."" "."" "."" ".""

Misc. 7xp. %ot W(off "."" "."" "."" "."" "."" ".""

Accumulated +osses "."" "."" "."" "."" "."" ".""

eferred Tax Assets "."& "."8 "."8 "."" "."" ".""

Tangi9le %et worth &.0& .! !.00 !.#8 8." ".!

n'estments in alliedconcerns and crossholdings "."" "."" "."" "."" "."" ".""

%et


13/34


7A 4((( K" F(++(* / ! *! !" 4* /" />(*h" +-(!" R"*!* (+ *" '(*!" %/+("*:

5Rs. n Crore6

*eriodended

Cumulati'eposition as onlast @uarter#"."."0

Correspondingposition as on@uarter of last3ear #"."."#

:change

Acceptedfor thecurrent3ear

:ageachie'ementupto latest@uarter(O(#

Remar-s

2ales !.#1 .8 .## 8"."" 8.# satisfactor3

!h" >=(+ %/+: %A

7B. B("' (***(+ + F(++( I+(!* 4I+!"/"!!(+(+'""+" =+ (+ "*/"! 'L!"*! '(++( *! F< (+(!* ! >" (***"

Paid up capital/TNW

The Authoried capital of the firm is Rs .&" crore. The paid up capital of the compan3 is Rs. .crore as per AB2 as at #."#."0.

Reconciliation of TNW (Audited) as on !"#"$#!%(Rs. in crore )

T%W as on close of FO ended #.#."# .!

Add/ *AT .8+ess/ nc in T+ ".""

+ess/ *ro'isions "."T%W as on close of FO ended #.#."0 !.00

&alesThe part3 has achie'ed the sales of Rs. #.&& crore during "4# with percentage growth of 0.#1:.The compan3 had pro;ected sales of Rs. !&."" crore for the current financial 3ear i.e. "#40. Thesales as at #."#."0 of the compan3 are Rs. !0.& crore which is 88.: of the pro;ected sales.The progress of the part3 is satisfactor3.

'ther income%o other income as on #."#."0.The other income in "4# is due to other receipts andcommission.

Profitaility The compan3 is in profit for the last 0 3ears and with the increase in sales the profit is also showingincrease. The net profit during "4# is Rs. ".18 and during "#40 is Rs. .8 crores and is in linewith pro;ections made for the same. The compan3 has pro;ected profit of Rs .&! Crores for the 3ear ending #."#."&.

S!? T+ )" R!(2toc- Turn


14/34


nature, resulting in the 9uildup of hea'3 in'entor3. Further compan3 prefers to purchase drugs andother operati'e e@uipment in lot on free product 9asis resulting in the 9uildup of hea'3 in'entor3, 9utimpro'e profita9ilit3 su9stantiall3.

nvestmentsThe compan3 has in'ested Rs. ".0 Crore in mutual fund as well as gold outside the 9usiness. Thesame is accepted as the current ratio is more than 9enchmar- le'el.

*iversion of fundsBM has informed that %o such incidence has 9een noticed.

NW+/ +urrent Ratio As per Balance 2heets, the current ratio of the compan3 is .&0 as at #."#.# and as per AB2#."#.0 the CR is .0. The pro;ected le'el of CR is .0# as at #."#.&. The CR is a9o'e9enchmar- le'el $ is satisfactor3. %WC is increasing e'er3 3ear and sufficient for proposed limit.

*et-.uity Ratio The 7R is also within the 9enchmar-.


15/34


3p. " ()"+ + (+ !h"'=(+ '%!:

( H/!h"!(+ !" ' B? A**"!* I%%)>" P/"!("*A%! (+ "

2ecurit3escription

Area in2@m or 2@Ft


16/34


4R*. I+ C"*

As per CRs of the irectors(Guarantors net means shown less than 'alue of *s as the3ha'e raised loans against their *s from Fin Companies and it is shown as their lia9ilit3 inCRs, there93 reducing their net worth as compared to 'alue of *s.

Guarantee of 2h. )aran 2ingla is not 9eing proposed for the facilities existing as well asproposed for enhancement as he has resigned on "."."0.7@uit3 of 2h. )aran 2inglahas 9een ta-en 93 the existing irectors and there is no dilution in e@uit3.

i'6 C%%"+!* + h+"*, (' +4 The %et means of Pinod 2ingla has decreased due to raising of loans for the personal

use.4 The %Ms of Ashwani 2ingla has decreased due to increase in 9orrowings from other

9an-( financial insitituion.4 The %Ms of *armod 2ingla increased due to increased induction of funds.4 The %Ms of 2angeeta 2ingla has decreased due to raising of loans for the personal use.

) S!!* ' "!(+ ' h":BM has confirmed that the charge as per last sanction stand created on "0."."0. R


17/34


C L(%(!*5Rs. in Crore6

N!" L(%(! ;S DP B+" I"(!

FB !."" 00." !."" .& 4

T"% L+ 4

T"% L+-C-1 ".# ".0 ".# ". 4T"% L+-C-2 ".1 ".## ".1 ".! 4

T"% L+-C-3 ".1 ".## ".1 ".! 4

NFB ".&" "."1 ".&" "."1

T! 1.8 00.1 1.8 !.# 4

> T"% L+ %A

10.A C+! ' !h" A+! (+(+ (+ !"%* ' "*!!(+ +", (' +, + =(!h"!(* ' !"%* & +(!(+* +! %/(" =(!h. +omments on folloin0 should e 0iven

A)(%"+! ' (%(!, )"=(+*, R!(+ ' //!(+!" >*(+"** (+ +*!(%,

!(+ ' *" /""*, h+(+ ' %%(!%"+! (+ ++ '+ >*"'((!("*4"!(* ' LCLG "))"(+)?" =(!h %+!, "*!!(+ +", (' ++ +! !h""'.4The limit has 9een a'ailed ade@uatel3 and adhoc limit of Rs. #."" Cr was permitted on

"."&.0 for a period of 0 Months with in C *owers stands ad;usted on its due date

"0."8."0 .

4Against the sale of !0.& Crore the credit summations are Rs !.1# Crore during "#4

0. The rotation of sales through the account is satisfactor3.

4%o BG is 9eing re'o-ed.

4 %o restructuring is done in the a(c.4 Conduct of the a(c is satisfactor3.

R"(! (+ *>%(**(+ ' CA ! '(++( *!!"%"+!SS!? S!!"%"+!.

Th" (+'%!(+ "(+ +. ' h""*>(* "!+" =(!h %+! (+))" "

! '(++( "*+* (+ !h" ")("= /"( *h >" %"+!(+".

The part3 is regular in su9mission of CMA data( financial statement(M2(2toc-

2tatement. %o such incidents ha'e 9een o9ser'ed regarding returning of che@ues.

Th" %+!'""+ ' ("(! (+ !h" +! (+ !h" ")("= /"( +

=(!h !(%" !?"+ (+ "(M!(+ !h""' *h >" %"+!(+".

BM has confirmed that %o such incidents ha'e 9een o9ser'ed.

C"+! +! %(+!(+" =(!h !h" >+? !h" !h+ L"+"*, (' + + *!"/*

!?"+ ' *(+ !h" *%".%A

S/"(' !h" "!(* ' ECGC (% ", (' +, (+ *! 5 "*: NA

10.B ( ;" ' !h" A+!A%! (+ C"

L(%(!L*! " 42012-13

C"+! " 42013-1#

N!" A%+!

A)"" A)(

I+!""*!C%%(**(+


18/34


/(! 4FB # &

NFB ."" "."1 "." "." ".&" "."1 "." %A

T"% L+ %A %A %A %A %A %A %A %A

B(*/h*"

"!"

%A %A %A %A %A %A %A %A

A+ !h"(+%"*h *E*=+!'"", "!.

%A %A %A %A %A %A %A %A

T! &."" ."8 #.# &."&

!.&" .1 #.#" .!

10.B (( D"/*(!* =(!h "!(* Amt in crore

C"+! " L*! "

N. ' A A%+!A)"">+" OS

2a'ing

#01"""""8810#01"""""8!&1

".""."#

"." "."

"." "."

Current %il %il %il

Term deposit F "."! "."! "."!

Total %il %il %il

10.B 4((( ;" ' / +!*-+

10.C R")("= ' !h" A+! + S%% ' ("(!("* +" M" !"+" ")" +' *"+*(!()" (+"@ /(+!" ! > B+?* I+*/"!*, C+"+! A(!*, C"(!

A(! & R")("= D()(*(+ 4CA&RD, RBI I+*/"!*, S!!! A(!*, >*")!(+*' S!? A(! R"/!, C%%"+! + P")"+!()" +(!(+ S" T"+*, 4+ *!!*' "!('(!(+ ' !h"*" ("(!("*

The details to 9e gi'en here onl3 as under/

1 R")("= ' !h" A+!. F+ B*" L(%(!*

5Rs. in Crore6

P"( L(%(! C"(!*%%!(+

D">(!*%%!(+

@(%%A)(%"+!

(+(%%A)(%"+!

S"* ;(!(+>"!=""+ *"* &

"(!

*%%!(+*"#40 !."" !.10 !!.## #"."" #.0 !0.1 .88

"."0.04#."1.0

!."" #.88 #.08 8.88 .#1 8.8 4."!

Comments on credit summations in relation to sales/ 2atisfactor3ue to Adhoc allowed of Rs #."" Crore on "0.".0 and ad;usted on "#."&.0, Again adhoc wasallowed on "."&.0 and ad;usted on "0."8."0.ue to realiation of de9tors. The difference is due to the reason that the part3 has made sales on credit.

Page 18 of 34


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>. N+ F+ B*" L(%(!*:5Rs. in Crore6

L(%(! I**" 4N*. A%+! @(%% )(%"+!

".&" "."1 "."1

. D"!(* ' )"" PC & E@/! B(*: NA

2 S%% ' !*!+(+ ("(!("* +" *"(* !", M" !"+" ")",' *"+*(!()" (+"@, * !h" *" % >", /(+!" ! > + *!!* ' "!('(!(+

( B+?* I+*/"!* : %+

(( C+"+! A(!* : %+

iii6 C"(! A(! & R")("= D()(*(+ 4CA&RD :

CAR Report dated "1."."0 for 0 5#406 5Repl3 alread3 su9mitted 6

C" I**"*:

A.4 R


20/34


terms of +A Cir. %o. !("1 along with

the reco'er3 of charges.

C. 4 R


21/34


88(.

i'6 RBI I+*/"!* : %+

'6 S!!! A(!* : %+

)( O>*")!(+* ' S!? A(! R"/! : %+

'ii6 C%%"+! + P")"+!()" +(!(+ S" T"+* : 7A+TO

10.D4( CONFIRATION

. Compliance of last sanctioned termsOes

. 2ecurit3 documents are 'alid(dul3 'etted(enforcea9leOes

#. *roper charge on securities createdOes

0. Confirm that compan3(directors are not under 9an-(RB(7CGC( Oes

CB+ defaulters(caution list&. Confirm that pa3ment of statutor3 lia9ilities is not in arrears Oes

. Confirm that no litigation against(93 the compan3 is pending Oes

!.Corporate go'ernance practices are 9eing followed as per Auditorsreport Oes

1. Confirm that no de'iations are made from usual norms(polic3 guidelines Oes

8.Confirm that 7xposure is within 9an-Hs internal ceilings(RBprudential norms Oes

".Confirm that *re42anction nspection has 9een carried out in terms of+$A Cir %o. 0& dated !."0."# and report is held Oes

10.D4(( ADITINSPECTIONEETINGS

P!(* L*! !" R"%?*O>*")!(+*S!"/* !?"+

a6 Annual inspection #.."# Report stands closed

96 2toc- audit .."# %o o9ser'ation recei'ed from FGM


22/34


*!('(!(+ ' F+ B*" ?(+ C/(! L(%(!*:

As per *BF calculation as per annexure P.

96 *!('(!(+ ' N+ F+ >*" (%(!*

The existing WC limits i.e. %FB Rs ".&" Crores was sanctioned on "1.."# under the'ested powers of FGMCAC. *art3 re@uested to continue the same.

c6 *!('(!(+ ' !"% +FLCILC 4C/"@ : NA

D R")("= ' "@(*!(+ !"% + =(!h /"*"+! !*!+(+ ' R*. %A

13. P((+

Facilit3 7xisting *roposed Applica9le rate

I+ !"%* ' LA C( N. #8201# * //(>" ! IRR * B-1 +

ERR * BB

Rate of interestCC BRD.&:

4i.e..&":

BRD.!&: 4."":

5relaxation6 i.e.."":

BRD.!&:

i.e.#."":

Comm. on %FB BG As per +A Cir #8(0 As per +A Cir #8(0 As per +A Cir #8(0+?*, (' //(>": %A

4 P"!" (+%" )": %A

0. O!h" I**"* +! (***" "*"=h"" :

1. R"@!(+ (+ ROI ' 1.00 '% C !".

The Compan3 is dealing since Ma3"" and conduct is satisfactor3. The proposed facilit3 isto 9e collaterall3 secured 93 7M of * worth Rs. !.&& crore 51&: of loan amount6. %o other concession ie processing fees etc is 9eing proposed. Compan3 has re@uested us for concession in R


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. owe'er the part3 9elongs to reputed group trading in Medicines(2urgical items and

is leaders in this part of the countr3.

OPPORTNITIES:

. The compan3 has potential to add new products used in surger3 and other medical

e@uipments used in the hospitals to increase the sales.

. The compan3 has recei'ed orders from Arm3.

THREATS:

. The compan3 has usual threat from the similar units in and around Chandigarh and

near93 areas.

16.A D")(!(+* (+ !h" //* >*")" > !h" "%%"+(+ !h(! / %o de'iation iso9ser'ed.

16.B R"%%"+!(+* :

)eeping in 'iew of the a9o'e and *BF calculated as per Annexure4P, we ma3 recommend7nhancement of FBWC limit from Rs, !."" Crores to Rs. #."" Crores and Renewal of BG

limit of Rs. ".&" crores and stipulate that FBWC limit 9e allowed up to #"."" Crores for "04& and further a'ailment is to 9e allowed after loo-ing in to sale le'el achie'ed 93 thecompan3 as on #."#."& on Terms $ Conditions as per Annexure4A.

ANAGER 4C"(! CHIEF ANNAGERAG CIRCLE HEAD

Annexure4A

D"!(" T"%* + C+(!(+* ' S+!(+-A+! * K% B* Ch"%(*!* P)! L! BO:S"!-22 B, Ch+(h

FACILIT< NO I

N!" Cash Credit 53pothecation of 2toc-s $ B6

L(%(! 7nhancement of FBWC limits from Rs !."" Cr 5Rupees Twent32e'en Crore B4?CRR aligned with UBB U 7RR at monthl3 rests.

S"(! 3pothecation of stoc-s of medicines surgical e@uipments cosmeticsgeneral merchandie etc. and Boo- e9ts( recei'a9les arising out ofgenuine trade transactions and other current assets of the compan3present and future.

P"( months

FACILIT< NO 2 4E@(*!(+

N!" BG

L(%(! Rs &"."" Cr 5Rupees Fift3 +ac


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specificall3 9e allowed.

S"(! Charge on entire current assets of the compan3 and counter indemnit3from the compan3.

P"( Maximum # Oears.

B"+"'(( *G, Go't 9odies efence ospitals and other 9usiness related parties

O!h" T"%* & C+(!(+*:

Ch" Ban-s charge is to 9e registered with R


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(( First charge on the entire 9loc-(current assets of the compan3 to secure wor-ing capital limit.

((( P"*+ C/!" +!"": 4R* C"*

1. %o commission is to 9e paid 93 the 9orrower to the guarantors for guaranteeing the creditfacilities sanctioned 93 the 9an- to the 9orrower. An underta-ing to this effect to 9e o9tainedfrom the 9orrower as well as guarantors.

2. The 9orrower to furnish to the 9ranch the re@uired financial information on the prescri9ed*erforma within " da3s (or within the specified period, as specificall3 permitted to ena9le the9ranch to su9mit @uarterl3 *M2 to the 9an-s higher authorit3.

3. The 9orrower shall not underta-e expansion (di'ersification (moderniation 5except thosein'estment accepted in CMA data6 without o9taining prior permission of the 9an- and withoutproper tie4up of funds. 2imilarl3, no in'estment shall 9e made in associate(allied groupconcerns without prior 9an- permission.

#. Friends(relati'es from whom the unsecured long term loans ha'e 9een raised shall pro'idean underta-ing that the3 shall not withdraw these loans during the currenc3 of the 9an- loanand the 9orrower shall underta-e not to allow their withdrawal without prior permission of the9an-.

5. Monies 9rought in 93 principal 9orrower will not 9e allowed to 9e withdrawn without theBan-Hs permission.

6. The Ban- or its authoried officials or other representati'es will ha'e the right to carr3 out

periodical inspection or examine the 9oo-s of accounts of the 9orrower and to ha'e their factories(office(assets inspected from time to time 93 officers of the Ban- and( outsideconsultants and the expenses incurred 93 the Ban- in this regard will 9e 9orne 93 the9orrower.

7. The Ban- shall ha'e the right to withdraw or modif3 all(an3 of the sanctioned conditions or stipulate fresh conditions, under intimation to the 9orrower, Borrower shall underta-e to gi'etheir acceptance to these stipulations.

8. 2toc-s Audit will 9e conducted 93 the Ban-Hs appro'ed Chartered Accountants, on annual9asis. All expenses in connection with the stoc- audit shall 9e 9orne 93 the 9orrowers.

$. n case the part3 commits default in the repa3ment of loan(ad'ance or in the pa3ment of interest thereon or an3 of the agreed installments of the loan on due date the 9an-, CB+and(or Reser'e Ban- of ndia will ha'e an un@ualified right to disclose or pu9lish the names

Page 25 of 34

%ame ofGuarantor Relationshipwith 9orrower %et Worth mmo'a9lepropert3 ate of confidentialreport

*re'. As at

*resent As at

*re'. As at

*resent As at

*re'. *resent

Pinod2ingla

Brother ofirector

8.#" 1.! #&.& #&.& ".".# !.".0

Ashwani2ingla

irector .! ." 8.& 8.& ".".# !.".0

*armod2ingla

Brother ofirector

&.& &.0& &.0& &.0& ".".# !.".0

2angeeta2ingla

2ister in law ".# 8.8 #.1" #.1" ".".# !.".0

=agat2teels *'t+td

AlliedCompan3

". %ochange

".!8 %ochange

."."#

#."#.#


26/34


of the compan3 and its directors as defaulters in such manner and through such medium asthe 9an(RB in their a9solute discretion ma3 thin- fit. 5Consent of 9orrower and guarantors interms of +A Cir. %o ""("" 9e o9tained6.

10. uring the currenc3 of 9an-Hs credit facilities, the 9orrower shall not, without the prior appro'al of the Ban- in writing

a. eclare di'idends or an3 3ear, if the accounts of the 9orrower with the Ban- is(arerunning irregular or if an3 of the terms and conditions of the sanction remain un4complied with 9a3 the 9orrower.

9. *ermit an3 transfer of the controlling interest or ma-e an3 drastic change in themanagement set up.

c. i'ert(utilie Ban-Hs funds to other sister(associate(group concerns or for purposesother than these for which the credit facilities ha'e 9een sanctioned.

d. ssue Bonus shares and disposes of share holding of promoters where'er specificall3stipulated. *ermit an3 transfer of the controlling interest or ma-e an3 drastic changein the management set up.

11. Margins(rates of interest are su9;ect to re'ision from time to time at the sole discretion of the9an-.

12. The Ban- shall charge penal interest under the following circumstances/a6 rregularities(o'er drawings in cash credit accounts.96 %one4su9mission(dela3ed su9mission of 2toc- statements after the " th of the following

months.c6 %one su9mission(dela3ed su9mission of @uarterl3 re'iew sheet information after " da3s

from the close of the @uarter concerned.d6 %on(dela3ed su9mission of renewal proposal with audited Balance 2heet, CMA data and

statement of assets and lia9ilities of the guarantors after " months from the date of sanction.e6 efault in o9ser'ance of 9orrowing co'enants(terms and conditions of the sanction.f6 An3 other e'entualit3(situation to 9e decided 93 the Ban-.13. Borrowers to su9mit M2 form4 as per prescri9ed proforma within six wee-s from the close

of e'er3 @uarter and M2 Form without months from the close of half 3ear failing whichpenal interest, as prescri9ed 93 the 9an- from time to time, will 9e charged for dela3ed(nonesu9mission of follow up forms. The compan3 to also su9mit 2 form as per 9an-guidelines.

1#. Branch to ensure compliance of instructions in terms of +A Cir. %o. 1!("" regarding +egal

Compliance Certificate to 9e su9mitted to V


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31.03.201#, !h"=(*" /+" (+!""*! * /" >+? ("(+"* >" h".

ANAGER4C"(! CHIEF ANAGERAG

APPENDI9 II

4 D"!(* ' A**(!" A(" G/ +"+* + !h" '((!("* *+!(+" ! !h"% 4I!"% N.

6 ' !h" N!". 4R* (+ C"

N%"' !h"C%/+

A!()(! F(++(* 4L*! 3 "* D"(+B+?

F((!("*N!"&A%+!

Page 27 of 34


28/34


M(s%orthndiasurgicalcopartnershipconcern

WholesaleTradingofMedicine,surgicals

*eriod #."#. #."#. #."#.# #."#.0

*artnersCapital

". ". ".## ".0

AddReser'es $

2urplus

".! ".!0 "."" ".""

+ess Acc.+osses$ntangi9le Assets

"."" "."" "."" ".""

T%W ".1# ".10 ".## ".0

*BT "."# "."# ".! "."1

2ales #.&0 !.1 &.18 .!0

)arurP3asaBan-

FBWCRs!.""Crores%FBRs.""Crores

)umar

7nterprises*artnership /*armod2ingla,

Ashwani2ingla,r.)ewal)rishan$ *aras)umar

ealers

inmedicine andsurgicalitems2C<#&& 2ec#,Go'tMedicalCollege$ospitalsec #Chd

*eriod #."#. #."#. #."#.# #."#.0

*artnersCapital ".#! ". ".&0 ".&&

AddReser'es $2urplus

"."" "."" "."" ".""

+ess Acc.+osses$ntangi9le Assets

"."" "."" "."" ".""

T%W ".#! ". ".&0 ".&&

*BT "." "." "." ".""2ales ." .80 .8" .""

CA with

*2BChandigarh

%o

limit

)umarRealtors*'t +tdirector s

Realestatede'elopers

*eriod #."#. #."#. #."#.# #."#.0

2harecapital

". 0.## 0.## ".00

Addreser'esandsurpluse

"."" "."" "."" ".""

+ess Acc. $losses $

intangi9leassets

"."" "."" "."" ".""

T%W ". 0.## 0.## ".00

*BT "."" "."" "."" ".""

2ales "."" "."" "."" ".""

CA with2B

%olimit

As per famil3 settelment, M(s Rameshwara 7mporium and M(s )umar Mega Mall*'t.+td are now with the other 9rothers of irectors Mr. Ashwani 2ingla and2h.*armod 2ingla and the said units are not the Allied or Associate concerns of thecompan3 and these units also not a'ailing an3 credit facilities from our 9ranch(Ban-.M(s )umar 7nterprises is also not a'ailing an3 credit facilit3 from an3 9an-. The

Page 28 of 34


29/34


conduct of account of Ms %orth ndia 2urgical Co is satisfactor3 with their Ban- ie)arur P3s3a Ban-.

M(s =agat 2teels *'t +td. s onl3 in existence as the * mortgaged as securit3 is in

the name of compan3.There is no other acti'it3 in this compan3.2h. *armod 2ingla

and 2h. Ashwani 2ingla are directors of the compan3.Bm has confirm that compan3 has no other allied(group concern.C%%"+!* + +! ' !h"*" +!* =(!h >+?!h" >+?*: The conducts of the

accounts are satisfactor3, with the respecti'e 9an-s.4> C%%"+!* + )"*" F(++( I+(!*, (' +: %A

+"4"(! Ch("' +"AG

Page 29 of 34


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APPENDI9 I;

A D"!(" I+*! S"+( 4A* /" !"*! /!"* ' !h" !(+ "+ //)" >!h" >+? ' )(*(+ !h" (+*! !(+The compan3 is in the trading 9usiness of medicines 2urgicals etc. The Compan3 is the

9iggest chemist in the cit3. n 'iew of the fact that with the increase in num9er of ailments

of different t3pes the pharmaceutical companies are coming out dail3 with new medicinesand the sales trend is increasing. 2ince the acti'it3 is trading and has not 9een rated 93

an3 rating agenc3, the industr3 rating is neutral

B C%%"+!* + :-( +"%"+!

The co. is 9eing managed 93 the irectors who are closel3 related. The present

management is running the acti'it3 successfull3 and efficientl3.

(! ' +"%"+! 4I+(+ C/!" G)"++"

The compan3 is a *'t +td closel3 held compan3 managed 93 directors from the same

famil3. The directors are well 'ersed in the line of acti'it3 $ the unit is well managed 93

the present management and the sales are increasing 3ear 93 3ear.

(( S"**(+ P++(+ There is no such planning at present

((( P!(+%A

() ?"!(+The compan3 is ha'ing monopol3 in some of the products sold 93 it in the area and it

has to ma-e fewer efforts for their sale .owe'er the compan3 has emplo3ed

professionals to procure tenders from efence as well as *G( Go't ospitals. The

mar-eting people are successfull3 handling their corporate(Go't clients.

) G"+" 4"!(* *h * ('(!(+"@/"("+" ' ("!* /%!"*, %(+/!*, /(!, % >+*, "/h( %?"! ' /!* + % >"* "@/"!(*" (?" !"h+, >+, %?"!(+, "!.The promoter ( directorsare well experienced in the line of medicine (pharmaceuticals and surgicals which istheir core area.

)( 4C B="* ()"*('(!(+, "@/+*(+, %"+(*!(+ /%%"%o such plan at present

+" 4C"(! Ch("' +" AG

A//"+(@-;

Page 30 of 34


31/34


*!('(!(+ ' =?(+ /(! *+!(+

4 FGM< has sanctioned FBWC limit of Rs. !."" crore on "1.."# 9asedupon estimated sales of R2.!& Cr for "#40 and pro;ected le'el of salesRs.1" Crores for "04&.n august "0 part3 has su9mitted CMA dataand re@uested enhancement in FBWC limits from Rs.! Crores to Rs.#

Crores and


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( A**"**%"+! ' F+ B*" L(%(!* S": 4R* (+ "*

A! A! A! "/!" A"/!"

2011-12 2012-13 2013-1# 201#-15 2015-16

G** S"* 55.56 63.55 7#.65 85.00 8".""omestic &&.& #.&& !0.& 1&."" 8".""

7xport "."" "."" "."" "."" ".""

:age &.& 0.#1 !.0! #.1 &.11

B*( D! /" %+!h: 4R* (+ C"*

A! A! A! "/!" A"/!"

2011-12 2012-13 2013-1# 201#-15 2015-16

G** S"* 55.56 63.55 7#.65 85.00 8".""

omestic &&.& #.&& !0.& 1&."" 8".""

7xport "."" "."" "."" "."" ".""Cost of 2ales 01. &0.& 0. !.!8 !!."!

Raw Material Consumedmported "."" "."" "."" "."" ".""

B*( D! P" +!h

A! A! A! A"/!" A"/!"

2011-12 2012-13 2013-1# 201#-15 2015-16

Gross 2ales 0.# &.#" . !."1 !.&"

omestic 0.# &.#" . !."1 !.&"

7xport "."" "."" "."" "."" ".""

Cost of 2ales 0." 0.&& &.#& ."! .0

H(+ P"( (+ +!h*

A! ! A! "/!" A"/!"

2011-12 2012-13 2013-1# 201#-15 2015-16

Raw Materials "."" "."" "."" "."" ".""

2toc- in *rocess "."" "."" "."" "."" ".""

Finished Goods 1.& 1." !.#! !. !.

omestic Recei'a9les ".! ." .1 .0 .0

Creditors ".## ".!# ".1 ".8# ".8#

I+)"+!: The part3 has pro;ected in'entor3 le'el of !. months against last 3earHs

actual of !.#! months for "#40. The n'entor3 holding is high due to the fact that thecompan3 has to -eep all sies(9rand of cardiac stunt, operati'e e3e lens and orthopedice@uipment, which are 'er3 costl3 in nature, resulting in the 9uildup of hea'3 in'entor3. Further compan3 prefers to purchase drugs and other operati'e e@uipment in lot on free product 9asis

resulting in the 9uildup of hea'3 in'entor3, 9ut impro'e profita9ilit3 su9stantiall3. * ro;ectedholding le'el is in line with the pro;ections and is lower than the last # 3ears a'erageactual holding le'el of !.8 months and is ;ustified.

Page 32 of 34


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R""()>"*: The a'erage credit in this t3pe of acti'it3 is to months depending

upon the nature of 9u3ers i.e. Go't hospitals, efence, general medicines traders. The

last actual holding le'el is .1 months against which the part3 has now pro;ected le'el

of .0 months for "04& respecti'el3 and is ;ustified.

S. C"(!*: The olding le'el of sundr3 creditors as at #."#."0 is ".1 monthsand the part3 has pro;ected the holding le'el at ".8# months for the current 3ear to

achie'e the targets sometimes the pharmaceutical companies suppl3 in 9ul- at the

3ear end due to which the le'el can increase.

OCA: 4R* (+ "

P!(* "4 "4# "#40 "04& 2015-16

Audited Audited AuditedA"/!"

A"/!"

Cash $ Ban- Balance .8" #.0 .!8 .&1 .! Ad'ance to customers "."" "."" "."" "."" ".""

Ad'ance ncome Tax ".8 ".# ".&" ".! ".!&((!("* 2.1# 6.80 7.$7 10.20 10.81

The others Current +ia9ilities is ta-en as actual and as per last trend.

NC:

The a'aila9le %WC of the part3 as on date i.e. #."#."0 is Rs.. Crore against

which the part3 has pro;ected %WC of Rs.1. Crore as on #."#.&. The a'aila9le%WC is sufficient.

Page 33 of 34


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Ch">" C"+! A**"!*

"04& 2015-16

P!(*

H(+

P"(

R!"/"

+!h

A%+!4R*. I+

H(+

P"(

R!"/"

+!h

A%+!4R*. I+

Raw Materials "."" "."" "."" "."" "."" ".""

2toc- in *rocess "."" "."" "."" "."" "."" ".""

Finished Goods !. ."! 0.& !. .0 01.8

omestic Recei'a9les .0 !."1 1.!1 .0 !.&" 8.#"

CCA 55.03 58.22

O!h" C"+! A**"!* .## .0!

T! C"+! A**"!* 4TCA 57.36 60.6$

O!h" C"+! L(>((!("* "." ".1

?(+ C/(! G/ #7.16 #$.88

Minimum 2tipulated Margin

5&: of TCA less export

recei'a9le6 0.#0 &.1

%WC *ro;ected !." 1.

PBF 2$.$6 31.67S 30.00 32.00

For calculating *BF for "04&,the other Current assets ,

Kumar Proposal for Enhancement 27-32

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Transcript of Kumar Proposal for Enhancement 27-32