UCO BANKHead Office:

FORM – III

SMALL SCALE INDUSTRIESAPPLICATION FORM FOR CREDIT

FACILITIES OF OVERRS. 15 LACS & UPTO RS. 1 CRORE

UCO Bank

Ludhiana.

1.1 Name of the Unit :(in block letters)

1.2 Constitution (please strike out which : Proprietorship/Partnership firm/ Private are not applicable) Limited/Public Limited Company/

Cooperative Society.

1.3 Name of the business house/group : (if any)

2.1 Registration No. : (as given by the District Industries Centre/Directorate of Industries)

2.2. Date of Incorporation/Commencement : of Business.

3. Business Address with telephone/ : telex No. 3.1 Registered Office : 3.2 Administrative Office : 3.3 Factory : 4. Background of the Proprietor/ :

Partners/Directors (Please furnishFor each person as per Annexure I)

5. Brief Description of the IndustrialActivity5.1 Existing :

5.2 Proposed

6. How the Activity was financed so far.(Ito be filled up in case of existing unit only) (in ‘000s of Rs.)

ONLY WORKING CAPITAL LIMITS ENJOYEDSource of Funds

( * )

Security Rate of Interest

Repayment per month

Present Outstandings

Amount of Default (if any)

UCO BankEPC /CC/Rs.16 lacs MTL

7. Past Performance (To be filled up by existing unit only)(In (‘000s of Rs.)

Particulars(31.03. )

Last Year(31.03.)

Last but One Year(31.03.)

Last but Two Years(31.03.)

TurnoverNet ProfitRetained ProfitMonthly Turnover for last twelve months.

As Per Separate Sheet Attached

8. Arrears in Statutory Payments (if any)a) Income Tax : Nob) Sales Tax : Noc) Provident Fund : Nod) Employees State Insurance Corpn. : Noe) Others (specify) : No

9. If the unit is an ancillary unit, the : Noundertaking to which it is entering andits address.

10. Name of the associate concern (s), if any : Nil 10.1 Nature of Association : No Amount invested10.2 Nature of activity : .10.3 Items traded/manufactured : Nil .10.4 Turnover and profit during preceding three years.

11. Employment Present ProposedExecutives Supervisory Administrative/Office Staff -Skilled Labour Unskilled Labour

12. TECHNICAL FEASIBILITY12.1 Name of the Product(s) including :

bye-products & its (their) use

12.2 Manufacturing Process, in brief :(indicate to the extent possible,stage-wise capacity data,yield/conversion data, material flow, etc.)

12.3 Capacity (No.. of Units/Quantity in kg./Volume in litre per annum)Capacity for each product

Licensed. Installed Operating

No. of working days in a month : &

No. of shifts in a day. :12.3 Locational advantages of existing and/or

proposed premises with reference to i) absence of civic restrictions.ii) Proximity to the source of raw materialsiii) Market of the productiv) Availability of

(a) Power (b) Water(c) Labour(d) Transport

v) whether clearance has been obtained :obtained from the Pollution ControlAuthority.

12.5 LAND & BUILDING

Area/Plinth Area(in sq.metres)

Value(in 000s of Rs.)

Existing Proposed Existing ProposedFactory LandFactory Building Ancillary BuildingOpen Storage Space

12.6 Type of soil and load bearing capacity(enclose test report)

Enclosure:

a) certified Xerox copy of sale / lease deedb) certified Xerox copy of the Government order converting the land into industrial

land, if applicable. c) locational map d) certified Xerox copy of the site plan of the land and blueprints of the

buildings duly approved by corporation / municipal / panchayat.

12.7 PARTICULARS OF MACHINERY & OTHER FIXED ASSETS

As per Annexure II

12.8 Necessity & purpose for the proposed :investment/addition to factorypremises/machinery(in case where suchinvestment is intended) for achievement of the anticipated turnover.

12.8 RAW MATERIALS/COMPONENTS (Please mention about the imported andindigenous items separately)

Name / Brief Description of the Items.

A B C Dm.s.round/hex m.s.flat

Quantity RequiredSources of SupplyMinimum Purchase Quantity

Lead/Procurement TimeWhether available throughout the yearIf answer to the above is no, then no. of months it is available.

13. UTILITIES (Give comments on requirement, availability, adequacy, qualitative aspects etc.)a) POWER:

Contracted Load Connected Load

Future power consumption (in no. of units)per month stand-by Arrangements Gen Set 60 KVA(Enclose certified xerox copy of sanction for power connection)

b) WATER :

(Enclose certified copy of sanctionfor water connection)

c) FUEL :

d) OTHERS (specify)

14. QUALITY CONTROL14.1 Details of arrangement made for quality control. If EPO/ISO

specifications are followed, no. of BIS/EPO/ISO standards and the particulars thereof should be provided.

14.2. Particulars of R & D activity Proposed :

15. ECONOMIC FEASIBILITY Marketing (mention separately for each product).

15.1 Whether the product is reservedExclusively for the SSI Sector :

15.2 Name of the Major customers :

15.3 Region/Area where the product is/ 15.4 Extent of competition & No.

of units engaged in similar linein the area.

15.5 How does the units meet/proposeon the competitive advantages enjoyedby the unit)

15.5.1 In price and quality, how does the unit’s product compare with those of its competitors.

15.5.2 Is the unit selling direct to its customers?If so, please furnish details like salesForce, showrooms, depots, etc.

15.5.3 If a selling/distribution agency has beenappointed, its name, period of contract,commission payable, period by which the bills will be paid by it, etc.(enclose copies of agreement, wherever such agreement has been entered into).

15.6 Nature and volume of orders/enquiries onhand (certified Xerox copies to be furnished)

15.7 If the unit is export oriented, please furnishexporter code No., if allotted, and relevantdetails as per the following details in the preceding three years:-

Code No.3096005362 Name of the ProductExported

Name of the Country where Exported

F.O.B. Value in US $

Fastnrs/nuts/bolts etc

16. Cost of Project (Please furnish estimates of cost of project under the following heads.(Indicate the basis for arriving at the cost of project)

[In 000s of Rs.]

Sl.No. Particulars Already incurred

To be incurred

Total Cost

A. Land including developmentB Building & Other Civil WorksC Plant & Machinery

1) Indigenous2) Imported

D Essential Tools, Spares & AccessoriesE Testing EquipmentF Miscellaneous Fixed AssetsG Erection/Installation ChargesH Preliminary ExpensesI Pre-Operative ExpensesJ Provision for Contingencies

1. Buildings2. Plant & Machinery3. Other Fixed Assets

K Margin for Working Capital Required.L TOTAL

17. Means of Financing (Please furnish details of sources of finance for meting the cost under the following heads)

[In ‘000s of Rs.]Sl.No. Particulars Amount

already raised

Amount proposed to be raised.

Total

A. Capital (specify resources contributing capital)

B ReservesC Term Loans (give full particulars)D Unsecured Loans and Deposits

(indicate sources, rate of interest, repayment period, etc.)

E Deferred Payment Arrangements including Supplier’s Credit.

F. Subsidy - Central Govt. - State Govt.

G. Seed Capital (indicate sources)H Internal Cash AccrualsI. Other Sources (specify)J. TOTAL

17.1 In case internal accruals are taken at sourceo finance explain the basis for estimationof internal accruals by means of a statement.

17.2 Indicate sources from which expenditurealready incurred has been financed.

17.3 Promoter’s contribution to the project as% of the total cost.

(Please furnish list of persons/firms who would be contributing to the promoters’share of the capital and the respectiveamounts and their relationships)

18. Schedule of Implementation. Please indicate the progress made so far in the implementation of the project and furnished the schedule of implementation as follows:

ALREADY RUNNING UNITDate of Commencement

Expected Date of Completion

a) Acquisition of Land.b) Development of Landc) Civil works for Factory building, Machinery Foundation, Administrative building.

d) Plant & Machinery - Imported Indigenouse) Arrangement for power.f) Arrangement for waterg) Erection of equipmenth) Commissioningi) Initial Procurement of Raw Materialj) Trial runs k) Commercial Proudction

19. Future Projections (to be given for the next three years)Please furnish data on

19.1 Projected profitability as per Annexure III.19.2 Projected cash flow statement as per Annexure IV.19.3 Projected balance sheet as per Annexure V.19.4 Working Capital Requirement as per Annexure VI.

Percentage of Cash Sales in Total SalesPeriod in which payment is received in respect of credit salesAverage credit available on purchases

20. Financial Assistance Required 20.1 Rupee Loan20.2 Foreign Currency Loan.20.3 Term Loan.

20.4 Working Capital (as worked out in Annexure VI)

20.5 Non – Fund Based Limits, i.e. other forms of Assistance (e.g. L/Cs, Bank Guarantees, etc)

21. Repayment Programme22. Details of Securities to be offered.22.1 Primary (working capital and term loan:

securities to be indicated separately).

22.2 Collateral, if any (full details)

22.3 Details of guarantor(s) 22.3.1 Name

22.3.3 Occupation (if in service, name &

Address of his / her employer)22.3.4 Details of Moveable & Immovable .

Property(ies) owned by him/her and Other dependent family members.

22.3.5. Details of any similar guarantee, if anygiven to other institutions.

23. Whether any Government enquiry proceedings or prosecution has beeninstituted against the unit or its proprietor/partners/directors for anyoffence ?If so, please give details.

24. Details of pending litigation, if any, against and by the unit

25. Please indicate whether the proprietor/any of the partners/promoters/directorshave at any time declared themselves as insolvent. If so, details thereof.

I/We certify that all information furnished by me / us is true; that I / we have no borrowing arrangements for the unit with any Bank except as indicated in the application; that there is no overdues / statutory dues against me / us promoters except as indicated in the application; that no legal action has been / is being taken against me / us / promoters, that I / We shall furnish all other information that may be required by you in connection with my / our application; that this may also be exchanged by you with any agency you may deem fit; and you, your representatives, representatives of the Reserve Bank of India /. National Bank of Agriculture & Rural Development / Small Industries Development Bank of India / Deposit Insurance & Credit Guarantee Corporation or any other agency as authorized by you, may, at any time, inspect / verify my our assets, books of accounts, etc., in our factory / business premises as given above.

Date:

Place: _______________Signature of the Borrower( Name & Designation )

Encls: Certified Xerox Copies of :

a) Balance Sheets with Trading and Profit & Loss Account for the last three years.b) Memorandum and Articles of Association, Certificate for Commencement of

Business.c) Income Tax, Wealth Tax Returns and assessment orders for the three years, for

the unit as well as proprietor/partners/directors.d) Sales Tax Returns for the last three years.

UCO BANKHead Office: 10, B.T.M. Sarani, Calcutta – 700 001

Annexure – I.BIO – DATA FORM

Details of Proprietor/Partners/Managing Partner.Promoters/Directors/Managing Director

(Please indicate inter-relationship, if any, among the partners/directors/promoters)(Please use separate sheet for each person)

1. Full Name :

2. Name of the Father/Husband :

3. Age :

4. Sex :5. Whether belongs to Scheduled :

Castes/Scheduled Tribes/MinorityCommunity.

6. Are you an Ex-Serviceman: :

7. Ration Card No. and Name of the Issuing Office :

8. Passport No. :

9. Address (Office) : (Tele.No.) :

(Permanent Residence) :

10. Academic Qualification :

11. ExperienceYears Employer Designation Last Salary Drawn

12. Functional responsibilities in the Unit:

13. Capital / Loan Contribution in the Unit: At the Beginning At Present31.03.

14. Reasons for joining/establishing :the unit (please mention about themotivating factors)

15. If associated as proprietor / partner / director / shareholder with concerns other than the applicant unit, please furnish following details separately for each concern by way of enclosures.

15.1 Name and address of the branch/ :unit associates/identical concern.

15.2 Activity of the concern. :15.3 Functional responsibility in that concern:15.4 Capital / Loan Contribution :15.5 Name of the associate concern’s :

Banker and their address15.6 Aggregate credit facilities enjoyed :

by the concern.15.7 Security offered by the concern :

for its borrowing.15.8 Working results of the units for the :

past three years.

16. Personal Assets and Liabilities.

16.1 Immovable property details like land/:Buildings, location, date of acquisition,Cost, present value etc.

16.2 Other Assets

16.3 Personal Liabilities, if any :(including guarantees / acceptancegiven)

17. Any other relevant information. :

Place: SignatureDate :

UCO BANKHead Office: 10, B.T.M. Sarani, Calcutta – 700 001

Annexure – II

DETAILS OF EXISTING FIXED ASSETS

A. Land

1. Location

2. Area3. Whether Freehold or Leasehold.

4. Purchase Price of Land if owned

5. Rent in case of leased land

6. Terms of lease

7. Ground Rent payable per year

B. Building1. Location2. Whether owned or leased

3. Purchase price of Building if owned

4. Rent in case of leased/rented premises .

5. Terms of lease.

___________________________________________________________________________Structure Type of Dimensions Area Actual Date of

Structure (Sq.m.) Cost Erection (Indicate “P” if (Rs.)

Permanent)___________________________________________________________________________1. Workshop2. godown3. Administrative4. Other Buildings_______________________________________________________________________

In case the assets have been revalued or written up at any time during the existence of unit, furnish full details of such revaluation together with the reason thereof.

Particulars of Buildings proposed to be constructed NIl

Built-up Area (in Metres)Sl.No.

Description of each building

Type of construction

Length Breadth Average Height

Total Floor in sq.m.

Rate of construction per mtr.

Estimated cost of each building

Expected date of completion

Note:- 1. In case contract is awarded for construction of building, furnish details of such as name of contractor, amount of contract, etc.

2. Other approvals from Inspector of Factories, Drug Controllers, etc., if any, should be enclosed.

3. Please enclose a plan showing layout of Machinery.

Particulars of MachinerySl. No.

Name of Machinery and specification

Second Hand / New

Name of Manufacturer/ Fabricator (Place of country and origin, if imported)

Date of acquisition/ Date of placement of order (actual/ expected)

Expected Date of Delivery

Invoice Price including taxes for indigenous machinery CIF for imported machinery

Estimated expenses of insurance, freight, installation import duty

Total cost.

1. Existing Machiner1.1 Indigenous1.2 Imported

2. Proposed to be acquired2.1 Indigenous2.2 Imported

1. Quotation/Catalogues/Invoice and other details in respect of each machine to be furnished.

2. If second hand machinery, valuation report regarding age, performance and value from competent valuer to be submitted. Also please indicate reasons for going in for second hand machinery and its depreciated value.

3. In case of imported machinery, please indicate mode of payment and price of the machinery in foreign currency

4. In case the assets have been revalued or written up at any time during the existence of unit, furnish full details of such revaluation together with the reason thereof.

UCO BANKHead Office 10, B.T.M. Sarani, Calcutta – 700 001

Annexure – IIIPROJECTIONS OF PERFORMANCE, PROFITABILITY ANY REPAYMENTBreak-even point Break-even Quantity:% of installed capacity Break-even Value :

(Figures in 000s of Rs.)Ist Year 2006

2nd Year 2007

3rd Year 2008

4th Year2009

5th Year2010

A. Production during the year (Quantity) % utilization of Installed Capacity

B. Sales1. Sales Including all misc. 2. Less Excise3. Net SalesC. Cost of Production1. Raw Material Consumed2. Power and Fuel3. Direct Labour and wages4. Consumable Stores5. Repair & Maintenance6. Other Manufacturing exp7. Depreciation/ Development Rebate ReserveTotal Cost of Production8. Add: Opening stock-in-process and finished goods9. Deduct: closing stock-in-process and finished goodsD. Cost of SalesE. Gross Profit (B-D)F. Interest on

1. Term Loans2. Working Capital3. Other Loans, if any.

G. Selling, General and Admn. ExpensesH. Profit before Taxation [E-(F+G)]I. Provision for TaxesJ. Net Profit (H-I)K. Depreciation added backL. Net Cash Accruals

UCO BANKHead Office: 10, B.T.M. Sarani, Calcutta – 700 001

Annexure – IVCASH FLOW STATEMENT

[figures in 000s of Rs.]Construction Period

Ist Year 2nd Year2007

3rd Year

2008

4th Year2009

5th Year 2010

A. Sources of Funds1. Cash Accruals (viz. Net Profit before Taxation (item H of Annexure-III) to which shall be added interest (item F of Annexure III)2. Increase in share capital3. Depreciation4. Increase in long term loans/debentures5. Increase in Current Liab6. Decrease in Current Asse7. Increase in Unsecured loans and deposit8. Increase in bank borrowings for w.c.9. Sales of Fixed Assets/ inv10. Others (specify)Total Sources (A)B. Deployment of Funds1. Preliminary and Pre- Operative Expenses2. Increase in Capital exp.3. Increase in current assets

3.1 Inventories3.2 Others

4. Decrease in long term loan/debentures5. Decrease in Bank.Borrgs6. Increase in C.Assets7. Decrease in Current Liabi8. Interest9. Taxation10. Dividend (amount) (rate)11. Other expenses (specify)Total Deployment (B)C. Opening BalanceD. Net Surplus (A – B)E. Closing Balance

UCO BANKHead Office: 10-B.T.M. Sarani, Calcutta – 700 001

Annexure – VPROJECTED BALANCE SHEET

[figures in 00s of Rs.]1st Year2006

2nd Year2007

3rd Year2008

4th Year2009

5th Year2010

A. Liabilities

1. Equity Share Capital2. Term Loans3. unsecured Loans4. Bank Borrowings for Working Capital5. Other LiabilitiesTotal LiabilitiesB. Assets1. Gross Block2. Depreciation3. Net Block4. Investment Security5. Current Assets6. Cash and Bank BalancesTotal Assets

UCO BANKHead Office: 10, B.T.M. Sarani, Calcutta – 700 001

Annexure – VI.ASSESSMENT OF WORKING CAPITAL REQUIREMENTS

[figures in 000s of Rs.]Ist Year

2nd Year 3rd Year2008

4th Year2009

5th Year

1. Current Assets1. Raw Material1.1 Imported (Month’s Consumption)1.2 Indigenous (Month’s consumpt)2. Other Consumable Spares3. Stocks-in-Process (Month’s cost of production)4. Finished Goods Month’s Cost of Sales5. Receivable other than Export and Deferred Receivables (including Bills Purchased/Discounted by Banks)6. Export Receivables (including Bills Purchased/ Discounted by Banks)7. Advances to Suppliers of Raw Materials and Stores/ Spares/Consumables.8. Other Current Assets including Cash and bank balances and deferred receivables due within one year (furnish individual details of major items)Total Current Assets (1)II. Current Liabilities1. Creditors for purchases of raw materials and stores/ spares/ consumables (month’s Purchase)2. Advances from Customers3. Accrued Expenses4. Statutory Liabilities5. Other Current Liabilities - Demand Loan (Furnish individual details of major items)Total Current Liabilities (II)III. Working Capital Gap (I – II)IV. Margin for Working CaptialV. Bank Borrowings

ANNEXURE – IUCO BANK

MEMORANDUM FOR SANCTION / RENEWAL / ENHANCEMENT OF LIMIT WITH FUND BASED EXPOSURE INCLUDING TERM LOAN ABOVE RS. 10.00 LACS BUT BELOW RS. 100.00 LACS

Date:

1. ACCOUNT PROFILE

a) Borrower :b) Constitution :c) Date of Incorporation :d) Description of Activity :

Existing :Proposed :

e) Location : Regd. Office :Controlling Office :Factory :

e) Name of the Director(s) / Partners:

Full Name Age Permanent Address Worth (in lacs)

Any Director/Partner included in the list of i) Defaulters :ii) Willful Defaulters :iii) ECGC Caution List :

(if yes, details thereof withclarification, if any)

g) Asset classification (IRAC Status): Standardh) Whether the company or its Associate/ :

Group (Concern(s) Appear(s) in the ECGC’s caution list/ Defaulter/ Willful Defaulter’s List * If Yes, furnish details.

i) Dealing with Bank since :j) authority & Date of Last Renewal : k) authority & Date of Last Review : l) Value of the Accountm) Adverse Comments, if any, in the last :

Inspection/Audit Reportn) Whether all terms & conditions of :

the existing sanction complied with

o) Whether documents are in order :

2. BRIEF HISTORY:

3. PRESENT POSITION OF THE ACOUNT:

(Rs. / lacs)Nature of Facility

Limits Drawing Power Outstanding Balance 30.09.2008

Irregularity if any

CC HYPCC ADHOCCC BDCC EPCMTLFRBP

4. EXISTING LIMITS FROM OTHER BANKS(in case of takeover from other Bank)

NAME OF THE BANK :N.A.

(Rs. / Lacs)Nature of facility Limit Outstanding as

on……………..Irregularities, if any

Fund basedNon-fund basedTotal

5.(A) PARTICULARS OF TERM LOAN AVAILABLE FROM FI/BANK AS ON………NIL

Name of the FI / Bank Limit Present Outstanding

Status of the Account

(B) GROUP COMMITMENTS, IF ANY, WITH OUR BANK:NIL

(Rs. /Lac)Name of the Account

Investment Exposure

Overseas Exposure

Credit Exposure (Domestic) Total Exposure

Existing Limit Existing Limit

Existing Limit Proposed Limit

FB NFB Total FB NFB Total

(C) DETAILED POSITION OF ALL GROUP ACCOUNTSN.A. (Rs. In Lacs)

Name of Group CompanyName of present BankerIRAC Status as per last audited Balance SheetCredit Rating as per last audited Balance Sheet

6. Proposed Limit(s) from our Bank:(Rs. / Lac)

Nature of facility Existing Limit Proposed LimitCC HYPCC BDCC EPCFRBPMTL7. SALIENT FINANCIAL INDICATORS & WORKING RESULTS

(Rs. / Lac)PAST 2 YEARS ACTUALS Current year Next Year 31.03.07 31.03.08 31.03.2009 31.03.2010

a) Paid-up Capitalb) Reserve & Surplusc) Tangible Net worth (excl.revaluat Reserve+ loss+inte tangible Asset)d) Long Term Loane) Net Fixed Assetsf) Non Current Assetsg) Inventoriesh)Receivablesi) Other C. Assetsj)Total current assetsk) Current Liabilitiesl) Bank Borrowingsm)Net Working Capitaln) Debt. Equity Ratio o) Current Ratio

B Past 2 years Actuals Current Year (Estimated)

Next Year (Projected)

a) Gross Salesb) Net Salesc) Operating Profit/Lossd) Other incomee) Profit before interest tax and depreciation (PBDIT)f) Depreciationg) Interesth) Taxi) Profit after Tax (PAT)j) Cash accrualsk) Increase in Net Sales (%)l) % of Gross Profit to net salesm) PAT to Net Sales (%)

8. COMMENTS ON FINANCIAL POSITION AND WORKING RESULTS.TURNOVER :

PROFITABILITY: .

LIQUIDITY :

9. COMMENTS ON STATUTORY PAYMENTIncome TaxSales TaxProvident FundEmployees State Insurance Corporation.Others.

10. ASSESSMENT OF WORKING CAPITAL(Rs. In Lacs)

Actuals 31.03. Estimates 31.03 Projections 31.03.a) Sales (Gross) Sales (Net)b) Cost of Productionc) Cost of sales (incl. Depreciation)d) Raw Material Consume) % cost of Production/ Salesf) % Cost of Sales / Sales

g) % Raw material consumption to cost of pro

11. COMPUTATION OF WORKING CAPITAL(either of the methods A or B as mentioned below may be applied)

(A) On the basis of holding of Current Assets & Liability (2nd Method of Lending)

Actuals31.03.

Actuals 31.03.

Estimates 31.03.

Estimates 31.03.

Projections 31.03.

Projections 31.03.

Raw MaterialsConsumable, Spares & StoresWipFinished goodsReceivablesOther current assetsSundry CrsOther C.L.

Total Current Assets Less Current Liability (S/Creditors+Other Current Liability)1. Working Capital Gap (WCG) 2.Mimum stipulated NWC (25% of WCG ) 3. Actual/projected NWC 4. Item (1) – Item (2) 5. Item (1) – Item (3) 6. Permissible Bank Finance (Item 4 or 5 whichever is lower)Comments on the holding levels:.

(B) On the basis of Turnover (Turnover Method)

GROSS SALES :(i) 25% of Gross Sales :(ii) 5% of Gross Sales :(iii) Projected NWC : (iv) Item i – ii :

(v) Item i – iii : (vi) Permissible Bank Finance :

(Item 4 or 5 whichever is lower)

13. APPRAISAL OF TERM LOAN:1. Brief description of the project & company’s requirement for the same:

(It should be clearly mentioned whether it is expansion or modernization or new project) The unit proposes to renew the existing term loan of Rs. 18 lacs at run down balance of Rs. 13.79 lacs as on 30.09.2008.

Whether the project has been appraised by outside agency. If yes, summary of the appraisal report.

II. Financial Dimension of the Project

(1) Cost of Project & Means of Finance : already running project.

A) Cost of ProjectLand (including development) Rs.Building & Other civil work Rs. sPlant & Machinery (imported) Rs.Plant & Machinery (indigenous) Rs.Other fixed assets Rs.Pre-operative & Preliminary expenses Rs.Provision for contingencies Rs.Margin for working capital Rs.Total Rs.

B) Means of FinancePromoters’ Contribution : Rs. Margin money from internal accurals : Rs. Subsidy from : Unsecured loans : Rs. Other Sources :Term Loan : Rs. Total : Rs.

(2) Projected Balance Sheet (for the entire period of TL)

N.A. (Rs.’000)LIABILITIES

1st Year 2nd Year 3rd Year 4th year 5th Year

CapitalReserve & SurplusUnsecured LoanSecured Term LoanBank

BorrowingShort Term LiabilitiesTotalASSETSGross BlockDepreciationNet BlockInvestmentsCurrent AssetsOther non C.A.Total

3) Projected Profitability & Cash Flow (for the entire period of TL)

(A) Profitability N.A. (Rs./’000) ITEM Ist Year 2nd Year 3rd Year 4th Year 5th Year

a) Salesb) Less: Excise Dutyc) Net Sales (a-b)d) Other Incomee) Gross Profit (c+d)f) Taxg) Profit after Taxh) Interest on Working Capitali) Interest on Term Loanj) Depreciationk) Cash Accruals (g+j)

(B) CASH FLOW STATEMENT(Rs.’000)

1. SOURCE OF FUND

1st Year 2nd Year 3rd Year 4th Year 5th Year

Profit after TaxDepreciationMisc. Written offSale of assetsIncrease in CapitalIncrease in Term LoanIncrease in Current LiabilitiesTOTAL2. DISPOSITION OF FUNDIncrease in Fixed assetsRepayment of Term loanIncrease in Current AssetsDecrease in Current liabilitiesDecrease in capitalTotal(1-2)

Analysis of Balance Sheet & Profitability :

(4) Calculations:

(a) Break even Point (BEP) = ____Fixed Cost____Contribution per unit

Contribution = Sales – variable cost.Profit = Contribution – Fixed Cost.

(b) Margin of Safety = Actual Sale – BEP (Sale) x 10 Actual Sale

(c) DSCR : As per separate sheet enclosed. Average DSCR

Net Profit + Depreciation + Tax + Interest on Term Loan + Lease RentalInstalment Term Loan + Interest on Term Loan + Lease Rental

(5) Capital Budgeting(a) Pay Back Period : Cost of Project______

Average inflow of Cash(b) Net Present value : N.A.

Year Cash Cash In-flow Net Cash Discounting Present

Outflow Accrual Factor @ Value of the Net Flow (4 x 5)

(1) (2) (3) (4) (5) (6)1st 2nd

3rd

4th

5th

(c) Internal Rate of return :(To be calculated by applying a discounting rate at which NPV of cash outflow is

equivalent of NPV of Cash Inflow)

(6) Project Indices:DSCR Debt Equity Ratio Pay back period IRRBreak even pointReturn on capital employed.Interest coverage RatioAnalysis of the different ratios:

(7) Quantum of loan Already sanctioned Rs. 18 lacsItems of cost of project Amount Margin Permissible Bank

FinanceLand & Site developmentFactory buildingPlant & MachineryTechnical Knowhow.Misc. Fixed AssetsPreliminary expensesPre-operative expensesIntt. During construction periodProvision for contingencyMargin for working capitalTotal

(B) Economic Feasibilitya) Name of the major suppliers. b) Region/Area where the product will be sold : c) Extent of competition and other units engaged :

In the similar activity in the region/area

d) Volume of orders in hand. ) Availability of raw material : f) Position of labour supply in the area : g) Availability of power : h) Note on marketing tie up arrangement : i) Manufacturing process :

j) Size of the plant :k) Details on infrastructure with reference to

The project : Access to the site & transportation : Power supply : Water supply : Availability of Labour : Availability of raw material :

L) Statutory approval such as clearance of Pollution Board :

Implementation of the project (stages to be mentioned) : Commencement of commercial production : Risk factor and step to check :Margin:Repayment period: Rate of interest: Brief description of primary security :

Brief description of collateral security : Recommendations:Already sanctioned term loan.

ADDITIONAL INFORMATION FOR RENEWAL OF TERM LOAN:a) Whether the implementation of the project is

As per schedule Yes/NoIf no, reason thereof and expected date of Completion.

14. ASSESSMENT OF QUASI CREDIT (NON – FUND BASED) REQUIREMENTS:

A) BANK GUARANTEES: N.A.Assessment of requirement of Bank Guarantee :

a) Outstanding BGsb) Cancellation envisaged.c) Requirement incidental to regular operation.d) Requirement pertaining to contingent events.e) Requirement of BG (a-b) + c + d

B) LETTER OF CREDIT (LC) : N.A.Assessment of requirement of LC limit.

For procurement of raw material/stores/sparesa) Annual purchase b) Lead time c) Credit/Usance d) Total (b + c) e) LC required axd

365Note: In case no credit is available and the procurement has to be made under signed LC, no. of days against item no. (c) should be taken as Nil.

15. OTHER RELEVANT INFORMATIONa) Details of collateral security

b) Details of personal guarantee of Directors.

Bank official’s comments on conduct of the accounts:c) Whether accounts are regular., Also, furnish brief remarks about the conduct of

borrower.The conduct of the account is satisfactory.

d) Comments on LC, Guarantee limits utilization and development of LC and invocation of guarantee (if any)…………

e) Whether Term Loan instalments are paid as per schedule.

f) Whether necessary financial discipline is being observed by the concern in regard to submission of the statements etc. and if not, what steps have been taken:

g) When the stock / machinery was last inspected, State adverse features noticed, if any:

h) Major irregularities, if any, pointed out in inspection report/concurrent audit reports/statutory audit report.

16. Recommendation

…………………………. …………………………..Advance – in – Charge Branch Manager

UCO BANK::

,LudhianaCredit Rating Module

For Accounts with Total Fund and Non-Fund Based Exposure of Above Rs.25 Lacs and up to Rs.5 Crores

Annexture-CName of the CompanyGroup, if anyRating as on Industry Category (As per annexure A)Fund Based LimitOf Which, Term LoanNon Fund Based limitExisting/New/ Green Field Account*( *Strike out whichever are not applicable

MANAGEMENT –RATING AND EVALUATION Marks AwardedA Management Evaluation

(Rating Guidelines)ExistingAccounts

NewAccounts

Green fieldAccounts

a Integrity/commitmentExcellent-3, Good-2, Average-1, Poor-0

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b Financial Strengthi) Market Value of shares (as on the date of rating) of the company to its nominal value10 or more---35 or more but less than 10----22 or more but less than 5------1Less than 2 ------0

ii) Capacity of internal generation of funds: ROE=Profit after Tax/Total Equity (paid up capital)ROE greater than 100%--3ROE greater than 50% but less than 100%--2ROE >25% but <50%-------1ROE up to 25%-----0

iii) Total Net worth of the promoters excluding stake in the businessMore than 2 times the stake in the business---31 to 2 times the stake in business----20.5 to less than 1 time the stake in business—1Less than 0.5 times the stake in the business--0

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c Technical/Financial KnowledgeExcellent-3, Good-2, Average-1, Poor-0

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d Organizational Structure/Succession PlanExcellent-3, Good-2, Average-1, Poor-0Management Evaluation ( Rating guidelines)

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e Selling and Distribution NetworkExcellent-3, Good-2, Average-1, Poor-0

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f Experience of Directors& PromotersExcellent-3, Good-2, Average-1, Poor-0

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g Litigation cases pending against company/Directors --

Excellent-3, Good-2, Average-1, Poor-0h Market Reputation& Past Track Record

Excellent-3, Good-2, Average-1, Poor-0--

Sub Total- Management Evaluation (Max 27) --2 Conduct of Bank AccountA Account Operations

Account Running regular-10Account remained irregular for 15 days-8Account remained irregular for 16-30days-6Account remained irregular for 31-45days-4Acctt. Remained irregular for more than 45 days-0

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B Compliance of terms/conditions of sanctionAll Conditions Complied-5Conditions relating to Security Creation complied other not-4Conditions other security creation complied-2Conditions have not bee complied-0

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C Discipline in timely submission of data/informationTimely submission- 5Delayed submission up to 15days-4Delayed submission 16-30 days-3Delayed submission 31-45 days-2Delay of more than 45 days- 0

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3 Management of Inventory & receivable(Inventory+Receivables)/ Net sales per month< 3 months-53-<4 months-44-<5months-35-<6months-26 months and above-0

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4 Reliability of Receivables& Valuation of InventoryComments given by Bank inspectors/Stock AuditorSatisfactory-5Raises some doubts but no shortfall indicated-3Indicates some shortfall up to 5%-1Indicative of poor quality of receivables and inventory-0

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5 Transparency in Accounting StatementsAccounting practice &Qualification by AuditorsNo Qualification from Auditors-5Qualification having no financial implication-4Qualification having financial implication-3Unaudited balance Sheet certified by the borrower-2Others-0

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Total Marks Obtained -- --Max Marks -- --Marks out of 100(%)=A -- --

B Operational Performance &Financial Ratios Based on Based on Based on

(Rating guidelines) BS/PL 31st march 2008

BS/PL 31st march 2008

Projected BS/PL

1 Sales/Break Even Sales=(Sales-Variable cost)/Fixed costMore than 1.67=15More than 1.3 but up to 1.67=12More than 1.1 but up to 1.33=08More than 1.0 but up to 1.1=041.0 or less than 1.0=0

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2 Current Ratio= CA/CLMore than 1.33=10More than 1.25 but up to 1.33=8More than 1.17 but up to 1.25=5More than 1.0 but up to 1.17=21.0 or less than 1.0=0

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3 Return on Capital Employed(PAT+Interest/(Net Worth+Long Term Borrowings+ Bank Borrowings)More than 15%=10More than 13% but up to 15%=8More than 11% but up to 13%=5More than 9% but up to 11%=29% or less tha 9%=0

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4 Debt Service Coverage Ratio (DSCR)(NP+Dep.+Interest on Term Loan)/(Annual Repayment of Term Loan+Interest on TL)More than 3=15More than 2.5 but up to 3=12More than 2 but up to 2.5=08More than 1.5 but up to 2=041.5 or below=0

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5 Long Term Debt/Equity Ratio= Long Term Debt( not including proposed long term borrowings)/Tangible Net Worth( including subordinated interest free borrowings from promoters)More than 2.5=0More than 2 but up to 2.5=3More than 1.5 but up to 2=6More than 1 but up to 1.5=81 or below=10

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6 Total Outside Liabilities/Total Net Worth= Total Out side Liabilities(not including proposed long term& short term borrowings)/tangible Net Worth(including subordinated interest free borrowings from promoters)More than 3.5=0More than 3 but up to 3.5=3More than 2.5 but up to 3=6More than 2.0 but up to 2.5=82 or below=10

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7 Achievement of Net Sales projections --

Actual Net Sales Achieved/Net Sales Projected for the yearMore than 90%=10More than 85% but up to 90%=8More than 80% but up to 85%=6More than 75%but up to 80%=475% or below-0

8 Achievement of Net Profit ProjectionsActual Net Profit Achieved/ Net Profit Projected for the yearMore than 90%=5More than 85% but up to 90%=4More than 80% but up to 85%=3More than 75%but up to 80%=275% or below-0

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9 Operations in Non-Fund Based Loan Limits(Where L/C and/or B/G limit is less than 5% of Fund Based limit, ignore it)Borrower arranges funds whenever L/C or B/G liability falls due=10Borrower arranges funds whenever liabilities devolve but takes Max. 15 days in meeting his liabilities=6Borrower generally delays in arranging funds whenever liabilities devolve but delays up to 30 days=4Borrower generally delays in arranging funds whenever liabilities devolve by more than 30 days=0

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10 Diversion of FundsCompany is not diverting any funds=10Company has diverted funds maintaining CR and DE ratio within the Bank’s accepted norms=7Company is diverting funds from short term to long term to meet emergent needs in the company itself= 4Company diverting funds to its allied associate concern by affecting its CR and DE ratio beyond the Bank’s accepted norms=0

11 (Net Profit/Net Operating Cash Flow)Net Op. Cash Flow= +/(-) OP/(OL) before extraordinary items+ Dep.- Taxes+/(-) Increase/(Decrease) in NWC= Net Operating Cash Flow.Ratio is less than0.75=10Ratio is 0.75 or more but less than0.90=7Ratio is 0.90 or more but less than 1=4Ratio more than 1=0Net profit is Nil or negative=0Net Operating Cash Flow is Nil or Negative=0Marks obtainedMax MarksMarks out of 100(%)=(B)

Management RatingOperation/Finance Rating

TOTAL WEIGHTED SCORERATING Rating, based on Total Weighted score should be as given in the table belowWeighted Score Equivalent

Rating90% and more 80% to less than90% 70% to less than 80%60% to less than 70%50% to less than 60%Below 50%