Download - Pnb Process Note

PUNJAB NATIONAL BANKVatva, Ahmedabad

SANCTIONING AUTHORITYSc,M

The proposal falls under the powers of Senior Manager (Branch) on account of total exposure of Rs.60.00 (40Termloan + 20 wc) lacs to the borrower.

Reference No./Date:

1. Name of the Borrower : M/S NANDI APPARELS PRIVATE LIMITED Registered Office : Shop No 106, First Floor, Ambaji Textile Market Bhilwara 311001 Controlling Office : 41-46, 2nd Floor, Yash Niketan Complex, Nr Khokhra Circle, Khokhra, Ahmedabad

(Rs. in Lakh)GIST OF THE PROPOSAL

A. Sanction of Working Capital Limits

Existing ProposedFB 0.00 20.00NFB 0.00 0.00

B. For Term Loan Purpose Part finance of Fabric

MachineryCost of Project 66.81Total Debt 50.00Promoter’s contribution 23.12Proposed TL (our share) 40.00Unsecured Loan 10.00DER 2.28Repayment Period 20 QuartersDoor to door tenor 21 Quarters

C. Approval of ROI/ Service charges as under:- Facility Existin

gProposed Applicable

rateIncome Earned

Last Year

Current year upto_______

Rate of interest CC N.A. 12.50% -- -- -- --Upfront Fee

As Per H.O. Guidelines-- -- -- --

Processing FeeOther charges, if any

-- -- -- --

D. Approval of other Issues, if any: Nil

Whether fresh/renewal/ enhancement

Fresh

Asset Classification as on________ and last PMS score

NA

Credit Risk Rating by Bank is @@ indicating Average Risk

Rating Date of Rating

Score ABS Reasons for degradation

PresentPrevious -- -- -- -- --


Rating from External Agency (The external rating should be mapped to the internal rating)

Facility rated

Rating Date of rating

Rating Agency

Remarks

NAWhether Agriculture/Retail/ SME/Others (Please specify)

SME

a) Whether Sensitive Sector – Real Estate/Capital Marketb) Applicable Risk weight

No

Consortium/Multiple Banking Sole BankingLead Bank N.A.PNB’s Share % 100.00%Date of application

Date of receipt of proposal At BO/CO/HO

Date of clarifications, if any, received at CO/HO

Date of placing the proposal before competent authority

Remarks

13.11.2010

13.11.2010

Date of last sanction & authority/’In Principle’ ConsentCustomer ID No.Activity code (as per ladder)

PART – I

2. Borrower’s Profile a. Group Name Nandi Apparels Private Limitedb. Address of Regd./Corporate Office 41-46, 2nd Floor, Yash Niketan Complex

Near Khokhra Circle, KhokhraAhmedabad(Gujarat) INDIA

b. Institutionc. Constitution and constitution code as per

ladderPrivate Limited Company

d. Date of incorporation/ Establishment 01/02/2010e. Dealing with PNB since First timef. Industry/Sector Textile Industry

g. Business Activity (Product)/Installed Capacity.

Manufacturing of Casual & Formal Trousers

3. Directors (S/Shri)

Name and Designation Address/Mobile No./e-mail address of Main Directors/Guarantor Directors/Key persons

Whether Promoter/ Professional /Nominee

Mr. Prakash M. Goyal - Director 18, Ashray Bunglows, CTM Cross Roads,Nr. Express Highway,Ahmedabad.

Promoter

Mrs. Uma P. Goyal - Director 18, Ashray Bunglows, CTM Cross Roads,Nr. Express Highway,Ahmedabad.

Promoter


Mr. Mohanlal Goyal - Guarantor 1244, Bhilwara Ward No. 48,Basant Vihar, Bhilwara,Rajasthan.

Guarantor

If any of them, in the list of Caution Advices circulated by the Bank from time to time/RBI's/Wilful defaulters' list/Caution List of ECGC/

No

If any one of them connected in the past with any NPA/OTS/Compromise/unscrupulous defaulters

No

a) If any of them, related to Directors/Senior Officers of PNB:

No

b) i) Management Change since last sanction, if any

Nil

c) i) Report on due diligence carried out in terms of L&A Circular No. 170 dated 25.10.2008 and comments on adverse features, if anyii) Concompanyation that CRs have been compiled/reviewed as per extant guidelines iii) Concompanyation that CRs have been drawn from CIBIL Database and comments on adverse features, if any

f) Share Holding Pattern as on:Name of the Promoters/Major Share holders

No. of shares

Amt. in Rs % Holding

Mr Prakash M GoyalMrs Uma Prakash GoyalTotal

g) Whether Shares pledged to any Bank/FI/others NoIf yes, Percentage of shares pledged N. A.Institution N. A.Purpose N. A.

h) Brief history

4.A Facilities Recommended : (Rs. in lakh)

Nature Existing Proposed Secured/Unsecured along with the basis thereof(As per RBI’s guidelines)

Fund Based

CC (Hypothecation of stocks and book debts)

0.00 20.00 Secured

Fund Based Ceiling 0.00 20.00Non Fund BasedILC/FLC 0.00 0.00Non Fund Based Ceiling 0.00 0.00Term Loan 0.00 40.00 SecuredTOTAL COMMITMENT 0.00 60.00


4.B Our Commitment and Maximum Permissible Exposure Norms(Rs. in Lacs)

Existing

Proposed %age of Bank’s Capital Funds as on 31.03.10Rs.

As per Exposure NormsAmount (%age)

Company 0.00 40.00Group

4. C Short Term Loans sanctioned by PNB in last 12 months, if any

Nil

4. D Details of facilities provided outside consortium including exposure on account of derivatives, if any

Nil

5.A Facilities from PNB Subsidiaries/Exposure by way of investment in Equity/Debentures/Derivatives/Foreign Exchange etc. :

Nil

5.B Term Loans from other Banks/Financial Institutions/Other Institutions - (including Lease, ICDs, Corporate Loans, Debentures etc.)

Nil

5.C Credit Rating by agencies {CRISIL/ICRA/CARE/FITCH INDIA} with purpose of such rating.

Nil (New Unit)

5.D Details of Working Capital Limits from the Consortium/Multiple Banking

Nil

6. Details of Group /Allied/Associate companies and the facilities sanctioned to them along with conduct of these accounts with our Bank/ other Banks and comments on adverse indicators, if any.


As per Appendix – I

7.A(i) Financial Position of the Company as on close of financial year for last three years and estimated for last year and projected for the next year

New Project under implementation hence the past data is not available. The estimated and projected financials are given below.

EST PROJ PROJ PROJ PROJ 2011 2012 2013 2014 2015Gross Sales Domestic including sales incentive 63.09 188.81 200.24 212.03 223.82Export Net sales 63.09 188.81 200.24 212.03 223.82%age growth of sales 6.05% 5.89% 5.56%Other Income 0.00 0.00 0.00 0.00 0.00Operating Profit/Loss 6.78 18.05 19.18 19.55 20.30Profit before Tax 4.70 10.92 13.05 14.43 16.18Profit after Tax 3.15 7.32 8.75 9.66 10.84Cash Profit/(Loss) 8.16 16.59 16.63 16.36 16.53Paid up capital 30.72 30.72 30.72 30.72 30.72Reserves and Surplus excluding revaluation reserve 1.75 8.41 17.08 27.40 36.53

Misc. expenditure not written off 0.00 0.00 0.00 0.00 0.00Accumulated losses 0.00 0.00 0.00 0.00 0.00Deferred Tax Liability/Asset 0.00 0.00 0.00 0.00 0.00Tangible Net Worth 33.03 39.35 46.59 52.26 58.10Unsecured Loans 10.00 10.00 10.00 10.00 10.00Total Borrowings (TOL) 74.32 65.26 57.50 49.70 41.91Secured 40.00 30.00 20.00 10.00 0.00Unsecured 10.00 10.00 10.00 10.00 10.00Investments 2.50 2.50 2.50 2.50 2.50Total Assets 107.35 104.61 104.10 101.96 100.01Out of which net fixed assets 61.80 52.53 49.65 42.95 37.26Net working capital 38.73 46.32 48.45 52.80 56.34Current ratio 1.33 1.59 1.65 1.78 1.89Debt equity ratio 2.25 1.66 1.23 0.95 0.72Operating Profit/Loss %age 10.74 9.56 9.58 9.22 9.07TOL/TNW 2.25 1.66 1.23 0.95 0.72Long Term Sources 15.59 15.13 12.36 11.53 10.45Long Term uses 8.00 13.00 8.00 8.00 0.00Surplus /Deficit 7.59 2.13 4.36 3.53 10.45short Term Sources 0.42 0.24 0.20 0.20 0.00Short Term Uses 8.02 2.36 4.56 3.74 10.45Surplus /Deficit (7.59) (2.12) (4.36) (3.54) (10.45)

7A (ii) Latest Key Fig.

7B. Brief discussion on Financial Indicators

Paid up capital/TNW


The proposed unit is being financed through combination of term finance from us, contribution of the promoters. However, we stipulate that the trust fund and Donation fund as margin shall be brought in as per the progress of the project.

7.C Capital Market Perception

N.A.

7.D Details of investment in Shares, Debentures, Units or investment of funds outside the business etc. (Along with comments in case of increase)

Nil

7.E Details of Liabilities not accounted for/Contingent liabilities

Nil

7.F Position of assessment of income tax/sales tax/wealth tax of the borrowing concern/partners/proprietor/promoter directors/guarantors

Paid Till Date

7.G Information on litigation initiated by other banks/FIs against the borrower as per latest Audited Balance Sheet, if any

Nil

7.H Overall likely impact of (7.C to 7.G) on the financial position of the borrowing unitNil

8. SECURITY

A. Primary

i) For Term Loan

Hypothecation of Plant & Machinery having overall cost of Amount Rs 60.68 lacs against the Term Loan given by the bank

B. Collateral (Information in respect of mortgage of IP to be given only in the following format:

Security Description Area in Sq M or Sq mtrs

Value Basis for valuation

Da te

Whether existing/ fresh

Last sanction

Present book value

Realisable value

NilTotal

NEC in respect of above IP is to be obtained from bank’s approved advocate and valid enforceable mortgage to be created before release of facilities.

i) Equitable/ Registered Mortgage of following IP

All the properties listed above are to be mortgaged with the respective registrar offices. ii) First/Second/Third charge/ Paripassu charge Nil iii) Personal /Corporate Guarantee


Guarantee by directors in their personal capacityName of Guarantor Relations

hip with borrower

Net Worth (Rs. In Lacs)

Immovable property

Date of confidential report

Prev.As at

Present Prev. As at

Present Prev. Present

Mr Mohanlal Goyal Father 65.68 30.00 12/11/2010

iv) Comments on changes, if any: NA

v) Status of creation of charge: NA

8. C Security Margin (Fixed Asset Coverage Ratio – for term loans) (Rs. In Lacs)Existing Proposed

Nature Book value FACR Book Value FACR on project completion

Primary -- L&B 455.96Other Assets141.04Total 597.00

100%

Collateral -- -- --Total -- -- 597.00

9. Position of Account as on NA, being a fresh case

10.A Conduct of the Account including details of terms & conditions not complied with. Comments on following should be given

Availment of limit, overdrawings, Routing of proportionate business in consortium, routing

of sale proceeds, honouring of commitment in non fund based facilities(details of LC/LG devolved/invoked with amount),

Regularity in submission of CMA data/ financial statement/QMS/Stock Statement.

The information regarding no. of cheques returned with amount involved due to financial reasons during the review period should be mentioned.

The amount/frequency of irregularity in the account during the review period should be mentioned.

NA, being a fresh sanction

10.B i) Value of the Account

NA, being a fresh sanction

10.B ii) Deposits including Escrow/TRA account with details Nil

10.C Review of the Account and Summary of serious irregularities pointed out by Bank’s Inspectors, Concurrent Auditors, Credit Audit & Review Division (CA&RD), RBI Inspectors, Statutory Auditors, observations of Stock Audit Report, Comment on Preventive Monitoring Score Trends, (and status of rectification of these irregularities)

As per Appendix – III10. D (i) CONCOMPANYATION

1. Compliance of last sanctioned terms N.A.2. Security documents are valid/duly vetted/enforceable


3. Proper charge on securities created4. Concompany that company/directors are not under bank/RBI/ECGC/ CIBIL

defaulters/caution list5. Concompany that payment of statutory liabilities is not in arrears6. Concompany that no litigation against/by the company is pending7. Corporate governance practices are being followed as per Auditor’s report8. Concompany that no deviations are made from usual norms/policy

guidelines 9. Concompany that Exposure is within bank’s internal ceilings/RBI prudential

norms

10.D(ii) AUDIT/INSPECTION/MEETINGS

Particulars Last date Remarks/Observations/Steps takena) Annual inspection

NA, being a fresh sanctionb) Stock auditc) Consortium meetingd) Closure of IR

10.E In case of audit conducted by RBI – Whether commented/special mentioned account – Details as per Appendix III (B)

NA

PART – II

11.A(i) Industry Rating as per RMD

A.(ii) Detailed Industry Scenario and Comments on management, production and marketing as well as Borrowers' diversification, expansion, modernisation programme

As per Appendix – IV

12. Present Proposal

Present proposal is for fresh sanction of Term Loan of Rs. 50.00 lacs, setting up a manufacturing unit for Casual & Formal Wear Trousers, Ahmedabad.

a) Justification for working capital sanction Not Applicable

i) Assessment of Fund Based Limits

ii) Justification for Fund based working capital limits proposedN.A.

b) Justification for Non Fund based limitsN.A. since the Trust has not applied for non fund based limits

c) Justification for term loan/DPG

(i) Purpose

To part finance for the purpose of Acquiring Plants & Machinery and other necessary assets required for production

(ii) A. Appraising agency

The project has been appraised by the branch


B. Whether vetted by any Technical Officer/ Other Official of Bank (Name and designation to be furnished).

No

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

PROPOSED MEANS OF FINANCE

EXISTING PROPOSE

D GRANDDESCRIPTION AS ON TO BE TOTAL 31/10/2010 RAISED Rs. Rs. Rs.1.Capital 5.00 25.72 30.72 2.Term Loan : 0.00 40.00 40.00 3. Unsecured Loan & Deposit 0.00 10.00 10.00

M/S. NANDI APPARELS PRIVATE LIMITED COST OF PROJECT (Rs. in lacs) Incurred Up PROPOSED GRAND MARGIN ELIGIBLE DESCRIPTION to TO BE TOTAL ON NEW TERM 31/10/2010 INCURRED LOAN Rs. Rs. Rs. % Rs. COST OF PROJECT 1. Land 0.00 0.00 0.00 100% 0.00 2. Factory building 0.00 0.00 0.00 100% 0.00 3. Plant and Machinery 5.00 55.68 60.68 25% 45.51 4. Furniture & Fixtures 0.00 6.13 6.13 25% 4.60 TOTAL CAPITAL EXPENDITURES 5.00 61.81 66.81 50.11 5. Working Capital Margin : 0.00 13.91 13.91 100.00 0.00 TOTAL : --> 5.00 75.72 80.72 50.11 TOTAL TERM LOAN PROPOSED 40.00


TOTAL : --> 5.00 75.72 80.72

(iv) Sources of Promoters’ Contribution and the time schedule as to when the funds will be brought.

(iii) Equity :The Directors will bring the amount of Rs 23.12 lacs and remaining will be financed through the way of Term Loan

(iv) Internal accruals:The project has not considered the internal accrual as source of financing the project.

(v) Unsecured loans :The project has considered unsecured Loan upto Rs 10.00 lac.

(vi) Tie up for all the above :No any Tie – up(vii) Debt details :

The project has envisaged Term Loan from our bank of Rs.225.00 lacs to part finance the cost of the project(viii) Our Bank's share in the multiple/consortium lendingSole banking and our Bank share is 100%

(v) Brief explanation for each major individual item of cost of Project with present status along with comments on the reasonableness/competitiveness

As per Appendix - VI

vii) Comments on all major technical aspects like locational advantage, Technology/ manufacturing process, power, man power, utilities, transportation, etc.

As per Appendix– VI(A)

viii) Summary of profitability, Break-Even, DSCR and IRR with comments thereon including Assumptions underlying profitability projections:

Detailed projected profitability projections, balance-sheet, cash flow are as per Appendix VII.

Stand Alone Project Company as a whole

Debt-Equity Ratio 0.20 -Average DSCR 2.13 -Minimum DSCR 1.25 -Break Even PointCash Break Even

ix) Detailed Sensitivity Analysis:

Gross Excess of Income over expendi. 11.79 29.61 30.72 31.50 31.93 31.98

Depreciation 5.01 9.27 7.88 6.70 5.69 4.84Misc. Exps. Written off 0.00 0.00 0.00 0.00 0.00 0.00


InterestOn term Loans - Existing 2.50 4.63 3.63 2.63 1.63 0.63On Working Capital Proposed 0.83 2.50 2.50 2.50 2.50 2.50SUB TOTAL 3.33 7.13 6.13 5.13 4.13 3.13Profit before Tax 3.45 10.92 13.05 14.43 16.18 17.32Provision for taxes 1.14 3.61 4.31 4.76 5.34 5.72

Net profit 2.31 7.32 8.75 9.66 10.84 11.61Depreciation added back 5.01 9.27 7.88 6.70 5.69 4.84Misc. Exps. Written off 0.00 0.00 0.00 0.00 0.00 0.00Net cash accruals 7.32 16.59 16.63 16.36 16.53 16.45Interest on term loan 2.50 4.63 3.63 2.63 1.63 0.63Cash available for debt service 9.82 21.21 20.25 18.99 18.16 17.07Repayment obligation Interest 2.50 4.63 3.63 2.63 1.63 0.63Principal 8.00 8.00 8.00 8.00 8.00Total Repayment 2.50 12.63 11.63 10.63 9.63 8.63

Debt service ratio 3.93 1.68 1.74 1.79 1.89 1.98

Average D.S.C.R 1.90 Times

SENSITIVITY ANALYSIS

If sale price is reduced by 5%

2011 2012 2013 2014 2015 2016

Selling Price 63.09 188.81 200.24 212.03 223.82 235.61

Less : 5 % 3.15 9.44 10.01 10.60 11.19 11.78

Revised Fees 59.94 179.37 190.23 201.43 212.63 223.83

Reduced by 3.15 9.44 10.01 10.60 11.19 11.78

Net Excess before tax 0.29 3.77 6.70 9.08 10.92 12.24

Revised Net Excess before tax 0.29 3.77 6.70 9.08 10.92 12.24

Less : Tax @ 33% 0.10 1.24 2.21 2.99 3.60 4.04

Excess after Tax 0.20 2.53 4.49 6.08 7.32 8.20

Add back :

Interest on term loan 2.50 4.6

3 3.63 2.6

3 1.63 0.6

3

Depreciation 5.01 9.27 7.88 6.70 5.69 4.84

Preliminary Expenses 0.00 0.00 0.00 0.00 0.00 0.00

Net cash accruals 7.71 15.42 14.49 13.40 9.64 6.16

Repayment obligation

Interest 2.50 4.63 3.63 2.63 1.63 0.63

Principal 8.00 8.00 8.00 8.00 8.00

Total Repayment 2.50 12.63 11.63 10.63 9.63 8.63

D.S.C.R 3.08 1.22 1.25 1.26 1.00 0.71


Average D.S.C.R 1.09

SENSITIVITY ANALYSIS (PROPOSED)

If raw material price is increased by 5%

2011 2012 2013 2014 2015 2016

Materials 13.82 39.31 41.77 44.23 46.68 49.14

Add : Increase by 5% 0.69 1.97 2.09 2.21 2.33 2.46

Increased cost of Materials 14.51 41.28 43.86 46.44 49.02 51.60

Increase by 0.69 1.97 2.09 2.21 2.33 2.46

Net Excess before tax 2.03 8.72 11.96 14.64 16.80 18.42

Revised Net Excess before tax 2.03 8.72 11.96 14.64 16.80 18.42

Taxes @ 33% 0.67 2.88 3.95 4.83 5.54 6.08

Excess after Tax 1.36 5.84 8.01 9.81 11.25 12.34

Add back :

Interest on term loan 2.50 4.63 3.63 2.63 1.63 0.63

Depreciation 5.01 9.27 7.88 6.70 5.69 4.84

Preliminary exps. written off 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash Accrual 8.87 18.74 18.01 17.13 13.57 10.31

Repayment obligation

Interest 2.50 4.63 3.63 2.63 1.63 0.63

Principal 8.00 8.00 8.00 8.00 8.00

Total Repayment 2.50 12.63 11.63 10.63 9.63 8.63

D.S.C.R 3.55 1.48 1.55 1.61 1.41 1.19

Average D.S.C.R 1.56 times

x) Status of various statutory approvals and clearancesThe company has applied all necessary approvals from the various government departments. The status of various statutory permissions is as below:

Approval StatusLand acquisition AcquiredProject Planning, preparation of project report, filing of loan application with Banks

Done

Order for site development & Civil Work, Structural Fabrication of SMS shed

Done

We stipulate that CM (Branch) to ensure that all statutory approvals are obtained with progress of project.

xi) Present physical & financial status of project, if anyThe trust is to set up a pharmacy college in Amarsen, Ahmedabad. The corpus fund and donations have been tied up and the list of the donors and their commitments is being enclosed herewith. As regards to the tie up for the remaining portion as unsecured loans, the trust being well known, the tie up will not pause problem.


xii) Implementation scheduleActivity Expected date of

CommencementExpected date of Completion

Project Planning, preparation of project report, filing of loan application with Banks

Done

Order for site development & Civil Work, Structural Fabrication of SMS shed

Done

Placing order for machinery DoneApplying for power connection ObtainedDelivery of Equipments DoneInstallation of machinery 5.6.2010Appointment of teaching and non teaching staff 30.6.2010Commissioning 15.6.2010Starting of Teaching 1.8.2010Commercial production 1.8.2010

xiii) Draw Down Schedulexiv)

M/S. NANDI APPARELS PRIVATE LIMITED

Interest calculation Statement

Sr.Quarter ended

1 Dec-10

2 Mar-11

3 Jun-11

4 Sep-11

5 Dec-11

6 Mar-12

7 Jun-12

8 Sep-12

9 Dec-12

10 Mar-13

11 Jun-13

12 Sep-13

13 Dec-13

14 Mar-14

15 Jun-14


16 Sep-14

17 Dec-14

18 Mar-15

19 Jun-15

20 Sep-15

21 Dec-15

22 Mar-16

Total…

xv) Proposed repayment schedule

Scheduled date of Completion of ProjectCommercial Operations Date (COD) December 2010Implementation period (in months) NilMoratorium (in months) NilRepayment period in months/quarters/ Half year QuartersNo. of installment 20Starting Date june 2011End Date (Last installment) March 2013Door to door tenor 20 quarterly installments

13. PricingFacility Existin

gProposed Applicable rate

Rate of Interest

TL NA BPLR+1.50%+tp i.e. 13.00%

BPLR+1.50%+tp i.e. 13.00%

CC NA BPLR+1.50% i.e. 12.50%

BPLR+1.50% i.e. 12.50%

Upfront Fee NA As Applicable @ 1.25% of TL plus ST

Processing Fees NA As Applicable @ Rs.225/- per lac plus ST

Other charges, if any

NA As Applicable As per Bank’s Schedule

(a) Justification

Applicable ROI and Other Charges as per bank’ schedule have been proposed.

(b) ROI/other charges stipulated by other participating banks, if applicable

NA

14. Other Issues not discussed elsewhere

NA

15. Strengths & Weakness with mitigants, if any

Strength


The trustees are fairly knowledgeable and resourceful individuals, so that, through their professional prowess, the college will not face any major issues

The trustees are successfully running 11 institutions providing quality education from primary to higher secondary and post graduate colleges in the science stream. This shows that the trustees have a very effective control over the administrative procedures and overall management of all the institutions.

The college is located in Amarsen which is hardly 18 kilometers from Ahmedabad. This close proximity to ahmedabad will aid the trust to recruit highly skilled faculty and this in turn will provide the college with the reputation that the trustees strive to achieve.

The Trust shall be running pharmacy college and shall generate considerable amount of revenues in the form of FEES and shall register year by year visible growth.

WeaknessNothing as such.

Mitigation:

16. Recommendations:

In view of above the proposal is recommended

Fresh sanction of Term Loan of Rs. 50.00 lacs for setting up a new new manufacturing unit.

SUBJECT TO FOLLOWING ADDITIONAL STIPULATIONS

1) The company to bring in the margin for term loan upfront.2) NEC in respect of Land & Building and other various properties offered as collateral security are to be

obtained from bank’s approved advocate before release of facilities.3) Valid Equitable Mortgages, Charge over Block Assets, to be got done before release of facilities 4) Unit to obtain permission for power connection before disbursement of facilities

Detailed Terms and Conditions are as per Appendix– I.

MANAGER

Sanction


APPENDIX – I

Detailed Terms and Conditions of SanctionAccount: ___________________________________

FACILITY NO. 1

1. Nature : Term Loan

2. Amount : Rs. 40.00 lacs (Rs. Forty Lacs only) By fresh sanction

3. Margin :

4. Interest : BPLR +1.50%+ 0.50% i.e. 13.00% presently as applicable to ‘BB’ rated Medium Enterprises subject to change time to time as per HO/RBI Guidelines and Credit Risk Rating.

5. Security :First Charge over New plant and machinery of the trust financed by the bank.

6 .Insurance : The borrower shall get the above assets insured against all risks at their own cost with usual bank clause. A copy of the insurance policy will be kept on bank's records also. 7. Disbursement :

a) The payment shall be made directly to the suppliers as far as possible. Original bills/cash memos in the joint names of bank and the trust for all the fixed assets/machinery financed by bank shall be submitted by the borrower and to be placed on bank’s record. TL will be released in stages as per physical progress of the project.

b) Borrowers/Lenders’ Engineers shall submit Implementation schedule which should match with the appraisal note and Progress Report be submitted to keep apprise the Bank with the progress of the project and to satisfy the bank’s officials about end use of funds and timely implementation of the project within the approval.

c) The progress in implementation of the project will be monitored/ reviewed by the Bank on periodic basis and necessary corrective steps will be got initiated, if required, from time to time specially in case of time and cost run-overs. The borrower shall facilitate the bank for compliance of the above.

Draw Down Schedule


Interest calculation Statement Rs. 40.00

Rate of Int. : 12.50%

Sr.Quarter ended

Opening

BalanceDisbursemen

tRepaymen

t InterestClosing Balance

Yearly Interest

1 Dec-10 40.00 1.25

40.00

2 Mar-11 40.00 -

1.25

40.00

2.50


3 Jun-11 40.00 - 2.00

1.25

38.00

4 Sep-11 38.00 - 2.00

1.19

36.00

5 Dec-11 36.00 - 2.00

1.13

34.00

6 Mar-12 34.00 - 2.00

1.06

32.00

4.63

7 Jun-12 32.00 - 2.00

1.00

30.00

8 Sep-12 30.00 - 2.00

0.94

28.00

9 Dec-12 28.00 - 2.00

0.88

26.00

10 Mar-13 26.00 - 2.00

0.81

24.00

3.63

11 Jun-13 24.00 - 2.00

0.75

22.00

12 Sep-13 22.00 - 2.00

0.69

20.00

13 Dec-13 20.00 - 2.00

0.63

18.00

14 Mar-14 18.00 - 2.00

0.56

16.00

2.63

15 Jun-14 16.00 - 2.00

0.50

14.00

16 Sep-14 14.00 - 2.00

0.44

12.00

17 Dec-14 12.00 - 2.00

0.38

10.00

18 Mar-15 10.00 - 2.00

0.31

8.00

1.63

19 Jun-15 8.00 - 2.00

0.25

6.00

20 Sep-15 6.00 - 2.00

0.19

4.00

21 Dec-15 4.00 - 2.00

0.13

2.00

22 Mar-16 2.00 - 2.00

0.06 -

0.63

Total… 40.00 40.00 15.63

15.63

- Repayment of Term Loan of Rs. 225.00 lacs to be made in 20 quarterly installments of Rs. 11.25 lacs. First Installment to start from the first quarter of 2011-12. Interest to be served as & when levied.

Repayment default: Penal interest @ 2% over and above the normal rate to be recovered for the amount/period of default.

8. Bank’s name plate, evidencing hypothecation of security/asset to be prominently, displayed where the securities charged to the bank are kept.

9. Escalations : The borrower shall meet such costs, if any, from its own sources and shall not ask for any additional term loan from the bank.

12. The unsecured loans shall be subordinated to our Term Loan.


13. With progress of project, it should be ensured that all necessary statutory and other approvals/ permissions including from Pollution Control Board, have been obtained by the trust.

14. Borrower to undertake to meet any cost over run in the project (irrespective of reasons) from its own long term sources.

15. Pre payment penalty @ 2% will be levied if Term Loan is repaid by takingloan from other banks/FI as per LA Cir. 21/08.

OVERALL TERMS AND CONDITIONS (FOR ALL THE FACILITIES):

1. Total Outstanding to not exceed Rs. 225.00 lakh against the term loan.

2. The borrower shall deal with our bank exclusively, shall not open current account/s with any other bank without our prior permission and shall route all sale transactions through accounts with our bank. The borrower's entire business relating to their activity including deposit, bills, foreign exchange, merchant banking etc. should be restricted only to our bank.

3.The Bank shall charge penal interest under the following circumstances: a. Default in repayment of Term Loans/DPG installments.b. Non-submission/delayed submission of PMS information after 10 days from the close of the quarter

concerned.c. Non/delayed submission of renewal proposal with audited Balance Sheet, CMA data and statement of

assets and liabilities of the guarantors after 9 months from the date of sanction. d. Default in observance of borrowing covenants/terms and conditions of the sanction.e. Any other eventuality/situation to be decided by the bank.

4. Collateral security:

Security Description Area in Sq M or Sq mtrs

Value Basis for valuation

Date Whether existing/ fresh

Last sanction

Present book value

Realisable value

NILTotal

Personal /Corporate Guarantee(Rs. in Lakh)

Name of Guarantor Relationship with

borrower

Net Worth (Rs. In Lacs)

Immovable property Date of confidential report

Prev.As at

Present Prev. As at

Present Prev. Present

Mr. Mohanlal Goyal Father

5. No commission to be paid by the borrowers to the guarantors for guaranteeing the facilities sanctioned by the Bank to the borrowers. An undertaking to this effect is to be obtained from the borrowers as well as guarantors.

6. The borrower to furnish to the branch the required financial information, on the prescribed Proforma, within 10 days/ or within the specified period, as specifically permitted, to enable the branch to submit quarterly review sheet or PMS (wherever applicable) to the Bank’s higher office.


7. Borrower shall pay processing fee, upfront fee, Inter SOL Charges, documentation charges, inspection charges, commitment charges, amendment in Terms & Conditions Charges, limit allocation charges and other charges as per Bank’s Scheduled Charges.

8. The borrower shall not undertake expansion/diversification/modernization (except those investments accepted in Project Report) without obtaining prior permission of the bank and without proper tie-up of funds. Similarly, no investment shall be made in associate/allied/ group concerns without prior bank permission.

9. Friends/relatives from whom the unsecured long-term loans have been raised, the borrower shall undertake not to allow their withdrawal without prior permission of the bank.

10. Monies brought in by principal shareholders/directors will not be allowed to be withdrawn without the Bank's permission.

11. The Bank or its authorized officials or other representatives will have the right to carry out periodical inspection or examine the books of accounts of the borrower and to have their factories/offices/assets inspected from time to time by officers of the Bank and/or outside consultants and the expenses incurred by the Bank in this regard will be borne by the borrower.

12. The Bank shall have the right to withdraw or modify all/any of the sanctioned conditions or stipulate fresh conditions, under intimation to the borrower. Borrower shall undertake to give their acceptance to these stipulations.

13. Bank's charge over primary/collateral securities wherever applicable to be got registered/modified with ROC within the stipulated period of 30 days, as per requirements of Companies Act, and certificate of registration of charge to be obtained and kept on record.

Search Report shall be obtained every year and/or on each registration / modification of charge and cost in this respect to be borne by the trust.

14. In case the trust commits default in the repayment of loan/advance or in the payment of interest thereon or any of the agreed installments of the loan on due date, the bank, CIBIL and/or Reserve Bank of India will have an unqualified right to disclose or publish the names of the trust and its directors as defaulters in such manner and through such medium as the bank/RBI in their absolute discretion may think fit.

(Consent of borrowers and guarantors in terms of LA cir. No.100/2002 be obtained).

15.A stamped undertaking to be submitted in favor of the bank to the following effect that during the currency of bank’s credit facilities, the trust/trust shall not without our permission in writing:

Effect any adverse changes in trust’s/trust’s capital structure. Formulate any scheme of amalgamation or merger or reconstruction. Implement any scheme of expansion on diversification or capital expenditure except normal

replacements indicated in funds flow statement submitted to and approved by the bank. Enter into any borrowing or non borrowing arrangements either secured or unsecured with any other

bank, Financial Institution, trust, trust or otherwise or accept deposits in excess of the limits laid down by Reserve Bank of India.

Invest by way of share capital or lent or advance funds to or place deposits with any other trust/trust, concern including group companies/associates/persons. Normal trade credit or security deposit in the normal course of business or advance to employees can, however, be extended.

Undertake guarantee obligations on behalf of any other trust/trust/person. Declare dividend for any year except out of profits relating to that year after meeting all the financial

commitments to the bank and making all due and necessary provisions. Make any drastic change(s) in the management set up. Approach capital market for mobilising additional resources either in the form of debts or equity. Sell or dispose off or create security or encumbrances on the assets charged to the bank in favour of

any other bank, Financial Institutions, trust, trust, individual.


Repay moneys brought in by the promoters, partners, directors, share holders, their relatives and friends in the business of the trust/trust by way of deposits/loans/share application money etc.

Avail credit facilities/loan from outside the bank/consortium arrangement without their knowledge and permission.

16. Margins/rates of Interest are subject to revision from time to time at the sole discretion of the Bank.

17. The trust to execute necessary security documents duly supported by Board resolution and to get the charge registered within the time limit. Documents will be drafted/vetted by banks' counsels at borrower's cost.

(Certificate from bank's approved counsel contrusting proper and valid execution of documents / securities to be obtained by the bank to be kept on record)

18. Branch to ensure compliance of instructions in terms of LA Cir. No.58/06 dated 01.06.2006 regarding Legal Compliance Certificate to be submitted to CO.

19.The Commitment charges of 1% p.a. shall also be levied on quarterly basis in case of partly drawn Term loan irrespective of the fact that whether the borrower has executed the necessary documents containing unconditional cancelable limit clause or not. The commitment charges on undrawn portion of Term Loan shall be levied as under:

- Where the draw down is made in stages as approved by the bank, the commitment charges shall be computed on the undrawn portion reckoned with respect to the relative draw down limit fixed for the period and not with reference to the total limit.

- In case of partly drawn term loans where no specific draw down schedule has been prescribed/borrower has not adhered to the specific draw down schedule, the commitment charges @ 1% p.a. shall be levied on entire undrawn portion.

20. Bank will always be at liberty to stop making further advance or cancel the credit facility at any time without previous notice and without assigning any reason even though the said limit/credit facility has not been fully availed of.

21. All Other Terms & Conditions of such types of accounts including terms & conditions stipulated by Lead Bank/ Member Banks to be strictly complied with.

22. The trust will submit an undertaking that it has obtained all the permissions and approval ( statutory and others wise ) for carrying out the activity and will keep them in force at all the times.

23. Borrower shall give acceptance of terms & conditions as per letter of sanction, which will form part of documentation and be placed on bank records.

Manager Asst. Gen Manager


APPENDIX - II

(a) Details of Associate/ Allied/ Group concerns and the facilities sanctioned to them (Item No. 6 of the Note).

Past financials of the associate companies of the promoters: (Rs. In Lacs)

EST PROJ PROJ PROJ PROJ PROJ 2011 2012 2013 2014 2015 2016

Net Sales 56.64 189.14 199.86 211.65 223.44 235.23Gross Profits 22.06 90.79 95.36 101.00 106.64 112.29Net Profits 2.61 11.43 15.18 18.40 21.08 23.24 Share Capital 23.12 23.12 23.12 23.12 23.12 23.12 Add- reserves 1.75 8.41 17.08 27.40 36.53 44.60 Less- Intangible 0.00 0.00 0.00 0.00 0.00 0.00 TNW 24.87 31.53 40.20 50.53 59.65 67.72Net Fixed Assets 61.80 52.53 49.65 42.95 37.26 32.42Debt/Equity 3.42 2.38 1.62 1.09 0.75 0.52Current Ratio 1.30 1.47 1.51 1.71 1.85 1.30GP/Sales 38.95 48.00 47.71 47.72 47.73 47.74NP/Sales 4.61 6.04 7.60 8.69 9.44 9.88ICR 1.35 3.48 6.08 10.65 17.47 51.57CATR 29.02 14.71 4.61 5.66 4.88 3.09

Finance availed by the Associate companies/ firms from various Banks / Financial Institutions:

Name of Bank Name of theBorrower

Nature of Limit

Sanctioned Limit

NIL

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

CR to be obtained

(c) Comments on adverse Financial Indicators, if any

Nil

Manager


APPENDIX– III

(A) Review of the Account

NA, being a fresh case

(B) Summary of serious outstanding irregularities pointed out by

Bank’s Inspectors

Concurrent Auditors

Credit Audit & Review Division (CA&RD)

RBI Inspectors

Statutory Auditors

observations of Stock Audit Report

Comment on Preventive Monitoring Score Trends

Status of rectification of these irregularities

NA, being a fresh case

Manager


APPENDIX– IV

i. Detailed Industry Scenario (As per latest updates of the rating agency approved by the bank for advising the industry rating)

Pharmacy is the health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs

The scope of pharmacy practice includes more traditional roles such as compounding and dispensing medications, and it also includes more modern services related to health care, including clinical services, reviewing medications for safety and efficacy, and providing drug information. Pharmacists, therefore, are the experts on drug therapy and are the primary health professionals who optimize medication use to provide patients with positive health outcomes.

Pharmacy education in India traditionally has been industry and product oriented. In contrast to the situation in developed nations, graduate pharmacists prefer placements in the pharmaceutical industry. To practice as a pharmacist in India, one needs at least a diploma in pharmacy, which is awarded after only 2 years and 3 months of pharmacy studies. These diploma-trained pharmacists are the mainstay of pharmacy practice.

Requirement of Graduate in B Pharma

In our day-to-day life pharmacists play an important role, as they are very much into research and manufacture of drugs. As a pharmacist. Thus, pharmacy is closely associated with scientific study.

Pharmacy as a career option has always been in demand. India being a huge nation of about a billion populations, diseases both minor and major has been a curse upon the weak and the poor. In the previous centuries and almost till the middle of the 20th century killer diseases such as acute respiratory infections, diarrhoea, depression, tuberculosis, measles, anaemia etc have been affecting thousands every year. With the advancements in medical science most of these diseases have been brought under control, with the help of high powerful antibiotics and other life saving drugs. This is where pharmacy steps in to fill the void.

Placement & Prospects:

Pharmacists study the chemistry of drugs, their origin, procedures for drug development, their preparation, dispensing, their effects and eventual use for prevention and treatment of disease. The complexity of drug therapy and the dangers of drug abuse has brought into focus the need of pharmacists' special skills to maintain a rational approach in the realm of drug treatments

Those opting for D. Pharm. are employed in the above organizations at a lower level, and they also find vast avenues of employment in pharmacies and medical shops, for which it is compulsory by law to employ a pharmacist.

Pharmacists work in four areas:

1. Hospital pharmacist – The tasks:Procure, stock, prepare and dispense medicines, drugs and other medical accessories. Undertake responsibility for stock control, storage, placing orders, labelling and financial budgeting and account-keeping for the dispensary. The pharmacists are expected to meet


patients, doctors and nurses to discuss the supply of medicines and the appropriate form of drugs for administration

.

2. Retail pharmacists – The tasks:In medical retail stores, the pharmacist prepares and dispenses drugs on prescription to the general consumer With the growing availability of pre-packaged doses, the pharmacist monitors the drug sale on the basis of prescriptions and dosages, and gives over the counter advice on how to use prescribed drugs

In the retail sector, pharmacists run chemist's shops as medical representatives, they inform and educate the medical practitioners of the potential uses of the drug or health product and its administration along with side effects or precautions for its use. The job entails regular visits to medical practitioners, hospitals, clinics, nursing homes, health centres. There is usually a lot of touring to be done.

3. Industrial pharmacists – While most firms are involved in the production of preformulated preparations, a growing number of firms are developing new formulations through autonomous research work. Industrial pharmacists carry out clinical trials, where drugs are tested for safety and effectiveness work in research and development to develop new formulations the production job entails management and supervision of the production process, packaging, storage and delivery work in marketing, sales and quality control.

4. Research pharmacists - Research pharmacists are engaged in research activities in pharmaceutical firms, research organizations and laboratories.

For Diploma in Pharmacy

i. As a Pharmacist in Govt/Semi Govt/Private Hospitals. ii. They can start their own Medical Store.

For Bachelor in Pharmacy

i. As a Medical representative or a medical detailing man. ii. Marketing Managers or a Sales Manager. iii. Drug Inspectors. iv. Drug Controllers. v. Graduate Pharmacist vi. Chief Pharmacist. vii. As Lecturers for D.Pharm and B.Pharm Colleges etc.

Pharmacy education in India, both at the B Pharma and M Pharma levels, is taught as an industry- and product-oriented profession with a focus on the basic sciences. However, pharmacy education in India continues to be one of the last options for students aspiring to a university degree. The pharmacists with a B Pharma or M Pharma generally seek avenues other than pharmacy practice.

These pharmacists prefer placements in production, regulatory affairs, management and/or quality assurance, and marketing with the pharmaceutical industry. Only small numbers of these graduates and postgraduates opt to work in community and institutional pharmacies. In India, diploma holders


(DPharm holders) are practicing pharmacists in the global sense as they engage in community or institution pharmacy practice.

Government Rules:

The AICTE is also responsible for quality assurance of pharmacy programs (DPharm, BPharm and MPharm) through accreditation by National Board of Accreditation (NBA) constituted by the AICTE. Accreditation is voluntary and also a stringent process.

ii. Comments on :-

1. Management

Bai Jivkor lallubhai trust is a Public Charitable Trust, under Indian charitable Trust Act, created by the wealthy, matured, dedicated and experienced MANAGING TRUSTEE SHRI MANUBHAI SHETH, aged around 67 years, residing at Maninagar, AHMEDABAD.

The planning and operational management is centralized at its main office situated at BAI JIVKOR LALLUBHAI MARG, RAMBAG, MANINAGAR AHMEDABAD-380 008. All administrative activities related to the meeting with the requirements of the college- institutional approving authorities, for live communication with them and to meet with the banking matters are carried out at the said place for effective results. Trust has following Trustees, involved in the fulltime operational activities of the Trust.

BOARD OF TRUSTEES

Trust has a well-defined administrative staff to support the Board of Trustees in their mission to do educational and the object related activities.

The Managing Trustee after the creation of a Trust has been providing the rise in the corpus fund to continue the operational process of object. He, along with other Trustees is adding an economic strength of the trust by ideally managing affairs of the Trust.

2. Quality of Management (Including Corporate Governance)

All the trustees are well experienced in the line of activity since all of them have received good experience while handling the other college and school.

3. Succession Planning

.

4. Production : Not applicable


Capacity Utilisation:

The Trust has considered 100% student capacity in its first year of operation because in that area there is no other pharmacy college and there is a huge demand of medical graduate because of increase in the various kind of disease and Gujarat region is considered as a pharma hub of India since 70% of the pharmaceutical products are manufactured in Gujarat, so 100% student capacity can be utilized.

Manpower:

It is a educational trust so manpower in the sense of teacher and other administrative staff can be available because the said trust is being engaged in this line since many years so manpower is easily available.

5. Marketing

6. General (details such as qualification/experience of directors/ promoters, main products, capacity, major brands, geographical market for products and major buyers expertise like technology, brand, marketing, etc.)

Details such as qualification/experience of directorsThe trust is being promoted by SHRI MANUBHAI SHETH & Other trustees.

(1) SHRI __________________Managing Trustee, SHRI ____________________, aged around 67 years, residing at Maninagar, AHMEDABAD is a wealthy businessman and full time dedicated to activities related to the education and the TRUST, having successfully managed for the last 35 years. He, after experiencing the difficulty during the process of providing effective education to his co-student friends decided to Strengthen the working of the Trust to provide easy education parting facilities at the reasonable cost.

In this noble mission of creating an ideal educational facility in the rural and interior location, being conceptualized by the developer of the Trust, SHRI _____________________________and all his fellow TRUSTEES were extended complete support by all related staff and well wishers. All Trustees even since after joining the trust as trustee have contributed the most valuable effort to this mission. All Trustees being active participants in the trust as active Administrative members are highly qualified and experienced managers and administrators. They are functioning with the highest possible degree of dedication for the successful performance of the trust to ultimately achieve the targeted goal of the creator of the trust.

(C) Borrowers' diversification, expansion, modernisation programme

The Trust is setting up a new pharmacy college.

Manager Asst. Gen. Manager


APPENDIX– VI

Brief explanation for each major individual item of cost of Project with present status along with comments on the reasonableness/ competitiveness

Land :

The trust has acquired land admeasuring 18832 square meters situated at Village Amarsan Ahmedabad. The above land is required to be develop. The total land & Land Developmen cost comes to Rs. 58.18 Lacs, which is to be financed through Trust funds and Donation.

Building:

At the current rate of the progress made in creation of various educational studies and University affiliated Graduation Courses, the trust is in the final process of completing already constructed well-equipped College Building with all required facilities and attachments, refreshing Building to accommodate at least 200 students, well defined canteen and rest room, exhaustive Library with well furnished Reading Room, Administrative block covering trustee’s room, principal’s chamber, professors’ room, exhaustive water and sanitation blocks, in total consisting of 2077 Sq. Mtrs. area at the approximate cost of Rs. 397.78 LACS.

The trust, to accommodate total 240 students covering all for years’ course shall require further constructed area in future.

Plant & Machinery:

LIST OF EXISTING PLANT & MACHINERY

Sr. No. DESCRIPTION MAKE QNTY CAP. SHIFT


APPENDIX– VIA


Comments on all major technical aspects like locational advantage, Technology/manufacturing process, power, manpower, utilities, transportation, etc.

Technology :

Manufacturing Process: Not Applicable

Quality Assurance: Not Applicable

Capacity Utilisation:

The Trust has considered 100% student capacity in its first year of operation because in that area there is no other pharmacy college and there is a huge demand of medical graduate because of increase in the various kind of disease and Gujarat region is considered as a pharma hub of India since 70% of the pharmaceutical products are manufactured in Gujarat, so 100% student capacity can be utilized.

Manpower:

It is an educational trust so manpower in the sense of teacher and other administrative staff can be available because the said trust is being engaged in this line since many years so manpower is easily available. The place of the college, AMARSAN is situated hardly 20 K.M. from the city of AHMEDABAD and is very near to AHEMDABAD town. The entire area is education prone area and hence TEACHING AND NON-TEACHING STAFF shall easily be available even for PHARMACY COLLEGE. At present also, the college has sufficient staff strength in the area of non-teaching, working with full dedication and quality.

Power:

The college complex have obtained power connection to provide electricity in Education process, Laboratory work, and Engineering Workshop process and in future, the Hostel accommodation. However the trust decided to acquire and install small sized DIESEL GENERATING SET as stand by arrangement.

Water

The said trust has already obtained water connection from Ahmedabad Municipal Corporation.

.



APPENDIX– VII

A. Project on standalone basis and Company as a whole(In Lakh)

Particular Year(March) 2011 2012 2013 2014 2015 2016

Installed capacity 60 150 270 420 420 420Capacity Utilization (In Seats) 100% 100% 100% 100% 100% 100%Net sales(Fees Received) (in Rs.) 66.45 148.75 231.00 315.25 315.25 315.25

A. i DSCR


DSCR CALCULATION

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Average DSCR

Estm. Proj. Proj. Proj. Proj. Proj.

Net Profit 2.31

7.32

8.75

9.66

10.84

11.61

50.48

Depreciation 5.01

9.27

7.88

6.70

5.69

4.84

39.39

CASH ACCRUALS [A] 7.32

16.59

16.63

16.36

16.53

16.45

89.87

Add Interest on TL 2.50

4.63

3.63

2.63

1.63

0.63

15.63

SUB TOTAL - I [B] 9.82 21.21

20.25

18.99

18.16

17.07

105.50

TL instalment - 8.00

8.00

8.00

8.00

8.00

40.00

Interest on TL 2.50

4.63

3.63

2.63

1.63

0.63

15.63

SUB TOTAL - [C] 2.50

12.63

11.63

10.63

9.63

8.63

55.63

DSCR 3.93

1.68

1.74

1.79

1.89

1.98

1.90


B Projected Profitability StatementPARTICULARS ESTM PROJ PROJ PROJ PROJ PROJ

2010-11 2011-12

2012-13

2013-14

2014-15 2015-16

A. INCOME

Sales & Job work Income 63.09 188.81 200.24 212.03 223.82 235.61

NET INCOME 63.09 188.81 200.24 212.03 223.82 235.61

0.21 0.21 0.21 0.21 0.21 0.21B. EXPENDITURE Raw Material Consumed 13.82 39.31 41.77 44.23 46.68 49.14Consumables & Accessories 17.72 50.40 53.55 56.70 59.85 63.00Washing Charges 3.04 8.64 9.18 9.72 10.26 10.80Power & Fuel 1.51 4.84 5.14 5.44 5.75 6.05Transportation 0.50 1.10 1.21 1.33 1.46 1.61

Salaries and wages 15.24 48.01 52.81 58.09 62.73 67.75Repairs & Maintanance 0.00 1.80 1.98 2.18 2.40 2.64Other Mfg Expenses 1.00 3.00 3.30 3.63 3.99 4.39Adm. and Seling Expense 0.50 1.20 1.26 1.32 1.39 1.46Factory Rent 1.20 3.02 3.18 3.33 3.50 3.68Interest 3.33 7.13 6.13 5.13 4.13 3.13Depreciation 5.01 9.27 7.88 6.70 5.69 4.84 TOTAL EXPENDITURE 62.87 177.72 187.38 197.79 207.83 218.48 Add: Opening Stock of FG 0.00 3.23 3.06 3.25 3.44 3.63Less: Closing Stock of FG 3.23 3.06 3.25 3.44 3.63 3.83 COST OF SALES 59.65 177.88 187.18 197.60 207.64 218.29 6.52% 6.80% 7.23% 7.35%E. Net Profit 3.45 10.92 13.05 14.43 16.18 17.32 H. Provision for taxation 1.14 3.61 4.31 4.76 5.34 5.72 I. Profit after tax 2.31 7.32 8.75 9.66 10.84 11.61 3.66% 3.88% 4.37% 4.56% 4.84% 4.93%F. Less: Director Remuneration 0.00 1.00 1.50 4.00 5.00 6.00 G. Profit Transferred to B/S 2.31 6.32 7.25 5.66 5.84 5.61


C Projected Balance Sheet

PROJECTED BALANCE SHEETPARTICULARS ESTM PROJ PROJ PROJ PROJ PROJ (Rs. In lacs) 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

A. LIABILITIES

1. Share Capital 30.72 30.72 30.72 30.72 30.72 30.722. Surplus in Profit & Loss A/c 2.31 8.63 15.87 21.54 27.38 32.983. Bank borrowing for W.C. 20.00 20.00 20.00 20.00 20.00 20.004. Term Loan 40.00 32.00 24.00 16.00 8.00 0.005. Unsecured Loans 10.00 10.00 10.00 10.00 10.00 10.00

TOTAL 103.03 101.35 100.59 98.26 96.10 93.70

B. ASSETS 1. Fixed Assets Gross Block 66.81 66.81 71.81 71.81 71.81 71.81 Depreciation Reserve 5.01 14.28 22.16 28.86 34.55 39.39 Net Block 61.80 52.53 49.65 42.95 37.26 32.42

2. Investments 2.50 2.50 2.50 2.50 2.50 2.503. Current Assets Loans & advances

Debtors 31.55 31.47 33.37 35.34 37.30 39.27Inventories 6.68 6.34 6.73 7.13 7.52 7.92Cash and Bank Balance 3.32 8.78 8.34 10.04 10.92 10.71Other Current Assets 1.50 3.00 3.50 4.00 4.50 5.00

43.05 49.58 51.95 56.51 60.25 62.90

4. Less: Current Liabilities and Provisions

Sundry Creditors for Goods 4.32 3.26 3.50 3.70 3.91 4.11Sundry Creditors for Machinery 0.00 0.00 0.00 0.00 0.00 0.00Advance from Customers 0.00 0.00 0.00 0.00 0.00 0.00Other Liabilities 0.00 0.00 0.00 0.00 0.00 0.00

4.32 3.26 3.50 3.70 3.91 4.115. Net Current Assets 38.73 46.32 48.45 52.80 56.34 58.79

6. Miscellaneous Expenditure 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL 103.03 101.35 100.60 98.26 96.10 93.71 0.00 0.00 0.00 0.00 0.00 0.00


D Projected Cash Flow Statement

PARTICULARS

PROJ PROJ PROJ PROJ PROJ2011-

122012-

132013-

142014-

152015-

16

SOURCES

Profit before tax (item 10 of

Part A of form II) 10.92 13.05 14.43 16.18 17.32

Add Depreciation (item 4 vii

of part A of Form II) 9.27 7.88 6.70 5.69 4.84

Misc. Exp. W/off 0.00 0.00 0.00 0.00 0.00

Gross Funds generated 20.19 20.93 21.12 21.87 22.16

Less taxes paid/payable(relating to

the year) 3.61 4.31 4.76 5.34 5.72

less dividend paid/payable (relating 1.00 1.50 4.00 5.00 6.00

to the yeare)/Tr.to Gen.Res.

Less: Deferred Revenue Exp.w/off Misc. Exp. W/off 0.00 0.00 0.00 0.00 0.00

less Issue of Bonus Share 0.00 0.00 0.00 0.00 0.00

less Deferred Tax Liability Director's Remuneration 0.00 0.00 0.00 0.00 0.00

A) Sub-total - net funds generated 15.59 15.13 12.36 11.53 10.45

Increase in capital 0.00 0.00 0.00 0.00 0.00

Increase in Share Appl. Money 0.00 0.00 0.00 0.00 0.00

Increase in Depreciation Reserve 0.00 0.00 0.00 0.00 0.00

(Receipt of Subsidy)

Increase in Term Loans/debentures/ 0.00 0.00 0.00 0.00 0.00

Deferred payment liabilities

Increase in other term liabilities 0.00 0.00 0.00 0.00 0.00

Decrease in Fixed Assets 0.00 0.00 0.00 0.00 0.00

Decrease in inter-corporate invest-

ments and advances 0.00 0.00 0.00 0.00 0.00

Decrease in other non-current assets 0.00 0.00 0.00 0.00 0.00

B) sub - total 0.00 0.00 0.00 0.00 0.00

Increase in short-term bank borrowings


(including bills purchased and

discounted by bankers) 0.00 0.00 0.00 0.00 0.00

Increase in other current liabilities 0.00 0.24 0.20 0.20 0.00

Decrease in inventory 0.35 0.00 0.00 0.00 0.00

Decrease in Receivables (including

bills purchased and discounted by

bankers) 0.08 0.00 0.00 0.00 0.00

Decrease in other current assets

(including cash and bank balances) 0.00 0.00 0.00 0.00 0.00

C) Sub total 0.42 0.24 0.20 0.20 0.00

Total funds available (A+B+C) 16.01 15.36 12.57 11.74 10.45

PARTICULARS

PROJ PROJ PROJ PROJ PROJ

2011-

122012-

132013-

142014-

152015-

16

USES

Increase in fixed asets 0.00 5.00 0.00 0.00 0.00

Decrease in Share Capital 0.00 0.00 0.00 0.00 0.00

Decrease in Share Appl.Money 0.00 0.00 0.00 0.00 0.00

Decrease in Term Loan/debentures/ 8.00 8.00 8.00 8.00 0.00

Deferred payment liabilities

Decrease in other term liabilities 0.00 0.00 0.00 0.00 0.00

Decrease in Depreciation Reserve 0.00 0.00 0.00 0.00 0.00

(Sale of Assest)

Increase in Inter-corporate

invenstments and advances 0.00 0.00 0.00 0.00 0.00

Increase in Other non-current asset 0.00 0.00 0.00 0.00 0.00

D) Sub total 8.00 13.00 8.00 8.00 0.00

Decrease in short term bank borrow- 0.00 0.00 0.00 0.00 0.00


ing (including bills purchased and

discounted by bankers)

Decrease in other current liabilities 1.06 0.00 0.00 0.00 7.80

Increase in inventory 0.00 0.40 0.40 0.40 0.40

Increase in receivables 0.00 1.91 1.97 1.97 1.97

Increase in other current assets

(incl.cash & bank bal.) 6.96 0.06 2.20 1.38 0.29

E) Sub total 8.02 2.36 4.56 3.74 10.45

Total funds used (D + E) 16.02 15.36 12.56 11.74 10.45

Manager Asst. Gen. ManagerAPPENDIX– V

a) Justification for working capital sanction: N. A.

(Rs. Lacs)

Sales (Fees Received) 63.09 188.81 200.24 212.03 223.82 235.61

Total Sales 63.09 188.81 200.24 212.03 223.82 235.61

ii) Holding Period (Months) with justification for acceptance

Not applicable as it is an educational institution.

Comments on accepted level of holdings:- N.A.

Raw Materials

N.A.

Finished Goods

N.A.


Receivables:

Creditors:

iii) Assessment of Fund Based Limits

Chargeable Current Assets: Not Applicable

Other Current Assets: Rs. LacsParticulars 31.03.11

Estimate 31.03.12

Projected Accepted for assessment 31.03.13

Cash & Bank Balance

Other Current Assets

Consumable Stock

Total

Other Current Liabilities: Rs. lacsParticulars 31.03.10

Estimate

31.03.11Projected

Accepted for assessment 31.03.13

Creditors- Trade

(Days purchases)

Other current liability

Total

Justification:The other current assets comprising of advances for raw material, advance payment of taxes and other normal business advances. The current liability is the repayment obligation of the term loan which is due within one year. The projected other current assets and liability are in the tune with industry norms and has been accepted for assessment.

NWC & Current RatioRs. Crore

Particulars 31.03.10Estimate

31.03.11Projected

Accepted for assessment 31.03.13

NWC

Current Ratio

The company has estimated the current ratio at the level of 1.41 which is above the benchmark level of bank and hence the same is accepted for assessment

Permissible Bank Finance Rs. In Lacs

Not Applicable