Proposal Format- Common

8/6/2019 Proposal Format- Common

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THEFEDERAL BANK SME & Agri Business Dept LIMITED Regd. Office: Aluva, Kerala.

SMEABD/S -27 / L / /10 Date:

1 Date on which the proposal/request was received from the Branch2 Date on which queries were raised to RO/Branch3 Date of receipt of reply (Final)4 Date of receipt of RO recommendation5 Date of placing the appraisal note

SUBMITTED TO GENERAL MANAGER (CREDIT)

PROPOSAL FOR CREDIT FACILITIES (ADDITIONAL LIMIT)

Branch: Rating : Previous rating Region:

1. SECTOR/GROUP DETAILS OF BORROWER(Amount in Rs. In lakhs)

1.1 Applicant/Borrower 1.1.1 Group: --1.1.2 Group exposure:--1.1.3 Sector/Subsector: Code:1.1.4 Sector exposure (including theabove)1.1.5 Exposure limit1.1.6 Exposure as % of net worth:

Present proposal in brief:

2 BORROWER PROFILE:

2.1.1 Name

2.1.2 Address FactoryOffice.

2.1.3 Constitution2.1.4 Business / Activity2.1.5 Category/sector)

2.1.6 Priority/ Non priority2.1.7 Date of incorporation2.1.8 Advances since Current a/c since:2.1.9 Credit rating and pricing

Present Proposeda.Internalb.Pricing as per rating

External2.1.8 Asset classification2.1.10 Banking arrangement

a. Sole


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b.. Consortium Leader &Share(%)

Ourshare (%)

OtherBanksshare(%)

c. MultipleBanking

MainBanker &Share(%)

Ourshare (%)

OtherBanksshare(%)

2.2 Management2.2.1 Name of the promoters2.2.2 Share holding pattern

Major shareholders % of shareholdingiiiiii

2.2.3 Whether listed2.2.4 Stock market data (if listed)

i)Year low/high pricePresent/recent market quotationBook-value of shares

Rs.Rs.Rs.

2.2.5 Name of proprietor/Partners/Directors/TrusteesName Passp

ortNo.

Age Other directorships.Mention if NomineeDirector

Shareholding

ChairmanC E O

2.2.6 Comments on the quality and competence ofCEO.

2.2.7 Track record of the management2.2.8 Details of pending litigation against the borrower /

directors / promoters, if any.2.2.9 Relationship of the borrower, if any with the

Directors and employees of the Bank/Directors ofother Bank.

2.2.10 Any interest of Directors of the Bank in theborrower

2.2.11 Any interest of Directors of the other Banks in theborrower.

3 CURRENT PROPOSAL:

3.1 Existing /proposed credit facilities from the bank

3.1.1 Facilities

Existing Limits Proposed Limits Existing Proposed

Nature Amount

Balance

Over-dues/Arrears

Inc.(+) /Dec.(-) inlimits

Totalincluding theexisting

Int/Commn

Period Int/Commn

Period

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FUNDED

TOTAL

NON FUNDED

TOTAL

GT

#Note: Qualify whether New, Renewal with enhancement, Renewal, Adhoc only etc.Date of last sanction: Authority: Date of disb.: Date of latest review

3.1.2.Brief on the existing facilities

3. 2.2 Pricing analysisExisting Proposed

Funded Rate of Interest

Pricing asper rating

Rate ofInterest

Pricing asper rating

Remarks

Term LoanWorking capitalNon fundedLCStandby LCBG

Processing feeFront end fee

Commitment fee

PrepaymentchargesAny other feeincluding fee fromthird party products3.2.3 Securities

Description Value as on

Present ProposedPrimary

Collateral

Additional

Others

Residual value to be furnished in respect of securities charged to any other facility

3.2.4. Comments on security/ Security Analysis/ Asset Coverage Ratio

Requirement of collateral security as per margin normsNature of limit Margin to be

maintained %

Limit/

Bal.

Collateral

required

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3.2.5. Guarantees/ co obligancy available or offered:(1) (2) (3) (4)

a. Name of guarantor/ co obligantsb. Constitutionc. Net worth/Means as ond. Basis of assessing net worth

Furnish whether Certificate of Branch Manager as to verification of the facts ascertaining networthavailable.

3.3. Conduct / value of the account

3.3.1. Unit visit/stock inspection report and findings there of.3.3.2. Conduct of the account (Comments)

(Rs in lakhs)3.3.2. Utilisation of: Previous year Current year

Amount % Amount %a. Funded facilities (Average Debit

Balance)b. Non-funded facilitiesc. Cr. Summation in operative accounts xxxx xxxxd. Dr. summation in operative accounts xxxx xxxxe. Highest debit balance Xxxx Xxxx

f. Lowest debit balance xxxx xxxxe. PCLs disbursed xxxx xxxxg. Bills purchased / discounted xxxx xxxxh. LCs openedi. Guarantees issued

3.3.3. Earnings: Previous year Current year

a. Interest

b. Other income (including third partyproducts)

c. Totald. Yield on exposure (%)3.3.4 Ancillary business / business through connections of the borrower:

No. & averagebal. of last 6mths of SB a/c

No. & av bal. oflast 6 mths of CDa/c

Amount of fixeddeposit

No. & amount of life and nonlife insurance policies sold

Gold coinssold in grams

No. & amount ofthird party productssold.

Any other ancillary benefits obtained

3.4. Outstanding inspection irregularities as on :

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i. RBI

ii. Statutory

iii. RBIA

Iv. Concurrent

v. Credit Audit

4 CREDIT FACILITIES FROM BANKS / INSTITUTIONS: (including our Bank)

4. 1. Term Loans:

4.1.2 Existing(Rs in lakhs)

Lender Amount Interest

Period Balance Over-dues

Security

Total

4.1.3 Proposed(Rs in lakhs)

Lender Amount Interest Period SecurityProposed

Total

4. 2. Working capital :

a. Whether consortiumb. Name of leader bank, branch/ officec. Credit facilities enjoyedNo Lender Existing Proposed Sharing pattern (%)

Existing Proposed

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Funded

Non-funde

d

Funded

Non-funde

d

Funded

Non-funde

d

Funded

Non-funded

TOTAL

4. 3 Total credit limits enjoyed from all a. Funded Rs.

b. Non-funded Rs.

5 INDUSTRY SCENARIO (Not more than 2 pages. The write up may contain the marketsize, market share of major players, demand, supply, profitability, competition, governmentalpolicies, prospects etc).

6 BUSINESS ENVIRONMENT (Not more than 2 pages)

Business descriptionOperating strategyBorrower competitive positionManagement

6. 1. Physical performance:

a. Production:

Year I Year II Year III

Qty Value Qty Value Qty ValueProductsInstalled capacity

Capacity utilisationb. Sales :

7 FINANCIAL PERFORMANCE PAST AND PROSPECTIVE

7.1 Balance sheet (Two year audited, current year estimates and following yearprojections)

Year / period ending

Audited Audited Estimates ProjectionsLiabilities 1 2 3

Net worthEquity

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Surplus in profit and loss accountLess Intangible assets /

revaluation reserves etc.Sub-total

Term liabilitiesTerm loansDeferred tax liabilityUnsecured loans

Sub-totalCurrent liabilitiesShort term bank borrowingsSundry creditorsInstalments of term loansrepayable in 12 monthsProvisionsOther current liabilities

Sub-total

Grand total

Year / period ending

Audited Audited Estimates Projections

AssetsFixed assets

Gross blockDepreciation

Net blockOther non-current assetsInvestments in - associates

- OthersLoans and advances - Associates

- OthersSub-total

Current assetsCash and bankFixed deposits with BanksReceivables

InventoriesOther current assets

Sub- totalGrand total

7.2 Financial indicators and key ratios (Two year audited, current year estimatesand following year projections. Please refer Annexure II and III for detailed profitand loss account and balance sheet)

As at / For year to Audite

dAudited Budget

EstimatesProjections

Total operating income(TOI)/ salesPBIDT

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InterestDepreciationOperating profitNon- op. IncomeProfit before tax (PBT)Profit after tax (PAT)Cash accrualsDividendPaid-up capital (Equity)Tangible net worth (TNW)Exposure in subsidiaries /group companies

* Investments* Loans & Advances

Adjusted TNW (ATNW)Net working capitalGrowth in sales (%)

Growth in PAT (%)PBIDT/Sales (%)PAT/Sales (%)Debt/TNW (Times)

As at / For year to Audite

dBudget

Audited

EstimatesProjections

Debt/ATNWTotal liabilities / TNW(Times)Total liabilities / ATNW

(Times)Total debt / Net cashaccrualsCurrent ratio (Times)ROCE (%)Interest cover (Times)

7. 3. Comments on Financial Position:

7.3.1 Turnover :

7.3.2 Profitability :

7.3.3 Liquidity :

7.3.4 Leverages (DER and TOL/TNW) :

7.3.5 Non-current Assets :

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7.3.6 Contingent liabilities :

7.3.7 Debt-Servicing Capacity :

7. 4. Related party transactions

As at / for years ended

7. 5. Performance in the current year(Previous four quarters)

For the quarters ended I

(Date)II

(Date)III

(Date)IV

(Date)Total operating income

(TOI)PBIDTPBTPATPBIDT/Net sales%PAT/Sales %Net cash accruals

7. 6. Borrower's auditors, their significant comments on the recent financialStatements:

7. 7. Statutory Dues (IT, WT,ST, Excise Duty, PF, ESI, Others)

8. DETERMINATION OF THE LIMITS:

8. 1. Term loans: (Brief description of the project)

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8.1.1. Cost of the project and means of financeDescription Rs. in lakhs

Land and site developmentBuildings and other civil works

Plant and machineryUtilities

Misc. fixed assetsPreliminary expenses

Pre-operative expensesContingencies

Margin on working capitalTotal

Means of financeTerm loan

Promoters contribution Equity-Preference shares

Subordinate debt Total

8. 1. 2. Land and site development (Brief discussions about the land, cost etc.)

8. 1. 3. Buildings and other civil works (Brief discussion about the civil works,description of the building, comparison of the cost , contractors etc)

8. 1. 4. Plant & Machinery (Brief discussion about each item of machinery, suppliers,

comparison of the cost , plant lay out, capacity etc)

8. 1. 5. Utilities (Brief discussion)

8. 1. 6 . Misc. fixed assets (Brief discussion)

8. 1. 7. Preliminary and preoperative expenses: (Brief discussion, including aboutinterest during the implementation period)

8. 1. 8. Margin on working capital. (Basis for arriving at the gross working capital and themargin)

8.1. 9 Contractual structures: (Provide salient features of the EPC contracts, O&Mcontracts, Purchase and supply agreements etc).

8. 1. 10 Marketing arrangement: (Detailed discussions)

8. 1. 11 Financial tie up (Detailed discussions)8. 1. 12. Implementation Schedule & Status of work.

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Description Time schedule Present status

8. 3. Basis of fixing term loan

Particulars

Cost Margin Loancomponen

t

Asset cover

Land and site developmentBuildingPlant & Machinery and other fixedassetsTotal

8. 4. Summary of the projected profitability and cash flow statements

Years

1 2 3 4 5 6

Capacity utilisationSales/RevenuePBIDTPBIDT marginDepreciationInterestPBTProv for taxes

Net profit

Cash in flowRepayment obligationsInterestRepayment of TLTotalDSCRAverage DSCR

( Please refer to Annexure IV, V and VI for detailed projected profitability statement, cash

flow statement and balance sheet )

8. 4. 1. Assumptions on projected profitability estimates

8. 4. 2. Sensitivity analysis:

8. 4. 3 Repayment schedule:

9. WORKING CAPITAL (Brief description on the working capital requirements of theborrower)

9. 1. Assessment of limits

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9. 1. 3. Computation of assessed bank finance (ABF) Funded limits

Date Date Date

Audited Estimates Projections1 Sales (Net)

2 Total Current Assets (CA)

3 Current liabilities (other than bankborrowings)

4 Working Capital Gap (WCG)

5 Net Working capital (NWC)

6 ABF (WCG minus 25% of CA or actualNWC whichever is higher)

9. 2 Limits recommended:

Existing Recommended

9. 3. Non-funded limits:

9. 3. 1. Letter of Credit: (Detailed discussions covering the types of imports/purchases, main terms of payments, usance period, lead time, main suppliers, pastexperience with such suppliers and borrower's timely reimbursement of the Banketc.)

9. 3. 2. Assessment of LC facility

(Rs in lakhs)Existing (FY 05) Proposed (FY 06)

FLC ILC FLC ILCa. Procurement of materialb. Monthly consumptionc. Purchases / import under LC (%)d. LC based purchases per monthe. Usance periodf. Lead periodg. Total of (e) + (f)

h. Amount of LC required (d*g)

9. 3. 3. Bank Guarantee: (Detailed discussions on BG limit covering the past experience,including any guarantees invoked and recovery from the borrower, totaloutstanding bank guarantees, guarantees expiring within the current year,maximum/average tenor of bank guarantee, purpose of guarantees to beissued, main terms and how the borrower can be expected to fulfill theguaranteed obligations satisfactorily, especially if the guarantees are bid bonds,advance payment guarantees or performance guarantees.)

9. 3. 4. Assessment of the BG facility

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Opening balance in theguarantee limit

Basis Amount

Earnest money deposits - % of the tenders in which theborrower expect to participate inthe financial year.

Security deposits required to bemaintained

- % of the tenders expected to beawarded in the financial year.

Advance payment guarantee - % of the tenders expected to beawarded in the financial year.

Retention money - % of the works to be competed inthe financial year.

OthersTotalLess guarantees expected to becancelled/matured in thefinancial year.

Based on the due dates of existingguarantees and past experience/trade practices.

Limit required

10. COMPLIANCE AND EXCEPTIONSA Exposure is within Banks prudential norms / RBI guidelinesB Borrower / directors/ key persons are not under RBI

defaultersC Borrower / directors/ key persons are not under SAL of ECGCC Deviations if any from the Loan policy guidelines10.1 Exceptions noticed if any in respect of :

10.1 a. Management and business of the borrower.

10.1 b. Financials of the borrower

10.1 c. Conduct of account

10.1 d. Internal polices and guidelines

10.1 e. Statutory and Regulatory provisions

10.1 f. Any others

11. GROUP EXPOSURE

11. 1. Details of associate concerns : (Please provide brief details and providedetailed financial analysis in annxure VIII)

11. 2. Banks exposure to the group:

Company / firm Fundedfacility

NF facility Security Whetherrestructured

TotalTotal exposure to the group Rs.

Irregularities, if any:

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12 RISK ASSESSMENT (Refer to Annexure VII for detailed Risk Analysis)

12. 1 . Overall Risk Rating -

12. 2. Justification for deviation in interest rate and other concessions:

12. 3. Key risk areas and mitigating factor

Key Risk areas Mitigating factors

12.STRENGTH AND WEAKNESS OF THE PROPOSAL

13.RATIONALE OF THE PROPOSAL

14. RECOMMENDATION

14.1 Business based

14.2 Financial conditions based.

14.3 Credit relationship strategy based

14.4 Risk and mitigants based

We hereby confirm that CIR from CIBIL in respect of borrowers/ partners/ directors/ co-obligants/ guarantors have been obtained and that the report contains no adverse features.

Other existing facilities, as discussed in para 3.1.2 of the proposal, are reviewed andallowed to be continued.

Confirmation regarding collection of 50% of the normal processing fee:

Delegation :

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ANNEXURE - I

Terms and conditions of the facilities:

Borrower :

Branch / R.O :

Nature of limit I II III

Amount in Figures

Amount in words

Int./Comm./Disc.

Interest reset

Period

Repayment holiday

Repayment

Processing fee

UP front fee

Prepayment penalty

Penal interest / liquidateddamages

Commitment charges

MarginGuarantee cover

Refinance

Total liability

Total liability of Group

SECURITY

Primary

Collateral

Additional

Co-Obligants/ Guarantors

OHER MAIN TERMS & CONDITIONS

Pre- Disbursement conditions

Post- Disbursement Conditions

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Annexure II

Name of the borrowerOperating statement

Year ended / ending Date Date Date DateAudited Audited Estimated Projected

1 2 3 4

Net sales Domestic- Export

Total salesOther operational income

Total operational revenueIncrease in sales (%)

COST OF SALESRaw materials - Imported

- IndigenousManufacturing / trading expensesDepreciation

Sub - totalAdd / less differential in stock in

process

Cost of productionAdd / less differential in stock of FG

Cost of salesSelling and admn. ExpensesSub-totalOPERATING PROFIT BEFOREINTERESTInterestOPERATING PROFIT AFTERINTEREST

Non operative income (net)PROFIT BEFORE TAXProvision for taxesPROFIT AFTER TAXDividendRetained profitRetained profit - %

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ANNEXURE III

Name of the borrowerAnalysis of balance sheet

Year ended / ending Date Date Date 2007LIABILITIES Audited Audited Estimated Projected

1 2 3 4CURRENT LIABILITIESShort-term borrowings from banks

Sub total (A)

Sundry creditorsInstallments of term loans payable in12 months.Provision for taxesOther current liabilities

Sub-total (B)Total current liabilities (A+B)

Term loans

Unsecured loansDeferred taxesTotal term liabilitiesTotal outside liabilitiesNET WORTHEquityGeneral reservesSurplus in profit and loss accountNet worth

TOTAL LIABILITIES

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ANNEXURE III (a)

Name of the borrowerAnalysis of balance sheet

Year ended / ending Date Date Date DateASSETS Audited Audited Estimated Projected

1 2 3 4CURRENT ASSETSCash and bankFixed deposits with BanksReceivables - Domestic

- ExportInventories: RM

Stock in processFinished goods

Advances to suppliersOther current assets

Total current assets

FIXED ASSETSGross block

DepreciationNet block

OTHER NON CURRENT ASSETSInvestments

Total other non current assets

TOTAL ASSETS

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ANNEXURE IV

Profitability projections.

(Rs in lakhs)Years 1 2 3 4 5Sales

Other IncomeTotal income

CostRaw materialsOther direct costsSelling & Admn costDepreciationInterest TLInterest Working capitalInterest othersTotal cost

PBTTaxesPAT

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ANNEXURE V

Projected balance sheet.

(Rs in lakhs)Years Date Date Date Date DateLiabilitiesCapitalReserves and surplusDeferred taxesSubordinate debtsTerm loans / term liabilitiesShort term bank borrowingsOther current liabilitiesTotalAssetsFixed assetsInvestmentsExport receivablesDomestic receivablesInventoryOther current assetsCash and BankMisc. ExpensesTotal

ANNEXURE VIProjected cash flow statements.

(Rs in lakhs)Years 1 2 3 4 5

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A. SourcesProfit before taxesDepreciationIncrease in term liabilitiesIncrease in deferred taxesIncrease in subordinate debtIncrease in short termborrowIncrease in other CLDecrease in misc. expensesTotalB. Disposition of cashIncrease in fixed assetsIncrease in other currentassetsDecrease in term liabilitiesIncrease in misc. exp

TaxesTotalSurplus / deficitOpening balanceClosing cash balance

ANNEXURE - VII

CREDIT RISK ASSESSMENT FORMAT

(As stipulated for specified loan amount (Rs.2L to Rs.50L or Rs.50L to Rs.500L orRs.500L and above as the case may be)

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Annexure VIII

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DETAILS OF THE ASSOCIATE CONCERNS. (Please provide the following details inrespect of each associate concerns).

I Name of the concern.

a. Background in brief:

b. Directors / Partners / Trustees etc.Name Other directorships

c. Financial performance : (Last three years audited figures) (Rs lakhs)

Date Date Date

Audited Audited Audited

Net salesPBIDTInterestDepreciationPBTProfit after tax (PAT)Net worthLong-term debtCurrent liabilitiesFixed assetsCurrent assetsLong-term investments

Net working capitalTotal assets = liabilitiesDebt/equity ratio (Times)TOL / TNWCurrent ratio

Related party transactions (past two years)(Rs in lakhs)

As at / for year

c.Credit facilities from our Bank:

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Status of the accounts: Standard

(Rs. in lakhs)No Nature Amount Balance as on

20/7/04Overdues/arrears

Disbursed on

FUNDED

1234TOTALNON FUNDED1TOTALGRAND TOTAL

Securities:

Primary

Collateral

Others

Guarantors

d.Credit facilities from other Banks / FIs:

Bank / FI Amount Interes

t

Period Balance Over-

dues

Security

Term loans

TotalWorking capital

Total

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