Account : M/S amritham tyres Ac No –yet to commence

Branch :Orleanpet (1619)

Loan Tracking No. :

Proposal received by Branch on

Proposal received by Regional office on
Proposal received by Central office on
Further particulars received on

Indian Overseas Bank

Regional Office, Pondicherry
Memorandum to Regional Level Credit Committee
(For Renewal cum Enhancement)
(Board Note from Page No. 1 to 25)
Date: 29.09.2019
1. Branch : Orleanpet(1619) Region: Pondicherry
2. Account: M/S sri amritam tyres represented by proprietor
Mr Alok Khaitan
Registered office address – No -120 mariamalai adigal salai Group: Nil
Puducherry Puducherry 605001

3.1.Activity: selling of different variety of tyres and seller Industrial classification: Others
3.2. Sector TCD

4.0 Purpose of Note:

4.1.Sanction of following limits. (Rs. In lakhs)

Nature of limit/f Purpose Existing Revised (+ Margin Interest % Interest %

acility Limits Limits )/ Existing rate proposed /
(-) Applicable
Cash Credit SME Working 00 70 70 30% MCLR+ 2.35% MCLR + 2.35%
easy scheme Capital (ie10.85%) as (ie 10.85%) as
per circular per circular
dated 9.8.19
dated 9.8.19
MCLR rate is
MCLR rate is 8.50%
8.50%
4.2. Sanction for Renewal of CC limit under IOB SME easy scheme

4.3. Confirmation for: Nil

4.4. Information for: Nil

5.1 Repayment terms: NA

Page 1 Of 18
 2

5.2 Value of Security (Rs. in lakhs): Prime - Stocks & Book debts Collateral: Rs.80.60 lakhs
residential vacant land
5.3 Guarantors and their net worth: (Rs. In lakhs)
Name Age Address Worth As on
Mr alok khaitan DOB- 13, 7th cross street, brindavanam 100.00 30.9.2019
Proprietor 10.04.1974 Puducherry 605013
46 Year

Corporate Guarantee, if any (with TNW): Not Applicable

5.4. Reasons for reference to RLCC (CRM) (Sanctioning authority): (Rs. in lakhs)
Discretionary Powers Proposed limits
Nature of Limits Scale 2 cRM
Secured + Unsecured limits per borrower 20 70
Unsecured limits per borrower 10 Nil
Total limits for Group 20 70
Limits fall under RLCC (CRM) powers. Other requests fall under NIL

6. Date of establishment 01.07.2007

7. Banking with us since 18th August 2012 with our Branch.

8.1. Names of Age Worth(Rs. in lakhs) Experience (in brief)

Partners/proprietor Designatio Amount As on
n
Mr alok khaitan Proprietor 10.04.1974 100 30.09.2019 More than 12 years
Proprietor 46 Year experience in the field of
13, 7th cross street, selling of tyres
brindavanam
Puducherry 605013

8.2.Among the above who are the key promoters/persons and their background:
Mr alok khaitan
Vis the key person and taking care of day to day operations of the organization.
8.3. Whether the company/directors/ Nil
guarantors/associates are in RBI defaulters /caution list as on
Whether in ECGC specific approval list.
If any of the directors/promoters is in the willful defaulters' list
with RBI/ECGC, the reasons for considering the proposal.
8.4 Whether above directors /their relatives are directors of No
our Bank/other Banks including directors of Scheduled Co-
operative Banks, directors of subsidiaries/Trustees of Mutual
Funds/Venture Capital Funds. Whether any of the
directors/partners/proprietor is an NRI and any of them is
related to directors /senior officers of our Bank/other Banks.
8.5. Share holding pattern: % of shares held by Not Applicable since partnership firm
promoters/group/associates/FIs/public etc.

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 3

8.6. Background of firm:

The applicant is dealing in selling of tyres in the firm name of S sri amritam tyres . The borrower has been
actively engaged in trading of tyres activities and has been banking with union bank of india puduchery branch since
2007. They have constructed more than 20 individual buildings both residential and commercial in the last 3 years.

The customer is presently having a major project at hand with Dakshin women care hospital & Fertility centre worth Rs.
5,26,86,055/- (Rupees Five Crore twenty six lakh Eighty six thousand and fifty five only)(work order enclosed) and three
other minor projects (Details enclosed). They are seeking yearly renewal of existing limit to Rs.50,00,000/- (Rupees Fifty
Lakh only) for these projects. The operations of the account Kavi Builders &Promoters (161902000000495) is
satisfactory.

8.7. Value of the customer Subjects are very influential in the area and their family members are maintaining accounts
with our branch and are very helpful in sale of para banking products also
9.1. Financing Arrangement Sole
9.2. Leader in case of consortium Not Applicable
9.3. Date of Last sanction/renewal and
Sanctioning Authority

10. Exposure to subject Company from all Banks/FIs: (Rs. in lakhs)

Name of Existing in lakhs Proposedin lakhs
the Bank Term loan Working capital Non Fund Term loan Working capital Non Fund
Consortiu based based
m
/Multiple
Amt %* Amt. % Amt. % Amt. %* Amt. %* Amt %
IOB Nil - 70 - Nil - Nil - 70 100 Nil -
Total Amt Nil WC+NFB---70 NIL Nil WC+NFB:70+NIL
% of share in case of consortium and reasons for increase/decrease in our share: Not Applicable
10.1. Borrowing powers of the company: Partnership Account

11. Exposure to Group sanctioned by our bank: As above

12. Whether single/group borrower exposure within No
prudential norms (whether exposure norms as per
RBI/Government Policy and as per Bank’s own Loan
Policy)
If such exposure is not within prudential norms,
justification for considering the proposal

13. Compliance with industry exposure norms. Not Applicable

(whether exposure norms as per RBI/Government
policy or as per Loan Policy). Others
14.1. Asset Classification/Income recognition: Standard / Performing

14.2. RAM Rating-Here CRRM Rating Only Not Ram Risk parameter Existing Revised Final
Rating And Rating Copy Is Enclosed Herewtih . Final []

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 4

Industry TR 2 Under process

Business TR 3
Financial TR 3
Management TR 3
Overall Rating TR 3

Explanation for the rating assigned

14.3. External Rating (where applicable) Not Applicable
Name of the Rating agency
Rating assigned with Date
Investment/ non-investment grade
15.1. Risk Weight assigned 100%
15.2 Minimum Capital Requirement (at 12%) 12% of Rs70.00 => Rs.8.4 lakhs
15.3. If concession in pricing, by whom authorized Applicable interest Existing interest Proposed interest
and from when, with justification in brief. rate rate rate
1 yr MCLR +2.35% 1 yr MCLR +2.35% MCLR + 2.35% (ie
10.85%) as per
circular dated 9.8.19
MCLR rate is 8.50%
No concessions proposed
16. Loan policy guidelines relating to Margin, Yes
Security, key financial ratios like DER, DSCR etc.

Any deviation from the stated policies /guidelines

and justification for the same in brief. If so, who has
the authority to deviate the norms?
17. In case of project loans, furnish – Cost of project Not Applicable
& Sources of finance –the agency who has conducted
techno economic viability study.

18.1. BRIEF FINANCIAL INDICATORS OF SUBJECT COMPANY: (Rs. in

lakhs)
Audit status Audited Audited Provisional Projected Projected
Audited
Year ending 31.03.2016 31.03.2017 31.03.2018 31.03.2019 31.03.2020 31 03 21

Net Sales 542.96 627.40 1024.78 1117.01 1217.54

437.84
Net Profit 11.39 10.59 19.53 21.81 23.80
8.27
After Tax
Cash 11.39 10.59 19.53 21.81 23.80
8.27
Generation
Net working -3.30 4.73 9.33 35.73 48.07
3.89
capital
Current ratio 0.97 1.05 1.17 2.09 2.30
1.06

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 5

TNW 13.19 15.81 29.35 44.64 61.07

16.02
TOL / TNW 9.38 7.27 1.92 0.96 0.69
4.51

18.2.ABRIDGED FINANCIAL POSITION Rs. in lakhs

Audit status audited audited provisional PROJECTED PROJECTED
audited
Year ending 31.03.201
31.03.2017 31.03.2018 31.03.2019 31.03.2020 31 03 21
6

LIABILITIES -
13.19 15.81 29.35 44.64 61.07
Capital and 16.02
Reserves
- Long 6.21 10.21 0.00 10.02 5.01
11.75
Term Liabilities
- 117.53 104.75 56.49 32.86 37.00
60.57
Current Liabilities
- TOTAL 136.93 130.77 85.84 87.52 103.08
88.34
LIABILITIES
ASSETS - Fixed 22.70 12.60 20.02 18.93 18.01
23.11
Assets
- Non- 0.00 0.00 0.00 0.00 0.00
0.77
Current Assets
- 114.23 109.48 65.82 68.59 85.07
64.46
Current Assets
- 0 0 0
Intangible Assets
- TOTAL 136.93 130.77 85.84 87.52 103.08
88.34
ASSETS

18.3. Comments on financials/performance of the company:

Sales
Subjects have achieved sales of Rs.627.40 for the year ended 2018. They
They have estimated Rs. 1117.01 lakhss for FY 2020 and Subjects have projected Rs.1217.54 for FY 2021

NPAT
Subjects have achieved NPAT of Rs.10.59 lakhs for the period FY 2018 and Rs.19.53 lakhss for FY 2019. They
have projected Rs 21.81 lakhss for FY 2020

NWC
NWC is Rs.4.73 lakhs for the period 2018-19 and estimated an increase to Rs.9.33 lakhs for the period 2019-
20 and projected to Rs.35.73 lakhs for the period 2020-21.

Current Ratio
The CR for FY 2019is 1.17:1 and projection for FY 2020and 2.09 is well above the benchmark level of 1.33:1

Overall financial parameters are considered satisfactory

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 6

19.BRIEF FINANCIAL INDICATORS OF GROUP COMPANIES, IF ANY: No Group

20. CONDUCT OF THE ACCOUNT:

20.1 Latest outstanding in account (FB & NFB facilities provided by our bank)
Position as on 31.07.2019 (Rs. in lakhs)
Nature of facility Original Limit DP Max Outstanding Irregularity * /since
when
CC-SME easy 70.00 70 Nil
A/c No.495

20.2 Details provided for full financial year from 01/04/2018 to 31.03.2019 (Rs in lakhs) new proposal under consideration
Nature of Limit Max. Min. Turn over Average Income Int. serviced Upto
Facility O/s O/s Utilization Earned
01.04.2018 50.00 -48.48 65.05 770.24 -26.70 3.10 March’ 19
31.03.2019
01.04.2017 – 50.00 -28.97 11.77 361.93 -8.34 0.97 March’ 18
31.03.2018

20.3 Comments on average utilization and extent of Operations in the accounts satisfactory.
utilization of various limits
20.6 Comments on frequency of adhoc/excess granted, Branch has allowed excess few times subsequently it got
period allowed, status of regularization, and regularized promptly by the subject.
confirmation obtained.
NA
Repayment of interest commitments

Promptness in retirement of bills. Not Applicable

Adverse features, if any (% of bills returned, LG invoked, Not Applicable

LC devolved etc.,)
Not Applicable

21.1. a Date of registration of charge Not Applicable

b. Date of joint documentation Not Applicable
(for Consortium advances)
c. Whether Debit Confirmation of Yes
Balances have been obtained from
the borrower for the last 3 years on
half-yearly basis.

Page 6 Of 18
 7

21.2. Details of Searches made in ROC (for companies) Not Applicable

with details of date of search, whether our charges are
reflected in the search report, whether annually
obtained etc.
21.5. Unit visit by branch - date when last conducted, 3.10.2019 by mr amulua kumar sahu
comments on adequacy of stocks to cover DP and Manager – No adverse comments
adverse findings, if any.
22. Status on rectification of irregularities pointed out by CO Inspectors/RBI /Concurrent Auditors/Statutory
Auditors/LFAR/Stock Audit/ Loan Review Mechanism

Observations / Remarks
List of Irregularities not rectified
F-237 needs to be obtained Since obtained
DPN 14A ,110A,F-16 kept blank complied all Observations
Audited balance sheet for 31/3/2018 not held. now held
partnership deed dated-24/11/2016 needs to be registered deed since obtained .
registered

23. Security Coverage: (Rs. in lakhs)

23.1. Prime Securities for credit facilities provided to our bank. - Hypothecation of stock ( construction raw materials),
consumable stores, Book Debts (not more than120 days)
23.2.-Collateral Securities --
Nature of Limit Nature of Security Date & Name of Value
facility approved valuer
CC under 70.00 Residential Vacant plot 3600 sqft in RS No 200/1/e/4, 05.02.2018 – Rs80.60Lakhs(FS
IOB SME Cad Nos949 pt, 951 pt& 952 pt, Plot Nos 50 & 51, 1 st Er. Prathaban V)
Contractor main road, Ganapathynagar, Oulgaret owned by
B.Kavitharani w/o V.Balasubramaniyan, one of the
partner valued at FSV Rs 80.60 lakhs as per our banks
panel valuer Mr Mprathaban report dated 05.02.2018

23.2. Collateral Security details (if more details, it may be given as Annexure)
(Rs. in lakhs)

Hypothecation of stocks and book debt of the firms

23.3 Fixed asset coverage ratio for term loan exposure (should be arrived based on forced Not Applicable
sale value, in case of Land & Buildings and Book value or Market value whichever is less in
case of Plant & machinery)

24. Details of Assessment of Working Capital

Subjects have completed projects worth of Rs. 27.13 Lakhsfor the year ended 2019. They have reported
projects worth Rs. 1210.00 Lakhs (Details attached) which are in progress.

Under IOB SME contractor Scheme

Page 7 Of 18
 8

Particulars (Rs in
lakhs)
Sales for the period 2017-18 (Audited) 627.40
Sales for the period 2018-19 (Provisional ) 1024.78
Sales Projected for the period 2019-20 (Projected) 1117.00
Accepted Estimated Sales for 2019-20 1000
Accepted Projected Sales for 2019-20 ( 5 % growth) 1000
25% of accepted projected sales – (A) 250.00

As per Nayak committee recommendation based on the above accepted sales

(Rs. in lakhs)
2018-19 2019-20
Sales Projected 627.00 1024.00
Sales accepted 650.00 650.00

25% on projected turnover 130.00 130.00

5% Margin 26.00 26.00
MPBF(B) 104.00 104.00

METHOD OF ASSESSMENT

Subjects are engaged trading of iron rods and cements in Puducherry &nearby areas and his requirement
is within Rs.750.00 Lacs. Therefore, we may assess working capital requirement as per Turnover Method of
Nayak Committee norms for the year 2019-20 on the basis of accepted projected sales as per our extant
LPD-2018 in force.

SALES TURNOVER PROJECTED / ACCEPTED

The turnover of the firm is increasing over the years for past few years as understood from the financial
statements. The firm has achieved gross sales of Rs. 246.39 lacs during the year 2017-18 and Rs. 650.00
lakhs (estimated) during 2020-21. The turnover has increased to the extent of 250% during 2020. In view of
past sales, we may accept the sales at Rs.650.00 Lac for 2019-20 and assess the WC requirement for the
unit.

The firm has requested for sanction/renewal of limit of Rs50.00 lacs against value of L & B properties. From
the financial statements of the firm, the limit is assessed as under ;

NON FUND BASED LIMIT : LETTER OF GUARANTEE : NA

25.RISK ANALYSIS:-
Critical Risk factors Mitigation
Abnormal increase in cost of construction materials, Unit may overcome this problem by keeping sufficient
natural calamities etc. may pose a risk to the Unit stock of materials in advance.

Page 8 Of 18
 9

26. SWOT analysis:

STRENGTH :

 Experienced in the line of activity

 Enjoying reputation & Goodwill in the field
 Confirmed work orders at hand
 Quick decision can be made being a proprietorship unit

WEAKNESS:

 Being proprietor, he has to look after overall activities of the unit. However, he has adequate staffs to
compensate this lacunae.

OPPORTUNITY :

 Rapid gowth in construction projects in Pondicherry city

THREAT :

 Natural calamities may hamper execution of civil works being in coastal belt
 Unusual hike in Cost of construction materials
 Competition from peers in future

27. Processing Fee :

28. Other Matters

Valuation Report

COLLATERAL security offered by the subjects is valued by D Jagannathan vide report dated 05.2.2018 where in
FSV of the VACANT LAND is given as Rs.80.60lakhs.

CIBIL Report
No of Accounts Advances Balances Overdue

Page 9 Of 18
 10

Balassoupramanian V 04
Partner
CIBIL Score 819 77.32 lakhs 52.51 lakhs Nil
PAN No AGSPB0709M

Kavitharani B
CIBIL Score 812 1 30.00 LAKHS 26.13 LAKHS Nil
PAN No CWCPK5243B
Kavi Builders And Promoters
01 50.00 LAKHS 4.00 LAKHS NIL
GST NO-33AAKFK7219D1ZI
*Report taken at our end

CIBIL Report of Kavi Builders And Promoters

Only our branch cash credit ac is showing in the commercial report only..

CIBIL Report of Balassoupramanian V

Partner Out of 04 accounts 1 accounts are closed. In the balance 3 accounts, 2 are auto oans availed at our
Branch and 3 are loan availed at other institutions / banks. In the assets and liability statement submitted
by the borrower only loan availed at 100 Feet Road branch is listed balance loan accounts are not listed.

CIBIL Report of Kavitharani B

Partner Out of 1 accounts 00 accounts are closed and 1 accounts availed at our branchg / banks as
guarantor for cash credit loan . In the assets and liability statement submitted by the borrower Nil
statement is being submitted in the liability coloumn.

29.
IOB-SME –EASY SCHEME- Norms and Compliance:

Parameters Norms Compliance

Target Group MSME Units (Incl Mfg, Service, P&SE and R T The subjects are Proprietorship
coming under the ambit of Micro and Small concern and medium enterprises
Sector as per RBI directives/ bank norms)
having Sole Banking Arrangement with our under manufacturing sector
bank.
Individual/Proprietary/partnership/Corporate engaged in manufacturing and
solely banking with our bank trading of edible oil business

Purpose To meet the working capital needs andTo meet their working capital
also term loan needs viz. buying a shop,requirement..
showcase, equipment and in general for
setting up / running a shop or office or any
other contingent requirements

Page 10 Of 18
 11

Parameters Norms Compliance

Type of loan Working capital needs will be met in theEproposed of working capital limit
form of Cash Credit or TOD. Term Loan canunder IOB SME EASY SCHEME
be provided for financing the setting of
shop or office including purchase of shop
or office or any other contingent
requirements

Amount ofRT: Max. Rs.5.00 Cr (both FB & NFB) The firm is coming under SME
loan Mfg & Serv : Above Rs.10 lac to Rs.500 lac service sector so , the proposed
limit of Rs.50.00 lakhs is within the
stipulated limit.

Area wise -NA NA

discretion

Interest So applicable rate of interest will for CC IOBThe applicable rate of interest for the
SME EASY scheme The applicable rate ofIOB SME EASY will be based on MCLR
interest will be based on MCLR rate for onerate for one year (i.e 8.50%) and
year (i.e 9.70%) and spread over of 1.50%spread over of 1.35% i.e total net rate
i.e total net rate of interest . 11.20 % at of interest . 9.85 % at present as per
present as per BOD circular No.BOD circular No. BOD/ADV/217/17-
BOD/ADV/1/16-17 dated 02.04.2016. We18 dated 09.04.2018. We may accept
may accept and stipulate the same. and stipulate the same.

Repayment TL: Repayable in max. 5 TO 7 YEARS Not applicable

CC: To be renewed / reviewed every year Renewed every year

Assessment a) For TL – 75% of invoice amount

b) For WC-25% of turnover 25% of turn over or 70% (for Urban) of

(a) and (b) should not exceed the area specific
FSV of the security offered, whichever
limit subject to FSV value of immovable
property less margin and value less margin in is less.
the case of liquid securities

Other matters1. NO CGTMSE COVER FOR THE SCHEME --- 2. YES THER IS NO CGTMSE COVER FOR
relevant to the -- THE ACCOUNT AS PER SCHEME
To be sanctioned by regional office only
proposal
Pre-release confirmation from
RO/concurrent auditors

Page 11 Of 18
 12

Parameters Norms Compliance

3. Audited Balance sheet statements for 5. Projected balance sheet taken since
Bank CURRENT account statement for the project is new one Yes being
last 6 months taken

No discretion to allow excess over the

sanction limit
As per CSSD/ADV/593/2015-16 dt.06.07.2015
4.
Security –PRIME Immovable property and / or Security coverage in the form of residential land
liquid assets such as Life policies and building
of LIC of India and Private Rs.in lac
insurance companies approved
FSV of the property - Rs. 85 lakhs
by IRDA, NSC/IVP/ KVP etc.
30% margin (Urban) - Rs. 25.5 lakhs

Eligible loan amount - Rs. 59.5 lakhs

CC limit under IOB SME EASY

Recommended : Rs. 45.00 lakhs.

Assets Coverage available:

As against the proposed exposure of Rs.45.00

lakhs under IOB SME EASY the security available
is Rs.85 lakhs which is 150%.

Hence the margin of 30% of the FSV of the

property for the proposed exposure under IOB
SME EASY is satisfied.
Margin ona) Liquid securities:
security Life policies- 10% of SV
KVP -20% of face value As said above the applicable margin 30% of
IVP - 20% of adv value FSV of the property, cuddalore is an urban
Term Deposit - 10% center, is complied with.
of advance value

b) For immovable properties:

Page 12 Of 18
 13

Parameters Norms Compliance

Metro and urban centres- 30% of

FSV

Semi-urban centres -30% of FSV

Rural centres -40% of FSV

Sales tax Documents required for existing units Projected balance sheet for the
assessment upto Rs 25.00 lakhs limit –STAO or current year and Sales Tax
Balance Sheet for the 2 previous years Registration number

For above Rs.25.00 lakhs limit –

STAO/Audited balance sheet for the 2
previous years.

For New units:

Projected balance sheet for the current

year and Sales Tax Registration number.

End use Wherever possible direct payment to

verification (TL) the dealer is made in the case of term
loan amount. However, it need not beThe present proposal is to meet the
insisted upon if end-use can be verifiedWorking Capital requirement under
IOB SME EASY as CC limit.
otherwise.

Monitoring of Although monthly submission of stockIt is stipulated as a condition that

CC statement is not insisted upon, butbranch has to conduct periodical
periodical inspection of borrower’s site inspection of borrower’s unit to
should be carried on to monitor that theensure end use of funds.
advance amount is being property
utilised.

CIBIL Credit It is compulsory to draw / generate CIBIL

Report Credit Report for considering loans of
Rs.2.00 lac or above to individuals under
Retail Credit Segment CIBIL Credit report IS obtained and
held with proposal

Value addition LIC/Group insurance/Visa card atYES

concessional rate

Page 13 Of 18
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Parameters Norms Compliance

Security If a client has more than one unit andThe proposed exposure is for M/s sri
consideration he applies for the facility under thisSakthi Kuberan Traders
in case of more scheme, the total liability need not be
than one limit taken into account for determining
existence. area specific limit provided difference
securities/properties are offered as
collateral for each unit.

Priority status Yes under SME

SME

30. GIST OF RECOMMENDATIONS:

 Firm is IN THE activity of civil contractor and promoters for the past 10 years (since 2009) and the unit is
close to our Orleanpet Branch premises.
 Firm was banking with our Branch since March 2010
 Started operating with our Orleanpet Branch since August 2011
 Our exposure is sufficiently covered by the prime security offered by the subjects.
 The list of contracts agreed with different entity with the firm and details are furnished below.
Sl no Agreement with Date off Amount involve Status /purposeconstructionof dining
agreement hallbuilding for immcualte college
01 Immaculate Society 21/04/2018 Rs 210.38 lakhs Construction of proposaed dining an
,Pudupalayam building for immaculate
Cuddalore College,china kanganankuppam

02 Immaculate Society 21/04/2018 Rs 475.82 lakhs Construction of proposaed dining an

,Pudupalayam hostel building for immaculate
Cuddalore College,china kanganankuppam

03 Dakshin women care 18/11/2017 Rs 526.86 lakhs All civil works roads
hospital andfertility culverts water and sewer
centre works including treatment
Of tanks and structures .

31. Limits Proposed: Rs. in lakhs

Nature of facility Amount Margin Rate of interest Prime Security

Page 14 Of 18
 15

CC under IOB SME 50.00

MCLR + 2.35% (ie 10.85%) as
Contractor (Rupees Fifty Lakhs
30% per circular dated 9.8.19 As listed below
Only)
MCLR rate is 8.50%

Prime Security
Hypothecation of stock ( construction raw materials), consumable stores, Book Debts (not more than120
days)

Collateral Securitiy

Residential Vacant plot 3600 sqft in RS No 200/1/e/4, Cad Nos 949 pt, 951 pt& 952 pt, Plot Nos 50 & 51, 1 st
main road, Ganapathynagar, Oulgaret owned by B.Kavitharani w/o V.Balasubramaniyan, one of the partner
valued at FSV Rs 80.60 lakhs as per our banks panel valuerMrMprathaban report dated 05.02.2018

Guarantors

All partners in their individual capacity

1.MrBalassoupramanian V Partner
2.KavitharaniB W/O MrBalassoupramanian V Partner

32. Other Terms and conditions of Sanction:

1] The firm should submit the following details in connection with on going project on quarterly basis:-

a. Order No and Date b. Name of the party c. Value of contract

d. Value of contract expected e. Payment received so far

f. Amount receivables against the contract (Book debts).

g. Expected time of completion.

1. The statements of bookdebts of the firm should be submitted every month for arriving at D.P and
the statement should be countered signed by the Chartered accountant every quarterly.
2. All formalities relating to equitable mortgage should be completed prior to release of the limits.
4. The validity period including the claim period of the letter of guarantee (performance) should not
exceed five years.

Page 15 Of 18
 16

1. 5. Formalities with regard to creation of equitable mortgage / supplementary narration in the title
deeds register followed by Registered Memorandum to be complied including obtention of BPEC, tax
receipt etc.

2. Mortgage should be registered with central registry within 30 days of creation of mortgage by
submitting Form-1 and remitting fee applicable fees along with GST to the Account No.970749 with
our Cathedral Branch.

3. Branch to ensure that mortgage formalities to be perfect in all respects to safeguard Banks interest
before renewal / enhancement of limits.

4. Branch to insist / impress upon the party to route the entire transactions including the cash
transactions through our bank account only.

5. Branch to obtain BPEC upto date for property offered as security and confirm RO.

6. Branch to ensure building is constructed as per the approval plan and confirm RO.

7. Sales turnover is not achieved by the firm as estimated, the limit will be scaled down proportionately
during the renewal of limits.

8. Cash Credit limit to be renewed every year

9. Periodical inspection of the borrowers unit should be carried out to monitor that the advance amount
is properly utilised.

10. Display of hypothecation/pledge board should be done prominently at all plakhses of

storage/business.

11. CIBIL Charges of Rs.1,100/- to be credited to Regional Office.

12. Applicable processing charge should be collected and credited to RO.

13. Branch to collect applicable mortgage charges and credit to their P&L A/c, if not collected before and
confirm RO with charges collected along with the date.

14. Branch to submit LRM within 90 days of the sanction date.

15. Branch to submit CSS every month to RO

16. The prime and collateral securities should be comprehensively insured for full value with banks clause
preferably through M/s.UniversalSompo General Insurance Co. Ltd.

17. Branch to ensure that the subjects deal exclusively with us an undertaking to this effect to be
obtained.

18. Branch to obtain BPEC and confirm.

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19. Branch should diarise and obtain revival letters from the borrowers/guarantors promptly before the
documents are 27 months old and whenever the situation warrants the same should be obtained well
before the period of 27 months.

20. Consent cum authorization letter for disclosure of information to CIBIL to be obtained from the
borrowers/guarantors as stipulated in CO-CSSD circular no. Adv/192/2002-03 dated 31.1.2003 and
subsequent circulars issued in this regard.

21. Undertaking letter from the borrower giving their consent for Publication of their names in the list of
defaulters, in the event of their default in payment of dues to the bank.

22. Important events like suspension of manufacturing activities, change of premises, fire in the
factory/office, labour trouble, strike or any other events that are likely to affect the production and
endanger the bank’s security should be immediately brought to the notice of the bank by the firm
detailing the reasons leading to such eventuality and steps taken to overcome it.

23. Branch should be guided by CO circular Permanent Adv/51/2006-07 dated 07.02.2007 for levy of
commitment charges on unutilized portion of working capital limits and should scrupulously follow
the guidelines. The same should be advised to the borrower while advising the sanction.

24. Branch to ensure that the guidelines given regarding Fair Practice Code for lenders in our bank’s
Circular PER/ADV/73/2007-08 dt.14.06.2007 are complied.
25. Branch is advised to adhere to the guidelines and operational instructions provided in CO Circular –
Circular - Master/21/2012-13 dt 12.07.2012 relating to KYC norms and Anti-Money Laundering
procedures.
26. Branch should implement such of those latest instructions as approved by the Board/MCB and duly
circulated by CO and the new guidelines introduced with respect to loan documentation, between the
date of sanction & date of availment.
27. All other usual terms & conditions / documentation as stipulated in the book of instructions / manual
on documentation / C.O. / R.O. circulars issued from time to time and applicable for these types of
advances should be complied with.
28. Sanction / Renewal of limits should be communicated to the borrower in F. 568 as per format
prescribed by C.O. vide Circular ADV/202/2008-09 dt 20.09.2008. The limits are to be released only
after obtaining consent of the borrower / Guarantor to our terms and conditions in duplicate of the
Branch Sanction letter.
29. Branch to submit Regional Office compliance of terms of this sanction within 30 days without fail.

(Asst.Manager ) (Manager-1stLne)

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(Other information on the borrowal account and CMA data is given in Annexure )

Annexure
OTHER INFORMATION ON THE BORROWAL UNIT:
1. Name of the Company Kavi Builders And Promoters
2.Constitution-if partnership whether registered Partnership –Registered
3. Location – Registered Office Old No 52 And New No 8,4th Cross Street
(with full address) Vivekannadha Nagar Puducherry 605005

-- Corporate Office : -do-

-- Factory : -do-
4. Whether located in backward area No
5. Whether the factory /business premises is Owned or leased. Owned
If leased whether the Lease Agreement is in force and valid till.

6. Collaboration /Joint Venture if any No

7. Installed/licensed/utilised capacity NA
8. Performance of Subsidiaries/ Group Companies if investment NA
is more than 10% of Net Worth. (Insert Table and give salient
financial parameters)
9.1 Whether shares are listed and if so in which of the Stock NA
Exchanges
9.2 What is the market price of the share and whether it is NA
traded actively? (Please indicate price and volume movement
of shares traded with 12 month highs & lows)
10. Segment of account under Basel II
11.1 Details of Associates:
Name Activity Limits (Rs in lakhs) Bankers IRAC
TL WC NFB

11.2 Conduct/Credit report of Associates NA

11.3 Whether any of the Associate company is in Sick/Suit Filed No
category if so, give details.

12.1 Present outstanding in credit facilities provided by FIs/all Banks (including our Bank)to the Company:
Position as on 31/07/2019 (Rs. In lakhs)
Name of Term loan Working capital NFB
Bank/Inst.
Limit DP O/s Limit DP O/s Limit O/s
IOB Nil Nil Nil 50.00 50.00
Details of Irregularities with reasons (since when): Discussed in Page No.7
12.2 Present outstanding in credit facilities provided by our Bank, to the Group:
Position as on 30/11/2017 (Rs. In lakhs)

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Name of Co. Limit DP Outstanding Irregularity*

TL WC NFB TL/WC TL WC NFB TL WC NFB

* Details of Irregularities with reasons (since when):

Discussed in the board note Point No.20 page no:8
13.0 Reschedulement / Restructuring of a/c: No
Any reschedulement of term loan agreed?
Date of previous restructuring if any :
13 .1 FOR PROJECTS UNDER IMPLEMENTATION No
Likely date of financial closure for new projects (date of execution of documents either by
consortium or as sole bank) as estimated.
13.2. Deemed date of completion of the project as decided by the independent group that has No
been taken on record
13.3. Date of commencement of commercial production as originally given at the time of No
financial closure.
13.4 Any delay envisaged in commencement of production NA
13.5 Revised date of commercial production & whether it is beyond 6 months from the date NA
originally envisaged (or beyond 1 year for infrastructure projects).
13.6. Details of original and revised project estimates, if any. NA
13.7. Compliance of RBI guidelines on restructuring. NA
14. Insurance (Rs. in lakhs)
Prime Securities Value of the Insured value Valid upto
Securities
Stocks NA
Plant and Machinery NA
Others(Specify) No
Collateral Securities
Building
Machinery
Others (specify) No
Comments on adequacy of Insurance:
Branch has submitted a copy of insurance of building by the tenants which is for the plant and machinery inside
the premises and for the building with financiers as Indus Ind Bank.
Branch to obtain fresh insurance policy for the building offered as prime security with our bank name
incorporated for the full value.
Branch also to ensure that stocks are insured for the full value with our banks clause which we may stipulate as
precondition.
15.1.Whether Stock Statement and Book Debts Statement (if NA
applicable) is submitted promptly and up to date
15.2.Whether CSS (if applicable) is submitted periodically and up CSS statement submitted regularly
to date
15.3.Whether the unit is prompt in the submission of QIS- III? NA
15.4. Stock/Book Debts as per last Stock Statement dated: Not Applicable
Details Rs. in lakhs Details Rs. in lakhs

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Value of Stock Value of Book Debts (Age of Book Debts as per

sanction terms ………days / months
Less: Sundry Creditors
Less: A & E
Net Value of stock
Less Margin Less Margin
Drawing Power Drawing Power

16. OTHER INFORMATION:

16.1. Whether the unit is a sick unit No
16.2.Whether the unit is under nursing (if so, brief particulars No
of nursing programme may be given)
16.3.Whether the credit facilities were last sanctioned /renewed Yes compared financials for 2016-17 along with
based on provisional financial statements? If so, whether the audited balance sheet.
provisional figures have been compared with audited financial Discussed in Point No.18.1 & 18.3 in the main
statements received subsequently? If so please discuss about board note.
the variance in essential financial parameters if any, in detail.

17.CERTAIN PARTICULARS ABOUT THE BORROWER UNIT:

17.1.Method of Lending for Working Capital Limits (Nayak Nayak Committee
committee/MPBF I/II method/Cash Budget)
17.2.Whether the company is Export oriented; If so export turn No
over for the last three years
17.3.Availability of refinance NA
17.4.Whether product is under Selective Credit Control of RBI No
17.5. Pollution Control Clearance, if any required. No
17.6. Payment of statutory dues pending: No
(PF, ESI, Wages, Sales Tax, Income Tax, Excise Duty etc
pending);if pending, reasons
17.7. Impact due to WTO/ Government policies like import No
liberalization/ reduction of subsidy
17.8 Whether declaration from borrower/directors/partners in Yes
pending court cases/disputes are obtained as per RBI circular
No. DBOD. BC.DL.104/20.16.002/99-2000 dated 23.10.99.
18. Industry level general performance: Satisfactory

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