S-FORMAT INDEX

ANNEXURE I
Circle/SBU:Bhopal
Branch: SME Branch, Bhopal
Section
Contents
Page
No.
A
Borrowing units Profile
a. Name & Constitution of Unit
11
b.CIF No., Address & Location of the Company
c. Name & Address of Promoters/Directors
d. Shareholding Pattern
12
e. Brief Background of Company/Group &
Management
f. Brief write up on the industry Sector and the
Companys standing
B
Credit History
a. Existing Limits with our Bank
13
b. Banking arrangement & Sharing Pattern
14
C
Present Proposal
a. Credit Limits (Existing & Proposed)
15
b. Credit Limits(Company & Group)
16
c. Present proposal
D
Performance and financial indicators
a. Performance and financial indicators-Comments
17
b. Movement in TNW
18
c. Efficiency Ratios
19
d. Synopsis of Balance Sheet & Comments on
adverse movements
21
e. Movement of long term funds(Funds Flow)
f. Activity-wise Cash flow analysis-Comments
23
g. Conduct of various facilities
24
h. Inter-firm comparison
E
Loan Policy : Deviations and Compliance
a. Whether names of promoters, directors, Company 26
and group concerns figure in defaulter/wilful
defaulters list
b. Deviations in Loan policy
27
c. Other Deviations
F
Risk Assessment
a. Credit Rating
28
b. External Rating
c.RMD Advisories
d. Earlier terms of sanction Compliance Status
e. Conduct of account
f. Utilization of limits
g. Statutory dues/Other Contingent Liabilities
h. Review of TLs (With other Banks/FI)

29

i. Risk/Adverse features and Mitigating factors

G
H

I
J

K
Annexure1
Annexure2
Annexure3
Annexure4
Annexure5
Annexure6
Annexure7
Annexure8

Assessment of Fund Based Limit

a. Assessment of working capital limit
b. Assessment of Term Loan
Assessment of Non Fund Based Limit
a. Computation of LC Limits
b. Assessment of BG Limits
c. Assessment of Credit Exposure Limits (Forward
Contracts/Derivative Limit)
Security
Pricing
a. Income Analysis
b. Other Banks/FIs Pricing
c. Proposed Pricing
d. Other concessions already extended/proposed
Other Terms and Conditions
SWOT analysis
Recommendation
Future Plans & Business Potential

30
32
34
39
40
41
43
45
46
47
48
49

Earnings & ROCC

50

Details of Due Diligence

51

Group/Associate Entities/Companies

53

Summary of Credit Audit Report

54

Consolidated financials of the group

55

Additional information required in case of PFSBU only

59

Additional information required in case of CDR only

62

List of abbreviations used

Section A

S-FORMAT

A. BORROWING UNITS PROFILE:

Circle/SBU:Bhopal
Branch :SME Bhopal, Govindpura
a. Borrowing Units Profile
Name: SURJEET AUTO AGENCY
Date of incorporation: 1978
Constitution: Partnership
Date of commencement of operations: 1983
If Listed company:N.A.
Market Cap (as
Industry: Auto
Segment: C&I (T&S)
Activity: Sales & Service of two wheeler vehicles of on................):
52 Week H/L (as
Bajaj Auto Limited and dealing in tyres of all
on..............):
vehicles
Group, if any:Not a recognised groupPromoter / CEO: Shri Tulsi Das Nenwani
Main contact person with contact number: Shri Tulsi Das Nenwani
New /Existing unit: Existing
If Existing Connection, since when:1983
Date of last Renewal/ Review:30.08.2014
Banking arrangement :1983
If Reviewed valid up to:
In case of takeover, Name of the
(as on
Bank / FI:
29.02.2016)
IRAC Status of
i. Advances:
Standard
ii. Investments
:N.A.
Status of compliance with take over norms, if applicable: Not Applicable

b.CIF No. Addresses &Locations of the Company:

CIF
4-5, Lajpat Nagar, Opposite Apsara Cinema, Raisen
road, Bhopal.
4-5, Lajpat Nagar, Opposite Apsara Cinema, Raisen
road, Bhopal.
1.4-5, Lajpat Nagar, Opposite Apsara Cinema, Raisen
road, Bhopal
2.Surjeet Auto Agency, Sant Kanwar Ram Nagar,
Berasia road Bhopal.
3.Surjeet Auto Agency, Handia road Harda.
4.Surjeet Auto Agency, Plot No.1, Mandakni Colony,
Kolar road Bhopal.
5.Surjeet Tyre Agency, Jinsi Chauraha Bhopal

Registered Office (Full Address)

Administrative Office (Full Address)
Factories/Production Centres/Showroom (Full
Addresses)

c. Names&AddressesofthePromoters/Partners*:[*IdentifiersbasedonKYCguidelines]
S.N
o.

Name

Desig
nation

DIN

PAN

Identifiers
Passp
ort

FullAddress
Others
(Aadhar
Card No.)

Shri Tulsi Nenwani

Partner

--

AAJPN6771C

--

--

72, Govind Garden Bhopal

(MP)

Shri Ramesh
Nenwani
Shri Mohan Nenwani

Partner

--

--

--

--

Partner

--

--

--

--

4, Lala Lajpat Rai Nagar

Bhopal (MP)
72, Govind Garden,
Bhopal

Shri Murlidhar
Nenwani

Partner

--

--

--

--

4, Lala Lajpat Rai Nagar,

Bhopal

Shri Nand Nenwani

Partner

--

--

--

--

78, Lala lajpat Rai Colony,

Bhopal

Shri Manish Nenwani

Partner

--

--

--

--

72, Govind Garden,

Bhopal

d. Shareholding Pattern. details of share holding pattern of Promoter /

Director: As on 31.03.2015: Not applicable as the entity is partnership
Concern. Share holding patterns of partners are as under
S.No. Name of the Promoter/
Director
Shri Mohan Nenwani
1
Shri Tulsi Das Nenwani
2
Shri Nand Nenwani
3
Shri Murlidhar Nenwani
4
Shri Ramesh Nenwani
5
Shri Manish Nenwani
6

No.
of
Shares held
-------

Value
of %
of
shares held
shareholding
-20.00
-20.00
-15.00
-15.00
-20.00
-10.00

Total

100.00

ii) Share holding Pattern as on 31.03.2015:Not applicable

Description
% of Holding
Promoters
-Pvt. Corporate Bodies
-Indian Public
-NRI/OCB
-Mutual Funds
-Banks/Financial Institutions
-Foreign Institutional Investors
--Others(Relatives)
--Total
--iii) Promoters shareholding (%) : Current Year: N.A.
Last Year : N.A.
Comment on change in shareholding pattern, if any: Not applicable
Whether Promoters shares pledged to our Bank/ other Banks/FIs:No
e. Brief Background of the Company/Group & Management
(To include competence/reputation/Corporate Governance etc):
M/s Surjeet Auto Agency (SAA), a partnership firm, has been in the sale
&servicing of two wheelers since 1978 when they had an agency of Scooter
India Limited (for Vijay Super). In the year 1983, the management of the unit
changed. Shri Surjeet Singh retired and the business was taken over by Shri
Mohan Nenwani & Brothers. Bajaj auto limited had appointed SAA as a sub
dealer in the year 1994. In the year 1999, Bajaj auto had promulgated a rule
that the district where dealers are available, sub dealer should not operate.
Thereafter, sub dealership of SAA for Bajaj auto was scrapped. After that, SAA
had obtained an agency of Lohia Motors Limited (LML) in January 2000. They
became pioneers in sales of LML vehicles in MP. However, in the meantime,
the SAA had applied for dealership of Bajaj auto. SAA got the dealership of
two wheelers of Bajaj auto Ltd. at Bhopal in October, 2001. M/s Surjeet Auto
Agency has been dealing with us since 1983.
Under this account, firm is enjoying credit facilities for the branches located
at:
B. Lajpat Nagar, Raisen road, Bhopal.
C. Sant Kanwar Ram Nagar, Berasia road Bhopal.
D. Handia road Harda.
E. Mandakni Colony, Kolar road Bhopal.
F. Jinsi Chauraha Bhopal.
At present firm is availing FBWC cash credit limit of Rs.0.75 crores and NFBWC
Bank Guarantee limit of Rs.1.00 crores under Traders Easy Loan scheme,
FBWC Inventory funding limit of Rs.3.00 crores under m-DFS scheme, Rs.3.00

crores under e-DFS scheme and Rs.1.50 crores under adhoc e-DFS scheme
under tie up with Bajaj Auto Limited for financing their dealer of two
wheeler(motor cycles).
For the purpose of business growth and better control, M/s Surjeet Auto
Agency has decided to Concentrate on the Raisen Road Bhopal Branch and
Kolar Road Bhopal Branch and withdraw the business from Branch offices of
Berasiya Road, Bhopal, Jinsi Chauraha, Bhopal(Tyre Business) and Indore Road,
Harda. Business at Berasiya Road Bhopal is now started in the name of
Gurukripa Auto Agency and at Indore Road, Harda in the name Ishan Auto
Agency, in separate firms owned by the same group/family. Dealership has
already been awarded to these Firms by Bajaj Auto Limited. Existing workmen
and sales team is taking care of the new firms business. Ownership is also
with the same group/family
Present Proposal: The firm has approached us in the May 2016 along with
the other two new firm Ishan Auto Agency and M/s Gurukripa Auto Agency
with request to consider the existing collateral properties already furnished in
Surjeet Auto Agency with the following changes/additional exposures in other
two firms:
i.
Reduction in exposure to Surjeet Auto Agency from Rs.925.00 lacs to
Rs.725.00 lacs
(From existing exposures in the form of e-DFS of Rs.300.00
lacs, ad-hoc e-DFS of Rs.150.00 lacs, m-DFS of Rs.300.00 lacs, Traders Easy
CCL of Rs.75.00 lacs and Traders
easy BG limit of Rs.100.00 lacs to
proposed exposure of e-DFS of Rs.350.00 lacs, ad-hoc eDFS of Rs.150.00
lacs, Traders Easy CCL of Rs.75.00 lacs, Traders easy BG limit of Rs.100.00
lacs and additional BG limit of Rs.50.00 lacs under regular scheme.
ii.
New sanction of FBWC limit of Rs.50.00 lacs under e-DFS scheme and
Bank Guarantee limit of Rs.45.00 lacs under Bank regular Scheme to Ishan
Auto Agency.
iii.
New sanction of FBWC limit of Rs.50.00 lacs under e-DFS scheme and
Bank Guarantee limit of Rs.55.00 lacs under Bank regular Scheme to
Gurukripa Auto Agency.
.

However, in view of the upcoming festival season and demand expected on account
of good mansoon, Company has requested to retain their fund bsed exposure at the
same level with gradual reduction in the form of Dropline Overdraft under ABL. Firm
has requested us to realign the credit facilities as under:

Group:The Company has three associate concerns. All of them are banking with our Bank. The details are
furnished inAnnexure-4.

f. Brief write up on corporate actions done/to be done/proposed like

merger, demerger, corporate restructure (not CDR), sale of
undertakings etc.: Not Applicable
g. Brief write up on the industry/Sector and the Companys
Standing
(Comments on domestic/international standing, market share, business
strategies, competitive The units showroom is located on Raisen road. It covers a major chunk
of new Bhopal as also nearby districts. The unit has established good marketing arrangements. It has
been covering Bhopal city and adjoining districts through wide publicity in newspapers and local TV
channels. The unit has also been organizing melas for exchange of old vehicles with new ones and free
check-up camps for two wheelers whether purchased from SAA or not. Round the clock RTO registration
facility has also been made available. The unit has a good service station with a servicing capacity of 6075 vehicles per day. All other facilities as per the norms of Bajaj Auto are also available. Further as per
the existing policy of the Principal the firm has appointed sub-dealers for Bhopal and outside Bhopal
district in Obaidullganj, Mandideep, Barreli and Udaipura. The profits are equally shared between dealers
and sub-dealers. Supply of vehicles to sub-dealers by dealers is purely on advance payment basis.
As per CRMD Industry Outlook-May 2014, Motorcycles/scooters: expected to grow by 5.2%.Bank's
Outlook is neutral.
As per CRISIL Industry Outlook April 2014 Two wheeler sales to grow by 7-9 % in 2014-15, due to
revival in growth from urban areas..
Impact of Union Budget 2014-15:

Section B
CREDIT HISTORY
Section B

Year

CREDIT HISTORY
Existing Limits with our Bank
Date of
Sanction

Existing

FB

Sanctioned

NF
B

WC

T
L

FB

Net Sales
Aver
(Only for the age
relevant
utilis
period)
atio
n@

CRA

NFB

WC

TL
77.83
(Aud FY 2013)
81.74
(Aud. FY2012)

98%

SB-8

98%

SB-7

1.00

81.74
(Aud. FY2012)

--

SB-7

--

1.00

89.47
(Aud. FY2011)

--

SB- 8

--

--

57.08

--

SB- 9

2014

30.08.2014

8.25

--

1.00

8.25

--

1.00

2013

14.02.2013

8.25

--

8.25

--

1.00

2012

17.12.2012

3.40

1.0
0
1.0
0

8.25

--

2012

20.09.2012

2.40

--

--

3.40

2011

07.03.2011

2.40

--

--

2.40

2010

19.08.2010

2.40

--

--

2.40

--

--

(Aud. FY2010)
35.34
(Aud. FY2009)

--

SB- 9

(All credit sanctions including ad-hoc sanctions to be captured)

@ Average CC outstanding / Total CC limits

Summary of last 3 years Sanction:

Facility
Fund
Based

WC

TL
Non Fund Based
Total

Date of Sanction
(Previous year)
8.25

Date of Sanction
( 2ndLast Year)
8.25

Date of Sanction
( 3rdLast year)
8.25

-1.00
9.25

-1.00
9.25

-1.00
9.25

Particulars
Notional Loss
Loss/Notional Loss/Haircut suffered by the Bank on NIL
account
of
write
off/
Compromise
Settlements/References to CDR in respect of
previous exposures on Companies floated by
Related parties, Groups, Associates and Directors
(Please quantify).
Specific comments on Right to recompense
clauses needs to be commented upon

Comments
---

Section B
Banking arrangement and sharing pattern:
Financial Arrangement: Sole Banking/Consortium/Multiple Banking/Syndication Lead Bank:
FB
NFB
Total
% Share
TL
WC
-SBI
-8.25
1.00
9.25
100.00%
Associate Banks
--SBI Group
--Other Banks (Total)
-----(HDFC/ICICI)
Top five Banks in
-----terms
of
their
exposure
Bank A(ICICI)
-----Bank B
------

Total

8.25

1.00

9.25

100.00%

Section C
C. PRESENT PROPOSAL

CreditLimits (Existing and Proposed) :

Limits
SBI

Cash Credit (Hyp)

Cash Credit (m-DFS)
Cash Credit (e-DFS )
Cash Credit
(e-DFS Ad-hoc)
Total FB (a)
NFB WC LC
NFB WC BG
Adhoc, if any
Derivative/FC/CF
Project related LC
Project related BG
Project related NFB
(d)
Adhoc, if any(e)
Letter of Comfort#
Total NFB(b)
Total indebtedness
(a)+(b)= (c)
Investments (d)
Leasing (e)
Total exposure
(c)+(d)+(e)= (f)
Financial/
cash
collateral ( as per
Basel norms) (g)
Effective Exposure
(f-g)
Capital Charge
Total Income

0.75
3.00
3.00
1.50

100
100
100
100

8.25
-1.00
------

100
-100
------

---9.25

Existing
Total
Date of
Cons/
sanction
MBA/S
yndicati
on
0.75 30.08.14
3.00 30.08.14
3.00 30.08.14
1.50 30.08.14

0.75
3.00
3.00
0.00

Re
sid
ual
Ten
or
0
---0
-0

Proposed
%
Total
Cons/
MBA/Syn
dication

S
BI

Change
Total
Cons/
MBA/S
yndicati
on
-----

0.75
3.00
3.00
1.50

100
100
100
100

0.75
3.00
3.00
1.50

-----

8.25
-1.00

8.25
-1.00
------

---------

---------

------

------

------

------

100
-100
------

---100

---9.25

---30.08.14

---6.75

---0

---9.25

---100

---9.25

-----

-----

--9.25

--100

--9.25

--30.08.14

--6.75

--0

--9.25

--100

--9.25

----

----

--

--

--

--

--

--

--

--

--

--

--

9.25

100

9.25

30.08.14

6.75

9.25

100

9.25

--

--

104.40

6.75
-1.00

SBI

30.08.14
-30.08.14
------

104.40
75.89

8.25
-1.00

O/s

104.40
79.50

104.40

# issued against the counter guarantee of the company/ group

Section C
Credit Limits (Company and group)
Exposure
Existing
Fund Based
Non Fund Based
Total Indebtedness
Incl. letter of Comfort#
Outstanding of overseas exposure, if
any, against LOC or other guarantee
Investments
Leasing
Total exposure
Banks Share in WC (%)
Banks Share in TL (%)

Company
Proposed Existing
8.25
8.25
1.00
1.00
9.25
9.25

Group
Proposed
21.95
21.95
1.05
1.05
23.00
23.00

--

--

--

--

--9.25
100
--

--9.25
100
--

--23.00
71.88
--

--23.00
71.88
--

#Issued against the counter guarantee of the Company.

Proposal for:
i) Sanction a) Renewal of e-DFS Limit of Rs.300.00 lacs at the existing level.
b) Conversion of existing traders easy cash credit limit of Rs.0.75 crores and FBWC m-DFS limit of
Rs.3.00 crores into Dropline Overdraft under ABL Limit of Rs.3.75 crores.
c) Cancellation of existing WC FB CCL Limit under Traders Easy Loan scheme of Rs.75.00 lacs
d) Conversion of existing Bank Guarantee Limit with enhancement from under traders easy loan
scheme of Rs.1.00 crores to under regular scheme of Rs.1.50 crores.
e) Renewal of ad-hoc e-DFS limit of Rs.150.00 lacs at the existing level
ii) Approval a) Recommendation to CCC I for

i. 50% waiver of cash handling charges.

ii. 50% waiver in facility fees
iii.Other charges
b) Post facto approval of permitting extension of charge on the collateral securities as under:
i. Extension of EM charge for the e-DFS limit of Rs.---to Gurukripa Auto Agency and limit of Rs.---lacs to
Ishan Auto Agency on the property:
ii.Extension of EM charge for the BG Limit of Rs.---to Gurukripa Auto Agency and limit of Rs.---lacs to
Ishan Auto Agency on the property:
c) Realignement of the collateral coverage as under:

iii)
a)
Confirmatio b)
n
c)

This proposal falls within the powers of ZCC as

(i) FB/NFB/Total indebtedness is Rs. 925.00 lacs to a non-corporate having CRA of SB-8
(ii) Involves policy level deviations: No.
If yes, Indicate policy level deviations (only major deviations):-(iii) _________________ is a director in ________________ Bank. NIL

Section D

D.PERFORMANCE AND FINANCIAL INDICATORS

Performance Indicators

Particulars

Last two years actual

Current year #

Next year #

Audited

Estimates

Projections

Audited
(Estimates)@

Gross
sales(Value)
Net
Sales
(Value)
Subsidy in Sales
(Exports) (value)
Net
sales
(Quantity)
(Exports)
(Quantity)
Raw Materials

77.83

Power and Fuel

0.09

Direct Labour
SG &A Costs
Interest

1.18

Operating Profit
(OP)
after
interest
OPM %( OP/NS
%)
PBT

1.67

PBT/Net Sales%

PAT

80.62
(97.06)
80.62
(97.06)

72.59

82.11

72.59

82.11

----

----

----

----

--

--

--

--

68.28

70.11
(83.10)
0.09
(0.09)

60.00

69.00

0.10

0.12

0.00

0.00

0.00

0.00

9.59

9.58
(11.05)
1.05
(1.10)
1.61
(1.91)

9.80

10.10

1.00

1.00

1.62

1.80

2.00%
(1.97%)
0.59
(0.98)
0.73%
(1.01%)

2.23%

2.19%

0.62

0.80

0.85%

0.97%

0.59

0.62

0.80

77.83

2.15%
0.63
0.81%
0.63

Cash Accruals

0.73

PBDIT

1.91

Interest
Coverage Ratio*
PUC
TNW

1.62

Adj. TNW

2.43

TOL/TNW

3.85

TOL/Adj. TNW

5.77

Current Ratio

0.86

NWC

-1.92

DSCR
ROE%

(0.98)
0.69
(1.06)
1.74
(2.16)
1.66
(1.96)

--

--

3.64

4.36
(5.71)
4.36
(5.71)
4.03
(1.80)
4.05
(1.80)
0.80
(1.15)
-3.30
(1.55)

---

---

0.73

0.91

1.73

1.91

1.73

1.91

--

--

4.71

5.65

4.71

5.65

3.48

2.72

3.48

2.72

0.85

0.92

-2.18

-1.13

---

---

@figures in brackets denote estimates at the time of renewal

*interest coverage ratio: Calculation method EBITDA/Interest
# the estimates, projections should be backed by facts / logical assumptions and should be
prepared by the person having sufficient knowledge of the economy, industry, business and past
record.

Interim Financials
Particulars
Q2 current
Q2 last year
Q3 current
Year
Year
Net sales
12.28
18.24
17.90
Export
---PAT
---Industry Exposure as on Aug 2013
FBL
Not
NFBL
Not
Total
available
available

Q3 last year
22.75
--12910.00 Cr

Comments on Performance & Financial Indicators (Comments only

on adverse movements in the above):
i) Net Sales:
During the year 2014-15, non achievement of estimated sale was mainly on
account of low rural demand due to poor monsoon. In the current year also, due to
poor rural demand, firm could achieve sale of only Rs.56.66 crores till 28.02.2016,
however with the good rabi crop, unit is expecting pick up the sale from the rural
population in the last month of the year and accordingly estimates of Rs.72.59
Crores for the current year may be considered reasonable and acceptable.
ii) Profitability (PBT/NS):

In the year 2014-15, Company could not achieve the PAT due to lower than the
estimated sale and squeezed margin due to stiff competition. Looking to this and
lower demand from the rural side, estimates for the current year PAT have been
made conservatively at 0.62 crores, which seem reasonable and acceptable.
iii) TNW:

Opening TNW
Share Application Money
Add PAT
Add. (a) Interest on capital
(b) Remuneration to partners
Add./Subtract change in intangible assets
Adjust prior year expenses
Deduct/Add-Drawing/Addition:Net
Add / Subtract : DTL / DTA
Closing TNW

2013
Audited
3.76
-0.60
0.33
0.93
--1.04
4.58

2014
Audited
4.58
0.63
0.55
0.66
---2.78
-3.64

2014
(Provisional)
3.64
0.59
0.44
0.91
-1.22
4.36

Comments: In FY ended 31.03.20155, TNW was Rs.4.36 crores as against estimates of Rs.5.71
crores, which was mainly on account of lower than the estimated profit and withdrawal of capital by
the partners during the FY 2013-14 for their personal unavoidable requirements. However, the
TNW in FY 2014-15 has been improved over the previous year with the retention of net profit and
also part of the interest and remuneration paid to the partners.

iv) TOL/TNW:
Gearing as on 31.03.2015 was 4.03, which is above the indicative level of 5.00 for trading units.
However the ratio was far behind the estimates of 1.80 mainly because of lower than the estimated
profit, withdrawal of capital in FY 2013-14 and also increased in the inventory level in the year end,
which was funded from outside liabilities like short term borrowing from others and sundry creditors.

v) TOL/Adj. TNW:
The same as above.

vi) Current Ratio & NWC:

The current ratio and NWC of the firm has fallen short of estimates as on 31.03.2015 mainly due to
lower profitability during the year 2014-15, withdrawal of capital during 2013-14 and addition in
fixed assets of Rs.0.33 crores in 2013-14 and Rs.0.47 crores in FY 2014-15 without matching the
long term sources. Despite current ratio being low, unit is always repaying its interest and other
loan obligation timely and conduct of the account has remained satisfactory throughout the period,
position may be considered acceptable.

vii) Details of any significant Non Operating Income /

Expenditure that materially alters the PAT: Firm has earned
interest on its deposit with the Bank to the tune of Rs.0.13 crores,

Insurance premium of Rs.0.02 crores and payment on account of

contractors and sub contractors of Rs.0.17 crores.

Efficiency Ratios:
Particulars
Net sales to Total Tangible Assets
(times)
PBT to Total Tangible Assets (%)

Aud(2014)

4.41
3.57%

Operating cost to Sales (%)

96.34%
Bank finance to Current Assets (%)g

73.08%
(Inventory/Net
Sales)+
(Receivables/Gross Sales)(Days)
Interest/Cost of sales(%)

53
1.80%

BF/Gross sales(%)

11.37%

Aud.
(2015)

(Est)

3.67
(6.06)
2.69%
(6.13%)
96.70%
(96.90%)
73.01%
(56.97%)
57
(44)
1.54%
(1.33%)
11.71%
(6.95%)

Esti(2016)

Proj(2017)

3.44

3.89

2.94%

3.79%

96.39%

96.59%

52.57%

52.12%

63

56

1.66%

1.44%

9.30%

8.22%

Brief comments and justification on the assessments of the above FB and NFB limit: Due to lower
than the estimated sale, squeezed margin and increased inventory level in the year end, ratios
were not as per the estimates, however overall the ratios are satisfactory and estimated/projected
to move favorably in current and next year.

a. Synopsis of Balance Sheet:

Liabilities
Current Liabilities
Short Term Bank Finance (A)
Other Current Liabilities (B)
(Total of I,ii,iii&iv)
i. Sundry Creditors
ii. Advance Payments received
iii. TL Inst. repayable in 12 months (incl
FCCB)
iv. Provision & others CL
Total Current Liabilities =(A+B)
v. Term Loans SBI (> 12 months)
vi. Term Loans Others (>12 months)
vii. Debentures, Redeemable Pref.
shares (<12 years),FCCB etc.
viii. Unsecured Loans

Audited
2014

Audited
2015

8.85

9.44

5.17
5.01

6.78
5.80

0.16
14.02

0.98
16.22

1.37

ix.Other Term Liabilities

x.DTL
Total term Liabilities (D)
(Total of v to x)
Total Outside Liabilities (E)
(Total=C+D)
xi. PUC (including Premium)
xii. Reserves & Surplus
(Other than revaluation reserves)
xiii. Share Application Money
Net Worth (NW)(F)
Total of xi,xii and xiii
Total Liabilities (G)=(E+F)
Assets

0.00
14.02

17.59
--

--

--

--

--

-3.64
17.66

4.36
21.95

Audited
2014

Current Assets
a.Cash & Bank Balances
0.18
b.LC/BG Margins, Fixed Deposit & liquid
investments
c. Receivables (<6 Months)
4.42
d. Investments (Other than long term)
e. Total Inventory
6.91
f.i. Other Current Assets- Dues from
Associates/Subsidiaries
ii. Other Current Assets Others
0.50
Total Current Assets (A)
12.11
Fixed Assets
Gross Block
Less Cum. Depreciation
Net Block (Excluding revaluation
reserves)
+
Capital
Work
in
progress
Investment in Associates, Subsidiaries,
Sister Concerns etc
Other Investments
Receivables > 6 months
Others
L.T Loans & Advances
Non Current Assets ( C )
Total Tangible Assets (D)
Intangible Assets, including DTA (E)
Total Assets (D+E)

1.37

Audited
2015

0.15
0.10

0.10

3.79
8.89

12.93

3.18
0.26

3.65
0.36

2.92

3.29

1.20
--

---

1.43
2.63
17.66

--

5.73
5.73
21.95
--

17.66

--

21.95

Comments in adverse movements only in the above :(Not to

exceed 5-6 lines)

i)
Comments on any change in capital During the year 2014-15, Partners
brought
Rs.0.13
crores
from
structure
remuneration and interest paid to
them in the business along with the
plough back of the profit of Rs.0.59
crores.
Short term borrowing increases to
fund the increased level of inventory.

ii)

Comments on Short Term borrowings,

if not commensurate with increase in
value of inventory & receivables
Movement of Unsecured loans (quasi Unsecured loan of Rs.1.37 crores
from relative has been infused to
equity)

iii)

improve the liquidity.

iv)
v)
vi)
vii)

Change in investments in Group None

Companies/others
Comments on Sundry Debtors beyond NIL
6 months-present position
Loans
and
advances
to
group Nothing noticed in the ABS dated
31.03.2015.
companies
Rs.5.14 crores has been placed as
Others, if any

security deposit with the various

suppliers specially with the Tyre
Manufacturing Companies on behalf of
its Branches in the year 2014-15.

b. Movement of Long Term Funds (Funds Flow):

Long Term Sources
a. Cash Accruals
b. Equity Funds
c. Loans(USL)

Audited
(2014)

Audited
(2015)

Estimates
(2016)

0.73
-1.57

0.69
0.13
1.37

0.73
-0.27

0.91
0.14

2.19

0.46

1.05

d. Others
-Total
long
term
sources
-0.84
Long Term Uses
a.CAPEX
0.33
b.Others
1.32
Total long term uses
1.65
Long
term
Surplus/Deficit
-2.49

Proj.
(2017)

---

--

0.47
3.10
3.57

-0.65
-0.65

0.00

-1.38

1.11

1.05

Comments: There was long term deficit in the FY 2014-15 due to requirement of additional
security deposits to be kept with tyre supplier Companies

f. Activity-wise Cash Flow Analysis:

(Brief observations on whether operating activities are the principal revenue
producing activities of the enterprise; extent of cash flow from investing
activities and financing activities may be given) [Refer CPPD Circular
No.CPP/CIR/CSK/30 dt.07.07.2011 on Credit Assessment:
Cash Flow Statement (CFS)]
Cash Flow from Operating activities

2013-14
Aud

Profit before tax

Add: Depreciation
Misc Expenses written of
Interest paid
Net loss on fixed assets sold
Total
non
operating
expenses
from
investment/other sources
Provision for doubtful debts/age base provisions
Less: Dividend received
Interest received
Operating profit before working capital Changes
Working capital
Trade receivables
Inventories
Loans & Advances/Other Current assets
Increase/decrease in trade creditors
Increase/decrease in other payable
Increase/decrease in other current liability
Liabilities and provisions
Cash from operating activities
Total non-operating income from investment/other
sources
Income Tax
Net Cash from operating activity
Cash flow from Investing activities
Addition in fixed assets
Sale of fixed assets
Decrease/increase in other NCA
Decrease/increase
in
intangibles
incl
preliminary/pre-operative expenses not written of
Advances for capital expenditure
Sundry creditors for capital expenditure
Income from investment/other sources
Total
non
operating
expenses
from

2014-15
Aud

0.63

0.10

0.59

0.10

1.18

1.05

1.21

1.35

3.12

3.09

1.19
-3.11
-0.29
1.31
0.02
-0.04

0.63
-1.98
0.50
1.40
0.19
0.02

-0.92
0.17

-2.03

0.26
0.33

-3.52

-0.33

-0.47

-1.32

-3.10

0.17
-1.21

0.33
-1.35

investment/other sources
Dividend received
Interest received
Net cash from investing activity
Cash from financing activities
Long term borrowings
Repayment of term loans
Short term borrowing
Increase/decrease
in
share
premium/share application money
USL
Interest paid
Dividend paid
Corporate Dividend tax
Net cash from financing activity
Increase in cash

a. Net cash from operation

b. Net cash from investment
c. net cash from financing
d. Net increase in cash

3.45

0.59

-1.57

0.13
1.37
-1.05

-1.18

0.70
0.04

2014-15
Aud

2.03

3.52

0.70
0.04

-4.59

capital/share

2013-14
Aud

-2.69

-2.69

-4.59

1.04
-0.03

1.04
-0.03

Comments
There was net cash deficit from operations as on
31.03.2014
mainly due to interest
and
remuneration of Rs.1.21 crores paid to partners,
increase in trade creditors and decrease in the
trade receivables, net deficit from investing
activities mainly due to increase in NCA(Deposits
with tyre supply agencies and investment in fixed
assets and net surplus from the financing activity
mainly due to increase in short term borrowing.
There was net cash deficit from operations as on
31.03.2015
mainly due to interest
and
remuneration of Rs.1.35 crores paid to partners,
increase in trade creditors and decrease in the
trade receivables, net deficit from investing
activities mainly due to increase in NCA(Deposits
with tyre supply agencies and investment in fixed
assets and net surplus from the financing activity
mainly due to increase in short term borrowing and
fresh infusion of USL of Rs.1.37 crores.

* For Borrowers with annual turnover of Rs.500.00 crore and above, consolidated data for past two
years to be provided in full, on the lines of para 2 A- a), d) and f) instead of g)

Section D
g. Conduct of Various Facilities*(Traders Easy Loan)
(Last 12 months period to be covered for all facilities)
(+*Applicable for Accounts with Group turnover for less than Rs.1000 cr)
i. Cash Credit(TEL)
Particulars
Last Financial Year
Current Financial year

up to previous months
Credit summations*
Debit Summations*
Maximum outstanding
Minimum outstanding
Average Outstanding
(*To be provided for accounts with exposure less than Rs.100 cr)
Comments:Turnover in account is in line with the sale.
g. Conduct of Various Facilities*(EDFS)
(Last 12 months period to be covered for all facilities)
(+*Applicable for Accounts with Group turnover for less than Rs.1000 cr)
i. Cash Credit
Particulars
Last
Financial Current Financial year up to
Year
previous months
Credit summations*
14.74
6.08
Debit Summations*
15.43
5.98
Maximum outstanding
4.54(Due
to 3.00
Adhoc and Intt
application)
Minimum outstanding
2.00
2.57
Average Outstanding
2.96
2.91
(*To be provided for accounts with exposure less than Rs.100 cr)
Comments: Company has availed ad-hoc of Rs.150.00 lacs on 31.07.2013, repayment of which
was finally adjusted on 5/11/2013 i.e. in 97 days as against 60 days allowed in the scheme.

g. Conduct of Various Facilities*(MDFS)

(Last 12 months period to be covered for all facilities)
(+*Applicable for Accounts with Group turnover for less than Rs.1000 cr)
i. Cash Credit
Particulars
Last Financial Current Financial year up
Year
previous months
Credit summations*
8.25
5.90
Debit Summations*
10.93
5.77
Maximum outstanding
3.00
3.00
Minimum outstanding
0.14
2.59
Average Outstanding
1.75
2.96
(*To be provided for accounts with exposure less than Rs.100 cr)
Comments:N.A.
ii.Bills facility: Not Applicable
Particulars
Last Financial Year
No.
of
purchased/discount
Amount
of

to

Bills

---

Current Financial year up

to previous month
---

Bills

---

---

purchased/discounted
Amount of Bills returned
----unpaid
Interest/discount earned
----Reasons for return of bills:
(+* since such accounts are being reviewed by GM and above under the Account
Plan exercise hence may lead to duplicity of work)
iii. Letter of Credit:Not Applicable
Particulars
Last Financial Year
No. of LCs opened
Aggregate amount of LCs
No. and days amount of bills
that devolved
% of LC bill devolved of the LC
limit
Of the above, not adjusted in
15 days
Maximum no. of days taken for
regularizing the account
Commission earned

-------

Current Financial Year

up to previous month
-------

---

---

---

---

---

---

---

---

Section D
iv. Bank Guarantees:Not Applicable
Particulars
Last Financial Year
No. and amount of
guarantees issued
No. and amount of
guarantees
invoked, if any
Whether
Cash
Credit
a/c
was
rendered irregular,
on
account
of
aboveno.
&amount
Maximum no. of
days taken
Commission earned

---

Current Financial year up

to previous month
---

---

---

---

---

---

---

---

---

h. Inter-firm Comparison:
i)Finance related:
S.
Name of Co.
FB
No.
Lts$
C I Finlease (CIFL)
1300
1
2

$
Surjeet Auto Pvt Ltd
(SAPL) #

1150

Year ended

Sales

PBT/
Sales %

TOL/
TNW

CR

2013

8702.82

0.42

6.43

0.53

2013

7907.55

1.00

6.59

0.79

($ wherever available either from our own data or external source)

Section D
ii. Market related:(As the company is not listed, data not taken for comparison)
S. No.
Nam PE
Market Share Price* (@)
EPS of
e of
Cap
Last
Co.
Year
H
L
C
(*for listed companies)
@ 52 weeks High Low; face value to be mentioned, if not Rs.10.
Comments:

E.LOAN POLICY: DEVIATIONS AND COMPLIANCE

Section E

a. Whether names of promoters, directors, company, group concerns figure in

defaulter/wilful defaulters list:
Wilful defaulters list dated 30.06.2015
: No
RBI defaulters list dated 30.06.2015
:No
Name of the director Default in connection with
Remarks
(Name of the Company)
Name of the director

Disqualification in connection with

(Name of the Company)
(pl refer http:// www.mca.gov.in)

ECGC caution list dt

CIC-Credit History

Enquired on 03.03.2016 and nothing noticed

CICs - Suit filed list

CIBIL Consumer CIR dated 02.03.2016

Control No.
Name
72,90,49,474
Shri Mohan Nenwanini
observed-

CIBIL DUN NO.91-966-7766/67-658-8771

No overdue

Remarks

Order W-3980522/3980518
Dated 03.03.2016 do not
reveal any adverse feature

72,90,49,947
Shri Ramesh Nenwani
No overdue
observed
72,90,50,175
Shri Tulsi Das Nenwani
No overdue
observed
72,90,50,431
Shri Manish Nenwani
No overdue
observed
72,90,50,593 Shri Murli Nenwani
No overdue
observed
72,90,50,803 Shri Nand Nenwani
No overdue observed

Banned
list
of 11.02.2016:Not appear
promoters
(CIC: Credit Information Companies)
b. Deviations in Loan Policy:
Parameters
Indicative Min/Max Level as per loan policy

Prudential norms
Borrower
Prudential norms
Group
FB exposure to
the industry

Substantial
exposure:
Borrower

Substantial
exposure: Group

Term Loan-Tenor
CRA
Minimum
Score
Hurdle Rate
TOL/TNW
Liquidity

Debt/Equity
Promoters
Contribution
Average
gross
DSCR(TL)
Non compliance
of
norms
for
strategic
schemes:
viz.
Corporate Loans
TIFS, CRE and
others
Rate of Interest

Companys level
as on
Within
the
exposure limits.
Within
the
exposure limits.
Within
the
exposure limits

Justifications

Within substantial
exposure
(Borrower)

--

Within substantial
exposure (Group)

--

N.A.
57.73/100

---

SB-10
5.00
1.20

SB- 8
4.36
0.80

--

Max. 2
N.A.

N.A.
N.A.

-Explained in
comment on
performance
and financials.
---

Min. 1.75

N.A.

--

N.A.

N.A.

--

N.A.

N.A.

--

Maximum aggregate credit facilities as per

prudential norms of RBI on exposures
Maximum aggregate credit facilities as per
prudential norms of RBI on exposures
The Bank shall endeavor to restrict fund
based exposure to a particular industry to a
maximum of 15% of the Banks total
domestic fund based exposure.
In excess of 7.5% of Banks capital fundsTier I Plus Tier II. Aggregate substantial
exposures to single borrowers should not
exceed 300% of Banks Capital Funds-Tier
I plus Tier II
In excess of 15% of Banks capital fundsTier I Plus Tier II. Aggregate substantial
exposures to single borrowers should not
exceed 600% of Banks Capital Funds-Tier
I plus Tier II
N.A.
45/100

----

Security
Margin
Others

N.A.
N.A.
N.A.

N.A.
N.A.
N.A.

---Section E

Other deviations:
Parameters

Compliance(
Y/N)
None

Deviations

Justification

Deviations in Takeover
norms
M-DFS: Collateral coverage
Scheme
specific Y
is 147.78% as against 150%
deviations, if any
Advances
to
Banks None
Directors and the parties
related to Directors*
Advances to Officers and None
the Relatives of Senior
Officers
of
SBI/Other
Banks*
Advances to Directors of None
other Bank(s) and parties
related to other Banks
Directors*
(*Refer latest RBI Master Circular on Statutory and other Restrictions)

# Borrower has availed following three facilities with the collateral coverage as
under:
Facility
EDFS:Rs.450.00 lacs
(Including adhoc of
Rs.150.00lacs)
TEL(CC Rs.75.00 lacs, BG
Rs.100.00lacs)
MDFS:Rs.300.00lacs

CollateralAmt
Rs.425.00lacs

CollateralCoverage
94.44%

Rs.291.67lacs

166.67%(Asperscheme)

Rs.443.33lacs

144.78%

Plot no. 5 Lala Lajpatrai Colony, Raisen Road Bhopa, valued Rs.425.00 lacs has been kept as
collateral for e-DFS and other three properties valued Rs.735.00 lacs were kept as collateral in mDFS/TEL. With the increased requirement of collaterral in TEL, Rs.291.67 lacs has been linked to
TEL(CCL/BG) of Rs.175.00 lacs and the balance of Rs.443.33 lacs has been linked to m-DFC.
Deviation in collateral lies with the sanctioning authority upto minimum collateral coverage of 125%
in m-DFS scheme. Looking to the renewal at existing level, long satisfactory association with the
borrower and overall collateral coverage, deviation may be approved by the sanctioning authority.

Section F
F.RISK ASSESSMENT
a.Credit Rating
Name of the Agency: ICRA

CRA based on balance sheet as on

31.03.2015
Validated on (Since submitted)
Borrower rating
Current
Previous
CRA Rating SB-8
SB-8
with date
Overall Score
57.73/100
62/100
Financial
Score/Minimu
m Score

22.23/21

39.34/23

Current rating

Previous rating

BB-(23.02.2016 to 22.02.2017)

--

Facility rating
Facilities
TECCL

Current
FR-6(59.37)

Previous
FR-5(66)

e-DFS
Adhoc e-DFS
BG

FR-8(45.67)
FR-8(46.63)
FR-7(57.09)

FR-5(66)

MDFS

FR-7(57.09)

FR-5(71)

FR-4(78)

Comments on change (s) In CRA Rating/Model: No change in CRA.

b. External Rating: BB-(Long term)

A 4(Short term)

CRARating with date/Score:57.73/100

CRA validation Date: Since submitted

Current:SB-8

Previous:SB-8

CRAFinancialScore:
ECR done by:
CARE

Current:22.33/55
Long term rating:[CARE] CARE

Previous:39.34/65
ValidFrom 23.02.2016
to 22.05.2017)

BB-/ CARE A4
(Double B Minus/ A Four)

Short term rating:A4

Rating Rationale given by the Credit
Rating Agency:

ValidFrom 23.02.2016
to 22.05.2017)
The ratings assigned to the bank facilities of Surjeet
Auto Agency (SAA) are primarily constrained on
account of fluctuating trend of operating income in
a highly competitive and fragmented automobile
dealership industry and its financial risk profile
marked by thin profitability, leveraged capital

structure, moderate debt coverage indicators and

moderate liquidity position coupled with limited
bargaining power with principal manufacturer.
The above constraints far ofset the benefits derived
from the vast experience of the promoters in the
automobile dealership industry along with
authorized dealer of a reputed Original Equipment
Manufacturer (OEM).
The ability to increase its scale of operations with
improvement in profitability and working capital
management is the key rating sensitivities.

c. RMD Advisories
i)
ii)
iii)
iv)

RMD Guidance
Note
Qualitative
approach
Quantitative
approach
Comments

May 2014 (Automobile sector, Passenger Car)

Neutral outlook for Motorcycles/scooter, however for trading units RMD advisory
is not applicable.
As per review of industry exposure limit as at 31.03.2014, approved level is
1.30% as against actual level and threshold level of 0.96%(Rs.12910.00 crores)
and 1.04%.however for trading units RMD advisory is not applicable.
--

d. Earlier terms of sanction Compliance status

S.No.

Conditions/Observations

Covenant
details/time frame

Compliance
status

Financial Covenants
Equity infusion
Conversion of Share appln. Money/Unsecured loans into
equity
Dividend outflow/Sale of investments
TOL/TNW (times)
TOL/Adj.TNW (times)
Current Ratio
PBDIT/Interest (Times)*
Others (Observations/Conditions/including Post Sanction
modifications, if any)
Observation
made
vide
ZCC
Agenda
Item
No.ZCC/BPL/11-15/21/10 Dated 30.08.2014
Ensure compliance of instruction applicable tp e-DFS, mDFS and TEL Scheme.
Stock under e-DFS facility to be reduced from the total
stocks while calculating DP under cash credit facility. D.P.
should be calculated properly to avoid double financing.
RM(ME) to comply with all the extant operational guidelines
regarding conduct of advance under e-DFS and m-DFS
schemes
Confirmed to the RM of the region that all primary/collateral
securities are SARFAESI compliant and are diverted,
demarcated and freely accessible and approachable.

--

--

---

---

------

------

Compliance has been submitted in the

body of the proposal
Observation has been complied with
while handling the account.

We confirmed that all the collateral

securities are SARFAESI compliant
and are diverted, demarcated and
freely accessible and approachable. In
respect
of
primary
securities,
SARFAESI
compliance
is
not
applicable.

RMME to explore possibility of cross selling(POS, SBI Life

& SBI General Insurance product)

Constant efforts have been made to

generate cross selling business from
unit. Promoter have already been
paying annual premium in respect of
SBI life policy.

Observation made vide CCC-II Agenda Item No.CCCII/2013-14/03/04 Dated 04.05.2014

1.ZCC observation to be complied with
2.Bank loan rating from External Credit Rating Agency
to be obtained

Compliance submitted as above.

The same was obtained, however it
was expired and not obtained
further due to the reason in point
no. b as above.
3-Current ratio to be brought up to the Bank,s The ratio has since been improved
indicative level.
to 1.06 as at 31.03.2014 and
estimated to improve further in
coming years. We have advised the
unit to improve the same to the
level of 1.20.
Comments only when the negative variance is more than 20%: --

Section F
Penal action stipulated in last sanction:
Stipulation

Status of compliance

Penal action now recommended, if any: None

e. Conduct of Account(to commend briefly on irregularities in the accounts in the past 12 months no. of times
irregular &time taken for adjustment of peak irregularity.
No. of times and days the account was irregular
No. of times
No. of days
Reasons for irregularity
NIL
NIL
Peak irregularity in the account, if any
--No. of days taken to adjust peak irregularity
--f. Utilization of Limits
Utilization of limits:
Comments:
FB Limits
Average
75.75
N.A.
Utilization%
NFB Limits
Average
100.00
N.A.
Utilization
%
Comments if utilisation is less than 60%:
Review of Cash Credit Account for previous year:
Rs. In crores
i.Total debit summations
78.85

Comments

ii. Total credit summations

80.01
%of (ii) to total sales
108.56 %
g. Statutory dues/Other Contingent liabilities:
Dues
Amount Quantified in ABS
Impact on financial position (asNegative
% of TNW)
Score in CRA, if any
Statutory dues Vat Payable Rs.10.32 lacs
Paid on 30.04.2013
NIL
TDS Payable Rs. 0.20 lacs
06.04.2013
ET Payable
Rs. 2.01 lacs
30.04.2013
EPF Payable Rs. 0.39 lacs
18.04.2013
ESI Payable Rs. 0.11 lacs
18.04.2013
Total
Rs. 13.03 lacs
Contingent
BG of Rs.100.00 lacs
BG issued as per terms ofNIL
liabilities
sanction.
Comments, in brief, if the impact is significant:N.A.
h. Review of Term Loans (Term Loans with other Banks/FIs to be mentioned):N.A.
Nam Li
DP
Outstanding Irregularit
DSCR
FACR
e of mit
as
y, if any*
the
on______
FI/Ba
nk
Sanction Accr
s
uals
----------------*Comment on reasons for over dues:
i) No of instalments due:
ii) No of instalments paid:
iii) No. of instalments in arrears:
iv) Amount of interest in arrears:
v) Comment on the Companys action plan for regularizing the account:
vi. Cross defaults: If any, please specify:

Date of
Restructu
ring,
if
any

---

Section F
i. Risks / adverse features andmitigatingfactors:
Criticalrisksperceived
CRA /ECR Related Financial Risks
Business and IndustryRisks

Group Related

Mitigatingfactors
Above hurdle score.
Above hurdle score

HurdleRates

None.

Any other adverse remarks in ECR

Rated BB-

Group gearing, where applicable

Adverse
features
in
Group No interlocking of fund with the group companies and therefore risk not assessed
Concerns/Associate
entities,
interlocking / diversion of funds, if any

Details of guarantees extended to sister N.A.

concerns / associates.
Value of guarantees
To our Bank:
To other Bank:
Sustainability
Concerns

Environmental Clearances
& Sustainability measures
Other pending approvals, ifany

None
None

Audit Reports
RFIA Report:30.10.2015
Account is under credit audit
(Summary of Credit
Audit Report
Credit Audit Report- 01.05.2015 Marks:
Annexure 5)
.
ORM...../CRM....
Remarks:

RBIAFI u/s 35
Statutory Audit Report:31.03.2015
Name of the Auditor:
Remarks (including availability of
collaterals ):
Stock &Receivable Audit
Report:12.02.2014:
Qualifications, if any, given by the
NIL
auditors in the Balance sheet / financial
statements.
Conduct of the
Irregularity
Account, during last
12 months

NIL

LC devolvement

BG Invocation
Country Risk
Compliance

Not Applicable
Compliance of earlier sanction terms

Submitted as above

Section F

Foreign Currency Exposure (FCE)

of the Company

Hedged Foreign Currency Exposure:

(i)Financial Hedge- % of FCE
(ii) Natural Hedge- % of FCE

Not Applicable

Unhedged Foreign Currency Exposure: Not Applicable

% of FCE.
Any other adverse features #

None

The nameofPromoters/Directors/Company/Groupconcernsis not appearing in the RBI

None
Defaulterslist/ECGC CautionList/ CICs / I-Probe (the printout of the search result to be attached)
# including any recent significant events, adverse press reports or market intelligence that may
affect the risk profile of the customer and aggravate the risk of lending.

Section G
G.ASSESSMENT OF FUND-BASED LIMITS
a. Assessment of Working capital Limit
(If the assessment of the WC limit is based on any other parameters, like Cash Budget Method,
Nayak Committee-Turnover Method, please specify them along with an explanation)

Fund Based Regular Working Capital credit facilities are requested as under:
S No.
1
2
3

Credit Facility
e-DFS
m-DFS
TECCL(Hyp)
Total*

Amt in Rs. Lacs

300.00
300.00
75.00
675.00

(Ad-hoc e-DFS Limit of Rs.150.00 lacs proposed is in excess of the above limit for 60 days)

Inventory & receivable levels: (Amount) (Days)

Inventory/Payments
Audited
Audited
2014
Raw material
-Imported
Amount
Days
-Domestic

2015

Estimated

Projected

2016

2017

Amount
Days
SIP
Amount
Days
FG/Goods in trade
Amount
Days
Receivables
Amount
Days
S Creditors
Domestic
Amount
Days
Other Current Assets
Amount

6.91
39

8.89
47

9.00
55

9.10
48

4.42
21

3.79
17

3.60
18

3.60
16

5.01
27

5.80
30

6.00
37

6.10
32

0.78

0.25

0.24

0.25

COMMENTS:

Finished Goods- Level of FG holding was at 47 days in 2014-15. It is expected to be 55 days in

FY 2015-16 in light of the lower sale turnover, however firm has to maintain almost the same level
of inventory due to its business pattern of various models of various price range, therefore the
same is acceptable.
Receivables- The actual as well as provisional/estimated level of receivables in line with the past
trend with little improvement and therefore considered to be acceptable.
Sundry Creditors- The level of sundry creditors is expected to be at 30-40 days in the years to
come.

Limits are assessed as per ABF Method as under:

Year
TCA
OCL
WC Gap
NWC
BF*

2014
Audited
12.11
5.17
6.94
-1.91
8.85

2015
Audited
12.93
6.78
6.15
-3.29
9.44

2016
Estimated
12.84
8.27
4.57
-2.18
6.75

2017
Projected
12.95
7.33
5.62
-1.13
6.75

NWC/TCA (%)
BF/TCA (%)
OCL/TCA (%)
OCA/TCA(%)

-15.77%
73.08%
42.69%
6.44%

-25.44%
73.01%
52.44%
1.93%

-16.98%
52.57%
64.41%
1.87%

-8.73%
52.12%
56.60%
1.93%

COMMENTS:

TCA level has been estimated in line with the past trend and may be considered
reasonable.

NWC levels is ve due to locking of huge fund with the tyre agencies for the purpose of
security deposits, which has been classified as NCA in the CMA. Looking o the business
need, and estimated improvement with plough back of the profit in the business, position
may be considered acceptable.

ABF level is proposed to be kept at Rs.675.00 lacs for FY 2015-16 and FY 2016-17 by
expecting full utilization of the sanctioned working capital limits.

BF/TCA(%) is expected to come down. This will mainly on account of increase in NWC
level.

Fund based working capital credit facilities are proposed under the various schemes and the
compliance under the schemes is given as under.

a) Assessment of Cash Credit Limit under e-DFS Scheme of Rs.300.00 lacs

Industry Major Name

Cir Ref no and date

Bajaj Auto Limited(BAL)

NBG/SME/SCFU-SCF/3/2012-13 Dated
23.04.2012 and NBG/SME/SCFU-SCF/32/2013-14
Dated 04.09.2013
Yes

Comfort letter/Introduction letter received

Details/Year
a)
b)
c)
d)
e)
f)
g)

Total sales
Average monthly
sales
Credit period in
days/month
Assessment of
limit(axb)
Elligible limit(Higher
of the above two
Limit recommended
by the industry major
in the comfort letter
Limit
recommended(lower
of e or f

Audited
sales(2014-15)
80.62
6.72

Estimated
sales(2015-16)
72.59
6.05

45 days(1.5 months)

45 days(1.5 months

10.08

9.08

Rs.10.08 lacs
N.A.
3.00 Crores

Additional Assessment of peak level limit/Ad-hoc Limit

Eligibility
Additional upto 50% for a maximum period
of 60 days in a year, for festive season etc

Limit proposed
50% of Rs.3.00 crores i.e. Rs.1.50 Crores

Compliance under the Scheme:

b) Compliance with the provisions of e-DFS (Cash Credit Limit) under tie-up arrangement
with M/S Bajaj Auto Limited (BAL) in terms of e-Circular sl.no . 32/2013-14 dated 04.09.2013

Parameter
Purpose

Type of facility
Eligible
customers

Assessment of
Facility

Detail
To provide financial assistance to
exclusive two Wheeler &three dealers of
Bajaj Auto Ltd (BAL) (both existing and
new
dealers)
under
the
tie-up
arrangement for inventory funding.
Cash Credit
Existing
Corporate/Noncorporate/proprietorships
having
franchisee/dealer-appointment letter from
Bajaj Auto Ltd and recommended by Bajaj
Auto Ltd.
New dealer (Corporate/Non-corporate/
proprietorships) recommended by Bajaj
Auto Ltd., if Bajaj gives comfort letter in
respect of them.

Compliance
Firm is engaged in sales &service of two wheeler
vehicles of Bajaj auto limited and dealing in tyres of all
vehicles.

Average monthly sales based on last

years actual sales or current years
projected sales (whichever is higher)
e.g. Average Monthly Sales x Credit
Period
OR
Limit recommended by Company
(whichever is less)

Rs.72.59 Crores (Estimated sales for current year)

Rs.80.62 Crores. (Avg sales per month)
Rs.6.72 Crores x 45 days (1.5 months)=Rs.10.08
Crores.
Limit Requested by the Firm- Rs.3.00Crores.

Amount of limit

Min: Rs. 25 Lacs

Max: Rs. Need Based

Eligible ad hoc
limits

Additional up to 50% for a maximum

period of 60 days in a year, for festive
season etc (as advised by the Company
in the Comfort letter).
Adhoc limits will attract 1.00% interest
above the contracted rate.
Nil
30 to 45 days (as advised by the
Company in the Comfort Letter).
Maximum 30 days from the due date of
invoice.

Margin
Period of
Credit
Grace Period

Cash Credit
It is an existing partnership concern havingdealerappointment letter from Bajaj Auto Ltd (BAL).
Recommendation letter of BAL is already with
us(renewal).

(If the limit advised is less than the limit recommended

as above, eligibility will be the amount of limit
recommended by dealer.)
Limit proposed is Rs.3.00 Crores as per assessment
and taking view the need based requirement of the
customer.
Ad hoc limit proposed-Rs.1.50 crores for festive season
etc. Maximum utilization for 60 days in a year.
(subject to appropriate advising by BAL in the comfort
letter)
Nil
Period of Credit proposed is 45 days.
Grace period proposed is 30 days.

Security

Rate of interest

Rate of Interest
for
Ad-hoc limit
Penal Interest

Primary:
100 % Hypothecation of Stocks and
Receivables.

Primary100 % Hypothecation of Stocks and Receivables will be

obtained.

Collateral:
Minimum 25% of the tangible collateral
property.
OR
Minimum 25% Cash Collateral / Banks
approved specified securities
OR
Nil Collateral (for dealers with a minimum
relationship of 2 or more years with BAL)
(In case the collateral security is owned
by a third party the guarantee of the
owner of the security has to be obtained.)

CollateralTangible Collateral Property offered- Surjeet Bajaj

Showroom at plot No-05, Lala Lajpat Rai Colony, raisen
Road, Ward No-64, Tehsil Huzur, Dist-Bhopal.
Fair Market Value- Rs.510.75 lacs.
Realizable Value- Rs.425.00 lacs.
This is 94.44% of the proposed Limit i.e. Rs.450.00 lacs.
(including Adhoc limit)

Guarantee:
Personal Guarantee of the Promoters/
Directors of the unit.
Interest rate will be linked to Base Rate.
Interest rate concession can be arrived at
on the basis of collateral security offered.
No interest rate above the applicable
interest rate will be charged.

Guarantee:
Personal Guarantee of all the partners of the unit has
been obtained and will be available.
As the borrower has fulfilled the minimum collateral
requirement- Interest rate will be Base rate + 0.30%
upto 60 days and Base rate + 0.50% above 60 days
Note- In terms of e-Circular sl.no.NBG/SME/SCFUSCF/52/2013-14 Dated 16.12.2013.
Will be complied.

Penal rate of 2% will be applicable over

and above the contractual rate for all
overdue invoices including the grace
period.
Disbursement will be as per Electronic
Dealer Financing Scheme.
100% financing of the invoices.
Invoice amount will be credited to the
account of BAL directly.
The dealer has to make repayment within
the agreed credit period.

Will be complied.

Single Unified
Charges

A unified charge comprising of processing

fee and all other charges.

Limit proposed-Rs.4.50 Crores

SUC-Rs.100000.00 will be charged.

Comfort from
Bajaj
Auto Ltd

Bajaj Auto Ltd will recommend dealers

after due diligence having good track
record and relation with them through a
Letter of Comfort.
Bajaj Auto Ltd will also furnish the past
turnover figures and monthly purchases of
their dealers in the prescribed format to
facilitate assessment of the inventory
funding limit.
After the enrolment of dealer under eDFS all the sales to the dealer will be
routed through e-DFS account.

Not applicable(Renewal at existing level)

Disbursement

Repayment

Will be complied.

Will be complied. The same will be intimated to the

borrower.

In Case of default, Bajaj Auto Ltd will:

Immediately Stop Supply to the
concerned dealer.
Transfer all credits/deposits of the
dealer lying with them to the Bank.
Assist the bank on a best effort basis to
recover the dues from the dealers.
Assist the Bank on a best effort basis in
mobilizing the unsold stocks to another
dealer and in selling the stocks.
Documentation

With Bajaj Auto Ltd:

e-DFS agreement for Tie-up under the
Electronic Dealer Financing Scheme.
Comfort cum confirmation letter
mentioning the details of the Dealers and
monthly purchases from BAL for the last
two years.
With Dealers:
Standard SME documents as applicable.
A separate agreement mentioning the
terms &conditions of the arrangement.

Other
Conditions

CRA Exercise to be done for the

dealers. But, pricing will be as per the tie
up arrangement.
Four Blank PDCs to be obtained in the
favour of the Bank (to be used in case of
default or otherwise)
Credit Information Report (CIR) should
be obtained on IBA format for satisfactory
conduct of the account.
Dealer will have sole Banking
arrangement with SBI, for the e- DFS
arrangement.
The CC account would be a dedicated
account for this purpose only. No Cheque
Book will be issued in this account.
Other guidelines under SME advances
such as registration of charge with the
ROC, supervision and follow up, etc. will
be applicable to the scheme mutatesmutandis.
All payment requests made by Bajaj
Auto Ltd shall provide the information
such as Invoice No, Date of Invoice,
Dealer Name, Dealer Code and amount
of each invoice.
Post KYC and account opening by
branches, the respective branches will
advise SCFU (Operations) i.e. SME,
Shivsagar, Worli branch about dealer
details in a prescribed format to activate
the account on the e-DFS platform. The

Not applicable(Renewal at existing level )

Not applicable(Renewal at existing level)

Will be obtained

Not applicable (Sole Banking).

Will be ensured.
Will be ensured.

Will be complied.

Will be complied.

Will be complied.

Inspection

Stock
Statement
Insurance of
Stocks
Review of the
tie-up
Validity of
Sanction

contact details of SCFU (Operations) is as

under:
Email:
sbi.11689@sbi.co.in,
scf.ops@sbi.co.in, fax: 022-24952109,
24974984.
Apart from the above-specified terms, the
advance would be subject to all other
processes and instructions applicable to
other advances.
Quarterly in case the account is in active
position.
Immediately when the account becomes
inactive and thereafter monthly or March
would be must
As per Banks extant instructions.
However, stock statement of February or
March would be must.
Insured for the full market value for all the
risks with suitable Bank clause.
After one year
12 Months, to be renewed thereafter.

Will be complied.

Will be obtained
Will be obtained
Tie up reviewed on 04.09.2013 for the period upto
03.09.2014 and the same will be noted to follow up for
further review.
Will be complied.

b) Conversion of Traders Easy Cash Credit Limit of Rs.0.75 crores and mDFS limit of Rs.3.00 crores into Dropline Overdraft under ABL of Rs.3.75
crores:
Borrower has been availing the following credit facilities:
1. Traders Easy Loan of Rs.0.75 crores
2. m-DFS limit of Rs.3.00 crores

Initially the rate of interest on m-DFS limit was 0.45% above base rate which
was revised at 2.20% above base rate in 2014-15.
Due to stiff competition and squeezed margin and offer of other financier at
lower rate of interest, borrower in constantly approaching us for reduction in
interest rate.
In view of the availability of adequate collateral security in the form of
commercial building, it was offered by us to the borrower and the borrower is
agreeable to avail dropline OD under ABL in place of the above facilities.
Assessment and compliance status is given as under:

b. For Self Employed and Professionals: Not applicable

50% of Gross annual income as declared in their Income Tax return.

Section G

Assessed Bank Finance:

iii. Assessment of EPC / FBD limits:

Section G
b. Appraisal Memorandum for Term Loan

Section H

ASSESSMENT OF NON-FUND BASED LIMITS:

Assessment of Bank Guarantee Limit:
Under the traders easy loan scheme, Bank guarantee limit was last renewed on 30.03.2016.

provide Bank Guarantee of Rs.1.50 crores to Bajaj Auto

Limited towards security deposit for the quarterly sale tax liability to be
arise on manufacturer in case of non-submission of C-Form by the
dealer. Amount has been arrived @ 10.80% of quarterly purchased for
the peak quarter in the year as under:
Borrower is require to

Peakpurchaseestimatedinthequarterhaving Rs.14.00crores
festiveseason(OctobertoDecember)
Salestaxliabilityofmanufacturerinabsence Rs.1.51crores(ApproximatelyRs.1.50crores)
ofCForm@10.80%
Limitrequestedbyfirm

Rs.1.50crores

Limitrecommended

Rs.1.50crores

Earlier Bajaj Auto Ltd was accepting deposits in lieu of the BG and also paying
interest to the dealers. Due to change in the policy in the current year, dealer
has to furnish the BG of Rs.50.00 lacs. In absence of provisional financials for
the year ended 2016, The same was issued to the Company by marking mDFS limit/100% cash margin.
No enhancement is to be considered in the traders easy loan and in ABL,
minimum cash margin of 25% is required. Borrower is not agreeable to ofer
more than 10% cash margin quoting their more than4 decades relationship
with the Bank.
In view of the long term satisfactory relationship with the group with no
incidence of default in any of the group accounts and adequate collateral
coverage in the form of immovable commercial property, we are
recommending for conversion of present BG limit of Rs.1.00 crores into
regular BG limit with enhancement to Rs.1.50 crores. Cash margin in excess
of 10% already obtained will be released on completion of documentation.
Requirement of BG/Assessment is given as under:
Outstanding BGs as on 31.08.2016
Add:BGs required during the period
Less:Estimated maturity/cancellation of BGs
during the period

1.50
1.50
1.50

Requirements of BGs
Recommended BG limit
Financial: 1.50l
Performance: NIL
Margin(Existing/Proposed): 10%10%

1.50
1.50

Section H
c. Assessment of Credit Exposure Limit (Forward
Contract/Derivative Limit):

Section I
I.SECURITY
Primary
Facility

TECCL/BG,e
-DFS/m-DFS

Details of Security*

Hypothecation
of
entire
stocks
comprising of two
wheelers
and
components,
consumables,
store
&spares
at
shop/godown/premise
s or any other place
approved by the Bank
from time to time and
receivables

SAR
FAE
SI
Com
plian
t
(Y/N
)
N

Type
charge

of

Hypotheca
tion

Value**

Date
of
valuation

Basis
of
valuation

12.93

31.03.15

Audited
balance
sheet

Status
of
search
report with
date
regarding
noting
of
charge
at
ROC
Not
applicable

*To include detail like Khata no./Survey No./Patrta No.etc, Flat No.,House No,Area/extent of land, address.
**In case of Consortium/MBA Accounts our share to be provided. Details of Total security for the facility and
for the Banking system may be shown in brackets
Collateral
Facility

EDFS

Details
Security*

of

Plot
No.5
Situated
at
Lala
Lajpat

SARF
AESI
Comp
liant
(Y/N)

Owned
by

Type
of
charge

Value**

Date
of
valuation

Basis
valuation

Surjee
t Auto
Agenc

EM

4.25

22.10.12

A K Das

of

Status of
search
report with
date
regarding
noting of
charge at
ROC
/
CERSAI
20000556
7183

TEL/m-DFS

TEL/m-DFS

TEL/m-DFS

Rai
Nagar,
Govindpura,
Near Apsara
Talkies Raisen
Road, Bhopal,
plot area 2340
sq.ft
and
construction
area
8200
sq.ft.
(GF/FF/IInd
Fl/III Fl)
Plot
No.4
Situated
at
Lala
Lajpat
Rai
CoHousing
Society,
BhopalRaisen
Rd,
Road, Bhopal,
Plot area 2340
sq.ft.
Construction
area 7020 sq
ft(GF/FF/II FL)
Plot
No.7
Situated
at
Lala
Lajpat
Rai
Colony(
CoHousing
Society,)
BhopalRaisen
Rd,
Road,
Bhopa(Surjeet
Bajaj
Showroom).
Plot area 2340
sq
ft.
and
construction
area 2340 sq
ft.(GF))
Plot
No.1
Situated
at
Mandakini
Colony, Kolar
Road,
Ward
No.-28,
Bhopa(Surjeet
Bajaj
Showroom),
Plot area 2100
sq.ft
and
construction
area
4200
sq.ft.
(Basement/GF
/FF)

Tulsid
as
Nenwa
ni

EM

Surjee
t Auto
Agenc
y

EM

4.68

16.07.13

Gopal
Swaroop
Pandey

3.75

27.02.13

A K Das

4.53

01.03.13

Gopal
Swaroop
Pandey

1.80

1/3/13

Gopal
Swaroop
Pandey

20000126
9369

20000313
9258

A K Das

Surjee
t Auto
Agenc
y

EM

1.60

27/2/13

2.00

27/2/13

A K Das

2.10

01.03.13

Gopal
Swaroop
Pandey

20000127
2045

*To include detail like Khata no./Survey No./Patrta No.etc, Flat No.,House No,Area/extent of land,
address. In case of Agri land time line for conversion.

**In case of Consortium/MBA Accounts our share to be provided. Details of Total security for the
facility and for the Banking system may be shown in brackets

Guarantees
Facility

Name

Net Means

As on

Compiled on

TECCL/BG/e-DFS/m-DFS Shri
Tulsi
56.00
05.02.14
04.01.14
Nenwani
----do---Shri
Mohan
50.00
05.02.14
04.01.14
Nenwani
----do---Shri
Nand
68.00
05.02.14
04.01.14
Nenwani
----do---Shri Murlidhar
68.00
05.02.14
04.01.14
Nenwani
----do---Shri Ramesh
40.00
05.02.14
04.01.14
Nenwani
----do---Shri
Manish
20.00
05.02.14
04.01.14
Nenwani
# in case of corporate guarantors
a.In case of Corporate guarantee(s) brief profile and financials of the company
guarantees executed by the entity on behalf of the associate concerns to be given
b.In case of personal guarantees, net worth to be furnished.

CRA# rating
and date
------extending the

Section I
Security Coverage: Security coverage given as above linked to individual
schemes. However total security coverage is as under:
Security
Coverage SBI:

Existing
Including
residual
(%)
-125.41

value

Excluding
residual value
(%)
-125.41

Proposed
Including residual
value(%)

Excluding residual value (%)

Term Loan (%)

--Working Capital
125.41
125.41
(%)
Comment
on ----infirmities
in
security creation,
if any
Fixed
Asset ----Coverage Ratio
(FACR)
Please indicate time frame allowed for security creation:
Charges to be levied in case of delay in security creation (other than the time permitted by
the sanctioning authority) : 1 % on the entire outstanding till such time the formalities are
completed.
Deviation from existing security (if any) to be mentioned in the proposal, justification of
deviation, if any, to be furnished.
Percentage of Non- SARFAESI Compliant Security, if any, out of total collateral security:
The properties mentioned were visited by Arun K Singh, RMME on 08.08.2014.

Section J

J.PRICING
Ratin
g
CRA
ECR
a. Income Analysis:
From
WC Int.
TL Int.
LC
BG
Bill
Forex
Others
Total

Estimates (Last)
64.00

Current Yr

Previous Yr

SB-10

SB-4

Actuals (Last)
26.02

Provisional (Current)
74.39

Estimates
75.00

6.00

3.00

0.00

3.00

1.20
72.20

2.04
31.06

1.50
75.89

1.50
79.50

Interest &Other charges as per

SBI
latest
Balance
Sheet Amount
Percentage
dated(Prov.2014)*
Interest
74.39
67.11%
Other Charges
1.50
20.41%
*if share not pro-rata then reasons for the same: Bajaj auto Ltd also provide credit to
the firm for 18 days and chargeing interest of 12% upto 18 days and 18% beyond 18 days. The
difference of the interest is paid to Bajaj Auto Limited for credit availed with them. Borrower
submitted that Bank charges was paid to SBI only for the various transactions like
RTGS/NEFT/cash deposit etc.

Return on
charged
Comments

Capital

Estimated
year)
--

(Previous

Actual
(Prov.)
3.79%

(Previous

Year)

Estimated (Current year)

6.69%

Other Banks/FIS Pricing

Name of
Bank
Term Loan
--

the Existing
--

Proposed
--

Working Capital

--

--

--

Section J

Item

Proposed Pricing:
Base
Existing Rate
Rate

Spread
Int. on
WC
Int. on
e-DFS*
Int. on
mDFS*

Card Rate

Spread

Proposed Rate

Interest
rates of
other
Banks ( in
case of
MBA
&consortiu
m
finance )

10.00

2.50

Effectiv
e Rate
12.50

Spread

Effective Rate

2.50

Effectiv
e Rate
12.50

2.50

12.50

N.A.

10.00

0.30

10.30

0.30

10.30

0.30

10.30

N.A.

10.00

0.45

10.45

2.20

12.20

2.20

12.20

N.A.

(*Overdue interest will be charged as per the scheme/penal interest.)

Other concessions already extended/Proposed:
Other income

Income Head
Processing fee
Commitment
charges
Upfront fee

Existing
Rate
As per
scheme
--

Card Rate

Proposed Rate

Asper scheme

--

Charges of
other Bank s ( in
case of MBA
&consortium
finance )

As per scheme

Extent of
concession (%)
Asper scheme

--

--

--

--

--

--

--

--

--

LC
BG

-Card rate

-Card rate

-Card rate

-Card rate

---

e.Justification with cost benefit analysis: Not applicable as no concession proposed

Section K

K. Other Terms and Conditions

Security: details as mentioned under Section I

ECGC Cover:

Pre-shipmentCreditGuarantee

Yes/No

Post-shipmentCreditGuarantee

Yes/No

SCRPolicywithbuyerwiseLimit

Yes/No

Margins: (For each facility as applicable)

CashCredit:

Existing

Proposed

RM:

Domestic

--

--

RM:

Imported

---

--

-10%

-10%

NIL
-10%
---

NIL
-10%
---

SIP
FG(TECCL/m-DFS)
FG(e-DFS)
Receivables(Cover---days)
LetterofCredit
BG
TL/DPG
ProjectLC

Justification for deviation from existing margin, if any:

Insurance: The entire stocks as well collateral security will be adequately insured as per
banks extant instructions. Insurance with Bank clause incorporated will be obtained
Inspection:
The RM-ME team at the following periodicity will inspect the immovable property offered as
collateral after disbursement:
For Standard Asset
For Sub-standard Asset

Once a year by CSO

The account to be reviewed immediately and the inspection to be done at
quarterly intervals.
With the first sign of the Asset turning into Special Mention Asset (SMA) i.e. non-payment of interest,
Branch will initiate swift action to recover the dues without any loss of time.
For cash credit account: The frequency of inspection will be half yearly. Transactions monitoring (daily
debits/ credits) will continue to be the main instrument of monitoring end use of funds. If unhealthy trend
like credits drying up or diversion of funds to non-business uses is noticed, prompt corrective actions will
have be initiated.
For e-DFS account:The frequency of inspection will be monthly in terms of circular governing the scheme.

Facility
CC

Rate of Interest

Pricing
2.50% above Base Rate, present effective rate being 12.50% p.a. under Traders
Easy Loan.
m-DFS
SB 8 2.20% above Base Rate, present effective rate being 12.20% p.a. under m-DFS
Scheme.
e-DFS*
SB 8 0.30% above Base Rate, present effective rate being 10.30% p.a. under m-DFS
Scheme upto 60 days.Beyond 60 days rate of 0.55% above base rate, present
effective rate being 10.55% p.a.
*Interest for overderdue period will be charges as per rate prescribed in the scheme/penal interest.

i.
ii.

CRA
SB 8

Processing Fee/ Upfront Fee:

Processing Charges
Single Unified Charges for
m-DFS facility
TEL(CCL/BG0
Up-front Fee
EM Creation Charges
Inspection Charges
Any Other Charges

Iii.
iii.
iv.
v.
vi.

@ Rs.100,000/- for entire limit of e-DFS.

Rs.25000/- procesing charge.
Rs.300.00 per lacs
N.A.
N.A.
Actuals + [Rs.5000/-] subject to a minimum of Rs. 25,000/- p.a.
As applicable to this kind of accounts.

Repayment Schedule: The W.C. limit is repayable on demand. (For TEL(CCL/BG), The
sanction of Working Capital Credit facilities will be valid for a period of two years in terms
of e-Circular Sr No. 866/2009-10 dated 29.03.2010. The renewal of limit will be done
every two years. Last sanction date was 14.02.2013. The account will be subject to annual
review. The review will be based mainly on conduct of the account. However, the credit
summations should not be less than 200% of limit sanctioned.) The e-DFS/ m-DFS facility
will be valid for one year to be renewed thereafter.
Other critical covenants :

(i) Submission of follow up Returns/Information:

Sr. No.
Name
Periodicity
To be submitted within

i.

Stock Statement
Cash Credit:

Quarterly

m-DFS

Quarterly

ii.

Audited Annual
Statement of
account

Yearly

iii.

Renewal Data
along with CMA

Yearly

iv.

Any other
information as may
be desired by the
Bank from time to
time.

Stock statement shall be obtained at quarterly

intervals- as at the end of February, May,
August and November each year and kept on
record.
In case of non-submission by the stipulated date,
(a) Rs. 500/- within 10 days of due date.
(b) 1% for the month the stock statement is
not submitted within the stipulated period.
However stock statement for the month of
February or March compulsory
Within 6 months of close of financial year. In case
of non-submission of audited balance sheet
within 6-8 months, charges @ 1200/ per month
will be charged.
1 month before the due date of renewal, i.e., 1
month before the expiry of validity of the existing
sanction.

As may be required

(ii) Penal / Enhanced Interest:

In terms of Circular letter No. CCFO/ADV/289/05-06 dated 28.01.2006, penal interest is to be
charged as under:
i. Irregularity in CC account: Continuously irregular for a period beyond 60 days: 2% on the entire
outstanding. In other cases: 2% on the irregular portion.
ii. 1% penal interest will be charged for:
Non submission or delayed submission of renewal data
Default in covenants / non-adherence to terms and conditions;
In terms of Circular letter No. NBG/SME/SCFU-SCF/3/2012 13 Monday, April 23, 2012., penal
interest is to be charged on e-DFS account as under:
Penal rate of 2% will be applicable over and above the contractual rate for all
overdue invoices including the grace period.

Modification, if any, required from Standard Covenants (detailed in Circular

CPP/RSN/CIR/50 dated 26.09.2006), all other covenants will apply)
Justification for deviation, if any, to be furnished:

Section K
11. SWOT Analysis
Strengths

Borrowing Unit
Stake of the unit is adequate

Borrower (s)
( Proprietor/ Partner /Director)
Promoters are high net-worth
individual and have rich experiance
in the Industry

Weaknesses

Liquidity is low.

Opportunities

Formation of stable government in

the centre and union budget 201415 give push to two wheeler
industry
Economy is still in recovery stage
and position is not clear.

Threats

There are six partners from the

family and any dispute among them
will cause risk to the unit.

(Should be mentioned as bullet points)

Justification for the proposal: (Only bullet points)

We consider the proposition a fair banking risk, on account of the following reasons:
a) The promoters of the firm are resourceful and having banking relations with us for last 31 years,
through their other ventures.
b) The estimated/projected performance & financials of the firm are satisfactory.
c) The conduct of various group accounts has been satisfactory.
d)Adequate collateral security is available

Recommended for:
Proposal: Forsanction/approval/confirmation:
a) Renewal of e-DFS Limit of Rs.300.00 lacs at the existing level.
b) Renewal of m-DFS Limit of Rs.300.00 lacs at the existing level.
i)Sanction c)Review of WC FB CCL Limit under Traders Easy Loan scheme of Rs.75.00 lacs at the existing level
d)Review of NFB BG Limit under Traders Easy Loan scheme of Rs.100.00 lacs at the existing level
e)Renewal of ad-hoc e-DFS limit of Rs.150.00 lacs at the existing level

ii)Approva a) Deviation in current ratio of 1.06 as at 31.03.2013 as against benchmark of 1.20 in loan policy.
l
b) Deviation in collateral coverage in m-DFS of 125% instead of required 150% in the scheme

c)
iii)Confirm a) Branch action having continues the credit facilities beyond due date of 13.02.2014 till date of sanction
for m-DFS/TEL(CC &BG) and from 16.12.2013 to till date of sanction for e-DFS/ad-hoc e-DFS.
ation

b)
c)

It is certified that:
i. All the adverse features and risk factors discuss in the proposal have been
highlighted under the head Risks / adverse features and mitigating factors.
ii. We have cross checked the financials as mentioned in the Balance sheet from
those available on the website of Ministry of Corporate Affairs, if applicable.
iii. CRA rating has been submitted to validated committee for independent
validation.
Appraisedby

Assessedby

AdditionalAsse
ssmentby

Signature
Name
Designation
Place:
Bhopal
Date:11.08.1

ANNEXURE - 1
FuFuture Plans & Business potential (over a 3-5 year horizon) including Cross selling /
Retail Marketing based on Co / Groups future plans: (to be quantified).
Item

a) Corporate Salary Package

b) P Segment Loans (Nos)
(a) Housing
(b) Auto Loans
(c) Personal Loans
c) SBI Credit Card (No.)
d) Point of Sale Terminals
e) SBI Corporate Card (No.)
f) SBI Life Business : (Premium )
a) Corporate Business
b) Retail Business
g) SBI General Insurance
(Premium- Rs.in crores)
h) SBI Mutual Funds (Gross

Present Position
Whether Tied Up? (Yes /
No) *

Business
estimated

No

--

1
No
No
No
No

--

No
Not inclined.
1.50
No
Not inclined.

1.00

investment- Rs.in crores)

i) SBI Capital Markets Ltd
Project Advisory &Loan
Syndication
M &A
Private Equity
IPO/FPO
Others (if any) (Potential
Ticket size & when
expected may be
furnished against each
applicable item)
j) SBI Vishwayatra Foreign Travel
Yatra Cards (In USD)

No

k) Vendor/ Dealer Finance

l) Any Other (Please specify)

N.A.

Not required.

Yes

The promoters are using CINB.

*if no, please advise efforts made and outcome thereof

***************************************************************************************************************

If no, please advise efforts made and outcome thereof

ANNEXURE 2
Earning, ROCC & Net Interest Margin:
Facility

RateofInterestCharg
ed %(A)

CC
12.50
e-DFS
10.30
12.20
m-DFS
(Average interest rate /interest margin:10.60/0.35

MRFTP
Rate%(B)
10.25
10.25
10.25

External Rating:
NameoftheExter
nalCreditRatingAgency
RiskWeightapplicable
Capital Charge:
Facility

1.
2.
3.
4.
5.
6.
7.
8.

FBWC
e-DFS
m-DFS
SLC
LC(Docum)
LC(Non-docum)
BG(Perform)
BG(Financial)

NetInterestMargin%(C=A-B)
2.25
0.05
1.95

Not applicable/Not available

100%
ProposedLi EffectiveEx CCF(%) RiskW RiskWeighted
(E)
mits
posure
eight( Exposure(G=
(D)*
%)(F)
D*E*F)

CapitalCharge(H=
G*12%)

75.00
450.00
300.00

75.00
450.00
300.00

100%
100%
100%

100%
100%
100%

75.00
450.00
300.00

9.00
54.00
36.00

100.00

90.00

50%

100%

45.00

5.40

9.

CEL
925
915.00
870.00
104.40
Total
* After netting off financial / cash securities (as per Basel norms)
Return on Capital Charge (ROCC) :
Actuals(Prov.)(2013-14)
Estimates(2014-15)
InterestInco NII(Q=
FeeInc TotalInc InterestInco NII(U = FeeInc TotalIncome(
me(Lastyear) P
*
ome(R ome(S) me(NextYea T
* ome(V W)
(P)
)
r) (T)
)
C/A)
C/A)

WCInt./discount
TLinterest
LC
BG
Forex
Bills
Others

74.39

TOTAL
ROCC(%) (Total Income
*100/H)

74.39
3.79%

2.46

1.50

3.96

2.46 1.50

3.96

75.00

75.00
11.73%

7.75

1.5

9.25

3.00

3.00

7.75 4.50

12.25

Details of Due Diligence

Annexure-3
DateofPre-Sanctionvisit
Place(s)visited

08.08.2014
1.Surjeet Auto Agency ,7, Lajpat Naar, Bhopal
2.Surjeet Auto Agency ,Colar Road, Bhopal

Name(s)ofofficials,whovisited
Whether papers required for KYC
obtained(PAN/Articles/Memoetc)?Yes/No

Arun Kumar Singh

Yes

DateofSearchReportobtainedfromROC
Formalities
regarding
obtention
of
legalopinion/valuationreportcompleted?
(Yes/No)
Whether information on loan rejections / slippages has been
obtained as per eCircular CPP/ITSS/SKM/Cir/85 dated
03.10.2013 and position has been furnished (Y/N)

Not Applicable
Valuation obtained. Legal Opinion report will be
submitted by the legal auditor.

Whether CIRs obtained from existing Bankers?(Yes/No)

Not applicable

OtherObservations,ifany

NIL

Date Chart
1.Natureoffacility(ies)appliedfor:

Not applicable

15.07.2014(Renewal)

2.Dateofreceiptoftheproposal
3.Informationsoughtonchangesintherevisedbusinessplan
4.Replyreceived
5.DiscussionsheldwithCompanysofficials
6.Informationrecd
7.InPrincipleNotesubmitted

N.A.
N.A.
08.08.2014
11.08.2014

8.Dateofreceiptofcompleteinformation
9.Dateofsubmissiontosanctioningauthority(forsanctioningauthoritiesuptothelevelofGM)

11.08.2014
11.08.2014

10.DateofsubmissiontoCCCCifproposalistobesanctionedbyCCCCorhigherauthorities

Details of Post sanction monitoring done in last 12 months, in case of renewal / existing
relationship:
Date &Name(s)ofSe n io r off icia ls ,whovisited the 08.08.2014, Arun Kumar Singh, RM-ME
unit / customer.
Observations:
Nothing adverse pointed out
Creation of charge in terms of sanction:
08/03/2013 &20/07/2013
Deviations observed , if any:
Date &Name (s) of the official (s) who visited in Arun Kumar Singh on 08.08.2014
respect of security verification:
Observations:
NIL
Comments on insurance of security as per sanction Insurarance for the full stock has since been
term:
obtained.
Deviations observed , if any:
Comments on conduct of account:
Satisfactory
( including routing of sale proceeds through the
account, in proportion to sanctioned limit )
Implementation of Project as per schedule:
Not applicable
Deviations observed , if any:
Details of Business Visits, Meeting with top -company officials, Banks senior management
meets / discussions with PE investors:
Comments on SMA follow-up:
N.A.
Submission of irregularity report /FFR and N.A.
observations of the controlling authority:
Action initiated for regularisation of the account
-Any other unsatisfactory features after sanction /
-renewal of the account:
We confirm that on the basis of inspection, information and explanations obtained, the security
(mentioned in the proposal) has not suffered any significant impairment.

Appraisal:donebyanddateofcompletion

Designation
CSO

Date

Initials

Appraisal &Assessment:Doneby&Dateofcompletion

AdditionalAssessment:donebyanddateofcompletion

Diversion of Fund

RM-ME

Chief Manager