M/S TIRUMALA CHEMICALS

ANDHRA BANK
(A GOVERNMENT OF INDIA UNDERTAKING)

APPRAISAL FORMAT FOR ADVANCES WITH LIMITS OVER Rs.10 LAKHS & BELOW Rs. 50 LAKHS

Powers: Branch: PIDUGURALLA Zone: GUNTUR Proposal for : Fresh limits Proposal received at Clarifications received on Date of disposal A. 1. 2. 3.

Branch

ZO :

Note No.: Date: Credit Rating:- Existing: -A Proposed: A Asset Classification: New Account Renewal due since : HO

PROFILE OF THE BORROWER: Name of the Borrower Constitution Location : Business address

CHANDRA REDDY USIRIKA Proprietary M/S TIRUMALA CHEMICALS 15-168/1,OPP: Police station GUNTUR DT, A.P-522413 Police Statin Road, Piduguralla Shop : 9885597045,08649-252240 01/04/1999 Existing Account Sale of Lime Products N.A Not applicable Sole

Residential Address Telephone No. Date of Establishment Dealings with our Bank since Line of Activity/Business SSI Registration No Group Banking Arrangement

4. 5. 6. 7. 8. 9.

7. Names of Proprietor/Partners/Directors : (Rs. in lacs) Sl. NAME Worth Basis (IT/WT Educational Experience No. (Rs. in Lakhs) assessment Qualifications etc.) 1. Chandra Reddy Usirika 19.00 Property Matriculation 12 Years Statement 8. Change in the constitution, if any, with details : NO 9. Details of existing and proposed limits with our Bank: Sanction reference (for existing limits):(Rs. in lacs) Facility Existing Outstanding DP OD Proposed Rate of interest Limit as on limits Existing Proposed 31.03.2011 TL SSI OCC 15.00 8.22 15.00 Total Fund Based Non Fund Based 1

M/S TIRUMALA CHEMICALS Grand Total Exposure: As per Projected B/S 31.03.2010 To the unit To the Group 15.00

Ceilings as per RBI norms 83457 222554

*Constitution wise ceiling as per bank policy 12.18x6=73.08 NA

**Our Bank's exposure Existing Proposed --15.00

* Ceiling as applicable to Individuals, Proprietorship / HUF Trusts / Co-operative Societies / Association persons / Pvt.
Ltd. Companies/ Public Ltd. Companies etc. ** Term loans out standings + 100% of fund based working capital limits or out standings whichever is higher + 50% of non fund based limits or outstanding which ever is higher (with effect from 01.04.2003 100% of non fund based limits or out standings which ever is higher)

10.

Credit facilities with other Financial Institutions/Banks

- NIL -

11. Credit facilities enjoyed by sister/Associate concerns with us and others: NIL 12. Names of Co-obligants / Guarantors S No Name 1 Ch.Sitha Ramireddy 2 Ch.Rama Kotamma 3 I. Peramma 4 S.Bhanu Prakash : Net worth (Rs.in Lakhs) 10.00 5.00 3.00 5.00 Basis Property Statement Property Statement Property Statement Property Statement

13.Details of Collateral Security : : Name of the owner Details of Security Including the extent & Name of the Owner Idugla.Peramma Vacant site in S.y No: 397/B 339 Sq.Yards at Piduguralla Challa Ramakotamma Vacant site in S.y No: 397/B 339 Sq.Yards at Piduguralla Challa Ramakotamma House Property in D.no: 30-89 extant 61.50 Sq.Yards at Piduguralla Sunkara Bhanu Praksh Vacant Site 48Cents in S.y No: 855/48 at Piduguralla Challa SithaRami Reddy House Property 14. For Corporate borrowers only: A. Share holding pattern : Promoters/Association/Public/ F.Is. B. Names of 10 major shareholders: 15.

Value ( In Lakhs ) 9.00 9.00 2.40 11.50 4.33

Date of valuation 09.11.2010 09.11.2010 09.11.2010 09.11.2010 09.11.2010

-------- NOT APLICAPBLE. ------------- NOT APPLICABLE. -----Brief comments about Management: 2

M/S TIRUMALA CHEMICALS M/S TIRUMALA CHEMICALS is a proprietary concern and Mr.CHANDRA REDDY USIRIKA is proprietor of the firm. The borrower engaged in Business of Sale of Lime Products The promoter is having 12 years experience in that activity and is well experienced in Existing activity.

16. Verification of Caution list, defaulters list: RBI defaulters list dated__30.09.2009
(Rs. 1 crore & above) Willful defaulters list date____30.09.2009_ (Rs.25 lacs and above) Caution list dated_________31.12.2009 ECGC Specific Approval List__NA_ NOT FOUND.

17 A. PERFORMANCE OF THE UNIT FOR THE LAST 3 YEARS: (for existing units only) B. RATIO ANALYSIS: Existing Unit Previous Financial Statements and Projected Balance sheet and ratio analysis enclosed.
Comments on Financial Position and Performance : ALL KEY RATIOS ARE SATISFACTORY as per Projected Balance sheet . 18. Particulars of operations in OCC / KCC / SOD / PC Limits : Satisfactory
List of outstanding Bank Guarantees : NIL

Statement of BGs/LCs outstanding shall be furnished as annexure

Income Earned in the account: Satisfactory

Comments on operations in the facilities : Satisfactory Irregularities Pointed out in Inspections : Nil
Pre sanction Unit Inspection Conducted By Branch on

19. Assessment of Limits Working Capital Term Loans Letter of Credit / BG.

Annexure A (Inventory Method) B (Turnover Method) C (Cash Budget Method)

D

Annexure Applicable A&B Not Applicable Not Applicable

M/S TIRUMALA CHEMICALS

Addl. Details for Export advances CRS 20. Branch Views & Recommendations : F G Not Applicable G

M/S TIRUMALA CHEMICALS is a proprietary concern and Mr.CHANDRA REDDY USIRIKA is proprietor of the firm. The borrower engaged in Business of Sale of Lime Products. The promoter is having 12 years experience in that activity and is well experienced in Existing acttivity. The project cost is justifiable for the market conditions for the economic viability and financial feasibility. Borrower offered Collateral security More than 100% of the Limit.(statement Said Above) The Goods and skilled labor are available locally Finished products are having good market in India. Selling price projected by the borrower is acceptable as per prevailing market rates

Branch Recommended for Renewal of Working capital limit of Rs15.00 lakhs

The proposal conforms to the Loan Policy. xxxxx Appraising Officer Compliance with Loan Policy : As per Policy As per Projected Balance sheets (1st Year) Exposure norm applicable to category 48.00 Current Ratio >1.15 TOL/TNW <6 Capital Gearing Ratio 10 Pre sanction Unit Inspection xxxxxx Branch Manager
Present Proposal Compliance Yes or No

15.00

1.28 5.70
N.A. Conducted By Branch on

YES YES YES N.A. YES

In view of the above and basing on branch recommendations, we recommend the following credit facilities to the captioned borrower : 01 Facility Limit Rate of interest Activity Purpose Margin Primary Security Rating Repayment OCC Rs 15.00 Lakhs (Rupees Fifteen Lakhs only) BMPLR+ % TP Presently 12.00+ = % p.a. Sale of Lime Products Working capital requitrements 25% ( of which, borrowers stake 5% remaining 20% KVIB Margin) Hypothication of Stock A as per projected balance sheet as on 31.03.2012

M/S TIRUMALA CHEMICALS

Terms and Conditions : PRE-DISBURSEMENT CONDITIONS:

1.

The working capital limits shall be utilized for the purpose for which it is intended and there shall not be any transfer of funds to and from among group concerns. Working capital funds shall not be diverted for acquisition of fixed assets, investments in associated companies/subsidiaries and investments in capital market. 2. Branch to obtain un conditional legal opinion on collateral securities offered and satisfy with worth and title of the properties. 3. Copies of RF216,clear & unconditional legal opinion to be sent to zonal office along with compliance certificate with in 7 days from the date of disbursement of loan ENABLING CONDITIONS: 4. Bank reserved its right to alter/cancel and/or modify the credit limits/loans sanctioned and/or terms and conditions stipulated without notice and without assigning any reason thereof. 5. Our bank reserved the right to rearrange the repayment schedule and to call upon the company to accelerate the payments, if the companys financial position so warrants as per the opinion of the bank. 6. The rate of interest and margins stipulated are subject to changes from time to time at the sole discretion of the bank/as per the guidelines of Reserve Bank of India/Government of Indian/IBA etc with out any further notice to the borrower. 7. Branch to obtain letter of undertaking from the borrowing concern as well as cooblignat/guarantor to the effect that no consideration by way of commission Brokerage, fee or any other form would be paid by the borrower or received by the Coobligant /guarantor directly or indirectly for standing as a co-obligant /guarantor INSURANCE: 8. Primary securities are to be insured for full value with bank clause. OTHER CHARGES: 9. Processing charges/Upfront charges to be collected as applicable.

GENERAL TERMS & CONDITIONS: Sole Banking: 10. The borrower should deal with us exclusively and all other bank accounts should be closed. Branch to ensure closure of other bank accounts of the institution before release of enhanced limits. Terms & Conditions applicable to OCC: 11. Branch shall obtain Stock Statement and review the same as per the Procedure. Submitted for instructions. Deputy Manager

M/S TIRUMALA CHEMICALS ANNEXURE-A-1 WORKING CAPITAL ASSESSMENT

(FOR LIMITS ABOVE Rs.10 LACS AND UPTO RS. 5O LACS)

A. JUSTIFICATION OF TURNOVER PROJECTED: PROJ 1 2009-10 250.63 PROJ 2 2010-11 219.53 PROJ 3 2011-12 250 PROJ 4 2012-13 290 PROJ 5 2013-14 330

The firm projected an average increase of 10% of sales every year considering the increase in selling price and operating capacity In view of the above, the projected Turnover is reasonable to achieve and justified

B. POSITION OF NET WORKING CAPITAL PRESENT AND PROJECTED: PROJ 1

102.60

PROJ 2
19.00

PROJ 3
21.07

PROJ 4
23.47

PROJ 5
26.17

Major variation in NWC shall be explained.

The borrower is eligible for Renewal of working capital limits Rs.15.00 lakhs as per Turnover method and Rs.15.00 Lakhs as per Inventory method as per projected Balance sheet 1st and 2nd years. However, borrower requested for OCC Limit of Rs.15.00Lakhs (Working capital Component of CTL)

M/S TIRUMALA CHEMICALS

ANNEXURE - IV
CREDIT RATING MODEL FOR NEW UNITS WITHOUT AUDITED BALANCE SHEET

APPLICABLE FOR Rs.5.00 LACS AND LESS THAN Rs.50.00 LACS

M/S TIRUMALA CHEMICALS Ref: Projected Balance sheet as on 31.03.2012 I MANAGEMENT & INDUSTRY RISKS Column A Tick Group Reputation Managerial Competence Personal Guarantee of Directors/3rd party guarantee in case of partnership/proprietary concern Integrity Total Crosses 5 Multiplying factor 9 Marks obtained Maximum Marks 0 20 0 0 16 16 16 16 12 0 0 0 0 Most reputed Very Good

Column B Reputed Good

Tick x x

Column C No negative reputation Satisfactory

Tick

Column D Unsatisfactory reputation Not good

Tick

Available

-----

----

Not available

Very Good 0

Good

x 4

Satisfactory 3 3

Not satisfactory

II. COLLATERAL SECURITY COVERAGE 60% & above 40 to <60% 25 to < 40% 10 to < 25% 5 to <10% <5%

Marks 5 4 3 2 2 1 X

Tick

M/S TIRUMALA CHEMICALS

III FINANCIAL RISK FACTORS A. GROUP RISK All group units are standard assets, profit making with no adverse financial features. All group units are standard assets with no adverse financial features and most of them are making profits except those units, which have commenced commercial operations recently. All group units are standard assets with no adverse financial features. Though one or more of them have made losses for latest financial year, due to temporary reasons, their long term viability is not in doubt. All group units are standard assets but one or more them have made losses for latest financial year resulting in adverse financial position for which the promoters are taking sufficient steps to improve. All group units are standard assets but one or more of them are making losses for more than one year with/without adverse financial position. Marks Allotted 5 Tick

B. TERM LOAN REPAYMENT RISK (FOR TERM LOAN RISK ONLY) < 36 months >=36 & <48 months >=48 & < 60 months >= 60 & <84 months >=84 & <120 months >= 120 months C. PROJECTED DSCR (FOR TERM LOANS ONLY) >=1.75 >=1.50 <1.75 >=1.40 <1.50 >=1.30 <1.40 >=1.20 <1.30 <1.20 D. PROJECTED DEBT EQUITY RATIO < 1.75 <2 to >=1.75 <2.25 to >=2.00 <2.50 to >=2.25 <3.00 to >=2.50 >3.00

Marks Allotted 5 4 3 2 1 0 Marks Allotted 5 4 3 2 1 0 Marks Allotted 5 4 3 2 1 0 x

Tick

N.A

Tick

Tick X

M/S TIRUMALA CHEMICALS

IV OTHER RISKS CONSTITUTION RISK Widely held Company/PSU Public Limited Company Private Sector Company Partnership firm Proprietary TABULATION OF SCORES Risk Factor Marks Allotted I. Management/Industry Risk Factors 20 II. Collateral Security 05 III. Financial Risk Factors 15 IV. Others 05 Total 45 (F) APPLICABLE RATING Marks Secured 95% & Above (to be decided by HO) 95% & Above (to be decided by HO) 90% & above 80 to 89% 70 to 79% less than 70%. Marks Allotted 5 4 3 2 1 Tick

Marks Scored 16 5 15 1 37

CRA rating A+++ Prime A++ Excellent A+ Very Good A Good B Satisfactory C Average

Tick

Spread(PLR+)

Date : Officer :

Date : Recommending Authority :