balaji final 21.09.13

8/13/2019 Balaji Final 21.09.13

1/32

8/13/2019 Balaji Final 21.09.13

2/32

================================================================

SME LOAN FACTORY NASHIK:

M/s Balaji Corporation. Nasik Road Branch Page 2 of 32

2.0) Basic Data:

Sector MSME (Regulatory)- Small Enterprises

Segment Manufacturing

Asset Classification N.A, New A/c

Banks Credit Rating 31.03.2013 31.03.2014(Projected)

Obligor Rating N.A BOB-3

Combined Rating for:Term Loan/s N.A CR-3

Working Capital N.A CR-3

External Credit Rating Not Applicable, as the proposed exposure is below Rs. 5

crores.

Constitution Partnership

Date of Establishment 31/01/2013

Location: Registered Office Krishna Building, Near Bytco point, Nashik Pune Road,

Nashik Road-422101

Factory Plot no.52 & 57, STICE, Musalgaon, Sinnar, Dist-Nashik

Group Not a recognise group.

Industry and Nature of Activity Manufacturing of Industrial and Automotive Lubricant Oil

& Grease, etc.

Exposure to Industry Petroleum (Lubricants) - ASCROM 31.03.2013

Rs. In Lacs

Particulars Bank Zone

a) Sectoral Cap for Industry 2840000.00 --

b) Exposure 935147.63 10811.04c) NPA 33334.65 0.00

d)PWO 28.06 0.00

Collaboration / J.V. if any No.

Dealing with the Bank since Current Account with our Nashik Road since 29th March

2013

Our Banks Share Working

capital as well as term loan

100%

Rate of Interest Sl.No. Facility Applicable

a) WC Limits Base Rate + 2.25% i.e. @ 12.50 % p.a.

with monthly rests.

b) TL Limits Base Rate + 2.25%+ Tenor Premium

@ 0.15% i.e. 12.65 % p.a. withmonthly rests.

Security Available 1. Exclusive 1stcharge by way of hypothecation of Plant

and machinery of the Firm both Present & Future.

2. Exclusive 1stcharge by way of Equitable Mortgage of

Lease hold Land & Building admeasuring 4000 sq.mt

and Factory building admeasuring 603.05 Sq.mt

8/13/2019 Balaji Final 21.09.13

3/32

================================================================



located at Plot No. 52 & 57, STICE Musalgaon,

Taluka Sinner, Dist: Nashik belonging to firm.

3. Exclusive 1stcharge by way of Hypothecation of entire

Raw Materials, Stock-in-process, Stores & Spares,

Packing Materials, Finished Goods and Book-Debts of

the firm both present & future.

Note:

The TL of Rs. 50 Lac is covered under CGTMSEScheme.

The credit facilities will also secured by the personal

guarantee of all the Partners of Firm viz. Mr. Mahesh

Prakash Boob; Mr. Umesh Prakash Boob and Mr.

Pradeep Kisanlal Boob having aggregate net worth of

Rs.780.99 Lacs.

Average drawings during the

Year 2012-13

N.A, New A/c

Yield in the account N.A, New A/C

Major Inspection irregularities

Concurrent Audit N.A, New A/C

Internal Audit N.A, New A/C

RBI Inspection N.A, New A/C

Statutory Audit N.A, New A/C

Auditors of the Firm

Qualification remarks of the

auditors

New Firm

Pollution Clearance Firm has submitted Application for obtaining consent to

operate from MPCB on 12.08.2013 (Acknowledgement

receipt No. 010937 issued by Maharashtra Pollution

Control Board is available on record. However the same isstill awaited.

It has been stipulated that the Firm shall submit

Consent to Operate from MPCB before release of the

Credit Facilities.

Whether statutory dues have

been paid

N.A., Newly established Firm

Whether the names of the Firm /

Associates or partners appear in

RBI defaulters list and / or

caution list

RBI Defaulters List dated 30.09.2012 NIL

RBI Wilful Defaulters List dated 30.09.2012NIL

CIBIL Report of the Firm / Partners / Group Concerns

dated 27.08.13 & 16.09.2013 reveals no adverse remark.

Whether the firm/promoters and

their Associates are on ECGC

caution list / S.A. List.

No, the firm / promoter and their Associates are not on

ECGC caution list dated 19-08-2013.

Compliance of earlier terms and

conditions including creation of

charge

N.A.

8/13/2019 Balaji Final 21.09.13

4/32

================================================================



2.01) Banking arrangement:

(Rs. in lacs)

Name of the Bank

Fund based Non Fund Based

% Share Amount % Share Amount

Exit Prop Exit Prop Exit Prop Exit Prop

Bank of Baroda - WC -- 100% -- 100.00 -- -- -- --

TOTAL 100% 100.00

2.02) LOANS FROM FINANCIAL INSTITUTIONS: NA

(Rs. in lacs)

Name of the Institution/ Bank Limit Present

Outstanding

Excess /

Over dues

N.A -- -- --

2.03) Any Reschedulement agreed (in last -3- years):No

2.04) Particulars of Partners:

(Rs in Lac)Name of the partner Pan Number Sharing Ratio Net Worth as on

31/07/2013

Mr. Pradeep Kisanlalji Boob ABRPB9542Q 50% 512.49

Mr. Mahesh Prakash Boob ADYPB0082A 25% 138.50

Mr. Umesh Prakash Boob AAYPB2014G 25% 130.00

Total 100% 780.99

2.05) Particulars of Guarantors:

(Rs in Lac)

Name of the Partner Pan Number Net Worth as on

31/07/2013Mahesh Prakash boob ADYPB0082A 138.50

Umesh Prakash Boob AAYPB2014G 130.00

Pradeep kisanlal Boob ABRPB9542Q 512.49

Total 780.99

2.06) Business experience of Partners:

A) Mr. Pradeep Boob.

Mr. Pradeep Boob (Age 57 years) is Commerce Graduate. After Completion of B.Com, he

joined his family business of Petrol Pump in the name of M/s. K. R. Boob, which is engaged

in distribution of Petrol & Diesel. The Petrol Pump is situated at Mumbai-Agra Highway in

the MIDC area. The firm is authorised dealer & also having C & F Agency of HPCL Nashik

and Raigad District.

8/13/2019 Balaji Final 21.09.13

5/32

================================================================



He is having vast experience of more than 30 years in the line of distribution of Petroleum

products and overall administration and management of existing units. The Boob family is in

this business for last 50 years. They have developed good relations with customers of Nashik

and having Established network of distribution.

B) Mr Mahesh Prakash Boob.

Mr Mahesh Boob, aged 36yrs, completed graduation in commerce. After completion ofeducation he joined the family business under the firm M/s Somnath Deokisan Boob, The firm

is engaged in trading firm for dealership of HPCL for LDO, Furnace LIL, and Lubricant Oil for

Nashik District. His qualification and experience is helpful to the firm in Managing the business

of the firm.

C) Mr Umesh Prakash Boob.

Mr Umesh Boob, aged 34 yrs, hails from Business family. He is a commerce graduate. Since

completion of Graduation, he is involved in the family business namely M/s Somnath Deokisan

Boob, The firm is engaged in trading firm for dealership of HPCL for LDO, Furnace OIL, and

Lubricant Oil for Nashik District. Mr Umesh maintains good relationship with the traders/Industrial Units of surrounding area & gained good experience in this line of activity.

3.0)ISSUE FOR CONSIDERATION:

To consider fresh sanction of the following credit facilities to the Firm for the period of 12

month on the term & condition as detail in Annexure -D

(Rs. in lacs)

Facilities Existing Proposed Balance o/s as

on 19.09.13

Overdue, if

any

Fund Based Limits

Term loanFresh

(For purchase of lease hold Factory Land &

Building/P&M /MFA under CGTMSE

Scheme)

-- 50.00 -- --

Fund base working capital Limit -

Cash Credit (Stock & Book Debts)

-- 100.00 -- --

Total Fund Based Limit -- 150.00 -- --

Non-Fund Based Limits -- -- -- --

TOTAL -- 150.00 -- --

3.1) BACKGROUND OF THE FIRM:

Balaji Corporation is a SSI unit (bearing No. 27-020-12-05290) floated as Registered Partnership

firm by Mr. Pradeep Kisanlal Boob, Mr. Umesh Prakash Boob, & Mr Mahesh Prakash Boob on

31stJan. 2013 with a view to Manufacturing, Trading, C&F Agency Business in Lubricant Oil,

Grease & Other Petroleum Products.

8/13/2019 Balaji Final 21.09.13

6/32

================================================================



The partners are in the line of retail business of Petrol, Diesel and Auto Lubricants & Kerosene

since last more than 15 yrs. and gradually they have established their name in Nashik Industrial

Area with good client base. In view of the opportunities available in the market, they have now

decided to do the business i.e. Manufacturing of Industrial & Automotive Lubricant Oil & Grease.

The firm has purchased existing running unit of M/S H.R. Corporation, engaged in Manufacturing

of Industrial & Automotive Lubricant Oil and situated at Plot No. 52 & 57, STICE, Musalgaon,Sinnar in a consideration of Rs. 113.40 Lacs.

Accordingly the Partners of the firm have approached us with a request to sanction credit facilities

aggregating Rs.150.00 Lacs, which comprises of Term Loan of Rs. 50.00 lacs for purchase of the

unit on reimbursement basis and Rs.100.00 Lacs towards working capital limit.

4.0) SECURITY COVERAGE:The firm has offered following securities.

Details of assets of the Firm Date of valuation Amount

A. Primary Security1 Exclusive 1

st charge by way of Hypothecation of

entire raw Materials, Stock-in-process, Stores &Spares, Packing Materials, Finished Goods and

Book-Debts of the firm both present & future.

Notional Value 133% of

Limit is considered forcalculation of Security

Coverage

133.00

2 Exclusive 1stcharge by way of hypothecation of

Plant and Machinery of the Firm both present &

Future.

As per Registered Lease

deed dated 23-07-2013-

price of Rs.113.40 Lacs +

Rs.4.53 Lacs stamp duty

and Registration charges

Market value of the L&B is

Rs.141.00 Lacs, as perValuation report dtd. 02-08-

2013 of Mr. Mudkanna J.C.

our approved valuer.

Value of P&M is Rs. 21.43

Lacs, as per valuation report

dated 24-07-2013 of Mr.

Mudkanna J. C. Our

approved valuer.

117.93

3 Exclusive 1stcharge by way of Equitable Mortgage

of Lease hold Land & Building admeasuring 4000

sq.mt and Factory building admeasuring 603.05sq.mt (as per approved plan) located at Plot no.52

& 57, STICE Musalgaon, Taluka Sinner, Dist-

Nashik in the name of Firm through its Partners

Mr. Pradeep Kishanlal Boob; Mr. Mahesh Prakash

Boob and Mr. Umesh Prakash Boob.

Total Security 250.93

Total Exposure 150.00

Total Security Coverage Ratio (250.93/150.00) 1.67Fixed Assets Coverage Ratio (117.93 / 150.00) 0.79

The TL of Rs. 50 Lac will be covered under CGTMSE Scheme.

The credit facilities will also secured by the personal guarantee of all the Partners of

Firm viz. Mr. Mahesh Prakash Boob; Mr. Umesh Prakash Boob and Mr. Pradeep

Kisanlal Boob having aggregate net worth of Rs.780.99 La

8/13/2019 Balaji Final 21.09.13

7/32

================================================================



5.0) OTHER INFORMATION:

Dealing and conduct of the account N.A., New A/c.

However, group concern of Mr. Pradeep Boob namely M/s

K.R. Boob (Petrol Pump) is dealing with our Golf Club

Branch since September 2012 and presently availing BTL of

Rs. 228 Lacs sanctioned by The Chief Manager, RLF on

31.01.2013. As per Statement of A/c and feedback received

from the Branch, the conduct in the account is satisfactory.

M/s Balaji Corporation has also opened current a/c with our

Nasik Road Branch in March 2013 and made all payments

towards acquisition of the Unit through the account.

Documentation Documents yet to be executed. However, the Documents to

be vetted by the Empanelled advocate of the Bank before

disbursement of credit facility.

Whether proposed limits are within

Banks prudential single

borrower/group exposure norms

Yes

Pro rata non fund business N.A., New A/c

Comments on utilisation of limits N.A., New A/c

Comments on credit rating The Obligor Rating of the Firm is MSMEBOB 3/ CR-3 based

on Projected Balance Sheet as on 31.03.2014 and within

Investment Grade.

Whether all clearance / approvals

have been obtain

Yes

KYC Compliance The firm has maintained current account with our Nashik

Road Branch with compliance of all KYC documents.

Pre sanction Inspection Report. Pre-sanction Inspection of the unit was carried out by Mr

Savant , Chief Manager of Nashik Road Branch, Mr AnujBhargava, Chief Manager SME Nashik and Mr. Sanjay H.

Jajoo, Manager, SME Nashik on 27-07-2013 and

commented that:

1) The unit is situated in STICE area at Musalgaon, Sinnar,

which is well connected with Road.

2) The Building & Plant & Machinery was in good

condition.

3) General maintenance work on P&M was in progress to

make the unit operational.

4) The Promoters have informed that the operation in the

unit is likely to be commenced in October 2013.5) No adverse features found during the inspection.

Valuation of property. The valuation of the immovable property of the firm as

carried out By Mr. Mudkanna J.C. approved valuer. As per

the report dt. 02/08/2013 valuation of the same is Rs.141.00

Lacs.

8/13/2019 Balaji Final 21.09.13

8/32

================================================================



Details of Associate / Group Concerns/Units and their Banking arrangements:

(Rs. in lacs)

Name of Unit Name of Bank Term Finance Working Capital

M/s Somnath Deokisan

(Partnership)

HDFC BANK NASIK -- -- 30.00 --

M/s K.R.Boob Prop. Mr. Pradeep

Kisanlal Boob (Fuel Division)

HDFC BANK NASIK -- -- 210.00 --

M/s K.R. Boob Prop. Mr. PradeepKisanlal Boob (Petrol Pump)

BANK OF BARODA -- -- 228.00 --

FINANCIAL HIGHLIGHTS OF GROUP CONCERNS:

(Rs. in lacs)

Name of the Group concern

SALES NET PROFIT NETWORTH

2010-11 2011-12 2010-11 2011-12 2010-11 2011-12

M/s Somnath Deokisan -- 835.82 -- 14.12 -- 42.01

M/s K.R.Boob Prop. Mr.

Pradeep Kisanlal Boob (Fuel

Division)

2259.64 2735.02 52.77 44.48 326.47 133.91

M/s K.R. Boob Prop. Mr.

Pradeep Kisanlal Boob (Petrol

Pump)

2104.35 2239.06 16.61 16.80 87.26 51.67

Whether listed company - present market quotation - 52 weeks high / low: NA

Our Banks investment in the firm: NIL

Our exposure to the captioned firm:

(Rs. in lacs)

C&I Advance Priority Sector International Div. SME TOTALExisting -- -- -- -- --

Proposed -- -- -- 150.00 150.00

6.01 SANCTION OF FRESH TERM LOAN OF RS. 50.00 LACS UNDER THE CGTMSE

SCHEME.

Justification for Term Loan:

Purpose: For Purchase of existing running unit from M/S H.R. Corporation (engaged in

Manufacturing of Industrial & Automotive Lubricant Oil) situated at Plot No. 52 & 57,

STICE, Musalgaon, Sinnar.

As per Agreement dated 23.07.2013, the Firm has purchased the above in a consideration of

Rs. 113.40 Lacs.

8/13/2019 Balaji Final 21.09.13

9/32

================================================================



(ii) Summary of Cost of Project and Means of Finance(Rs. in lacs)

Cost of Project Amount Means of Finance Amount

Factory L&B, Plant & Machinery and

Other Fixed Assets situated at Plot No.

52 & 57, STICE, Musalgaon, Sinnar.

Cost as per AgreementRs. 113.40 LacAdd: Stamp Duty - Rs. 4.53 Lac

Total Cost - Rs. 117.93 Lac

117.93 Promoters Margin-

a) Partners Capital

b) Unsecured Loan

73.00

25.00

Working Capital Margin 30.07 Term Loan from

Bank

50.00

TOTAL 148.00 TOTAL 148.00

Sources of Promoters Contribution and the time schedule as to when the funds will be

brought.

As against the projected promoters contribution of Rs. 98 Lacs ( capital Rs. 73 lacs and

unsecured Loan Rs. 25 lacs), as per the CA Certificate dated 18.09.2013 of M/s Nitin RSarda & Associates, Chartered Accountants, the Partners have inducted Rs. 108.02 Lacs

up-to 18.09.2013.

(iv) Status of tie-up of loans:

The Firm has requested for sanction of entire TL of Rs. 50 Lac to us on reimbursement basis.

It has been informed that looking to the best price offered by the sellers of unit and also the

schedule of payment as agreed at the time of negotiations, the firm has made full payment of

the said unit by raising short term funds by the partners from their own sources along with the

final lease deed in July 2013 through its Current Account with Bank of Baroda, Nasik Road,Branch. Accordingly, the Firm has requested to release the TL on reimbursement basis so that

the funds may be utilised towards WC Margin as per estimates and repayment of short term

loans raised for purchase of above unit.

Branch has recommended for the same. We may accede to the Firms request as recommended by

the Branch for disbursement of TL on reimbursement basis, subject to verification of supporting

Agreement and Certificates from C A for CAPEX incurred and promoters contribution raised.

(v) Brief explanation for each major individual item of cost of Project with present status along

with comments on the reasonableness/ competitiveness

Factory Land and Building: The firm has already acquired lease hold factory land and buildings

situated at Plot No.52&57, STICE, MUSALGAON, Sinnar Dist Nasik. The factory is situated in the

STICE Industrial area and all required infrastructure is available.

Plant and Machinery:

8/13/2019 Balaji Final 21.09.13

10/32

================================================================



The Firm has purchased a running unit, which was engaged in manufacturing of Industrial &

Automotive Lubricant Oil. All the requisite P&M and other Infrastructure is already available. As

per the Valuation Report of Mr. J C Mudkanna, our approved valuer, the following Machines were

available at factory site during his inspection:

Sr. No. Name of Machine Year of

installation

Quantity Market value.

1 Thermic Fluid Boiler FUELPAC make,Capacity 2 Lac Cal/Hr

1998 1 2.75

2 Blending Reactors-5000 litres capacity 1998 1 4.25

3 Blending Reactors-3000 litres capacity 1998 1 2.55

4 Finished product Tanks 4 Nos.2000 Litres

capacity each

1998 4 0.80

5 Electronic Weighing Scale 300 kg. max

capacity

1998 1 0.13

6 Air Compressor KAMDAR make with 5

cu.ft. capacity

1998 1 0.06

7 Pit Tanks in M.S 5000Litres Capacity 1998 1 0.208 Storage Tanks 50000 Litres Capacity 1998 1 3.00

9 Storage Tanks 25000 Litres Capacity-2

Nos

1998 2 3.00

10 Storage Tanks 14000 Litres Capacity-3

Nos

1998 3 2.52

11 Material conveyance system including

Pipings, Motors, valves, fittings, etd.

complete

1998 L.S 1.40

12 Laboratory Equipments Ovens Oil Bath

weighing scales etc.

1998 L.S 0.65

13 Cooling Tower 1998 1 0.13

The total Market value of Plant Machinery is Rs.21.43 Lacs. During the interaction with the partners

we have been informed that present working condition of the machinery is good.

Mr. J C Mudkanna, our approved valuer, has also submitted that the residual life of the Machineries

is 10 years. The valuer has informed that residual Lime of Thermic Fluid Boiler could not be

ascertained as it was not fired at the time of visit. In this regard, the Promoters have informed that it

is in working condition. However, in case of any eventuality it will be new Boiler from own sources.

The approx. Cost of the new boiler is Rs. 4.50 -5.00 lacs.

8/13/2019 Balaji Final 21.09.13

11/32

================================================================



vi) Comments on all major technical aspects like locational advantage, Technology/

manufacturing process, power, man power, utilities, transportation, etc.

Locational Advantage: Factory land and building is situated in STICE, MUSALGAON, and Sinnar

Dist Nasik. The Industrial Area is well connected with the Road and all necessary infrastructures are

available.

Electric Installation: The firm has 35 HP Power connections from MSEB CO. Ltd. The ConnectedLoad is sufficient for the unit.

Water: No major requirement of water for manufacturing purposes. Water is provided by STICE and

Water connection is available at site.

Manufacturing Process:

Manpower: Total requirement of Manpower is estimated a sunder:

Technical Head : 1

Supervisor : 1Worker : 3 / per shift

Office Staff : 2

Marketing Staff : 2

8/13/2019 Balaji Final 21.09.13

12/32

================================================================



The Promoters are in the line of business since long and having good knowledge. Further, the

Factory is situated in STICE, MUSALGAON, Sinnar where skilled / un-skilled work force is easily

available.

Transportation: The Unit is situated at Plot No.52 & 57, STICE Musalgaon, there transport is

available at feasible rate.

Product: The Firm has decided to manufacture following Products:

1) Engine Oil 5) Hydraulic Oil

2) Gear Oil 6) Industrial/Automotive Oil

3) Grease 7) Brake Oil

4) 2 T Oil 8) Cutting Oil

Marketing Feasibility:

Nasik District has seven MIDCS consisting of mainly Capital goods industries. So the overall

requirement of various types of Oils & Lubricants in industry in Nasik District is itself very huge.Again the Automobile & construction equipment market is also big, so the requirement of Oils &

Lubricants required in automobile sector is also good. So there is huge potential for the unit.

The Firm has submitted that it is the only authorized unit in Nasik & surrounding District having

requisite license to manufacture Oils & Lubricants. Since the family members and close relatives

of the Partners are already in line of manufacturing and Trading of Oil, they have established its

goodwill & reputation in the market on the strength quality & commitments. Thus there would

not be any difficulty for the firm for marketing the proposed product to be manufactured by the

unit.

vii) Summary of profitability and DSCR with comments thereon including assumptionsunderlying profitability projections:

Based on the profitability projections, DSCR is calculated by assuming that:

ROI @ 12.65% p.a. will be charged to TL A/C.

The total repayment period of Term is 84 Months including moratorium period of 6 month

from the date of First Disbursement.

(Rs. in Lacs)YEAR 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Total

PAT 33.99 40.38 47.51 55.29 64.22 74.59 85.86 401.84

INTT ON TL 6.04 5.04 4.04 3.04 2.04 1.04 0.15 21.40

DEPRECIATION 8.54 7.50 6.61 5.84 5.16 4.56 4.03 42.21TOTAL (A) 48.51 52.92 58.16 64.17 71.42 80.19 90.04 465.44

INTT ON TL 6.04 5.04 4.04 3.04 2.04 1.04 0.15 21.40

INSTALMENT OF TL 7.69 7.69 7.69 7.69 7.69 7.69 3.84 50.00

TOTAL (B) 13.73 12.73 11.73 10.73 9.73 8.73 4.00 71.40

DSCR(A/B) 3.53 4.16 4.96 5.98 7.34 9.18 22.51 6.52

AVERAGE DSCR. 6.52

8/13/2019 Balaji Final 21.09.13

13/32

================================================================



The minimum DSCR is 3.53 times as on 31-03-2014 and maximum DSCR is 22.51 times as

on 31-03-2021. The average DSCR works out to 6.52 times indicating that firm will be able to

service the proposed loan comfortably in normal circumstances.viii) Status of various statutory approvals and clearances:

The following approvals / permissions are required to carry out production activity:

Approval Authority Present Status

SSI Registration DIC Already obtained

Manufacturing Licence (Lubricants &

Grease)

DIC Already Obtained

Consent to Operate from MPCB MPCB Firm has submitted application

for the same and it is likely to

be received by 30.09.2013

ix) Present physical & financial status of project, if any

The Firm has already taken physical possession of the unit and General maintenancework on P&M is in progress to make the unit operational. The Promoters have informed

that the operation in the unit is likely to be commenced in October 2013.

As per the CA Certificate dated 18.09.2013 of M/s Nitin R Sarda & Associates, Chartered

Accountants, the Firm has so far incurred Expenditure of Rs. 118.25 lacs by way of

Partners Contribution of Rs. 108.02 Lacs and balance Rs. 10.23 is payable to M/s H.R.

Corporation

x) Implementation schedule: The Firm has already taken possession of the factory and Trial /

commercial Production is likely to be commenced from 1stweek of October, 2013

xi) Proposed repayment schedule

Scheduled date of Completion of Project 30t

September 2013

Commercial Operations Date (COD) 1stweek of October, 2013

Moratorium (in months) 6 month from date of 1st

Disbursement

No. of installments 78

Starting Date April 2014

End Date (Last installments) September 2020

Door to door tenor 84 months

The firm has requested to sanction term Loan of Rs. 50.00 Lacs for a period of 84- months

(moratorium of 6 months) comprising of 77 monthly instalments of Rs. 64,000/- each and Last

instalment of Rs.72,000/- commencing after 6 months from the date of First Disbursement (i.e.

from the end of 7th

month)

Monthly interest is to be recovered separately as and when applied in the account.

8/13/2019 Balaji Final 21.09.13

14/32

================================================================



Our Views / Comments:

The Promoters are having vast experience in the line of activity.

Mr. Prakash Somnath Boob Father Shri Mahesh Boob and Shri Umesh Boob,

promoters of the firm, is also Landlord of our Nasik Road Branch and the family is

having long relationship with our bank.

The estimated/projected cash accruals of the firm are sufficient to service the proposed term

loan of Rs.50.00 Lacs.

In view of the above, the project prima facie appears to be Technically Viable and

Economically Feasible under normal circumstances.

The Chief Manager, Nasik Road Branch has recommended for sanction of the Fresh Term

Loan.

Considering the satisfactory security coverage and DSCR, we may accede to firms request forsanction of Fresh TL of Rs. 50 Lacs on the terms and conditions mentioned in Annexure-D.

8.) Justification for Sanction of Fund Based Working Capital Limit of Rs. 100.00 Lacs:

As mention earlier, the firm has purchased the Plot No. 52 & 57, STICE, Musalgaon, Tal. Sinnar

Dist Nashik admeasuring 4000 sq.mtrs. along with factory Building and Plant and machinery.

The partners of the firm decided to manufacturing of Industrial & Automotive Lubricant Oil and

grease in newly purchased unit.

The Lubricant oil and Grease is required by almost all Industries for smooth running of Plant and

Machinery. It is also used in the Automobile & Construction equipment Market. The Demand for

the Lubricant oil has been increasing year on year basis due to its superior quality and competitive

prices.

M/s Balaji corporation assumes growth & prospects in the said business on the basis of vast

experience & reputations, business relations of it partners in the field of Lubricants Products .

The Commercial production of the Firm is expected to commence from Oct.2013. The Firm has

estimated / projected sales turnover of Rs. 250.00 Lacs during the First 6 month of FY 2013-14

and 550.00 during 2014-15 at 60% & 70% capacity utilization respectively and requested for

sanction of WC Limit of Rs. 100 Lacs.

The firm has decided to established dealership network; create brand & quality products,

established big markets to achieve its business goals.

The Market for the Oil product is generally is high between Oct. to June. The Raw Material cost

has related with the international Market and increased substantially in the last couple of years

8/13/2019 Balaji Final 21.09.13

15/32

================================================================



and also the inventories are required to be carried on almost for 60 days for meeting demand from

the customers/suppliers.

The firm has to extend credit to its customers for minimum 60 to 90 days.

The estimated / projected sales turnover appears to be achievable, as there is a good demand for

automotive lubricants oil and grease in Industries and Automotive companies. Hence, we may

accept the same for our assessment of working capital limits.

MPBF is calculated as per the 1stmethod of lending up as follows:

(Rs. in Lacs)

Assessment of Working Capital Mar-14 Mar-15Total Current Assets (i) 159.05 257.54

Less: Current Liabilities (other than bank borrowings) (ii) 16.28 79.96

Working Capital Gap (iii) 142.77 177.58

Actual/Projected bank borrowing (iv) 100.00 100.00

Total current liabilities ii + iv (v) 116.28 179.96

Actual / projected NWC iv - (vi) 42.77 77.58

25% of Working Capital Gap (vii) 35.69 44.39Item (iii)-(vii)= (viii) 107.08 133.19

Item (iii)-(vi)= (ix) 100.00 100.00

MPBF(viii OR ix whichever is lower) = (x) 100.00 100.00

Excess Borrowing, if any ------- -------

Assessment per Nayak Committee recommendations:

(Rs. in Lacs)

Particulars

Projected Projected

31.03.14 (6 months) 31.03.15

Projected sales 250.00 550.0025% of Projected sales 62.50 137.50

Margin 5% of projected sales 12.50 27.50

PBF:20% of projected Sales 50.00 110.00

It appears from the above that the Firm is eligible for working capital of limit Rs.100.00 Lacs as per

First method of lending based on projected sales turnover of Rs. 250.00 Lacs for 6 months as on 31-

03-2014 and Rs. 550.00 Lacs as on 31-03-2015 respectively. Whereas the Firm is eligible for

Working Capital Limits of Rs. 50.00 Lacs as on 31-03-2014 and Rs. 110.00 as on 31-032015 Lacs as

per Turnover Method of Nayak Committee.

As per revised SME guidelines in vogue, vide circular no. BCC: BR: 98:301 DT. 28.10.2006, theassessment of Working capital requirement for SME borrowers requiring funded credit facilities up to

5 crores is to be computed under First Method of Lending as propounded by Tandon Committee or

minimum of the 20% of the projected turnover ( Turnover method ) as recommended by Nayak

Committee, whichever is higher is to be made available.

8/13/2019 Balaji Final 21.09.13

16/32

================================================================



As this is SME unit, we have to make available the higher of the Working Capital Limit from the

above mentioned methods. Accordingly the Firm is eligible for Cash Credit (Stock and Book Debt

limit) of Rs. 100.00 Lacs as per First Method. The Firm has requested to sanction Working Capital

Limits of Rs. 100.00 Lacs. The Branch has recommended sanctioning the same. We endorse. The

working capital would be made available as per terms and conditions mentioned in Annexure-D.

Holding Level in Days:

Particulars Estimated 31.03.2014 Projected 31.03.2015

Inventory 50 72

Receivables 60 94

Sundry Creditors 7 65

Raw Material/ Inventory

The raw material required for manufacturing is Base oil & Additives, which is procure from local

refinery like BPCL / IPCL Mumbai. The Firm expected to start its commercial production from

Oct.2013 with capacity utilization 70%. Considering requirement of Raw material & wide fluctuation

in its prices and the transportation cost involved, the Firm has estimated/projected stock of raw

material/finished goods at 50/72 during in the year 2013-14/14-15 respectively. Looking to the nature

of industry, the firm has to maintain stock of raw material for continuous production as well finished

products to supply to the Industries. Hence the estimated & projected level of finished goods is

reasonable and may be accepted.

Receivables:

The firm supplied its finished products to various Industries and Traders all over the different part of

Maharashtra. Being a New entity, for promotion of sales and as per the market trend it has to extend

the credit to its customer and it will take about 60 days for realizing the sale proceeds. Therefore,receivables level estimated /projected at 60/95 days as on 31.03.2014/31-03-2015 onwards is

considered reasonable and may be accepted.

Creditors:

The raw material required for manufacturing is Base oil which will be procured from reputed

companies or locally, mainly from IPCL/BPCL. Again cash /credit. The Creditors level is estimated/

Projected at 7/65 days may be accepted.

RECOMMENDATIONS:-

All the partners in the unit are experienced in the line of business activity and carrying out the

business successfully for several years.

Credit rating based on Projected Balance Sheet of 31-03-2014 works out to MSMEBOB-3and

CR-3/which is satisfactory and Term loan is also covered under CGTMSE

8/13/2019 Balaji Final 21.09.13

17/32

================================================================



Requirement of the firm is need based and genuine. Requirement of credit facilities has been

assessed as per extant guidelines of the Bank.

Enquiries made revealed that all the parties are credit worthy.

Total security coverage is 1.67 times, which is satisfactory.

The partners are resourceful and dealing with our Nashik Road Branch from last 15yrs.

The Chief Manager, Nashik Road Branch has recommended for sanction of credit facilities.

In view of what is stated above, we endorse the recommendations of the Chief Manager, Nashik Road

Branch for sanction of credit limits as per details given under issues for consideration above, for a

period of 12 months on the terms and conditions as per Annexure-D.

However Branch to ensure / satisfy upon the following:

Branch to release the credit facilities only after compliance of all the terms and conditions ofsanction, procedural guidelines, vetting of documents from Empanelled advocate & rectification

of discrepancies pointed out, if any and after obtaining disbursement authority from the competent

authority.

Before disbursement, Branch to obtain all consents/permissions/clearances including Pollution

Control Certificate from MPCB.

Term loan may be disbursed on reimbursement basis subject to verification of supporting

Agreement and Certificates from CA for CAPEX incurred andpromoterscontribution raised.

The unsecured loan should be subordinated to Banks Loan and shall not be repaid without Bankswritten consent.

Branch to closely monitor the advance account of the Firm.

Branch to recover Unified Processing and upfront Documentation charges of Rs.95506/-

(including service Tax i.e.12.36%) (Rs. 85000/- + Service Tax Rs. 10506/-)

Branch to recover Rs.4214/- (Rs.3750/-+Service Tax Rs. 464/-) (including service tax i.e.12.36%)

as CIBIL charges.

DP to be worked out as per extant guidelines of the bank and against paid stocks and receivables.

Branch to carry out inspection of securities regularly as per extant guidelines of the Bank and

must verify Excise, VAT Returns of the Firm.

Branch to explore the possibility to cross-sell various products including third party products like

India First Life Insurance, Bancassurance from National Insurance Firm Ltd. (NICL), Baroda

Pioneer Mutual Funds, savings account of the employees, etc.

8/13/2019 Balaji Final 21.09.13

18/32

================================================================



Branch to ascertain sales performance of the firm periodically and monitor the account

effectively.

Branch to comply with Government of India guidelines with regard to compulsory registration of

mortgage created by way of deposit of title deeds with the Central Registry within 30 days from

date of creation of the mortgage (refer BCC circular no. BCC/BR/103/100 dated 27.04.2011)

Branch to carry out pre-disbursement inspection / visit to the collateral securities. Further

inspection of the securities is to be carried out periodically, as per terms of sanction and extant

guidelines of the Bank. Branch to satisfy upon that the properties are Marketable and free from

all encumbrances.

Bank reserves the right to accelerate repayment of term loan considering cash accruals of the

Firm.

Branch shall ensure compliance of KYC guidelines of the Bank.

Branch to ensure e-filing of our charge on the securities with concern Authority.

The Term Loan of Rs. 50.00 Lacs sanctioned above is covered under CGTMSE Scheme for MSE.

The firm to pay Guarantee fee for guarantee cover under CGTMSE.

Submitted for consideration

(Yeolakar S.G.)

Senior Manager (Credit)SME LF Nashik

Date: 21.09.2013

Place: Nashik

Comments of sanctioning authority:

(Anuj Bhargav)

Chief Manager

SMELF, Nashik.

Date: 21.09.2013

Place: Nashik

8/13/2019 Balaji Final 21.09.13

19/32

================================================================



BANK OF BARODA

SME LOAN FACTORY, NASHIK

LEGAL COMPLIANCE CERTIFICATE

Re.: BALAJI CORPORATION - Fresh Advance Proposal for sanction of credit facilities

aggregating Rs.150.00 Lacs

CERTIFIED THAT while exercising discretionary lending powers for sanction of the above credit

facility for the captioned account, all the relevant guidelines, regulations, rules and laws as applicable

and required to be kept in view, have been complied with and all the due diligence has been

undertaken.

Date :21.09.2013 (ANUJ BHARGAVA)

Place: Nasik CHIEF MANAGER

CERTIFIED THAT while processing the credit proposal for the captioned account, to be considered

by The Chief Manager, SME Loan Factory, Nashik all the relevant guidelines, regulations, rules and

laws as applicable and required to be kept in view, have been complied with and all the due diligence

has been undertaken.

( S.G. YEOLEKAR)

SENIOR MANAGER (CREDIT)

SME LF NASHIK

8/13/2019 Balaji Final 21.09.13

20/32

================================================================



SECTION II- FINANCIAL PARAMETERS AND ASSESSMENT

(Rs. in Lacs)Particulars Estimated Projected Projected Projected Projected Projected Projected ProjectedYear 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

A. Balance Sheet Data

Share Capital 73.00 73.00 73.00 73.00 73.00 73.00 73.00 73.00

Accumulated Profit and Loss 12.93 46.92 87.30 134.81 190.10 254.32 328.91 414.77Tangible Net worth (TNW) 85.93 119.92 160.30 207.81 263.10 327.32 401.91 487.77

Net Owned Funds (TNW-FIOB) 85.93 119.92 160.30 207.81 263.10 327.32 401.91 487.77

Adjusted Net worth 85.93 119.92 160.30 207.81 263.10 327.32 401.91 487.77

Term Liabilities (of which) 67.31 59.62 51.93 44.23 36.54 28.85 -- --

Term Loans (Excl. Instalment

payable within 1 year)

42.31 34.62 26.93 19.23 11.54 3.85 -- --

Unsecured loan from relatives 25.00 25.00 25.00 25.00 25.00 25.00

Capital Employed 53.24 179.54 212.23 252.04 299.64 356.17 401.91 487.77

Net Block 110.47 101.96 94.46 87.85 82.01 76.85 72.29 68.26

Current Assets (of which) 159.05 257.54 311.55 344.70 378.95 415.71 482.56 585.33

Inventories 69.13 108.78 113.10 125.85 138.25 152.03 167.34 184.13Debtors 83.33 141.43 190.14 209.31 230.37 253.31 304.11 362.51

Cash & Bank Balance 6.59 7.33 8.31 9.54 10.33 10.37 11.11 38.69

Current Liabilities (of which) 116.28 179.96 193.78 180.51 161.32 136.39 127.94 140.82

Creditors 8.59 72.27 86.09 72.82 53.63 28.70 24.10 40.82

Bank Borrowings 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

TL payable in one year 7.69 7.69 7.69 7.69 7.69 7.69 3.84 --------

Net Working Capital 42.77 77.58 117.77 164.19 17.63 279.32 354.62 444.51

Capital Deployed 153.24 179.54 212.23 252.04 299.64 356.17 426.91 512.77

B. Operational Data

Gross Sales 250.00 550.00 605.00 666.00 733.00 806.00 887.00 976.00

Net Sales 250.00 550.00 605.00 666.00 733.00 806.00 887.00 976.00

Cost of goods sold 204.54 448.52 491.51 539.42 592.24 649.97 714.17 784.85

Admn. & Selling Expenses 13.99 29.76 33.50 37.28 41.21 44.55 47.35 0.24

Depreciation 4.53 8.51 7.50 6.61 5.84 5.16 4.56 4.03

Interest 12.75 12.54 21.54 20.54 19.54 18.54 17.54 16.65

Profit Before Tax (PBT) 18.72 49.18 58.45 68.76 80.01 92.94 107.94 124.26

Tax provisions 5.79 15.19 18.07 21.25 24.72 28.72 33.35 38.40

Profit After Tax (PAT) 12.93 33.99 40.38 47.51 55.29 64.22 74.59 85.86

Cash accruals 17.46 42.50 47.88 54.12 61.13 69.38 79.15 89.89

Ratio Analysis:

Operating Profit margin 7.49% 8.94% 9.66% 10.32% 10.92% 11.53% 12.17% 12.73%PBT/NS (in %) 7.49% 8.94% 9.66% 10.32% 10.92% 11.53% 12.17% 12.73%

PAT/NS (in %) 5.17% 6.18% 6.67% 7.13% 7.54% 7.97% 8.41% 8.80%

Return on capital employed (in %) 13.33% 22.32% 21.55% 22.17% 22.86% 23.68% 23.44% 22.18%

Current Ratio (Cons. TL inst.) 1.37 1.43 1.61 1.91 2.35 3.05 3.77 4.16

Current Ratio (without

considering TL inst.)

1.46 1.49 1.67 1.99 2.47 3.23 3.89 4.16

DE Ratio (TTL/TNW) 0.49 0.29 0.17 0.09 0.04 0.01 0.00 0.00

8/13/2019 Balaji Final 21.09.13

21/32

================================================================



DE Ratio (TOL/TNW) 1.85 1.79 1.38 0.96 0.66 0.43 0.32 0.29

DE Ratio (TTL/TNW) considering

UL as quasi equity0.49 0.29 0.17 0.09 0.04 0.01 ---------- ---------

DE Ratio (TOL/TNW) considering

UL as quasi equity1.85 1.79 1.38 0.96 0.66 0.43 0.32 0.29

Inventory Holding level (days) 50 72 68 69 69 69 69 69

Receivables holding level (days) 60 94 115 115 115 115 125 136

Creditors holding level (days) 7 65 70 54 36 18 14 21

Whether Fund Flow Statement Submitted:

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Long Term Sources 157.77 42.50 47.88 54.12 61.13 69.38

Less: Long Term Uses 115.00 7.69 7.69 7.70 7.69 7.69

Surplus 42.77 34.81 40.19 46.42 53.44 61.69

Short Term Sources 116.28 63.68 13.82

Less: Short Term Uses 159.05 98.49 54.01 46.42 53.44 61.69

Shortfall (42.77) (34.81) (40.19) (46.42) (53.44) (61.69)

The projected fund flow statement indicates satisfactory financial position considering the

projected Balance Sheet during the currency of loan.

Comments on performance:

Sales /Receipts.

Year 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Estimated Projected Projected Projected Projected Projected

Capacity Utilisation 50% 70% 70% 80% 80% 80%

Sales 250.00 550.00 605.00 666.00 733.00 806.00

The partners of the firm have already in the line of trading in Furnace Oil, Light Diesel Oil since long

with satisfactory performance. As looking to the current market situation there is a good Market for

local manufacturing Lubricant Oil and Grease product in Maharashtra and partners has decided to

float new partnership firm. The commercial production is likely to commence from Oct.2013.

During the first year operation i.e. the firm has estimated / projected sales turnover of Rs. 250.00 Lacs

during 6 months for FY 2013-14 and.550.00 Lacs during 2014-15 based on capacity utilization at

50% / 70% respectively. The estimated/projected turnover appears to be reasonable and achievable

Net Profit:Year 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Estimated Projected Projected Projected Projected Projected

Capacity 50% 70% 70% 80% 80% 80%

Sales 250.00 550.00 605.00 666.00 733.00 806.00

Net profit 12.93 33.99 40.38 47.51 55.29 64.22

8/13/2019 Balaji Final 21.09.13

22/32

================================================================



The Firm has estimated / projected Net Profit after Tax of Rs. 12.93 Lacs / Rs. 33.99 Lacs based on

turnover of Rs. 250.00 / Rs. 550.00 Lacs on 31.03.2014 / 31-03-2015 respectively. In view of this

estimated/projected net profit appear to be achievable and hence may be accepted.

Movement of Net Worth(Rs. in lacs)

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Opening TNW ------- 85.93 119.92 160.30 207.81 263.10

Profit/Loss after Tax 12.93 33.99 40.38 47.51 55.29 64.22Increase in Share Capital 73.00 0.00 0.00 0.00 0.00 0.00

85.93 119.92 160.30 207.81 263.10 327.32

The Partners of the Firm have decided to plough back major share of profit in the business from the

first year of its operation itself. As a result estimated as well as projected net worth is showing

increasing trend. The same is satisfactory and acceptable to us.

Current Ratio:

ParametersEstimate Projected Projected Projected Projected Projected

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Current Ratio 1.37 1.43 1.61 1.91 2.35 3.05

Current Ratio excluding

TL Instalment

1.46 1.49 1.67 1.99 2.47 3.23

The Firm is a MSME manufacturing unit and the acceptable benchmark Current Ratio is 1.17.

However, the CR is estimated at 1.37 as on 31.03.2014. If we exclude the TL Instalments payable

within 1 year from the current liability, the current ratio of the Firm improves from 1.37 to 1.46 as on

31-03-2014.

Current Ratio of the Firm is estimated to improve to 1.43 as on 31.03.15. The Current Ratio as

estimated / projected is well above the bench mark level of 1.17 for SSI unit and which can be termedas satisfactory.

DE Ratio (TOL/TNW):

ParametersEstimate Projected Projected Projected Projected Projected

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

DER (TTL / TNW) 0.49 0.29 0.17 0.09 0.04 0.01

DER (TOL / TNW) 1.85 1.79 1.38 0.96 0.66 0.43

Quasi DER (TTL / TNW) 0.49 0.29 0.17 0.09 0.04 0.01

Quasi DER (TOL / TNW) 1.85 1.79 1.38 0.96 0.66 0.43

The Firm has estimated/projected to plough back of profit and introduction of capital in the business

from time to time during the currency of our loan. As a result, DER (TOL/TNW) is estimated

/projected at 1.85 & 1.79 as on 31.03.2014 and 31.03.2015 respectively and they are at satisfactory

level. The same trend is expected to continue during the currency of loan.

Other Information:

Comments on funds invested outside business-----NIL

8/13/2019 Balaji Final 21.09.13

23/32

================================================================



SECTION III- INDUSTRY PERCEPTION

INDUSTRIAL BUSINESS SCENARIO PERCEPTION:

PRESENT SCENERIO

India is the 6thlargest lubricant market in the world, with a consumption of around 1.12 million KL(an effective market size of Rs. 55-60 bn) as against an installed capacity of 1.6 million KL and has

grown at a CAGR of around 7.0%.The lubricant industry in India can be broadly classified into two

segments-Automotive Lubricants, with automotive lubricants accounting for over 60% of the total

lubricant market.

The automobile lubricant market has grown at around 4% from 1993-94, with the commercial vehicle

segment accounting for about 70% of the total consumption of automotive lubricants. Indias per

capita consumption of automotive lubricants is low at around 1 kg per annum on account of the low

penetration of automobile in the country.

India has the second largest railway network, fifth largest mining industry and is the twelfth mostindustrialized nation in the world.

There has been a shift in the customer preference in buying lubricants. Brand name, price,

accessibility and services offered are becoming the deciding factors for choosing between brands.

Thus, the strategy in the Indian automotive segment has progressively been shifting from the sales

push, commodity type marketing strategy to a brand pull, fast moving consumer good (FMCG)

product type of marketing strategy. This is especially in case of the Bazaar trade, which currently

accounts for around 40% of the sales of the sales of the automotive lubricants in India.

RETAIL LUBE MARKET

RETAIL LUBE MARKET is of 0.7 MILLION TONS

95%-AUTOMOTIVE LUBRICANT

MARKET VALUE OF RS.4000 CRORE

Recent Trends

Increasing Industry Competition:

In 1993, the Government liberalised the lubricants sector and announced a number of regulatory

changes. These included

Entry of foreign companies into the Indian market.

Decanalisation of imports of base oil.

Decontrol of pricing of base oil.

Reduction in customs duty on base oils(progressively reduced from a peak of 85% to the

current level of 25 %)

8/13/2019 Balaji Final 21.09.13

24/32

================================================================



The deregulation of the lubricant industry has had a severe impact on the structure of the Indian

lubricant market. Lubricants have the highest margin among refined petroleum products. Companies

earn 20-30 times more from selling lubricants than other petroleum products. Such a lucrative

business encouraged foreign majors like Shell, Exxon, Mobil, Caltex, Elf etc., to enter the Indian

market. The change in the market share has been predominantly on account of rapid development in

technology, marketing and distribution strategies of companies.

STRENGTH, WEAKNESS, OPPORTUNITY & THREATS (SWOT):

STRENGTH:

Huge experience in the same field.

Having engine oil standards.

Using one-solution software to handle stock, accounting and sale.

Availability of ADDETIVE from outside of the country.

Experienced staff in production.

Having equipped labs.

WEAKNESS:

Domination Low-profit Wholesales instead of high-profit retail sales.

Price fluctuation of Raw Material.

Lack of specific system for providing used oil. (Problem in supply chain).

Lack of obtaining and receiving regular reports.

Weak motivation system.

OPPORTUNITY:

Possibility of purchasing new machines to eliminate the last production step.

Possibility of internal market expansion.

Lack of government participation in this industry.

Existence of management consulting items. No local manufacturing competition in Nashik District.

THREAT:

Lack of commitment from suppliers to supply raw materials.(supply chain problem).

Lack of satisfying market demands based on effective product varieties.

Lack of a good reputation of products brand in market.

Reduction in raw material due to removal of subsidies.

8/13/2019 Balaji Final 21.09.13

25/32

================================================================



Terms & Conditions ANNEXURE-D

A/c Balaji Corporation, Nashik Road Branch, Aurangabad Region

1) Nature of Facility Term Loan ( Under CGTMSE SCHEME)

Limit Existing Proposed

-- Rs.50.00 LacsPurpose FOR PURCHASE OF FACTORY LAND AND BUILDINGS/ P&M and

OTHER MFA.

Margin 57.60% towards Capital Expenditure.

Project Margin - 66.22%

Rate of Interest @2.25% above Base Rate plus 0.15% tenor period i.e.12.65% p. a. at

present at monthly rests, for CR-3 rated Small Eenterprises account.

The rate of interest is subject to change from time to time as per Banks

guidelines, change in Base Rate and credit rating of the account.

Prepayment charges 0.50% p.a. of the amount prepaid for the prepayment period with cap of

2.00%. The loan period out of cash generation from the operations fromthe operations of the Firm will not be considered as a prepayment.

Unified Processing &

upfront documentation

charges

1.00% + Service Tax(12.36%), to be recovered on acceptance of terms &

conditions of the sanction

Period 84 Months including-6- months moratorium, subject to annual review.

Repayment Schedule The Term Loan is to be repaid in 77 monthly instalments of Rs. 64000/-

each and Last instalment of Rs. 72000/- commencing after 6 months from

the date of First Disbursement (i.e. from the end of 7th

month)

The monthly interest charged in the account, during the moratorium andrepayment period, will be serviced separately.

Security / Documents Jt. and several D. P. Note to be executed by the firm and its partners

(LDOC 4)

Letter of Partnership.

Letter of instalments with acceleration clause. (LDOC-57)

Composite undertaking-cum-Declaration. (LDOC 134, 136 & 136A)

Exclusive 1stcharge by way of Equitable Mortgage of Lease hold Land

& Building admeasuring 4000 sq.mt and Factory building admeasuring

603.05 sq.mt located at Plot no.52 & 57, STICE Musalgaon, Taluka

Sinner, Dist- Nashik belonging to in the name of Firm.

Exclusive 1stcharge by way of Hypothecation of entire Machineries,

electrical installations, furniture & fixtures, office equipments and

other movable fixed assets of the Firm, situated at the above mentioned

Factories, present & future. (LDOC-17-B).

General Form of Guarantee signed by all the partners of the firm along

with personal guarantee of Mr. Pradeep Boob, Mr.Mahesh Boob and

Mr. Umesh Boob.

8/13/2019 Balaji Final 21.09.13

26/32

================================================================



The TL will be covered under CGTMSE Scheme.

Other securities as per details given under common securities below.

Disbursement 1. The disbursement by way of reimbursement towards capital

expenditure already incurred may be allowed, after maintaining

stipulated margin, supported by certificate of practicing C.A. in having

incurred the capex.

2. The Branch is to obtain Title Clearance Report from Banks approved

advocate and to ensure that the title of the above mentioned property isclear, marketable & unencumbered. The report should list the title

deeds required to be deposited for creation of mortgage.

3. The Branch is to arrange to obtain permission from the lessor for

creation / extension of Equitable Mortgages of all leased hold plots, for

the total sanctioned exposure to the Firm.

4. The Branch is to ensure that the entire project is implemented in time

as scheduled. In case of time over run or cost over run, the matter is to

be appraised to the sanctioning authority in time with remedial

measures.

2) Nature of Facility Cash Credit (Hypo. Of Stocks / Book Debts)

Limit Existing Proposed

---- Rs.100.00 Lacs

Purpose For pre-sale & post sale working capital requirement of the firm

Margin 25% for RM, SIP, FG, Stores & Spares and Packing Materials & for Book-

debts up to 90 days.

Rate of Interest @2.25% above Base Rate i.e.12.50% p. a. at present at monthly rests, for

CR-3 rated Small Eenterprise account.

The rate of interest is subject to change from time to time as per Banks

guidelines, change in Base Rate and credit rating of the account.

Unified Processing &

upfront documentation

charges

Processing charges of 0.35% + Service tax(12.36%), to be recovered on

acceptance of terms & conditions of the sanction

Period -12- months

Security / Documents 1. Joint & several D. P. Note executed by the firm & its partners.

(LDOC-4)

2. Letter of Partnership.

3. Letter of Continuing Security. (LDOC-7)

4. Exclusive 1stcharge by way of Hypothecation of entire raw materials,

stock-in-process, stores & spares, packing materials, finished goods

and Book-debts of the Firm, both present & future. (LDOC-17-B)5. Irrevocable Power of Attorney for Book-debts (LDOC-86) duly

notarized.

6. Book-Debt Undertaking (LDOC-51).

7. Composite undertaking cum declaration duly stamped. (LDOC 134,

136 & 136A).

8. LDOC-64 for Subordination of Unsecured Loans.

9. General Form of Guarantee signed by all the partners of the firm along

8/13/2019 Balaji Final 21.09.13

27/32

================================================================



with personal guarantee of Mr. Pradeep Boob, Mr.Mahesh Boob and

Mr. Umesh Boob.

10.Other securities as per details given under common securities below.

Provision. The Firm is to submit monthly Stock & Book-debt statements before

10th

of the next month in Banks prescribed format. The Firm is also to

submit certified Book debts statement by practicing C.A. or regular

Auditor of the Firm, once in every quarter, certifying age & amount of

the book-debts, within 15 days of close of each quarter.Although all Stocks and Book Debts are to be hypothecated to Bank,

the drawings in the account are to be allowed on the basis of value of

paid stocks only (cost or market price, whichever is lower) and Book

Debts not older than 90 days and book-debts other than those of its

associates.

The advance payments received from the customers are also to be

shown separately and to be subtracted while calculating the drawing

power.

The Book-debts for which Bills are purchased / discounted are to be

subtracted while calculating the drawing power.

Disbursement C.C. limit is to be released strictly based on:

1. Availability of the Drawing Power.

2. Matching with the estimated/projected sales performance.

3. Matching with the raising of working capital margin by the Firm by

way of internal cash accruals and/or capital & unsecured loans.

COMMON SECURITIES:

All the credit facilities to be secured by first charge on the Current Assets and Fixed Assets of

the firm and personal guarantee as under:

A. Primary Security

1 Exclusive 1stcharge by way of Hypothecation of entire raw Materials, Stock-in-process, Stores

& Spares, Packing Materials, Finished Goods and Book-Debts of the firm both present &

future.2 Exclusive 1

stcharge by way of hypothecation of Plant and Machinery of the Firm both present

& Future.3 Exclusive 1

st charge by way of Equitable Mortgage of Lease hold Land & Building

admeasuring 4000 sq.mt and Factory building admeasuring 603.05 sq.mt located at Plot no.52

& 57, STICE Musalgaon, Taluka Sinner, Dist- Nashik in the name of Firm through its Partners

Mr. Pradeep Kishanlal Boob; Mr. Mahesh Prakash Boob and Mr. Umesh Prakash Boob.4 The TL of Rs. 50 Lac will be covered under CGTMSE Scheme.

5 The credit facilities will also secured by the personal guarantee of all the Partners of Firm viz.

Mr. Mahesh Prakash Boob; Mr. Umesh Prakash Boob and Mr. Pradeep Kisanlal Boob.

8/13/2019 Balaji Final 21.09.13

28/32

================================================================



OTHER TERMS AND CONDITIONS:

1. The sanctioned / increased credit facilities will be disbursed only after execution of stipulated

security documents and compliance of various terms & conditions of the sanction to the Bank's

satisfaction.

2. The Firm and its Partners are to undertake that during the currency of our advance, they will:

Deal exclusively with us, route all their transactions through their Cash Credit account, will

not open any Current Account with other Bank/s without permission of the Bank in writing

and close the Current Account/s maintained with other bank/s & furnish account closure

certificate/s to the Branch.

Increase & maintain Capital at estimated level, to meet with the Term Loan/Working Capital

margin, as estimated/ projected.

Increase and Maintain Interest Free Unsecured Loans from Partners & Associates, to meet

with Term Loan/Working Capital margin, as estimated/projected. Subordinate Unsecured

Loans to the Banks borrowings.

Bring additional long term funds to meet with the cost over run/time over run, if any.

Bring additional long term funds to meet with the repayment obligations of the Bank in time,if there is negative cash profit or positive cash profit is not adequate to service repayment

obligations of the Bank.

Bring additional long term funds to meet with estimated/projected Net Working Capital, in

case estimated/projected net profit is not achieved.

Maintain Current Ratio, as estimated/ projected. Maintain Debt Equity Ratio (TOL/TNW), as estimated/projected.

3. The Firm and its Partners are to undertake that during the currency of our advance, they will not,

without the permission of the Bank in writing:

Implement any scheme of Expansion / Modernization / Diversification, except which are

approved by our Bank. Formulate any scheme of Merger / Acquisition / Amalgamation / Reconstitution.

Any Change in the management set-up / capital structure of the Firm. Enter in to borrowing either secured or unsecured with any other Bank / Financial institution /

Corporate body.

Invest / deposit / lend funds to group firm & companies / directors / family members / other

corporate bodies / firms / persons.

Create any further charge, lien or encumbrances over the assets charged to the Bank in favour

of any other Bank, Financial institution, NBFC, firm, company or person or otherwise dispose

off any of the fixed assets.

Undertake guarantee obligation on behalf of any other borrower, Group firms / Companies. Pay commission / brokerage / fees etc to Guarantor / or any other person for guaranteeing the

facilities sanctioned to the Firm.

Declare dividends for any year, except out of the profits related to that year, after paying all

due and making provisions as required for that year, provided there is no default in repayment

obligation by the Firm.

Allow the level of net working Capital to come down from the estimated / projected level.

8/13/2019 Balaji Final 21.09.13

29/32

================================================================



4. The Firm is to obtain Pollution Control Certificate from Maharashtra Pollution Control Board

(MPCB) and submit copy of the same to the Branch before release of the Credit Facilities.

5. The Branch is to recover Unified processing and upfront documentation charges and inspection

charges at the sanctioned rate or rates prescribed by the Bank from time to time.

6. The proper books of accounts, stock register and records of machineries are to be maintained as

per the Banks requirements and to be made available to the Bank officials / representative during

inspection.7. The securities charged to the Bank are to be inspected on bi-monthly / quarterly / half yearly

intervals, as per Banks guidelines. Inspection charges for periodical verification of stocks /

Machinery / securities are to be borne by the Firm.

8. The Bank will have the right to examine the books of accounts and carry out inspection or

valuation of assets of the Firm, which are charged to the Bank, from time to time by Banks

official / technical experts / external agencies / C.A. firms / management consultants and / or

valuers. The inspection / valuation charges so incurred will be borne by the Firm.

9. Banks nameplate for lien will be displayed prominently at the place of each unit, office, on

hypothecated Machineries and also at the place of storage of hypothecated goods.

10. All money advanced or to be advanced by the Bank will be utilized exclusively for the purpose set

forth in application / project report submitted to the Bank. In case the advance is utilized or

attempted to be utilized for any other purpose or if the Bank apprehends or has reasons to believe

that the said loan is being utilized for any other purpose, the Bank shall have the right to recall the

entire or any part of the loan / advance forthwith without assigning any reason thereof.

11. The Firm is to obtain comprehensive insurance policy covering insurance of various factory

buildings, Plant & Machineries, electric installations, furniture & fixtures, vehicles, computers,

equipments, stock of raw materials, work-in-progress, finished goods, residential bungalow, etc

charged to the to Bank incorporating Bank clause. Insurance policy should cover stocks lying at

different places and should cover all risks including earthquake. The Firm is to cover the same as

far as possible under BANCASSURANCE Scheme. The insurance policy to be submitted to the

Bank.

12. Valuation Reports in respect of the Factory Land & Building, other immovables charged to the

Bank and Machineries should be obtained from the Banks approved Architect Engineer / Valuer

once in every -3- years as per Banks norms, the fees for which are to be borne by the Firm. The

Firm is to submit list of Machineries and other movable fixed assets once in a year to the Branch.

13. The Firm is to submit Statements under the Quarterly Monitoring Report System (QMR) /

Quarterly Information System (QIS) within the time stipulated by Bank as follows:

QIS-I : before commencement of the quarter

QIS-II : within 6 weeks from the end of the quarterQIS-III: within 8 weeks from the end of the half year (March & Sept)

14. The Firm is to obtain and continue to obtain / renew various licenses / permissions / sanctions etc

from various Government Department from time to time and copy of the same should be given to

the Bank.

8/13/2019 Balaji Final 21.09.13

30/32

================================================================



15. The facilities are sanctioned for a period of -12- months. The renewal of facilities will be subject

to satisfactory conduct and performance for which the renewal papers i.e. latest audited /

provisional financials, CMA, income-tax returns, etc. should be submitted before -3- months of

the due-date of the review or -6- months from the date of close of financial year of the Firm,

whichever is earlier, failing which penal interest will be charged as per Bank's guidelines.

16. The Branch is to obtain audited financials of the Firm at the earliest (irrespective of due date of

reviewal of facilities), peruse the performance & financials compared to estimate / projection

furnished by the Firm while sanctioning / reviewing the credit facilities and place their views on

key financial parameters before the sanctioning authority along with required remedial measures,

if any.

17. In case of any default in the repayment of the loan or interest, the Bank and / or RBI will have an

unqualified right to disclose or publish the name of the Firm / Partners / guarantors as defaulter in

such manner and in such medium as the Bank or the RBI in their absolute discretion may think fit.

18. The Firm and its Partners / Guarantors will submit a declaration that none of them is related to any

director of our Bank / any other Banking Company or to any staff of our Bank.

19. The Firm would keep the Bank informed of the happening of the event that is likely to have

substantial effect on the profit / business or circumstance adversely affecting its financial position.

20. The Firm will use our e-banking facilities for its entire financial requirements.

21. Penal interest will be charged, @ 1.00% - 2.00% p.a., as per Banks norms, for the following

irregularities:

Non / Delayed payment of instalment and / or interest and / or excess over the limit.

Non / Delayed submission of monthly stock & book-debt statement and / or quarterly certified

Book-Debt statement.

Non / Delayed submission of provisional / audited financials, CMA, I. T. returns, etc for

reviewal of the facilities.

Non / Delayed submission of QIS statement.

Non / Delayed payment of invoked guarantee / devolved L/C.

In the event of any breach / non-compliance of any major terms and condition of the sanction

(at the discretion of the Bank)

Non compliance of any financial convent undertaken by the Firm.

22. The Branch is to ensure that all the terms and conditions of the sanction are complied with in

letter & spirit and the observations made by the higher authorities during processing of the

proposal and conveyed to the Branch vide separate letter and / or as mentioned in the appraisal

note are taken care of during documentation / disbursement / post disbursement supervision and

follow up at monitoring stages.

23. The advance made available under the above mentioned facilities are repayable on demand andthe terms & conditions of these facilities granted, at the discretion of the Bank, are subject to

change from time to time without any prior notice. The Bank reserves the right to withdraw,

modify or amend the terms & conditions of advance and Bank would not bound to disburse full

amount of advance in the event of any failure on the part of the Firm in satisfying any of the

stipulated terms & conditions.

8/13/2019 Balaji Final 21.09.13

31/32

================================================================



24. The Bank reserves the right to discontinue the credit facilities / advance / loans and/or to withhold

/ stop any disbursement/s without assigning any reasons / giving any notice, in case of non-

compliance / breach of any of the terms & conditions stipulated therein and from time to time as

also in the relevant document or any information / particulars furnished to us found to have

incorrect or in case of any development or situations wherein, in the opinion of the Bank, its

interest will be/is likely to be prejudicially affected by such continuation or disbursement.

25. The rate of interest, margin and other charges will be subject to change as per RBIs directive /

Banks Policy from time to time.

26. The stipulated rate of interest is subject to Internal Credit Rating (CRISIL RAM Module at

present) prepared by the Branch and to be vetted by the sanctioning authority. The rate of interest

is subject to change from time to time based on audited financials as on 31stMarch of each year,

which is to be submitted before 31st October of each year for carrying out credit rating and

deciding rate of interest to be charged in the account for the next year effective from 1stOctober

for the respective year (irrespective of due date of reviewal of facilities). In case of any delay in

submission of audited financials, Bank reserves the right to charge rate of interest with maximum

spread along with penal interest for delay in submission of B/s.

27. The Branch is to endeavour to cross sell Third Party Products to the Partner of the Firm, its

Associates, their employees and canvass salary accounts of the employees of the Firm.

28. The sanction is valid for 6 months from the date of sanction.

Additional Stipulations:

Firm to pay Unified Processing and upfront Documentation charges of Rs. 95506/- (For Cash

Credit Rs. 35000/- + TL Rs. 50000/- =Rs. 85000/- + Service Tax Rs. 10506/-) and CIBIL charges

of Rs. 4214/- (Rs. 3750/-+ Service Tax 464/-)

DP will be worked out as per extant guidelines of the bank and against paid stocks and

receivables.

Bank reserves the right to accelerate repayment of term loan considering cash accruals of the

Firm.

The Term Loan of Rs. 50.00 Lacs sanctioned above is covered under CGTMSE Scheme for MSE.

The firm to pay Guarantee fee for guarantee cover under CGTMSE.

Firm shall submit Consent to Operate from MPCB before release of the Credit Facilities.

8/13/2019 Balaji Final 21.09.13

32/32

Enclosure to Circular no BCC: BR: 101:24 dated 23.01.2009

ASCROM DATA INPUT SHEET

(For Critical Fields Only)

Zone Name Maharashtra & Goa

Region Name Aurangabad

Branch Pimpalgaon Bahula

Borrower Name Balaji Corporation

Borrower ASCROM Id (To befilled in after opening of

account)

Name of Field ASCROM Code Description

1 Constitution 38 PARTNERSHIP CONCERN ( MALE)

2 Occupation 705 Manufacturer

3 Religion N A

4 Special Category N A

5 Sector 15 SSI (ME)

6 Scheme 999 Bank other scheme

7 Activity 7499 OTHER PETROLEUM PRODUCTS.

8 Sanctioning Authority 92 SME Head9 Turnover Amt in Rs (Projected

Turnover for assessing Credit

Limit)

************* 2013-14- Rs. 250.00 Lakhs (For 6 months)

10 Business Segment (As per our

Bank's internal segmentation)

160 Small Enterprises-(SME Regulatory)

11 Last Three Year Sales (Amt in

Lacs)

************* 2010-11 2011-12 2012-13

N.A N.A N.A

12 Investment in Plant and

Machinery /Equipment (In case

of Manufacturing / Service

units)

Rs.21.43 Lacs (As per Sale Deed dt.23.07.2013)

13 Credit Rating /Credit Score ************* MSMEBOB-3 and CR-3 based on Projected B/S as on

31.03.2014

14 External Credit Rating ************* Not Applicable, as the proposed exposure is below Rs.

5 crores.

15 Repayment mode 1 Monthly

16 Security 1 HYPO. OF STOCK AND BOOK DEBTS Rs.133.00

Lacs as on 31.03.2013

2 HYPO. OF PLANT & MACHINERY Rs. 21.43 Lacs

3 EQUITABLE MORTGAGE OF LEASE HOLD LAND

& BUILDING Rs.117.30

Place: NASIK

Recommending Officer Sanctioning Authority

Date: 21.09.2013