proposal format- common
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THEFEDERAL BANK SME & Agri Business Dept LIMITED Regd. Office: Aluva, Kerala.
SMEABD/S -27 / L / /10 Date:
1 Date on which the proposal/request was received from the Branch2 Date on which queries were raised to RO/Branch3 Date of receipt of reply (Final)4 Date of receipt of RO recommendation5 Date of placing the appraisal note
SUBMITTED TO GENERAL MANAGER (CREDIT)
PROPOSAL FOR CREDIT FACILITIES (ADDITIONAL LIMIT)
Branch: Rating : Previous rating Region:
1. SECTOR/GROUP DETAILS OF BORROWER(Amount in Rs. In lakhs)
1.1 Applicant/Borrower 1.1.1 Group: --1.1.2 Group exposure:--1.1.3 Sector/Subsector: Code:1.1.4 Sector exposure (including theabove)1.1.5 Exposure limit1.1.6 Exposure as % of net worth:
Present proposal in brief:
2 BORROWER PROFILE:
2.1.1 Name
2.1.2 Address FactoryOffice.
2.1.3 Constitution2.1.4 Business / Activity2.1.5 Category/sector)
2.1.6 Priority/ Non priority2.1.7 Date of incorporation2.1.8 Advances since Current a/c since:2.1.9 Credit rating and pricing
Present Proposeda.Internalb.Pricing as per rating
External2.1.8 Asset classification2.1.10 Banking arrangement
a. Sole
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b.. Consortium Leader &Share(%)
Ourshare (%)
OtherBanksshare(%)
c. MultipleBanking
MainBanker &Share(%)
Ourshare (%)
OtherBanksshare(%)
2.2 Management2.2.1 Name of the promoters2.2.2 Share holding pattern
Major shareholders % of shareholdingiiiiii
2.2.3 Whether listed2.2.4 Stock market data (if listed)
i)Year low/high pricePresent/recent market quotationBook-value of shares
Rs.Rs.Rs.
2.2.5 Name of proprietor/Partners/Directors/TrusteesName Passp
ortNo.
Age Other directorships.Mention if NomineeDirector
Shareholding
ChairmanC E O
2.2.6 Comments on the quality and competence ofCEO.
2.2.7 Track record of the management2.2.8 Details of pending litigation against the borrower /
directors / promoters, if any.2.2.9 Relationship of the borrower, if any with the
Directors and employees of the Bank/Directors ofother Bank.
2.2.10 Any interest of Directors of the Bank in theborrower
2.2.11 Any interest of Directors of the other Banks in theborrower.
3 CURRENT PROPOSAL:
3.1 Existing /proposed credit facilities from the bank
3.1.1 Facilities
Existing Limits Proposed Limits Existing Proposed
Nature Amount
Balance
Over-dues/Arrears
Inc.(+) /Dec.(-) inlimits
Totalincluding theexisting
Int/Commn
Period Int/Commn
Period
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FUNDED
TOTAL
NON FUNDED
TOTAL
GT
#Note: Qualify whether New, Renewal with enhancement, Renewal, Adhoc only etc.Date of last sanction: Authority: Date of disb.: Date of latest review
3.1.2.Brief on the existing facilities
3. 2.2 Pricing analysisExisting Proposed
Funded Rate of Interest
Pricing asper rating
Rate ofInterest
Pricing asper rating
Remarks
Term LoanWorking capitalNon fundedLCStandby LCBG
Processing feeFront end fee
Commitment fee
PrepaymentchargesAny other feeincluding fee fromthird party products3.2.3 Securities
Description Value as on
Present ProposedPrimary
Collateral
Additional
Others
Residual value to be furnished in respect of securities charged to any other facility
3.2.4. Comments on security/ Security Analysis/ Asset Coverage Ratio
Requirement of collateral security as per margin normsNature of limit Margin to be
maintained %
Limit/
Bal.
Collateral
required
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3.2.5. Guarantees/ co obligancy available or offered:(1) (2) (3) (4)
a. Name of guarantor/ co obligantsb. Constitutionc. Net worth/Means as ond. Basis of assessing net worth
Furnish whether Certificate of Branch Manager as to verification of the facts ascertaining networthavailable.
3.3. Conduct / value of the account
3.3.1. Unit visit/stock inspection report and findings there of.3.3.2. Conduct of the account (Comments)
(Rs in lakhs)3.3.2. Utilisation of: Previous year Current year
Amount % Amount %a. Funded facilities (Average Debit
Balance)b. Non-funded facilitiesc. Cr. Summation in operative accounts xxxx xxxxd. Dr. summation in operative accounts xxxx xxxxe. Highest debit balance Xxxx Xxxx
f. Lowest debit balance xxxx xxxxe. PCLs disbursed xxxx xxxxg. Bills purchased / discounted xxxx xxxxh. LCs openedi. Guarantees issued
3.3.3. Earnings: Previous year Current year
a. Interest
b. Other income (including third partyproducts)
c. Totald. Yield on exposure (%)3.3.4 Ancillary business / business through connections of the borrower:
No. & averagebal. of last 6mths of SB a/c
No. & av bal. oflast 6 mths of CDa/c
Amount of fixeddeposit
No. & amount of life and nonlife insurance policies sold
Gold coinssold in grams
No. & amount ofthird party productssold.
Any other ancillary benefits obtained
3.4. Outstanding inspection irregularities as on :
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i. RBI
ii. Statutory
iii. RBIA
Iv. Concurrent
v. Credit Audit
4 CREDIT FACILITIES FROM BANKS / INSTITUTIONS: (including our Bank)
4. 1. Term Loans:
4.1.2 Existing(Rs in lakhs)
Lender Amount Interest
Period Balance Over-dues
Security
Total
4.1.3 Proposed(Rs in lakhs)
Lender Amount Interest Period SecurityProposed
Total
4. 2. Working capital :
a. Whether consortiumb. Name of leader bank, branch/ officec. Credit facilities enjoyedNo Lender Existing Proposed Sharing pattern (%)
Existing Proposed
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Funded
Non-funde
d
Funded
Non-funde
d
Funded
Non-funde
d
Funded
Non-funded
TOTAL
4. 3 Total credit limits enjoyed from all a. Funded Rs.
b. Non-funded Rs.
5 INDUSTRY SCENARIO (Not more than 2 pages. The write up may contain the marketsize, market share of major players, demand, supply, profitability, competition, governmentalpolicies, prospects etc).
6 BUSINESS ENVIRONMENT (Not more than 2 pages)
Business descriptionOperating strategyBorrower competitive positionManagement
6. 1. Physical performance:
a. Production:
Year I Year II Year III
Qty Value Qty Value Qty ValueProductsInstalled capacity
Capacity utilisationb. Sales :
7 FINANCIAL PERFORMANCE PAST AND PROSPECTIVE
7.1 Balance sheet (Two year audited, current year estimates and following yearprojections)
Year / period ending
Audited Audited Estimates ProjectionsLiabilities 1 2 3
Net worthEquity
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Surplus in profit and loss accountLess Intangible assets /
revaluation reserves etc.Sub-total
Term liabilitiesTerm loansDeferred tax liabilityUnsecured loans
Sub-totalCurrent liabilitiesShort term bank borrowingsSundry creditorsInstalments of term loansrepayable in 12 monthsProvisionsOther current liabilities
Sub-total
Grand total
Year / period ending
Audited Audited Estimates Projections
AssetsFixed assets
Gross blockDepreciation
Net blockOther non-current assetsInvestments in - associates
- OthersLoans and advances - Associates
- OthersSub-total
Current assetsCash and bankFixed deposits with BanksReceivables
InventoriesOther current assets
Sub- totalGrand total
7.2 Financial indicators and key ratios (Two year audited, current year estimatesand following year projections. Please refer Annexure II and III for detailed profitand loss account and balance sheet)
As at / For year to Audite
dAudited Budget
EstimatesProjections
Total operating income(TOI)/ salesPBIDT
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InterestDepreciationOperating profitNon- op. IncomeProfit before tax (PBT)Profit after tax (PAT)Cash accrualsDividendPaid-up capital (Equity)Tangible net worth (TNW)Exposure in subsidiaries /group companies
* Investments* Loans & Advances
Adjusted TNW (ATNW)Net working capitalGrowth in sales (%)
Growth in PAT (%)PBIDT/Sales (%)PAT/Sales (%)Debt/TNW (Times)
As at / For year to Audite
dBudget
Audited
EstimatesProjections
Debt/ATNWTotal liabilities / TNW(Times)Total liabilities / ATNW
(Times)Total debt / Net cashaccrualsCurrent ratio (Times)ROCE (%)Interest cover (Times)
7. 3. Comments on Financial Position:
7.3.1 Turnover :
7.3.2 Profitability :
7.3.3 Liquidity :
7.3.4 Leverages (DER and TOL/TNW) :
7.3.5 Non-current Assets :
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7.3.6 Contingent liabilities :
7.3.7 Debt-Servicing Capacity :
7. 4. Related party transactions
As at / for years ended
7. 5. Performance in the current year(Previous four quarters)
For the quarters ended I
(Date)II
(Date)III
(Date)IV
(Date)Total operating income
(TOI)PBIDTPBTPATPBIDT/Net sales%PAT/Sales %Net cash accruals
7. 6. Borrower's auditors, their significant comments on the recent financialStatements:
7. 7. Statutory Dues (IT, WT,ST, Excise Duty, PF, ESI, Others)
8. DETERMINATION OF THE LIMITS:
8. 1. Term loans: (Brief description of the project)
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8.1.1. Cost of the project and means of financeDescription Rs. in lakhs
Land and site developmentBuildings and other civil works
Plant and machineryUtilities
Misc. fixed assetsPreliminary expenses
Pre-operative expensesContingencies
Margin on working capitalTotal
Means of financeTerm loan
Promoters contribution Equity-Preference shares
Subordinate debt Total
8. 1. 2. Land and site development (Brief discussions about the land, cost etc.)
8. 1. 3. Buildings and other civil works (Brief discussion about the civil works,description of the building, comparison of the cost , contractors etc)
8. 1. 4. Plant & Machinery (Brief discussion about each item of machinery, suppliers,
comparison of the cost , plant lay out, capacity etc)
8. 1. 5. Utilities (Brief discussion)
8. 1. 6 . Misc. fixed assets (Brief discussion)
8. 1. 7. Preliminary and preoperative expenses: (Brief discussion, including aboutinterest during the implementation period)
8. 1. 8. Margin on working capital. (Basis for arriving at the gross working capital and themargin)
8.1. 9 Contractual structures: (Provide salient features of the EPC contracts, O&Mcontracts, Purchase and supply agreements etc).
8. 1. 10 Marketing arrangement: (Detailed discussions)
8. 1. 11 Financial tie up (Detailed discussions)8. 1. 12. Implementation Schedule & Status of work.
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Description Time schedule Present status
8. 3. Basis of fixing term loan
Particulars
Cost Margin Loancomponen
t
Asset cover
Land and site developmentBuildingPlant & Machinery and other fixedassetsTotal
8. 4. Summary of the projected profitability and cash flow statements
Years
1 2 3 4 5 6
Capacity utilisationSales/RevenuePBIDTPBIDT marginDepreciationInterestPBTProv for taxes
Net profit
Cash in flowRepayment obligationsInterestRepayment of TLTotalDSCRAverage DSCR
( Please refer to Annexure IV, V and VI for detailed projected profitability statement, cash
flow statement and balance sheet )
8. 4. 1. Assumptions on projected profitability estimates
8. 4. 2. Sensitivity analysis:
8. 4. 3 Repayment schedule:
9. WORKING CAPITAL (Brief description on the working capital requirements of theborrower)
9. 1. Assessment of limits
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9. 1. 3. Computation of assessed bank finance (ABF) Funded limits
Date Date Date
Audited Estimates Projections1 Sales (Net)
2 Total Current Assets (CA)
3 Current liabilities (other than bankborrowings)
4 Working Capital Gap (WCG)
5 Net Working capital (NWC)
6 ABF (WCG minus 25% of CA or actualNWC whichever is higher)
9. 2 Limits recommended:
Existing Recommended
9. 3. Non-funded limits:
9. 3. 1. Letter of Credit: (Detailed discussions covering the types of imports/purchases, main terms of payments, usance period, lead time, main suppliers, pastexperience with such suppliers and borrower's timely reimbursement of the Banketc.)
9. 3. 2. Assessment of LC facility
(Rs in lakhs)Existing (FY 05) Proposed (FY 06)
FLC ILC FLC ILCa. Procurement of materialb. Monthly consumptionc. Purchases / import under LC (%)d. LC based purchases per monthe. Usance periodf. Lead periodg. Total of (e) + (f)
h. Amount of LC required (d*g)
9. 3. 3. Bank Guarantee: (Detailed discussions on BG limit covering the past experience,including any guarantees invoked and recovery from the borrower, totaloutstanding bank guarantees, guarantees expiring within the current year,maximum/average tenor of bank guarantee, purpose of guarantees to beissued, main terms and how the borrower can be expected to fulfill theguaranteed obligations satisfactorily, especially if the guarantees are bid bonds,advance payment guarantees or performance guarantees.)
9. 3. 4. Assessment of the BG facility
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Opening balance in theguarantee limit
Basis Amount
Earnest money deposits - % of the tenders in which theborrower expect to participate inthe financial year.
Security deposits required to bemaintained
- % of the tenders expected to beawarded in the financial year.
Advance payment guarantee - % of the tenders expected to beawarded in the financial year.
Retention money - % of the works to be competed inthe financial year.
OthersTotalLess guarantees expected to becancelled/matured in thefinancial year.
Based on the due dates of existingguarantees and past experience/trade practices.
Limit required
10. COMPLIANCE AND EXCEPTIONSA Exposure is within Banks prudential norms / RBI guidelinesB Borrower / directors/ key persons are not under RBI
defaultersC Borrower / directors/ key persons are not under SAL of ECGCC Deviations if any from the Loan policy guidelines10.1 Exceptions noticed if any in respect of :
10.1 a. Management and business of the borrower.
10.1 b. Financials of the borrower
10.1 c. Conduct of account
10.1 d. Internal polices and guidelines
10.1 e. Statutory and Regulatory provisions
10.1 f. Any others
11. GROUP EXPOSURE
11. 1. Details of associate concerns : (Please provide brief details and providedetailed financial analysis in annxure VIII)
11. 2. Banks exposure to the group:
Company / firm Fundedfacility
NF facility Security Whetherrestructured
TotalTotal exposure to the group Rs.
Irregularities, if any:
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12 RISK ASSESSMENT (Refer to Annexure VII for detailed Risk Analysis)
12. 1 . Overall Risk Rating -
12. 2. Justification for deviation in interest rate and other concessions:
12. 3. Key risk areas and mitigating factor
Key Risk areas Mitigating factors
12.STRENGTH AND WEAKNESS OF THE PROPOSAL
13.RATIONALE OF THE PROPOSAL
14. RECOMMENDATION
14.1 Business based
14.2 Financial conditions based.
14.3 Credit relationship strategy based
14.4 Risk and mitigants based
We hereby confirm that CIR from CIBIL in respect of borrowers/ partners/ directors/ co-obligants/ guarantors have been obtained and that the report contains no adverse features.
Other existing facilities, as discussed in para 3.1.2 of the proposal, are reviewed andallowed to be continued.
Confirmation regarding collection of 50% of the normal processing fee:
Delegation :
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ANNEXURE - I
Terms and conditions of the facilities:
Borrower :
Branch / R.O :
Nature of limit I II III
Amount in Figures
Amount in words
Int./Comm./Disc.
Interest reset
Period
Repayment holiday
Repayment
Processing fee
UP front fee
Prepayment penalty
Penal interest / liquidateddamages
Commitment charges
MarginGuarantee cover
Refinance
Total liability
Total liability of Group
SECURITY
Primary
Collateral
Additional
Co-Obligants/ Guarantors
OHER MAIN TERMS & CONDITIONS
Pre- Disbursement conditions
Post- Disbursement Conditions
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Annexure II
Name of the borrowerOperating statement
Year ended / ending Date Date Date DateAudited Audited Estimated Projected
1 2 3 4
Net sales Domestic- Export
Total salesOther operational income
Total operational revenueIncrease in sales (%)
COST OF SALESRaw materials - Imported
- IndigenousManufacturing / trading expensesDepreciation
Sub - totalAdd / less differential in stock in
process
Cost of productionAdd / less differential in stock of FG
Cost of salesSelling and admn. ExpensesSub-totalOPERATING PROFIT BEFOREINTERESTInterestOPERATING PROFIT AFTERINTEREST
Non operative income (net)PROFIT BEFORE TAXProvision for taxesPROFIT AFTER TAXDividendRetained profitRetained profit - %
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ANNEXURE III
Name of the borrowerAnalysis of balance sheet
Year ended / ending Date Date Date 2007LIABILITIES Audited Audited Estimated Projected
1 2 3 4CURRENT LIABILITIESShort-term borrowings from banks
Sub total (A)
Sundry creditorsInstallments of term loans payable in12 months.Provision for taxesOther current liabilities
Sub-total (B)Total current liabilities (A+B)
Term loans
Unsecured loansDeferred taxesTotal term liabilitiesTotal outside liabilitiesNET WORTHEquityGeneral reservesSurplus in profit and loss accountNet worth
TOTAL LIABILITIES
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ANNEXURE III (a)
Name of the borrowerAnalysis of balance sheet
Year ended / ending Date Date Date DateASSETS Audited Audited Estimated Projected
1 2 3 4CURRENT ASSETSCash and bankFixed deposits with BanksReceivables - Domestic
- ExportInventories: RM
Stock in processFinished goods
Advances to suppliersOther current assets
Total current assets
FIXED ASSETSGross block
DepreciationNet block
OTHER NON CURRENT ASSETSInvestments
Total other non current assets
TOTAL ASSETS
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ANNEXURE IV
Profitability projections.
(Rs in lakhs)Years 1 2 3 4 5Sales
Other IncomeTotal income
CostRaw materialsOther direct costsSelling & Admn costDepreciationInterest TLInterest Working capitalInterest othersTotal cost
PBTTaxesPAT
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ANNEXURE V
Projected balance sheet.
(Rs in lakhs)Years Date Date Date Date DateLiabilitiesCapitalReserves and surplusDeferred taxesSubordinate debtsTerm loans / term liabilitiesShort term bank borrowingsOther current liabilitiesTotalAssetsFixed assetsInvestmentsExport receivablesDomestic receivablesInventoryOther current assetsCash and BankMisc. ExpensesTotal
ANNEXURE VIProjected cash flow statements.
(Rs in lakhs)Years 1 2 3 4 5
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A. SourcesProfit before taxesDepreciationIncrease in term liabilitiesIncrease in deferred taxesIncrease in subordinate debtIncrease in short termborrowIncrease in other CLDecrease in misc. expensesTotalB. Disposition of cashIncrease in fixed assetsIncrease in other currentassetsDecrease in term liabilitiesIncrease in misc. exp
TaxesTotalSurplus / deficitOpening balanceClosing cash balance
ANNEXURE - VII
CREDIT RISK ASSESSMENT FORMAT
(As stipulated for specified loan amount (Rs.2L to Rs.50L or Rs.50L to Rs.500L orRs.500L and above as the case may be)
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Annexure VIII
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DETAILS OF THE ASSOCIATE CONCERNS. (Please provide the following details inrespect of each associate concerns).
I Name of the concern.
a. Background in brief:
b. Directors / Partners / Trustees etc.Name Other directorships
c. Financial performance : (Last three years audited figures) (Rs lakhs)
Date Date Date
Audited Audited Audited
Net salesPBIDTInterestDepreciationPBTProfit after tax (PAT)Net worthLong-term debtCurrent liabilitiesFixed assetsCurrent assetsLong-term investments
Net working capitalTotal assets = liabilitiesDebt/equity ratio (Times)TOL / TNWCurrent ratio
Related party transactions (past two years)(Rs in lakhs)
As at / for year
c.Credit facilities from our Bank:
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Status of the accounts: Standard
(Rs. in lakhs)No Nature Amount Balance as on
20/7/04Overdues/arrears
Disbursed on
FUNDED
1234TOTALNON FUNDED1TOTALGRAND TOTAL
Securities:
Primary
Collateral
Others
Guarantors
d.Credit facilities from other Banks / FIs:
Bank / FI Amount Interes
t
Period Balance Over-
dues
Security
Term loans
TotalWorking capital
Total
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