ANNEXURE: 1

EXECUTIVE SUMMARY
(All the figures reported in the proposal are in Rs. Crores, unless specified otherwise)

Circle/SBU:changed a) Borrowers Profile Name : Promoters details S.No. Name Designation DIN 1 2 3 4 5 Segment: (C&I/MSME/AGL) Location: (R/SU/U/M/FO) Industry Location (Regd/ Corporate office only) : Main Production Centres: Promoters shareholding %: Market Cap: Group to which company belongs: PAN

Branch :changed

Identifiers Passport Others

Full Address

Constitution (Prop./Partnership/ Limited Partnership/Corp. Entity Pvt Ltd/ Ltd Listed/ Unlisted) Activity: (Mfg./ Trading/ Services/ NBFC/ Others)

52 Week H/L: Group connections : Yes / No Yes/ No

Whether name of Promoters/ Directors/ Company/ Group concerns figures in RBI Defauters list/ ECGC Caution List/ CICs/ Suit filed list

Date of incorporation

Date of Commencement of Operations - (only for units having connection with us for less than 3 years)

New unit/Existing unit If yes

Existing Connection

Yes / No

Banking with us since Date of last Renewal/ Review: (*) If Reviewed valid upto : IRAC Status of 1.Advances : 2. Investments : Banking arrangement : Sole Banking/ If Take over, whether all norms Consortium/ MBA/ Syndication complied with : Yes / No Company Existing Proposed
1

Exposure

Existing

Group Proposed

Fund Based Non Fund Based Total Indebtedness investments Leasing Total Exposure Banks Share++ (%) Banks Share in TL++ (%)
( * ) In case of review date up to which reviewed to be mentioned (++) In case of Consortium/ Multiple Banking/ Syndication arrangement indicate quantum and %age (Details in Section-A1-c)

b) Proposal: For sanction / approval / confirmation : a) b) i) Sanction c) ii) Approval a) b) c) iii) a) Confirmatio b) n c)

c) RMD ADVISORIES and RATINGS: i) ii) iii) iv) RMD Guidance Note Qualitative approach Quantitative approach Comments Previous: Previous: Valid upto: Valid upto:

CRA Rating/ Score Current: CRA Financial Score Current: ECRA Long term rating: Short term rating:

d) Indebtedness / Exposure & Capital Charge:

Indebtedness

Date of Existing Sanction Limits / Renewal

O/S

Proposed Change Residu Secured/ Limits in Limits al Unsecure Tenor d

Working Capital Term Loan Ad-hoc, if any Total Fund based (A) Letters of Credit Capex LCs Bank Guarantee Ad-hoc, if any Derivatives/ CEL Total Non fund based (B) TOTAL Indebtedness (A) + (B) Investment (C) Leasing (D) TOTAL (Exposure) E (A+B+C +D) Financial / cash collateral (as per Basel norms) F Effective Exposure (E-F) Capital charge Estimated (Last Year) Net Interest Income Fee Income Return on Capital Charged Actual (Last Year) Estimated (Current year)

e) Performance and Financial Indicators As on 31/03/ Net Sales (Exports) PBT PBT/ N Sales PAT Cash Accruals PBDIT Interest Coverage Ratio
3

Actuals Actuals (Estim.)

Estimates (Current Year)

Projections (Next Year)

PUC TNW Adjusted TNW TOL/TNW TOL/ Adjusted TNW Current Ratio NWC DSCR ROE % f) Proposed Pricing: ITEM Base Existing Rate Rate Spread Effective Rate Int. on WC Int. on TL

Card rate Spread Effective Rate

Proposed rate Spread Effective Rate

Other income ITEM Existing Rate Card rate Proposed rate Extent of concession (%) Processing fee Commit charges Upfront fee LC BG Others
g) Key deviations with justification:

h) Security (including Guarantee): Existing Type of Security facilities stipulated Value of security* Status of Guarantee security details creation Remarks

(* In case of Consortium/ MBA, %age of Security available to the Bank to be mentioned)

ii) Proposed Type of facilities Security stipulated Value of security Guarantee details Net means

i) Justification for the proposal (Please provide brief particulars about the Unit, present proposal, highlights of the proposal and justification)

GENERAL MANAGER

S FORMAT: Section A INDEX CIRCLE/SBU: BRANCH: COMPANY: Sectio Contents n A1 Present Proposal a) Borrowers profile b) Proposal : For Sanction/ Approval/ Confirmation c) Credit limits (existing and proposed) d) Banking Arrangement and Sharing pattern A2 Performance Details Performance and Financial indicators Comments on Performance and Financial Indicators Movement of Long Term Funds Synopsis of Balance Sheet Comments on adverse movements, if any Activitywise Cash Flow analysis Consolidated Data and Cash flow Inter Firm comparison A3 Risk assessment : a) Credit Rating b) External Rating c) RMD Advisories d) Conduct of Account e) Review of Term Loan f) Security Coverage g) Warning signals/unattended major irregularities in Inspection Audit/Credit Audit/Other Reports h) Earlier Terms of Sanction & Compliance status i) Statutory dues / other contingent liabilities j) Risks and mitigating factors A4 Pricing a) Income analysis b) Other Banks/FIs pricing c) Proposed pricing d) Justification A5 Loan Policy : Deviations & Compliance: a) Whether names of promoters, directors, company, group concerns figure in defaulters/willful defaulters list b) Deviation in Loan policy c) Justifications for deviations
6

Page s

Synoptic Appraisal Memorandum for Term Loan (where applicable) a) Justification for the Proposal b) Recommendations : A8 Profile of the borrower and Industry a) Address and Location of the company. b) Names and Addresses of the promoters/ directors. c) Details of share-holding pattern of promoters/ directors. d) Credit History e) Brief background of the company/ group and management. f) Brief write up on the industry / sector and the company s standing B-1 Appraisal memorandum for Term Loan B-2 Appraisal memorandum for Working Capital C Terms and Conditions Annex-1 Future Plans and Business potential. Annex-2 Assessment of Credit Exposure Limit (FC) Annex-3 Earnings. Annex-4 Details of due diligence Annex-5 Details of Group Associate entities/ Concerns Annex-6 Conduct of various facilities

A6 A7

a)

List of abbreviations used

SECTION A1 Present Proposal: Circle/SBU: Branch : a) Borrowers Profile Name : Segment: (C&I/MSME/AGL) Constitution (Prop./Partnership/Limited Partnership/Corp. Entity Pvt Ltd/ Ltd Listed/ Unlisted) Location: (R/SU/U/M/FO) New unit/Existing unit If yes Existing Connection Banking with us since Date of last Renewal/ Review: (*) If Reviewed valid upto : IRAC Status of 1.Advances : 2. Investments : Yes / No

b) Proposal: For sanction / approval / confirmation : a) b) i) Sanction c) ii) Approval a) b) c) iii) a) Confirmatio b) n c) This proposal falls within the powers of ..as (i) FB/NFB/Total indebtedness is Rs. Corporate)
9

(Corporate / Non

(ii) Involves policy level deviations: If yes, Indicate policy level deviations (only major deviations): (iii) _________________ is a director in ________________ Bank. c i) Credit Limits (Existing and Proposed) : Existing Proposed Change Limits SBI % Total Cons/ SBI %Total Cons/ SBI Total Cons MBA/Syndicatio MBA/Syndicatio /MBA/Syndicatio n n n
CC/WCDL/BD EPC/FBD Total FBWC TLs/ECBs/FCL Ad-hoc, if any Total FB (a) NFBWC LC NFBWC BG Total NFBWC (b) Derivative/FC/CE L (c ) Project related LC Project related BG Project NFB (d) Ad-hoc, if any (e) Total NFB (b)+(c)+(d) + (e)= f Total Indebtedness (a)+(f) = g Investments (h) Leasing (i) Total Exposure (g) + (h) + (i)

c ii) Credit Limits (Company and Group) Exposure

Fund Based Non Fund Based Total Indebtedness investments Leasing Total Exposure Banks Share++ (%) 10

Company Existing Proposed

Existing

Group Proposed

Banks Share in TL++ (%)

d. Banking Arrangement and Sharing Pattern: Financial Arrangement: Sole Banking/Consortium/ Multiple Banking/ Syndication Lead Bank: FB NFB Total % Share TL WC SBI Associate Banks SBI Group Other Banks (Total) Top five banks in terms of their Exposure Bank A Bank B .... Total

11

SECTION A2 PERFORMANCE DETAILS a) Performance and financial indicators: Last two years actuals Current Next year Q/HY results as on year Audited Audited Estimates Projectio Last Current (Estimates (Estimates) ns Year Year )@ @ Gross Sales (value) Net Sales ( Exports) Net Sales ( value) PAT (Exports) Net Sales (Quantity) (Exports) Raw Materials Power and Fuel Direct labour SG & A costs b. Industry Exposure as on FBL NFBL Total Exposure of the % company as per prudential exposure norms To Industry exposure To total advances (domestic)

Interest Operating Profit(OP)

after interest

OPM% ( OP/ NS%) PBT PBT / Net Sales% PAT Cash Accruals PBDIT Interest Coverage Ratio * PUC TNW Adj. TNW TOL/TNW TOL / Adj.TNW Current Ratio NWC DSCR ROE% @ figures in brackets denote estimates at the time of last renewal * Interest Coverage ratio: Calculation method EBITDA / Interest.

12

b) Comments on Performance & Financial Indicators - (Comments only on adverse movements in the above): i). Net Sales

ii). Profitability (PBT / NS):

iii). TNW: Opening TNW ( excluding SAM $ ) Share Application Money $ Add PAT Add. (a) Increase in equity (b) Increase in share premium Add./Subtract change in intangible assets Adjust prior year expenses Deduct Dividend Payment Add / Subtract : DTL / DTA Closing TNW Investments in Associates/ Subsidiaries(A & S) Long Term Loans to A & S Adjusted TNW $ SAM be converted to equity by next Balance sheet date. Comments:

(Past three years)

iv). TOL / TNW:

v). TOL / Adj. TNW:

vi). CURRENT RATIO & NWC: c) MOVEMENT OF LONG TERM FUNDS:

13

FUNDS FLOW Actuals Estimated Actuals Estimated Projected (PY-2) (PY-1) (PY-1) (Current (Next Yr) Yr) Long Term Sources a) Cash Accruals b) Equity Funds c) Loans
d) Others

Long Term Uses a) CAPEX b)Others Long term Surplus / Deficit Comments: d) Synopsis of Balance Sheet: LIABILITIES Previous year CURRENT LIABILITIES Short Term Bank Finance (A) Other Current Liabilities ( B) ( Total of i, ii, iii & iv ) i. Sundry Creditors ii.Advance Payments received iii. TL inst. Repayable in 12 months ( incl FCCB) iv. Others TOTAL CURRENT LIABILITIES (C) (A+B) v. Term Loans - SBI (> 12 months) vi. Term Loans Others (> 12 months) vii. Debentures, Redeemable Pref. Shares (< 12 years), FCCB etc viii. Unsecured Loans ix. Other Term Liabilities TOTAL TERM LIABILITIES (D) ( Total of v to ix ) TOTAL OUTSIDE LIABILITIES (E) ( TOL = C+D) x. PUC xi. Reserves & Surplus ( Other than revaluation reserves ) xii Share Application Money xiii. DTL Net Worth ( NW ) (F) Total of x, xi, xii and xiii TOTAL LIABILITIES (G) (E + F )
ASSETS CURRENT ASSETS Previous year

Last year

Last year

14

a) b) c) d) e) f)

Cash & Bank Balances LC/BG Margins & liquid investments Receivables( < 6 Months) Investments (Other than long term) Total inventory i) Other current Assets- Dues from Associates /Subsidiaries ii) Other Curent Assets- Others

TOTAL CURRENT ASSETS (A) FIXED ASSETS Gross Block Less Cum Depreciation Net Block (excluding revaluation reserves) (B) Investment in Associates, Subsidiaries, sister concerns etc Other investments Receivables > 6 months Others Non Current Assets (C) Total Tangible Assets A+B+C = (D) DTA Other Intangible Assets Intangible Assets, including DTA (E) Total Assets (D+E)

e) Comments on adverse movements only in the above : (Not to exceed 5-6 lines) i) Comments on any change in capital structure. ii) Comments on Short Term borrowings, if not commensurate with increase in value of inventory & receivables. iii) Movement of Unsecured Loans (quasi equity) iv) Change in investments in Group companies / others v) Comments on Sundry Debtors beyond 6 months - present position vi) Loans and advances to group companies. viii) Others, if any f) ACTIVITY-WISE CASH FLOW ANALYSIS: (Brief observations on whether operating activities are the principal revenue
15

producing activities of the enterprise; extent of cash flow from investing activities and financing activities may be given) [Refer CPPD Circular No. CPP/CIR/CSK/30 dt. 07.07.2011 on Credit Assessment: Cash Flow Statement (CFS)] CASH FLOW a. Net cash from Operations b. Net cash from Investments c. Net cash from financing d. Net increase in cash/ cash equivalent g) Consolidated Data* i) Key Financial Indicators Previous Year Last year Net Sales PBT PAT Cash Accruals PUC TNW TOL/TNW TOL/Adj TNW * For borrowers with annual turnover of Rs 500 crores and above, consolidated data for past two years to be provided in full, on the lines of item 2A- a), d) and f), instead of g) . Consolidated Cash Flow Consolidated Cash Flow (Activity wise) Previous Year a. Net cash from Operations b. Net cash from Investments c. Net cash from financing d. Net increase in cash/ cash equivalent ii) Actuals (PY-2) Actuals (PY-1) Estimated (Current Yr) Remarks

Last Year

h) Inter-firm Comparison:
16

i) Finance related: S. Name of Co. No. FB Lts$ NFB Year Sales CR Lts$ Cash Net Cycle Profit PBT/ TOL/ Net Sales TNW

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

ii) Market related: S. Name of Co. No. PE Market Cap Share Price* (@) EPS of Last Year

(* for listed companies) @ 52 weeks High Low; face value to be mentioned, if not Rs 10. Comments:

RISK ASSESMENT a) Credit Rating Current

SECTION A3 Previous

17

CRA based on balance Sheet as on Validated on Borrower rating Current Previous CRA - Rating Overall Score Financial Score/ Minimum Score Comments on change(s) in CRA rating/ Model b) External Rating Rating Agency : Date and Amount of Rating : Rating Rationale in brief: c) i) ii) iii) iv) RMD ADVISORIES: RMD Guidance Note Qualitative approach Quantitative approach Comments

Facility rating Facilities Current

Previous

Rating Obtained: (Previous Rating) Rating valid upto:

d) i) Conduct of Account: (to comment briefly on irregularities in the accounts in the past 12 months no. of times irregular & time taken for adjustment of peak irregularity. Details in Annexure-6) ii) Utilization of limits: Utilisation of limits: Comments FB Limits Average utilisation % NFB Average Limits utilization % Review of Cash Credit Account for previous year: Rs in crores Comments (i)Total debit summations (ii)Total credit summations % of (ii) to total sales. Comments (if the utilization is less than 60%) e) Review of Term Loans (Term Loans with all Banks/FIs to be mentioned): Name of Limit DP Outstandings Irregularity, if DSCR FACR Date of the as on --------- any * restructure FI/Bank s, if any. Sanction Actuals
18

* Comment on reasons for over dues : i) No of instalments due: ii) No of instalments paid: iii) No of Installments in arrears: iv) Amount of interest in arrears: v) Comment on the companys action plan for regularizing the account. vi) Cross Defaults: If any, please specify:

f)

Security Coverage : (Pl. Furnish summary position here; Full details to be furnished in SectionC) Existing Proposed Security Coverage SBI: including excluding including excluding residual residual residual residual value value value value Amount (%) Amount (%) Amount (%) Amount (%) Term Loan Working Capital Comment on infirmities in security creation, if any g) Warning signals and unattended major irregularities Report Date Warning Signal /Major Comments irregularities/ Other significant observations RFIA Report Credit Audit Reports RBI AFI u/s 35 Other Audit Reports Qualification if any, in Auditors report Stock & Receivables audit report

h)

Earlier terms of Sanction - Compliance status S.N o. Conditions/observations Covenant Compliance status details/ time frame
19

a)

FINANCIAL COVENANTS

A.1 Equity infusion A.2 Conversion of Share Appln money/ A.3 A.4 A .5 A.6 A.7 b)
Unsecured loans into equity @ Dividend outflow/ Sale of Investments TOL/TNW (Times)* TOL/ Adj TNW (Times)* Current Ratio* PBDIT/ Interest (Times)*

OTHERS [Observations / Conditions/ including Post Sanction modifications (if any)]

1 2 * Comments only when the negative variance is more than 20%.

Penal action stipulated in last sanction: Stipulation Status of compliance

Penal action recommended, if any:

i) Dues

Statutory dues/other contingent liabilities: Amount quantified Impact on financial in ABS position (as % of TNW) Negative score in CRA, if any

Statutory dues Contingent liabilities Comments, in brief, if the impact is significant j)

CRA RELATED

Risks and mitigating factors : Mitigating factors

Critical risks perceived 1. Financial Risks 2. Business and Industry Risks 3. Hurdle Rates

20

GROUP RELATED COUNTRY RISK SUSTAINABILITY CONCERNS

4. Group gearing, where applicable 5. Adverse features in Group Concerns/ Associate entities, interlocking of funds, if any

6. Environmental Clearances & Sustainability measures 7. Other pending approvals, if any

21

SECTION-A4 PRICING: a) Income Analysis: SBI From WC Int. Estimates ( last year) Actuals (last year) Estimates (current year)

Interest & Other Charges as per latest Balance Sheet dated * . Interest Other Charges * If share not pro -rata then reasons for the same Estimated (Previous Year) Return on Capital Charged Comments b) Other Banks/FIs Pricing Name of the Bank Term Loan Working Capital

SBI Share Amount Percentage

Actual (Previous Year)

Estimated (Current year)

Existing

Proposed

c) Proposed Pricing: ITEM Base Existing Rate Card rate Proposed rate Rate Spread Effective Spread Effective Spread Effective Rate Rate Rate Int. on WC Int. on TL d) Other concessions already extended / proposed: Other income ITEM Existing Rate Card rate Proposed rate Extent of concession (%) Processing fee Commit charges Upfront fee LC BG Justification with cost benefit analysis SECTION A5
22

LOAN POLICY: DEVIATIONS AND COMPLIANCE:

a) Whether names of promoters, directors, company, group concerns figure in defaulter/willful defaulters list: Wilful defaulters list dated : RBI defaulters list dated : Name of the director Name of the director : Yes/No : Yes/No Default in connection with (Name of the company) Default in connection with: (Name of the company

Remarks Remarks

ECGC caution list dt. CIC Credit History CICs - Suit filed list Banned list of Promoters (SEBI) (CIC: Credit Information Companies) b) Deviations in Loan Policy: Parameters a) Prudential norms - Borrower b) Prudential norms - Group c) FB exposure to the industry d) Substantial exposure: Borrower e) Substantial exposure : Group f) Term Loan -Tenor g) CRA Minimum Score h) Hurdle rate i) TOL/TNW j) Liquidity k) Debt / equity l) Promoters contribution m) Average gross DSCR (TL) n)Non compliance of norms for strategic schemes: viz. Corporate Loans, TIFS, CRE and ,others p) Others Indicative Min/Max level Company's as per Loan policy level as on Justifications

Justification:
c) Other deviations Parameters Compliance (Y/N) Deviations Justification

a. Deviations in Takeover norms b. Scheme specific deviations, if any c. Advances to Bank's Directors and parties related to Directors* d. Advances to Officers and the Relatives of Senior Officers of SBI/other Banks* e. Advances to Directors of other Bank(s) and parties related to other Banks Directors* [* Refer latest RBI master Circular on Statutory and other Restrictions]

23

SECTION A6 .SYNOPTIC APPRAISAL MEMORANDUM FOR TERM LOAN: Circle : Branch : Company : Term Loan / DPG : a) b) Proposal : Project / Purpose : i) Description: ii) Key Project Parameters: Project Cost Debt Promoters contribution Our share in Total Debt
Debt Expsoure (%) Tenor of the loan (moratorium to be specified)

Equity

D/E Ratio

Average Tenor Gross avg DSCR Min. Security Margin Details of sponsor, having major Stake in the SPV (a)Name (b) equity stake (c) Credit Enhancement Mechanism (Available/ not available) c) d) Appraised by : Details of TEV Study (if proposed for waiver, justifications to be given): i) Name of the Agency: ii) Gist of major findings:
(Details to be furnished here if available)

24

e) Cost of Project, Means of finance and Key Project Parameters: Cost Land Building P&M Other assets Prel. and Preop. expenses IDC @ Contingencies WC Margin A. Equity: i) Equity Shares ii) Pref. Shares iii) Internal Accruals* Total equity contribution (i+ii+iii) B. Debt i) RTL (ii) ECB (iii) Debentures (iv)Unsecured loans (v) Others, if any Total Debt (i+ii+iii+iv+v) Total Total (A+B) Promote Others r (a) (b) Total (c=a+b) Means of Finance .

(A)

(B)

[@ IDC interest during construction, as a component of preliminary & preoperative expenses Debt: Equity: (B/A) Promoters contribution: a/A % a) Sources of Promoters funds to be specified, e.g details of assets, investments to be liquidated; in case of Investments from Associates - their Cash Accruals to be examined over the project implementation period with reference to past performance, current trends, debt servicing requirements/ CAPEX, cash flow comfort and other requirements b) Internal accruals: Details relating to availability/ adequacy of surplus to be commented upon ) f) Remarks on Cost of project & Means of finance* (in brief): * to include analysis of Group equity plans for the projects , projected cash flows & leverage Overall viability and acceptability of the proposal :

g)

25

Section A7 a) Justification for the proposal: (Only bullet points) (Other than those covered in section A4,A5,A6, B-1 and B-2) a.) Working Capital Sl No Particulars Last Sanction EstimatedActual 1 2 Net sales Inventory/NetSales + Receivables/ Gross Sales (days) 3 Net Sales to Total tangible Assets 4 ABF/ TCA 5 S Cr/ TCA 6 OCL/ TCA 7 NWC/ TCA 8 FB WC 9 NFB WC Brief Comments: Current year Projections for following year

b.) c.) d.)

Other sanctions: Approvals: Confirmation

b) Recommended for sanction / approval / confirmation.

Appraised by Signature Name Designation Place : Date:

Assessed by

Additional Assessment by Deputy General Manager

Credit Analyst

Team Leader

SECTION A8 PROFILE OF THE BORROWER

26

 CIF No, Addresses & Locations of the company : CIF No(s) Registered Office (Full Address) Administrative Office (Full Address) Factories/ Production Centres 1. (Full Addresses) 2. 3. Names & Addresses of the Promoters / Directors : S.No. Name Designation Identifiers DIN PAN Passport Others 1 2 3 4 5 [* Identifiers based on KYC guidelines] i) Details of Share-holding pattern of Promoter Directors : No. of Shares held Value of Shares held % of share holding

Full Address

S.No. Name of the Promoter / Director 1 2 3 4

ii) Shareholding Pattern as on . Description Promoters Pvt. Corporate Bodies Indian Public NRI/OCB Mutual Funds Banks / Financial Institutions Foreign Institutional Investors Others Total

% of Holding

100

iii. Comment on change in shareholding pattern, if any, subsequent to previous sanction: Credit History (with our Bank): (Last 5 years for MCG and others and last 3 years for CAG) i.
27

YearDate of Sanction

Existing FB WC TL NFB

Sanctioned FB WC TL NFB

Net Sales (only for the relevant period)

CRA

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

Particulars Notional Loss Comments

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

Brief Background of the company / Group & Management (To include competence / reputation/ corporate governance etc;) : Brief write up on the Industry/ Sector and the Companys standing (Comments on domestic/ international standing, market share, business strategies, competitive advantage etc. The para to conclude with the outlook for the unit )

Section B-1 APPRAISAL MEMORANDUM FOR TERM LOAN:

28

Circle : Branch : Company : Term Loan / DPG : a) b) Proposal : Project / Purpose : i) Description: ii) Key Project Parameters: Project Cost Debt Equity D/E Ratio Tenor of the loan Gross avg DSCR Min. Security Margin Promoters contribution LC sub-limit within Debt Bank Guarantee Our share in Debt Our share in LC Our share in BG Derivative Limit Our Share in Total exposure Details of sponsor, having major Stake in the SPV (a) Name (b) equity stake (c) Credit Enhancement Mechanism (Available/ not available)

c) d)

Appraised by : Details of TEV Study (if proposed for waiver, justifications to be given): i) Name of the Agency: ii) Gist of major findings:

29

e) Cost Land

Cost of Project, Means of finance and Key Project Parameters: Means of Finance .

Building

P&M Other assets Prel. and Preop. expenses IDC @ Contingencies WC Margin

A. Equity: i) Equity Shares ii) Pref. Shares iii) Internal Accruals Total equity contribution (i+ii+iii) B. Debt i) RTL (ii) ECB (iii) Debentures (iv)Unsecured loans (v) Others, if any Total Debt

Promote Others Total (c ) r (a) (b)

(A)

(B)

Total

Total (A+B)

Debt:equity : B/A Promoters contribution: a/A %

f) Remarks on Cost of Project ( CoP) & Means of Finance ( MoF) (in brief): (comments on MoF to also include promoter Groups equity commitments during project implementation period in the context of Groups projected free cash flows & leverage over the period;)

30

Project implementation & disbursement schedule :

1 Deal Diagram: (Applicable for projects with Project cost > Rs.500 crore or Bank exposure > Rs.100 crore) 2 3 Location : Land:

4 Production Factors / Technical Aspects: 5. Lenders Independent engineer/ Insurance consultant/ Legal Consultant 6. Marketing & Selling Arrangements: 7. Any Other Factors: 8. Utilities: 9. Approvals and Clearances: Sl.No Approvals required * Authority to accord Present status approval viz., Forest Department, MoES, PCB, etc.,

* Based on Banks Panel Engineers /CA/ TEV Report.

Implementation Schedule:

Status of implementation & disbursement schedule :

i)

a) Commercial viability (company as a whole): ( not applicable for SPVs) PY 2 AUD PY 1 AUD
31

CY

FY

Net sales OP PBT PAT Cash Accruals PBDIT Year Capacity utilization % Sales Net Profit Cash Accruals Interest TOTAL TL / Existing Loan DPG Proposed Loans repayments Interest TOTAL Gross DSCR Average Gross DSCR Net DSCR (Cash accruals utilized for the project, if any, to be factored in DSCR for the corresponding financial year) Any measures being taken to ring fence the project from the company: ( in case of proposals from PF - SBU, wherever warranted) Comments on DSCR (in brief): b) Commercial viability (Current project): Year 20.. 20.. 20.. 20.. 20.. 20.. Capacity utilization % Sales Net Profit Cash Accruals Interest TOTAL TL / Existing Loan DPG Proposed Loans repayments Interest TOTAL Gross DSCR Average Gross DSCR Net DSCR Comments on DSCR (in brief): 20.. 20.. 20.. 20.. 20.. 20.. 20..

20..

(c ) TRA arrangement : ( to comment on treatment to cash flows of the project - whether separate TRA
32

would be established etc;)

j)

Repayment Schedule and DSRA (DSRA: Applicable for projects with Project cost > Rs.500 crore or Bank exposure > Rs.100 crore) Security Margin: Last Year The Current Year

k)

Particulars WDV of fixed assets Agg. TL / DPG outstdg. Security margin available % of margin

Minimum Security Margin: Comments on security margin: (Mitigations in case of low levels of minimum security margin or DSCR) l) m) n) o) Break-even analysis and whether acceptable: Sensitivity Analysis and whether acceptable: Project Risk Allocation Matrix: Overall viability and acceptability of the proposal :

33

SECTION B-2 Assessment of WC facilities: (If the assessment of the WC limits is based on any other parameters, like Cash Budget method, Nayak Committee- Turnover Method, please specify them along with an explanation)
g) Inventory & receivable levels : Amount) ( Days)

Inventory/Payments Raw material -Imported

Amount Days

Estimates

Actuals

Estimated

Projected

-Domestic
Amount Days

SIP

Amount Days

FG

Amount Days

Receivables
Amount Days

S Creditors
Amount Days Amount Days

Import

Domestic

Other

Amount

Current

Assets

h) Assessed Bank Finance: Assessed Bank Finance Year TCA OCL WC Gap NWC BF Estimated Actuals Estimated Projected

34

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

i) Assessment of EPC / FBD limits : Sl. No. A A1 A2 A3 A4 A5 A6 B B1 B2 B3 C . j) Computation of LC limits for WC: Foreign LCs Total Purchases of RM (Esti/Proj) Procurement out of LC (%) Monthly RM purchases out of LC* a) Usance (average) b) Lead time (average) Total Time (a + b) LC Limit required Recommended LC limit Documentary : Margin (Existing / Proposed): Usance / Sundry Creditors : *In case of foreign LCs, purchases should be net of duties. Comments on mismatch, if any, between Usance available & Sundry Creditors :
35

AS ON 31st MARCH ACTUAL EPC Annual Export Sales Exports Per month Average RM holding (in months) Average processing period (in months) Total requirement [A2 x(A3+A4)] Less : Margin EPC Limit Recommended PSC Average export receivables (in months) PSC required (A2 *B1) FBD Limit Recommended Total export finance required (A6+B3)

ESTIMATE PROJECTION

Domestic LCs

Total LCs

Non Documentary :

k) Assessment of BG limit: Outstanding BGs as on .. Add: BGs required during the period .... Less : Estimated maturity/cancellation of BGs during the period Requirements of BGs Recommended BG limit Financial : Performance : Margin (Existing / Proposed): (In case of EPC Contractors/ Construction industry detailed assessment in respect of Guarantees issued for Bid bond, Mobilization, Performance, Retention, Other BGs be provided) Assessment of BG limits for EPC contractors/ Construction Industry (In case of EPC Contractors/ Construction industry detailed assessment in respect of Guarantees issued for Bid bond, Mobilization, Performance, Retention, Other BGs be provided) 1 2 3 Total Value of tenders participated at any point of time Next 12 months (A) Success/ Strike rate @ _m % (B) (B) = A * m% Bid Bonds @ _n % on value of the tenders participated calculated on the assumption that the EMD BGs are rotated once in p months. [C = A * n% * p/12 ] (C) [ A=Total Value of Bid bonds, p = no of months] Performance Guarantees @ q % of item 2 (D) [D= B * q% * nn/12 ] [where nn = no of months] Mobilisation advance guarantees @ r % of item 2 (E) [E= B * r% * nn/12 ] [where nn = no of months] Retention money guarantees @ _s % on completion of works for next t months (S) [ B* s%* nn/12] [where nn = no of months] Requirement of Guarantees for miscellaneous purposes Guarantees required for new & existing projects (3+4+5+6+7) Add: Outstanding Bank Guarantees as on Total Bank Guarantees (8+9)
36

4 5 6 7 8 9

Less: Bank Guarantees expiring during next including return of bid bonds Bank Guarantees required Recommended

months

Comments on mismatch, if any, between Mobilization BGs given and Advance payment Outstanding

l) Assessment of Credit Exposure Limit (Forward Contract Limit):As per Annexure-2. Forward Contract/Derivative limits I Past Performance (Revenue)* II Documentary Evidence II.(a) Exchange Rate Contracts DE -Revenue II.(b) Exchange Rate Contracts DE - Others III. Interest Rate Contracts (Liabilities) iv. Sub- Total {[( I or II (a)] +II (b)+III}
v) Negative MTM for existing deals TOTAL LIMITS (iv+v)

Exports

Imports

Total Limit

g.

Efficiency ratios : Aud Aud (Est) Esti Proj

Particulars

Net sales to Total Tangible Assets (times) PBT to Total Tangible Assets (%) Operating cost to Sales (%) Bank Finance to Current Assets (%) (Inventory / Net Sales) + (Receivables / Gross Sales) (days) Interest / cost of sales BF/Gross Sales Brief comments and justification on the assessment of the above FB and NFB limits:

37

SECTION C Standard Terms & Conditions: CIRCLE : COMPANY : SECURITY : a. Primary Facility Details of Security* Type of Charge Value** Date of Basis of valuation valuation

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

b. Collateral Facility Details of Security*

Owned by Type of Charge

Value**

Date of Basis of valuation valuation

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

c. Guarantees: Facility Name

Net Means

As on

Compiled on

i.

In case of Corporate guarantee(s) - brief profile and financials of the company extending the guarantees executed by the entity on behalf of the associate concerns to be given. In case of personal guarantees, net worth to be furnished

ii.

38

d. Security Coverage: Existing Security Coverage SBI: including residual value(%) excluding residual value(%) Proposed including residual value(%) excluding residual value(%)

Term Loan (%) Working Capital (%) Comment on infirmities in security creation, if any i. ii. Please indicate time frame allowed for security creation: Deviation from existing security (if any) to be mentioned in the proposal.

Justification of deviation to be furnished in Section A7 e. ECGC COVER:

Pre-shipment Credit Guarantee (Yes / No) Post-shipment Credit Guarantee (Yes / No) SCR Policy with buyer wise Limit (Yes / No) f. MARGINS : (For Each Facility as Applicable) Cash Credit:
RM: RM: Domestic Imported

Existing

Proposed

SIP FG Receivables (Cover ---days) Letter of Credit BG TL / DPG Project LC

Justification for deviation from existing margins, if any to be provided in Section A 7 above.

39

g. INSURANCE: h. INSPECTION: i. Rate of Interest j. Processing Fee/ Upfront Fee k. Repayment Schedule
l. OTHER CRITICAL COVENANTS: m. MODIFICATIONS, IF ANY, REQUIRED FROM STANDARD COVENANTS

(detailed in Circular CPP/RSN/CIR/50 dated 26.09.2006), ALL OTHER COVENANTS WILL APPLY : Justification of deviation to be furnished under section A7

40

ANNEXURE - 1 Future Plans & Business potential(over a 3-5 year horizon) including Cross selling / Retail Marketing based on Co / Groups future plans: (to be quantified). Item Present Position Whether Tied Up? (Yes / No) * Business estimated

Corporate Salary Package P Segment Loans (Nos) (a) Housing (b) Auto Loans (c) Personal Loans SBI Credit Card (No.) Point of Sale Terminals SBI Corporate Card (No.) SBI Life Business : (Premium ) a) Corporate Business b) Retail Business SBI General Insurance (Premium- Rs. In crores) SBI Mutual Funds (Gross investment Rs. crores) SBI Capital Markets Ltd iii. (a)Project Advisory & Loan Syndication iv. (b) M & A v. (c ) Private Equity vi. (d)IPO/FPO vii. (e) Others (if any) (Potential Ticket size & when expected may be furnished against each applicable item) SBI Vishwayatra Foreign Travel Yatra Cards (In USD) Vendor/ Dealer Finance Any Other (Please specify) * If no, please advise efforts made and outcome thereof

41

ANNEXURE 2 ASSESSMENT OF CREDIT EXPOSURE LIMIT (FORWARD CONTRACT / DERIVATIVE LIMIT)

I: Past Performance Method Note: Only revenue exposures for the year are considered under this component (Rs. in Crs) Year Exports T/O Imports T/O Pr Year-2 Pr Year-1 Pr Year Total T/O (3 years) Average T/O (3 Years) Eligible Notional Note: Eligible Notional is higher of the average of previous 3 years T/O or previous year's T/O. Applicable CCF=2% (< 1 Purchase Limits Year) (PFE) Sales Limits (PFE) PFE on Eligible Notional Note: PFE on eligible notional is the Limit. Separate sub-limits for Sales and Purchases are to be assessed. CEL under PP component A II: Documentary Evidence Method Eligible Notional based on various contracts and obligations on hand. (Revenue contracts both short and long term, repayments, other inflows or outflows). Exchange Rate Contracts Tenor Eligible Notional (actual) <1 year >1 year <=5 years > 5 years II.a)Exchange Rate Contracts Revenue (current year) NA NA Applicable CCF 2% NA NA CEL under DE ( revenue cur.yr) B Note: Higher of the A or B is added to the other components of exposures and limits
Higher of A or B

42

II. b)Exchange Rate Contracts DE Others (Repayment /Revenue other than II (a) & others) Tenor <1 year Amount Applicable CCF 2% PFE i

>1 year <= 5 years 10% ii

> 5 years 15% iii

II (b). DE Others (i+ii+iii) C Total Exchange Rate Contracts (higher of (A or B) +C) (1) Notes: Eligible Notional arrived at on aggregate repayments / receipts for the relevant years basis. Notes: Receipts out of long term revenue contracts for first year are considered only under DE eligibility III. Interest Rate Contracts Eligible Notional (actual) Amount (ECB etc.) Applicable CCF ( max period) PFE on eligible notional Total CEL IR Contracts (i+ii+iii) Add Negative MTM of existing contracts Total Forward/Derivative Limits (1) + (2) + (3) Summary Forward Contract/Derivative Exports limits I Past Performance ( Revenue)* II Documentary Evidence II.(a) Exchange Rate Contracts( Revenue)* II.(b) Exchange Rate Contracts(DE Others) III Interest Rate Contracts (Liabilities) IV. Sub Total {[( I or II (a)] +II (b)+III} V. Negative MTM of existing contracts TOTAL (IV + V) Tenor >1 year <=5 years

<1 year

> 5 years

0.50% i

1.00% ii (2) (3) (4) Imports

3.00% iii

Total Limit

Terms and conditions as per Circular No. . Dated .

43

ANNEXURE 3 EARNINGS & ROCC: Net Interest Margin: Facility Rate of Interest Charged % (A) CC TL-1 TL-2 External Rating: Name of the External Credit Rating Agency Credit Rating assigned Date of Rating Rating valid upto Risk Weight applicable Capital Charge: Facility Proposed Effective CCF Risk Limits Exposure (%) Weight (D) * (E) (%) (F) Risk Capital Weighted Charge Exposure (H = G * 13%) (G = D*E*F) MRFTP Rate % (B) Net Interest Margin % (C = A - B)

1. 2. 3. 4. 5. 6. 7. 8. 9.

FBWC TL Corporate Loan SLC LC (Docum) LC (Non-docum) BG (Perform) BG (Financial)

CEL

Total * After netting off financial / cash securities (as per Basel norms) Return on Capital Charge (ROCC) : Actuals Estimates Interest NII Fee Total Interest NII Fee Total Inco Incom Income (Q Income (U Inco Incom (Last = P me (R e (S) (Next Year) = T me e (W) ) (V) year) (T) * * (P) C/A) C/A ) WC Int./discount TL interest
LC BG Forex Bills Others

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

44

ANNEXURE-4 Details of Due Diligence: Date of Pre-Sanction visit Place(s) visited Name(s) of officials, who visited Whether papers required for KYC obtained (PAN/Articles/Memo etc)? Yes/No Date of Search Report obtained from ROC Formalities regarding obtention of legal opinion/valuation report completed? (Yes/No) Whether CIRs obtained from existing Bankers? (Yes / No) Other Observations, if any Date Chart 1. Nature of facility (ies) applied for: 2. Date of receipt of the proposal 3. Information sought on changes in the revised business plan 4.Reply received 5.Discussions held with Companys officials 6.Information recd 7. In Principle Note submitted 8. Date of receipt of complete information 9. Date of submission to sanctioning authority (for sanctioning authorities up to the level of GM) 10. Date of submission to CCCC if proposal is to be sanctioned by CCCC or higher authorities Appraisal: done by and date of completion Assessment: Done by & Date of completion Additional Assessment: done by and date of completion Designation Credit Analyst Team Leader/ AGM DGM/ GM Date Initials

45

ANNEXURE - 5 GROUP / ASSOCIATE ENTITIES/COMPANIES 1 2 3 4 NAME OF THE UNIT NAMES OF PROMOTER DIRECTORS ACTIVITY ANALYSIS OF FINANCIALS AS ON A COMMON DATE PY NET SALES PBT CASH ACCRUALS PUC TOL/TNW TOL/Adj TNW 5 BANKING ARRANGEMENTS FB NFB OUR SHARE (%) LY

6 7 8 9 10

NAMES OF OTHER BANKERS IRAC STATUS CRA / ECR ANY DEALINGS WITH THE BORROWING COMPANY KNOWN ADVERSE FEATURES, IF ANY

46

(+*Applicable for Accounts with Group turnover of less than Rs 1000 crores) (a) Cash Credit

ANNEXURE-6 CONDUCT OF VARIOUS FACILITIES* (Last 12 months period to be covered for all facilities)

Particulars Credit summation* Debit summation* Maximum outstanding Minimum outstanding Average outstanding No. of times and days the account was irregular Reasons for the irregularity(ies) Peak irregularity in the account, if any No. of days taken to adjust peak irregularity

Last Financial year

Current Financial year up to previous month

No of times

No of days

No of times No of days

(* To be provided for accounts with exposure less than Rs. 100 crores)

(a i): Comments: (b) Bills Facility Particulars No. of Bills purchased / discounted Amount of Bills purchased / discounted No. of Bills returned unpaid Amount of Bills returned unpaid Interest / discount earned (b i) Reasons for return of Bills. (+* Since such accounts are being reviewed by GM and above under the Account plan exercise hence may lead to duplicity of work) Last Financial year (Amount in lacs) Current Financial year up to previous month

47

c)

Letter of Credit Last Financial year

(Amount in lacs) Current Financial year up to previous month

Particulars No of LCs opened Aggregate amount of LCs No. and days amount of bills that devolved Of the above, not adjusted in 15 days Maximum no. of days taken for regularising the account Commission earned

d). Bank Guarantees Particulars No. and amount of guarantees issued No. and amount of guarantees invoked, if any Whether Cash Credit a/c was rendered irregular, on account of above no. & amount Maximum no. of days taken Commission earned

Last Financial year

(Amount in lacs) Current Financial year up to previous month

ANNEXURE: 2
Appraisal Note Format AS
48

To be used as appraisal note for reviews, ad hoc limits, Corporate loans (Units with ECRA of BBB+ and above and CRA greater than SB5 ), interchangeability, changes in security/margin and other matters. For Corporate loan (Units with ECRA of BBB+ and above and CRA greater than SB5), commercial viability, repayment schedule and security margin etc are to be furnished as annexure.

(All amounts are to be in crores) 1. Company Profile: Circle/SBU: Branch : a) Borrowers Profile Name : Segment: Constitution: (C&I/ MSME/AGL) (Prop/ Partnership/ LLP/ Corp. Entity/ Pvt Ltd./ Public Ltd- Listed/ Unlisted) (For Companies): Location (Regd office only) : (Indicate R/SU/U/M) Sl Promoters name (Include names of No major Corporate shareholders also)

IRAC Status of i. Advances : ii. Investments :

Designation

Shareholding (%)

Promoter Director(s): (mention combined shareholding %) Group to which company belongs: Industry:

Activity: (Mfg./ Trading/ Services/ NBFC/ Others) Date of incorporation: Banking with us since: Banking arrangement : Sole Banking /Consortium/ /MBA Group connections (if any) Yes/ No Whether name of Promoters/ Directors/ Company/ Group concerns figures in RBI Defauters list/ ECGC Caution List/ CICs/ Suit filed list Date of last Review/ Renewal: CRA ECRA Existing: Rating: Yes/ No

Proposed: Valid upto:

2. Present Proposal: a) Proposal: For sanction / approval / confirmation : a)

49

b) i) Sanction c) ii) Approval a) b) c) iii) a) Confirmation b) c)

This proposal falls within the powers of ..as (i) FB/NFB/Total indebtedness is Rs. (Corporate / Non Corporate) (ii) Involves policy level deviations: If yes, Indicate policy level deviations (only major deviations): (iii) _________________ is a director in ________________ Bank. 3. Credit limits (Existing and proposed): EXISTING LIMITS SBI % CONS FB .. .. Total FBWC
Term Loans/ ECBs / FCLs

PROPOSED SBI % CONS

CHANGE SBI CONS

TOTAL FB LCs BGs DPGs TOTAL NFB FB+NFB

4. Indebtedness / Exposure & Capital Charge: Exposure Company Group Existing Proposed Existing Proposed
Fund Based Non Fund Based Total Indebtedness investments Leasing Total Exposure Banks Share++ (%) 50

Proposed Exposure Credit Risk Conversion Weight factor

Banks Share in TL++ (%)

Capital charge for Total exposure :

( * ) In case of review date up to which reviewed to be mentioned (++) In case of Consortium/ Multiple Banking/ Syndication arrangement indicate quantum and %age

5. Banking Arrangement and Sharing Pattern: Financial Arrangement: Sole Banking/Consortium/ Multiple Banking Lead Bank: TL FBWC NFB Total SBI Ass.Bks. SBI Group Other Banks Total) Top five Banks in terms of their Exposure Bank A Bank B Bank C Total 6. Performance and Financial Indicators As on 31/03 Actuals Actuals (Estim.) Net Sales (Exports) PBT PBT/ N Sales PAT Cash Accruals PBDIT PUC TNW Adjusted TNW TOL/TNW TOL/ Adjusted TNW Current Ratio NWC DSCR ROE (%) 7. Synopsis of Balance Sheet :
LIABILITIES
51

% Share

Estimates (Current Year)

Projections (Next Year)

Previous year

Last year

CURRENT LIABILITIES Short Term Bank Finance (A) Other Current Liabilities ( B) ( Total of i, ii, iii & iv ) i. Sundry Creditors ii.Advance Payments received iii. TL inst. Repayable in 12 months ( incl FCCB) iv. Others TOTAL CURRENT LIABILITIES (C) (A+B) v. Term Loans - SBI vi. Term Loans - Others vii. Debentures, Redeemable Pref. Shares (< 12 years), FCCB etc viii. Unsecured Loans ix. Other Term Liabilities TOTAL TERM LIABILITIES (D) ( Total of v to ix ) TOTAL OUTSIDE LIABILITIES (E) ( TOL = C+D) x. PUC xi. Reserves & Surplus ( Other than revaluation reserves ) xii Share Application Money xiii. DTL Net Worth ( NW ) (F) Total of x, xi, xii and xiii TOTAL LIABILITIES (G) (E + F )
ASSETS CURRENT ASSETS i) Cash & Bank Balances ii) LC/BG Margins & liquid investments iii) Receivables( < 6 Months) iv) Investments (Other than long term) v) Total inventory vi) i) Other current Assets- Dues from Associates /Subsidiaries ii) Other Curent Assets- Others TOTAL CURRENT ASSETS (A) Previous year Last year

( Total of i, ii, iii & iv )

FIXED ASSETS Gross Block Less Cum Depreciation Net Block (excluding revaluation reserves) (B) Investment in Associates, Subsidiaries, sister concerns etc Other investments Receivables > 6 months Others DTA Non Current Assets (C)

52

Total Tangible Assets A+B+C = (D) Intangible Assets, including DTA (E) Total Assets (D+E)

Comments only on adverse movements in the above: (Not to exceed 5-6 lines) 8. Consolidated Data i) Key Financial Indicators* Previous Year Last year Net Sales PBT PAT Cash Accruals PUC TNW TOL/TNW TOL/Adj TNW * For borrowers with annual turnover of Rs 500 crores and above, consolidated data for past two years to be provided in full, on the lines of item 6 & 7 instead of 8 i) and ii) Consolidated Cash Flow Consolidated Cash Flow (Activity wise) Previous Year a. Net cash from Operations b. Net cash from Investments c. Net cash from financing d. Net increase in cash/ cash equivalent 9. 1. a) Credit Rating : Current Previous ii)

Last Year

CRA based on balance Sheet as on Validated on Borrower rating Facility rating CurrentPrevious Facilities Current CRA - Rating/ Score Financial Score/ Minimum Score Brief reasons for deterioration/improvement in CRA 9.1 b) External Rating Rating Obtained: (Previous Rating)
53

Previous

Rating Agency :

Date of Rating : Rating Rationale in brief:

Rating valid upto:

9.1. c) Pricing: ITEM

Existing Rate Link to Effective Base Rate Rate

Card rate Link to Effective Base Rate Rate

Proposed rate Link to Effective Base Rate Rate

Int. on WC Int. on TL Other Income ITEM Processing fee Commit charges Upfront fee LC BG 9.1

Existing Rate

Card rate

Proposed rate

d) Value of the Account: SBI From Estimates ( last year) WC Int.

Actuals (last year)

Estimates (current year)

Details of cross selling to be furnished in Annexure - 1.

10. Details of Term Loans (all Term Loans with all Banks/FIs to be mentioned):

54

Name of FI/Ban k

TL Limit Outstandings Irregularity, as on date if any.*

Date of Rate of FACR interest sanctio int. n reset

AVG DSCR Est. as Actual per the sanctio n

* Pl. offer comments, giving companys action plans for regularization of the account / payment of overdue installments/ interest with a definite time frame. i) No of instalments due: ii) No of instalments paid: iii) No of Installments in arrears: iv) Amount of interest in arrears: v) Comment on the companys action plan for regularizing the account. vi) Cross Defaults: If any, please specify:

11. Security Coverage : (Pl. furnish summary position here; Full details to be furnished in Annexure-2) Existing Proposed Value (Rs. In cr.) Value(Rs. In cr.) Total value of security (incl. residual value) SBI Share (value) %age Total Exposure (SBI) Security Coverage including excluding including excluding SBI: residual value residual value residual value residual value (%) (%) (%) (%) FACR (%) Justification for change, if any, from the existing position:

12.

Salient Features and Justification for the Proposal :

55

13. Non-compliances, if any (Only non compliances / irregularities, if any to be indicated along with a brief justification): S.No. Non-compliance with regard to 1 Loan Policy Guidelines 2 Earlier prescriptions of Sanctioning authority 3 RMD Exposure norms 4 RBI Defaulters / Willful Defaulters / CIBIL List of Defaulters / ECGC 5 Take-over norms 6 Inspection / Audit irregularities 7 Scheme-specific deviations 8 Environmental clearances 9 Others, if any Nature of noncompliance Comments

14. Comment on the level of Statutory Dues and contingent liabilities and their impact on the financial position of the borrowing concern : Dues Statutory dues Contingent liabilities Level (Rs Impact on financial Negative score in CRA, if in crores) position any

15. Recommended for sanction / approval / confirmation.

56

It is certified that: i) The undersigned is holdiing and has taken into consideration the certificates from Assessing Officer/ Appraising Officer/ Addl Appraising Officer ii) CRA rating has been validated by the Special Committee for independent validation iii) The proposal complies with RBI guidelines iv) All the laid down Systems and Procedures, as applicable to the proposal has been complied with by me/ us, to the best of my knowledge v) The undersigned is satisfied with the overall viability of the proposal and the recommendations made Appraised by Signature Name Designation Place : Date: Credit Analyst Team Leader Deputy General Manager Assessed by Additional Assessment by

ANNEXURE - 1
57

Future Plans & Business potential(over a 3-5 year horizon) including Cross selling / Retail Marketing based on Co / Groups future plans: (to be quantified). Item Present Position Whether Tied Up? (Yes / No) * Business estimated

a) Corporate Salary Package b) P Segment Loans (Nos) (a) Housing (b) Auto Loans (c) Personal Loans c) SBI Credit Card (No.) d) Point of Sale Terminals e) SBI Corporate Card (No.) f) SBI Life Business : (Premium ) a) Corporate Business b) Retail Business g) SBI General Insurance (Premium- Rs. In crores) h) SBI Mutual Funds (Gross investment Rs. crores) i) SBI Capital Markets Ltd Project Advisory & Loan Syndication M&A Private Equity IPO/FPO Others (if any) (Potential Ticket size & when expected may be furnished against each applicable item) j) SBI Vishwayatra Foreign Travel Yatra Cards (In USD) k) Vendor/ Dealer Finance l) Any Other (Please specify) * If no, please advise efforts made and outcome thereof

ANNEXURE- 2 SECURITY :
58

Primary Facility Details of Security*

Owned by

Type of Charge

Value

Date of Basis of valuation valuation

*To include detail like khata no etc, flat no, house no, area/extent of land, address. ** In case of Consortium/ MBA Accounts our share to be provided. Details of Total Security for the facility and for the Banking System may be shown in brackets

Collateral Facility Details of Security*

Owned by

Type of Charge

Value

Date of Basis of valuation valuation

*To include detail like khata no etc, flat no, house no, area/extent of land, address. In case of Agri land time line for conversion. ** In case of Consortium/ MBA Accounts our share to be provided. Details of Total Security for the facility and for the Banking System may be shown in brackets

Guarantees: Facility Name

Net Means

As on

Compiled on

Security Coverage: Total value of security (incl. residual value) SBI Share Total Exposure (SBI) Security Coverage SBI:

Existing Value (Rs. In cr.) % including residual value (%) excluding residual value (%)

Proposed Value (Rs. In cr.) % including residual value (%) excluding residual value (%)

FACR (%) Deviation from existing security (if any) to be mentioned in the proposal.

ANNEXURE- 3
GUIDANCE NOTE ON PREPARATION OF S-FORMAT (Please avoid long history or obvious information)
59

Sl. no 1

Item/Heading Executive Summary

Item Write-up to cover the following All the proposals submitted to WBCC II and above to have a snapshot of the proposal in Executive Summary. Synopsis of the proposal needs to be provided in the format. Explanations need not be provided. Justifications to provide brief particulars about the Unit, highlights of the present proposal, its requirement and justifications Sanction/ Renewal/ Review/ Approval/ Confirmation items of the agenda of the proposal should be as per the standard texts suggested vide CPP/BSG/257 dated 12th October, 2001. Credit Limits are to be captured facility-wise In case of MBA/Consortium arrangements, details of top 5 participating Banks and their exposures and proposed changes, if any, in the sharing pattern shall be brought out in the proposal with comments. General Comments on performance should capture/ assess in essence the companys business model Performance should be with specific focus on activity levels, PBDIT, profits and profitability ratios. Key elements of the companys business model that differentiates it from its peers and contribute to its success are to be commented upon. To undertake meaningful analysis of the performance of the unit, last two years audited data along with estimates made at the time of last sanction/renewal need to be furnished Sales (Pls do not repeat what is given in the table). Discuss the following Has the growth in the past followed the projections made for the period. Has it exceeded industry trends or otherwise reasons for the same. Are the estimates made of the current year feasible and if so why? Order book position. Strategies for achieiving the estimated/ projected level of sales. Segmental analysis of sales. Customerwise analysis of sales if relevant (order book position may be given in an annexure if required) Profitability On similar lines as above

Present Proposal Section:A1

b)

c) d)

Performance Details Section A2

a) & b)

60

Liquidity To include comment on the current ratio, debtors ageing analysis. Adverse features pointed out in the Stock and Receivables Audit. If any, and its impact on liquidity to be commented upon. c) & e) Remarks on movement of TNW with special focus on movement of Equity, Share Application Money, Share Premium and present status thereof to be given. If Share Application Money has been treated as part of NW, the date of conversion of the amount in to PUC to be mentioned. If conversion is yet to take place, stipulation for conversion to be made for release of new limits. A copy of board resolution along with a copy of Form 2 filed with ROC to be obtained. Changes in Adj. TNW to be commented upon, in the context of last sanction stipulations and the companys current financials. Any changes in the capital structure, disproportionate movements in other items to be commented upon along with their impact on overall health of the company Contingent obligations undertaken by the Unit on behalf of SPVs/ Group entities needs to be commented upon ( especially in case of High value MCG / CAG/PF SBU) Accounts Comment on the ability of the company to raise short/ long term resources and meet its short term liquidity needs Plans for infusion of funds, investments in fixed assets (if these have not been covered elsewhere) Comments on diversion of funds, if any Synopsis of the balance sheet in line with CMA data All liabilities in the form of Instalments/ Obligations, including FCCB/ ECB, falling due in the next 12 months and hence needs to be hobnoured in the ensuing year, should be treated as an item of current liability in the CMA data. In other words the Corporates ability to meet the liability from its internal cash generation and cash comfort available needs to be critically examined and suitable additional stipulations are to be incorporated in the proposal, wherever warranted.

d)

61

f)

h)

Risk Assessment Section: A 3

a) & b)

d)

Activity-wise cash flow Comment on revenue generating capacity of the unit from the operating activity being financed, Whether the returns on the companys investments are on anticipated lines or not needs to be examined; To assess the impact of investment activities on the company. In cases where investments are proposed by the company, the companys cash flow statement to be put to strict scrutiny to analyse demands on the cash flow and availability of free cash flow for investment. To assess the cash generating capacities/ profitability of various activities and their impact on the overall performance of the company. Compare the cash movement with the transactions in the CC Account (If more accounts are involved, observations from all the accounts), check for routing of all the transactions, transactions are arising from the main activity of the unit, if the movement is on account of investments etc., whether the flow is through the Operative Unit. (Purpose is to ensure/ comment on the validity of figures in balance sheet with the actual as recorded in bank statements Brief observations on whether operating activities are the principal revenue generating activities, adequacy of operating cash flow ratio (i.e. net operating cash flow/ current liabilities); extent of cash flow from investing activities and financing activities be given Inter firm comparison is an important tool to gauge competitive advantage of the borrowing unit vis-a-vis its peers in the industry. Therefore, current data needs to be sourced from authentic sources like CRISINFAC, CMIE, CRISIL etc., relating to relevant size and activity of the units. Source of the information needs to be mentioned. CRA & ECRA The following points need to be critically examined for ascertaining any deterioration or major changes in CRA and ECR ratings vis a vis previous ratings and variance in the movement of ratings CRA and ECR Conduct of the Account Comment briefly on irregularities in the accounts in the past 12 months no. of times irregular & time taken for adjustment of peak irregularity
62

e) & f)

Pricing Section A 5

Review of TLs to o Comment on reasons for overdues, if any, and o DSCR comfort o Cross defaults (defaults with other member banks /FIs) to be meaningfully commented upon. Security coverage: Comment on dilution of security or any other weakness observed. In case of derivative transactions (including forward contracts), the exposures are to be backed by appropriate underlying assets. (In other words, derivative transactions arising out of Working Capital needs, should be covered by securities applicable for regular working capital loans) In case of Consortium/ Multiple Banking arrangements, where there is resistance from Corporate/ Other member Banks, the transactions are to be taken with full knowledge that our exposures are Clean in nature, and be said so in the appraisal also, to bring it to the notice of the Sanctioning Authority. The attendant risk with the clean nature of advances needs to be taken note of and to be judiciously exercised. g) Comment on Action initiated to address the warning signals/ irregularities brought out in various audit reports flagged on the borrower account in any of the audit reports and the impact on the quality of asset and any mitigation suggested should form part of Other Critical Covenants in Section C. Any other critical mitigants related to monitoring of the account neds to be spelt out clearly h) Apart from comments on the compliance status of various financial and other Covenants, comments in respect of changes in Post Sanction modifications (if any), and approving authority thereagainst needs to be provided. (These include changes detailed in Circular No. CPP/KKK/CIR/65 dt. 07.11.2006 and modifications in pricing) i) & Risks and mitigation factors table should j) capture the risk profile and the mitigants to address the risks. a) Return on Capital Charged and whether it is in alignmemt with the risk perceived needs to commented upon
63

c)

Loan Policy a) Deviations & & b) Compliances Section A5

c)

Synoptic Appraisal of Memorandum for Term Loan Section A6 and B 1

Any increase or decrease in pricing compared to the previous sanction to be discussed and properly justified in comparison with the pricing offered by other banks and in terms of generation of other income Latest list of Defaulters/ Wilful Defaulters/ Suit filed/ Non Suit filed accounts, circulated by RBI/CIBIL/ Other CICs/ ECGC Caution list has to be referred on the borrowing unit as well as Directors and Guarantors For all listed companies, a confirmation to the effect that SEBI website/ Orders and Ruling page has been visited and taken note of. (Adjudicatrion order and banned list under Section 11(4)b and 11B of SEBI) Approvals for deviation from Loan Policy guideines wherever warranted are to be obtained from appropriate Authority and the same has to be mentioned in the proposal as well Compliance with the laid down takeover norms, has to be ensured and approvals for deviation, if any, to be recorded in the proposal. Purpose of Term Loan : to be specified: Expansion / Modernisation / Diversification / acquisition / Shoring up of NWC (Corporate Loan) / R&D expenditure / Acquisition of Machinery / Construction of Building, etc., followed by brief details thereof. Sources of Promoters funds to be specified, e.g details of assets, investments to be liquidated, in case of Investments from Associates - their Cash Accruals to be examined over the project implementation period with reference to past performance and debt servicing/ CAPEX and other requirements. Comments on Means of Finance to also include promoter Groups equity commitments during project implementation period in the context of Groups projected free cash flows & leverage over the period; Indicative list of Approvals/ Clearances : Land/ Site availability, Environmental and CRZ clearance, NOC from PCB, Stack height clearance, Forest clearance, Power connection, Water connection, Chief Controller of Explosives from Petroleum and Explosives Safety Organisation, NOC form Defence, Rail Route Clearance, Customs landing Permit, Permission from the State Government for extraction of boulders from quarry, License from
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Justification for the proposal: Section-A7 Profile of the e) Borrower: Section-A8

Inspector of Factories or other competent Authority for setting up Batching Plant, Permission from State Government for cutting of trees, Any other permission/ clearances required under applicable laws for the specific proposal Comments on Term Loans to include Risk assessment in relation to: Pre construction contract/ approval/ resettlement risks Financing Risks, tie up Construction risk and Operational Risk Average tenor of the loan needs to be provided Weighted Average Tenor of the loan (WAL): WAL is a useful measure in credit risk analysis, bearing in mind that the main credit risk of a loan is the risk of loss of principal. The primary reason for this is that, all else equal, a loan with a longer tenure has greater risk than its shorter-dated counterpart. Since justification for a few Agenda items has already been provided in Sections 5, 6, B-1 and B-2, the same need not be repeated in this section. Please ensure that there is no duplicity in this section. At times single borrower may have more than one CIF No(s). All such CIF No(s) need to be mentioned. Loss haircut suffered by the Bank on account of Compromise/ Writeoff/ references to CDR, including Recompense clause, in respect of exposures on Companies floated by Groups/ Asssociates/ Related parties/ Directors/ Guarantors to be commented upon Background of the Company shall include brief information on the following aspects: o Business of the company. o Key milestones achieved since incorporation o Business Segments and Product Profile o Capacities and Production facilities o Technical Collaborations o Marketing o Group companies Background of the Promoters and Management shall include brief information on the following aspects: o Promoters o Vision and strategy of the management.
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9.

10

Section B2 Assessment of WC

o Managerial experience to run the business / key managers. o Management styleFamily run / professionally managed/ mix. o Management achievements and skills (project management skills/ market share/ shareholder value/ strong marketing and production skills/operational efficiencies / decision making skills/ challenges faced and their ability to overcome them etc.). o Key man risk and succession plan. Corporate Governance issues such as : o In the proposals there should be a separate paragraph on corporate governance practises in the borrower company. o The promoters have ever defaulted in the past either in this company or in any of the group companies and the reasons for the same o their market reputation o non-compliance of any regulatory guidelines/compliant with clause 49 of the listing norms etc. o Details on the constitution of the company's board with particular reference to the number of independent directors (to comment on the independent nature of the board or otherwise), number of board meetings held and whether the company was involved in any unsavory incidents vis-vis the government/regulators/investors in the immediate past (During the period under review). Industry Outlook: A brief discussion covering overall future outlook for the industry taking in factors such as Demand and Supply Competition Global scenario and Government initiatives and Regulatory issues. (lengthy write up should be avoided) on the following aspects This is to be concluded with an overall future outlook for the industry and the unit. The purpose of WC may be incorporated for eg. Enhancement o/a increase in sales Enhancement o/a increase in capacity addition Enhancement o/a change in operating cycle. Enhancement o/a change in the product mix.
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 11 Terms and conditions Section C

Enhancement o/a abnormal / unprecedented increase in prices of core raw materials / cost of production. EPC Contract depending on the contract period and terms of contract, need for individual BGs to be assessed. All columns / Paragraphs to be specifically commented, else, to be mentioned as Not applicable. Vague T&C like As per extant guidelines to be avoided. For eg. Inspection, insurance, etc. Full details to be provided, including valuation details and basis thereagainst needs to be stated. Details of ownership of land, i.e., owned / leased need to be specifically incorporated. In respect of Apartments / Flats, the value of insurance to be obtained may be specifically mentioned. This is to avoid ambiguity on value of un-divided share of land, to be reckoned or not which is debatable. Time granted for security creation, deviations from existing security (if any) to be detailed Modifications in Standard Covenants, if required needs to be detailed alongwith reasoning

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