BRANCH: AMBUR

Tracking No. DATE: 27/03/2019

Proposal objectives: For Fresh Sanction of Term Loan Facility and Renewal /
of OD facility

Falls under the Powers of: MDL- MSME MORTGAGE (TERM LOAN)

(Rs. in lakhs)
1. Name of the Branch AMBUR
2. Name of the Borrower / Account M/s SNT ENTERPRISES
3. Date of receipt of proposal at Branch 15/03/2019 FINAL SUBMISSION ON
26/03/2019
4. Type of Facility proposed New MSME MORTGAGE and
(Term Loan / SOD / OCC) Renewal of OD SECURED
5. Amount proposed Rs. 10.00 Lakhs New
6. Purpose of Loan Repair and Renovation of Machines
and Factory Unit.
7. Details of existing Facility (nature of OD of Rs. 30.00 Lakhs sanctioned on
facility, amount and date of sanction 28/06/2013 AC 6138926930
etc.,) (if any) TL of Rs 11.22 Lakhs sanctioned on
08/09/2014
TL of Rs 4.00 Lakhs sanctioned on
13/01/2016
8. Asset classification as on 30/07/2018 Standard
9. Credit rating
- Previous year Not Applicable
- Present year A (Scoring Model)
Migration reasons (if applicable) Not Applicable
10. Financing pattern Exclusive
11. Constitution Partnership
(Proprietorship / Partnership / Private
Limited company / Trust)
12. Line of Activity Manufacturing of Leather and Rubber
Sole
13. PAN ABGFS4868F
14. a Address :- Office No.124/04, S.K. Road,
Sanrorkuppam, Ambur 635802
Factory

Name of Net worth As on

Proprietor / Partners / Directors / (Rs. in lacs)
Trustees

Page 1 of 17
15. Mr. N Thirunavukkrsu 194.08 29/03/2019
S/o S Natrajan
Mr. T Sunil Sabrish 5.37 29/03/2019
S/o N Thirunavukkrsu

16. Chief Promoter / Executive Mr. N Thirunavukkrsu

17. Guarantor/s Personal Guarantee of Partners
18. Date of Incorporation 20.08.2006
19. Date and SSI Registration No. Not Available
( Entrepreneur memorandum)
Date and Trademark Registration No. 220
20. IEC NA
TIN 33644262938
CST 624178/12.02.07
GST 33ABGFS4868P1ZE
21. Customer since 28/06/2013 (6138926930)
22. Date of last sanction / renewal 09/09/2015 and renewal on
09/09/2018
23. Whether the company/ Group No
concern/ Directors / Partners /
Proprietor Guarantors are in the
defaulters’ list/ caution list received
from RBI/ ECGC ? If so, RM’s
specific comments may be furnished:

DETAILS OF FACILITY: (Rs. in lacs)

Present request
Nature of facility Existing Proposed
IND SME SECURE OD 30.00 --
Term loan 15.22 10.00
Guarantee / LC / LOU ---- ----

Exposure Norms (Rs. in lacs)

Name of Group Not Applicable
Existing Proposed
Exposure
Company Group Company Group
Fund Based --- --- --- ---
Non-Fund Based --- --- --- ---
Date of Property Visit: 05/02/2019 – by Mr. Amit, Senior Manager (BM),
Ambur Branch and Mr. Arun Prakash, Assistant
Manager
Major Observations 1. Partially triple storeyed commercial marriage
hall building finished with granite flooring. Near
to Andhra Bank Ambur Branch and
sundaravinayagar koil.
2. Site is easily accessible as located on the Main
road of ambur bye pass.

Page 2 of 17

Date of Unit Visit:
Major Observations
3. Firm having registered office address at No. 60
1st floor M.C.Road Sanrorkuppam Ambur.
05/02/2019 by Mr. Amit, Senior Manager (BM),
Ambur Branch and Mr. Arun Prakash, Assistant
Manager
1. The unit consists of sole plant machinery
and heel plant machinery approx cost
around 55 lakhs.
2. Around 40 employees working in the unit.

Unit address : S F No 6/1A6 Mathakadupu Road,

Sanrorkuppam , Ambur
Financing Pattern: Sole Banking
Name of the Auditor/Audit firm of M/s Krishnan & Co
the borrower & Membership Mr. Pari, Auditor, Vaniyambadi.
number of the Auditor
Details of Directors: Not applicable
To be Cross Checked with the list of Signatories Filed with ROC. Changes /
Variations, if any to be discussed. Not Applicable

Defaulters’ list:
The following latest defaulters list to be verified against the DIN / PAN of
Directors / Guarantors and certified regarding the appearance / non
appearance of the names in the lists.
Details Report as on
30.06.2018–
verified on
30.06.2018
i) RBI Defaulters List – Non Suit filed ( Rs. 1 Cr and above ) NIL
ii) RBI Wilful Defaulters list – Non Suit Filed ( Rs. 25 Lakhs and NIL
above )
iii) RBI Caution List NIL
ii) OTS list NIL
v) CIBIL suit filed account of Rs. 1.00 Cr and above NIL
vi) CIBIL willful defaulters list of Rs.25 lacs and above NIL
vii) CIBIL suit filed account of below Rs. 1.00 Cr as on NIL
viii) CIBIL willful Defaulters list of below Rs. 25 lacs NIL
ix) CIBIL – Consumer Report / Commercial Report / Detect Verification Detailed below
x) ECGC SAL list NIL
xi) CIBIL Detect NIL
xii) CRILC * NIL

Page 3 of 17
 **Details of CIBIL reports of the applicant and Guarantors
S. Name and Designation DOB D PAN CIBIL Date /
No Address I Score and
N comments
1 Mr. N Partner/ 06/01/1967 - ACFPT4141C 28/03/2019
Thirunavukkrsu Guarantor -
S/o S Natrajan 748 & 839
No. 10, Sairam
Street, Lakshmi Low proportion
nagar, of satisfactory
Sanrorkuppam trades.
Ambur 635814
2 Mr. T Sunil Partner/ 13/12/1994 - FARPS7648J 28/03/2019
Sabrish Guarantor -
S/o N -1 & -1
Thirunavukkrsu
No. 10, Sairam Insufficient
Street, Lakshmi history to score
nagar,
Sanrorkuppam
Ambur 635814

*CRILC reporting / formation of JLF :

Whether the company / group company/ies is reported Yes / No
under CRILC by other banks / our Bank as SMA 2? :
If Yes, the date of reporting and Name of the Bank Not Applicable
reported :
If yes, the details of JLF formation and Corrective Action Not Applicable
Plan (CAP) implementation thereon
If no JLF is formed, reasons thereof Not Applicable

II. Position of Account:

a. With our bank: As on 28/03/2019 ( Rs. In lacs )
DL / Excess / Existing rate
Account
Facility Limit Amount Balance Overdue of Interest /
Number
Disbursed * Commission

TL 6259498519 11.22 11.22 3.66 NIL 14.95

OD
6138926930 30.00 30.00 28.54 NIL 13.75
Secured

TL 6401655325 04.00 04.00 0.84 0.06 14.95

b) Operations in the account during 12 months ending 01.04.2017 to 31.03.2018 (Rs. in lacs)

Page 4 of 17
 Average Highest Lowest Interest Other
Facility Turnover Income
Balance Balance Balance Income
OD 138.00 31.30- 14.48- 37.99- --- ---

Comments on Operation of OD account: - Satisfactory

Whether pro-rata turnover has been routed through our Bank? - Not applicable

c) Under NFB (LC), furnish history of devolvement (date, amount devolved / invoked & date of
adjustment) after last sanction / review / renewal of the facilities:
(Rs.in lacs)
S. No Date of Devolvement Amount Date of Adjustment
Not Applicable

d) Excesses allowed in the account: (Rs. In

lacs)
No. of Occasions Maximum amount Minimum amount
Not applicable
Excess falls under the powers of : Not Applicable

Details of confirmations obtained wherever applicable : Nil

e). With other Bank(s): [Position as on 31.01.2017] (Rs. in lakhs)

Name of the Fund Based Non-Fund Based Asset Classification
Bank as on latest Quarter
Facility Limit Balance ROI Facility Limit Balance Rate of
Commission
Nil

f) With Financial Institutions: [Position as on 31.01.2017] (Rs. in lakhs)

Fund Based Non-Fund Based Asset Classification
Name of as on latest Quarter
the Bank Facility Limit Balance ROI Facility Limit Balance Commission
NIL
g) Details of Credit Information obtained from other Banks / Financial Institution:
Name of the Bank / FI Date of the Opinion Details of Credit Opinion
Nil

h) Exchange of Information as per RBI norms : (Ref: Cir. Adv.72/2010-11 dt. 18.08.2010 for
detailed guidelines and formats ; Further guidelines in Cir. Adv.78/2013-14 dt. 04.10.2013
and Cir. Adv. 109/2012-13 dt. 04.12.2012 )

Exchange of Information sent / received up to : Nil

i) Details of Current Accounts maintained with other than lending banks:

Bank / branch Facility Account name Balance As on
NIL

j) Limits sanctioned to Group Accounts with our bank: - Nil

k) Comments on Group Account/s:- Not applicable
l) Limits sanctioned to Group Accounts with other Banks: Nil
n) Concessions allowed to Company / Group: Nil

Page 5 of 17
 III Nature and value of security (proposed):
(Rs. in lakhs)
NATURE / DESCRIPTION VALUE
Primary:
1. Hypothecation of Machine 16.75
Collateral:
2. Extension of EM of Commercial Building located at Plot No. 167.00
1,2,3,4,5, &6 Lakshmi Nagar, Door No. 127/04 & 05,
Sanrorkuppam Road, Old SF No. 124/1 &124/2 Old TS No. 8/1
Sub Division No. 8/1A, 8/1B & 8/1C, New Re Survey No. TS No.3
Ward E Old Block No 7, New Block No. 17, Sanrorkuppam, Ambur
Town and Taluk Vellore.
Total Securities available 183.75
Security coverage % = 332%

EVR by Panel Valuer:

1. Er. M Jagadeesan dated 18.03.2019 valued the property at Rs.185.20 lakhs (Market Value) and
Rs.167.00 lakhs (Realizable Sale Value).

The offered commercial building is owned by Mr. N Thirunavukkrsu and Mrs T Anitha. Age of
the building is 12 Years and residual life is 35 years. Plan of the construction is approved by The
Commissioner, Ambur vide Approval Plan no. 108/06/F1 dated 13.09.2006. Applicant is paying
Property Tax and other taxes to the Municipal and Local body. EVR also certifies that subject building
is having minor compoundable deviation which do not attract penal action from local body and the
assessed value also do not get affected.

Legal Opinion by Panel Advocate:

Panel Advocate Mr. A R Devarajan vide LSR dated 07.05.2013 given Legal Opinion on the proposed
property

As per the legal opinion given by the panel advocates, the Owner of the property Mr. N
Thirunavukkrsu and Mrs T Anitha is having valid clear, absolute, good, perfect and marketable title to
the property and the title deeds to the property concerned being original and not duplicate or fake. Mr.
N Thirunavukkrsu and Mrs T Anitha, can validly create a mortgage by deposit of title deeds in favour
of the bank by depositing the original sale deed along with other documents as listed in legal opinion.

Veting of Documents By our Panel Lawyer Mr K M Boopathi states that title deeds in possession of
banks are geninue and the mortgage in favour of the bank is still in force and the same is legally
enforceable.

Latest EC No 977 and 978 dated 02/03/2018 for the period of 10 years from 01.01.2010 to
01/03/2018 reveals that the property is in the name of proposed borrower are mortgaged to Indian
Bank Ambur.

Property description by panel valuer and lawyers:

Description As per Legal Opinion As per EVR
(Mr. A R Devarajan) (Er. M Jagadeesan)
Description of the Plot No. 1,2,3,4,5, &6 Lakshmi Plot No. 1,2,3,4,5, &6 Lakshmi

Page 6 of 17
property Nagar, Door No. 127/04 & 05, Nagar, Door No. 127/04 & 05,
Sanrorkuppam Road, Old SF Sanrorkuppam Road, Old SF
No. 124/1 &124/2 Old TS No. No. 124/1 &124/2 Old TS No.
8/1 Sub Division No. 8/1A, 8/1B 8/1 Sub Division No. 8/1A, 8/1B
& 8/1C, New Re Survey No. TS & 8/1C, New Re Survey No. TS
No.3 Ward E Old Block No 7, No.3 Ward E Old Block No 7,
New Block No. 17, New Block No. 17,
Sanrorkuppam , Ambur Town Sanrorkuppam , Ambur Town
and Taluk Vellore. and Taluk Vellore.
Area 5423.25 Sq. Ft. 5423.25 Sq. Ft.
Plot No :1 North of : Plot No.2 North of : Plot No.2
South of: 20ft wide east west street South of: 20ft wide east west street
East of : Cart Tract East of : Cart Tract
West of: Plot No 4 West of: Plot No 4
Plot No : 2 North of : 20ft wide east west street North of : 20ft wide east west street
South of: Plot No: 1 South of: Plot No: 1
East of : Cart Tract East of : Cart Tract
West of: Plot No 3 West of: Plot No 3
Plot No 3 North of : 20ft wide east west street North of : 20ft wide east west street
South of: Plot No: 4 South of: Plot No: 4
East of : Plot No 2 East of : Plot No 2
West of: Plot No 6 West of: Plot No 6
Plot No:4 North of : Plot No.3 North of : Plot No.3
South of: 20ft wide east west street South of: 20ft wide east west street
East of : Plot No 1 East of : Plot No 1
West of: Plot No 5 West of: Plot No 5
Plot No:5 North of : Plot No.6 North of : Plot No.6
South of: 20ft wide east west street South of: 20ft wide east west street
East of : Plot No 4 East of : Plot No 4
West of: Plot No 8 West of: Plot No 8
Plot No:6 North of : 20ft wide east west street North of : 20ft wide east west street
South of: Plot No: 5 South of: Plot No: 5
East of : Plot No.: 3 East of : Plot No.: 3
West of: Plot No 7 West of: Plot No 7

Security verified by Observations of the official

CERSAI verification Details / remarks
CERSAI to be done

b) Security Coverage: (Rs. In lakhs)

Details Overall Our share ( %)
Primary: 16.75 100%
Collateral: 167.00 100%
Total 141.75 100%
Security Coverage 183.75/12.56 1128%
Security Coverage (primary) 16.75/12.56 133%
Date of visit & visited by 05.02.2019 by Mr. Amit, Senior Manager (BM), Ambur Branch and
Mr. P Arun Praksh,
 Confirmation on  Property located in the residential Cum Commercial locality of
saleability Ambur, around 2 km away from Highway.
 Parking and other amenities are available.
 Two Storey concrete built residential house.
 Property is easily accessible by the road and on the by lanes of
colony road.
Compliance of Lease / Not applicable
Tenancy Act guidelines

Page 7 of 17
Name(s) of Guarantor(s) with net worth:

Net worth at the time of last Present Net worth **

Name of Guarantor* assessment
Amount As on Amount As on
Mr. N --- --- Rs. 194.08 29/03/2019
Thirunavukkrsu lakhs
Mr. T Sunil Sabrish Rs. 5.37 Lakhs 29/03/2019
S/o N
Thirunavukkrsu
*Personal guarantee of promoters / directors / Key Personnel, if recommended for waiver, justification
for waiver to be discussed and specific recommendations to be furnished.-

Not Applicable

**Variation in net worth, if any to analysed and reasons for increase / decrease to be furnished.-

c) Availability of ECGC cover and modification, if any, proposed: Not Applicable

III. Post sanction follow up:

a) Compliances:
Nature of Irregularity Pending Likely date of
since rectification
i) Documentation / Inspection irregularities *
ii) Terms and conditions of last sanction which are yet to
be complied with
Not applicable – New Proposal
iii) Non obtention of securities stipulated in last sanction
iv) Whether all documents are in force and enforceable
v) Compliance of New Companies Act, 2013

b) Directions of Sanctioning Authority / MC / ACB / Other Committees /Board : Nil

c) Stock audit / LRMC / LFAR observations with Compliance / Concurrent Auditor’s report /
Observations in last two RBIA reports /rectification on the report/s ( report wise observations
and rectifications / compliance to be furnished )
Not applicable – New Proposal

d) Specific observations / adverse remarks made by CMO in the latest monthly report / stock
Inspection report:
CRM’s Reports submitted up to July
Unit inspection by CRM on --------
Unit Inspections by
Not applicable – New proposal
Unit Inspections by Auditors / Inspector of
Branches / Other officials from ZO on--------
Comments of the Officials

e) Staff lapses, if any, and comments of Zonal Manager, inter alia, action initiated / proposed
to be taken. – Not Applicable

f) Consortium / JLF meetings held during the current/ previous quarters

Date of meeting Major decisions taken Compliance
Not Applicable

g) END USE OF FUNDS (Please refer Loan Policy / guidelines on end use of funds).
Project / Facility wise details to be furnished.
To ensure end use of funds Certificate obtained from Date of the Certificate
Lenders Engineer Not applicable

Page 8 of 17
Chartered Accountant Not applicable
By Branch Manager: Not applicable
Release is made after unit visit & date of visit Not applicable
Release is made direct to suppliers Not applicable
Release is made in stages Not applicable
V. Business:
a. Product: Manufacturing of soles.

b. Place: Currently applicant is having its own manufacturing unit.at S F No 6/1A6 Mathakadupu
Road, Sanrorkuppam , Ambur located on the NH Road of Ambur. It is also near to the various
company and job work units and within the 10 Kms of radius of manufacturing hub.

c. Technology / Process: Manufacturing involves the use of Indigenous as well as Imported

machineries like automatic moulding machine, cutting and stitching machines, Ingredients
Chemicals, Mould and Dies, Glue and Adhesive etc. The Quality and specification of safety
shoes varies from industries to industries. Workers are skilled and semi skilled for operating the
machines which is easily and locally available.

d. Pricing: Pricing of the Product is decided by the purchaser. Order is placed on the pre fixed
price of per pair of Safety Shoes. Pricing is very vital as company is dealing in export of safety
shoes.

e. Raw material inputs: Raw materials used in manufacturing are purchased by the applicant on
basis of purchase order and specifications and character of the shoes to be manufactured as
per their purchaser requirement. But also Company also hold materials of general nature which
will suit for all requirements of safety shoes.

f. Marketing: This product needs intense marketing as product is industry based. But company is
having good export orders and also having branches in foreign to fetch the export orders.

VI. Management Details:

a) Brief profile of Promoters / Key management personnel: Mr. Thirunavukkarasu partner of the
firm aged about 48 years, is the chief promoter of the firm. He is involved in this business
since past 30 Years. Mr. Sunil Sabarish the young champ aged 24 Yrs completed his MBA in
Edinburgh University, London and has the ability to bring the business in the good manner.
b) Track Record – Good track record. Maintaining current account with us where turnover is
good for the last financial year and also for the current financial year.
c) Credentials – Applicant is a high net worth individual and having good financial as well
business support from the family.
d) Capabilities – Financial, Managerial, Technical – Applicant is well established player in
the market and having good future market as dealing in different product.
e) Succession plans: Brothers are involved in similar kind of Business.
f) Governance: Not arises
g) Peers : i) Related – Not applicable
ii) Others – As above
State whether
h) i) the proprietor / partner (s) / Director (s) / guarantor (s) is / are director in) having any
relationship with any senior officials (scale IV & above) of our Bank our Bank / other public /
private sector banks? NO
i) ii) or related to Director(s) of other banks: NO
j) If yes, Whether the declaration as per F-172 obtained from the proprietor /
partner(s)director(s) / guarantor(s) obtained ? Yes / No.
k) If declaration not obtained, the reasons thereof : NA

As per CO:MSMED circular No ADV 002/2016-17 dated 01.04.2016 placed for information:
Ready Reckoner of Structured Loan Products under MSME Sector.

 OCC/PC/Sec OD for limits up to Rs. 25.00 lacs.

Page 9 of 17
SOD limit with 30% margin on land & building. Assessment of limit should be done on
turnover method subject to availability of security value with stipulated margin as per
scheme. Drawing power shall be based on property security value (realizable Sale value).
Stock &Book Debts can be considered as collateral. Unit inspection on monthly basis. Annual
stock & book debt statement with age wise classification of book debts to be obtained for SOD
limits up to Rs.25.00 lacs.

Minimum 100% coverage of Bank exposure (FB&NFB) by way of realizable sale value of
immovable properties (Properties taken as primary and collateral) and LIC policy / NSC /
RBI bonds. In case of Non Fund based facilities viz Guarantee & LC, uncovered portion net of
margin should be covered by way of realizable sale value of properties.

VII Financial Indicators:

(In Rs. Lakhs)
Actual Estimate Projected Projected
Year
Performance Indicators 2017-18 2018-19 2019-20 2020-21
paid up capital 77.90 80.33 83.14 86.27

Reserves & Surplus - - - -

Intangible Assets - - - -
Tangible Net Worth 77.90 80.33 83.14 86.27
Long Term Liabilities 5.79 22.35 19.68 7.36
Capital Employed 105.95 112.27 153.80 163.86
Net Block 89.41 84.50 71.82 61.05
Net Working Capital -5.72 18.18 31.01 32.69
Current Assets 113.69 73.51 90.31 90.20
Current Liabilities 119.41 55.33 59.30 57.51
Curent Ratio 0.95 1.33 1.52 1.57
Debt Equity Ratio 0.07 0.28 0.24 0.09
TOL/TNW 1.61 0.83 0.82 0.75
Net Sales 187.56 94.61 104.07 114.48

Other Income - - - -
Net Profit before tax 1.87 3.46 4.03 4.61
Net Profit After Tax * 1.87 2.43 2.82 3.23
Depreciation 12.85 14.91 12.67 10.77
Cash Accruals 14.72 17.34 15.49 14.00
FACR 15.44 3.78 3.65 8.29
DSCR 3.23 6.74

Comments in brief on Financial Indicators and performance vis a vis projections:

 Firm started its operation in year 2007 and since its incorporation firm is posting profit and having
good sales. Also estimate for the current year and projection previous year which is acceptable on
basis of past performance.
 Applicant is having sufficient cash accruals and net of interest.
 Capital also increasing over the years due to addition of excess income over expenditure.
 TOL / TNW are below 3 for the entire loan period against the maximum permissible level of 6:1
 DER is comfortable at below 2, against the maximum permissible level of 3:1

Page 10 of 17
 Security coverage ratio 41.07, more than the stipulated level of 1.20

a) Comments on the Balance Sheet and Financial Indicators / Reasons for variance in
performance and in financial indicators, if any, from the projection made earlier:
Not applicable – New project

b) Comments on the estimated and actual performance up to a latest month during the
current year and its acceptability vis-à-vis, the past performance.
Not applicable – New project

c) Projections of production, sales, GP, NP, NWC and actual of the same with specific
reference to estimate / projection on which limits were sanctioned including QIS
Statements to be given:
Not applicable

Dun & Brad Street report / report from other reputed agency on overseas buyers / Not Applicable
suppliers obtained
Any major change in the buyers / suppliers from previous years, if so, reasons, if Not Applicable
any
Balance confirmation certificate / letter from buyers ( as on a recent date, if any ) Not Applicable

d) Comments on Auditor’s Remarks / qualitative remarks: NIL

(including contingent liability, items impacting the profit, financial indicators)

e) Statutory dues (such as Sales Tax, IT, ESI, PF etc.) pending as on …………and the impact of the
same on the financials of the company. NIL

f) Court cases / other litigations, if any and the impact of the same on the company : NIL

g) Any adverse market reports / information about the company / group. If so the details and the
comments / clarifications of the company and views / comments thereon. NIL

h) Comments on QIS / FFR statements, Stock statements & MSOD: NIL

Whether QIS / MSOD received in time: Not applicable

If no, to confirm whether penal interest is recovered or nor:

VIII. Financial details of Holding / Group / Investment companies (as per ABS): NIL

Structure of the Group (starting from the parent company to the end company/ies):
Not Applicable

Details about the holding company and latest audited financials: Not Applicable
1) Name of the Investment company : Not Applicable

2) Name/s of Group / subsidiary company/ies: Not Applicable

3) Consolidated financials of the Group: Not Applicable

IX. Rating of the company: RAM Rating Not taken as Advance below Rs. 50.00 Lakhs

a) Internal Credit Rating (Scoring Model for small Business Loan) A

Page 11 of 17
Whether the rating complies with the policy guidelines on Entry Barrier rating grade of the Bank?
(Wherever applicable) - YES

Reasons for downward migration of the rating, if any: Not Applicable

If rating is migrated down ward, whether quarterly review of the account as per guidelines is done by
the competent authority? (Wherever applicable) - Not Applicable
If so, Quarter up to which the review is done : Not Applicable
If not done, the reasons thereof : Not Applicable

b) External Rating by XXXX as per Report dated XX.XX.XXXX: Not Applicable

X. Computation of eligible Term Loan

Assessment:
a) DSCR Calculations
SCR: (Rs. In lakhs)
S. No. Particulars Particulars
2019 2020 2021 2022 2023
A Net profit after tax 2.82 3.23 3.43 4.05 4.23
B Depreciation 12.67 10.77 9.16 7.78 6.62
C Interest on TL 1.07 0.89 0.74 0.60 0.45
D Subtotal (A+B+C) 16.56 14.89 13.33 12.43 11.30
E Interest on TL 1.07 0.89 0.74 0.60 0.45
F Installment of TL 3.99 1.32 1.32 1.32 1.32
G Sub total (E+F) 5.06 2.21 2.06 1.92 1.77
H DSCR (D/G)* 3.27 6.74 6.46 6.48 6.37
I AVG DSCR 14.17
b)

c) CASH BUDGET METHOD: Not Applicable

d) MPBF 2nd method of Lending: Not Applicable

XII. Summary of Assessment of Non Fund Based Limits: Not Applicable

a) Letters of Credit (Import / Inland / capital goods): Not applicable

Assessment to be made as per latest Loan Policy and the raw materials proposed to be procured.

Assessment of Bank Guarantee Limit: Not applicable

XIII. Summary of assessment of Term Loan/ Deferred Payment Guarantee: Not applicable

Takeover of accounts: Not applicable

XIV. Existing / Proposed sharing pattern in case of Multiple Banking /

Consortium:
Not applicable

Page 12 of 17
XV. Impact of foreign exchange exposure of USD 10 mi and above of the
borrower from all sources: ( if covered by natural hedging / synthetic hedging
(forward contracts ), the same

need not be considered as “ unhedged” – subject to confirmation by branch )

Not applicable

Details of Unhedged Foreign Currency Exposures and mitigation proposed:

Not applicable

Computation of additional capital charge on the Unhedged Foreign Currency

Exposure :
Not applicable

XVI Concessions recommended with Cost Benefit analysis:

(Rs. in crs)
Facility Nature of concession ROI as per Risk Based Net Benefit /
pricing / (Loss)
Existing Proposed Commission as per Card
Rate
Nil

XVII Recommendations for any modification in securities / guarantor(s) /

margin / other terms with justification: NIL

XVIII Whether Check list as per Annexure-II is attached (on high value accounts )? –
NOT Applicable

XIX Compliance of guidelines on project lending / Check list on lending to Infra-projects ( as

per applicable formats – Annexure – III ) - Not Applicable

XX. Risks perceived and mitigation mechanism proposed:

XXII. Recommendations:

The captioned proposal is for repair and renovate and upkeeping of machinery in the
unit. Apllicant already holding the secured overdraft under the name of M/s SNT
Enterprises. For this repair and renovate of the Our Bank is having SME/SLP called
MSME MORTGAGE (TERM LOAN)” for sanction of term loan for repai and
renovate and up keeping of machinery. EM of the commercial property in the name
of partner Mr. N Thirunavukkrsu and Mrs T Anitha valued at Rs. 167.00 lakhs (RSV)
and Rs. 185.20 Lakhs (MV) as per EVR dated 18.03.2019 is proposed. Minimum
100% coverage of Bank exposure (FB&NFB) by way of realizable sale value of
immovable properties (Properties taken as primary and collateral) and LIC policy /
NSC / RBI bonds. As per CO: MSMED circular No ADV 002/2016-17 dated
01.04.2106 placed for information: Ready Reckoner of Structured Loan Products
under MSME Sector.

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 In view of the above norms, the note has been placed for consideration:

a) Approval / Acceptance of assessed limits FB : Rs. 10.00 lakhs.

NFB : ---

b) Limits recommended for sanction

(Rs. in lakhs)
Facility Limit Margin Rate of Interest / Period
Existing Proposed Commission
IND SME 30.00 30.00 30% MCLR + Spread = 1 Year
SECURED 8.65+ 5.1= 13.75 %*
OD
IND SME 11.22 3.67 25% MCLR + Spread = 84 EMI (30 EMI
Term Loan 8.65+ 6.30= 14.95 %* Remaining , Renewal)
IND SME 0.00 10.00 40% MCLR + Spread = Repayable in 120
MORTGAGE 8.65+ 2.00= 10.65 %* EMIs of Rs. 9,544/-
5613-0002
Starting from April 19
with One Month
Holiday Period
Total -- 43.67

*Rate of interest fixed as per CO: MSMED Circular No. ADV-27/2018-19 dated 07.06.2018, for MSME
IND SME SECURE for A Rating accounts.

Purpose: Repair renovate and upkeeping of machinery.

c) Securities proposed: (Rs. in lakhs)
Nature of Description Value as on Nature of
security charge
Colateral: Plot No. 1,2,3,4,5, &6 Lakshmi Nagar, Door 167.00 Extn Equitable
No. 127/04 & 05, Sanrorkuppam Road, Old (RSV) mortgage
SF No. 124/1 &124/2 Old TS No. 8/1 Sub
Division No. 8/1A, 8/1B & 8/1C, New Re
Survey No. TS No.3 Ward E Old Block No 7,
New Block No. 17, Sanrorkuppam , Ambur
Town and Taluk Vellore. In the name of Mr. N
Thirunavukkrsu and Mrs T Anitha
Primary Machinery 50.00 Hypothecation
Total 217.00

Valuation: In Rs. lakhs

S No. Name of the Valuation Market Value Realizable value
Engineer Date
1. Er. M Jagadeesan 18.03.2019 185.20 167.00

d) Name(s) of Guarantor(s) with net worth as on Not applicable

Availability of ECGC cover: Not applicable

XXIII Specific terms and conditions recommended (Pre and post disbursement) and waiver of
any general terms and conditions sought:

DOCUMENTS:
1. D-1 Single & Several DPN For advances with floating rate of interest ) by N
Thirunavakarasu and T Sunil Sabarish Partners M/s SNT ENTERPRISES.
2. D-3 Letter of Continuity

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3. D 33 and D 33A Letter from party to Bank confirming the Extension of Equitable
Mortgage over property situated at (full description of property)

Extension of EM of Commercial Building located at Plot No. 1,2,3,4,5, &6

Lakshmi Nagar, Door No. 127/04 & 05, Sanrorkuppam Road, Old SF No. 124/1
&124/2 Old TS No. 8/1 Sub Division No. 8/1A, 8/1B & 8/1C, New Re Survey No.
TS No.3 Ward E Old Block No 7, New Block No. 17, Sanrorkuppam, Ambur Town
and Taluk Vellore.

4. D-105 Agreement for Open Cash Credit (Stocks/Book Debts).

5. D-101 Agreement of Hypothecation of Movables.
6. D-57 Agreement of Guarantee to be signed by Mrs. R Kathija Begum (Mother).
7. F 82, F 164, F 164A, F 172, F189, F 190
8. EM to be created and registered for all EM properties offered as security.
Memorandum of EM to be registered with SRO and CERSAI.
9. Compliance of all Govt guidelines pertaining to creation of EM / Extension of EM
of property as security and a valid EM should be created to be adhered.
10. Branch will link the guarantors SB account to loan account as guarantor with
Updation of PAN and AADHAR numbers.

CHARGES: as per circular GENL 59/2016-17 dated 17.08.2016

1. Processing Charge @ 1.18% for term loans as per Circular
2. CIBIL Charge @ Rs. 100 per report.
3. Documentation Charge @ Rs. 230/- per lakh or part there of subject to maximum
of Rs. 57,500/-.
4. Equitable Mortgage charge @ Rs. 287/- per lakh maximum of Rs. 23,000/-

ASSISTANT MANAGER BRANCH MANAGER

PRE DISBURSEMENT CONDITIONS

General
1. Bank reserves the right to vary the spread at any point of time, by giving due notice to the
borrower.
2. The Bank reserves to itself the right to cancel / suspend / reduce any or all the limits sanctioned
and to alter / amend / vary the terms of sanction including rate of interest at its sole discretion
without assigning any reason whatsoever.
3. Bank reserves the right to increase the rate of interest by modifying the spread in case of
downward migration in rating based on audited / provisional balance sheet.
4. Our rate of interest should not be less than that of any other bank’s rate of interest lending for the
same purpose.
5. In case of MTL, prepayment penalty @ 2% of the drawing Limit or balance outstanding,
whichever is higher, to be paid except if prepayment is from internal generation.
6. Sanction is valid for a period of 3 months only. Subsequently the bank reserves the right to refuse
revalidation. On revalidation, bank reserves the right to change the terms and conditions including
rate of interest based on the review of the proposal at the time of revalidation.
7. In case of non acceptance of some of the terms and conditions stipulated in the sanction, the
borrower should take up with the bank their request for amendment in sanction terms within 15
days from the date of communication of sanction terms by the bank/branch. The amendment
however will be at the sole discretion of the bank on merits
8. Any revalidation and / or modification in sanction terms after 15 days will attract further
processing charges at 25% of the original processing charges.
9. The advance will be released only upon payment of processing fee/upfront fee, EM creation
charges and any other charges as may be prescribed by the Bank from time to time.

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10. Bank is entitled to charge and recover various fees/charges like legal opinion charges, Engineer’s
valuation fee, inspection charges, charges for doing search with ROC, ROC registration charges ,
EM registration charges etc and penalties as indicated in the post disbursement conditions from
the borrower as per the rules of the Bank as applicable from time to time.
11. Acceptance of immovable properties offered as security is subject to the legal opinion
(unqualified) of the Bank's approved lawyer(s), conveying a clear, valid, subsisting and
marketable title, valuation of the property by the Bank’s Approved Engineer and furnishing of up-
to-date certificate showing Nil encumbrance and up-to-date tax paid receipt. The cost to be borne
by the borrower.
12. In addition to these terms and conditions all the facilities sanctioned shall be subject to the Bank’s
rules as well as the directives issued by RBI from time to time.
13. The assets and liabilities statement of persons who have offered their personal guarantee to be
furnished once in a year. Wherever the Net worth is more than Rs.100 lakhs, an affidavit to be
made for the correctness of the details furnished in the Assets and Liability statement.
14. The duplicate copy of the sanction letter to be returned duly signed by the authorized signatory as
token of acceptance of terms and conditions.
15. Over and above the estimated cost, if any, to be borne by the applicants from their own sources.
Similarly, any reduction in project cost, branch to reduce the loan amount in proportionate to the
reduced project cost after maintaining applicable margin.
16. All Statutory approvals required for the project to be obtained before disbursement of the
loan.
17. Firm to route all fee receipts through Current Account with our Bank.
18. Branch to ensure that adequate margin is maintained as per sanction
19. All other terms and conditions as per CO circulars, Loan Policy 2015-16, C R M Policy 2016-17
etc; are to be complied with.
20. Branch to link CIF of the applicant and guarantor to the proposed loan account

POST DISBURSEMENT CONDITIONS

General
21. Branch to release the funds directly to the suppliers and ensure creation of assets and end use of
funds.
22. Branch to ensure change of title in favour of the applicants in all revenue / government records,
including Electricity Board service connections.
23. Branch to open escrow account and ensure that all rent receivables from the leased tenants are
routed through the escrow account
24. Branch to obtain copy of lease agreements from the tenants and keep it in record.
25. Branch to inspect the unit at periodical intervals and record should be maintained.
26. The advance must be used for the purpose for which it is sanctioned. The borrower shall
provide an “ End use certificate “ from the chartered accountant before the next draw down and
incase of last draw down within a period of 30 days from the date of last drawdown. The “end-
use certificate” shall certify that the funds drawn down have been used for the purpose mentioned
in the loan application. Working capital end use certificate has to be submitted every quarter duly
signed by the borrower. The facility is liable to be recalled in case of any deviation in this regard.
Where a unit has not utilized the finance from the lender for the specific purpose for which finance
was availed of, a willful default would be deemed to have occurred, as per RBI guidelines.
27. Renewal / enhancement should be made at least three months in advance and the application
should be accompanied by all the relevant data as required by Bank.
28. Processing charges for renewal of facilities will be charged irrespective of whether the renewal
papers are submitted or not. However, continuation of facilities will be at the sole discretion of the
Bank.
29. Property tax paid receipts shall be produced every year.
30. All assets charged to the Bank shall be adequately insured against all attendant risks at the
expense of the borrower(s). The Insurance policy with the Bank clause (viz. Bank as mortgage,
hypothecate or pledgee as the case may be) shall be lodged with the Bank. The insurance cover
shall be kept in force at all times through prompt renewals and with suitable enhancements to
include any Increase in the value of securities. Bank has tie up with UIIC ltd whose services may
be utilized for this purpose.
31. Machinery, equipment, vehicles, etc., charged to the Bank shall be painted with the Bank's name
or affixed with the bank’s name board. Bank name board with specific mention of the branch

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 name shall be displayed prominently both inside and outside the premises where stocks
hypothecated / pledged to the Bank are stored.
32. Securities offered for one or more facilities and charged to the Bank shall also stand as additional
security for all other facilities now granted or to be granted from time to time.
33. Fixed assets charged to the Bank are subject to valuation at least once in three years or at
shorter periodicity as per the decision of the Bank.
34. Assets charged to the Bank are subject to inspection by Bank’s officials from time to time. Goods
and receivables charged will also be subject to stock audit as per the Bank’s norms. All expenses
incurred in this regard will have to be borne by the borrower(s).
35. The Borrower shall ensure that the balance in the account including the periodical interest
charged / chargeable is well within the drawing limit at all times.
36. All fund based / non-fund based / fee based transactions shall be routed through the account with
our Bank only unless specifically exempted by the Bank. In case of consortium/multiple banking
accounts pro-rata share shall be routed through our Bank. No banking account shall be
maintained with any other bank other than the member banks of the consortium/MBA without prior
permission. A quarterly meeting of Consortium/MBA will be conducted for review.
37. The Borrower(s) shall submit Provisional financial statement within one month from the date of
balance sheet, Audited financial statements within three months from the date of balance sheet
Quarterly /Half yearly unaudited performance statement within one month.
38. Interest will be charged on the last working day of the month on per annum payable monthly basis
or as prescribed by Reserve Bank of India/Bank and shall be serviced within a maximum period of
15 days.
39. The company /firm should not induct a person who is a director on the Board of a company/firm
which has been identified as a willful defaulter and that in case such a person is found to be on
the BOARD, the company/firm would take expeditious and effective steps for removal of the
person from its Board.
40. Bank is entitled to transfer or assign the whole or part of their rights and obligations under/in
respect of the facility to other persons/entities without notice to the borrower
41. The bank will be at liberty to charge penal interest over and above the eligible rate in the event of
any of the following subject to an overall penal interest rate of 2.00% points.

Non submission /delayed submission of renewal data 1%

Non submission/delayed submission of stock statement 1%
Non submission /delayed submission of MSOD and or QIS /FFR statements 1%
Non submission/delayed submission of Balance sheet and quarterly performance details 1%
as per stipulated date
Excess over the DL 2%
Non compliance of terms of sanction within the stipulated period 1%
Default in financial covenants as stipulated in the sanction(for the default period) 1%
Non submission of required Assets and liabilities statement before stipulated date 1%

Mere paying penal interest will not oblige the bank to allow the noncompliance of the requirement to
continue. Branch to ensure close monitoring of the account.

ASSISTANT MANAGER BRANCH MANAGER

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