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Appraisal Note for fresh/renewal /enhancement of MSME Loans of


less than Rs. 100 lakhs (total limit) – Other than MUDRA Loans
Karimnagar
Processing Branch / MSME CPU / Zone Date 14.02.2019
Zone
Asifnagar Loan tracking
Name of Spoke Branch
Branch No.
Date of receipt of proposal at Date of receipt of Date of receipt of Date of submission to
Spoke Branch proposal at CPU / Zone clarification ZO, if applicable

Name of the Borrower M/s. SS granites


ZED Rating of the borrower
PAN BDKPC4953L
UDYOG AADHAAR Registration No. TS03B0006387
G S T No.
Date of incorporation 11.07.2018
Constitution: Sole Prop.
CIN / Partnership Firm Registration No. NA
Address / Location of the unit: Sy.No. 255/A Asifnagar vill, Kothapally Mandal,
Registered Office Karimnagar, TS-505401

Sy.No. 255/A Asifnagar vill, Kothapally Mandal,


Factory Karimnagar, TS-505401

Sector Micro / Small / Medium Mfg / Services


Sub Sector:
IB Code :
Line of activity Granite cutting and Polishing
Customer since:
Chief Promoter / Executive Chatlapally Chandrakala
Sanction of term loan of 80lacs for civil work
Purpose
and machinery purchase
Financing pattern Sole
Advance falls under the powers of ZLCC
Date of last sanction / review & by NA
Date of first sanction & by NA
Current Year :2018-19
Rating / Entry Level Score
Previous Year :
Asset classification as on ____________ NA
Visited by on
Observations of visiting officials:
Latest Unit Visit / Inspection details

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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

I. Individual / Group Exposure: (Rs. in Lakhs)


Particulars Existing Limits Proposed Limits
FB NFB FB NFB
Borrower Working capital xx xx xx xx
Term Loan / DPG xx xx 80 xx
Investments xx xx xx xx
Overseas Exposure xx xx xx xx
LC at Sight (sub-limit) xx xx xx xx
Total xx xx 80 xx
Exposure as per prudential Norms
Group Working capital xx xx xx xx
Term Loan / DPG xx xx xx xx
Investments xx xx xx xx
Overseas Exposure xx xx xx xx
LC at Sight (sub-limit) xx xx xx xx
Total xx xx xx xx
Exposure as per prudential Norms

II. Working for group exposure: (Rs. inlakhs)


Existing Limits Proposed Limits
Accounts FB- WC FB-TL NFB Total FB-WC FB-TL NFB Total
TL 80 -- 80

III. Share holding Pattern


Share Holding Name of Shareholder % Holding
pattern
(as on last financial Chatlapalli Chandrakala 100%
year ended date):
Detailed
Shareholding of 5%
and above to be
furnished.
Others to be grouped
Total 100%
and furnished

IV. Details of Proprietor / Partners / Directors:


Net-
worth as
S. on Designat Passport
Name DOB DIN PAN Address
No ________ ion No.
(Rs. In
lakhs)
1 Chatlapalli Sole Prop 26.09.1969 -- BDKPC495 --- 2-183
Chandrakala 3L Asifnagar,
Baopet,

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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

karimnagar,
TS-505401

V. Details of Guarantors:
Net-
worth
S. as on Designa Passport
Name DOB DIN PAN Address
No ________ tion No.
(Rs. In
lakhs)

Whether
i) the proprietor / partner (s) / Director (s) / guarantor (s) is / are director Yes / No
who is/are having any relationship with any senior officials (scale IV & If yes, details
above) of our Bank our Bank / other public / private sector banks?
Yes / No
ii) or related to Director(s) of our Bank/ other banks: No
If yes, details

VI. Defaulters list:


The following latest defaulters list verified against the DIN / PAN of Directors / Guarantors and certified regarding the
appearance / non appearance of the names in the lists.
Sl. Report as
Details Source Verified on
No. on
CIC Defaulters List – Non Suit filed
1 CIC
( Rs. 1 Cr and above )
CIC Wilful Defaulters list – Non Suit Filed
2 CIC
( Rs. 25 Lakhs and above )
CIC Defaulters List –Suit filed
3 CIC
(Rs. 1 Cr and above )
CIC Wilful Defaulters list –Suit Filed
4 CIC
( Rs. 25 Lakhs and above )
5 RBI Caution List Help Desk
6 OTS list Help Desk
CIC – Consumer Report / Commercial Report /
7 CIC
CIBIL Detect Verification
8 ECGC SAL list ECGC site
9 CIBIL Detect CIC : CIBIL
CRILC
RBI
10 (https://secweb.rbi.org.in/orfsxbrl/customer/)
(to be obtained from ZO by CPU / Branches)
Central Fraud Registry
12 RBI
(to be obtained from ZO by CPU / Branches)
*CIC= Credit Information Company : CIBIL / EXPERIAN / HIGHMARK / EQUIFAX

Comments/Justification on CIC Report:

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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

VII. END USE OF FUNDS (Please refer Loan Policy / guidelines on end use of funds).
Project / Facility wise details to be furnished. New Account
To ensure end use of funds Certificate obtained Date of the Certificate
from
Lenders Engineer
Chartered Accountant
By Branch Manager:
Release is made after unit visit & date of visit
Release is made direct to suppliers Yes / No
Release is made in stages Yes / No

Dun & Brad Street report / report from other Yes / No


reputed agency on over seas buyers / suppliers Details of reports:
obtained
Any major change in the buyers / suppliers from
previous years, if so, reasons, if any
Balance confirmation certificate / letter from
buyers ( as on a recent date, if any )
VIII. Present position of account
a. With our Bank: New Account (Rs. In Lakh)
Balance as Excess /
Existing rate of int. /
Facility Acct No Limit DL on overdue
Commission
since

a. i. Operations in the account during last 12 months: New Account (Rs. in lakh)
Average Highest Lowest Average
Facility Turnover Income earned
utilization Balance Balance Balance
OCC
Term Loan
Bank
Guarantee
Letter of credit

a. ii. Excess allowed in the account : NA ( Rs. in lakh)


No. of Occasions Maximum amount Minimum amount

a. iii. Adequacy of drawing power: (Rs in Lakhs)


Based on stock statement as on : NA
Stocks of RM/WIP/FG
Receivables
Total
Less: Sundry Creditors
Paid stocks
Less: margin 25%
Drawing power
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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

Balance outstanding

b. Position of borrower’s accounts with other Bank(s) (Balance as on a recent date)


(Rs. in lakh) Not Applicable
Fund Based Non Fund Based
Name of the
Bank Balance Rate of % Balance
Limit % share Limit
as on date Int. share as on

c. With Financial Institutions: - (Rs. in lakh) Not Applicable


Name of the Overdue Since when
Balance as on
Instituti Limit / DL
date Principal Interest
on

d. i). Limits sanctioned to Group Accounts with our Bank: NA (Rs. in lakhs)
Limit Asset
Name of the
Branch classification as Credit Rating as on
Group account FB NFB on

d. ii). Limits sanctioned to Group Accounts with other Bank / Financial Institution: NA
(Rs. in lakh)
Bank / Branch / Limit
Name of the Balance o/s Asset classification
Financial
Group acct FB NFB as on as on
Institution

e. Value of the account :New Account (Rs. in lakh)


Last year Current year
From 1.4.
From 1.4. to
to
31.03.
____________
Interest Income earned
Commission earned
(remittances / bill / LC / Guarantee)
Forex turnover
LCs established & % to Total LC limits
Forex Turnover % to Total export credit limits
Ancillary business (Remittance, IBC/OBC, Int / Dividend
warrants etc).
Deposits from the borrower (Average)
Deposits through the borrower during the year
Consortium leadership charges (if applicable)
Processing charges on FB & NFB limits
(indicate amount and date on which collected)
Other charges recovered on FB & NFB limits
(indicate amount and date on which collected)

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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

f. Concessions allowed to Company / Group


(during last 12 months period ending .........) : NA in lakh)
Authority
Extent of Concession Whether
and
Facility Limit concession in force continuation If yes, Justifications
sanction
extended upto recommended
reference

g. Compliance of Previous sanction No. dated sanctioned by


New Account
Feedback report submitted on Na
Terms and conditions pending for compliance, if any Na
Reason for pending and expected date of compliance Na

h. Details of irregularities in latest RBIA report dated __________ of


_________________________ and branch compliance: Not Applicable
Irregularities observed by Branch Inspector Branch reply / Compliance

i. Details of irregularities in latest LFAR / other inspection report dated __________ of


_________________________ and branch compliance: Not Applicable
Irregularities observed Branch reply / Compliance

IX. Nature and value of existing security: New Account (Rs. in lakh)
Date of
Legal Charge
Engineer creation
Nature of Scrutiny CERSAI created
Description Valuation of EM
security Report Regn. No. with
Details and
details ROC on
MOTD

Primary:

Collateral

INSURANCE on Securities: New Account


Name of
Policy valid
Security Insurance Policy No. Sum Assured Risks covered
upto
company

Personal guarantee of the following:


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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

Networth
Name of the guarantor relationship As on
(Rs. in lakhs)

X. A Brief about Manufacturing process / activity of the unit and industrial


Scenario:

GRANITE
GRANITE BLOCKS
BLOCKS
(Raw
(Raw Material
Material to
to purchase
purchase from
from
Quarries)
Quarries)

CUTTING THE BLOCKS IN


TO PIECES

POLISHING
POLISHING THE
THE CUTTING
CUTTING
PIECES
PIECES
(FINISHED
(FINISHED PRODUCT)
PRODUCT)

SALES &
MARKETING

DOMESTIC MARKET INTERNATIONAL


MARKET

Product: The activity of the firm is to cut the granite blocks through cutting machines and later
stage polishing the cutting pieces and to sale the finished(Polished) granites.
Technology / Process: Process consists of purchase of raw blocks from quarries nearby and
the blocks are cut in to slabs by use of cutting machines. Then these blocks are polished and dried
and the suitable paint is coated and is supplied to the market.

Place: The Unit is located in core industrial area in the outskirts of Karimnagar City, where many
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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

units of Granite Cutting and Polishing are present. Telangana state has got significant granite reserves
spread all over the state, which can be used for construction and as slabs and tiles. Warangal,
Khammam and Karimnagar districts of Telangana has deposits of different varieties of granite such as
Tan Brown, Blue, Red and Grey granite. Telangana government is also providing subsidy for capital
investment of Rs. 20.00 lakhs or 15% of cost of the project whichever is less
Machinery: The firm is being established core area which is very near to quarries and the
transportation cost will be minimal. The machinery required are Cranes for lifting the Granite Blocks,
slabs cutters and polishing Machines, which are being brought in India. The machineries being used
are of latest/advanced technology. These will significantly reduce the time of processing and cost.
Marketing: The buyers from all parts of India as well as direct & indirect exporters and their
representatives will come to the factory location to select the required Granite Slabs/Tiles. As the
output i.e. Tan Brown Granite Slabs having large demand to use in all kinds of civil structures both for
commercial as well as domestic usages, as and when the unit produces stocks the buyers will lift the
stock.
The buyers usually order the stock on advance basis. After selecting the model & item, they will book
the stock by giving measurements as well as advance amounts. The manufacturer is no need to
bother on marketing & collection, because of the product’s high demand & wide marketability
Domestic Market: In Indian Market also the Tan-Brown quality Granite is used by many commercial
complexes, government projects & even for domestic housing purpose. In recent past, many of the
people have shifted from marbles to granite.
Indian Granites are available in different hard rocks such as black, grey, pink, multi coloured etc.
These rocks upon polishing give almost mirror finish and are not affected by dilute acids, vagaries of
weather etc. For these stable properties they are in great demand in India & abroad for Monuments,
Tombstones, Panels Slabs, Tiles etc. Granite Industry in India is expanding very rapidly and
furthermore, the unit had existing market in the form of their sister concern

Industrial scenario:
The Unit is situated very nearer to the quarries which have sufficient production of granite blocks.
There are around 50 quarries in surrounding areas of the unit and they are producing mostly the Tan
Brown colour granite blocks. There are about 30 quarries in Odyaram & Asifnagar Village and
surrounding areas which have the production of Tan brown colour granite blocks. The granite blocks
are also available at Manakondur, Choppadandi, Pegadapalli, Sulthanabad Mandals. Maple red and
black colour granite is also available in Warangal and Khammam areas. We will not face any problem
in getting the required raw material.
The area is well connected by roads& railways and having good market facilities also does not pose
any hindrance for transportation, loading and unloading activities. The location is besides Karimnagar-
Kamareddy State Highway. The nearest railway station is located at Karimnagar which is 20Kms.
away from the Unit Location

Input related:
The process is granite cutting and polishing and the availability of raw material is abundant as the firm
is close to Granite mines, abundant availability of raw material is present and the cost for
transportation of blocks to site will be very less.
Karimnagar district is famous for Granites and the raw material availability is not at all a problem.
There are plenty of granite quarries from where the unit will get raw material. According to the
geologists, granite blocks are available for the future period of 30 years

XI. A. Key Financial Indicators: (Rs. in lakhs)

Particulars 2023-24 2024-25


2019-20 2020-21 2021-22 2022-23
Sales/Revenue (Net) 45.76 14.12 10.12 8.73 8.14 6.98
Other Income 1 1.26 1.32 1.39 1.46 1.53
Profit & Operating Profit 8.12 14.32 17.17 18.39 18.62 21.53
Loss Net Profit 1.55 7.47 11.49 13.87 15.27 19.34

Fixed Assets (Net) 103.10 89.06 76.98 66.59 57.64 49.92


Non Current Assets 7.43 11.15 14.88 19.60 22.32 25.32

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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

Current Assets 21.88 27.08 32.89 37.00 41.82 47.06


Paid up Capital 54.90 56.45 62.47 71.11 80.89 90.94
TNW 56.45 62.47 71.11 80.89 90.94 102.64
ANW 56.45 62.47 71.11 80.89 90.94 102.64
Balance Long Term Liabilities 63.13 51.29 39.46 27.62 15.78 11.84
Sheet Short Term Liabilities 11.84 11.84 11.84 11.84 11.84 3.95
NWC 9.04 13.55 18.71 22.33 26.76 39.23
TOL/ TNW 1.35 1.04 0.75 0.52 0.34 0.19
Current Ratio 1.70 2.00 2.32 2.52 2.78 6.01
Debt Equity Ratio 1.12 0.82 0.55 0.34 0.17 0.12
DSCR 1.57 1.56 1.69 1.77 1.82 1.97
Financial FACR - - - - - -
Ratios EBIDTA/ Sales (%) - - - - -
PAT/Sales (%) 0.02 0.07 0.09 0.11 0.12 0.14
Interest Coverage
3.25 4.14 5.15 6.37 8.23 13.37
Ratio
Cash Profit 14.80 21.07 22.72 23.18 22.99 25.42
Others NFB Limits - - - - - -

X. B. Comments on financial indicators and compliance of benchmark norms:

Parameter Bench- Actuals Compliance Comments / observations about compliance, Previous


mark to norms year estimates vis-à-vis actuals and current year
norms Yes / No Estimates & Next year projections
Net Sales NA NA
Net Profit NA NA
TNW NA NA
ANW NA NA
NWC NA NA
Current
Ratio
(excl
AMTL)
TOL/TNW
DER for
TL
Interest
Coverage
Ratio
DSCR
FACR
Security
coverage
Ratio

X. C. Comments on Auditor’s Remarks / qualitative remarks:


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

X. D. Statutory dues (such as Sales Tax, IT, ESI, PF etc.) pending :

X. E. Funds Flow analysis: (Rs. in lakhs)

FUND FLOW STATEMENT


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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

Long Term Sources


Long Term Uses
Long term Surplus / Deficit

Short Term Sources


Short Term Uses
Short Term Surplus / Deficit

X. F. Comments / observations on Funds Flow Analysis.

X. G. Projected Cash Flow statement: (Rs in lakhs)


Apr Mar Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Cash Inflow
Sales
Receipts
Other
Receipts
Total cash
inflow
Cash Outflow
Payment to
raw
materials
Gen &
admin exp
Interest
Repayment
of Loan
Total Cash
outflow
Cash
Surplus /
(Deficit)
Bank
Balance
Closing
Balance
XII. Assessment of Working Capital:- (TURNOVER METHOD) (Rs.in lakh)
Not Applicable
For Micro & Small For Medium
Enterprises Enterprises
Projected Annual Turnover A
WC required 25% of A B
Min. Margin from borrower
C
20% of B
Min. Bank Borrowing 80% of B D
Actual NWC available E
Margin stipulated F Higher

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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

of C or E
Limit permissible D B–F
Adequate care should be given in case of accounts wherein the period of working
capital cycle is less, like Petrol Bunks etc.

XIII. A. Assessment of Term Loan (Fresh):


(i) Purpose Granite cutting and polishing
(ii) A Brief about The main activity of the firm is to cut the granite blocks through cutting
requirement of assets machines and later stage polishing the cutting pieces and to sale finished
to be purchased / granites. For which unit need 3Nos. 2.5 Mtr.Single blade cutting
acquired, present machines, and also requires 3Nos. manual polishing machines. And the
unit is proposed to install gantry crane for moving the blocks, cutting
stage of project (if bocks to various places with in the factory. They are also planning to buy
already commenced) distribution panel board, Transformer 250KVA, Armud cables, blades,
etc. and Rail line.
(iii) Necessary approvals Yes
obtained Land Conversion Land conversion certificate obtained on
31.10.2018 No: N/6752/2018
Pollution control Obtained on 26.05.2018 No:ACK-
Board 148/TSPCB/RO-RGM/2018-164
Gram Panchayat Permission for setting up of the firm is obtained
from GP letter dated 03.07.2018
Firm Registration Firm registered with Registration and stamps
dept with No : 28 of 2018 dated 07/01/2019
GST Registration Certificate No:36ADOFS6986L1ZX
(iv) Details of Proforma S Name of Description Amount
invoice / Estimate No. Supplier incl.GST
1 Bhagwathi . Granite vertical single 39.55
machine tools cutting machines nos.3
2 Vishwakarma Gantry Crane 13.14
Eng.tools
3 Srin ganesh Distribution panel board 3.21
electrician
4 BGM industries Manual polishing machines 5.31
no.3
5 Esennar Transformer 315KVA 7.98
6 Diacore Blades 4.25
7 Elgi Air compressor 1.16
8 Ragi ramulu & Motor & pump set &cable 2.00
lingamurthy
9 Bhagwathi Rail line 3.67
machine tools
10 Mud pump, mud Sri ganesh electrician 2.15
motors & crane
Total 82.45
Eligible loan amount Machinery Civil work
(v) (Rs. In lakh Cost 82.45 31.04
Less: applicable margin 20.61 9.31
Eligible Loan amount 61.84 21.73
Loan amount requested by borrower 60.00 20.00
Loan amount to be considered 60.00 20.00
(vi) Repayment details Door to Door Tenor (Total Term) ____ months 84 months

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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

Of which Holiday Period ____ months 5 months


Repay Period ____ months
Monthly Principal repayment Rs. --

Monthly Interest repayment To be repaid then and


there
Holiday period interest To be repaid then and
repayment there.

XII. B. Review of existing Term Loan: New Account


Whether Terms and conditions stipulated in sanction complied
Whether asset creation out of existing Term loan completed
Asset inspected by and on
Observations of inspecting official

Position of account Limit:


DL:
Balance:
Whether repayments are regular
We recommend for review of existing term loan/s.

XIV. DSCR Calculation


Year >>> 1 2 3 4 5 6 Total
Net Profit 1.55 7.02 10.64 12.78 14.04 17.71 19.91
Add: Depreciation 13.25 14.04 12.08 10.39 8.95 7.71 6.65
Add: Interest on Term Loans 6.57 6.85 5.68 4.52 3.35 2.19 1.02
Gross Funds Generated (A) 22.65 29.19 29.68 28.98 27.62 27.60 27.58
Interest on Term Loans 6.57 6.85 5.68 4.52 3.35 2.19 1.02
Add: Principal repayment on
-- -- -- -- -- --- --
existing Term Loan/s, if any
Add: Principal repayment on
7.89 11.84 11.84 11.84 11.84 11.84 11.84
proposed Term Loan/s
Total Repayments (B) 14.47 18.69 17.52 16.35 15.19 14.02 12.86
DSCR (A / B) 1.57 1.56 1.69 1.77 1.82 1.97 2.14
Average DSCR
1.96
(Total of A / Total of B)

XV. Assessment of NFB Limit: Not Applicable


a) Letters of Credit (Import / Inland / capital goods): Assessment to be made as per latest Loan Policy:

Inland LC / Foreign LC (Rs. In lakh)


1 Annual purchase/import
2 Out of (1) on credit basis
3 Out of (2) on usance LC basis
4 Average of (3) per month
5 Lead time (no. of months)
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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

6 Usance period (no. of months)


7 Usance LC requirement (5+6) X (4)
b) Guarantees (Performance / Money / Advance Payment / Overseas / bid
bond):NA
Generally, the applicants need to furnish BGs in favour of its clients for the following purposes:
i) Earnest Money Deposits
ii) Security Deposits
iii) Advance Payments
iv) Retention Money
v) Sales Tax, Commercial Tax and Excise Duty payments

Based on past trends and projected performance, the limit requirement to be assessed as
under: Not Applicable (Rs. in lakh)
1 Opening Balance as on :
2 Guarantees required ( a+b+c+d+e)
a Earnest Money Deposits : @ % of additional tenders worth Rs.
lakh during FY / from to .
b Security Deposits : @ % of tenders worth Rs. lakh expected to
be awarded during
c Advance Payment Guarantees: @ % of new orders worth
Rs. lakh expected during
d Retention / Maintenance Guarantees: @ % of the jobs valued at
Rs. lakh expected to be completed during
e Guarantees on account of Sales Tax, Commercial Tax and Excise Duty
payments :
3 Total of (1+2)
4 Less: Bank Guarantees to be cancelled during
5 Bank Guarantees Limit required ( 3 – 4 )
6 Bank Guarantees Limit recommended for sanction
Details of Existing Guarantees outstanding: Not Applicable
Date of
Sl Date of Amount of Cash
Beneficiary expiry of Remarks
No. issue Guarantee Margin (%)
Guarantee

Details of Existing Letter of Credits outstanding: Not Applicable


Whether
Due date
Sl Date of Amount of Cash accepted
Beneficiary for
No. issue LC Margin (%) for
payment
payment

XVI. In case of takeover, whether takeover guidelines as per Bank’s Loan Policy
have been complied: NA

XVII. Security Proposed: (Rs. in lakh)

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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

Legal Latest
Engineer Nature of security
Nature of Scrutiny Security
Description Valuation (Exclusive/ Paripassu /
security Report inspection
Details II charge)
details by / on
--
Machinery to be purchased -- 82.45 Exclusive/Hypothecation

By
EM of factory land in D.RadhRani
sy.no.255/A measuring in a (BM)&
total extent of area of land is K.Mahender
25Guntas situated at asifnagar (ABM)
vill, karimnagar belongs to 01.02.2019
Mr.Busa Kumara Swamy and 46.79 lacs
&
Primary the property leased to M/s.
EVR by
SS.Granites. (Value taken for 22.01.2019 By Exclusive/EM
M.Thirupathi
only 25Guntas out of 30.75 reddy dated N.KiranKum
Guntas as the NALA 04.12.2018 ar &
conversion is only for 0.25 K.Mahender
Guntas) is valued at 15.75 lacs 16.02.2019
and Estimation for
Construction of factory Shed
is 35.50lacs

EM of Cummercial cum
Residential building bearing
H.No. 2-84/3 having plinth
area of ground floor is
52.52lacs By
1350Sq.fts, First floor is
N.KiranKum
1350Sq.fts and Second floor is ar &
Collater 1350Sq.fts constructed in a 22.01.2019
EVR by
Exclusive/EM
M.Thirupathi K.Mahender
al total extent of area of land is reddy dated 16.02.2019
. 332Sq.yds situated at near 03.12.2018
indianbank asifnagar branch,
asifnagar vill, Karimnagar
belongs to Mr.Chatlapelly
Rayamallu
Total security value 181.76 lacs

Total value of EM properties 99.31 lacs

Observations of official/s who visited the security:

Personal Guarantee:
Name of the guarantor Relationship Networth As on

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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

(Rs. in lakhs)

XVIII. Security Coverage:


(Rs. In lakh)
Total Limits Proposed A 80.00
PRIMARY SECURITIES 129.24

Total Primary Security B 129.24


COLLATERAL SECURITIES 52.52

Total Collateral Security C 52.52


Of (B) and (C) above, value of immovable property/ies D 99.31
Total Security Coverage (B + C) / A 227%
Immovable Property security coverage D / A 124%

XIX. Compliance of norms of MSME Structured Loan Products like INDSME Secure,
Tradewell etc. NA
Norms Compliance

XX. The copy of Audited financial statements for the FY ending ---------- was sent
to the Auditors M/s --------------- and auditors vide their letter dated --------
confirmed the correctness of the same. New Account

XXI. Rate of Interest, Concessions in ROI / other charges recommended with


justifications:

XXII. Recommendation: (Rs. in lakh)


Facility Limit Margin Rate of Interest / Period
Commission
Existing Present 84 months which
Term loan 80.00 includes holiday
period of 5
months
Sub Sector Code: 39 IB Code: 6399

Purpose: OCC / OD: NA


Term Loan: 80.00
LC : NA
Bank Guarantee: NA

Activity: The activity of the firm is to cut the granite blocks through cutting machines and later stage
polishing the cutting pieces and to sale the finished(Polished) granites

Security:
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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

Nature of Description Value as on Nature of


security charge
Primary Hypothecation of Machinery to be purchased Hypothecation
82.45
EM of factory land in sy.no.255/A measuring in a total extent of 46.79 lacs Equitable
area of land is 25Guntas situated at asifnagar vill, karimnagar Mortgage
belongs to Mr.Busa Kumara Swamy and the property leased to EVR by
M/s. SS.Granites. (Value taken for only 25Guntas out of 30.75 M.Thirupathi
Guntas as the NALA conversion is only for 0.25 Guntas) is valued reddy dated
at 15.75 lacs Estimation for Construction of Shed is 35.50lacs 04.12.2018

Collatera EM of Cummercial cum Residential building bearing H.No. 2- 52.52lacs Equitable


84/3 having plinth area of ground floor is 1350Sq.fts, First floor Mortgage
is 1350Sq.fts and Second floor is 1350Sq.fts constructed in a EVR by
total extent of area of land is 332Sq.yds situated at near M.Thirupathi
indianbank asifnagar branch, asifnagar vill, Karimnagar belongs reddy dated
to Mr.Chatlapelly Rayamallu 03.12.2018
Total 181.76
Total Immovable Security 99.31

Guarantor/s:
Present Net worth
Name of Guarantor
Amount Date
Yedla Shankar 124lacs 06.02.2019
Nevuri Venkataramana 43.61lacs 06.02.2019

Repayment Schedule for Term Loan


Total Period: 84 Months
Holiday Period: 05 Months
Repayment: 79 monthly Equated Monthly Installments (EMI) repayments of Rs. 3,03,069/- per
month and interest to be served during Holiday Period. The firm has proposed repayment to start from
july 2019, hence, total holiday period will be 04 Months

Terms & Conditions:-


A. Pre Release Conditions:
1. The declaration from the company to be obtained stating that they will maintain the key
financial ratios as per Bank’s policy.
2. Branch to complete documentation as per CO norms.
3. All Charges including EM Creation. CIBIL, CERSAI, Processing Fee, Documentation
Charges etc, as per latest guidelines from CO to be recovered.
4. Legal audit to be conducted for advances above Rs. 100.00 lakhs as per CRM policy
2016-17 (as per format enclosed in Loan Policy 2016-17) and the compliance on the
same shall be as per the norms laid out by the bank. A copy to be submitted to ZO.
5. Pre release audit to be conducted and permission from ZO to be obtained before release
of loan.
6. All other terms and conditions as per CO circulars, Loan Policy 2016-17, Credit Risk
Policy 2016-17 etc are to be complied with.
B. Post Release Conditions:
1. Creation/ Extension of EM of properties and Reg of MODTD to be completed.
2. Branch to obtain the valuation of machinery from our panel engineer.

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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

3. Branch to obtain the title deeds & link documents for the properties/securities and
ensure all the documents are available as required by Legal opinion for valid EM
creation.
4. Branch has to obtain title deed genuineness certificate. Copy of the same to be submitted
to ZO.
5. Branch shall ensure that assets charged to our bank are adequately and
comprehensively insured with bank clause.
6. Branch to closely monitor the account and Branch to ensure end use of funds.
7. Branch Officials has to make regular visit to the unit, stocks are to be inspected and CRM
report to be submitted every month.
8. Stock & Age-wise book debts to be obtained on monthly basis, DP to be arrived and DP
to be marked accordingly.
9. QIS/MSOD statements shall be obtained as per existing CO norms and operating limit shall be
fixed accordingly, failing which penal interest to be levied as per CO guidelines.
10. Branch has to explore more business opportunity through the customer and their links.
11. Branch officials to make regular visit to the unit and securities are to be verified &
tagged through Geo-tagging as per CO guidelines.
12. Feed Back report along with compliance of all terms and conditions to be submitted to
Zonal Office within 15 days.
C. Mandatory/Non Mandatory Covenants: As per Co circular No. ADV-110/2016-17
18.08.2016, SUB : Adoption of Standard terms and conditions.
D. General terms & Conditions:
All other General Terms & conditions to be followed by branch. Branch to comply with internal
guidelines of HO circular no MAIN: ADV 64 /2008-09 DT.16.07.2008 with respect to
documentation, disbursement and monitoring of account.

Other terms and conditions:


Branch to comply with internal guidelines of HO circular no MAIN: ADV 64 /2008-09 DT.
16.07.2008 with respect to documentation, disbursement and monitoring of account.
Beside, following terms to be complied with:
1. CERSAI entries to be registered within 30 days from date of creation /modification.
2. Processing charges to be recovered as per latest Norms.
3. CIBIL, EM Creation and CERSAI charges to be recovered from the borrower
4. Documentation strictly in compliance with documentation manual,
5. Loan to be disbursed only after compliance of following:
i. Issue of Sanction letter on branch‘s letterhead in duplicate and retaining one copy duly
accepted by borrowers and guarantors with all terms and conditions and to be kept with
the documents.
ii. Obtain of Satisfactory credit opinion from the existing bankers of the party.
iii. Obtain of guarantee from all the members discussed above.
iv. Recovery of processing charges as per Bank’s rule.
v. Pre –release audit, legal audit to be done & release permission from the sanctioning
authority.
6. Branch Manager to go for independent enquiry for the mortgaged/ proposed property before
the release of limit and submit a certificate to Zonal office that the all the properties
mortgaged / proposed to be mortgaged are clearly demarcated, have an independent access
to it and the valuation are as per the present Market rates.
7. Branch to ensure the end use of funds and there is no diversion of funds.
8. The company/ firm should make payments to staff, vendors and clients electronically except
for office petty cash requirement.
9. The company to receive all payments electronically except when cheques are drawn on
banks, which are not on NEFT / RTGS.
10. The Borrower to agree that every request of the Bank, will allow the Bank’s any nominee,
servant or Manager of the Bank to inspect the Borrower’s business premises for ensuring that
the Borrower had duly complied with the above terms.
11. Branch to obtain up to date certificate showing NIL encumbrance and up to date tax paid
receipt at the time of documentation and once in a year thereafter.
12. Feed Back Report on compliance of terms and conditions of sanction based on HO circular
adv. 153/02-03 dt 11.03.03 (applicable to all borrowal accounts above Rs 50 lakhs sanctioned
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A/c : M/s. SS Granites Branch / MSME CPU / Zone: Karimnagar

Spoke Branch: Asifnagar Note No. Date: 14.02.2019

by CO/HO). Please also refer HO/Credit Circular no ADV 82/05-06 dt. 30.09.2005 & HO:
CPGD Cir No. ADV .69/2007-08 dt. 02.01.2008.
13. Terms and conditions as per standard terms as per HO/CPGD circular adv. 128 dt 29.02.2K
and HO/CD letter ref: CDN/GEN/CIR/001/2007-08 dt. 05.04.2007.
14. Branch Manager’s certificate of compliance to be furnished in accordance with HO/CD
circular no adv 117/01-02 dt 27.02.02. (Please also refer circular adv 153/02-03 dt 11.03.03.
15. All assets hypothecated/ mortgaged to bank are to be comprehensively insured, with bank
clause, at the cost of the company.
16. Branch to complete pre-release audit and seek permission for release.
17. Branch to complete EM formalities/ Extension/ MOD etc. before release.
18. Branch to ensure insurance for full value of stocks.
Notwithstanding anything contained in the documents for advance, we reserve our rights to recall
the entire amount advanced together with interest and other charges or any part thereof if the
bank apprehends or has reason to believe that the entire loan amount or part thereof has been
used for any purpose other than for, which it was granted. We reserve to ourselves the right to
cancel / Suspend/reduce the above facility and to alter/ amend / vary the terms of our sanction
including the rate of interest at our discretion without assigning any reasons.

Appraising Officer/s

Sanctioning Authority

Placed for approval of ZLSCC / ZLCC (if falls under ZLSCC / ZLCC powers):

Deputy General Manager/Zonal manager

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