UCO BANK

Head Office:
FORM – III

SMALL SCALE INDUSTRIES

APPLICATION FORM FOR CREDIT
FACILITIES OF OVER
RS. 15 LACS & UPTO RS. 1 CRORE

UCO Bank

Ludhiana.

1.1 Name of the Unit :

(in block letters)

1.2 Constitution (please strike out which : Proprietorship/Partnership firm/ Private

are not applicable) Limited/Public Limited Company/
Cooperative Society.

1.3 Name of the business house/group :

(if any)

2.1 Registration No. :

(as given by the District Industries
Centre/Directorate of Industries)

2.2. Date of Incorporation/Commencement :

of Business.

3. Business Address with telephone/ :

telex No.
3.1 Registered Office :
3.2 Administrative Office :
3.3 Factory :

4. Background of the Proprietor/ :

Partners/Directors (Please furnish
For each person as per Annexure I)

5. Brief Description of the Industrial

Activity
5.1 Existing :

5.2 Proposed
6. How the Activity was financed so far.
(Ito be filled up in case of existing unit only) (in ‘000s of Rs.)
ONLY WORKING CAPITAL LIMITS ENJOYED
Source of Funds Security Rate of Repayment Present Amount of
Interest per month Outstandings Default (if
(*) any)
UCO Bank
EPC /CC/
Rs.16 lacs
MTL

7. Past Performance (To be filled up by existing unit only)

(In (‘000s of Rs.)
Particulars Last Year Last but One Year Last but Two Years
(31.03. ) (31.03.) (31.03.) (31.03.)
Turnover
Net Profit
Retained Profit
Monthly Turnover for last twelve months.

As Per Separate Sheet Attached

8. Arrears in Statutory Payments (if any)

a) Income Tax : No
b) Sales Tax : No
c) Provident Fund : No
d) Employees State Insurance Corpn. : No
e) Others (specify) : No

9. If the unit is an ancillary unit, the : No

undertaking to which it is entering and
its address.

10. Name of the associate concern (s), if any : Nil

10.1 Nature of Association : No
Amount invested
10.2 Nature of activity : .
10.3 Items traded/manufactured : Nil .
10.4 Turnover and profit during
preceding three years.

11. Employment Present Proposed

Executives
Supervisory
Administrative/Office Staff -
Skilled Labour
Unskilled Labour
12. TECHNICAL FEASIBILITY
12.1 Name of the Product(s) including :
bye-products & its (their) use

12.2 Manufacturing Process, in brief :

(indicate to the extent possible,
stage-wise capacity data,yield/
conversion data, material flow, etc.)

12.3 Capacity (No.. of Units/Quantity in kg./Volume in litre per annum)

Capacity for each Licensed. Installed Operating
product

No. of working days in a month :

&
No. of shifts in a day. :
12.3 Locational advantages of existing and/or
proposed premises with reference to
i) absence of civic restrictions.
ii) Proximity to the source of raw materials
iii) Market of the product
iv) Availability of
(a) Power
(b) Water
(c) Labour
(d) Transport

v) whether clearance has been obtained :

obtained from the Pollution Control
Authority.
12.5 LAND & BUILDING

Area/Plinth Area Value

(in sq.metres) (in 000s of Rs.)
Existing Proposed Existing Proposed
Factory Land
Factory Building
Ancillary Building
Open Storage Space

12.6 Type of soil and load bearing capacity

(enclose test report)

Enclosure:
 a) certified Xerox copy of sale / lease deed
b) certified Xerox copy of the Government order converting the land into industrial
land, if applicable.
c) locational map
d) certified Xerox copy of the site plan of the land and blueprints of the
buildings duly approved by corporation / municipal / panchayat.

12.7 PARTICULARS OF MACHINERY & OTHER FIXED ASSETS

As per Annexure II

12.8 Necessity & purpose for the proposed :

investment/addition to factory
premises/machinery(in case where such
investment is intended) for achievement of
the anticipated turnover.

12.8 RAW MATERIALS/COMPONENTS

(Please mention about the imported and
indigenous items separately)

Name / Brief Description of the Items.

A B C D
m.s.round/hex m.s.flat
Quantity Required
Sources of Supply
Minimum Purchase
Quantity
Lead/Procurement Time
Whether available
throughout the year
If answer to the above is
no, then no. of months it is
available.

13. UTILITIES (Give comments on requirement, availability, adequacy, qualitative

aspects etc.)
a) POWER:
Contracted Load
Connected Load
Future power consumption (in no. of units)
per month stand-by Arrangements Gen Set 60 KVA
(Enclose certified xerox copy of sanction
for power connection)

b) WATER :

(Enclose certified copy of sanction

for water connection)
c) FUEL :

d) OTHERS (specify)

14. QUALITY CONTROL

14.1 Details of arrangement made for quality control. If EPO/ISO
specifications are followed, no. of BIS/EPO/ISO standards
and the particulars thereof should be provided.
14.2. Particulars of R & D activity
Proposed :

15. ECONOMIC FEASIBILITY

Marketing (mention separately for each product).
15.1 Whether the product is reserved
Exclusively for the SSI Sector :
15.2 Name of the Major customers :

15.3 Region/Area where the product is/

15.4 Extent of competition & No.
of units engaged in similar line
in the area.
15.5 How does the units meet/propose
on the competitive advantages enjoyed
by the unit)
15.5.1 In price and quality, how does the
unit’s product compare with those of
its competitors.
15.5.2 Is the unit selling direct to its customers?
If so, please furnish details like sales
Force, showrooms, depots, etc.
15.5.3 If a selling/distribution agency has been
appointed, its name, period of contract,
commission payable, period by which the
bills will be paid by it, etc.
(enclose copies of agreement, wherever
such agreement has been entered into).
15.6 Nature and volume of orders/enquiries on
hand (certified Xerox copies to be furnished)
15.7 If the unit is export oriented, please furnish
exporter code No., if allotted, and relevant
details as per the following details in the
preceding three years:-

Code No.3096005362
Name of the Product Name of the Country F.O.B. Value in US $
Exported where Exported
Fastnrs/nuts/bolts etc

16. Cost of Project (Please furnish estimates of cost of project under the following heads.
(Indicate the basis for arriving at the cost of project)
[In 000s of Rs.]
Sl.No. Particulars Already To be Total Cost
incurred incurred
A. Land including development
B Building & Other Civil Works
C Plant & Machinery
1) Indigenous
2) Imported
D Essential Tools, Spares & Accessories
E Testing Equipment
F Miscellaneous Fixed Assets
G Erection/Installation Charges
H Preliminary Expenses
I Pre-Operative Expenses
J Provision for Contingencies
1. Buildings
2. Plant & Machinery
3. Other Fixed Assets
K Margin for Working Capital Required.
L TOTAL

17. Means of Financing (Please furnish details of sources of finance for meting the cost
under the following heads)
[In ‘000s of Rs.]
Sl.No. Particulars Amount Amount Total
already proposed to be
raised raised.
A. Capital (specify resources
contributing capital)
B Reserves
C Term Loans (give full particulars)
D Unsecured Loans and Deposits
(indicate sources, rate of interest,
repayment period, etc.)
E Deferred Payment Arrangements
including Supplier’s Credit.
F. Subsidy - Central Govt.
- State Govt.
G. Seed Capital (indicate sources)
H Internal Cash Accruals
I. Other Sources (specify)
J. TOTAL

17.1 In case internal accruals are taken at source

o finance explain the basis for estimation
of internal accruals by means of a statement.
17.2 Indicate sources from which expenditure
already incurred has been financed.
17.3 Promoter’s contribution to the project as
% of the total cost.
 (Please furnish list of persons/firms who
would be contributing to the promoters’
share of the capital and the respective
amounts and their relationships)

18. Schedule of Implementation.

Please indicate the progress made so far in the implementation of the project and
furnished the schedule of implementation as follows:
ALREADY RUNNING UNIT
Date of Expected Date
Commencement of Completion
a) Acquisition of Land.
b) Development of Land
c) Civil works for Factory building, Machinery
Foundation, Administrative building.

d) Plant & Machinery - Imported

Indigenous
e) Arrangement for power.
f) Arrangement for water
g) Erection of equipment
h) Commissioning
i) Initial Procurement of Raw Material
j) Trial runs
k) Commercial Proudction

19. Future Projections

(to be given for the next three years)
Please furnish data on
19.1 Projected profitability as per Annexure III.
19.2 Projected cash flow statement as per Annexure IV.
19.3 Projected balance sheet as per Annexure V.
19.4 Working Capital Requirement as per Annexure VI.
Percentage of Cash Sales in Total Sales
Period in which payment is received in respect of credit sales
Average credit available on purchases
20. Financial Assistance Required
20.1 Rupee Loan
20.2 Foreign Currency Loan.
20.3 Term Loan.

20.4 Working Capital (as worked out in Annexure VI)

20.5 Non – Fund Based Limits, i.e. other forms of

Assistance (e.g. L/Cs, Bank Guarantees, etc)
21. Repayment Programme
22. Details of Securities to be offered.
22.1 Primary (working capital and term loan:
securities to be indicated separately).

22.2 Collateral, if any (full details)

22.3 Details of guarantor(s)
22.3.1 Name

22.3.3 Occupation (if in service, name &

Address of his / her employer)
22.3.4 Details of Moveable & Immovable .
Property(ies) owned by him/her and
Other dependent family members.
22.3.5. Details of any similar guarantee, if any
given to other institutions.
23. Whether any Government enquiry
proceedings or prosecution has been
instituted against the unit or its
proprietor/partners/directors for any
offence ?
If so, please give details.
24. Details of pending litigation, if any,
against and by the unit
25. Please indicate whether the proprietor/
any of the partners/promoters/directors
have at any time declared themselves as
insolvent. If so, details thereof.
I/We certify that all information furnished by me / us is true; that I / we have no
borrowing arrangements for the unit with any Bank except as indicated in the application; that
there is no overdues / statutory dues against me / us promoters except as indicated in the
application; that no legal action has been / is being taken against me / us / promoters, that I / We
shall furnish all other information that may be required by you in connection with my / our
application; that this may also be exchanged by you with any agency you may deem fit; and you,
your representatives, representatives of the Reserve Bank of India /. National Bank of
Agriculture & Rural Development / Small Industries Development Bank of India / Deposit
Insurance & Credit Guarantee Corporation or any other agency as authorized by you, may, at any
time, inspect / verify my our assets, books of accounts, etc., in our factory / business premises as
given above.

Date:

Place: _______________
Signature of the Borrower
( Name & Designation )

Encls: Certified Xerox Copies of :

a) Balance Sheets with Trading and Profit & Loss Account for the last three years.
b) Memorandum and Articles of Association, Certificate for Commencement of
Business.
c) Income Tax, Wealth Tax Returns and assessment orders for the three years, for
the unit as well as proprietor/partners/directors.
d) Sales Tax Returns for the last three years.
 UCO BANK
Head Office: 10, B.T.M. Sarani, Calcutta – 700 001
Annexure – I.
BIO – DATA FORM
Details of Proprietor/Partners/Managing Partner.
Promoters/Directors/Managing Director
(Please indicate inter-relationship, if any, among the partners/directors/promoters)
(Please use separate sheet for each person)

1. Full Name :

2. Name of the Father/Husband :

3. Age :

4. Sex :
5. Whether belongs to Scheduled :
Castes/Scheduled Tribes/Minority
Community.
6. Are you an Ex-Serviceman: :

7. Ration Card No. and Name of the

Issuing Office :

8. Passport No. :

9. Address (Office) :
(Tele.No.) :
(Permanent Residence) :

10. Academic Qualification :

11. Experience
Years Employer Designation Last Salary Drawn

12. Functional responsibilities in the Unit:

13. Capital / Loan Contribution in the Unit: At the Beginning At Present

31.03.

14. Reasons for joining/establishing :

the unit (please mention about the
motivating factors)

15. If associated as proprietor / partner / director / shareholder with concerns other than
the applicant unit, please furnish following details separately for each concern by way of
enclosures.
15.1 Name and address of the branch/ :
unit associates/identical concern.
15.2 Activity of the concern. :
15.3 Functional responsibility in that concern:
15.4 Capital / Loan Contribution :
15.5 Name of the associate concern’s :
Banker and their address
15.6 Aggregate credit facilities enjoyed :
by the concern.
15.7 Security offered by the concern :
for its borrowing.
15.8 Working results of the units for the :
past three years.

16. Personal Assets and Liabilities.

16.1 Immovable property details like land/:

Buildings, location, date of acquisition,
Cost, present value etc.

16.2 Other Assets

16.3 Personal Liabilities, if any :

(including guarantees / acceptance
given)

17. Any other relevant information. :

Place: Signature
Date :
 UCO BANK
Head Office: 10, B.T.M. Sarani, Calcutta – 700 001
Annexure – II

DETAILS OF EXISTING FIXED ASSETS

A. Land

1. Location

2. Area
3. Whether Freehold or Leasehold.

4. Purchase Price of Land if owned

5. Rent in case of leased land

6. Terms of lease

7. Ground Rent payable per year

B. Building
1. Location
2. Whether owned or leased

3. Purchase price of Building if owned

4. Rent in case of leased/rented premises .

5. Terms of lease.

___________________________________________________________________________
Structure Type of Dimensions Area Actual Date of
Structure (Sq.m.) Cost Erection
(Indicate “P” if (Rs.)
Permanent)
___________________________________________________________________________
1. Workshop
2. godown
3. Administrative
4. Other Buildings
_______________________________________________________________________

In case the assets have been revalued or written up at any time during the existence of unit,
furnish full details of such revaluation together with the reason thereof.

Particulars of Buildings proposed to be constructed NIl

 Built-up Area (in Metres)
Sl. Description Type of Length Breadth Average Total Rate of Estimated Expected
No. of each construction Height Floor construction cost of date of
building in per mtr. each completion
sq.m. building

Note:- 1. In case contract is awarded for construction of building, furnish details of such as
name of contractor, amount of contract, etc.
2. Other approvals from Inspector of Factories, Drug Controllers, etc., if any, should be
enclosed.
3. Please enclose a plan showing layout of Machinery.

Particulars of Machinery
Sl. Name of Second Name of Date of Expected Invoice Estimated Total
No. Machinery and Hand / Manufacturer acquisition/ Date of Price expenses cost.
specification New / Fabricator Date of Delivery including of
(Place of placement taxes for insurance,
country and of order indigenous freight,
origin, if (actual/ machinery installation
imported) expected) CIF for import
imported duty
machinery
1. Existing
Machiner
1.1 Indigenous
1.2 Imported
2. Proposed to be
acquired
2.1 Indigenous
2.2 Imported

1. Quotation/Catalogues/Invoice and other details in respect of each machine to be

furnished.

2. If second hand machinery, valuation report regarding age, performance and value
from competent valuer to be submitted. Also please indicate reasons for going in for
second hand machinery and its depreciated value.

3. In case of imported machinery, please indicate mode of payment and price of the
machinery in foreign currency
4. In case the assets have been revalued or written up at any time during the existence of
unit, furnish full details of such revaluation together with the reason thereof.
 UCO BANK
Head Office 10, B.T.M. Sarani, Calcutta – 700 001
Annexure – III
PROJECTIONS OF PERFORMANCE, PROFITABILITY ANY REPAYMENT
Break-even point Break-even Quantity:
% of installed capacity Break-even Value :
(Figures in 000s of Rs.)
Ist Year 2nd Year 3rd Year 4th Year 5th Year
2006 2007 2008 2009 2010
A. Production during the
year (Quantity)
% utilization of Installed
Capacity

B. Sales
1. Sales Including all misc.
2. Less Excise
3. Net Sales
C. Cost of Production
1. Raw Material Consumed
2. Power and Fuel
3. Direct Labour and wages
4. Consumable Stores
5. Repair & Maintenance
6. Other Manufacturing exp
7. Depreciation/
Development Rebate
Reserve
Total Cost of Production
8. Add: Opening
stock-in-process and
finished goods
9. Deduct: closing stock-in-
process and finished goods
D. Cost of Sales
E. Gross Profit (B-D)
F. Interest on
1. Term Loans
2. Working Capital
3. Other Loans, if any.
G. Selling, General and
Admn. Expenses
H. Profit before Taxation
[E-(F+G)]
I. Provision for Taxes
J. Net Profit (H-I)
K. Depreciation added back
L. Net Cash Accruals
 UCO BANK
Head Office: 10, B.T.M. Sarani, Calcutta – 700 001
Annexure – IV
CASH FLOW STATEMENT
[figures in 000s of Rs.]
nd
Construction Ist Year 2 3rd Year 4th 5th Year
Period Year Year
2007 2008 200 2010
9
A. Sources of Funds
1. Cash Accruals (viz. Net
Profit before Taxation (item
H of Annexure-III) to which
shall be added interest (item
F of Annexure III)
2. Increase in share capital
3. Depreciation
4. Increase in long term
loans/debentures
5. Increase in Current Liab
6. Decrease in Current Asse
7. Increase in Unsecured
loans and deposit
8. Increase in bank
borrowings for w.c.
9. Sales of Fixed Assets/ inv
10. Others (specify)
Total Sources (A)
B. Deployment of Funds
1. Preliminary and Pre-
Operative Expenses
2. Increase in Capital exp.
3. Increase in current assets
3.1 Inventories
3.2 Others
4. Decrease in long term
loan/debentures
5. Decrease in Bank.Borrgs
6. Increase in C.Assets
7. Decrease in Current Liabi
8. Interest
9. Taxation
10. Dividend (amount) (rate)
11. Other expenses (specify)
Total Deployment (B)
C. Opening Balance
D. Net Surplus (A – B)
E. Closing Balance
 UCO BANK
Head Office: 10-B.T.M. Sarani, Calcutta – 700 001
Annexure – V
PROJECTED BALANCE SHEET
[figures in 00s of Rs.]
st nd rd
1 2 Year 3 Year 4th Year 5th Year
Year 2007 2008 2009 2010
2006

A. Liabilities

1. Equity Share Capital

2. Term Loans
3. unsecured Loans
4. Bank Borrowings for
Working Capital
5. Other Liabilities
Total Liabilities
B. Assets
1. Gross Block
2. Depreciation
3. Net Block
4. Investment Security
5. Current Assets
6. Cash and Bank Balances
Total Assets
 UCO BANK
Head Office: 10, B.T.M. Sarani, Calcutta – 700 001
Annexure – VI.
ASSESSMENT OF WORKING CAPITAL REQUIREMENTS
[figures in 000s of Rs.]
nd
Ist 2 Year 3rd Year 4th Year 5th Year
Year 2008 2009
1. Current Assets
1. Raw Material
1.1 Imported (Month’s Consumption)
1.2 Indigenous (Month’s consumpt)
2. Other Consumable Spares
3. Stocks-in-Process (Month’s cost
of production)
4. Finished Goods Month’s Cost of
Sales
5. Receivable other than Export and
Deferred Receivables (including Bills
Purchased/Discounted by Banks)
6. Export Receivables (including
Bills Purchased/ Discounted by
Banks)
7. Advances to Suppliers of Raw
Materials and Stores/
Spares/Consumables.
8. Other Current Assets including
Cash and bank balances and deferred
receivables due within one year
(furnish individual details of major
items)
Total Current Assets (1)
II. Current Liabilities
1. Creditors for purchases of raw
materials and stores/ spares/
consumables (month’s Purchase)
2. Advances from Customers
3. Accrued Expenses
4. Statutory Liabilities
5. Other Current Liabilities -
Demand Loan (Furnish individual
details of major items)
Total Current Liabilities (II)
III. Working Capital Gap (I –
II)
IV. Margin for Working Captial
V. Bank Borrowings
 ANNEXURE – I
UCO BANK

MEMORANDUM FOR SANCTION / RENEWAL / ENHANCEMENT OF LIMIT WITH

FUND BASED EXPOSURE INCLUDING TERM LOAN ABOVE RS. 10.00 LACS BUT
BELOW RS. 100.00 LACS
Date:

1. ACCOUNT PROFILE

a) Borrower :
b) Constitution :
c) Date of Incorporation :
d) Description of Activity :
Existing :
Proposed :
e) Location : Regd. Office :
Controlling Office :
Factory :
e) Name of the Director(s) / Partners:

Full Name Age Permanent Address Worth (in

lacs)

Any Director/Partner included in the list of

i) Defaulters :
ii) Willful Defaulters :
iii) ECGC Caution List :
(if yes, details thereof with
clarification, if any)
g) Asset classification (IRAC Status): Standard
h) Whether the company or its Associate/ :
Group (Concern(s) Appear(s) in the
ECGC’s caution list/ Defaulter/
Willful Defaulter’s List
* If Yes, furnish details.
i) Dealing with Bank since :
j) authority & Date of Last Renewal :
k) authority & Date of Last Review :
l) Value of the Account
m) Adverse Comments, if any, in the last :
Inspection/Audit Report
n) Whether all terms & conditions of :
the existing sanction complied with

o) Whether documents are in order :

2. BRIEF HISTORY:

3. PRESENT POSITION OF THE ACOUNT:

(Rs. / lacs)
Nature of Limits Drawing Power Outstanding Irregularity if
Facility Balance any
30.09.2008
CC HYP
CC ADHOC
CC BD
CC EPC
MTL
FRBP

4. EXISTING LIMITS FROM OTHER BANKS

(in case of takeover from other Bank)

NAME OF THE BANK :

N.A.
(Rs. / Lacs)
Nature of facility Limit Outstanding as Irregularities, if any
on……………..
Fund based
Non-fund based
Total

5.(A) PARTICULARS OF TERM LOAN AVAILABLE FROM FI/BANK AS ON………

NIL

Name of the FI / Bank Limit Present Status of the

Outstanding Account

(B) GROUP COMMITMENTS, IF ANY, WITH OUR BANK:

NIL
(Rs. /Lac)
Name of the Investment Overseas Credit Exposure (Domestic) Total
Account Exposure Exposure Exposure
Existing Limit Existing Existing Limit Proposed Limit
Limit
FB NFB Total FB NFB Total

(C) DETAILED POSITION OF ALL GROUP ACCOUNTS

N.A. (Rs. In Lacs)
Name of Group
Company
Name of present
Banker
IRAC Status as
per last audited
Balance Sheet
Credit Rating as
per last audited
Balance Sheet

6. Proposed Limit(s) from our Bank:

(Rs. / Lac)
Nature of facility Existing Limit Proposed Limit
CC HYP
CC BD
CC EPC
FRBP
MTL
7. SALIENT FINANCIAL INDICATORS & WORKING RESULTS
(Rs. / Lac)
PAST 2 YEARS ACTUALS Current year Next Year
31.03.07 31.03.08 31.03.2009 31.03.2010
a) Paid-up Capital
b) Reserve &
Surplus
c) Tangible Net
worth (excl.revaluat
Reserve+ loss+inte
tangible Asset)
d) Long Term Loan
e) Net Fixed Assets
f) Non Current
Assets
g) Inventories
h)Receivables
i) Other C. Assets
j)Total current assets
k) Current Liabilities
l) Bank Borrowings
m)Net Working
Capital
n) Debt. Equity
Ratio
o) Current Ratio

B Past 2 years Actuals Current Year Next Year

(Estimated) (Projected)
a) Gross Sales
b) Net Sales
c) Operating
Profit/Loss
d) Other income
e) Profit before
interest tax and
depreciation
(PBDIT)
f) Depreciation
g) Interest
h) Tax
i) Profit after Tax
(PAT)
j) Cash accruals
k) Increase in Net
Sales (%)
l) % of Gross
Profit to net sales
m) PAT to Net
Sales (%)

8. COMMENTS ON FINANCIAL POSITION AND WORKING RESULTS.

TURNOVER :

PROFITABILITY: .

LIQUIDITY :

9. COMMENTS ON STATUTORY PAYMENT

Income Tax
Sales Tax
Provident Fund
Employees State Insurance Corporation.
Others.

10. ASSESSMENT OF WORKING CAPITAL

(Rs. In Lacs)
Actuals 31.03. Estimates 31.03 Projections 31.03.
a) Sales (Gross)
Sales (Net)
b) Cost of Production
c) Cost of sales (incl.
Depreciation)
d) Raw Material Consum
e) % cost of Production/
Sales
f) % Cost of Sales / Sales
g) % Raw material
consumption to cost of pro

11. COMPUTATION OF WORKING CAPITAL

(either of the methods A or B as mentioned below may be applied)
(A) On the basis of holding of Current Assets & Liability (2nd Method of Lending)

Actuals Actuals Estimates Estimates Projections Projections

31.03. 31.03. 31.03. 31.03. 31.03. 31.03.
Raw Materials
Consumable,
Spares &
Stores
Wip
Finished
goods
Receivables
Other current
assets
Sundry Crs
Other C.L.

Total Current Assets

Less Current Liability
(S/Creditors+Other Current Liability)
1. Working Capital Gap (WCG)
2.Mimum stipulated NWC
(25% of WCG )
3. Actual/projected NWC
4. Item (1) – Item (2)
5. Item (1) – Item (3)
6. Permissible Bank Finance
(Item 4 or 5 whichever is lower)
Comments on the holding levels:
.

(B) On the basis of Turnover (Turnover Method)

GROSS SALES :
(i) 25% of Gross Sales :
(ii) 5% of Gross Sales :
(iii) Projected NWC :
(iv) Item i – ii :
 (v) Item i – iii :
(vi) Permissible Bank Finance :
(Item 4 or 5 whichever is lower)

13. APPRAISAL OF TERM LOAN:

1. Brief description of the project & company’s requirement for the same:
(It should be clearly mentioned whether it is expansion or modernization or new
project)
The unit proposes to renew the existing term loan of Rs. 18 lacs at run down
balance of Rs. 13.79 lacs as on 30.09.2008.

Whether the project has been appraised by outside agency. If yes, summary of the
appraisal report.

II. Financial Dimension of the Project

(1) Cost of Project & Means of Finance : already running project.

A) Cost of Project
Land (including development) Rs.
Building & Other civil work Rs. s
Plant & Machinery (imported) Rs.
Plant & Machinery (indigenous) Rs.
Other fixed assets Rs.
Pre-operative & Preliminary expenses Rs.
Provision for contingencies Rs.
Margin for working capital Rs.
Total Rs.

B) Means of Finance
Promoters’ Contribution : Rs.
Margin money from internal accurals : Rs.
Subsidy from :
Unsecured loans : Rs.
Other Sources :
Term Loan : Rs.
Total : Rs.

(2) Projected Balance Sheet (for the entire period of TL)

N.A. (Rs.’000)
LIABILITIE 1st Year nd
2 Year rd
3 Year th
4 year 5th Year
S
Capital
Reserve &
Surplus
Unsecured
Loan
Secured Term
Loan
Bank
Borrowing
Short Term
Liabilities
Total
ASSETS
Gross Block
Depreciation
Net Block
Investments
Current
Assets
Other non
C.A.
Total

3) Projected Profitability & Cash Flow (for the entire period of TL)

(A) Profitability N.A. (Rs./’000)

ITEM Ist Year 2nd Year 3rd Year 4th Year 5th Year

a) Sales
b) Less: Excise Duty
c) Net Sales (a-b)
d) Other Income
e) Gross Profit (c+d)
f) Tax
g) Profit after Tax
h) Interest on
Working Capital
i) Interest on Term
Loan
j) Depreciation
k) Cash Accruals
(g+j)

(B) CASH FLOW STATEMENT

(Rs.’000)
1. SOURCE OF 1st Year 2nd Year 3rd Year 4th Year 5th Year
FUND
Profit after Tax
Depreciation
Misc. Written off
Sale of assets
Increase in Capital
Increase in Term
Loan
Increase in Current
Liabilities
TOTAL
2. DISPOSITION
OF FUND
Increase in Fixed
assets
Repayment of Term
loan
Increase in Current
Assets
Decrease in Current
liabilities
Decrease in capital
Total
(1-2)

Analysis of Balance Sheet & Profitability :

(4) Calculations:

(a) Break even Point (BEP) = ____Fixed Cost____

Contribution per unit

Contribution = Sales – variable cost.

Profit = Contribution – Fixed Cost.

(b) Margin of Safety = Actual Sale – BEP (Sale) x 10

Actual Sale

(c) DSCR : As per separate sheet enclosed. Average DSCR

Net Profit + Depreciation + Tax + Interest on Term Loan + Lease Rental

Instalment Term Loan + Interest on Term Loan + Lease Rental

(5) Capital Budgeting

(a) Pay Back Period : Cost of Project______
Average inflow of Cash
(b) Net Present value : N.A.
Year Cash Cash In-flow Net Cash Discounting Present
 Outflow Accrual Factor @ Value of the
Net Flow
(4 x 5)
(1) (2) (3) (4) (5) (6)
1st
2nd
3rd
4th
5th

(c) Internal Rate of return :

(To be calculated by applying a discounting rate at which NPV of cash outflow is
equivalent of NPV of Cash Inflow)

(6) Project Indices:

DSCR
Debt Equity Ratio
Pay back period
IRR
Break even point
Return on capital employed.
Interest coverage Ratio
Analysis of the different ratios:

(7) Quantum of loan Already sanctioned Rs. 18 lacs

Items of cost of project Amount Margin Permissible Bank
Finance
Land & Site development
Factory building
Plant & Machinery
Technical Knowhow.
Misc. Fixed Assets
Preliminary expenses
Pre-operative expenses
Intt. During construction
period
Provision for contingency
Margin for working capital
Total

(B) Economic Feasibility

a) Name of the major suppliers.

b) Region/Area where the product will be sold :

c) Extent of competition and other units engaged :
In the similar activity in the region/area
 d) Volume of orders in hand.
) Availability of raw material :
f) Position of labour supply in the area :
g) Availability of power :
h) Note on marketing tie up arrangement :
i) Manufacturing process :

j) Size of the plant :

k) Details on infrastructure with reference to
The project :
Access to the site & transportation :

Power supply :
Water supply :
Availability of Labour :
Availability of raw material :
L) Statutory approval such as clearance of Pollution Board :

Implementation of the project (stages to be mentioned) :

Commencement of commercial production :

Risk factor and step to check :
Margin:
Repayment period:
Rate of interest:
Brief description of primary security :

Brief description of collateral security :

Recommendations:
Already sanctioned term loan.

ADDITIONAL INFORMATION FOR RENEWAL OF TERM LOAN:

a) Whether the implementation of the project is
As per schedule Yes/No
If no, reason thereof and expected date of
Completion.

14. ASSESSMENT OF QUASI CREDIT (NON – FUND BASED)

REQUIREMENTS:
A) BANK GUARANTEES: N.A.
Assessment of requirement of Bank Guarantee :
a) Outstanding BGs
b) Cancellation envisaged.
c) Requirement incidental to regular operation.
d) Requirement pertaining to contingent events.
e) Requirement of BG (a-b) + c + d
B) LETTER OF CREDIT (LC) : N.A.
Assessment of requirement of LC limit.
 For procurement of raw material/stores/spares
a) Annual purchase
b) Lead time
c) Credit/Usance
d) Total (b + c)
e) LC required axd
365
Note: In case no credit is available and the procurement has to be made under signed LC, no. of
days against item no. (c) should be taken as Nil.

15. OTHER RELEVANT INFORMATION

a) Details of collateral security

b) Details of personal guarantee of Directors.

Bank official’s comments on conduct of the accounts:

c) Whether accounts are regular., Also, furnish brief remarks about the conduct of
borrower.
The conduct of the account is satisfactory.

d) Comments on LC, Guarantee limits utilization and development of LC and invocation

of guarantee (if any)…………

e) Whether Term Loan instalments are paid as per schedule.

f) Whether necessary financial discipline is being observed by the concern in regard to

submission of the statements etc. and if not, what steps have been taken:

g) When the stock / machinery was last inspected, State adverse features noticed, if any:

h) Major irregularities, if any, pointed out in inspection report/concurrent audit

reports/statutory audit report.

16. Recommendation

…………………………. …………………………..
Advance – in – Charge Branch Manager
 UCO BANK::
,Ludhiana
Credit Rating Module
For Accounts with Total Fund and Non-Fund Based Exposure of Above Rs.25 Lacs and up to
Rs.5 Crores
Annexture-C
Name of the Company
Group, if any
Rating as on
Industry Category (As per annexure A)
Fund Based Limit
Of Which, Term Loan
Non Fund Based limit
Existing/New/ Green Field Account*
( *Strike out whichever are not applicable

MANAGEMENT –RATING AND EVALUATION Marks Awarded

A Management Evaluation Existing New Green field
(Rating Guidelines) Accounts Accounts Accounts
a Integrity/commitment ---
Excellent-3, Good-2, Average-1, Poor-0
b Financial Strength ---
i) Market Value of shares (as on the date of rating) of
the company to its nominal value
10 or more---3
5 or more but less than 10----2
2 or more but less than 5------1
Less than 2 ------0

ii) Capacity of internal generation of funds:

ROE=Profit after Tax/Total Equity (paid up capital)
ROE greater than 100%--3
ROE greater than 50% but less than 100%--2
ROE >25% but <50%-------1
ROE up to 25%-----0

iii) Total Net worth of the promoters excluding stake in

the business
More than 2 times the stake in the business---3
1 to 2 times the stake in business----2
0.5 to less than 1 time the stake in business—1
Less than 0.5 times the stake in the business--0

c Technical/Financial Knowledge ---

Excellent-3, Good-2, Average-1, Poor-0
d Organizational Structure/Succession Plan ---
Excellent-3, Good-2, Average-1, Poor-0
Management Evaluation ( Rating guidelines)
e Selling and Distribution Network --
Excellent-3, Good-2, Average-1, Poor-0
f Experience of Directors& Promoters --
Excellent-3, Good-2, Average-1, Poor-0
g Litigation cases pending against company/Directors --
 Excellent-3, Good-2, Average-1, Poor-0
h Market Reputation& Past Track Record --
Excellent-3, Good-2, Average-1, Poor-0
Sub Total- Management Evaluation (Max 27) --
2 Conduct of Bank Account
A Account Operations --
Account Running regular-10
Account remained irregular for 15 days-8
Account remained irregular for 16-30days-6
Account remained irregular for 31-45days-4
Acctt. Remained irregular for more than 45 days-0
B Compliance of terms/conditions of sanction --
All Conditions Complied-5
Conditions relating to Security Creation complied other
not-4
Conditions other security creation complied-2
Conditions have not bee complied-0
C Discipline in timely submission of data/information --
Timely submission- 5
Delayed submission up to 15days-4
Delayed submission 16-30 days-3
Delayed submission 31-45 days-2
Delay of more than 45 days- 0
3 Management of Inventory & receivable --
(Inventory+Receivables)/ Net sales per month
< 3 months-5
3-<4 months-4
4-<5months-3
5-<6months-2
6 months and above-0
4 Reliability of Receivables& Valuation of Inventory --
Comments given by Bank inspectors/Stock Auditor
Satisfactory-5
Raises some doubts but no shortfall indicated-3
Indicates some shortfall up to 5%-1
Indicative of poor quality of receivables and inventory-
0

5 Transparency in Accounting Statements -- --

Accounting practice &Qualification by Auditors
No Qualification from Auditors-5
Qualification having no financial implication-4
Qualification having financial implication-3
Unaudited balance Sheet certified by the borrower-2
Others-0
Total Marks Obtained -- --
Max Marks -- --
Marks out of 100(%)=A -- --

B Operational Performance &Financial Ratios Based on Based on Based on

 (Rating guidelines) BS/PL BS/PL Projected
31st march 31st march BS/PL
2008 2008
1 Sales/Break Even Sales=(Sales-Variable cost)/ --
Fixed cost
More than 1.67=15
More than 1.3 but up to 1.67=12
More than 1.1 but up to 1.33=08
More than 1.0 but up to 1.1=04
1.0 or less than 1.0=0
2 Current Ratio= CA/CL --
More than 1.33=10
More than 1.25 but up to 1.33=8
More than 1.17 but up to 1.25=5
More than 1.0 but up to 1.17=2
1.0 or less than 1.0=0
3 Return on Capital Employed --
(PAT+Interest/(Net Worth+Long Term Borrowings+
Bank Borrowings)
More than 15%=10
More than 13% but up to 15%=8
More than 11% but up to 13%=5
More than 9% but up to 11%=2
9% or less tha 9%=0
4 Debt Service Coverage Ratio (DSCR) --
(NP+Dep.+Interest on Term Loan)/(Annual Repayment
of Term Loan+Interest on TL)
More than 3=15
More than 2.5 but up to 3=12
More than 2 but up to 2.5=08
More than 1.5 but up to 2=04
1.5 or below=0

5 Long Term Debt/Equity Ratio --

= Long Term Debt( not including proposed long term
borrowings)/Tangible Net Worth( including
subordinated interest free borrowings from promoters)
More than 2.5=0
More than 2 but up to 2.5=3
More than 1.5 but up to 2=6
More than 1 but up to 1.5=8
1 or below=10

6 Total Outside Liabilities/Total Net Worth --

= Total Out side Liabilities(not including proposed long
term& short term borrowings)/tangible Net
Worth(including subordinated interest free borrowings
from promoters)
More than 3.5=0
More than 3 but up to 3.5=3
More than 2.5 but up to 3=6
More than 2.0 but up to 2.5=8
2 or below=10
7 Achievement of Net Sales projections --
 Actual Net Sales Achieved/Net Sales Projected for the
year
More than 90%=10
More than 85% but up to 90%=8
More than 80% but up to 85%=6
More than 75%but up to 80%=4
75% or below-0
8 Achievement of Net Profit Projections --
Actual Net Profit Achieved/ Net Profit Projected for the
year
More than 90%=5
More than 85% but up to 90%=4
More than 80% but up to 85%=3
More than 75%but up to 80%=2
75% or below-0
9 Operations in Non-Fund Based Loan Limits --
(Where L/C and/or B/G limit is less than 5% of Fund
Based limit, ignore it)
Borrower arranges funds whenever L/C or B/G liability
falls due=10
Borrower arranges funds whenever liabilities devolve
but takes Max. 15 days in meeting his liabilities=6
Borrower generally delays in arranging funds whenever
liabilities devolve but delays up to 30 days=4
Borrower generally delays in arranging funds whenever
liabilities devolve by more than 30 days=0

10 Diversion of Funds
Company is not diverting any funds=10
Company has diverted funds maintaining CR and DE
ratio within the Bank’s accepted norms=7
Company is diverting funds from short term to long
term to meet emergent needs in the company itself= 4
Company diverting funds to its allied associate concern
by affecting its CR and DE ratio beyond the Bank’s
accepted norms=0
11 (Net Profit/Net Operating Cash Flow)
Net Op. Cash Flow= +/(-) OP/(OL) before
extraordinary items+ Dep.- Taxes+/(-) Increase/
(Decrease) in NWC= Net Operating Cash Flow.
Ratio is less than0.75=10
Ratio is 0.75 or more but less than0.90=7
Ratio is 0.90 or more but less than 1=4
Ratio more than 1=0
Net profit is Nil or negative=0
Net Operating Cash Flow is Nil or Negative=0
Marks obtained
Max Marks
Marks out of 100(%)=(B)

Management Rating
Operation/Finance Rating
TOTAL WEIGHTED SCORE
RATING
Rating, based on Total Weighted score should be as
given in the table below
Weighted Score Equivalent
Rating
90% and more
80% to less than90%
70% to less than 80%
60% to less than 70%
50% to less than 60%
Below 50%