FASCIA SIGN W ITHOUT BRANCH NA ME

Bank of Baroda
SME Loan Factory
Regional Office
Allahabad
NOTE TO THE SENIOR BRANCH MANAGER, PHAPHAMAU BRANCH
ALLAHABAD
Name of the Account
: M/s Priya traders
Branch
: Phaphamau
Region
: Allahabad
Zone
: UPU
SECTION I : DETAILS OF THE PROPOSAL
1.0. Gist of the Proposal: To sanction Cash credit facility for Rs. 12.00
lacs for fulfilling the working capital requirement of firm.
1.1) a) Fresh sanction for 12 months.
b) Last Review/sanction carried on
: New proposal
1.2) Increase / Decrease in Fund Based and Non Fund based Limits.
(Rs. in Lacs)
Existing
Proposed
*
Fund Based limits
Cash Credit(Hypothecation)
0.00
12.00
Non-Fund Based Limits
0.00
0.00
Total Credit Limit
0.00
12.00
1.3) Sanction / Ratification
a) Modifications:
Nil
b) Concessions :
Nil
c) Confirmation:
Nil
d) Reference of existing sanction : Fresh proposal
Date
: NA
Authority
: NA
Due date of Review
: NA
2.0 Basic Data:Asset Classification
Banks Credit Rating
years

STDSnn Fresh proposal

for last two Obligor rating
: BOB-4
Composite Rating :CR-3
Facility rating
:- FR-3
(on the basis of audited B/S 31.03.2011)

M/s Saman Trading Company, Khuldabad branch

FASCIA SIGN W ITHOUT BRANCH NA ME

External Credit Rating

Constitution
Date of Establishment
Location :- Office
Factory/godown/shop
Group
Industry and Nature of Activity
Exposure to Industry
a) Sectoral Cap for Industry
b) Banks Exposure
c) Zones Exposure
d) NPA (Bank)
e) NPA (Zone)
Collaboration / Joint Venture, if any
Dealing with the Bank since
MPBF
Our Banks Share
Rate of Interest

Security Available

Yield in the account

Major Inspection irregularities
Concurrent Audit
Internal Audit (irregularities)
RBI Inspection
Statutory Audit
Auditors of the FIRM.

NA
Proprietorship firm
04.09.2014
126 shivkuti Allahabad
126 Shivkuti Allahabad
NA
Supply/Trading of corrugated
paper,metal and plastic.

waste

Not available
NIL
2014
Rs. 12.00 Lacs
100%
2.50%+Base rate i.e. 12.40% at present
(Base rate is subject to change from time
to time as per Banks extant guidelines)
1. Primary:
Hypothecation of stocks and book
debts.
2. Collateral:
(i) Equitable mortgage of residence at
arazi no. 627 situated at MauzaRangpura Pargana and Tehsil-Soraon
Allahabad standing in the name of
SmtSurema
Devi
W/O
Mr.
Purushottam Lal Kesarwani
valued
Rs. 29.04 lacs(market value) as per
valuation report dated 31.08.2015 by
our empanelled valuer Mr. Umesh
Kumar
3. Personal Guarantee of Sri.
Riyazuddin S/o Gulam Nizamuddin
New Account
New Account
New Account
New Account
New Account
Ashish A Agrawal & Co.

M/s Saman Trading Company, Khuldabad branch

FASCIA SIGN W ITHOUT BRANCH NA ME

Qualification
remarks
of
the
auditors
Pollution Clearance
Whether statutory dues have been
paid
Whether the names of the FIRM /
Associates or Directors appear in
RBI defaulters list and / or caution
list
Whether the FIRM / firm /
promoters and their Associates are
on ECGC caution list. / Special
Approvals List.
Compliance of Earlier terms and
conditions including creation of
charge.

2.01) Banking arrangement

NIL
NA
Yes as per audit report as on 31.03.2015
No

No

New Account

: SoleBanking
(Rs.

in

Lacs.)

BOB

Fund Based
% Share
Exist.
Prop.

Amount
Exist Prop

0.00

0.00

100
%

12.0
0

Non-fund Based
% Share
Amount
Exist Prop Exist. Prop.
.
Nil
Nil
Nil
Nil

2.3) Security/ W.D.V. of security to be mentioned:

Detail of security
Value
Equitable mortgage of residence at arazi no. 627 Rs.29.04 lacs
situated at Mauza-Rangpura Pargana and (market value)
Tehsil-Soraon Allahabad standing in the name
of SmtSurema Devi W/O Mr. Purushottam Lal
Kesarwani
valued Rs. 29.04 lacs(market
value) as per valuation report dated
31.08.2015 by our empanelled valuer Mr.
Umesh Kumar
Total value of securities

Rs. 29.04 lacs

2.04) Any reschedulement agreed (in last 3- years):

M/s Saman Trading Company, Khuldabad branch

No
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FASCIA SIGN W ITHOUT BRANCH NA ME

2.05)

Name of Proprietor:

Name
Manoj Kumar Kesarwani

Worth as on 31.08.2015
Rs. 16.40 lacs

2.06) Key persons: Gayasuddin Khan

2.07) Names of Guarantors:
Name
Riyazuddin S/o Gulam Nizamuddin

Worth as on 30.07.11
Rs. 67.34 lacs

2.08)Business experience of Proprietor

Mr. Manoj Kumar Kesarwani is running this firm since 2014 and before that he
was working in the same trade with his father since his school days under the
guidance of his father Mr. Riyazuddin who was doing the same business since
his young age. Trading of waste corrugated waste records/paper has been his
ancestral business and whole family is involved in this trade.
Hence the proprietor is having experience of more than 25 years in this
activity and also involved in the manufacturing of copies, registers etc at the
same place of business.
2.09) Share Holding Pattern: NA
3.0. ISSUE FOR CONSIDERATION: To sanction Cash credit facility for Rs.
12.00 lacs on terms & conditions mentioned in the annexure D of the
proposal.
Fresh Sanction:
(Rs. In
Lacs)
Nature of facilities
Existing Propose Present
Excess/
Over
Limit*
d Limit
o/s
dues,
If
any
(mention Nil, if
so)
Term Loan
0.00
0.00
NA
NA
Cash-Credit (Hyp. Of
0.00
12.00
NA
NA
stock & book debts)
TOTAL FUND BASED
0.00
12.00
NA
NA
NON FUND BASED
Nil
Nil
NA
NA
TOTAL EXPOSURE

0.00

12.00

NA

M/s Saman Trading Company, Khuldabad branch

NA
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FASCIA SIGN W ITHOUT BRANCH NA ME

*Party is presently enjoying CC limit of Rs. 20 lacs with J&K Bank

Break up of Over dues is as under: - NA
1. Excess due to non-availability of Drawing Power, if any to be mentioned
with M.V. - A.V (If the limits have been assessed and full exposure is
not recommended by the Branch, then reasons of the same should be
indicated. If the amount in the application is increased / decreased,
reasons thereof to be stated.)
NA
2. A brief comment on the conduct of the account like devolvement of LC,
return
of
cheque
etc.
may
be
submitted.
NA
3.2) Modification in Terms & Conditions:
Nil
3.3) Concessions
3.4) Confirmations:

Nil
Nil

4.0) BACKGROUND OF THE FIRM

The firm M/s Saman trading Company is a wholesale trading unit of
corrugated waste paper/records ,Plastic materials and Metal items established
in 2014. Before establishment of this firm the proprietor was working with his
father Mr. Riyazuddin in his firm M/s Union trading company since his school
days.
The firm has good liaisons with government departments (for purchase of
corrugated waste paper) and paper mills (for supply of bundled paper), Steel
mills(for supply of Steel Items).

5.0

SECURITY COVERAGE
(Rs. in

lacs)
Detail of Security
Market value
Equitable mortgage of residence at arazi no. 627 Rs. 29.04 lacs
situated at Mauza-Rangpura Pargana and TehsilSoraon Allahabad standing in the name of
M/s Saman Trading Company, Khuldabad branch

FASCIA SIGN W ITHOUT BRANCH NA ME

SmtSurema Devi W/O Mr. Purushottam Lal

Kesarwani
valued Rs. 29.04 lacs(market value)
as per valuation report dated 31.08.2015 by our
empanelled valuer Mr. Umesh Kumar
TOTAL Value
TOTAL Exposure
% Security coverage

Rs. 62.34 lacs

40.00
155.85 %

Note: In addition to collateral securities as above, firms other assets such as

stocks, book debts, furniture & fixtures etc shall be hypothecated to further
secure the advance.
6.0 OTHER INFORMATION:
Dealing and conduct of the account :

new account

Documentation - whether verified by Legal Deptt. & whether in order/

enforceable: Documents will be vetted by banks empanelled advocate
after its execution.
Whether proposed limits are within Banks prudential Single Borrower/
Group exposure norms :
YES
Pro-rata non-fund based business
:
NIL
Comments regarding utilization of the limits: Cash Credit facility.
Drawings in the account shall be allowed as per drawing power available.
Comments regarding credit rating - when last done :
BOB-4, CR-3, FR-3 based on audited Financials of 31.03.2011
Interest rate shall be based on CRISIL rating of the borrower to be
carried out every year/ as per Banks Norms from time to time.
Facilities enjoyed by Associate/ Sister Concerns/Group concern - Health
Code/ Asset Classification / Credit Rating / Reference of last sanction: N
A
Whether listed Firm - present market quotation - 52 weeks high / low :
Non listed firm
Our Banks investment in the firm :
NIL
Our exposure to the firm: Current exposure- NIL, Proposed exposure is
as under
(Rs. In
Lacs)
C&I Advance
Priority
International
Investmen TOTAL
Sector
Div.
ts
M/s Saman Trading Company, Khuldabad branch

FASCIA SIGN W ITHOUT BRANCH NA ME

12.00

7.0

--

--

--

12.00

Contingent liabilities : NIL

Takeover norms: Complied

Non-Financial norms
Accounts of profit making (i.e. net
profit before tax) concerns only as
per last audited balance sheet
Accounts with existing lenders should
be under Standard Assets
Satisfactory report from existing
bank/FI and/or satisfactory conduct
of account as per latest statement of
accounts
Take over account is to be rated as
per new credit rating model subject
to minimum BBB/BOB6 grade.
There should not have been any
reschedulement /restructuring in the
account during last two years.
Financial norms
Current ratio -1.33
TOL/Equity - 4.5:1
Debt/Equity - 3:1 in case of MSI/LSI
4:1 in case of SSI
DSCR - minimum 1.75

comments
Net profit Rs. 4.99 lacs as per ABS
March 2011.
As per a/c statement it appears
standard category.
As per a/c statement it appears
standard. However Branch should
obtain credit report from J&K Bank
before release of facility.
Rating arrived on BOBRAM i.e. BOB4, CR-3, FR-3 as per ABS of March
2011.
No reshedulement /restructuring is
reported to take place.
Complied
Current ratio- 1.59
TOL/Equity- 1.23:1
Debt/Equity- NA
NA

7.1 JUSTIFICATIONS FOR SANCTION OF WORKING CAPITAL:

Firm was established and started its business activity from November 2014.
Firm is maintaining Current Account in our Branch since its inception and the
account is satisfactory.
The party is procuring corrugated waste paper/records.Plastic items and steel
and metallic waste from government offices as well as open market thereafter
procured material is crushed/bundled with the help of hydraulic press. The
bundled paper is stored in godowns and further transported to different paper
mills e.g. Maya mills Press (Mutthiganj Allahabad).Steel items and metal
waste are transported to different mills e.g. Anubhav Steels (Badshahpur),
Mr.Dharm Raj(Keetganj Allahabad) and plastic items to Mr. Nanhe(Kunda
Allahabad). Presently godowns are having capacity of 7000-8000 bundles of
50 Kg each. The party has reported that due to growing volume of business,
the firm has established one godown at Raebareli and another one is
M/s Saman Trading Company, Khuldabad branch

FASCIA SIGN W ITHOUT BRANCH NA ME

proposed at Faizabad. The approximately purchase price of material is Rs.

700/- per quintal and selling price of material is Rs. 825/- per quintal as
reported by the party. Approximately load of one truck i.e. 180 bundles of 50
kg each is transported daily by the party to the paper mills. Transportation
cost is arriving at Rs. 9000-10000/- per trip.
Audited sales as per B/s dated 31.03.2011 was Rs. 189.63 lacs. Since the
business of the firm is expanding and it has necessitated for more working
capital requirement therefore, they have approached Khuldabad for sanction
CC limit of Rs. 40.00 lacs along with takeover of its existing limit with J& K
Bank. Sales estimated for the FY 2011-2012 is Rs. 350.00 lacs and for the FY
2012-13 is Rs. 450.00 lacs. Sales estimated/projected appears to be at a
higher side as compared to the past years. We may accept reasonable growth
of 20% in sales and accordingly working capital assessment is done in
SECTION-II of the proposal. As per calculation of working capital on accepted
sales, PBF comes to Rs.64.43 lacs and request of the firm is only Rs. 40.00
lacs. Since firm has proposed higher margin a limit of Rs. 40.00 Lacs appears
to be justifiable.
8.0 RECOMMENDATIONS:
In view of what is mentioned herein above, satisfactory conduct of account of
the firm and also their other family units, adequate security coverage and
past experience with branch, we recommend for sanction of credit facilities as
mentioned below on the terms and conditions stipulated in Annexure D.

(Rs.
Nature of facilities
FUND BASED
Working
Capital(
Cash
Credit )
Term Loan
NON-FUND BASED :
Inland / Import L/Cs
TOTAL
We further stipulate that:

in lacs)
Existing
Limit*

Proposed
Limit

Overdues/
excess

0.00
0.00

12.00
0.00

Nil
Nil

0.00

0.00

Nil

0.00

12.00

Nil

a) The facility should be released after vetting of documents by banks

empanelled advocate and getting the permission from the appropriate
authorities as per extant guidelines of the Bank.
M/s Saman Trading Company, Khuldabad branch

FASCIA SIGN W ITHOUT BRANCH NA ME

b)

Branch to ensure that the firm has obtained all the necessary
approvals/licenses, and these are valid.

c) Drawing should be allowed in the a/c strictly on the basis of drawing power
available (Drawing power to be calculated on monthly paid stocks and book
debts and after ensuring stipulated margin). Monthly Stock Statement to
be obtained with in 7 days of end of month.
d)

Branch should monitor that all the sales are being routed through the
account only and accounts with other banks to be closed immediately.

e) Branch to ensure that the facility is released only after compliance of all
terms and conditions of sanction.
h) The Branch to ensure that the capital as projected is induced in the firm
and CA certificate to that effect is obtained & kept on records.
i) KYC norms to be strictly observed by the Branch. Branch should obtain
credit report from J&K Bank before release of facility.
Submitted for consideration

(Vivek Kumar Srivastava)

Manager (credit)
SME Loan Factory, Lucknow
Date: 04.08.2011
Observations of Sanctioning Authority

SECTION II- FINANCIAL PARAMETERS AND

ASSESSMENT
(Rs.

in

lacs)
M/s Saman Trading Company, Khuldabad branch

FASCIA SIGN W ITHOUT BRANCH NA ME

31.03.2010
(Audited)
a)Balance
Sheet
Data/Capital
Structure
Proprietors capital
Reserves & Surplus

4.19
-

31.03.2011
(Audited)

7.77
-

31.03.2012
(Estimated)

16.42
-

M/s Saman Trading Company, Khuldabad branch

31.03.2013
(Projected)

21.07
-

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FASCIA SIGN W ITHOUT BRANCH NA ME

Tangible net worth

Unsecured loans
Term Liabilities
Capital employed
Net Block
Non current Assets
Current Asset
Current Liabilities
Net Curr. Assets
b)Operational Data
Gross Sales
Less:
Excise/Sales
Tax
Net Sales
Of which exports
Other Income
Manufacturing
expenses
Adm.
&
Selling
Expenses
Depreciation
Interest/Bank
Charges
Net profit before Tax
Net Profit after Tax
Dividend
Profitability Ratio
(NP/Sales)%
Net
Profit/
Capital employed
Stock Turnover ratio
Debtor Turnover ratio
PAT/TNW
Current Ratio
DE Ratio ( Total term
liabilities / Tangible
Net worth)
DE
Ratio(
Total
outside
Liabilities/Tangible
Networth)

4.19
4.19
0.85
21.45
18.11
3.34

7.77
7.77
2.16
15.21
9.58
5.61

16.42
16.42
1.83
55.34
40.75
14.59

21.07
21.07
1.56
59.87
40.35
19.52

55.94
-

189.63
-

350.00
-

450.00
-

55.94

189.63

350.00

450.00

0.03
51.72

182.21

339.93

438.47

0.15
1.55

0.38
2.05

0.32
3.75

0.28
4.25

2.55
2.55
-

4.99
4.99
-

6.00
6.00
-

7.00
7.00
-

4.56
60.86

2.63
64.22

1.71
36.54

1.56
33.22

6D
32 D
0.61
1.18
-

13 D
23 D
0.64
1.59
-

28 D
2D
0.37
1.36
-

44 D
2D
0.33
1.48
-

4.32:1

1.23:1

2.48:1

1.92:1

M/s Saman Trading Company, Khuldabad branch

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FASCIA SIGN W ITHOUT BRANCH NA ME

Movement in Tangible Net worth

Lacs)
Opening TNW
Add: Profit After Tax
Add: Addition of capital
Add: Interest on capital
AdjustPrior
year
expenses
(deferred tax)
Deduct- Drawings
Any other item/ Deferred Tax
Closing TNW

(Rs in
31.03.11
4.19
4.99
-

31.03.12
7.77
6.00
5.00
-

31.03.13
16.42
7.00
-

1.41
7.77

2.35
16.42

2.35
21.07

Details of Funds Invested Outside business / Loans and advances /

inter corporate deposits (valuation of investments):
NA
Performance of subsidiaries / Group FIRM if investment is more than
10% of Net worth :
NA
Whether Fund Flow Statement submitted:

NA

9.0 COMMENTS ON PERFORMANCE:

Firm was established and registered in the year 1997
Till date parties was maintaining stock at one godown at Allahabad but
now the firm has managed two more godowns at Raebareli & Faizabad
Hence Projections are based on the considering storing capacities of
said godowns & increased performance of the firm.
Sales:
31.03.2011
31.03.2012
31.03.2013
189.63
350.00
450.00
In the 2011, firm has achieved the net sales of Rs. 189.63 lacs. Sales
estimated Rs. 350.00 lacs for the current year i.e. 2011-2012 seem to be at a
higher side. Firm has projected 85% growth in sales during FY 2011-2012.
We may accept around 20 % growth in sales and accordingly sales of
Rs.228.00 lacs in FY 2011-2012 and Rs. 275.00 in FY 2012-2013 appears to
be achievable and accepted.
M/s Saman Trading Company, Khuldabad branch

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FASCIA SIGN W ITHOUT BRANCH NA ME

Net Profit:
March 11

March 12
6.00

4.99

March 13
7.00

Waste paper trading business operates at a thinner profit margin and firm has
booked profit of Rs.4.99 lacs. The firm has projected 6.00 lacs and 7.00 lacs
profit in 2011-2012 & 2012-2013 respectively which appears to be justifiable
as per trend in the trading business and projected volume of sales.
Tangible Net Worth:
March 11
7.77

March 12
16.42

March 13
21.07

In the current year firm has estimated its net worth of Rs.16.42 lacs after
induction of fresh capital of Rs. 5.00 lacs and plough back of profit. In
subsequent years firms net worth is increasing by plough back of PAT.
RATIOS

CURRENT RATIO:
Current Ratio

March 11
1.59

March 12
1.36

March 13
1.48

The current ratio of firm is above our benchmark level which is further
projected to be retained with in the desired level in subsequent years due to
induction of capital in the business in FY 2011-2012.
DEBT EQUITY RATIO:

TOL/TNW

March 11
1.23:1

March 12
2.48:1

March 13
1.92:1

DER is well below the desired/benchmark level and further to improve it firm
has infused fresh capital of Rs. 5.00 lacs during current FY 2011-2012.
Other comments:
1. Comments on other income, if there is any abnormal income: NA
2. Comments on funds invested outside business; details, if there is any
increase during the year and whether any permission was obtained: NIL
3. Investment in Associates/ Sister Concerns. Key financial
indicators of
these firms and their probable impact on our borrower : NIL
4. Investments in Shares/ Securities - Present market value of these
securities: NIL
5. Inter-corporate Deposits /Loans and advances: NIL
M/s Saman Trading Company, Khuldabad branch

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FASCIA SIGN W ITHOUT BRANCH NA ME

6. Investment for modernization/ expansion of Associates :

NIL

7. Inter Companies transactions : NIL

8. Whether any investment in Associate Concern is doubtful of recovery: NO
9. Comments on Balance Sheet
: NIL
-- Notes to the account:
NA
-- Provisions not made:
NA
-- Disputed liabilities
NA
-- Bad & Doubtful debts:
NA
-- Export Import Business
NA
-- Old inventory
NA
-- Whether statutory payments like PF/ Dues
to SSI are made.
NA
-- Any qualifying remarks of the auditors:
NA
3.0 ASSESSMENT OF WORKING CAPITAL

Last assessment on what sales and for which year proposed: NA

Whether firm has achieved last accepted sales, if not reasons: NA

Net Sales/Export achieved: The firm has achieved sales of Rs 189.63

lacs during 2010-11.

Calculation of W.C.Finance (as per first method of lending)

(Amt in lacs)
ESTIMATED PROJECTED
31.3.12
31.3.13
Total Current Assets (i)
55.34
59.87
Less: Current liabilities
other
than
Bank
0.75
0.35
borrowings(ii)
Working Capital Gap(iii)
54.59
59.52
Actual /Projected Bank
40.00
40.00
borrowing (iv)
Total Current liabilities
40.75
40.35
(ii+iv) (v)
25% of total WCG (vi)
13.65
14.88
Actual/Projected
NWC
14.59
19.52
(i-v) (vii)
Min. stipulated margin
14.59
19.52
M/s Saman Trading Company, Khuldabad branch

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FASCIA SIGN W ITHOUT BRANCH NA ME

25% of WCG/projected
NWC
(whichever
is
higher) (viii)
MPBF (iii-vii)
Excess borrowings, if
any

40.00
-

40.00
-

Working Capital Assessment as per PBF Method

(Rs in lacs)
Particulars
Estimated
Projection
31.03.201
31.03.201
2
3
Projected Turn over
350.00
450.00
Accepted Turn over
228.00
275.00
Working capital requirement
(25% of Accepted Turn over)
57
68.75
.00
Minimum stipulated Margin
(5%
of
sales
or
NWC
11.40
whichever is higher)
13.75
Actual/Projected NWC
14.59
19.52
Permissible Bank finance
(Working capital requirement
49.23
42.41
minus minimum stipulated
margin)
Requested by the firm
40.00
40.00
PBF considered by us
40.00
40.00
Note: Though the higher of above two methods is Rs. 49.23 lacs but, at the
request of the firm PBF of Rs. 40.00 lacs may be sanctioned. However,
drawings will be allowed strictly as per the DP available in the account.

Comments on inventory holding/creditors/debtors level/ reasons for

accepting large variance in inventory/creditors/debtors level
(In Days)
Holding
2011
2012
2013
period
Stock
13 D
28 D
44 D
M/s Saman Trading Company, Khuldabad branch

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FASCIA SIGN W ITHOUT BRANCH NA ME

Debtors

23 D

2D

2D

Stock holding period was very low due to low storage capacity & low turnover
now after increasing storage capacity by two more godowns has shown
considerable increase in stock & sales (projected) hence increase in stock
holding period. Average Stocks holding is 30-45 days which looking to the
nature of business appears to be reasonable
Debtor holding period is projected 2 days which in good sign in wholesale
business because of growing turnover; firm will extend the credit to their
existing clients.
STRENGTH, WEAKNESS, OPPORTUNITY & THREATS (SWOT):
STRENGHTH
1.
2.
3.
4.

The proprietor has sound means and experience of more than 25

years in the trade.
Because of being in the business from the early stage, party is
having well established marketing net work in the state. It does
not come across any constraint to sell its products.
We have security coverage of more than 155% by way of collateral
securities.
Party is also engaged in production of copies, registers etc .This
business will support the main business in tough times.

WEAKNESS
1. Trading business always operates at a very thin profit margin
OPPORTUNITY
1.

Ever-increasing demand of papers in the market will provide

immense opportunities to grow in the activity.

THREAT
1. Entry of more traders for the same product may affect the business.
2. Any adverse movement in govt. policy will affect the business severely

M/s Saman Trading Company, Khuldabad branch

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FASCIA SIGN W ITHOUT BRANCH NA ME

ANNEXURE D
Terms & Conditions
Name of A/c-M/s Saman Trading Company
S.No
.
1
2
3
4
5

Particulars

Detail

Nature
facility
Limit
Sector

Rs. 40.00 Lacs

SME Expanded(C & I Advance)

of Cash Credit

Purpose
Working capital
Margin
25 %
Rate
of 5%+Base rate i.e. 15.75% at present
Interest
(Base rate is subject to change from time to time as
per Banks extant guidelines)
Securities 1. DP Note
2. Hypothecation Agreement hypothecating stocks and
receivables.
3. Letter of Continuing Security
4. Various
declarations/undertakings/affidavits
including LDOC 134/136 and CIBIL undertaking
5. General Form of Guarantee to be executed by Mr.
Riyazuddin.
6. Power of attorney in respect of book-debts(LDOC86)
Period
12 Months subject to annual review

(A) Other terms & Conditions

All exposure shall also be covered by following Securities:

Equitable mortgage of residence cum shop at building no. 11/94/106

at Nakhas Kona, GT road, Allahabad standing in the name of Sri
Riyazuddin s/o Gulam Nizamuddin
Equitable mortgage of residence cum godown at building no. 88 A at
M/s Saman Trading Company, Khuldabad branch

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FASCIA SIGN W ITHOUT BRANCH NA ME

Nakhas Kona, GT road, Allahabad standing in the name of Sri

Riyazuddin s/o Gulam Nizamuddin
Personal guarantee of Mr. Riyazuddin

(B) Firm to undertake that:

The entire sales should be routed through the account with us only.
The firm shall deal exclusively with us.
The firm shall not divert any part of working capital for any other
purpose.
The firm to submit monthly performance of sales along with the
Stock and book debt statements and audited Book Debt statement
on quarterly basis.
Firm shall not go for any expansion / diversification without prior
permission of the Bank.
Firm to raise / infuse fresh capital of Rs.5.00 lacs in the business in
current year to maintain acceptable proportion between equity and
borrowings as projected.
All securities charged to the Bank shall be comprehensively insured
possibly under banccasurance scheme.
Penal interest @ 2% to be charged as per banks rules on
default/non-compliance of any of the terms & conditions.
Party to display banks sign board in the premises of the firm at
appropriate place.
Bank reserves the right to discontinue the facilities/ advances/
Loan and to withhold/Stop any disbursement without giving any
notice in case of non compliance/ breach of any other terms and
conditions stipulated therein from time to time as also in the
relevant documents as well as in case any information /particulars
furnished to the Bank is found to be incorrect or in case of any
development or situation wherein the opinion of the Bank , its
interest will be / is likely to be prejudiciously affected by such
condition of disbursement.
Processing, documentation, inspection & other charges (if
applicable) to be recovered from time to time as per banks norms.
Proper books of accounts such as stock register, sale & purchase
register are to be maintained as per the Banks requirements and to
be made available to the Bank during inspection.
The facilities are sanctioned for a period of 12 months. Renewal of
facilities will be subject to satisfactory conduct and performance for
which the required information (financial statements etc.) should be
submitted by the borrower two months before the due date.
In case of any shortfall/contingency, the borrower should arrange
M/s Saman Trading Company, Khuldabad branch

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FASCIA SIGN W ITHOUT BRANCH NA ME

additional funds from the own sources.

The terms and conditions are subject to change from time to time.
The firm shall undertake that during the currency of the Banks
credit facilities it would not, without the permission of the bank in
writings:
o Effect any change in the constitution.
o
Formulate
any
scheme
of
merger,
acquisition/amalgamation/reconstitution.
o (iii) Undertake guarantee obligations on behalf of
any other
firm, firm or person.
o (iv) Sell, assign, mortgage or otherwise dispose off any of the
firms fixed assets charged to the Bank.
o (v) Create any further charge, lien or encumbrance over the
assets and properties of the firm charged/to be charged to the
bank in favour of any other bank/financial institutions,
Firm/Firm or person.
o (vi) Invest, deposit or lend funds to group, other corporate,
bodies, firms or person.
Proprietor of the borrowing firm will submit a declaration that he is
not related to any director of our bank/any other banking firm or to
any staff of our bank.
The firm should ensure and satisfy that all required
permission/approvals/licenses clearances under various laws/rules
have been obtained by them from the competent authorities and the
stipulated
terms/provisions/conditions
thereof
are
complied
with/observed in totality. A suitable undertaking to keep such
permissions always valid to be furnished by the firm.
Negative Lien: -The firm should not create, without prior consent
of the Bank, charges on their any or all properties or assets during
the currency of the credit facilities granted by bank.
(C) Branch to ensure:
o Branch to keep on record the valuation report of land and
building and valuation to be satisfied upon.
o Branch to impress upon the firm for improvement in financial
ratios by inducting fresh fund in the business to improve credit
rating.
o The facility to be released after the documents are duly vetted
by Banks Banks approved Advocate.
o Branch to allow drawing in the account strictly on the basis of
drawing powers available in the accounts within the sanctioned
M/s Saman Trading Company, Khuldabad branch

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FASCIA SIGN W ITHOUT BRANCH NA ME

limit.
o Branch to closely monitor the sales performance of the firm on
quarterly basis and ensure that the projected level for the year
2011-12 as accepted must be achieved.
o Branch to obtain an undertaking for disclosure of information
to CIBIL.
o Branch has to ensure that whatever details have been given in
F-135 of all promoters and guarantor must be verified at their
end including identifications of concerned persons.
o Branch to keep on record the NEC/Legal Opinion etc. obtained
from banks approved advocate.
o Branch not to consider book-debts older than 90 days while
calculating drawing power in the account.
o Branch to comply and ensure fulfillment of KYC norms in
respect of borrowers/guarantors.
o Branch to verify the genuineness of the title deeds and other
important papers/documents etc. at their end before
disbursement of the facility and obtain a certificate from the
empanelled advocate in respect of genuineness of title deeds
and keep the certificate on the branch record.
o Inspection of stocks to be carried out at least on bi-monthly
basis and report to be submitted to Regional Authorities.
o The mortgaged properties will be lodged in FINACLE
menu CERSAI as per BCC circular BCC:BR:103:100 dated
27.04.2011
o Processing charge Rs 11200/= (on annual basis), pre
inspection Rs 1103/= per inspection and CIBIL charge
Rs 1000/= shall be payable upfront.
o Branch should obtain credit report from J&K Bank
before release of facility and satisfied upon.

M/s Saman Trading Company, Khuldabad branch

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FASCIA SIGN W ITHOUT BRANCH NA ME

Enclosure to Circular no. BCC: BR:101:24 dated 23.01.2009

ASCROM DATA INPUT SHEET
(For Critical Fields Only)
Zone Name
UPU
Region Name
Allahabad
Branch
Khuldabad
Borrower Name
M/s Saman trading company
Borrower ASCROM ID
(To be filled in after
opening of account)
Name of Field
ASCROM
Description
Code
1
Constitution
45
Proprietorship-Male
2
Occupation
704
Traders
3
Religion
2
Muslim
4
Special Category
99
Others

5
4
7
8
9

Sector
5
Retail Trade
Scheme
999
Any others
Activity
4150
Trading of paper
Sanctioning Authority
92
SME Loan Factory
Turnover Amt in
*********** Rs. 189.63 lacs(for 2010-11)
Rs(Projected Turnover for
assessing credit limit)
10 Business Segment(As per
SME Expanded (trading)
our Banks internal
segmentation)
11 Last three Year
*********** 2010
2011
2012
Sales(Amt in Rs)
55.94
189.63
350.00
12 Investment in Plant and
Rs. 2.16 lacs(approx.)
Machinery/Equipment(In
case of
Manufacturing/Service
M/s Saman Trading Company, Khuldabad branch
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FASCIA SIGN W ITHOUT BRANCH NA ME

13
14
15
14

units)
Credit Rating/Credit
Score
External Credit Rating
Repayment Mode
Security

Place: Allahabad

*********** BOB- CR- FR*********** Not applicable

NA
Value(Primary Security) Rs.
59.87 lacs
13
Value(Collateral Security)
Rs.62.34 lacs

Recommending Officer
Authority

Sanctioning

Date: 04.08.11

M/s Saman Trading Company, Khuldabad branch

22