MSME- 3

Annexure III

BANK OF INDIA SSI Andheri East Branch

PROPOSAL FORM FOR ADVANCES TO MICRO AND SMALL ENTERPRISES
PROPOSAL NO: SSI:ZO:SME:1213:33/67
DATE:29-06.16

REVIEW: with additional limits

ACCOUNT: M/s Rama Packaging

Classification:

Small Enterprises Manufacturing

Cust ID : 000064708
CC A/c : 009030100000301
Advance since:Sept 2000

Credit Rating of the

account

SBS 5

Whether

Asset Code:
(No/Description)

11/ Standard

1) Advance to SC/ST No
2) Advance to Minority
No
3) Under any Govt Sponsored Programme/Scheme No
4) Woman Beneficiary No
5) Whether covered under CGTMSE scheme No
6) VAT Registration Yes
8) Whether member of any Association: No

A.
BORROWER PROFILE :
1. Name of Account
M/s Rama Packaging
2.
3.
4.
6.
7.

Constitution
Business/Activity

Proprietorship
Manufacturer of LDPE, LLDPE, Polyethylene Films, Plain
and Printed Bags.
Established in
March 1988
5.Occupation Code 25201
If the account is new , name of the earlier Banker : N.A.
Key person: Mr. Sunil Gul Chaudhary

B. ISSUE/S FOR CONSIDERATION :

8.
Present Request : Review with Additional limits and change of terms
9.
Last Sanction / Review : CM dated 10.04.2015

C.
10

FACILITIES & SECURITY COVER :

Existing
Propo Inc. (+) /
Limits (with
sed
Dec.(-)
p
in limits
u
r
p
o
s
e
)
WC (FB)
2. CC-Stock
3. CC-Book
Debts

20.00
50.00

20.00
50.00

-----

4.Max. (2+3)
5. Letter of
Credit (DP DAUpto 90 days)
8. Total

70.00
25.00

70.00
25.00

Nil
---

11 Security

Principal

95.00

95.00

(Rs. in lacs)

Pricing
ROI/
Commission
(proposed)

Present
Outstand
ing

Overdues

2.50% over
MCLR +
0.30%
BSS,Presently
12.20%

As per extant
guidelines

---

Nil

Particulars

1.Hypothecation of stock
2.Hypothecation of book debts

Total
Collateral Existing:
1. Equitable mortgage of land
& building situated at S.No.
375/4, Village-Kachigam,
Nani Daman, Dist. Daman
in the joint names of M/S
Pearl Products & M/S
Rama
Packaging
Industries.
2. Extension
of
equitable
mortgage of Gala / Unit No.
218,
Allied
Industrial
Estate, Allied Industrial
(Non Residential) Premises
Coop. Soc. Ltd.,Owned by
Mr.Sunil
Gul
Chodhary(EQM of this gala
extended for covering limits
of M/S Nidhi Polymers)

Date of
valuation report

31.05.16
N.Nayak
Associates report
Dt. 06.01.2014

P.B. Desai
14.03.2011
Value Rs. 57.60
lakhs

Value(Our share)
(Rs. in lacs)
Present Proposed

Total
Grand Total
*As per last proposal value of collateral security of the property was taken 50 % of the
value in the account and 50 % in the a/c M/S.Pearl Products.Since last review of M/S.Pearl
Product which was sanctioned under CGTMSE scheme on 25-04-2014,we have taken total
value of the property as a collateral security.
**Total valuation of the property is Rs.57.60 lacs.Rs.45.00 lacs is taken as a collateral
security in other group account M/S.Nidhi Polymers enjoying credit facility with us.
ACR:

CCR:

(Rs in lacs)
12.

Name of Proprietor

Assets

Liabilities

Net worth *

1.Shri Sunil Gul Chaudhary

5, Trimurthi Coop. Soc. Ltd.
17 ft Road, Khar West,
Mumbai 400 052
Guarantor/s' Name
1.Shri. Ishwar P. Chaudhary
B-21,
Paritosh
Building,
Kapol CHS, V.M. Road,
Mumbai 400049
2.Mrs. Kavita Gul Chaudhary
5, Trimurthi Coop. Soc. Ltd.
17 ft Road, Khar West,
Mumbai 400 052
3. M/S Pearl Products & its
partners namely
Mr. Manoj I. Chaudhary
B-21,
Paritosh
Building,
Kapol CHS, V.M. Road,
Mumbai 400049
2. Mr. Mukesh I.Chaudhary
B-21,
Paritosh
Building,
Kapol CHS, V.M. Road,
Mumbai 400049
3. Mrs. Poonal I.Chaudhary
B-21,
Paritosh
Building,
Kapol CHS, V.M. Road,
Mumbai 400049
D.
CONDUCT/VALUE OF ACCOUNT :
13. Conduct of the account :Satisfactory

Basis
Personal B/S
as
of
_________/
CBD23
dt.
_________
CBD23
dt.
_________
CBD23
dt.
_________

18.95
Nominal

As
per
audited B/S
2015
CBD23
dt.
16.06.16

25

CBD23
16.06.16

485

CBD23 dt
16.06.16

dt.

a.
b.

Cheques returned during the year under review for financial reasons :6
Particulars of L.C./devolved and guarantees invoked along with their present
position. Nil

Utilisation of Account
14

Utilisation of :

Last Year (2014-15)

Current Year (2015-16)

Amount

70

100

25

50%

Amount

a) Fund Based Limits

i. Working Capital
b) Non Fund Limits
15

16

70 100
25

100%

Export Turnover
Import Turnover
Earning
Interest
Other Income

Last Year (2014-15)

No
.

Amt.

Earnings

Current Year (2015-16)

No.

Amt.

Earnings

Bills
Purchased/
collected
LCs opened
Guarantees issued
Any other Income
Total
Yield (annualised)
Yield for current year is estimated to reduce due to non-resorting to TOL after
enhancement.
17.
Details of ad-hoc /over limits allowed during year under review:
Date & authority
Amount of ad-hoc/over Period of ad-hoc/over Present position
limit (Rs Lakh)
limit
TOL granted within Branch delegation which has been regularized by the firm within stipulated
period.

FINANCIAL POSITION
18.
22
M/S RAMA PACKAGING INDUSTRIES
CC A/c 009030100000301
a)

b)
c)
d)
e)
f)
g)
h)

Paid up Capital :
- Equity
- Preference Share
Tangible Net worth (Excl. rev.
reserve & net of intangible assets)
Investment in cos.(of which
associated companies/
subsidiaries)
Adjusted TNW
Quasi Capital
Capital Employed*(total funds
employed)
Net Block
Net sales : Domestic
Exports
Total

i)
j)
k)
l)
m)
n)
o)
p)
q)
r)

s)
t)
u)
v)

Other Income
Depreciation
Gross Profit/Loss
Net profit/loss
Cash Accruals (l+k)
Net profit / Capital Employed (%)
Current Assets
Current Liabilities
RATIOS :
Current Ratio
Debt/Equity :
Total Term Liab./TNW
Total Outside Liab./ TNW
Debt quasi equity ratio
Profitability %: PAT/Net Sales
DSCR a) Company as a whole
b) For specific TL
Interest Coverage
Inventory + Receivables/ Sales

Rs. lacs
Rs. Lacs
Estimat Projected
e
2016-17
2017-18
30.51
37.12
30.51
37.12
0.00
0.00
30.51
37.12

Audited

Audited

2013-14
12.41
12.41
0.00
12.41

2014-15
14.07
14.07
0.00
14.07

Provision
al
2015-16
19.40
19.40
0.00
19.40

0.00

0.00

0.00

0.00

0.00

12.41

14.07

19.40

30.51

37.12

97.64

204.52

196.43

215.09

215.32

46.71
254.21
0.00
254.21
4.72
5.65
9.31
3.67
9.32
3.76
179.95
129.89

50.41
484.40
0.00
484.40
10.37
4.92
9.99
5.07
9.99
2.48
255.99
101.89

48.36
488.14
0.00
488.14
8.20
4.46
12.15
7.69
12.15
3.91
254.22
107.04

57.33
585.77
0.00
585.77
3.87
8.60
20.75
12.15
20.75
5.65
245.42
92.66

49.92
644.35
0.00
644.35
3.57
7.42
25.43
18.01
25.43
8.36
255.20
96.75

1.39

2.51

2.38

2.65

2.64

6.87
17.33
8.17
1.44

13.54
20.78
9.89
1.05

9.13
14.64
3.22
1.58

6.05
9.09
4.04
2.07

4.80
7.41
3.20
2.80

1.54
44.11

1.37
33.42

1.36
33.51

1.66
31.01

1.84
30.71

Comments of financial position:

Firm has submitted CMA data based on audited balance sheet as on 31.03.2015
and Estimated Balance Sheet as at 31.03.2016 and projections up to 2018.
Capital/ Net Worth
Capital/TNW of the firm was at Rs12.41 lakh as on 31.03.2014. It has increased to Rs.
14.07 lakh as at 31.03.15 . Net worth of the firm has been estimated at Rs. 19.40 lakh as
at 31.03.16 due to infusion of capital and retention of profit. The firm has further agreed to
infuse more funds and retain profit in current year and projected net worth at Rs 30.51
lakhs. We may accept. Stamped undertaking not to withdraw unsecured loan till currency
of advance is already in place.
Net Sales
The firm has achieved sales of Rs 484.40 lakh as on 31.03.15. The firm has estimated
sales of Rs 488.14 lakh for FY 2015-16.and projected sale of Rs 585.77 lakhs by the FY
2016-17.The firm has achieve sale of Rs
99.6 lakh upto
29.06.16 and have order worth Rs 1.50-2.00 crore to be executed
upto to August
2016 .Considering past trend and track record sales figure may be considered
reasonable and achievable.
Current Ratio
Current ratio as on 31.03.15 was at 2.51 and estimated at 2.38 for the year 2015-16.
The current ratio is further expected to improve during FY 2016-17 to 2.65. We may be
accept.
Debt/ Equity Ratio
DER was at 20.78 as at 31.03.15. and at 14.64 as on 31.03.2016 as per provisional
figures .This is mainly due to the withdrawal of capital by the proprietor. We informed
borrower to infuse the capital to bring down the DER at acceptable levels. The DER is
expected to improve further to 9.09 for FY 2016-17. Partners have informed us to infuse
more capital in the business to improve DER.
However, QUASI DER of FY 2014-15 is 9.89 and improved to Further to 3.22 for FY
2015-16 which is within banks acceptable norm. We may accept.
Net Profit/ Profitability:
The firm has shown profit of Rs 5.07 lakh for the year 2014-15.Profit is estimated at Rs
7.69 lakh for at FY 2015-16.Firm has been successful in processing goods and from
Indian Airlines services has improving profitability. Profit is increased in subsequent year.
Hence We may accept.

ISCR:
ISCR for the company was at level of 1.54 & 1.37 for FY 2013-14 & 2014-15
respectively. It is further upto 1.66 for FY 2016-17.Firm has comfortable position to
services interest. We may accept.
Statutory Auditors remarks/ Qualifications: NIL
F.

AUDIT/INSPECTION/MEETINGS :
19
20

G.

Remarks/observations
Stock inspection
08.03.2011
Satisfactory
Any adverse comments of Statutory/ Nil
Internal/Concurrent/revenue/RBI Auditors
and Borrower's Auditors (as extracted
from the Balance sheet)

ASSESSMENT/JUSTIFICATION

21.

Working Capital Assessment

WORKING CAPITAL ASSESSMENT

1
2
3
4

Gross Sales
25% of gross sales
5% of gross sales
Permissible bank finance

Audited

Estimate

Rs. Lacs
Projection

2014-15
484.40
121.10
24.22
96.88

2015-16
488.14
122.04
24.41
97.63

2016-17
585.77
146.44
29.29
117.15

As per turnover method under Nayak committee firm is eligible for working capital of
Rs 117.00 lakh against stock and book debt and letter of credit facility.The firm has
achieved sales of Rs 484.40 lakh for 2014-15 and estimated Sale of Rs 488.14 lakh for
FY 2015-16.Firm has projected sale for 2016-17 at Rs 585.77 lakh. The borrower has
requested for continuation of the existing limits .We recommend for review of working
capital cash credit limits at level of Rs.70.00.00 lakh where in Rs20.00 lakhs against
stock and Rs 50.00 lakh against the book debts and Rs 25 lakh against letter of credit.

We recommend for conformation of working capital limits:

Limits
1. Cash Credit against Stock
:
2. Cash Credit against Book Debts:
Max. (1+2)

Existing
20.00
50.00
70.00

Proposed
20.00
50.00
70.00

3. Letter of Credit (I/F DP DA 90 days):

Max. (1+2+3)

25.00
95.00

25.00
95.00

22.0 Non-Fund Based Limits Assessment: L.C.s

Sr.
No.
01
02
03
04
05
06
07
08
09

Rs.25.00 lacs
(Rs. In Lacs)
Particulars
Amount
(Projections)
2016-17
Purchase of Raw Materials
503.5
Purchase under Letter Of Credit (40%)
201.4
Letter Of Credit Usance Period
90 days
Lead Time
10 days
Average usance period including Lead time
100 days
L/C rotation Period
04
L/C Requirement
Eligible L/C Limit
L/C Limit Requested

Bank Guarantees
NIL
23.

H:
24.
i.
ii.
iii.
iv.
v.
vi.
vii.

Project Finance/Term Loan Assessment: NA

Due Diligence:
Details of due diligence done.
Documents valid up to:
Inspection done on
,finding Satisfactory
Insurance of the property valid till
Verification of Factory at Daman done on
Inspection of properties to be mortgaged(if applicable) done on
Search With Registrar of Companies obtained N.A
SearchReport dated from M/S vijay & co.Dated
and from Adv.
V.M.Devurkar & co.Dtd.
In respect of property situate at unit No.218,Allied
Industrial Estate of Allied Industrial(Non-Residential)Premises coop.SocietyLtd,Off
MMC Road,Mahim,Mumbai-400016.valuation report from panel valuer M/S
P.B.Desai dt.
.Title search from M/S.Vijay & Co.Dtd.
and from

viii.
ix.
x.
xi.

Adv.M/S.Aartie Shinde & co.dated

in respect of factory situate at
S.No.375/4,Village-Kachigam,Nani Daman,Dist,Daman in the joint names of
M/S.Pearl Products & M/s.Rama Packaging being obtained.Valuation report dtd.
From panel valuer M/s.N.Nayak Associate obtained in respect of factory at
Daman.
Status Report from existing bankers(if applicable).N.A
CIBIL/ECGC/RBI wilful defaulters list checked Finding :Existing borrower
satisfactory
Market enquiries-Satisfactory
Pollution Control Board Clearance Obtained: Valid till

I: Details of security (to be given facility wise - if common security is obtained for more
than one facility, suitable remarks to be incorporated)
25. PRINCIPAL SECURITY
Facility

CC- Stocks
CC- Book
Debts

Letter of
Credit (DAUpto 90
days)

Nature of
Security

Value of
Security

1.
Hypothecation
of stock
2.
Hypothecation
of book debts
Margin in TDR
(20%)

26.COLLATERAL SECURITY
Nature of
Owned by
Location
Security

1.
Equitable
mortgage
Factory
premises
2. #
Extension
of
Equitable
mortgage

M/s Rama
Packaging
&
M/S
Pearl
Products
Mr.
Sunil
Gul
Chaudhary

S.No. 375/4,
VillageKachigam,
Nani Daman,
Dist. Daman
Unit No. 218,
Allied Industrial
Esate of Allied
Industrial
(NonResidential)
Premises
Coop. Society

Date of
Valuation
31.05.16

Date of
Creation of
first/Second
charge
23.07.03

In case of
pari-passu/
second
charge over
N.A

31.05.16
Upto full
utilization

Valuation
Date
Latest
&
Date
Amount
&
Amount

Rs. in Lakhs
Date of
In case of
creation of
parifirst/secon
passu/
d charge
second
charge
over

10

Ltd., Off MMC

Road, Mahim,
Mumbai 400
016

J : Position of Accounts as on 15.03.2011

Facility

Sanc.
Limit

1.CC- Stocks
2.CC- Book Debts
Max.(1+2+3)
4.Letter of Credit
(DA- Upto 90 days)

20.00
50.00
70.00
25.00

Total

95.00

Value of
Security As
on

Group Account Exposure With US

Name of
F.B/N.F.B
Company/Firm
M/S Nidhi Polymers
M/S Rama
Packaging Industries

Drawing
Power

(Rs. in lacs)
Drawing
O/S Amt.
Limit

Outstanding

Out of order,If any

K . BRANCH COMMENTS & RECOMMENDATIONS:( in brief)

Mr. Sunil Gul Choudhary (key person & partner) is a young entrepreneur and a
Graduate from Mumbai University. After schooling he started taking part in his
parental family business viz M/S Rama Plastic & Moulding Works wherein he
gained experience of Plastic and Injection moulding items. Then he started
his own business a register firm name & style of M/s Rama Packaging
Industries in 1998 at Daman with his sister in low Mrs. Gitika Choudhary. He
has rich experience in all the areas of a Manufacturing concern such as
manufacturing, commercial, marketing, financial administration etc.
M/S Rama Packaging Industries is Partnership firm promoted by two members
of CHOUDHARY Family in the year 1998 namely Mr. Sunil Choudhary having
75% Share and Mrs. Gitika Choudhary having 25% Share.The partnership firm
was dissolvedon 1st April 2012 and it became proprietory firm of Mr.Sunil Gul
Choudhary.Rama Packaging Industries is having the well known customer
base as Air India,Apna Bazar,BARC etc.
The factory is at Kachigam in Daman.The land & Building is owned by M/S
Rama Packaging and M/s.Pearl Products owned by Uncle Mr.Ishwar Chodhary
and his family members. The family is engaged in plastic business for more

11

than 30 years and has good knowledge/experience in the business. The

conduct of all the account is overall satisfactory.
Rama Packaging Industries is a manufacturing concern engaged in
manufacturing & printing of Plastic Films, Bags, Rolls, Plain & Printed LD,
LLDPE, PP, HMHD, Injection Moulded Products & also reprocessing of plastics.
Financial Position:
Overall financial position of account is satisfactory. It has been discussed in detail on page
no.
Security:
Primary Security:
The limit is presently secured by hypothecation of stocks and book debts, as primary
security. Letter of Credit limit to be secured by Margin in form 20 % TDR.
Collateral Security:
The collateral security consists of
Existing:
1. Equitable mortgage on Unit No. 218, Allied Industrial Esate of Allied Industrial
(Non- Residential) Premises Coop. Society Ltd., Off MMC Road, Mahim, Mumbai
400 016 owned by Mr.Sunil Gul Chaudhary (partner in M/S Rama Packaging
Industries). The said gala is originally mortgage with us under working capital
limits sanctioned to M/S Nidhi Polymers. Residual Value of gala based on latest
valuation report of P.B.Desai dt. 14.03.11 is Rs.12.60 Lakhs ( Rs. 57.60 Lakhs
less Rs. 45.00 Lakhs WCFB limit of Nidhi Polymers).
2. Equitable mortgage of factory land & building situate at S.No. 375/4, VillageKachigam, Nani Daman, Dist. Daman in the name of M/S Rama Packaging & M/S
Pearl Products. Value Rs. 65.00 Lakh as per valuation report of approved valuer
R.D.Ashtaputr dt. 22.02.11

The limits in the account are secured by the Guarantee of M/S Pearl Products & its
partners namely
1.Mr. Manoj I. Chaudhary (son of Mr. Ishwar charudary)
2. Mr. Mukesh I. Chaudhary son of Mr. Ishwar charudary)
3.Mrs. Poonam I. Chaudhary (son of Mr. Ishwar charudary).

1. Mr. Ishwar P. Chaudhary - ( Uncle of Mr. Sunil Gul chaudhary)

2. Mrs. Kavita Gul Chaudhary (Mother of Sunil Gul Chaudhary)

12

Credit rating and Rate of interest:

Presently firm is assigned Credit rating of AA with ROI at BPLR i.e.12.20% p.a. We
have carried out the rating exercise based on audited Balance sheet as on 31.03.2015.
Accordingly, the firm is entitled for a SBS 5 rating as per the rating exercise. Therefore
rate of interest applicable will be: for cash credit limits- 3.75% over base rate presently
12.20% p.a. with monthly rests. For term loan: 2.20% above base rate plus presently
12.20%.p.a
In view of above and having regarded to,
a) Long standing association with us
b) Financing to SME sector
c) Availability of security

We recommend
I.

SANCTION of:

Limits
Existing
1.Cash Credit against Stock
:
20.00
2. Cash Credit against Book Debts:
50.00
Max. (1+2)
70.00
4. Letter of Credit (I/F DP DA 90 days): 25.00
Total

II.

APPROVAL FOR:
i)

III.

95.00

Credit Rating of SBS-5

SUBJECT TO:
i)
ii)

Execution of appropriate security documents

Creation/extension of equitable mortgage ;

Proposed
20.00
50.00
70.00
25.00
95.00

13

iii)
iv)
v)

Vetting of security documents and completion of CPA exercise.

Disbursement of loan towards machinery will be made directly to seller as
per quotation submitted by them. The firm to submit all bills / receipts. Any
escalation in costs to be met by firm from its own sources.
No finance will be granted for purchase of second hand machinery. No
disbursement will be made on reimbursement basis.

Submitted for sanction/approval, please.

RECOMMENDED

SANCTION

(Smita Joshi)
Senior Manager (Cr.)

(Piyush Bardhan)
Chief ManagerManager

14

L. FLOW CHART
Date application received at branch
Date of Branch Proposal
Date proposal received at Zonal Office
Remarks

07.10.2010
10.10.2010