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Credit Approval Memorandum

Sanction of fresh Limits

Term Loan: Rs.27.50 Cr


Sales Invoice Discounting: Rs.9.0 Cr
Flexi Loan: (3.0 Cr)
Letter of Credit: 3.0 Cr

Total Exposure: Rs. 39.50 Cr

OPP ID_ 120593

UMW Dongshin Motech Pvt. Ltd Page No 1 of 22


Sage CRM No. OPP ID_120593 Date : 06.06.2015
Sourcing ( ASM to fill) Prashant Shinde
CLOS ID 201541002940
Total No of Deviation ( ASM to fill)
Date & time of login to CPA (DD/MM/YY - HH/MM)
Date & time of query raised by CPA/ACM (DD/MM/YY - HH/MM)
Date & time of query resolved by Sales (DD/MM/YY - HH/MM)
Date & time of uploading of Credit note to (DD/MM/YY - HH/MM)
approving authority
Date of approval DD/MM/YY
Total login TAT
Total Credit TAT

CREDIT APPROVAL MEMORANDUM


Controlling Branch / Zone Pune Under restricted list: No
Name of Principal Automotive components & Engineering Type of exposure: Term Loan,
components Sales invoice Discounting & Letter
of Credit
Name of customer UMW Dongshin Motech Private Limited PAN No. AACCD5858L
CAM type Fresh Proposal Client since: NA
Renewal due:
Core business of Automotive components & Engineering components
customer
Regd. Office: Plot No. 19, MIDC Talegaon Dabhade, Tal-Maval, Dist- Pune-410507
Names of Guarantors
PAN nos. Mr. Dato Muthu Kumar

Constitution Pvt. Ltd. Co. Incorporation date 16.04.2007


Recommendation No Recommendation Stop Supply No
letter from Corporate letter from corporate Arrangement
Please Note: all promoter & directors is Malaysian, they are staying in Malaysia and they don’t have
Indian Pan Card, address proof & contact no.

TOTAL PROGRAMME SIZE – ______

Portfolio Performance Summary – Dealer Program Rs in Cr


Total Limit Sanctioned Total limit Total limit available on Overdue and NPA in the
on Purchase side sanctioned on Dealer Purchase & Sales side program
side under Corporate
program

FI Initiated on As per new Policy FI report is not required.


Office address Plot No. 19, MIDC Talegaon Dabhade, Tal-Maval, Dist-
Pune-410507
RCU - List of documents submitted 1. ITR’s
2. Pan Card
3. Bank Statements
Screened/ Sampled 1. ITR’s
2. Pan Card

UMW Dongshin Motech Pvt. Ltd Page No 2 of 22


3. Bank Statements

Extract of report obtained Credit regarding Cibil, De-dupe, etc.


Track record of the promoters / directors RBI Defaulter List : To be done by Credit
with reference to defaulter list of ECGC Defaulter List: - To be done by Credit
RBI/ECGC www.watchoutinvestors.com: To be done by Credit
BIFR List: (www.bifr.nic.in): To be done by Credit
De-dupe: Borrower Dedupe is not in DB & Guarantor
Dedupe is not applicable

CIBIL CHECK Commercial:


Borrower To be done by Credit

Consumer: To be done by Credit

Existing Facility Summary with TCFSL: Rs in Cr


Tranche
Existing Proposed
Facilities
Sanctioned O/s.
Term Loan Fresh Proposal 27.50 -
Sales invoice
Fresh Proposal 9.0
discounting
Flexi loan Fresh Proposal (3.0)
Letter of
Fresh proposal 3.0
Credit

Overdue position of Rs in Cr
0-30 days 30-60 days 60-90 days Above 90 Total
Principal Overdue
New Case
Interest Overdue

DEFERRALS IN THE A/C AND ACTION PLANNED: Not Applicable

Brief background of the borrower, group & nature of business:


UMW Dongshin Motech Pvt. Ltd was incorporated in year 2007, however commercial production of the
company started in year 2010. Company is engaged in manufacturing of automotive components and
engineering components. Initially company started with supplies to General Motors India only &
managed to add major leading OEM’s like Volkswagen/Skoda India, Tata Motors Limited, Mahindra &
Mahindra, Benteler Automotive, Honda/Ford, Piaggio etc.

The Company Existing Customers:-


 Volkswagen /Skoda India
 General Motors India
 Tata Motors
 Mahindra & Mahindra
 Benteler Automotive
 Honda/Ford
 Piaggio

UMW Dongshin Motech Pvt. Ltd Page No 3 of 22


Growth Strategy – Mission & Vision
Mission: - To be a dedicated D2D (Design to Delivery) solutions provider of Sheet Metal
components and aggregates by applying world class manufacturing practices in best technology,
competitive cost and quality.

Vision: - To be the most preferred global and domestic supplier of Sheet Metal and Structural
solutions to the Automotive and General Engineering Industries through a single-minded focus
on excellence.

Current Position & Growth Strategy:-


Quantum Leap New Product:-

2009-2012:- Tier 1 stamping Supplier for OEM’s like GMI, VW, Tata, Mahindra & Benteler

2013-2014:- Value added / Value Engg Assembiles and aggregates for better margins

2015-2017:- Product Manufacturer Like Fuel Tanks Seating Systems 2 W Frames, 2 W Exhaust
System

Shareholding as on 30.05.2015

UMW Corporation Sdn Bhd Datuk Muthukumar Ayarpadde

55 % 45 %

MK Automotive Industries Ltd. (Malaysia) Dongshin Motech Co. Ltd.


(INR 53,11,14,800) (Korea)
(INR 24,16,55,600)

68.73% 31.27 %

UMW DONGSHIN MOTECH PVT


LTD
(INR 77,27,70,400)

EXTERNAL RATING with rating rationale (if available): Not Applicable

UMW Dongshin Motech Pvt. Ltd Page No 4 of 22


Banking details as on 30.05.2015 (Amt in Cr)

Type of Sanctioned
Name of bank facility Limits O/S
Working Capital Facility (Including CF, CC, TA, INF etc.)
Working
Standard Chartered Bank Capital 8.50 Nil

Total W/C Facility 8.50 Nil


Term Loan Facility
Standard Chartered Bank Term Loan 27.67 27.67
Total Term Loan 27.67 27.67
Total Debt 41.06 34.09

Collateral Security provided to the Working Capital bank

Products Portfolio:-
Complex assemblies

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New Product Portfolio

Fuel Tanks

Filters

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Clutches

Grills Seating systems

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Manufacturing Facility:-

Robotic Technology :-

UMW Dongshin Motech Pvt. Ltd Page No 8 of 22


REFERENCE CHECKS

1. Bankers Reference : Not applicable

2. Corporate Reference : No Recommandation letter from corporate

TATA Group association if any: Not Applicable

Financial Analysis Rs in Cr
Sr. Parameters Audite Audite Audite Audite Provisiona Projecte Projecte
No d d d d ls Projected d d
.
2011 2012 2013 2014 2015 2016 2017 2018
Number of months
12 12 12 12 12 12 12 12
1 Total Operating Income(TOI) 21.0 74.4 57.2 96.9 98.2 208.3 251.9 261.9

2 EBIDTA 0.0 -13.9 -6.8 -13.1 19.2 42.3 53.5 55.7

3 E B I D T A/ TOI (%) 0.0% -18.6% -12.0% -13.5% 19.5% 20.3% 21.2% 21.3%

4 Interest 7.3 11.0 9.0 12.6 5.0 5.1 5.5 5.8

5 Depreciation 5.6 6.8 7.3 7.8 9.3 9.6 9.8 10.0

Operating Profit after Dep.&


6 -12.9 -31.6 -23.1 -33.6 4.8 27.6 38.2 39.9
Int.

7 Non Operating Income/Exps. 1.8 1.3 0.2 0.2 0.6 0.0 0.0 0.0

8 PBT -11.1 -30.3 -22.9 -33.4 5.4 27.6 38.2 39.9

9 PAT -11.1 -30.3 -22.9 -3.5 5.4 27.6 38.2 39.9

10 PAT/ TOI (%) -52.9% -40.8% -40.1% -3.6% 5.5% 13.2% 15.2% 15.3%

11 Net Cash Accruals (NCA) -5.5 -23.5 -15.6 -25.6 14.7 37.2 48.0 49.9

12 Net Fixed Assets 119.9 124.2 126.2 127.7 124.5 117.3 132.8 151.9

13 Tangible Networth (TNW) 39.2 28.5 13.0 -20.3 130.1 123.9 162.6 200.7

14 Exposure in Group Co./Sub.

--- Investments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

--- Loans and Advances 0.3 0.2 0.9 2.7 0.0 0.0 0.0 0.0

15 Adjusted T N W (ATNW) 38.9 28.3 12.1 -23.0 130.1 123.9 162.6 200.7

16 Quasi Equity 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

17 Long Term Debt (LTD) 92.7 80.6 97.6 174.8 29.3 10.6 9.8 0.0

18 Short Term Debt (STD) 8.2 12.5 56.5 2.4 9.8 0.0 0.0 0.0

19 Working Cap. Bank Finance 15.7 47.2 0.0 1.2 1.9 0.0 0.0 0.0

UMW Dongshin Motech Pvt. Ltd Page No 9 of 22


20 Financial guarantees 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

21 Total Debt 116.6 140.2 154.1 178.4 41.0 10.6 9.8 0.0

21 TOL 127.0 159.3 167.1 209.3 48.0 75.3 68.8 67.2

22 Total Debt/ ATNW 3.0 5.0 12.7 -7.8 0.3 0.1 0.1 0.0

23 L T D / AT N W 2.4 2.8 8.1 -7.6 0.2 0.1 0.1 0.0

24 TOL/TNW 3.2 5.6 12.8 -10.3 0.4 0.6 0.4 0.3

25 TOL/ATNW 3.3 5.6 13.8 -9.1 0.4 0.6 0.4 0.3

26 Total Current Assets 30.5 43.3 31.2 38.1 36.2 63.4 78.6 93.6

27 Total Current Liabilities 34.2 78.7 69.5 34.5 18.7 64.7 59.0 64.9

28 Net Working Capital -3.8 -35.4 -38.3 3.6 17.5 -1.3 19.6 28.7

29 Current Ratio 0.9 0.5 0.4 1.1 1.9 1.0 1.3 1.4

30 R O C E (%) -4.0% -14.3% -9.7% -15.0% 6.8% 24.2% 32.6% 27.4%

31 Interest Coverage Ratio 0.0 -1.3 -0.8 -1.0 3.8 8.3 9.7 9.7

32 Total Debt/Net Cash Accrual -21.1 -6.0 -9.9 -7.0 2.8 0.3 0.2 0.0

33 Inventory Turnover days 266.1 53.8 106.6 84.0 81.7 77.3 82.8 103.6

34 Debtors Turnover days 87.5 153.5 81.0 64.3 58.9 40.5 40.5 40.4

35 Creditors Turnover days 0.0 78.1 50.0 85.1 37.5 18.2 20.2 20.5

Major positive developments in 2014, which helped financial turnaround:-


Payment terms with General Motors India were changed to 7 days from 45 days. Price re-negotiation
with General Motors India proposed in June 2014 was approved & made effective from January 2015.
Summary of prices approved is as below,
 M300-3853 INR increase per vehicle set price
 SII-3233 INR increase per vehicle set price
 M200- 1911 INR increase per vehicle set price
The above proposed prices changes are one time correction and shall not be discussed for future
variation in the volumes.

• GM India to consider payment of 100% warehousing charges (INR 7.29 Mil.) for the period of
May’13~May’14. UMW Dongshin to explore in-house storage for balance imported child parts.
• As agreed with UMW, GMI to consider INR 10 Mil lump sum payment out of total INR 15.6 Mil
forex impact for Jun 13 to Dec 13 and balance amount to be reconciled and addressed thru'
Pc Price correction after implementation of the child parts under localization.
• UMW confirmed for Capex and tooling investments on new opportunities including M300 Floor
Tunnel, M300 LHD and other business opportunities.

UMW Dongshin Motech Pvt. Ltd Page No 10 of 22


Final offer details:-

Sr.No Particulars Amount RM Remarks


(INR Cr) (Million)
1. Price Increase wef 1st Jan 2014
Based on current volumes
15.00 7.74
2. Forex compensation (one time) Rs 56 Lacs as amortization with
1.56 0.80 CKD localization
3. Warehouse rent / other costs
compensation 0.72 0.37
4. 7 days payment terms - savings
in Interest 1.20 0.62
5. New LHD business (USD 7 million Yearly additional Sales. Net PAT
2.10 1.08 considered
6. Correction of Forex rate to 62.80
Full year impact
1.90 0.98
Total 22.48 11.60

New Business from GMI:-


• The new businesses offered by GMI will ensure much improvement in Capacity utilization
which will get reflected by way of improved positive PAT.
• The left hand drive Export volumes will pick up from Sep 2015. The projected volumes till
March 2016 are 20,000 units. The volumes for 2016 – 2017 is 45,000 units. Thereafter the
export volumes will be in excess of 50,000 units per annum.

Comment on Financials:

Sales:-
The Sales for the FY-2014 is Rs. 96.9 Cr against Rs. 57.2 Cr in the FY-2013. Firm’s Provisional
statement shows sales around Rs. 98.2 Crs in FY 15.

Profitability:-
EBIDTA margin of the company is around -13.1 percent for last financial year.
Net profit margin was -3.6 percent in the financial year 2013-14, improving over previous financial
years -40.1 percent.

TNW & Gearing Ratio:-


Net worth of the company decreasing over the years and it is decreasing to Rs. -20.3 Cr in the FY
2013-14 from Rs. 13.0 Cr in the FY2012-13
Current Ratio:-
Current ratio of the company was 1.1 percent in the financial year 2013-14, from 0.4 percent in the
financial year 2012-13.

UMW Dongshin Motech Pvt. Ltd Page No 11 of 22


Audit findings, if any and compliance status – No major remarks made by the Auditor SNDA &
Associates in Annual Report 2013-14

Confirmation on Payment of statutory dues: Nil as per Annual Report 2013-14

CONTINGENT LIABLITIES AND FX DETAILS (IF ANY): Nil as per Annual Report 2013-14

Note on operations of group concerns with financial snapshots: None

Comparison of latest audited financials with projections provided earlier (in case of
reviews/amends): Not Applicable

ASSESSMENT / JUSTIFICATION OF LIMIT

Monthly Sales / Purchases details

Historical Sales-Purchase
Historical
Mont
hs
Purchases Sales
(Rs in
lacs)

Ess Arcel
Posc Sungw
ar or Othe Bentl Siddi Othe
o- oo Total GMI VW JBM Tata Total
Ste Mitta r er que r
IPPC Hitech
el l

Apr-
165.8 36. 150.5 431. 657.6 112.2 120.2 14.6 66.6 1,04
14 78.63 73.73 2.64
8 83 7 90 0 3 4 6 2 7.73
May-
319.5 24. 135.7 614. 770.9 103.2 73.3 1,06
14 134.04 65.42 50.30 1.35 2.67
3 93 0 21 9 2 0 7.25
Jun-
13. 163.4 473. 715.0 145.4 67.7 997.
14 96.16 101.72 98.01 65.42 0.04 0.12 3.81
99 8 37 6 7 0 63
Jul-
305.3 32. 148.0 566. 808.7 114.7 102. 1,14
14 80.07 50.35 61.72 3.32 2.90
9 71 4 22 0 2 89 4.61
Aug-
171.2 134.6 355. 504.9 123.3 55.5 793.
14 49.49 43.77 56.29 7.86 1.49
9 4 43 4 8 2 25
Sep-
208.9 126.7 488. 290.1 165.5 51.4 28.4 601.
14 115.88 36.81 24.13 31.89 9.60
8 9 46 7 0 2 2 13
Oct-
156.2 30. 150.6 439. 453.7 51.2 21.5 737.
14 35.15 67.05 96.40 51.35 53.80 9.35
3 12 7 22 3 0 8 41
Nov-
250.7 31. 183.7 573. 466.0 109.5 10.8 59.9 43.4 751.
14 56.15 52.15 60.78 0.91
9 03 0 82 1 9 5 1 0 45
Dec-
100.6 16. 176.4 293. 484.0 104. 18.8 771.
14 - 92.09 64.19 - 8.46
8 15 8 30 7 19 0 79
Jan-
202.9 33. 185.6 499. 459.2 11.9 57.2 24.7 714.
15 77.27 92.27 68.92 -
0 24 6 08 7 1 3 9 39
Feb-
196.8 25. 117.6 364. 442.9 46.3 36.9 639.
15 24.18 49.29 59.24 - 4.48
1 53 0 12 1 6 3 22

UMW Dongshin Motech Pvt. Ltd Page No 12 of 22


Mar-
153.9 14. 195.5 474. 373.3 53.3 17.0 551.
15 80.12 29.67 37.56 65.15 - 4.97
2 98 2 22 5 8 9 51

Total 2,32 759.0 259 357. 1,86 5,57 6,42 1,24 692. 375. 86.9 789. 204. 9,81
8.56 4 .52 36 8.85 3.34 6.81 1.73 46 19 4 73 50 7.37
Aver
12.8 1.2 16.2 39.5 535. 103. 57.7 31.2 65.8 17.0 818.
age 6.68 2.47 7.24
3 5 9 2 57 48 1 7 1 4 11
YTD Performance

Apr-
345. 396.9 58.9 10.9 589.
15 234.24 48.02 63.04 29.17 85.00 1.33 7.53
30 4 4 6 87
May
135.1 463. 325.8 53.0 15.8 502.
-15 163.63 84.82 80.15 26.84 75.18 - 5.70
9 79 8 8 1 49

Tot
397.8 84.8 183. 143. 809. 722. 56.0 160. 13.2 112. 26.7 1,09
al - 1.33
7 2 21 19 09 81 2 18 2 02 7 2.36

Monthly projected billings as per Corporate: Data not available

Eligibility of limits:
Eligibility Calculation : (Rs in Cr) GMI VW
Normal Limit:
Audited Sales for FY’14 64.26 12.41
Average monthly projected Sales 5.35 1.03
Rotational cycle 90 Days 90 Days
Eligible Total Funding 16.05 3.09
Limits which can be offered by TCFSL 16.05 3.09
Limits recommended 9.00 (3.00)

Justification:
Client is eligible for limits of Rs.19.14 Cr rotational limits but we are recommending Rs. 9.00 Cr basis
satisfactory sales performance.

Client will provide the confirmation of payment from OEM to which firm is supplying (VW, Benteler)
and will discount the bills.

The Sales for the FY-2014 is Rs. 96.9 Cr against Rs. 57.2 Cr in the FY-2013. Firm’s Provisional
statement shows sales around Rs. 98.2 Crs in FY 15.

LAST APPROVAL COMMENTS AND COMPLIANCE WITH THE SAME: Not Applicable

UMW Dongshin Motech Pvt. Ltd Page No 13 of 22


SUMMARY OF LIMITS: Term Loan

Facility Type Term Loan


Amount INR 27.50 Cr
Purpose Takeover of outstanding term loan with standard chartered bank
Tenor In line with original sanction from standard chartered bank
Moratorium Nil
Disbursement schedule As per original sanction from standard chartered bank

Repayment Repayment Repayment


date percentage amount
15-02-2015 7.50% 24592500
15-05-2015 7.50% 24592500
15-08-2015 7.50% 24592500
15-11-2015 7.50% 24592500
15-02-2016 7.50% 24592500
15-05-2016 7.50% 24592500
15-08-2016 7.50% 24592500
15-11-2016 7.50% 24592500
15-02-2017 10% 32790000
15-05-2017 10% 32790000
15-08-2017 10% 32790000
15-11-2017 10% 32790000

Total 100% 327900000


Repayment structure Quarterly EMI
Upfront fees 1% of the facility sanctioned
Interest Rate 13.50% p.a.
Penal interest 4% p.a.
Interest Payment Frequency Interest to be paid on monthly basis on reducing balance of principle.
Pre-payment penalty 2% on outstanding amount
Security summary and  Exclusive charge on current assets & moveable fixed assets
documents both present & future.
 Exclusive charge on industrial property located at A-19,
Talegaon Industrial Area, Village Navlakhumbre, Tal. Maval,
Dist. Pune.
 Routing of receivables through TCFSL account from General
Motors India, Volkswagen, TML & Benteler.

Guarantors (Name and Net Personal guarantee of Mr. Dato Muthu Kumar
Worth of each)
Other documents Required 1. Accepted sanction letter
2. Application form
3. Board Resolution
4. Debtor intro letter from General Motors India, Volkswagen & TML.
5. Undated PDC of the entire facility amount.
Covenants 1. The borrower shall submit any other MIS / Information if required

UMW Dongshin Motech Pvt. Ltd Page No 14 of 22


by TCL from time to time.
2. Audited/ Provisional financial statement to be submitted to TCL
within 90 days from the close of the financial year.
3. Half yearly financials updates to be submitted within 45 days after
end of the quarter.
Specific terms & conditions 1. The Company not to borrow without prior written intimation to
applicable TCL.
2. Interest rate is subject to review / change at the discretion of
TCL.
The commitment of the 1. The co will inform in written for any material adverse change
proposed facility is in the condition of the borrower.
contingent upon : 2. The borrower or its associates not having defaulted under any
financing obligation to any bank or institution in past.
3. Compliance by the borrower of all laws and regulations
applicable to its operations.
4. The borrower fulfilling all its financial obligations under
various taxation, retrial and applicable laws prevalent from time to
time.
CIBIL/ RBI and other 1. The TCL will have the right to examine at all times, the company’s
conditions books of accounts and to have the company’s Project sites
inspected from time to time, by Officer(s) of the TCL and / or
qualified auditors or concurrent auditors appointed by the TCL
and/or technical experts and/or management consultants or other
persons of the TCL’s choice.
2. The company should maintain separate books and records which
should correctly reflect their financial position and scope of
operations and should submit to the bank / TCL at regular
intervals such statements as may be prescribed by the bank / TCL
in terms of RBI instructions issued from time to time.
Validity of Sanction 90 days from the date of sanction

UMW Dongshin Motech Pvt. Ltd Page No 15 of 22


Sales Invoice Discounting:-
Nature of facility Invoice discounting facility
Purpose Discounting of Invoice for supplies to General Motors India & Volkswagen
Proposed Limit Rs. 9,00,00,000 /- ( Rupees Nine Crores Only)
Tenor Upto 90 days
Margin 15% (General Motors India & Volkswagen)
Disbursal of funds To be disbursed against valid invoice
Validity Facility will be valid for 12 months; however TCL may renew the facility from time
to time based on internal review.
Documents to 1. Accepted sanction letter
executed by the 2. Board resolution
company before
disbursement
Security & Other  Exclusive charge on current assets & moveable fixed assets both present &
Documents future.
 Exclusive charge on industrial property located at A-19, Talegaon Industrial
Area, Village Navlakhumbre, Tal. Maval, Dist. Pune.
 Routing of receivables through TCFSL account from General Motors India,
Volkswagen, TML & Benteler.
Undertaking from 1. The borrower shall submit any other MIS / Information as required by the TCL
the borrower from time to time.
confirming the
covenants
Other terms and 1. TCL will reserve the right to foreclose this facility in the event that the
conditions company’s management undergoes a change during the tenure of the
facility, irregularity observed during audits and non adherence to the terms
and conditions of this letter and agreement set.
2. Interest rate is subject to review / change at the discretion of TCL
3. In the event of any modification in the terms and agreement between General
Motors India/Volkswagen and the borrower, the same will be intimated to TCL
simultaneously. .
4. Undertaking that the receivables discounted with TCL will not be included in
the debtor’s statement submitted to the bankers.
The commitment 1. Absence of any material adverse change in the condition of the borrower.
of the proposed 2. The borrower or its associates not having defaulted under any financing
facility is obligation to any bank or institution in past.
contingent upon : 3. Compliance by the borrower of all laws and regulations applicable to its
operations.
4. The borrower fulfilling all its financial obligations under various taxation, retrial
and applicable laws prevalent from time to time.
Disbursement Such Other documents as may be desired by TCL from Time to time.
documents
CIBIL/ RBI and 1. Undertaking letter to be obtained from the applicant and all
other conditions promoters/directors for disclosure of their names in the defaulter’s lists in
the event of default on the part of the borrower as per RBI guidelines.
2. Undertaking letter to be obtained from the applicant (including the
directors) that their names does not furnish in the RBI caution list,
defaulters list, willful defaulters list, ECGC list and in CIBIL.
3. The TCL will have the right to examine at all times, the company’s books
of accounts and to have the company’s Project sites inspected from time
to time, by Officer(s) of the TCL and / or qualified auditors or concurrent
auditors appointed by the TCL and/or technical experts and/or
management consultants or other persons of the TCL’s choice.

UMW Dongshin Motech Pvt. Ltd Page No 16 of 22


Validity of 90 days
sanction letter

Flexi-Loan:-

Facility Type Flexi Loan(Sub-limit of Sales Invoice Discounting)


Amount INR 3.00 Cr
Purpose Working Capital
Tenor 12 months
Moratorium NA
Disbursement schedule As per customer request – Individual draw downs
Repayment structure NA
Upfront fees Nil
Interest Rate 13.50% p.a.
Penal interest 4% p.a.
Interest Payment Frequency Interest to be paid on monthly basis on utilized amount.
Pre-payment penalty NIL
Security summary and documents  Exclusive charge on current assets & moveable fixed
assets both present & future.
 Exclusive charge on industrial property located at A-
19, Talegaon Industrial Area, Village Navlakhumbre,
Tal. Maval, Dist. Pune.
 Routing of receivables through TCFSL account from
General Motors India, Volkswagen, TML & Benteler
Guarantors (Name and Net Worth of Personal guarantee of Mr. Dato Muthu Kumar
each)
Other documents Required 1. Accepted sanction letter
2. Application form
3. Board Resolution
4. Undated PDC of the entire facility amount.
Covenants 1. The borrower shall submit any other MIS / Information if
required by TCL from time to time.
2. Audited/ Provisional financial statement to be
submitted to TCL within 90 days from the close of the
financial year.
3. Half yearly financials updates to be submitted within 45
days after end of the quarter.
Specific terms & conditions applicable 1. The Company not to borrow without prior written
intimation to TCL.
2. Interest rate is subject to review / change at the
discretion of TCL.
The commitment of the proposed 1. The co will inform in written for any material
facility is contingent upon : adverse change in the condition of the borrower.
2. The borrower or its associates not having defaulted
under any financing obligation to any bank or institution in
past.
3. Compliance by the borrower of all laws and
regulations applicable to its operations.
4. The borrower fulfilling all its financial obligations
under various taxation, retrial and applicable laws
prevalent from time to time.
CIBIL/ RBI and other conditions 1. The TCL will have the right to examine at all times,
the company’s books of accounts and to have the

UMW Dongshin Motech Pvt. Ltd Page No 17 of 22


company’s Project sites inspected from time to
time, by Officer(s) of the TCL and / or qualified
auditors or concurrent auditors appointed by the
TCL and/or technical experts and/or management
consultants or other persons of the TCL’s choice.
2. The company should maintain separate books and
records which should correctly reflect their financial
position and scope of operations and should submit to
the bank / TCL at regular intervals such statements as
may be prescribed by the bank / TCL in terms of RBI
instructions issued from time to time.
Validity of Sanction 90 days from the date of sanction

Letter of Credit:-

Facility type Import letter of Credit


Amount INR 3.0 Cr
Tenure Maximum Upto one year
Upfront Fees 1.00% of the Loan Amount + Applicable Service Tax, to be collected upfront
Purpose Purchase of raw material & capital goods
Commission At the rate as negotiated with & agreed by TCFSL.
Margin 25% to be placed at the time of LC issuance in the form of FD
Specific terms and Usance plus validity not to exceed one year.
conditions
Penal Interest @4% p.a. over and above the normal interest rate shall be charged in case of
delayed payment of Interest, Principal or monies payable under the loan
agreement from the due date till the date of receipt.
Stamp Duty As applicable and will be borne by the Borrower
Validity The sanction is valid for a period of 90 days from the date of this offer letter.
Prepayment Penalty 4% on amount Prepaid
Security summary  Exclusive charge on current assets & moveable fixed assets both present
and documents & future.
 Exclusive charge on industrial property located at A-19, Talegaon
Industrial Area, Village Navlakhumbre, Tal. Maval, Dist. Pune.
 Routing of receivables through TCFSL account from General Motors India,
Volkswagen, TML & Benteler
Covenants 1. The borrower shall submit any other MIS / Information if required by TCL
from time to time.
2. Audited/ Provisional financial statement to be submitted to TCL within 90
days from the close of the financial year.

Documents 1. Accepted sanction letter


Required 2. Application form
3. Board Resolution
4. Undated PDC of the entire facility amount.
Inspection Inspection of assets charged to TCL will be carried out once in 6 months or at
more frequent intervals as decided by TCL by its own officials or through persons
/ firms appointed by TCL. The cost of inspection is to be borne by the borrower.
Validity of sanction 90 days

UMW Dongshin Motech Pvt. Ltd Page No 18 of 22


Selection Parameter & Deviation Matrix

Actual
Deviations
Sr. Approving
Parameters Deviation Details As on Y/N &
No. Authority
Remarks
31.03.2014

1. Vintage Minimum 6 months with Sanctioning Since 2007 N


Corporate or 3 years Authority
experience in the same
line of business

2. BIFR Currently not registered No deviation To be done by


in BIFR Credit

3. Turnover > 1crore in case of Auto Sanctioning FY’14 = 96.9 Cr N


dealers Authority

4. PAT, TNW Positive PAT for last 2 Sanctioning PAT : Y


years Authority
Positive TNW for last 2 FY13: -22.9 Cr
years FY14: -3.5 Cr

TNW :

FY13: 13.0 Cr

FY14: -20.3 Cr

5. Current Ratio > 1.17 Up to 1 with FY’14 = 1.1 N


RCM/NCM times

Up to 0.8 with
CH

6. Debt/Equity < 3.00 3-6 by FY’14 = -7.8 Yes


RCM/NCM. 6x times
(Total up to 8x by
Debt/ATNW) CH

7. TOL/TNW < 4.00 4-8 by FY’14 = -10.3 Yes


RCM/NCM. 8x
up to 10x BY
CH

8. Maximum limit for Lower of the following: In case the


channel finance/ projected
Inventory funding Normal limit: purchases
a. Maximum X times (in exceeds 20%
months) the average certificate
monthly projected from the OEM
purchases (Projected for each such
purchases to be max. limit setting
20%more than last exercise
audited financials should be

UMW Dongshin Motech Pvt. Ltd Page No 19 of 22


turnover) undertaken
else approval
b. limits recommended by by BH and CH.
principal In case of new
Peak Limit: entities or
dealers have
a. Maximum X times (in expanded
months) the peak level with inclusion
monthly projected of new
purchases (Projected territories and
purchases to be max. past turnover
20%more than previous growth is
year peak level monthly more than
turnover) 20% over the
period of
b. limits recommended by previous year,
principal X times will be the actual
based on actual working growth % may
cycle of the dealer as be considered
acceptable in the market. for limit
calculations.

9. Credit Rating TC6 & above TC7 by CH To be done by


Credit

10. Cheque Bounces Maximum 3 cheque 3-6 RCM/NCM Nil inward N


for financial bounces in the last 6 observed
reasons months Above 6- CH between from
Dec-14 to May-
15 in Standard
Chartered Bank
Current A/c
No:-
42705248972
11. Personal Minimum 51% shareholder CH 100% N
Guarantee of
Directors

12. Working Capital Calculation to be - Incorporated in N


Assessment incorporated in the CAM. CAM

13. Dependency 20.0% CH,BH 100% N

14 CIBIL Check Positive Credit Card Commercial N


overdue up to CIBIL:-
Rs. 15000 & Credit to do
write off up
to Rs. 5000-
NCM Consumer
CIBIL:-
Credit to do

UMW Dongshin Motech Pvt. Ltd Page No 20 of 22


15 De-dupe Positive CH Commercial N
De-dupe:-
Credit to do

Consumer De-
dupe:-

Credit to do

16 net worth No guarantors N


certificate for in this case
guarantors

Recommended by Comment process level deviation here

Document Waiver / deviation & recommendation


FIs
Bank Statement
RCU
ITRs
Visit Report
PDCs
Any other Document No Guarantors in this case
net worth certificate for guarantors

List of Documents submitted to CPA for appraisal

¤ Provisional/ Audited FS for last Financial year


¤ Audited FS for the previous 2 years
¤ External Ratings if available
¤ Application form
¤ Recommendation letter/ Email from Corporate
¤ Note on the applicant concern/ firm/ company
¤ Details of Shareholding pattern
¤ KYC of the applicant concern/ firm/ company
¤ KYC of the partners/ directors
¤ ITR of applicant
¤ Profile of the promoters and key individuals and guarantors
¤ ITR of promoters
¤ ITR of guarantors
¤ Net worth statement of guarantors
¤ Details of associate/ group companies
¤ Audited FS of group companies for 1 year
¤ Details of existing banking arrangements
¤ Monthwise YTD figures for the current year with comparison with previous year
¤ Sanction letter for working capital facilities
¤ Sanction letter for term loan facilities
¤ Statement of account for working capital for six months

UMW Dongshin Motech Pvt. Ltd Page No 21 of 22


¤ Statement of term loan accounts for six months
¤ Latest balance outstanding in all accounts with bank/ FI
¤ Visit report
¤ Details of collateral security to be provided
¤ Opinion report from customer's banker
¤ Other documents submitted
1.
2.
3.

Recommended by:

Senior Relationship Manager Mr. Prashant Shinde

Area Credit Manager Mr. Ravishankar Kadle

Regional Sales Manager Mr. Luckinder Saluja

National Head- Supply Chain & Trade Finance Mr. Arun Poojari

National Credit Manager Mr. Mahesh Kalyanpur

Approved by:
Ms. Sanchita Mustauphy Mr. Sarosh Amaria

Head Credit – Commercial Finance COO – Commercial Finance

Ms. Swati prabhu


Head Risk – Commercial Finance

UMW Dongshin Motech Pvt. Ltd Page No 22 of 22

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