CENTRAL BANK OF INDIA

` (PROCESS NOTE ABOVE Rs. 25 LACS TO Rs. 600LACS)

Working Capital & Term Loan & Non Fund Based Limit

Part – 1

Sanctioning Authority:

(1.1) BORROWER’S PROFILE

Zone PATNA
Branch Moradpur
Name of the Borrower M/s R.K Enterprises
If individual then Sex Male
Constitution INDIVIDUAL
Entrepreneur Memorandum Number issued by AADHAR MEMORANDUM NO.
DIC/or competent authority
Whether Registered with DIC, if yes, then UDYAM-BR-26-0002145 (Udyog Aadhar Memorandum
Registration number No)
Date of incorporation 25/01/2019
Registered Office First Floor, Dhawalpura, Karmalichak, By-pass Road,
NH-30, Patna-09, Bihar
Corporate Office Same as registered Office
Banking with us since 2019
Promoter Director (s)/Main Partner (s) Sanjay Kulkarni
Group NA
Manufacturing Facility (Location) Didarganj Checkpost
Original Cost of Investment in Plant and RS.60,66,668.00/-
Machinery in case of Manufacturing Enterprises
or Original Cost of Investment in Equipment in
case of Service Enterprises
Types of Enterprises SMALL
Asset Classification (last quarter) (As on)
Provisioning requirement NIL

(1.2) INTERNAL RISK RATING

Present Overall Financial Business Management
Present based on ABS
as on
Previous based on ABS
as on
Denoting
(1.3) Existing Limits (Working Capital & Term Loans) (Rs. In lakhs) NIL
Fund Based NFB
CCH/ODBD 48.00 LC
Term Loans 4.88.00 (CGECL) LG

(1.4)
Industry Manufacturing & Wholesale Trading
Line of Activity Manufacturing of Door Hinges & Other Hardware
Items.
Facility Arrangements Sole
Date of Last Sanction 12/02/2021
Whether terms & condition of last sanction Yes
complied with
Whether new relationship. If yes, asset NA
classification with existing Banks
Take over: If yes, whether all norms Complied NA
with
Whether under NO
Thrust/Watch/Low/Priority/Other
Whether/ Mid Corporate/SME/PS including SME
Agriculture (direct/indirect)
Whether Sensitive Sector : Real Estate/ Capital NO
Market/ NBFC
(1.5) Share holding pattern As on: 25/07/2021
Name of Promoters/partners(1) No. of Shares (2) Rs. In lacs(3) %Holding (4)
Sri Sanjay Kulkarni Not Applicable Have to be filed 100 %

TOTAL
Note : in case of partnership, information in column 1 3 & 4 should be given

(1.6) BRIEF HISTORY

Dealing with the Bank since; Activity of the borrower in brief; Details of last sanction; conduct and
operations in the account:

R.K Enterprises would be thought and dedicated work of Sanjay Kulkarni. Firm
foundation is laid in year 2018 but his journey started nearby around beginning of the year
2019. R.K. Enterprises is the first Distributor in Patna who has complete range of PPR
piping system, moulded water tank, Pvc pipes and other fitting’s products. The firm has
complete range of ISO certified products and around 200 retailer’s customer bases.

Due to good market coverage R.K Enterprises is starting his own manufacturing unit of SS
Door Hinges for targeting the existing customer segment and potential new customers from
other districts .Due to prior experience in building hardware products selling R.K
Enterprises would not get any problem in securing sales orders from existing as well as new
potential customers. This unit would be the first largest unit of Bihar who have
manufacturing capacity of 10000 SS Hinges in a day. Firm has taken 2200 Sq. Feet of land
on lease near Didarganj Checkpost for manufacturing purpose.

Board of Directors/Names of Partners:

S.NO Name Designation DIN PAN UID

1 2 3 4 5
1 Sanjay Kulkarni Proprietor N.A GGIPK1842Q 4773-9686-9645
2
3
4
(In case of partnership firm, information in column 1, 4 & 5 should be given

Brief Profile of Directors/Partners/Proprietors;

R.K Enterprises would be thought and sense of Smt Kiran Kumari, she has a good business
sense from the day of the academic studies. Her husband is also same line of business of
trading of hardware products, so she finally decided to enter into a new business venture of
manufacturing of Door Hinges which would be the first largest unit of Bihar. Firm has
taken 3500 Sq. Feet of land on lease near Didarganj Checkpost for manufacturing purpose.
.

PART-2

2. RISK ASSESSMENT:

Status of Compliance of Terms of Sanction. Give All the terms of sanction have to be complied
reasons if terms not complied with: risk perception with previous sanction in regard with the limit
and mitigation thereof. enhancement.
Whether any of the Directors/Company/ partner No
appearing in caution Advices circulated by the
Bank from time to time/RBI’s Willful defaulters
list/ Caution list of ECGC/CIBIL etc.
Whether any of the Directors/Company/ No
partner /firm is connected in the past with any
NPA/ o NE Time Settlement etc.
Whether any of the Directors/Partners is related No
to Directors/Senior Officers of Central Bank of
India/Other Banks.
Whether there has been any change in the No
Management/partnership since last sanctions
Whether there is any litigation initiated against the No
Borrower by any Bank/FI/Govt. Agency etc.

(2.1)
Types of industry Manufacturing & Wholesale Trade
Compliance of exposure norms with regard to SATISFACTORY
Borrower’s Net Worth

(2.2) Security Margin (Fixed Asset Coverage Ratio- for Term Loans)
Existing Proposed
Nature Book Value FACR Book Value FACR on project completion
Primary 54.64 Lakhs 1.21
Collateral --
Total 54.64 lakhs
(2.3) Asset Coverage Ratio: Total chargeable assets+ value of collateral/total indebtedness from the
Banking system.
Existing Proposed
Nature Book Value ACR Book Value ACR
Primary 105.85 (Total Assets) 2.13
Collateral
Total 105.85 2.13
(2.4) Details of last two inspections and Stock Audit
Date of Inspection By whom Findings Satisfactory/Unsatisfactory
Not Applicable …….. ……..
(2.5)
Whether deviations from our Bank’s Loan Policy permitted if NO ANY DEVIATIONS
any, have been approved by the appropriate authority as per
loan policy guidelines
(Please mention policy guidelines vis-à-vis deviation)
Compliance of KYC Norms Already Complied with
Auditor’s observations/ adverse feature, as noticed in the No Such Adverse Comments
Company’s last available audited accounts for the last year
ended March
Comments on Rectification of Deficiencies observed in: NA
Internal/Concurrent/Statutory Auditor’s Report/RBI
Inspection/Loan Review Reports

Date of Rectification/Date of Closure of report/In case not

rectified/closed, reasons thereof
(2.6)
Date of documentation;
(Mention date of each facility) From Sir
Date of release of limits/date of 1st disbursement Bank Work
In case of Term Loans
(2.7) Security (Mention whether First/Second/Third/Paripassu charge
Primary Security: Stock, Book Debts & Current Assets- Primary security
Date of verification of securities
Nature WDV Market Our share In Date of Valuation Insurance Details
/Description of Value (Rs. In % & name of Valuer
security LAC)
Stock & Books 49.70 Not 100 As per Book Value ---
Debts Applicable (Not applicable
for External
valuation)

Collateral Security:
Date of verification of securities NIL
Nature WDV Market Our share In % Date of Valuation & Insurance Details
/Description of Value (Rs. name of Valuer
security In crore)

Comments on change in prime/collateral/guarantor, if any: - NA

Status of creation of change with ROC with date of registration
of charge:-

(2.8)
Overall rating, Reasons of downgrading of rating NA
and risks as stated by risk Rating Dept and credit
Department comments/mitigation:
Whether increase in investment in NA
subsidiaries/affiliates is noticed. If yes, its impact
on concern’s liquidity position, return on such
investment, necessity, justification and when
investment made is likely to be received back.
Whether all Statutory permissions required under YES
the law of the Land in place? Permissions/Approval
pending should be mentioned here.
Product/Activity Risk
Market Risk i.e. acceptability of product MANUFACTURING & Wholesale Trading
manufactured by the Company.
Risk envisaged due to anticipated delay/delay/in NO
commissioning of Project.
In case of Export oriented accounts whether NA
opinion on foreign buyer is obtained periodically
from ECGC/MIRA Inform./Dun& Brad street.
SWOT Analysis

PART 3

3. OPERATIONAL RELATIONSHIP
Debt Profile as on 25/07/2021 (Rs. In Lakhs)
EXISTING ACCOUNT
Facility Fund Based Non-Fund Based Total
Limit O/s Limit O/s Limit O/s
Our Bank W.C 48.00 46.00 ….. 0.00 0.00
Term Loan 4.88/- …… 45.50
Sub Total 48.00 0.00 45.50
Other Banks 0 NA 0.00 0.00
FIs 0 0.00 0.00
TOTAL 53.00 49.87

(3.1) Position of account with us as on 25/07/2021 (Rs. In crore)

Nature of Limit Nature & Value Margin DP O/S Overdue, if
Facility of security any
Cash Credit 48.00 Cash credit 2
( CGTMSE
Coverage

We confirm that: Repayment of Term Loan installment and interest is regular and Interest has been
serviced up to NOT APPLICABLE

In case of project under implementation – If stipulated, whether interest is being serviced regularly: Y/N
If not give reasons.

Conduct & Operation in the account are satisfactory: Y/N If not give reasons

(3.2) Operations in the account (Rs. In crore)

NEW ACCOUNT
Availment Statistics: CC/PC OD Bills
Period No. Amt.
From To
Credit Summations
Debit Summations NA NA Bills Returned
Unpaid*

Whether account was out of order during NA Na No. Amt.

last 12 months. If yes, give
amount/sanctioning authority/ Date of
adjustment
In case of Bills returned unpaid, state the
reasons and whether reimbursed promptly NA

Number Amount
Cheques returned unpaid* - -

L/Cs issued - -

L/Cs Devolved* - -

Guarantees Issued - -

Guarantees revoked* - -

*Give reasons in brief, as the case may be.

(3.3) Availment of limits: NEW ACCOUNT (Rs. In crore)

Facility Limit Max. O/S Min. O/S Average availment %availment*
CCH NA
Bills NA
ODBD

*Reasons for poor availment along with bottlenecks faced, if any and suggestions to improve the
availment should be given.

(3.4) Income to the Bank: NEW ACCOUNT (Rs. In crore)

From Company Interest Income Fee based Income Total

Last Year
Current Year up to NA AS NEW UNIT
Completed Months
Sub Total NA NA NA
From Group NA NA NA

Last Year NA NA NA

TOTAL NA NA NA

 Details of cross selling: As per annexure

 Names of Associate concerns if any: No

Profile in brief (each group company), Synopsis of last 3 years B/S and comments about dealing of the
Group companies with us: Enclose as Annexure. This is to be given in addition to information to be given
in point 2.10 of part 2.

(3.5) Details of working capital limits/TLs from other banks

Name of the Existing Shares% Proposed Share ROI
bank/FIs
FB NFB FB NFB FB NFB FB NFB

PART 4

Financial Indicators

(Rs. In Lakhs)

FY 2021-22 FY 2022-23 FY 2023-24 FY 2025-26

Estimate Projection Projection Projection
1 Paid-Up capital 39.13 39.13 39.13 39.13
2 Reserves & Surplus (Inc Profit 7.33 20.28 34.23 55.45
& Loss A/c)
3 Intangible Assets 0.44 0.33 0.22 0.11
4 Tangible Net Worth 46.03 59.08 73.14 94.48
5 Adjusted TNW (4+7-10) 46.03 59.08 73.14 94.48
6 Long term Liabilities 40.71 32.72 26.18 19.07
7 Unsecured loans from 0.00 0.00 0.00 0.00
promoters/family included
under(5)
8 Capital Employed (4)+(6) 86.74 91.8 99.32 113.55
9 Net Block 54.64 46.60 39.75 33.91
10 Investments 0.00 0.00 0.00 0.00
11 Non-Current assets 1.51 1.51 1.51 1.51
12 Current assets 49.70 82.54 100.72 126.42
13 Current Liabilities 19.12 38.84 42.65 48.29
 NWC 30.58 43.70 58.07 78.13
14
15 Net Sales
Domestic 351.00 772.20 857.14 968.57
Export 0.00 0.00 0.00 0.00
% Growth 0.00 120 % 11 % 13.00 %
16 Gross profit
Net Profit Before tax 30.46 75.27 92.14 110.17
17
18 Net Profit After tax 20.95 51.78 63.39 75.79

19 Depreciation 9.44 8.04 6.85 5.84

20 Cash Accruals 30.39 59.82 70.24 81.63

Long term Sources (8) 86.73 91.80 99.32 113.55

21
Long Term uses (9+10+11) 56.15 48.11 41.26 35.42
22
23 Surplus/deficit 30.58 43.70 58.07 78.13

24 Average DSCR (for proposed 5.56 7.04 8.15 9.36

Term Loan)

RATIOS:

FY 2021-22 FY 2022-23 FY 2023-24 FY 2025-26

Estimated Projection Projection Projection
1 Current Ratio 2.60 2.12 2.36 2.62

2 Debt/Equity Ratio 0.88 0.55 0.36 0.20

3 TOL/TNW RATIO 1.30 1.21 0.94 0.71

TOL/TNW RATIO with unsecured 1.30 1.21 0.94 0.71

4 loan as quasi capital & included
in Net Worth

5 Gross Profit margin%

6 Net Profit margin % 5.97% 6.71% 7.40% 7.83%

7 FACR 1.25 1.22 1.23 1.32

8 Total inventory/Net Sales 0.11 0.07 0.07 0.08

9 Receivables/Gross sales 0.03 0.03 0.04 0.04

Details of Other Current Assets (OCA)

Details of Other Current Liabilities (OCL)

Buildup of NWC (Estimated Year) (Rs. In Lakhs)

Opening NWC 0.00

+Long term sources 86.73
-Long term User 56.15
Surplus/Deficit 30.58
Closing NWC 30.58

Movement of TNW 2021-22 (Rs . In Lakhs)

Opening TNW 0.00
+Increase in paid up capital/share application 39.13
money
+Increase in reserve 7.33
-Debit balance in PL, if any 0.00
Closing TNW 46.46
Less Intangibles 0.44
Less investment in affiliates/subsidiaries etc 0.00
Adjusted TNW 46.03

Statutory dues and other contingent Liabilities. NIL

There is no such Statutory dues and contingent liabilities as per audited balance sheet as on 31/03/2021
and there is no such event and transactions which will probably create any contingent liabilities and
statutory dues after 31/03/2021.
Comments and mitigation on contingent liabilities:

Comments on notes to the Audited accounts by Auditors:

Comments on Financial Indicators: 2020-21 (Estimated Financial Year)

TNW 46.05
TL 40.71
TOL 59.83
FA 54.64
ONCA & Investment --
PAT/Cash Accruals 20.95/30.40
NWC 30.58
CR 2.60
DER 2.88 (Ideal ratio is it should be lower than 2)
TOL/TNW 1.30

PRESENT PROPOSAL:
5. 1. Recommendation to sanctioning Authority to sanction
(I ) 45.50.00 Lakhs as an Term Loan
( ii )
( iii )
( iv )
2. Sanctioning Authority Approval for: 45.50 lac (TL)
(I) Pricing ROI ( MCLR +2.00)
( ii ) Interest Rate Reset NIL
( iii ) Margin 25%
( iv ) Upfront Fee 1%
(v) Processing Charges
( vi ) Commitment Charges
( vii ) Commission on LC/Guarantee
OTHERS such as; Release of limits on the basis of individual documents, waiver of pre-post
(viii)
shipment cover of ECGC, insurance, stock inspection etc, transfer of DP
3. Approval for modification in terms of sanction:
Such as waiver of Guarantee, Change in Guarantee, change in security or any other modification
4. SECURITY
a Primary - Plant & Machinery .
b Collateral- Not Applicable
c Guarantee - CGTMSE Guarantee

(5.4) Credit Limits (existing and now recommended): (Amt. in crore)

LIMITS Existing Our Share in % in New Our Proposed share Change
consortium Recommended in % in consortium

Fund Based

Total FBWC 48.00/- 0.00 100% NA

Term Loan 4.88/- 45.50 100% NA
Non-Fund Based NIL
LC 0.00
LG 0.00
Total (FB+NFB) 52.88/- 45.50/-
Forward Contract

(5.4) Sub Limits: NIL

Within CCH NIL

Within Bills

Within LC/LG
Within Term
Loan
 (5.7) Transfer of D.P.

Please Give point wise justification of approvals / modification sought as per point 2 (i) to (x) of Present
Proposal.

(5.9) Justification /Recommendations:

 Debt Service coverage ratio is a important ratio when applying for any msme loan, it is essentially a way
for the bank to determine how comfortable they are with your level of net income (profit) and your
ability to meet your loan repayments from this income. If any Ratio which is more than 2 should be
comfortably

(5.10) Justification /Recommendations: OTHER ISSUES

(5.11) RECOMMENDATIONS CREDIT DEPARTMENT

Terms & Condition of each facility as per Annexure.

TERMS &CONDITIONS OF EACH FACILITY

Security

Special Condition for each facility

a)
b)
c)
d)

General Conditions :

Annexure PART-2 OPERATIONAL RELATIONSHIP

Item Present position Future Position
Salary Accounts No. Amount No. Amount
Retail Schemes NEW UNIT
Housing
Car Loans
Personal Loans including loans to
Corporate employees)
Education Loans
Central Card
Debit
Credit
Project Accounts
Escrow Accounts
Sub contractor accounts
Channel Financing
Finance to dealers of the
Company
Finance to Suppliers of the
Company

-Is Company availing of the technology Based Products viz:

a) Internet Banking, Mobile Banking & SMS Alerts

Annexure - PART – 4 FINACIAL INDICATORS

OPERATING STATEMENT

As per Account Actuals / Est. for the Year ended/ending

Year 2019-20 Year 2021-22 Year 2022-23
1 Gross Sale 125.80 148.45 176.67
2 Less Excise Duty
3 Net Sale 125.80 148.45 176.67
4 Cost of Sales 84.27 103.62 127.59
a) Raw Materials
-Imported 0.00 0.00 0.00
-Indigenous 0.00 0.00 0.00
b) Other Spares
c) Power & Fuel .88 0.96 1.14
d) Direct Labour 0.00 0.00 0.00
e) Repairs & main. 0.0 0.00 0.00
f) Other Mfg. Exp. 32.74 34.46 37.47
g) Depreciation 7.23 6.19 5.30
Sub Total
Add: Opening SIP
Deduct: Closing SIP
Sub total
Add: Opening FGs
Deduct: Closing FGs
(Cost of Sales)
5 Gross profit (3-4)
 6 Interest 26.68 23.82 20.59
7 Selling, general & Admn. 01.46 01.49 01.53
Expenses
8 Operating Profit 18.10 27.25 38.05
9 Other income/exp.
Add Income
Deduct exp.
Sub Total (-) (+)
10 Profit before tax 18.10 27.25 38.05
Less provision for tax 1.80 2.73 3.80
11 Net Profit/Loss 16.29 24.54 34.25
Dividend Paid / payable

Annexure - PART – 4 FINACIAL INDICATORS

ANALYSIS OF BALANCE SHEET

Liabilities 19-20 20-21 21-22 Assets 19-20 20-21 21-22

Current Liabilities Current Assets
1 Short term borrowings from 30 Cash & Bank 1.87 2.21 2.32
Bank balances
a)From C.B.I. 15.00 15.00 15.00 31 Investments -- -- --
b)From others a)Govt. &
other Trustee
securities
Sub Total (A) -- -- -- b)FD in Banks .91 1.86 2.64
2 Short term borrowings from -- -- -- 32 a)Receivables 9.44 11.51 13.69
others other than
deferred &
export
receivables
(due in 1
year)
3 Deposits (maturing in 1 year) -- -- -- b)Export -- -- --
Receivables
4 Sundry Creditors (Trade) 2.51 2.89 3.60 33 Installments
of deferred
receivables
5 Unsecured Loans -- -- -- 34 Inventory -- -- --
6 Advances / progress payments -- -- -- a)Raw 5.28 6.11 6.81
from customers/deposits from Materials
dealers (incl. stores)
7 Interest and other charge -- -- -- b)Stock in
accrued, but not due for process
payment
8 Provision for taxation 0.56 0.77 0.84 c)Finished 8.38 9.51 10.21
goods
9 Dividend payables -- -- -- d)Other 0.0 0.00 0.00
consumable
spares
10 Other statutory liabilities 0.02 0.05 0.09 35 Advances to 0.00 0.00 0.00
(due in 1 year) suppliers of
raw
materials &
stores/spares
consumables
0.00 0.00

11 Installments of T. 36 Advances
Loans/Deferred payments 0.00 payments of
credits/debentures/redeemab taxes
le preference shares (due in 1
year)
12 Other current liabilities and -- -- -- 37 Other 7.15 7.86 8.02
provisions (due in 1 year) Current
Assets
13 Total current Liabilities (A+B) 18.11 18.72 19.54 38 Total Current 33.05 39.05 43.69
Assets
TERM LIABILITIES FIXED ASSETS
14 Debentures (Not maturing in 1 -- -- -- 39 Gross Block 51.19 43.96 37.76
year)
15 Redeemable Pref. Shares -- -- -- 40 Depreciation 7.23 6.19 5.30
to date
16 Term Loans 41.36 36.77 31.78 41 Net Block 43.96 37.76 32.46
17 Deferred Paymentm Credits -- -- -- OTHER -- -- --
CURRENT
ASSETS

LIABILITIES As per Balance Sheet as on ASSETS As per Balance Sheet as of

 19-20 20-21 21-22 19-20 20-21 21-22

18 Other Term Liabilities -- -- -- 42 Investments/book 5.00 5.000 5.00

(Unsecured Loan) debts/advances/ deposits
19 Term deposits -- -- -- a) Investments in subsidiary
20 Total term liabilities 41.36 36.77 31.78 companies/affiliates
21 Total Outside liabilities 59.47 55.50 51.33 b) Investment to suppliers of
NET WORTH 22.67 26.42 29.89 capital goods/
22 Ordinary Share Capital 18.09 19.01 18.62 c) Deferred receivable
(maturing beyond 1 Year)
23 Preference share 0.00 0.00 0.00 d) Other
Capital (maturing after
43 Non consumable stores/
12 years
spares
24 General Reserves
25 Development Rebate 44 Other Misc. assets .14 .10 .07
Reserve/Investment including dues from
allowance directors
26 Other Reserves excl. 45 Total Other Non Current 5.14 5.10 5.07
provisions Assets
27 Surplus (+) or Deficit (-) 4.57 7.41 6.93 46 Intangible Assets .14 .10 .07
in P & L Account
47 Total Assets 82.14 81.92 81.21
28 Net Worth 22.67 26.42 29.89 48 Tangible Net Worth (28-46) 22.53 26.32 29.82
29 Total Liabilities 82.14 81.92 81.21 49 New Working Capital 14.94 20.33 24.14
(38 – 13 )

Justification for proposed Working Capital Limits.( In bullet points only )

NOT APPLICABLE
h) Assessment and Justification for Non fund based limits.

Assessment of Letter of Credit: NIL

Particulars ILS (indigenous) FLC (Imported)

1 Total purchases during the year
2 Purchases proposed against LC (FOB/CIF value
3 RM requirement against LC per month --------NA---------
4 Usance period in months
5 Lead period in months
6 Total period in months
7 LC requirement ( 3x6 )
8 LC recommended

Assessment of Bank Guarantee: NIL

1 Limit Sanctioned ------NA--------

2 Outstanding as on
3 Balance available – ( 1 – 2)
4 Guarantee maturing during the year
5 Total limit available ( 3 + 4)
6 Guarantees required to be issued during the yr.
7 Additional limit required ( 5- 6)
8 Total Guarantee limit proposed (1 + 7)
9 Margin proposed
10 Security
11 Justification for the proposed limits

Fresh Term Loan information should be given in the following table : ( Annexure -2/Part- 5)

( Rs. In lacs )

Purpose of term Loan : PRESENT PROIPOSAL IS TO SET

UP THE HIGH TECH
WAREHOUSE WITH ALL
MODERN FACILITIES AND
EQUIPMENT. IT WILL BE AN
UNIQUE WAREHOUSE AT THE
OUTSKIRTS OF PATNA AND
CONNECTED WITH FOUR LANE
AND OTHER MAIN ROADS

-Purpose of Term Loan:

THE TERM LOAN WILL BE USED

 FOR CONSTRUCTING THE WARE
HOUSE/GODOWN IN 28728 SQ FT
BUILT UP AREA.

Project Information Memorandum (PIM) by :

TEV study carried out by, if any and conclusions :
made in the report

Cost Of Project Rs.319.75 Total Debt Rs. 245.81

T/L from our Bank Rs.232.50 DE Ratio 2.37
Proposed 100% *Tied up Portion
Maximum DSCR 1.73 Average DSCR 1.26
MINImum DSCR 1.19

Repayment 84 MONTHS
Door to Door Tenor : JUNE 2019 TO MARCH 2020
Zero Date : MARCH 2020
Implementation period : 9 MONTH
Schedule date of Completion of project : APRIL 2020
COD : APRIL 2020
Moratorium : 18 MONTHS
Actual Repayment Period : 8.6 Year
Whether Mthly/Qtrly/HY/Yrlyinstalment : MONTHLY
First installment due on : JAN 2021
Last installment due ON : DEC 2027
Loan Availability Period : 3 MONTHS TO 9 MONTHS
Terminal Date of disbursement : JUNE 2019 –AUG 2019

TERM LOAN POPOSAL: ( IN Bullet Points only )

-Purpose of Term Loan:

THE TERM LOAN WILL BE USED FOR CONSTRUCTING AND PURCHASE OF

MACHINARIES.
About the Project:

The present proposal is for opening and running the factory near
Sampathchak at Patna having all the modern machineries and
instruments available for production. It will be unique in his class.
There is no other Factory with such a hi tech and latest technology
facility at Patna.

The present proposal is for financial assistance from Bankers of

Financial Institutions in the form of Term loan for establishing factory
with all the modern machineries.

The total cost of project is coming to Rs. 75.83 Lac. Our Margin for
the project will be 25% of the Cost of Project ie. 20.83. Therefore to
cope up with the requirement we are in need of the term loan to the
tune of Rs 40.00 Lac.

Need for the project ( in case of expansion project- existing capacity utilization etc.)

T E V Study & conclusion. If not required justification there of.

Summary of Cost of Project & Means of Finance:

( Rs. In LAC )

Cost of Project Means of Finance

75.83 BANK LOAN: 55.00
SELF CONTRIBUTION: 20.83
Source of promoter’s contribution, upfront contribution to be brought and the time schedule for the
remaining contribution.

The promoters contribution will be Rs.20.83 Lac

The proprietor will enhance its capital if needed for meeting up with the further required
capital if any.

Status of tie up of loans.

Brief about major items of cost of project, reputation of suppliers, availability of performance guarantee
from suppliers, EPC contract etc. alongwith comments on the technology used.

Comments in brief on aspects like locational advantage, availability of infrastructure facilities.

The present proposal is for construction of factory and installation of

machinery at Sampathchak Bairiya Area. The total area is around
3500 Sq.ft, which is sufficient for manufacturing of Motors and other
Metal fabrication Works. In Patna there is not any facility which have
these types of machines for fabrication of Motor’s and other metal
products

Present physical and financial status.

Implementation schedule.

Activity Starting date Completion Date

Construction of factory Nov 2019 15th Dec 2019

Draw Down Schedule Quarter wise.

Period of Draw Down Amount in crore

Quarter ending
Quarter ending
Working of DSCR, with brief comment thereon and comments on assumptions underlined
sale/profitability projections.

(Detailed projected profitability, balance sheet, cash flows are enclosed as Annexure )

Sensitivity analysis.

Other issues including time required for perfection of security.

Justification of Term Loan.

For review of existing term loans/Projects under implementation:

1) Purpose;
2) About the Project;
3) Summary of Cost of Project & Means of Finance:

(Existing Term Loans)

Crore) NEW PROJECT.

COST OF PROJECT MEANS OF FINANCE

ENVISAGED ACTUAL ENVISAGED ACTUAL

( Existing Term loans) NEW PROJECT

RATIOS ENVISAGED ACTUAL AS ON

DSCR
DER NEW UNIT
TOL/TNW
EBIDTA %
OPERATINF PROFIT %
PAT %

(Existing Term loans) NEW PROJECT

Repayment of term loan 84 Months

Door to Door Tenor Nov 2019 to MARCH 2027
Actual Repayment Period 90 months
Whether Mnthly/Qtly/Hy/Yrly installment Monthly
1st installment due on June 2020
Last installment due on March 2027
Installment amount As per CBS
Installment /interest serviced up to NA

Recommendations:

(In Case of Projects under Implementation)

1) Purpose; - To Start a Semi -Automatic Manufacturing Plant of SS Door Hinges and with the bank
loan borrowing in the form of Term loan for purchase of machinery and other incidental
expenses.

2) About the Project- R.K Enterprises would be thought and dedicated work of Sanjay
Kulkarni. Firm foundation is laid in year 2018 but his journey started nearby around
beginning of the year 2019. R.K. Enterprises is the first Distributor in Patna who has
complete range of PPR piping system, moulded water tank, Pvc pipes and other fitting’s
products. The firm has complete range of ISO certified products and around 200 retailer’s
customer bases.

Due to good market coverage R.K Enterprises is starting his own manufacturing unit of
SS Door Hinges for targeting the existing customer segment and potential new customers
from other districts .Due to prior experience in building hardware products selling R.K
Enterprises would not get any problem in securing sales orders from existing as well as
new potential customers. This unit would be the first largest unit of Bihar who have
manufacturing capacity of 10000 SS Hinges in a day. Firm has taken 2200 Sq. Feet of
land on lease near Didarganj Checkpost for manufacturing purpose.

3) Summary of Cost of Project & Means of Finance:

Project Cost;

S. No. Description Estimated Project Cost Expenditure incurred

up to 25/07/2021
1. LAND &BUILDING 1.68 .58
2. Working Capital ( Full amount introduced 20.00 0.00
by the Proprietor as it his contribution)
3. Machinery & Equipments 60.67 0.00
4. Preliminary Exp .53 .53
5.
Means of Finance:

Sl.No. Description Estimated Means (Lakhs) Raised as on

1. TERM LOAN 45.50/-
2. WORKING CAPITAL (Full Proprietor 20.00/-
Contribution)
3. PROMOTERS CONTRIBUTION 17.38 /-
(Refer Project Report for Amount
Bifurcations)

Comments about the remaining equity to be raised:

Sri Sanjay Kumar have a very sound financial background in case if additional amount of working Capital
is required for proper cash cycle management, he will introduce this equity amount very easily.

Repayment of term loan

Door to Door Tenor 87 Months (Including Moratorium)
Actual Repayment Period 84 Months
Whether Monthly/Qtly/Hy/Yrly installment Monthly
1st installment due on 30 Nov 2019
Last installment due on 31/03/2027
Installment amount 66,086.00
Interest serviced up to

Envisaged Whether any change in the

schedule anticipated
Zero date
Implementation Period From Nov 2019 TO May 2020
Moratorium Period From November 2019 TO May
2020
COD (Date) June 2020
LASTEST PHYSICAL& FINANCIAL STATUS

IMPLEMENTATION SCHEDULE:

ACTIVITY STARTING DATE COMPLETION DATE and

whether expected to be
completed in time
1. Factory foundation and 05/07/2021 Completing as expecting as on
roofing work 15/`08/2021.
2. Purchase and 15/08/2021 Machine Installation and
installation of Primary check would be
Machinery, with completed by 15/10/2021 and 1
electrical Wiring and month more for test run and
panelleing trial production.

DRAW DOWN SCHEDULE QUARTER WISE:

PERIOD OF DRAW DOWN AMOUNT (IN CRORE)

Quarter ending
Quarter ending
Quarter ending
Quarter ending

Cost/Time overrun if any and means of finance to take care of cost over run: NIL

Impact of cost/time over run-on implementation of the project, revenues and profitability: NIL

Status of Statutory /Other approvals: (Project under implementation)

Statutory/other approval Agency Status along with reasons if still

required not received
No Such Approval’s requires

Recommendations: