ANNEXURE: 1

EXECUTIVE SUMMARY
(All the figures reported in the proposal are in Rs. Crores, unless specified otherwise)

Circle/SBU:changed a) Borrowers Profile Name : Promoters details S.No. Name Designation DIN ! " # $ % Segment: &C'I/(S()/A*+, +ocation: &0/SU/U/(/F , Industr+ocation &0egd/ Corporate office onl-, : (ain Production Centres: Promoters2 shareholding 3: (ar4et Cap: *roup to 7hich compan- 8elongs: PAN

Branch :changed

Identifiers Passport

Full Address thers

Constitution &Prop./Partnership/ +imited Partnership/Corp. )ntit. P/t +td/ +td . +isted/ Unlisted, Acti/it-: &(fg./ 1rading/ Ser/ices/ NBFC/ thers,

%" 5ee4 6/+: *roup connections : 9es / No 9es/ No

5hether name of Promoters/ Directors/ Compan-/ *roup concerns figures in 0BI Defauters list/ )C*C Caution +ist/ CICs/ Suit filed list

Date of incorporation

Date of Commencement of perations : &onl- for units ha/ing connection 7ith us for less than # -ears,

Ne7 unit/);isting unit If -es

);isting Connection

9es / No

Ban4ing 7ith us since Date of last 0ene7al/ 0e/ie7: &<, If 0e/ie7ed /alid upto : I0AC Status of !.Ad/ances : ". In/estments : Ban4ing arrangement : Sole Ban4ing/ If 1a4e o/er= 7hether all norms Consortium/ (BA/ S-ndication complied 7ith : 9es / No Compan);isting Proposed
1

Exposure

);isting

*roup Proposed

Fund Based Non Fund Based 1otal Inde8tedness in/estments +easing 1otal );posure Ban42s Share>> &3, Ban42s Share in 1+>> &3,
( * ) In case of review date up to which reviewed to be mentioned (++) In case of Consortium/ Multiple Bankin / !"ndication arran ement indicate #uantum and $a e &Details in Section:A!:c,

b) Proposal: For sanction / appro/al / confirmation : a, 8, i, Sanction c, ii, Appro/al a, 8, c, iii, a, Confirmatio 8, n c,

c) RM A VIS!RIES a"# RATI$%S& i) ii) iii) i') 0(D *uidance Note ?ualitati/e approach ?uantitati/e approach Comments Pre/ious: Pre/ious: @alid upto: @alid upto:

C0A 0ating/ Score Current: C0A Financial Score Current: )C0A +ong term rating: Short term rating:

#) I"#eb(e#"ess ) Exposure * Capi(al C+ar,e&

Inde8tedness

Date of );isting Sanction +imits / 0ene7al

/S

Proposed Change 0esidu Secured/ +imits in +imits al Unsecure 1enor d

5or4ing Capital 1erm +oan Ad:hoc= if an1otal Fund 8ased &A, +etters of Credit Cape; . +Cs Ban4 *uarantee Ad:hoc= if anDeri/ati/es/ C)+ 1otal Non fund 8ased &B, T!TAI"#eb(e#"ess .A) / .B) In/estment &C, +easing &D, T!TA- .Exposure) E .A/B/C / ) 0i"a"cial ) cas+ colla(eral .as per Basel "or1s) 0 Effec(i'e Exposure .E20) Capi(al c+ar,e )stimated &+ast 9ear, $e( I"(eres( I"co1e 0ee I"co1e Re(ur" o" Capi(al C+ar,e# Actual &+ast 9ear, )stimated &Current -ear,

e) Perfor1a"ce a"# 0i"a"cial I"#ica(ors As on #!/A#/ Net Sales &);ports, PB1 PB1/ N Sales PA1 Cash Accruals PBDI1 Interest Co/erage 0atio
3

Actuals Actuals &)stim.,

)stimates &Current 9ear,

ProBections &Ne;t 9ear,

PUC 1N5 AdBusted 1N5 1 +/1N5 1 +/ AdBusted 1N5 Current 0atio N5C DSC0 0 )3 f) Propose# Prici",& I1)( Base );isting 0ate 0ate Spread )ffecti/e 0ate Int. on 5C Int. on 1+

Card rate Spread )ffecti/e 0ate

Proposed rate Spread )ffecti/e 0ate

!(+er i"co1e ITEM Exis(i", Ra(e Car# ra(e Propose# ra(e Ex(e"( of co"cessio" .3) Processing fee Commit charges Upfront fee +C B* thers
,) 4e5 #e'ia(io"s wi(+ 6us(ifica(io"&

+) Securi(5 .i"clu#i", %uara"(ee)& Exis(i", T5pe of Securi(5 facili(ies s(ipula(e# Value of securi(57 S(a(us of %uara"(ee securi(5 #e(ails crea(io" Re1ar8s

(* In case of Consortium/ MB%& $a e of !ecurit" available to the Bank to be mentioned)

ii) Propose# T5pe of facili(ies Securi(5 s(ipula(e# Value of securi(5 %uara"(ee #e(ails $e( 1ea"s

i) 9us(ifica(io" for (+e proposal ('lease provide brief particulars about the (nit& present proposal& hi hli hts of the proposal and )ustification)

%E$ERA- MA$A%ER

S FORMAT: Section A INDEX CIRCLE/SBU: BRANCH: COMPANY: Sectio Contents n A! Present Proposal a, Borro7er2s profile 8, Proposal : For Sanction/ Appro/al/ Confirmation c, Credit limits &e;isting and proposed, d, Ban4ing Arrangement and Sharing pattern A" Performance Details Performance and Financial indicators Comments on Performance and Financial Indicators (o/ement of +ong 1erm Funds S-nopsis of Balance Sheet Comments on ad/erse mo/ements= if an Acti/it-7ise Cash Flo7 anal-sis Consolidated Data and Cash flo7 Inter Firm comparison A# 0is4 assessment : a, Credit 0ating 8, );ternal 0ating c, 0(D Ad/isories d, Conduct of Account e, 0e/ie7 of 1erm +oan f, Securit- Co/erage g, 5arning signals/unattended maBor irregularities in Inspection Audit/Credit Audit/ ther 0eports h, )arlier 1erms of Sanction ' Compliance status i, Statutor- dues / other contingent lia8ilities B, 0is4s and mitigating factors A$ Pricing a, Income anal-sis 8, ther Ban4s2/FIs2 pricing c, Proposed pricing d, Custification A% +oan Polic- : De/iations ' Compliance: a, 5hether names of promoters= directors= compan-= group concerns figure in defaulters/7illful defaulters list 8, De/iation in +oan policc, Custifications for de/iations
6

Pages

S-noptic Appraisal (emorandum for 1erm +oan &7here applica8le, a, Custification for the Proposal 8, 0ecommendations : AF Profile of the 8orro7er and Industra, Address and +ocation of the compan-. 8, Names and Addresses of the promoters/ directors. c, Details of share:holding pattern of promoters/ directors. d, Credit 6istore, Brief 8ac4ground of the compan-/ group and management. f, Brief 7rite up on the industr- / sector and the compan-2 s standing B:! Appraisal memorandum for 1erm +oan B:" Appraisal memorandum for 5or4ing Capital C 1erms and Conditions Anne;:! Future Plans and Business potential. Anne;:" Assessment of Credit );posure +imit &FC, Anne;:# )arnings. Anne;:$ Details of due diligence Anne;:% Details of *roup Associate entities/ Concerns Anne;:D Conduct of /arious facilities

AD AE

a,

-is( of abbre'ia(io"s use#

SECTI!$ A: Prese"( Proposal& Circle/SBU: Branch : a) Borrowers Profile Name : Segment: &C'I/(S()/A*+, Constitution &Prop./Partnership/+imited Partnership/Corp. )ntit- . P/t +td/ +td . +isted/ Unlisted, +ocation: &0/SU/U/(/F , Ne7 unit/);isting unit If -es );isting Connection Ban4ing 7ith us since Date of last 0ene7al/ 0e/ie7: &<, If 0e/ie7ed /alid upto : I0AC Status of !.Ad/ances : ". In/estments : 9es / No

b) Proposal& 0or sa"c(io" ) appro'al ) co"fir1a(io" : a, 8, i, Sanction c, ii, Appro/al a, 8, c, iii, a, Confirmatio 8, n c, 1his proposal falls 7ithin the po7ers of GGGGGG..as &i, FB/NFB/1otal inde8tedness is 0s. Corporate,
9

&Corporate / Non

&ii, In/ol/es polic- le/el de/iations: If -es= Indicate polic- le/el de/iations &onl- maBor de/iations,: &iii, HHHHHHHHHHHHHHHHH is a director in HHHHHHHHHHHHHHHH Ban4. c i) Cre#i( -i1i(s .Exis(i", a"# Propose#) & );isting Proposed Change +imits SBI 3 1otal Cons/ SBI 31otal Cons/ SBI 1otal Cons (BA/S-ndicatio (BA/S-ndicatio /(BA/S-ndicatio n n n
CC/5CD+/BD )PC/FBD 1otal FB5C 1+s/ECBs/FCL Ad:hoc= if anTo(al 0B .a) NFB5C +C NFB5C B* 1otal NFB5C &8, Deri/ati/e/FC/C) + &c , ProBect related +C ProBect related B* ProBect NFB &d, Ad:hoc= if an- (e) To(al $0B .b)/.c)/.#) > &e,; f 1otal Inde8tedness &a,>&f, I g I"'es(1e"(s &h, -easi", (i) To(al );posure &g, > &h, > &i,

c ii) Cre#i( -i1i(s .Co1pa"5 a"# %roup) Exposure

Fund Based Non Fund Based 1otal Inde8tedness in/estments +easing 1otal );posure Ban42s Share>> &3, 10

Co1pa"5 );isting Proposed

);isting

%roup Proposed

Ban42s Share in 1+>> &3,

#< Ba"8i", Arra",e1e"( a"# S+ari", Pa((er"& 0i"a"cial Arra",e1e"(& Sole Ba"8i",)Co"sor(iu1) Mul(iple Ba"8i",) S5"#ica(io" -ea# Ba"8& FB NFB 1otal 3 Share 1+ 5C SBI Associate Ban4s SBI *roup ther Ban4s &1otal, 1op fi/e 8an4s in terms of their );posure Ban4 A Ban4 B .... 1otal

11

SECTI!$ A= PER0!RMA$CE ETAI-S a) Perfor1a"ce a"# fi"a"cial i"#ica(ors: +ast t7o -ears actuals Current Ne;t -ear ?/69 results as on -ear Audited Audited )stimates ProBectio +ast Current &)stimates &)stimates, ns 9ear 9ear ,J J *ross Sales &/alue, Net Sales & );ports, Net Sales & /alue, PA1 &);ports, Net Sales &?uantit-, &);ports, 0a7 (aterials Po7er and Fuel Direct la8our S* ' A costs 8. Industr- );posure as on FB+ NFB+ 1otal );posure of the 3 compan- as per prudential e;posure norms 1o Industre;posure 1o total ad/ances &domestic,

Interest perating Profit& P,

after interest

P(3 & P/ NS3, PB1 PB1 / Net Sales3 PA1 Cash Accruals PBDI1 Interest Co/erage 0atio < PUC 1N5 AdB. 1N5 1 +/1N5 1 + / AdB.1N5 Current 0atio N5C DSC0 0 )3 J figures in 8rac4ets denote estimates at the time of last rene7al < Interest Co/erage ratio: Calculation method )BI1DA ) Interest.

12

b) Co11e"(s o" Perfor1a"ce * 0i"a"cial I"#ica(ors 2 &Comments onl- on ad/erse mo/ements in the a8o/e,: i)< $e( Sales

ii)< Profi(abili(5 .PBT ) $S)&

iii)< T$>& pening 1N5 & e;cluding SA( K , Share Application (one- K Add PA1 Add. &a, Increase in eLuit&8, Increase in share premium Add./Su8tract change in intangi8le assets AdBust prior -ear e;penses Deduct Di/idend Pa-ment Add / Su8tract : D1+ / D1A Closing 1N5 In/estments in Associates/ Su8sidiaries&A ' S, +ong 1erm +oans to A ' S AdBusted 1N5 K SA( 8e con/erted to eLuit- 8- ne;t Balance sheet date. Co11e"(s:

.Pas( (+ree 5ears)

i')< T!- ) T$>&

')< T!- ) A#6< T$>&

'i)< CURRE$T RATI! * $>C& c) M!VEME$T !0 -!$% TERM 0U$ S&

13

FUNDS F+ 5 Actuals )stimated Actuals )stimated ProBected &P9:", &P9:!, &P9:!, &Current &Ne;t 9r, 9r, +ong 1erm Sources a, Cash Accruals 8, )Luit- Funds c, +oans thers +ong 1erm Uses a, CAP)M 8, thers +ong term Surplus / Deficit
d)

Comments: #) S5"opsis of Bala"ce S+ee(& -IABI-ITIES Pre'ious 5ear CURRE$T -IABI-ITIES S+or( Ter1 Ba"8 0i"a"ce .A) !(+er Curre"( -iabili(ies . B) . To(al of i? ii? iii * i' ) i. Sundr- Creditors ii.Ad/ance Pa-ments recei/ed iii. 1+ inst. 0epa-a8le in !" months & incl FCCB, i/. thers T!TA- CURRE$T -IABI-ITIES .C) .A/B) /. 1erm +oans : SBI &N !" months, /i. 1erm +oans . thers &N !" months, /ii. De8entures= 0edeema8le Pref. Shares &O !" -ears,= FCCB etc /iii. Unsecured +oans i;. ther 1erm +ia8ilities T!TA- TERM -IABI-ITIES . ) . To(al of ' (o ix ) T!TA- !UTSI E -IABI-ITIES .E) . T!- ; C/ ) ;. PUC ;i. 0eser/es ' Surplus & ther than re/aluation reser/es , ;ii Share Application (one;iii. D1+ $e( >or(+ . $> ) .0) To(al of x? xi? xii a"# xiii T!TA- -IABI-ITIES .%) .E / 0 )
ASSETS CURRE$T ASSETS Pre/ious -ear

-as( 5ear

+ast -ear

14

a, 8, c, d, e, f,

Cash ' Ban4 Balances +C/B* (argins ' liLuid in/estments 0ecei/a8les& O D (onths, In/estments & ther than long term, 1otal in/entori, ther current Assets: Dues from Associates /Su8sidiaries ii, ther Curent Assets: thers

T!TA- CURRE$T ASSETS .A) 0IXE ASSETS *ross Bloc4 +ess Cum Depreciation $e( Bloc8 &e;cluding re/aluation reser/es, .B) In/estment in Associates= Su8sidiaries= sister concerns etc ther in/estments 0ecei/a8les N D months thers $o" Curre"( Asse(s .C) To(al Ta",ible Asse(s A>B>C I . ) TA !(+er I"(a",ible Asse(s I"(a",ible Asse(s? i"clu#i", TA .E) To(al Asse(s . /E)

e) Co11e"(s o" a#'erse 1o'e1e"(s o"l5 i" (+e abo'e & .$o( (o excee# @2A li"es) i, Comments on an- change in capital structure. ii, Comments on Short 1erm 8orro7ings= if not commensurate 7ith increase in /alue of in/entor' recei/a8les. iii, (o/ement of Unsecured +oans &Luasi eLuit-, i/, Change in in/estments in *roup companies / others /, Comments on Sundr- De8tors 8e-ond D months : present position /i, +oans and ad/ances to group companies. /iii, thers= if anf) ACTIVITY2>ISE CASB 0-!> A$A-YSIS& &Brief o8ser/ations on 7hether operating acti/ities are the principal re/enue
15

producing acti/ities of the enterpriseP e;tent of cash flo7 from in/esting acti/ities and financing acti/ities ma- 8e gi/en) *+efer C'', Circular -o. C''/CI+/C!//01 dt. 12.12.3144 on Credit %ssessment5 Cash 6low !tatement (C6!)7 CAS6 F+ 5 a. Net cash from perations 8. Net cash from In/estments c. Net cash from financing d. Net increase in cash/ cash eLui/alent ,) Co"soli#a(e# a(a7 i) 4e5 0i"a"cial I"#ica(ors Pre'ious Year -as( 5ear Net Sales PB1 PA1 Cash Accruals PUC 1N5 1 +/1N5 1 +/AdB 1N5 * 6or borrowers with annual turnover of +s 811 crores and above& consolidated data for past two "ears to be provided in full& on the lines of item 3%9 a)& d) and f)& instead of ) . Co"soli#a(e# Cas+ 0low Co"soli#a(e# Cas+ 0low .Ac(i'i(5 wise) Pre'ious Year a. Net cash from perations 8. Net cash from In/estments c. Net cash from financing d. Net increase in cash/ cash eLui/alent ii) Actuals &P9:", Actuals &P9:!, )stimated &Current 9r, 0emar4s

-as( Year

+) I"(er2fir1 Co1pariso":
16

i) 0i"a"ce rela(e#& S. Name of Co. No. FB +tsK NFB 9ear Sales C0 +tsK Cash Net C-cle Profit PB1/ 1 +/ Net Sales 1N5

($ where er a ai!a"!e either fr#$ #%r #wn data #r e&terna! s#%r'e,

ii) Mar8e( rela(e#& S. Name of Co. No. P) (ar4et Cap Share Price< &J, )PS of +ast 9ear

&< for listed companies) J %" 7ee4s2 6igh +o7P face /alue to 8e mentioned= if not 0s !A. Co11e"(s&

RIS4 ASSESME$T a, Cre#i( Ra(i", Current

SECTI!$ AC Pre/ious

17

C0A 8ased on 8alance Sheet as on @alidated on Borro7er rating Current Pre/ious C0A : 0ating /erall Score Financial Score/ (inimum Score Comments on change&s, in C0A rating/ (odel b) Ex(er"al Ra(i", 0ating Agenc- : Date and Amount of 0ating : 0ating 0ationale in 8rief: c) i) ii) iii) i') RM A VIS!RIES& 0(D *uidance Note ?ualitati/e approach ?uantitati/e approach Comments

Facilit- rating Facilities Current

Pre/ious

0ating 8tained: &Pre/ious 0ating, 0ating /alid upto:

#) i) Co"#uc( of Accou"(& &to comment 8riefl- on irregularities in the accounts in the past !" months . no. of times irregular ' time ta4en for adBustment of pea4 irregularit-. ,etails in %nne:ure9;) ii) U(iliDa(io" of li1i(s& Utilisation of limits: Comments FB +imits A/erage utilisation 3 NFB A/erage +imits utiliQation 3 0e/ie7 of Cash Credit Account for pre/ious -ear: 0s in crores Comments &i,1otal de8it summations &ii,1otal credit summations 3 of &ii, to total sales. Co11e"(s .if (+e u(iliDa(io" is less (+a" AE3) e) Re'iew of Ter1 -oa"s .Ter1 -oa"s wi(+ all Ba"8s)0Is (o be 1e"(io"e#)& Name of +imit DP utstandings Irregularit-= if DSC0 FAC0 Date of the as on ::::::::: an- < restructure FI/Ban4 s= if an-. Sanction Actuals
18

< Comment on reasons for o/er dues : i, No of instalments due: ii, No of instalments paid: iii, No of Installments in arrears: i/, Amount of interest in arrears: /, Comment on the compan-2s action plan for regulariQing the account. /i, Cross Defaults: If an-= please specif-:

f)

Securi(5 Co'era,e & .Pl< 0ur"is+ su11ar5 posi(io" +ereF 0ull #e(ails (o be fur"is+e# i" Sec(io"2 C) );isting Proposed Securit- Co/erage . SBI: including e;cluding including e;cluding residual residual residual residual /alue /alue /alue /alue Amount &3, Amount &3, Amount &3, Amount &3, 1erm +oan 5or4ing Capital Comment on infirmities in securit- creation= if an,) >ar"i", si,"als a"# u"a((e"#e# 1a6or irre,ulari(ies 0eport Date 5arning Signal /(aBor Comments irregularities/ ther significant o8ser/ations 0FIA 0eport Credit Audit 0eports 0BI AFI u/s #% ther Audit 0eports ?ualification if an-= in Auditors report Stoc4 ' 0ecei/a8les audit report

+)

Earlier (er1s of Sa"c(io" 2 Co1plia"ce s(a(us S<$ o< Co"#i(io"s)obser'a(io"s Co'e"a"( Co1plia"ce s(a(us #e(ails) (i1e fra1e
19

a,

0I$A$CIA- C!VE$A$TS

A.! )Luit- infusion A." Con/ersion of Share Appln mone-/ A.# A.$ A .% A.D A.E 8,
Unsecured loans into eLuit- J Di/idend outflo7/ Sale of In/estments 1 +/1N5 &1imes,< 1 +/ AdB 1N5 &1imes,< Current 0atio( PBDI1/ Interest &1imes,(

!TBERS G!bser'a(io"s ) Co"#i(io"s) i"clu#i", Pos( Sa"c(io" 1o#ifica(io"s .if a"5)H

! " < Comments onl- 7hen the negati/e /ariance is more than "A3.

Pe"al ac(io" s(ipula(e# i" las( sa"c(io"& S(ipula(io" S(a(us of co1plia"ce

Pe"al ac(io" reco11e"#e#? if a"5&

i, ues

S(a(u(or5 #ues)o(+er co"(i",e"( liabili(ies& A1ou"( Iua"(ifie# I1pac( o" fi"a"cial i" ABS posi(io" .as 3 of T$>) $e,a(i'e score i" CRA? if a"5

Statutor- dues Contingent lia8ilities Comments= in 8rief= if the impact is significant 6) Ris8s a"# 1i(i,a(i", fac(ors & Mi(i,a(i", fac(ors

Cri(ical ris8s percei'e# !. Financial 0is4s ". Business and Industr0is4s #. 6urdle 0ates
CRA RE-ATE

20

%R!UP RE-ATE C!U$TRY RIS4 SUSTAI$ABI-ITY C!$CER$S

$. *roup gearing= 7here applica8le %. Ad/erse features in *roup Concerns/ Associate entities= interloc4ing of funds= if an-

D. )n/ironmental Clearances ' Sustaina8ilit- measures E. ther pending appro/als= if an-

21

SECTI!$2AJ PRICI$%& a) I"co1e A"al5sis& SBI From WC Int. Estimates ( last year) Actuals (last year) Estimates (current year)

Interest ' ther Charges as per latest Balance Sheet dated < . Interest ther Charges < If share not pro :rata then reasons for the same )stimated &Pre/ious 9ear, 0eturn on Capital Charged Comments b) !(+er Ba"8s)0Is Prici", Name of the Ban4 1erm +oan 5or4ing Capital

SBI Share Amount Percentage

Actual &Pre/ious 9ear,

)stimated &Current -ear,

);isting

Proposed

c) Propose# Prici",& I1)( Base );isting 0ate Card rate Proposed rate 0ate Spread )ffecti/e Spread )ffecti/e Spread )ffecti/e 0ate 0ate 0ate Int. on 5C Int. on 1+ #) !(+er co"cessio"s alrea#5 ex(e"#e# ) propose#& !(+er i"co1e ITEM Exis(i", Ra(e Car# ra(e Propose# ra(e Ex(e"( of co"cessio" .3) Processing fee Commit charges Upfront fee +C B* 9us(ifica(io" wi(+ cos( be"efi( a"al5sis SECTI!$ A@
22

-!A$ P!-ICY&

EVIATI!$S A$

C!MP-IA$CE :

a) >+e(+er "a1es of pro1o(ers? #irec(ors? co1pa"5? ,roup co"cer"s fi,ure i" #efaul(er)willful #efaul(ers lis(& 5ilful defaulters2 list dated : 0BI defaulters2 list dated : Name of the director Name of the director : 9es/No : 9es/No Default in connection 7ith &Name of the compan-, Default in connection 7ith: &Name of the compan-

0emar4s 0emar4s

)C*C caution list dt. CIC . Credit 6istorCICs : Suit filed list Banned list of Promoters &S)BI, (C)C* Credit )nf#r$ati#n C#$+anies) b) e'ia(io"s i" -oa" Polic5& Para1e(ers I"#ica(i'e Mi")Max le'el Co1pa"5Ks as per -oa" polic5 le'el as o" 9us(ifica(io"s

a, Prudential norms , Borro7er 8, Prudential norms : *roup c, FB e;posure to the industrd, Su8stantial e;posure: Borro7er e, Su8stantial e;posure : *roup f, 1erm +oan :1enor g, C0A (inimum Score h, 6urdle rate i, 1 +/1N5 B, +iLuidit4, De8t / eLuitl, Promoters contri8ution m, A/erage gross DSC0 &1+, n,Non compliance of norms for strategic schemes: /iQ. Corporate +oans= 1IFS= C0) and =others p, thers

9us(ifica(io"&
c) !(+er #e'ia(io"s Parameters Compliance (Y/N) Deviations Justification

a< De/iations in 1a4eo/er norms b< Scheme specific de/iations= if anc< Ad/ances to Ban4Rs Directors and parties related to Directors< #< Ad/ances to fficers and the 0elati/es of Senior fficers of SBI/other Ban4s< e< Ad/ances to Directors of other Ban4&s, and parties related to other Ban42s Directors< S< 0efer latest 0BI master Circular on Statutor- and other 0estrictionsT

23

SECTI N !" .SY$!PTIC APPRAISA- MEM!RA$ UM 0!R TERM -!A$& Circle : Branch : Compan- : 1erm +oan / DP* : a, 8, Proposal : ProBect / Purpose : i, Description: ii, Ue- ProBect Parameters: ProBect Cost De8t Promoters2 contri8ution ur share in 1otal -e"t
-e"t );psoure &3,($#rat#ri%$ t# "e 1enor of the loan s+e'ified)

)Luit-

D/) 0atio

A/erage 1enor *ross a/g DSC0 (in. Securit- (argin e(ails of spo"sor? +a'i", 1a6or S(a8e i" (+e SPV &a,Name &8, eLuit- sta4e &c, Credit )nhancement (echanism &A/aila8le/ not a/aila8le, c, d, Appraised 8- : Details of 1)@ Stud- &if proposed for 7ai/er= Bustifications to 8e gi/en,: i, Name of the Agenc-: ii, *ist of maBor findings:
(-etai!s t# "e f%rnished here if a ai!a"!e)

24

e, Cost of ProBect= (eans of finance and Ue- ProBect Parameters: Cos( +and Building P'( ther assets Prel. and Pre: op. e;penses IDC J Contingencies 5C (argin A. )Luit-: i, )Luit- Shares ii, Pref. Shares iii, Internal Accruals< 1otal eLuit- contri8ution &i>ii>iii, B. De8t i, 01+ &ii, )CB &iii, De8entures &i/,Unsecured loans &/, thers= if an1otal De8t &i>ii>iii>i/>/, 1otal *< I,C interest durin operative e:penses De8t: )Luit-: &B/A) Promoter2s contri8ution: a/A 3 a) !ources of 'romoter>s funds to be specified& e. details of assets& investments to be li#uidated? in case of Investments from %ssociates 9 their Cash %ccruals to be e:amined over the pro)ect implementation period with reference to past performance& current trends& debt servicin re#uirements/ C%'@A& cash flow comfort and other re#uirements b) Internal accruals5 ,etails relatin to availabilit"/ ade#uac" of surplus to be commented upon ) f, 0emar4s on Cost of proBect ' (eans of finance< &in 8rief,: < to include anal-sis of *roup eLuit- plans for the proBects / proBected cash flo7s ' le/erage /erall /ia8ilit- and accepta8ilit- of the proposal : 1otal &A>B, construction& as a component of preliminar" = pre9 Promote thers r &a, &8, 1otal &cIa>8, Mea"s of 0i"a"ce .

(.)

&B,

g,

25

Sec(io" AL a) 9us(ifica(io" for (+e proposal& .!"l5 bulle( poi"(s) .!(+er (+a" (+ose co'ere# i" sec(io" AJ?A@?AA? B2: a"# B2=) a., 5or4ing Capital Sl $o Par(iculars -as( Sa"c(io" Es(i1a(e#Ac(ual ! " Net sales In/entor-/NetSales > 0ecei/a8les/ *ross Sales &da-s, # Net Sales to 1otal tangi8le Assets $ ABF/ 1CA % S Cr/ 1CA D C+/ 1CA E N5C/ 1CA F FB 5C V NFB 5C Brief Comments: Curre"( 5ear Pro6ec(io"s for followi", 5ear

8., c., d.,

ther sanctions: Appro/als: Confirmation

b) Reco11e"#e# for sa"c(io" ) appro'al ) co"fir1a(io"<

Appraise# b5 Signature Name Designation Place & a(e&

Assesse# b5

A##i(io"al Assess1e"( b5 Deput- *eneral (anager

Credit Anal-st

1eam +eader

SECTI!$ AM PR!0I-E !0 TBE B!RR!>ER

26

 CI0 $o? A##resses * -oca(io"s of (+e co1pa"5 : CIF No&s, 0egistered ffice &Full Address, Administrati/e ffice &Full Address, Factories/ Production Centres !. &Full Addresses, ". #. Names ' Addresses of the Promoters / Directors : S.No. Name Designation Identifiers DIN PAN Passport thers ! " # $ % S< Identifiers based on /BC uidelines7 i) e(ails of S+are2+ol#i", pa((er" of Pro1o(er No. of Shares held irec(ors & 3 of share holding

Full Address

S.No. Name of the Promoter / Director ! " # $

@alue of Shares held

ii) S+are+ol#i", Pa((er" as o" NNNNNNN< escrip(io" Promoters P/t. Corporate Bodies Indian Pu8lic N0I/ CB (utual Funds Ban4s / Financial Institutions Foreign Institutional In/estors thers To(al

3 of Bol#i",

:EE

iii. Comment on change in shareholding pattern= if an-= su8seLuent to pre/ious sanction: Cre#i( Bis(or5 .wi(+ our Ba"8)& &+ast % -ears for (C* and others and last # -ears for CA*, i.
27

Year a(e of Sa"c(io"

Exis(i", 0B >C T$0B

Sa"c(io"e# 0B >C T$0B

$e( Sales .o"l5 for (+e rele'a"( perio#)

CRA

& All credit sanctions including ad:hoc sanctions to 8e captured, ii.

Par(iculars $o(io"al -oss Co11e"(s

+oss)Notional loss/ 6aircut suffered 8the Ban4 on account of 5riteoff/ Compromise settlements/ 0eferences to CD0 in respect of pre/ious e;posures on Companies floated 8- 0elated parties= *roups= Associates and Directors &Please Luantif-,. Specific comments on W+i ht to recompense> clauses needs to 8e commented upon

Brief Bac8,rou"# of (+e co1pa"5 ) %roup * Ma"a,e1e"( &1o include competence / reputation/ corporate go/ernance etcP, & Brief wri(e up o" (+e I"#us(r5) Sec(or a"# (+e Co1pa"5s s(a"#i", &Comments on domestic/ international standing= mar4et share= 8usiness strategies= competiti/e ad/antage etc. 1he para to conclude 7ith the outloo4 for the unit ,

Sec(io" B2: APPRAISA- MEM!RA$ UM 0!R TERM -!A$&

28

Circle : Branch : Compan- : 1erm +oan / DP* : a, 8, Proposal : ProBect / Purpose : i, Description: ii, Ue- ProBect Parameters: ProBect Cost De8t )LuitD/) 0atio 1enor of the loan *ross a/g DSC0 (in. Securit- (argin Promoter2s contri8ution +C su8:limit 7ithin De8t Ban4 *uarantee ur share in De8t ur share in +C ur share in B* Deri/ati/e +imit ur Share in 1otal e;posure Details of sponsor= ha/ing maBor Sta4e in the SP@ &a, Name &8, eLuit- sta4e &c, Credit )nhancement (echanism &A/aila8le/ not a/aila8le,

c, d,

Appraised 8- : Details of 1)@ Stud- &if proposed for 7ai/er= Bustifications to 8e gi/en,: i, Name of the Agenc-: ii, *ist of maBor findings:

29

e, Cost +and

Cost of ProBect= (eans of finance and Ue- ProBect Parameters: (eans of Finance .

Building

P'( ther assets Prel. and Pre: op. e;penses IDC J Contingencies 5C (argin

A. )Luit-: i, )Luit- Shares ii, Pref. Shares iii, Internal Accruals 1otal eLuit- contri8ution &i>ii>iii, B. De8t i, 01+ &ii, )CB &iii, De8entures &i/,Unsecured loans &/, thers= if an-

Promote thers 1otal &c , r &a, &8,

&A,

1otal De8t 1otal 1otal &A>B,

&B,

De8t:eLuit- : B/A Promoter2s contri8ution: a/A 3

f, 0emar4s on Cost of ProBect & CoP, ' (eans of Finance & (oF, &in 8rief,: &comments on (oF to also include promoter *roup2s eLuit- commitments during proBect implementation period in the conte;t of *roup2s proBected free cash flo7s ' le/erage o/er the periodP,

30

ProBect implementation ' dis8ursement schedule :

! Deal Diagram: &Applica8le for proBects 7ith ProBect cost N 0s.%AA crore or Ban4 e;posure N 0s.!AA crore, = C +ocation : +and:

J Production Factors / 1echnical Aspects: @< +ender2s Independent engineer/ Insurance consultant/ +egal Consultant A< (ar4eting ' Selling Arrangements: L< Anther Factors:

M< Utilities: O< Appro/als and Clearances: Sl.No Appro/als reLuired < Authorit- to accord Present status appro/al /iQ.= Forest Department= (o)S= PCB= etc.=

< Based on Ban42s Panel )ngineer2s /CA/ 1)@ 0eport.

Implementation Schedule:

Status of implementation ' dis8ursement schedule :

i,

a, Commercial /ia8ilit- &compan- as a 7hole,: . "o( applicable for SPVs) P9 " AUD P9 ! AUD
31

C9

F9

Net sales P PB1 PA1 Cash Accruals PBDI1 9ear Capacit- utiliQation 3 Sales Net Profit Cash Accruals Interest 1 1A+ 1+ / );isting +oan DP* Proposed +oans repa-ments Interest 1 1A+ *ross DSC0 A/erage *ross DSC0 Net DSC0 &Cash accruals utiliQed for the proBect= if an-= to 8e factored in DSC0 for the corresponding financial -ear, A"5 1easures bei", (a8e" (o ri", fe"ce (+e pro6ec( fro1 (+e co1pa"5& . i" case of proposals fro1 P0 2 SBU? w+ere'er warra"(e#) Co11e"(s o" SCR .i" brief)& 8, Commercial /ia8ilit- &Current proBect,: 9ear "A.. "A.. "A.. "A.. "A.. "A.. Capacit- utiliQation 3 Sales Net Profit Cash Accruals Interest 1 1A+ 1+ / );isting +oan DP* Proposed +oans repa-ments Interest 1 1A+ *ross DSC0 A/erage *ross DSC0 Net DSC0 Co11e"(s o" SCR .i" brief)& "A.. "A.. "A.. "A.. "A.. "A.. "A..

"A..

&c , 10A arrangement : & to comment on treatment to cash flo7s of the proBect : 7hether separate 10A
32

7ould 8e esta8lished etcP,

B,

0epa-ment Schedule and DS0A &DS0A: Applica8le for proBects 7ith ProBect cost N 0s.%AA crore or Ban4 e;posure N 0s.!AA crore, Securit- (argin: +ast 9ear 1he Current 9ear

4,

0arti'%!ars 5D@ of fi;ed assets Agg. 1+ / DP* outstdg. Securit- margin a/aila8le 3 of margin

(inimum Securit- (argin: Comments on securit- margin: &(itigations in case of lo7 le/els of minimum securit- margin or DSC0, l, m, n, o, Brea4:e/en anal-sis and 7hether accepta8le: Sensiti/it- Anal-sis and 7hether accepta8le: ProBect 0is4 Allocation (atri;: /erall /ia8ilit- and accepta8ilit- of the proposal :

33

SECTI!$ B2= Assess1e"( of >C facili(ies& &If the assessment of the 5C limits is 8ased on an- other parameters= li4e Cash Budget method= Na-a4 Committee: 1urno/er (ethod= please specif- them along 7ith an e;planation,
1) In/entor- ' recei/a8le le/els : Amount ) ( -a2s,

In/entor-/Pa-ments 0a7 material :Imported

.$#%nt a2s

)stimates

Actuals

)stimated

ProBected

:Domestic
.$#%nt a2s

SIP
.$#%nt a2s

F*
.$#%nt a2s

0ecei/a8les
.$#%nt a2s

S Creditors :
.$#%nt -a 2s

Import

: Domestic .$#%nt
-a 2s

ther
.$#%nt

Current

Assets

h, Assessed Ban4 Finance: Assessed Ban4 Finance 9ear 1CA C+ 5C *ap N5C BF N5C/1CA &3, BF/1CA &3, )stimated Actuals )stimated ProBected

34

C+/1CA &3, CA/1CA &3, +C/SC&3,

i, Assessment of )PC / FBD limits : Sl< $o< A A! A" A# A$ A% AD B B! B" B# C . B, Computation of +C limits for 5C: Foreign +Cs 1otal Purchases of 0( &)sti/ProB, Procurement out of +C &3, (onthl- 0( purchases out of +C< a, Usance &a/erage, 8, +ead time &a/erage, 1otal 1ime &a > 8, +C +imit reLuired 0ecommended +C limit Documentar- : (argin &);isting / Proposed,: Usance / Sundr- Creditors : <In case of foreign +Cs= purchases should 8e net of duties. Comments on mismatch= if an-= 8et7een Usance a/aila8le ' SundrCreditors : Domestic +Cs 1otal +Cs AS !$ C:s( MARCB ACTUAEPC Annual );port Sales );ports Per month A/erage 0( holding &in months, A/erage processing period &in months, 1otal reLuirement SA" ;&A#>A$,T +ess : (argin )PC +imit 0ecommended PSC A/erage e;port recei/a8les &in months, PSC reLuired &A" <B!, FBD +imit 0ecommended 1otal e;port finance reLuired &AD>B#, ESTIMATE PR!9ECTI!$

Non Documentar- :

35

4, Assessment of B* limit: utstanding B*s as on GG.. Add: B*s reLuired during the period ..GG.. +ess : )stimated maturit-/cancellation of B*s during the period GGGG 0eLuirements of B*s 0ecommended B* limit Financial : Performance : (argin &);isting / Proposed,: &In case of )PC Contractors/ Construction industr- detailed assessment in respect of *uarantees issued for Bid 8ond= (o8iliQation= Performance= 0etention= ther B*s 8e pro/ided, Assess1e"( of B% li1i(s for EPC co"(rac(ors) Co"s(ruc(io" I"#us(r5 &In case of EPC Contractors/ Construction industr- detailed assessment in respect of *uarantees issued for Bid 8ond= (o8iliQation= Performance= 0etention= ther B*s 8e pro/ided, ! " # 1otal @alue of tenders participated at an- point of time P $ex( := 1o"(+s .A) Success/ Stri4e rate J H1 3 .B) .B) ; A 7 13 Bid Bonds J H" 3 on /alue of the tenders participated . calculated on the assumption that the )(D B*s are rotated once in p months. SC I A < n3 < p/!" T .C) S AI1otal @alue of Bid 8onds= p I no of monthsT Performance *uarantees J I 3 of item " . ) SDI B < L3 < nn/!" T S7here nn I no of monthsT (o8ilisation ad/ance guarantees J r 3 of item " .E) S)I B < r3 < nn/!" T S7here nn I no of monthsT 0etention mone- guarantees J Qs 3 on completion of 7or4s for ne;t ( months .S) S B< s3< nn/!"T S7here nn I no of monthsT 0eLuirement of *uarantees for miscellaneous purposes *uarantees reLuired for ne7 ' e;isting proBects &#>$>%>D>E, Add: utstanding Ban4 *uarantees as on .

$ % D E F V

To(al Ba"8 %uara"(ees .M/O) V -ess& Ban4 *uarantees e;piring during ne;t including return of 8id 8onds
36

months

Ban4 *uarantees reLuired Reco11e"#e# Comments on mismatch= if an-= 8et7een (o8iliQation B*s gi/en and Ad/ance pa-ment utstanding

l, Assessment of Credit );posure +imit &For7ard Contract +imit,:As per Anne;ure:". 0orwar# Co"(rac() eri'a(i'e li1i(s ) Past Performance &0e/enue,< )) Documentar- )/idence II.&a, );change 0ate Contracts -E ,0e/enue II.&8, );change 0ate Contracts D) , thers III. Interest 0ate Contracts &+ia8ilities, i 3 4%", 5#ta! XS& I or II &a,T >II &8,>IIIY
, Negati/e (1( for e;isting deals 565.L L)7)54 (i 8 )

Expor(s

I1por(s

To(al -i1i(

,<

)fficienc- ratios : Aud Aud &)st, )sti ProB

Particulars

Net sales to 1otal 1angi8le Assets &times, PB1 to 1otal 1angi8le Assets &3, perating cost to Sales &3, Ban4 Finance to Current Assets &3, &In/entor- / Net Sales, > &0ecei/a8les / *ross Sales, &da-s, Interest / cost of sales BF/*ross Sales Brief comments and Bustification on the assessment of the a8o/e FB and NFB limits:

37

SECTI!$ C S(a"#ar# Ter1s * Co"#i(io"s& CI0C+) : C (PAN9 : S)CU0I19 : a< Pri1ar5 Facilit- Details of Securit-< 1-pe of Charge @alue<< Date of Basis of /aluation /aluation

<1o include detail li4e Uhata no./ Sur/e- No./ Patrta No.etc= Flat no= 6ouse no= Area/e;tent of land= address. << In case of Consortium/ (BA Accounts our share to 8e pro/ided. Details of 1otal Securit- for the facilit- and for the Ban4ing S-stem ma- 8e sho7n in 8rac4ets

b< Colla(eral Facilit- Details of Securit-<

7ned 8- 1-pe of Charge

@alue<<

Date of Basis of /aluation /aluation

< 1o include detail li4e Uhata no./ Sur/e- No./ Patrta No.etc= Flat no= 6ouse no= Area/e;tent of land= address. In case of Agri land time line for con/ersion. << In case of Consortium/ (BA Accounts our share to 8e pro/ided. Details of 1otal Securit- for the facilit- and for the Ban4ing S-stem ma- 8e sho7n in 8rac4ets

c< %uara"(ees& FacilitName

Net (eans

As on

Compiled on

i3

In case of Corporate guarantee&s, : 8rief profile and financials of the compane;tending the guarantees e;ecuted 8- the entit- on 8ehalf of the associate concerns to "e gi/en. In case of personal guarantees= net 7orth to 8e f%rnished

ii3

38

#< Securi(5 Co'era,e& );isting Securit- Co/erage . SBI: including residual /alue&3, e;cluding residual /alue&3, Proposed including residual /alue&3, e;cluding residual /alue&3,

1erm +oan &3, 5or4ing Capital &3, Comment on infirmities in securit- creation= if ani. ii. Please indicate time frame allo7ed for securit- creation: De/iation from e;isting securit- &if an-, to 8e mentioned in the proposal.

Custification of de/iation to 8e furnished in Section AE e< )C*C C @)0:

Pre:shipment Credit *uarantee &9es / No, Post:shipment Credit *uarantee &9es / No, SC0 Polic- 7ith 8u-er 7ise +imit &9es / No, f< (A0*INS : &For )ach Facilit- as Applica8le, Cash Credit:
0(: 0(: Domestic Imported

);isting

Proposed

SIP F* 0ecei/a8les &Co/er :::da-s, +etter of Credit B* 1+ / DP* ProBect +C

Custification for de/iation from e;isting margins= if an- to 8e pro/ided in Section A E a8o/e.

,< INSU0ANC): +< INSP)C1I N:

39

i< 0ate of Interest 6< Processing Fee/ Upfront Fee 8< 0epa-ment Schedule
l<

16)0 C0I1ICA+ C @)NAN1S: 16)0

m< ( DIFICA1I NS= IF AN9= 0)?UI0)D F0 ( S1ANDA0D C @)NAN1S

&detailed in Circular CPP/0SN/CI0/%A dated "D.AV."AAD,= A++ C @)NAN1S 5I++ APP+9 : Custification of de/iation to 8e furnished under section AE

A$$EXURE 2 :
40

Future Plans ' Business potential&o/er a #:% -ear horiQon, including Cross selling / 0etail (ar4eting 8ased on Co / *roup2s future plans: &to 8e Luantified,. I(e1 Prese"( Posi(io" P >+e(+er Tie# UpR .Yes ) $o) 7 Busi"ess es(i1a(e#

Corporate Salar- Pac4age P Segment +oans &Nos, &a, 6ousing &8, Auto +oans &c, Personal +oans SBI Credit Card &No., Point of Sale 1erminals SBI Corporate Card &No., SBI +ife Business : &Premium , a, Corporate Business 8, 0etail Business SBI General Insurance (Premium Rs. In crores) SBI (utual Funds &*ross in/estment . 0s. crores, SBI Capi(al Mar8e(s -(# iii. &a,ProBect Ad/isor- ' +oan S-ndication i/. &8, ( ' A /. &c , Pri/ate )Luit/i. &d,IP /FP /ii. &e, thers &if an-, &Potential 1ic4et siQe ' 7hen e;pected ma- 8e furnished against each applica8le item, SBI @ish7a-atra Foreign 1ra/el 9atra Cards &In USD, @endor/ Dealer Finance An- ther &Please specif-, 7 If "o? please a#'ise effor(s 1a#e a"# ou(co1e (+ereof

41

A$$EXURE P = ASSESSME$T !0 CRE IT EXP!SURE -IMIT .0!R>AR ERIVATIVE -IMIT) C!$TRACT )

I& Pas( Perfor1a"ce Me(+o# $o(e& !"l5 re'e"ue exposures for (+e 5ear are co"si#ere# u"#er (+is co1po"e"( .Rs< i" Crs) 9ear );ports 1/ Imports 1/ Pr 9ear:" Pr 9ear:! Pr 9ear 1otal 1/ &# -ears, A/erage 1/ &# 9ears, Eli,ible $o(io"al $o(e& Eli,ible $o(io"al is +i,+er of (+e a'era,e of pre'ious C 5ears T)! or pre'ious 5earKs T)!< Applicable CC0;=3 .S : Purc+ase -i1i(s Year) .P0E) Sales -i1i(s .P0E) PF) on )ligi8le Notional $o(e& P0E o" eli,ible "o(io"al is (+e -i1i(< Separa(e sub2li1i(s for Sales a"# Purc+ases are (o be assesse#< C!" under PP component A II& ocu1e"(ar5 E'i#e"ce Me(+o# Eli,ible $o(io"al base# o" 'arious co"(rac(s a"# obli,a(io"s o" +a"#< .Re'e"ue co"(rac(s bo(+ s+or( a"# lo", (er1? repa51e"(s? o(+er i"flows or ou(flows)< Exc+a",e Ra(e Co"(rac(s 1enor Eli,ible $o(io"al .ac(ual) O! -ear N! -ear OI% -ears N % -ears II<a)Exc+a",e Ra(e Co"(rac(s Re'e"ue .curre"( 5ear) NA NA Applica8le CCF "3 NA NA C!" under #! ( re$enue cur.%r) B $o(e& Bi,+er of (+e A or B is a##e# (o (+e o(+er co1po"e"(s of exposures a"# li1i(s
6igher of A or B

42

II< b)Exc+a",e Ra(e Co"(rac(s E !(+ers .Repa51e"( /Re'e"ue o(+er (+a" II .a) * o(+ers) 1enor O! -ear Amount Applica8le CCF "3 PF) i

N! -ear OI % -ears !A3 ii

N % -ears !%3 iii

II &8,. D) thers &i>ii>iii, C To(al Exc+a",e Ra(e Co"(rac(s .higher of &A or B, /C) .:) Notes: Eli,ible $o(io"al arri'e# a( o" a,,re,a(e repa51e"(s ) receip(s for (+e rele'a"( 5ears basis< Notes: Receip(s ou( of lo", (er1 re'e"ue co"(rac(s for firs( 5ear are co"si#ere# o"l5 u"#er E eli,ibili(5 III< I"(eres( Ra(e Co"(rac(s Eli,ible $o(io"al .ac(ual) Amount &)CB etc., Applica8le CCF & ma; period, PF) on eligi8le notional To(al CE- IR Co"(rac(s .i/ii/iii) Add Negati/e (1( of e;isting contracts To(al 0orwar#) eri'a(i'e -i1i(s .:) / .=) > &#, Summar0orwar# Co"(rac() eri'a(i'e Expor(s li1i(s I Pas( Perfor1a"ce . Re'e"ue)7 II ocu1e"(ar5 E'i#e"ce II<.a) Exc+a",e Ra(e Co"(rac(s. Re'e"ue)7 II<.b) Exc+a",e Ra(e Co"(rac(s. E !(+ers) III I"(eres( Ra(e Co"(rac(s .-iabili(ies) I@. Su8 1otal TG. I or II .a)H /II .b)/IIIU @. Negati/e (1( of e;isting contracts 1 1A+ &I@ > @, 1enor N! -ear OI% -ears

O! -ear

N % -ears

A.%A3 i

!.AA3 ii .=) &#, &$, I1por(s

#.AA3 iii

To(al -i1i(

1erms and conditions as per Circular No. GGGG. Dated GGGGGGGGGGG.

43

A$$EXURE P C EAR$I$%S * R!CC& Net Interest (argin: 0acili(5 Ra(e of I"(eres( C+ar,e# 3 .A) CC 1+:! 1+:" );ternal 0ating: Name of the );ternal Credit 0ating AgencCredit 0ating assigned Date of 0ating 0ating /alid upto 0is4 5eight applica8le Capital Charge: 0acili(5 Propose# Effec(i'e CC0 Ris8 -i1i(s Exposure .3) >ei,+( . ) 7 .E) .3) .0) Ris8 Capi(al >ei,+(e# C+ar,e Exposure .B ; % 7 :C3) .% ; 7E70) MR0TP Ra(e 3 .B) $e( I"(eres( Mar,i" 3 .C ; A 2 B)

!. ". #. $. %. D. E. F. V.

FB5C 1+ Corporate +oan S+C +C &Docum, +C &Non:docum, B* &Perform, B* &Financial,

CEL

To(al < After netting off financial / cash securities &as per Basel norms, 0eturn on Ca+ita! Char1e (96CC) * !ctuals Estimates )nterest NII Fee 5#ta! )nterest Income (% & )n'#$ )n'#$e Income (#ast (Ne(t Year) P ' e (9 ) (4) $ear) (5) C/!) (P) 5C Int./discount 1+ interest
+C B* Fore; Bills thers

NII Fee 5#ta! (: & )n'#$ )n'#$ 5 ' e (;) e (<) C/! )

T T!# ) CC(*) )n'#$e '+,,/-)

(5#ta! A$$EXURE2J
44

e(ails of ue ili,e"ce& Date of Pre:Sanction /isit Place&s, /isited Name&s, of officials= 7ho /isited 5hether papers reLuired for U9C o8tained &PAN/Articles/(emo etc,Z 9es/No Date of Search 0eport o8tained from 0 C Formalities regarding o8tention of legal opinion//aluation report completedZ &9es/No, 5hether CI0s o8tained from e;isting Ban4ersZ &9es / No, ther 8ser/ations= if ana(e C+ar( !. Nature of facilit- &ies, applied for: ". Date of receipt of the proposal #. Information sought on changes in the re/ised 8usiness plan $.0epl- recei/ed %.Discussions held 7ith Compan-2s officials D.Information recd E. In Principle Note su8mitted F. Date of receipt of complete information V. Date of su8mission to sanctioning authorit- &for sanctioning authorities up to the le/el of *(, !A. Date of su8mission to CCCC if proposal is to 8e sanctioned 8- CCCC or higher authorities Appraisal: done 8- and date of completion Assessment: Done 8- ' Date of completion Additional Assessment: done 8- and date of completion esi,"a(io" Credit Anal-st 1eam +eader/ A*( D*(/ *( a(e I"i(ials

A$$EXURE 2 @ %R!UP ) ASS!CIATE E$TITIES)C!MPA$IES

45

: = C J

$AME !0 TBE U$IT $AMES !0 PR!M!TER ACTIVITY A$A-YSIS !0 0I$A$CIA-S AS !$ A C!MM!$ PY -Y ATE IRECT!RS

$ET SA-ES PBT CASB ACCRUA-S PUC T!-)T$> T!-)A#6 T$> @ BA$4I$% ARRA$%EME$TS 0B $0B !UR SBARE .3)

A L M O :E

$AMES !0 !TBER BA$4ERS IRAC STATUS CRA ) ECR A$Y EA-I$%S >ITB TBE B!RR!>I$% C!MPA$Y

4$!>$ A VERSE 0EATURES? I0 A$Y

A$$EXURE2A C!$ UCT !0 VARI!US 0ACI-ITIES7 .-as( := 1o"(+s perio# (o be co'ere# for all facili(ies)
(8(.++!i'a"!e f#r .''#%nts with =r#%+ t%rn# er #f !ess than 9s 1000 'r#res) 46

(a) Cas+ Cre#i(

Par(iculars Credit summation< De8it summation< (a;imum outstanding (inimum outstanding A/erage outstanding No. of times and da-s the account 7as irregular 0easons for the irregularit-&ies, Pea4 irregularit- in the account= if anNo. of da-s ta4en to adBust pea4 irregularit-

-as( 0i"a"cial 5ear

Curre"( 0i"a"cial 5ear up (o pre'ious 1o"(+

No of times

No of da-s

No of times No of da-s

(* Co be provided for accounts with e:posure less than +s. 411 crores)

&a i,: Comments: .b) Bills 0acili(5 Par(iculars No. of Bills purchased / discounted Amount of Bills purchased / discounted No. of Bills returned unpaid Amount of Bills returned unpaid Interest / discount earned &8 i, 0easons for return of Bills. (+* !ince such accounts are bein reviewed b" DM and above under the %ccount plan e:ercise hence ma" lead to duplicit" of work) -as( 0i"a"cial 5ear &Amount in lacs, Curre"( 0i"a"cial 5ear up (o pre'ious 1o"(+

c,

-e((er of Cre#i(

&Amount in lacs,

47

Par(iculars No of +Cs opened Aggregate amount of +Cs No. and da-s amount of 8ills that de/ol/ed f the a8o/e= not adBusted in !% da-s (a;imum no. of da-s ta4en for regularising the account Commission earned

-as( 0i"a"cial 5ear

Curre"( 0i"a"cial 5ear up (o pre'ious 1o"(+

#)< Ba"8 %uara"(ees Par(iculars No. and amount of guarantees issued No. and amount of guarantees in/o4ed= if an5hether Cash Credit a/c 7as rendered irregular= on account of a8o/e . no. ' amount (a;imum no. of da-s ta4en Commission earned

-as( 0i"a"cial 5ear

&Amount in lacs, Curre"( 0i"a"cial 5ear up (o pre'ious 1o"(+

A$$EXURE& V=W
Appraisal $o(e 0or1a( XAS

48

1o 8e used as appraisal note for re/ie7s= ad hoc limits= Corporate loans (&nits with !CRA of BBB' and a(o$e and CRA greater than SB) ,= interchangea8ilit-= changes in securit-/margin and other matters. For Corporate loan (&nits with !CRA of BBB' and a(o$e and CRA greater than SB),= commercial /ia8ilit-= repa-ment schedule and securit- margin etc are to 8e furnished as anne;ure.

.All a1ou"(s are (o be i" crores) :< Co1pa"5 Profile& Circle/SBU: Branch : a) Borrowers Profile Name : Segment: Constitution: &C'I/ (S()/A*+, &Prop/ Partnership/ ++P/ Corp. )ntit-/ P/t +td./ Pu8lic +td: +isted/ Unlisted, &For Companies,: +ocation &0egd office onl-, : &Indicate 0/SU/U/(, Sl Promoter2s name &Include names of No maBor Corporate shareholders also,

I0AC Status of i. Ad/ances : ii. In/estments :

Designation

Shareholding &3,

Promoter Director&s,: &mention com8ined shareholding 3, *roup to 7hich compan8elongs: Industr-:

Acti/it-: &(fg./ 1rading/ Ser/ices/ NBFC/ Date of incorporation: Ban4ing 7ith us since: Ban4ing arrangement : Sole Ban4ing /Consortium/ /(BA *roup connections &if an-, 9es/ No 5hether name of Promoters/ Directors/ Compan-/ *roup concerns figures in 0BI Defauters list/ )C*C Caution +ist/ CICs/ Suit filed list Date of last 0e/ie7/ 0ene7al: C0A )C0A );isting: 0ating: 9es/ No

thers,

Proposed: @alid upto:

=< Prese"( Proposal& a) Proposal: For sanction / appro/al / confirmation : a, 8,

49

i, Sanction ii, Appro/al

c, a, 8, c, iii, a, Confirmation 8, c,

1his proposal falls 7ithin the po7ers of GGGGGG..as &i, FB/NFB/1otal inde8tedness is 0s. &Corporate / Non Corporate, &ii, In/ol/es polic- le/el de/iations: If -es= Indicate polic- le/el de/iations &onl- maBor de/iations,: &iii, HHHHHHHHHHHHHHHHH is a director in HHHHHHHHHHHHHHHH Ban4. C< Cre#i( li1i(s .Exis(i", a"# propose#)& )MIS1IN* +I(I1S SBI 3 C NS FB G.. G.. 1otal FB5C
1erm +oans/ )CBs / FC+s

P0 P S)D SBI 3 C NS

C6AN*) SBI C NS

1 1A+ FB +Cs B*s DP*s 1 1A+ NFB FB>NFB

J< I"#eb(e#"ess ) Exposure * Capi(al C+ar,e& Exposure Compan*roup );isting Proposed );isting Proposed
Fund Based Non Fund Based 1otal Inde8tedness in/estments +easing 1otal );posure Ban42s Share>> &3, Ban42s Share in 1+>> &3, 50

Proposed );posure Credit 0is4 Con/ersion 5eight factor

Capi(al c+ar,e for To(al exposure &

( * ) In case of review date up to which reviewed to be mentioned (++) In case of Consortium/ Multiple Bankin / !"ndication arran ement indicate #uantum and $a e

@< Ba"8i", Arra",e1e"( a"# S+ari", Pa((er"& Financial Arrangement: Sole Ban4ing/Consortium/ (ultiple Ban4ing -ea# Ba"8& 1+ FB5C NFB 1otal SBI Ass.B4s. SBI *roup ther Ban4s 1otal, 1op fi/e Ban4s in terms of their );posure Ban4 A Ban4 B Ban4 C 1otal A< Perfor1a"ce a"# 0i"a"cial I"#ica(ors As on #!/A# Actuals Actuals &)stim., Net Sales &);ports, PB1 PB1/ N Sales PAT Cash Accruals PBDI1 PUC 1N5 AdBusted 1N5 1 +/1N5 1 +/ AdBusted 1N5 Current 0atio N5C DSC0 0 ) &3, L< S5"opsis of Bala"ce S+ee( &
-IABI-ITIES CURRE$T -IABI-ITIES S+or( Ter1 Ba"8 0i"a"ce .A)
51

3 Share

)stimates &Current 9ear,

ProBections &Ne;t 9ear,

Pre'ious 5ear

-as( 5ear

!(+er Curre"( -iabili(ies . B) . To(al of i? ii? iii * i' ) i. Sundr- Creditors ii.Ad/ance Pa-ments recei/ed iii. 1+ inst. 0epa-a8le in !" months & incl FCCB, i/. thers T!TA- CURRE$T -IABI-ITIES .C) .A/B) /. 1erm +oans : SBI /i. 1erm +oans : thers /ii. De8entures= 0edeema8le Pref. Shares &O !" -ears,= FCCB etc /iii. Unsecured +oans i;. ther 1erm +ia8ilities T!TA- TERM -IABI-ITIES . ) . To(al of ' (o ix ) T!TA- !UTSI E -IABI-ITIES .E) . T!- ; C/ ) ;. PUC ;i. 0eser/es ' Surplus & ther than re/aluation reser/es , ;ii Share Application (one;iii. D1+ $e( >or(+ . $> ) .0) To(al of x? xi? xii a"# xiii T!TA- -IABI-ITIES .%) .E / 0 )
ASSETS CURRE$T ASSETS i, Cash ' Ban4 Balances ii, +C/B* (argins ' liLuid in/estments iii, 0ecei/a8les& O D (onths, i/, In/estments & ther than long term, /, 1otal in/entor/i, i, ther current Assets: Dues from Associates /Su8sidiaries ii, ther Curent Assets: thers T!TA- CURRE$T ASSETS .A) Pre/ious -ear +ast -ear

. To(al of i? ii? iii * i' )

0IXE ASSETS *ross Bloc4 +ess Cum Depreciation $e( Bloc8 &e;cluding re/aluation reser/es, .B) In/estment in Associates= Su8sidiaries= sister concerns etc ther in/estments 0ecei/a8les N D months thers D1A $o" Curre"( Asse(s .C) To(al Ta",ible Asse(s A/B/C ; . ) I"(a",ible Asse(s? i"clu#i", TA .E)

52

To(al Asse(s . /E)

Comments onl- on ad/erse mo/ements in the a8o/e: &Not to e;ceed %:D lines, M< Co"soli#a(e# a(a i) 4e5 0i"a"cial I"#ica(ors7 Pre'ious Year -as( 5ear Net Sales PB1 PA1 Cash Accruals PUC 1N5 1 +/1N5 1 +/AdB 1N5 * 6or borrowers with annual turnover of +s 811 crores and above& consolidated data for past two "ears to be provided in full& on the lines of item ; = 2 instead of E i) and ii) Co"soli#a(e# Cas+ 0low Co"soli#a(e# Cas+ 0low .Ac(i'i(5 wise) Pre'ious Year a. Net cash from perations 8. Net cash from In/estments c. Net cash from financing d. Net increase in cash/ cash eLui/alent O< :< a) Cre#i( Ra(i", & Current Pre/ious ii)

-as( Year

C0A 8ased on 8alance Sheet as on @alidated on Borro7er rating Facilit- rating CurrentPre/ious Facilities Current C0A : 0ating/ Score Financial Score/ (inimum Score Brief reasons for deterioration/impro/emen t in C0A O<: b) Ex(er"al Ra(i", 0ating 8tained: &Pre/ious 0ating, 0ating /alid upto:
53

Pre/ious

0ating Agenc- : Date of 0ating : 0ating 0ationale in

8rief:

O<:< c) Prici",& I1)(

);isting 0ate +in4 to )ffecti/e Base 0ate 0ate

Card rate +in4 to )ffecti/e Base 0ate 0ate

Proposed rate +in4 to )ffecti/e Base 0ate 0ate

Int. on 5C Int. on 1+ !(+er I"co1e I1)( Processing fee Commit charges Upfront fee +C B* O<:

);isting 0ate

Card rate

Proposed rate

#) Value of (+e Accou"(& SBI From )stimates & last -ear, 5C Int.

Actuals &last -ear,

)stimates &current -ear,

Details of cross selling to 8e furnished in Anne;ure : !.

:E< e(ails of Ter1 -oa"s .all Ter1 -oa"s wi(+ all Ba"8s)0Is (o be 1e"(io"e#)&

54

Name of FI/Ban 4

1+

+imi t

utstandings Irregularit-= as on date if an-.<

Date of 0ate of FAC0 interest sanctio int. n reset

A@* DSC0 )st. as Actual per the sanctio n

< Pl. offer comments= gi/ing compan-2s action plans for regulariQation of the account / pa-ment of o/erdue installments/ interest 7ith a definite time frame. i, No of instalments due: ii, No of instalments paid: iii, No of Installments in arrears: i/, Amount of interest in arrears: /, Comment on the compan-2s action plan for regulariQing the account. /i, Cross Defaults: If an-= please specif-:

::< Securi(5 Co'era,e & &Pl< fur"is+ su11ar5 posi(io" +ereF 0ull #e(ails (o be fur"is+e# i" A""exure2=) );isting Proposed @alue &0s. In cr., @alue&0s. In cr., 1otal /alue of securit&incl. residual /alue, SBI Share &/alue, 3age 1otal );posure &SBI, Securit- Co/erage . including e;cluding including e;cluding SBI: residual /alue residual /alue residual /alue residual /alue &3, &3, &3, &3, FAC0 &3, 9us(ifica(io" for c+a",e? if a"5? fro1 (+e exis(i", posi(io"&

:=<

Salie"( 0ea(ures a"# 9us(ifica(io" for (+e Proposal &

55

:C< $o"2co1plia"ces? if a"5 & nl- non compliances / irregularities= if an- to 8e indicated along 7ith a 8rief Bustification,: S.No. Non:compliance 7ith regard to ! +oan Polic- *uidelines " )arlier prescriptions of Sanctioning authorit# 0(D );posure norms $ 0BI Defaulters / 5illful Defaulters / CIBI+ +ist of Defaulters / )C*C % 1a4e:o/er norms D Inspection / Audit irregularities E Scheme:specific de/iations F )n/ironmental clearances V thers= if anNature of non: compliance Comments

:J< Co11e"( o" (+e le'el of S(a(u(or5 ues a"# co"(i",e"( liabili(ies a"# (+eir i1pac( o" (+e fi"a"cial posi(io" of (+e borrowi", co"cer" : Dues Statutor- dues Contingent lia8ilities +e/el &0s Impact on financial Negati/e score in C0A= if in crores, position an-

:@< Reco11e"#e# for sa"c(io" ) appro'al ) co"fir1a(io"<

56

It is certified that: i, 1he undersigned is holdiing and has ta4en into consideration the certificates from Assessing fficer/ Appraising fficer/ Addl Appraising fficer ii, C0A rating has 8een /alidated 8- the Special Committee for independent /alidation iii, 1he proposal complies 7ith 0BI guidelines i/, All the laid do7n S-stems and Procedures= as applica8le to the proposal has 8een complied 7ith 8- me/ us= to the 8est of m- 4no7ledge /, 1he undersigned is satisfied 7ith the o/erall /ia8ilit- of the proposal and the recommendations made Appraised 8Signature Name Designation Place : Date: Credit Anal-st 1eam +eader Deput- *eneral (anager Assessed 8Additional Assessment 8-

A$$EXURE 2 :
57

Future Plans ' Business potential&o/er a #:% -ear horiQon, including Cross selling / 0etail (ar4eting 8ased on Co / *roup2s future plans: &to 8e Luantified,. I(e1 Prese"( Posi(io" P >+e(+er Tie# UpR .Yes ) $o) 7 Busi"ess es(i1a(e#

a, Corporate Salar- Pac4age 8, P Segment +oans &Nos, &a, 6ousing &8, Auto +oans &c, Personal +oans c, SBI Credit Card &No., d, Point of Sale 1erminals e, SBI Corporate Card &No., f, SBI +ife Business : &Premium , a, Corporate Business 8, 0etail Business g) SBI General Insurance (Premium Rs. In crores) h, SBI (utual Funds &*ross in/estment . 0s. crores, i, SBI Capital (ar4ets +td ProBect Ad/isor- ' +oan S-ndication ('A Pri/ate )Luit IP /FP thers &if an-, &Potential 1ic4et siQe ' 7hen e;pected ma- 8e furnished against each applica8le item, B, SBI @ish7a-atra Foreign 1ra/el 9atra Cards &In USD, 4, @endor/ Dealer Finance l, An- ther &Please specif-, 7 If "o? please a#'ise effor(s 1a#e a"# ou(co1e (+ereof

A$$EXURE2 = SECURITY &

58

Pri1ar5 Facilit- Details of Securit-<

7ned 8-

1-pe of Charge

@alue

Date of Basis of /aluation /aluation

<1o include detail li4e 4hata no etc= flat no= house no= area/e;tent of land= address. << In case of Consortium/ (BA Accounts our share to 8e pro/ided. Details of 1otal Securit- for the facilit- and for the Ban4ing S-stem ma- 8e sho7n in 8rac4ets

Colla(eral Facilit- Details of Securit-<

7ned 8-

1-pe of Charge

@alue

Date of Basis of /aluation /aluation

<1o include detail li4e 4hata no etc= flat no= house no= area/e;tent of land= address. In case of Agri land time line for con/ersion. << In case of Consortium/ (BA Accounts our share to 8e pro/ided. Details of 1otal Securit- for the facilit- and for the Ban4ing S-stem ma- 8e sho7n in 8rac4ets

%uara"(ees& FacilitName

Net (eans

As on

Compiled on

Securi(5 Co'era,e& 1otal /alue of securit&incl. residual /alue, SBI Share 1otal );posure &SBI, Securit- Co/erage . SBI:

);isting @alue &0s. In cr., 3 including residual /alue &3, e;cluding residual /alue &3,

Proposed @alue &0s. In cr., 3 including residual /alue &3, e;cluding residual /alue &3,

FAC0 &3, De/iation from e;isting securit- &if an-, to 8e mentioned in the proposal.

A$$EXURE2 VCW
%UI A$CE $!TE !$ PREPARATI!$ !0 S20!RMAT &Please a/oid long histor- or o8/ious information,
59

Sl< "o :

I(e1)Bea#i", );ecuti/e Summar-

I(e1 >ri(e2up (o co'er (+e followi",N All the proposals su8mitted to 5BCC II and a8o/e to ha/e a snapshot of the proposal in );ecuti/e Summar-. S-nopsis of the proposal needs to 8e pro/ided in the format. );planations need not 8e pro/ided. Custifications to pro/ide 8rief particulars a8out the Unit= highlights of the present proposal= its reLuirement and Bustifications Sanction/ 0ene7al/ 0e/ie7/ Appro/al/ Confirmation items of the agenda of the proposal should 8e as per the standard te;ts suggested /ide CPP/BS*/"%E dated !"th cto8er= "AA!. Credit +imits are to 8e captured facilit-:7ise In case of (BA/Consortium arrangements= details of top % participating Ban4s and their e;posures and proposed changes= if an-= in the sharing pattern shall 8e 8rought out in the proposal 7ith comments. %e"eral Comments on performance should capture/ assess in essence the compan-2s 8usiness model Performance should 8e 7ith specific focus on acti/it- le/els= PBDI1= profits and profita8ilitratios. Ue- elements of the compan-2s 8usiness model that differentiates it from its peers and contri8ute to its success are to 8e commented upon. 1o underta4e meaningful anal-sis of the performance of the unit= last t7o -ears2 audited data along 7ith estimates made at the time of last sanction/rene7al need to 8e furnished Sales &Pls do not repeat 7hat is gi/en in the ta8le,. Discuss the follo7ing . 6as the gro7th in the past follo7ed the proBections made for the period. 6as it e;ceeded industr- trends or other7ise . reasons for the same. Are the estimates made of the current -ear feasi8le and if so 7h-Z rder 8oo4 position. Strategies for achiei/ing the estimated/ proBected le/el of sales. Segmental anal-sis of sales. Customer7ise anal-sis of sales . if rele/ant &order 8oo4 position ma- 8e gi/en in an anne;ure if reLuired, Profi(abili(5 n similar lines as a8o/e

Present Proposal Section:A!

8,

c, d,

Performance Details Section A"

a, ' 8,

60

-iIui#i(5 1o include comment on the current ratio= de8tors ageing anal-sis. Ad/erse features pointed out in the Stoc4 and 0ecei/a8les Audit. If an-= and its impact on liLuidit- to 8e commented upon. c, ' e, 0emar4s on 1o'e1e"( of T$> 7ith special focus on mo/ement of )Luit-= Share Application (one-= Share Premium and present status thereof to 8e gi/en. If Share Application (one- has 8een treated as part of N5= the date of con/ersion of the amount in to PUC to 8e mentioned. If con/ersion is -et to ta4e place= stipulation for con/ersion to 8e made for release of ne7 limits. A cop- of 8oard resolution along 7ith a cop- of Form . " filed 7ith 0 C to 8e o8tained. Changes in AdB. 1N5 to 8e commented upon= in the conte;t of last sanction stipulations and the compan-2s current financials. An- changes in the capital structure= disproportionate mo/ements in other items to 8e commented upon along 7ith their impact on o/erall health of the companContingent o8ligations underta4en 8- the Unit on 8ehalf of SP@s/ *roup entities needs to 8e commented upon & especiall- in case of 6igh /alue (C* / CA*/PF SBU, Accounts Comment on the a8ilit- of the compan- to raise short/ long term resources and meet its short term liLuidit- needs Plans for infusion of funds= in/estments in fi;ed assets &if these ha/e not 8een co/ered else7here, Comments on di/ersion of funds= if anS5"opsis of (+e bala"ce s+ee( in line 7ith C(A data All lia8ilities in the form of Instalments/ 8ligations= including FCCB/ )CB= falling due in the ne;t !" months and hence needs to 8e ho8noured in the ensuing -ear= should 8e treated as an item of current lia8ilit- in the C(A data. In other 7ords the Corporates2 a8ilit- to meet the lia8ilit- from its internal cash generation and cash comfort a/aila8le needs to 8e criticalle;amined and suita8le additional stipulations are to 8e incorporated in the proposal= 7here/er 7arranted.

d,

61

f,

h,

0is4 Assessment Section: A #

a, ' 8,

d,

Ac(i'i(52wise cas+ flow Comment on re/enue generating capacit- of the unit from the operating acti/it- 8eing financed= 5hether the returns on the compan-2s in/estments are on anticipated lines or not needs to 8e e;aminedP 1o assess the impact of in/estment acti/ities on the compan-. In cases 7here in/estments are proposed 8- the compan-= the compan-2s cash flo7 statement to 8e put to strict scrutin- to anal-se demands on the cash flo7 and a/aila8ilit- of free cash flo7 for in/estment. 1o assess the cash generating capacities/ profita8ilit- of /arious acti/ities and their impact on the o/erall performance of the compan-. Compare the cash mo/ement 7ith the transactions in the CC Account &If more accounts are in/ol/ed= o8ser/ations from all the accounts,= chec4 for routing of all the transactions= transactions are arising from the main acti/it- of the unit= if the mo/ement is on account of in/estments etc.= 7hether the flo7 is through the perati/e Unit. &Purpose is to ensure/ comment on the /alidit- of figures in 8alance sheet 7ith the actual as recorded in 8an4 statements Brief o8ser/ations on 7hether operating acti/ities are the principal re/enue generating acti/ities= adeLuac- of operating cash flo7 ratio &i.e. net operating cash flo7/ current lia8ilities,P e;tent of cash flo7 from in/esting acti/ities and financing acti/ities 8e gi/en I"(er fir1 co1pariso" is an important tool to gauge competiti/e ad/antage of the 8orro7ing unit /is:a:/is its peers in the industr-. 1herefore= current data needs to 8e sourced from authentic sources li4e C0ISINFAC= C(I)= C0ISI+ etc.= relating to rele/ant siQe and acti/itof the units. Source of the information needs to 8e mentioned. CRA * ECRA 1he follo7ing points need to 8e criticall- e;amined for ascertaining: an- deterioration or maBor changes in C0A and )C0 ratings /is .a /is pre/ious ratings and /ariance in the mo/ement of ratings . C0A and )C0 Co"#uc( of (+e Accou"( Comment 8riefl- on irregularities in the accounts in the past !" months . no. of times irregular ' time ta4en for adBustment of pea4 irregularit62

e, ' f,

Pricing Section A %

Re'iew of T-s to o Comment on reasons for o/erdues= if an-= and o DSC0 comfort o Cross defaults &defaults 7ith other mem8er 8an4s /FIs, to 8e meaningfull- commented upon. Securit- co/erage: Comment on dilution of securit- or an- other 7ea4ness o8ser/ed. In case of deri/ati/e transactions &including for7ard contracts,= the e;posures are to 8e 8ac4ed 8- appropriate underl-ing assets. &In other 7ords= deri/ati/e transactions arising out of 5or4ing Capital needs= should 8e co/ered 8- securities applica8le for regular 7or4ing capital loans, In case of Consortium/ (ultiple Ban4ing arrangements= 7here there is resistance from Corporate/ ther mem8er Ban4s= the transactions are to 8e ta4en 7ith full 4no7ledge that our e;posures are Clean in nature= and 8e said so in the appraisal also= to 8ring it to the notice of the Sanctioning Authorit-. 1he attendant ris4 7ith the clean nature of ad/ances needs to 8e ta4en note of and to 8e Budiciousle;ercised. g, Comment on Action initiated to address the war"i", si,"als/ irre,ulari(ies 8rought out in /arious audit reports flagged on the 8orro7er account in an- of the audit reports and the impact on the Lualit- of asset and anmitigation suggested should form part of W ther Critical Co/enants2 in Section C. An- other critical mitigants related to monitoring of the account neds to 8e spelt out clearlh, Apart from comments on the compliance status of /arious financial and other Co/enants= comments in respect of changes in Post Sanction modifications &if an-,= and appro/ing authorit- thereagainst needs to 8e pro/ided. &1hese include changes detailed in Circular No. CPP/UUU/CI0/D% dt. AE.!!."AAD and modifications in pricing, i, ' 0is4s and mitigation factors ta8le should B, capture the ris4 profile and the mitigants to address the ris4s. a, 0eturn on Capital Charged and 7hether it is in alignmemt 7ith the ris4 percei/ed needs to commented upon
63

c,

+oan Polic- . a, De/iations ' ' 8, Compliances Section A%

c,

S-noptic Appraisal of (emorandum for 1erm +oan Section AD and B !

An- increase or decrease in pricing compared to the pre/ious sanction to 8e discussed and properl- Bustified in comparison 7ith the pricing offered 8- other 8an4s and in terms of generation of other income +atest list of Defaulters/ 5ilful Defaulters/ Suit filed/ Non Suit filed accounts= circulated 80BI/CIBI+/ ther CICs/ )C*C Caution list has to 8e referred on the 8orro7ing unit as 7ell as Directors and *uarantors For all listed companies= a confirmation to the effect that S)BI 7e8site/ rders and 0uling page has 8een /isited and ta4en note of. &AdBudicatrion order and 8anned list under Section !!&$,8 and !!B of S)BI, Appro/als for de/iation from +oan Policguideines 7here/er 7arranted are to 8e o8tained from appropriate Authorit- and the same has to 8e mentioned in the proposal as 7ell Compliance 7ith the laid do7n ta4eo/er norms= has to 8e ensured and appro/als for de/iation= if an-= to 8e recorded in the proposal. Purpose of Ter1 -oa" : to 8e specified: );pansion / (odernisation / Di/ersification / acLuisition / Shoring up of N5C &Corporate +oan, / 0'D e;penditure / AcLuisition of (achiner- / Construction of Building= etc.= follo7ed 8- 8rief details thereof. Sources of Pro1o(ers fu"#s to 8e specified= e.g details of assets= in/estments to 8e liLuidated= in case of In/estments from Associates : their Cash Accruals to 8e e;amined o/er the proBect implementation period 7ith reference to past performance and de8t ser/icing/ CAP)M and other reLuirements. Comments on Mea"s of 0i"a"ce to also include promoter *roup2s eLuit- commitments during proBect implementation period in the conte;t of *roup2s proBected free cash flo7s ' le/erage o/er the periodP I"#ica(i'e lis( of Appro'als) Cleara"ces : +and/ Site a/aila8ilit-= )n/ironmental and C0[ clearance= N C from PCB= Stac4 height clearance= Forest clearance= Po7er connection= 5ater connection= Chief Controller of );plosi/es from Petroleum and );plosi/es Safet- rganisation= N C form Defence= 0ail 0oute Clearance= Customs landing Permit= Permission from the State *o/ernment for e;traction of 8oulders from Luarr-= +icense from
64

9us(ifica(io" for (+e proposal& Sec(io"2AL Profile of (+e e, Borrower& Sec(io"2AM

Inspector of Factories or other competent Authorit- for setting up Batching Plant= Permission from State *o/ernment for cutting of trees= An- other permission/ clearances reLuired under applica8le la7s for the specific proposal Comments on 1erm +oans to include 0is4 assessment in relation to: Pre construction contract/ appro/al/ resettlement ris4s Financing 0is4s= tie up Construction ris4 and perational 0is4 A/erage tenor of the loan needs to 8e pro/ided >ei,+(e# A'era,e Te"or of (+e loa" .>A-)& 5A+ is a useful measure in credit ris4 anal-sis= 8earing in mind that the main credit ris4 of a loan is the ris4 of loss of principal. 1he primar- reason for this is that= all else eLual= a loan 7ith a longer tenure has greater ris4 than its shorter:dated counterpart< Since Bustification for a fe7 Agenda items has alread8een pro/ided in Sections %= D= B:! and B:"= the same need not 8e repeated in this section. Please ensure that there is no duplicit- in this section. At times single 8orro7er ma- ha/e more than one CIF No&s,. All such CIF No&s, need to 8e mentioned. +oss haircut suffered 8- the Ban4 on account of Compromise/ 5riteoff/ references to CD0= including 0ecompense clause= in respect of e;posures on Companies floated 8- *roups/ Asssociates/ 0elated parties/ Directors/ *uarantors to 8e commented upon Bac4ground of the Compan- shall include 8rief information on the follo7ing aspects: o Business of the compan-. o Uemilestones achie/ed since incorporation o Business Segments and Product Profile o Capacities and Production facilities o 1echnical Colla8orations o (ar4eting o *roup companies Bac4ground of the Promoters and (anagement shall include 8rief information on the follo7ing aspects: o Promoters o @ision and strateg- of the management.
65

O<

:E

Sec(io" B= P Assess1e"( of >C

o (anagerial e;perience to run the 8usiness / 4e- managers. o (anagement st-le: Familrun / professionall- managed/ mi;. o (anagement achie/ements and s4ills &proBect management s4ills/ mar4et share/ shareholder /alue/ strong mar4eting and production s4ills/operational efficiencies / decision ma4ing s4ills/ challenges faced and their a8ilit- to o/ercome them etc.,. o Ue- man ris4 and succession plan. Corporate *o/ernance issues such as : o In the proposals there should 8e a separate paragraph on corporate go/ernance practises in the 8orro7er compan-. o 1he promoters ha/e e/er defaulted in the past either in this compan- or in an- of the group companies and the reasons for the same o their mar4et reputation o non:compliance of anregulatorguidelines/compliant 7ith clause $V of the listing norms etc. o Details on the constitution of the compan-Rs 8oard 7ith particular reference to the num8er of independent directors &to comment on the independent nature of the 8oard or other7ise,= num8er of 8oard meetings held and 7hether the compan7as in/ol/ed in an- unsa/or- incidents /is: \:/is the go/ernment/regulators/in/estors in the immediate past &During the period under re/ie7,. I"#us(r5 !u(loo8: A 8rief discussion co/ering o/erall future outloo4 for the industr- ta4ing in factors such as Demand and Suppl Competition *lo8al scenario and *o/ernment initiati/es and 0egulator- issues. &length- 7rite up should 8e a/oided, on the follo7ing aspects 1his is to 8e concluded 7ith an o/erall future outloo4 for the industr- and the unit. 1he purpose of 5C ma- 8e incorporated . for eg. )nhancement o/a increase in sales )nhancement o/a increase in capacit- addition )nhancement o/a change in operating c-cle. )nhancement o/a change in the product mi;.
66

 :: Ter1s a"# co"#i(io"s Sec(io" C

)nhancement o/a a8normal / unprecedented increase in prices of core ra7 materials / cost of production. )PC Contract . depending on the contract period and terms of contract= need for indi/idual B*s to 8e assessed. All columns / Paragraphs to 8e specificallcommented= else= to 8e mentioned as Not applica8le. @ague 1'C li4e ]As per e;tant guidelines^ to 8e a/oided. For eg. Inspection= insurance= etc. Full details to 8e pro/ided= including /aluation details and 8asis thereagainst needs to 8e stated. Details of o7nership of land= i.e.= o7ned / leased need to 8e specificallincorporated. In respect of Apartments / Flats= the /alue of insurance to 8e o8tained ma- 8e specificallmentioned. 1his is to a/oid am8iguit- on /alue of un:di/ided share of land= to 8e rec4oned or not 7hich is de8ata8le. 1ime granted for securit- creation= de/iations from e;isting securit- &if an-, to 8e detailed (odifications in Standard Co/enants= if reLuired needs to 8e detailed along7ith reasoning

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