PUNJAB NATIONAL BANK

BO: Nehru Place, NEW DELHI

Phone: 26442961,26222349, 26467740; FAX: 26485318
E-mail <bo1529@pnb.co.in>

Credit Appraisal Format for limits upto Rs.2 crore (for MSME upto Rs.5 crore)
SANCTIONING AUTHORITY
CHIEF MANAGER
The loan is processed under PMMY. The proposal falls under the powers of Chief Manager, Branch
Office due to total exposure 8.00 Lacs.

PNB CPTS No 1529002015000189 ON19/09/2015

Date of proposal
18/09/2015
Whether fresh/renewal/
Fresh Proposal
enhancement/
In-principle
Asset Classification as on
NA
Credit Risk Rating based on
Rating Date of
Score ABS
Reasons for
ABS 31.03.2015
Rating
Degradation
Present A2
18.09.15 71.00
31.03.15 NA
Previous NA
NA
Credit Risk Score under PNB SME Score is 71 which is equivalent
to A2 Marginal Risk as per L&A circular 48/2014.
Rating Valid up to: 17.09.2016
NA
Last PMS Score, if applicable
Customer ID No.
CGU015137 (Current A/c No.: 1529002100471077)
Activity Code
Whether sensitive sector
Real estate/Capital market
alongwith
applicable
risk
weight
Whether priority/non priority
sector as per LA Cir 76/2015
guidelines dated 07-09-2015
Sub-sector may also be
mentioned.
Date of last sanction &
Sanctioning Authority

No
100%
SME

NA
GIST OF THE PROPOSAL

A. Fresh applicationa Fund Based Working Capital Limit of Rs. 8.00 Lac @ ROI of Base
Rate + 2.00% i.e 12.00% with applicable processing fee, as under:@ Rs.225/- per Lac or part thereof

< M/s Shriansh > 1

PUNJAB NATIONAL BANK

BO: Nehru Place, NEW DELHI
Phone: 26442961,26222349, 26467740; FAX: 26485318
E-mail <bo1529@pnb.co.in>

. (i) For Fresh Term Loan- NA

Purpose
Cost of Project
Total Debt
Promoters contribution
Proposed TL (our share)
DER
Repayment Period
Door to door tenor
B. Approval of ROI / Service Charges as under:-

1.a)
b)
c)
d)
e)
f)
2.
3.a)

b)

c)
d)
e)

Particulars

Nature of Facility

Rate of Interest
Processing Fee
Documentation
Charges

Cash Credit
Fund Based
Fund Based

Name of the Borrower and

Constitution

Existing

Proposed

Applicable
Rate
NA
BR + 2.00% BR + 2.00%
@ Rs.225/- per Lac or part thereof
Rs 400/- per lac (LA Cir 87/dtd 12/07/2014)

M/S Shriansh, (Proprietorship),

Cin no 0001187230715031547927
TIN NO :- 07820229523
175 Chirag Delhi New Delhi 110017
175 Chirag Delhi New Delhi110017
23.07.2001

Address of Regd. Office

Works/Factory
Date of incorporation/
establishment
Dealing with PNB since

Sep 2015

Business
Activity
(Product)/
Installed Capacity
Branch Office/CO
Directors/Partners/Proprietors
(Name, Address, Mobile No., email
ID of main Directors/Key persons)

Manufacturing of wedding Garments

Whether any of them, in RBIs

Caution advices/ECGC Caution
list/Wilful defaulters' list. If yes,
the reasons for considering the
proposal.
If any of them, related to
Directors/ Sr. Officers of PNB
Management Change since last
sanction, if any
Whether Memorandum of
Association permits the Activity &
Powers for borrowings

No

175 Chirag Delhi New Delhi 110017

Proprietor
1. Mrs. Deepika Kaush W/o Mr Manish Kaush
Address: 175 Chirag Delhi
Chattarpur South Delhi New Delhi 110017
Mobile No.: 9891313123
Telephone No: 011-32445905
E-Mail Id: shriansh175@gmail.com
PAN No.: AAKPW0663P
AADHAAR:640472831877
Date of Birth: 14-08-1976

No
No
NA

< M/s Shriansh > 2

PUNJAB NATIONAL BANK

BO: Nehru Place, NEW DELHI
Phone: 26442961,26222349, 26467740; FAX: 26485318
E-mail <bo1529@pnb.co.in>

f)

Shareholding Pattern

g)

Whether the profile of the

borrower, its Director/ Partners/
Promoters and its Group Cos./
Associate Firms has been verified
through CIBIL database/other
credit information bureaus

As at 31.03.2015
1. Deepika Kaush (100%)
DateOf CIR
Name of
CIC
18.09.2015
Equifax
18.09.2015

Adverse features,
if any observed
Nil

CIBIL

Nil

If No please give reasons.

If Yes please give details.
4. Facilities Recommended :
Nature
NATURE
Cash Credit
TOTAL COMMITMENT
5

(Rs.in lac)

Existing

Proposed

Nil
Nil

8.00 Lacs
8.00 Lacs

Details of limits from other Banks/FIs/Consortium/Multiple Banking - Nil

6.A Details of Group Companies/Allied/Associate firms and the facilities sanctioned to them
NA
6.B Comments on conduct of these accounts with our bank/other banks - NA
6.C

Key Financial Figures (Audited) of Group/Allied/Associate concerns (for the last 3 years)
NA
(Rs. in lac)

Paid Up Capital
Reserves & Surplus
Tangible Networth
Block Assets
Secured/Unsecured Loans
Sales
Profit before Tax
Profit After Tax
Comments on Financial Indicators - NA
7.A(i) Financial Position of the borrower

Gross Sales
% Growth
Other Income
Operating Profit
Net Profit
Cash Profit
Block Assets
Depreciation
Net Assets

31.3.13
Audited
62.52
0.00
4.79
4.79
5.19
3.99
0.40
3.59

31.3.14
Audited
41.00
-37.42%
0.00
5.12
5.12
5.48
3.59
0.36
3.23

31.03.15
Audited
48.28
17.75%
0.00
5.9
5.90
6.22
3.48
0.32
3.16

(Rs. in Lac)
31.03.16
Projected
80.00
65.70%
0.00
5.43
5.43
6.46
9.31
1.03
8.28

< M/s Shriansh > 3

PUNJAB NATIONAL BANK

BO: Nehru Place, NEW DELHI
Phone: 26442961,26222349, 26467740; FAX: 26485318
E-mail <bo1529@pnb.co.in>

Total Borrowings
Capital
Tangible Net Worth
Net Working Capital
Current Ratio
Debt Equity Ratio
Operating
Profit/Sales
Long Term Sources
Long Term Uses
Surplus / Deficit
Short Term Sources
Short Term Uses
Surplus / Deficit
7.A(ii)

0
20.66
20.66
11.07
22.59
0.08

0
23.65
23.65
14.43
54.44
0..12

0.00
27.18
27.18
14.27
19.83
0.12

8.00
19.71
19.71
11.43
2.34
0.40
0.06

20.66
9.59
11.07
0.49
11.56
-11.07

23.65
9.23
14.43
0.27
14.7
-14.43

27.18
12.91
14.27
0.73
15.00
-14.27

19.71
8.28
11.43
8.5
19.93
-11.43

Comments on Financial Indicators

Paid up capital/TNW
The net-worth has increased from Rs23.65 lacs as on 31.03.2014 to Rs 27.18 as on 31.03.2015 due
to retention of profit in business. The net worth of the proprietor will decrease from Rs 27.18 Lacs as
on 31.03.15 to Rs19.71 Lacs as on 31.03.2016 as projected by borrower.
Reconciliation of TNW
TNW as on close of FY ended 31.3.2014
Add: PAT
Less: Drawings
TNW as on close of FY ended 31.3.2015

(Rs. in Lac)
23.65 Lacs
5.90Lacs
2.37 Lacs
27.18 Lacs

Sales
The sales of the firm includes sales and job work for reputed clients, where a part of material is
supplied by the clients. The sales has increased from Rs 41.00 Lacs in FY2013-14 to Rs 48.28 Lacs
in FY 2014-15. The sales is expected to increase to Rs80.00 Lacs in FY 2015-16.The total sales
achieved till 30.06.15 is Rs 8.28 Lacs, out of this Rs 3.58 Lacs is for direct sales and Rs 4.7 Lacs is
Job work. The party has said that sales will pick up in the festival season from Sep2015 onwards and
the firm is expected to achieve its target sales of 80.00Lacs as on 31.03.2016.
Other income: No other income is reported by the firm.
Profitability
The profit of the firm has increased despite fluctuation in sales. This is due to the margin variation
from clients. The margin with bulk orders are less whereas it is high with retail sales. The firm is
planning to establish its own retail outlet in future in order to increase margin. It will also help the firm
to stabilize its profit margins and reduce dependence on whole sale buyers. The profit for FY 2015-16
is not expected to rise in the same ratio as sales due to expenses on brand development, increased
wages for more sought after artisans and new method of charging depreciation. As per the party, the
firm is expected to make good profit in future.
Current ratio/Debt Equity Ratio
The balance sheet till 31.03.2015 contained value of inventory which was not related to business.
Also, there were no borrowings. This made the current ratio to increase abnormally high. The
projected balance sheet of FY 2015-16 includes bank borrowing and hence the current ratio came
down to 2.43 which is acceptable being marginally higher than banks standard at 1.33.
< M/s Shriansh > 4

PUNJAB NATIONAL BANK

BO: Nehru Place, NEW DELHI
Phone: 26442961,26222349, 26467740; FAX: 26485318
E-mail <bo1529@pnb.co.in>

7.B

Details of investment in Shares, Debentures, Units or diversion of funds outside the

business etc. - Nil

7.C

Details of Liabilities not accounted for/Contingent liabilities - Nil

7.D
7.E

Status/details of adverse comments by Auditors of the borrowing unit - NA

Position of assessment of income tax/sales tax/wealth tax of the borrowing concern/
partners/proprietorThe ITR for AY 2015-16 has been filed by the firm and the sales tax return for quarter ended
30-06-2015 has also been submitted.
Overall likely impact of (7.B to 7.E) on the financial position of the borrowing unit

7.F

There is no adverse impact.

8.A

Primary Security.
i)

8.B

Working capital facility: Hypothecation of all kinds of Stock of raw material, work in progress
to be used in the Manufacturing of Readymade Garments and Finished Goods & Book
Debts.
Guarantee/Guarantors
Name
Guarantor
Mrs
Kaush

of NMs
Previo
us
Deepika NA

IPs
Present Previo
us
27.18
Nil

Prese
nt
Nil

Rs in Lacs
CR Date
Previo Present
us
NA
18.09.20
15

Comments on changes, if any:

8.C

Total Commitments by Guarantor(s)

8.D

Collateral Security (Including details of changes in IPs as security from last sanction, if
any)
Not applicable as the loan will be covered under CGTMSE, as per MUDRA guidelines.

9.

Position of Account NA (Fresh Proposal)

10.A

Conduct of the Account NA (Fresh Proposal)

10.B

Review of the Account (Appendix C to be enclosed)

NA (Fresh Proposal)
10.C

Value of the Account NA (Fresh Proposal)

10.D

Summary of irregularities pointed out by Banks Inspectors, Concurrent Auditors, Credit Audit
& Review Division (CA&RD), RBI Inspectors, Statutory Auditors, observations of Stock Audit
Report, Comment on Preventive Monitoring Score Trends, (and status of rectification of these
irregularities)
< M/s Shriansh > 5

PUNJAB NATIONAL BANK

BO: Nehru Place, NEW DELHI
Phone: 26442961,26222349, 26467740; FAX: 26485318
E-mail <bo1529@pnb.co.in>

NA Nil
11.

Brief History (Should also include comments on industry scenario and industry
outlook, management, production and marketing, borrowers' diversification,
expansion, modernisation programme, risk perception including environmental and
social risk alongwith proposed mitigations)

M/S Shriansh is a proprietor firm owened by Mr Depika Kaush since year 2001. The firm is in the
business of making wedding garments. The clints of the firm includes well known stores of Delhi and
Mumbai. Their main clint are M/S Diwan Saheb Fashions Pvt ltd, M/S Millionaire of Mumbai and M/S
Jinaam of Mumbai. The firm is planning to expand its business and open its own store. Mrs Deepika
Kaush is a graduate of NIFT, Delhi. She is well experienced in the business.
12.

Present Proposal

a)

Brief of the proposal

The present proposal is for grant of working Capital of Rs 8.00 Lacs to the firm.
b)
Justification for working capital sanction as per simplified method or traditional method of
lending, as the case may be
(ii)

Assessment of Fund Based Limits as per simplified turnover method

(Rs. in Lac)
2015-16
Accepted Sales (i)
80.00
Working Capital
20.00
Requirement @ 25% of the
Sales (ii)
Stipulated Margin @ 5% of
4.00
the Sales (iii)
Net Working Capital
11.43
Available (iv)
Permissible Bank Finance
8.57
(ii)-(iii) / (ii)-(iv), whichever is
less
Firms Request
8.00

13.

A) Comments on Credit Risk Rating Report (Reasons for downgrade be mentioned)

The internal rating PNB SME score is 71 which indicates risk rating of A2 Marginal

Risk.
b) Rate of Interest applicable as well as proposed:
Rate of Interest as per Bank Guidelines is proposed.
c) Risk perception, if any:
The firm is working in highly competitive market, which limits the ability to pass on the
increase in input cost to customers. However, the proprietor is well experienced in this
line of business and have established good relationship with the customers.
14.

Other Issues
Increase in Fixed Assets
The Firm has proposed to increase the Block Assets during FY 2015-16 by purchase of new
machinery to increase the output.
< M/s Shriansh > 6

PUNJAB NATIONAL BANK

BO: Nehru Place, NEW DELHI
Phone: 26442961,26222349, 26467740; FAX: 26485318
E-mail <bo1529@pnb.co.in>

15.

Summary of merits/justifications for considering the proposal.

16A

The proprietor is well experienced in this line of business.

Deficiencies/Deviations in the proposal observed by the recommending authority-Nil

16.B Recommendations:
Keeping in view the above, we recommend for Fund Based Working Capital Limits of Rs.8.00
Lac with applicable ROI, Processing Fee, Commission and Documentation charges as
follows:
(Rs. in Lac)
Nature of Limit
Existing
Proposed
Cash Credit
Nil
8.00
Total Commitment
Nil
8.00
Detailed Terms and Conditions are as per Appendix I.
Certified that the stipulated terms and conditions have been duly discussed with the borrower.
Manager
Orders of the Sanctioning Authority

Chief Manager
DATE:

< M/s Shriansh > 7

PUNJAB NATIONAL BANK

BO: Nehru Place, NEW DELHI
Phone: 26442961,26222349, 26467740; FAX: 26485318
E-mail <bo1529@pnb.co.in>

APPENDIX I
Detailed Terms and Conditions of Sanction
Account: M/s Shriansh
BO: Nehru Place, New Delhi
FACILITY NO. 1
NATURE OF FACLITY
AMOUNT

Cash Credit Limit

Rs.8.00 Lac

RATE OF INTEREST

BR + 2% i.e 12.00% at monthly rest subject to

change from time to time as per Bank guidelines

Margin

25% on Stock and 40% on Book Debts

Charges

1. Processing Fee- Rs 225.00per Lac plus

Service tax and education Cess @14.42 %
2. Doc Chg: Rs 400.00 Per Lac plus Service
tax @ 14.42%
1. Primery: Hypothecation OF Stock of RM,
WIP, Finished Goods and Receivables AND
Book Debts
2. Secondary: Guaranteed under CGTMSE.
Applicable Fee as per bank guidelines will
be charged for CGTMSE cover

SECURITY

Submission of stock statement:

To be submitted Quarterly by 10th of the each quarter.

Stock Valuation & verification

i)

i)

Stocks to be valued at Cost price or realizable value, whichever is lower.

ii)

Stocks under cash credit will be checked/ verified on Quarterly basis at regular
interval by Banks officials and borrower to facilitate the bank in this regard.Book
debts/receivable up to 90 days will be considered for calculating DP.

Insurance
i)

Borrower shall get the hypothecated stocks ,including stocks in transit insured for
full value covering the risks of fire, thefts ,burglary, SRCC (Strikes, riots, civil,
commotion) earthquake, terrorist risks, floods, riots etc. comprehensively with
Agreed bank clause at borrowers cost.

ii)

All the other assets hypothecated or mortgaged to the bank are to be kept
comprehensively insured with usual bank clause.

TERMS & CONDITIONS:.

1. The overall ceiling of FB Limit for CC limits shall be Rs. 8.00 Lac.
The facility to be guaranteed under CGTMSE
< M/s Shriansh > 8

PUNJAB NATIONAL BANK

BO: Nehru Place, NEW DELHI
Phone: 26442961,26222349, 26467740; FAX: 26485318
E-mail <bo1529@pnb.co.in>

Name of Guarantor
Mrs Deepika Kaush

NMs
Previous
NA

Present
27.18Lacs

IPs
Previous
Nil

Present
Nil

CR Date
Previous
18.09.2015

2. The borrower will deal with us exclusively and shall not open current account with any Bank
without our prior permission and shall route all sale transactions through the accounts.
3. The validity of the sanction shall be 12 months and the company shall arrange submission of
complete papers for renewal of limits within 10 months from the date of sanction. In case of
non submission of requisite information by the borrower within 12 month of the sanction, penal
interest as per Banks guidelines shall be charged.
4. No DP to be allowed against stock older than 6 months, debtors older than 90 days. Netting of
creditors against debtors shall be done as per Bank guidelines.
5. Processing fees, inspection charges and other charges to be recovered as per Bank
guidelines.
6. The party to submit stock statement along with list of sundry debtors & creditors every Quarter
before 10th of next month. The party to also maintain inventory register. The Bank or its
authorized officials or its other representative will have the right to carry our periodical
inspection or examine the books of the accounts at the cost of the party.
7. The bank shall have the right to withdraw/modify all/ any sanction terms and conditions as per
stipulate fresh conditions under intimation to the co.
8. The party to undertake not to divert/utilize banks funds to other sister/associate/group
concerns or for the purposes other than those for which the credit facilities have been
sanctioned.
9. The bank shall charge penal interest under the following circumstances:
a) Irregularities/over drawings in PC/PS accounts
b) Non submission /delayed submission of stock statement after the 10th of the following
month.
c) Non-submission/delayed submission of quarterly review sheet information after 10days
from the close of the concerned quarter.
d) Non-submission/delayed submission of renewal proposal with audited balance sheet as
stipulated above.
e) Default in observance of borrowers covenants/terms & conditions of the sanction.
f) Excess borrowing arising out of shortfall in minimum stipulated NWC as recurred in PBF
computation.
10. In case the company commits default in the repayment of loan/advance or in the payment of
interest thereon or any of the agreed installment of loan on due date, the Bank and /or RBI will
have an unqualified right to disclose or publish the name of the firm and its proprietor as
defaulters in such manner and through such medium as the Bank or RBI in their absolute
discretion may think fit.
11. Stock to be comprehensively insured at borrowers cost with agreed Bank clause. Fixed assets
to also remain comprehensively insured against all risks.
12. Stock to be valued at cost price or realizable value whichever is lower
13. All other terms and conditions as applicable to such advance will be applicable from time to
< M/s Shriansh > 9

PUNJAB NATIONAL BANK

BO: Nehru Place, NEW DELHI
Phone: 26442961,26222349, 26467740; FAX: 26485318
E-mail <bo1529@pnb.co.in>

time
14. The Bank will always be at liberty to stop making further advance or cancel the credit facility at
any time without previous notice and without assigning any reason even though the said limit/
credit facility has not been fully availed of.
15. Party to give an affidavit that there is no Govt./ Statutory dues i.e. electricity/ water/ Telephone
bills, Property Tax etc. is outstanding and paid in time. Latest payment proof of such taxes be
obtained and kept on record.

Manager

Chief Manager

< M/s Shriansh > 10