Professional Documents
Culture Documents
Module Approach
Module Approach
A Cash Credit limit to the tune of Rs.35.00 lacs @ Base Rate +2% was sanctioned in the account M/s Telematics , a proprietary concern by the
Branch Manager on 08.12.2007 as per application of the borrower dated 24.11.2007.where the proprietor was Mrs. Ruchika Jain (Sarawgi) and
the guarantor was her father Mr. Ashok Kumar Jain and limit was availed for the business Retail Sale of Electronics good. The entire limit in the
account was availed by the borrower by Dec’07 after accepting the terms and conditions of sanction and executing documents to secure the loan
sanctioned. Operation in the account was satisfactory upto Feb’09 as reported by Regional Office and thereafter the account became out of order.
Unit is closed since Mar’09. On taking up the matter with the borrower through various correspondences / verbally, to regularize the out of order
position persisted in the account and operate the account in terms of sanction, the borrower did not respond / regularize the account although
promised to set right the irregularities. As there was no response from the borrower, branch adjusted the FDR of Rs.10.00 lacs kept under lien on
26.02.2010 and RDS of Rs.20,000/- on 08.04.10. The account was classified as NPA as on 31.03.2010 with o/s balance of Rs.29.92 Lakh through
MoC by Statutory Auditor. Later the account was declared NPA on credit of RDS kept as security and Balance amount was 29.72 lakhs. A suit was
filed on 23.11.2010 for Rs. 32.67 lakhs and it is continuing. Legal expenses are Rs.0.43 lakh .The account has been identified as willful defaulter in
June 2011 Ref RO/GUWA/RECV/11-12/1 dated 30/06/2011.
Nature Value.
Primary Stocks of electronic Rs.54.0
goods 0 lac
Collateral (Give full details viz. Nature, Location, extant, Age MMDC No.3053864694 for
of assets etc. with owner’s name) Rs.10.00 lacs and RDS
1641864272 for Rs.0.20 lac
Rs.1.60 lac
Rs.136.77 lacs
as per our module approach.
Case Study on compromise under module approach
M/s XYZ Ltd , a public ltd. Co., dealing in import of synthetic rubber and pulses etc. were
sanctioned credit facilities (Term Loan of Rs 70 Lacs @BPLR) on 03/11/1999 by Satpur
Branch, Nasik Region, Pune Zone. The advance was secured by equitable mortgage of the
basement property at Maitri Bldg. Vile Parle (West) Mumbai offered by the guarantor as
collateral security for the facilities granted. However due to devolvement of LCs, the
account turned to NPA on 31.3.2000 with o/s balance of Rs.72.86 lacs. Present balance is
Rs.100, after PWO of Rs.40.19 lacs and total recovery of Rs.32.67 lacs after NPA deposited
on various dates. Account was written off on 08/03/3008. Legal Expenses incurred was Rs.
1.33 Lakhs but recovered in full on 08.04.2007.
Provision & URI are nil. Market value & realizable value of the property is Rs.152.00 lacs
and Rs.137.00 lacs respectively as per VR dated 28.02.2013 by ABC ,panel valuer; at the
time of last review, its value was Rs. 80 lac. At the time of Sanction the worth of Borrower
was Rs. 20 Lacs and that of gyarantor Rs. 80 Lacs, But the Present means of
directors/guarantors are meager.
The guarantors filed a suit against the company in 2004 and as per the Court Order the
property is in possession of High Court Receiver. As such, SARFAESI action could not be
taken. Bank filed suit in DRT I, Mumbai on 05.03.2007 for Rs.117.64 lacs which was
decreed on 01.02.2013 for reduced amount of Rs. 67.93 lacs with interest @12%, quarterly
compounding, from 05.03.2007. Bank did not prefer appeal on the basis of opinion of panel
advocate since the claim under devolvement of LC had been disallowed. Earlier, on various
occasions, the party came to settle Bank’s dues under compromise settlement; however, their
offer was low. The present offer is of Rs.90 lacs. Compromise amount is payable within a
period of one year including Rs.15 lacs already deposited in No Lien Account.
Please prepare compromise proposal in format Recv 6 with proper justification & calculate
the module amount.
YELLOW BOXES ARE PASSWORD PROTECTED Please MAILTO trg4@centralbank.co.in for Password/Suggestions
MODULE APPROACH WORKSHEET
ALL AMOUNTS ARE IN LAKHS
i Name of Borrower: PRIYANKA TIWARI D/O MR MRITUNJA
Name of Branch/ Name of Region/ Name of Zone LANKA
ii Account No : 3050636794
iii Facilities availed TL
Date of Original Sanction Friday, July 31, 2009 (enter date)
Sanctioning/Reviewing Authority BM
Rate of Interest as per Sanction 13.00
Applicable Rate for Contractual Dues Calculation (Maximum @14%) 13.00
iv Date of NPA 28-Aug-14 (enter date)
Date of Receipt of Compromise Proposal 22-Oct-18 (enter date) 1
v Date taken for calculations for the Compromise Proposal 30-Nov-18
vi Age of NPA in months (for calculating Notional Amount) 51
vii Age of NPA in Years Completed 4
viii Valuation Report Dated (enter date)
Name of the Valuer BM (enter name)
Valuation to be taken afresh NA No. of months old 1427
Market Value as per the previous valuation report 0.00 (enter amout)
Marketable value of securities (Report not older than one year) 0.00 (enter amout)
Realisable value of securties (Not below 60% of market value) 0.00 (enter amout)
CHECK FOR SECURITY D
The Present Value of Security is NIL/No Security Available FALSE
If SARFAESI 13(2) Notice served, Enter Date
If Possession Taken, Enter Date
Worth of Borrowers at Sanction Date 0.00 (enter amout)
Worth of Gaurantors at Sanction Date 0.00 (enter amout)
Agrregate means of Borrowers 0.00 (enter amout)
Agrregate means of Guarantors 0.00 (enter amout)
ix Agrregate means of Borrowers & Guarantors 0.00
x Legal Exp (if any) 0.00 (enter amout)
Whether PWO/Sold to ARC (for Yes enter 1/No enter 0) 0
xi Assets Classification Doubtful/Loss
Amount Written Off 0 (enter amout)
Date of Write Off
Present Ledger Balance after Write Off 94934 (enter amout)
xii The borrower is a wilfull defaulter (True/False) F FALSE
Write the date when declared (enter date)
Module.Appro
Write the SR. NO. for declaring willful defaulter by RO
The proposal can be sanctioned below C.O. level YES
xiii Whether Suit File (for Yes enter 1/No enter 0) 1
xiv The Date of Suit File (enter date)
Amount of Suit File 0
xv Whether Decreed (for Yes enter 1/No enter 0) 0
if yes then Date of Decree (enter date)
xvi Date from when interest awarded
xvii Amount of Decree 0 (enter amout)
xviii Rate of interest in Decree awarded 0
Whether compound interest awarded (for Yes enter 1/No enter 0) 0
Compounding Period(Monthly/Quarterly/Half yearly/Annually)
xix Period for which interest is to charged as per Decree (months) 0
xx Period for which interest is to charged as per Decree (years) 0.00
xxi Interest on Decreed Amount FALSE
xiv Recovery after Decree (Enter individually in white box) 0.00 (total recovery amount)
xv Recovery date
xvi Recovery benefit in months 0 I II III
(For subsequent recoveries work individually above & ENTER TOTAL IN GREEN BOX BELOW)
xvii Interest on recovered amount FALSE
Recovery benefit interest in the right formula box,
xviii Total Recovery plus interest 0.00 Enter total of recovery + interest in the left box
Amount
Ledger Balance as on NPA Date 94934.00 (enter amount)
Unrecovered URI if any 65904.00
Provision held if any 0.00
Subsequent Debits if any 0.00
(A) Running Ledger Balance as on NPA Date 160838.00
Add:
(B) Interest from date of NPA @ 10% simple 68356.15
till the following month of compromise
(D) Amtt recovered after date of NPA (Enter individually in white box) 0.00 (enter the individual recovery amount)
DATE OF RECOVERY 01/Jan/19 (enter date)
Module.Appro
BENEFIT TO BE GIVEN FOR__MONTHS -1
PLUS AMOUNT OF INTEREST OF RECOVERY 0.00
INTEREST FOR CONTRACTUAL DUES 0.00
(for subsequent recoveries work individually below) 0.00 No more entry needed
Individual Dates of Recovery
Individual Amount of Recovery on those dates
I II III IV
INDIVIDUAL INTEREST FOR NOTIONAL CALCULATION
INDIVIDUAL INTEREST FOR CONTRACTUAL CALCULATION
ADD TOTAL RECOVERY PLUS INTEREST 0.00 0.00 0.00
ADD TOTAL RECOVERY PLUS INTEREST (CONTRACTUAL DUES) 0.00 0.00 Please workout for multiple recoveries in int sheet
0.00
PARAMETERS POINTS
Module.Appro
1 Realisable value of securties charged to the bank
(should be based on valuation not older than 1 year)
a. > NAD 10
b. > 75% & upto 100% of NAD 8
c. > 50% & upto 75% of NAD 5
d. > 25% & upto 50% of NAD 3
e. 25% or < of NAD 0 0
3 Marketability of Securties
a. Easily marketable 6
b. Not easily marketable 3
c. Not marketable 2
d. No securties 0 0
Module.Appro
MINIMUM MODULE AMOUNT (IF SCORE BETWEEN 4 TO 7) 80419
MAXIMUM MODULE AMOUNT (IF SCORE BETWEEN 4 TO 7) 120628.5
MINIMUM COMPROMISE AMOUNT ACCEPTABLE BY LOOKING AT THE REALISABLE VALUE OF SECURITY FALSE
NPV@11%
NPV SECURITY VALUE 0.00
NPV COMPROMISE AMTT 41,800.00
REPAYMENT PERIOD NOT TO EXCEED 12 MONTHS AND INTSTALLMENTS WILL ATTRACT INTEREST @Base Rate +4% (SIMPLE), DELAYED INSTALLMENTS WILL ATTRACT INTERST @Base Rate+6% (SIMPLE). THE PROPOSAL WILL LAPSE ON
DEFAULT OF 3 CONSECUTIVE MONTHLY OR 2 QUARTERLY INSTALLMENTS. IF PROPOSAL LAPSES IT SHOULD BE REFERRED TO NEXT HIGHER AUTHORITY BY THE DELEGATED AUTHORITY. ANY DEVIATION TO BE REPORTED TO ED/CMD
Module.Appro
co.in for Password/Suggestions
Module.Appro
No more entry needed
IV
0.00
Module.Appro
V
0.00
0.00
nt)
period required)
Module.Appro
Module.Appro
mount
AUTHORITY)
Module.Appro
CALCULATION OF INTEREST ON RECOVERY AMT
Add:
(B) Interest from date of NPA @ 10% simple
till the following month of compromise
(D) Amtt recovered after date of NPA (Enter individually in white box)
DATE OF RECOVERY
BENEFIT TO BE GIVEN FOR__MONTHS
PLUS AMOUNT OF INTEREST OF RECOVERY
INTEREST FOR CONTRACTUAL DUES
(for subsequent recoveries work individually below)
Individual Dates of Recovery
Individual Amount of Recovery on those dates
PARAMETERS
1 Realisable value of securties charged to the bank
(should be based on valuation not older than 1 year)
a. > NAD
b. > 75% & upto 100% of NAD
c. > 50% & upto 75% of NAD
d. > 25% & upto 50% of NAD
e. 25% or < of NAD
3 Marketability of Securties
a. Easily marketable
b. Not easily marketable
c. Not marketable
d. No securties
REPAYMENT PERIOD NOT TO EXCEED 12 MONTHS AND INTSTALLMENTS WILL ATTRACT INTEREST @Base Rate +4% (SIMPLE), DELAYED INSTALLMENTS WILL ATTRACT INTERST @Base Rate+6% (SIMPLE). THE PROPOSAL WILL LAPSE ON
DEFAULT OF 3 CONSECUTIVE MONTHLY OR 2 QUARTERLY INSTALLMENTS. IF PROPOSAL LAPSES IT SHOULD BE REFERRED TO NEXT HIGHER AUTHORITY BY THE DELEGATED AUTHORITY. ANY DEVIATION TO BE REPORTED TO ED/CMD
mount
AUTHORITY)
PERIOD 1 2 3 4 5 6 7 8 9 10 11 12 13
PV FACTOR 0.9909 0.9819 0.9730 0.9642 0.9554 0.9467 0.9381 0.9296 0.9212 0.9128 0.9045 0.8963 Total
PAYMENTS 0 0 0 0 0 0 0 0 0 0 0 0 0.00
PV 0 0 0 0 0 0 0 0 0 0 0 0
EMI #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM!
EQUATED PRINCIPAL #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
NPV
Rs.0.00
0.00
Rs.0.00
Rs.0.00
ANNEXURE RECV - 6
ACCOUNT 3050636794
BRANCH/RO/ZONE LANKA
PROPOSAL TO BE
MCB
SANCTIONED BY
3
a)Balance on NPA date
94934.00
b)Less: PWO, if any 0
14 Names Of Guarantors
Amount of
20 Date & amount of suit with present Date of suit 30/12/99
suit
status Interest
claimed % From (Date)
Date of
N/A Decree Amt. 0.00
Decree
Interest
0.00 From (Date) N/A
decreed %
Present Status Doubtful/Loss
21(a) Action taken under SARFAESI Act Date of Notice under
& present position sec 13(2)
Date of Possession
Further Steps taken
Date
Details
25. Securities
At the time of last review of * Present Market Value and Realisable
value as per Valuation Report dtd. by
facilities (Year) M/s
Dated By
Nature Value 30/12/99 BM
Primary
Market
Collateral Realisable Value
Value
(give full details viz,
Nature, location, extent
0.00 0.00
(area), age of asset etc.
with owners’ name)
Means of Borrower 31/07/09 0.00 0.00
Means of Guarantor/s 31/07/09 0.00 0.00
*(1) Valuation report should not be more than one year old.
(2) In case of wide variations in old and latest valuation, reasons there
for to be given as footnote
(3) Means/Networth of the borrower/guarantor as of recent date to be
mentioned by making suitable inquiries
(4) For means of Ltd. Company, please mention TNW and the date of
Balance Sheet.
(5) Enclose copy of latest valuation report along with photo of property /
asset, wherever possible.
26 Contractual / Decreetal Dues: #REF!
Outstanding on the date of NPA (RLB) or Amt of decree granted
by DRT/Court (for decreed accounts) 94934.00
Add:
1) Subsequent Debits, if any.
2)Interest * held in Dummy Ledger/ Memorandum book / Interest
granted by DRT / Court as per decree (for decreed accounts) from
……….. to……….. at ---- % (Compound / Simple)
-65139.39
3)Legal / other expenses ( not debited to account)
0.00
SUB TOTAL 29794.61
Less: Recovery after NPA date/ Decree Date 0.00
Contractual/ Decreetal Dues 29794.61
* Int. rate should be contracted rate/documented rate or 14% (which ever less)
Attach copy of statement of account from date of NPA.
Name of Account - PRIYANKA TIWARI D/O MR MRITUNJAY TIWARI
-4
28 Evaluation Module
Sl.No Parameter Particulars* Points
1 Realisable value of Securities 0.00 0
( ____ % of Notional dues )
2 Aggregate means of the borrower/guarantors 0.00 0
_____ % of Notional dues
3 Marketability of security No security 0
(‘0’ points if no securities)
4 Age of NPA(months) 49 2
5 Legal position of the Bank 2
Total Score 4
* tick whichever is applicable..
17 & above Balance on NPA date + interest @ 10 (simple) + Legal and other expenses - Recoveries
12 to 16 Balance on NPA date + interest @ 8% (simple) + Legal and other expenses – Recoveries.
50% to 75% of Balance on NPA date + Legal and other expenses - Recoveries or Current
4 to 7 Ledger Balance + Legal Charges (which ever is higher, if subsequent recovery is more than 50% and up
to 75% of balance on NPA date).
0 to 3 As much as possible
insert
It is confirmed that all the facilities funded /not funded enjoyed by the borrower are
incorporated in this proposal including LGs/LCs invoked and outstanding.
data &
BRANCH MANAGER
We have verified the above proposal along with its relevant papers/ process note
print
and recommend approval of the proposal at Rs.---------- with sacrifice of Rs.-------------.
only
print
We recommend acceptance of the compromise proposal and write off /
waiver (sacrifice) as proposed. only
SAC AT ZONAL OFFICE
page 1
Name of Account ------------------
Date of Submission--------------------------
t
&
t
y
t
y
1
40 Additional Details A/c…………………….. PRIYANKA TIWARI D/O MR MRITUNJAY TIWARI
Worth of the Proprietors/Partners/Directors at the time
i. 0.00
of original sanction ------------- (Available on records)
ii. Present Worth of Proprietors/partners/Directors as on -- * 0.00
iii. Group Affillation, if any
Present Activity of-
iv.
Proprietor/Partners/Directors 0
Category(Priority/Non-Priority)
v.
If priority Agriculture/SME/others
Facilities Last Sanctioned/reviewed by
A) Sanctioning / reviewing Authority BM
vi.
B) Date of last sanction/review Friday, July 31, 2009
C) Nature of the facilities & Limit sanctioned TL
vii. Any other information relevant to the OTS proposal.
0.00
viii Amount Paid after date of NPA and date of payment
No Recovery
Date up to which interest charged in the ledger 28/08/2014
ix.
and Corresponding Ledger balance 160838.00
x. Contracted rate of interest 13.00
94934
xi. prudential write off amount and date
30/12/1899
LC/BG, if any, issued on behalf of this account and
xii. 0
outstanding/invoked
a) Date of LC/BG
b) Amount of LC/BG
c) Date of maturity
d)Margin Held
e) Date of invocation and amount paid
* Incase it is not ascertainable Branch Manager should arrange inspection of borrower /guarantor place/asset indicating efforts take
We certify that the information furnished herein above are true and correct to he best of our knowledge and based on records.
BRANCH MANAGER
ed on records.