PUNJAB NATIONAL BANK

Vatva, Ahmedabad

SANCTIONING AUTHORITY
Sc,M

The proposal falls under the powers of Senior Manager (Branch) on account of total exposure
of Rs.60.00 (40Termloan + 20 wc) lacs to the borrower.

Reference No./Date:

1. Name of the Borrower : M/S NANDI APPARELS PRIVATE LIMITED

Registered Office : Shop No 106, First Floor, Ambaji Textile Market
Bhilwara 311001
Controlling Office : 41-46, 2nd Floor, Yash Niketan Complex,
Nr Khokhra Circle, Khokhra, Ahmedabad

(Rs. in Lakh)
GIST OF THE PROPOSAL
A. Sanction of Working Capital Limits

Existing Proposed
FB 0.00 20.00
NFB 0.00 0.00

B. For Term Loan

Purpose Part finance of Fabric
Machinery
Cost of Project 66.81
Total Debt 50.00
Promoter’s contribution 23.12
Proposed TL (our share) 40.00
Unsecured Loan 10.00
DER 2.28
Repayment Period 20 Quarters
Door to door tenor 21 Quarters

C. Approval of ROI/ Service charges as under:-

Facility Existin Proposed Applicable Income Earned
g rate
Last Current year
Year upto_______

Rate of interest CC N.A. 12.50% -- -- -- --

Upfront Fee -- -- -- --
Processing Fee As Per H.O. Guidelines
Other charges, if -- -- -- --
any

D. Approval of other Issues, if any: Nil

Whether fresh/renewal/ Fresh

enhancement
Asset Classification as on________ NA
and last PMS score
Credit Risk Rating by Bank is @@ Rating Date of Score ABS Reasons for
indicating Average Risk Rating degradation
Present
Previous -- -- -- -- --
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

Rating from External Agency (The Facility Rating Date of Rating Remarks
external rating should be mapped to the rated rating Agency
internal rating) NA
Whether Agriculture/Retail/ SME
SME/Others (Please specify)
a) Whether Sensitive Sector – No
Real Estate/Capital Market
b) Applicable Risk weight
Consortium/Multiple Banking Sole Banking
Lead Bank N.A.
PNB’s Share % 100.00%
Date of application 13.11.2010

Date of receipt of proposal 13.11.2010

At BO/CO/HO

Date of clarifications, if any, received

at CO/HO

Date of placing the proposal before

competent authority

Remarks
Date of last sanction & authority/’In
Principle’ Consent
Customer ID No.
Activity code (as per ladder)

PART – I

2. Borrower’s Profile
a. Group Name Nandi Apparels Private Limited
b. Address of Regd./Corporate Office 41-46, 2nd Floor, Yash Niketan Complex
Near Khokhra Circle, Khokhra
Ahmedabad(Gujarat) INDIA
b. Institution
c. Constitution and constitution code as per Private Limited Company
ladder
d. Date of incorporation/ Establishment 01/02/2010
e. Dealing with PNB since First time
f. Industry/Sector Textile Industry
g. Business Activity (Product)/Installed Manufacturing of Casual & Formal Trousers
Capacity.

3. Directors (S/Shri)

Name and Designation Address/Mobile No./e-mail Whether

address of Main Directors/ Promoter/
Guarantor Directors/ Professional
Key persons /Nominee
Mr. Prakash M. Goyal - Director Promoter

Mrs. Uma P. Goyal - Director Promoter

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

Mr. Mohanlal Goyal - Guarantor 1244, Bhilwara Ward No. 48, Guarantor
Basant Vihar, Bhilwara,
Rajasthan.

If any of them, in the list of Caution No

Advices circulated by the Bank from
time to time/RBI's/Wilful defaulters'
list/Caution List of ECGC/
If any one of them connected in the No
past with any
NPA/OTS/Compromise/unscrupulous
defaulters
a) If any of them, related to No
Directors/Senior Officers of PNB:
b) i) Management Change since last Nil
sanction, if any
c) i) Report on due diligence carried out
in terms of L&A Circular No. 170 dated
25.10.2008 and comments on adverse
features, if any
ii) Concompanyation that CRs have
been compiled/reviewed as per extant
guidelines
iii) Concompanyation that CRs have
been drawn from CIBIL Database and
comments on adverse features, if any

f) Share Holding Pattern as on:

Name of the Promoters/Major Share No. of Amt. in Rs % Holding
holders shares

Mr Prakash M Goyal
Mrs Uma Prakash Goyal
Total

g) Whether Shares pledged to any Bank/FI/others No

If yes, Percentage of shares pledged N. A.
Institution N. A.
Purpose N. A.

h) Brief history

4.A Facilities Recommended :

(Rs. in lakh)
Nature Existing Proposed Secured/Unsecured along with
Fund Based the basis thereof
(As per RBI’s guidelines)
CC (Hypothecation of stocks 0.00 20.00 Secured
and book debts)
Fund Based Ceiling 0.00 20.00
Non Fund Based
ILC/FLC 0.00 0.00
Non Fund Based Ceiling 0.00 0.00
Term Loan 0.00 40.00 Secured
TOTAL COMMITMENT 0.00 60.00
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

4.B Our Commitment and Maximum Permissible Exposure Norms

(Rs. in Lacs)
Existin Proposed %age of Bank’s Capital Funds as As per Exposure Norms
g on 31.03.10 Amount (%age)
Rs.
Company 0.00 40.00
Group

4. C Short Term Loans sanctioned by PNB in last 12 months, if any

Nil

4. D Details of facilities provided outside consortium including exposure on account of

derivatives, if any

Nil

5.A Facilities from PNB Subsidiaries/Exposure by way of investment in

Equity/Debentures/Derivatives/Foreign Exchange etc. :

Nil

5.B Term Loans from other Banks/Financial Institutions/Other Institutions - (including Lease,
ICDs, Corporate Loans, Debentures etc.)

Nil

5.C Credit Rating by agencies {CRISIL/ICRA/CARE/FITCH INDIA} with purpose of such rating.

Nil (New Unit)

5.D Details of Working Capital Limits from the Consortium/Multiple Banking

Nil

6. Details of Group /Allied/Associate companies and the facilities sanctioned to them along
with conduct of these accounts with our Bank/ other Banks and comments on adverse
indicators, if any.
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

As per Appendix – I

7.A(i) Financial Position of the Company as on close of financial year for last three years and
estimated for last year and projected for the next year

New Project under implementation hence the past data is not available. The estimated and projected
financials are given below.

  EST PROJ PROJ PROJ PROJ

  2011 2012 2013 2014 2015
Gross Sales          
Domestic including sales incentive 63.09 188.81 200.24 212.03 223.82
Export
Net sales 63.09 188.81 200.24 212.03 223.82
%age growth of sales 6.05% 5.89% 5.56%
Other Income 0.00 0.00 0.00 0.00 0.00
Operating Profit/Loss 6.78 18.05 19.18 19.55 20.30
Profit before Tax 4.70 10.92 13.05 14.43 16.18
Profit after Tax 3.15 7.32 8.75 9.66 10.84
Cash Profit/(Loss) 8.16 16.59 16.63 16.36 16.53
Paid up capital 30.72 30.72 30.72 30.72 30.72
Reserves and Surplus excluding revaluation
1.75 8.41 17.08 27.40 36.53
reserve
Misc. expenditure not written off 0.00 0.00 0.00 0.00 0.00
Accumulated losses 0.00 0.00 0.00 0.00 0.00
Deferred Tax Liability/Asset 0.00 0.00 0.00 0.00 0.00
Tangible Net Worth 33.03 39.35 46.59 52.26 58.10
Unsecured Loans 10.00 10.00 10.00 10.00 10.00
Total Borrowings (TOL) 74.32 65.26 57.50 49.70 41.91
Secured 40.00 30.00 20.00 10.00 0.00
Unsecured 10.00 10.00 10.00 10.00 10.00
Investments 2.50 2.50 2.50 2.50 2.50
Total Assets 107.35 104.61 104.10 101.96 100.01
Out of which net fixed assets 61.80 52.53 49.65 42.95 37.26
Net working capital 38.73 46.32 48.45 52.80 56.34
Current ratio 1.33 1.59 1.65 1.78 1.89
Debt equity ratio 2.25 1.66 1.23 0.95 0.72
Operating Profit/Loss %age 10.74 9.56 9.58 9.22 9.07
TOL/TNW 2.25 1.66 1.23 0.95 0.72
Long Term Sources 15.59 15.13 12.36 11.53 10.45
Long Term uses 8.00 13.00 8.00 8.00 0.00
Surplus /Deficit 7.59 2.13 4.36 3.53 10.45
short Term Sources 0.42 0.24 0.20 0.20 0.00
Short Term Uses 8.02 2.36 4.56 3.74 10.45
Surplus /Deficit (7.59) (2.12) (4.36) (3.54) (10.45)

7A (ii) Latest Key Fig.

7B. Brief discussion on Financial Indicators

Paid up capital/TNW
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

The proposed unit is being financed through combination of term finance from us, contribution of the
promoters. However, we stipulate that the trust fund and Donation fund as margin shall be brought in
as per the progress of the project.

7.C Capital Market Perception

N.A.

7.D Details of investment in Shares, Debentures, Units or investment of funds outside the
business etc. (Along with comments in case of increase)

Nil

7.E Details of Liabilities not accounted for/Contingent liabilities

Nil

7.F Position of assessment of income tax/sales tax/wealth tax of the borrowing

concern/partners/proprietor/promoter directors/guarantors

Paid Till Date

7.G Information on litigation initiated by other banks/FIs against the borrower as per latest
Audited Balance Sheet, if any

Nil

7.H Overall likely impact of (7.C to 7.G) on the financial position of the borrowing unit
Nil

8. SECURITY

A. Primary

i) For Term Loan

Hypothecation of Plant & Machinery having overall cost of Amount Rs 60.68 lacs against the
Term Loan given by the bank

B. Collateral (Information in respect of mortgage of IP to be given only in the following format:

Security Description Area in Value Basis for Da Whether

Sq M or valuation te existing/
Sq mtrs fresh
Last Present book Realisable
sanction value value
Nil
Total

NEC in respect of above IP is to be obtained from bank’s approved advocate and valid enforceable
mortgage to be created before release of facilities.

i) Equitable/ Registered Mortgage of following IP

All the properties listed above are to be mortgaged with the respective registrar offices.

ii) First/Second/Third charge/ Paripassu charge Nil

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

iii) Personal /Corporate Guarantee

Guarantee by directors in their personal capacity

Name of Guarantor Relations Net Worth Immovable Date of confidential
hip with (Rs. In Lacs) property report
borrower
Prev. Present Prev. Present Prev. Present
As at As at

Mr Mohanlal Goyal Father 65.68 30.00 12/11/2010

iv) Comments on changes, if any: NA

v) Status of creation of charge: NA

8. C Security Margin (Fixed Asset Coverage Ratio – for term loans) (Rs. In Lacs)
Existing Proposed
Nature Book value FACR Book Value FACR on project
completion
Primary -- L&B 455.96
Other Assets141.04 100%
Total 597.00
Collateral -- -- --
Total -- -- 597.00

9. Position of Account as on NA, being a fresh case

10.A Conduct of the Account including details of terms & conditions not complied with.
Comments on following should be given

 Availment of limit, overdrawings,

 Routing of proportionate business in consortium, routing
of sale proceeds, honouring of commitment in non fund
based facilities(details of LC/LG devolved/invoked with
amount),
 Regularity in submission of CMA data/ financial NA, being a fresh sanction
statement/QMS/Stock Statement.
 The information regarding no. of cheques returned with
amount involved due to financial reasons during the
review period should be mentioned.
 The amount/frequency of irregularity in the account
during the review period should be mentioned.

10.B i) Value of the Account

NA, being a fresh sanction

10.B ii) Deposits including Escrow/TRA account with details Nil

10.C Review of the Account and Summary of serious irregularities pointed out by Bank’s
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)

As per Appendix – III

10. D (i) CONCOMPANYATION
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

1. Compliance of last sanctioned terms

2. Security documents are valid/duly vetted/enforceable
3. Proper charge on securities created
4. Concompany that company/directors are not under bank/RBI/ECGC/ CIBIL
defaulters/caution list
5. Concompany that payment of statutory liabilities is not in arrears
N.A.
6. Concompany that no litigation against/by the company is pending
7. Corporate governance practices are being followed as per Auditor’s report
8. Concompany that no deviations are made from usual norms/policy
guidelines
9. Concompany that Exposure is within bank’s internal ceilings/RBI prudential
norms

10.D(ii) AUDIT/INSPECTION/MEETINGS

Particulars Last date Remarks/Observations/Steps taken

a) Annual inspection
b) Stock audit
c) Consortium meeting NA, being a fresh sanction
d) Closure of IR

10.E In case of audit conducted by RBI – Whether commented/special mentioned account –

Details as per Appendix III (B)

NA

PART – II

11.A(i) Industry Rating as per RMD

A.(ii) Detailed Industry Scenario and Comments on management, production and marketing as
well as Borrowers' diversification, expansion, modernisation programme

As per Appendix – IV

12. Present Proposal

Present proposal is for fresh sanction of Term Loan of Rs. 50.00 lacs, setting up a manufacturing unit
for Casual & Formal Wear Trousers, Ahmedabad.

a) Justification for working capital sanction Not Applicable

i) Assessment of Fund Based Limits

ii) Justification for Fund based working capital limits proposed

N.A.
b) Justification for Non Fund based limits
N.A. since the Trust has not applied for non fund based limits

c) Justification for term loan/DPG

(i) Purpose

To part finance for the purpose of Acquiring Plants & Machinery and other necessary assets required
for production

(ii) A. Appraising agency

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

The project has been appraised by the branch

B. Whether vetted by any Technical Officer/ Other Official of Bank (Name and designation to be
furnished).

No

M/S. NANDI APPARELS PRIVATE LIMITED

   
COST OF PROJECT (Rs. in lacs)
             
  Incurred Up PROPOSED GRAND MARGIN ELIGIBLE
DESCRIPTION to TO BE TOTAL ON NEW TERM
  31/10/2010 INCURRED     LOAN
  Rs. Rs. Rs. % Rs.
             
COST OF PROJECT          
           
1. Land 0.00 0.00 0.00 100% 0.00
           
2. Factory building 0.00 0.00 0.00 100% 0.00
         
3. Plant and Machinery 5.00 55.68 60.68 25% 45.51
           
4. Furniture & Fixtures 0.00 6.13 6.13 25% 4.60
           
TOTAL CAPITAL
EXPENDITURES 5.00 61.81 66.81   50.11
             
         
5. Working Capital Margin : 0.00 13.91 13.91 100.00 0.00
         
       
         
  TOTAL : --> 5.00 75.72 80.72   50.11
         
         
             
TOTAL TERM LOAN PROPOSED         40.00
(iii) Summary of cost of project and means of finance

PROPOSED MEANS OF FINANCE

    EXISTING   PROPOSED   GRAND

DESCRIPTION AS ON TO BE TOTAL
  31/10/2010 RAISED  
    Rs.   Rs.   Rs.
1.Capital 5.00 25.72 30.72
     
2.Term Loan : 0.00 40.00 40.00
     
3. Unsecured Loan & Deposit 0.00 10.00 10.00
     
  TOTAL : --> 5.00   75.72   80.72
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

             

(iv) Sources of Promoters’ Contribution and the time schedule as to when the funds will be
brought.

(iii) Equity :
The Directors will bring the amount of Rs 23.12 lacs and remaining will be financed through the way
of Term Loan

(iv) Internal accruals:

The project has not considered the internal accrual as source of financing the project.

(v) Unsecured loans :

The project has considered unsecured Loan upto Rs 10.00 lac.

(vi) Tie up for all the above :

No any Tie – up
(vii) Debt details :

The project has envisaged Term Loan from our bank of Rs.225.00 lacs to part finance the cost of the
project
(viii) Our Bank's share in the multiple/consortium lending
Sole banking and our Bank share is 100%

(v) Brief explanation for each major individual item of cost of Project with present status
along with comments on the reasonableness/competitiveness

As per Appendix - VI

vii) Comments on all major technical aspects like locational advantage, Technology/
manufacturing process, power, man power, utilities, transportation, etc.

As per Appendix– VI(A)

viii) Summary of profitability, Break-Even, DSCR and IRR with comments thereon including
Assumptions underlying profitability projections:

Detailed projected profitability projections, balance-sheet, cash flow are as per Appendix VII.

  Stand Alone Project Company as a whole

Debt-Equity Ratio 0.20 -

Average DSCR 2.13 -
Minimum DSCR 1.25 -
Break Even Point
Cash Break Even

ix) Detailed Sensitivity Analysis:

Gross Excess of Income over expendi. 11.79 29.61 30.72 31.50 31.93 31.98

Depreciation 5.01 9.27 7.88 6.70 5.69 4.84

Misc. Exps. Written off 0.00 0.00 0.00 0.00 0.00 0.00
Interest
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

On term Loans - Existing 2.50 4.63 3.63 2.63 1.63 0.63

On Working Capital Proposed 0.83 2.50 2.50 2.50 2.50 2.50
SUB TOTAL 3.33 7.13 6.13 5.13 4.13 3.13
Profit before Tax 3.45 10.92 13.05 14.43 16.18 17.32
Provision for taxes 1.14 3.61 4.31 4.76 5.34 5.72

Net profit 2.31 7.32 8.75 9.66 10.84 11.61

Depreciation added back 5.01 9.27 7.88 6.70 5.69 4.84
Misc. Exps. Written off 0.00 0.00 0.00 0.00 0.00 0.00
Net cash accruals 7.32 16.59 16.63 16.36 16.53 16.45
Interest on term loan 2.50 4.63 3.63 2.63 1.63 0.63
Cash available for debt service 9.82 21.21 20.25 18.99 18.16 17.07
Repayment obligation
Interest 2.50 4.63 3.63 2.63 1.63 0.63
Principal 8.00 8.00 8.00 8.00 8.00
Total Repayment 2.50 12.63 11.63 10.63 9.63 8.63

Debt service ratio 3.93 1.68 1.74 1.79 1.89 1.98

Average D.S.C.R 1.90 Times

SENSITIVITY ANALYSIS            
If sale price is reduced by 5%            
  2011 2012 2013 2014 2015 2016
Selling Price 63.09 188.81 200.24 212.03 223.82 235.61
Less : 5 % 3.15 9.44 10.01 10.60 11.19 11.78
Revised Fees 59.94 179.37 190.23 201.43 212.63 223.83
Reduced by 3.15 9.44 10.01 10.60 11.19 11.78
Net Excess before tax 0.29 3.77 6.70 9.08 10.92 12.24
Revised Net Excess before tax 0.29 3.77 6.70 9.08 10.92 12.24
Less : Tax @ 33% 0.10 1.24 2.21 2.99 3.60 4.04
Excess after Tax 0.20 2.53 4.49 6.08 7.32 8.20
Add back :            
2.5 4.6 3.6 2.6 1.6
Interest on term loan 0 3 3 3 3 0.63
Depreciation 5.01 9.27 7.88 6.70 5.69 4.84
Preliminary Expenses 0.00 0.00 0.00 0.00 0.00 0.00
Net cash accruals 7.71 15.42 14.49 13.40 9.64 6.16
Repayment obligation            
Interest 2.50 4.63 3.63 2.63 1.63 0.63
Principal 8.00 8.00 8.00 8.00 8.00
Total Repayment 2.50 12.63 11.63 10.63 9.63 8.63
D.S.C.R 3.08 1.22 1.25 1.26 1.00 0.71
Average D.S.C.R 1.09
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

SENSITIVITY ANALYSIS (PROPOSED)            

If raw material price is increased by 5%            
  2011 2012 2013 2014 2015 2016
Materials 13.82 39.31 41.77 44.23 46.68 49.14
Add : Increase by 5% 0.69 1.97 2.09 2.21 2.33 2.46
Increased cost of Materials 14.51 41.28 43.86 46.44 49.02 51.60
Increase by 0.69 1.97 2.09 2.21 2.33 2.46
Net Excess before tax 2.03 8.72 11.96 14.64 16.80 18.42
Revised Net Excess before tax 2.03 8.72 11.96 14.64 16.80 18.42
Taxes @ 33% 0.67 2.88 3.95 4.83 5.54 6.08
Excess after Tax 1.36 5.84 8.01 9.81 11.25 12.34
Add back :            
Interest on term loan 2.50 4.63 3.63 2.63 1.63 0.63
Depreciation 5.01 9.27 7.88 6.70 5.69 4.84
Preliminary exps. written off 0.00 0.00 0.00 0.00 0.00 0.00
 Net Cash Accrual 8.87 18.74 18.01 17.13 13.57 10.31
Repayment obligation            
Interest 2.50 4.63 3.63 2.63 1.63 0.63
Principal 8.00 8.00 8.00 8.00 8.00
Total Repayment 2.50 12.63 11.63 10.63 9.63 8.63
D.S.C.R 3.55 1.48 1.55 1.61 1.41 1.19
Average D.S.C.R 1.56 times

x) Status of various statutory approvals and clearances

The company has applied all necessary approvals from the various government departments. The
status of various statutory permissions is as below:

Approval Status
Land acquisition Acquired
Project Planning, preparation of project report, filing of loan Done
application with Banks
Order for site development & Civil Work, Structural Done
Fabrication of SMS shed

We stipulate that CM (Branch) to ensure that all statutory approvals are obtained with progress of
project.

xi) Present physical & financial status of project, if any

The trust is to set up a pharmacy college in Amarsen, Ahmedabad. The corpus fund and donations
have been tied up and the list of the donors and their commitments is being enclosed herewith. As
regards to the tie up for the remaining portion as unsecured loans, the trust being well known, the tie
up will not pause problem.

xii) Implementation schedule

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

Activity Expected date of Expected date of

Commencement Completion
Project Planning, preparation of project report, filing of loan Done
application with Banks
Order for site development & Civil Work, Structural Fabrication Done
of SMS shed
Placing order for machinery Done
Applying for power connection Obtained
Delivery of Equipments Done
Installation of machinery 5.6.2010
Appointment of teaching and non teaching staff 30.6.2010
Commissioning 15.6.2010
Starting of Teaching 1.8.2010
Commercial production 1.8.2010

xiii) Draw Down Schedule

xiv)
M/S. NANDI APPARELS PRIVATE LIMITED

Interest calculation Statement

Quarter
Sr. ended
   
   

1 Dec-10

2 Mar-11

3 Jun-11

4 Sep-11

5 Dec-11

6 Mar-12

7 Jun-12

8 Sep-12

9 Dec-12

10 Mar-13

11 Jun-13

12 Sep-13

13 Dec-13

14 Mar-14

15 Jun-14
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

16 Sep-14

17 Dec-14

18 Mar-15

19 Jun-15

20 Sep-15

21 Dec-15

22 Mar-16
   

  Total…

xv) Proposed repayment schedule

Scheduled date of Completion of Project

Commercial Operations Date (COD) December 2010
Implementation period (in months) Nil
Moratorium (in months) Nil
Repayment period in months/quarters/ Half year Quarters
No. of installment 20
Starting Date june 2011
End Date (Last installment) March 2013
Door to door tenor 20 quarterly installments

13. Pricing
Facilit Existing Proposed Applicable rate
y
TL NA BPLR+1.50%+tp BPLR+1.50%+tp i.e.
i.e. 13.00% 13.00%
Rate of Interest
CC NA BPLR+1.50% i.e. BPLR+1.50% i.e.
12.50% 12.50%
Upfront Fee NA As Applicable @ 1.25% of TL plus
ST
Processing Fees NA As Applicable @ Rs.225/- per lac
plus ST
Other charges, if NA As Applicable As per Bank’s
any Schedule

(a) Justification

Applicable ROI and Other Charges as per bank’ schedule have been proposed.

(b) ROI/other charges stipulated by other participating banks, if applicable

NA

14. Other Issues not discussed elsewhere

NA

15. Strengths & Weakness with mitigants, if any

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

Strength

The trustees are fairly knowledgeable and resourceful individuals, so that, through their professional
prowess, the college will not face any major issues

The trustees are successfully running 11 institutions providing quality education from primary to higher
secondary and post graduate colleges in the science stream. This shows that the trustees have a very
effective control over the administrative procedures and overall management of all the institutions.

The college is located in Amarsen which is hardly 18 kilometers from Ahmedabad. This close proximity
to ahmedabad will aid the trust to recruit highly skilled faculty and this in turn will provide the college
with the reputation that the trustees strive to achieve.

The Trust shall be running pharmacy college and shall generate considerable amount of revenues in
the form of FEES and shall register year by year visible growth.

Weakness
Nothing as such.

Mitigation:

16. Recommendations:

In view of above the proposal is recommended

 Fresh sanction of Term Loan of Rs. 50.00 lacs for setting up a new new manufacturing
unit.

SUBJECT TO FOLLOWING ADDITIONAL STIPULATIONS

1) The company to bring in the margin for term loan upfront.

2) NEC in respect of Land & Building and other various properties offered as collateral security are
to be obtained from bank’s approved advocate before release of facilities.
3) Valid Equitable Mortgages, Charge over Block Assets, to be got done before release of facilities
4) Unit to obtain permission for power connection before disbursement of facilities

Detailed Terms and Conditions are as per Appendix– I.

MANAGER

Sanction
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

APPENDIX – I

Detailed Terms and Conditions of Sanction

Account: ___________________________________

FACILITY NO. 1

1. Nature : Term Loan

2. Amount : Rs. 40.00 lacs (Rs. Forty Lacs only)

By fresh sanction

3. Margin :

4. Interest : BPLR +1.50%+ 0.50% i.e. 13.00% presently as applicable to ‘BB’ rated Medium
Enterprises subject to change time to time as per HO/RBI Guidelines and Credit Risk Rating.

5. Security :First Charge over New plant and machinery of the trust financed by the bank.

6 .Insurance : The borrower shall get the above assets insured against all risks at their own cost
with usual bank clause. A copy of the insurance policy will be kept on bank's records also.

7. Disbursement :

a) The payment shall be made directly to the suppliers as far as possible. Original
bills/cash memos in the joint names of bank and the trust for all the fixed assets/machinery financed by
bank shall be submitted by the borrower and to be placed on bank’s record. TL will be released in
stages as per physical progress of the project.

b) Borrowers/Lenders’ Engineers shall submit Implementation schedule which should match

with the appraisal note and Progress Report be submitted to keep apprise the Bank with the progress
of the project and to satisfy the bank’s officials about end use of funds and timely implementation of
the project within the approval.

c) The progress in implementation of the project will be monitored/ reviewed by the Bank on periodic
basis and necessary corrective steps will be got initiated, if required, from time to time specially in case
of time and cost run-overs. The borrower shall facilitate the bank for compliance of the above.

Draw Down Schedule

 
M/S. NANDI APPARELS PRIVATE LIMITED

Rate of
Interest calculation Statement Rs. 40.00 Int. : 12.50%

Openin
Quarter g Disbursemen Repaymen Closing Yearly
Sr. ended Balance t t Interest Balance Interest
               
               
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

1 Dec-10   40.00   1.25 40.00  

2 Mar-11 40.00 -   1.25 40.00 2.50

3 Jun-11 40.00 - 2.00 1.25 38.00  

4 Sep-11 38.00 - 2.00 1.19 36.00  

5 Dec-11 36.00 - 2.00 1.13 34.00  

6 Mar-12 34.00 - 2.00 1.06 32.00 4.63

7 Jun-12 32.00 - 2.00 1.00 30.00  

8 Sep-12 30.00 - 2.00 0.94 28.00  

9 Dec-12 28.00 - 2.00 0.88 26.00  

10 Mar-13 26.00 - 2.00 0.81 24.00 3.63

11 Jun-13 24.00 - 2.00 0.75 22.00  

12 Sep-13 22.00 - 2.00 0.69 20.00  

13 Dec-13 20.00 - 2.00 0.63 18.00  

14 Mar-14 18.00 - 2.00 0.56 16.00 2.63

15 Jun-14 16.00 - 2.00 0.50 14.00  

16 Sep-14 14.00 - 2.00 0.44 12.00  

17 Dec-14 12.00 - 2.00 0.38 10.00  

18 Mar-15 10.00 - 2.00 0.31 8.00 1.63

19 Jun-15 8.00 - 2.00 0.25 6.00  

20 Sep-15 6.00 - 2.00 0.19 4.00  

21 Dec-15 4.00 - 2.00 0.13 2.00  

22 Mar-16 2.00 - 2.00 0.06 - 0.63

               

  Total…   40.00 40.00 15.63   15.63

- Repayment of Term Loan of Rs. 225.00 lacs to be made in 20 quarterly installments of Rs. 11.25
lacs. First Installment to start from the first quarter of 2011-12. Interest to be served as & when levied.

Repayment default:
Penal interest @ 2% over and above the normal rate to be recovered for the amount/period of
default.
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

8. Bank’s name plate, evidencing hypothecation of security/asset to be prominently, displayed

where the securities charged to the bank are kept.

9. Escalations : The borrower shall meet such costs, if any, from its own sources and shall not ask for
any additional term loan from the bank.

12. The unsecured loans shall be subordinated to our Term Loan.

13. With progress of project, it should be ensured that all necessary statutory and other approvals/
permissions including from Pollution Control Board, have been obtained by the trust.

14. Borrower to undertake to meet any cost over run in the project (irrespective of reasons) from
its own long term sources.

15. Pre payment penalty @ 2% will be levied if Term Loan is repaid by taking
loan from other banks/FI as per LA Cir. 21/08.

OVERALL TERMS AND CONDITIONS (FOR ALL THE FACILITIES):

1. Total Outstanding to not exceed Rs. 225.00 lakh against the term loan.

2. The borrower shall deal with our bank exclusively, shall not open current account/s with any other bank
without our prior permission and shall route all sale transactions through accounts with our bank. The
borrower's entire business relating to their activity including deposit, bills, foreign exchange, merchant
banking etc. should be restricted only to our bank.

3.The Bank shall charge penal interest under the following circumstances:
a. Default in repayment of Term Loans/DPG installments.
b. Non-submission/delayed submission of PMS information after 10 days from the close of the quarter
concerned.
c. Non/delayed submission of renewal proposal with audited Balance Sheet, CMA data and statement of
assets and liabilities of the guarantors after 9 months from the date of sanction.
d. Default in observance of borrowing covenants/terms and conditions of the sanction.
e. Any other eventuality/situation to be decided by the bank.

4. Collateral security:

Security Description Area in Value Basis for Date Whether

Sq M or Last Present Realisable valuatio existing/
Sq mtrs sanct book value n fresh
ion value
NIL
Total

Personal /Corporate Guarantee

(Rs. in Lakh)
Name of Guarantor Relationshi Net Worth Immovable property Date of confidential
p with (Rs. In Lacs) report
borrower
Prev. Present Prev. Present Prev. Present
As at As at

Mr. Mohanlal Goyal Father

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

5. No commission to be paid by the borrowers to the guarantors for guaranteeing the facilities sanctioned
by the Bank to the borrowers. An undertaking to this effect is to be obtained from the borrowers as well
as guarantors.

6. The borrower to furnish to the branch the required financial information, on the prescribed Proforma,
within 10 days/ or within the specified period, as specifically permitted, to enable the branch to submit
quarterly review sheet or PMS (wherever applicable) to the Bank’s higher office.

7. Borrower shall pay processing fee, upfront fee, Inter SOL Charges, documentation charges, inspection
charges, commitment charges, amendment in Terms & Conditions Charges, limit allocation charges
and other charges as per Bank’s Scheduled Charges.

8. The borrower shall not undertake expansion/diversification/modernization (except those investments

accepted in Project Report) without obtaining prior permission of the bank and without proper tie-up of
funds. Similarly, no investment shall be made in associate/allied/ group concerns without prior bank
permission.

9. Friends/relatives from whom the unsecured long-term loans have been raised, the borrower shall
undertake not to allow their withdrawal without prior permission of the bank.

10. Monies brought in by principal shareholders/directors will not be allowed to be withdrawn without the
Bank's permission.

11. The Bank or its authorized officials or other representatives will have the right to carry out periodical
inspection or examine the books of accounts of the borrower and to have their factories/offices/assets
inspected from time to time by officers of the Bank and/or outside consultants and the expenses
incurred by the Bank in this regard will be borne by the borrower.

12. The Bank shall have the right to withdraw or modify all/any of the sanctioned conditions or stipulate
fresh conditions, under intimation to the borrower. Borrower shall undertake to give their acceptance to
these stipulations.

13. Bank's charge over primary/collateral securities wherever applicable to be got registered/modified with
ROC within the stipulated period of 30 days, as per requirements of Companies Act, and certificate of
registration of charge to be obtained and kept on record.

Search Report shall be obtained every year and/or on each registration / modification of charge and
cost in this respect to be borne by the trust.

14. In case the trust commits default in the repayment of loan/advance or in the payment of interest
thereon or any of the agreed installments of the loan on due date, the bank, CIBIL and/or Reserve
Bank of India will have an unqualified right to disclose or publish the names of the trust and its
directors as defaulters in such manner and through such medium as the bank/RBI in their absolute
discretion may think fit.

(Consent of borrowers and guarantors in terms of LA cir. No.100/2002 be obtained).

15. A stamped undertaking to be submitted in favor of the bank to the following effect that during the
currency of bank’s credit facilities, the trust/trust shall not without our permission in writing:

 Effect any adverse changes in trust’s/trust’s capital structure.

 Formulate any scheme of amalgamation or merger or reconstruction.
 Implement any scheme of expansion on diversification or capital expenditure except normal
replacements indicated in funds flow statement submitted to and approved by the bank.
 Enter into any borrowing or non borrowing arrangements either secured or unsecured with any other
bank, Financial Institution, trust, trust or otherwise or accept deposits in excess of the limits laid down
by Reserve Bank of India.
 Invest by way of share capital or lent or advance funds to or place deposits with any other trust/trust,
concern including group companies/associates/persons. Normal trade credit or security deposit in the
normal course of business or advance to employees can, however, be extended.
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

 Undertake guarantee obligations on behalf of any other trust/trust/person.

 Declare dividend for any year except out of profits relating to that year after meeting all the financial
commitments to the bank and making all due and necessary provisions.
 Make any drastic change(s) in the management set up.
 Approach capital market for mobilising additional resources either in the form of debts or equity.
 Sell or dispose off or create security or encumbrances on the assets charged to the bank in favour of
any other bank, Financial Institutions, trust, trust, individual.
 Repay moneys brought in by the promoters, partners, directors, share holders, their relatives and
friends in the business of the trust/trust by way of deposits/loans/share application money etc.
 Avail credit facilities/loan from outside the bank/consortium arrangement without their knowledge and
permission.

16. Margins/rates of Interest are subject to revision from time to time at the sole discretion of the Bank.

17. The trust to execute necessary security documents duly supported by Board resolution and to get the
charge registered within the time limit. Documents will be drafted/vetted by banks' counsels at
borrower's cost.

(Certificate from bank's approved counsel contrusting proper and valid execution of documents /
securities to be obtained by the bank to be kept on record)

18. Branch to ensure compliance of instructions in terms of LA Cir. No.58/06 dated 01.06.2006 regarding
Legal Compliance Certificate to be submitted to CO.

19. The Commitment charges of 1% p.a. shall also be levied on quarterly basis in case of partly drawn
Term loan irrespective of the fact that whether the borrower has executed the necessary documents
containing unconditional cancelable limit clause or not. The commitment charges on undrawn portion
of Term Loan shall be levied as under:

- Where the draw down is made in stages as approved by the bank, the commitment charges
shall be computed on the undrawn portion reckoned with respect to the relative draw down limit fixed
for the period and not with reference to the total limit.
- In case of partly drawn term loans where no specific draw down schedule has been
prescribed/borrower has not adhered to the specific draw down schedule, the commitment charges @
1% p.a. shall be levied on entire undrawn portion.

20. 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.

21. All Other Terms & Conditions of such types of accounts including terms & conditions stipulated by
Lead Bank/ Member Banks to be strictly complied with.

22. The trust will submit an undertaking that it has obtained all the permissions and approval ( statutory
and others wise ) for carrying out the activity and will keep them in force at all the times.

23. Borrower shall give acceptance of terms & conditions as per letter of sanction, which will form
part of documentation and be placed on bank records.

Manager Asst. Gen Manager

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

APPENDIX - II

(a) Details of Associate/ Allied/ Group concerns and the facilities sanctioned to them (Item No. 6 of
the Note).

Past financials of the associate companies of the promoters: (Rs. In Lacs)

  EST PROJ PROJ PROJ PROJ PROJ

  2011 2012 2013 2014 2015 2016
Net Sales 56.64 189.14 199.86 211.65 223.44 235.23
Gross Profits 22.06 90.79 95.36 101.00 106.64 112.29
Net Profits 2.61 11.43 15.18 18.40 21.08 23.24
Share Capital 23.12 23.12 23.12 23.12 23.12 23.12
Add- reserves 1.75 8.41 17.08 27.40 36.53 44.60
Less- Intangible 0.00 0.00 0.00 0.00 0.00 0.00
TNW 24.87 31.53 40.20 50.53 59.65 67.72
Net Fixed Assets 61.80 52.53 49.65 42.95 37.26 32.42
Debt/Equity 3.42 2.38 1.62 1.09 0.75 0.52
Current Ratio 1.30 1.47 1.51 1.71 1.85 1.30
GP/Sales 38.95 48.00 47.71 47.72 47.73 47.74
NP/Sales 4.61 6.04 7.60 8.69 9.44 9.88
ICR 1.35 3.48 6.08 10.65 17.47 51.57
CATR 29.02 14.71 4.61 5.66 4.88 3.09

Finance availed by the Associate companies/ firms from various Banks / Financial
Institutions:

Name of Bank Name of the Nature of Sanctioned

Borrower Limit Limit
NIL

(b) Comments on conduct of these accounts with our bank/other banks

CR to be obtained

(c) Comments on adverse Financial Indicators, if any

Nil

Manager
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

APPENDIX– III

(A) Review of the Account

NA, being a fresh case

(B) Summary of serious outstanding irregularities pointed out by

Bank’s Inspectors
Concurrent Auditors
Credit Audit & Review Division (CA&RD)
RBI Inspectors
Statutory Auditors NA, being a fresh case
observations of Stock Audit Report
Comment on Preventive Monitoring Score Trends
Status of rectification of these irregularities

Manager
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

APPENDIX– IV

i. Detailed Industry Scenario (As per latest updates of the rating agency approved by the bank for
advising the industry rating)

Pharmacy is the health profession that links the health sciences with the chemical sciences and it is
charged with ensuring the safe and effective use of pharmaceutical drugs

The scope of pharmacy practice includes more traditional roles such as compounding and dispensing
medications, and it also includes more modern services related to health care, including clinical
services, reviewing medications for safety and efficacy, and providing drug information. Pharmacists,
therefore, are the experts on drug therapy and are the primary health professionals who optimize
medication use to provide patients with positive health outcomes .

Pharmacy education in India traditionally has been industry and product oriented. In contrast to the situation in
developed nations, graduate pharmacists prefer placements in the pharmaceutical industry. To practice as a
pharmacist in India, one needs at least a diploma in pharmacy, which is awarded after only 2 years and 3 months
of pharmacy studies. These diploma-trained pharmacists are the mainstay of pharmacy practice.

Requirement of Graduate in B Pharma

In our day-to-day life pharmacists play an important role, as they are very much into research and
manufacture of drugs. As a pharmacist. Thus, pharmacy is closely associated with scientific study.

Pharmacy as a career option has always been in demand. India being a huge nation of about a billion
populations, diseases both minor and major has been a curse upon the weak and the poor. In the
previous centuries and almost till the middle of the 20th century killer diseases such as acute
respiratory infections, diarrhoea, depression, tuberculosis, measles, anaemia etc have been affecting
thousands every year. With the advancements in medical science most of these diseases have been
brought under control, with the help of high powerful antibiotics and other life saving drugs. This is
where pharmacy steps in to fill the void.

Placement & Prospects:

Pharmacists study the chemistry of drugs, their origin, procedures for drug development, their
preparation, dispensing, their effects and eventual use for prevention and treatment of disease. The
complexity of drug therapy and the dangers of drug abuse has brought into focus the need of
pharmacists' special skills to maintain a rational approach in the realm of drug treatments

Those opting for D. Pharm. are employed in the above organizations at a lower level, and they also
find vast avenues of employment in pharmacies and medical shops, for which it is compulsory by law
to employ a pharmacist.

Pharmacists work in four areas:

1. Hospital pharmacist – The tasks:Procure, stock, prepare and dispense medicines, drugs and
other medical accessories. Undertake responsibility for stock control, storage, placing orders, labelling
and financial budgeting and account-keeping for the dispensary. The pharmacists are expected to
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

meet patients, doctors and nurses to discuss the supply of medicines and the appropriate form of
drugs for administration

2. Retail pharmacists – The tasks:In medical retail stores, the pharmacist prepares and
dispenses drugs on prescription to the general consumer With the growing availability of pre-packaged
doses, the pharmacist monitors the drug sale on the basis of prescriptions and dosages, and gives
over the counter advice on how to use prescribed drugs

In the retail sector, pharmacists run chemist's shops as medical representatives, they inform and
educate the medical practitioners of the potential uses of the drug or health product and its
administration along with side effects or precautions for its use. The job entails regular visits to medical
practitioners, hospitals, clinics, nursing homes, health centres. There is usually a lot of touring to be
done.

3. Industrial pharmacists – While most firms are involved in the production of preformulated
preparations, a growing number of firms are developing new formulations through autonomous
research work. Industrial pharmacists carry out clinical trials, where drugs are tested for safety and
effectiveness work in research and development to develop new formulations the production job
entails management and supervision of the production process, packaging, storage and delivery work
in marketing, sales and quality control.

4. Research pharmacists - Research pharmacists are engaged in research activities in

pharmaceutical firms, research organizations and laboratories.

For Diploma in Pharmacy

i. As a Pharmacist in Govt/Semi Govt/Private Hospitals.

ii. They can start their own Medical Store.

For Bachelor in Pharmacy

i. As a Medical representative or a medical detailing man.

ii. Marketing Managers or a Sales Manager.
iii. Drug Inspectors.
iv. Drug Controllers.
v. Graduate Pharmacist
vi. Chief Pharmacist.
vii. As Lecturers for D.Pharm and B.Pharm Colleges etc.

Pharmacy education in India, both at the B Pharma and M Pharma levels, is taught as an industry- and
product-oriented profession with a focus on the basic sciences. However, pharmacy education in India
continues to be one of the last options for students aspiring to a university degree. The pharmacists
with a B Pharma or M Pharma generally seek avenues other than pharmacy practice.

These pharmacists prefer placements in production, regulatory affairs, management and/or quality
assurance, and marketing with the pharmaceutical industry. Only small numbers of these graduates
and postgraduates opt to work in community and institutional pharmacies. In India, diploma holders
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

(DPharm holders) are practicing pharmacists in the global sense as they engage in community or
institution pharmacy practice.

Government Rules:

The AICTE is also responsible for quality assurance of pharmacy programs (DPharm, BPharm and
MPharm) through accreditation by National Board of Accreditation (NBA) constituted by the AICTE.
Accreditation is voluntary and also a stringent process.

ii. Comments on :-

1. Management

Bai Jivkor lallubhai trust is a Public Charitable Trust, under Indian charitable Trust Act, created by the
wealthy, matured, dedicated and experienced MANAGING TRUSTEE SHRI MANUBHAI SHETH,
aged around 67 years, residing at Maninagar, AHMEDABAD.

The planning and operational management is centralized at its main office situated
at BAI JIVKOR LALLUBHAI MARG, RAMBAG, MANINAGAR AHMEDABAD-380 008.
All administrative activities related to the meeting with the requirements of the college-
institutional approving authorities, for live communication with them and to meet with the banking
matters are carried out at the said place for effective results. Trust has following Trustees, involved in
the fulltime operational activities of the Trust.

BOARD OF TRUSTEES

Trust has a well-defined administrative staff to support the Board of Trustees in their mission to do
educational and the object related activities.

The Managing Trustee after the creation of a Trust has been providing the rise in the corpus fund to
continue the operational process of object. He, along with other Trustees is adding an economic
strength of the trust by ideally managing affairs of the Trust.

2. Quality of Management (Including Corporate Governance)

All the trustees are well experienced in the line of activity since all of them have received good
experience while handling the other college and school.

3. Succession Planning

4. Production : Not applicable

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

Capacity Utilisation:

The Trust has considered 100% student capacity in its first year of operation because in that area there is
no other pharmacy college and there is a huge demand of medical graduate because of increase in the
various kind of disease and Gujarat region is considered as a pharma hub of India since 70% of the
pharmaceutical products are manufactured in Gujarat, so 100% student capacity can be utilized.

Manpower:

It is a educational trust so manpower in the sense of teacher and other administrative staff can be
available because the said trust is being engaged in this line since many years so manpower is easily
available.

5. Marketing

6. General (details such as qualification/experience of directors/ promoters, main products,

capacity, major brands, geographical market for products and major buyers expertise like
technology, brand, marketing, etc.)

Details such as qualification/experience of directors

The trust is being promoted by SHRI MANUBHAI SHETH & Other trustees .
(1) SHRI __________________
Managing Trustee, SHRI ____________________, aged around 67 years, residing at Maninagar,
AHMEDABAD is a wealthy businessman and full time dedicated to activities related to the education and
the TRUST, having successfully managed for the last 35 years. He, after experiencing the difficulty during
the process of providing effective education to his co-student friends decided to Strengthen the working of
the Trust to provide easy education parting facilities at the reasonable cost.

In this noble mission of creating an ideal educational facility in the rural and interior location, being
conceptualized by the developer of the Trust, SHRI _____________________________and all his fellow
TRUSTEES were extended complete support by all related staff and well wishers. All Trustees even since
after joining the trust as trustee have contributed the most valuable effort to this mission. All Trustees
being active participants in the trust as active Administrative members are highly qualified and
experienced managers and administrators. They are functioning with the highest possible degree of
dedication for the successful performance of the trust to ultimately achieve the targeted goal of the creator
of the trust.

(C) Borrowers' diversification, expansion, modernisation programme

The Trust is setting up a new pharmacy college.

Manager Asst. Gen. Manager

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

APPENDIX– VI

Brief explanation for each major individual item of cost of Project with present status along
with comments on the reasonableness/ competitiveness

Land :

The trust has acquired land admeasuring 18832 square meters situated at Village Amarsan Ahmedabad.
The above land is required to be develop. The total land & Land Developmen cost comes to Rs. 58.18
Lacs, which is to be financed through Trust funds and Donation.

Building:

At the current rate of the progress made in creation of various educational studies and University affiliated
Graduation Courses, the trust is in the final process of completing already constructed well-equipped
College Building with all required facilities and attachments, refreshing Building to accommodate at least
200 students, well defined canteen and rest room, exhaustive Library with well furnished Reading Room,
Administrative block covering trustee’s room, principal’s chamber, professors’ room, exhaustive water and
sanitation blocks, in total consisting of 2077 Sq. Mtrs. area at the approximate cost of Rs. 397.78 LACS.

The trust, to accommodate total 240 students covering all for years’ course shall require further
constructed area in future.

Plant & Machinery:

LIST OF EXISTING PLANT & MACHINERY

Sr.
No. DESCRIPTION MAKE QNTY CAP. SHIFT

Manager Asst. Gen. Manager

APPENDIX– VIA
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

Comments on all major technical aspects like locational advantage, Technology/manufacturing

process, power, manpower, utilities, transportation, etc.

Technology :

Manufacturing Process: Not Applicable

Quality Assurance: Not Applicable

Capacity Utilisation:

The Trust has considered 100% student capacity in its first year of operation because in that area there is
no other pharmacy college and there is a huge demand of medical graduate because of increase in the
various kind of disease and Gujarat region is considered as a pharma hub of India since 70% of the
pharmaceutical products are manufactured in Gujarat, so 100% student capacity can be utilized.

Manpower:

It is an educational trust so manpower in the sense of teacher and other administrative staff can be
available because the said trust is being engaged in this line since many years so manpower is easily
available. The place of the college, AMARSAN is situated hardly 20 K.M. from the city of AHMEDABAD
and is very near to AHEMDABAD town. The entire area is education prone area and hence TEACHING
AND NON-TEACHING STAFF shall easily be available even for PHARMACY COLLEGE. At present also,
the college has sufficient staff strength in the area of non-teaching, working with full dedication and quality.

Power:

The college complex have obtained power connection to provide electricity in Education process,
Laboratory work, and Engineering Workshop process and in future, the Hostel accommodation. However
the trust decided to acquire and install small sized DIESEL GENERATING SET as stand by arrangement.

Water

The said trust has already obtained water connection from Ahmedabad Municipal Corporation.

Manager Asst. Gen. Manager

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

APPENDIX– VII

A. Project on standalone basis and Company as a whole

(In Lakh)
Particular Year(March) 2011 2012 2013 2014 2015 2016
Installed capacity 60 150 270 420 420 420
Capacity Utilization (In Seats) 100% 100% 100% 100% 100% 100%
Net sales(Fees Received) (in
Rs.) 66.45 148.75 231.00 315.25 315.25 315.25

A. i DSCR
M/S. NANDI APPARELS PRIVATE LIMITED
   
               

DSCR CALCULATION

Average
  2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 DSCR

  Estm. Proj. Proj. Proj. Proj. Proj.  

               

Net Profit 2.31 7.32 8.75 9.66 10.84 11.61 50.48

Depreciation 5.01 9.27 7.88 6.70 5.69 4.84 39.39

               
CASH ACCRUALS
[A] 7.32 16.59 16.63 16.36 16.53 16.45 89.87

Add Interest on TL 2.50 4.63 3.63 2.63 1.63 0.63 15.63

SUB TOTAL - I [B] 9.82 21.21 20.25 18.99 18.16 17.07 105.50

TL instalment - 8.00 8.00 8.00 8.00 8.00 40.00

Interest on TL 2.50 4.63 3.63 2.63 1.63 0.63 15.63

SUB TOTAL - [C] 2.50 12.63 11.63 10.63 9.63 8.63 55.63

DSCR 3.93 1.68 1.74 1.79 1.89 1.98 1.90

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

B Projected Profitability Statement

PARTICULARS                
    ESTM PROJ PROJ PROJ PROJ PROJ
               
2012- 2013- 2014-
       
2010-11 2011-12 13 14 15 2015-16
A. INCOME              
               
Sales & Job work Income   63.09 188.81 200.24 212.03 223.82 235.61
               
               
NET
  INCOME   63.09 188.81 200.24 212.03 223.82 235.61
    0.21 0.21 0.21 0.21 0.21 0.21
B. EXPENDITURE              
Raw Material Consumed   13.82 39.31 41.77 44.23 46.68 49.14
Consumables & Accessories   17.72 50.40 53.55 56.70 59.85 63.00
Washing Charges   3.04 8.64 9.18 9.72 10.26 10.80
Power & Fuel   1.51 4.84 5.14 5.44 5.75 6.05
Transportation   0.50 1.10 1.21 1.33 1.46 1.61
Salaries and wages   15.24 48.01 52.81 58.09 62.73 67.75
Repairs & Maintanance   0.00 1.80 1.98 2.18 2.40 2.64
Other Mfg
Expenses   1.00 3.00 3.30 3.63 3.99 4.39
Adm. and Seling Expense   0.50 1.20 1.26 1.32 1.39 1.46
Factory Rent   1.20 3.02 3.18 3.33 3.50 3.68
Interest   3.33 7.13 6.13 5.13 4.13 3.13
Depreciation   5.01 9.27 7.88 6.70 5.69 4.84
TOTAL EXPENDITURE   62.87 177.72 187.38 197.79 207.83 218.48
               
Add: Opening Stock of FG   0.00 3.23 3.06 3.25 3.44 3.63
Less: Closing Stock of FG   3.23 3.06 3.25 3.44 3.63 3.83
               
COST OF SALES   59.65 177.88 187.18 197.60 207.64 218.29
        6.52% 6.80% 7.23% 7.35%
E. Net Profit   3.45 10.92 13.05 14.43 16.18 17.32
               
H. Provision for taxation   1.14 3.61 4.31 4.76 5.34 5.72
               
I. Profit after tax   2.31 7.32 8.75 9.66 10.84 11.61
    3.66% 3.88% 4.37% 4.56% 4.84% 4.93%
F. Less: Director Remuneration   0.00 1.00 1.50 4.00 5.00 6.00
               
G. Profit Transferred to B/S   2.31 6.32 7.25 5.66 5.84 5.61
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

C Projected Balance Sheet

PROJECTED BALANCE SHEET
PARTICULARS                
    ESTM PROJ PROJ PROJ PROJ PROJ
    (Rs. In lacs)
        2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
A. LIABILITIES              
1. Share Capital 30.72 30.72 30.72 30.72 30.72 30.72
2. Surplus in Profit & Loss A/c 2.31 8.63 15.87 21.54 27.38 32.98
3. Bank borrowing for W.C. 20.00 20.00 20.00 20.00 20.00 20.00
4. Term Loan 40.00 32.00 24.00 16.00 8.00 0.00
5. Unsecured Loans   10.00 10.00 10.00 10.00 10.00 10.00
    TOTAL   103.03 101.35 100.59 98.26 96.10 93.70
B. ASSETS            
1. Fixed Assets            
Gross Block 66.81 66.81 71.81 71.81 71.81 71.81
Depreciation Reserve 5.01 14.28 22.16 28.86 34.55 39.39
Net Block 61.80 52.53 49.65 42.95 37.26 32.42
           
2. Investments 2.50 2.50 2.50 2.50 2.50 2.50
3. Current Assets Loans &
advances            
Debtors 31.55 31.47 33.37 35.34 37.30 39.27
Inventories 6.68 6.34 6.73 7.13 7.52 7.92
Cash and Bank Balance 3.32 8.78 8.34 10.04 10.92 10.71
Other Current Assets 1.50 3.00 3.50 4.00 4.50 5.00
43.05 49.58 51.95 56.51 60.25 62.90
           
4. Less: Current Liabilities and
Provisions            
Sundry Creditors for Goods 4.32 3.26 3.50 3.70 3.91 4.11
Sundry Creditors for Machinery 0.00 0.00 0.00 0.00 0.00 0.00
Advance from Customers 0.00 0.00 0.00 0.00 0.00 0.00
Other Liabilities 0.00 0.00 0.00 0.00 0.00 0.00
4.32 3.26 3.50 3.70 3.91 4.11
5. Net Current Assets 38.73 46.32 48.45 52.80 56.34 58.79
           
6. Miscellaneous Expenditure 0.00 0.00 0.00 0.00 0.00 0.00
           
  TOTAL     103.03 101.35 100.60 98.26 96.10 93.71
  0.00 0.00 0.00 0.00 0.00 0.00
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

D Projected Cash Flow Statement

PROJ PROJ PROJ PROJ PROJ
2011- 2012- 2013- 2014- 2015-
PARTICULARS 12 13 14 15 16
SOURCES
Profit before tax (item 10 of
Part A of form II) 10.92 13.05 14.43 16.18 17.32
Add Depreciation (item 4 vii
of part A of Form II) 9.27 7.88 6.70 5.69 4.84
Misc. Exp. W/off 0.00 0.00 0.00 0.00 0.00

Gross Funds generated 20.19 20.93 21.12 21.87 22.16

Less taxes paid/payable(relating to

the year) 3.61 4.31 4.76 5.34 5.72

less dividend paid/payable (relating 1.00 1.50 4.00 5.00 6.00

to the yeare)/Tr.to Gen.Res.

Less: Deferred Revenue

Exp.w/off Misc. Exp. W/off 0.00 0.00 0.00 0.00 0.00

less Issue of Bonus Share 0.00 0.00 0.00 0.00 0.00

less Deferred Tax Liability Director's Remuneration 0.00 0.00 0.00 0.00 0.00
Sub-total - net funds
A) generated 15.59 15.13 12.36 11.53 10.45

Increase in capital 0.00 0.00 0.00 0.00 0.00

Increase in Share Appl. Money 0.00 0.00 0.00 0.00 0.00

Increase in Depreciation Reserve 0.00 0.00 0.00 0.00 0.00

(Receipt of Subsidy)

Increase in Term Loans/debentures/ 0.00 0.00 0.00 0.00 0.00

Deferred payment liabilities

Increase in other term liabilities 0.00 0.00 0.00 0.00 0.00

Decrease in Fixed Assets 0.00 0.00 0.00 0.00 0.00

Decrease in inter-corporate invest-

ments and advances 0.00 0.00 0.00 0.00 0.00

Decrease in other non-current assets 0.00 0.00 0.00 0.00 0.00

B) sub - total 0.00 0.00 0.00 0.00 0.00

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

Increase in short-term bank borrowings

(including bills purchased and
discounted by bankers) 0.00 0.00 0.00 0.00 0.00

Increase in other current liabilities 0.00 0.24 0.20 0.20 0.00

Decrease in inventory 0.35 0.00 0.00 0.00 0.00

Decrease in Receivables (including

bills purchased and discounted by
bankers) 0.08 0.00 0.00 0.00 0.00

Decrease in other current assets

(including cash and bank balances) 0.00 0.00 0.00 0.00 0.00

C) Sub total 0.42 0.24 0.20 0.20 0.00

Total funds available (A+B+C) 16.01 15.36 12.57 11.74 10.45

  PROJ PROJ PROJ PROJ PROJ

2011- 2012- 2013- 2014- 2015-
PARTICULARS   12 13 14 15 16

USES
Increase in fixed asets 0.00 5.00 0.00 0.00 0.00

Decrease in Share Capital 0.00 0.00 0.00 0.00 0.00

Decrease in Share Appl.Money 0.00 0.00 0.00 0.00 0.00

Decrease in Term Loan/debentures/ 8.00 8.00 8.00 8.00 0.00

Deferred payment liabilities

Decrease in other term liabilities 0.00 0.00 0.00 0.00 0.00

Decrease in Depreciation Reserve 0.00 0.00 0.00 0.00 0.00

(Sale of Assest)

Increase in Inter-corporate
invenstments and advances 0.00 0.00 0.00 0.00 0.00

Increase in Other non-current asset 0.00 0.00 0.00 0.00 0.00

D) Sub total 8.00 13.00 8.00 8.00 0.00

 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

Decrease in short term bank borrow- 0.00 0.00 0.00 0.00 0.00
ing (including bills purchased and
discounted by bankers)

Decrease in other current liabilities 1.06 0.00 0.00 0.00 7.80

Increase in inventory 0.00 0.40 0.40 0.40 0.40

Increase in receivables 0.00 1.91 1.97 1.97 1.97

Increase in other current assets

(incl.cash & bank bal.) 6.96 0.06 2.20 1.38 0.29

E) Sub total 8.02 2.36 4.56 3.74 10.45

Total funds used (D + E) 16.02 15.36 12.56 11.74 10.45

Manager Asst. Gen. Manager

APPENDIX– V

a) Justification for working capital sanction: N. A.

(Rs. Lacs)
Sales (Fees Received) 63.09 188.81 200.24 212.03 223.82 235.61
Total Sales 63.09 188.81 200.24 212.03 223.82 235.61

ii)     Holding Period (Months) with justification for acceptance

Not applicable as it is an educational institution.

Comments on accepted level of holdings:- N.A.

Raw Materials
N.A.
Finished Goods
N.A.
 PUNJAB NATIONAL BANK
Vatva, Ahmedabad

Receivables:

Creditors:

iii) Assessment of Fund Based Limits

Chargeable Current Assets: Not Applicable

Other Current Assets: Rs. Lacs

Particulars 31.03.11 31.03.12 Accepted for
Estimate Projected assessment 31.03.13
Cash & Bank Balance
Other Current Assets
Consumable Stock
Total

Other Current Liabilities: Rs. lacs

Particulars 31.03.10 31.03.11 Accepted for assessment
Estimat Projected 31.03.13
e
Creditors- Trade
(Days purchases)
Other current liability
Total

Justification:
The other current assets comprising of advances for raw material, advance payment of taxes and
other normal business advances. The current liability is the repayment obligation of the term loan
which is due within one year. The projected other current assets and liability are in the tune with
industry norms and has been accepted for assessment.

NWC & Current Ratio

Rs. Crore
Particulars 31.03.10 31.03.11 Accepted for assessment
Estimate Projected 31.03.13
NWC
Current Ratio

The company has estimated the current ratio at the level of 1.41 which is above the benchmark level of
bank and hence the same is accepted for assessment

Permissible Bank Finance Rs. In Lacs

Not Applicable
PUNJAB NATIONAL BANK
Vatva, Ahmedabad