BANK OF BARODA

(Head Office : Mandvi, Baroda)

Note to Branch Manager, Ratu, Region Ranchi

PROPOSALS FOR ADVANCES

Name of the Account Mr. ANUP ORAON

Branch                                             RATU
Region  RANCHI

SECTION I: DETAILS OF THE PROPOSAL

1.0) Basic Data:

Asset Classification  Standard
Bank’s Credit Rating   New A/c
Previous years rating  N/A  
Constitution    Individual
Date of  Establishment  New business
Dealing with the Bank since
Location  & Contact Detail Residential VILLAGE – BARKATOLI, RATU
Address           RANCHI 835222
Works VILLAGE – BARKATOLI, RATU
RANCHI 835222
Key Persons- Name Mr. ANUP ORAON
Industry /Sector MSME
Nature of Activity SWEET GHEE, PANEER, AND OTHER MILK
PRODUCTS
Whether take over norms has been complied  Yes
with

1.01) Name of Directors/Partners/Proprietor

                                                                                   (` in Lac)
Name Designatio PAN Net Worth As ON
n 31/03/2023
ANUP ORAON  Individual ABRPO9843K 7.19 Lakh
 AADHAR   28958252234  
9
 

ANUP ORAON 1
 Names of Guarantors : (Proposal is under PMEGP Hence not applicable)
                                                                                 (` in Lac)
Name Net Worth as on----
   
   

2.00) Background of the firm/company (In brief)

MR. ANUP ORAON wants to set up new a business of AGRO FOOD BUSINESS under PMEGP scheme.
The borrower has a good experience & goodwill in the market. He approached us for credit
assistance Via TL for purchase of Fixed Assets & CC to meet Working Capital requirement.

3.0 ) Present Commitments with us and proposed limits                    

(i) Authority        : NA
(ii) Date of last sanction / review: New Sanction
                                   
(iii) Due Date for review    : N/A

(iv) Proposed Limit      :

                                                                                                      (` in Lac)
Sr. No. Nature of Existing Proposed O/s as on Overdue N/A
Facility Limit Limit N/A
 1.  Cash Credit  0.00 15.00 0.00 0.00
2. Term Loan 0.00 10.00 0.00 0.00
 
4.0) Loans from other Banks/ Financial Institutions: Nil
                                                                                                                 (` In lacs)
Name of the Institution Limit Outstanding Excess / Remark
As on Overdue
 N/A        
 
5.0) Deposit Relationship / Ancillary Business : (Loan / advances against same  to be also 
quantified)
 
Nature of Deposit Average Deposit in Last 12 At Present
Months
 New A/c    
                                                           
6.0) Any reschedulement agreed by our bank/ Other financial Institution/ Bank   (in last
–3- years): N/A
 

ANUP ORAON 2
7.0 ) Security Coverage:
 
No.     Description Rs in Lac (As on
31.03.2022)
1. Prime Security (Stock & Debtors)  
 Hypothecation of stock and book debts. 15.00 Lakh
 Fixed Assets 11.32 Lakh
2. Collateral security- Covered under PMEGP

3. Total Security Coverage 26.32 Lakh

8.0 ) Conduct of account/other information (in case of existing accounts) : New A/c Hence N/A

8.1 Dealing and conduct of the account

8.2 No. of stock Inspection conducted in Last 12 months.
8.3 Date of last stock inspection, adverse comment; if any
8.4 Whether stock statements are submitted regularly, if not Yes/No
date of last stock statement submitted and whether penal
interest is charged
8.5 Whether unpaid stock received from creditors/under Yes/No
LC/BG is shown separately in stock statement
8.6 Whether Insurance coverage is adequate and valid  up to Yes/No
Valid Up to--
8.8 Whether the entire / major sale proceeds are routed Yes/No
through us, if not, reasons for the same and steps taken
8.9 In case of overdue proposal due to delay in submission of  
financial papers whether penal interest is charged
8.10 No. of instances Adhoc/ Excess granted during review  
period
8.11 Compliance of Earlier terms and conditions including Yes/No
creation of charge.
8.12 Documentation: Whether verified by legal  
dept/empanelled advocate. & whether in order  
/enforceable
8.13 Whether all statutory clearance / approvals/Licences Yes/No
have been obtained
8.14 Yield in the account Amoun  
t
In     %  
Period  
8.15 Whether Facility is covered under CGTMSE Yes/No
8.16 Whether directors of the borrower Company are relatives  
of any member of the Bank’s Board/Senior Officer of the

ANUP ORAON 3
 Bank/ Member of any other Bank’s Board
 
9.0 ) Inspection irregularities

Major Inspection/ Audit Comment of Comment of the

Auditor/ZIC Branch
Inspecting Officer
Internal Audit (ZIC Inspection)  N/A  N/A
Concurrent Audit/ Statutory Audit/RBI  N/A  N/A
 
10.0) Compliance:
Whether names of RBI defaulters’ list              dated  No
promoters, directors, Willful defaulters’ list         dated  No
Company, group ECGC caution list                 dated  No
concerns figure in CIBIL /Any other agency    dated 771 (No Adverse
25.11.2021 Comment)
CONTROL No -4,23,02,93,092
 

11.0) Details of associates /Subsidiaries /group concerns (copy of Credit Report from
other Banks, if they are dealing with other banks) :N/A
 
       Facilities enjoyed by Associate/ Sister Concerns

Name of Business/ Date of Commitments with Commitments with

company/firm Activity last us, with name of other banks name of
And its review branch Where Bank  Where
Prop./partners advances Granted advances Granted
 N/A      
         
 
12.0)  Operational Details of existing credit facilities (for the Balance Sheet period and
thereafter till date) : N/A
 
(A) Term Finance (including DPG)     (Rs in lacs)
  Term Loan      
  Limit      
  (a) Date of first availment/ disbursement :    
  (b) Whether installments are regularly paid as :    
per schedule
  [c] Interest earned :    
  (d) Present outstanding (as on               ) :    
  (e) Details of overdues :    
    * Installments      
    * Interest      
 

ANUP ORAON 4
 (B) Working Capital Facilities: New A/c Hence N/A
  (Cash Credit – stock / Cash Credit (Book Debt)/Packing Credit/Current A/c)
  Operations in the a/c:      
  Limit :    
  (a) Interest earned :    
  (b) Maximum balance :    
  [c] Minimum Balance :    
  (d) Average Balance :    
  (e) Turnover in the account                
  (f) Present outstanding :    
  (g) Whether cheques drawn in accounts :  
are returned unpaid for financial
reasons, If yes no and amount.
  (h) In case maximum balance/average :  
balance is more than limit/advance
value, branch to give reasons and
whether confirmation was obtained.
  (i) Comments/reasons for less / more    
turnover as compared to sales.
  Bills Purchased/Discounted    
[C]  

  Limit      
  (a) No and amount of bills purchased      
  (b) No and amount of bills returned unpaid      
  [c] Exchange/discount earned      
  (d) Overdue interest earned      
  (e) Present liability      
  (f) Whether payment of bills is delayed. If yes,    
average period of realization and reasons  
for delay.

ANUP ORAON 5
     If yes, average period for realization and    
reasons for delay

  Contingent Facilities     (Rs in lacs)

(D)
      Letter of Credit Bank Guarantee
  Limit      
  (a) No. of L/C opened /      
    Guarantees issued      
  (b) Amount of L/Cs opened /      
    Guarantees issued.      
  [c] Commission earned      
  (d) Amount ABs raised      
  (e) Commission L/C      
    Guarantee      
  (f) Interest on AB      
  (g) Present outstanding -      
    L/C      
    A/B                
    Overdue since      
  (h) Whether ABs are retired promptly?      
  (i) No and amount of guarantees invoked.      
  (j) Whether payments made by the bank      
have been made good promptly by the
party

ANUP ORAON 6
 SECTION II- FINANCIAL PARAMETERS AND ASSESSMENT
13.0 ) FINANCIAL PERFORMANCE :-(Rs in Lakh)
Particulars Estimated Projected Projected Projected Projected
Year Ending 31st March 31.03.2023 31.03.2024 31.03.2025 31.03.2026 31.03.2027
a) Balance Sheet Data / Capital
Structure 7.19 10.39 14.47 19.48 25.53
Paid up Capital :
Equity Share Capital - - - - -
Reserves & Surplus (Excl. Revaluation - - - - -

reserves and net of intangible assets) - - - - -

Tangible Net worth 7.19 10.39 14.47 19.48 25.53

Term Liabilities 12.47 9.73 6.75 3.51 0.00
of which Unsecured Loans - - - - -
Capital Employed
Net Block 13.64 11.61 9.88 8.41 7.15
Non Current Assets : - - - - -
-- Funds invested outside business - - - - -
Current Assets 16.57 19.25 22.27 25.74 29.74
Current Liabilities 10.55 10.74 10.93 11.15 11.37
Net Current Assets - - - - -
Capital Deployed - - - - -
b) Operational Data
Gross Sales 94.75 104.23 114.65 126.11 138.73
Less: Excise / Sales Tax - - - - -
Net Sales 94.75 104.23 114.65 126.11 138.73
Manufacturing expenses
Depreciation 2.39 2.04 1.73 1.47 1.25
Interest 2.58 2.37 2.13 1.88 1.60

ANUP ORAON 7
 Net Profit before Tax - - - - -
Net Profit After Tax 3.87 5.21 6.58 8.02 9.54
Dividend
 
Profitability Ratio
(NP/Sales) % 4.09 5.00 5.74 6.36 6.88
ROCE
PAT / TNW 0.54 0.50 0.46 0.41 0.37
Current Ratio 1.57 1.79 2.04 2.31 2.62
DE Ratio (TTL/ TNW) 1.73 0.94 0.47 0.18 0.00
DE Ratio (TOL/TNW) 3.20 1.97 1.22 0.75 0.45
Interest Coverage ratio 3.49 4.19 5.11 6.38 8.24

13.01) Brief Comments on financials:

(Sales/ Profitability/ Net worth/ Current Ratio/ DE Ratio/ DSCR (in case of Term Loan)

Sales: The estimated sales is tabulated bellow. the firm is estimating it sales 94.75 lakh first year
and projecting growth at the rate of 10% every year.
Estimated Projected Projected Projected Projected
Particulars 31.03.2023 31.03.2024 31.03.2025 31.03.2026 31.03.2027

Sales 94.75 104.23 114.65 126.11 138.73

Net profit: the firm is showing its net profit is tabulated bellow.
Particulars Estimated Projected Projected Projected Projected
31.03.2023 31.03.2024 31.03.2025 31.03.2026 31.03.2027
Profit 3.87 5.21 6.58 8.02 9.54

Current Ratio: current ratio of the firm is above of bank limit 1.15 every year.

Particulars Estimated Projected Projected Projected Projected

31.03.2023 31.03.2024 31.03.2025 31.03.2026 31.03.2027
Current 1.57 1.79 2.04 2.31 2.62
Ratio

 
Debt equity Ratio:
Estimated Projected Projected Projected Projected
Particulars 31.03.2023 31.03.2024 31.03.2025 31.03.2026 31.03.2027
Debt equity 3.20 1.97 1.22 0.75 0.45
Ratio
(TOL/TNW)

Ratios are within bench mark hence acceptable

ANUP ORAON 8
DSCR :

Particulars Estimated Projected Projected Projected Projected

31/03/2023 31/03/2024 31/03/2025 31/03/2026 31/03/2027
Profit after Tax
+Depreciation +
Interest 9,65,218.00 10,48,524.00 11,41,159.00 12,43,547.10 13,57,089.21
Instalment 3,81,146.00 3,81,146.00 3,81,146.00 3,81,146.00 3,81,146.00
2.53 2.75 2.99 3.26 3.56
 
Tangible Net Worth:
Particulars Estimated Projected Projected Projected Projected
31/03/2023 31/03/2024 31/03/2025 31/03/2026 31/03/2027
TNW 7.19 10.39 14.47 19.48 25.53

 
14.0) Assessment of Working Capital (Justification for working capital sanction)
Calculation of PBF as per 1st Method of Lending: (Rs. In Lakh)

As per Turnover Method

(Rs. In Lakh)
Turnover Method Estimated Projected Projected

31.03.2023 30.11.2024 31.03.2025

A. Turnover 95.75 105.33 115.86

B. 25% of (A) 23.94 26.33 28.96

C. Margin Required at 5% of (A) 4.79 5.27 5.79

D. Margin (NWC) 6.61 10.23 14.22

E. (B - C) 19.15 21.07 23.17

F. (B-D) 17.32 16.10 14.74

G. MPBF ( E or F whichever is lower) 17.32 16.10 14.74

H. Excess borrowing -2.32 -1.10 0.26

14.01) Assessment of Term Loan (Justification for term loan sanction):

Particulars Estimated Projected Projected Projected Projected

31/03/2023 31/03/2024 31/03/2025 31/03/2026 31/03/2027
Profit after Tax
+Depreciation +
Interest 9,65,218.00 10,48,524.00 11,41,159.00 12,43,547.10 13,57,089.21
Instalment 3,81,146.00 3,81,146.00 3,81,146.00 3,81,146.00 3,81,146.00
2.53 2.75 2.99 3.26 3.56

14.02) Requirement of other facilities (Justification for sanctioning other facility/ies)

N/A

ANUP ORAON 9
14.03) Modifications (if any, in the existing terms and conditions with justification)
N/A
 
14.04) Confirmation
  As per bank’s guidelines, higher of the above assessments may be accepted as permissible Bank
Finance. Though the higher assessed limit is Rs. 17.00 lacs but firm has proposed higher margin &
requested for Cash Credit limit of Rs. 10.00 lacs and Term Loan of Rs. 15.00 which may be
considered. However, drawings in the account will be allowed on advance value of paid stocks (i.e.
total stocks less sundry creditors and advance (if any) and book debt not older than 30 days but
within sanctioned limit.

15.0) Recommendations:
Mr. ANUP ORAONwants to Start a new business of Fabrication work under PMEGP scheme. The
borrower has a good Experience in the field & goodwill in the market. He approached us for credit
assistance Via TL for purchase of Fixed Assets & CC to meet Working Capital requirement. Consumer
Cibil Report has been generated with control No ............................................ dt __/___/_____ and report
found satisfactory. In view of what is stated above, genuine business requirement of the firm,
satisfactory financial ratios, good security coverage ratio, we recommend for sanction of following
credit facilities to Mr. ANUP ORAONfor a period of -12- months on terms and conditions mentioned
in annexure ‘D’:
(` in Lacs)
Nature of Facilities Existing Limit Proposed Limit
Fund Based
Working Capital 0.00 10.00
Term Loan 0.00 15.00
Non-Fund Based - 0.00
TOTAL 0.00 25.00

Manager (Credit)
 
16.0 ) Comments of Sanctioning Authority :
The Borrower has requested for fresh cash credit limit of Rs. 10.00 Lac to meet out the day to day working
capital requirement for running the business and Term Loan of Rs. 15.00 Lac for Plant and Machinery.
Borrower has very good experience in this line. After sanction of limit his business will be run very smoothly
and now to achieve the estimated sales target the firm demand Rs.10.00 Lac as cash credit and Term Loan Rs.
15.00 Lac. The security offered by the firm is valued Rs. 26.32 Lac as hypothecation of goods & book debts
and other required security, so loan is fully secured. As per above facts the demands of 25.00 Lac seems
justified.

SANCTIONED  

 Branch Head

ANUP ORAON 10
Annexure “D”
1.0 )Terms and Conditions:

(Please note to incorporate details such as Nature of facility (existing and proposed) security,
margin, interest period etc. and other general terms and condition).

Sl. Nature of Limit Terms and Conditions

No Facility
 1.  Cash Credit 3.00 Margin:  5%
2. Term Loan 7.00 Rate Of Interest:  BRLLR+S.P+0.85
%
Repayment Period:  5 year
Repayment Schedule:  Monthly
Moratorium Period:  N/A
Security:  
 
1.Primary Security
 Hypothecation of
stock and book  Rs. 3.16 Lakh
debts.
 Fixed assets Rs. 7.38
Lakh

2. Collateral Covered under

PMEGP.
 

ANUP ORAON 11
2.0) Other Terms & Conditions
 
 All the facilities are secured by personal guarantee of Miss Vartika Kumari
worth Rs. 10.54 Lakh.
 Party to undertake :-
I. To deal exclusively with us.
II. Not to interlock funds with their sister concern and associate concern, If exist.
III. Not to change the constitution of the firm without prior consent of the bank.
IV. To submit letter of free access and no lien on stock from the fabricators.
V. To adjust the PCL within the stipulated period.
VI. To strength the capital base of the unit.
VII. No packing credit/foreign bill purchased facility will be given against the same buyer if the
earlier PC/FBP becomes overdue.
VIII. Party to maintain stock register and to submit stock statement as at the end of every month
by the 10th of the following month.
IX. Stocks will be insured comprehensively with agreed bank clause. 
X. Property mortgaged with us to be insured adequately and comprehensively with agreed
bank clause.

 Bank to carry out inspection at a regular intervals and have a right to inspect the books of
accounts of the firm to ensure proper end use of fund.
 Penal Interest will be charged @2% p.a. in case of default in compliance with the terms and
conditions.
(Above conditions are illustrative only. Branch can stipulate conditions as per bank guidelunes)
          
Papers to be submitted along with the proposal
Ann. Contents Tick ( ifenclosed)
A Latest Balance Sheets and other financial Statements. 
b Latest Income- Tax / Wealth – Tax returns along with Credit 
Reports of all partners / guarantors on F. No. 117-A
c In case of Term Loan  -Project Details 
a)  In case of new units and
b) Existing units for diversification / Modernisation
c) Implementation Schedule
d) Cost of project and Sources of finance

ANUP ORAON 12
 e) DSCR Calculation
 

Annexure Contents Tick ( if enclosed)

A Operating statement 

B Analysis of balance sheet 

C Cost of project and Sources of finance 

D Major adverse features pointed out by RBI Inspectors/Internal Auditors/ N/A

Statutory Audit/ Credit Auditors/ Concurrent Auditor and steps taken

E DSCR Calculation 

ANUP ORAON 13