Account: Suman Kumar Modi

Branch: Doranda
Zone: GIRIDIH
Annexure I
MSME- 2

BANK OF INDIA
PROPOSAL FORM FOR ADVANCES TO MICRO, SMALL and MEDIUM ENTERPRISES
(FOR LIMITS UPTO RS 25 LAKHS)

Br Ref No: DORANDA/ADV/MSME/24- Date: 29.02.2024

25/035
BRANCH- DORANDA ZONE:GIRIDIH
Account No : CUST ID:

PROPOSAL NO: DORANDA/ADV/MSME/24- NEW / REVIEW: Addition / Reduction / Change in

25/ 035 DATE: 29.02.2024 Terms / Same terms
Classification:
Account: SUMAN KUMAR MODI
Micro Enterprises - Manufacturing / Services
Prop. Of Ration Dukan.
/Trade
Advance since:
Small Enterprises - Manufacturing / Services
Last sanction Date: Credit Rating of the account ( if advance is more
than Rs 10 lakhs)
Authority- Asset Code:
CIBIL MSME RANK (CMR):
(if applicable)

A. Whether
1 Advance to SC/ST Yes / No
2 Advance to Minority Yes / No
Under any Govt. Sponsored Programme –
3 Yes / No
If yes Name of the Scheme – PMMY
4 Woman Beneficiary – (if yes % of holding- % ) Yes / No
5 Whether covered under CGFMU scheme Yes / No
6 VAT/GST Registration – Yes / No
7 CGPAN (in case of existing account) Yes / No
8 Whether registered with District Industries Centre ( Not Mandatory) Yes / No
Whether member of any Association:
9 Yes / No
If yes, Name of Association:

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 Account: Suman Kumar Modi
Branch: Doranda
Zone: GIRIDIH
B. Borrower Details:

1 Name of Account SUMAN KUMAR MODI

2 Established Since January 2012

3 Nature of business activity
4 Constitution
Office Address
(In case of leased premises, Lease
5
expiry date is to be mentioned)
Retail Trading of General Store.
Individual / Proprietor / Partner / Pvt Ltd Co.
1. Modi Bhawan, Vill- Tokotand, P.O-
Tarankho,P.S- Dhanwar, Dist- Giridih
State- Jharkhand, Pin- 825412

Factory / Godown Address 2. 12, Balhara, Block- Dhanwar, Main Road

Dhanwar, Dist- Giridih, State- Jharkhand, Pin-
6 (In case of Leased premises, Lease
825412
expiry date is to be mentioned)

7 Name of Proprietor/Partner/Director Mr. Suman Kumar Modi

Net Worth Last Year: 22-23 This Year: 23-24
8
Rs.3.38 Lakh Rs. 4.19 lakh
9 Age in years : 40 PAN card No : BDEPM1735L
10 Academic Qualifications Intermediate
Residential address Modi Bhawan, Vill.- Tokotand, P.O- Taranakho,
Dhanwar, Dist- Giridih
11
State- Jharkhand, Pin- 825412

12 Experience in the line of Activity More than 5 Years

13 Udyog Adhar No (UAN) UDYAM-JH-08-0025034
14 CIN No (In case of Companies) NA
a)Whether the MSME unit is ZED rated NO
(Yes/No)
15 b) If Yes, Gradation obtained by MSME
unit
(Bronze/Silver/Gold/Diamond/Platinum)

C. Guarantor’s Details (if any) (No guarantee to be proposed if CGFMU cover is taken)

1 Name- CGFMU
2 Age (years) :
3 Residential address:
4 Liabilities with us (if any)
5. Net Worth
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 Account: Suman Kumar Modi
Branch: Doranda
Zone: GIRIDIH

D. Purpose of the Loan: WCFB for Purchase of Stock to increase Turnover .

E. Value/conduct of account- existing deposits (Rupees in lakhs): Satisfactory

Last Year This year

Borrower Group Borrower Group
Average current deposits
Other Deposits
Interest earnings

F. PROPOSED FACILITIES & SECURITIES (Rs in lakhs)

FUND BASED Limits Limits Drawing O/S Margin % Rate of interest

LIMITS Existing proposed Limit
a) Cash Credit 0.00 0.00 0.00 0.00 15 1.50 CRP + 0.0
b) Term Loan 0.00 5.00 0.00 0.00 BSS + 1 YR.
BOI RBLR
Presently 8.35%

Total 0.00 5.00 0.00 0.00

G. Financial Position: Summary of Working Results as at: (Rupees in lakhs)

Last Year This year Next Year Last Year This Year Next Year
31.03.23 31.03.24 31.03.25 31.03.23 31.03.24 31.03.25

Net 3.38 4.19 5.19 Current 2.34 1.56 1.86

Worth Ratio
Sales 21.44 26.00 31.00 Debt Equity 0.48 1.30 0.93
Ratio
Other 0.18 0.20 0.23 Debt Attached Attached Attached
income Service
Coverage
Ratio
Net Profit 4.20 5.11 6.10 Interest N.A 10.83 16.20
Service
Coverage
Ratio

Brief Comments on Financial Position: The Firm has submitted Actual B/S for 2022-2023
Estimated B/S for 2023-2024 and Projected B/S for 2024-2025, 2025-2026. We commented on
financials of the firm based on estimated and projected B/S submitted by the firm.

Net Worth: The Net worth in FY 22-23 is Rs. 3.38 lakh which has been increased to Rs. 4.19 lakh
during the period as per balance sheet 31-03-2024. For the FY 24-25 opening net worth is Rs. 4.19
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 Account: Suman Kumar Modi
Branch: Doranda
Zone: GIRIDIH
lakh which has been projected to increase to Rs. 5.10 lakh. Increase in net worth is mainly due to
ploughing back profit into the firm.

Sales: Firm has achieved sales of Rs 21.44 lakh as per actual financials as on 31-03-2023. Firm
has estimated sales of Rs. 26..00 lakh in FY 2023-24. Firm has projected to achieve sales of Rs.
31.00 lakh for FY 2024-25. respectively, seems viable and achievable. we may accept.

Current Ratio: Current ratio of the firm is well above acceptable level of 1 in all years, and hence
acceptable.

ISCR: ISCR of the firm is well above the benchmark level of the Bank’s Credit Policy i.e. Minimum
1.50 we may accept.

H. Security Details: (Rs. In lakhs)

Date of Value(Our share) Date of Creation of

Security Particulars $ valuation (Rs. in lacs) first/second
report Present Proposed Charge
Principal Hypothecation of 29.02.2024 5.00 To be created
Stocks (Eventual 100%
Value)
Collateral # CGFMU

$ First / Second Charge (residual value of our share to be given)

# Names of title holder and his/her relationship with borrower

I. GROUP/ASSOCIATE CONCERNS: Other facility in the name of Proprietor/Firm

Name Address Present Sanction Present Extent of Interest as a

Bankers Limit O/S Proprietor/Partner/Dire
ctor/Investor in
associate concern

J. Due Diligence: Details of due diligence done.

i. Applicant interviewed on 29.02.2024

ii. Pre-sanction inspection done on 29.02.2024 Findings Satisfactory/Unsatisfactory
iii. Verification of Residence /Office/Factory at GIRIDIH done on 29.02.2024
iv. Inspection of properties to be mortgaged (if applicable) done on - NA
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 Account: Suman Kumar Modi
Branch: Doranda
Zone: GIRIDIH
v. Search with Registrar of Companies obtained on - NA
vi. Search Report /Valuation Report on properties to be mortgaged (if applicable) done on
– NA
vii. Status Report from existing bankers (if applicable): N. A.
viii. CIBIL /ECGC/RBI/CFR/ wilful defaulters’ list checked – Findings : Satisfactory
ix. ROC Charged Registration date (in case of existing account in the name of company):
x. CERSAI registration reference no and date (In case of existing accounts, wherever
applicable): New Limit
xi. Market enquiries --- Satisfactory/Unsatisfactory
xii. Pollution Control Board Clearance Obtained (if applicable) Yes/NA
xiii. ID/Address Proof (any of the following) : Obtained Pan card Aadhaar Card

K. ASSESSMENT/JUSTIFICATION

1. Working Capital Assessment (should cover acceptability of projected sales): Turnover

Method

Current year 2023-2024 Next Year 2024-2025

(Estimated) in lakh (Projected) in lakh
a. Gross Sales 26.00 31.00
b. 31.25% of Gross Sales 8.13 9.69
c. 6.25% of Gross Sales 1.63 1.94
d. N.W.C 3.05 4.17
e. (b-c) 6.50 7.75
f. (b-d) 5.07 5.52
g. Permissible Bank Finance* 5.07 5.52
(Lower of e & f)
h. Limit Proposed 5.00 5.00

*20% of the projected turnover is the minimum WC limit to be sanctioned even if the proponent’s
operating cycle is shorter than 3 months.

The firm has achieve the sales turnover of Rs 21.44 lakh during 22-23 and estimated for 23-24
Rs. 26.00 lakh and projected Rs. 49 lakh for FY 2024-25. As per the turnover method, the firm is
eligible for Rs. 5.07 working capital limit against the projected sale Rs. 26.00 (23-24). The firm
requested a T.L Limit of Rs. 7.00 lakh. We recommended for sanction of Rs. 7.00 lakh working capital
Term Loan.

Holding Period (For loans above Rs 10 lakhs):

Projected
Cash Credit Sales Working Inventor Debtors Creditor Other Promoters
Cycle in y s Current Contribution
months Assets

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 Account: Suman Kumar Modi
Branch: Doranda
Zone: GIRIDIH

2. TERM LOAN ASSESMENT:

i) Purpose of Loan: Purchase of Stock to Increase Turnover

ii) Assessment of loan :

Cost of project Means of finance

Particulars Amt. Particulars Amt.
a)Cost of P&M Promoter’s contribution
b)Cost of Construction Bank Term Loan
c)Others
Total Total

iii) Debt Service Coverage Ratio (DSCR): Attached

iv) Repayment Schedule:

No. of Amount Frequency Whether

Instalments Initial Date of EMI
Moratorium commencement
Existing 0.00 0.00 N.A N.A N.A
Proposed 60.00 Rs. 500000 N.A N.A N.A

L. SECURITY DOCUMENTS:

SR Security Documents Existing Security Documents Proposed

1 L-434
2 L-435
3 L-515
4 L-516
5 CHA-1
6 PDR-B
7 RBLR Agreement
8

M. AUDIT/INSPECTION/MEETINGS:

1. Last Date Remarks/observations

Inspection 29.02.2024 Findings: Satisfactory
(Primary/Collateral)
2. Any adverse comments of Statutory/ Internal/ NO
Concurrent/RBI Auditors and Borrower's Auditors
3. Insurance (Coverage, Validity and adequacy) New Limit
4. Compliance of last sanction terms N.A.

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 Account: Suman Kumar Modi
Branch: Doranda
Zone: GIRIDIH

N. Status Regarding Statutory Obligations:

1. Registration under Shops & Establishment Act Yes / No / NA

2. Registration under MSME (Provisional / Final) Yes / No / NA
3. Drug License Yes / No / NA
4. Latest GST Return filed Yes / No / NA
5. Latest Income Tax Returns filed Yes / No / NA
6. Any other Statutory dues remaining outstanding Yes / No / NA

O. BRANCH COMMENTS & RECOMMENDATIONS:

(Brief remarks on economics of the scheme, experience of the borrower, general dealings,
repayment capacity, safety of the advance, incidental benefits to the Bank like acquiring new
business etc.)

The firm is a proprietary concern where Mr. Suman Kumar Modi is proprietor, engaged in
business of General Store. Currently supplying these items to various shops nearby area of
Dhanwar, Isri, Jamtara, Sirsia, etc. Mr. Suman Kumar Modi is qualified person, having
experienced of more than 5 year. in this short period of times he captured so many areas to extend
his business network and gained sufficient experience and expertise to run the business.
He is our existing at Doranda Branch of Giridih Zone.
Currently he is doing his business from his at Vill- Balhara, Block- Dhanwar, Dist- Giridih, Pin-
825412.

Present Request: The firm has requested Working Capital Term Loan of Rs. 5.00 Lakh for
purchase of Stocks to increase the sale turnovers.

Security: The proposed capital limit will be primarily secured by hypothecation of the paid stock
and collaterally by way of CGFMU coverage.

Guarantee: Guarantee has been waived due to coverage in CGFMU.

Financial Position and Capacity of the Borrower: As discussed in previous sections the
proposal, all the financial parameters as per Bank’s Credit Policy is within the acceptable level.
Further the sales, net worth and profit figure is also projected to show increasing trends after
infusion of funds via Cash Credit.

CIBIL:

Commercial CIBIL and CMR:.

CFR: For CFR report mail has been sent; to be checked before sanction.

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 Account: Suman Kumar Modi
Branch: Doranda
Zone: GIRIDIH
Credit rating & Pricing: rating exercise is not applicable for the limit in order to find out the
applicable ROI, applicable ROI will be 1.50% CRP + 0.00% BSS + 1 Yr. BOIRBLR 6.85% presently
8.35% p.a. as may be reset by bank on time to time basis.

Margin: 15% of margin on Paid Stocks as per PMMY Scheme.

Repayment Each withdrawal of principal loan from Term Loan account is to be repaid within 12
months of such withdrawal, interest debited to the account is to be repaid/deposited promptly so
that outstanding balance of the Term Loan account does not exceeds the sanction limit under no
circumstances.

Recommendation:

Considering above foregoing and facts, we recommend for approval of the following:
Facilities Limits
Existing Proposed
Fund-Based (Term Loan) 0.00 5.00
Total 0.00 5.00

Recommend Recommend for Sanctioned

Manager Credit Chief Manager