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CREDIT APPROVAL MEMO (CAM)Review CAM/Proposal No. 80861082Annual
CAM Date CAM Revision Date02/01/2014 15/01/2015
Customer Name Krishan Lal Batra And Bros,202455SME Client ID
Constitution of theCustomer
Sole ProprietorsBorrower Pan #
AANPB8608C
Customer Category Normal Address C-1/409/4 Jaroda Gate JagadhriJagadhri,Haryana,IndiaEmerging Enterprises Group (Eeg)Business SegmentContact No 9896123707
Source NameDIRECT DirectSourced By
Credit / ProductProgram
Sbf >10 To 25 L LTS / CRM No.
Credit Labeling Normal Asset Classification Standard
RAM Rating / InternalGrade
5- Ram Rating Id 0
23/02/2010RBI Code & Industry 27201 -Manufacture Of BasicPrecious And Non-Ferrous MetalsLike Copper, Aluminum, Zinc, BrassEtc.(Smelting, Rolling, Re-Rolling,Cold Rolling, Wire Drawing Etc.)
Customer Since In SME System
Manufacturing And Trading In Circle And UtensilsNature of BusinessIndustry Exposure FB Limit % :1.98\FB O/S % :1.94
Line Of Activity Manufacturing Credit Group Bbwc Credit
Credit Covenants :
Facility Summary(Amount in Lacs)Particulars Proposed Amount Existing Amount Increase /Decrease Amt
Facility Details Limit Sub Limits Limit Sub Limits Sub LimitsLimitTenor
1 /Term Loan/TermLoan/Term Loan 420.003.60 3.60 0.00
2 /Cash Credit/CashCredit/Cash Credit 120.0015.00 15.00 0.00
Total Exposure 18.60 18.60 0.00
Remarks For Facility SummaryM/S Krishan Lal Batra And Bros Has Requested For Plain Renewal Of Cash Credit Limit Of Rs.15 Lacs And Continuation Of Existing Term Loan
Remarks :
Recommended , Reviewed , Endorsed and Approved By
Proposed and Recommended By Approved ByReviewed By/Endorsed By
A7703-Atulya Sharma H1953-Himanshoo SharmaA6026-Adesh SethA7703-Atulya Sharma
1
Facility Terms And Conditions
Proposed Amount Sub Limit Interest/Commission (%)
Tenor(inMonths)
TERMS AND CONDITIONSFacility
PurposeRepaymentFrequency
1 /Term Loan/TermLoan/Term Loan 4213.8
Business UseMonthly3.60
2 /Cash Credit/CashCredit/Cash Credit 1213.8
Business UseYearly15.00
SlNo Product/Sceme/Promo Remarks
Remarks
1 Term Loan Continuance Of Term Loan
2 Cash Credit Plain Renewal Of Cc Limit Of Rs.15 Lacs.
Documentation Details:Standard documents as per credit policy for Working Capital Products - BBG/EEG/ABC portfolios to be obtained as per the borrower's constitution andincremental facilities being availedAll documents as per policy and conditions stipulated in earlier CAM has been complied with, barring the following:
Rm To Ensure Nil Defferals
Details Of Deferrals :
Na Plain Renewal
Guarantors Details :
All Documentation As Per Policy And Conditions Stipulated In Earlier Cam Has Been Complied WithAdditional Conditions/Documents :
The Firms Tnw (Capital + Unsecured Loans From Promoters - Loans & Advances For Non Business Purposes) At Rs.38.0 Lacs As On 31.03.13 BeMaintained During The Currency Of Overdraft.
Additional Conditions:Satisfactory Rbi Check, Svr By Rm To Be Placed In Case File. ---- Prior To Upload.Self Declaration For No Pendign Statutory Dues To Be Taken ---- Prior To Upload
Credit Covenants :
Modalities Of Takeovers :Na Existing Customer
Primary Applicant and Promoter Details
Client ID Appilicant Details Applicant Type Pan No AddressRelationship
202455 Krishan Lal Batra And Bros Primary Applicant AANPB8608CC-1/409/4 Jaroda GateJagadhri,Jagadhri,Haryana,India
APPLICANT
921755 Subhash Chander Batra Proprietor AANPB8608C2052 Sri Nagar ColonyJagadhari ,YamunaNagar,Haryana,India
PROPRIETOR
Shareholding Pattern
Shareholder / Director Name Qualification Experience No of Shares Held RemarksShareholding %
MR.SUBASH CHAND BATRA GRADUATE 30 YEARS 100 100 SUBASH CHAND BATRAIS 100% OF SHAREHOLDER
100.00Total
Applicant and Promoter DetailsThe Firm Is Under The Name Of Krishan Lal Batra & Bros At C-1/409/4, Jaroda Gate, Jagadhri.Krishan Lal Batra & Bros Is One Of The Manufacturer And Trader Of Circle And Utensils From The Last 27 Year. The Promoter Mr. SubhashChander Batra Is B.A Having 35 Years Of Experience In The Above Said Line Of Business. In Addition To That There Was Earlier His Brother Mr.Krishan Lal Batra And Mr. Satpal Punani Are Also Working As Partner. However In View Of Family Settlement , Both Mr. Krishan Lal Batra
2
AndMr. Satpal Punani Got Retired From The Business And Mr. Subhash Chander Batra Is Running The Firm As A Proprietorship Concern Since April2009.
Litigations pending / contemplated by other financiers, including banks, against the borrower :
As Per information no such litigation is there, however an undertaking confirming the same is stipulated to be obtained from companyCompany / Directors / Group companies in RBI Defaulters list :nil
Interest of Directors / Senior Officers (only approvers) of bank, if any :As per information no such interest of directors or senior officers is there, However an undertaking confirming the same is stipulated to be obtainedfrom company
Total Facilities Availed With Banks / Institutions(Working Capital)(Amount in Lacs)Banker Facility FB-Limit/DP FB-O/S NFB Limit/DP NFB Utilized
Hdfc Bank Cash Credit 15.00 10.56 0.00 0.00
Total 15.00 10.56 0.00 0.00
Existing Banking Details
The Firm Is Availing Cc Limit Of Rs.15 Lacs From Hdfc Bank Having A/C No.08728970000025. The Overall Churning Is Satisfactory. InterestServicing Dpd Is As Follows:Months DaysJun---------9 DaysJul---------1 DayAug----------16 DaysSep--------3 DaysOct---------9 DaysNov---------3 Days
SecurityNo./Security
TypeSecurity value
(Rs in Lacs) Owner name Valuer Name Margin %
Security Details
SecurityDescription/Address
PropertyType/OccupancyType
1/Stock Stock 15.00 25
2/Bookdebts/debtors
Debtors 15.00 50
3/Properties Residential Property/C-4/2051,JAGADHRI,SRI NAGAR COLONY,NULL,135003,Jagadhri,Haryan
28.73 SUBHASH CHANDERBATRA
10 RESIDENTIALPROPERTY
4/Plant &Machinery
P&M 4.85 25
Total 63.58
Security Details Remarks
110% Collateral Coverage
Security Linking DetailsSl No Customer
NumberProposed Security
NoSecurity No Primary Secondary Existing/
Proposed
3
1 202455-KrishanLal Batra AndBros
202455-1/Stock 2/Cash Credit EXISTING
2 202455-KrishanLal Batra AndBros
202455-2/Debtors 2/Cash Credit EXISTING
3 202455-KrishanLal Batra AndBros
202455-3/ResidentialProperty
EXISTING1/Term Loan,2/Cash Credit
4 202455-KrishanLal Batra AndBros
202455-4/P&M 1/Term Loan EXISTING
4
Security wise RemarksSl No Security Existing/
ProposedRemarks
1 STOCK EXISTING MARGIN IS 25% on Stock < 90 days
2 DEBTORS EXISTING MARGIN IS 50% on Debtors < 90 days
3 RESIDENTIALPROPERTY
EXISTING Collatera security to provide coverage of at least 10%
4 P&M EXISTING 25% margin
Key Personnel /Promoters / Directors
NameDesignation
(Promoter/ Director/ KeyPersonnel)
Qualification Responsibility Experience
MR.SUBHASH CHANDERBATRA
Self Employed GRADUATE PROPRIETOR 30 YEARS
Borrower ProfileHistroy And BackgroundM/S Krishan Lal Batra & Bros Is A Proprietorship Firm Under Namely Mr. Subhash Chander Batra Has Been Running Manufacturing And TradingIn Circle And Utensils Since 1983. The Firm Was Started As Partnership Concern But It Change Into Proprietorship As On 01.04.2009. ReasonFor The Same Was Due To Family Settlement As Confirmed By The Rm .
The Firm Is Availing A Cash Credit Limit Of Rs.15 Lacs From Hdfc Bank.
The Firm Has Achieved The Sale Of Rs.73.14 Lacs For The Fy 12-13.Nature Of Business And Products Dealt InThe Firm Is Under The Name Of Krishan Lal Batra & Bros At C-1/409/4, Jaroda Gate, Jagadhri.Krishan Lal Batra & Bros Is One Of The Manufacturer And Trader Of Circle And Utensils From The Last 27 Year. The Promoter Mr. SubhashChander Batra Is B.A Having 35 Years Of Experience In The Above Said Line Of Business. In Addition To That There Was Earlier His Brother Mr.Krishan Lal Batra And Mr. Satpal Punani Are Also Working As Partner. However In View Of Family Settlement , Both Mr. Krishan Lal Batra AndMr. Satpal Punani Got Retired From The Business And Mr. Subhash Chander Batra Is Running The Firm As A Proprietorship Concern Since April2009.Business AnalysisM/S Krishan Lal Batra & Bros Is A Proprietorship Firm Under Namely Mr. Subhash Chander Batra Has Been Running Manufacturing And TradingIn Circle And Utensils Since 1983. The Firm Was Started As Partnership Concern But It Change Into Proprietorship As On 01.04.2009.
Infrastructure And Operational Aspects (Including Production And Capacity)Na
Marketing Network / Major Competitors / Other DetailsNa
Industry ScenarioNa
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
AugSepOctNov
2012 2013
4.09
3.93
10.73
8.14
8.41
10.03
9.01
8.50
9.17
6.70
7.20
Monthly Sales Details(Amount In Lacs)
5
DecTotal
Average
4.16
4.16
4.16
85.91
7.81
Banking Account Conduct (Amount in Lacs)Monthly Credit / Deposits Total
Bank Name
A/C No
OD FacilityYes/No
A/C Limit
HDFC BANK
08728970000025
Yes
15.00 15.00
6
Months
Jun - 2013
Jul - 2013
Aug - 2013
Sep - 2013
Oct - 2013
Nov - 2013
Total
Credit amount
24.06
10.07
8.50
11.25
3.91
6.00
Credit amount
0
0
0
0
0
0
Credit amount
0
0
0
0
0
0
Credit amount
0
0
0
0
0
0
Salesamount ofthe Month
10.03
9.01
8.50
9.17
6.70
7.20
50.61
MonthlyCredit toSales %
240
112
100
123
58
83
126
Total of all thecredit of banks
24.06
10.07
8.50
11.25
3.91
6.00
63.79
Credit amount
0
0
0
0
0
0
Utilization of limits for OD accounts(Amount In Lacs)Months
Account Limit
HDFC BANK
15.00
Months
Jun - 2013
Jul - 2013
Aug - 2013
Sep - 2013
Oct - 2013
Nov - 2013
CA / WC %
52.67
91.47
97.13
92.20
95.07
96.73
CA / WC % CA / WC % CA / WC % CA / WC %
Banking Account Conduct RemaksSl No Bank Name Remarks
1 THE FIRM IS AVAILING A CC LIMIT OF RS.15 LACS FROM HDFC BANK HAVING A/CNO.08728970000025
HDFC BANK
TOD Details (Amount in Lacs)
TOD Report For 08728970000025 HDFC BANK
Sl.No From Date To Date No.Of Days TOD Amount
Cheque Return Report
Sl No Bank Name A/C No Type Of ChequeReturnCheque Return
Date Cheque Amount Cheque Return Reason
LC Remaks
7
BG Remaks
Banking Account Overall Conduct RemaksSATISFACTORY BANKING CONDUCT
8
Financial Details
31-03-2013 31-03-2012 31-03-2011P&L Sheet (All figures in Rs. lacs)
Total Income
PBDIT
Interest
Depreciation
PBT
Tax
PAT
Cash Profits
Tangible Networth
Short Term Debt
Long Term Debt
Unsecured loans from promoters
Total Debt
Current Liabilities & Provisions
Total LiabilitiesNet Fixed Assets
Investments
Loans & Advances
Sundry Debtors
Inventories
Other Current Assets
Total Current Assets
Total AssetsGross Margin (PBDIT/TI)
Net Margin (PAT / TI)Current Ratio
Interest CoverageDSCR
Debt / Equity Ratio
Leverage (TOL / Tangible Networth)
TOL (excl Unsec loans) / Tangible NW
Current Assets / Sales
Debtor Days
Inventory Days cost of sales
Creditors days as cost of sales
74.30
7.80
3.80
0.90
3.00
0.10
2.90
3.90
30.50
14.80
2.00
16.20
33.10
6.80
70.37 54.73 49.38
70.37 54.73 49.38
5.40
0.00
8.70
21.70
32.10
2.50
65.00
10.50
3.90
3.00
2.03
1.70
1.09
1.31
0.51
89
108
176
34
73.90
6.50
2.40
1.00
3.10
0.10
3.00
4.00
26.20
12.50
2.90
12.60
28.00
0.40
5.50
0.00
10.60
2.80
33.30
2.50
49.20
8.80
4.00
3.79
2.67
1.88
1.07
1.09
0.41
67
14
180
0
73.20
5.90
2.40
0.70
2.80
0.30
2.50
3.20
10.40
14.80
3.60
13.20
31.60
7.40
6.40
2.20
0.60
8.40
30.60
1.20
40.70
8.00
3.40
1.84
2.45
1.54
3.05
3.76
1.09
56
42
166
38
Latest Financial Audited
Financial Remarks :
The Sales Of The Firm Has Increased By 1.15 % Amounting To Rs 73.86 Lacs In F.Y 2011-12 & It Has Decreased To Rs 73.14Lacs Showing Decreased Of -0.97 % In F.Y 2012-13
Gross Margins Of The Firm Are 8 % In F.Y 2010-11 & It Has Increased To 8.8 % In F.Y 2011-12 & It Has Increased To
9
10.5 % In F.Y 2012-13
The Raw Material Costs Are 91.3 % In F.Y 2010-11 & It Has Decreased To 91 % In F.Y 2011-12 & It Has Decreased To 90.6 % InF.Y 2012-13
The Net Margins Of The Firm Are 3.4 % In F.Y 2010-11 & It Has Increased To 4 % In F.Y 2011-12 & It Has Decreased To 3.9 % InF.Y 2012-13
The Cash Margins Of The Firm Are 4.3 % In F.Y 2010-11 & It Has Increased To 5.3 % In F.Y 2011-12 & It Has Decreased To 5.2% In F.Y 2012-13
Inventory Holding Day Was 166 Days In F.Y 2010-11 & It Has Increased To 180 Days In F.Y 2011-12 & It Has Decreased To 176Days In F.Y 2012-13
The Day S Debtors Levels Are 42 Days In F.Y 2010-11 & It Has Decreased To 14 Days In F.Y 2011-12 & It Has Increased To 108Days In F.Y 2012-13
The Current Assets/Sales Is 56 % In F.Y 2010-11 & It Has Increased To 67 % In F.Y 2011-12 & It Has Increased To 89 % In F.Y2012-13
The Liquidity Position Of The Firm Is Satisfactory With The Current Ratio Is 1.84 In F.Y 2010-11 & It Has Increased To 3.79 In F.Y2011-12 & It Has Decreased To 3 In F.Y 2012-13
The Interest Coverage Ratio Was 2.4 In F.Y 2010-11 & It Has Increased To 2.7 In F.Y 2011-12 & It Has Decreased To 2 In F.Y2012-13
The Loans & Advances Are Rs 0.58 In F.Y 2010-11 & It Has Increased To Rs. 10.55 In F.Y 2011-12 & It Has Decreased To Rs.9.28 In F.Y 2012-13
SlNo Month/Year Curr. Stock Debtors Creditors Total Amount
Stock and book debts and Creditiors Satement(Amount In Lacs)
1 Apr-2013 INR 23.55 21.71 0.00 45.26
2 May-2013 INR 0.00 0.00 0.00 0.00
3 Jun-2013 INR 0.00 0.00 0.00 0.00
4 Jul-2013 INR 31.67 18.46 10.82 39.31
5 Aug-2013 INR 0.00 0.00 0.00 0.00
6 Sep-2013 INR 0.00 0.00 0.00 0.00
7 Oct-2013 INR 22.10 19.70 0.48 41.32
JustificationMargin Is 25% On StockMargin Is 50% On Book DebtsMargin Is 25% On CreditorASSESSMENT OF FACILITY PROPOSED:
Turn Over Method(Amount in Lacs)Particulars Calculation Amount
Sales Turnover - 2013 (A) 73.14Sales Turnover Expected - 2014 (B=A+(37% of A)) 100.20Maximum Working Capital Limit - 25% of expected Sales (C=(25% of B)) 25.05Minimum Margin to be brought by Borrower (D=(20% of C)) 5.01Maximum WC Limits Eligibility (E=C-D) 20.04Credit Facility already availed with other banks (F) 0.00Maximum WC Limits Eligible (G) 20.04
Justification :
Plain renewal of cc of Rs.15 lacs
Unhedged Exposure(Rs in Lacs)Unhedged Exposure(Rs in Lacs)
10
I.Exchange Risk of the Borrower
A. Net FX position
Total FX earnings(A)Total FX Outgoing(B)Net FX position(A-B)B. Details of unhedged Position
Total Inflows(C)Total outflows (including FX borrowings which are not hedged)(D)
Net Unhedged Position (D-C)
C.Current MTM Position with us and others
Comments
II.Financial Details
Details FYInternal Rating(HDB 5/6/7 etc)TNW( Rs Mn)Total Unhedged Exposure
30.5
Eligibility Criteria
Sl.No Program TypeBench Mark Value
Text NumericActual
Text Numeric
Sbf >10 To 25 L
16Listed In Rbi Defaulters List
NoNo
17Listed In Any Negative Or Rejected Database OfHdfc Bank NoNo
23Property Proposed Other Than Resi / CommercialProperty For Odap Facility NaNo
26Listed In Cibil Database
NoNo
29Satisfactry Cpv By Bank Officer
YesYes
30Biz. Stability Vintage In Yrs / Minimum Years InSame Business 5.00 31.00
31I/W Chq. Rtn Per Quarter
3.00
34Tod Days Per Quarter
10.00
35Interest Servicing Within No. Of Days Of Month
7.00 16.00
36Min % Of Churn In The Bank Account
75.00 126.00
37Satisfactory Tl Rep. And Prom. Personal Track
YesYes
41Cc/Od+Lc+Bg Limits Upon Prev. Yr Sales
20.00 21.00
11
43Pmb Upon Facility Amount
1.00 2.50
44Positive Tnw And Pat For The Latest Financial
YesYes
53Collateral Coverage
1.33 1.33
55Margin On Residential Prop. For Odap - Ltv
35.00 35.00
56Margin On Commercial Prop. For Odap - Ltv
35.00 35.00
64Enhancement Over Existing Limits
200.00 200.00
84Pmb Upon Facility Amount 2
1.50 1.50
Deviation Type Deviation Description Deviation Level
Deviations
SYSTEM CC/OD+LC+BG LIMITS UPON PREV. YRSALES 1
SYSTEM INTEREST SERVICING WITHIN NO. OFDAYS OF MONTH 1
Deviation / Eligibility Criteria :
Customer Has Achieved Sales Of Rs 75 Lakhs In Last Fy 12-13 And Customer Is Projecting Sales Of Rs 100 Lakhs In Current Fy 13-14 Which BringsCc Exposure To 15% Of Proposed Sales.
Interest Servicing Is Deayed Once By 16 Days For The Month Of Aug, Otherwise Interest Servicing Is Regular. Recommended For Approval BeingPlain Renewal
Based On Above Case Is Recommended For Plain Renewal Of Cc Limit Of Rs. 15 Lacs For One Year And Continuation Of Exisitng Term Loan OnThe Basis Of Proposed Sales And Good Banking Conduct.Risk And Mitigant :
Comments Of Auditors :
WAYS OUT ANALYSIS :
1.Cash Flows Of The Business2.Liquidation Of Primary Security3.Revocation Of PG whenever available4.Legal Recourse5.Collateral Security / Others / Guarantee (when ever available)
EARNINGS (from the Relation to The Bank) :
Recommendations :Considering Satisfactory Conduct Of Account, Good Business Vintage And In View Of Overall Financial Position, Case Is Recommended For PlainRenewal Of Cc Limit Of Rs. 15 Lacs For One Year And Continuation Of Exisitng Term Loan Subject To Terms And Conditions Mentioned In The Cam.
Customer Grading :
Sl.No Criteria: Grade A (4marks)
Grade B (4marks)
Grade C (4marks)
Grade D(4marks) Details Details
A Management 20 20
Years in business1 >=15 years >=10 years >=5 years < 5 years 31 31 4 4
Family in business2 3rd generation 2nd generation 1st generation - 1stgeneration1st generation 1 1
12
Promoter involvement &competence3
Highinvolvement &competence
Multiplebusinesseslesspersonalisedattn
No experienceis a sideactivity
- High High
4 4
Business CriteriaB
Dependence on customers -Max. Share of any customer inapplicant's sales
1Upto 5 5-10 10-20 Above 20 5-10 5-10
2 2
Dependence on govt. policies2Low Medium High - High High
1 1
Impact of technology change3Low Medium High - Medium Medium
2 2
FinancialsC
PMB/Facility Amount1 >2 >=1.5 >=1 = 50 of (TNW+ USL) ofprevious year
>= 25 of (TNW+ USL) ofprevious year
>= 10 of (TNW+ USL) ofprevious year
< 10 of (TNW+ USL) ofprevious year
251 2094 4
Current Ratio3 >=1.5 >=1.33 >=1 =4.0 >=3 >=2 < 2 2.03 2.67 1 1
Net Profit Margin5
For Manufacturing >=7.5 >=2.5 >=1.0 =5.0 >=2.0 >=0.5
Overdrawing / TOD1 Nooverdrawing
OccasionalOverdrawing
UsuallyOverdrawn
- Nooverdrawings
Nooverdrawings 4 4
Repayment Track Record2Prompt 30 days - Prompt Prompt
4 4
Cheque Returns3 No chequebounces
OutwardCheques
InwardCheques
- No chequebounces
No chequebounces 4 4
Churn4 >= 75 >= 60 >=50 = 75 >= 75 4 4
Score Rating68 5-
Grading RemarksScore Ou To Be 68 With Grading 5-
ApprovalReason EXISTING CUSTOMER
Remarks RECOMMENDED FOR APPROVAL
HIMANSHOO SHARMAApproved by
Annexures:
CRI Details
Non Banking FinancialCompany (NBFC)
Priority / Non Priority SectorCredit
Backed by Governmentguarantee
Our Share (%)
Lead/Member Bank
Banking Method
Terms of % age
Project Finance
SEMS Guidelines Applicable
TUFS
Under IFC's Exclusion list
Eligibility Certificate No
Unit
Date of submission to NodalAgencyDate of Sanction from NodalAgencyTotal cost of machineryeligible under tufs
SSI
Project cost(Rs)
Amount of Sanction fromNodal Agency
RBI Defaulter
Litigation Interest of Directors of theBank
Segment
Subsidy Flag
SME Classification Capital Market Exposure
Real Estate Exposure Commodities Exposure
Sensitive Sector
Gross investment in P & M
Name of the Group belongsto
Commodities Details
Group Exposure
PSU
MEDIUM MANUFACTURING NO
NO
NO
No
No Sole
0
0
EMERGING ENTERPRISES GROUP
0
0
0.00 NO
NO NO
MANUFACTURING ENTP- MICRO:
:
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:
:
:
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:
:
Original Investment inEquipment
Proposal No Client No
Client Name
:
:
:80861082 202455
KRISHAN LAL BATRAAND BROS
14
Caution advice Check
Proposal No Clients Name Status(Match/No Match)Clients No
****End of CAM****
15