SIP College

8/13/2019 SIP College

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EXECUTIVE SUMMARY

All what is taught in the classroom proves useful when applied in the practical field.

Practical orientation of management studies is a must to qualify as a potential

manager. Entering in the industry is like stepping into new world. Every concept,

which is taught in the classroom, is practiced in the different way in the industry. And

the study on the subject practiced in the organization gives a deep insight into the

practical aspect of the functioning.

Banks play a critical role in the economic development of an economy. They are

important not only for economic growth but also financial stability. In an economy

banks has three major roles to play i.e. first, they fulfil the financing needs of the

corporate sector. Second, they cater to the needs of the vast number of household

savers, providing assured returns on their surplus funds while maintaining liquidity

and safeguarding them from financial risks. Third, they act as a support for

development of financial markets and its participants.

This project titled A Study of Credit Appraisal System of Bank Of India for Working

Capital Requirement studies the credit appraisal methodology at Bank Of India for a

proposal received either for term loan or working capital financing or both for Rs. 100

crore or less.

Credit appraisal is the process of evaluating a proposals worthiness of being provided

with the type of credit facility the borrower has asked for. This includes the evaluation

of current financial status, appraisal of projected cash flows, fund flows, P&L and

Balance sheets, purpose for which the facility is availed, technical and financial

feasibility of the project, credit history, managerial competence and past experience,

etc. in case for a term loan.

The case study done by me was for M/s ABC Auto Co. which was incorporated in

the year 1999 as a Partnership Concern. The company is engaged in sale of new and

2nd hand Maruti brand of motor vehicles and after sale services. The firm is having

showroom cum workshop at Mathura Road, Faridabad. In last financial year, it has

started its "True Value" section for dealing in 2ndhand Maruti cars and is setting up

accidental repair workshop section at *** sector, Mathura Road, Faridabad which

is near to previous unit.


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The company has already availed CC limit upto Rs.34 crores for its working capital

requirement from Bank of India in May'12. And now it wants to raise its credit limit

upto Rs. 47 crores for the same.

During the analysis of the companys proposal and the CMA Report, it was found that

the Current Ratio and Profitability of the company doesnt satisfy the bank criteria.

Other ratios like Turnover ratio, PBT margin, Gearing and other liquidity ratios were

checked for the company.

After all the analysis done by the bank, the CC limit of Rs. 47 crores was not

sanctioned to the company and it remained same at Rs. 34 crores.


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CHAPTER-1

INTRODUCTION

1.1 OVERVIEW OF THE INDUSTRY

Bank is the main confluence that maintains and controls the flow of money to make

the commerce of the land possible. Government uses it to control the flow of money

by managing Cash Reserve Ratio (CRR) and thereby influencing the inflation level.

The functions of the bank include accepting deposits from the public and other

institutions and then to direct as loans and advances to parties mainly for growth and

development of industries. It extends loans for the purpose of education, housing etc

and as a part of social duty, some percentage to Agricultural sector as decided by the

RBI. The banks take the deposit at the lower rate of interest and give loans at the

higher rates of interest. The difference in this transaction constitutes the main source

of income for the banks.

Banking in India has undergone startling changes in terms of growth and structure.

Organized Banking was active in India since the establishment of The General Bank

of India in 1786. The Reserve Bank of India (RBI) was established as the central

bank. In 1955, the Imperial bank of India, the biggest bank at that time, was taken

over by the government to form State owned State Bank of India (SBI). RBI

undertook an exercise to reduce the fragmentation in the Indian Banking Industry post

independence by merging weaker banks with stronger banks. The total number of

banks reduced from 566 in 1951 To 85 in 1969.

The economic reforms unleashed by the government in early nineties included

banking sector too, to a significant extent. Entry of new private banks was permittedby RBI under specific guidelines. A number of liberalization and deregulation

measures like efficiency, asset quality, capital adequacy and profitability have been

introduced by the RBI to bring Indian banks in line with International best practices.

With a view of giving the State owned banks operational flexibility and functional

autonomy, partial privatization has been authorized as a first step, enabling them to

reduce the stake of the government to 51%.


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1.2 BANK OF INDIA: AN INTRODUCTION

Bank of India was founded on 7th September, 1906 by a group of eminentbusinessmen from Mumbai. The Bank was under private ownership and control till

July 1969 when it was nationalised along with 13 other banks.

Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh and 50

employees, the Bank has made a rapid growth over the years and blossomed into a

mighty institution with a strong national presence and sizable international operations.

In business volume, the Bank occupies a premier position among the nationalised

banks.

The Bank has 4467 branches in India spread over all states/ union territories including

specialized branches. These branches are controlled through 50 Zonal Offices. There

are 54 branches/ offices and 5 Subsidaries and 1 joint venture abroad.

The Bank came out with its maiden public issue in 1997 and follow on Qualified


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Institutions Placement in February 2008. . Total number of shareholders as on

30/09/2009 is 2,15,790.

While firmly adhering to a policy of prudence and caution, the Bank has been in the

forefront of introducing various innovative services and systems. Business has been

conducted with the successful blend of traditional values and ethics and the mostmodern infrastructure. The Bank has been the first among the nationalised banks to

establish a fully computerised branch and ATM facility at the Mahalaxmi Branch at

Mumbai way back in 1989. The Bank is also a Founder Member of SWIFT in India. It

pioneered the introduction of the Health Code System in 1982, for evaluating/ rating

its credit portfolio.

Presently Bank has overseas presence in 20 foreign countries spread over 5 continents

with 53 offices including 4 Subsidiaries, 4 Representative Offices and 1 Joint

Venture, at key banking and financial centres viz., Tokyo, Singapore, Hong Kong,

London, Jersey, Paris and New York.

Contribution of foreign branches in the global business of the Bank as at 31.03.2013

is as under:

Deposits 22.98%

Advances 30.36%

Business Mix 26.19%


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Recent Awards and Accolades:


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1.3 CREDIT APPRAISAL SYSTEM

1.3.1 Types of Lending:

For a business on the growth phase with a wide range of opportunities to explore

timely availability of credit is an integral ingredient needed to scale new heights.

Bank provide services ranging from Funded to Non-Funded, from Short Term toLong Term and from Credit to Trade Services ensures that you get finance the wayit is best suited for the business.

1. Cash Credit

Bank offer Cash Credit facilities to meet day-to-day working capital needs. CashCredit is provided against the primary security of stock, debtors, other current assets,etc., and/or collateral security of movable fixed assets, immovable property, personalor corporate guarantee, etc. Interest is charged not on the sanctioned amount but onthe utilized amount.

2. Working Capital Demand Loan

Bank also provides working capital facilities in the form of Working Capital DemandLoan instead of cash credit facility. The primary or collateral security will be asmentioned in cash credit facility. Here also interest is levied on the amount drawn

rather than on the amount utilized.

3. Export Finance

Bank provides finance for export activities in the form of Pre-Shipment Credit againstfirm order and or Letter of Credit and Post shipment credit. Credit is available for

procuring raw materials, manufacturing the goods, processing and packaging thegoods and shipping the goods. Finance is provided in Indian or foreign currencydepending upon the need of the borrower.

4. Short Term Loan

Working Capital facilities can be availed to meet day-to-day working capital needsand Term Loan for the capital expenditure. However there may be occasions where adhoc or short-term finance is needed for general corporate purposes, meetingtemporary mismatches in working capital or for meeting contingent expenses. In suchsituations Bank provides Short Term Loans for tenure upto a year so as to ensure that

business runs smoothly.

5. Long Term Loan

Given the growth opportunities business enjoys, long-term funds may be needed for

capex or capacity expansions or plant modernization and so on. Keeping theserequirements in mind Bank provides term loans up to acceptable tenor with suitable


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moratorium, if required, and repayment options structured on the basis of your estimatedcash flows. These loans are primarily secured by a first charge on the fixed assetsacquired through the loan amount. Suitable collateral security is also taken wheneverrequired.

6. Clean Bill Discounting

Bank provide clean bill discounting facilities to fund receivables. Bank discount billsor receivables from credit worthy clients and provide credit against that. This facilityis provided for a period of 3-6 months depending upon the tenor of the bill.

7. LC Backed Bill Discounting

Bank discounts trade bills drawn under Letters of Credit issued by reputed banks tofund the receivables. This facility is provided for a period of 3-6 months depending

upon the tenor of the bill or Letter of Credit.

8. Co-Acceptance of Bills

Bank also provides co-acceptance of trade bills depending upon the need of the

borrowers Credit Facilities against Guarantee or Stand by Letter of Credit issued by

Foreign Banks. Various foreign companies set up subsidiary in India. Bank provides

funding to such companies against guarantees or SBLCs of acceptable foreign banks.

9. Letter of Credit

Apart from fund based working capital facilities Bank provide a range of Non-FundBased facilities such as Letter of credit, Bank Guarantees, Solvency certificates, etc.Letter of Credit is provided to meet trade purchases. These are generally provided for3-6 months depending upon Trade cycle. Apart from this Bank provide Import Letterof Credit for importing machinery or capital goods. Such LCs are for tenure rangingfrom 1-3 years depending upon the need of the borrower.

10. Bank Guarantee

Bank provides Bank Guarantee on behalf of the clients to various other entities such asGovernment, quasi govt. bodies, corporate and so on. Bank provides a range of guaranteesuch as Performance guarantee, financial guarantee, EPCG etc. The tenure of the Bankguarantees range from 1year to 10years depending upon the purpose of theguarantee.

11. Solvency Certificates

Bank also provide solvency certificate depending upon the need of borrower.

1.3.2 Appraisal Techniques


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The entire gamut of credit appraisal can be segregated into 7 categories as under:

1) Borrower Appraisal 2) Technical Appraisal 3) Management Appraisal 4)

Financial Appraisal 5) Economic Appraisal 6) Market Appraisal 7)

Environmental Appraisal.

1) Borrower Appraisal: Confidence is the basis of all credit transaction, which a

lender shouldhave in the honesty, ability & willingness of the borrower to repay the

loan amount. The basis of this confidence is derived from 5 Cs of the borrower as

given hereunder.

a) Character: It is constituted by honesty, sobriety, good habits, personality, the

ability &willingness to keep his words under all circumstances.

b) Capacity: The ability of the borrower to manage an enterprise successfully with

the resources available to him. His educational, technical, & professional

qualification, his present activity, experience in the line of business, experience of

family, special skill, knowledge, past record would indicate his capacity to manage

the show & repay the loan successfully.

c) Capital: It is the ability of the borrower to meet the loss, if any, sustained in the

business from his own investment or capital without shifting it to his creditor or

banker. Unless a borrower has stake in the business, he may not take interest in its

success.

d) Conditions: It is the ability of the borrower to meet the conditions stipulated by the

Bank

e) Collateral: It is the ability of the borrower to provide collateral for safety of the

loan

2) Technical Appraisal: It involves detailed study of following aspects:

a. Availability of infrastructure e.g. land, location, power, water etc

b. Leasing/registration requirements.

c. Selection of technology

d. Availability of suitable technical process.

e. Availability of raw material, skilled labor etc.

3) Management Appraisal:


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a) In case of Proprietorship firm/Partnership firm/Enterprises run by individuals,

careful appraisal of the individual borrowers shall be the deciding factor to finance

the project.

b) In case of corporate borrowers and large borrowers, it is usually a set of

professionals who manage the entity in specific areas of management i.e.production, finance, marketing, personal etc. Unless there is a complete integration

of all these functions within an organization, it cannot function effectively.

c) In all the above cases branches must ensure that concern has necessary key

expertise required for the critical functions.

4) Financial Appraisal: It refers to the following aspects of the project/unit:

a. Determination of the cost of the project.

b. Assessment of the source of funds/means of financing of the project.

c. Profitability Estimates

d. Break Even Analysis

e. Cash flow projection

f. Projected Balance Sheet.

5) Economic Appraisal:

a) The performance of a project is influenced by variety of other social, economic &

cultural factors viz. employment potential, development of industrially backward

areas, environmental pollution etc.

b) The project must yield best possible return to the society in general & the investor

in particular.

c) One of the most important of appraising this is the computation of Internal Rate of

d) Return of the Project (IRR).

6) Market Appraisal: Following aspects of market survey are taken into account:

a) General market prospects of the product: various aspects such as Import/export

policies,

licensing norms, monetary & fiscal policies of RBI as well as total number of units

producing similar products, their installed capacity, degree of health, special

incentives

or support program of the Govt. are looked into.

b) Position of the product vis--vis the competitors: Requires in-depth study of

competitive


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strength/weakness of the proposed product in relation to its rivals/competitors to

decide future strategies.

c) Size of the market & share of the proposed unit: After the above studies, now, it is

required to estimate the share of the market that may be claimed by the new product.

d) Price: The price assumed by the entrepreneur should be realistic vis--vis those of

his competitors. If the products are new, they must have competitive edge to make the

presence felt.

7) Environmental Appraisal: Now that environmental issues can also hamper the

performance of a project, obtaining certificate from pollution control board (if

required) etc should be looked into before financing.

1.3.3. Financial Evaluation

It involves evaluation of financial statements of the borrowers to ascertain the

financial health of the company. Financial statements are rearrangement as described

in detail below and rearranged financial statements are used to ascertain the capital

requirements, liquidity, long-term solvency, debt-repayment capacity etc. of the

business involved. Various components of financial evaluation are as follows:

Classification and Rearrangement of Balance Sheet items

Financial statements contain the information about the financial health of enterprise.

Since different applicants use different formats and classification of some of the items

present in the balance sheet is subjective, it becomes necessary to re-arrange the

balance sheet items to achieve standardization. Various components ofthe balance

sheet are used in calculating ratios like Debt Equity Ratio (DER), Debt-Service

Coverage Ratio (DSCR), Current Ratio, Fixed Asset Coverage Ratio (FACR),

Maximum Permissible Bank Finance (MPBF) etc. There are guidelines from the RBI

and Bank on the permissible values of these ratios and relaxation permissible, if any.

Proper rearrangement of financial statements becomes critical in credit lending

decision making.

Classification of items into various heads depends on the policies of the bank. For

BOB Classification of a particular liability as a current liability or long term liability

etc. depends on the internal guidelines of the Bank.


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The reclassifications to be done as per the Banks/RBIs guidelines are detailed

below:

Current Liabilities

Current liabilities include the known obligations to be within a year. These are

classified as:

1. It will include all short term bank borrowings, whether secured or unsecured,

including bills purchased or discounted.

2. All liabilities which are maturing within a year will be treated as current liability,

whether secured or unsecured.

3. Term loan instalments, repayment of deposits etc. due less than one year will be

treated as current liability for the purpose of balance sheet analysis but not so for

assessment of working capital.

4. Preference share capital to be redeemed within a year will be shown as current

liability.

5. Provision for payment of taxes is to be netted with advance payment of tax.

6. Advances received from customers against supply of goods are to be treated as

current liabilities. Whenever these are required to be statutorily invested in specified

assets, to that extent netting may be allowed.

7. Deposits from dealers, security deposit, earnest deposit received, tender depositsreceived etc. should be treated as long term liability, irrespective of its maturity.

8. Disputed liabilities in respect of excise duty, income tax/customs duty shown as

contingent liability should not be taken as current liability for the purpose of

calculation of MPBF, if these are delayed beyond one year and borrower may be

asked to make suitable provisions.

Current Assets

1. Bank balance will include any credit balance in any deposit account like savings

bank, current account with any bank. It will not include fixed deposit.

2. Investments include only government securities which are unencumbered and fixed

deposits which are not under lien for any facilities like bank guarantee, letters of

credit etc.

3. Dead, obsolete, non-moving inventories should not be treated as current assets.

4. Sundry debtors which are very old should not be treated as current assets.

5. Loans and advances for supply of plant & machinery should not be included in


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current assets.

6. Advances paid to suppliers including associate concerns for supplies of more than

normal trade practice should not be treated as current assets.

7. Advance payment of tax and provision for taxation should be netted.

8. Deposit kept with public bodies for normal business operations like security

deposit, earnest deposit, tender deposit should not be treated as current assets,

irrespective of its maturity.

9. Export receivables will be treated as current assets.

10.Bills discounted and bills purchased outstanding will be included under receivables

and corresponding amount shown as bank borrowings under current liabilities.

Calculating key Financial Ratios:

Current financials of existing operations, project funding information like sources of

funds etc. and future projections are used for calculating key financial ratios for a

period of time. These ratios tell us a lot about a unit's liquidity position, managements'

stake in the bbtusiness, capacity to service the debts etc. The financial ratios which are

considered important are discussed as under:

Debt-Equity Ratio (DER)

DER =

This ratio indicates relationship between the external term borrowings and the own

funds of the concern. Bank takes total term liabilities as Debt i.e. total liabilities minus

net worth and total current liabilities. Equity means net worth of the concern minus

intangible and fictitious assets. However, the subordinated funds (i.e. long-term

unsecured loans from friends and relatives, etc.) may be considered as quasi-equity,

generally for non-corporate borrowers, and included in equity while arriving at ratio, if

the borrower retains the same at the existing level/ projected level during the currency

of Bank Loan. The subordinated debt however should not exceed borrowers tier I

capital i.e. capital plus free reserves less intangible assets. A ratio of 3:1 is considered

satisfactory.

Tangible Net Worth to Total Outside Liabilities (TNW/TOL):


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TNW/TOL=

This ratio gives a view of borrower's capital structure. If the ratio shows a rising trend,

it indicates that the borrower is relying more on his own funds and less on outside

funds and vice versa.

Profit-Sales Ratio:

PSR=

This ratio gives the margin available after meeting cost of manufacturing. It provides

a yardstick to measure the efficiency of production and margin on sales price i.e. thepricing structure.

1.3.4. Working Capital

Introduction:

(i) Any business enterprise whether engaged in manufacturing or purely trading

activity, has to have sufficient capital to finance both, its fixed and long term assets,

viz. land, building, machineries, etc. and to maintain certain level of short term assets

for smooth conduct of day to day business activities/ production schedule. Such short

term assets which are required for day to day operation are called the current assets.

(ii) The amount of current assets required for a smooth conduct of business is

dependent on the nature of the activity, availability of the raw materials, level of

production, storage capacity and funds available. So the funds/capital actually

required to maintain this required level of current assets, is called the gross working

capital.

(iii) Out of the level of gross working capital, required as above, the borrower raises

the necessary funds from many sources, viz.:

(a) Share Capital

(b) Retained Profits

(c) Bank Borrowings

(d) Trade Creditors

(e) Advance from Purchasers

(iii) Out of the above, credit available in the form of trade creditors and advance from

purchasers etc., are sources of finance which are short term in nature and are available as


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per trade practices and market conditions. The remaining resources are, therefore, to be

raised from own capital or through bankborrowing. Such short term credits available

to the firm are called current liabilities and the difference of gross working capital

and the current liabilities is called the 'Net Working Capital'.

Net Working Capital:

There are two concepts of working capital:

1. Gross working capital

2. Net working capital

The gross working capital is the capital invested in the total current assets of the

enterprises current assets are those Assets which can convert in to cash within a short

period normally one accounting year.

Net working capital is the excess of current assets over current liability, or say

NET WORKING CAPITAL = CURRENT ASSETSCURRENT LIABILITIES.

In a narrow sense, the term working capital refers to the net working.

1.3.5 Appraisal of Bank Finance:

The appraisal of bank finance for working capital thus involves the following steps:

(i) Estimation of the Level of Gross Working Capital

(ii) Estimation of the Level of Current Liabilities

(iii) Computation of Net Working Capital Gap

(iv) Computing the share of NWC Gap required to be brought by the borrower as

Margin.

(v) Computation of the Level of Bank Finance.

Estimation of Gross Working Capital:

For a systematic and proper estimation of the gross working capital requirements of a

firm, it is essential

to identify its various components and analyze them in detail.

(A) Operating Cycle Method


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Every business unit has an operating cyclewhich indicates that a unit procures raw

material from its funds, convert into stock in process which again is converted into

finished goods which can be sold for cash and thus transformed into fund.

Alternatively it can be sold on credit and on realization thereof gets converted into

fund.

Thus every rupee invested in current assets at the beginning of the cycle comes back

to the promoter with the profit element added, after the lapse of a specific period of

time. This length of time is known as operating cycle or working capital cycle.

Figure 1.1: Operating Cycle

In order to keep the operating cycle going on, certain level of current assets are

always required, the total of which gives the amount of total working capital required.

Thus total working capital can be obtained by assessing the level of various

components of current assets.

The operating cycle is therefore measured in terms of days of average inventory

held for every major category of working capital components.

(B) Components of Gross Working Capital:

In any typical manufacturing unit, the components that constitute the gross

working capital or current assets are as under :

i. Raw materialsii. Consumable stores and spares


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iii. Stock in process

iv. Finished goods

v. Receivables

vi. Cash and bank balance

vii. Other current assets.

Data required for assessment of working capital requirement

For assessing the working capital needs of an organization, bank follows CMA

(Credit Monitoring Arrangement). It is required by banks and other financial

institutions, to introspect or study the minutes of balance sheet and other financialstatements of a body corporate for financing their projects. In other words it is the

detailed explanation of the balance sheet and other financial ratios of the firm or any

other corporate.

The CMA includes analysis of following six documents:

i) Existing and proposed banking arrangements

ii) Operating statement

iii) Analysis of Balance Sheet

iv) Buildup of current assets and current liabilities

v) Calculation of MPBF (Maximum Permissible Bank Finance)

vi) Fund Flow Statement

Estimation of Level of Current Liabilities under MPBF method:

Once the gross working capital or current assets are computed as above, it is essential

to find out the amount of credit available to the borrowers in purchase of raw

materials, advance payment received from buyers, deposits from dealers, provisions

for statutory liabilities, etc. The RBI had issued guidelines on classification of various


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items constituting current liabilities for the purpose of assessment of working capital.

They are listed below with guidelines on composition of these items.:

(a) Short term bank borrowings:

Includes bills purchased, bills discounted from the bank, etc. Unsecured loans. Public deposits, viz. fixed deposits maturing within one year. Sundry creditors (trade) for raw materials and consumable stores and spares:

It is assessed on the basis of normal credit available for purchase ofraw material.

If usance letter of credit facility is proposed, the period of creditavailable due to availment of such letter of credit facilities should bereflected in the level of sundry creditors.

Projected level of sundry creditors should be reasonable with referenceto the quantum of purchases, market practice and past trends.

(b) Interest and other charges accrued but not due for payment:

It should be related to the amount of loans and debts due and its period for

which such liabilities

are accrued.

(c) Advance/progress payments from customers:

Where deposits are required in terms of regulations formed by theGovernment to be invested in a specified manner (advance for booking of

vehicles), the benefit of netting may be allowed to the extent of such

investment in approved securities and only the balance amount need be

classified as current liability.

Where on account of different accounting procedure progress payments areshown on the liabilities side without deduction from work-in-progress, bankmay set off progress payments

against work-in-progress. Advance payment received are also adjusted

progressively from the value of work completed.

Outstanding advance payment are to be reckoned as current liabilities orotherwise depending upon whether they are adjustable within a year or later.

(d) Deposits from dealers, selling agents, etc.:

Deposits from dealers, selling agents, etc. may be treated as term liabilitiesirrespective of their

tenure, if such deposits are accepted to be repayable only when thedealership/agency is


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terminated after due verification by banks.

The deposits which do not satisfy the above condition should continue to beclassified as current liabilities.

(e) Instalments of term loans, deferred liabilities, debentures, redeemable preferenceshares and long

term deposits payable within one year:

It should be proportionate to the total liabilities under each of the items above. The RBI has directed that for the purpose of Working capital assessment only

such installments of term loan, debentures, etc. due within a year need not be

treated as current liability. In other words, such items will be treated as current

liabilities only for the purpose of balance sheet analysis and computation of

current ratio.

(f) Statutory Liabilities:

Provident fund dues. Provision for taxation. Sales tax, excise, etc. Obligations towards workers considered as statutory. Others.

In cases where specific provisions have not been made for the estimated or

accrued liabilities and will be eventually paid out of general reserves, estimated

amount should be shown as current liabilities.

Disputed excise liabilities shown as contingent liability or by way of note to the

balance sheet, need not be treated as a current liability for calculating the

permissible bank finance, unless it has been collected or provided for in the

accounts of the concern.

Provision for disputed excise duty should be classified as current liabilities,

unless the amount is payable in instalments spread over a period exceeding

one year as per the orders of competent authority like the Excise Department

or in terms of the directions of a competent court. In such cases, instalments

payable are to be classified as long term liability.

Where the provisions made for disputed excise duty is invested separately, say in

fixed deposits with banks, such provision may be set off against the relative

investment.

Disputed liabilities in respect of income tax, customs and electricity charges need

not be treated as current liability for computing maximum bank finance, except to

the extent provided for in the books of the concern.(j) Miscellaneous Current Liabilities:


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(i) Dividends payable

(ii) Liabilities for expenses

(iii) Gratuity payable within 1 year

(iv) Other provisions

(v) Any other payment due within 12 months

The amount would be based on estimated or accrued amount which are anticipated to

cover expenditure within the year for known obligations, viz. the amount which can

be determined only approximately as for example, provisions, accrued bonus, taxes,

etc.

Computation of Net Working Capital:

(i) Net working capital is defined as gross working capital minus total current

liability.

(ii) Total Current Liability is Short Term Bank Borrowing + Other Current Liabilities.

(iii) If a short term bank borrowing is NIL, then the gross working capital is financed

entirely by other current liability. Normally it is not the case.

(iv) So the difference between gross working capital and other current liabilities(excluding bank borrowings) is called the working capital gap. The question is how

much of this gap is to be financed by the bank and how is the borrower required to

make up the remaining amount.

Margin required to be brought by borrower under various methods of lending:

The extent upto which the working capital gap can be financed by the bank will

depend upon the method of lending under which the assessment of working

capital is required to be made.

(A) First Method of Lending (I METHOD):

Under the first method of lending, the borrower is required to contribute a minimum

of 25% of the working capital gap from the long term sources. The balance amount

i.e. 75% of the working capital gap represents the maximum permissible bank finance

(MPBF). Where the net working capital is more than the amount required to be

provided by the borrower, the maximum permissible bank finance would get reduced


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to that extent. To ensure compliance under this method of lending, the current ratio of

the concern should not be less than 1.17:1.

(B) Second Method of Lending (II METHOD):

The second method of lending stipulates that the borrower is required to contribute a

minimum of 25% of the total current assets from the long term sources(Net Working

Capital) irrespective of the working capital gap. The maximum permissible bank

finance will, therefore, be working capital gap less the

amount to be so contributed by the borrower. Where the net working capital is more

than the stipulated minimum contribution, the maximum permissible bank finance

would get reduced to that extent. To ensure compliance under this method of lending,

the current ratio of the concern should not be less than 1.33:1. The above two

methods can be illustrated by an example given hereunder:

In the example, it is observed that under the first method of lending the borrower is

entitled for an MPBF of 165 only, whereas he has availed bank borrowing of 200,

thus resulting in an excess borrowing of 35. Under the second method the MPBF

works out to 128 only and the excess borrowings increases to 72.The borrower is

thus, required to bring in additional long term funds of Rs. 35/- and 72/-under first

and second method of lending respectively.

Current Liabilities Current Assets

Creditors for purchase 100 Raw materials 200

Other Current Liabilities 50 SIP 20

Total Current Liabilities

other than Bank borrowing 150 Finished goods 90

Bank Borrowing including Receivables including billsbills discounted with bankers 200 discounted with bankers 50

Total Current Liabilities 350 Other Current Asset 10

Total Current Asset 370

1st Method 2nd Method

Total Current Asset 370 Total Current Asset 370

Less: Current Liabilities

other

than

bank borrowings 150 Less: 25% of Current Asset 92

Working Capital GAP 220 278


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Less: 25% of Working

Caiptal

Less: Current Liabilities other than

bank

GAP 55 borrowing 150

Maximum Permissible Bank

Finance 165

Maximum Permissible Bank

Finance 128Excess Borrowing 35 Excess Borrowing 72

Current Ratio 1.17 Current Ratio 1.79

TABLE 1.1

Assessment of Non-Fund Based Working Capital Facility

The credit facilities given by the banks where actual bank funds are not involved are

termed as 'non-fund based facilities'. These facilities are divided in three broad

categories as under:

Letters of credit Guarantees Co acceptance of bills/deferred payment guarantees.

Units for the above facilities are also simultaneously sanctioned by banks while

sanctioning other fund based credit limits.

Facilities for co acceptance of bills/deferred payment guarantees are generallyrequired for acquiring plant and machinery and may, technically be taken as a

substitute for term loan which would require detailed appraisal of the borrower's

needs and financial position in the same manner as in case of any other term loan

proposal.

Letter of Credit: Letter of credit (LC) is a method of settlement of payment of a

trade transactionand is widely used to finance purchase of raw material, machinery

etc. It contains a written undertaking by the bank on behalf of the purchaser to the

seller to make payment of a stated amount on presentation of stipulated documents

and fulfillment of all the terms and conditions incorporated therein. Letters of credit

thus offers both parties to a trade transaction a degree of security. The seller can look

forward to the issuing bank for payment instead of relying on the ability and

willingness of the buyer to pay.

Letter of Credit Mechanism

Any business/industrial venture will involve purchase transactions relating to


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machine/other capital goods and raw material etc., and also sale transactions relating

to its products. The customer may be an applicant for a letter of credit for his

purchases while be the beneficiary under other letter of credit for his sale transaction.

The complete mechanism of a letter of credit may be divided in three parts as under:

Issuing of Credit: Letter of credit is always issued by the buyer's bank(issuing bank) at the request and on behalf and in accordance with the

instructions of the applicant. The letter of credit may either be advised directly

or through some other bank. The advising bank is responsible for transmission

of credit and verifying the authenticity of signature of issuing bank and is

under no commitment to pay the seller.The advising bank may also be

required to add confirmation and in that case will assume all the liabilities of

issuing bank in relation to the beneficiary as stated already.

Negotiation of Documents by beneficiary: On receipt of letter of credit, thebeneficiary shall arrange t006F supply the goods as per the terms of L/C and

draw necessary documents

as required under L/C. The documents will then be presented to the

negotiating bank for

payment/acceptance as the case may be. The negotiating bank will make the

payment to the

beneficiary and obtain reimbursement from the opening bank in terms of credit.

Settlement of Bills Drawn under Letter of Credit by the opener: The laststep involved in letter of credit mechanism is retirement of documents received

under L/C by the opener. On receipt of documents drawn under L/C, the opening

bank is required to closely examine the documents to ensure compliance of the

terms and conditions of credit and present the same to the opener for his scrutiny.

The opener should then make payment to the opening bank and take delivery of

documents so that delivery of goods can be obtained by him.

Types of Letter of Credit: Letter of credit may be divided in two broad categories as

under:

(i) Revocable letter of credit. This may be amended or cancelled without prior

warning or notification to the beneficiary. Such letter of credit will not

offer any protection and should not be accepted as beneficiary of credit.


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(ii) Irrevocable letter of credit. This cannot be amended or cancelled without the

agreement ofall parties thereto. This type of letter of credit is mainly in

use and offers complete protection to the seller against subsequent

development against his interest.

Documents required from the Borrower for Bank Credit

a. Copies of audited financial statement for the last 3 years/ Provisional Financial

statement for the latest year, if accounts for that year are not audited, and the audited

Financial Statements for the preceding 2 years.

b. Copy of last 2 years Income Tax Return for the firm.

c. Copies of insurance policies in respect of goods and premises insured

d. Documents evidencing constitution of the firm like Memorandum & Articles ofAssociation, Certificate of Incorporation, and Partnership Deed etc.

e. Pan card of the firm/ company

f. Identity proof (passport copy, voter ID, driving license, PAN card) of proprietor/allpartners/ all directors

g. Signature verification of proprietor/ all partners/ all directors/ all authorizedsignatories from the existing Banker.

h. CA certified certificate of Net Worth or Personal Balance Sheets of proprietor/allpartners/ all directors

i. CA certified Declaration of borrowing from Banks/ Financial Institutions (FIs) as onthe date of declaration

j. Duly completed application form

k. CMA data for next year

l. Electricity bill/ telephone bill copy in the name of the firm


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Factors taken care of during the analysis

1. Credit rating-An assessment of credit worthiness of corporations. It is based upon the history of

borrowing and repayment, as well as the availability of assets and extent of liabilities.

Credit is important since individuals and corporations with poor credit will havedifficulty finding financing, and will most likely have to pay more due to the risk ofdefault.

a) Credit Rating by Bank of India

Credit Rating Tool :It is software that is used by Bank of India for assessingthe credit worthiness of the company. It helps the bank to give individual

score to company on different parameters and according to which it scores

keeping in view the past record and financial status of the company.

If the score given by the software is acceptable then the appraisal can betaken beyond.

b) External Rating :

There are several RBI approved Credit rating Agencies like CRISIL, ICRA, CARE ,

Fitch etc.

who do the rating of Mid-Corporate. CRISIL being most popular, it is considered

here.

CRISIL Rating indicates the enterprise performance capability and financial strength.

CRISIL

Ratings are entity-specific ratings, unlike credit ratings, which are debt-obligation-specific.

CRISIL Rating reflects the level of creditworthiness of the enterprise, adjudged in

relation to

other enterprises.

2. Defaulters list- RBI DEFAULTERS LIST / CIBIL check

In 2004, RBI authorised CIBIL to publish a list of defaulters of Rs 1 crore and above

and also give out details of wilful defaulters of Rs 25 lakh and above against whom

suits have been filed. The measure that followed the 2002 scheme that defined wilfuldefaulters and terms like diversion of funds and siphoning of funds, was aimed at

exerting moral pressure on the defaulter.

Under the securitisation ordinance, banks have the right to acquire assets of wilful

defaulters. RBI later expanded the definition of wilful defaulters by including

companies that try to dispose of mortgaged properties without the knowledge of the

lenders. In July this year, RBI issued a master circular combining all its instructions

and directions in this regard, with a view to making available credit information

pertaining to willful defaulters to banks and blocking further bank finance to these

firms.


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3. Security

Primary security- It is an investment for which the Bank Finance is beingraised.

Collateral security- Property or other assets that a borrower offers a lender tosecure a loan. If the borrower stops making the promised loan payments, the

lender can seize the collateral to recoup its losses. Because collateral offers

additional security to the lender in case the borrower fails to pay back the loan.

Loans that are secured by collateral typically have lower interest rates than

unsecured loans. A lender's claim to a borrower's collateral is called a lien.


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CHAPTER-2

RESEARCH METHODOLOGY

2.1 Objectives of study:

The objectives of the study are as follows:

Gathering information about the company and its operations. It involves studying the

following:

a.) Stock maintained by the company.

b.) Turnover of the Company and Customer & Industry / Market profile.

c.) Further the general profile of the company is studied and also its past dealings with

the bank

are also considered.

Industry analysis is taken up after studying about the company and its operations.

Under this the

present conditions in the industry are studied, likely trends in the industry and its

expectations

about future.

Next the credit appraisal process is undertaken, it involves steps like studying the

proposal,

assessment of working capital requirement, proposed financing/sharing pattern and

security

details are studied. Then credit rating is done where the company is rated underdifferent heads

namely financial performance, market position, industry outlook etc. according to the

guidelines

given in the banks manual.

Bank officials give comments on the conduct of account if it is an existing one. Then

risk

assessment is undertaken and policy compliance is considered.

Then the analysis of periodic monitoring system is done and lastly the

recommendations aregiven.

The basic purpose of this whole process is assessing the viability of the project and

minimization or

management of the risk. It involves assessing the requirements of the borrower and

studying its credentials, to decide upon acceptable level of exposure. Around 90% of

commercial banking risks take

the form of credit risk. Therefore the process of Credit Appraisal by Bank of India had

a thorough

feasibility reviews, followed by the credit rating so as to bring the risk exposure to

bank withincontrollable limits.


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2.2 Methodology

2.2.1 Type Of ResearchThe data collected in the report is both qualitative and quantitative in nature.Thesedata is interpreted by the researcher as per his knowledge. Project report does not involve anyspecific research techniques, package and tools.

2.2.2 Research DesignThe study is descriptive in nature as it describes the CREDIT APPRAISAL SYSTEM

OF BANK OF INDIA FOR WORKING CAPITAL REQUIREMENT.

2.2.3 Sources Of Data

In order to learn and observe the practical applicability and feasibility of various

theories and concepts,the following sources were followed and referred:

Primary Sources of Information:

Meetings with the project guide and staff members of Bank of India. Meetings and discussions with clients at Bank of India. Meetings with various other department head.

Secondary Sources of Information:

RBI guidelines regulating the activities of the banks. Banks Credit and investment policy. Research papers, power point presentations and PDF files prepared by the

bank and its related officials.

Study of proposals and manuals. Mid-corporate Loan Policy at Bank of India. Referring to various national and international books and authors to study the

strategies/models for measurement available in the market.


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CHAPTER-3

FINDINGS AND ANALYSIS

CREDIT APPRAISAL FOR WORKING CAPITAL

REQUIREMENT

ABC AUTO COMPANY

3.1 BRIEF HISTORY:

M/s ABC Auto Company was formed as a partnership concern in the year 1999 with

Mr. X and Ms. Y as the main promoters. Mr. Z was the third partner in the firm. Upon

his demise, Master P, minor son of Mr. X, has been admitted for the benefits of the

partnership as per the reconstituted partnership deed dated 26.12.2008. The profit

sharing ratio is as under:

Mr. X 60%

Ms. Y 20%

Master P

(Being represented by

his mother)

20%

The partnership deed has been registered with The Registrar of Firms, Govt of N.C.T.

of Delhi at no. 1685 of 2000 on 05.12.2000. Suitable Form no. V has been filed with

Registrar of Firms, Delhi for change in constitution in partnership upon demise of

Mr. Z and induction of Master P as partner.

3.2 INFRASTRUCTURE:

The firm is having showroom cum workshop at Mathura Road, Faridabad (spreadover area of 10000 sq yds owned by firm and 7000 sq yrds owned by M/s MNO

enterprises). In the last financial year, it has started its "True Value" section for

dealing in 2ndhand Maruti cars and is setting up accidental repair workshop section at

**** sector, Mathura Road, Faridabad which is near to previous unit.

3.3 MANAGEMENT:


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Unit is mainly managed by Mr. X. He is ably supported by qualified and well

experienced by qualified and well experienced team of technicians and sales team to

oversee various functions. Overall management setup is satisfactory.

3.4 INDUSTRY ANALYSIS:

The Indian automobile industry has been going through an extremely tough phase

over the past 2 years due to the slowdown in economic growth, low consumer

confidence, high fuel prices and interest rates. With sharp deceleration in growth,

margins too have come under pressure and are at 5-year low. Nevertheless,

automobile manufacturers are continuing to invest in launching new models and

expanding capacity.

3.5 EXISTING FACILITIES:

The company has been availing CC limit of Rs. 34 crores from our ****** Branch.

After initial sanction of the credit facilities in May12, the company now wants to

avail its CC limit upto Rs. 47 crores.

3.6 FINANCIAL ANALYSIS:

ABC AUTO COMPANY

BALANCE SHEET

AS AT 31stMARCH, 2013

LIABILITIES AMOUNT(Rs.) ASSETS AMOUNT(Rs.)

PARTNERS

CAPITAL

Mr. X

Ms. Y

RESERVES AND

SURPLUS

SECURED LOAN

Term Loan (Against

Land, Building and

Plant & Machinery)

111,230,703.88

83,845,055.86

61,799,334.60

19,183,291.00

FIXED ASSETS

Building

Electrical Installation

Furniture & Fixture

Air conditioners

Office Equipments

Photocopy Machine

Plant & Machinery

Refrigerator

Scooter

63,520,489.85

178,688.41

940,022.29

95,765.27

577,441.37

4,949.31

3,258,318.89

14,765.40

4,010.16


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Against Hypothecation

of Stocks & Book

Debts

UNSECURED LOAN

From MNO Enterprises

From Partners and

Relatives

CURRENT

LIABILITIES &

PROVISIONSSundry Creditors

Advance from

Customers

Liability for Expenses

Provision for Income

Tax

340,680,521.00

2,888,629.00

3,290,000.00

8,454,721.00

5,652,142.00

3,106,091.00

802,419.00

Television

Tools & Equipments

Motor Vehicles

Computer

Capital WIP

CURRENT

ASSETS

Sundry Debtors

Inventories

Cash and Bank

Advances

Recoverable

Advance to Suppliers

Deposits

13,404.91

179,020.27

689,766.81

57,794.59

47,775,190.00

160,909,291.00

328,383,644.46

14,679,079.43

8,910,640.91

7,695,925.00

3,044,700.00

GRAND TOTAL 640,932,908.34 GRAND TOTAL 640,932,908.34


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TRADING, PROFIT & LOSS ACCOUNT

FOR THE YEAR ENDED ON 31stMARCH, 2013

PARTICULARS AMOUNT(Rs.) PARTICULARS AMOUNT(Rs.)

Opening Stock

Purchases

Electricity And Fuel

Charges

Carriage Inward

Workshop Service

Expense

P.D.I. Expenses

Free Service And

Warranty Labour

Expenses

GROSS PROFIT c/d

TOTAL

Interest And Bank

Charges

Other Interest

Insurance

Establishment

Expenses

Travelling And

Conveyance

Printing And

Stationary

General Expenses

Books And

365,422,255.92

1,494,42,031.00

4,581,557.00

3,225,461.00

8,818,457.00

8,062,140.00

2,295,301.00

87,727,893.54

1,974,568,096.46

51,768,417.00

128,100.00

421,839.00

16,269,802.00

960,210.00

164,525.00

91,241.00

27,120.00

70,142.00

332,810.00

956,841.00

3,275,896.00

Sales

Closing Stock

TOTAL

GROSS PROFIT b/d

Other Income

Incentives

1,646,184,452.00

328,383,644.46

1,974,568,096.46

87,727,893.54

13,091,484.00

5,271,277.00


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Periodicals

Postage And

Telegram

Rent, Rates AndTaxes

Legal And

Professional Charges

Repairs And

Maintenance

Telephone Expenses

Diwali Expenses

Charity And

Donation

Subscription Charges

Security Service

Expenses

Showroom Expenses

Selling And

Distribution Expenses

Interest On Capital

Partner's

Remuneration

Audit Fee

Depreciation

NET PROFIT

990,142.00

135,012.00

22,425.00

6,698.00

367,145.00

385,214.00

7,006,129.00

5,696,326.00

900,000.00

30,000.00

8,115,318.46

7,969,302.08

TOTAL 106,090,654.54 TOTAL 106,090,654.54

3.7 CMAThe analysis of balance sheet in CMA data is said to give a more detailed and

accurate picture of the

affairs of a corporate. The corporates are required by all banks to analyse their

balance sheet in this

specific format called CMA data format and submit to banks.


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Table 3.1- OPERATING STATEMENT (UNIT-1)

(Rs. in lacs)

SR.

NO. PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2

ACTUAL PROV. PROJECTION

I

Domestic Sales/Services

Provided 12303.79 14883.95 14903.42 16461.84 16791.08 17126.9 17469.44 1

II Export Sales 0 0 0 0 0 0 0

TOTAL SALES 12303.79 14883.95 14903.42 16461.84 16791.08 17126.9 17469.44 1

III OTHER INCOME 0 0 0 183.62 190 200 200

1 GROSS SALES 12303.79 14883.95 14903.42 16645.46 16981.08 17326.9 17669.44 1

2 Less: Excise Duty 0 0 0 0 0 0 0

3 NET SALES(1-2) 12303.79 14883.95 14903.42 16645.46 16981.08 17326.9 17669.44 1

4

%age rise(+) or fall(-) inNet Sales as comparedto previous year 0 20.98 0.14 11.69 2.02 2.04 1.98

5 COST OF SALES

A. Raw Material (Vehicles, Spares & Accessories)

I Imported 0 0 0 0 0 0 0

II Indigenous 11834.91 13917.44 14262.43 14944.21 15840.86 15990 16330

B. Other Spares

I Imported 0 0 0 0 0 0 0

II Indigenous 0 0 0 0 0 0 0

C. Packing Material 0 0 0 0 0 0 0D. Power 18.13 23.74 35.34 35.56 36 36 36

E. Fuel 7.91 8.63 11.25 10.25 10.46 10.66 10.88

F.Direct labour(Factorywages & Salary) 172.38 218.59 265.73 250.39 262.91 265.54 270.85

G.

OtherTrading/manufacturingExpenses 87.83 115.63 140.2 140.37 143.18 144.61 147.5

H. Depreciation 44.21 94.94 88.12 81.15 146.64 128.31 118.52

I.SUB-TOTAL (A TO

H) 12165.37 14378.97 14803.07 15461.93 16440.05 16575.12 16913.75 1

J.ADD:Opening Stock-in-Progress 0 0 0 0 0 0 0

SUB-TOTAL 12165.37 14378.97 14803.07 15461.93 16440.05 16575.12 16913.75 1

K.Deduct:Closing Stock-in-Progress 0 0 0 0 0 0 0

L.

COST OF

PRODUCTION(I+J-

K) 12165.37 14378.97 14803.07 15461.93 16440.05 16575.12 16913.75 1

M.Add:Opening Stock offinished goods 2303.98 2790.19 2951.87 3654.16 3283.83 3500 3500

SUB-TOTAL 14469.35 17169.16 17754.94 19116.09 19723.88 20075.12 20413.75 2

N.Deduct:Closing Stock ofFinished Goods 2790.19 2951.87 3654.16 3283.83 3500 3500 3500


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O.TOTAL COST OF

SALES(L+M-N) 11679.16 14217.29 14100.78 15832.26 16223.88 16575.12 16913.75 1

Table 3.1-Contd..

(Rs. in lacs)

SR.

NO. PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

6Selling General &Administrative Exp. 151.41 185.74 219.55 225.21 225 225 225

7 SUB-TOTAL(O+6) 11830.57 14403.03 14320.33 16057.47 16448.88 16800.12 17138.75

8

Operating Profit Before

Interest(3-7) 473.22 480.92 583.09 587.99 532.2 526.78 530.69

9 Bank Interest:

I. On Term Loan 76.14 62.86 48.23 28.62 16.39 1.59 0

II. On Working Capital 320.7 354.41 460.61 479.68 425 425 425

III.On Other Loans-Unsecured Loans 0 0 0 0 0 0 0

10

OPERATING

PROFIT AFTER

INTEREST(8-9) 76.38 63.65 74.25 79.69 90.81 100.19 105.69

11(I)ADD: Other Non-Operating Income 0 0 0 0 0 0 0

Sub-Total(Income) 0 0 0 0 0 0 0

(II)

Deduct:Other Non-Operating Exp.-Director's Remuneration 0 0 0 0 0 0 0

Pre. & Pre. OperatingExp. W/O 0 0 0 0 0 0 0

Sub-Total(Expenses) 0 0 0 0 0 0 0

(III)

Net of Other Non-Operating

Income/Exp.(net of11(I) & 11(i) 0 0 0 0 0 0 0

12Profit before tax/loss10+11(III) 76.38 63.65 74.25 79.69 90.81 100.19 105.69

13 Provision for taxes 0 0 0 8.02 9.08 10.02 10.57

14

NET

PROFIT/LOSS(12-13) 76.38 63.65 74.25 71.67 81.73 90.17 95.12

15(A)Drawings by thepartners/divident declare 0 0 0 13.97 12 12 12

(B) Divident Rate 0% 0% 0% 0% 0% 0% 0%

16

RETAINED PROFIT

(14-15)76.38 63.65 74.25 57.7 69.73 78.17 83.12

17retained profit to netprofit(%age) 100 100 100 80.51 85.32 86.69 87.38


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18Depreciation AddedBack 44.21 94.94 88.12 81.15 146.64 128.31 118.52

Add:Pre.-Pre- OperativeExpense W/O 0 0 0 0 0 0 0

19 Net cash Accruals 120.59 158.59 162.37 152.82 228.37 218.48 213.64

20 Repayment Obligation1. Towards Term Loan 0 0 0 151.92 57.88 0 0

2. Towards Other Loan,if any 0 0 0 0 0 0 0

Table 3.2- CALCULATION OF DEBT COVERAGE RATIO (UNIT-1)

(Rs. in lacs)

PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Net Profit BeforeTax 76.38 63.65 74.25 79.69 90.82 100.19 105.69 116.32

Interest for the

Year 76.14 62.86 48.23 28.62 16.39 1.59 0 0

Depreciation 44.21 94.94 88.12 81.15 146.64 128.31 118.52 103.7

Net Cash Generation 196.73 221.45 210.6 189.46 253.85 230.09 224.21 220.02

Interest 76.14 62.86 48.23 28.62 16.39 1.59 0 0

Installment 0 0 0 151.92 57.88 0 0 0

Intt. & InstallmentDue 76.14 62.86 48.23 180.54 74.27 1.59 0 0

DSCR 2.59 3.53 4.37 1.05 3.42 144.72 0 0

Avg. DSCR for next 3 years 2.23


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Table 3.3- ANALYSIS OF BALANCE SHEET (UNIT-1)

(Rs. in lacs)

SR.

NO. PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-

CURRENT LIABILITIES

1 Short Term Borrowings From Banks(Including BP/BD)

I From Applicant Bank 2655.16 3230.14 3474.28 3406.8 3400 3400 3400 34

II From Other Bank 0 0 0 0 0 0 0

III For wich BP & BD 0 0 0 0 0 0 0

SUB-TOTAL(A) 2655.16 3230.14 3474.28 3406.8 3400 3400 3400 34

2Short Term Borrowings From Others-Demand Loans Against FD 0 0 0 0 0 0 0

3 Sundry Creditors(Trade) 47.37 62.98 75.87 84.54 75 75 75

4Advance Pyaments FromCustomers/Deposit from Dealers 39.62 105.48 37.18 56.52 35 35 35

5 Proviion for Taxation 0 0 0 8.02 9.08 10.02 10.57 11.

6 Dividend payable 0 0 0 0 0 0 0

7 Other Stattutory Liabilities 0 0 0 0 0 0 0

8

Deposits/Installment Of TermLoans/DPGs/Debenture,etc,(Due within 1year) 51.93 0 0 0 0 0 0

9Other Current Liabilities & Provision (Duewithin 1 year) 24.41 23.96 47.11 31.06 50 40 40

SUB-TOTAL(B) 163.33 192.42 160.16 180.14 169.08 160.02 160.57 161.

10TOTAL CURRENT LIABILITIES

(A+B) 2818.49 3422.56 3634.44 3586.94 3569.08 3560.02 3560.57 3561.

TERM LIABILITIES

11 Debentures (not maturing within 1 year) 0 0 0 0 0 0 0

12 Preference shares (redeemable after 1 year) 0 0 0 0 0 0 0

13Term Loans (excluding installmentspayable within 1 year) 529.27 407.47 301.01 191.83 56.3 0 0

14

Deffered Payment Credits (excluding

installments due within 1 year) 0 0 0 0 0 0 0

15 Term Deposits (repayable after 1 year) 0 0 0 0 0 0 0

16 Other Term Liabilities (Unsecured Loan) 361.81 361.8 363.65 61.78 60 60 60

17TOTAL TERM LIABILITIES (Total of

11 to 16) 891.08 769.27 664.66 253.61 116.3 60 60

18

TOTAL OUTSIDE LIABILITIES

(10+17) 3709.57 4191.83 4299.1 3840.55 3685.38 3620.02 3620.57 3621.

NET WORTH

19 Ordinary Share Capital/Partner's Capital 1139.1 1168.21 1598.77 1950.08 1950.08 1950.08 1950.08 1950.

20 General Reserve/Profit & Loss Account 407.42 471.07 545.32 617.99 699.73 789.9 885.02 98

21 Revaluation Reserve 0 0 0 0 0 0 0

22 Other Reserves(excluding provisions) 0 0 0 0 0 0 0

23Surplus(+) or Deficit(-) in Profit & LossA/c 0 0 0 0 0 0 0

24 NET WORTH (Total 0f 19 to 23) 1546.52 1639.28 2144.09 2568.07 2649.81 2739.98 2835.1 2939.

25 TOTAL LIABILITIES (18+24) 5256.09 5831.11 6443.19 6408.62 6335.19 6360 6455.67 6561.


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Table 3.3 Cotnd..

(Rs. in lacs)

SR.

NO. PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016

CURRENT ASSETS

26 Cash and Bank Balance 58.24 139.29 83.26 146.8 33.73 14.16 119.09

27Investments (Other than long terminvestments) 425.59 425.59 477.75 0 0 0 0

I. Government & Other Trustee Securities 0 0 0 0 0 0 0

II. Fixed Deposit with Bank 0 0 0 0 0 0 50

28. I.Receivables Other than deffered &exports (including under BP/BD) 1000.26 1306.17 1248.74 1609.09 1600 1712.69 1746.94 17

II.Export Receivables (including underBP/BD) 0 0 0 0 0 0 0

29

Investments of deffered receivables

(due within 1 year) 0 0 0 0 0 0 0

30 Inventory

I. Raw Material (including stores)

a. Imported 0 0 0 0 0 0 0

b. Indegenous 0 0 0 0 0 0 0

II. Stock-in-Process 0 0 0 0 0 0 0

III. Finished Goods 2557.07 2704.87 3372.37 2963.83 3180 3180 3180

IV. Other Consumable Spares & Packing 184.96 195.22 205.84 200 200 200 200

a. Imported 0 0 0 0 0 0 0

b. Indegenous 48.16 51.78 75.95 120 120 120 120

V. Fuel 0 0 0 0 0 0 0

VI. Packing Material 0 0 0 0 0 0 0

31Advances to Suppliers of Raw Material& Stores/Spares 20.86 110.69 133.21 76.95 75 75 100

32 Advance Payment of Taxes/TDS 20.36 44.27 48.95 40.98 50 60 60

33 Other Current Assets 32.89 32.89 32.88 77.88 50 50 50

34

TOTAL CURRENT ASSETS total of

26 to 33) 4348.39 5010.77 5678.95 5235.53 5308.73 5411.85 5626.03 57

FIXED ASSETS

35 Gross Block 1202.69 1210.27 1242.29 1732.29 1732.29 1782.29 1782.29 18

36 Depreciation to Date 294.99 389.93 478.05 559.2 705.84 834.14 952.66 10

37 Net Block (35-36) 907.7 820.34 764.24 1173.09 1026.45 948.15 829.63 7

OTHER NON-CURRENT ASSETS

38 Investment/Book Debt/Advance/Deposit wich are not current assets

I. A

Investment Subsidiary

Companies/Affiliateds/Deposits 0 0 0 0 0 0 0

B. Others-GEB & Telephone Deposits 0 0 0 0 0 0 0

II.Advances to Suppliers of CapitalGoods & Contractors 0 0 0 0 0 0 0

III.

Deffered Receivables (maturity

exceeding 1 year) 0 0 0 0 0 0 0IV. Others (Loans & Advances) 0 0 0 0 0 0 0


41/68

39 Non-consumable Stores & Spares 0 0 0 0 0 0 0

40Other Non-current Assets including duefrom directors 0 0 0 0 0 0 0

41

TOTAL OTHER NON-CURRENT

ASSETS (Total 0f 38 to 40) 0 0 0 0 0 0 0

42

Intangible assets (patents, goodwill,prelim, expenses, bad/doubtful debts

not provided for,etc) 0 0 0 0 0 0 0

43 TOTAL ASSETS (34+37+41+42) 5256.09 5831.11 6443.19 6408.62 6335.18 6360 6455.66 65

44 Tangible Net Worth( 24-42) 1546.52 1639.28 2144.09 2568.07 2649.81 2739.98 2835.1 29

45

Net Working Capital (17+24)-

(37+41+42) to tally with (34-10) 1529.9 1588.21 2044.51 1648.59 1739.66 1851.83 2065.47 22

46 CURRENT RATIO (34/10) 1.55 1.47 1.57 1.46 1.49 1.53 1.59

47 DEBT-EQUITY RATIO (18/44) 2.4 2.56 2.01 1.5 1.4 1.33 1.28

ADDITIONAL INFORMATION

A. Arrears of Depreciation 0 0 0 0 0 0 0

B. Contingent Liabilities 0 0 0 0 0 0 0

I.Arrears of CumulativeDividends 0 0 0 0 0 0 0

II.

Gratuity Liability not provided

for 0 0 0 0 0 0 0

III.Disputed Excise/Custom/TaxLiabilities 0 0 0 0 0 0 0

IV.

Other Liabilities not provided

for 0 0 0 0 0 0 0


42/68

Table 3.4- OPERATING STATEMENT (UNIT-2)

(Rs. in lacs)

SR.

NO. PARTICULARS 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

I Domestic Sales/Services Provided 6000 7500 8250 8415 8583.3 8754.97

II Export Sales 0 0 0 0 0 0

TOTAL SALES 6000 7500 8250 8415 8583.3 8754.97

III OTHER INCOME 0 0 0 0 0 0

1 GROSS SALES 6000 7500 8250 8415 8583.3 8754.97

2 Less:Excise Duty 0 0 0 0 0 0

3 NET SALES(1-2) 6000 7500 8250 8415 8583.3 8754.97

4

%age rise(+) or fall(-) in Net

Sales as compared to previus year 0 25 10 2 2 2

5 COST OF SALES

A. Raw Material (Vehicles, Spares & Accessories)

I Imported 0 0 0 0 0 0

II Indigenous 7000 7275 7920 8078.4 8239.97 8404.77

B. Other Spares

I Imported 0 0 0 0 0 0

II Indigenous 0 0 0 0 0 0

C. Packing Material 0 0 0 0 0 0

D. Power 3.5 6 7.26 8.42 8.58 8.75

E. Fuel 2.5 3 3.6 4.21 4.29 4.38

F.

Direct labour(Factory wages &

Salary) 30 36 37.8 39.69 41.67 43.76

G.

Other Trading/manufacturing

Expenses 20 21 22.05 23.15 24.31 25.53

H. Depreciation 8.5 9.56 8.61 7.81 9.47 8.62

I. SUB-TOTAL (A TO H) 7064.5 7350.56 7999.32 8161.67 8328.29 8495.81

J. ADD:Opening Stock-in-Progress 0 0 0 0 0 0

SUB-TOTAL 7064.5 7350.56 7999.32 8161.67 8328.29 8495.81

K. Deduct:Closing Stock-in-Progress 0 0 0 0 0 0

L.COST OF PRODUCTION(I+J-

K) 7064.5 7350.56 7999.32 8161.67 8328.29 8495.81

M.Add:Opening Stock of finishedgoods 0 1250 1350 1350 1350 1350

SUB-TOTAL 7064.5 8600.56 9349.32 9511.67 9678.29 9845.81

N.

Deduct:Closing Stock of Finished

Goods 1250 1350 1350 1350 1350 1350

O.TOTAL COST OF

SALES(L+M-N) 5814.5 7250.56 7999.32 8161.67 8328.29 8495.81


43/68

Table 3.4 Cotnd..

(Rs. in lacs)

SR.

NO. PARTICULARS 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

6Selling General & AdministrativeExp. 40 60 60 60 60 60

7 SUB-TOTAL(O+6) 5854.5 7310.56 8059.32 8221.67 8388.29 8555.81

8


Interest(3-7) 145.5 189.44 190.68 193.33 195.01 199.61

9 Bank Interest:

I. On Term Loan 5.71 5.79 4.49 3.02 1.35 0.5

II. On Working Capital 121.88 162.5 162.5 162.5 162.5 162.5

III. On Other Loans-Unsecured Loans 0 0 0 0 0 0

10

OPERATING PROFIT AFTER

INTEREST(8-9) 17.92 21.15 23.69 27.81 31.15 36.61

11(I)

ADD: Other Non-Operating

Income 0 0 0 0 0 0

Sub-Total(Income) 0 0 0 0 0 0

(II)

Deduct:Other Non-Operating

Exp.- Director's Remuneration 0 0 0 0 0 0

Pre. & Pre. Operating Exp. W/O 0 0 0 0 0 0

Sub-Total(Expenses) 0 0 0 0 0 0

(III)


Income/Exp.(net of 11(I) & 11(i) 0 0 0 0 0 0

12 Profit before tax/loss 10+11(III) 17.92 21.15 23.69 27.81 31.15 36.61

13 Provision for taxes 2.69 3.17 3.55 4.17 4.67 5.4914 NET PROFIT/LOSS(12-13) 15.23 17.98 20.14 23.64 26.48 31.12

15(A)

Drawings by the

partners/dividend declare 0 0 0 0 0 0

(B) Divident Rate 0 0 0 0 0 0

16 RETAINED PROFIT (14-15) 15.23 17.98 20.14 23.64 26.48 31.12

17 retained profit to net profit(%age) 100 100 100 100 100 100

18 Depreciation Added Back 8.5 9.56 8.61 7.81 9.47 8.62

Add:Pre.-Pre- Operative Expense

W/O 0 0 0 0 0 0

19 Net cash Accruals 23.73 27.54 28.75 31.45 35.95 39.74

20 Repayment Obligation

1. Towards Term Loan 13 15.6 15.6 15.6 15.6 3.9

2. Towards Other Loan, if any 0 0 0 0 0 0


44/68

Table 3.5- CALCULATION OF DEBT SERVICE COVERAGE RATIO (UNIT-

2) (Rs. in lacs)

PARTICULARS 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-2Net Profit Before

Tax 17.92 21.15 23.69 27.81 31.15 36.61 40

Interest for the

Year 5.71 5.79 4.49 3.02 1.35 0.5

Depreciation 8.5 9.56 8.61 7.81 9.47 8.62

Net Cash Generation 32.13 36.5 36.79 38.64 41.97 45.73 48

Interest 5.71 5.79 4.49 3.02 1.35 0.5

Installment 13 15.6 15.6 15.6 15.6 3.9

Intt. & Installment

Due 18.71 21.39 20.09 18.62 16.95 4.4DSCR 1.72 1.71 1.84 2.08 2.48 10.4



45/68

Table 3.6- ANALYSIS OF BALANCE SHEET (UNIT-2)

(Rs. in lacs)

SR.NO. PARTICULARS 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

CURRENT LIABILITIES


I From Applicant Bank 1300 1300 1300 1300 1300 1300

II From Other Bank 0 0 0 0 0 0

III For wich BP & BD 0 0 0 0 0 0

SUB-TOTAL(A) 1300 1300 1300 1300 1300 1300

2

Short Term Borrowings From Others-

Demand Loans Against FD 0 0 0 0 0 0

3 Sundry Creditors(Trade) 6 7.5 7.5 7.5 7.5 7.5

4

Advance Pyaments From

Customers/Deposit from Dealers 6 7.5 7.5 7.5 7.5 7.5

5 Proviion for Taxation 2.69 3.17 3.55 4.17 4.67 5.49

6 Dividend payable 0 0 0 0 0 0

7 Other Stattutory Liabilities 0 0 0 0 0 0

8

Deposits/Installment Of Term

Loans/DPGs/Debenture,etc,(Due within 1year) 0 0 0 0 0 0

9Other Current Liabilities & Provision (Duewithin 1 year) 10 10 10 10 10 10

SUB-TOTAL(B) 24.69 28.17 28.55 29.17 29.67 30.49

10TOTAL CURRENT LIABILITIES

(A+B) 1324.69 1328.17 1328.55 1329.17 1329.67 1330.49

TERM LIABILITIES

11 Debentures (not maturing within 1 year) 0 0 0 0 0 0

12Preference shares (redeemable after 1year) 0 0 0 0 0 0

13Term Loans (excluding installmentspayable within 1 year) 50.71 40.9 29.78 17.2 2.96 0

14Deffered Payment Credits (excludinginstallments due within 1 year) 0 0 0 0 0 0

15 Term Deposits (repayable after 1 year) 0 0 0 0 0 0

16 Other Term Liabilities (Unsecured Loan) 0 0 0 0 0 0

17

TOTAL TERM LIABILITIES (Total of

11 to 16) 50.71 40.9 29.78 17.2 2.96 0

18TOTAL OUTSIDE LIABILITIES

(10+17) 1375.39 1369.07 1358.34 1346.37 1332.63 1330.49

NET WORTH

19 Ordinary Share Capital/Partner's Capital 350 350 350 350 350 350

20 General Reserve/Profit & Loss Account 15.23 33.21 53.35 76.98 103.46 134.58

21 Revaluation Reserve 0 0 0 0 0 0

22 Other Reserves(excluding provisions) 0 0 0 0 0 0

23Surplus(+) or Deficit(-) in Profit & LossA/c 0 0 0 0 0 0

24 NET WORTH (Total 0f 19 to 23) 365.23 383.21 403.35 426.98 453.46 484.58

25 TOTAL LIABILITIES (18+24) 1740.63 1752.27 1761.69 1773.36 1786.09 1815.07


46/68


47/68

Table 3.6 Cotnd..

(Rs. in lacs)

SR.NO. PARTICULARS 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

CURRENT ASSETS

26 Cash and Bank Balance 39.13 35.13 39.45 12.23 39.3 75.87

27Investments (Other than long terminvestments) 0 0 0 0 0 0

I. Government & Other Trustee Securities 0 0 0 0 0 0

II. Fixed Deposit with Bank 0 0 0 0 20 30

28.

I.

Receivables Other than deffered & exports

(including under BP/BD) 200 173.29 184.76 160.41 132.82 123.48

II.

Export Receivables (including under

BP/BD) 0 0 0 0 0 0

29

Investments of deffered receivables (due

within 1 year) 0 0 0 0 0 030 Inventory


a. Imported 0 0 0 0 0 0

b. Indegenous 0 0 0 0 0 0

II. Stock-in-Process 0 0 0 0 0 0

III. Finished Goods 1100 1200 1200 1200 1200 1200

IV. Other Consumable Spares & Packing 100 100 100 100 100 100

a. Imported 0 0 0 0 0 0

b. Indegenous 50 50 50 50 50 50

V. Fuel 0 0 0 0 0 0

VI. Packing Material 0 0 0 0 0 0

31

Advances to Suppliers of Raw Material &

Stores/Spares 150 100 100 150 150 150

32 Advance Payment of Taxes/TDS 5 5 5 5 5 5

33 Other Current Assets 20 20 20 20 20 20

34

TOTAL CURRENT ASSETS total of 26

to 33) 1664.13 1683.42 1699.21 1697.63 1717.12 1754.35

FIXED ASSETS

35 Gross Block 85 85 85 105 105 105

36 Depreciation to Date 8.5 16.15 22.53 29.28 36.03 44.28

37 Net Block (35-36) 76.5 68.85 62.48 75.73 68.98 60.73



I. A

Investment Subsidiary

Companies/Affiliateds/Deposits 0 0 0 0 0 0

B. Others-GEB & Telephone Deposits 0 0 0 0 0 0

II.

Advances to Suppliers of Capital Goods &

Contractors 0 0 0 0 0 0

III.

Deffered Receivables (maturity exceeding

1 year) 0 0 0 0 0 0IV. Others (Loans & Advances) 0 0 0 0 0 0


48/68

39 Non-consumable Stores & Spares 0 0 0 0 0 0

40Other Non-current Assets including duefrom directors 0 0 0 0 0 0

41

TOTAL OTHER NON-CURRENT

ASSETS (Total 0f 38 to 40) 0 0 0 0 0 0

42

Intangible assets (patents, goodwill,

prelim, expenses, bad/doubtful debts notprovided for,etc) 0 0 0 0 0 0

43 TOTAL ASSETS (34+37+41+42) 1740.63 1752.27 1761.69 1773.36 1786.09 1815.07

44 Tangible Net Worth( 24-42) 365.23 383.21 403.35 426.98 453.46 484.58

45

Net Working Capital (17+24)-

(37+41+42) to tally with (34-10) 339.44 355.25 370.66 368.46 387.45 423.86

46 CURRENT RATIO (34/10) 1.26 1.27 1.28 1.28 1.29 1.32

47 DEBT-EQUITY RATIO (18/44) 3.77 3.57 3.37 3.15 2.94 2.75


A. Arrears of Depreciation 0 0 0 0 0 0

B. Contingent Liabilities 0 0 0 0 0 0

I.

Arrears of Cumulative

Dividends 0 0 0 0 0 0

II.Gratuity Liability notprovided for 0 0 0 0 0 0

III.

Disputed

Excise/Custom/TaxLiabilities 0 0 0 0 0 0

IV.Other Liabilities notprovided for 0 0 0 0 0 0


49/68


50/68

Table 3.7 Cotnd..

(Rs. in lacs)

SR.

NO. PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 20

6Selling General &Administrative Exp. 151.41 185.74 219.55 225.21 265 285 285

7 SUB-TOTAL(O+6) 11830.57 14403.03 14320.33 16057.47 22303.37 24110.68 25198.06 25

8


Interest(3-7) 473.22 480.92 583.09 587.99 677.71 716.22 721.37

9 Bank Interest:

I. On Term Loan 76.14 62.86 48.23 28.62 22.09 7.37 4.49

II. On Working Capital 320.7 354.41 460.61 479.68 546.88 587.5 587.5

III.

On Other Loans-Unsecured

Loans 0 0 0 0 0 0 0

10 OPERATING PROFITAFTER INTEREST(8-9) 76.38 63.65 74.25 79.69 108.74 121.34 129.38

11(I)

ADD: Other Non-Operating

Income 0 0 0 0 0 0 0

Sub-Total(Income) 0 0 0 0 0 0 0

(II)

Deduct:Other Non-Operating

Exp.- Director's Remuneration 0 0 0 0 0 0 0

Pre. & Pre. Operating Exp. W/O 0 0 0 0 0 0 0

Sub-Total(Expenses) 0 0 0 0 0 0 0

(III)


Income/Exp.(net of 11(I) &

11(i) 0 0 0 0 0 0 0

12 Profit before tax/loss 10+11(III) 76.38 63.65 74.25 79.69 108.74 121.34 129.38

13 Provision for taxes 0 0 0 8.02 11.77 13.19 14.12

14 NET PROFIT/LOSS(12-13) 76.38 63.65 74.25 71.67 96.97 108.15 115.26

15(A)

Drawings by the

partners/dividend declare 0 0 0 8 12 12 12

(B) Divident Rate 0 0 0 0 0 0 0

16 RETAINED PROFIT (14-15) 76.38 63.65 74.25 63.67 84.97 96.15 103.26

17

retained profit to net

profit(%age) 100 100 100 88.84 87.62 88.9 89.59

18 Depreciation Added Back 44.21 94.94 88.12 81.15 155.14 137.87 127.12

Add:Pre.-Pre- Operative

Expense W/O 0 0 0 0 0 0 0

19 Net cash Accruals 120.59 158.59 162.37 152.82 252.1 246.02 242.39

20 Repayment Obligation

1. Towards Term Loan 0 0 0 123.3 164.92 22.84 15.6

2. Towards Other Loan, if any 0 0 0 0 0 0 0


51/68

Table 3.8- CALCULATION OF DEBT SERVICE COVERAGE RATIO (UNIT-

1&2) (Rs. in lacs)

PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 20

Net Profit Before

Tax 76.38 63.65 74.25 79.69 108.74 121.34 129.38Interest for the

Year 76.14 62.86 48.23 28.62 22.09 7.37 4.49

Depreciation 44.21 94.94 88.12 81.15 155.14 137.87 127.12

Net Cash Generation 196.73 221.45 210.6 189.46 285.97 266.59 261

Interest 76.14 62.86 48.23 28.62 22.09 7.37 4.49

Installment 0 0 0 123.3 164.92 22.84 15.6

Intt. & Installment

Due 76.14 62.86 48.23 151.92 187.01 30.21 20.09

DSCR 2.58 3.52 4.37 1.25 1.53 8.82 12.99



52/68

Table 3.9- ANALYSIS OF BALANCE SHEET (UNIT-1&2)

(Rs. in lacs)

SR.

NO. PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

CURRENT LIABILITIES


I From Applicant Bank 2655.16 3230.14 3474.28 3406.8 4700 4700 4700

II From Other Bank 0 0 0 0 0 0 0

III For wich BP & BD 0 0 0 0 0 0 0

SUB-TOTAL(A) 2655.16 3230.14 3474.28 3406.8 4700 4700 4700

2

Short Term Borrowings From Others-Demand Loans

Against FD 0 0 0 0 0 0 0

3 Sundry Creditors(Trade) 47.37 62.98 75.87 84.54 81 82.5 82.5

4

Advance Pyaments From Customers/Deposit from

Dealers 39.62 105.48 37.18 56.52 41 42.5 42.5

5 Proviion for Taxation 0 0 0 8.02 11.77 13.19 14.12

6 Dividend payable 0 0 0 0 0 0 0

7 Other Stattutory Liabilities 0 0 0 0 0 0 0

8

Deposits/Installment Of Term

Loans/DPGs/Debenture,etc,(Due within 1 year) 51.93 0 0 0 0 0 0

9Other Current Liabilities & Provision (Due within 1year) 24.41 23.96 47.11 31.06 60 50 50

SUB-TOTAL(B) 163.33 192.42 160.16 180.14 193.77 188.19 189.12

10 TOTAL CURRENT LIABILITIES (A+B) 2818.49 3422.56 3634.44 3586.94 4893.77 4888.19 4889.12

TERM LIABILITIES

11 Debentures (not maturing within 1 year) 0 0 0 0 0 0 0

12 Preference shares (redeemable after 1 year) 0 0 0 0 0 0 0

13Term Loans (excluding installments payable within 1year) 529.27 407.47 301.01 191.83 107 40.9 29.78

14

Deffered Payment Credits (excluding installments due

within 1 year) 0 0 0 0 0 0 0

15 Term Deposits (repayable after 1 year) 0 0 0 0 0 0 0

16 Other Term Liabilities (Unsecured Loan) 361.81 361.8 363.65 61.78 60 60 60

17 TOTAL TERM LIABILITIES (Total of 11 to 16) 891.08 769.27 664.66 253.61 167 100.9 89.78

18 TOTAL OUTSIDE LIABILITIES (10+17) 3709.57 4191.83 4299.1 3840.55 5060.77 4989.09 4978.91

NET WORTH

19 Ordinary Share Capital/Partner's Capital 1139.1 1168.21 1598.77 1950.08 2300.08 2300.08 2300.08

20 General Reserve/Profit & Loss Account 407.42 471.07 545.32 617.99 714.96 823.11 938.37

21 Revaluation Reserve 0 0 0 0 0 0 0

22 Other Reserves(excluding provisions) 0 0 0 0 0 0 0

23 Surplus(+) or Deficit(-) in Profit & Loss A/c 0 0 0 0 0 0 0

24 NET WORTH (Total 0f 19 to 23) 1546.52 1639.28 2144.09 2568.07 3015.03 3123.18 3238.44

25 TOTAL LIABILITIES (18+24) 5256.09 5831.11 6443.19 6408.62 8075.81 8112.27 8217.35


53/68

Table 3.9 Contd..

(Rs. in lacs)

SR.

NO. PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

CURRENT ASSETS

26 Cash and Bank Balance 58.24 139.29 83.26 146.8 72.85 49.29 158.54

27 Investments (Other than long term investments) 425.59 425.59 477.75 0 0 0 0

I. Government & Other Trustee Securities 0 0 0 0 0 0 0

II. Fixed Deposit with Bank 0 0 0 0 0 0 50

28.I.

Receivables Other than deffered & exports (includingunder BP/BD) 1000.26 1306.17 1248.74 1609.09 1800 1885.98 1931.7

II. Export Receivables (including under BP/BD) 0 0 0 0 0 0 0

29Investments of deffered receivables (due within 1year) 0 0 0 0 0 0 0

30 Inventory


a. Imported 0 0 0 0 0 0 0

b. Indegenous 0 0 0 0 0 0 0

II. Stock-in-Process 0 0 0 0 0 0 0

III. Finished Goods 2557.07 2704.87 3372.37 2863.83 4280 4380 4380

IV. Other Consumable Spares & Packing 184.96 195.22 205.84 300 300 300 300

a. Imported 0 0 0 0 0 0 0

b. Indegenous 48.16 51.78 75.95 120 170 170 170

V. Fuel 0 0 0 0 0 0 0

VI. Packing Material 0 0 0 0 0 0 0

31Advances to Suppliers of Raw Material &Stores/Spares 20.86 110.69 133.21 76.95 225 175 200

32 Advance Payment of Taxes/TDS 20.36 44.27 48.95 40.98 55 65 65

33 Other Current Assets 32.89 32.89 32.88 77.88 70 70 70

34 TOTAL CURRENT ASSETS total of 26 to 33) 4348.39 5010.77 5678.95 5235.53 6972.85 7095.27 7325.25

FIXED ASSETS

35 Gross Block 1202.69 1210.27 1242.29 1732.29 1817.29 1867.29 1867.29

36 Depreciation to Date 294.99 389.93 478.05 559.2 714.34 850.29 975.19

37 Net Block (35-36) 907.7 820.34 764.24 1173.09 1102.95 1017 892.1



I. AInvestment SubsidiaryCompanies/Affiliateds/Deposits 0 0 0 0 0 0 0

B. Others-GEB & Telephone Deposits 0 0 0 0 0 0 0

II.Advances to Suppliers of Capital Goods &Contractors 0 0 0 0 0 0 0

III. Deffered Receivables (maturity exceeding 1 year) 0 0 0 0 0 0 0

IV. Others (Loans & Advances) 0 0 0 0 0 0 0

39 Non-consumable Stores & Spares 0 0 0 0 0 0 0


54/68

40

Other Non-current Assets including due from

directors 0 0 0 0 0 0 0

41

TOTAL OTHER NON-CURRENT ASSETS

(Total of 38 to 40) 0 0 0 0 0 0 0

42

Intangible assets (patents, goodwill, prelim, expenses,

bad/doubtful debts not provided for,etc) 0 0 0 0 0 0 0

43 TOTAL ASSETS (34+37+41+42) 5256.09 5831.11 6443.19 6408.62 8075.81 8112.27 8217.35Table 3.9 Contd..

(Rs. in lacs)

SR.

NO. PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

44 Tangible Net Worth( 24-42) 1546.52 1639.28 2144.09 2568.07 3015.03 3123.18 3238.44

45Net Working Capital (17+24)-(37+41+42) to tallywith (34-10) 1529.9 1588.21 2044.51 1648.59 2079.08 2207.08 2436.12

46 CURRENT RATIO (34/10) 1.54 1.46 1.56 1.46 1.42 1.45 1.547 DEBT-EQUITY RATIO (18/44) 2.4 2.56 2.01 1.5 1.68 1.6 1.54


A. Arrears of Depreciation 0 0 0 0 0 0 0

B. Contingent Liabilities 0 0 0 0 0 0 0

I. Arrears of Cumulative Dividends 0 0 0 0 0 0 0

II. Gratuity Liability not provided for 0 0 0 0 0 0 0

III. Disputed Excise/Custom/Tax Liabilities 0 0 0 0 0 0 0

IV. Other Liabilities not provided for 0 0 0 0 0 0 0


55/68

Table 3.10- COMPARATIVE STATEMENT OF CURRENT ASSETS & CURRENT

LIABILITIES (UNIT-1&2)

(Rs. in lacs)

SR.

NO. PARTICULARS 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 201

A. CURRENT ASSETS

1 Raw materials including stores

a. Imported 0 0 0 0 0 0 0

(Month's Consumption)

b. Indigenous 0 0 0 0 0 0 0

(Month's Consumption) 0 0 0 0 0 0 0

c. Packing Material 0 0 0 0 0 0 0


d. Fuel 0 0 0 0 0 0 0

(Month's Consumption) 0 0 0 0 0 0 0

2 Other Consumable Stores

a. Imported 0 0 0 0 0 0 0


b. Indigenous 48.16 51.78 75.95 120 170 170 170


3 Stock-in-Process 0 0 0 0 0 0 0

(Month Cost Of Sales) 0 0 0 0 0 0 0

4 Finished Goods 2742.03 2900.09 3578.21 3163.83 4580 4680 4680

(Month Cost Of Sales) 2.81 2.44 3.03 2.38 2.47 2.34 2.24

5

Receivables Other thandeffered & exports

(including under BP/BD) 1000.26 1306.17 1248.74 1609.09 1800 1885.98 1931.7 1

(Month's Domestic Sales

excluding deffered payment

sales) 0.98 1.05