Format S 2: Circle: Smeccc: Branch
Format S 2: Circle: Smeccc: Branch
Format S 2: Circle: Smeccc: Branch
(Applicable to loans Rs. 25.00 lakh to Rs. 1 crores under MSME and Indirect Agl. Segments including loans
under CGTMSE guarantee, e-DFS and other Schematic lending)
(All the figures reported in the proposal are in Rs. Lakh , unless specified otherwise)
SECTION A1
Circle: Hyderabad SMECCC: SME CITY CREDIT CENTER, Branch: SME CITY CREDIT CENTER,
HYDERABAD HYDERABAD
Borrower's Name: M/s. SPEAR ENGINEERING SOLUTIONS PVT LTD (MD-C S PRASAD)
SB8 31/03/2017
@ Minimum mark will be NIL in cases where Collateral is not to be asked as per Bank’s norms
i) Sanction for (i). Renewal of FBWC limits with enhancement/reduction from Rs.40 lakhs to Rs.44
lakhs and NFBWC limits of Rs.0.00 lakhs at the existing level.
ii) Approval for (i). Review of existing Term Loan/Term Loans/Corporate Loan
iii) Confirmation for (i). Action in having continued the limits beyond the validity of last sanction i.e. beyond
31/12/2017.
This proposal falls within the power of Chief Manager as
(i) FB/NFB/Total indebtedness is Rs.49.67 Lakh to Corporate
(ii) Involves policy level deviations: No
If yes, Indicate policy level deviations: NOT APPLICABLE
iii) Recommended pricing @ MCLR (%) + % = ____% p.a. falls within the discretionary powers of Not Applicable
iv) Other: NIL
b) Unit's Profile :
Location: M (Metro) Constituition : Pvt Ltd co
Line of Activity : MANFCTURING OF INDUSTRIAL FRAME WORKS IN METAL
Activity Type Manufacturing Priority Sector Yes
Derivative/Forward
Contract Limits (c)
No irregularity observed recently in the account. As per the CGTMSE letter Branch was clearly mentioned the recent
sanction date as 31.12.2015 and the limit sanctioned is 40.00 lakhs under CGTMSE under SME Smart score scheme,
Appraisal note is not available in the file. Hence the signed copy of the CGTMSE is treated as appraisal note.
f) Credit History (with our Bank): For past two sanctions: (Rs. in Lakh)
g) Details of the Group / Associate Entities/ Companies:
g) Details of the Group / Associate Entities/ Companies: Not Applicable (Rs. in Lakh)
M/S SPEAR ENGINEERING SOLUTIONS PVT LTD is established in the year 2011 as a private limited
company.Initially Sri C S Prasad is Managing Director of the company. He used to manage all the operations of the
company. All other directors assist him in the operations. Recently 2 of the directors Sri C S Prasad & Smt Kolli
Chaitanaya has disqualified as directors, not due to this company but due to other companies, where they are directors.
Now 3 Directors are managing the company Smt Manju Bikkina, Sri Charan Surapaneni and Smt hemalatha Kolli.
Brief write up on the Industry/ Sector /competition and the Company’s standing:
e Indian Engineering sector has witnessed a remarkable growth over the last few years driven by increased investments
in infrastructure and industrial production. The engineering sector, being closely associated with the manufacturing and
infrastructure sectors, is of strategic importance to Indias economy.
India on its quest to become a global superpower has made significant strides towards the development of its
engineering sector. The Government of India has appointed the Engineering Export Promotion Council (EEPC) as the
apex body in charge of promotion of engineering goods, products and services from India. India exports transport
equipment, capital goods, other machinery/equipment and light engineering products such as castings, forgings and
fasteners to various countries of the world. The Indian semiconductor industry offers high growth potential areas as the
industries which source semiconductors as inputs are themselves witnessing high demand.
India became a permanent member of the Washington Accord (WA) in June 2014. The country is now a part of an
exclusive group of 17 countries who are permanent signatories of the WA, an elite international agreement on
b) Interim
Financials
Firm has achieved sales of 223.90 lakhs as on 31/03/2107 which is slightly more than the previous year. this year firm
is estimating sales of 246 lakhs as on 31/03/2018.
Profitability is low for the firm in the year 2016-17 due to increase of operational expenditure and salaries. And is
expected to be improved for the coming years after sales improvement.
Particulars
Audited Audited Estimated Projected
TOL/Adj.TNW is at 6.09 which is above the threshold level and it is expected to be improved in the coming year below
6.
Current Ratio is above 1 but below 1.33 and is expected to be improved slowly in the coming years as per projections &
NWC is increasing every year which is improving the firm liquidity position.
Not applicable
f). Review of existing Term Loan : Comment on reasons for over dues (if Term Loan availed): (Rs. in Lakh)
Place(s) visited Plot No 36, SVCIE, Phase II, Bala Nagar, Hyderabad 500037
Name(s) of officials, who visited B PRAVEEN KUMAR, PO & AVL NARASIMHA, CHIEF
MANAGER
Whether papers required for KYC YES
obtained (PAN/Articles/Memo etc)?
Yes/No
Date of Search Report obtained 20/03/2018
from ROC, in case of companies
Formalities regarding obtention of YES
legal opinion/valuation report
completed? (Yes/No)
Due diligence on take over NOT APPLICABLE
Other Observations, if any ROC Search Report obtained from Sri BS Hari Krishna & CO on
20/03/2018. There he pointed out that charge has not been
registered with ROC.
Immovable property has been physically
verified on
PARTICULARS DATE
ECGC specific approval list 31/01/2018
Not Applicable
Verified CRIF reports of all the Directors and guarantors and found satisfied with the credit history.
Not Found
Verified the Commercial credit information report No 4192721 ID W-19013301 and found the no
Not Applicable
5. Comments on I&A and other audit reports,which have an impact on credit risk on the unit,if any:
Contingent liabilities
Critical Risk
Mitigation
In order to mitigate the risk we advise the disqualified directors not be in the board and we advise the remaining 3
directors to submit the application for the proposed facilities. we are also taking the personal guarantee of the 3
directors and 2 disqualified directors also.
6. Comments on interchangeability (if any) :
No Interchangeability of limits
Recommended for sanction / approval / confirmation on the terms and conditions asset out in
annexure-1
i) Sanction for (i). Renewal of FBWC limits with enhancement/reduction from Rs.40 lakhs to Rs.44
lakhs and NFBWC limits of Rs.0.00 lakhs at the existing level.
ii) Approval for (i). Review of existing Term Loan/Term Loans/Corporate Loan
iii) Confirmation for (i). Action in having continued the limits beyond the validity of last sanction i.e. beyond
31/12/2017.
Name
Designation
PF No.
Mail ID
Date
Sanction details:
Name
Designation
Date:
Date Chart:
1. Nature of facility (ies) applied for: Amount Format Selected is: LAKH
CC-44.00
TL-5.67
2. Date of receipt of the proposal 20/03/2018
3. Information sought on changes in the revised Business Plan
6. Information received on
Circle: Hyderabad SMECCC: SME CITY CREDIT CENTER, Branch: SME CITY CREDIT CENTER,
HYDERABAD HYDERABAD
Borrower's Name: M/s. SPEAR ENGINEERING SOLUTIONS PVT LTD (MD-C S PRASAD)
1. Security
Primary
Realisable Date of Bank Assessed
Facility Details of Security
Value valuation Value
CC Stock Statement 64.48 23/03/2018 64.48
STOCK
The above properties have been inspected by and genuineness of title verified. We also found the valuations of the
property to be reasonable. The Certified copy of the title deeds obtained from Sub-Registrar office and compared with
the originals.
EPC :
Receivables:-- 50.00
BG :-- NA
LC :-- NA
Term loan:-- NA
5. Repayment CC(Hyp) : Repayable on demand, Renewable after one year
TL: Not Applicable
6. (i) Validity of Sanction(in Sanction valid for 12 Months.
months)
(ii) Review/Renewal (in 12
months)
7. Inspection Stocks and books of the Firm shall be inspected once in quarter at irregular
intervals by one or more representatives of the Bank. The firm shall extend all
assistance to the aforesaid representatives in conducting and completing such
inspection smoothly and shall take steps to carry out such remedial measures as
necessitated due to shortcomings, if any pointed out by
the inspections shall be born by the firm.
8. Stock Statement Monthly
9. Insurance Entire assets financed by the Bank should be insured against all risks. Insurance
of stocks / mortgaged property should be arranged. In the case of immovable
properties mortgaged to the Bank whether as primary or collateral security,
besides such properties being insured against usual risks such as fire, riot, strike,
breakage and breakdown, nsurance against flood, earthquake and cyclone
should also be arranged where the place of the unit is susceptible to such natural
calamities.
SLC Fees NA
11. Inspection charges 275/- per lac p.a Min. Rs 600/- p.a Max. Rs. 15000/- p.a
14. Commitment Charges If the average utilization is more than 75% - No charges. If the average utilization
is between 50-75% - 0.25% p.a to be recovered on entire unutilized portion on a
quarterly basis. If the average utilization is less than 50% - 0.50% p.a to be
recovered on entire unutilized portion on a quarterly basis.
15. Other Charges Nil
17. Penal Interest 5.00 % per annum on the irregular portion for the period of irregularity.
21. Covenants of sanction : Before Release of the limits company to provide/comply the following
1) CIF of the firm need to be updated by the firm
2) Cash credit Account mandate to be updated by the firm suitably as per
present board.
3) ABS to be signed by all the present directors.
4) Notarized Assets and Liabilities to be submitted.
5) Internal resolution exiting the 2 disqualified directors and present directors
who are on the table should provide resolution for availing the credit limits to be
provided.
6) ROC charge for the existing limits to be created
7) Company to Submit up to date GST Returns.
8) Recent Statutory approvals.
9) Application for limits in Bank standard format.
10) Latest Work orders and Debtors list to be provided.
Circle: Hyderabad SMECCC: SME CITY CREDIT CENTER, Branch: SME CITY CREDIT CENTER,
HYDERABAD HYDERABAD
Borrower's Name: M/s. SPEAR ENGINEERING SOLUTIONS PVT LTD (MD-C S PRASAD)
b) Projected Turnover Method (Nayak Committee Method) and Traditional Method (Upto credit limits Rs. 5.00
crores)
(Rs. in Lakh)
Particulars Actual Estimated Projected
2017 2018 2019
Circle: Hyderabad SMECCC: SME CITY CREDIT CENTER, Branch: SME CITY CREDIT CENTER,
HYDERABAD HYDERABAD
Borrower's Name: M/s. SPEAR ENGINEERING SOLUTIONS PVT LTD (MD-C S PRASAD)
Details of the approvals, sanctions and misc. details of the Firm / Company:
(Rs. in Lakh)
WC :(Amt)Rs. 44.00 CC
WC : 31/03/2018 CC
Company
Policy No POLICY
Amount
(a) Housing
CUE Application # NA NA
CUE Rating NA NA
CUE PD(%) NA NA