ALLAHABAD BANK

CREDIT DEPARTMENT, ZONAL OFFICE, MORADABAD

Ref. No. ZOMBD/ADV/201314/
Banking Arrangement
Lead Bank

Date: 20.08.2014
SoleBanking
NotApplicable

Priority / Non-Priority PrioritySector

For:- Sanction/Approval
EnhancementProposal
Activity - Processingandgrading
ofseedsofpaddy,wheatetc.
Sector SmallEnterprise(Mfg.)AgricultureBasedActivity

The Field General Manager/ Chairman Z.L.C.C. G.M. Lucknow

ACCOUNT: M/s.OMGANAGAKAVERISEEDS
BRANCH: PILIBHIT

ZONE: MORADABAD

Subject : To review the account and to consider (for existing account)

A. Renewal of following facilities at existing limit / rundown balance
(i)
N.A.
B. Enhancement / Fresh Sanction / Reduction of following facilities
(i)

EnhancementofCashCreditlimitofRs.400.00LactoRs.550.00Lac.

C. Cancellation of following facilities

(i)
N.A.
D. Continuation of following concessions in ROI / Service Charges
(i) Continueexistingconcessionalrateofinteresti.e.BR+0.75%.Interestrate,whichhasbeenreducedto
BR+0.75%fromexistingBR+1.00%undertheauthorityofHLCCEDon05.12.2013videtheirletter
ref.HO/SMECredit/HLCCED/201314/3076.

E. Approval of following concessions in ROI / Service Charges

(i)
Nil
F. Special approvals / permission in terms of sanction
(i)
Nil
G. Permission for allowing deviation from Banks Lending Policy
(i) Thecurrentratioofthefirmasat31.03.2013(1.11:1)and31.03.2014(1.31:1)isbelowthebenchmark

level, however the same is continuously improving and as per the projections the same is above
benchmarklevel,thereforethesamemaybeaccepted.

H. Confirmation of
(i)
Nil
Sanctioning Authority
Exposure (Rs../Crore)
Individual
Group
Consortium

FGMOLucknow
FB
400.00
840.00
N.A.

Existing
NFB
Total
0.00
400.00
0.00
840.00
N.A.
N.A.

ACCOUNT : M/s OM GANGA KAVERI SEEDS, PILIBHIT

Date of last sanction

FB
550.00
990.00
N.A.

Proposed
NFB
0.00
0.00
N.A.

Total
550.00
990.00
N.A.

24.04.2013
Increment / Reduction
FB
NFB
Total
150.00
0.00
150.00
150.00
0.00
150.00
N.A.
N.A.
N.A.

N.A.

% share in Consortium
RISK GRADING
Internal Rating
External Rating
Risk Weightage

N.A.

N.A.

PREVIOUS
AB3
N.A.
100%

Sectoral Exposure *
As on 30.06.2014
Sector
SmallEnterprise(Mfg.)

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

Based on ABS: 31.03.2014

Rating finalised on: 20.08.2014
Date of External Rating: N.A.
Rating valid up-to: N.A.

PRESENT
SME3
N.A.
100%

Amount
(Rs../Crore)

% of Gross Credit

143.72

18.06%

Internal exposure
ceiling (%)
As per extant RBI
guidelines

% of NPA in the
Sector
2.98%

*ForMoradabadZone.

As on 20.08.2014
0
N.A.

IRAC Status
Our Bank
Other Banks/ Lenders
Proposal received at
on

Branch
02.05.2014

Zonal Office
02.07.2014

Head Office
29.09.2014

Facilities existing & proposed

(Rs./Lac)
Facilities

Existing
Limits

Proposed limits

O/s
with
our
Bank

Over-due

Period/Resid
ual Period of
T/L

Margin

Consor
tium

Our
Bank

Consorti
um

Our
Bank

Nil

400.00
(30.00)

Nil

550.00
(50.00)

383.96

Nil

OnDemand

25%

Nil

Nil

Nil

Nil

iii) Total

Nil

Nil

Nil

Nil

550.00
(50.00)
Nil

383.96

(b) Term loan

400.00
(30.00)
Nil

(c) Aggregate

Nil

400.00
(30.00)

Nil

550.00
(50.00)

383.96

Nil

25%

(a) Working
Capital
i) Funded*
A/c-20498959855

ii) NonFunded

Nil

*ExistingCCLimitforpeakseason(AprilDec.)isRs.400.00Lacandfornonpeakseason(JanMarch)is
Rs.30.00Lac.

Rate of Interest / Commission / Service Charges:

Particulars /
Account

Existing ROI /
Commission /
Charges

Proposed ROI /
Commission /
Charges

ROI as per Risk

Rating (SME-4)

Lead Bank Rate /

highest rate in the
consortium (with
name of Bank)

CC
WCDL
TLI
TLII
LC
BG
UpfrontFees

BR+0.75%@
------

BR+0.75%@
------

BR+2.00%
------

N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

ProcessingFees
@NormalrateintermsofHOICno.12412/DEV/201314/11dated
N.A.
27.04.2013.
OtherCharges
N.A.
@InterestratehasbeenreducedtoBR+0.75%fromexistingBR+1.00%undertheauthorityofHLCCEDon
05.12.2013 vide their letter ref.HO/SMECredit/HLCCED/201314/3076 and the same is proposed to
continue.
Comments on overdue in the account (if any): - Nil

EXECUTIVE SUMMARY
1. M/sOmGangaKaveriSeedsisaproprietorshipconcern.TheProprietorofthefirm,SriPrateekAgrawal
issonofShriRakeshKumarAgrawalwhoisproprietorinM/SModernRiceIndustries(enjoyingCC
limitRs.275.00LacsfromourPilibhitbranch).TheFirmwasestablishedon08.10.2002andenjoying
creditfacilitiesfromourPilibhitBranchsince2003.ThefirmisengagedinproductionofseedsofPaddy
and Wheat and grading thereof. The firm is having Registration from U.P. State Seed Certification
Institute.
2. Thefirmpurchasesthebreederseedorfoundationseedsfromtheuniversities/organizations.Theseeds
aredistributedtofarmerstogrowtheminidealconditions.Periodicalcheckingofcropsisdonebythe
InspectorsoftheGovernmentDepartment.Afterharvestingofthecrops,theseedsarepurchasedfromthe
farmersbythefirm.Theseedsaretestedinlaboratoriesgradedandcertified.Finallythecertifiedseeds
arepackedandsoldinthemarket.
3. ThefirmwassanctionedCashCreditlimitofRs.30.00LacvideZonalOfficeletterref.ROMD/ADV/892
of20.11.2003whichwasenhancedtoRs.50.00LacvideZOletterref.ROMD/ADV/91of26.05.2004and
limitwasfurtherenhancedtoRs.100.00LacvideZOletterref.ZOMD/ADV/683dated25.10.2005.The
limit was again enhanced to Rs.400.00 Lac on 21.06.2011 vide ZO letter ref. ZOMD/Adv/451. The
accountwaslastreviewedbyFGMOon24.04.2013videletterref.FGMO/Luc/Adv/88.Now,thefirmhas
submittedthattheyhaveenhancedtheirbusinessandtocompeteinthepresentcompetitivebusiness
scenario,theyrequiredmoreworkingcapitalandthereforetheyhaverequestedforenhancementoftheir
existingcreditfacilitytoRs.550.00Lac.
4. TheborrowerhasachievedsalesofRs.2430.31Lacsduring201112andthesamewasdecreasedto
Rs.1185.99Lacsduring201213.Inthisregard,thefirmhassubmittedthatduetoexcessiverains,large
amount of seed crop was destroyed which affected quality of seeds and this coupled with intense
competitionresultedincancellationofmanypreviousordersofbuyers.Further,unlikepreviousyear,the
firmcouldnotgetGovernmentcontractsinFY201213andalsosomeseedscouldnotbepackeddueto
latedistributionoftagsbyUPSSCA(whichisusedinpackaging).However,asperAuditedfinancial
statement as at 31.03.2014 the sales of the firm has been increased to Rs.1835.92 Lacs against the
projectedsalesofRs.1300.00Lacsacceptedatthetimeoflastrenewali.e.morethan100%achievement
of projected sales and 54.80 % growth over previous year. The borrower had projected sales of
Rs.2100.00Lacsforthecurrentfinancialyear201415.Further,thebranchhassubmittedthatthefirmhas
achievedgrosssalesofRs87.00lacs,whichisverylowduetononpeakseasonforsales.Inthisregard
thefirmhassubmittedthattheyhavealreadysuppliedthepaddyseedtoGovernmentbodiesandvarious
seedpartiesforapprox.Rs.87.00Lacwhichappearsonlowerside,howeverasperthesalespatternoflast
yearthatmaximumsalesofthefirmtakeplaceduringOctobertoDecembermonthsasthelastyearfirm
achievedsaleofRs.17.65CroresduringthesameperiodandcreditsummationinCCaccountisRs977.41
lacsoutofwhichbusinessrelatedcreditentriesareofRs193.46lacsfrom01.04.2014to30.09.2014.The
firmisveryhopefulthisyearandtoachievetheprojectedsalesturnover,theyneedmoreworkingcapital.
Accordingly,thefirmhasrequestedtoenhancetheirexistingworkingcapitallimittoRs.550.00Lacs.
Keepinginviewof thepastperformance of the firm andalsoconsideringthecreditturnover inthe
accountduringcurrentfinancialyear,salespatternofthefirmandacceptanceoftheprojectedsalesbythe
branch,wemayacceptthesame.
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

5. Theprofitabilityofthefirmisshowinganincreasingtrend.ThenetprofitofthefirmhasbeenRs.10.97
LacandRs.8.47Lacasat31.03.2012and31.03.2013respectively.Thesamehasbeenfurtherincreasedto
Rs.10.40LacduringFY201314aspertheAuditedF.S.asat31.03.2014.Thenetprofitofthefirmhas
beenprojectedtobeofRs.14.74LacforthecurrentF.Y.201415.
6. Thecurrentratioofthefirmhasbeen0.99:1and1.11asat31.03.2012and31.03.2013respectively.As
perAuditedF.S.asat31.03.2014thecurrentratioofthefirmhasimprovedto1.26:1.Thesamehasbeen
projectedas1.45:1fortheFY201415.Thecurrentratioofthefirmasat31.03.2013and31.03.2014is
belowthebenchmarklevel,howeverthesameiscontinuouslyimprovingandaspertheprojectionsthe
sameisabovebenchmarklevel,thereforethesamemaybeaccepted.
7. TheTOL/TNWratioofthefirmhasbeen8.77and3.18:1asat31.03.2012and31.03.2013respectively.
AsperAuditedF.S.asat31.03.2014theratioofthefirmhasfurtherimprovedto0.98:1.Thesamehas
beenprojectedtobeat1.77:1asat31.03.2015.Sincetheratioisinconformitywithbenchmarklevel,we
mayacceptit.
8. TheTangibleNetWorthofthefirmwasofRs.30.77Lacason31.03.2012anditincreasedtoRs.37.64
Lacason31.03.2013.AspertheAuditedF.S.forFY201314,ithasincreasedtoRs.85.64Lac.Net
worthofthefirmisincreasingduetoreinvestmentofthefirmsprofitaswellasduetoinfusionoffresh
capital.TheTNWofthefirmhasbeenprojectedtobeofRs.100.34Lacasat31.03.2015.
9. TheoverallriskgradingoftheaccountisSME3includingfinancialriskatAB3underRAMrating
(SMEManufacturingModel)basedonAuditedFinancialStatementason31.03.2014.
Consideringthepastconductoftheaccount,longassociationofthefirmwithusandalsoconsideringthe
improvedfinancials,valueofconnectionandrecommendationofthebranch,wemayrecommendtoFGMO,
Lucknowtoreviewtheaccountalongwithsanctionofenhancedcreditfacilitiesassoughtbythefirm,onthe
termsandconditions,asdetailedinthenote.

ANNEXURE I
(Brief background of the company/Firm regarding incorporation, promoter, share
holding pattern, group concerns, activity, financial highlights, credit history etc.)
a. Company/Firm details:

a.1
a.2
a.3
a.4
a.5
a.6
a.7
a.8
a.9
a.10
a.11
a.12

Name of the Account

Line of activity
Date of Incorporation
Constitution
CIN No.
Registered Office
Corporate Office
Branch Offices
Factories/ Go-downs
Key Promoter
Listing with
External Credit Rating

M/SOmGangaKaveriSeeds
Processingandgradingofseedsofpaddy,wheatetc.
08.10.2002
ProprietorshipFirm
N.A.
163,MohallaSeikhChand,Pilibhit
163,MohallaSeikhChand,Pilibhit
N.A.
BilaspurRoad,Pilibhit(U.P.)
SriPrateekKumarAgarwalS/oSriRakeshKumarAgarwal(Proprietor)
N.A.
N.A.

Comments (if any)

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

b. Promoters / Directors

1.3 Names of the Promoters/Directors

Name of Director/Partner/
Proprietor
SriPrateekKumarAgarwal

Designation

DIN

PAN

DOB

Address with email

& contact no.

Proprietor

N.A.

AFXPA7321L

01/05/1982

163,MohallaSeikh
Chand,Pilibhit

info@omganagkaveriseeds.com/
omgangakavriseed@gmail.com
9837031060,9837606088,
05882257900,256900

Details of adverse features, if any, as per CIBIL, etc.

Name
PAN No
DOB
CIBIL
Score

Comment

SriPrateekKumarAgarwal

AFXPA7321L

01.05.1982

752

Nothingadversefound.

SriRajendraKumar
Agarwal

AEKPK8774K

04.11.1946

Insufficient History. Branch is advised to

conduct due diligence regarding
creditworthinessoftheborrower/guarantor.

SriRakeshKumarAgarwal
SmtMadhuAgarwal
SriSubodhAgarwal
SriPramodAgarwal

AEKPK8776M
ACCPA1061F
AEKPK8775J
AFXPA7322K

11.07.1956
15.09.1956
26.11.1973
01.01.1977

787
787
837
778

Nothingadversefound.
Nothingadversefound.
Nothingadversefound.
Nothingadversefound.

Whether
names
of
promoters, RBI Defaulters list
directors, company, group concerns dated June2013
figure in
RBI Wilful Defaulters
list dated June2013
ECGC Caution list
dated......................
Whether
proprietor/partners/directors
of
the
borrower
firm/company are relatives of any member of the Banks
Board/Senior Officer of the Bank/Member of any other Banks
Board
Whether any of the Directors of the Bank is Director of the
borrower Company or is having any interest in the same
Whether the account has been taken over/proposed to be taken
over from the Bank from which the present ED/C&MD has joined
Whether the account is reported to RBI as Special Mention
Accounts SMA) by any bank

NO
NO
N.A.
NO

NO
NO
NO

c. Shareholding pattern: N.A. (ProprietorshipFirm)

d. Group concerns:
TheabovefirmishavingtwofirmsinitsgroupnamelyM/sModernTaraiSeedandM/sModernRice
Industries.TheaccountofM/sModernTaraiSeedhasbeentakenoverbySBI,Pilibhitbyofferinglower
rateofinterest..
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

M/s Modern Rice Industries is a proprietorship concern and Sri Rakesh Kumar Agrawal is the sole
proprietor.TheunithasSSIregistrationandissituatedatVillageRooppurKirpa,BisalpurRoadPilibhit.
ThefirmisenjoyingCClimitofRs.275.00LacsfromourPilibhitbranch.TheUnitisengagedinRice
hulling&tradingoffoodgrainswithautomaticplant.ThefirmhasachievedsalesofRs.744.12Lacs
duringFY201213.
ThegroupisalsomaintaininganaccountofODagainstpropertyhavinglimitofRs.165.00Lacsinthe
nameofMr.RakeshKumarAgarwal&Other.
e. Activity of the Company:
ThefirmisengagedinproductionofseedsofPaddyandWheatandgradingthereof.Thefirmishaving
RegistrationfromU.P.StateSeedCertificationInstitute.
Thefirmpurchasesthebreederseedorfoundationseedsfromtheuniversities/organizations.Theseeds
aredistributedtofarmerstogrowtheminidealconditions.Periodicalcheckingofcropsisdonebythe
InspectorsoftheGovernmentDepartment.Afterharvestingofthecrops,theseedsarepurchasedfrom
thefarmersbythefirm.Theseedsaretestedinlaboratoriesgradedandcertified.Finallythecertified
seedsarepackedandsoldinthemarket.
f. Status of Statutory approvals required for running the unit/trade:
TheFirmwasestablishedon08.10.2002andenjoyingcreditfacilitiesfromourPilibhitBranchsince
2003. The firm is having Registration from U.P. State Seed Certification Institute having UPST
no.0093385dated06.09.2002.
g. Financial highlights:(Rs.InLac)
Period ending
I) OPERATING PARAMETERS
GROSS SALES
NET SALES
% GROWTH IN NET SALES
PBIDT
NET PROFIT
PAT/NET SALES (%)
II) FINANCIAL PARAMETERS
(A) SHARE HOLDERS FUND
EQUITY SHARE CAPITAL
RESERVE & SURPLUS
NET WORTH
INTANGIBLE ASSETS
TANGIBLE NET WORTH (TNW)
INVESTMENT
ADJUSTED TNW (ex. Investment)
(B) TERM LIABILITIES:
SECURED LOANS
UNSECURED LOAN
FCCBs
DEFERRED TAX LIABILITIES
TOTAL LONG TERM LOANS
(C) ASSETS:
GROSS BLOCK
NET BLOCK
ACCOUNT:

31.03.2011
Audited

31.03.2012
Audited

31.03.2013
Audited

31.03.2014
Audited

31.03.2015
Projected

1912.72
1912.72
16.28
7.15
0.37

2430.31
2430.31
27.06
49.98

1186.00
1186.00

1835.92
1835.92

2100.00
2100.00

-51.20

54.80

14.38

40.24

54.58

64.51

10.97

8.47

10.40

14.74

0.45

0.71

0.57

0.70

0
0
31.47
0
31.47
0
0

0
0
30.77
0
30.77
0
0

0
0
37.64
0
37.64
0
0

0
0
85.64
0
85.64
0
0

0
27.40
0
0
27.40
21.43

19.64

M/s OM GANGA KAVERI SEEDS, PILIBHIT

0
0
100.34
0
100.34
0
0

39.26

49.36

57.15

210.00

0
0
39.26

0
0
49.36

0
0
57.15

0
0
210.00

23.81
16.69

22.09
19.18

73.35
70.47

70.47
59.90

Period ending
NON CURRENT ASSETS
TOTAL CURRENT ASSETS
TOTAL CURRENT LIABILITIES
NET CURRENT ASSETS
III) RATIO ANALYSIS:
CURRENT RATIO
DEBT EQUITY RATIO
ADJUSTED DEBT EQUITY RATIO
TOL-TNW RATIO
ADJUSTED TOL-TNW RATIO
INTEREST COVERAGE RATIO

31.03.2011
Audited
2.25
172.71
135.73
36.98

31.03.2012
Audited

31.03.2013
Audited

31.03.2014
Audited

31.03.2015
Projected

62.15
605.19
613.99

36.96
307.16
276.30

35.70
176.67
140.04

4.10
796.45
550.11

-8.80

30.86

36.63

246.34

1.27
0.00
0.00
2.31
2.31
2.22

0.99

1.11

1.26

1.45

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

8.77

3.18

0.98

1.77

8.77
1.39

3.18
1.39

0.98
1.32

1.77
1.65

h. Banking Arrangement (if consortium leader of the consortium, existing

sharing pattern to be stated): SoleBanking

i.
Year

Credit history with our bank

Date of
Sanction

Existing
FB

2011
2012
2013

21.06.2011
-24.04.2013

WC
100.00
-400.00

Sanctioned
NFB

TL
0.00
-0.00

100.00
-400.00

FB
WC
400.00
-400.00

Authority

(Rs.InLac)
Credit Rating
(ABS on 31.03.12)

Z.O.
-F.G.M.O.

--AB-3

NFB
TL
0.00
-0.00

400.00
-400.00

ANNEXURE II
A. Details of Limits/Position of the Account
(a) With our Bank
S.
N
Facilities
o
1. Cash Credit
2. -Total Funded
3. -4. -Total Non-funded
Total Exposure

(Rs.InLac)

Existing
limits

Proposed
limits

O/s as on
20.08.2014

Margin

400.00
--

550.00
--

383.96
--

25%
--

Stock & Book-debts valued

Rs. 589.00 Lac as on 30.06.2014

--0.00
400.00

--0.00
550.00

--0.00
383.96

--0.00
25%

Our share 100%

- Rs. 589.00 Lac

Security

Interest Reset, if any: Nil

Period / Residual Period: OneYear
Repayment Terms: OnDemand
Overdue position / Irregularity, if any: Nil
(b)

With other Lender (facility-wise)

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

Working Capital:
(Rs.InLac)
Sl.
Name of
Funded
O/s as Non-Funded
Rate of Interest /
Status of
O/s as on
No
Bank/FI
Limit
on
Limit
Commission
A/c
1.
NIL
2.
3.
Term Loan:
(Rs.InLac)
Sl.
Purpose
Nature of
Sanctioned
Status of
Name of Bank/FI
O/s as on ROI
No
Term Loan
Limit
A/c
1.
NIL
2.
3.
Comments: - ThefirmhasbeensanctionedCCLimitaspertheirseasonalrequirements.Accordingly,
existingcreditlimitforpeakseason(AprilDec.)isRs.400.00Lacsandfornonpeakseason(JanMarch)is
Rs.30.00Lacs.

B. Details of Security
Particulars

Date of
Valuation

Value in
(Rs. in Lac)

ExclusiveCharge
(Hypothecation)

30.06.2014

589.00

ExclusiveCharge
(Equitable
Mortgage)

22.05.2014

Rs.1097.31
Lac
(Forcedsales
valueRs.
932.71Lacs)

ExclusiveCharge
(Equitable
Mortgage)

07.06.2011

Rs.53.23Lac
(Forcedsales
valueRs.45.24
Lacs)

ExclusiveCharge
(Equitable
Mortgage)

07.06.2011

Rs.12.09Lac
(Forcedsales
valueRs.10.28
Lacs)

Nature of
charge

PRIMARY
Exclusive hypothecation charge over entire stocks of
Rawmaterial,WIP&FinishedgoodsBookdebtsandall
currentassetsofthefirmbothpresent&future.

COLLATERAL
(i) Supplementalequitablemortgageoffactorylandand
building (Already mortgaged in the account of M/S
ModernRiceIndustries for Rs.275.00lacs),situatedat
Khasra no.10, Vill. Rooppur Kripa, Bilaspur Road,
Pilibhitmeasuring17770.00Sqm.standinginthename
of Sri Rakesh Kumar Agrawal and his brother Sri
Rajender Kumar Agrawal situated at Bisalpur Road,
Pilibhit.
(ii) Supplemental Equitable mortgage of residential
buildingsituatedatKhasrano.905/5,PakariaNaugawan,
Ballabh Nagar, Tanakpur Road, Pilibhit measuring
252.00Sqm.inthenameofSmt.MadhuAgrawalandSri
SubodhAgrawal.
(iii) Supplemental Equitable mortgage of residential
building situated at Sheikh Chand, Pilibhit, measuring
228.00SqminthenameofSriPromodkum.r.

Total: 932.71 (275.00,exposureofM/sModernRiceIndustries)+ 45.24 + 10.28 = 713.23

Our share
Overall security coverage of our exposure of Rs.550.00 Lac (%)
Collateral coverage of our exposure of Rs.550.00 Lac (%)
Guarantee
Name of the Guarantor

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

Date of CR

1302.23
100%
236.77%
129.68%

NW in (Rs..In
Lac)
8

Sri Prateek Kumar Agarwal S/o Sri Rakesh Kumar

Agarwal(Proprietor)
SriRajendraKumarAgarwalS/oSriShivKumar
Agrawal(Guarantor)
SriRakeshKumarAgarwalS/oSriShivKumarAgrawal
(Guarantor)
Smt.MadhuAgarwal W/OsriRakeshKumarAgrawal
(Guarantor)
SriSubodhAgarwalS/oSriRajendraKumarAgrawal
(Guarantor)
Sri Pramod Agarwal S/o Sri Rakesh Kumar Agrawal
(Guarantor)

Rs.424.01Lac

30.06.2014

Rs.506.40Lac

08.03.2014

Rs.611.37Lac

08.03.2014

Rs.668.84Lac

08.03.2014

Rs.535.87Lac

08.03.2014

Rs.453.35Lac

08.03.2014

C. Details of Charge registration with ROC NotApplicable

ANNEXURE III
A. Present proposal (including concessions/permissions sought):
Thefirmhassubmittedthattheyhaveenhancedtheirbusinessandtocompeteinthepresentcompetitive
businessscenario,theyrequiredmoreworkingcapitalandthereforetheyhaverequestedforenhancementof
theirexistingcreditfacilitytoRs.550.00Lacsattheexistingconcessionalrateofinteresti.e.BR+0.75%.
InterestratehasbeenreducedtoBR+0.75%fromexistingBR+1.00%undertheauthorityofHLCCEDon
05.12.2013videtheirletterref.HO/SMECredit/HLCCED/201314/3076.

B. Lead Bank Assessment (in brief) & Sharing in case of Consortium/MBA:

Bank

FB

Existing Sharing Pattern

NFB
%
Total

FB

Proposed Sharing Pattern

NFB
%
Total

NotApplicable
Total

100.00

100.00

100.00

100.00

100.00

100.00

C. Z.O. Recommendations: Consideringthepastconductoftheaccount,longassociationofthefirm

withusandalsoconsideringtheimprovedfinancials,valueofconnectionandrecommendationofthebranch,
we may recommend to FGMO, Lucknow to review the account alongwith sanction of enhanced credit
facilitiesassoughtbythefirm,onthetermsandconditions,asdetailedinthenote.

D. Deviations observed from Banks Lending policy, if any: Thecurrentratioofthefirmasat

31.03.2013(1.11:1)and31.03.2014(1.31:1)isbelowthebenchmarklevel,howeverthesameiscontinuously
improvingandaspertheprojectionsthesameisabovebenchmarklevel,thereforethesamemaybeaccepted.

E. NBG Approval: NotApplicable(ExistingaccountwithexposureoflessthatRs.10.00Crore)

ANNEXURE IV
A. Compliance of pre-disbursement/special terms and conditions of last
sanction:
Sanction stipulation
Compliance status
I

Since the current ratio had been on a declining

trend,Contributionshouldbeimprovedsuchasto
takethecurrentratiotoaminof1.33.

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

As per Audited F.S. as at 31.03.2014 the current

ratioofthefirmhasimprovedto1.26:1fromthe
existing1.11:1of31.03.2013.

Ii
Iii
iv
v

Onlyneedbaseddrawingsshouldbeallowedinthe
account strictly on the basis of available drawing
power.
The branch will ensure that all the inspection
irregularitieshavebeenacceptablyrectified.
Stock audit will be got conducted by the firm of
charteredaccountant.
Thebranchwillensuretogetsecondvaluationofthe
propertyinthenameofSriRakeshKumarAgrawal
andhisbrotherSriRajenderKumarAgrawalsituated
atBisalpurRoad,Pilibhitandanotherpropertyinthe
name of Smt. Madhu Agarwal & Shri Subodh
Agarwal situated at Tanakpur Road Pilibhit from
secondempanelledvaluer&willsubmitacopyof
thesametothisoffice.

Drawing in the account is being permitted on the

basisofavailabledrawingpower.
Allinspectionirregularitieshavebeenrectified.
Stockauditcompletedon05.02.2014byCA,Mishra
SharadAssociates.
Freshvaluationoffirstpropertyhasbeenobtained
fromtwovaluersandvaluationofanotherproperty
allotted to empanelled valuer and report will be
obtainedwithinaweek.

B. Comments on:
Whether compliance of all last sanction
terms done
ii) Whether Security Documents held are valid
and enforceable
iii) Whether proper Charge on securities
created in favour of the Bank (at
ROC/CERSAI)
iv) Adherence to the commitment in respect of
repayment of instalments, advanced by the
bank and or / term lending institutions
(including overdue instalments, if any)
v) Regular and timely submission of stock
statements/and statements under quarterly
information system
vi) Whether the commitments under letter of
credit
honoured
promptly?
Whether
account is allowed to be overdrawn in case
of retirement of bills under L/C?
vii) Whether any lapses/irregularities/defects
noticed in documentation
viii) If so, steps taken to set them right

Yes

i)

C. Conduct Sheet:
2.1
Conduct of the A/c
2.2
Utilization of Fund based
limits
2.3
2.4

2.5

Utilization of Non-fund
based limits
(`/ Crore)
No. Of L/Cs opened
Amount
No. Of L/Cs devolved
Amount
No. Of B/Gs executed
Amount

ACCOUNT:

Yes
Yes

Yes

Yes

N.A.

No
N.A.

Satisfactory
FullUtilizationoflimitasperseason.
N.A.

M/s OM GANGA KAVERI SEEDS, PILIBHIT

2011-12
0
0.00
0
0.00
0
0.00

2012-13
0
0.00
0
0.00
0
0.00

2013-14
0
0.00
0
0.00
0
0.00
10

2.4

2.5

2.6

2.7
2.8
2.9

No. Of B/Gs invoked

0
0
0
Amount
0.00
0.00
0.00
Value of Connection
Interest earned
Commission/Exchange earned
Processing Fees
Upfront Fees
0.00
0.00
0.00
Lead Bank Charges
0.00
0.00
0.00
Export Business routed
0.00
0.00
0.00
Import Business routed
0.00
0.00
0.00
Inland Bill Discounted
0.00
0.00
0.00
Auxiliary Business
0.00
0.00
0.00
Credit Turnover
3500.95
3658.13
3454.82
Cash Credit
Packing Credit
0.00
0.00
0.00
Bills
0.00
0.00
0.00
482.03
448.32
395.63
Highest Debit Balance
CrBal
CrBal
CrBal
Lowest Debit Balance
Yes
Yes
Yes
Whether credit turnover in the
account commensurate with
sale & our share of limit
Occurrence of irregularity in the account during last one year
No. of times and days
1
the account was irregular
Reasons for the
Adhoc Limit sanctioned
irregularity(ies)
Peak irregularity in the
Rs 24.75 lacs
account, if any
Comment on irregularity
Adhoc limit permitted in the account to meet out urgent
business obligations and the same has been
regularized within time.
Share Price on................
Current price: - BSE:NSE:(N.A.)
52 Wk H / L:Last Consortium Meeting
Date : - N.A.
(Brief proceedings of the meeting with major agenda discussed)
Unit Visit (visit report as per HO IC 12878 dated 28.01.2014 to be submitted with proposal)
ByBranch:02.07.2014
Date of visit
Names of officials visited

Places visited
Major observations made

ByZonalOffice:07.08.2014
By Branch: Sri Sandeep Bhutani (Branch Head) and Mrs.
ShatabadiSingh(Officer)
ByZonalOffice:MrPradeepKumar(Manager)andMrSandeep
Dohrey(Manager)

Factory/Residence/Mortgaged Properties
Nothing adverse found.

D. Irregularities pointed out in various audit/inspections & rectification advice

thereof:
Particulars of irregularities
Rectification advice thereof
i.
Legal Audit
Dated: a)
No irregularity found.
ii.
Stock Audit
Dated: -05.02.2014
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

11

a)
b)
c)
d)
e)

f)

g)

iii.
a)
iv.
a)
v.
a)
vi.
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)

Stock position is not regularly updated in the

books.
Borrower is maintaining 25% margin on book
debts instead of 40%.
Insurance cover not held in file.
The banks plate is not displayed by the
borrower.
There is no stock in the books of the borrower
as well as at the site.
Valuation of stock is done on the basis of
purchase cost whereas the same should be
done on the basis of Cost or market value
whichever is less
Position of stock, debtors and creditors has not
been verified with the books/register of the
borrower.
Concurrent
Dated: - 30.06.2014
Audit
Account overdrawn by Rs 7.18 lacs
Statutory
Dated: Auditors
N.A.
RBI Inspection
Dated: N.A.
H. O. Inspection Dated: -22.01.2014
Record of central registry for Mortgages created by
deposit of title deed not held in file.
Legal Audit report not held on record.
Outstanding exceeds sanctioned limit for non-peak
season (30.00 Lacs).
KYC norms not complied
Credit report of borrower/ guarantor not held in file
Insurance cover not held in file

The firm has been advised to maintain

proper stock position in the books.
Now the margin will be maintained at
40%.
The borrower has denied and given
letter that in case of any loss, he
would be responsible.
Now displayed.
Stock audit was done during none
peak season. Now, Fresh will be done
before disbursement of enhanced
limit.
Fresh will be done on the basis of
Cost or market value whichever is
less.
Fresh stock audit will be done in
presence of branch head and all
account books will be checked &
verified.
File closed on: -15.07.2014
Due to interest application and has
since regularized.
File closed on: File closed on: File closed on: - 19.05.2014
Now held
Now held in file.
Regularized and within limit.

Complied and held in file.

Now held in file.
The borrower has denied and given letter
that in case of any loss, he would be
responsible.
Visit cum valuation report of the branch officials for Now, held in file.
review period not held.
Security register not maintained
Now maintained
Stock/ Book debts statement not obtained.
Stock/ Book debts statement obtained and
held in file.
Stock/ Book debts statement are not scrutinized and Stock/ Book debts statement are
drawings are not regulated.
scrutinized and drawing in the account is
being regulated on the basis of DP.
Visit report not held in file
Visit report held in file
E-1 not held in file
E-1 held in file and submitted on regular
basis.

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

12

m)
n)
o)

Joint visit cum valuation report not held in file

Overdrawing allowed after 31.012.2013 without
reducing the limit from Rs.400.00 Lacs to Rs.30.00
Lacs
Valuation of two independent valuer not held

q)

CIBIL report not extracted

vii.

Joint visit cum valuation report held in file

Limit has been reduced and account
regularized.
Valuation of two independent valuer for
one property obtained and for another the
same is allotted to valuer.
Now CIBIL report obtained and nothing
adverse found.
File closed on: -

Credit Process
Dated: Audit
a)
N.A.
If inspection / audit files are not closed, present status of rectification to be stated

Sl
Particulars
Remarks
No.
1.
Versification of mortgaged properties (Primary / Collateral)
a)
Description of property with name of the Found correct.
owner/(s)
b)
Date of visit by bank officials
07.08.2014
c)
Name of the Advocate
Sri Jaiveer Singh Parmar (Empanelled Lawyer)
d)
Date of Legal opinion & certification of title 27.08.2011
deed as genuine
e)
Date of registration with CERSAI
17.09.2014
f)
Date of last CERSAI search & observation
17.09.2014
g)
First Property:
Date of 1st valuation
22.05.2014
Name of the valuer
M/s Yogendra Architects, Bareilly
Market Value vis-a-vis Forced Sale Value
Rs 1097.31 lacs and Rs 932.71 lacs
Date of 2nd valuation
Allotted to valuer.
Name of the valuer
Second Property:
Date of 1st valuation
07.06.2011 (Fresh allotted to valuer)
Name of the valuer
M/s Yogendra Architects, Bareilly
Market Value vis-a-vis Forced Sale Value
Rs 53.23 lacs and Rs 45.24 lacs
nd
Date of 2 valuation
Allotted to valuer.
Name of the valuer
Market Value vis-a-vis Forced Sale Value
Third Property:
Date of 1st valuation
07.06.2011 (Fresh allotted to valuer)
Name of the valuer
M/s Yogendra Architects, Bareilly
Market Value vis-a-vis Forced Sale Value
Rs 12.09 lacs and Rs 10.28 lacs
nd
Date of 2 valuation
N.A.
Comments
Fresh valuation of mortgaged property and
second valuation, which are due for valuation,
allotted to empanelled valuer and report will be
obtained within a week.
2.
Search at ROC
a)
Date of Last search: N.A.
b)
Search done by: N.A.
c)
Observations on charge registered: N.A.
d)
Last audited balance sheet filed: N.A.
e)
Any difference found in balance sheet
N.A.
f)
Comments
N.A.
3.
Verification of top 5 sundry debtors & 5 sundry creditors
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

13

a)
b)
c)
d)
e)

Date of verification:Source of verification

Nature of transactions
Volume & Value of transaction
Comments

ANNEXURE V
A. FINANCIAL POSITION & PROFITABILITY
TRADING and PROFIT & LOSS ACCOUNT
31.03.2012
31.03.2013
31.03.2014
Audited
Audited
Audited

31.03.2015
Projected

Gross Sales
- Domestic
- Export
Sub Total (Gross Sales)
Less Excise Duty
Net Sales
% wise rise/fall in net sales as compared to
previous year
Other Operating Income
Export Incentives
Duty Drawback
Others
Total Operating Income
Cost of Sales
Raw materials consumed
i) Imported
ii) Indigenous
Other Spares consumed
i) Imported
ii) Indigenous
Power and fuel
Direct labour and wages
Other manufacturing expenses
Depreciation
Sub Total
Add: Op. Stock of WIP
Less: Cl. Stock of WIP
Total Cost of Production
Add Opening Stock of Finished Goods
Less: Cl. Stock of Finished Goods
Total Cost of Sales
Selling, Gen. & Administration Exp
Employee cost
Cost of Sales + SGA
Operating Profit before Interest
Interest payment to Banks
Interest - WC
Interest - Term Loans
Interest payment to FIs
ACCOUNT:

2430.31
0.00
2430.31
0.00
2430.31

1186.00
0.00
1186.00
0.00
1186.00

1835.92
0.00
1835.92
0.00
1835.92

2100.00
0.00
2100.00
0.00
2100.00

-51.20

54.80

14.38

0.00
0.00
52.48
2482.79

0.00
0.00
47.88
1233.88

0.00
0.00
87.98
1923.90

0.00
0.00
2.00
2102.00

0.00
2293.71

0.00
1127.39

0.00
1759.77

0.00
1995.00

0.00
0.00
8.05
13.59
25.85
2.96
2344.16
0.00
0.00
2344.16
0.00
0.00
2344.16
85.42
9.10
2438.68
44.11

0.00
0.00
8.37
10.41
28.24
2.91
1177.32
0.00
0.00
1177.32
0.00
0.00
1177.32
22.36
7.06
1206.74
27.14

0.00
0.00
11.54
16.01
59.11
2.88
1849.31
0.00
0.00
1849.31
0.00
0.00
1849.31
28.83
7.34
1885.48
38.42

0.00
4.00
0.00
0.00
0.00
10.57
2009.57
0.00
0.00
2009.57
0.00
0.00
2009.57
29.99
8.50
2048.06
53.94

34.97
0.00

26.03
0.00

24.25
0.00

32.00
0.00

M/s OM GANGA KAVERI SEEDS, PILIBHIT

14

Interest - WC
0.00
0.00
Interest - Term Loans
0.00
0.00
Interest Payment to Others
0.63
1.18
Bank charges
0.45
1.65
Total Interest
36.05
28.86
Operating Profit after Interest
8.06
-1.72
Non Operating Items
Add Non Operating Income
Profit on sale of assets/ investments
0.00
0.00
Investments and Dividend
0.00
0.00
Forex gains
0.00
0.00
Non-op. income from subsidiaries
0.00
0.00
Tax Refund
0.00
0.00
Other Non Operating Income
2.91
10.19
Total non-operating Income
2.91
10.19
Deduct Non Operating Expenses
Loss on sale of assets
0.00
0.00
Prem. Expenses w/off
0.00
0.00
Other Non- operating exp.
0.00
0.00
Forex losses
0.00
0.00
Total Non-operating expenses
0.00
0.00
Net of Non-operating Income / Expenses
2.91
10.19
Profit Before Interest Depreciation &
Taxes (PBIDT)
49.98
40.24
Profit Before tax
10.97
8.47
Provision for taxation:
Current
0.00
0.00
Deferred
0.00
0.00
Sub Total: Provision for taxation
0.00
0.00
Net Profit After tax
10.97
8.47
Extraordinary Items adjustments:
Extraordinary Income adjustments (+)
0.00
0.00
Extraordinary Expenses adjustments (-)
0.00
0.00
SubTotal Extraordinary items
0.00
0.00
Adjusted PAT (excl Extraordinary Items)
10.97
8.47
Dividend Paid
On Equity Capital
0.00
0.00
On Preference Sh. Capital
0.00
0.00
Dividend tax
0.00
0.00
Partners' withdrawal
0.00
0.00
Dividend (%)
0.00
0.00
Retained Profit
10.97
8.47
Cash Accruals
13.93
11.38
BALANCE SHEET (LIABILITIES ) INPUT
CURRENT LIABILITIES
Short term borrowings from Banks
(including bills purchased, discounted &
excess borrowings placed on repayment
basis)
Bank Borrowings - From our Bank
322.67
7.46
Bank Borrowings - From other Banks
0.00
0.00
Sub Total
322.67
7.46
Short term borrowings from Associates &
Group Concerns repayable within one
year
0.00
0.00
Short term borrowings from Others
0.00
0.00
Creditors for purchases
286.80
266.61
Creditors for expenses
0.00
0.00
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

0.00
0.00
14.29
2.76
41.30
-2.88

0.00
0.00
7.20
0.00
39.20
14.74

0.00
0.00
0.00
0.00
0.00
13.28
13.28

0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
13.28

0.00
0.00
0.00
0.00
0.00
0.00

54.58
10.40

64.51
14.74

0.00
0.00
0.00
10.40

0.00
0.00
0.00
14.74

0.00
0.00
0.00
10.40

0.00
0.00
0.00
14.74

0.00
0.00
0.00
0.00
0.00
10.40
13.28

0.00
0.00
0.00
0.00
0.00
14.74
25.31

138.53
0.00
138.53

550.00
0.00
550.00

0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00

15

Advances/ payments from

customers/deposits from dealers.
0.00
0.00
Provisions
- Tax
0.00
0.00
- Deferred tax
0.00
0.00
- Others
0.00
0.00
Dividends Payable
0.00
0.00
Statutory liabilities due within one year
0.00
0.00
Installments of Term Loans / Deferred
payment credits / Debentures / deposits /
redeemable preference shares (due within
one year) - To Banks
0.00
0.00
Installments of Term Loans / Deferred
payment credits / Debentures / deposits /
redeemable preference shares (due within
one year) - To Others
0.00
0.00
Deposits due / payable within a year
0.00
0.00
Other Current Liabilities due within one year
4.52
2.23
Total Current Liabilities
613.99
276.30
TERM LIABILITIES
Debentures maturing after 1 year
0.00
0.00
Preference share capital maturity < 12 years
0.00
0.00
Dealer's Deposit
0.00
0.00
Deferred Tax Liability
0.00
0.00
Term Loans - From Banks
0.00
0.00
Term Loans - From Fis
0.00
0.00
Term Deposits
0.00
0.00
Borrowings from subsidiaries / affiliates
(Quasi Equity only if subordinated to our
bank's loan )
0.00
0.00
Unsecured Loans
0.00
0.00
Other term liabilities
0.00
0.00
Total Term Liabilities
0.00
0.00
TOTAL OUTSIDE LIABILITIES
613.99
276.30
NET WORTH
Equity Share Capital
Share Capital (Paid-up)
0.00
0.00
Share Application (finalised for
allotment)
0.00
0.00
Share Application (not finalised for
allotment)
0.00
0.00
Sub Total (Share Capital)
0.00
0.00
General Reserve
0.00
0.00
Revaluation Reserve
0.00
0.00
Partners capital / Proprietor's capital
30.77
37.64
Balance in Partners' Current A/c (+ / -)
0.00
0.00
Other Reserves & Surplus:
Share Premium
0.00
0.00
Capital subsidy
0.00
0.00
Others (Unsecured Loan classified as Quasi
Capital)
39.26
49.36
Balance in P&L Account (+ / - )
0.00
0.00
NET WORTH (Including Quasi Capital)
70.03
87.00
NET WORTH
30.77
37.64
TOTAL LIABILITIES
684.02
363.30
BALANCE SHEET (ASSETS) INPUT
CURRENT ASSETS
Cash & Bank Balances
27.31
4.77
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

0.00

0.00

0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00

0.00

0.00

0.00
0.00
1.51
140.04

0.00
0.00
0.11
550.11

0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
140.04

0.00
0.00
0.00
0.00
550.11

0.00

0.00

0.00

0.00

0.00
0.00
0.00
0.00
85.64
0.00

0.00
0.00
0.00
0.00
100.34
0.00

0.00
0.00

0.00
0.00

57.15
0.00
142.79
85.64
282.83

210.00
0.00
310.34
100.34
860.45

24.69

2.45

16

Investments
Govt. and other trustee Securities
Fixed Deposits with Banks
Others
Receivables
Domestic Receivables
Export Receivables
Note :
1. All receivable upto 180 days only to be
included.
2. Sale bills negotiated under LC to be
excluded.
Deferred receivable (due within one year.)
Inventory
Raw Materials - Imported
Raw Materials - Indigenous
Work in process
Finished Goods (incl Traded Goods)
Other consumable spares - Imported
Other consumable spares - Indigenous
Sub total (Inventory)
Advances to suppliers of RM / STORES /
SPARES
Advance payment of tax
Other Current Assets
TOTAL CURRENT ASSETS
FIXED ASSETS
Gross Block
Less: Accumulated Depreciation
Net Block
Capital Work in progress
NON-CURRENT ASSETS
Investments / Book Debts / Advances /
Deposits (which are not current assets):
Investments in Group concerns
Loans to group concerns / Advances to
subsidiaries
Investments in others
Advances to suppliers of capital goods
and contractors
Deferred receivables (maturity
exceeding one year)
Debtors > 6 mths.
Others (Loans & Advances non current
in nature, ICD's etc.)
Security deposits
Deposits with Government departments
Deferred Tax Asset
Other Non-current Assets (incld. Dues from
directors, obsolete stock, non consumable
stores / spares)
TOTAL NON CURRENT ASSETS
Intangible Assets:
Goodwill, Patents & trademarks
Accumulated Losses
Preliminary expenses
Miscellaneous expenditure not w/off
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

571.86
0.00

282.79
0.00

137.54
0.00

188.00
0.00

0.00

0.00

0.00

0.00

0.00
0.00
0.00

0.00
0.00
0 00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
6.02
605.19

0.00
0.00
19.60
307.16

0.00
0.00
14.44
176.67

600.00
0.00
6.00
796.45

23.81
7.12
16.69
0.00

22.09
2.91
19.18
0.00

73.35
2.88
70.47
0.00

70.47
10.57
59.90
0.00

0.00

0.00

0.00

0.00

0.00
0.00

0.00
11.06

0.00
0.00

0.00
0.00

0.00

0.00

0.00

0.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00
62.15
0.00
0.00

0.00
25.90
0.00
0.00

0.00
35.70
0.00
0.00

0.00
4.10
0.00
0.00

0.00
62.15

0.00
36.96

0.00
35.70

0.00
4.10

0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00

0.00

0.00
0.00
0.00
0.00

0.00
0.00

17

Other deferred revenue expenses

TOTAL ASSETS
TANGIBLE NETWORTH
DIFFERENCE IN B/S
Net working capital
Current Ratio
TOL / TNW
ADDITIONAL INFORMATION
Arrears of depreciation
Contingent liabilities
Arrears of cumulative dividends
Guarantees issued (relating to business)
Guarantees issued (for group companies)
Gratuity Liability not provided for
Disputed excise / customs / tax Liabilities
LCs accepted
All other contingent liabilities
(incldg. Bills purchased - Under LC)

0.00
684.03
70.03
0.01
-8.80
0.99
8.77

0.00
363.30
87.00
0.00
30.86
1.11
3.18

0.00
282.84
142.79
0.01
36.63
1.26
0.98

0.00
860.45
310.34
0.00
246.34
1.45
1.77

0.00

0.00

0.00

0.00

0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00

0.00

0.00

0.00

0.00

IV. Break-up of different Balance Sheet Items

2012
(Audited)

2013
(Audited)

2014
(Audited)

(` /lacs)
2015
(Projected)

0.00

0.00

0.00

0.00

39.26

49.36

57.15

210.00

TOTAL

0.00
39.26
0.00
0.00
0.00
39.26

0.00
49.36
0.00
0.00
0.00
49.36

0.00
57.15
0.00
0.00
0.00
57.15

0.00
210.00
0.00
0.00
0.00
210.00

SECURED LOANS
Term Loans
Debentures
TOTAL

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00
0.00
30.77
0.00
30.77

0.00
0.00
0.00
0.00
37.64
0.00
37.64

0.00
0.00
0.00
0.00
85.64
0.00
85.64

0.00
0.00
0.00
0.00
100.34
0.00
100.34

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

Year ended 31st March

UNSECURED LOANS
1 Term Deposits
1.1 Deposit from Directors / relatives(Quasi Equity)
1.2 Deposit from Others
Sub-Total
1.3 Loans/Advances from others
1.4 Deferred Tax Liability

1.5 Preference share capital maturity < 12 years

2.1
2.2
2.3

RESERVES & SURPLUS

3.1
3.2
3.3
3.4
3.5
3.6

General Reserve
Share Premium Reserve
Profit and Loss Account
Others Reserve
Partners capital / Proprietor's capital
Balance in Partners' Current A/c (+ / -)

TOTAL
INTANGIBLE ASSETS
4.1
4.2
4.3

Misc. expenditure not w/off

Loss Brought forward
Goodwill, Patents & trademarks

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

18

4.4
4.5

Preliminary Expenditure
Other deferred revenue expenses

TOTAL
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10

6.1
6.2
6.3
6.4

6.1
6.2
6.3
6.4
6.5

6.6

6.7
7.1
7.2
7.3
7.4
7.5
7.6
7.7

INVESTMENTS & NCAs

Inv. In Subsidiary/Associates
Inv. in Govt. Securities
Inv. in body corporate
Other investments
Fixed Deposit
Advance to body corporate
Other Advances treated NCA
Debtors over six months
Debtors considered doubtful
Advances to suppliers of capital goods and
contractors
TOTAL
Other current Assets
Advance Payment of Tax
Loans and advances
Advance recoverable in cash/kind
Other Current Assets
TOTAL
Other Current Liabilities
Unclaimed dividend
Misc. Liabilities
Interest accrued but not due
Provision for employee benefits
Provision for others
Instalments of Term Loans / Deferred
payment credits / Debentures / deposits /
redeemable preference shares (due within
one year) - To Banks
Instalments of Term Loans / Deferred
payment credits / Debentures / deposits /
redeemable preference shares (due within
one year) - To Others
TOTAL
Term Loans
Debentures
Rupee Term Loans from Banks
Rupee Term Loans from FIs
Rupee Term Loans from NBFC
Corporate Loan
Auto Loan from Banks
Auto Loan from NBFC
TOTAL

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
62.15
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
25.90
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
35.70
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
4.10
0.00
0.00

0.00

0.00

0.00

0.00

62.15

25.90

35.70

4.10

0.00
0.00
0.00
6.02

0.00
0.00
0.00
19.60

0.00
0.00
0.00
14.44

0.00
0.00
0.00
6.00

0.00
4.52
0.00
0.00
0.00

0.00
2.23
0.00
0.00
0.00

0.00
1.51
0.00
0.00
0.00

0.00
0.11
0.00
0.00
0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.52

2.23

1.51

0.11

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

V. Comments: ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

19

a. Sales: TheborrowerhasachievedsalesofRs.2430.31Lacsduring201112andthesamewasdecreased
toRs.1185.99Lacsduring201213.Inthisregard,thefirmhassubmittedthatduetoexcessiverains,
largeamountofseedcropwasdestroyedwhichaffectedqualityofseedsandthiscoupledwithintense
competitionresultedincancellationofmanypreviousordersofbuyers.Further,unlikepreviousyear,the
firmcouldnotgetGovernmentcontractsinFY201213andalsosomeseedscouldnotbepackeddueto
latedistributionoftagsbyUPSSCA(whichisusedinpackaging).However,asperAuditedfinancial
statement as at 31.03.2014 the sales of the firm has been increased to Rs.1835.92 Lacs against the
projectedsalesofRs.1300.00Lacsacceptedatthetimeoflastrenewali.e.morethan100%achievement
of projected sales and 54.80 % growth over previous year. The borrower had projected sales of
Rs.2100.00Lacsforthecurrentfinancialyear201415.Further,thebranchhassubmittedthatthefirmhas
achievedgrosssalesofRs87.00lacs,whichisverylowduetotononpeakseasonforsales.Inthisregard
thefirmhassubmittedthattheyhavealreadysuppliedthepaddyseedtoGovernmentbodiesandvarious
seedpartiesforapprox.Rs.87.00Lacwhichappearsonlowerside,howeverasperthesalespatternoflast
yearthatmaximumsalesofthefirmtakeplaceduringOctobertoDecembermonthsasthelastyearfirm
achievedsaleofRs.17.65CroresduringthesameperiodandcreditsummationinCCaccountisRs
977.41 lacs out of which business related credit entries are of Rs 193.46 lacs from 01.04.2014 to
30.09.2014.Thefirmisveryhopefulthisyearandtoachievetheprojectedsalesturnover,theyneedmore
workingcapital.Accordingly,thefirmhasrequestedtoenhancetheirexistingworkingcapitallimitto
Rs.550.00Lacs.Keepinginviewofthepastperformanceofthefirmandalsoconsideringthecredit
turnoverintheaccountduringcurrentfinancialyear,salespatternofthefirmandacceptanceofthe
projectedsalesbythebranch,wemayacceptthesame.

b. Profitability: Theprofitabilityofthefirmisshowinganincreasingtrend.Thenetprofitofthefirmhas
beenRs.10.97LacsandRs.8.47Lacsasat31.03.2012and31.03.2013respectively.Thesamehasbeen
furtherincreasedtoRs.10.40LacsduringFY201314aspertheAuditedF.S.asat31.03.2014.Thenet
profitofthefirmhasbeenprojectedtobeofRs.14.74LacsforthecurrentF.Y.201415.

c. Capital / TNW (including movement of TNW)

Particulars
Opening TNW
Add PAT
Add. Increase in equity / premium
Add: Share Application Money
Add./Subtract change in intangible assets
Add/Subtract change in DTL/DTA
Adjust prior year expenses
Deduct Dividend Payment/withdrawals
Closing TNW

Audited
2011-12
31.47
7.15

30.77

Audited
2012-13
30.77
8.47
1.70
0.00
0.00
0.00
0.00
3.30
37.64

(Rs/ Lacs)
Audited
2013-14
37.64
10.40
107.30
0.00
0.00
0.00
0.00
69.70
85.64

d. Net Working Capital / Current Ratio: Thecurrentratioofthefirmhasbeen0.99:1and1.11asat

31.03.2012and31.03.2013respectively.AsperAuditedF.S.asat31.03.2014thecurrentratioofthefirm
hasimprovedto1.26:1.Thesamehasbeenprojectedas1.45:1fortheFY201415.Thecurrentratioofthe
firmasat31.03.2013and31.03.2014isbelowthebenchmarklevel,howeverthesameiscontinuously

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

20

improvingandaspertheprojectionsthesameisabovebenchmarklevel,thereforethesamemaybe
accepted.
e. Capital / TNW (including movement of TNW): TheTangibleNetWorthofthefirmwasof
Rs.30.377Lacsason31.03.2012anditincreasedtoRs.37.63Lacsason31.03.2013.AspertheAudited
F.S.forFY201314,ithasincreasedtoRs.85.64Lacs.Networthofthefirmisincreasingduetore
investmentofthefirmsprofitaswellasduetoinfusionoffreshcapital.TheTNWofthefirmhasbeen
projectedtobeofRs.100.34Lacsasat31.03.2015.

f. Leverage Ratio (Debt-Equity Ratio, TOL/TNW): TheTOL/TNWratioofthefirmhasbeen

8.77and3.18:1asat31.03.2012and31.03.2013respectively.AsperAuditedF.S.asat31.03.2014the
ratio of the firm has further improved to 0.98:1.The same has been projected to be at 1.77:1 as at
31.03.2015.Sincetheratioisinconformitywithbenchmarklevel,wemayacceptit.Further,D/Eratiois
continuouslyzero.Further,thefirmhasinformedthatunsecuredloanofRs39.26lacsasat31.03.2012,
Rs49.36lacsasat31.03.2013andRs57.15lacsasat31.03.2014respectivelyhasbeentakenfromtheir
familymembersandthesameisprojectedtomaintainatRs210.00lacsasat31.03.2015,whichwillnot
bewithdrawnduringpendencyofbankloan.Since,thesameislongterminnature,wemayconsideritas
aquasicapital.

Note: Theborrower has submittedthat inpreviousyear the farmersdoesnotrequired/demandedmuch

advanceagainstthecropwhichisfirmintakebutinviewoftheintensecompetitioninthemarket,nowthe
firmhastopaythehandsomeamounttothefarmerstoensurethesufficientintakeofthecrop.Accordingly
thefirmhasprojectedmajorincreaseintheamountofadvancetofarmers.

g. Contingent / Statutory Liabilities: Nil

ANNEXURE VI
A. ASSESSMENT OF WORKING CAPITAL FACILITIES
I. Performance level based on which the existing facilities were sanctioned
(Rs. in Lac)
For the year ended
Accepted by us at the time
Actual
31.03.2014
of last assessment
(As per Audited B.S.)
1300.80
1835.92
Gross Sales
14.47
13.28
Cash Generation
554.79
176.67
Current Assets
407.50
140.04
Current Liabilities
147.29
36.63
NCA
1.26:1
1.36:1
Current Ratio
0.00:1
0.00:1
DE Ratio
0.98:1
2.56:1
TOL/TNW
II. Fund Based Working Capital Limits:(Year ending) 31st March
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

2012
Audited

2013
Audited

(Rs. in Lac)
2014
2015
Audited
Projected
21

i)

Sales (Gross)
-Domestic Sales
-Other Sales/ Income
ii)
Sales (Net)
iii) Cost of Production(COP)
iv) Cost of Sales(COS)
v)
Raw Material Consumption
vi) Raw Material Purchase
vii) % of COP to Sales
viii) % of COS to Sales
ix) % of R. M. Cons. to COP

2430.31
52.48
2482.79
2344.16
2344.16
2293.71
2293.71
94.42
94.42
97.85

1186.00
47.88
1233.88
1177.32
1177.32
1127.39
1127.39
95.42
95.42
95.76

1835.92
87.98
1923.90
1849.31
1849.31
1759.77
1759.77
96.12
96.12
95.16

2100.00
2.00
2102.00
2009.57
2009.57
1995.00
1995.00
95.60
95.60
99.27

(Rs. in Lac)
Calculation of Firm's Holding Period requirement
Accepted
during last
assessment
0.00
Raw Materials
0.00
(Month's Consumption)
540.49
Receivables Domestic
4.99
(Month's sales)
0.00
Advances to Suppliers of Raw Materials
14.30
Other Current Assets
554.79
Total Current Asset
5.00
Creditors
1.55
(Month's cost of Purchase)
2.50
Others
7.50
Sub-total
547.29
(Working Capital Gap)

2012

2013

Audited

Audited

0.00
0.00
571.86
2.82
0.00
33.33
605.19
286.80
1.58
4.52
291.33
313.86

0.00
0.00
282.79
2.86
0.00
24.37
307.16
266.60
2.86
2.23
268.83
38.33

(Year ending) 31st March

COMPUTATION OF PERMISSIBLE BANK FINANCE:
i)
Working Capital Gap
ii)
25% margin on Current Assets
iii)
Projected Working Capital Surplus
iv)
Item (i) minus Item (ii)
v)
Item (i) minus Item (iii)
vi)
Permissible Bank Finance-item (iv) or (v) which is less
Our Share (100%)

2014

2015

Estimates Projection
0.00
0.00
137.54
0.90
0.00
39.13
176.67
0.00
0.00
1.51
1.51
175.16

0.00
0.00
188.00
1.07
600.00
8.45
796.45
0.00
0.00
0.11
0.11
796.34

(Rs. in Lac)
2014
2015
175.16
44.17
36.63
130.99
138.53
138.53
130.99

796.34
199.11
246.34
597.23
550.00
550.00
550.00

a. Holding levels
i. Raw material:
The holding period of rawmaterial/inventory is continuously nil as per the audited, provisional and
projectedfinancialstatementsofthefirm.Asperthetrendofthebusinessofthefirm,thepeaklevel
requirementofthefundsremainsmainlyfromApriltoDecembereachyear.Sinceason31stMarch,there
usuallyremainsnoornegligiblestock,theholdingperiodhasnocorrelationwiththepositionofinventory
inthebalancesheets.Accordingly,theprojectedrawmaterial/inventoryholdingperiodi.e.nilmaybe
consideredsatisfactory.

ii. Debtors Holding Period:

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

22

Thedebtorsholdingperiodofthefirmwas2.82monthsand2.86monthsfortheF.Y.201112&FY
201213respectively.AspertheAuditedfinancialstatementofthefirmforFY201314,debtorsholding
periodhavebeen0.90months.However,theprojecteddebtorsholdingperiodofthefirmforFY201516
is1.07months.Inviewoftheabove,consideringtheproponentslongexperienceinthefield,thesame
maybeaccepted.

iii. Creditors Holding period:

Thecreditorsholdingperiodofthefirmwas2.86and0.00monthsduringFY201213and201314
respectively.Since,themostofrawmaterialsisusuallypurchasedfromuniversitiesandorganizationsetc.
oncashbasisoronshorttermcreditbasis,thecreditperiodusuallyremainsonlowerside.Further,since
thetimeperiodfromJanuarytoMarcheachyearisanonpeakseasonandfirmusuallypaidoffallits
creditorsduringitspeakseason,accordinglyason31Marchcreditorsnormallyremainsonlowersideor
nil.Assuch,theprovisionalcreditorsholdingperiodofthefirmforFY201415andFY201516,which
arenil,canbeaccepted.

b. Brief comments and justification on the assessment of the above FB limits:

TheunitisengagedinprocessingandgradingofqualityseedofPaddyandwheat.TheCycleoftheunitis
asunder:
MonthofCommencementofPurchase(Intake)
MonthofclosureofPurchase(Intake)
GrossNo.ofdays
MonthofCommencementofSale
MonthofClosureofSale
GrossNo.ofdays

Wheat

Paddy

April
August
115
October
December
85

October
December
75
April
June
60

Theborrowerfirmhassubmittedthatinpreviousyearsthefarmersdoesnotrequired/demandedmush
advancepaymentagainstthecropwhicharetheintakesofthefirmbutinviewoftheintensecompetition
inthemarket,nowthefirmhastopayhandsomeamounttothefarmerstoensurethesufficientintakeof
thecropduringpeakseasonandthesamehasbeenprojectedatRs600.00lacsasat31.03.2015.
Keepinginviewoftheabove,thepeaklevelrequirementofthefundsismainlyfromApriltoDecember
eachyear.Accordingly,thepeakseasonrequirementisbeingassessed.Sinceason31stMarch,therewill
benoor negligible stock and bank borrowing, hence the holding period has nocorrelation withthe
positionofinventoryinthebalancesheets.Keepinginviewthemonthlypositionofstockasalsotheraw
materialconsumptionandtimetakeningrading,packingetc.,theworkingcapitalrequirementforpeak
seasonhasbeenassessedasabove.
In view of the above, we may consider Peak level requirement of the firm for the period April to
DecemberRs.550.00LacsandafterDecember,theaccountusuallyremainsincredit.However,forany
unsoldstocksforthatnonpeaklevellimitofRs.50.00LacsmaybeconsideredforJanuarytoMarch.

III. Non-Fund based Working Capital facilities: - Nil

ANNEXURE VII
(Assessment of Term Loan including ECB and Capex LC.)
N.A.
ANNEXURE VIII
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

23

(Project Financial) : N.A.

ANNEXURE IX
Other Issues (Concessions / Approvals / Permission with justification, reference to
be given of other members banks regarding ROI/Commissions/Service
Charges/Permissions in case of consortium finance)
A. Reduction / Alignment of Rate of Interest on Funded facilities
ThefirmhasrequestedforenhancementoftheirexistingcreditfacilitytoRs.550.00Lacsattheexisting
concessionalrateofinteresti.e.BR+0.75%.Inconsiderationofthefactsliketakeoverofoneofthegroup
account,M/sModernTeraiSeedsbySBIonthebasisoflowerrateofinterest,longassociationofgroupand
its valueof connectionwithourBank,toretainthegoodbusiness etc., the interest ratewas reducedto
BR+0.75% from existing BR+1.00% under the authority of HLCCED on 05.12.2013 vide their letter
ref.HO/SMECredit/HLCCED/201314/3076.Accordingly,thesamemaybecontinued.

B. Reduction / Alignment of Commission / Service Charges on NFB facilities

N.A.
C. Concession in Processing Fess / Upfront fees / Lead Bank Charges
Nil
D. Interchangeability from FBWC to NFBWC facility
N.A.
E. Interchangeability from NFBWC to FBWC facility
N.A.
F. Interchangeability between funded facilities
N.A.
G. Interchangeability between non-funded facilities
N.A.
H. Substitution of Security / Personal Guarantee
Nil
I. Others if any
Nil

ANNEXURE X
Compliance status of the proposal with our Lending policies (including mentioning
deviations with justifications for accepting the same)
A. CONFIRMATION & COMPLIANCE STATUS
Particulars
5a Whether compliance of last sanction terms
done
5b Whether Security Documents held are
valid and enforceable
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

Remarks
Yes
Yes

24

5c
5d
5e
5f.
5g.
5h.
5i.
5j
5k

Whether proper Charge on securities

created in favour of the Bank
Whether Exposure is within Banks
Prudential norms
Whether there is any deviation from usual
Lending norms
Whether Directors are disqualified under
Sec 274 of Companies Act
Whether there is any arrears in payment of
Statutory Liabilities
Whether the Directors/the Company are on
the RBI Defaulters List
Whether Status Report/D & B Report, if
applicable, is obtained
Whether E1 has been received and
scrutinized
Whether the tenure of the loan is as per
Banks Lending Policy.

Yes
Yes
No
N.A.
ReportedNil
No,asperRBIdefaulterlistofJune2013.
N.A.
Yes
Yes

B. Compliance to the Banks Lending Policy /RBI Norms (Deviations/NonCompliance, if any, to be highlighted)
Sl No Parameter
Compliance
1.
Current Ratio
The current ratio of the firm as at
For fresh loans covered under Turn-over 31.03.2013 (1.11:1) and 31.03.2014
Method, a Current Ratio of 1.25:1 (1.26:1) is below the benchmark level,
(minimum) and under 2nd method of however the same is continuously
lending a current ratio: 1.33:1 (minimum) improving and as per the projections the
may be stipulated. However, a lower/ same is above benchmark level, therefore
higher ratio in case of existing account may the same may be accepted.
be considered under specific loan scheme
or in deserving cases. The reasons for
lower current ratio or slippage should be
carefully examined. In case of accepting
lower Current Ratio than bench mark ratio
in existing cases, it should be stipulated
that company shall improve its current ratio
to more than 1:1 and thereafter maintain it
above 1.33:1 in the next financial year.
2.
Debt Equity Ratio
Complied, 0.00:0 as at 31.03.2014.
Should not normally be below 3.00:1.
3.
TOL/TNW
The TOL/TNW ratio of the firm has been
In case of all fresh sanction / enhancement, 8.77 and 3.18:1 as at 31.03.2012 and
TOL/ANW ratio (Total outside Liability/ 31.03.2013 respectively. As per Audited
Adjusted Net Worth) may be considered at F.S. as at 31.03.2014 the ratio of the firm
4:1 for manufacturing units and 6:1 for has further improved to 0.98:1.The same
trade / service units.
has been projected to be at 1.77:1 as at
The existing cases where TOL/ANW is 31.03.2015. The ratio is in conformity with
above the aforesaid norms shall be brought benchmark level.
down preferably within a period of one year. (Considering unsecured loan as quasi
capital.)
4.
Margin on Funded Working Capital Limit Complied.
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

25

5.

6.

Normally a minimum margin of 25% (Under

turnover method it may be 20%) should be
obtained from the borrower(s).
Margin of Bank Guarantee:
N.A. (No Non Funded Limit proposed)
The normal margin will be 25% minimum.
Relaxations may be allowed for borrowers
having satisfactory conduct of account and
rated between AB1AB4 and AB5
(Greenfield and Infrastructure projects) only
by ZLCC(AGM/DGM). However, HLCC
(GM)/HLCC(ED) and CAC can allow
following relaxations irrespective of rating.
Authority Relaxations in Bank Guarantee
ZLCC (AGM / DGM) Minimum 20%
HLCC (GM)
Minimum 10%
HLCC (ED)
Minimum 5%
CAC
Up to NIL
Margin of Letter of Credit:
N.A. (No Non Funded Limit proposed)
The normal margin will be 25% minimum
for both D/P and D/A L/Cs. Relaxations
may be allowed for borrowers having
satisfactory conduct of account and rated
between AB 1 AB 4 and AB 5 (Greenfield
and Infrastructure projects) only by ZLCC
(AGM / DGM). However, HLCC (GM) /
HLCC (ED) and CAC can allow following
relaxations irrespective of rating.
Authority
ZLCC (AGM / DGM)
HLCC (GM)
HLCC (ED)
CAC

7.

8.
9.
10.

L/C: D/P
Minimum 10%
Minimum 5%
Minimum 5%
Up to NIL

L/C: D/A
Minimum 20%
Minimum 10%
Minimum 5%
Up to NIL

In case of L/C sanctioned as sub limit of

term loan, it will be ensured that the
requisite margin as stipulated for term loan
is maintained.
Minimum
ACR
(Primary
Security/
Aggregate Funded Limit) for loan should
not be less than 1:1 or prescribed by
RBI/GOI, if any.
Personal guarantee of the promoter
directors be obtained for closely held Public
Ltd. Company & Private Ltd. Company.
DSCR
Minimum 1.10
Average 1.30
Tenure of the Term Loan
Upto 7 years respective discretionary
authority
Above 7 years & upto 10 years HLCC
(GM) / ZLCC (GM)
Above 10 years HLCC (ED) and above

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

Complied

Complied, Guarantee of proprietor and all

the owners of properties (collaterals) have
been obtained.
N.A. (No Term Loan Proposed)
N.A. (No Term Loan Proposed)

26

11.

12.

13.

within their discretionary authority.

Project Margin
N.A. (No Term Loan Proposed)
In case of implementation of project in
phases as per implementation schedule,
the promoter would be required to bring the
entire
contribution/margin
upfront.
However, stipulation may be relaxed to
bring minimum 4050% of promoters
contribution/ margin upfront depending
upon the nature of the project, the cash
flows etc. The balance would be brought in
stages in accordance with the progress of
the project implementation/ disbursement,
so that requisite Debt Equity ratio as
projected/ stipulated is maintained all the
times. The above relaxation may be
permitted by HLCC GM & above only
subject to fulfillment of the following
conditions:
a)
The company/ firm having strong
financials to manage the equity funding.
b) Companies having regular net profits for
the last 3 years.
c) Where Bank falls in line with decision of
lead Bank under consortium/JLA.
d) The source of borrowers contribution is
established / ascertained and sanctioning
authority is satisfied with borrowers
capacity to bring in balance contribution/
margin in phases.
e) HLCC GM(HO) & above are allowed to
permit above relaxations. The field
functionaries are not entitled to allow above
relaxations.
Any further relaxation/deviation on
promoters contribution beyond what is
stated above would be permitted by
MCBOD.
TEV Report
N.A.
In case of Term Loans for projects having
exposure more than Rs.10 crore, the Bank
may ask for TEV report duly prepared by
our empanelled TEV Consultants. There
may be exceptions for obtention of TEV in
case of brown field projects where the
promoters have successfully implemented
at least two such projects in the past and
or in the similar line of activity for more
than 10 years.
Pricing of the Loan as per Risk Matrix

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

BR+2.00%, however, existing as well as

recommended
rate
of
interest
is
27

14.

Exposure Norms of the Bank

BR+0.75%.
Complied

C. Short Term Corporate Loan Policy: N.A.

D. Compliance to the Banks Take-over policy (Deviations/Non-Compliance, if any, to
be highlighted) : N.A. (Existing Account)
E. COMPLIANCE TO THE CRE POLICY (deviations/non-compliance, if any, to be
highlighted) : N.A.
ANNEXURE XI
(Risk Rating and comments thereon)
A. Internal Risk Rating under RAM/CRG Module
Based on Audited Balance Sheet as on: - 31.03.2014
Module adopted: - RAM (SME Manufacturing Model)
Previous Rating
Year
2013 (Audited)
Score
Rating
Single Scale Rating
Company Rating
6.57
SM4
Financial Risk
6.63
AB-3
Business Risk
6.50
AB-3
Management Risk
5.86
AB-3
Industry Risk
8.00
AB-2
Project Rating
Construction Risk
Funding Risk
Project Financial Risk
Management Risk - Project

Present Rating
2014 (Audited)
Score
Rating
7.07
7.31
6.50
6.83
8.00

SM3
AB-3
AB-3
AB-3
AB-2

N.A.

Comments: - Basedonauditedfinancialsasat31.03.13onRAMrating,thecreditriskratingofthe

account was SME4 (Score6.57), which improves to SM3 (Score7.07) on Audited Financials as at
31.03.2014,duetoimprovementinfinancialsofthefirm.

B. External Risk Rating: N.A.

C. Industrial Scenario
Thecountry's seedindustry isexpectedtogrowby53percenttoRs10,700croreby2015onincreased
demandforhighyieldingvarietiestoensurefoodsecurity,accordingtoindustrybodyAssocham.

Awareness about high-yielding varieties among farmers and public private partnership (PPP) with a
strong regulatory framework and collaborative research would be key measures to ensure smooth
growth of the seed industry. Presently,sizeofthedomesticseedindustryisaboutRs7,000crorewitha
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

28

production of 40 million quintals of various kinds of seeds. "Limited availability of agricultural land,
subsidiesbythegovernmenttousehighyieldingvarietiestoincreaseyieldsandotherfactorsaredriving
growthofIndianseedindustry.Also,thebetterqualityseedswithvitalitytoraisecropyieldsfromlimited
areaaretheneedofthehourtoensurethecountry'sfoodsecurity.
Thedomesticseedmarkethasbeengrowingatacompoundedannualgrowthrateofabout15percent.An
analysisofAssochamshowedthatthecountryhasthepotentialtoincreasetotalseedproductionto63million
quintalsby2015fromthecurrentlevelof40millionquintals.However,Seedcompaniesarerequiredto
convincefarmerstoabandonconventionalseedsinfavourofhighyieldinghybridseedsastheswitchcan
helpthefarmersgethighyields,fetchbetterpricesfortheirproduceandalmosttripletheirincome.The
analysisrevealedthatfarmersaregraduallysheddingtheirinhibitionsabouthybridsandshiftingtousethem,
stillmanyfarmersarestillreluctantbecausehybridsareexpensiveandcannotbereused.Theindustrybody
alsosaidthatPPPinitiative,developmentandadoptionofnewtechnologieswouldensurethesector'sgrowth.
Hybridshaveabout20percentshareinthetotalseedmarket,ofwhichcottonhasthebiggestsharefollowed
byrice(15percent),wheatandvegetables(over10percenteach).Whilethereareahandfulofstateseed
corporationsengagedinproduction,distributionandmarketingofhighvolumelowvaluepublicvarieties,
thereareabout350seedcompaniesinprivatesector.TheleadingcommercialseedsproducingstatesinIndia
includeAndhraPradesh,Bihar,Gujarat,Haryana,Karnataka,MadhyaPradesh,Maharashtra,Punjab,Tamil
Nadu,UttarPradeshandWestBengal.
Source: Internet,(BasedonanarticleofTheEconomicsTimesonIndia'sseedindustryasperanalysis/
informationofAssocham)

ANNEXURE XII
Exposure & Group Account Details:
A. EXPOSURE:
Exposure to the Firm
Exposure to the Group

Existing
400.00
0.00
400.00
840.00
0.00
840.00

Funded
Non-funded
Total
Funded
Non-funded
Total

(Rs. in Lac)
Proposed
550.00
0.00
550.00
990.00
0.00
990.00

B. Details of Group Concerns

(Rs. in Lac)
Name of the Firm

Bankers

Activity
Rice hulling
& trading of
food grains
Ganth
Business

1.

M/s Modern Rice

Industry

Allahabad Bank, Pilibhit

Branch

2.

Mr. Rakesh Kumar

Agarwal & Others

Allahabad Bank, Pilibhit

Branch

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

Asset
Classification
Standard

Our Limit
FB
NFB
275.00
0.00

Standard

165.00

0.00

Financials 2012-13
Sales
PAT
TNW
744.12
3.26
63.39
N.A.
(OD against property)

29

3.

M/s Modern Tarai Seeds

Pvt. Ltd.

State Bank of India,

Pilibhit Branch

Production
of quality
seeds of
wheat,
Paddy etc.
and
Grading

Standard

Total

250.00

0.00

690.00

0.00

623.82

0.95

Comments: - The account of M/s Modern Tarai Seeds Pvt. Ltd. has been taken over by
SBI, Pilibhit by offering lower rate of interest.
C. Present position of Group Accounts (financed by us):
i. A/c: - M/s Modern Rice Industries:- ( A/c no. 20498936305)
Facility
Cash Credit

Limit
275.00

O/s as on 20.08.14
137.94

(Rs. in Lac)
Remarks
Running Satisfactorily

ii. A/c: - Mr. Rakesh Kumar Agarwal & Others:- ( A/c no. 50022097142)
(Rs. in Lac)
Facility
OD Against Property

Limit
165.00

O/s as on 20.08.14
77.05

Remarks
Running Satisfactorily

ANNEXURE XIII
SWOT Analysis:
A. Strengths
Good financial standing.
Promoters long experience in the business.
B. Weaknesses
Firm is Proprietorship & mainly family run business (one man show)
Mitigation: - Proprietor has a long experience in the same business activity.
C. Opportunities
AsperarecentanalysisofAssocham,India'sseedindustrytogrowby53%by2015.
Market is well diversified and products are used on large scale.
D. Threats
Competitive market.
ANNEXURE XIV
DEPARTMENTS VIEWS, COMMENTS & RECOMMENDATIONS:
Inviewoftheforegoing,consideringthepastconductoftheaccount,longassociationofthegroupandalso
considering the improved financials, value of connection and recommendation of the branch, we may
ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

30

107.66

recommendtoFGMO,Lucknowtoreviewtheaccountalongwithsanctionofenhancedcreditfacilitiesas
soughtbythefirm,on the terms and conditions as appended below:

A.
1.
2.
3.
4.
5.

CASH CREDIT LIMIT

Limit
Rs.550.00 Lac (Enhanced from existing limit of Rs.400.00 Lacs)
Interest
BR+0.75% p.a.w.m.r.
Margin
25 %
Repayment
On demand
Processing Fees To be realized at normal rate in terms of HOIC no. 12412/DEV/2013-14/11
& Other charges
dated 27.04.2013.

Particulars

Date of
Valuation

Value in
(Rs. in Lac)

ExclusiveCharge
(Hypothecation)

30.06.2014

589.00

ExclusiveCharge
(Equitable
Mortgage)

22.05.2014

Rs.1097.31Lac
(Forcedsales
valueRs.932.71
Lacs)

ExclusiveCharge
(Equitable
Mortgage)

07.06.2011

Rs.53.23Lac
(Forcedsales
valueRs.45.24
Lacs)

ExclusiveCharge
(Equitable
Mortgage)

07.06.2011

Rs.12.09Lac
(Forcedsales
valueRs.10.28
Lacs)

Nature of
charge

PRIMARY
Exclusive hypothecation charge over entire stocks of
Rawmaterial,WIP&FinishedgoodsBookdebtsandall
currentassetsofthefirmbothpresent&future.

COLLATERAL
(i)Supplementalequitablemortgageoffactorylandand
building (Already mortgaged in the account of M/S
ModernRiceIndustriesforRs.275.00lacs),situatedat
Khasra no.10, Vill. Rooppur Kripa, Bilaspur Road,
Pilibhitmeasuring17770.00Sqm.standinginthename
of Sri Rakesh Kumar Agrawal and his brother Sri
Rajender Kumar Agrawal situated at Bisalpur Road,
Pilibhit.
(ii) Supplemental Equitable mortgage of residential
building situated at Khasra no. 905/5, Pakaria
Naugawan, Ballabh Nagar, Tanakpur Road, Pilibhit
measuring 252.00 Sqm.in the name of Smt. Madhu
AgrawalandSriSubodhAgrawal.
(iii) Supplemental Equitable mortgage of residential
buildingsituatedatSheikhChand,Pilibhit,measuring
228.00SqminthenameofSriPromodkum.r.

Personal Guarantee of the following:

Name of the Guarantor
Sri Prateek Kumar Agarwal S/o Sri Rakesh Kumar
Agarwal(Proprietor)
SriRajendraKumarAgarwalS/oSriShivKumar
Agrawal(Guarantor)
SriRakeshKumarAgarwalS/oSriShivKumarAgrawal
(Guarantor)
Smt.MadhuAgarwal W/OsriRakeshKumarAgrawal
(Guarantor)
SriSubodhAgarwalS/oSriRajendraKumarAgrawal
(Guarantor)
Sri Pramod Agarwal S/o Sri Rakesh Kumar Agrawal
(Guarantor)

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

Date of CR
30.06.2014
08.03.2014
08.03.2014
08.03.2014
08.03.2014
08.03.2014

NW in (Rs. In Lac)
Rs.424.01Lac
Rs.506.40Lac
Rs.611.37Lac
Rs.668.84Lac
Rs.535.87Lac
Rs.453.35Lac

31

Terms and Condition:

(a) Enhanced facilities shall be released only after completion of all documentation formalities
including mortgage and permission for disbursal of fund from competent authority subsequent to
submission of PDCPAR-01 & 02 along with satisfactory Legal Audit Report.
(b) Enforceability of mortgage, value and marketability of properties already mortgaged will be

ensured by the branch beforehand. It should also be ensured that the title deeds of the property
offered as security, are genuine & free from all encumbrances.
(c) Drawings in the account will be strictly permitted on the basis of drawing power available in the

account.
(d) No funds/assets should be transferred to the associated concerns without prior consent of the

bank. Similarly any change in management shall require prior approval from our bank.
(e) All fixed & current assets secured to the Bank shall be adequately and comprehensively insured

against all risk for the full value at the companys cost with banks Clause preferably from
insurance company, like Universal Sompo. Also the fixed assets charged to the Bank shall not be
leased / disposed off / without prior approval of Bank.
(f) All other Terms and conditions applicable to such type of loan circularized by Head Office from

time to time will be complied.

PlacedforkindapprovalofZ.L.C.C
(RituRajSingh)(PradeepKumar)
ManagerManager
Approvedasrecommended
(A.K.Gupta)(A.K.Pandey)(UKSaha)
Z.L.C.CMember&Z.L.C.CMember&Z.L.C.CMember&
C.M.(ZonalOffice)C.M.(ZonalOffice)C.M.(ZonalOffice)
(M.K.Sharma)
ChairmanofZ.L.C.C.AGM

ACCOUNT:

M/s OM GANGA KAVERI SEEDS, PILIBHIT

32