CREDIT APPRAISAL

By N.R.Trivedi
Dy. Manager Credit
Head Office, Saurashtra Gramin Bank

CREDIT APPRAISAL

Receipt of application from applicant

Receipt of documents (Balance sheet, KYC papers, Different govt. registration no., MOA, AOA,
and Properties documents)

Pre-sanction visit by bank officers (Due Diligence )

Check for RBI defaulters list, willful defaulters list, CIBIL data, ECGC caution list, etc.

Title clearance reports of the properties to be obtained from empanelled advocates

Valuation reports of the properties to be obtained from empanelled valuer/engineers

Preparation of financial data

Proposal preparation

Assessment of proposal

Sanction/approval of proposal by appropriate sanctioning authority

Documentations, agreements, mortgages

Disbursement of loan

Post sanction activities such as receiving stock statements, review of accounts, renew of
accounts, etc (On regular basis)

CREDIT APPRAISAL PROCESS

UNIT DETAILS (Name, Address, Group, Reg. Office, Mfg. office,

Partners/Directors/Proprietor/Designated Partners, Date of Incorporation)

Industry ( Ceramic, Agri processing,

Activity Manufacturing, Service activity

Segment Priority, Non-Priority

Banking Arrangement

Banking with us since

Brief Background (Company/ Group/ Promoters/ Management including

shareholding pattern)

Government Registration & Consent

Sr. No.

Description

Statutory Body

Status

Gujarat Sales Tax No.

Gujarat Govt.

Central Sales Tax No.

Gujarat Govt.

Income Tax Registration

Govt. of India, I.T. Department

24592202195
AAGCC4609L

Export Import Code

Govt. of India

2416903039

Central Excise No.

Govt. of India

AAGCC4609LEM001

NA of Land Permission

Jilla Panchayat

Received/Applied

Pollution Board Certificate

GPCB

Applied for

Power Connection

PGVCL

Applied for 3000 KVA

Firm/Industry Registration No.

District Industries Centre/Udhyog

Aadhar

933/SIA/IMO/2016

Company CIN/LLP
Identification/ Partnership
Registration

Ministry of Corporate Affairs/

Registrar of Firms

U26999GJ2016PTC091906

24092202195

PROFILE OF THE
PARTNERS/DIRECTORS/PROMOTERS:

Experience with same industry or different industries (No. of years in the

industry, Type of Industry, How that will be useful in proposed project )

Experience in what capacity ( As Director, Partners, Doing Job )

Whether Working partner or Sleeping Partner

Associate/Sister Concern Details, Financials, Credit Facility Availed, Whether

Standard

BASIC REQUIREMENTS FOR SETTING UP A

UNIT

Location & Site Preference ( Locational Advantages, Availibility of RM, Labour,

Transportation and other infra structural facilities

Power Connection ( How much required by the unit, whether obtained/applied, by

which month it will be obtained )

Water Availability

Labour

Raw Materials Availability ( What are the RM required for manufacturing a product,
Available From Local Market/From Abroad, Purchased in Bulk or as per requirement )

Manufacturing Process with all details ( What is the product to manufacture, What is
the technology used, Uses/Applicability of the product)

Selling Arrangements ( Existing network of dealers/distributors, set up of a net

network)

Financial Performance Details

For new units : Projected Financials for the period till term loan is fully
repaid

Installed Capacity and Capacity utilization ( % utilization, no. of months it

will work for in a year, capacity in KG/MT/No. etc., Selling price Assumed )

For Existing Units : Audited/ Actual / provisional financials for previous years
and projections for the coming years up to full repayment of term loan

For Existing Units Financials Indicators should be in Projection V/s Actual

Comparison Form ( Please provide details of what was projected in earlier
sanction and what has been achieved )

Particulars

Aud.

Aud.

Aud.
2015-16

Revi. Proj.
(Ear. Est.)
2016-17

Rev. Proj.
(Er. Est.)
2017-18

Rev. Proj.
(Erl. Est.)
2018-19

2013-14

2014-15

No. of Months

12

12

12

12

12

Net Sales

798.72

914.88

440.10

1560.70

4639.86

4946.78

(1973.11)

(2624.15)

(2804.58)

-1.00

-0.72

-7.52

19.83

360.67

432.24

(24.82)

(115.63)

(192.30)

OPM% (OP/NS %)

-0.13%

-0.08%

-1.71%

1.27%

7.77%

8.74%

(1.26%)

(4.41%)

(6.86%)

PBT

0.26

0.32

1.40

12.14

264.07

335.64

(24.82)

(115.63)

(192.30)

PBT/Net Sales %

0.03%

0.03%

0.32%

0.78%

5.69%

6.79%

(1.26%)

(4.41%)

(6.86%)

PAT

0.26

0.32

1.40

8.39

182.47

231.93

(17.38)

(80.94)

(134.61)

Cash Accruals

55.19

50.96

47.97

256.76

418.65

434.57

(237.96)

(269.32)

(295.52)

Capital

382.93

445.93

430.93

541.65

740.93

740.93

(645.93)

(645.93)

(645.93)

Unsecured Loans

119.77

104.86

141.75

259.16

259.16

259.16

(227.01)

(227.01)

(227.01)

TNW

383.19

446.51

513.04

718.56

908.72

1,148.34

(663.31)

(744.25)

(878.85)

TOL/TNW

1.37

1.16

0.89

2.68

1.98

1.43

(2.19)

(1.62)

(1.24)

Current Ratio

2.30

2.13

1.70

1.15

1.36

1.58

(1.48)

(1.58)

(1.81)

Operating Profit (OP) after Interest

Comment on Financials Parameters

Net Sales ( What is Projected, How they will achieve, If achieved lower
compared to estimates then reasons for lower level)

Net Profit

Current Ratio

TOL/TNW

Unsecured Loans

Net Working capital

Credit Risk Assessment (CRA)

Based on Projected Financials / Audited Financials

External Rating Details

Last CRA rating details

Cost of Project and Means of Finance

Cost of Project

Amt.

Factory Land

Factory Building

Margin

Loan Amt

Means of Finance

20.00

100.00
%

0.00 Capital

1800.00

680.00

100.00
%

0.00 Term Loan

2550.00

Machinery
2608.26

25.07%

1954.2
5 Unsecured Deposit

795.12

25.07%

595.75

100.00

100%

50.00

100%

Margin for Working Capital

321.62

100%

Margin for Bank Guarantee

80.00

100%

Imported
Domestic

Preliminery Exp.
Contingency

TOTAL

4655.00

2550.0
0 TOTAL

Debt: Equity Ratio

Promoters Contribution
Debt: Equity Ratio Considering unsecured deposits as quasi equity)

305.00

4655.00
1.59
38.67%
1.21

Internal Audit Queries

Report

Date

RFIA Report
Credit Audit Report*
RBI AFI U/S 35
Other Audit Reports
Qualifications if any in
Auditors Report
Stock & Receivables
Audit Report

S. No.

Observation

Comments

Nil
Nil
Nil
Nil
Nil

Warning Signal/Major
Irregularities/ Other
significant Observations
N.A.
N.A.
N.A.
Nil
Nil

Nil

Nil

N.A.

N.A.
N.A.
N.A.
N.A.
**

Compliance

Credit Appraisal

Project Implementation Schedule

Repayment Period, Moratorium Period

Loan Policy Compliance

Deviation/Concession proposed

Equitable Mortgage and CERSAI Details of all securities

CIBIL Reports Check ( Commercial, Partners, Directors, Guarantors, Associate

Concerns )