EXECUTIVE SUMMARY

Name of the Borrower: M/s. ABC Limited

1. EXECUTIVE SUMMARY

1) The company is dealing with bank since July 1984.

2) The Year of Establishment of the company is November 1975, having
registered office Premise no. 04, Plot no. AF-III, Action Area-1A, New
Town, Ramarhat, Kolkata 700XXX and various ABC mines all over India.
3) Risk Rating as per ABS 31.03.2017 is “’A2” having score of 73.27% and
External Risk Rating is AAA for LT & A1+ for ST faABCities.
4) The Activity of the company is mining & selling of ABC, ABC operates in
81 mining areas spread over 8 states in India. It has 462 mines which 270
are underground mines, 169 open cast mines and 23 mixed mines. It
further operates 17 ABC washeries.
5) Total Credit limits of Consortium is Rs.250.00 crores of FB limits and
5300 crore of NFB limits leaded by State Bank of India. FB limit is Rs.
15.00 crore and NFB limit is Rs. 10.00 crore.
6) Conduct of the Account is Satisfactory but utilization of FB limits is
negligible as the company is a cash rich company having surplus fund in its
account, all terms and conditions of the last sanction complied with.
7) Net Turn Over as on 31.03.2017 is Rs.83808.13 crore having TNW of
Rs.21725.66 crore. The company is having cash & bank balance of
Rs.31209.74 crore as on 31.03.2017.
8) ABC Ltd. has been awarded with ‘Maharatna Status’ by Govt. Of India.
9) CIR (Commercial) drawn and no adverse report found.
10) Proposal in brief.
The lead bank SBF has assessed Working Capital requirements at the
existing level of Rs.250 crore based on the projected consolidated figures
for the FY 2018-19 of the whole entity i.e. ABC Ltd. and its seven
subsidiaries. The limit has been assessed at the existing level only as the
company is cash-rich and availment is less than sanctioned working capital
Limits.
11) The company is A2 rating and we may allow concession to generate
some business from the company.

12) Key Financials:

( Rs in Cr)
31.03.2014 31.03.2015 31.03.2016 31.03.2017 31.03.18
Audited Audited Audited Audited Estimated
Net Sales 75386.16 78983.13 83560.98 83808.13 **
before Excise
Duty
 Excise Duty 4778.64 4863.06 5553.35 5587.52 **
Net Sales after 70607.52 74120.07 78007.63 78220.61 79474.51
excise Duty
Other Income 7171.88 6570.64 5940.58 5515.60 6496.96
Operating Profit 16270.66 15313.70 58722.36 68401.10 72223.56
before interest
Profit Before 22879.54 21583.92 21439.80 14433.71 12171.47
Tax
Profit After Tax 15111.63 13726.61 14274.29 9265.98 6336.17
Tangible Net 40432.72 38393.45 26472.26 21794.02 23764.93
Worth
Current Ratio 3.28 2.95 2.31 1.62 1.76
Debt Equity 0.08 0.10 0.11 0.10 0.10
Ratio
TOL/Adjusted 3.09 0.10 2.38 4.21 3.85
TNW
** Net Sales before Excise Duty consists of Gross sales less statutory levies
other than excise duty which is obtained from ABS. But for 2018, ABC India
CMA data & SBF assessment not do not quantify the amount of statutory levies
and excise duties and only Net sales after Excise duty is stated.
13) Primary Security:
i) For working capital limits: Hypothecation of entire Current assets,
present and Future, ranking pari passu with other consortium members.

ii) For Term Loan: N.A

14) XXXlateral Security : NIL

15) Lower pricing as per Lead bank sanction
15) ECGC Coverage: Not applicable
16) Usance Period ;180 days
17) Deviations from Policy : NIL
 1. Proposal Tracking No. / Date: 90002018006825 / 21/05/2018
2. CRR: XYZ A2, Score: 73.27, ABS: 31/03/2017, Under Large Corporate Rating Model,
Signifying Marginal Risk
3. External Rating: AAA as per CRISIL Rating
4. Activity: Mining & selling of ABC
5. Group: ABC India Group
6. Banking: Consortium
7. Lead Bank: State Bank of India
8. XYZ Share: Fund based 6% and Non Fund based 0.42%
9. Project Loan (if applicable)
Total Cost of Project: Rs.
Total Debt: Rs.
Our Share: Rs.

Sanctioning Authority: XXXXXX

1. Name of the Borrower: M/s. ABC India Limited
Branch Office: KOLKATA, BRBB ROAD
Circle Office: CO:KOLKATA
ZO: FGM KOLKATA
(Rs. in Crore)
Subject: To consider

A. Sanction of Working Capital Limits

Existing Proposed
FB 15.00 15.00
NFB 10.00 10.00
Total 25.00 25.00

B. (i) Fresh Term Loan

Purpose
Cost of Project
Total Debt
Promoters contribution
Proposed TL (our share)
DER
Repayment Period
Door to door tenor

Renewal of existing FB limit of Rs.15.00 Crore & NFB Limit of Rs.10.00 Crore

(ii) For Review of Term Loan (Limit Rs) 0 with present O/S Rs.0
C. Approval of ROI/ Service charges as under:-

Approval of ROI as under:

(Rs. inCrore)
Interest Interest
Proposed Applicable earned earned
FaABCity Existing ROI
ROI ROI during last during
year current year
MCLR+0.20%-
MCLR+0.55,i.e. MCLR+0.20%
Cash Credit 0.25% 0.00 0.00
8.90% i.e.8.50%
i.e.8.25%
Total 0.00 0.00

Approval of Service Charges as under:

(Rs. in Crore)
Service FaABCity Existing Proposed Applicable Income Income
Charges Charges Charges Charges earned earned
during current
last year
year upto
Processing FB+NFB Waived Waived 300/ lac Nil Nil
Fees
Upfront Fee NA NA NA NA
Lead Bank Fee NA NA NA NA
Commission LC 0.05% 0.05% pa CARD
on NFB BG pa Rate
CARD CARD
RAte Rate CARd rate
Term Loan NA NA NA Na
Review
Charges
Documentation NA NA NA Na
Charges
Other Charges NA NA NA NA
if any
Total

D. Approval of other Issues, if any :

I. Concessions on commission on ILC/FLC i.e @0.05% pa in line with

Lead Bank Sanction and as per HOCAC-III sanction dated 06.0.3.2017
(inclusive of opening &retirement of bill).
II. Continuation of 75% concession in outward remittance charges.
III. Continuation of waiver of commitment charges on cash credit working
capital limit.
 IV. Continuation of waiver of Insurance of securities, checking of securities
and stock Audit.
V. Continuation of Interchangeability between Fund based and Non-fund
based limit subject to overall ceiling of Rs.25.00 Cr.
VI. Continuation of Waivement of processing fees and Handling Charges.
VII. Confirmation of BO action in continuation of operations in the account
after the review period till date of renewal
Vii Relaxation in ROI by 0.25% to 8.25% in line with lead bank SBI approval

PART I

Whether fresh/ Renewal

renewal/
enhancement
Asset STANDARD
Classification as
on 30/04/2018 PMS Rank 1, PMS Score 0 as on 30/04/2018
and last PMS
score & rank
Credit Risk Ratin Reasons
Rating by Bank g Ratin Date of Scor Validity for
ABS
is XYZ A2 Perio g Rating e Date* Degradati
Signifying d on
Marginal Risk Presen XYZ 09/01/20
73.27
31/03/20 30/09/20
NA
t A2 18 17 18
Previou XYZ 09/01/20 31/03/20 30/09/20 NA
66.99
s A3 17 16 17
FaABCity Rating
Presen XYZ- 08/01/20 31/03/20 30/09/20 NA
FaABCity Rating 0.05
t LA2 18 17 18
by Bank is XYZ-
LA2 Signifying
Higher Safety * 12 months from the month of confirmation of rating or 18 months
from the date of balance sheet on the basis of which credit risk
rating was assigned, whichever is earlier.

Rating from Agency

Validity
Rating
Date of Sign of
Purpose
External Agency Date Rating Rating
Low
CRISIL 09/07/2018 AAA 10/07/2017 probability Bank Loan
of Default

Mapping of External Risk Rating with Internal Risk Rating:

Other Comments on External Risk Rating:

As per ABC India Limited will maintain its dominant market position
in the domestic ABC market and its strong capital structure and
 surplus liquidity,over the medium term.
Expected Credit Particulars Percentage Absolute (Proposed
Loss (as per (%) Exposure*Percentage)
internal credit Expected Credit 0.04 Rs.0.006 Crore
risk rating) and Loss
Standard Provisioning as
Provisioning per IRAC Norms
Whether NONPR - NON-PRIORITY SECTOR
priority/non
priority sector as
per PS&LB
guidelines:
Sub-Sector: 80020 - large industries
Whether OTHERS
Agriculture/Retail
/ SME/Others
A. Whether No
Sensitive
Sector Real
Estate/Capita
l Market

B. Applicable
Risk Weight
Consortium/Multi Consortium
ple Banking
Lead Bank State Bank of India
XYZs Share % Fund based 6% and Non Fund based 0.42%
Date of 21/04/2018
Application:
Date of Receipt 03/05/2018
of Proposal
(BO):
Date of Receipt
of Proposal
(CO):
Date of Receipt
of Proposal (ZO):
Date of Receipt
of Proposal
(HO):
Date of 27/04/2018
Acknowledgeme
nt given
to the party:
Date of
Clarifications
Received (CO):
Date of
Clarifications
Received (ZO):
Date of
Clarifications
Received (HO):
Date of 21/05/2018
Submission of
Proposal
Date of Original July 1984
Sanction on:
Date of Last 15-05-2017 CO Kolkata
Sanction:
Authority/In
Principle
Consent/NBG
clearance with
date:
Remarks:
Customer ID No ADL003644
Activity code (as 8205
per ladder)

2. Borrowers Profile

a. Group Name ABC India Group

Address of Regd./Corporate Office (with e-mail ID):

Address Of Address PIN Code Phone Fax E mail

ABC
Bhawan,
Premise
b. No. 04,
MAR, Plot
CORPORATE
No. AF-III, 700156 23244175 23244129 m.mundhra@XYZ.co.in
OFFICE
Action
Area – 1A
New
Town,
Rajarhat
Name & Tel. / Mob. No. of the CFO / Contact Person (with e-mail ID):

c. Contact Person
Designation Phone Fax E mail
Name
Shri Chandan
Director Finance 03323444104 23244129
Kumar Dey
 Works / Factory I / Factory II:
d.
Address Of Address PIN Code Phone Fax E mail
NA NA NA NA NA NA
e. Constitution and constitution code as per CBS 008 - PUB.LTD COMPANIES
& ladder
f. Date of incorporation/Establishment 03/11/1975
g. Dealing with XYZ since 1984
h. Industry/Sector Mining
i. Business Activity (Product) / Installed Capacity Mining & selling of ABC
j. Corporate Identity No. (CIN) L23109WB1973GOI028844
k. Permanent Account No. (PAN) AABCC3929J

3. Directors (S/Shri)

Address/Mobile
No./e-mail address
Name And of Main Whether DIN
PAN No.
Designation Directors/Guarantor Promoter/Professional/Nominee No.
Directors/Key
persons
NA NA NA NA NA

a)If any of them, in the 1. Directors (S/Shri)- No one is under Caution List
list of Caution Advices Address/Mob DIN PA
circulated by the Bank ile No./e-mail Whether No. N
from time to Name & Designation address of Promoter/ No.
time/RBI's/Willful Main Profession
defaulters' list/Caution Directors/ al/
List of ECGC. If yes, Guarantor Nominee
action taken Directors/Ke
y persons
List Attached Appointed on
18.05.2018
by Govt of
India, ROC
still not
updated as
on
Shri AK Jha CMD 21.05.2018
Director- 074084
Shri SN Prasad Marketing 31
Director- 032045
Shri CK Dey Finance 05
Director- 073676
Shri Binay Dayal Technical 25
 Shri Ram Prakash Director- 080364
Srivastava Personnel 68
& Industrial
Relations
Nominee Directors
077530
Ms. Reena Sinha Puri Jt Secretary 40
Shri Rajesh Kumar Jt. 053513
Sinha Secretary, 83
MOC
Independent
Directors

Shri Vinod Jain 000035

72
Loreta Maryann Vas 025446
27
Satish Balram 033905
Agnihotri 53
Kanindra Pathak 073487
80
Durga Charan 073555
Panigrahi 91
Vinod Kumar Thakral 004029
59
b) If any one of them No
connected in the past
with any NPA/OTS/
Compromise/unscrupu
lous defaulters
c) If any of them, No
related to
Directors/Senior
Officers of XYZ:
d) Management Nominee Directors &Independent Directors are changed
Change since last periodically by Govt of India
sanction, if any
e) i) Confirmation that NA
CRs have been
compiled/reviewed in
terms of extant
guidelines (presently
L&A Circular No. 33
dated 31.03.2011) and
comments on adverse
features, if any
ii) Confirmation that
CIRs have been Date of Name of Adverse Feature, if
drawn from CICs data CIR CIC any observed
base 27.04.2018 CIBIL Nil
(CIBIL/Equifax/Experi Commercial
an/ High Mark) and
comments on adverse
features, if any: CIBIL report of
the company
drawn and no
adverse
remark
observed.
The Directors
and GOI
appointed and
are not
guarantors, so
CIBIL not
extracted
iii) In case of Joint N.A , Govt of India undertaking Company
Lending/multiple
banking/consortium
lending arrangement:
1) Confirmation
that Due
Diligence
Report from a
professional
(i.e. Company
Secretary/
Chartered
Accountant/Cos
t Accountant)
from banks
approved
CA/CS on
prescribed
format (L&A
Circular No. 31
dated
28.04.2012)
have been
obtained.
i. If qualified,
 whether
rectified?
j. Adverse
features, if any,
are discussed
in the proposal
(copy to be
enclosed with
the proposal)

Yes during consortium meetings

(i) Confirmation Details of other lenders:
that Sharing of SBI, BOB, BOI, UBI, Union Bank, Canara Bank, Allahabad
Information on Bank, HDFC, ABN Amro, Std Chtd., Citi Bank, BNP Paribas
prescribed
format [L&A
Circular
No.31/2012 &
99/2012
(compulsory)]
have been
obtained from
all lenders and
adverse
features, if any,
are discussed*
in the proposal
(copy to be
enclosed with
the proposal)

iv) Views/comments NIL

for the adverse report
about the
borrower/guarantor, if
any, in the public
domain/media:
v) Confirmation that Yes
report on prospective
borrower/guarantor
has been checked in
FRMIS database of
XYZ to check their
antecedents, so as to
pre-empt fraud
recurrence by the
same person/entity
(FRMD Circular No.31
dated 01.09.2015).
vi) Confirmation that To be done by CO
borrower information
has been verified from
Central Fraud Registry
(CFR) , adverse
feature observed, if
any to be discussed

f) Share Holding Pattern as on 31/03/2017:

Name of the
Promoters / Amount in
Shareholder Name No of Shares % Holding
Major Share Crores.
Holders
FIs/ Mutual
FI 1125446273 1125.44 18.13
Funds/UTI/Banks/FIIs
NRIs/OCBs NRIs/OCBs 186991575 186.99 3.01
Promoters Govt of India-
4894971329 4894.97 78.86
Holding Ministry of ABC
Total 6207.40 100.00

NA

g) Whether Shares pledged to any

Bank/FI/others
If yes, Percentage of shares pledged
Institution
Purpose