1

ZONAL OFFICE CREDIT CELL – ZONAL OFFICE – VISAKHAPATNAMNOTE-CUM-MEMORANDUM FOR THE ZOCC

Agenda No. Meeting Date :

Zone : Region II - Vishakapatanam Branch : Governorpet, Vijayawada.

Segment : MSME (Services) Industry : Others (Dealer in Volkswagen cars)

Dealing with us since : Group - March 2010

To Sanction:i) Cash Credit(Hyp) Limit of Rs. 250.00 lacs for its Volkswagen showroom/work shop

at Rajahmundry for a period of one year.ii) Term Loan of Rs. 700.00 lacs for completion of semi finished show room/ work

shop premises at Nellore at a project cost of Rs. 1103.75 lacs repayable in 83 variable monthly instalments, w.e.f. November 2012. Total tenor is 83 months.

iii) Bank Guarantee Limit of Rs. 500.00 lacs for lifting of stocks from the car company to the Nellore unit.

To approve : i) Dilution of security for M/s. ATR Warehousing Co. P. Ltd., as the same security is

extended to the current exposure of M/s. ATR Cars P Ltd.ii) Waiver of TEV study iii) The marks scored by the company (23.37) in the Financial parameters of CRA rating

as against the minimum prescribed marks of 25 (within 25% deviation - ZOCC is the deviation approving authority)

iv) 10% cash margin on the Bank Guarantee as against minimum stipulated 25%

To Note:i) The deviations in take over norms approved by G M (RNW SZ III) in respect of a) non achieving 3 years continuous profits and b) CRA rating of SB 9 as against minimum stipulated SB 6 ii) The following credit rating assigned to the Company based on the Audited

Balance Sheet for 2011-12:-

Borrower Rating SB-9Facility Rating Cash Credit(Hyp) Term Loan Bank Guarantee

FR-2FR-2FR-2

Account : M/s. ATR Cars Private Limited (Private Limited Company)

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Section A1Present Proposal:

CIRCLE/SBU: BRANCH: GOVERNORPETa) Borrower’s Profile:Name: ATR CARS PRIVATE LIMITED (Nellore)Segment: MSME (Services) Constitution : PRIVATE LIMITED COMPANYLocation: NelloreNew unit/Existing unit: New Unit Existing Connection: YesIf yes: Banking with us since: 2010

Date of last Renewal/Review (*) NewIf Reviewed valid upto: NAIRAC Status of 1.Advances: : Standard

2.Investments: NA( * ) In case of review – date up to which reviewed to be mentioned

b) Proposal: For sanction/ approval/ confirmation:i) Sanction:

a) Cash Credit(Hyp) Limit of Rs. 250.00 lacs for its Volkswagen showroom/work shop at Nellore for a period of one year.

b) Term Loan of Rs. 700.00 lacs for completion of semi finished show room/ work shop premises at Nellore at a project cost of Rs. 1103.75 lacs repayable in 83 variable monthly instalments, w.e.f. November 2012. Total tenor is 83 months.

c) Bank Guarantee Limit of Rs. 500.00 lacs for purchase of stock from the car company to the Nellore unit.

ii) Approval:a) Dilution of security for M/s. ATR Warehousing Co. P. Ltd., as the same security is

extended to the current exposure of M/s. ATR Cars P Ltd.

b) Waiver of TEV study.c) The marks scored by the company (23.37) in the Financial parameters of CRA rating

as against the minimum prescribed marks of 25 (within 25% deviation - ZOCC is the deviation approving authority).

d) 10% cash margin on the Bank Guarantee as against minimum stipulated 25%.iii) To Note:

a) a) The deviations in take over norms approved by G M (RNW SZ III) in respect of a) non achieving 3 years continuous profits and b) CRA rating of SB 9 as against minimum stipulated SB 6 b) The following credit rating assigned to the Company based on the Audited Balance Sheet for 2011-12:-

Borrower Rating SB-9

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Facility Rating Cash Credit(Hyp) Term Loan Bank Guarantee

FR-2FR-2FR-2

b)This proposal falls within the powers of

ZOCC (V) as:

i) FB/NFB/Total indebtedness is Rs 1450.00 Lakhs (Corp)ii) Involves policy level deviations:

a) non achieving 3 years continuous profits and b) CRA rating of SB 9 as against minimum stipulated SB 6 c) The marks scored by the company (23.37) in the Financial parameters of CRA rating as against the minimum prescribed marks of 25

iii) is a director in Bank

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c i) Credit Limits (Existing and Proposed):

LimitsExisting Proposed Change

SBH % Total Cons/ MBA/ Syndi-cation

SBH % Total Cons/ MBA/ Syndi-cation

SBH Total Cons/ MBA/ Syndi-cation

CC/WCDl/BD - - - 250.00 100 - - Sole Banking

EPC/FBD - - - - - - - -Total FBWC - - - - - - - -TLs/ECBs/FCL - - - 700.00 100 - - -Adhoc, if any - - - - - - - -Total FB (a) 950.00 100 - - -NFBWC LC - - - - - - - -NFBWC BG - - - 500.00 100 - - -Total NFBWC (b) - - - - - - - -Derivative/FC/CEL ( c)

- - - - - - - -

Projected related LC

- - - - - - - -

Projected related BG

- - - - - - - -

Project NFB (d) - - - - - - - -Total NFB (b)+(c)+(d)+(e)+f

- - - 500.00 100 - - -

Total indebtedness (a)+(f)=g

- - - - - - - -

Investments (h) - - - - - - - -Leasing (i) - - - - - - - -Total Exposure (g)+(h)+(i)

- - - 1450.00 100 - - -

c ii) Credit Limits (company & Group):Exposure Company Group

Existing Proposed Existing ProposedFund Based - 950.00 NA NANon Fund Based - 500.00 - -Total Indebtedness - - - -Investments - - - -Leasing - - - -Total Exposure - - - -Bank’s Share++(%) - 100% - -Bank’s Share in TL++(%) - 100% - -

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d Banking Arrangement and Sharing Pattern:Financial Arrangement: Sole Banking

FB NFB Total % ShareTL WCSBH 800.00Associate Banks 400.00 1000.00SB Group 1200.00 1000.00Other Banks (Total)

4663.26 1200.00

Top five banks in terms of their exposure

- -

Bank A IndusInd 2538.00 -Bank B S B H 354.00 1000.00.... AXIS 1200.00 APSFC

1183.00

Indian Overseas Bank

853.00

Total 5863.26 2200.00

c) Sharing Pattern Group company : M/s. ATR Warehousing P Ltd. : The Company is presently enjoying the following WC/Term Loans from several Banks mostly for the construction of Warehouses in various parts of the A.P. The brief details of the Term Loans enjoyed by the company are as under:- (Rs. in lacs)Name of the Bank Term

LoanLimit

Outstanding as per ABS as on 31.03.2011

Purpose

Indian Overseas Bank 110.00 10.45 Rent Discounting120.45--do-- 350.00 22.99 --do----do-- 463.15 322.41 --do----do-- 900.00 497.23 --do--Indusind Bank 3175.00 2537.67 --do--State Bank of India 500.00 313.85 Construction Equipment Loan

(for purchase of Dumpers)--do-- 300.00 192.59 --do--APSFC 1200.00 1182.30 Term LoanAxis Bank 1200.00 1117.73 Overdraft Shriram Transport Finance Co Ltd.

172.48 Vehicle Loans

SBH 400.00 353.001000.00

Rent Plus LoanWC CC

Total 7722.70

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Section A2

PERFORMANCE DETAILSa) Performance and financial indicators: (Rs. in lakhs)

Last two years actual

Curr year

Next year

Q/HY results as on

Year 2011 2012 2013 2014Audited Prov. Est. Proj LastYr Cur Yr

Gross Sales (Value) 337.54 2765.11 5580.51 6562.69 Net sales 337.54 2656.99 Net Sales (Value) 337.54 2765.11 5580.51 6562.69 (Exports) - -(Exports) - - - - PATRaw Materials 648.59 2653.99 5129.09 6087.39Power and Fuel - - - -Direct LabourAdd: Op. Fin. goods - 320.69 796.98 785.43Less: Cl. Fin. goods 320.69 349.28 785.43 828.98Selling, General & Admn Costs)

19.02 78.46 266.81 237.34

Interest 22.14 33.62 140.85 122.76Operating Profit after interest

-31.52 9.92 40.16 140.93 b. Industry Exposure as on 31.03.2013

OPM% (OP/NS%) (9.34%) (0.33%) 0.72% 2.15% FBL 950.00PBT -31.52 9.92 42.80 143.83 NFBL 500.00PBT/Net Sales% (9.34%) (0.37%) 0.76% 2.19% Total 1450.00PAT -31.52 9.92 28.25 94.94Cash Accruals -23.52 27.63 132.83 183.86 Exposure of the

company as per prudential exposure norms

--

PBDIT -1.38 61.25 288.23 355.52 To Industry exposure

Interest Coverage Ratio*

- - - - To total advances (domestic)

PUC 125.00 125.00 403.75 403.75TNW 93.48 364.41 392.66 487.61Adj. TNW 93.48 364.41 392.66 487.61TOL/TNW 5.12 4.36 3.77 2.78TOL/ Adj. TNW 5.12 4.36 3.77 2.78Current Ratio 1.33 1.32 1.08 1.15NWC - - - -DSCR - 1.08 1.12 1.27ROE% - - - -@figures in brackets denote estimates at the time of last renewal *Interest Coverage Ratio: Calculation method EBITDA/Interest

b) Comments on Performance & Financial Indicators – (Comments only on adverse movements in the above):

i) Net Sales: The Company has achieved a sales of Rs. 2765.11 lacs during 2011-12 and estimated Rs. 5580.51 lacs during 2012-13 and projected Rs. 6562.69 lacs during 2013-14. The company (Nellore unit) has achieved sales turnover of Rs. 3449.07 lacs up to 30.09.2012 as against the estimated 5580.51 lacs for the FY 2012-13

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ii) Profitability (PBT/NS): The company has shown a marginal profit in the first year of operations at Nellore Branch. The company has estimated gross revenues of Rs. 5580.51 lacs during the year 2012-13 and projected Rs. 6562.69 lacs for the year 2013-14.

iii) TNW: (Past three years)

2010 2011 2012

Opening TNW (excluding SAM$) 93.48 364.41

Share Application Money (SAM) $

Add PAT -31.52 -7.82

Add. (a) Increase in equity - 278.75

(b) Increase in share premium

Add./Subtract change in intangible assets

Adjust prior year expenses

Deduct Dividend Payment

Add/Subtract: DTL/DTA

Closing TNW

Investments in Associates/ Subsidiaries (A&S)

Long Term Loans to A&S

Adjusted TNW 61.96 635.34

$SAM be converted to equity by next Balance Sheet dateComments:iv) TOL/TNW: The Gearing Ratio of the Company has been estimated to improve from 4.36 as

on 31.03.2012 to 3.77 as on 31.03.2013. With the increase in TNW during 2012-13, the Gearing Ratio of the Company has been estimated to improve to 3.77 and projected at 2.78 for FY 2013 & 2014, respectively, which is within bench mark level of 5:1 for non-manufacturing units. Hence, it is acceptable.

vi) Current Ratio & NWC: The Current Ratio of the Company has marginally decreased from 1.33 as on 31.03.2012 to 1.32 as on 31.03.2013 and further projected to derease to 1.08 as on 31.03.2014. The Current Ratio of the Company for the FY 2012 is below the bench mark level of 1.20:1 in case of non-manufacturing units. Due to the lower Current Assets as on 31.03.2012, its first year of operations only (2 ½ months ) the current Ratio of the Company was lower at 1.33 as per ABS as on 31.03.2012. However, the Current Ratio is estimated to improve in the next few years. We request the ZOCC (V) to note the deviations in TOL/TNW and Current Ratio.

c) Movement of long term funds:FUNDS FLOW Actuals Actuals Actuals Estimated Projected

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(PY-3) (PY-2) (PY-1) (Current Yr) (Next Yr)2010 2011 2012 2013 2014

Long Term Sources a) Retained Profit after Tax - -31.52 -7.82 28.25 94.94 b) Equity Funds - 125.00 278.75 - - c) Loans - 120.10 582.98 - - d) Others (Depreciation) - 8.00 22.08 104.58 88.92 e) Others - 24.28 - - -Long Term Uses a) CAPEX - 86.22 711.03 212.72 - b)Others - 50.00 - -Long term Surplus / Deficit - 109.64 164.96 (204.75) 59.00Comments: The movement of Long Term funds is satisfactory.d) Synopsis of Balance Sheet:

LIABILITIES Prev year Last year 2011 2012

CURRENT LIABILITIESShort Term Bank Finance (A) - 250.00Other Current Liabilities (Total of i, ii, iii & iv ) ( B) 334.87 611.91 i. Sundry Creditors 310.32 290.58 ii.Advance Payments received - - iii. TL inst. Repayable in 12 months ( incl FCCB) - - iv. Others 24.55 107.73TOTAL CURRENT LIABILITIES (A+B) (C) 334.87 648.31 v. Term Loans - SBH (> 12 months) 120.10 112.77 vi. Term Loans – Others (> 12 months) 24.28 202.30 vii. Debentures,Redeemable Pref. Shares (< 12 years), FCCB etc - - viii. Unsecured Loans - - ix. Other Term Liabilities - -TOTAL TERM LIABILITIES ( Total of v to ix ) (D) 144.38 315.07TOTAL OUTSIDE LIABILITIES ( TOL = C+D) (E) 479.25 963.38 x. PUC 125.00 125.00 xi. Reserves & Surplus (Other than revaluation reserves) -31.52 8.81 xii Share Application Money - - xiii. DTL - -Net Worth ( NW ) Total of x, xi, xii and xiii (F) 93.48 133.81TOTAL LIABILITIES (E + F ) (G) 572.73 1097.19

ASSETS Prev year Last year 2011 2012

CURRENT ASSETS a) Cash & Bank Balances -3.82 60.32 b) LC/BG Margins & liquid investments - - c) Receivables( < 6 Months) - - d) Investments (Other than long term) - - e) Total inventory 320.69 349.28 f) i) Other current Assets- Dues from Associates /Subsidiaries - - ii) Other Current Assets- Others 127.65 103.51

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TOTAL CURRENT ASSETS (A) 444.51 513.11FIXED ASSETS Gross Block 86.22 599.85 Less Cum Depreciation 8.00 17.71Net Block (excluding revaluation reserves) (B) 78.22 582.14Investment in Associates, Subsidiaries, sister concerns etc - -Other investments 50.00 -Receivables > 6 months - -Others - -Non Current Assets (C) 50.00 -Total Tangible Assets A+B+C = (D) 572.73 1095.25DTA - -Other Intangible Assets - 1.94Intangible Assets, including DTA (E) - -Total Assets (D+E) 572.73 1097.19e) Comments on adverse movements only in the above : (Not to exceed 5-6 lines)

i)Comments on any change in capital structure.

ii)Comments on Short Term borrowings, if not commensurate with increase in value of inventory & receivables.

iii)Movement of Unsecured Loans (quasi equity)

iv)Change in investments in Group companies / others

v)Comments on Sundry Debtors beyond 6 months - present position

vi)Loans and advances to group companies.viii)Others, if any

f) ACTIVITY-WISE CASH FLOW ANALYSIS:

(Brief observations on whether operating activities are the principal revenue producing activities of the enterprise; extent of cash flow from investing activities and financing activities may be given) [Refer CPPD Circular No. CPP/CIR/CSK/30 dt. 07.07.2011 on Credit Assessment: Cash Flow Statement (CFS)]

CASH FLOW Actuals(PY-2)

Actuals(2011-12)

Estimated(2012-13)

Remarks

a. Net cash from Operations - 27.63 598.79b. Net cash from Investments - (513.63) (410.10)c. Net cash from financing - 351.66 (207.37)d.Net increase in cash/ cash equivalent - (134.34) (18.70)

g) Consolidated Data* :(NOT APPLICABLE as ATR Cars Pvt. Ltd is not a Listed Company. This data is applicable for *listed companies. * mark implies applicable to listed companies only)i) Key Financial Indicators:

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Previous Year (2011) Last year (2012)Net Sales 337.57 3361.40PBT -31.52 -7.82PAT -31.52 -7.82Cash Accruals -23.52 14.26PUC 125.00 403.75TNW 93.48 364.41TOL/TNW 5.12 4.36TOL/Adj TNW 5.12 4.36

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ii) Consolidated Cash Flow:(NOT APPLICABLE as ATR Cars Pvt. Ltd is not a Listed Company)Consolidated Cash Flow (Activity wise) Prev Year Last Year

a. Net cash from Operationsb. Net cash from Investmentsc. Net cash from financingd. Net increase in cash/ cash equivalent

h) Inter-firm Comparison: (NOT APPLICABLE)i) Finance related:

S.No.

Name of Co. FB Lts$ NFB Lts$

Year Sales CR Cash Cycle

Net Profit

PBT/ Net Sales

TOL/TNW

ii) Market related: (NOT APPLICABLE)S.No.

Name of Co. PE Market Cap Share Price* (@) EPS of Last YearH L C

(* for listed companies)@ 52 weeks’ High Low; face value to be mentioned, if not Rs 10.

Comments:

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2) M/s. ATR CARS P LTD – CONSOLIDATED DATA

a) Performance and financial indicators: Last two years actuals Current

yearNext year Q/HY results as on

Audited 31.03.2011

Audited31.03.2012

Estimates31.03.2013

Projections31.03.2014

Last Year

Current Year

Gross Sales(value) 5418.80 12808.89 21918.41 25361.93 Net SalesExports

Net Sales (value) 5418.80 12808.89 21918.41 25361.93 PAT(Export)Net Sales (Quantity) S b. Industry Exposure

as on (Exports) FBLRaw Materials 6310.09 12122.35 21990.67 24112.24 NFBLPower and Fuel TotalDirect labour 48.23 142.02 151.39 165.20SG & A costs Exposure of the

company as per prudential exposure norms

%

Interest 187.05 456.57 450.83 387.73 To Industry exposure

Operating Profit(OP) after interest

- 110.77 - 239.78 361.83 651.34 To total advances (domestic)

OPM% (OP/NS%) -2.01 - 1.87 1.63 2.53PBT - 91.36 - 42.18 388.73 681.38PBT / Net Sales% -1.65 -0.33 1.75 2.65PAT - 97.53 - 48.51 256.60 449.78Cash Accruals - 13.88 61.14 505.60 665.65PBDIT 179.34 524.04 1088.56 1284.98Interest Coverage Ratio *

0.96 1.15 2.41 3.31

PUC 410.05 410.05 13.89.82 1389.82TNW 214.42 394.19 1428.06 1882.39Adj. TNW 214.42 394.19 1428.06 1882.39TOL/TNW 15.02 13.91 3.29 2.24TOL / Adj.TNW 15.02 13.91 3.29 2.24Current Ratio 1.07 1.32 1.07 1.11NWC 175.64 1052.64 202.35 346.77DSCR 2.48 1.26ROE% - 34.58 - 15.39 28.02 27.06b) Comments on Performance & Financial Indicators -(Comments only on adverse movements in the above):

i) Net Sales : 2011 is the first full year of operations for the company. The Company has achieved a sales of Rs. 5418.80 lacs during 2010-11 and Rs. 12808.89 lacs during 2011-12

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and estimated Rs. 21918.41 lacs during 2012-13. The company as a whole achieved a sales turnover of Rs. 8454.00 lacs up to 30.09.2012 as against estimated sales turnover of Rs. 21918.41 lacs for the FY 2012-13.

ii)Profitability (PBT / NS): The company has incurred losses during the initial years 2010, 2011 and 2012 due to depreciation provision and interest on loan. The company has posted Gross revenues/cash accruals of Rs.61.14 lacs during the year 2011-12 and estimated Rs. 505.60 lacs for the year 2012-13.

iii)TNW: (Past three years) 2010 2011 2012

Opening TNW ( excluding SAM $ ) 1.00 -105.72 214.42Share Application Money $ 409.05 200.00Add PAT - 90.30 - 97.53 - 48.51Add. (a) Increase in equity 409.05 (b) Increase in share premium 7.98 6.17 6.33Add./Subtract change in intangible assets

-24.40 2.45 21.95

Adjust prior year expenses Deduct Dividend Payment Add / Subtract : DTL / DTA Closing TNW 303.33 214.42 394.19Investments in Associates/ Subsidiaries(A & S) Long Term Loans to A & S Adjusted TNW 303.33 214.42 394.19

$ SAM be converted to equity by next Balance sheet date.

Comments:

iv). TOL / TNW: The Gearing Ratio of the Company has been estimated to improve from 13.91 as on 31.03.2012 to 3.29 as on 31.03.2013. The Rajahmundry unit has commenced operations from mid January 2012. With increased capacity of operations, and the increase in TNW during 2012-13, the Gearing Ratio of the Company has been estimated to improve to 2.24 during FY 2014, which is within bench mark level of 5:1 for non-manufacturing units. Hence, it is acceptable.

vi CURRENT RATIO & NWC: The Current Ratio of the Company has marginally deteriorated from 1.32 as on 31.03.2012 to 1.07 as on 31.03.2013 and further deteriorated to 1.11 as on 31.03.2014. The Current Ratio of the Company for the FY 2013 & FY 2014 are below the bench mark level of 1.20:1 in case of non-manufacturing units. However, with better management of current assets, the Current Ratio is estimated to improve in the next few years.

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c) MOVEMENT OF LONG TERM FUNDS:

FUNDS FLOW Estimated Projected Projected

2013 2014 2015Long Term Sources a) Cash Accruals

1556.44 670.20 721.72

b) Equity Funds 979..77c) Loans d) Others 576.67 670.20 721.72Long Term Uses 2406.73 525.78 502.31a) CAPEX 1724.60b)Others 682.13 525.78 502.31Long term Surplus / Deficit

- 850.29 144.42 219.41

Comments: d) Synopsis of Balance Sheet:

LIABILITIES Previous year2011

Last year2012

CURRENT LIABILITIES Short Term Bank Finance (A) 382.64 921.78Other Current Liabilities ( B) ( Total of i, ii, iii & iv ) 1998.60 2404.98i. Sundry Creditors 1837.77 2206.58ii.Advance Payments received 0.00 0.00iii. TL inst. Repayable in 12 months ( incl FCCB) 0.00 0.00iv. Others 160.83 198.40TOTAL CURRENT LIABILITIES (C) (A+B) 2381.24 3326.76v. Term Loans -SB (> 12 months) 0.00 0.00vi. Term Loans – Others (> 12 months) 839.98 2157.38vii. Debentures, Redeemable Pref. Shares (< 12 years), FCCB etc 0.00 0.00viii. Unsecured Loans 0.00 0.00ix. Other Term Liabilities 0.00 0.00TOTAL TERM LIABILITIES (D) ( Total of v to ix ) 839.98 2157.38TOTAL OUTSIDE LIABILITIES (E) ( TOL = C+D) 3221.22 5484.14x. PUC 410.05 410.05xi. Reserves & Surplus ( Other than revaluation reserves ) -173.68 -215.86xii Share Application Money 0.00 200.00xiii. DTL Net Worth ( NW ) (F) Total of x, xi, xii and xiii 236.37 394.19TOTAL LIABILITIES (G) (E + F ) 3457.59 5878.33

ASSETS SSETS Previous year Last yearCURRENT ASSETS a) Cash & Bank Balances 240.45 593.62

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b) LC/BG Margins & liquid investments 0.00 0.00c) Receivables( < 6 Months) 637.70 1855.54d) Investments (Other than long term) 0.00 0.00e) Total inventory 1397.39 1513.84f) Other current assets 281.34 416.40

TOTAL CURRENT ASSETS (A) 2556.88 4379.40FIXED ASSETS Gross Block 984.15 1636.92Less Cum Depreciation 105.39 215.04Net Block (excluding revaluation reserves) 878.76 1421.88(B) 0.00 0.00Investment in Associates, Subsidiaries, sister 0.00concerns etc 0.00 0.00Other investments 0.00 77.05Receivables > 6 months Others Non Current Assets (C) 0.00 77.05Total Tangible Assets A+B+C = (D) 3435.64 5878.33DTA Other Intangible Assets 21.95 0.00Intangible Assets, including DTA (E) Total Assets (D+E) 3457.59 5878.33

e) Comments on adverse movements only in the above : (Not to exceed 5-6 lines)

i) Comments on any change in capital structure. ii) Comments on Short Term borrowings, if not

commensurate with increase in value of inventory & receivables.

iii) Movement of Unsecured Loans (quasi equity) iv) Change in investments in Group

companies / others v) Comments on Sundry Debtors beyond 6

months -present position vi) Loans and advances to group companies. viii) Others, if any

f) ACTIVITY-WISE CASH FLOW ANALYSIS: - Not applicable -(Brief observations on whether operating activities are the principal revenue producing activities of the enterprise; extent of cash flow from investing activities and financing activities may be given)

CASH FLOW Actuals (PY-2)

Actuals (PY-1)

Estimated (Current Yr)

Remarks

a. Net cash from Operations b. Net cash from Investments c. Net cash from financing d. Net increase in cash/ cash equivalent g) Consolidated Data*

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i) Key Financial Indicators

Current Year 2012

Next year 2013

Net Sales 12808.89 21918.41PBT -42.18 388.73PAT -48.51 256.60Cash Accruals 61.14 505.60PUC 410.05 1389.82TNW 394.19 1428.06TOL/TNW 13.91 3.29TOL/Adj TNW 13.91 3.29

* For borrowers with annual turnover of Rs 500 crores and above, consolidated data for past two years to be provided in full, on the lines of item 2A-a), d) and f), instead of g).

ii) Consolidated Cash Flow - Not applicable

Consolidated Cash Flow (Activity wise) Previous Year Last Yeara. Net cash from Operations b. Net cash from Investments c. Net cash from financing d. Net increase in cash/ cash equivalent

h) Inter-firm Comparison: - Not available -i) Finance related:

S. No. Name of Co.

FB Lts$

NFB Lts$

Year Sales CR Cash Cycle

Net Profit

PBT/Net Sales

TOL/ TNW

($ wherever available either from our own data or external source) ii) Market related: S. No. Name of Co. PE Market

Cap Share Price* (@) EPS of Last

Year H L C

(* for listed companies) @ 52 weeks’ High Low; face value to be mentioned, if not Rs 10. Comments:

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RISK ASSESMENT SECTION A3

a) Credit Rating Current Previous

CRA based on balance Sheet as on 31.03.2012Validated on

Borrower rating Facility ratingCurrent Previous Facilities Current Previous

CRA -Rating S B 9 N A C C FR 2 - N A - Overall Score 54 T L FR 2 -Financial Score/ 23.37 B G FR 2 -Minimum Score 25.00

Marks scored by the company in borrower rating/ facility rating mentioned below:

Borrower rating Facility ratingParameter Minimum

ScoreMarks Scored by the Co.

Facility Rating Marks Scored by the Co.

Financial Risk 25/65 23.37/65 CC FR-2 90/100Business & Industry Risk

12/20 18/20 TL FR-2 90/100

Management Risk 8/15 12.95/15 BG FR-2 90/100

Total 45/100 54.32/100 90/100

The Credit rating summary is placed as Annexure-8.

Comments on change(s) in CRA Rating / Model

The credit rating of the Company has been carried out based on the Audited Balance Sheet for 2011-12 and the company has been assigned CRA rating of SB 9 and Facility Rating of FR 2 (Cash Credit (Hyp), Term Loan, & Bank Guarantee)

The company has scored 23.37 marks under Financial Risk as against the minimum score prescribed 25 due to adverse gearing ratio, net profit and other financial parameters. As the difference is within 25% of the minimum prescribed marks ZOCC (V) is the competent authority to approve the deviation. We request ZOCC (V) to approve the deviation.

b) External Rating : Branch will be advised to get the unit rated by External rating agency

Rating Agency : Rating Obtained: (Previous Rating)

Date and Amount of Rating :

Rating valid upto:

Rating Rationale in brief:

c) RMD ADVISORIES: i) RMD Guidance Note ii) Qualitative approach

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iii) Quantitative approach iv) Comments

d) i) Conduct of Account: N A – New connection

(to comment briefly on irregularities in the accounts in the past 12 months – no. of times irregular & time taken for adjustment of peak irregularity. Details in Annexure-6)

ii) Utilization of limits: N A – New connectionUtilisation of limits: CommentsFB Limits Average utilisation

%NFB Average utilisation

%Review of Cash Credit Account for previous year:

Rs in crores Comments(i)Total debit summations (ii)Total credit summations % of (ii) to total sales.

Comments (if the utilization is less than 60%)

e) Review of Term Loans (Term Loans with all Banks/FIs to be mentioned): N A – New connectionName of the FI/Bank

Limit DP Outstandings as on --------

Irregularity, if any *

DSCR FACR

Date of restructures, if any.

Sanction Actuals

* Comment on reasons for over dues : i) No of instalments due: ii) No of instalments paid: iii) No of Installments in arrears: iv) Amount of interest in arrears: v) Comment on the company’s action plan for regularizing the account.vi) Cross Defaults: If any, please specify:

f) Security Coverage :

(Pl. Furnish summary position here; Full details to be furnished in Section- C)Security Coverage – SB: including

residual value Amount (%)

excluding residual value Amount (%)

including residual value Amount (%)

excluding residual value Amount (%)

Term Loan Working Capital Comment on infirmities in security creation, if any

19

g) Warning signals and unattended major irregularities - N A - New connection

Report Date Warning Signal /Major irregularities/ Other significant observations

Comments

RFIA Report Credit Audit Reports RBI AFI u/s 35 Other Audit ReportsQualification if any, in Auditors report Stock & Receivablesaudit report

h) Earlier terms of Sanction -Compliance status : N A – New connection

S.N o. Conditions/observations Covenant details/ time frame

Compliance status

a) FINANCIAL COVENANTS A.1 Equity infusionA.2 Conversion of Share Appln money/

Unsecured loans into equity @A.3 Dividend outflow/ Sale of

InvestmentsA.4 TOL/TNW (Times)*A .5 TOL/ Adj TNW (Times)*A.6 Current Ratio*A.7 PBDIT/ Interest (Times)*b) OTHERS [Observations / Conditions/ including Post Sanction modifications (if any)] 1 2 * Comments only when the negative variance is more than 20%.

Penal action stipulated in last sanction: N A - New connection

Stipulation Status of compliance

Penal action recommended, if any: i) Statutory dues/other contingent liabilities:

Dues Amount quantified in ABS

Impact on financial position (as % of TNW)

Negative score in CRA, if any

Statutory dues Contingent liabilities Comments, in brief, if the impact is significant

j) Risks and mitigating factors :

20

Critical risks perceived Mitigating factorsCRA related

1. Financial Risks The Company is estimated to have lower profitability from the operations. The Promoters submitted that the profit margins are thin in the vehicle dealer business. Further, the dealers are expected to offer discounts in line with the market scenario in order to achieve the higher business goals. Due to the above, the profitability of the unit was estimated at lower level which is in line with the prevailing market situation. (Risk perception – Low)

2. Business and Industry Risks The Company is the authorized dealer of Volkswagen Cars in Visakhapatnam Vijayawada, Nellore and Rajahmundry. Volkswagen Cars are having good image and command good market value for high networth individuals. The company is hopeful of getting good business in future too.

However, due to the severe competition in car segment, established brands like Maruti, TATA, Hundai, Toyota and emerging brands like Nissan, Renault etc., may pose tough challenges to the continuous sales of the Volkswagen products.

(Risk perception – Medium)3. Hurdle Rates

Group related

4. Group gearing, where applicable5. Adverse features in Group Concerns/ Associate entities, interlocking of funds, if any

Sustaina bility concerns

6. Environmental Clearances& Sustainability measures7. Other pending approvals, if any

Country risk

21

Section A4

PRICING

a) Income Analysis: (Rs. in Lakhs)SBH

From Estimates ( last year) Actuals (last year)Estimates (curr year)2012 2013 2014

WC Int. - 27.50 27.50TL Int. - 43.76 113.35LC - - -BG - 8.75 8.75Bill - - -Forex - - -Others - - -TOTAL - 80.01 149.60

Interest & Other Charges as per latest Balance Sheet dated 31.03.2012.

SBH ShareAmount Percentage

InterestOther Charges* If share not pro -rata then reasons for the same

Estimated (Prev Year) Actual (Prev Year) Estimated (Curr year)Return on Capital Charged

- - -

Comments -

b) Other Banks’/FIs’ Pricing: --NA--Name of the Bank Existing Proposed

Term Loan - - -Working Capital - - -

c) Proposed Pricing:ITEM Base

RateExisting Rate Card rate Proposed rate

Spread Effective Rate

Spread Effective Rate

Spread Effective Rate

Int. on WC 10.25% 4.50 14.75 4.50 14.75%Int. on TL 10.25% 5.00 15.25 5.00 15.25%( As per MSME 2012-13/20 dated 12.10.2012)

22

d) Other concessions already extended / proposed: Other incomeITEM Existing Rate Card rate Proposed rate Extent of

concession (%)Processing fee - N A - Rs. 400 per lac Rs. 400 per lac NilCommit Nilcharges NilUpfront fee - N A - 1.25% 1.25% NilLC NilBG - N A - NilJustification with cost benefit analysis : No concessions proposed

23

Section A5

LOAN POLICY: DEVIATIONS AND COMPLIANCE:

a) Whether names of promoters, directors, company, group concerns figure in defaulter/willful defaulters list:

Willful defaulters’ list dated: 31.12.2011 NoRBI defaulters’ list dated: 30.09.2011 Yes/NoName of the director Default in connection with

(Name of the company)Remarks

Name of the director Default in connection with (Name of the company)

Remarks

ECGC Caution List dated:CIC – Credit HistoryCICs - Suit filed list Banned list of Promoters (SEBI) (CIC: Credit Information Companies)

b) Deviations in Loan Policy: Parameters Indicative Min/Max

level as per Loan policy

Company's level as on

Justifications

31.11.2012a) Prudential norms - Borrower Rs. 15.00 crores Rs. 14.50 croresb) Prudential norms - Group Rs. 50.00 crores Rs. 23.00 croresc) FB exposure to the industryd) Substantial exposure: Borrower 7.50% of Banks capital fund Rs. 14.50 crorese) Substantial exposure : Group 15.00% of Banks capital fund Rs. 23.00 croresf) Term Loan -Tenor 10 years 83 monthsg) CRA Minimum Score 45 54h) Hurdle rate SB 10 SB 9i) TOL/TNW 5.00 : 1.00 4.29j) Liquidity 1.20 : 1 1.32k) Debt / equity 2:1 1.93l) Promoters contribution 30% of equity 43.22 %m) Average gross DSCR (TL) 1.75 1.53n) Non compliance of norms for strategic schemes: viz. Corporate Loans, TIFS, CRE and ,others p) Others

Justification:

24

c) Other deviations Parameters Deviations Justification Compliancea. Deviations in Takeover norms

i) The advance to be taken over should be rated SB 6 (old rating SBH-3) or above – whereas the company’s CRA rating as per ABS 2012 is SB 9.

ii) The company should have earned 3 years continuous profits – 3 years losses

In view of i) the existing connection / conduct of the accounts ii) value of the security iii) to get a share in the groups car business iv) The Directors of ATR group are from business family with good track record v) the company is showing positive signs of profit building,(cash accruals of Rs. 51.95 lacs in 2012 and projected a net profit of Rs. 262.49 lacs for FY 2013) requested the GM (RNW SZ III) to approve the deviation.

Complied

Approved by G M (RNW SZ III) on 17.10.2012.

iv) The company shall score minimum scores prescribed under various risk segments – 23.37 / 25 in Financial Risk

This is a deviation. ZOCC (V) is the competent authority to approve deviation. We recommend for ZOCC (V) to approve the de viation.

Complied with

Parameters Deviations Justification Complianceb. Scheme specific deviations, if any

- - Complied with

Approved by G M (RNW SZ III) on 17.10.2012.

c. Advances to Bank's Directors and parties related to Directors*

- - Not applicable

d. Advances to Officers and the Relatives of Senior Officers of SB/other Banks*

- - Not applicable

e. Advances to Directors of other Bank(s) and parties related to other Bank’s Directors*

- - Complied with

[* Refer latest RBI master Circular on Statutory and other Restrictions]

d) Deviations, if any, in respect of compliance with Prudential exposure limits as per RBI norms:

Proposed Exposure Exposure cap as per Prudential norms as on:

Substantial exposure

Bank’s exposure to 14.50 crores

25

borrower Bank’s exposure togroup

23.00 crores

SB group’s exposure to the borrower / group

d.ii) Unsecured exposure, if any: Nil

Agg. Outstanding Unsecured Advances

Agg. Outstanding Unsecured Guarantees

Total Outstanding Advances

Policy Norms prescribed

Position presently available

Comments:

d.iii) Position regarding status of Statutory / In-Principle approval from SB, if required.

26

Section A6

SYNOPTIC APPRAISAL MEMORANDUM FOR TERM LOAN:

a) Whether names of promoters, directors, company, group concerns figure in defaulter/willful defaulters list:

Circle: VIJAYAWADABranch: Governorpet BranchCompany: M/s. ATR CARS PRIVATE LIMITED (Nellore)

Term Loan/DPG:a) Proposal: Sanction of Term Loan of Rs. 700.00 Lakhs,

Cash Credit Limits of Rs. 250.00 Lakhs & Bank Guarantee of Rs. 500.00 Lakhs.

b) Project/Purpose:i) Description: Construction of Volkswagen showroom in Nellore. Detailed Project report is annexed.

ii) Key Project Parameters:Project Cost Rs. 1103.00 LakhsDebt/ Equity Ratio 1.73Promoters’ Contribution 36.54%Our share in total debt 63.46%Tenor of the loan (moratorium to be specified)

83 variable monthly instalments w .e. f . Nov 2012 – interest as and when debited.

Average Tenor 83 MonthsGross Avg. DSCR 1.53Min. Security MarginDetails of sponsor, having major stake I the SPV:a) Name M/s. ATR Warehousing P Ltdb) Credit Enhancement Mechanism (Available/ not available) – (Details to be furnished, if available)

(Details to be furnished here if available)

c) Appraised by: In house of the company.

d) Details of TEV Study (if proposed for waiver, justifications to be given):

The Company has requested for waiver of TEV study by approved consultant as it has already established successfully show rooms at other places Vizag, Vijawada and Nellore with its in house appraisal. The activity also will not require much technical expertise and the unit is also employing technical people to look after the business activities. As the request of the Company is genuine, we recommend to ZOCC (V) for according approval for waiver of the TEV study for the project.

27

e) Cost of Project, Means of Finance and Key Project Parameters: (Rs. in lakhs)Cost Means of FinanceLand - A. Equity: Promote

r (a)Others (b)

Total (c=a+b)

Building & Site Development

533.75 i) Equity Shares 403.75 - 403.75

P & M 300.00 ii) Pref. Shares - - -Other assets 140.00 iii) Internal Accruals* - -Prel. and Pre-op. expenses

- A. Total equity contribution (i+ii+iii)

403.75 - 403.75

Deposits 55.00 B. DebtDeposit for BG Margin

50.00 i) Secured Loan (Term Loan)

700.00

WC Margin 25.00ii) ECB - iii) Debentures - iv)Unsecured loans -v) Others, if any -B. Total Debt (i+ii+iii+iv+v) 700.00

Total 1103.75Total (A+B) 1103.75Debt Equity (B/A) 1.73[@ IDC – interest during construction, as a component of preliminary & pre- operative expenses]

Promoter’s contribution: 36.54%a) Sources of Promoter’s funds to be specified, e.g details of assets, investments to

be liquidated; in case of Investments from Associates - their Cash Accruals to be examined over the project implementation period with reference to past performance, current trends, debt servicing requirements/ CAPEX, cash flow comfort and other requirements

b) Internal accruals: Details relating to availability/ adequacy of surplus to be commented upon )

e) Remarks on Cost of project & Means of finance* (in brief):* to include analysis of Group equity plans for the projects, projected cash flows & leverage

1.Cost of the Project : The cost of the project consists of the cost of construction/completion of the Workshop premises. The amount of Rs.1103.75 lacs pertains to the site Development, Building Construction, cost of machinery, furniture, fixtures and completion of automobile sheds etc.

2.Means of Finance : The promoters’ contribution in the project is Rs.403.75 lacs out of total cost of the project 1103.75 lacs works out to 36.54%. 3.Project implementation Schedule : As mentioned above, the Company has already commenced its operations. It also started the construction of their own building.

4)Production factors : The Company is presently doing its operations in the partly

28

completed showroom at Nellore, with minimum infrastructure for the sale/servicing works of the Volkswagen vehicles.

5) Marketing : Not Applicable as the Company is engaged in the dealership of the passenger Cars of Volkswagen Motors which is having good brand value and the Principal is taking care of the promotional activities of the vehicles.

f) Overall viability and acceptability of the proposal :

  2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19                 A) SERVICE                Net Profit as per P& L A/c (31.52) (7.82) 28.25 94.94 128.62 173.04 224.54 280.32 Add:                Depreciation 8.00 22.08 104.58 88.92 76.40 66.20 57.77 22.38 Interest on Term Loan 0.01 43.76 113.35 95.26 76.85 58.43 40.01 4.22                  Total - A (23.51) 58.02 246.18 279.13 281.86 297.68 322.32 306.92                  B) DEBT                Repayment of Term Loan - 10.01 106.91 124.86 124.86 124.86 124.86 124.86 Repayment of Interest on Term Loan 0.01 43.76 113.35 95.26 76.85 58.43 40.01 4.22                  Total - B 0.01 53.77 220.26 220.12 201.71 183.29 164.87 129.08                  C) DSCR - RATIO - (A/B) - 1.08 1.12 1.27 1.40 1.62 1.95 2.38

D) Average DSCR 

1.53  

7) Comments on DSCR: The Average Gross DSCR of the Firm works out to 1.53 which is acceptable as the same is above our minimum norm of 1.75:1. The DSCR is lowest in the year 2012-13 at 1.08:1 which does not comply with our norm of a minimum of 1.25:1 throughout the repayment period. However, DSCR in the later years has picked up and therefore, the Average Gross DSCR is considered as satisfactory reflecting adequate cash surplus available to the unit for the repayment of Term Loan throughout the repayment period.

It is observed that the DSCR is higher only during the latter period of the loan tenor; thus reducing the repayment period may put a strain on repayment capacity of the unit in the first few years. In view of the above, we recommend to ZOCC to accept the Term Loan tenor of 83.

8) Security Margin :

(Rs. in Lacs)

2011-12 2012-13 2013-14 2014-152015-16

2016-17

2017-18

2018-19

2019-20

WDV of fixed assets 767.17 875.31 786.39 709.99 643.79 586.02 535.30 490.54 450.85Aggregate TL/DPG

703.08 578.22 453.36 328.5 203.64 78.78 74.55 - -

29

outstandingSecurity margin available

64.09 297.09 333.03 381.49 440.15 507.24 460.74 490.54 450.85

% of margin. 8.35% 33.94% 42.35% 53.73%

68.37%

86.56%

86.07%

100.00%

100.00%

Comments on Security Margin : The Security Margin is lowest at 8.35% in the year 2011-12 and is considered as satisfactory.

9) Break-even and sensitivity analysis and whether acceptable : Not carried out as the Company is not a manufacturing unit and is engaged in the sale and servicing of the Volkswagen Vehicles.

10) CRA & Proposed pricing: The credit rating of the unit is carried out and the unit was assigned a risk rating of SB-9 based on the audited financials as on 31.03.2012, the first full year of operations. The rate of interest corresponding to the rating is 14.75% p.a.(floating - @ 4.50% above SBH Base Rate) on the term loan.

11)Repayment Schedule: The proposed Term Loan will be payable in 83 monthly variable installments as under. The first installment of the Term Loan falls due on 30.11.2012 and last instalment 30.11.2012. Interest on the Term Loan is payable as and when debited.

The variable repayment schedule of the Term Loan is as under:-

Period No. of instalments

Amount of Monthly installment

Total amount

June 2012 to March 2013 9 Rs. 8,98,000/- Rs. 89,75,000Apr 2013 to March 2014 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2014 to March 2015 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2015 to March 2016 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2016 to March 2017 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2017 to March 2018 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2018 to October 2019 7 Rs. 8,98,000/- Rs. 62,82,000Apr 2019 to Aug 2019 1 Rs. 8,92,000/- Rs. 8,92,000

12) Pricing by other major Banks / FI and justification of the proposed pricing:

13) Compliance of the project with environmental / social / statutory requirements:Complied with.

14) Environment and Sustainability implications: Nil

g) Overall viability and acceptability of the proposal :

Keeping in view the Company’s business prospects, promoter’s profile and the satisfactory projected financials, we recommend for sanction of Term Loan of Rs.700.00 lacs to the Company for completion of showroom workshop premises at Rajahmundry for undertaking its authorised sales / servicing works as dealer of Volkswagen Vehicles.

30

Section A7

a) Justification for the proposal: (Only bullet points): (Other than those covered in Section A4, A5, A6, B-1 and B-2)

a) Working Capital : ( Rs. in lakhs)Sl No

Particulars Last Sanction Curryear Proj for following year Estimated Actual

1 Net sales 2764.06 5580.512 Inventory/NetSales +

Receivables/ Gross Sales (days)

- -

3 Net Sales to Total tangible Assets

2.52 2.30

4 ABF/ TCA - -5 S Cr/ TCA 0.57 0.316 OCL/ TCA 1.26 0.627 NWC/ TCA (0.26) 0.388 FB WC 250.00 250.009 NFB WC - -Brief Comments:

b) Other sanctions :i)Cash Credit(Hyp) Limit of Rs. 250.00 lacs for its Nellore unit for a period of one year.

The branch/company has requested for sanction of WC limits of Rs. 250.00 lacs to run the company’s Nellore showroom/workshop. Based on the ABF assessment, the Fund Based working capital requirement of the Company is estimated at Rs.250.00 lacs for the year ended 31.03.2013. Details of appraisal of working capital is described at Section B 2 of the proposal. As per the request of the branch and Company, we recommend to ZOCC (V) for sanction of the Fund Based Working Capital Limits (CC-Hyp) of Rs.250.00 lacs for a period of one year.

ii) Term Loan of Rs. 700.00 lacs for completion of semi finished show room at Rajahmundry

The company has requested for sanction of Rs. 700.00 lacs for completion of workshop at Nellore. Details of appraisal of Term Loan is described at Section B 1 of the proposal.Keeping in view the Company’s business prospects, promoter’s profile and the satisfactory projected financials, we recommend for sanction of Term Loan of Rs.700.00 lacs to the Company for completion of showroom workshop premises at Rajahmundry for undertaking its authorised sales / servicing works as dealer of Volkswagen Vehicles.

iii) The Company has requested for Bank Guarantee Limit of Rs. 500.00 lacs to be issued in favour of M/s. Volkswagen for lifting of stocks from the car company to the Nellore unit.

31

i) Dilution of security for M/s. ATR Warehousing Co. P Ltd., as the same security is extended to the current exposure of M/s. ATR Cars P Ltd.

The promoter company of M/s. ATR Cars P Ltd., M/s. ATR Warehousing P Ltd., was sanctioned the following credit facilities by ZOCC (V) on 02.09.2010 and renewed the same on 04.07.2012:

(Rs. in lacs)Facility Limits DP O/s as on

19.10.2012

Irregularity

Cash Credit (Hyp) 1000.00 1000.00

1011.36 11.36

Term Loan 400.00 353.44 326.59 --

The collateral security is as under :

b. Collateral : Extension of Equitable Mortgage of the property as under :

Existing Proposed Details of Security* Facility Total Value

4974.45 4974.45

E M of Industrial land adm. Ac.4.876 cents in Survey no. 62/1 and 65/1 in Mindi village, Gajuwaka, Visakha-patnam district of A.P. and the super structures thereon valued at Rs. 4974.45 lacs valued by Sri Lt. col. B.K.Sahoo, panel valuer, vide report dated 23.08.2010.

Steel City Properties 416.00(1820.00)

Steel City Properties 416.00(1820.00)

4558.45

4558.45

ATR Warehousing P Ltd. ATR Warehousing P Ltd.Rent Plus 400.00

Rent Plus 400.00

CC 1000.00

CC 1000.00

3158.45

3158.45

ATR Cars P LtdCC 250.00TL 250.00BG “ 400.00

Security coverage % 325.60

350.93

Total exposure 1816.00

2716.00

Overall Security coverage % 273.92 183.15

The ZOCC (V) is requested to note the dilution in overall collateral security coverage from the existing 273.92% to 183.15 %.

32

ii) Waiver of TEV study

The Company has requested for waiver of TEV study by approved consultant as it has already established successfully show rooms at other places Vizag, Vijawada and Nellore with its in house appraisal/expertise. As the request of the Company is genuine, we recommend to ZOCC for waiver of the TEV study by an approved consultant for the proposed project at Rajahmundry.

iii) The marks scored by the company (23.37) in the Financial parameters of CRA rating as against the minimum prescribed marks of 25 (within 25% deviation - ZOCC is the deviation approving authority)

The credit rating of the Company has been carried out based on the Audited Balance Sheet for 2011-12 and has been assigned CRA rating of SB 9 and Facility Rating of FR 2 (Cash Credit(Hyp), Term Loan, & Bank Guarantee)

The company has scored 23.37 marks under Financial Risk as against the minimum score prescribed 25 due to non-securing of marks in certain financial parameters like gearing ratio, etc . As the difference is within 25% of the minimum prescribed marks ZOCC (V) can take a view on the position. We request ZOCC (V) to approve the same.

iv) 10% cash margin on the Bank Guarantee as against minimum stipulated 25%

At present, the company is availing the Bank Guarantee of Rs. 400.00 lacs at Indian Bank Gajuwaka branch, Vizag at 10% cash margin. The company has requested for continuation of the same. We request ZOCC (V) to approve 10% cash margin on the Bank Guarantee as against minimum stipulated 25%.

d) Noting

i) The deviations in take over norms approved by G M (RNW SZ III) in respect of a) non achieving 3 years continuous profits and b) CRA rating of SB 9 as against minimum stipulated SB 6

The company could not meet 2 of the Take over norms viz., a) non achieving 3 years continuous profits and b) CRA rating of SB 9 as against minimum stipulated SB 6. Taking in to account the genuine reasons putforth by the company, and the existing connection, and on the request of the branch we have recommended to the GM (RNW SZ III), the competent authority to approve this deviation which was approved on 17.10.2012. Hence, we request the ZOCC (V) to note the position.

ii) The credit rating SB 9 assigned to the Company based on the Audited Balance Sheet for 2011-12

The credit rating of the Company has been carried out based on the Audited Balance Sheet for 2011-12 and has been assigned CRA rating of SB 9 and Facility Rating of FR 2 (Cash Credit(Hyp), Term Loan, & Bank Guarantee). We request the ZOCC (V) to note the CRA rating assigned to the company.

a) Justification for the proposal: (Only bullet points) (Other than those covered in section A4,A5,A6, B-1 and B-2)

33

The proposal is considered as a fair banking proposition in view of the following:

The Directors of M/s. ATR Cars are from business family with good track records. The company is promoted by reputed M/s. ATR Warehousing P Ltd

We have no exposure in the cars division of the company/group and with this our exposure will be of 21.31% in MBA

The company has established show rooms where no other dealers of Volkswagen have show rooms

Though the company has incurred losses during the initial years of operation, the company has projected profits from FY 2013.

The firm’s stake in the project at Rs.403.75 lacs (37.54%) out of the total project cost of Rs. 700.00 lacs is considered satisfactory.

The projected financials of the project with DSCR at 1.53 will generate good cash surplus towards repayment of instalments and interest

The company has made a turnover of Rs 12482.41 lacs for the FY 2012 and projected a turnover of Rs. 20696.06 lacs for FY 2013

Keeping in view the profile of the promoters, company’s standing and the business potential, and the request of the branch, we recommend to the ZOCC for the following:-

b) Recommended for sanction / approval / confirmation. To Sanction:

i) Cash Credit(Hyp) Limit of Rs. 250.00 lacs for its Nellore unit for a period of one year.

ii) Term Loan of Rs. 700.00 lacs for completion of semi finished show room at Nellore.

iii) Bank Guarantee Limit of Rs. 500.00 lacs for lifting of stocks from the car company to the Nellore unit

To approve : i) Dilution of security for M/s. ATR Warehousing Co. P Ltd., as the same security

is extended to the current exposure of M/s. ATR Cars P Ltd.ii) Waiver of TEV study iii) The marks scored by the company (23.37) in the Financial parameters of CRA

rating as against the minimum prescribed marks of 25 (within 25% deviation - ZOCC is the deviation approving authority)

iv) 10% cash margin on the Bank Guarantee as against minimum stipulated 25% To Note:

i) The deviations in take over norms approved by G M (RNW SZ III) in respect of

a) non achieving 3 years continuous profits and b) CRA rating of SB 9 as against minimum stipulated SB 6 ii) The following credit rating assigned to the Company based on the Audited

Balance Sheet for 2011-12:-

Borrower Rating SB-9Facility Rating Cash Credit(Hyp) Term Loan Bank Guarantee

FR-2FR-2FR-2

b) Recommended for sanction / approval / confirmation:Appraised by Assessed by Additional

34

Assessment by

Signature

NameDesignation Credit Analyst Team Leader Deputy General

ManagerPlace: HyderbadDate: 01.12.2011

35

ZONAL OFFICE CREDIT CELL CHIEF MANAGERZONAL OFFICE -VISAKHAPATNAM (ZOCC)Date : 18.10.2012

ZONAL OFFICE CREDIT COMMITTEE

“Sanctioned/Approved/Confirmed/Noted” Meeting Date :

Observations:

1) The branch shall obtain latest stock statement duly certified by the Chartered Accountant before release of the loan. Subsequently, the same shall be obtained, at every quarter end, branch/division wise and company as a whole.

2) The insurance shall be done through SBI General Insurance Co. Ltd.3) The branch shall get SBI Life Insurance business from the

company/Directors/Employees

Deputy General Manager (Chairman):

Assistant General Manager (Member):

Assistant General Manager (Member):

36

SECTION A8

PROFILE OF THE BORROWER

CIF No, Addresses & Locations of the company :

CIF No(s) - N A - ATR Cars P Ltd. – Corporate Identity Number - U50300AP2009PTC063215 PAN – AAHCA6327J

Registered Office (Full Address) 11-8-34, Daspalla Hills, Visakhapatnam – 530 003

Administrative Office (Full Address) - Do -

Factories/ Production Centres (Full Addresses)

1. Vijayawadae2.. Nellore3. Visakhapatnam4. Rajahmundry

Names & Addresses of the Promoters / Directors : S.No. Name Designation Identifiers Full Address

DIN PAN Passport Others1 A T

RAYUDUM D AALPA9219L 11-8-34

Daspalla Hills Vizag 03

2 A AMMAJI

DIRECTOR ABHPA0658E

3 A AVNASH

DIRECTOR AAMPA1094J

4 5 [* Identifiers based on KYC guidelines]

Details of Share-holding pattern of Promoter Directors :

S.No. Name of the Promoter / Director

No. of Shares held

Value of Shares held

% of share holding

1 A T Rayudu 5000 0.122 Ammaji Anumolu 5000 0.123 Corporate – ATR

Warehousing P Ltd4090500 99.75%

4

ii) Shareholding Pattern as on ………………….

Description % of Holding Promoters 0.25Pvt. Corporate Bodies 99.75Indian Public NRI/OCB Mutual Funds

37

Banks / Financial Institutions Foreign Institutional Investors Others Total 100 100

iii. Comment on change in shareholding pattern, if any, subsequent to previous sanction:

Credit History (with our Bank): (Last 5 years for all segments) i. Year Date of

SanctionExisting Sanctioned Net Sales

(only for the relevant period)

CRA

FB NFB FB NFBWC TL WC TL

( All credit sanctions including ad-hoc sanctions to be captured)

ii. Particulars Notional Loss CommentsLoss/Notional loss/ Haircut suffered by the Bank on account of Write off/Compromise settlements/ References to CDR in respect of previous exposures on Companies floated by Related parties Groups, Associates and Directors (Please quantify). Specific comments on ‘Right to recompense’ clauses needs to be commented upon

N A N A

Brief Background of the company / Group & Management (To include competence / reputation/ corporate governance etc;):

Group:

M/s. ATR Warehousing P Ltd : Founded by Mr. A.T Rayudu in 1972, the group has been in a continuous evolution and expansion. The group is managed by the founder along with his son, Mr. Avnash Anumolu. The ATR group is into industrial warehousing for Oil, Gas, and Consumer Goods and is assorted with land pieces at strategic locations Suited for Logistics across Southern India. The group has structured itself into different companies due to Control of land possessions under Urban Land Ceiling Act. ATR warehousing is the flagship Company of the group and controls all other Group companies through direct or indirect holdings. The group adopted the strategy of buying distressed companies which had land assets at strategic locations. Established in 1993 with ice cold storage space for Fisheries in Vizag (Costal Andhra Pradesh). To cater to the urgent need for Cold storage warehousing, the Company opened six ice factories and three cold storage Warehouses within a span of 9 months. The Company owned land in Vizag and at the behest of Cairns Energy, built its first industrial

38

warehouse for storing Cairn’s pipes which are used in offshore rigs. Later, the Company moved into Kakinada which was fast developing into a major oil & Natural Gas Exploration centre on the east coast. It signed contracts with Reliance Energy & SCHLUMBERGER for further expansion. At present, the Company has around 75 acres of land bank which is valued at around INR 4,000 Mn

The names of the group companies and their activity are as under :-Sl.No.

Name of the Associate/Group Concern

Activity

1. Usha Tube & Pipes Ltd (UTPL), Visakhapatnam

Logistics & Warehousing

2. Steel City Properties (P) Ltd Warehousing & Logistics 3. Anmol Trading Corporation Trading (Import & Export), manufacturers of

Metal roofing sheets.4. Avnash Automobiles (P) Ltd

VisakhapatnamAuthorized Dealers for Maruti Suzuki Cars

5. ATR Cars (P) Ltd Visakhapatnam & Vijayawada

Authorized Dealers for Volkswagen Cars

6. Avnash Estates & Resorts Ltd.: Resorts & Property Development7. Pragati Fertilizer (P) Ltd Warehousing & Logistics 8. UB ELASTOMERS LTD(P) Ltd

VisakhapatnamWarehousing & Logistics

9. ATR Logistics Warehousing & Logistics 10. NAI AE&R, Hyderabad Commercial real estate Services

ATR Cars Private Ltd. :

ATR Cars Pvt Ltd is a company promoted by Mr A T Rayudu ,Mrs A Rayudu and Mr Avnash Anumolu, S/o Sri A T Rayudu . The company has set up a 3S facility (Sales + Service + Spares) of Volkswagen Cars at Vijayawada in the year 2009, at Visakhapatnam in March 2010, and at Nellore in January 2011. The company has been selling Volkswagen Cars from August, 2010.

M/s Volkswagen Group Sales India Pvt Ltd (manufacturer of Volkswagen car), gave another Letter of Intent dated 03.10.2011 to ATR Cars for opening another facility at Rajahmundry. The facility at Rajahmundry is partially set up and company has requested for Term Loan of Rs. 250.00 lac for completing the show room .

The company’s credit requirement for Vijayawada and Visakhapatnam facilities have been funded by Andhra Bank, Gunadala Branch, Vijayawada. The credit requirement for Nellore show room has been funded by Indian Bank, Gajuwaka Branch. In addition to it , the Indian Bank has given a Bank Guarantee of Rs. 400.00 Lakhs for the purpose of lifting stock from M/s. Volkswagen for Rajahmundry show room of the company. It has been proposed by the branch for take over of the BG limit as well as all the credit requirements of company’s Rajahmundry show room will be financed by us.

Brief write up on the Industry/ Sector and the Company’s standing (Comments on domestic/ international standing, market share, business strategies and competitive advantage etc. The para to conclude with the outlook for the unit)

Currently, penetration of cars & UVs in India is currently 9 per thousand people, less than in than most developed markets. This unaddressed potential has attracted more players to the cars & UVs segment, especially the small cars category. Five new players entered this category, during 2005-06 to 2010-11. Rising competition in segment has kept sales per model flat over the past 5 years, even as total sales have grown by 18 per cent. MSIL lost clout in

39

this segment, with its share falling by 10 percentage points to 54 per cent between 2005-06 and 2010-11. As competition intensifies, carmakers’ R&D costs as a percentage of total sales, will rise in the coming years from about 4 per cent as of 2010-11. Moreover, as players look to expand their reach in smaller cities, selling and distribution costs, as a percentage of total sales will also rise from current levels of 2.5 per cent. This will intensify cost pressures on players over the next 5 years.

CRISIL Research expects the Indian automobile industry to more than double by 2015-16 from 2010-11 levels. More global automakers are setting up independent operations in India to capitalise on this growth. They are also driven by an under penetrated vehicle market and relatively lower operating costs. Rising competition from these players has offered Indian consumers newer models at competitive prices. Consequently, this will pressure existing market leaders to launch products more frequently at better prices, thus pushing up their cost pressures. CRISIL Research believes that localisation and platform sharing will enable Indian automakers tackle rising competition in the coming years.

M/s. Volkswagen is a car maker with history of more than a century. Its headquarters is in Wolfsburg, Germany and the design and R&D support is provided from Germany. In India it has established its facility i.e., M/s. Volkswagen India P Ltd., at Chakan in 575 acres and its buildings constitute 115 thousand sq. meters (around 2 Km). The facility was constructed in record 17 months and commissioned in 2009 by investing about 580 million Euros (Rs. 3800 crores). It is the largest single investment in India by a German company, till date. It has capacity to produce 1,10,000 vehicles per year. In India it offers 5 models in luxury segment 1 in mid size and 1 in small segment.

40

Section B-1APPRAISAL MEMORANDUM FOR TERM LOAN:

Circle: VIJAYAWADABranch: GOVERNORPETCompany: ATR CARS PRIVATE LIMITED.

Term Loan/DPG:a) Proposal: Sanction of Term Loan of Rs. 700.00 lacs for construction/completion of

showroom at Nellore for retail sales/servicing of Volkswagen cars.

b) Project/Purpose:The company has commenced Volkswagen cars showroom at Nellore in January 2012 in a semi-finished premises with their own funds. Now they are completing the construction of the showroom at a project cost of Rs.1103.75 lacs.

Term Loan :

a) Proposal : Sanction of TL of Rs. 700.00 lacs for completion of Nellore workshop premises

b) Project / Purpose : Completion of construction of workshop premises

ii) Key Project Parameters:

Project Cost Rs. 1103.75 LakhsDebt Rs. 700.00 LakhsEquity Rs. 403.75 LakhsD/E Ratio 1.73 Tenor of the loan 83 Months Gross avg DSCR 1.53Min. Security MarginPromoter’s contribution Rs. 403.75 Lakhs

c) Appraised by: In house of the Company.

d) Details of TEV Study (if proposed for waiver, justifications to be given): The Company has requested for waiver of TEV study by approved consultant as it has already established successfully show rooms at other places Vizag, Vijayawada and rajamundry with its in house appraisal/expertise. As the request of the Company is genuine, we recommend to ZOCC for waiver of the TEV study by an approved consultant for the proposed project at Nellore.

41

e) Cost of Project, Means of Finance and Key Project Parameters:Cost Means of FinanceLand - A. Equity: Promote

r (a)Others (b)

Total (c=a+b)

Building 533.75 i) Equity Shares 403.75 - 403.75

P & M 300.00 ii) Pref. Shares - - -Other assets 140.00 iii) Internal Accruals* - -Prel. and Pre-op. expenses

- Total equity contribution (i+ii+iii)

403.75 - 403.75

IDC @ 55.00 B. DebtContingencies 50.00 i) RTL 700.00WC Margin 25.00ii) ECB -

iii) Debentures - iv)Unsecured loans -v) Others, if any -Total Debt (i+ii+iii+iv+v) 700.00

Total 1103.75Total (A+B) 1103.75Debt Equity (B/A) 1.73Promoters’ contribution: a/A% 37.54%

f) Remarks on Cost of Project ( CoP) & Means of Finance ( MoF) (in brief):(comments on MoF to also include promoter Group’s equity commitments during project implementation period in the context of Group’s projected free cash flows & leverage over the period;)

The main promoter of M/s. ATR Cars P Ltd. is M/s. ATR Warehousing P Ltd., promoted by high networth individuals having adequate means to infuse the remaining contribution of Rs.190.27 lacs. All the Directors of the Company are businessmen with varied interests in industrial warehousing for Oil, Gas, and Consumer Goods and is assorted with land pieces at strategic locations suited for Logistics across Southern India.

The company has taken authorized dealership of Volkswagen cars from M/s. Volkswagen Cars India P Ltd and has been selling Volkswagen Cars from August, 2010. The company has so far established authorized dealership show rooms at Vijayawada, Visakhapatnam, Rajamundry and now at Nellore. The company’s credit requirement for Vijayawada and Visakhapatnam facilities have been funded by Andhra Bank, Gunadala Branch, Vijayawada. The credit requirement for Nellore show room has been funded by Indian Bank, Gajuwaka Branch.

It has been now been proposed by our MSME branch, Visakhapatnam, for sanction of all the credit requirements of company’s Nellore show room.

1.Cost of the Project :

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(Rs in lacs)

2.Means of Finance : The promoters’ contribution in the project is Rs.403.75 lacs out of total cost of the project 1103.75 lacs works out to 37.54%. (Rs lacs )

3.Project implementation Schedule : As mentioned above, the Company has already commenced its Showroom operations in the partly completed owned premises at Nellore from mid January 2012. The present project is for completion of the partly constructed show room which will be fully ready by December 2012.

4)Production factors : The Company is presently doing its operations in the partly completed showroom at Nellore, with minimum infrastructure for the sale/servicing works of the Volkswagen vehicles.

5) Marketing : Not Applicable as the Company is engaged in the dealership of the passenger Cars of Volkswagen Motors which is having good brand value and the Principal is taking care of the promotional activities of the vehicles.

i a) Commercial viability (company as a whole):

( not applicable for SPVs) (Rs. in Lakhs)

PY 2 AUD PY 1 AUD CY FY

Net sales 337.54 2764.06 5580.51 6562.69

OP -31.52 8.87 491.56 140.93

PBT -31.52 9.92 494.20 143.83

S No Particulars Cost Borrowers Margin

% Bank Finance

1 Site Development 50.00 25.00 50% 25.00

2Buildings

483.75 138.75 29% 345.00

3Plant & Machinery

300.00 75.00 25% 225.00

4 Furniture 75.00 18.75 25% 56.25

5 Electrical Items 45.00 11.25 25% 33.75

6 Office Equipment 20.00 5.00 25% 15.00

7 Deposits 55.00 55.00 100% -

Deposit for BG Margin 50.00 50.00 100% -

Working Capital Margin 25.00 25.00 100% -

Total 1,103.75 403.75 700.00

Share Capital – Company 403.75Term Loan from bank 700.00Total 1103.75

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PAT -31.52 9.92 326.22 94.94

Cash Accruals -23.52 14.26 132.83 183.86

PBDIT -1.38 85.82 288.23 355.52

Year 2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

Capacity utilization % - - - - - - - -Sales 2765.1

15583.15

6565.59

6760.92

7209.63

7813.16

8494.66

9189.6

Net Profit -31.52 9.92 326.22 94.94 128.62 173.04 225.54 280.32Cash Accruals-23.52 27.63 430.81 183.86 205.02 239.25 282.31 302.70

Interest 0.01 6.12 113.35 95.26 76.85 58.43 40.01 4.22

TOTAL (23.51) 33.75 544.15 279.13 281.86 297.68 322.32 306.92

TL / DPG repayments

Existing Loan

- - - - - - - -

Proposed Loans

- 10.01 106.91 124.86 124.86 124.86 124.86 124.86

Interest

0.01 6.12 113.35 95.26 76.85 58.43 40.01 4.22

TOTAL 0.01 16.13 220.26 220.12 201.71 183.29 164.87 129.08

Gross DSCR - 2.09 2.47 1.27 1.40 1.62 1.95 2.38

Average Gross DSCR 1.82Net DSCR 1.82

i b) Commercial viability (Current project):Year 2011-

122012-13

2013-14 2014-15

2015-16

2016-17

2017-18

Capacity utilization % - - - - - - -Sales 2765.115583.15 6565.596760.927209.637813.16 8494.66Net Profit -31.52 9.92 326.22 94.94 128.62 173.04 225.54

Cash Accruals -23.52 27.63 430.81 183.86 205.02 239.25 282.31Interest 0.01 6.12 113.35 95.26 76.85 58.43 40.01

TOTAL (23.51) 33.75 544.15 279.13 281.86 297.68 322.32

TL / DPG repayments

Existing Loan - - - - - - -

Proposed Loans - 10.01 106.91 124.86 124.86 124.86 124.86

Interest

0.01 6.12 113.35 95.26 76.85 58.43 40.01

TOTAL 0.01 16.13 220.26 220.12 201.71 183.29 164.87

Gross DSCR - 2.09 2.47 1.27 1.40 1.62 1.95

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Average Gross DSCR 1.82Net DSCR 1.827) Comments on DSCR: The Average Gross DSCR of the Firm works out to 1.53 which is acceptable as the same is above our minimum norm of 1.75:1. The DSCR is lowest in the year 2012-13 at 1.08:1 which does not comply with our norm of a minimum of 1.25:1 throughout the repayment period. However, DSCR in the later years has picked up and therefore, the Average Gross DSCR is considered as satisfactory reflecting adequate cash surplus available to the unit for the repayment of Term Loan throughout the repayment period.

It is observed that the DSCR is higher only during the latter period of the loan tenor; thus reducing the repayment period may put a strain on repayment capacity of the unit in the first few years. In view of the above, we recommend to ZOCC to accept the Term Loan tenor of 83.

8) Security Margin :

(Rs. in Lacs)

2011-12 2012-13 2013-14 2014-152015-16

2016-17

2017-18

2018-19

2019-20

WDV of fixed assets 767.17 875.31 786.39 709.99 643.79 586.02 535.30 490.54 450.85Aggregate TL/DPG outstanding

703.08 578.22 453.36 328.5 203.64 78.78 74.55 --

Security margin available

64.09 297.09 333.03 381.49 440.15 507.24 460.74 490.54 450.85

% of margin. 8.35% 33.94% 42.35% 53.73%

68.37%

86.56%

86.07%

100.00%

100.00%

Comments on Security Margin : The Security Margin is lowest at 8.35% in the year 2011-12 and is considered as satisfactory.

9) Break-even and sensitivity analysis and whether acceptable : Not carried out as the Company is not a manufacturing unit and is engaged in the sale and servicing of the Volkswagen Vehicles.

10) CRA & Proposed pricing: The credit rating of the unit is carried out and the unit was assigned a risk rating of SB-9 based on the audited financials as on 31.03.2012, the first full year of operations. The rate of interest corresponding to the rating is 14.75% p.a.(floating - @ 4.50% above SBH Base Rate) on the term loan.

11)Repayment Schedule: The proposed Term Loan will be payable in 83 monthly variable installments as under. The first installment of the Term Loan falls due on 30.11.2012 and last instalment 30.11.2012. Interest on the Term Loan is payable as and when debited.

The variable repayment schedule of the Term Loan is as under:-

Period No. of instalme

Amount of Monthly

Total amount

45

nts installmentJune 2012 to March 2013 9 Rs. 8,98,000/- Rs. 89,75,000Apr 2013 to March 2014 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2014 to March 2015 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2015 to March 2016 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2016 to March 2017 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2017 to March 2018 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2018 to October 2019 7 Rs. 8,98,000/- Rs. 62,82,000Apr 2019 to Aug 2019 1 Rs. 8,92,000/- Rs. 8,92,000

12) Pricing by other major Banks / FI and justification of the proposed pricing:

13) Compliance of the project with environmental / social / statutory requirements:Complied with.

14) Environment and Sustainability implications: Nil

g) Overall viability and acceptability of the proposal :

Keeping in view the Company’s business prospects, promoter’s profile and the satisfactory projected financials, we recommend for sanction of Term Loan of Rs.700.00 lacs to the Company for completion of showroom workshop premises at Rajahmundry for undertaking its authorised sales / servicing works as dealer of Volkswagen Vehicles.

1) The project cost details to be vetted by Chartered Accountant. 2) Branch is advised to release the Term Loan on prorate basis only after the company brings its margin upfront3) Chartered Engineer’s certificate to be obtained after completion of the project to verify the end use of funds 4) COD to be obtained from the company after completion of the project

Section B-2

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Appraisal Memorandum for Working Capital:(If the assessment of the WC limits is based on any other parameters, like Cash Budget method, Nayak Committee- Turnover Method, please specify them along with an explanation)

a) Overall viability and acceptability of the proposal : ( Rs. in lakhs)Inventory/Payments 2011-12 2012-13 2013-14 2014-15Raw material-Imported Amount - - - - Days - - - --Domestic Amount 11.98 14.38 17.26 20.71 Days - - - -SIP Amount - - - - Days - - - -FG Amount 785.00 1371.05 1336.72 1335.68 Days - - - -Receivables Amount 46.19 76.78 90.28 92.92 Days - - - -TL insl. Payable in 12 M - 124.86 124.86 124.86S Creditors - Import Amount - - - - Days - - - - - Domestic Amount 480.00 480.00 480.00 480.00 Days - - - -Other Current Assets Amount

- - - -

b) Assessed Bank Finance:Assessed Bank Finance 2011-12 2012-13 2013-14 2014-15Year 2011-12 2012-13 2013-14 2014-15TCA 843.17 1,462.21 1,444.26 1,449.30

OCL 480.00 604.86 604.86 604.86

WC Gap 363.17 857.35 839.40 844.44

NWC -135.20 590.20 574.70 -

BF 250.00 250.00 250.00 250.00

NWC/TCA (%) 16.01% 40.36% 39.79% -BF/TCA (%) 29.65% 17.09% 17.31% 17.25%OCL/TCA (%) 56.93% 41.36% 41.88% 41.73%OCA/TCA (%) - - - - LC/SC(%) - - - -

47

c) Assessment of EPC / FBD limits : (Not Applicable)Sl. No. AS ON 31st MARCH ACTUAL ESTIMATE PROJECTIONA EPC

A1Annual Export SalesA2Exports Per monthA3Average RM holding (in months)A4Average processing period (in

months)A5Total requirement [A2 x(A3+A4)] NA

Less : MarginA6EPC Limit Recommended

B PSCB1Average export receivables (in

months)B2PSC required (A2 *B1)B3FBD Limit Recommended

C Total export finance required (A6+B3)

d) Computation of LC limits for WC: Not ApplicableForeign LCs Domestic LCs Total LCs

Total Purchases of RM (Esti/Proj)Procurement out of LC (%)Monthly RM purchases out of LC*a) Usance (average) NAb) Lead time (average)Total Time (a + b)LC Limit requiredRecommended LC limit Documentary : Non Documentary :Margin (Existing / Proposed):Usance / Sundry Creditors :*In case of foreign LCs, purchases should be net of duties.Comments on mismatch, if any, between Usance available & Sundry Creditors :e) Assessment of BG limit: (Rs. in lakhs)

Outstanding BGs as on 31.03.2012 0.00Add: BGs required during the period 31.03.2012 to 31.03.2013

500.00

Less : Estimated maturity/cancellation of BGs during the period

0.00

Requirements of BGs 500.00Recommended BG limit 500.00Financial : Performance :Margin (Proposed): 50.00

48

(In case of EPC Contractors/ Construction industry detailed assessment in respect of Guarantees issued for Bid bond, Mobilization, Performance, Retention, Other BGs be provided)

The company has availed a Bank Guarantee of Rs. 400.00 lacs from Indian Bank Gajuwaka Branch, for lifting stock from the company to its Rajahmundry unit , in favour of M/s. Volkswagen Group Sales India P Ltd., issued for a period of one year and valid up to 23.11.2012.

The company has requested for takeover the Bank Guarantee limit from Indian Bank, Vizag, along with the sanction of WC/TL facilities to its Rajahmundry unit. We have issued a letter of intent for taking over the BG limit to the Indian Bank. The credit opinion report and B G letter submitted by the Indian Bank is enclosed.

We propose to take over the limit by issuing a letter of comfort to the bank. As the BG is due to expire on 23.11.2012, we will issue a fresh BG in favour of the M/s. Volkswagen Group Sales India P Ltd., . In case of any devolvement in between the due date we will honour the Bank Guarantee based on the letter of comfort issued to Indian Bank, Gajuwaka branch.

S No

BG Parameters Particulars

1 Limit 400.00 lacs – To be taken over from Indian Bank, Gajuwaka branch, Vizag. The existing BG issued by them is due on 23.11.2012.

2 Cash Margin 10% - The applicant has to deposit a cash margin of on Non-fund based limits in the form of Bank’s Special Term Deposit.

3 Security i) Counter Indemnity of the borrower.ii)Extension of Charge over current assets, all collaterals available to Working Capital/TL limits should cover Bank Guarantee limit also.

4 Purpose Lifting of stocks from M/s. Volkswagen Group Sales India P Ltd., .

5 Period of B G 12 months 6 Commission As per banks standard rates

Assessment of BG limits for EPC contractors/ Construction Industry : N A

Comments on mismatch, if any, between Mobilization BGs given and Advance payment Outstanding

l) Assessment of Credit Exposure Limit (Forward Contract Limit):As per Annexure-2. - Not Applicable

Assessment of BG limits for EPC contractors/ Construction Industry (Not Applicable)

f) Assessment of Credit Exposure Limit (Forward Contract Limit): Not Applicable

49

Section C

Standard Terms & Conditions:

Circle: VIJAYAWADABranch: GOVERNORPETCompany: ATR CARS PRIVATE LIMITED (Nellore)

Security:a. Primary Facility Details of Security* Type of Charge Value**

Rs in lacsDate of valuation

Basis of valuation

CC (HYP) Hypothecation of the Stocks (Cars), Spares and other Receivables, both present and future, of the Company.

Hypothecation

T L All the equipment, plant & machinery, Electrical fixtures furniture and fittings and all other movable assets at the company’s workshop is situated in a leased industrial shed premises at 69-31-14, Sriramnagar, Rallacheruvu, Opp. FCI godowns, Rajahmundry – 533103.

Hypothecation 1103.75 as per project cost

B G

*To include detail like Khata no./ Survey No./ Patrta No.etc, Flat no, House no, Area/extent of land, address. ** In case of Consortium/ MBA Accounts our share to be provided. Details of Total Security for the facility and for the Banking System may be shown in brackets

Collateral : Extension of Equitable Mortgage of the property as under : (Rs. in lacs)

Existing Proposed Details of Security* Facility Total Value

4974.45 4974.45

E M of Industrial land adm. Ac.4.876 cents in Survey no. 62/1 and 65/1 in Mindi village, Gajuwaka, Visakha-patnam district of A.P. and the super structures thereon valued at Rs. 4974.45 lacs valued by Sri Lt. col. B.K.Sahoo, panel valuer, vide report dated 23.08.2010.

Steel City Properties 416.00(1820.00)

Steel City Properties 416.00(1820.00)

4558.45

4558.45

ATR Warehousing P Ltd. ATR Warehousing P Ltd.Rent Plus 400.00

Rent Plus 400.00

CC 1000.00

CC 1000.00

3158.45

3158.45

ATR Cars P LtdCC

50

250.00TL 250.00BG “ 400.00

Security coverage % 325.60

350.93

Total exposure 1816.00

2716.00

Overall Security coverage % 273.92 183.15

The branch is advised to obtain latest copies of EC s and verify our charge and keep on record.Charges to be registered with ROC within 30 days of release of the facilitiesLatest search report to be obtained and verify that our charge is persisting.

c. Guarantees:

i) Guarantee of Managing Directors/Directors of the company (Rs. in lacs)

Facility Name Net Means As on Compiled onCC 2.50 Cr A T Rayudu 10236.02 31.03.2012 15.10.2012TL 2.62 Cr Ammaji Anumolu 2353.24 31.03.2012 15.10.2012BG 4.00 Cr Avnash Anumolu 3611.59 31.03.2012 15.102012

ii) Corporate guarantee of M/s. ATR Warehousing P Ltd.

In case of Corporate guarantee(s) -brief profile and financials of the company extending the guarantees executed by the entity on behalf of the associate concerns to be given. In case of personal guarantees, net worth to be furnished

d. Security Coverage:

(Rs. lacs)Existing Proposed

Details of Security* Facility Total Value

4974.45 4974.45

E M of Industrial land adm. Ac.4.876 cents in Survey no. 62/1 and 65/1 in Mindi village, Gajuwaka, Visakha-patnam district of A.P. and the super structures thereon valued at Rs. 4974.45 lacs valued by Sri Lt. col. B.K.Sahoo, panel valuer, vide report dated 23.08.2010.

Steel City Properties 416.00(1820.00)

Steel City Properties 416.00(1820.00)

4558.45

4558.45

ATR Warehousing P Ltd. ATR Warehousing P Ltd.Rent Plus 400.00

Rent Plus 400.00

CC 1000.00

CC 1000.00

3158.45

3158.45

ATR Cars P LtdCC 250.00

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TL 250.00BG “ 400.00

Security coverage % 325.60

350.93

Total exposure 1816.00

2716.00

Overall Security coverage % 273.92 183.15

Comments on Collateral Security Coverage : As per the MSME Policy guidelines, the collateral security coverage required for any exposure is 75% in respect of non-manufacturing units. Thus, the collateral security coverage complies with our collateral security norms.

Existing ProposedSecurity Coverage – SB:

including residual value(%)

excluding residual value(%)

including residual value(%)

excluding residual value(%)

Term Loan (%) Working Capital (%) Comment on infirmities in security creation, if any

i. Please indicate time frame allowed for security creation:

ii. Deviation from existing security (if any) to be mentioned in the proposal.

Justification of deviation to be furnished in Section A7

e. ECGC COVER: Not applicable

f. MARGINS : (For Each Facility as Applicable)

Cash Credit: Existing ProposedRM: Domestic RM: Imported SIP FG -Receivables (Cover ---days) Letter of Credit BG - 10%TL / DPG - 37.54%Project LC Justification for deviation from existing margins, if any to be provided in Section A 7above.

C. MARGINS: Term Loan 37.54%

D. RATE OF INTEREST: CRA SB-9 based on Audited Balance Sheet as on 31.03.2012

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Pricing CC (Hyp) 14.75% p.a.(floating - @ 4.50% above SBH Base Rate) as card rates T L 15.25% p.a. (floating - @ 5.00 % above SBG Base Rate)

E. Insurance : All the Movable Assets (at the Workshop premises proposed to be fianced by us ) and Current Assets of the unit should be insured against all risks in the joint names of the Bank and the Company. The insurance shall be done from M/s. SBI General Insurance Co. Ltd.

F. Processing Charges ( For CC (Hyp) & BG) : Rs. 2,60,000/- (400 X 650)

Upfront Fees(on Term Loan) : Rs. 8,75,000/-(Upfront Fees @ 1.25% of the Term Loan).

Equitable Mortgage Charges : Rs.20,000/-

Commitment Charges : 1.20% for delayed drawdown beyond 2 months on undrawn portion.

G. Inspection : Quarterly Intervals.

H. Term Loan Margin : 37.54%%.

I. Repayment Schedule :

Cash Credit : On demand

Term Loan :

The proposed Term Loan will be payable in 83 monthly variable installments as under. The first installment of the Term Loan falls due on 30.11.2012 and last instalment 30.09.2019. Interest on the Term Loan is payable as and when debited.

The variable repayment schedule of the Term Loan is as under:-

Period No. of instalments

Amount of Monthly installment

Total amount

June 2012 to March 2013 9 Rs. 8,98,000/- Rs. 89,75,000Apr 2013 to March 2014 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2014 to March 2015 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2015 to March 2016 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2016 to March 2017 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2017 to March 2018 12 Rs. 8,98,000/- Rs. 1,07,70,000Apr 2018 to October 2019 7 Rs. 8,98,000/- Rs. 62,82,000Apr 2019 to Aug 2019 1 Rs. 8,92,000/- Rs. 8,92,000

Disbursement : The branch is advised to release the Term Loan directly to the Vendors alongwith the remaining margin money of the promoters.

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K. Drawdown of Term Loan : The Term Loan should be released at the written request

of the company depending on the progress of the work completed by ensuring the company’s

stipulated margin.

L. Pre-disbursement Conditions : Obtaining Legal Opinion Reports on the immovable properties offered as Primary and

collateral security. Obtaining Valuation Report on the properties offered as security by our panel valuer and

conducting branch inspection of the properties to confirm the reasonableness of the valuation accorded by the panel valuer.

Filing of our charges with ROC. Processing/ Upfront Fees/Mortgage charges should be recovered before release of

Limits.

M. Other Critical Covenants for Term Loan:

Amount Rs.700.00 lacs.Tenor 83 months Security Documentation

MSME -Series Documents to be obtained.Agreement to Mortgage to be obtained from the Company.

Penal Interest 2% p.a. on the overdue interest and installment amount if the irregularity for 60 days and on the entire amount if it is for more than 60 days (persistent).

Pre-payment penalty

2% of the prepaid amount if paid by other than out of the internal cash accruals of the Firm.

Legal Expenses To be borne by the Firm.Other Critical Covenants

a) Any cost overrun to be met by the Firm, for which they will submit undertaking to the Bank.

b) Dividends cannot be paid without Bank’s prior permission, in case of any arrears/ overdues in the loan account/ interest payments.

c) The Company should agree for disclosures under RBI/ CIBIL norms.d) Satisfactory Bankers Opinion Report on the Company from existing

bank/branch, i.e., Indian Bank, Vizag, to be obtained and held on record.

TERMS AND CONDITIONS : BANK GUARANTEE

S No

BG Parameters Particulars

1 Limit 500.00 lacs.2 Cash Margin 10% - The applicant has to deposit a cash

margin of on Non-fund based limits in the form of Bank’s Special Term Deposit.

3 Security i) Counter Indemnity of the borrower.ii)Extension of Charge over current assets, all collaterals available to Working Capital/TL limits should cover Bank Guarantee limit also.

4 Purpose Lifting of stocks from M/s. Volkswagen Group Sales India P Ltd., .

54

5 Period of B G 12 months 6 Commission As per banks standard rates

Model : The guarantee bond should be on the lines of the model circulated vide HO Circular No. Adv/2001-2002/50 dt. 07.11.2001. Any deviation is to be approved by Bank’s Law Officer before issuance of Bank Guarantee.

Monitoring : It will be ensured that the conditions stipulated in guarantee bond are complied with by the Company. The books of the firm are to be periodically examined to satisfy that the party is complying with the essential stipulations of the agreement. In addition, constant contact will be maintained with the beneficiary/ institution/department in whose favour the guarantee is issued to ascertain whether there are any aberrations or any breach of contract at any stage.

Restrictive Clauses : Please also ensure to call for copies of letters of intent before issuance of Bank Guarantee to make sure that there are no restrictive clauses.

Inspection : Inspecting Officials will be deputed at irregular intervals to verify the register of works completed, cheques received and such other books/registers etc., which would furnish the required information to confirm that the particulars furnished by the Company in the statements are correct.

Control & Follow up : All other control and follow up measures advised vide Head office Circular No. Adv/2001-2002/50 dt. 07.11.2001 and other circulars issued from time to time have to be complied with.

Incorporation : The guarantee bond should be issued incorporating the following paragraph invariably:

`NOT WITHSTANDING ANY THING CONTAINED HEREIN ABOVE, THE LIABILITY OF THE BANK UNDER THIS GUARANTEE IS RESTRICTED TO RS.___________ (RUPEES ONLY) AND SHALL BE IN FORCE UPTO DATE. UNLESS A DEMAND OR A CLAIM IS PREFERRED/ MADE UNDER THIS GUARANTEE IN WRITING WITHIN _________ DAYS FROM THE DATE OF EXPIRY OF GUARANTEE, THE BANK SHALL STAND DISCHARGED OF THE LIABILITY UNDER THIS GUARANTEE. THE BANK SHALL STAND DISCHARGED OF THIS LIABILITY UNDER THIS GUARANTEE AND THE COMPANY/BENEFICIARY SHALL HAVE NO CLAIM WHAT SO EVER THEREAFTER’. General Covenants:

i) The Bank will have the right to examine at all times, the Company’s books of accounts and to have the Company/projects inspected from time to time by officer(s) of the Bank and/or qualified Auditors and/or technical experts and/or management consultants of the Bank's choice. Cost of such inspections shall be borne by the Company.

55

ii) During the currency of the Bank's facilities, the Company will not without the permission in writing from bank -

a) effect any change in the capital structure;b) formulate any scheme of amalgamation or reconstruction;c) implement any schemes of expansion or acquire fixed assets;d) invest by way of share capital in or lend or advance funds to or place deposits with any

other concerns except in normal course of business or as advances to employees;e) enter into borrowing arrangements either secured or unsecured with any other bank or

financial institutions, Company or otherwise;f) undertake guarantee obligations on behalf of any other Company;g) declare dividends for any year except out of profits relating to that year after making all

due and necessary provisions and provided further that no default had occurred in any repayment obligations.

iii) The Company will place with the Bank(and SBI) all its banking business including foreign exchange, if any, and deposits.

iv) The Company should not make any drastic changes in its management set up without the Bank/'s permission.

v) The Company will maintain its net working capital position above the levels furnished in its projections for working capital finance. In the event of any difference of opinion arising as to what constitute current assets and current liabilities, the Bank's decision will be final and binding on the Company.

vi) The Company will keep the Bank informed of the happening of any event likely to have substantial effect on their profit or business, if, for instance, the monthly production/sales are substantially less than what had been indicated to the Bank, the Company will inform the Bank accordingly with explanations and the remedial steps proposed to be taken.

vii) The Company will keep the Bank advised of any circumstances adversely affecting the financial position of their subsidiaries including any action taken by any creditor against the subsidiaries.

viii) Any other terms and conditions, which are not specifically covered herein but stipulated, should be strictly complied with.

ix) The Bank will be free to suitably modify the terms and conditions detailed above whichever considered necessary, this will of course, be done in consultation with the Company.

GENERAL: The credit facilities granted are subject to the directives issued by Govt.of India, RBI, SBI and any other regulatory authority from time to time.

All the above facilities have been sanctioned for the purpose of the Company’s normal business requirements. If the facilities are used for any other purpose or the bank apprehends

56

that the facilities are likely to be used for such other purposes by you, the bank may immediately withdraw the facilities and recall the amounts due from you. A declaration from the directors of the Company to be furnished as under: "I/WE HEREBY AGREE AS A PRE-CONDITION OF THE LOAN/ADVANCES GIVEN TO ME/US BY THE BANK THAT IN CASE I/WE COMMIT DEFAULT IN THE REPAYMENT OF THE LOAN/ADVANCES OR IN THE REPAYMENT OF INTEREST THEREON OR ANY OF THE AGREED INSTALMENT OF THE LOAN ON DUE DATE (S), THE BANK AND/OR THE RESERVE BANK OF INDIA WILL HAVE AN UNQUALIFIED RIGHT TO DISCLOSE OR PUBLISH MY/OUR NAME OR PHOTO OR THE NAME OF OUR COMPANY/ FIRM/UNIT AND ITS DIRECTORS/PARTNERS/PROPRIETORS/ GUARANTORS AS DEFAULTERS IN SUCH MANNER AND THROUGH SUCH MEDIUM AS THE BANK OR RESERVE BANK OF INDIA IN THEIR ABSOLUTE DISCRETION MAY THINK FIT."

Finally, consent of the Company for disclosure of information to CIBIL to be furnished on the lines as under:

I/We, understand that as a pre-condition, relating to grant of the loans/advances/other non-fund-

based credit facilities to me/us, the Bank, (State Bank of Hyderabad) requires my/our consent

for the disclosure by the Bank of, information and data relating to me/us, of the credit facility

availed of/to be availed, by me/us, in discharge thereof.

Accordingly, I/We, hereby agree and give consent for the disclosure by the Bank of all such:

a) Information and data relating to me/us;b) The information or data relating to any credit facility availed of/to be availed, by me/us;

andc) Default, if any, committed by me/us, in discharge of my/our obligation;

as the Bank may deem appropriate and necessary to disclose and furnish to Credit Information

Bureau (India) Limited and any other agency authorized in this behalf by Reserve Bank of India.

I/We, declare that the information and data furnished by me/us to the Bank are true and correct.

I/We, undertake that:

a) the Credit Information Bureau (India) Limited and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them; and

b) the Credit Information Bureau (India) Limited and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them, to banks/financial institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf.

From Guarantors

57

I, understand that as a pre-condition, relating to grant of the loans/advances/other non-fund-

based credit facilities to M/s. Jayabheri Automotives Pvt. Limited and furnishing of guarantee in

relation thereto, the Bank (State Bank of Hyderabad), requires my consent for the disclosure by

the Bank of, information and data relating to me, of the credit facility availed of be availed, by

me/us, in discharge thereof.

Accordingly, I, hereby agree and give consent for the disclosure by the Bank of all/any such :

a) information and data relating to me/us;

b) the information or data relating to my obligations in any credit facility granted by the

bank and guaranteed by me as a guarantor; and

c) default, if any, committed by me, in discharge of my obligation;

as the Bank may deem appropriate and necessary to disclose and furnish to Credit Information

Bureau (India) Limited and any other agency authorized in this behalf by Reserve Bank of India.

I, declare that the information and data furnished by me to the Bank are true and correct.

I, undertake that:

a) the Credit Information Bureau (India) Limited and any other agency so authorized may

use, process the said information and data disclosed by the Bank in the manner as deemed

fit by them; and

b) the Credit Information Bureau (India) Limited and any other agency so authorized may

furnish for consideration, the processed information and data or products thereof prepared

by them, to banks/financial institutions and other credit grantors or registered users, as may

be specified by the Reserve Bank in this behalf.

Calling up of the loan:

The bank will be at liberty to call up the loan, or such portion thereof as may remain outstanding on the happening of any of the following or other events considered likely to jeopardize the bank's interests

a) Any installment of the principal monies being unpaid on the due date for payment thereof.

b) The Company committing any breach or default in the performance or observance of the covenants in the mortgage deed executed by them.

c) The Company entering into any arrangements or compromise with its creditors or committing any act of insolvency.

d) Any interest remaining unpaid and in arrears for a space of three months after the same shall have become due.

e) Execution or distress being enforced or levied against the whole or any part of the Company's property.

f) The Company going into liquidation (except for the purpose of amalgamation or reconstruction approved by the Bank)

58

g) Any of the directors of the Company being adjudicated insolvent or taking advantage of any law for the relief of insolvent debtors.

h) A receiver being appointed in respect of the whole or any part of the property of the Company.

i) The Company ceasing or threatening to cease to carry on business.j) The occurrences of any circumstance which is prejudicial to or impairs, imperils or

depreciate or is likely to prejudice, impair, imperil or depreciate the security given to the bank.

k) The occurrence of any event or circumstance which would or is likely to prejudicially or adversely affect in any manner the capacity of the Company to repay the loan.

l) If default is made in due and effective payment of legal expenses, commitment charges, cost, charges or any other monies payable by the Company.

ANNEXURE-1

Future Plans & Business potential(over a 3-5 year horizon) including Cross selling / Retail Marketing based on Co / Group’s future plans: (to be quantified).

Item Present Position –

Whether Tied Up?

(Yes / No) *

Business estimated

Corporate Salary Package P Segment Loans (Nos)

(a) Housing (b) Auto Loans (c) Personal Loans SBI Credit Card (No.) Point of Sale Terminals SBI Corporate Card (No.) SBI Life Business : (Premium )

a) Corporate Business b) Retail Business SBI General Insurance (Premium- Rs. In

59

crores) SBI Mutual Funds (Gross investment – Rs.

crores) SBI Capital Markets Ltd (a)Project Advisory & Loan Syndication

(b) M & A (c ) Private Equity (d)IPO/FPO (e) Others (if any)(Potential Ticket size & when expected may be furnished against each applicable item) SBI Vishwayatra Foreign Travel Yatra Cards (In

USD) Vendor/ Dealer Finance Any Other (Please specify)

* If no, please advise efforts made and outcome thereof

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ANNEXURE-2

ASSESSMENT OF CREDIT EXPOSURE LIMIT (FORWARD CONTRACT / DERIVATIVE LIMIT)

Not Applicable

ANNEXURE-3

EARNINGS & ROCC:

Net Interest Margin:Facility Rate of interest

charged % (A)MRFTP Rate % (B) Net Interest Margin %

(C= A-B)CC 14.75%TL-1 15.25%TL-2 -

External Rating::Name of the External Credit Rating AgencyCredit Rating assignedDate of RatingRating valid uptoRisk Weight applicable

Capital Charge: (Rs. in lakhs)Facility Proposed

LimitsEffective Exposure (D)

CCF (%) (E)

Risk Weight (%) (F)

Risk Weighted Exposure (G+D*E*F)

Capital Charge (H+G*13%)

1. FBWC 250.002. TL 700.003. Corporate Loan -4. SLC -5. LC (Docum) -6. LC (Non-docum) -7. BG (Perform) -8. BG (Financial) 500.009. CEL -

Total 1450.00* After netting off financial / cash securities (as per Basel norms)

61

Return on Capital Charge (ROCC):Actuals Estimates Interest Income(Last year)(P)

NII(Q = P * C/A)

Fee Income (R )

Total Income (S)

Interest Income(Next Year)(T)

NII(U = T * C/A)

Fee Income (V)

Total Income (W)

WC Int./discount TL interestLCBGForexBillsOthersTOTALROCC(%) (Total Income *100/H)

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ANNEXURE-4

Details of Due Diligence:Date of Pre-Sanction visitPlace(s) visitedName(s) of officials, who visited Shri Pavan Kumar – Branch ManagerWhether papers required for KYC obtained (PAN/Articles/Memo etc)? Yes/No

Yes

Date of Search Report obtained from ROC Advised the branch for complianceFormalities regarding obtention of legal opinion/valuation report completed? (Yes/No)

Yes

Whether CIRs obtained from existing Bankers? (Yes / No)

Yes

Other Observations, if any

Data Chart:1. Nature of facility (ies) applied for: CC, TL, BG.2. Date of receipt of the proposal 03.10.20123. Information sought on changes in the revised business plan

03.10.2012

4. Reply received 12.10.20125. Discussions held with Company’s officials 6. Information recd7. In Principle Note submitted8. Date of receipt of complete information 17.10.20129. Date of submission to sanctioning authority (for sanctioning authorities up to the level of GM)10. Date of submission to CCCC if proposal is to be sanctioned by CCCC or higher authorities

Designation Date InitialsAppraisal: done by and date of completion Credit AnalystAssessment: Done by & Date of completion Team Leader/

AGM Additional Assessment: done by and date of completion

DGM/ GM

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ANNEXURE -5 GROUP / ASSOCIATE ENTITIES / COMPANIES

(Rs. in crores)

PARAMETERS/COMPANY

M/s. Steel City Properties Pvt. Limited

M/s. Sriram Textiles Pvt. Limited

M/s. Avnash Automobiles Pvt. Ltd.

ATR Ware housing P Ltd

ACTIVITY Warehousing & Automobile Dealer

Trading in Iron & Steel products

Automobile Dealer for Bajaj vehicles

Warehousing & Logistics services and Contract Work from HCC Warehouses at Visakhapatnam, Kakinada and Hyderabad

CONSTITUTION Private Limited Company

Private Limited Company

Private Limited Company

Private Limited Company

DIRECTORS / PARTNERS

S/Sri/Smt.A.T.RayuduB.C.AgarwalAvnash Anumolu

S/Sri/Smt.B.C.AgarwalS.N.AgarwalAnita Agarwal

S/Sri/Smt.Avnash AnumoluHarshita Anumolu

Sri A.T.Rayudu,

Managing

Director

Sri Avnash

Aumolu,

Director; and

Smt. Ammaji Anumolu, Director.

BANKERS / Fis

w e f

SBH, Dwarakanagar Branch, Vizag2010

SBH, Dwarakanagar Branch, Vizag2010

MSME Branch, Vizag

2011

MSME Branch, Vizag

2010OPINION OF BANKS / FIs

NA(Banking with us)

NA(Banking with us)

NA(Banking with us)

FB LIMITS 20.90 10.00 7.00 14.00NFB LIMITS -- 5.00 -- --TOTAL LIMITS 20.90 15.00 7.00 14.00ASSET CLASSIFICATION

Standard Standard Standard Standard

CRA RATING SB-7 based on PBS as on 31.03.2012

SB-7 based on ABS as on 31.03.2011

SB-5 based on PBS as on 31.03.2013

SB 9 based on ABS 31.03.2011

Financials as on 31.03.2011 31.03.2011 31.03.2011 31.03.2011NET SALES / INCOME

14.32 120.65 The unit commenced its operations during 2012-13

17.56/0.49

NET PROFIT / LOSS

-0.13 0.17 0.49

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TNW 7.09 14.46 12.59NET BLOCK 13.98 0.94 43.41TOL / TNW 2.01 0.68 8.01CR 0.84 1.74 1.11

ATR Warehousing P Ltd. – M B A -

(Rs. in lacs)Name of the Bank Term Loan

LimitOutstanding as per ABS as on 31.03.2011

Purpose

Indian Overseas Bank 110.00 10.45 Rent Discounting--do-- 350.00 22.99 --do----do-- 463.15 322.41 --do----do-- 900.00 497.23 --do--Indusind Bank 3175.00 2537.67 --do--State Bank of India 500.00 313.85 Construction Equipment

Loan(for purchase of Dumpers)

--do-- 300.00 192.59 --do--APSFC 1200.00 1182.30 Term LoanAxis Bank 1200.00 1117.73 Overdraft Shriram Transport Finance Co Ltd.

172.48 Vehicle Loans

SBH 400.00 353.00 Rent Plus LoanTotal 6722.70

Details about Associate concerns (Not Banking with us)(Rs. in crores)

PARAMETERS/COMPANY

M/s. Usha Tubes & Pipes Pvt. Limited

ATR Cars P Ltd ATR Infracons

ACTIVITY Warehousing & Automobile Dealer

Automobile dealer for Volkswagen

Automobile Dealer for Bajaj vehicles

CONSTITUTION Private Limited Company

Private Limited Company

DIRECTORS/ PARTNERS

A T Rayudu A T Rayudu A T Rayudu

BANKERS / Fis SBI, Main Branch, VizagAPSFC, RajahmundryAXIS BANK Ram nagar Br, VizagIIFL Dwarakanagar, Vizag

Andhra Bank, Gunadala, Vijaya wadaIndian Bank, Gajuwaka, VizagAPSFC Vizag

AXIS Bank, Ram nagar Br, Vizag

FB LIMITS 15.58 24.70 0.50 NFB LIMITS -- 20.50 --TOTAL LIMITS 15.58 45.20 0.50ASSET Standard Standard Standard

65

CLASSIFICATION

M/s. Visakha Infra Projects P Ltd. , and M/s. Pragathi Fertilizers Limited have not availed any

credit facilities with any bank as on date.

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ANNEXURE-6 CONDUCT OF VARIOUS FACILITIES*(Last 12 months period to be covered for all facilities)(+*Applicable for Accounts with Group turnover of less than Rs 1000 crores)

(a) Cash Credit New sanction – Not applicable

Particulars Last Financial year Current Financial year up to previous month

Credit summation* Debit summation* Maximum outstanding Minimum outstanding Average outstanding No. of times and days the account was irregular

No of times No of days No of times No of days

Reasons for the irregularity(ies) Peak irregularity in theaccount, if any

No. of days taken to adjust peak irregularity

(* To be provided for accounts with exposure less than Rs. 100 crores)

(a i): Comments:

(b) Bills Facility : Not applicable

67

a) Letter of Credit : New sanction - Not applicable

d). Bank Guarantees : New sanction – Not applicable

Movement Chart:

Nature of Proposal New - WC/TL/BGSanctioned under Discretionary Powers of ZOCC VProposal received from Branch on Further information received from Promoter on Appraisal submitted to the CM (CR) on Appraisal submitted to the AGM (CR) on Appraisal submitted to the DGM (CR) on Appraisal submitted to the GM (SAMG) &GE(Corp. Bkg) Appraisal submitted to the HOCC I on

Name and Signature (with S.S. No.) of the second Dealing official (s) involved in the transaction (Manager of Division / Branch Head)

Zone / Region Branch Company

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ANNEXURE - 7

Take over norms vis-à-vis compliance :

Norms CompliancesThe advance to be taken over should be rated SB 6 (old rating SBH-3) or above

CRA rating has been carried out and the company has been rated SB 9 based on ABS 2012.As per P&C/2011 - 12/180 dated dt. 19.12.2011, it is a deviation and the GM (Operations) is competent authority to approve this deviation. Hence, we requested the GM (RNW SZ III) to approve the deviation. Approved on 17.10.2012.

The unit should score the minimum scores as prescribed, under the various risk segments, in the revised model for Credit Risk Assessment.

The company’s Financials score at 23.37 is less than the minimum prescribed financials score of 25 marks. – Deviation – ZOCC(V) is the deviation approving authority.

The account should have been a standard asset in the books of the other bank/Fl during the preceding 3 years. However, if a unit is not having a track record for 3 years, as it has been in existence for a shorter duration, takeover can be considered based on the track record for the available period, which should normally be for at least one year. Where a minimum history of at least 1 year is not available and where for specific reasons it is still considered appropriate to take over, the authority structure provided for permitting deviations will be used.

Standard (Branch will be advised to obtain a certificate to this effect from Indian Bank before take over proposal is submitted)

The unit should have earned net profits (post tax) in each of the immediately preceding 3 years. However, if the unit has been in existence for a lesser period, it should have earned net profit (post tax) in the preceding year of operation.

The Company has incurred loss in initial years (2009-10 & 2010-11) of operation due to depreciation and interest on loan account resulting in loss to the company.

Depreciation :

Year Gross Dep Net Block Block

2010 829.54 21.74 807.802011 984.15 83.65 878.762012 1791.02 104.28 1583.38

The net losses were eroding the Networth of the company. However, the company has shown cash accruals of Rs. 51.95 lacs during 2012 and projected a net profit of Rs. 262.49 lacs for the FY 2013.

Due to this the TNW has been projected to improve at Rs. 881.06 lacs.

69

Also the total liabilities were showing a stabilising trend from Rs. 1265.22 lacs in 2010 to Rs. 5484.14 lacs in 2012 and to Rs. 5911.01 lacs in 2013.

Due to these factors the TOL/TNW is expected to improve.

As per P&C/2011 - 12/180 dated dt. 19.12.2011, it is a deviation and the GM (Operations) is competent authority to approve this deviation. Hence, we recommended to GM (RNW SZ III) to approve the deviation. Approved on 18.10.2012.

The Term Loan proposed to be taken-over should not have been rephased, generally, by the existing FI / Bank after commencement of commercial production. However, if a rephasement was necessitated due to external factors and viability of the unit is not in doubt, such proposals may also be considered for sanction on a case to case basis.

Not applicable

Norms CompliancesWhen only TLs are taken over, the remaining period of scheduled repayment of the term loan should be at least 2 years. For takeover of existing TLs, while the original time frame for repayment will be generally adhered to, flexibility may be allowed in the quantum of periodical repayments. If sanction of fresh term loan is proposed along with the takeover, the schedule of repayment for the existing term loans, if necessary, may be permitted to extend normally up to 10 years.

Not applicable

Take over of units from SBI & Associate Banks is not permitted. Term loans from State Financial Corporations may be taken over selectively.

Complied with(Take over from Indian Bank is proposed)

Take over of units not complying with any one or more of the norms prescribed and takeover of rescheduled loans to be approved / sanctioned by respective sanctioning authority not below the level of ZOCC/ROCC/ HOCC –III.

Not applicable.

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