Cred~t DpunJab national bank

'""lartment Confidential Circle Office, Central Delhi, \

I
Rajend,. ~la~:ICNTLY FO~ INTERNAL USE

I
. , ew Delhi Annexure

Name.of the Division·• \ Item No.: . \ iy,eeting Date:

Meeting Type: COCAC

Name of the Branch/ Controlling Office/ FGMO:BO: Rajendra Place

CO: Central Delhi/ DELHI ·

EXECUTIVE SUMMARY

Name of the Borrower: M/s SKY WORLD EXIM

1. Present Proposal is for sanction of FBWC Limit - Sanction of Cash Credit Limit of. Rs.
25.50 crores including takeover of existing CC limit of Rs. 20.75 Crores from HDFC
Bank.
2. Dealing with PNB: Fresh Dealing being considered as a package deal of takeover of
Housing Loan takeover of Rs. 16.50 Crores from federal Bank along-with this limit,
which has been sanctioned by COCAC on 26.09.2016.
3. Year of Establishment/ Location of Regd/Corporate Office: The firm is a Partnership
firm and was established on 03/05/2007 having its registered office at Shop# 1_&2,
60/30, New Rohtak Road,Karol Bagh,New Delhi'.'"110005·, and Godown at Ahpur
Industrial Area.
4. Risk Rating/ External Risk Rating:
Firm is internally rated as B1 with score of 54.30 on ABS 2016. \
Firm is externally unrated as of now, however, it is being stipulated to get the external
Rating done as per bank's guidelines within 3 months from sanction.
5. Activity with Capacity, if any/Total Credit limits with Consortium/ No of Bankers for
WC/TL /Lead Bank /PNB Branch/CO and Limits.- Trading of paper and p_ a per 1
products, ~olyester film, Industrial Fabrics and Packaging Material. Enjoying VVCFB \
limits of Rs.20.75 Crores with HDFC Bank with satisfactory conduct.
6. Turn Over/Export/Import Turn Over/TNW/Total Debt/Maintenance of Financial Ratios.
Major Financial parameters/ratios are as under:- (Rs. in crores)
31.3.2015 31.3.2016
31.10.2013 31.3.2014
Particulars
Audited Audited
Audited Audited

127.07 127.69 128.28

Turnover 120.50

1.27 1.28 1.21

Net profit 1.20

1.00 0.94 0.94

Profitability(%) 1.00

1.78 2.09 2.62

Current Ratio 1.64
-- 7-- - -· - - . -- .
. \ .:. . . "': . . . i.02
r
-I TOL/TNW I
tL - - - - - --.-L--'-'---
4,.04
- ---'-
' _ _ _-_··
· _,___ _ _....:......:...·:-'--
· . ·.:..;_:____~1
,'1 2.06 \-1
ii
7. Market/ Latest Web_Report, if arw, in brief: No sl:lch adverse report_. . ·\
8. Material adverse Report from Credit Bureaus, if any: No $UCh adverse feature noticed \
9. Pro osal in brief:

' . t
P~ge 1 of 43
 .
I••·punJob
.

Q~Jiil il~G'JFI ci1m • ..

notional bonk . . . . centr~l ·Delhi.
Credit Department Conf1dentia 1 Circle office.
SRICTL y FOR INTERNAL USE hip• firm
Ril_endra Place, New Delhi Id Exim is a partners ding of
• Justification for WC Takeover:-M/~ S~y Wor d in the wholesale tra kagin.9 _
/ . - established in the year 2007. The frrm ':> en~~gu~trial ..fabrics and Pa~aJnis-li,-
r paper and paper pr?ducts, P.olyester film , . ~hagwan·~upta and Mr. !h i Mr
Material. T,he partners of the ~,rm are Mr. ~ 1 f K --~t R..., g h N ciw n P t
G upta · Gupta 's 3re reputed bu siness. fa m "", 0 f -the
• - firm. During the las . ·
0
"'"
Rajnish Gu~ta is the Key and Managing partn;; ~ and J1.03.2016 the firm
three financial year ended 31 .03.2014, 31 -03 - 1 R _ 9 crores and Rs.
have achieved a turnover of Rs. 127.07 _crores, =~hieve 127 6 a turnover of Rs.
128.28 crores respectively. They ha~e e st ,ma!~do~0 _ They are presently
130.00 crores for the current financial· year · ·2017nt is satisfactory. The
banking with HDFC Bank and th_e ~0 : 1duct of th e ~ci~uconsidered this as a
promoters are high net worth 1nd1v1duals. We a Crores in the name of
package deal of takeover of Housing Loan of Rs_. 16 ·;,0 r ·t which is under
Mr. Rajnish Gupta from federal B~nk along-w_,th t rs rm! ' housing loan is
consideration with COCAC. The primary security offered !~ al value of the
proposed as collateral security in this proposal. !~e rfsr °/c of the HL
d
collateral security is Rs. 30.29 Crores a~e_r pro~• mg or ·ce; offered by 33
outstanding. The proponents are not sat1sf1ed wrth the servr . F Tr f
HDFC Bank ROI and requested us for sanction of Cash Credit acr 1,es 0
Rs. 25.50 Crores
' including takeover of existing· · 1·1m1·t of Rs · 20 . ·75 crores
maintained with HDFC Bank. The firm has immense potential and vaSt
market of its products due to manifold increase in demand .of the paper. .
10. Source/Timing of Promoter Contribution, with justification:- This rs a ~x1stmg_ trading
unit. The required Promoters contribution has already been inc:fucted m t~e firm . The
TOL/TNW is 2.06 as on 31.03.2016 which is commensurate to the banks exposure
and norms. ·
11. Status of other projects/ Adverse performance of group concerns, if any, in brief :-
There is .no adverse performance in the group concerns. .
12. Primary Security :- The primary security comprises of Stocks of paper and paper
products, Polyester film and Packaging Material and Book debts
13. Collateral Security:-
Extention of charge over the property no. 78/31 BLOCK D, PLOT No. 3 , NEW Rohtak
Road.Karol Bagh, New Delhi, proposed to be kept as security for Housing Loan of
Rs. 16.50 Crores in the name of Mr. Rajnish Gupta and his wife Mrs. Rajnish Gupta.
Property is valued at Rs. 52.24 Crores, Which will provide the following coverage for
the said CC limits.
Property value: Rs. 52.24 Crores
Housing Loan 0/s+prop: Rs. 16.50 Crores (Approx.)
133% Coverage for HL: Rs. 21.95 Crores
Residual value for CC: Rs. 30.29 Crores
14. Justification for lower pricing_. if suggested: - The main reason behind shifting of
. account from HOF~ bank !s higher rate of interest which is presently 11.80% p .a. The
group e_xposure with various banks are approx Rs. 75.00 crores. The collateral
offered is more than 100%. We can also canvass other good business from this
- ~ - . L . C . . . . . __ _ _ _ _ _ _ _ _ _ _ _ _ _J -~
 .t-i-t tiJll'iil ~~alc'l ~<Ii
punJob national bonk
Credit Q,:-oartment Confidential Circle Office, Central Delhi,
SRICTL Y FOR INTERNAL USE
Rajend10 Place, New Delhi

Credit Apprals~I Fonnat fo~ limits abov~ ~s.2 crore (f~r MSME abov~ Rs.5 cror~)

·1. Proposal Tracking No. 1522002016000220

Dated:27.09.2016
2. CRR • 81 • (Score ~2.90) ABS 31.03.2016 under Internal
Risk rating Mid-Corporate model signifying -Average
Risk(yet to be vetted)
3. External Rating: Stipulated to get the external rating done
as per bank's guidelines within 3 months from sanction.
4. Activity: Trading of paper and paper products, Polyester
film and Packaging Material
5. Group: No group
6. Banking: Sole
7. Lead Bank( if applicable):NA
8. PNB Share (if applicable): NA
9. Project Loan{ if aoolicable) NA
Sanctioning Authority: COCAC

Name of the Borrower: MIS SKY WORLD EXIM

Branch Office: Rajendra Place, new Delhi
Circle Office: Central Delhi
Rs.in crore
FGMO: DELHI

Subject: To consider
A Sanction of Takeover cum Enhancement of Working Capital Limits · -
Proposed
Existing with HDFC
! 25.50
20.75
f FB 0.00
2.00
i NFS 20.75
25.50
I: Total I
8. (i) For Fresh Term Loan: NA with resent 0/S Rs. NA
ii For Review of Term Loan Limit Rs.
C. Approval of ROIi Service charges as under:- Rs. In crore ,
Facility Existing Proposed Applicable ·'Income Earned ;/
Rate
~ ~~
Last year - -Current
- -year--1

II . u~
, - - -~ ---1~ - -t;,:;-.,:.;-;;-rviit~~:;,;;,;,r.-;-;l~nt~t.-t.-;-N~o~n~-.!.'..:in~tt-+ N=-=-
A~In~tt::...
. +-~N~on~-:.'.!.in!!!tt~
CC NA MCLR+2.9% MCLR+2.9% NA NA NA
1
I1 Rate of 0. 75%coll 0. 75%coll /
1
1..,0 n,. ,.6. (0 ... ,. I;, . I
· omeres1 I i
-I
I
_.....
i
.-J.
r-~---
i
j
-_,/. I
;
I -~ -~ :·:.~~"'.: :.-. >~ ,,.- 1JA5% -
..l:1.-45% ---· l - j C
., ...
..
...

I
_, lI
.-
. ., ..
- I. -· · i /NA ... Rs. 150.00- Rs. 300.O0 -·· I· ,r-_v<-
I .
i l II
I!
Processing
j I
I per lacs i.e. · per Lacs i.e. I .1 I
~ee ·

I /Upfront Fee I
I

/NA
Rs. 3.83
Lacs +ST
NA
Rs. 7.65
Lacs +ST
NA I
I
I 1
I
• • ~- J • •· , , ••
.. • • •
t. . . .,....;- .
I . :t
. . ••,·-~~---~-,...
; •.~
.. · ;·
Q~lcil c?i~GJc-1 cil~ I
;I•
, .. ) ;·
.- pun1ab national bo"k c ·ir~le·office, centr~i Delhi.
dit Department Confidential
SRICTLY FOR INTERNAL USE
endra Place t New Oe lh'I
Lead · Bank NA NA NA
fee
.i d. ";". ..- .... .
Comm. on NA NA NA ·- : ..
l'JFB . . i l
b ther ___,_ - NA . ~s per Ca rd ~ s per C:a r:
I
charges, if Rate Rate I I I I
anv

D. Approval of other Issues, if any:

1. Req~est for reduction in Processing fee by 50% on applicable rates. .
2. Continuation of Existing CC Accounts as Current And Other 2 current Accounts with HDFC for•
enod of 3 months. ·

PART-I
Fresh cum enhancement including takeover of CC limit of Rs.20.75 crore fro,
Whether
fresh/renewal/ HDFC Bank
enhancement
Asset Classification as NA, fresh account
on and last PMS
score & rank
Validity Reasons.for
Credit Risk Rating by
Date of Score ABS date* dei:1radation
Bank '.
Ratina NA .
26.10.16 52.90 31.03.16 31.12.17
Credit Risk Rating Present 81
NA NA NA
Previous NA NA NA
Facility Rating
20.09.16 1.96 31.03.16 31.12.17
Present LB1 NA NA
NA NA NA
Previous NA
We may stipulate a condition for getting external rating done within 3 mont
Rating from External
Agency (The of sanction.
external rating should be
mapped to the internal '
ratinq)
Whether priority/non Priority
priority sector as per
PS&LB guidelines Sub-
sector may also be
mentioned.
Whether MSME
Agriculture/Retail/
SME/Others (Please
specify)
a) Whether Sensitive
Sector-
Real Estate/Capital
NO -
Market .
b) Aoolicable Risk weiaht 150.00%.
Consortium/Multiple
Bankina NA
Lead Bank NA
PNB's Share %
100% (after takeover from HDFC Bank)

.
Page 4 of 43
.,
or a t-'lac e l'l t: W U t:;;:1 1 1 1
I
'

1.8 ..2016 I
Date of applicatipn \
Date of receipt of At BO on 06.09.2016
proposal-
At B0/CO/HO(specify
the 3 dates)

Date of acknowledgemer .-
to the party ..
Date of clarifications, if
any,
received at CO/HO
-
Date of submission of
orooosal Fresh
Date of original sancon

Date of last sanction

Authority/'ln Principle'
Consent/
N BG clearance with date
Remarks: NA, fresh account
Customer ID No. NA, fresh account
Activity code (as per
Ladder)
No Major Group
2 Borrower's Profile Shop# 1&2, 60/30, New Rohta\< Road,
a. Group Name Karo\ Baoh,NeW Oe\hi-110005
Address of Regd./Corporate Office (with e-mail
b. Mr. Rajnish Gupta
ID)
Name & Te\./Mob. No. of the CFO (with e-mail Mob:9810179126
c. RainisnQupta'\975®vahoo.com
ID) Khasra · No. 70/25, 70/21, Mukhme\pur
Oe\hi -
Vi\\age Jindpur, A\ipur,
Road,
d. Works/ Factory I
110036
Factory II Partnership Firm
Constitution and constitution code as per CBS &
e. 03.05.2007
ladder ,
Date of incorooration/Establishment .. Fresh
f. of paper and paper products,
Dealino with PNB since Trading
Q. ' Po\vester film and Pac\<.aQinQ Materi a\
h. Industry/Sector
-~ . \ .,.._ ;- .i ,,.. p ,~ ~-i -. ' J
- ----- NA
--- - .,: ; .-... .-!

Cor orateJdentib No:.{C\N . . ., . ..

I

3. Partners (S/Shri)

Page S ot 43

·o t -...::.,

. ,, : , ·
l•J Q311c11
..... pu·
Credit D
b ~al~ aim•
n10 notional bank
..
epartment ·
Confidential Circle Office, Central,Oelh i,
Rajendra Pla~eRICNTLY FOR INTERNAL USE
N ew Delhi
ame and PAN
De . . Address/Mobile No.le-mall WhethQr Promoter/
· signa t'0 " address of Main Directors/ Professlonal/N<?minee

Guarantor Directors/ . ·. . .. .... .I.

Key persons

1. Rio: 61/23, Block 61 Ramjas AAOPG5940M

Partner
Sh.MrRajnish Road,KarolBagh,New
Gupta Oelhi-110005
s/o 008-01.01 .1975
Sh.JaiBhagwan alkagarg 1973(@.gmail.com
Gupta Mobile no. 9810179126

2. . Rio: 62/15,East Park Road AADPB3907C

I ' P~rtner.
Sh.JaiBhagwan Karol Bagh, New Delhi-
Gupta
110005
s/o Jaggannath
008-20.10.1943

alkagarg 1973@gmail.com r

Mobile no. 9810179126

KYC of firm, promoters/ guarantors have been verified by the branch.

a) If any of them, in the list of Caution Advices circulated by NO

the Bank from time to time/RBl's/Willful defaulters'
list/Caution List of ECGC. If yes, action taken
b) If any one of them connected in the past with any No
NPA/OTS/ Compromise/unscrupulous defaulters
c) If any of them, related to Directors/Senior Officers of No
PNB:
d) i) Manaaement Change since last sanction, if any NIL
e) i) Confirm~tion that CRs have been compiled/reviewed in YES, there is no adverse feature
terms of extant guidelines (presently L&A Circular No. 33
dated 31 .03.2011) and comments on adverse features, if
anv
Date Name of Advers
ii) Confirmation that CIRs have been drawn from
(CIBIUEquifax/Experian/ High Of CIC feature
CICs data base
Mark) and comments on adverse features, if any: CIR if
observ
27.07. CIBIL Nil
2016 and ~-
Equifax .
AGM branch has confirmed U
CIBIL, EQUIFAX, HIGHMARK
firm, all the allied concen
promoters/ guarantors have be
extracted & no adverse featu,

Pugc 6 of 43 .
~." ' tj~lal iilil>
c . ()UnJab national bank Circle Office, central Delhi.
red1t Department Confidential
RaJ·end p SRICTL Y FOR INTERNAL USE
1d lace New Delhi - - - - - - - - -- - ----r-----:z:-::::::7:n-:~-;;;;;;;;-"e:xcejptl
are observed in the same except
below.
Branch has informed that Fr~sh
CIR have been extracted v1d_e
report dated 28.09.2016. There is
no adverse feature in CIR of th e
firm. However 3 accounts of Mr.
Rajnish Gupta, Mr. Jai Bhagwan
Gupta and Mrs. Nisha Gupta
(Common for all three) are shown
having overdue for more than 30
days but the statement of account
of all these accounts from the
respective Fl/Bank have been
obtained and it is ensured on the
basis of that the said accounts
have been regularized and now,
there is no adverse feature.
iii) In case of Joint Lending/multiple banking/consortium NA
lending arrangement:
AGM branch has informed that
• Confirmation that Due Diligence Report from a professional Due Diligence report dated
(i.e. Company Secretary/ Chartered Accountant/Cost 01.09.2016 of Mis SinghiBikash
Accountant) from bank's approved CA/CS on prescribed and Associates has been
format (L&A Circular No. 31 dated 28.04.2012) have been received and no adverse feature
obtained. has been observed in the feport.
If qualified, whether rectified?
Adverse features, if any, are discussed in the proposal AGM branch has informed that
(copy to b~ enclosed with the proposal) Genuineness of signatures of CA
on Audited Balance Sheet of FY
2015-16 has been verified and
letter held on record.

• Confirmation that Sharing of Information on prescribed format

NA
[L&A Circular No.31/2012 & 99/2012 (compulsory)] have
been obtained from all lenders and adverse features, if any,
are discussed* in the: proposal (copy to be enclosed with the
proposal) No adverse report about the
iv) Views/comments for the adverse report about the
borrower/guaran!or, if any, in the
borrower/guarantor, if any, in the public domain/media:
public domain/media

• v) . Confirmation . . that report on prospective AGM branch ha$ confirrred that

1 borrower/guarantor hasbeen checked in FRMIS database report on prospective borrower
/ ofPNB to check their antecedents, so asto pre-empt fraud ' &guarantors lalso covers :
/ recurrence by thes·ame person/entity (fRMD .Circ.1,ilarNo-131 : proR1oter$ .df~li.~d~oncerns) Jl?s
dated 01.09.2015). - neen..checRed in-FRMiS database-

I . • & no adverse feature observed.

C
' - . .. ... , _ , .
·- .
' . ..
.,,_
,
' .. -' ·
• :..
Page 7 of 43
., ' -.
.
r . • .
\ti punJab
." . . ....
'ClJllcil -~~ulFI ai~
. national bank .
C red1t Department - -
Confidential
'

Circle 'o ffice. central Delhi.

Ra1·endra Pl SRICTL y FOR INTERNAL USE

. ace, New Delhi
f) Share Holdin Pattern ~s on : NA, It's a firm- Amt. in %
N. f . No. of Rs. Lacs Holdin
_~r11~ o f
th~_ romoters/MaJor Share holders . _- ~hares
__,
~ romoters Holding - - I
. --
Fis/ Mutual Funds/UTI/Ba nks/Fll s
NRl's/OCBs
Public
Total No
a) I Whether Shares oledaed to anv Bank/Fl/others
i If ves, Percentaae of shares pledaed

Institution
. Purpose

h) Brief history
Mis Sky world Exim is a partnership _firm incorporated on 3rd of May 2007 under the
Partnership Act 1932. The firm is having its registered office at Shop# 1&2, 60/30, New
Rohtak Road, Karol Bagh, New Delhi-110005
The firm started the partne;..hip wtth partners namely - Rajnish Gupta and Ajay Gupta. T_he
firm has been established for carrying out the business of trading of paper, Polyester Film
and Packaging Material. Mr. Ajay Gupta has resigned from the firm . on 31 .12.2010 and a
new partner Mr. Jai Bhag~~n Gupta has been appointed in the firm.

ABOUTTHEPROMOTERS
The firm presently has two partners namely Mr. Rajnish Gupta and Mr. Jai Bhagwan Gupta.
Brief profile of the partners is given below:-
1. Shri Rajnish Gupta:- Shri Rajnish Gupta is a graduate in commerce, aged about 39 years,
is in the business of trading of Paper for the last Fifteen years including the experience that
he gathered being in family business. He possesses vast exp_ e rience of dealing in trading
business and has frequently travelled to USA for business trips. He has good knowledge
about international business: He has sufficient skills to handle foreign exchange business
and to deal with foreign clients.
2. Shri Jai Bhagwan:- Shri Jai Bhagwan is a retired Government official. He later on joined
the business of his son and now provides good support in handling various miscellaneous

works of the trade. ·

4.A Facilities Recommended : (Rs. in Crores)

Secured/Unsecured along
Existing Proposed with the basis thereof
With With PNB
(As per RB l's_guidelines)
HDFC
Nature . . -
Fund-Based 25.50 Secured \
' 20.75
CC(H)

, - -
WCDL

Page 8 of 43
r •~\II punJab national bank
d~1a1 ~~a1F1 ciim confidential Circle Office, Central Delhi,

Credit Department
SRICTL Y FOR INTERNAL USE
R ajendra Place, New Delhi - -
FOBP/FOUBP/FABC
- -
Others
20.75 25.50
Fund Based Ceiling

Non Fund Based 2.00 0.00

ILC/FLC
-
ILG/ FLG - --.
!

-
Non Fund Based Ceiling
-
Term Loan
- -
Exposure Limit for capital adequacy '
on account of all derivative products.
Hedging:
Forward Purchase/Sale contract
Limit:
Others: 20.75 25.50
TOTAL COMMITMENT

AGM branch has informed that the composition of total purchases reflec)~ that th7 direct
imports are negligible utilizing the channe_ls of indirect imports. Since the quantum of imports ·
is negligible, the need for non fund based facility has not been felt to avold cumbersome.
procedures involved in the LC based transactions. ·
(Rs.in crore)
4.8 Our Commitment and Maximum Permissible Exposure Norms
As per Exposure Norms \
%age of Bank's Capital
Existing Proposed \
Funds as on
31.03.2016 Amount (o/oaQe)
3589~.oo 15.00%
8974.00
25.50 0.001 14358.00 40.00%
Companv - 0.001
25.50
Group -
4.C Exposure of the Borrowing Concern from PNB Group: NIL

n last 12 months, if any: NIL

4. D Short Term Loans/Adhoc Limits sanctioned by PNB i_

• 4. E Details of facilities provided outside consorti_um including exposure on account of

• derivatives, if any: NOT AP_PLICABLE · • .. .

5:_s,oetail of loan.s fJom oth~r. Banks/f:ina,ricial klstitutions/QIIJ.''' l!)stitutions - (including we

llmrts, Term Loans,-Lease, ICDs, Corporate·L9an~....Rebentu_res etc.)- ·: . - ·_ .: . . "' · _
. .. , (Rs. in Cror.e)

T F~cility Balance O/s I Overdue, if any Rate of Interest

Name ·ot the Bank/Fl As on AuQ-16 f
Sanctioned 14.50%
0.85 I NIL

t
Business Loan
IIFL

'o ,, ... "

r
.. .
.. . - 0
Page 9 of 43
 ... . . . .
r . :·ii~-.~· ~er, ..-:.~.ti~'~-...
Cred't
1
DPU':lJab national bank" j

epartment . Circle Office , Central Delhi ,

wv;~R
Confidential
. R~jendra Pla~:'~!l INTERNAL USE
e i
IIFL NIL '14.50%
Bi.Jsiness Loan 7.34
KOTAK MAHINDRA NIL 21 .00%
CAR LOAN 0.41
KOT-AK MAHINDRA NIL · Zf.00%.
· CA~ LOAN 0.45 · 1°1:45% ·. •I
., .
'--- - - SIDBI -~usiness- Loan 8.66 ---
NIL
- - -
~GM branch has confirmed that all the :above mentioned accounts are running regular& are
rn Standard category.

AGM branch has informed that these above business loans are against IPs owned by
promoters, their family members, allied concerns.

(ii) Non-interest Income/Service Charges by other Banks:NOT APPLICABLE

5.C_ Credit Rating by agencies {CRISIUICRA/CARE/FITCH (INDIA

Rat,ngs)/SMERA/Brickwork} with purpose of such rating. : ·

The external risk rating on the basis of ABS as at 31.03.2015 has not been done.
However we have already been stipulated to get the external rating done within a period
of 3 months from the date of sanction . .

5D. Details of Working Capital Limits from the consortium/Multiple Banking/JLA: NOT
APPLICABLE

6 Details of Group /Allied/Associate firms and the facilities sanctioned to them along with
· conduct of these accounts with our Bank/ other Banks ·and comments · on adverse
indicators, if any.

AGM branch has informed that the partners in the firm are associated in number of
businesses and having many associate concerns as per below table. Details of these
companies are given in annexure II. However, details of credit facilities enjoyed by them
are given below. Further, it is confirmed that all these credit facilities are running
satisfactory and regular with the respective Banks/Fis as per CRs obtained from them.

(Rs. in lacs)
Common Loan
Bank Amount Loan Type Remarks
Name Director/Partner
Excellent Trading :
Corporation Bank 500 OD Limit Standard
Company Both
Excellent Trading
Company Both ICICI Bank 21 Car Loan Standard
Excellent Trading
Company Both Kotak 10 Car Loan Standard
Ethenlc Agencies
Pvt Ltd Rajnish HDFC Bank 600 cc Closed
Ethenlc Agencies
HDFC Bank 31.34 Car loan Standard
Pvt Ltd Rajnlsh
Ethen I<;, Agencies AR Trade Exlm
Pvt Ltd Rajnish Private Limited 100 LAP Standard

Ethenic Agencies
Pvt Ltd Rajnlsh ICICI Bank 85 Car Loan Closed

Ethenlc Agencies
Pvt Ltd Rajnlsh lndusind Bank 184 LAP I Standard
Page 10
. of 43
-:- "I 'tl~lcil «nm
Credit bUnJab national bank Circle Office, Central Delhi,
epartment Confidential
R · SRICTL Y FOR INTERNAL USE
a endr d Place, New Delhi
Ethenlc Agencies Standard
Pvt Ltd RellRare 810 LAP
Ralnlsh Standard
J B Gold Pvt Ltd. Corooratlon Bank 900 OD Limit
Ralnish Standard ·
J B Gold Pvt Ltd ICICI Bank 19.99 Car Loan
Ra lnish Closed
Corporation Bank 186 OD Limit
J B Gold Pvt Ltd Rajnish
Delicious Coco Standard
SIDBI 2000 Project Loan
Private Limited Rajnlsh Corporate Guarantee
Delicious Coco Standard
890 for Sky World Exlm
Private Limited Rainlsh SIDBI
Delicious Coco Reliance Home Closed
F.lnance 900 LAP
Private Limited Rajnish Corporate Guarantee ; .
BMRC for Excellent Trading
Constructions Pvt Standard
Corporation Bank 475 company
Ltd Both
BMRC Corporate Guarantee
Standard
Constructions Pvt 1600 for Sky World Exlm
Both H.DFC Bank
Ltd Corpc;,rate Guarantee
DMC for JB Gold and
Standard
Infrastructure Pvt 1800 RoshniJwellers
Rajnish Corporation Bank
Ltd Corporate Guarantee
Standard
Corporation Bank 900 for JB Gold
GD Capitals pvt Ltd Rajnish Corporate Guarantee
·Standard
900 for RoshnUwellers
·Rajnish Corporation Bank
GD Capitals pvt Ltd Closed as per BS but
standing in ROC
before takeover in
Centurion Bank of
235 2010 -~ Closed
Rajnish . Punja,_b
GD Capitals pvt Ltd

Facilities to Group Companies· As Under:- , (Rs. in Lakhs)

Name of the Ill

Company I II IV TOTAL
J.B. Gold Delicious
Ethnic Excellent
Private Coco
Nature of Agencies Trading
Limited Water
Facilities Private Company
Private
Limited
Limited*

Domestic Exoosure 2000.00 500.00 3400.00

0.00 900.00
FBWC
0.00 0.00 0.00
0.00 0.00 100.00
WCDL
0.00 0.00 0.00
100.00 0.00 184.00
NFB
184.00 0.00 0.00
Term Loan 2000.00 500.00 3684.00
284.00 .- 900.00
Total , , '
Overseas Exposure 0.00 0.00 0.00
0.00 0.00 -,
ECBs I n.) 00 --+-- - 0.00
I
0 .00
- - - - - + -_::_~:.__-,
-- o:.....,,_.
1---'- ._d_, - - - - - ~- +- ~
-
_._..,_..._ _-+-_O_._o_o_ _ _
!'\1

900.00 2000.00 5.00.00 3684_.00

. ..: 284.00
Gra.nd Totar-·:
·lndusind . - -eorporation s1osr · ~Go_rpo~tion
Sanctioned by Bank ·
Bank Bank
29.12.12 25.06.13 23.02.16 30.09.15
DOS NA NA
NA NA
CRR 1.51 0.33
4.41 1.25
DER

. . i ·'· .. '7!!· .
. • Pagello~
 . \14 tj~ia1 ~lllcl~. cilm
" .·. . l

Circle office, central Delhi,

. pun1al:> national bank confidential
Credit Department
.R . SRICTL Y FOR INTERNAL USE 4.06
a eocira Place, New Delhi : 1.31 0.04
· Current Ratio 2.33 st nd rd
· ·""- AGM · 1,ranch h~s informed .that all the above .accounts ar~ regul~r &. in · a a ·
cate'gory with vario us banks · ·
1. Delicious Coco Water Private Limited : Corporate guarantee of Rs. 890.00 Lacs given

2. on
BMRCbehalf of Sky world
Construction Exim Limited: corporate guarantee of Rs . .201s .oo Lacs given
Private . on
the behalf of SkY world Exim to HDFC Bank to secure cash Credit Fact11t1es.
3.a. DMC Infrastructure
Corporate Private
guarantee Limited:
of Rs. 900.00 given on behalf· of J 8 Gold Pvt Ltd for Rs. 900.00 ·
Lacs to Corporation Bank to secure Cash Credit Facilities.
b. Corporate guarantee of Rs. 900.00 given on behaW of RoshaniJewellersPvt Ltd for Rs
900.00 Lacs to Corporation Bank to secure·Cash Credit Facilities.
4.a. G.D. Capitals
Corporate Private Limited:
guarantee of Rs. 900.00 given on· behalf of J 8 Gold Pvt Ltd for Rs. 900.00
Lacs to Corporation Bank to secure Cash Credit Facilities.
b. Corporate guarantee of Rs. 900.00 given on behalf of RoshaniJewellersPvt Ltd for Rs.
900.00 Lacs to Corporation Bank to secure Cash Credit Facilities.

AGM branch has confirmed that Mis Sky World Exim has not given any corporate
guarantee anywhere. As mentioned in the proposal in point no. 6, these said companies
i.e. Mis Delicious Cocci water Pvt. Ltd. and Mis BMRC construction Pvt Ltd have given

guarantees on behalf oi M/s Sky World Exim.

Further details are as per Appendix - II

7.A(i) Financial Position of the Company as on close of last threeflnancial years,

estimated for previous year and projected for the next year (Rs in Crore)

Previous Estimates Projections

Two One for Current for the next
years year year
years Year
earlier (31.03.16) (31.3.2018}
earlier (31.03.2017)
(31.3.14) (31.3.15) Proiected
Audited Estimated
Audited Audited 138.00
128.28 130.00
127.08 127.69 0.01
Sales 0.01 0.01
0.02 0.00 · 4.33
Other Income 1.21 1.55
1.26 1.27 4.36
Operatina ProfiULoss 1.22 1.56
1.27 1.28 · 4.36
Profit before tax 1.22 1.56
1.27 1.28· 0.12
Profit after tax 0.16 0.14
0.27 0.20 4.47
Depreciation 1.37 1.70
1.54 1.48 8.72
Cash profiU (Loss) 5.62 6.12
i - 5.35 5.56 25.34
EBIDTA
• 17.28 19.76 21.45
Paid UP capital 12.11 - -
- - -
·Reserves and
Surplus excluding
revaluation reserves
- - -
Misc. expenditure not - -
written off - -
Accumulated losses - - -
Page_12 of 43 -
\ll ·ti~n'al
Pun b aim
Credit Depa)rtC\ national bank .
ment
Ra· SRICTL Confidential Clrcle Office, Central Delhi,
Jendra Place N y FOR INTERNAL USE
Deferred
L·
T
ax
ew Delhi
~ tY/Asset • - - - -
--ToDg ible Net Worth
12.11 17.28 19.76 21 .45 25.34
Share application
,_monev - - - - -
'-Total Borrowings
33.36 31 .82 39.06 41.89 42.01
_Secured
30.58 29.80 36.80 39.63 38.03
_Unsecured
2.78 2.01 2.26 2.26 3.98
- Oth er Investments -
~Total Assets
0.04 0.00 - -
54.03 52.22 65.79 67.52 71.50
Current Assets 52.67 51 .06 64.87 66'.74 .70.84
Non-Current Assets - - - 'f - -
Out of Which Net 1.36 1.16 0.91 0.78 0.66
Block Assets
Net Workina Capital 22.88 26.72 36.99 37.06 41.19
Current Ratio 1.77 2.10 2.33 2.25 2.39
Debt Equitv Ratio 1.00 0.61 . 0.92 0.76 0.65
TL/TNW 1.00 0.61 0.92 0.76 0.65
TOL/TNW 3.46 2.02 2.33 2.15 1.82
Operating 1.00 1.00 0.95 1.20 3.16
ProfiUSales
LTS 24.25 27.88 37.91 37.84 41 .85
LTU 1.36 1.16 0.91 0.78 0.66
SURPLUS/DEFICIT 22.88 26.72 36.99 37.06 41 .19
sTs · 29.78 24.34 27.88 ---- 29.67 29.65
STU 52.67 51.06 64.87 66.74 70.84
' SURPLUS/DEFICIT -22.88 -26.72 -36.99 -37.06 -41 .19

PBT & PAT are same as taxation has been appropriated in the hands of partners.

Branch has informed that the party has confirmed that all the debtors are less than six
months old.

During FY 2015-16, party has given advance of Rs. 5.00 er each to. 3 concerns namely
Kumar Sales Corporation, Meenu International and Poonam Trading Co. In this regard, AGM
branch has informed that the advances given to 3 concerns are on account of purchases of
stock to be made. Party has informed that the supply of paper and related products has
since been affected in the FY 2016-17. Further it is confirmed that these parties are not
associate/allied concerns. The level of advance to suppliers (part of current assets) has
been proposed toe maintained at Rs.15 crore for FY 2016-17 & 2017-18.

AGM branch has confirmed that there are no adverse features observed in the financials of
the firm.

7 A ,;;~ P eer Gr<' HP Comparison

AGM branch bc;1s_ informed that the pee_r group data 1s not ava11ao1e Witn mem as pan:y 1s
de~ling in1:rading activity
.
& not nianufactur1ng: . .· ., - .~ .. " c .... ;;_· - . . . · .. · .

. 7A (iii) Key Financials upto last quarter (as per published Un-audited Results in case
of listeci companies) .· · . ,· · .
(Rs. In Crore)

Page 14}'43 _
.
- .--· ·.·.-:- ".
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cilW
- Cred·t DpunJab natio()al bank
1 el)artment confidential Circle Office, Central Delhi,

Rajendra Pl SRICTL y FOR INTERNAL USE

.- ace, New Delhi Remark~
Pe~iod Cumulative · Corresponding % · . Accepted
%age
en .ed . position as on position as on change for . achievement . I
:. I · 30,06.2016 30.06.201s 31 .03.201 1 uptq .
. 30.06.2016 -
Saies _L_ ___:__:__ _ L_._L~~~-+-~~~ 1 :::..:.=:____r--=-- ~
"' '1 22~ ·
- G 3 1 96 1 0/ • 1JO 00
.J . ' ....
-
Other - -
income '
PST 0.35 0.29 22.07
PAT - -
NWC 0.24 0.26 -6%
12.32 I
Current 1.82
Ratio I
1.62
15
·I
Ma~~mal decrease in NWC on quarterly basis is temporary as the NWC for FY 2016-17
pro1ected to be more than NWC as on 31.03.2016.

7A (iv) Details of ADRs/GDRs issued by the borrowing company: NA

78. Brief discussion on Financial Indicators (Interpretation/inferencedrawn in

respect of Latest financial/ last FY indicators to be discussed)

Paid up capital/TNW

Reconciliation of TNW (Rs. in ~acs

1 TNWas on close of FY ended 31.3.2015 1728.31
Add: Retained orofit after tax 128.13
Additional Capital 120.04
TNW as on close of FY ended 31.3.2016 1976.48

TNW
In this partnership firm the PAT has been ploughed back into business and small additional
capital has also been brought in so as to make the promoter's contribution commensurate to
the exposure of the bank. The firm would maintain the capital at the estimated level during
the currency of advance.

Sales
Actual sales for the FY 2015-16 are pegged at Rs.128.28 Crore as compared to the sales of
the last FY 2014-15 which was Rs.127 .69 Crore. It reflects the consistency in the demand for
the products. Maintaining the same trends the firm has estimated sales at Rs.130.00 Crore
for 2016-17 in actual terms which is 101 .34% of last year's sales ·which is acceptable.Since.
the promoters have efficient knowledge of business and with their hard work the current year
estimates seem very much achievable and the steady growth of around 6% projected for FY
2018 at Rs.138 Crores is very much on the cards and can be safely accepted with the .
innovative marketing strategies.

AGM branch has informed that the major buyers are Sakshi Sales India, Ridhi Enterprises :
Harilmpex, K K Enterprises, ·shanti Nath Paper Mart and Jagdish Prasad Trading Company.
The major suppliers are Kumar Sales Corporation, Meenu International, Poonam trading Co.,
Ashiana Traders, Sky line Trading lmpex and Venus International. The main markets where ·
the firm is supplying papers are most parts of Northern India including Punjab, Haryana,
Delhi/NCR and HP.
P.age 14 of 43
 .
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Credit o OJab national bank Confidential Circle Office, Central Delhi,
epartment
Rajendra PiaScRICNTLY FOR INTERNAL USE
e, ew Delhi

in th_e Proit is rnl

Further · f armed that pa~y Is purely dealing In the products which are being discussed
mobileS w"osa • however, dunng. the_ FY 2015-16, a single consi~nment of 1903.00 pieces of_
to do th · ere traded on sample basis only. And party has s·ubmitted that they are not going
is on regular basis.
branch has informed that the firm has achieved a sale of 14223 tonnes of paper with
c"roa tumove~ of Rs.66.03 crore upto third week of 1st Sept. 2016. The firm envisages
i ssrng the _intended sale of 28000 tonnes of paper, paper products and packaging material
n this financial year fairly comfortably. AGM branch has confirmed that they have verified the
sales from VAT returns for FY 2015-16 & FY 2016-17 till 30.06.2016.

AG_M ~ranch has informed that the enhancement is being proposed in the CC limit to
m~In_tam the NWC at current level by paying off the creditors to obtain cash _margin and
~uil?mg up the stock lev~I through bulk buying. However, the enhancement in CC limit is
1ust1fie~ by the MPBF submitted as there is going to be a working capital 'gap after payment
of business loans which ·is proposed to be covered through enhanceme.nt and thereby not
affecting working capital cycle.

Other income
The sources of other income are mainly from interest on deposits and there is not much
variation even in the current year estimate. Major income is from the core activity and the
%age of income from core activity vis-a-vis other income mor or less remains unchanged.

Profitability
The Net Profit of the firm was Rs.1.27 Cr. (1.00% of sales), Rs.1 .28 Cr. .(1.'00% of sales) and
R~: 1.21 Crores (0.95% of sales) for the financial years ended 31.03.2014, 31.03.2015 and
31 .03.2016 respectively. This has shown a consistent trend. The profitability of the firm is
estimated at increasing levels of Rs. 1.56 Crores (1.20 %) in 2016-17 & Rs.1.86 Cr. (1 .32%)
in 2017-18.Purchases will be on higher side as compared to sales in FY 2016-17 since Bulk
buying and cash discounts will help the firm in earning the profits, thereby increasing the
operating profits.
The movement in profitability of the borrowing firm shows stability. Actual EBIDTA and _net
profit compared to the figures of last year are al!llost on even kneel. The current year
estimates of net profit of the firm have been maintained and are thus acceptable.

NWCComparative figure of actual/estimated/projected NWC of the firm is as under:-

The (Rs. in Crore)
31.03.2017 31.03.2018
31.03.2014 31 .03.2015 31.03.2016
·year
Estimated Projected
Actual Actual
Actual
- -
-
.
37.06 38.69
.
26.7 1 - 37.00 I
I NWC 22.90
I '
,, - ,

Net Working Capital: . . -.... . ~-;~.,~~:::··; · ~- - --· · ·· --.-· -- , :-, ·

The firm continues to maintain adequate NWC as per the required level

Current ratio: of Inventory,

The components of Current Assets as envisaged by the Firm consist
t /
1~cp?t3
.
~age

..
 .. .

..
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" ' ti-J11a1 ·.~c1f;J' cil°<U
. punJob notionolbonk
C red1t Department Confidential
Circle Office, Central Delhi.

. Rajendra PlaSRICNTL y FO~ INTERNAL USE

. ce, ew Delhi·
~eceivableS, Cash & Bank balance and other Current Assets. Whereas Curre_nt liabilities
inch.,1d~ ~or~ing Capital borrowed from the Bank, creditors, installments of term loans failing
dlle .Within next. 12 . and_ot!ier
.. -~ month~ · miscellaneo~s current _ha
· b'l't'
11 _1es. . ·. · ··

f he current ratio Qf the firm as on 31 03 20 14 ;a~ 1 77 w h1c h inc,r~ ased fo 2 0 as ·of' .

1·?~:2015 on account of infusion of funds into the business and lower level Ol (..urren~
~iabillties. The same is at 2.33 as on 31.03.2016 which has again gone up on account of
induction of fresh funds and reduction in current liabilities. The same is estimated /projected
at ~.24 and 2.27 as on· 31.03.2017/18 respectively. The level of non-current assets is
estimated to reduce and term liabilities will also reduce substantially.

Debt Equity Ratio: The D/E ratio of the firm was 1.00 and 0.61 as on 31-.03.2014 and
31.03.;W15 respectively and it increased to b.92 as on 31 .03.2016. This is estimated/
projected to be 0.76 and 0.72 as on 31.03.2017/18.

Unsecured Loans:
The Unsecured Loans of the firm as on 31.03.2015 were Rs.201 .27 Lacs as on 31.3.2015
which increased to Rs. 226.19 Lacs as on 31.03.2016 on account of funds inducted by
friends and relatives into the business. The level of unsecured loans will be maintained till
the currency of the bank loan.

AGM branch has informed that Unsecured loans taken from Barclays Bank have been
squared off in the month of April 2016. MehakFinpro (India) Pvt. Ltd. is a company which
belongs to a famfly friend and unsecured loans have been procured for the purpose of
b..isiness. An undertaking will be taken from the·firm that the level of unsecured loans will not
fall below the current level.

7C Capital Market Perception: Not applicable

7.D Details of investment in Shares, Debentures, Units or investment of funds

outside the business etc. (Along with comments in case of increase): Not
applicable
7.E Details of Liabilities not accounted for/Contingent liabilities : AGM branch has
confirmed that there are no contingent liabilities of the firm as on date.

Details of derivatives transactions: Not Applicable

7.F Position of assessment of income tax/sales tax/wealth tax of the borrowing

concer~/partners/ proprietor/promoter directors/guarantors:lncome Tax
Returns, of the ·Directors, Guarantor and Borrower has been filed upto FY 2014-15.
Sales tax is not applicable to the product. However, VAT Returns are being filed by
the party till 30.06.2016 and. held on_record. VAT returns have been analyzed by the
branch. Wealth Tax Is not applicable to the party.

AGM branch has informed that for FY 2015-16, due date has not surpassed as of
now and their Gomputation is under proce~s. Hence, the said returns will be filed
soon.

7.G Information on litigation initiated by other banks/Fis against the borrower as per
latest Audited Balance Sheet, if any:NIL
 .I
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Oepartment Confidential
Circle Office, Central Delhi,

~ajendra Pl SRICTL y FOR INTERNAL USE

7.H ace, New Delh i .
Any other adverse features/qualifications In Notes of accounts _as per latest Audited
Balance Sheet, if any: Notes to accounts are not available with the Balance. Sheets.
Branch has infonned that the auditor has not giyen rotes to accounts with. AB~.
however there are no adverse features observed in financials of the firm .

7.1 Overall likely •impact of (7.C to 7.H) on the financial position of the borrowing
-unit:NIL

8. SECURITY
r.
A. Primary
i) For working capital limits: Hypothecation -of stock viz raw material, work in
process and finished goods etc along with book debts of the firm, present &
future. ·

ii) For Term Loan NA

B. Collateral (Information in respect of mortgage of IP to be given only in the

following format:

i) Mortgage of Immovable Properties ; (Rs. in Cr.)

Basis for Date -Whether
Security Area Ownership. Value It.: ,:)'. existing/
Description n Sq ,-·last Present Realisable Valuation
value fresh
Mor sanction book
Sq Ft value
53.64 Bank's 122.08.16 Fresh
~182.67 ~ajnish NA NA
78131 Approvd
BLOCK D, SyYds Gupta and ~aluer,
PLOT No. 3, Nisha
i .e. Mis
NEW Gupta
Accurate
Rohtak ~aluer
Road, 122.08.16
Karol Bagh, Bank's
62.24
New Delhi Approved
. valuer i.e.
UK
Sukhija

As per Report dated 22.08.2016 of Mis Accurate valuer and Mr. J K $_ukhjj~ 1 Empanelled
Valuer, MV of the above-said property is Rs. 67.05 Crores and Rs. 65.31 Crores and RV
,. . ,- J . . .. "· --,~ J , ..., __,: - - -c ,. ~ - ~~o c: - n ~ r•+ i-i ol ,h p ~ ~c .:,- .-. ~ r Q ~ - ..-,-1..
1.,Qm e::, [0 '"'::, . .) ,J, 0 '-r v 1u1t:;, a l lu , \;,. _ -.;, . .:.., v,v , ..,.., , eS;,,C ws, ·• .., •J , ;\ ,.-,ea ___ ,:; r- C· _. · ~> ·_

Manager's valuatiotf dated ·t9-,Q9.20J 6 Vafue;.pfl ~~,@!PP-~rtxlswithin ~ : ·_52:?_4 52.50 ~,!J~-:

Crores. Hence, Rs. 52.24 Crores ha's bcifn accepted as tfie value of. prop·erty. · · · ·' · :· - -

As per·Legal reports dated 22.08.16 of M/s Sanjeev Kumar Jha Associates, Empanelled.
Advocate, Mrs. Nisha Gupta w/o Rajnish Gupta and Mr. Rajnish Gupta are having valid,
legal and Marketable title of the above-said property.
I /
Page !Jpf 43
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Credit Department . Confidential
R . SRICTLY FOR INTERNAL USE
aJendra Place, New Delhi

R es,.d ual value of the property available .for CC:

. · • , Pr~pe~y Vc:ilue: .: . · . -· Rs. q2 .24.Crores .
Housing Loa n O/s+prop: Rs: ·16.50 Crores (Ap.prox.) ·
133% Coverage for HL. Rs. 2 1.95 C,ol-es
Residual value for CC: Rs. 30.29 Crores

As 'per sanctio~ letter of HDFC the credit facilities sanctioned by them was
collaterally secured by· property' situated at 15-A/4, Karol Bagh in the BM~C
Construction Pvt. Ltd. and H. NO. 167, Pocket F-24, sector 7, Rohini. In regard to this,
AGM branch has informed that since we are also taking over the housing loan of the
partfie.rs of the firni Considering that the security in that-is emotionally attached with
the party and having more than sufficient value to secure the facilities proposed in
this proposal. However, it is pertinent to mention that even the residual valu? the o!
property is higher than value of the existing collaterals. Hence, we have not ms1sted
the party for obtaining existing collateral. ·

INTERIM SECURITY: AGM branch has proposed as under:

1. Permission to release the Limits against interim security:

Party has requested :that they are in immediate need of funds as they are having good
b_usiness opportunities coming up for them with immediate funqing requirement. Hence,
_they have ·submitted that till the original property gets released from Federal Bank
through takeover of housing loan, which may take some time, proposed working capital
limits to be taken-over against the following interim collateral securities:

s 1 Security Area Owners Value Basis for Whether

No Descripti.on in hip valuation existing/
'-
SqM Last Prese Realisa fresh
or Sq sancti nt ble
Ft on Mark value
et
value
r· · lei "Q~lal ·~~a'IFI «nil> e central Delhi ,
I Offic •
Circe
punJab national bank confidential
Credit Department USE I
SRICTL Y FOR INTERNAL Valuation Fresh
15.32 13.02
Ra endra Place, New Delhi NA
Built up Property 280.0 BMRC Crores report
1 crore dated
bearing Municipal 0 Sq. Constru s 29.09.20
no. 10425, plot Yds .. ctions
no. 4, Block 15A, Pvt. Ltd. 16 of Mis
Accurate
situated at WEA, Valuers,
Karol Bagh, New
Bank's
Delhi - 110005
Empanell
ed Valuer
.. :
f
I' Valuation
report
dated
05.10:20
16 of ·Mr.
15.91
12.73 Bhupesh
Crore
Crores Chandra,
s
Bank's
Empanell
ed Valuer
6.06 Valuation Fresh
Second 7503. Mis NA 7.13
2 Entire Crore Crores rep9rt
and Third Floor of 24 .Roshni
s dated
Built up .property · Sq. lnfrabuil
29.09;20
on plot no. 65, Ft. d ,,. Pvt
16 of Mis
Metia Khan Ltd.
Accurate
Dump Scheme, Valuers,
MM Road, Rani Bank's
Jhansi Road,
Empanell
New Delhi - ed Valuer
110055
Built up property 91.81 Sh. NA 3.13 2.66 Valuation Fresh
3
H.No. Sq. Nakul Crore Crores report
bearing
167, in pocket no. Mtrs. Chand s dated
F24, Sector 7,
29.09.20
Rohini, Delhi - 16 of M/s
110085 Accurate
Valuers,
Bank's
Empanell
ed Valuer
ffotal 25.58 21.45
Crore Crores
- ' s J

- u~t;
~/ " f \J ., ..., . • Oi , ""- -
w . ( C. a'1,c~~i
-- ".'.! , . ~.4g
•r ~n ,;:,
~ - ,. !..,..w r! .,,:it~
-- ·~. i • ..._ ,
w.n!='-'"'
. -
'-l-:i.--1.( i!""! thi~ ::i1:r.0 1
, ':" ..,
,..,t
l_.... ,
it~p lf
....

·However:_jhe-;.NEQ ·of the all -U1e~e-:pr:,~p7~i~~--h~X~

~ alregdy b~~!1 !3S~i9ned to _Ba~k's ·
Approved Advocate and lhereports·Win be-received -soon. , ·. ·_ · - ·

Ft:Jrther, it is submitted that as .the said properties are collectively having MV of Rs. 25.58
Crores and RV of Rs. 21.45 Crores which is more than the exsiting collateral value given
to existing banker, thereby covering the proposed .exposure to the extent of 84%, branch

Page 19 t1/'3
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Cred·t DpunJob notional bank

1 epartment Circle Office, Central Delhi ,
Confidential
Rajendra Pla~eRICNTL y FO~ INTERNAL USE
, ew Delhi
ih: hereby recommend for this interim arra~gement. Along with this lnterir:r, guarantee of
s 0 '.Nners of .these properties, ._is also proposed by the branch. AGM__(Branc~) h~s
ubmitted t~at as -party -is -planning to sell off the properties proposed in tne mtenrr]
arrangem ent he nce. theYwilrncit-be·able focq11tinue the ·same as colla_
tt:ral. ·. ·. ·· · . . ,

ii) First/Second/Third charge/Paripassu charge (tick mark the appropriate cna rg~J
NA
iii) Personal /Corporate Guarantee
(Rs. in Crores)

Name of Net Worth Immovable Date of

Relationsh
Guarantor property confidential
ip
report
· with
borrower
Prev. Present Prev. Present
Prev. ~resent
As at sat As at As at
31.03.16 31.03.16
Sh.Rajnish 36.21 NA 50.85 NA 19.09.16
Partner NA
Gupta
Sh.JaiBhagwan bartner 0.14 NA 0.00 NA 19.09.16
NA

Smt.Nisha NA 26.89 NA 42.00 NA· 19.09.1q_

Wife of
J
Gupta bartner
·-
NA 1.69 NA 1.10 NA 03.10.16
M/s BMRC Allied
Constructions Pvt. concern
Ltd.
NA -0.19 NA 2.23 NA 03.10.16
Mis Roshni ~Hied
lnfrabuild Pvt. Ltd. concern (Losses in
Bal. Sheet)

NA 3.68 NA 3.50 NA 03.10.16

Sh. Nakul Chand Relative
of partners

AGM branch has confirmed that all the assets as per Net Means statements of
above guarantors have been verified by the branch.

However, party was discussed for providing the corporate guarantee of associates
concern. But they have shown inability to provide the same and submitted that as
there · is no link in the property and there companies. Hence, these guarantees
cannot be provided. ·

AGM branch has confirmed that all the loans and liabilities under the joint and
individual capacity of the promoters/ guarantors as well as the loans & liabilities
- shown in CIBIL,·EQUIFAX. HIGHMARK repGrts have been considered in_ calculation
of their net means.

iv) Comments on changes, if any: NA

P,,~ge 20 of..43
 l•• "Cia:trcn ~--::w -
. , PU
Credit o tlJab national bank
epartment
--_:'IC-1~ ciJi'Ji

Confidential C ircle Office, Central Delhi,

. [
Rajendra Pla~RICNTL y FOR INTERNAL USE
v) e, ew Delhi
st atus of creation of charge: NA
. vi)
Status of verificati~n of the IP
~a_me of the Officer, who Designation PF No. Date of Visit
vrsrted the site/IP
SP Sinah AGM 79730 23.07.16
AK Jain CM 32964 23.07.16
SK Jindal SM-Cr 314571 23.07.16

BM valuation dated 19.09.2016 also held on record.

vii) Status of Registration with CERSAI: NA, however pre c~rsai check has been
done & charge of HDFC Bank has been verified. Afther mortgage of IP at ours, charge of
our bank will be registered with CERSAI.

8. C Security Margin ( Fixed Asset Coverage Ratio - for term loans): NOT APPLICABLE

9. Position of Account as on NA
a) WC Limits
(Rs. in Crore
Nature Limit vs DP Balance Irregularity
FB
NFB
Total
.
'
b) Term Loan: NOT APPLICABLE
(Rs.in Crore)
Loan Disbursed Value of Operative Balance Irregularity, if any
Sanctioned Amount(@ security Limit* outstandina

@ Disbursed on ------
*Note: The Operative Limit shall be as under:
1. In case fully disbursed, fully disbursed amount to be mentioned.
2. In case partly disbursed, partly disbursed amount to be mentioned.
3. In case repayment started, the amount due to be mentioned . .

c) Whether end-use has been verified NA

10.A Conduct of the Account including in terms of restructuring done, if any,
along with details of terms & conditions not complie~ with. Comments on
following should be given
Availment of limit, overdrawings, Routing of proportionate-business in consortium,
routing of sale proceeds, honouring of commitment in non fund based
~ -· ,... - , • . . ,, .•.. ~· • ' •·.:,~+.. , ,,...~ -~:r,~ -.J if
l d~l llll C ::>\ U C ld ll.:> vi L..V/LV ,:. ..:, ., ..:, , .;;; ui l;, .•J l\ ::. ... ,', ... . ;.: _:_ __,: ., , -~- - ~~ -- - • ;;i •. :- 1 e
any an~__c~nduct th_~ reof.:~ · · ··- __ ___
. .. - .
As per CR from the existing banker, account is running regular and is under
standard ·category. . And further it is hereQy informed ttlat there was
negligible returning of cheques in CC account. . However, there were some
ECS returning in the current account due to technical problem on the part of

• . . . .... ·• · _
0 ...,
,:;- :' •\'!-~ .• ,
,.-:·~
. \· i......... ·
. Page 21 ~ 43
a .
 ... .; . \ . .
\II 'ti~ncn·~o1~ a,m
pun1ab notional bank
. Circle Office . Central Delhi.
• . . . ·: ; ~

C red1t Department confidential

Rajendra Pl SRICTLy FOR INTERNAL USE
ace, New Delh.i . • i their CC
HDFC Bank. Party has submitted that funds were availab_le n
· -~ccount but.,..~.ank returned ECS from Current account. .. . h
Furtii er the~e is -~/ such infotm•;tion provided by tt,e Existing· ban_k er , n .l e ·
C R reg ardi ng any LC devolvement. ·
Entire sales , proceeds of- the party are being routed through t~e bank
accounts with HDFC be it Current or Cash Credit. During the period from
01.04.2016 to 31.08.2016 -party has triggered sales of Rs. 48.46 Crores 7
against which credit summations in the accounts are to the tune of Rs. 36. _0
Crores .which is more than 75%. Hence, it is being submitted that party ,s ·1
routing. its sales through banking channel itself.

Regularity in submission of CMA data/ financial statemen~QMS/Stoc~ Statement.

The information regarding no. of cheques/bills returned with_ amount involved due
to financial reasons during the review period should be mentioned. NA

The amounVfrequency of irregularity in the account during the review period along
with time taken in regularization thereof should be mentioned. NA

Current account maintained with other bank other than Lenders, if any and steps
taken for closing the same: As per ABS 2016, Party is having current account
with HDFC Bank, Bank of Baroda and Punjab National Bank. However, the
said accoun'ts are hereby been stipulated for closure as there are no ,
transactions in the BOB and PNB, they will be closed within 15 days.
However, as the Account with HDFC is used alongwith CC Account . -
overthere. The same is stipulated for closure within 3 months.

Specify the details of ECGC claim lodged, if any, during last 5 years. NA

10.Bi) Value of the Account NA

10.8 ii) Deposits with details NIL

NA
10.B {iii) Value of group accounts

10.C Review of the Account and Summary of irregularities under zero tolerance level
and fraud sensitive index pointed out by Bank's Inspectors, Concurrent Auditors,
Credit Audit & Review Division (CA&RD), RBI Inspectors, Statutory Auditors,
observations of Stock Audit Report, Comment on Preventive Monitoring Score
Trends, (and status of rectification of these irregularities) • ·

The details to be given here only as under:

1) Review of the Account NA

2) Summary of out~t~nd~ng irregularities under serious category, zero-tolerance
leve~,. fra~d sensitive mdex, as the c·ase may be, pointed out by and status of
rect1f1cat1on · .
NA
10.D(i) CONFIRMATION

Page, ~2 l:lf 43 .
 ~. · ' leJ
. I
, . . tj--==-
_..,,lcil-G'l~GJFI al<li
c . pun3ab national bank confidential Circle Office, Central Delhi,
redrt Department
R . SRICTL Y FOR INTERNAL USE
aJencira Place New Delhl
'
NA
1. Compliance of last sanctioned terms
NA
.2. Securitv documents are valid/dulv vetted/enforceable NA
3. Prooer charae on securities created Yes
4. Confirm that compafic/directors are not under bank/RBI/ECGC/
CIBIL defaulters/cau ion list Yes
5. Confirm that payment of statutory liabilities is not in arrears
Yes
6. Confirm that no litigation against/by the company is pending
Yes
7. Corporate governance practices are being followed as per (. ,
:
Auditor's report ' Yes
8. Confirm that no deviations are made from usual norms/policy
auidelines
Confirm that Exposure is within bank's internal ceilings/RBI Yes
9. prudential norms
Confirm that Pre-Sanction Inspection has been carried out in
r-tes
10. terms of L&A Cir No. 45 dated 17.04.2013 and reoort is held
Confirm that No third party, except the professional servicesfor
specified purposes such as Valuation, Legal opinion,Certification
Yes
11 . etc is involved in any stage in the loan sanctionProcess.

1 O.D(ii) AUDIT/INSPECTION/MEETINGS
. '
NA
10. E In case of audit conducte·a by RBI - Whether commented/sp~9i~I_:,mentioned
account - Details as per Appendix Ill (B) NA

PART- II

11.A(i) Industry Rating as per IRMD

Party is dealing in the wholesale trading of paper and paper products, Polyester film,
Industrial Fabrics and Packaging Material.

As per LA Circular no. 52/2016 dated 21.07.2016, Paper (Industrial) industry is

Marginally Unfavourable whereas, Packaging Industry is being classified as Neutral.
However, the activity of the party is purely trading thereby. industry rating for the
same can be taken as Neutral.

A.(ii) Detailea Industry Scenario and Comments on management, production and

marketing as well as Borrowers' diversification, expansion, modernization
programme
As per Appendix - IV

-1:2-
Presem Proposal: - 1ne nrm nas app11ea ror raKeover cum cnnancen,e11L uf existin~
- · - · CG,,cJimit-,of·Hs.2075.0Q:lacs frem -HDFQ·to Rs .2550.00 lacs.from. P_fNB,.R~jendra Place to •_-
meet out its increased demand for working capital funds. The assessment the CC limit - · of
has been made on the basis of the MPBF note as per annexure Ill.

cr.V
a) · Justification for ·F und Based Working Capital Limits
i) Sales: ·
(Rs. in

' . . .. .
, '
Page 23 of 43
 • •
\!f ti<>11irr~ii!r<n<'l :r~ .
Confidential c·ircle Office, Central Delhi ,
Credit 6e~~~:~~ational bank

~ajendra P!a~eRICNTL YbFO~ INTERNAL USE 2017 .

, ew elh1 2016
2014 2015 Pro·ected
Audited
YEAR ENDlf':!G 31st March Audited Audited 130.00
·128:28
~27.08
I Dom:~stic Sales· ... o.46% 1 33°/o I

-S:-45% 0.48% I

0.00
% increase 0.00
0.00
0.00 0.00
0.00
Exoort Sales 0.00 0.00 130.00
128.28
% Increase 127.08 127.69
1.33%
TOTAL SALES 0.48%
0.46%
5.45% .J

% increase

Sales Justification:
From the financial statements, submitted by the firm, we have observed as under:
The firm has already achieved a turnover of Rs. 127.08 crores, Rs. 127.69 Crores and
Rs. 128.28 Crores for ·1he financial years ended 31.03.2014, 31. 03.2015 and 31.03.2016
respectively. It has estimated/projected to achieve a turnover of Rs.130.00 Cr. and
Rs. 138.00 Cr. f~r the current and next financial years ending 31.03.2017 & 31.03.2018
resP,ectively. The Net Profit of the firm.was Rs.1.27 Cr. (1.00% of sales), Rs.1.28 Cr. (1.00%
of sales) and Rs. 1.21 .Crores (0.95% of sales) for the financial years ended 31.03.2014,
31.03.2015 and 31.03.2016 respectively. This has shown a consistent trend. The profitabilify
of the firm is estimated at increasing levels of Rs.1.56 crores (1.20 %) in 2016-17 & Rs.1.86

Cr. (1.32%) in 2017-18.

The firm has projected sales of Rs. 13000.00 lacs for the F Y year 2016-17. The firm is
expecting to achieve the projected sales of Rs. 13000.00 lac as the firm is expecting to sell
around 28000 tonnes of paper in the current financial year. The selling and distribution
channel of the firm are flexible to get adapted to both the models of sales Le. on order·basis
and by acting as commission agents. This helps the firm to have extensive coverage of the

market.
AGM branch has informed that the enhancement is being proposed in the CC limit to
maintain the NWC at current level by paying off the creditors to obtain cash margin and
building up the stock level through bulk buying. Moreover the rampant growth in Ecommerce
sector has also increased the demand for paper & packaging items. Now the paper suppliers
need to keep the adequate stocks in order to ensure proper supply to buyers. The domestic
demand for paper is set to surpass supply, with the growing emphasis on education and
alternative uses of paper. The demand for upstream market of paper products, like, tissue
paper, tea bags, filter paper, light weight online coated paper, medical grade .coated paper,
etc., is growing up. These developments are expected to give fillip to the industry. Moreover
the stocking will also lead to cash discounts on bulk buying thereby increasing profitability in

future. ·

Keeping in view the performance of the firm during the last financial year and ihe experience
of the Promoters it is expected that the firm wm be able to achieve its projected sales for the

year 2016-17.
Page 24 of 4:i - . .. . :
1
r
.'c'9f. tj~)ci) ~~o'I~ cilc"'Ti
P'-'nJab national bank
red,t Department
Conlident.lal Circle Office . Central Delhi ,
R .
a1e nd ,d..) Place,
SRICTL Y FOR INTERNAL US E
H I
New Delhi
II
oding Lever
'F>articu1ars <Rs. In Lacs)
Audited Audited Audited 7 Proiected I Proiected I
31.03.20 31.03.201 31 .03 .201 . I ~ 1 .03.201 \
1. Raw Materials & 31 .03.2014 15 6 7
Consumable Soares NA NA NA NA NA \
<Month's Consumotion)
2. Stock In Process NA NA NA NA NA \
NA NA NA NA NA l
<Month's Cost of Production)
3. Finished Goods NA NA NA NA NA \
<Month's Cost of Sales)
. 266.96 986.23 650.22 1510.91 1 ,1oa.05 l
9 davs
4. Receivables - Domestic 29 davs 20 davs 43 days 49 davs l
4164.77 3957.71 4320.95 3629.45
<Month's Domestic Safes) 3 ,841 .78 1
120 days 113 davs 121 davs
5. Exoort Receivables
<Month's Exoort Sales) - - . 102 days
-
102 davs 1
-\
- - - -
-I
6. Advances to Suppliers of -I
Raw Materials/ - - - -
Stores/ Soares
7. All other Current Assets
812.89 99.52 1514.72 1514.58
Incl. Cash/ Bank Balance 1,514.58 \
8. Payables (Creditors)
775.23 275.67 488.90 211.99
(Month's Domestic
25 days 209_ 151
Purchase) 8 days 15 days 6 days 6 days \
!
Justification:

COMMENTS ON HOLDING LEVELS:

Stock:
The stock holding period of firm was 9 days as on 31.03.2014, which has improved in the
coming years. For the F Y 2015/16, firm has estimated/projected its stock holding period
at 29days and 20 days respectively which is satisfactory and acceptable. The same is
expected to rise with the enhancement in quantum of working capital finance and thus it
has been projected at a level of 43 days. Stock holding is · projected to increase on
account of bulk buying and will lead to increase in profitability. Hence, holding level of
Inventory is being accepted at 43 days which is within permiss1ble limits.
RECEIVABLES:
The debtor's collection period of the firm was 120 days as on 31.03.2014· which hovered ·
around 113 and 121 days respectively in the financial years 2014-15 & 2015-16. The
Firm has estimated/projected debtor's collection period of 102 days for the year 2016-17
and 2017-18 respectively which is satisfactory and hence we may accept the same.
CREDITORS:

. The crea,tor payment per10a m me nm, wa~ o uay~ a~ "" ;:, , ·""·"-", ~. .. '"
estihiatecf/projei:tl'!d :creditor's paymentperiod-of tbe firm will _be 6 <:tays. f9r the .year . .
2016/17
the same.respectively Which is as ·per the niiture of the business. Hence we niay ilccept.

Thus the growth estimated and projected is in line with the expected market demand.