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Annexure II
MSME 3

BANK OF INDIA

PROPOSAL FORM FOR ADVANCES TO MICRO, SMALL and MEDIUM ENTERPRISES (FOR LIMITS
ABOVE Rs 25 LAKHS UPTO RS 200 LAKHS)

Br Ref No: Date:

BRANCH: ZONE
Account No : (In case of existing account) CUST ID: (In case of existing account)

PROPOSAL NO: NEW REVIEW: Addition/Reduction/Change in

DATE: Terms/Same Terms
Micro Enterprises -
ACCOUNT NAME:
Classification: Manufacturing/Services
Small Enterprises -
Manufacturing/Services
CIBIL MSME RANK(CMR): Credit Rating (Internal)
Advance since:
Asset Code:
(No/Description)

Business/Activity wise scheme codes (in FINACLE Menu-ACM ’V’)

(i) Facility Code (iv)Borrower Category Code
(ii) Industry Type (v) Purpose of Adv. (BSR Code)
(iii)Scheme Code

Whether
1) Advance to SC/ST Yes/No
2) Advance to Minority Yes/No
3a) Under any Govt. Sponsored Programme /Scheme Yes/No
3b) If yes Name of the Programme
4) Woman Beneficiary Yes/No
(If Yes, mention % of holding)
5a) Whether covered under CGTMSE scheme Yes/No
5b) CGPAN (In case of existing account)
6) VAT / GST Registration Yes/No
7) Whether registered with District Industries Centre Yes/No
(Not Mandatory)
8a) Whether member of any Association
8b) If Yes, Name of Association

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A. BORROWER PROFILE:

1. Name of Account

2. Regd. Office Address

3. Address of Factory / Shop

4a. Premises (Owned / Rented /
Leased)
4b. In case of leased/rented:-
Lease expiry date:
5. Telephone No.
Landline / Mobile
6. E-mail Address
7. PAN Card No.
8. Constitution Individual/ Proprietor/ Partner/ Pvt Ltd Co./ Ltd. Co./
Trust / Others
9. Udyog Aadhar No. / Registration
No.
10. GST Reg No & Date of
Registration
11a. Date of Establishment /
Incorporation
11b. CIN (In case of companies)
12. State / City / District / Branch (if
any) where loan is required
13. Name of Proprietor / Partners / Directors of the firm / company and their addresses :
Name
Date of Birth
Father/ Spouse
Academic
Qualification
Category –
SC/ST/OBC/
Minority/Women
Mobile No.
PAN No.
Residential
Address
Aadhar /
No. DIN
No.
status Prop/part/director

Net worth
Last yr
Present yr

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Experience in
the activity
14. Business / Activity

15. If the account is new,

name of the earlier banker

16. a) Whether the MSME unit is ZED rated

(Yes / No)
b) If yes, Graduation obtained by MSME
unit (Bronze/ Silver/ Gold/ Diamond/
Platinum)

B. ISSUE/S FOR CONSIDERATION:

17. Present Request : New/Review/Additional/Reduction/Change in Terms

18 a. Last Sanction / Review :
18 b Compliance of last sanction terms:
S.No. Directives of the Status of Date by which
Sanctioning Compliance Compliance is
Authority expected.

18c Borrower Exposure details) Total Exposure

nd
Growth in Our Exposure in the last 3 2 Last year Last Year Current Year
years (including proposed)
FB NFB FB NFB FB NFB

C. FACILITIES & SECURITY COVER:

(Rs. in lacs)
19. Type of Existing Proposed Inc. (+) / Pricing* Present Overdues
Facility Dec.(-) ROI/ Outstanding @
in limits Commission Date
Term
Loan
Working
Capital (Fund
Based)
Non Fund
Based

Total
@ Break-up of over dues into Principal and interest with date since overdue.

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20. Date of Value(Our share) Date of Creation

Security Particulars $ valuation (Rs. in lacs) of first/second
report Present Proposed Charge
Principal

Collateral #

$ First / Second Charge (residual value of our share to be given)

# Names of title holder and his/her relationship with borrower

(Rs in lacs)
21. Name of Guarantors
Name Father / Residential Telephone Status Net Worth Aadhar PAN No.
Spouse Address No. (Rs. in No.
(Residence)/ lakhs)
Mobile No
Director-
cumguarantor
Guarantor

• should exclude the value of property/assets mortgaged to our Bank/ other Banks / FIs and also
investments made in the borrower company/firm. In case of corporate borrowers, the status of
guarantor with respect to the company should be given. (Technical/ Nominee Director etc)

22. Existing Banking / Credit Facilities (with other Banks, if any):

Facility Limit O/s as on Existing Securities ROI Repayment
________ Banker Terms
Current A/c
Cash Credit
Term Loan
LC / BG
Others
Total

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23. Name of Associate Concerns & Nature of Association :

Name Address Presently Nature of Extent of Interest as a

Banking with Association Prop. / Partner / Director /
Just investor in associate
concern

24. Relationship of Proprietor / Partners / Directors Yes / No

with the Officials of the Bank / Director of Bank

D. CONDUCT / VALUE OF ACCOUNT :

25. Conduct of the account :( To cover financial discipline including return of cheques drawn
on/drawn by for financial reasons)

a. Cheques returned during the year under review for financial reasons:
No. Amount in lacs

b. Particulars of L.C./devolved and guarantees invoked along with their present position.
No. Amount Favouring Date of present position
in lacs Devolvement/
Invocation

L/Cs

Guarantees

c. Turnover in the Account (Period from __________ to ___________):

Sr No. Particulars Amount

1 Credit Turnover
2 Proportionate Sales (our share)
3 Average Balance
4 Maximum Balance
5 Minimum Balance
6 No. of times TOL/ Adhoc Limit allowed

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26. Utilization of :
Last Year Current Year

Amt. in lacs % Amt. in lacs %

a) Fund Based limits

b) Non Fund Based Limits

i) Export Turnover (Rs. in lacs) ii)

Import turn over(Rs. in lacs)
Earning (Rs. in lacs) Last year(April-March) Current year (Estimates)
Interest
Non-interest income
Total
Yield %

27. Details of ad-hoc /over limits allowed during year under review:
Date & authority Amount of ad-hoc/over Period of ad-hoc/over Present position
limit limit

FINANCIAL POSITION
(Rs. In lacs)
28. Audited Estimated Audited Estimate Projected
Previous last year Last year Current Next year
year year
a) Paid up Capital:
- Equity
- Preference Share
b) Tangible Net worth
(Excl. rev. reserve & Net of
Intangible Assets)
c) Investment in cos.
Of which associated companies/
subsidiaries
d) Adjusted TNW
e) Capital Employed*(total funds

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employed)
f) Net Block
g) Net sales : Domestic
Exports
Total
h) Other Income
i) Depreciation
j) Gross Profit/Loss
k) Net profit/loss (GP-Dep-Taxes)
l) Cash Accruals
(i + k)
m) Net profit/ Capital Employed (%)
n) Current Assets
o) Current Liabilities
RATIOS :
p) Current ratio
q) Debt/Equity :
Total Term Liab./TNW
Total Outside Liab./ TNW
r) Profitability %: PAT/Net Sales
s)
DSCR a) Company as a
whole
b) For specific TL
t) Interest Coverage
u) Inventory + Receivables/ Sales
Workout (d) if item (c) is above 10% of Net Worth.
• Adjusted TNW plus M.T./ Current liabilities.

Comments in brief on financial position /Audit Report /Contingent Liabilities:

F. AUDIT/INSPECTION/MEETINGS:

29 Last Date Remarks/observations

Inspection Findings:
(Primary/Collateral)
Stock audit
For FY:
Consortium meeting
30 a Any adverse comments of Statutory/ Internal/
Concurrent/RBI Auditors and Borrower's
Auditors
30 b Closure of CPA (Authority & Date)
(comment on any specific
direction/qualification, if any)
30 c Insurance (Coverage, validity and adequacy)

G. ASSESSMENT/JUSTIFICATION
31. Working Capital Assessment (should cover acceptability of projected sales):
Previous year Current
year
a. Gross Sales

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b. 25% of Gross Sales

c. 5% of Gross Sales
d. Actual /Projected Net Working Capital
e. (b-c)
f. (b-d)
g. Permissible Bank Finance*
(Lower of e & f)
*20% of the projected turnover is the minimum WC limit to be sanctioned even if the
proponent’s operating cycle is shorter than 3 months.

Holding Period:

Projected
Cash Sales Working Inventory Debtors Creditors Other Promoters
Credit Cycle in Current Contribution
months Assets

32. Non Fund Based Limits Assessment: L.C.s – Guarantees

a) i. Assessment of Bank Guarantee:

(In case of EPC Contractors/ Construction industry detailed assessment in respect of

Guarantees issued for Bid bond, Mobilization, Performance, Retention, Other BGs be
provided)

S.No. Particulars Amount

1 Total Value of tenders participated at any point of time (A)
Next 12 months
2 Success/ Strike rate @ _% (B) (B)
= A * ___%
3 Bid Bonds @ _ % (n%)on value of the tenders (C)
participated – calculated on the assumption that the
EMD BGs are rotated once in months (P)
[C = A * n% * p/12 ]
[A=Total Value of Bid bonds, p = no of months]
4 Performance Guarantees @ % of item 2 (on (D)
average basis)
5 Mobilisation advance guarantees @ % of item 2 (E)
(on average basis)
6 Retention money guarantees @ _% on completion of (F)
works (on average basis)
7 Requirement of Guarantees for (G)
miscellaneous purposes
8 Guarantees required for existing/new
projects (C+D+E+F+G)
9 Add: Outstanding Bank Guarantees as on

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Total Bank Guarantees (8+9)

10 Less: Bank Guarantees expiring during next 12
months including return of bid bonds
Bank Guarantees required
Recommended

ii. Assessment of Bank Guarantee (applicable for others):

Particulars Amount
Confirmed order for Current Year
Projected turnover for Current Year
Estimated BG requirement for Current Year
(a) For Mobilisation of Advance
(b) For Retention Money
(c) For Bid Bonds
(d) For Performance Guarantees
(e) For Financials Guarantees
(f) Others/Miscellaneous
Less : BG expiring in Current Year
Less : BG limits available as on date fo r
utilization
Total requirement during the Current Year
BG Facility Required

b. Assessment of LC Limit

While making LC assessment for raw material, points to be covered broadly are - raw
material being purchased, out of which how much is being purchased under LC, from
where and from whom it is being purchased, whether indigenously or imported and
assessment to be made as under:

a. Total purchases of raw material Rs.

b. Out of which under LC Rs.
c. Lead period (including transit period) days
d. Usance Period days
e. Total period (c+d) days
f. LC requirement (b*c/365) Rs.
Assessment of LC limit should be assessed separately for Imports and
domestic purchases.

33. Project Finance/Term Loan Assessment:

For Term Loans/Demand Loans/Deferred Payment Guarantees
(Including where the company proposes to buy additional machines or balancing equipment.)

PROJECT APPRAISAL BY:

Project particulars

01) Cost and source of finance,

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Tie up arrangement for gap, if any.

02) Details of machineries:

Type of Purpose for Whether Name of Total cost of Contributio Loan
machine / which imported or Supplier machine (in n being Required
equipment required indigenous case of made by
imported the
machine, the promoters
breakup of basic
costs, freight,
insurance and
customs duty
may be given)

03) Amount of advance and :

Purpose

04) Repayment schedule

No. of Amount Frequency Whether EMI

Instalments Initial Date of
Moratorium commencement
Existing
Proposed

Interest during construction period will be serviced; or capitalized at the end of moratorium period

05) Details of security/ :

Value of security/margin
Basis of Valuation :

06) Comments on project :

Appraisal, viability,
Profitability, project-
ions, DSCR, etc.
(Cash flow statements
and projected P&L and
Balance Sheet to be
submitted)

07) Project implementation schedule

along with present status of project :

08) DCCO estimated (for new project):

09) DSRA if any:

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H: Due Diligence:

34. Details of due diligence done.

i. Applicant interviewed on ----------------

ii. Pre-sanction inspection done on -------------- Findings Satisfactory/Unsatisfactory iii.
Verification of Residence /Office/Factory at done on ---------
iv. Inspection of properties to be mortgaged (if applicable) done on-------------
v. Search with Registrar of Companies obtained on -------------
vi. Search Report /Valuation Report on properties to be mortgaged (if applicable)
done on ----------------- vii. Status Report from existing bankers (if applicable) :
obtained/not obtained viii. CIBIL /ECGC/RBI/CFR/ wilful defaulters’ list checked –
Findings :
Satisfactory/Unsatisfactory ix. ROC Charged Registration date (in case of
existing account in the name of company):
x. CERSAI registration reference no and date (In case of existing accounts,
wherever applicable):

xi. Market enquiries --- Satisfactory/Unsatisfactory

xii. Pollution Control Board Clearance Obtained (if applicable) Yes/No xiii.
ID/Address Proof (any of the following) :

a) Passport b) Voter ID c) Pan card d) Driving license e) Aadhar Card

35. Status Regarding Statutory Obligations:

1. Registration under Shops & Establishment Act Yes / No / NA

2. Registration under MSME (Provisional / Final) Yes / No / NA
3. Drug License Yes / No / NA
4. Latest GST Return filed Yes / No / NA
5. Latest Income Tax Returns filed Yes / No / NA
6. Any other Statutory dues remaining outstanding Yes / No / NA

36. CONFIRMATION:

a. Compliance of last sanctioned terms(if No, give details) Yes/No

b. Security Documents are valid/in force Yes/No
c. Proper charge on securities created in Bank’s favour Yes/No
d. Last Audited Balance Sheet submitted by the company is verified Yes/No
from the Balance Sheet submitted to ROC
e. Exposure is within Bank’s prudential Norms/RBI guidelines Yes/No
f. Whether company/directors are under Bank’s/RBI/ ECGC/CIBIL Yes/No
defaulter’s list/Central Fraud Registry
g. Any deviation from usual norms Yes/No
h. Whether directors are disqualified under Section 164 of Yes/No
Companies Act, 2013
i. Any arrears in payment of statutory liabilities by the Co. Yes/No
j. Whether status report/D&B (similar) report, if applicable, obtained Yes/No
k. Auditor’s comments on Corporate Governance Practices followed Yes/No
in case of Limited Companies
l. Pending litigation against/by the company (If yes details to be Yes/No

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given)
m Whether company/directors/firm’s partners/proprietor are related Yes/No
to Bank’s director/s
n Whether Company’s directors are directors in our Bank’s/Other Yes/No
Bank’s Board
o Exchange of information with participating banks has been done Yes/No
in the RBI prescribed format
p Whether a confirmation from the company has been obtained Yes/No
regarding the status of different regulatory compliances.
q In respect of restructuring proposals, flexible restructuring, 5/25 Yes/No
scheme, funding of cost overrun of project, etc., all RBI
guidelines have been complied with
r Due Diligence carried out in terms of HOBC No 103/16 dated Yes/No
22.04.2009 and amended from time to time
s Whether Asset Status with other Banks as per CRILC data Yes/No
t No Third Party is involved at any stage of processing/appraising Yes/No
the Loan/Credit facilities.

37. Early warning signals observed:

1 Financial Remarks
a) Persistent Irregularity in account Yes / No
b) Defaults in repayment obligations
c) Frequent Devolvement of LC / Invocation of BG
d) Lower credit summations viz a viz Sales
e) Sales transactions not routed through CC account
f) Declining Current Ratio
g) Operating losses / Net Losses
h) Erosion of TNW
i) Opening of accounts with non-lenders
j) Large Transactions/outstanding in related companies.
2 Operational & Physical
a) Low activity level in plant
b) Disorderly diversification / frequent changes in plans
c) Overdue bills
d) Return of outward bills unpaid / dishonored cheques
e) Low inventory movement
f) Non-payment of wages / power bills
g) Frequent labour troubles
h) Declining profitability
i) Loss of critical and important customers
j) Frequent return of finished goods

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3 Loss of Market Reputation

a) Court cases against the unit
b) Inability to raise supplies on usual credit terms
4 Attitudinal Changes
a) Avoids contact with branch
b) Non / delayed submission of data and financials
c) Fudging of financial statements
d) Dissension amongst partners / promoters
5 Others
a) Adverse impact on change in Govt. Policy
b) Raid by IT/Sales Tax/Excise Officials.
c) Emergence of new competitors / technology
If yes, suitable comments to be given as a separate para under Branch comments

I.
Position of Accounts as on (Rs. in lacs)
Facility Sanc. Limit Value of Drawing Drawing Limit O/S Amt.
Security As Power
on _______
Fund Based

Non-Fund
Based

J. FLOW CHART:

Date of Application:
Date of Branch Proposal:
Date of submission to Risk Dept. for Rating (if applicable)
Date of receipt of Rating Report
Date proposal received at Zone/ NBG (if applicable
Date of receipt of Proposal at Head Office (if applicable)
Date of receipt of clarifications at Head Office
Remarks

K. BRANCH COMMENTS & RECOMMENDATIONS: (in brief)

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Brief details of Management, Business activity, group concerns, customer

concentration, previous limit history, Banking arrangement , credit history and any
other special observations during due diligence (site visit/inspection etc).

Separate paras for:

• Credit Rating
• Pricing/Rate of Interest,
• Security, Non-compliance (if any),
• Other matters/developments.
• Cross Selling

L. ZONAL/HEAD OFFICE COMMENTS & RECOMMENDATIONS ;( in brief)

M.SANCTION of:

(Rs in Crore)
Limits Existing Proposed
by ZO/Br.

Term loan
Working capital (FB)
1.CC/OD/EPC/PCFC
Non Fund Based
1.LC(I/F)/BG(F/P)
Total/Maximum Limit

II. APPROVAL FOR:

i)
ii)

III. SUBJECT TO:

a) Pre-Disbursement terms and conditions
(i)
(ii)
b) Post-Disbursement terms and conditions

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(i)
(ii)

c) All other terms and conditions proposed by Branch / ZO / NBG

N. AUTHORITY FOR SANCTION:

(Reasons for referring the proposal/memorandum to this Committee):

Submitted for sanction/approval, please.

Signature with Name

Designation & Date

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