CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028

PH: 011 2589 6370

A/C M/S ARVIND CONS CO.

BRANCH : SME NARAINA PROPOSAL

E-24, NARAINA VIHAR, NEW DELHI 110 028
SUBMITTED TO : SME Sulabh-II
REF.No :
DATE :
: M/S Arvind Construction Co. (Prop. Shri Gurpreet Singh)
– Takeover of Working Capital Limit from Syndicate Bank, Barakhamba Road,
New Delhi.

I. BRIEF DETAILS:
SOLE BANKING Existing Proposed
Priority SME- Civil Contractors ASC Code New A/c New A/c
Small
Tenability n.a. Asset classification New A/c New A/c

Sanctionin AGM, SME SULABH-II, Credit Risk New Account.

g Authority NEW DELHI Rating:
BORROWER’S PROFILE
II.
1 Name of the Borrower : M/s Arvind Construction Co.
2 Nature of Activity / Line of the : Architects , Engineers, Building
business Contractors , Decorators.
3 i)Constitution : PROPRIETORSHIP CONCERN
ii)Whether listed Company: : NA
4 Sector : Private
5 Standing : April 2010
6 Banking With us since : NEW ACOUNT
7 Group : NIL
8 Important changes in the : NIL
management in the relevant
period
9 Location
Regd. Office : 41B/1, Govindpuri Kalkaji,
New Delhi - 110019
Works : Agra, Dehradun, Greater Noida etc.
DATE OF SANCTION : NEW ACCOUNT
NEW ACCOUNT
DATE OF EXPIRY YES
ANNUAL REIVEW

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 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

10 Availability of ECGC Gtee. /Cover. : N.A.

11a) Share holding pattern : Shri Gurpreet Singh - 100.00%
11.b SHARE HOLDER: PARTNERS :

12 Name of the Partners : Net worth (Rs. In Lac) Based on

Sh. Gurpreet Singh 158.00 lacs NF-589 Dtd.

13. If any of the directors of the company is/are interested / associated with any
defaulting companies per RBI defaulters list? if So, NIL

14. Name of allied concerns, dealing with us : No.

CIBIL :
Gurpreet Singh : Marks Scored
Bahadur Singh : Marks Scored
Paramjeet Kaur : Marks Scored

III PRESENT PROPOSAL

To sanction the following:

1. To permit / sanction following Working Capital limits for a period of one years under our
Canara Contractor’s Scheme vide (HO Cir 372/2014, dated 02.07.2014) under Sole
Banking Arrangements on the following terms and conditions:
Nature of Limits Particulars
OD(Secured) Rs.250.00 Lac (Rupees Two Crore Fifty lacs Only)
Bank Guarantee Rs. 75.00 lacs (Rupees Seventy Five Lacs only)

Secured OD No Stock Statement submission & no calculation of

Drawing Power under the scheme and shall only be
backed by Collateral Security as per (HO Cir 372/2014,
dated 02.07.2014).
Rate of Interest As Applicable.

Processing Charges Rs.10000.00 (@ Rs.100 per Lac, Minimum Rs.500/- and

Maximum Rs.10000/-) Applicable effective charges are

Documentation Charges Rs.25000/- (Applicable @ 0.10% with a minimum

Rs.250/- and maximum Rs.25000.00)

Security Prime:
Nil under the Canara Contractors Scheme, and Secured
OD shall only be backed by Collateral Security, in the
form of Immovable Property.

Collateral:
Mortgage of Immovable Residential Land and
building owned jointly by the father and the
mother of the proprietor, situated at House No.
408, Sector-21 B, Faridabad.

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 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

Personal Guarantee:
(Rs. in lac)
Name of Guarantor Net Worth Basis
Sh. Bahadur Singh 767.00
lacs
Mrs. Paramjeet Kaur 669.50
lacs

IV. DETAILS OF SECURITIES:

EM of Residential Land and Building Situated at Plot No. 408, Sector-

21-B, Faridabad, valued at Rs. 720.00 lacs (Rupees Seven Crores and Twenty
Lacs), vide Valuation Report dated 18.12.2014, of S R Jain & Associate, and Legal
Report of R.Raja Ballal, dated 12.12.2014.

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 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

V. Select financial indicators :

(Rupees in Lac)
FINANCIAL HIGHLIGHTS

Authorised Capital
1. Paid up Capital 10.52 50.61 65.68 92.15 155.00 200.00
2. Reserves & Surplus 0.00 0.00 34.14 29.56 36.14 40.65
2a. Unsecured Loan from friends &
relatives (interest free) 0.00 0.00 9.78 8.47 10.00 32.07
3. Intangible Assets 0.00 0.00 0.00 0.00 0.00 0.00
4. Tangible Net Worth (1+2-3) 10.52 50.61 109.60 130.18 201.14 272.72
5. Term Loans 0.00 27.75 10.14 5.94 3.79 0.00
6. Other Term Liabilities
7. Unsecured Loans interest
bearing 0.00 0.00 0.00 0.00 0.00 0.00
8. Total Term Liabilities (5+6+7) 0.00 27.75 10.14 5.94 3.79 0.00
9. Capital Employed (4+8) 10.52 78.36 119.74 136.12 204.92 272.72
10. Net Block 2.04 41.50 117.56 105.89 96.11 87.79
11. Investment in allied/group
concern 0.00 0.00 0.00 0.00 0.00 0.00
12. Investments in others 0.00 0.00 0.00 0.00 0.00 0.00
13. Drs. > 6 months 0.00 0.00 0.00 0.00 0.00 0.00
14. Other Non Current Assets 1.07 0.27 1.29 4.13 0.00 0.00
15. Total Non Current Assets
(11+12+13+14) 1.07 0.27 1.29 4.13 0.00 0.00
16. Inventory 25.30 142.71 398.40 274.40 350.00 425.00
17. Drs./Receivables (Less than 6
months) 1.61 58.31 61.10 56.06 122.87 161.55
(Export Receivables) 0.00 0.00 0.00 0.00 0.00 0.00
18. Other Current Assets 23.71 132.72 44.73 41.18 92.95 117.92
19. Total Current Assets
(16+17+18) 50.62 333.74 504.23 371.64 565.82 704.47
20.Bank Borrowings/Commercial
Papers 0.00 243.94 234.28 248.27 325.00 325.00
21. Sundry Creditors/Payables 36.29 37.73 202.71 84.65 100.06 144.00
22.Other current liabilities including
Term Loan installments payable within
12 months 6.92 15.48 66.35 12.62 31.94 50.54
23. Total Current Liabilities
(20+21+22) 43.21 297.15 503.34 345.54 457.00 519.54
Net Working Capital (19-23) 7.41 36.59 0.89 26.10 108.82 184.93
Net Working Capital (24+17-37-41-
42) 7.41 36.59 0.89 26.10 108.82 184.93
TOTAL ASSETS 53.73 375.51 623.08 481.66 661.93 792.26
TOTAL LIABILITIES 53.73 375.51 623.08 481.66 661.93 792.26

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 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

DIFFERENCE IN BALANCE SHEET 0.00 0.00 0.00 0.00 0.00 0.00

Operational Analysis
Net Sales 198.00 397.81 1044.42 1290.26 1612.83 2016.03
Other Income 0.03 0.00 0.04 0.35 0.53 0.79
Gross Profit/(Loss) 10.10 30.95 77.25 62.11 85.37 91.82
Profit Before Tax/(Loss) 10.10 20.35 46.74 30.90 51.62 58.07
Provision for Tax 0.00 6.10 12.60 1.34 15.49 17.42
Profit After Tax/(Loss) 10.10 14.25 34.14 29.56 36.14 40.65
Depreciation & other Non Cash
Expenses 0.31 4.19 13.75 11.51 9.78 8.32
Cash Accruals/(Cash Losses) 10.41 18.44 47.89 41.07 45.92 48.96
Ratio Analysis
Current Ratio (19/23) 1.17 1.12 1.00 1.08 1.24 1.36
Debt Equity Ratio (8/4) 0.00 5.37 2.23 1.95 1.63 1.19
Leverage Ratio (8+23/4) 4.11 6.42 4.69 2.70 2.29 1.91
Net profit to sales (%) 5.10 3.58 3.27 2.29 2.24 2.02
Return on investments (%) 96.01 28.15 31.15 22.71 17.97 14.90
Debt Service Coverage Ratio
Average Debt Service Coverage Ratio
Interest Service Coverage Ratio #DIV/0! 2.74 2.57 2.32 2.36 2.45

Current performance:
Estimates for year ending 31.03.15 Rs.1613.35 Lac
Achievement till Oct-2014 (Approx) Rs. 750.00 Lac
Pro-rata achievement 95%

Comments:

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 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

The firm has achieved net sales of Rs. 750 Lac till 31-10-2014. The firm has regular orders and
they are hopeful to perform well and achieve the net sales comfortably.

Comments on Financials of the company:

 The capital base and net worth of the firm has increased due to retention of profit in the
system. The Net Worth is showing increasing trend and the same increase to Rs. 121.71
Lac as at 31-03-2014.
 Current Ratio as per ABS as on 31.3.2014 is 1.08 and the same has been projected at 1.31
as at 31-03-20154.
 The firm has earned a PAT of Rs. 29.56 Lac as on 31.03.2014.
 TOL/TNW has declined from 4.69 to 2.70 as at 31-03-2014 and DER from 0.09 to 0.05 as
at 31-03-2014.
 The party is earning profit for past continuous three years and satisfactory. No adverse
feature observed in the financials of the company.

WORKING CAPITAL ASSESSMENT:

COMPUTATATION OF MAXIMUM PERMISSIBLE BANK

FINANCE FOR WORKING CAPITAL PROJECTED PROJECTED
31.3.15 31.3.16

FIRST METHOD OF LENDING

1. Total current assets 565.82 704.47

2. Other current liabilities(Other than bank borrowing) 132.00 194.54

3. Working capital gap 433.82 509.93

4. Min.stipulated Net working capital (25% of the working

capital Gap 108.45 127.48

5. Actual/projected net working capital 108.82 184.93

6. Item 3 minus item 4 325.36 382.45

7. Item 3 minus item 5 325.00 325.00

8. Maximum permissible bank finance (Lower of 6 or 7) 325.00 325.00

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 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

9. Excess borrowings representing shortfall in NWC

SECOND METHOD OF LENDING

1. Total current assets 565.82 704.47

2. Other current liabilities (other than bank borrowing) 132.00 194.54

3. Working capital gap 433.82 509.93

4. Minimum stipulated NWC (25% of total current assets

excluding export receivables 141.46 176.12

5. Actual/projected net working capital 108.82 184.93

6. Item 3 minus item 4 292.36 333.81

7. Item 3 minus item 5 325.00 325.00

8. Maximum permissible bank finance (Lower of 6 or 7) 292.36 325.00

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 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

VI ANALYSIS OF CREDIT RISK:

Normal Risk (Grade-IV) based on PBS 31-03-13.

VII SHARING PATTERN: SOLE BANKING

VIII VALUE OF ACCOUNT:

 This is a new account to our fold and Current Account of the firm has been opened.

We expect good business / deposit support from the firm by way of Interest income.

ADVERSE FEATURES/ PENDING MATTERS/ INSPECTION REMAKRS, IF ANY

Nil, New Account.

X. RECOMMENDATIONS:

a) We recommend sanction of the following credit limits on the terms and conditions
mentioned against them, valid upto
Amt.in lakhs
Facility Limit ROI/Commission Margin Security
Secured OD 250.00 lacs BR+1.50% i.e - EM of
under 11.70% p.a. Residential
Contractors Property at
Scheme Faridabad.
Bank 75.00 lacs 10% -do-
Guarantee

Collateral securities:

Residential Land & Building measuring 1011.11 sq.yds. at Plot No. 408, Sector-21-B,
Faridabad, having a Market Value of Rs. 720.00 lacs, as per the Valuation Report of our
panel valuer S R Jain & Associate. The property is owned by Sh. Bahadur Singh and Smt.
Paramjeet Kaur, who are the parents of Mr. Gurpreet Singh, the proprietor of M/s
Arvind Construction Co.

Names of guarantors:
01. Sh. Bahadur Singh, Net Worth : Rs. 767.00 lacs.
02. Smt. Paramjeet Kaur, Net Worth Rs. 669.50 lacs

ARVIND CONSTRUCTIONS was promoted by Sh. Bahadur Singh in the year 1986, to do the
construction work on contract basis. Later on a Pvt. Ltd. Company is also floated with Sh. Bahadur
Singh and Sh. Jaspal Singh (elder son of Sh. Bahadur Singh).

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 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

Now Sh. Gurmeet Singh, younger son of Sh. Bahadur Singh who has done MBA from a reputed
institute and also having good experience of the construction business has floated a firm to carry
on the family business under the name & style of M/.s Arvind Construction Co. The firm has
procured orders of more than Rs. 2000.00 lacs, to be executed within a stipulated period of time,
so they approached our bank for financial assistance of Rs. 250.00 lacs, to enable them to execute
the contracts as per the agreements.
They have offered their built-up residential house property measuring 1011.11 sq.yds, valued at
Rs. 720.00 lacs (distress sale vale of Rs. 534.10 lacs) and the guarantee of Sh. Bahadur Singh
and Smt. Paramjeet Kaur, as security.

The firm M/s Arvind Construction company, is the venture of Sh. Gurpreet Singh Pabla, who has
started the concern in his proprietorship, under the guidance of Sh. Bahadur Singh who is the
proprietor of M/s Arvind Constructions and Sh. Gurpreet singh, a young MBA and keen in getting
into the family business came into the line and opened his Proprietorship concern under the name
and style of M/s Arvind Construction Co., under the guidance and supervision of Sh. Bahadur
Singh.

From a humble Beginning in 1986 the group Arvind Constructions has grown into a firm providing
turnkey services for execution of quality Civil constructions, engineers & Interior Decorators.
Throughout this period of growth and evolution the stress has been on client's satisfaction and
quality of work. The attempt has been to provide the Best in materials and workmanship at a very
competitive price. The Basic aim of the firm as at all times be supported By the will to work
towards perfection and well accepted need to be on time every time.
With the same spirit to provide best service and earn a name Sh. Gurpreet Singh established a
separate firm under the guidance and supervision of his father.

THEORGANIZATION

Arvind Construction Company is a highly professional organizations with quality work and client’s
satisfaction as it's prime motive. A core team of architects and engineers well supported by a
highly skill execution team and a wide endure net work provides the client with competitive rates
and quality. we ensure accessibility at all times to enable our client to approach us in case of any
problem. Client satisfaction being on top of our priority list, it becomes imperative that the
organization is geared up to meet with demands of quality and time, whatever be the situation.
The urgency and worries faced by the clients are shared equally in the same magnitude by the
organizations itself.

Arvind Constructions has grown into a firm providing turnkey services for execution of quality Civil
constructions, engineers & Interior Decorators. Throughout this period of growth and evolution the
stress has been on client's satisfaction and quality of work. The attempt has been to provide the
Best in materials and workmanship at a very competitive price. The Basic aim of the firm as at all
times be supported By the will to work towards perfection and well accepted need to be on time
every time.

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 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

OWNERSHIP AND MANAGEMENT:

Names of the Directors/ Qualificatio Designatio
Partners/ Promoters n n

Mr. Gurpreet Singh MBA Proprietor

Mr. P.K. Gupta BSC. Hons. Structural
Engineer
Mr. Irfan Agha Shah M.Tech Civil
Mr. Shambhu Prasad Diploma Civil Engg.
Mr. Irfan Khan Suri B.tech Civil
Mr. Dinesh Yadav Diploma Civil Engg.
Mr. J.P. Gangwar Diploma Civil
Mr.Ravinder Singh Post Sr.
Graduate Supervisor
Mr. Amar Malilk B.E Civil
Mr.Ghosh Diploma Civil Engg.
Mr. Lal Babu Diploma Civil Engg.
Mr. Qurban Ali Diploma Civil Engg.
Mr. Om Prakash Rashmi Post Sr.Superviso
Graduate r (Civil)
Mr. Mahender Sharma Post Sr.Superviso
Graduate r (Civil)

Quality of Management:

 Motivated, committed and involved people within the organization.

 Innovation and creativity in furthering the organization's objectives.
 People being accountable for their own performance.
 People eager to participate in and contribute to continual improvement.
 People understanding the importance of their contribution and role in the organization.
 People identifying constraints to their performance.
 People accepting ownership of problems and their responsibility for solving them.
 People evaluating their performance against their personal goals and objectives.
 People actively seeking opportunities to enhance their competence, knowledge and
experience.
 People freely sharing knowledge and experience.
 People openly discussing problems and issues.

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10
 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

Technical aspects

The Site is located at Agra, Greater Noida, New Delhi and Dehradun.

Locational Advantages

The Site is located at an approved areas of above cities. The place has all the locational
advantages like Good infratruture, roads etc, Cheap Labour , Easy Transport facilities etc.

Proximity to raw material

Raw material required in bulk quantities such as cement, bricks, concrete etc is available within
the state and in proximity to the sites of the projects being handled by Arvind Construction Co.
The same suppliers are proposed for the expanded facilities when the existing orders at the site
are completed as the next order for other towers shall be executed after the completion of the
orders in hand. The company already has in place arrangements for supply of specialized raw
materials and the same suppliers would continue to supply the expanded work also.

Availability of Skilled manpower

Obtaining skilled manpower does not represent a problem. The manpower compensation cost in
the area is reasonable and large number of skilled and unskilled manpower is available in the
vicinity. The surrounding area can provide semi skilled and unskilled work force very easily.

The cost of such manpower is reasonable and comparable to other areas. In addition, the
company will be bringing in some key personnel to oversee and supervise the production task as
well as implementation and day-to-day activities of the project. The staff turn is very low.

UTILITIES
The utilities requirements of the plant are as under:
POWER:
Power is one of the key inputs. To meet this requirement, the Company is having a Power
connection from State Electricity Board along with the proper arrangements of DG Sets. The
company does not foresee any problem to meet out the power requirement at its site.

WATER
Adequate water resource provisions are available to take care of water requirement. The water
requirements are met through Deep bore wells available within the site.

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 CANARA BANK, SME NARAINA BRANCH, NEW DELHI 110 028
PH: 011 2589 6370
A/C M/S ARVIND CONS CO.

QUALITY CONTROL AND LABORATORY

In a competitive industry, companies having to be on top of quality control and assurance at all
times. Many companies have gone to great lengths to assure their product is of the highest
possible quality.
The quality of the construction depends upon the type of raw material and type of technology
used. Quality Control and Assurance procedures cover every aspect of the process, from testing
of raw materials to certification of finished product. A good Quality Control and Assurance
program includes testing at all the stages.
The Company has taken utmost care in providing a complete range of quality control equipments
and laboratory to ensure the best quality of product.

OTHER FACILITIES
All other infrastructural facilities required such as Petrol Pump, Post Office, Nationalized Banks,
Telephone Communication Network, e-mail/internet, State Transport, Consumer Goods Market,
Railway Station, Medical facilities etc. are available at or close to the site.

The proprietor/guarantors have good means of finance, worth for the value and capacity to repay
the loan amount. The proprietor is educated and has reach experience in his line of activity. The
party has agreed to provide personal guarantee and EMT of proposed property. As per the scoring
norms, the party is eligible for rate of interest @ Base Rare + 1.50% +0.50% as term premium
(Presently 11.70% p.a.) floating, since they are complying with 4 out of the 5 parameters, we are
recommending ROI as per the details mentioned under para-III above.

In view of the above, we recommend the proposal as per para-III above, under “CANARA
CONTRACTORS SCHEME”

SUBMITTED FOR ORDERS

Officer :Senior Manager:

ORDER OF THE SANCTIONING AUTHORITY

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