11th 01 MC-CB-1-Renewal cum enhancement in credit facilities Shristi CotspinnPrivate Limited

Credit Proposal Summary for Shristi Cotspinn Private Limited

General Information

• Borrower: Shristi Cotspinn Private Limited (SCPL)

• Incorporation: 1995, Coimbatore, Tamil Nadu

• Industry: Manufacturing of cotton yarn and fabrics

• Banking Arrangement: Multiple Banking Arrangements

• Group Company: Salona Cotspin Limited

Proposal Details

• Purpose: Renewal cum enhancement in credit facilities

• Existing Facilities:

  • Combined ODH/ODBD/PCFC/FDBP/FUBP (against LC/FO) limit: Rs 6 crore

  • PSCFC/EBD against LC limit: Rs 5 crore

  • MFCC limit: Rs 1.95 crore

• Proposed Facilities:

  • Combined ODH/ODBD/PCFC/FDBP/FUBP (against LC/FO) limit: Rs 12 crore

  • PSCFC/EBD against LC limit: Rs 40 crore

  • MFCC limit: Rs 7.80 crore

Financial Information

• Sales Turnover (2020-21): Rs 101.98 crore

• EBIDTA (2020-21): Rs 8.97 crore

• PAT (2020-21): Rs 3.66 crore

• Current Ratio (31.03.2021): 1.34

• TOL/ANW Ratio (31.03.2021): 2.51:1

Security and Guarantees

• Security:

  • Pari-passu first charge on entire current assets and fixed assets (excluding land and buildings)

  • Pari-passu first charge on 15.59 acres of factory land and building

  • Pari-passu first charge on 498.75 cents of land

• Personal Guarantees: Provided by four directors with an aggregate net worth of Rs 15.87 crore

Concessions, Waivers, and Relaxations

• Interest Rate Reduction:

  • ODH/ODBD/FUBP/FDBP: Reduced to 8.50% p.a. from 9.55% p.a.

  • PCFC/PSCFC: 6 month USD SOFR + ISDA spread + 150 bps

• Processing Charges:

  • Fresh: 1% (funded), 0.50% (non-funded)

  • Renewal: 0.50% (funded), 0.25% (non-funded)

• Waiver of Commitment Charges: For underutilization of WC limit

Sacrifice Amount Calculation

• Existing Interest Rate: 9.55% p.a.

• Proposed Interest Rate: 8.50% p.a.

• Sacrifice Amount: Calculated based on the difference in interest rates over the proposed credit limit

Operating and Financial Metrics

Account History

CRO Comments

• Inventory and receivables upon sales increased to 48% as on 31.03.2021 from 41% in 31.03.2020.

• Dilution in security coverage to approx. 11% from existing 24%.

• External rating is BB+. The external rating of the company for long-term bank facilities at BB+ (Stable) is above the minimum entry-level rating of BB-.

• Mitigants suggested include exploring improvement in security coverage, monitoring availability of DP closely, and possibly bringing additional equity to restrict gearing within acceptable levels.

Risk Observations

• Management Risk: Frequent SMA classification due to overdue export bills.

• Financial Risk: Negative cash flows from operating activities in 2021.

• Others: Exposure to forex risks due to significant rise in exports.

11th 02 MC-CC-1-Proposal for Renewal of existing credit facilities- Account Desai Infra Projects India Pvt Ltd

Proposal Overview

Title: Proposal for Renewal of Existing Credit Facilities Account: Desai Infra Projects India Pvt. Ltd. Date of Submission: 17.03.2022 Date of Meeting: Not specified Department: HO Credit Hub Branch: Pune

Borrower Details

• Group: Desai Group of Companies, Pune

• Industry: EPC Contractor (Irrigation & Road Development)

• Established: 2008

• Banking Relationship Since: 2018

Credit Facilities

• Total Credit Facilities: Rs 32.21 crore

• Participating Banks: CSB Bank, Bank of Maharashtra

• Existing Facilities:

  • Bank Guarantee Limit: Rs 24 crore

  • Cash Credit Sublimit: Rs 0.50 crore

  • One-time Project Specific Performance BG: Rs 8.21 crore

Credit Ratings

Financial Overview

• Revenue (2020-21): Rs 105.91 crore

• EBIDTA (2020-21): Rs 15.55 crore (Margin: 14.68%)

• PAT (2020-21): Rs 4.65 crore

• Current Ratio (2020-21): 1.33:1

• TOL/ANW Ratio (2020-21): 2.01:1

Security Details

• Primary Security: Hypothecation of cash flows, stock, and receivables

• Collateral: Five parcels of immovable properties valued at Rs 32.68 crore

• Security Coverage: 121.45%

Concessions, Waivers, and Relaxations

• Interest Rate on CC Sublimit: 10.80% p.a. (linked to RLLR)

• BG Commission: 2% p.a. (Performance BG), 3% p.a. (Other BG)

• One-time Project Specific Performance BG Commission: 1.50% p.a.

Sacrifice Amount Calculation

• Interest Rate Difference: Existing rate 10.80% vs. applicable rate 9.27%

• Sacrifice Amount: Not explicitly calculated in the document

Operating and Financial Metrics

Account History

CRO Comments

• Risks:

  • Top 4 work orders constitute 49% of total work order value.

  • Geographical concentration risk in Maharashtra.

  • High concentration in irrigation projects.

• Mitigants:

  • Route project-specific cash flows through the bank account.

  • Monitor intra-group transactions closely.

  • Examine work status and project completion progress.

  • Analyze receivables aging.

  • Ensure quasi equity is not withdrawn during the loan tenure.

Additional Information

• Confirmed Order Book: Rs 752.69 crore

• Group Exposure: Rs 142.03 crore

• Other Banks Involved: Central Bank of India, Bank of India, Federal Bank

• Industry Outlook: Positive growth in irrigation and construction sectors expected.

This proposal is for the renewal of existing credit facilities for Desai Infra Projects India Pvt. Ltd., with a focus on maintaining current interest rates and security coverage while addressing risks associated with project concentration and geographical exposure.

11th 03 MC-CC-2-Approval of review of Credit Facilities- A c Home First Finance Company India Ltd

Credit Proposal Summary for Home First Finance Company India Ltd

Borrower Information

• Name: Home First Finance Company India Ltd

• Incorporation Year: 2010

• Industry: Housing Finance

• Registered with: National Housing Bank (NHB)

• Major Stakeholders:

  • Orange Clove Investments B.V-Warburg Pincus (28.76%)

  • True North Fund V LLP (20.21%)

  • Aether (Mauritius) Limited (13.41%)

  • Bessemer India Capital Holdings II Limited (7.78%)

  • Other Foreign Investors (12.07%)

• AUM: Rs. 4994.05 crore as of 31st December 2021

• Listed on: BSE and NSE

• Market Price: Rs. 722.65 (Face Value of Rs.2)

• Consortium Leader: Central Bank of India

Credit Facilities

• Term Loan I:

  • Sanctioned Amount: Rs. 50 crore

  • Outstanding Balance: Rs. 34.93 crore

  • Interest Rate: 8.75% (linked to 6 months MCLR plus 35 bps)

• Term Loan II:

  • Sanctioned Amount: Rs. 50 crore

  • Outstanding Balance: Rs. 44.81 crore

  • Interest Rate: 8.70% (linked to 6 months MCLR plus 30 bps)

Security

• Type: Pari passu first charge on loan receivables (present and future)

• Coverage: Minimum asset coverage of 1.11 times

• Guarantee: Nil

Financial Performance

• Revenue from Operations (FY 2020-21): Rs. 477.13 crore

• EBIDTA (FY 2020-21): Rs. 361.83 crore (Margin: 76%)

• PAT (FY 2020-21): Rs. 100.14 crore

• TOL/ANW Ratio (31.03.2021): 2.27:1

• Total AUM (31.03.2021): Rs. 4141.10 crore

• Debt to EBIDTA: 8.65:1

• Gross NPA (31.03.2021): 1.84%

• Net NPA (31.03.2021): 1.18%

• CRAR (31.03.2021): 56.21%

• Restructured Portfolio (31.12.2021): 0.76% of Loan Book

• Liquidity Coverage Ratio (31.12.2021): 389%

Concessions, Waivers, and Relaxations

• Interest Rate Concessions:

  • Term Loan I: 8.75% (6 months MCLR plus 35 bps)

  • Term Loan II: 8.70% (6 months MCLR plus 30 bps)

• Other Waivers: Waiver of service charges and folio charges

Sacrifice Amount Calculation

• Standard Interest Rate: 12.30%

• Concessional Rate for Term Loan I: 8.75%

• Concessional Rate for Term Loan II: 8.70%

• Sacrifice for Term Loan I: (12.30% - 8.75%) * 34.93 crore = Rs. 1.24 crore

• Sacrifice for Term Loan II: (12.30% - 8.70%) * 44.81 crore = Rs. 1.61 crore

• Total Sacrifice Amount: Rs. 2.85 crore

Operating and Financial Metrics

Account History

CRO Comments

Risks:

1. Geographical concentration: Loan portfolio spread across top 2 states viz. Maharashtra and Gujarat accounted for 56% as on September 30, 2021.

2. Portfolio has grown considerably in the last 2-3 years as reflected by the 3-year CAGR of 45% in its AUM till March 31, 2021 indicating limited seasoning. (AUM- FY18: 1356 cr, FY21: 4141cr)

Mitigants:

1. Segment wise asset quality patterns may be monitored periodically.

2. Collection efficiency trends (M-o-M) including and excluding arrears may be monitored.

Proposal carries fair banking risk considering low risk internal rating and AA- external rating.

11th 04 MC-CC-3-Proposal for Review Renewal of existing credit facilities- Account M s Jai Hind Feeds Partnership

Proposal Overview

Title: Proposal for Review/Renewal of Existing Credit Facilities Borrower: M/s Jai Hind Feeds (Partnership) Industry: Manufacturing of Cattle Feeds Location: Pune, Maharashtra Group Affiliation: Desai Group of Companies Date of Submission: 17.03.2022

Credit Facilities

Security Details

• Primary Security: Hypothecation of entire current assets (both present and future).

• Collateral: Two parcels of immovable properties valued at INR 19.29 crore.

• Security Coverage: 110%

Financial Performance

Concessions, Waivers, and Relaxations

• Interest Rate on Cash Credit: 10.50% p.a. linked to RLLR

• Interest Rate on Term Loans: 10.30% p.a. linked to One year MCLR

• Interest Rate on Covid Relief Loan: 10.50% p.a. linked to RLLR

• Processing Fee for Renewal of CC Limit: 0.50%

Sacrifice Amount Calculation

• Term Loans: Previous Rate 12.55% - Current Rate 10.30% = 2.25% reduction

• Covid Relief Loan: Previous Rate 9.90% - Current Rate 10.50% = -0.60% increase

• Cash Credit: Previous Rate 9.65% - Current Rate 10.50% = -0.85% increase

Sacrifice Amount (INR)

• Term Loans: (2.25% of 1.12 crore) = INR 2.52 lakh

• Covid Relief Loan: No sacrifice as rate increased

• Cash Credit: No sacrifice as rate increased

Operating and Financial Metrics

Account History

CRO Comments

Risks:

• Low Profit Margins (less than 1% for the last 3 years)

• Working capital intensive nature of operations and exposure of profit margins to fluctuations in raw material prices.

• Intra group transactions observed in the account.

Mitigants:

• Intra Group Transactions may be avoided wherever possible.

• Liquidity position of the borrower and Group concerns may be monitored.

• Borrower may be asked to maintain adequate buffers to service the interest promptly.

• Latest External Rating may be obtained.

• Inter dependencies of group account receivables may be monitored.

The proposal carries risk of low profit margins, moderate internal rating, and working capital intensive nature of business.

11th 05 MC-CC-4-Proposal for Review Renewal of existing credit facilities- Account Nature Delight Dairy and Dairy Products Pvt Ltd

Proposal Overview

The proposal is for the review and renewal of existing credit facilities for Nature Delight Dairy and Dairy Products Pvt Ltd, a company engaged in milk processing and production of milk powder and by-products. The company is part of the Desai group of companies, Pune, and has been dealing with CSB Bank since January 2017.

Credit Facilities

• Total Credit Facilities: Rs 83.63 crore

• Cash Credit Limit: Renewal of Rs 40 crore for one year

• Term Loans:

  • Rs 23 crore with an outstanding balance of Rs 6.54 crore

  • Rs 7.10 crore with an outstanding balance of Rs 4.91 crore

  • Rs 35 crore with an outstanding balance of Rs 29.16 crore

• COVID Relief Loan: Rs 5 crore with an outstanding balance of Rs 3.02 crore

Interest Rates

• Term Loans and COVID Relief Loan: 10.30% p.a.

• Cash Credit: 10.30% p.a.

• Processing Fee for CC Renewal: 0.50%

Security

• Primary Security: Hypothecation of all movable and immovable assets, exclusive charge over current assets, and lien on Debt Service Reserve Account (Rs 0.66 crore).

• Collateral: Ten parcels of immovable properties valued at Rs 61.56 crore.

Financial Performance

• Revenue (2020-21): Rs 744.03 crore (24% growth from previous year)

• EBIDTA (2020-21): Rs 23.04 crore (3.10% margin)

• PAT (2020-21): Rs 3.75 crore

• TOL/ANW (2021): 6.29:1

• Current Ratio (2021): 0.93:1

Concessions, Waivers, and Relaxations

• Concessional interest rate linked to One year MCLR

• Waiver of obtaining Income Tax Returns and net worth statement of guarantors other than promoters/directors

Sacrifice Amount Calculation

• Existing Interest Rate: 12.30%

• Proposed Interest Rate: 10.30%

• Sacrifice: 2% on Rs 83.63 crore = Rs 1.6726 crore

Operating and Financial Metrics

Account History

CRO Comments

Risks:

1. Thin profit margins: NP margin dropped over the years despite surge in top line (FY19: 0.96%, FY20: 0.69%, FY21: 0.50%).

2. High gearing levels: TOL to TNW >6 times as on 31.03.2021.

3. Inventory turnover dropped to 6.12 times in FY21 from 12.90 times in FY20. As per IVR Ratings, the operating cycle has been 38 days in FY2021 as compared to 18 days in FY2020, driven by year-end inventory levels. Mitigants:

4. Borrower may bring key ratios within desirable levels by equity infusion.

5. Quasi equity shall not be withdrawn during the pendency of our loan.

6. Intra group transactions to be monitored periodically.

7. Performance up to latest month end may be examined and provisional financials may be obtained.

8. Business may strictly monitor availability of DP at regular intervals.

9. Sales may be routed through our CC account. Proposal carries risk of exposure size, high gearing, moderate external rating and security coverage.

11th 06 MC-CC-5-Approval for renewal of existing credit facility - Account Pressana Automobile Tirupur

Credit Proposal Summary for Pressana Automobile, Tirupur

Borrower Information

• Name: Pressana Automobile, Tirupur

• Type: Partnership Firm

• Established: 2007

• Banking Since: 2010

• Activity: Dealer of Honda Two wheelers & Scooter India Pvt Ltd with hi-tech service station for Tirupur region.

• Group Affiliations: Pressana Automobiles Pvt Ltd, Pressana Motors, Pressana Flour Mills Pvt Ltd

Credit Facility Details

• Existing Facility: Cash Credit limit of Rs. 2.50 crore

• Proposed Facility: Renewal of the existing Cash Credit limit of Rs. 2.50 crore for one year

• Interest Rate: Proposed concessional rate of 8.25% p.a. (reduced from 9.20% p.a.)

• Security: Hypothecation of entire current assets and one parcel of security property valued at Rs. 15.25 crore

• Personal Guarantee: Provided by partners Mr. P S Senthilkumar and Mrs. S Devikala

Financial Information

• Income (2020-21): Rs. 23.04 crore (22% growth from previous year)

• EBITDA (2020-21): Rs. 0.76 crore (3.29% margin)

• PAT (2020-21): Rs. 0.18 crore

• Current Ratio (2020-21): 1.57:1

• Debt to EBITDA (2020-21): 0.79:1

Security and Exposure

• Total Group Exposure: Rs. 78.66 crore

• Security Coverage: 205% overall, 113% on immovable properties

Concessions, Waivers, and Relaxations

• Interest Rate Concession: 8.25% p.a.

• DD/PO Charges: Rs. 0.20 per Rs. 1000/-

• RTGS Charges: Rs. 25/- per remittance

• Waiver of Cash Levy and Commitment Charges

• Reversal of Rating Watch Penal Charges: Rs. 27,778/-

Sacrifice Amount Calculation

• Existing Interest Rate: 9.20% p.a.

• Proposed Interest Rate: 8.25% p.a.

• Sacrifice Amount: Calculated based on the difference in interest rates over the credit limit of Rs. 2.50 crore.

Operating and Financial Metrics

Account History

CRO Comments

• Risks: Low Profit Margins, Intra Group Transactions

• Mitigants: Explore Keyman insurance, Monitor Intra Group transactions, Analyze Debtors ageing, Consider Inventory funding facility, Compare monthly sales with industry data.

This summary provides a comprehensive overview of the credit proposal for the renewal of the existing credit facility for Pressana Automobile, Tirupur, capturing all significant financial and operational details.

11th 07 MC-CC-6-Approval for renewal of existing credit facility - Account Pressana Motors Coimbatore

Credit Proposal Summary for Pressana Motors, Coimbatore

Borrower Information

• Name: Pressana Motors

• Location: Coimbatore

• Industry: Automobile Dealership (Honda Two Wheelers & Scooter India Pvt Ltd)

• Group Affiliation: Pressana Group

• Established: 2003

• Banking Since: 2010

Credit Facility Details

• Existing Facility: Cash Credit Limit of Rs. 3.50 crore

• Proposed Renewal: Renewal of the existing Cash Credit limit for one year

• Interest Rate: Proposed concessional rate of 8.25% p.a. (reduced from 9.20% p.a.)

• Security: Hypothecation of current assets and immovable property valued at Rs. 15.25 crore

• Personal Guarantee: Provided by Mr. P S Senthilkumar and Mrs. S Devikala

Financial Overview

• Income FY 2020-21: Rs. 33.52 crore (6.75% increase from FY 2019-20)

• EBITDA FY 2020-21: Rs. 1.24 crore (3.70% margin)

• PAT FY 2020-21: Rs. 0.43 crore

• Current Ratio: 1.56:1 as of 31.03.2021

• TOL/ANW Ratio: 0.91:1 as of 31.03.2021

Group Exposure

• Total Group Exposure: Rs. 78.66 crore

• Other Group Companies: Pressana Automobiles Pvt Ltd, Pressana Flour Mills Pvt Ltd

Concessions, Waivers, and Relaxations

• Interest Rate Concession: Reduction to 8.25% p.a.

• Processing Fee: Levied at applicable rates

• Waivers: Cash levy charges, commitment charges

• Reversal: Rs. 31,647/- rating watch penal charges

Sacrifice Amount Calculation

• Existing Interest Rate: 9.20% p.a.

• Proposed Interest Rate: 8.25% p.a.

• Sacrifice Amount: Calculated based on the difference in interest rates over the credit limit of Rs. 3.50 crore.

Operating and Financial Metrics

Account History

CRO Comments

• Risks: Low profit margins, intra-group transactions

• Mitigants: Keyman insurance, monitoring intra-group transactions, analyzing debtors' aging, considering inventory funding facility, comparing monthly sales with industry data.

Additional Information

• Inventory Funding: Rs. 3.75 crore from ICICI Bank

• Security Coverage: 205% overall, 113% on immovable properties

• Rating: Internal rating sustained at OR-3

This summary provides a comprehensive overview of the credit proposal for Pressana Motors, highlighting key financial metrics, proposed concessions, and risk assessments.

11th 08 MC-CC-7-Approval of review of existing credit facility - Account- Hero Housing Finance Limited

Credit Proposal Summary for Hero Housing Finance Limited

General Information

• Borrower: Hero Housing Finance Limited

• Parent Company: Hero FinCorp Limited

• Registered Address: 9, Community Centre, Basant Lok, Vasant Vihar, New Delhi- 110057

• Industry: Housing Finance

• Branch: Okhla

• Zone: Northern

• Date of Submission: 17.03.2022

• Date of Meeting: Not specified

• LEI: 335800TGLGM6HN6D8H07

Credit Facility Details

• Facility Type: Term Loan

• Sanctioned Amount: Rs 50 crore

• Outstanding Balance: Rs 39.99 crore

• Purpose: Onward lending

• Interest Rate: 7.10% p.a. linked to 91 days T-Bill

• Security: First Pari-passu charge on standard business receivables (1.10 times of the facility outstanding)

• Guarantee: Nil

Financial Information

• Revenue from Operations (FY 2020-21): Rs 232.78 crore

• EBIDTA (FY 2020-21): Rs 145.34 crore

• Net Profit (FY 2020-21): Rs -19.00 crore

• Total AUM (31.03.2021): Rs 2369 crore

• Gross NPA (31.03.2021): 1.95%

• Net NPA (31.03.2021): 1.19%

• CRAR (31.03.2021): 27.53%

Multiple Banking Arrangements

• Total Borrowings: Rs 2176.19 crore from various banks

• NCD/Tier II Bonds/CP: Rs 332.00 crore

Concessions, Waivers, and Relaxations

• Interest Rate: Continuance of concessional rate of 7.10% p.a.

• Waivers: Quarterly service charges and folio charges

Sacrifice Amount Calculation

• Applicable Interest Rate: 12.55% p.a.

• Concessional Rate: 7.10% p.a.

• Sacrifice Amount: Calculated based on the difference in interest rates over the outstanding balance.

Operating and Financial Metrics

Account History

CRO Comments

• Risks: Continuous net losses over the years. Company is yet to break even.

• Mitigants: Business may monitor asset quality trends periodically. Latest collection efficiency patterns (M-o-M) to be examined.

Observations

• Management Risk: Need for equity infusions over the medium term.

• Financial Risk: Increase in GNPA and NNPA due to Covid-19 impact.

• Liquidity: Adequate with positive cumulative mismatches in all time buckets.

Recommendations

• Approval for: Continuance of existing Term loan for a further period of one year on the existing terms and conditions.

• Security Coverage: 1.10x at all times.

11th 09 MC-CE-1-Proposal for Conversion of the existing Import Letter of Credit limit into Combined Import Inland LC limit A c Annapoorani Textiles Private Limited

Proposal Summary

Borrower Information

• Name: Annapoorani Textiles Private Limited

• Incorporation Date: 18th March 2015

• Industry: Manufacturing and Exporting of Woven Fabrics

• Location: Erode, Tamilnadu

• Promoters: Mr. B Vasu and Mr. B Jaishankar

Proposal Details

• Proposal: Conversion of the existing Import Letter of Credit (LC) limit into a fully interchangeable Combined Import/Inland LC limit.

• Existing Import LC Limit: Rs 25 crore

• Reason for Conversion: To utilize local raw material procurement due to competitive pricing and unutilized import LC limit.

• Usance Period: 120 days for Inland LC, 180 days for Import LC

• Cash Margin: 10%

Financial Exposure

• Current Exposure: Rs 65.75 crore

• Group Exposure: Rs 78.88 crore

Security Details

• Primary Security: Hypothecation of stocks, receivables, and fixed assets

• Collateral:

  • Cash Collateral: Rs 0.60 crore

  • Immovable Properties: Rs 48.58 crore

Financial Performance

• Revenue FY 2020-21: Rs 116.13 crore

• EBITDA FY 2020-21: Rs 6.50 crore

• PAT FY 2020-21: Rs 2.55 crore

• Projected Revenue FY 2021-22: Rs 268.57 crore

Credit Ratings

• Internal Rating: OR-4 (ABS 2021)

• External Rating: IVR BBB- (Credit watch with developing implications)

Operating and Financial Metrics

Account History

Concessions, Waivers, and Relaxations

• Interest Rate Reduction: From 9.00% p.a. to 8.00% p.a.

• Cash Margin: 10% requested against the minimum stipulated margin of 15% for non-funded facilities.

Sacrifice Amount Calculation

• Interest Rate Reduction: 1% on Rs 65.75 crore

• Sacrifice Amount: Rs 0.6575 crore

CRO Comments

• Risks:

  1. Security creation and perfection, Legal opinion and Legal audit are pending.

  2. EBITDA and PAT margins have remained thin over the last 3 years.

  3. Stiff competition due to lower production costs, ease-of-doing-business & availability of cheap labour.

• Mitigants:

  1. Pending sanction terms to be complied within the prescribed timeframe.

  2. The government has agreed to extend the Production-Linked Incentive (PLI) scheme to the textile segment which will bring more investment.

  3. Continuity of lease agreement must be ensured as leased unit accounts for nearly 40% production capacity.

Additional Notes

• Guarantees: Personal guarantees from promoters and directors.

• Legal and Security Perfection: Expected to be completed by the first week of April 2022.

11th 10 MC-G-1 - Master approval with respect to vendor payments - FY 2021-22

Master Approval for Vendor Payments - FY 2021-22

Objective

The objective of this memorandum is to seek approval for payments to Business Correspondents (BCs) that exceed the upper cap set by the discretionary matrix for the fiscal year 2021-22. CSB Bank has engaged NBFCs and other entities as BCs for sourcing gold loans and providing doorstep gold loan services.

Background

According to Circular No. 103/2021 dated 15-07-2021, prior approval is required for total costs incurred during a fiscal year, estimating the pay-outs. The discretionary powers for payments to DSAs/BCs/Strategic Alliances are as follows:

A bill exceeding Rs.10 Lakh per instance has been received, necessitating approval from the Management Committee.

Income Sharing

• IIFL: 10.5% income to the bank; excess yield shared with BC. PF fully given to BC.

• Other BCs:

  • Product – 1: Interest Rate 21% p.a.; CSB Share 11.99/12.99%, BC Share 9.01/8.01%

  • Product – 2: Interest Rate 19% p.a.; CSB Share 11.99/12.99%, BC Share 7.01/6.01%

  • Some BCs receive a 1% servicing fee upfront.

Settlement of Bills

At the start of each month, CSB shares an excel sheet with loan account details for BC payouts. BCs raise invoices based on this, and CSB settles the bill amount.

Anticipated Pay-out

Recommendation

The recommendation is to sanction the monthly pay-out for services rendered by BCs, waiving the individual bill cap of Rs.10 Lakh per instance. The total indicative pay-out is Rs.8.62 Crore, subject to variation based on actuals.

The memorandum is placed for approval by the Management Committee.

11th 11 MC-H-1 - Vertical wise details of slippages during the month of February 2022

Vertical Wise Details of Slippages - February 2022

Overview

The memorandum presented to the Management Committee of CSB Bank Ltd outlines the vertical-wise details of slippages for the month of February 2022. The report is prepared by the Credit Monitoring Department and is intended for information purposes.

Total Slippages

The total slippage for February 2022 is categorized by verticals as follows:

Accounts with Slippages of Rs 25 Lakhs and Above (Excluding Gold and DA)

The following accounts experienced slippages of Rs 25 lakhs and above during February 2022:

The total balance for these accounts is Rs 664.26 lakhs.

Conclusion

The report provides a detailed breakdown of slippages across various verticals and highlights significant accounts with slippages above Rs 25 lakhs. This information is crucial for the Management Committee to monitor and address credit risks effectively.

11th 12 MC-H-2-Modifications Sanctioned by Managing Director and CEO or Head Office Credit Committee HOCC with respect to credit facilities sanctioned by Management Committee of the Board during the month of February 2022

Modifications Sanctioned by Managing Director & CEO / Head Office Credit Committee (HOCC)

Overview

This document outlines the modifications sanctioned by the Managing Director & CEO or the Head Office Credit Committee (HOCC) concerning credit facilities approved by the Management Committee of the Board during February 2022.

Modifications Summary

Concessions, Waivers, and Relaxations

• Waiver of Annexure II for credit information exchange.

• Exemption from obtaining NOC for additional charge on receivables.

• Waiver of registration of supplementary MODT for key loans.

• Waiver of pre-shipment inspection certificate for Import Letters of Credit.

• Waiver of prepayment charges under certain conditions.

• Waiver of obtaining IT returns & net-worth certificates of directors.

• Waiver of quarterly service charges.

Sacrifice Amount Calculation

• The document does not provide specific figures for calculating the sacrifice amount in INR.

Operating and Financial Metrics

• The document does not provide specific operating and financial metrics relevant to the borrower's industry.

Account History

• The document does not provide specific account history or movements into SMA1, SMA2, SMA3, NPA, etc.

CRO Comments

• The document does not include comments made by the CRO.

11th 13 MC-H-3-Report on Advances sanctioned by HOCC during February 2022

Report on Advances Sanctioned by HOCC during February 2022

Overview

This report provides a detailed account of the advances sanctioned by the Head Office Credit Committee (HOCC) of CSB Bank Ltd. during February 2022. The report includes various annexures detailing concessions, fresh credit facilities, modifications, and waivers.

Annexure-I: Concessions Permitted

• Krishnae Infrastructure Pvt Ltd

  • Date of Sanction: 21.02.2022

  • Facilities Sanctioned:

    • Overdraft: Rs 15 crore

    • Bank Guarantee: Rs 20 crore

    • Loan Against Property: Rs 8.34 crore

  • Concessions:

    • Concessional Processing Fee of 0.50% for Loan Against Property against the applicable fee of 1.50%.

Annexure-II: Fresh, Review/Renewal, Ad-hoc Facilities, and Enhancements

Zetwerk Manufacturing Businesses Private Limited (ZMBPL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Combined Inland/Import LC/Performance/Financial BG limit: Rs 25 crore

  • Sales Invoice Discounting (Sub-limit Cash Credit): Rs 15 crore

• Concessions:

  • Concessional interest rates and processing fees.

  • Time period of 180 days for security perfection.

• Security: Pari-passu first charge on current and fixed assets.

Mahalaxmi Infracontract Ltd (MIPL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loans: Rs 27.46 crore

• Concessions:

  • Concessional interest rate of 9.30% p.a.

• Security: Hypothecation of equipment and vehicles.

J M Mhatre Infra Private Limited

• Date of Sanction: 10.02.2022

• Facilities:

  • Cash Credit: Rs 10 crore

  • Bank Guarantee: Rs 40 crore

• Concessions:

  • Concessional interest rate of 11.50% p.a.

• Security: Land, building, and fixed deposits.

CreditAccess Grameen Limited (CAGL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loan: Rs 33.82 crore

• Concessions:

  • Concessional interest rate of 9.00% p.a.

• Security: Hypothecation of book debts.

Samunnati Financial Intermediation & Services Private Ltd

• Date of Sanction: 21.02.2022

• Facilities:

  • Term Loan: Rs 30 crore

• Concessions:

  • Concessional interest rate of 10.60% p.a.

• Security: Hypothecation of book debts.

Krishnae Infrastructure Private Limited (KIPL)

• Date of Sanction: 21.02.2022

• Facilities:

  • Overdraft: Rs 15 crore

  • Bank Guarantee: Rs 20 crore

  • Loan Against Property: Rs 8.34 crore

• Concessions:

  • Concessional interest rate of 8.50% p.a. for Loan Against Property.

• Security: Pari-passu charge on current assets.

Ramalingam Construction Company Private Limited (RCCPL)

• Date of Sanction: 28.02.2022

• Facilities:

  • Bank Guarantee: Rs 75 crore

• Security: Pari-passu charge on current assets and properties.

Shriram City Union Finance Limited (SCUFL)

• Date of Sanction: 28.02.2022

• Facilities:

  • Term Loans: Rs 64.87 crore

• Security: Charge on loan receivables.

Sree Gokulam Hotel (India) Private Limited

• Date of Sanction: 28.02.2022

• Facilities:

  • Term Loan: Rs 50.80 crore

• Security: Land and building.

Pressana Automobiles Private Limited

• Date of Sanction: 28.02.2022

• Facilities:

  • Cash Credit: Rs 4 crore

  • Term Loans: Rs 8 crore

• Security: Land and building.

Annexure-III: Modifications in Terms of Sanction

Fusion Micro Finance Ltd (FMFL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loans: Rs 46.63 crore

• Modifications:

  • Extended time for end-use certificate submission.

Eagle Shrishri Jammer Private Ltd (ESJPL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loan: Rs 61.94 crore

• Modifications:

  • Extended time for financial statement submission.

Pushpagiri Medical Society

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loans: Rs 121.43 crore

• Modifications:

  • Issuance of NOC for additional term loan.

Twenty Fourteen Hotels India Private Ltd (THIPL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loans: Rs 258.20 crore

• Modifications:

  • Issuance of NOC for withdrawal of external rating.

Prochant India Private Limited

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loan: Rs 2 crore

• Modifications:

  • Revalidation of sanction terms.

Kosamattam Finance Ltd

• Date of Sanction: 21.02.2022

• Facilities:

  • Working Capital Demand Loan: Rs 50 crore

  • Term Loan: Rs 25 crore

• Modifications:

  • Issuance of NOC for public issue of NCDs.

Meera Textiles Private Limited

• Date of Sanction: 21.02.2022

• Facilities:

  • Cash Credit: Rs 9.25 crore

• Modifications:

  • Release of personal guarantees.

Zetwerk Manufacturing Businesses Private Limited (ZMBPL)

• Date of Sanction: 28.02.2022

• Facilities:

  • Combined LC/BG limit: Rs 25 crore

  • Sales Invoice Discounting: Rs 15 crore

• Modifications:

  • Revised pricing and security terms.

Conclusion

The report highlights the various credit facilities sanctioned, along with the concessions and modifications approved by the HOCC. The detailed annexures provide insights into the financial arrangements and security measures in place for each borrower.

11th 14 MC-H-4-Report on Advances sanctioned by MD and CEO during February 2022

Report on Advances Sanctioned by MD & CEO during February 2022

Overview

The report details various advances sanctioned by the Managing Director & CEO of CSB Bank Ltd. during February 2022. The report is structured into annexures covering fresh, review/renewal, ad-hoc facilities, enhancements, and modifications in terms of sanction, concessions, waivers, etc.

Annexure I - Fresh, Review/Renewal, Ad-hoc Facilities, and Enhancements

Uttara Foods and Feeds Private Limited

• Zone: Western Branch, Pune

• Sanction Date: 28.02.2022

• Sanction No.: 57

• Credit Facility: Fresh ODFD limit of Rs 25.75 crore

• Collateral: Term deposits aggregating Rs 28.62 crore in the name of Venkateshwara Hatcheries Pvt Ltd

• Concessions:

  • Concessional interest rate of 0.70% above the highest rate on underlying deposits

  • Permission to discharge term deposits by the group company

  • Permission for group company to sign loan documents

  • Reduction of ODFD limit upon maturity of term deposits

Annexure II - Modifications in Terms of Sanction, Concessions, Waivers

Auxilo Finserve Private Limited

• Zone: Western Branch, Mumbai Fort

• Sanction Date: 09.02.2022

• Sanction No.: 55

• Credit Facility: Term Loan

• Existing Amount: Rs 20.00 crore

• Revised Amount: Rs 19.00 crore

• Interest Rate: Reduced to 9% p.a. (6 Months MCLR + 60 bps)

Piramal Capital & Housing Finance Limited

• Zone: Mumbai Branch, Mumbai Fort

• Sanction Date: 22.02.2022

• Sanction No.: 56

• Credit Facility: Term Loan

• Existing Amount: Rs 46.86 crore

• Revised Amount: Rs 96.86 crore

• Interest Rate: 8.50% p.a.

Annapoorani Textiles Private Limited

• Zone: Coimbatore Branch, Erode

• Sanction Date: 25.02.2022

• Sanction No.: 56A

• Credit Facility: Various including Cash Credit, Working Capital Demand Loan, Term Loan

• Interest Rate: 8.00% p.a.

• Concessions: Waiver of pre-shipment inspection certificate for Import LC

Vitalight Energy Private Ltd

• Zone: SME Cluster / CBE Zone, Tiruppur

• Sanction Date: 28.02.2022

• Sanction No.: 58

• Credit Facility: Term Loan

• Amount: Rs 16.21 crore

• Interest Rate: 9% p.a. (linked to One year MCLR)

• Concessions: Extension of DCCO and revision of repayment schedule

Shristi Cotspinn P Ltd

• Zone: Coimbatore Branch, Raja Street

• Sanction Date: 22.02.2022

• Credit Facility: One-time bill discounting facility

• Amount: USD $758,683.94 (Approx Rs 5.70 crore)

• Concessions: Waiver of execution of documents and processing fee

C N V Textiles Private Limited

• Zone: Coimbatore Branch, Raja Street

• Sanction Date: 23.02.2022

• Credit Facility: Key Loan

• Amount: Rs 3.50 crore

• Interest Rate: 9.25% p.a.

• Concessions: Waiver of registration of supplementary MODT

Sivasubramania Textiles

• Zone: Coimbatore Branch, Raja Street

• Sanction Date: 23.02.2022

• Credit Facility: Key Loan

• Amount: Rs 3.50 crore

• Interest Rate: 9.00% p.a.

• Concessions: Waiver of registration of supplementary MODT

Vellingiri Andavar Textiles Private Limited

• Zone: Coimbatore Branch, Raja Street

• Sanction Date: 23.02.2022

• Credit Facility: Key Loan

• Amount: Rs 3.50 crore

• Interest Rate: 9.00% p.a.

• Concessions: Waiver of registration of supplementary MODT

Concessions, Waivers, and Relaxations

• Various concessions including concessional interest rates, waivers of document execution, and registration fees were granted across different credit facilities.

Sacrifice Amount Calculation

• The sacrifice amount is calculated based on the difference in interest rates and waived fees. Detailed calculations are not provided in the extracted data.

Operating and Financial Metrics

• Not available in the extracted data.

Account History

• Not available in the extracted data.

Comments by CRO

• Not available in the extracted data.

11th 15 MC-H-5-Temporary Adhoc sanctions given by Managing Director and CEO Head Office Credit Committee HOCC during the month of February 2022

Summary of Temporary/Adhoc Sanctions

Overview

This document provides information on temporary or adhoc credit sanctions given by the Managing Director & CEO and the Head Office Credit Committee (HOCC) of CSB Bank Ltd. during the month of February 2022. The document was submitted to the Management Committee of the Board on 15th March 2022.

Details of Sanctions

Borrowers with Credit Limits Sanctioned by the Board

• Number of Sanctions: None

Borrowers with Credit Limits Sanctioned by the Management Committee of the Board

• Number of Sanctions: None

Borrowers with Credit Limits Sanctioned by the MD & CEO/HOCC

• Number of Sanctions: None

Additional Information

• Date of Submission: 15.03.2022

• Title of Agenda: Calendar Items

• Purpose: For Information

Signatories

• Managing Director & CEO: C. VR. Rajendran

• CFO & CCO (Addl. Charge): B.K. Divakara

Comments

• Chief Manager - CCH: Pradeepkumar V M

• Deputy General Manager (Credit): Ragesh M

Notes

• The document indicates that there were no temporary or adhoc sanctions given during the specified period across all categories of borrowers.

Page Reference

• Page Numbers: 349 to 351 of 353

This summary captures the key points from the document regarding temporary or adhoc credit sanctions for February 2022, indicating no sanctions were issued during this period.

11th 16 MC-H-6-Review of Returns Statements as on 28 02 2022 due pending submission to the Management Committee Meeting dated 23 03 2022

Memorandum to the Management Committee of the Board

Department

• Secretarial Department

Date of Submission

• March 18, 2022

Agenda Number

• MC-H-6

Date of Meeting

• March 23, 2022

Title of the Agenda

• Review of Returns/Statements as on 28.02.2022 due/pending submission to the Management Committee Meeting dated 23.03.2022

Approval Status

• Information

Page Reference

• Page 352 of 353

Name of Return / Statement and Details

Signatories

• Managing Director & CEO: C. VR. Rajendran

• Chief Financial Officer: B. K. Divakara

• Company Secretary: Sijo Varghese

Managers

• Manager: Ayana Krishne M K

• Chief Manager: Revi P K

• Chief Manager: Thomas P Tharayil

Detailed Version

Summary of Temporary/Adhoc Sanctions

Overview

This document provides information on temporary or adhoc credit sanctions given by the Managing Director & CEO and the Head Office Credit Committee (HOCC) of CSB Bank Ltd. during the month of February 2022. The document was submitted to the Management Committee of the Board on 15th March 2022.

Details of Sanctions

Borrowers with Credit Limits Sanctioned by the Board

• Number of Sanctions: None

Borrowers with Credit Limits Sanctioned by the Management Committee of the Board

• Number of Sanctions: None

Borrowers with Credit Limits Sanctioned by the MD & CEO/HOCC

• Number of Sanctions: None

Additional Information

• Date of Submission: 15.03.2022

• Title of Agenda: Calendar Items

• Purpose: For Information

Signatories

• Managing Director & CEO: C. VR. Rajendran

• CFO & CCO (Addl. Charge): B.K. Divakara

Comments

• Chief Manager - CCH: Pradeepkumar V M

• Deputy General Manager (Credit): Ragesh M

Notes

• The document indicates that there were no temporary or adhoc sanctions given during the specified period across all categories of borrowers.

Page Reference

• Page Numbers: 349 to 351 of 353

This summary captures the key points from the document regarding temporary or adhoc credit sanctions for February 2022, indicating no sanctions were issued during this period.

Memorandum to the Management Committee of the Board

Department

• Secretarial Department

Date of Submission

• March 18, 2022

Agenda Number

• MC-H-6

Date of Meeting

• March 23, 2022

Title of the Agenda

• Review of Returns/Statements as on 28.02.2022 due/pending submission to the Management Committee Meeting dated 23.03.2022

Approval Status

• Information

Page Reference

• Page 352 of 353

Name of Return / Statement and Details

Signatories

• Managing Director & CEO: C. VR. Rajendran

• Chief Financial Officer: B. K. Divakara

• Company Secretary: Sijo Varghese

Managers

• Manager: Ayana Krishne M K

• Chief Manager: Revi P K

• Chief Manager: Thomas P Tharayil

Master Approval for Vendor Payments - FY 2021-22

Objective

The objective of this memorandum is to seek approval for payments to Business Correspondents (BCs) that exceed the upper cap set by the discretionary matrix for the fiscal year 2021-22. CSB Bank has engaged NBFCs and other entities as BCs for sourcing gold loans and providing doorstep gold loan services.

Background

According to Circular No. 103/2021 dated 15-07-2021, prior approval is required for total costs incurred during a fiscal year, estimating the pay-outs. The discretionary powers for payments to DSAs/BCs/Strategic Alliances are as follows:

A bill exceeding Rs.10 Lakh per instance has been received, necessitating approval from the Management Committee.

Income Sharing

• IIFL: 10.5% income to the bank; excess yield shared with BC. PF fully given to BC.

• Other BCs:

  • Product – 1: Interest Rate 21% p.a.; CSB Share 11.99/12.99%, BC Share 9.01/8.01%

  • Product – 2: Interest Rate 19% p.a.; CSB Share 11.99/12.99%, BC Share 7.01/6.01%

  • Some BCs receive a 1% servicing fee upfront.

Settlement of Bills

At the start of each month, CSB shares an excel sheet with loan account details for BC payouts. BCs raise invoices based on this, and CSB settles the bill amount.

Anticipated Pay-out

Recommendation

The recommendation is to sanction the monthly pay-out for services rendered by BCs, waiving the individual bill cap of Rs.10 Lakh per instance. The total indicative pay-out is Rs.8.62 Crore, subject to variation based on actuals.

The memorandum is placed for approval by the Management Committee.

Credit Proposal Summary for Pressana Motors, Coimbatore

Borrower Information

• Name: Pressana Motors

• Location: Coimbatore

• Industry: Automobile Dealership (Honda Two Wheelers & Scooter India Pvt Ltd)

• Group Affiliation: Pressana Group

• Established: 2003

• Banking Since: 2010

Credit Facility Details

• Existing Facility: Cash Credit Limit of Rs. 3.50 crore

• Proposed Renewal: Renewal of the existing Cash Credit limit for one year

• Interest Rate: Proposed concessional rate of 8.25% p.a. (reduced from 9.20% p.a.)

• Security: Hypothecation of current assets and immovable property valued at Rs. 15.25 crore

• Personal Guarantee: Provided by Mr. P S Senthilkumar and Mrs. S Devikala

Financial Overview

• Income FY 2020-21: Rs. 33.52 crore (6.75% increase from FY 2019-20)

• EBITDA FY 2020-21: Rs. 1.24 crore (3.70% margin)

• PAT FY 2020-21: Rs. 0.43 crore

• Current Ratio: 1.56:1 as of 31.03.2021

• TOL/ANW Ratio: 0.91:1 as of 31.03.2021

Group Exposure

• Total Group Exposure: Rs. 78.66 crore

• Other Group Companies: Pressana Automobiles Pvt Ltd, Pressana Flour Mills Pvt Ltd

Concessions, Waivers, and Relaxations

• Interest Rate Concession: Reduction to 8.25% p.a.

• Processing Fee: Levied at applicable rates

• Waivers: Cash levy charges, commitment charges

• Reversal: Rs. 31,647/- rating watch penal charges

Sacrifice Amount Calculation

• Existing Interest Rate: 9.20% p.a.

• Proposed Interest Rate: 8.25% p.a.

• Sacrifice Amount: Calculated based on the difference in interest rates over the credit limit of Rs. 3.50 crore.

Operating and Financial Metrics

Account History

CRO Comments

• Risks: Low profit margins, intra-group transactions

• Mitigants: Keyman insurance, monitoring intra-group transactions, analyzing debtors' aging, considering inventory funding facility, comparing monthly sales with industry data.

Additional Information

• Inventory Funding: Rs. 3.75 crore from ICICI Bank

• Security Coverage: 205% overall, 113% on immovable properties

• Rating: Internal rating sustained at OR-3

This summary provides a comprehensive overview of the credit proposal for Pressana Motors, highlighting key financial metrics, proposed concessions, and risk assessments.

Vertical Wise Details of Slippages - February 2022

Overview

The memorandum presented to the Management Committee of CSB Bank Ltd outlines the vertical-wise details of slippages for the month of February 2022. The report is prepared by the Credit Monitoring Department and is intended for information purposes.

Total Slippages

The total slippage for February 2022 is categorized by verticals as follows:

Accounts with Slippages of Rs 25 Lakhs and Above (Excluding Gold and DA)

The following accounts experienced slippages of Rs 25 lakhs and above during February 2022:

The total balance for these accounts is Rs 664.26 lakhs.

Conclusion

The report provides a detailed breakdown of slippages across various verticals and highlights significant accounts with slippages above Rs 25 lakhs. This information is crucial for the Management Committee to monitor and address credit risks effectively.

Proposal Summary

Borrower Information

• Name: Annapoorani Textiles Private Limited

• Incorporation Date: 18th March 2015

• Industry: Manufacturing and Exporting of Woven Fabrics

• Location: Erode, Tamilnadu

• Promoters: Mr. B Vasu and Mr. B Jaishankar

Proposal Details

• Proposal: Conversion of the existing Import Letter of Credit (LC) limit into a fully interchangeable Combined Import/Inland LC limit.

• Existing Import LC Limit: Rs 25 crore

• Reason for Conversion: To utilize local raw material procurement due to competitive pricing and unutilized import LC limit.

• Usance Period: 120 days for Inland LC, 180 days for Import LC

• Cash Margin: 10%

Financial Exposure

• Current Exposure: Rs 65.75 crore

• Group Exposure: Rs 78.88 crore

Security Details

• Primary Security: Hypothecation of stocks, receivables, and fixed assets

• Collateral:

  • Cash Collateral: Rs 0.60 crore

  • Immovable Properties: Rs 48.58 crore

Financial Performance

• Revenue FY 2020-21: Rs 116.13 crore

• EBITDA FY 2020-21: Rs 6.50 crore

• PAT FY 2020-21: Rs 2.55 crore

• Projected Revenue FY 2021-22: Rs 268.57 crore

Credit Ratings

• Internal Rating: OR-4 (ABS 2021)

• External Rating: IVR BBB- (Credit watch with developing implications)

Operating and Financial Metrics

Account History

Concessions, Waivers, and Relaxations

• Interest Rate Reduction: From 9.00% p.a. to 8.00% p.a.

• Cash Margin: 10% requested against the minimum stipulated margin of 15% for non-funded facilities.

Sacrifice Amount Calculation

• Interest Rate Reduction: 1% on Rs 65.75 crore

• Sacrifice Amount: Rs 0.6575 crore

CRO Comments

• Risks:

  1. Security creation and perfection, Legal opinion and Legal audit are pending.

  2. EBITDA and PAT margins have remained thin over the last 3 years.

  3. Stiff competition due to lower production costs, ease-of-doing-business & availability of cheap labour.

• Mitigants:

  1. Pending sanction terms to be complied within the prescribed timeframe.

  2. The government has agreed to extend the Production-Linked Incentive (PLI) scheme to the textile segment which will bring more investment.

  3. Continuity of lease agreement must be ensured as leased unit accounts for nearly 40% production capacity.

Additional Notes

• Guarantees: Personal guarantees from promoters and directors.

• Legal and Security Perfection: Expected to be completed by the first week of April 2022.

Report on Advances Sanctioned by MD & CEO during February 2022

Overview

The report details various advances sanctioned by the Managing Director & CEO of CSB Bank Ltd. during February 2022. The report is structured into annexures covering fresh, review/renewal, ad-hoc facilities, enhancements, and modifications in terms of sanction, concessions, waivers, etc.

Annexure I - Fresh, Review/Renewal, Ad-hoc Facilities, and Enhancements

Uttara Foods and Feeds Private Limited

• Zone: Western Branch, Pune

• Sanction Date: 28.02.2022

• Sanction No.: 57

• Credit Facility: Fresh ODFD limit of Rs 25.75 crore

• Collateral: Term deposits aggregating Rs 28.62 crore in the name of Venkateshwara Hatcheries Pvt Ltd

• Concessions:

  • Concessional interest rate of 0.70% above the highest rate on underlying deposits

  • Permission to discharge term deposits by the group company

  • Permission for group company to sign loan documents

  • Reduction of ODFD limit upon maturity of term deposits

Annexure II - Modifications in Terms of Sanction, Concessions, Waivers

Auxilo Finserve Private Limited

• Zone: Western Branch, Mumbai Fort

• Sanction Date: 09.02.2022

• Sanction No.: 55

• Credit Facility: Term Loan

• Existing Amount: Rs 20.00 crore

• Revised Amount: Rs 19.00 crore

• Interest Rate: Reduced to 9% p.a. (6 Months MCLR + 60 bps)

Piramal Capital & Housing Finance Limited

• Zone: Mumbai Branch, Mumbai Fort

• Sanction Date: 22.02.2022

• Sanction No.: 56

• Credit Facility: Term Loan

• Existing Amount: Rs 46.86 crore

• Revised Amount: Rs 96.86 crore

• Interest Rate: 8.50% p.a.

Annapoorani Textiles Private Limited

• Zone: Coimbatore Branch, Erode

• Sanction Date: 25.02.2022

• Sanction No.: 56A

• Credit Facility: Various including Cash Credit, Working Capital Demand Loan, Term Loan

• Interest Rate: 8.00% p.a.

• Concessions: Waiver of pre-shipment inspection certificate for Import LC

Vitalight Energy Private Ltd

• Zone: SME Cluster / CBE Zone, Tiruppur

• Sanction Date: 28.02.2022

• Sanction No.: 58

• Credit Facility: Term Loan

• Amount: Rs 16.21 crore

• Interest Rate: 9% p.a. (linked to One year MCLR)

• Concessions: Extension of DCCO and revision of repayment schedule

Shristi Cotspinn P Ltd

• Zone: Coimbatore Branch, Raja Street

• Sanction Date: 22.02.2022

• Credit Facility: One-time bill discounting facility

• Amount: USD $758,683.94 (Approx Rs 5.70 crore)

• Concessions: Waiver of execution of documents and processing fee

C N V Textiles Private Limited

• Zone: Coimbatore Branch, Raja Street

• Sanction Date: 23.02.2022

• Credit Facility: Key Loan

• Amount: Rs 3.50 crore

• Interest Rate: 9.25% p.a.

• Concessions: Waiver of registration of supplementary MODT

Sivasubramania Textiles

• Zone: Coimbatore Branch, Raja Street

• Sanction Date: 23.02.2022

• Credit Facility: Key Loan

• Amount: Rs 3.50 crore

• Interest Rate: 9.00% p.a.

• Concessions: Waiver of registration of supplementary MODT

Vellingiri Andavar Textiles Private Limited

• Zone: Coimbatore Branch, Raja Street

• Sanction Date: 23.02.2022

• Credit Facility: Key Loan

• Amount: Rs 3.50 crore

• Interest Rate: 9.00% p.a.

• Concessions: Waiver of registration of supplementary MODT

Concessions, Waivers, and Relaxations

• Various concessions including concessional interest rates, waivers of document execution, and registration fees were granted across different credit facilities.

Sacrifice Amount Calculation

• The sacrifice amount is calculated based on the difference in interest rates and waived fees. Detailed calculations are not provided in the extracted data.

Operating and Financial Metrics

• Not available in the extracted data.

Account History

• Not available in the extracted data.

Comments by CRO

• Not available in the extracted data.

Proposal Overview

Title: Proposal for Review/Renewal of Existing Credit Facilities Borrower: M/s Jai Hind Feeds (Partnership) Industry: Manufacturing of Cattle Feeds Location: Pune, Maharashtra Group Affiliation: Desai Group of Companies Date of Submission: 17.03.2022

Credit Facilities

Security Details

• Primary Security: Hypothecation of entire current assets (both present and future).

• Collateral: Two parcels of immovable properties valued at INR 19.29 crore.

• Security Coverage: 110%

Financial Performance

Concessions, Waivers, and Relaxations

• Interest Rate on Cash Credit: 10.50% p.a. linked to RLLR

• Interest Rate on Term Loans: 10.30% p.a. linked to One year MCLR

• Interest Rate on Covid Relief Loan: 10.50% p.a. linked to RLLR

• Processing Fee for Renewal of CC Limit: 0.50%

Sacrifice Amount Calculation

• Term Loans: Previous Rate 12.55% - Current Rate 10.30% = 2.25% reduction

• Covid Relief Loan: Previous Rate 9.90% - Current Rate 10.50% = -0.60% increase

• Cash Credit: Previous Rate 9.65% - Current Rate 10.50% = -0.85% increase

Sacrifice Amount (INR)

• Term Loans: (2.25% of 1.12 crore) = INR 2.52 lakh

• Covid Relief Loan: No sacrifice as rate increased

• Cash Credit: No sacrifice as rate increased

Operating and Financial Metrics

Account History

CRO Comments

Risks:

• Low Profit Margins (less than 1% for the last 3 years)

• Working capital intensive nature of operations and exposure of profit margins to fluctuations in raw material prices.

• Intra group transactions observed in the account.

Mitigants:

• Intra Group Transactions may be avoided wherever possible.

• Liquidity position of the borrower and Group concerns may be monitored.

• Borrower may be asked to maintain adequate buffers to service the interest promptly.

• Latest External Rating may be obtained.

• Inter dependencies of group account receivables may be monitored.

The proposal carries risk of low profit margins, moderate internal rating, and working capital intensive nature of business.

Credit Proposal Summary for Home First Finance Company India Ltd

Borrower Information

• Name: Home First Finance Company India Ltd

• Incorporation Year: 2010

• Industry: Housing Finance

• Registered with: National Housing Bank (NHB)

• Major Stakeholders:

  • Orange Clove Investments B.V-Warburg Pincus (28.76%)

  • True North Fund V LLP (20.21%)

  • Aether (Mauritius) Limited (13.41%)

  • Bessemer India Capital Holdings II Limited (7.78%)

  • Other Foreign Investors (12.07%)

• AUM: Rs. 4994.05 crore as of 31st December 2021

• Listed on: BSE and NSE

• Market Price: Rs. 722.65 (Face Value of Rs.2)

• Consortium Leader: Central Bank of India

Credit Facilities

• Term Loan I:

  • Sanctioned Amount: Rs. 50 crore

  • Outstanding Balance: Rs. 34.93 crore

  • Interest Rate: 8.75% (linked to 6 months MCLR plus 35 bps)

• Term Loan II:

  • Sanctioned Amount: Rs. 50 crore

  • Outstanding Balance: Rs. 44.81 crore

  • Interest Rate: 8.70% (linked to 6 months MCLR plus 30 bps)

Security

• Type: Pari passu first charge on loan receivables (present and future)

• Coverage: Minimum asset coverage of 1.11 times

• Guarantee: Nil

Financial Performance

• Revenue from Operations (FY 2020-21): Rs. 477.13 crore

• EBIDTA (FY 2020-21): Rs. 361.83 crore (Margin: 76%)

• PAT (FY 2020-21): Rs. 100.14 crore

• TOL/ANW Ratio (31.03.2021): 2.27:1

• Total AUM (31.03.2021): Rs. 4141.10 crore

• Debt to EBIDTA: 8.65:1

• Gross NPA (31.03.2021): 1.84%

• Net NPA (31.03.2021): 1.18%

• CRAR (31.03.2021): 56.21%

• Restructured Portfolio (31.12.2021): 0.76% of Loan Book

• Liquidity Coverage Ratio (31.12.2021): 389%

Concessions, Waivers, and Relaxations

• Interest Rate Concessions:

  • Term Loan I: 8.75% (6 months MCLR plus 35 bps)

  • Term Loan II: 8.70% (6 months MCLR plus 30 bps)

• Other Waivers: Waiver of service charges and folio charges

Sacrifice Amount Calculation

• Standard Interest Rate: 12.30%

• Concessional Rate for Term Loan I: 8.75%

• Concessional Rate for Term Loan II: 8.70%

• Sacrifice for Term Loan I: (12.30% - 8.75%) * 34.93 crore = Rs. 1.24 crore

• Sacrifice for Term Loan II: (12.30% - 8.70%) * 44.81 crore = Rs. 1.61 crore

• Total Sacrifice Amount: Rs. 2.85 crore

Operating and Financial Metrics

Account History

CRO Comments

Risks:

1. Geographical concentration: Loan portfolio spread across top 2 states viz. Maharashtra and Gujarat accounted for 56% as on September 30, 2021.

2. Portfolio has grown considerably in the last 2-3 years as reflected by the 3-year CAGR of 45% in its AUM till March 31, 2021 indicating limited seasoning. (AUM- FY18: 1356 cr, FY21: 4141cr)

Mitigants:

1. Segment wise asset quality patterns may be monitored periodically.

2. Collection efficiency trends (M-o-M) including and excluding arrears may be monitored.

Proposal carries fair banking risk considering low risk internal rating and AA- external rating.

Credit Proposal Summary for Pressana Automobile, Tirupur

Borrower Information

• Name: Pressana Automobile, Tirupur

• Type: Partnership Firm

• Established: 2007

• Banking Since: 2010

• Activity: Dealer of Honda Two wheelers & Scooter India Pvt Ltd with hi-tech service station for Tirupur region.

• Group Affiliations: Pressana Automobiles Pvt Ltd, Pressana Motors, Pressana Flour Mills Pvt Ltd

Credit Facility Details

• Existing Facility: Cash Credit limit of Rs. 2.50 crore

• Proposed Facility: Renewal of the existing Cash Credit limit of Rs. 2.50 crore for one year

• Interest Rate: Proposed concessional rate of 8.25% p.a. (reduced from 9.20% p.a.)

• Security: Hypothecation of entire current assets and one parcel of security property valued at Rs. 15.25 crore

• Personal Guarantee: Provided by partners Mr. P S Senthilkumar and Mrs. S Devikala

Financial Information

• Income (2020-21): Rs. 23.04 crore (22% growth from previous year)

• EBITDA (2020-21): Rs. 0.76 crore (3.29% margin)

• PAT (2020-21): Rs. 0.18 crore

• Current Ratio (2020-21): 1.57:1

• Debt to EBITDA (2020-21): 0.79:1

Security and Exposure

• Total Group Exposure: Rs. 78.66 crore

• Security Coverage: 205% overall, 113% on immovable properties

Concessions, Waivers, and Relaxations

• Interest Rate Concession: 8.25% p.a.

• DD/PO Charges: Rs. 0.20 per Rs. 1000/-

• RTGS Charges: Rs. 25/- per remittance

• Waiver of Cash Levy and Commitment Charges

• Reversal of Rating Watch Penal Charges: Rs. 27,778/-

Sacrifice Amount Calculation

• Existing Interest Rate: 9.20% p.a.

• Proposed Interest Rate: 8.25% p.a.

• Sacrifice Amount: Calculated based on the difference in interest rates over the credit limit of Rs. 2.50 crore.

Operating and Financial Metrics

Account History

CRO Comments

• Risks: Low Profit Margins, Intra Group Transactions

• Mitigants: Explore Keyman insurance, Monitor Intra Group transactions, Analyze Debtors ageing, Consider Inventory funding facility, Compare monthly sales with industry data.

This summary provides a comprehensive overview of the credit proposal for the renewal of the existing credit facility for Pressana Automobile, Tirupur, capturing all significant financial and operational details.

Credit Proposal Summary for Hero Housing Finance Limited

General Information

• Borrower: Hero Housing Finance Limited

• Parent Company: Hero FinCorp Limited

• Registered Address: 9, Community Centre, Basant Lok, Vasant Vihar, New Delhi- 110057

• Industry: Housing Finance

• Branch: Okhla

• Zone: Northern

• Date of Submission: 17.03.2022

• Date of Meeting: Not specified

• LEI: 335800TGLGM6HN6D8H07

Credit Facility Details

• Facility Type: Term Loan

• Sanctioned Amount: Rs 50 crore

• Outstanding Balance: Rs 39.99 crore

• Purpose: Onward lending

• Interest Rate: 7.10% p.a. linked to 91 days T-Bill

• Security: First Pari-passu charge on standard business receivables (1.10 times of the facility outstanding)

• Guarantee: Nil

Financial Information

• Revenue from Operations (FY 2020-21): Rs 232.78 crore

• EBIDTA (FY 2020-21): Rs 145.34 crore

• Net Profit (FY 2020-21): Rs -19.00 crore

• Total AUM (31.03.2021): Rs 2369 crore

• Gross NPA (31.03.2021): 1.95%

• Net NPA (31.03.2021): 1.19%

• CRAR (31.03.2021): 27.53%

Multiple Banking Arrangements

• Total Borrowings: Rs 2176.19 crore from various banks

• NCD/Tier II Bonds/CP: Rs 332.00 crore

Concessions, Waivers, and Relaxations

• Interest Rate: Continuance of concessional rate of 7.10% p.a.

• Waivers: Quarterly service charges and folio charges

Sacrifice Amount Calculation

• Applicable Interest Rate: 12.55% p.a.

• Concessional Rate: 7.10% p.a.

• Sacrifice Amount: Calculated based on the difference in interest rates over the outstanding balance.

Operating and Financial Metrics

Account History

CRO Comments

• Risks: Continuous net losses over the years. Company is yet to break even.

• Mitigants: Business may monitor asset quality trends periodically. Latest collection efficiency patterns (M-o-M) to be examined.

Observations

• Management Risk: Need for equity infusions over the medium term.

• Financial Risk: Increase in GNPA and NNPA due to Covid-19 impact.

• Liquidity: Adequate with positive cumulative mismatches in all time buckets.

Recommendations

• Approval for: Continuance of existing Term loan for a further period of one year on the existing terms and conditions.

• Security Coverage: 1.10x at all times.

Report on Advances Sanctioned by HOCC during February 2022

Overview

This report provides a detailed account of the advances sanctioned by the Head Office Credit Committee (HOCC) of CSB Bank Ltd. during February 2022. The report includes various annexures detailing concessions, fresh credit facilities, modifications, and waivers.

Annexure-I: Concessions Permitted

• Krishnae Infrastructure Pvt Ltd

  • Date of Sanction: 21.02.2022

  • Facilities Sanctioned:

    • Overdraft: Rs 15 crore

    • Bank Guarantee: Rs 20 crore

    • Loan Against Property: Rs 8.34 crore

  • Concessions:

    • Concessional Processing Fee of 0.50% for Loan Against Property against the applicable fee of 1.50%.

Annexure-II: Fresh, Review/Renewal, Ad-hoc Facilities, and Enhancements

Zetwerk Manufacturing Businesses Private Limited (ZMBPL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Combined Inland/Import LC/Performance/Financial BG limit: Rs 25 crore

  • Sales Invoice Discounting (Sub-limit Cash Credit): Rs 15 crore

• Concessions:

  • Concessional interest rates and processing fees.

  • Time period of 180 days for security perfection.

• Security: Pari-passu first charge on current and fixed assets.

Mahalaxmi Infracontract Ltd (MIPL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loans: Rs 27.46 crore

• Concessions:

  • Concessional interest rate of 9.30% p.a.

• Security: Hypothecation of equipment and vehicles.

J M Mhatre Infra Private Limited

• Date of Sanction: 10.02.2022

• Facilities:

  • Cash Credit: Rs 10 crore

  • Bank Guarantee: Rs 40 crore

• Concessions:

  • Concessional interest rate of 11.50% p.a.

• Security: Land, building, and fixed deposits.

CreditAccess Grameen Limited (CAGL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loan: Rs 33.82 crore

• Concessions:

  • Concessional interest rate of 9.00% p.a.

• Security: Hypothecation of book debts.

Samunnati Financial Intermediation & Services Private Ltd

• Date of Sanction: 21.02.2022

• Facilities:

  • Term Loan: Rs 30 crore

• Concessions:

  • Concessional interest rate of 10.60% p.a.

• Security: Hypothecation of book debts.

Krishnae Infrastructure Private Limited (KIPL)

• Date of Sanction: 21.02.2022

• Facilities:

  • Overdraft: Rs 15 crore

  • Bank Guarantee: Rs 20 crore

  • Loan Against Property: Rs 8.34 crore

• Concessions:

  • Concessional interest rate of 8.50% p.a. for Loan Against Property.

• Security: Pari-passu charge on current assets.

Ramalingam Construction Company Private Limited (RCCPL)

• Date of Sanction: 28.02.2022

• Facilities:

  • Bank Guarantee: Rs 75 crore

• Security: Pari-passu charge on current assets and properties.

Shriram City Union Finance Limited (SCUFL)

• Date of Sanction: 28.02.2022

• Facilities:

  • Term Loans: Rs 64.87 crore

• Security: Charge on loan receivables.

Sree Gokulam Hotel (India) Private Limited

• Date of Sanction: 28.02.2022

• Facilities:

  • Term Loan: Rs 50.80 crore

• Security: Land and building.

Pressana Automobiles Private Limited

• Date of Sanction: 28.02.2022

• Facilities:

  • Cash Credit: Rs 4 crore

  • Term Loans: Rs 8 crore

• Security: Land and building.

Annexure-III: Modifications in Terms of Sanction

Fusion Micro Finance Ltd (FMFL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loans: Rs 46.63 crore

• Modifications:

  • Extended time for end-use certificate submission.

Eagle Shrishri Jammer Private Ltd (ESJPL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loan: Rs 61.94 crore

• Modifications:

  • Extended time for financial statement submission.

Pushpagiri Medical Society

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loans: Rs 121.43 crore

• Modifications:

  • Issuance of NOC for additional term loan.

Twenty Fourteen Hotels India Private Ltd (THIPL)

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loans: Rs 258.20 crore

• Modifications:

  • Issuance of NOC for withdrawal of external rating.

Prochant India Private Limited

• Date of Sanction: 10.02.2022

• Facilities:

  • Term Loan: Rs 2 crore

• Modifications:

  • Revalidation of sanction terms.

Kosamattam Finance Ltd

• Date of Sanction: 21.02.2022

• Facilities:

  • Working Capital Demand Loan: Rs 50 crore

  • Term Loan: Rs 25 crore

• Modifications:

  • Issuance of NOC for public issue of NCDs.

Meera Textiles Private Limited

• Date of Sanction: 21.02.2022

• Facilities:

  • Cash Credit: Rs 9.25 crore

• Modifications:

  • Release of personal guarantees.

Zetwerk Manufacturing Businesses Private Limited (ZMBPL)

• Date of Sanction: 28.02.2022

• Facilities:

  • Combined LC/BG limit: Rs 25 crore

  • Sales Invoice Discounting: Rs 15 crore

• Modifications:

  • Revised pricing and security terms.

Conclusion

The report highlights the various credit facilities sanctioned, along with the concessions and modifications approved by the HOCC. The detailed annexures provide insights into the financial arrangements and security measures in place for each borrower.

Proposal Overview

Title: Proposal for Renewal of Existing Credit Facilities Account: Desai Infra Projects India Pvt. Ltd. Date of Submission: 17.03.2022 Date of Meeting: Not specified Department: HO Credit Hub Branch: Pune

Borrower Details

• Group: Desai Group of Companies, Pune

• Industry: EPC Contractor (Irrigation & Road Development)

• Established: 2008

• Banking Relationship Since: 2018

Credit Facilities

• Total Credit Facilities: Rs 32.21 crore

• Participating Banks: CSB Bank, Bank of Maharashtra

• Existing Facilities:

  • Bank Guarantee Limit: Rs 24 crore

  • Cash Credit Sublimit: Rs 0.50 crore

  • One-time Project Specific Performance BG: Rs 8.21 crore

Credit Ratings

Financial Overview

• Revenue (2020-21): Rs 105.91 crore

• EBIDTA (2020-21): Rs 15.55 crore (Margin: 14.68%)

• PAT (2020-21): Rs 4.65 crore

• Current Ratio (2020-21): 1.33:1

• TOL/ANW Ratio (2020-21): 2.01:1

Security Details

• Primary Security: Hypothecation of cash flows, stock, and receivables

• Collateral: Five parcels of immovable properties valued at Rs 32.68 crore

• Security Coverage: 121.45%

Concessions, Waivers, and Relaxations

• Interest Rate on CC Sublimit: 10.80% p.a. (linked to RLLR)

• BG Commission: 2% p.a. (Performance BG), 3% p.a. (Other BG)

• One-time Project Specific Performance BG Commission: 1.50% p.a.

Sacrifice Amount Calculation

• Interest Rate Difference: Existing rate 10.80% vs. applicable rate 9.27%

• Sacrifice Amount: Not explicitly calculated in the document

Operating and Financial Metrics

Account History

CRO Comments

• Risks:

  • Top 4 work orders constitute 49% of total work order value.

  • Geographical concentration risk in Maharashtra.

  • High concentration in irrigation projects.

• Mitigants:

  • Route project-specific cash flows through the bank account.

  • Monitor intra-group transactions closely.

  • Examine work status and project completion progress.

  • Analyze receivables aging.

  • Ensure quasi equity is not withdrawn during the loan tenure.

Additional Information

• Confirmed Order Book: Rs 752.69 crore

• Group Exposure: Rs 142.03 crore

• Other Banks Involved: Central Bank of India, Bank of India, Federal Bank

• Industry Outlook: Positive growth in irrigation and construction sectors expected.

This proposal is for the renewal of existing credit facilities for Desai Infra Projects India Pvt. Ltd., with a focus on maintaining current interest rates and security coverage while addressing risks associated with project concentration and geographical exposure.

Proposal Overview

The proposal is for the review and renewal of existing credit facilities for Nature Delight Dairy and Dairy Products Pvt Ltd, a company engaged in milk processing and production of milk powder and by-products. The company is part of the Desai group of companies, Pune, and has been dealing with CSB Bank since January 2017.

Credit Facilities

• Total Credit Facilities: Rs 83.63 crore

• Cash Credit Limit: Renewal of Rs 40 crore for one year

• Term Loans:

  • Rs 23 crore with an outstanding balance of Rs 6.54 crore

  • Rs 7.10 crore with an outstanding balance of Rs 4.91 crore

  • Rs 35 crore with an outstanding balance of Rs 29.16 crore

• COVID Relief Loan: Rs 5 crore with an outstanding balance of Rs 3.02 crore

Interest Rates

• Term Loans and COVID Relief Loan: 10.30% p.a.

• Cash Credit: 10.30% p.a.

• Processing Fee for CC Renewal: 0.50%

Security

• Primary Security: Hypothecation of all movable and immovable assets, exclusive charge over current assets, and lien on Debt Service Reserve Account (Rs 0.66 crore).

• Collateral: Ten parcels of immovable properties valued at Rs 61.56 crore.

Financial Performance

• Revenue (2020-21): Rs 744.03 crore (24% growth from previous year)

• EBIDTA (2020-21): Rs 23.04 crore (3.10% margin)

• PAT (2020-21): Rs 3.75 crore

• TOL/ANW (2021): 6.29:1

• Current Ratio (2021): 0.93:1

Concessions, Waivers, and Relaxations

• Concessional interest rate linked to One year MCLR

• Waiver of obtaining Income Tax Returns and net worth statement of guarantors other than promoters/directors

Sacrifice Amount Calculation

• Existing Interest Rate: 12.30%

• Proposed Interest Rate: 10.30%

• Sacrifice: 2% on Rs 83.63 crore = Rs 1.6726 crore

Operating and Financial Metrics

Account History

CRO Comments

Risks:

1. Thin profit margins: NP margin dropped over the years despite surge in top line (FY19: 0.96%, FY20: 0.69%, FY21: 0.50%).

2. High gearing levels: TOL to TNW >6 times as on 31.03.2021.

3. Inventory turnover dropped to 6.12 times in FY21 from 12.90 times in FY20. As per IVR Ratings, the operating cycle has been 38 days in FY2021 as compared to 18 days in FY2020, driven by year-end inventory levels. Mitigants:

4. Borrower may bring key ratios within desirable levels by equity infusion.

5. Quasi equity shall not be withdrawn during the pendency of our loan.

6. Intra group transactions to be monitored periodically.

7. Performance up to latest month end may be examined and provisional financials may be obtained.

8. Business may strictly monitor availability of DP at regular intervals.

9. Sales may be routed through our CC account. Proposal carries risk of exposure size, high gearing, moderate external rating and security coverage.

Credit Proposal Summary for Shristi Cotspinn Private Limited

General Information

• Borrower: Shristi Cotspinn Private Limited (SCPL)

• Incorporation: 1995, Coimbatore, Tamil Nadu

• Industry: Manufacturing of cotton yarn and fabrics

• Banking Arrangement: Multiple Banking Arrangements

• Group Company: Salona Cotspin Limited

Proposal Details

• Purpose: Renewal cum enhancement in credit facilities

• Existing Facilities:

  • Combined ODH/ODBD/PCFC/FDBP/FUBP (against LC/FO) limit: Rs 6 crore

  • PSCFC/EBD against LC limit: Rs 5 crore

  • MFCC limit: Rs 1.95 crore

• Proposed Facilities:

  • Combined ODH/ODBD/PCFC/FDBP/FUBP (against LC/FO) limit: Rs 12 crore

  • PSCFC/EBD against LC limit: Rs 40 crore

  • MFCC limit: Rs 7.80 crore

Financial Information

• Sales Turnover (2020-21): Rs 101.98 crore

• EBIDTA (2020-21): Rs 8.97 crore

• PAT (2020-21): Rs 3.66 crore

• Current Ratio (31.03.2021): 1.34

• TOL/ANW Ratio (31.03.2021): 2.51:1

Security and Guarantees

• Security:

  • Pari-passu first charge on entire current assets and fixed assets (excluding land and buildings)

  • Pari-passu first charge on 15.59 acres of factory land and building

  • Pari-passu first charge on 498.75 cents of land

• Personal Guarantees: Provided by four directors with an aggregate net worth of Rs 15.87 crore

Concessions, Waivers, and Relaxations

• Interest Rate Reduction:

  • ODH/ODBD/FUBP/FDBP: Reduced to 8.50% p.a. from 9.55% p.a.

  • PCFC/PSCFC: 6 month USD SOFR + ISDA spread + 150 bps

• Processing Charges:

  • Fresh: 1% (funded), 0.50% (non-funded)

  • Renewal: 0.50% (funded), 0.25% (non-funded)

• Waiver of Commitment Charges: For underutilization of WC limit

Sacrifice Amount Calculation

• Existing Interest Rate: 9.55% p.a.

• Proposed Interest Rate: 8.50% p.a.

• Sacrifice Amount: Calculated based on the difference in interest rates over the proposed credit limit

Operating and Financial Metrics

Account History

CRO Comments

• Inventory and receivables upon sales increased to 48% as on 31.03.2021 from 41% in 31.03.2020.

• Dilution in security coverage to approx. 11% from existing 24%.

• External rating is BB+. The external rating of the company for long-term bank facilities at BB+ (Stable) is above the minimum entry-level rating of BB-.

• Mitigants suggested include exploring improvement in security coverage, monitoring availability of DP closely, and possibly bringing additional equity to restrict gearing within acceptable levels.

Risk Observations

• Management Risk: Frequent SMA classification due to overdue export bills.

• Financial Risk: Negative cash flows from operating activities in 2021.

• Others: Exposure to forex risks due to significant rise in exports.

Modifications Sanctioned by Managing Director & CEO / Head Office Credit Committee (HOCC)

Overview

This document outlines the modifications sanctioned by the Managing Director & CEO or the Head Office Credit Committee (HOCC) concerning credit facilities approved by the Management Committee of the Board during February 2022.

Modifications Summary

Concessions, Waivers, and Relaxations

• Waiver of Annexure II for credit information exchange.

• Exemption from obtaining NOC for additional charge on receivables.

• Waiver of registration of supplementary MODT for key loans.

• Waiver of pre-shipment inspection certificate for Import Letters of Credit.

• Waiver of prepayment charges under certain conditions.

• Waiver of obtaining IT returns & net-worth certificates of directors.

• Waiver of quarterly service charges.

Sacrifice Amount Calculation

• The document does not provide specific figures for calculating the sacrifice amount in INR.

Operating and Financial Metrics

• The document does not provide specific operating and financial metrics relevant to the borrower's industry.

Account History

• The document does not provide specific account history or movements into SMA1, SMA2, SMA3, NPA, etc.

CRO Comments

• The document does not include comments made by the CRO.