G K Trading

7/31/2019 G K Trading

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M/S G.K.Trading Co.

M/S G. K. Trading Co. Store Proprietor V. J. Parikh 9, 10, Municipal Shopping Center, Godhara,

established in the year 2002, is engaged in retail business of Marbles, Wall and Floor Tiles etc. The party

has been in connection with and dealing with the PRIME Co-Op Bank Ltd Godhra branch since year

2006 with satisfactory dealings and good conduct. The turnover of account is encouraging. The party has

established good trade connections and is involved in related trade. No negative complaints has been

registered or found against the party ever since the opening of account with the bank branch. The amount

is frequently routed through the account and the performance of account is good.

Borrowers Information

Name of Applicant Borrower : V. J. Parikh

Address of the Head/Regd. Office : 9, 10, Municipal Shopping Center, Godhara

Constitution : Individual

Date of Establishment : Year 2002

Period since dealing with branch : Year 2006

Net worth as on 31.10.2007 : Rs.

General Information of the Proposal

Existing Banking Arrangements : Sole Banking

Proposed Banking Arrangements : Sole Banking

Sanction Comes Under Powers of : Branch Head

Activity : Trading of Wall & Floor Tiles, Marbles etc.

Sector : Trading

Present Facilities by the Applicant : Nil

Facility Requested by the Applicant : Cash Credit


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Purpose of Borrowing : For Expansion of Existing Business

Amount Requested : Rs. 3.00 Lacs.

CHECK LIST OF ENCLOSURES:

1. Computation of Income & Personal B/S of Proprietor2. Computation of Income for Applicant for last 3 completed Years3. B/S for Last Three years4. P & L A/c with Trading A/c for last three years5. Copy of Registration under Shop & establishment Act.6. List of Existing / Proposed Machinery7. Documentary Evidence regarding Movable/Immovable Assets hold by

Proprietor Guarantors

8. Month wise Sales/Purchase during Current Financial Year.9. Insurance Policy on the name of PRIME Bank - Security

Securities Proposed for the Facility

Primary Security

1. Hypothecation of stocks and Book Debts

2. LIC Policy

DetailPolicy No.871647826

Sum Assured500000

Issue Date11/11/98

Collateral Security

Third Party Guarantee of two persons:

1. Mr. Nikhil N. Parikh S/o Mr. Narayandas R. Parikh2. Mr. Ajay J. Parikh S/o Mr. Jayendra Parikh

Both the guarantors are dealing with the PRIME Co-Op Bank Godhra Branch. As reported both are

availing cash credit facility with their respective branches and with a satisfactory performance.


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Financials of the Firm (Amt. in Rs. Lacs)


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P & L A/c As On 31.3.2012

31.3.2012 31.3.2011 31.3.2010 31.3.2009

V J Parikh 1456678 1266656 1083065 1570762

Secured Loan 36782 43636 52132 37188

Unsecured Loan 90000 90000 90000 190000

Current LiabilitiesSundry Creditors 634572 514619 466576 434690

Total 2218032 1914911 1691773 2232640

Fixed Assets 512572 444775 474482 458831

Investment 43750 43750 43750 33750Current Assets

Stock 932545 820330 400690 1037190

Deposits (Short) 116500 105000 80000 80000

Loan and Advances 7286 7286 0 0

Income Tax Advance 0 0 5071 0

Sundry Debtors 252540 205120 286434 459176

Cash in Hand 286969 230280 392201 142139

Bank 65870 58370 9145 21554

Total 2218032 1914911 1691773 2232640

G. K. Tradind Co.

Balance Sheet

Liability

Capital

Loans Liability

Assets


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Income Statement

Particular Amount Particular Amount

Opening Stock 820330 Sales 5482498

Purchase 5212468 Closing Stock 1212838

Gross Profit 662538

Total 6695336 Total 6695336

Particular Amount Particular Amount

Accounting Fees 13500 Gross Profit 662538

Bank Charges 1250 Commission Income 18575Bank Interest 12600 Discount & Vatav 5778

Depriciation 31125 Interest Income 5400

Electric Charges 8572 Shop Rent Income 18000

Freight Expense 65570

Insurance Expance 3548

Legal Fees 3200

Salary & Bonus Exp. 56000

Shop Exp. 14050Shop Rent Exp. 29600

Stationary Exp. 900

Telephone Charge 12379

Traveling Exp. 13973

Income Tax 53950

Vehicle Fuel & Maintanance 8012

Vehical Loan Interest 4413

Net Profit 377649Total 710291 Total 710291

G K Trading

Trading A/c. As on 31.3.2012

P & L A/c. As on 31.3.2012


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31.3.2010 31.3.2011 31.3.2012 31.3.2013E

Sales 4610066 4895088 5482498 6277460

Material 4103194 4318968 4819960 5417635

506872 576120 662538 859825

Operating Expance 232311 211205 230554 259603

274561 364915 431984 600222

Less : Depriciation 28145 29707 31126 35540

Other Income 85695 42501 47753 45576

332111 377709 448611 610258

Less : Interest 18855 17836 17013 17013313256 359873 431598 593245

Less : Tax 39157 44984 53950 74156

274099 314889 377648 519089Net Profit

Income

Expendature

Gross Profit

EBITDA

EBIT

EBT


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Financial Indicators

2010 2011 2012 2013E

Stock 400690 820330 932545 1212838

Deposits (Short) 80000 105000 116500 116500

Loan and Advances 0 7286 7286 7286

Income Tax Advance 5071 0 0 0

Sundry Debtors 286434 205120 252540 288763

Cash in Hand 392201 230280 286969 328562

Bank 9145 58370 65870 69492

Total 1173541 1426386 1661710 2023441

Sundry Creditors 466576 514619 634572 715128

NWC 706965 911767 1027138 1308313

Current Lianilities

Current Assets

Working Capital Calculation

2010 2011 2012

Curent Ratio 2.51 2.77 2.61

LTD to Equity 13.12% 10.55% 8.70%

Interest coverage ratio 17.61 21.18 26.37

Profit after tax/sales 5.95% 6.43% 6.89%

Debtor Collection Period 29.52 18.33 15.23

Creditors Payable Period 40.09 41.61 43.51

Inventory Holding Period 60.14 48.87 62.95

Important Ratio


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Apart from the above financials of the party, the account statement reveals the following transactions of

the party with the Bank Branch (Amt. in Rs. Lacs) :

Debt Summation Credit Summation

From 01/04/2006 to 31/03/2007 (1 year) 6.52 6.50

From 01/04/2007 to 31/10/2007 (7 months) 11.62 11.10

Comments and Observations:

Financial Indicators has been calculated as follows:

a) Net Working Capital: Total Current Assets less Total Current Liabilities.b) Current Ratio: Total Current Assets divided by Total Current Liabilities.c) Stocking Velocity: Stock for the year divided by Cost of Goods Sold or Credit Purchase during

the year multiplied by 360 days.

d) Debtors Velocity: Average Receivables or Debtors for the year divided by Credit Sales duringthe year multiplied by 360 days.

e) Creditors Velocity: Average Payables or Creditors for the year divided by Credit Purchaseduring the year multiplied by 360 days.

Other Comments and observations:

f) The party has projected to achieve a sales target of Rs. 19.00 Lacs over previous yearachievement of Rs. 6.12 Lacs. The projected sales target seems to be achievable owing to the fact

that up to 31/10/2007 (7 months) the party has a sales turnover of Rs. 11.62 lacs through the

account.

g) Stock Velocity reveals the part of sales always invested in stock during the year or in other wordsit refers to the period of sales sans obstacles out of the current stock in case the production halts

due to strike or other reason.

The stocking period of 175 days is on higher side hence its been accepted at 90 days level.

h) Debtors Velocity reveals the duration within the debtors are expected to be realized. Theprojected debtors period seems reasonable hence accepted for assessment as projected.

i) Creditors Velocity reveals the duration within the creditors are expected to be paid. Lesser thedays better is the position of the firm. The projected creditors velocity is at a lower level, keeping

the kind of stocks in trade into consideration, the velocity has been accepted at 50 days level.


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Assessment of MPBF (Amt. in Rs. Lacs)

Particulars Amount

Accepted Sales 19.00

Accepted Purchase 17.53

Current Assets

Stock (17.53*19360) 90 days 4.38

Debtors (19*60360 60 days 3.16

Cash in hand 0.54

Loans & advances 0.00

Total Current Assets (a) 8.08

Current Liabilities

Creditors (17.53*50360) 50 days 2.50

Other liabilities 0.00

Total Current liabilities (b) 2.50

Working Capital Gap (a-b) 5.58

Margin (as projected by the party) 2.58


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MPBF 3.00

Recommendations of Bank Branch

In view of above, it is proposed, if agreed, to allow Cash Credit Facility of Rs. 3 Lacs (Rupees three lacs

only) in favor of M/S G. K. Trading Co. Prop. V. J. Parikh for a period of one year subject to renewal

after review against securities as discussed.

Rate of Interest : PLR presently 13 % with monthly rests or any other rate

This may be prescribed by the Bank from time to time.

Margin : 40% on Stocks

50% on Book-Debts (excluding book debts older than

6 months).

.


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M/S A.M. CLASSIC

M/S A.M. Classic Proprietor Mr. Saleem Siddique E-115 Cannought Circle New Delhi, established in

the year 1997, is engaged in wholesale and retail trading of shawls,dress material and artificial jewelries.

The party has been in connection with and dealing with the J&K Bank Lajpat Nagar brannch with

satisfactory dealings and good conduct. The turnover of account is encouraging. The party has established

good trade connections and is involved in related trade. No negative complaints has been registered or

found against the party ever since the opening of account with the bank branch. The amount is frequently

routed through the account and the performance of account is good. The party was maintaining current


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account with J&K Bank Lajpat Nagar Branch and was accommodated by way of cash credit facility of

Rs. 5.50 lacs in December 2005 against collateral security of 3 rd party guarantee of two persons. The said

C/C limit was renewed on 31/01/2007.


Name of Applicant Borrower : Mr. Saleem Siddique

Address of the Head/Regd. Office : E-115 Cannought Circle New Delhi

Constitution : Sole Proprietorship

Date of Establishment : Year 1997


Existing Banking Arrangements : Sole Banking Arrangements

Proposed Banking Arrangements : Sole Banking Arrangements

Sanction Comes Under Powers of : Zonal Office Delhi

Activity : Trading

Sector : Handicrafts

Present Facilities by the Applicant : C/C facility of Rs. 5.50 lacs against

Collateral security of 3rd

party

Guarantee of two persons.

Facility Requested by the Applicant : Cash Credit under banks scheme of


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Mortgage loan for Trade & Service

Sector

Purpose of Borrowing : For Expansion of Existing Business


Securities Proposed for the Facility

Primary Security

Hypothecation of stocks and Book Debts

Collateral Security

Third Party Guarantee of two persons:

1 Existing : 3rd Party Guarantee of two persons2 Offered : Mortgage of flat at F-87, First Floor, Connought Circle,

New Delhi

The security offered as mortgage comprises of residential flat at F-87, Connought Circle, New Delhi

standing in the name of Mr. Saleem Siddique S/o Mr. Shahid Siddique (Proprietor of the Firm). As per

the valuation report of P. Kumar, the market value of the said flat is Rs. 54.00 lacs and the realizable

value (Forced Sale Value) is less by 15% of the cost. It is to be mentioned that the against said flat, the

party is presently availing Home Loan Facility from IDBI Bank and the party will adjust the said loan in

full and final prior to availing the fresh facility from the Branch. The papers regarding clearance of title

deeds in respect of flat to be offered as mortgage have been forwarded to Banks approved lawyer/Legal

Department Zonal Office New Delhi for Legal Opinion.


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Particulars 31/03/2006 31/03/2007 31/03/2008

Sales 64.08 127.00 163.46

Purchases 60.32 115.40 151.48

% of Sales Growth 98.19 28.71

Net Profit 3.55 4.41 5.57

Liabilities

Share Capital 4.20 7.85 12.77

Car Loan- IDBI Bank 0.00 2.42 1.55

Home Loan- IDBI Bank 14.53 12.01 0.00

Unsecured Loans 0.00 6.00 6.00

Total Term Liabilities 18.73 28.28 20.32

Current Liabilities

Working Capital 0.00 0.00 39.51


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Sundry Creditors 31.13 10.78 12.39

Expenses Payable 1.08 0.68 0.96

Sales Tax Payable 0.00 0.72 1.25

Other liabilities 0.00 0.00 0.00

Total Current Liabilities 32.21 12.18 54.11

Total Liabilities 50.94 40.46 74.43

Assets

Investments 0.00 0.52 0.84

Fixed Assets 16.96 19.31 17.87

Total Fixed Assets 16.96 19.83 18.71

Current Assets

Stocks 5.15 11.43 27.15

Sundry Debtors 22.43 3.46 28.52

Cash in hand/Bank Balance 6.20 5.74 0.05

Loans/Advances 0.00 0.00 0.00

Others 0.20 0.00 0.00


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Total Current Assets 33.98 20.63 55.72

Total Assets 50.94 40.46 74.43


Particulars 31/03/2006 31/03/2007 31/03/2008

Net Working Capital (In Rs. Lacs) 1.77 8.45 1.61

Current Ratio 1.05 1.69 1.03

Stocking Velocity ( Days) 31 36 65

Debtors Velocity (Days) 126 10 63

Creditors Velocity (Days) 186 34 29

Apart from the above financials of the party, the account statement reveals the following transactions of

the party with the Bank Branch (Amt. in Rs. Lacs):

Months Debit Summation Credit Summation

April-2006 11.94 20.91

May-2006 7.67 1.50

June-2006 2.62 0.36


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July-2006 2.99 0.00

August-206 6.52 6.53

September-2006 3.49 0.00

October-2006 3.40 4.69

November-2006 6.32 3.55December-2006 12.58 13.04

January-2007 18.45 18.97

February-2007 14.87 32.41

March-2007 15.27 7.84

Total 106.12 109.80


Financial Indicators has been calculated as follows:

a) Net Working Capital: Total Current Assets less Total Current Liabilities.b) Current Ratio: Total Current Assets divided by Total Current Liablities.c) Stocking Velocity: Stock for the year divided by Cost of Goods Sold or Credit Purchase during

the year multiplied by 360 days.

d) Debtors Velocity: Average Receivables or Debtors for the year divided by Credit Sales duringthe year multiplied by 360 days.

e) Creditors Velocity: Average Payables or Creditors for the year divided by Credit Purchaseduring the year multiplied by 360 days.

Other Comments and observations:


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f) The party has achieved sales target of Rs. 127.00 lacs during the financial year 2006-2007, out ofwhich Rs. 109.80 lacs has been routed through the C/C account thorough the Bank Branch. It is

about 86% of sales that have been routed through the account.

g) The conduct of account has remained satisfactory.h) The firm is running on profitable lines and capital of the firm is showing continuous increasing

trend.

i) The firm is availing Car Loan Facility from IDBI Bank and is regularly depositing installments inthe said account.

j) The proprietor of the firm is also availing Home Loan facility again from IDBI Bank and theparty intends to adjust the same.


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Assessment Of Working Capital : (Under Mortgage Loan Scheme)

Particulars Amount (in lacs)

Sales achieved during the year 2006-2007 127.00

Projected Sales for the year 2007-2008 163.46

Accepted Sales

(Maximum 125% of the achieved turnover)

158.75

Permissible Limit

(20% of the accepted sales)

31.75 A

Market Value of property as per valuation report 54.00

Forced Value (85% of market value) 45.90

Permissible Limit

(75% of the forced Sale Value)

34.43 B

Maximum Permissible Limit

(Lower of A or B)

31.75

Limit Recommended by the branch 32.00

Recommendations of the Bank

In view of above, it is recommended to sanction Cash Credit Facility of Rs. 32.00 Lacs (Rupees Thirty

Two Lacs only) in favor of M/S A.M. Classic proprietor Mr. Saleem Siddique under Banks scheme

Mortgage Loan for Trade and Service Sector against before said securities for a period of one year

subject to renewal after review.


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Rate of Interest : As per CAD guidelines

Validity : One year

Other Conditions

1. Prior to release of facility, the party shall have to adjust C/C facility of Rs. 5.50 lacs sanctionedunder Normal Cash Credit Scheme of Bank.

2. Prior to release of facility, party to adjust Home loan facility with IDBI Bank in full and final


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M/S Healthy Heart Hospital

M/S Healthy Heart Hospital (Popularly known as 3H) South Extension New Delhi is headed by eminent

cardiologist of the country Dr. Nasir. Dr. Nasir is the recipient of various prestigious awards and has a

rich expertise in treating heart ailments. The hospital run with the specialization of treating heart ailmentswith all kinds of modern equipment and infrastructure. There are four stake holders of the hospital one

being Dr. Nasir himself, apart from him, out of three stacke holders, two are doctors by profession and

both are the daughters of Dr. Nasir. The fourth partner Mrs. Zainab Kareem is teacher by profession and

is part of the family. All the three partner have 2% stake each in the Hospital rest is lying with Dr. Nasir.

Dr. Nasir presently enjoying the facilities of Car Loan, and Housing Loan and he has requested for

sanction of mortgage loan of Rs. 100.00 lacs. The conduct of all the loan accounts of Dr. Nasir is

satisfactory.



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Name of Applicant Borrower : Healthy Heart Hospital (3H)

Address of the Head/Regd. Office : South Extension, New Delhi.

Constitution : Partnership

Date of Incorporation : Year 1995

Period since dealing with branch : Year 2002

Net worth : Rs.600.00 lacs. Approx.


Existing Banking Arrangements : 1. Working Capital Limit of Rs. 25.00 Lacs.

Presently Adhoc Facility of Rs. 25.00 lacs

over and above the Regular limit of Rs.

25.00 Lac.

2. Term Loan Facility of Rs. 396.00 Lac with

Outstanding Balance of Rs. 50.41 Lac as on

Date.

3 Term Loan facility of Rs. 15.00 lac for

Purchase of Machinery with O/S Balance


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Of Rs. 3.99 lacs as on date of proposal.

4 Term Loan facility of Rs. 9.00 Lac with O/S

Balance of Rs. 7.13 lacs

Proposed Banking Arrangements : Enhancement in working capital limit of Rs.

25.00 lacs to Rs. 100.00 Lacs as Cash Credit

Limit under Mortgage Loan under Trade

And Service sector.

Sanction Comes Under Powers of : Zonal Office

Activity : Running Hospital with specialization in

Treating heart ailments.

Sector : Professionals

Present Facilities by the Applicant : Detailed above at the head Existing Banking

Arrangements

Facility Requested by the Applicant : Cash Credit limit under Mortgage Loan

Under Trade and Service Sector.

Purpose of Borrowing : For Expansion and growth of Business


Securities Existing/Proposed for the Facility

Primary


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Hypothecation of stocks of medicine, machinery and receivables/Book debts.

Collateral

The property is commercial in nature and is one of the reputed hospitals of metropolis. The property

secured is none other thanHealthy Heart Hospital itself. The full description of property is :

Plot No-1 South Extension New Delhi with four storied building and basement. The property has been

valued to the tune of Rs. 889.58 Lacs as per recent valuation report prepared by Mr. P Kumar, registered

valuer on approved panel of the Bank. In view of the fact that real estate has witnessed enormous price

escalation particularly in preceding years and the present property is enjoying placement at prime location

the assessed value seems reasonable.

Apart from above mentioned securities there is also personal guarantee of partners.

Details of Credit Facilities Enjoyed By Dr. Nasir Partner M/S Healthy Heart Hospitals (3H):

Serial

No.

Nature of Credit

Facility

Limit Balance

O/S

Security

1. Car Loan 2.26 1.70 Hypothecation of Car

2. Housing Loan 15.00 9.90 Mortgage of Flat Purchased for Rs.

56.33 Lacs

3. Housing Loan 102.00 60.00 Mortgage of House valued Rs. 154.00

Lacs



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Particulars 31/03/2006 31/03/2007 31/03/2008

Audited Provisional Projected

Income 335.38 339.16 424.55

Net Profit 12.36 10.31 25.68

% of growth in sales

Liabilities

Share Capital 50.96 66.21 91.64

Term Loan-J&K Bank 84.57 54.21 38.21

Term Loan-Other Banks 39.15 41.19 32.24

Unsecured Loans 76.41 70.43 73.18

Total Term Liabilities 251.09 232.04 235.27

Current Liabilities

Working Capital 20.82 15.89 18.39

Sundry Creditors 73.88 70.30 84.37

Expenses Payable

Other liabilities 17.06 16.51 16.21


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Total Current Liabilities 111.76 102.70 118.97

Total Liabilities 362.85 334.74 354.24

Assets

Fixed Assets 346.53 321.88 297.26

Total Fixed Assets 346.53 321.88 297.26

Current Assets

Receivables 5.40 3.48 3.20

Cash in hand/Bank Balance 4.39 3.29 3.35

Loans/Advances 6.53 9.39 6.10

Others 44.33

Total Current Assets 16.32 16.16 56.98

Total Assets 362.85 338.04 354.24



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Particulars 31/03/2006 31/03/2007 31/03/2008

Tangible Net worth (In Rs. Lacs) 251.09 232.04 235.27

Current Ratio 0.14 0.15 0.48


a) The Hospital income has shown marginal increase over previous years income (from 335.38 lacsto 339.16). However projected income (Rs. 424.55 Lacs) seems achievable owing to proposed

expansion program.

b) The current ratio has remained below bench mark, however keeping into account the nature ofengagement present level seems justified..

Assessment Of Working Capital : (Under Mortgage Loan Scheme)

Particulars Amount (in lacs)

Provisional business income during the year 2006-2007 339.16

Projected business income for the year 2007-2008 424.55

Accepted Income/Turnover(Maximum 125% of the achieved turnover)

423.95

Permissible Limit

(20% of the accepted Income/Turnover)

84.79 A

Realizable Value of the property 889.58

Forced Value 889.58


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Permissible Limit

(75% of the forced Sale Value)

667.19 B

Maximum Permissible Limit

(Lower of A or B)

84.79

Loan requested by applicant 100.00

Limit Recommended by the branch 100.00

Recommendations of Bank Branch

Keeping into consideration the reputation, satisfactory dealings and value of the property the requested

enhancement of present limit from Rs. 25.00 Lacs (Rs, Twenty Lacs) to Rs. 100.00 Lacs (Rs. One Crore

only) is proposed in favour of the party under Banks Mortgage Loan Scheme For Trade and Service.

In view of past satisfactory working results and excellent track record supported by sufficient collateral

security, the sanction of Rs. 100.00 Lacs as cash credit facility is recommended for sanction in favor of

Healthy Heart Hospitals (3H). The facility allowed is for the period of one year subject of renewal after

review of performance. However present limit of Rs.25.00 lacs which the party enjoys will be withdrawn

simultaneously with the release of proposed facility. Apart from this all other terms and conditions

coming under the purview of mortgage loan scheme for trade and services will apply.

Documents

G K Trading