The Branch Manager,Punjab & Sind Bank,Ludhiana.

Dear Sir,

Sub: - PROPOSAL FOR CREDIT FACILITIES

INTRODUCTION-BUSINESS

As the popularity of cotton based clothing has been increasing worldwide, The project under the name and style of M/S Sahaj Industries Pvt. Ltd (SIPL) have set up a vertically integrated plant to manufacture of Readymade Garments i.e Tshirts , shirts and shorts at project cost of Rs. _________ lacs at 1108/09, Farid Nagar, Basti Jodhewal,Ludhiana for international Market.

The said company has been promoted by Mr. Pritpal Singh and his son Parminder Singh. M/s Sahaj industries pvt ltd is a fully integrated Knitted Hosiery fabric ultra modern plant set up for manufacture and 100% export of all kinds of garments, their accessories and related goods with an installed capacity of ___________ tpa to integrate its customers needs with the production process upto the maximum extent possible. The fully integrated operation of knitting & associated companies of dyeing, finishing & garmenting results not only in shorter lead times for large orders but also in better coordination of entire process from design to projection to execution. We have the facilities to provide all kinds of Knits Fabrics in single. The main goal of company is Manufacturing garments for top class brands & supplying to chain stores worldwide.

The director further has all the on the job knowledge of manufacturing the goods, which gives the management an edge over other industries whose management lacks such knowledge. As the director of the company is well in touch with the buyers and introduction of new products the company has witnessed an increase in their turnover and till the end of January the company has passed a turnover of Rs. 5, 000 lacs. From this it can be judged as due to the grudge of growth the director is focused on the working of the company.

INTRODUCTION OF COMPANY

SIPL is a private limited company, which was incorporated in August 2011 and commercial production shall commence in July 2012. Company has plan to purchase latest garment manufacturing and finishing equipment for knitwear.It is a 100% Export oriented unit in around Ludhiana.

INTRODUCTION OF PROMOTORS

The Company has been promoted by two promoters as follows:-

Name Pattern of Sharing

1. Mr. Pritpal Singh 50.00%2. Mr.Parminder Singh 50.00%

1 Mr. Parminder singh was born on 15-12-1984.After attaining the age of 21 he has joined his father’s business of manufacturing & export of readymade garments in 2005 under the name and style of Self Store. The firm is known for its specialized products and have a tie up with foreign countries for their products. He is B.COM from Punjab University and has done MBA (entrepreneurship and leadership) from Amity University, Noida. & well versed in the same business of man ufacturing of readymade garments i.e Undergarments, T-Shirts, and Shawls Track Suits etc and also has 07 years experience in the same business. He has also been running his partnership firm under the name and style of psb manufacturing along with his Mother Mrs. Rewa kaur.

2. Mr. Pritpal singh the father of Parminder Singh after attaining the age of 21, he has joined his father’s business of manufacturing of track suits and others sports wear under the name and style of Self Knitting works. The firm is known for its specialized sports products through out India. They have also supplied to various prestigious international sports events where Indian athletes have taken part. Then in the early 90’s they started exporting hosiery goods to various countries. Then in 2000 Mr. Pritpal singh also started manufacturing units in FALTA SEZ under the name and style of COMMAND INDIA and EICER INDIA. He has also started export business in BADDI EPIP under the name and style of Glide Impex in the year 2000-2001. He has further started his own business at the age of 20 and has established well versed units in the name of M/s Self Store, 1108/10 farid nagar basti jodhewal, Ludhiana. He has 35 experiences in the business of manufacturing of readymade garments i.e Undergarments, T-Shirts, Shawls, Track suits etc. He is well versed with the production and manufacturing activities of the said business.

ASSOCIATE FIRM

The brief description of a group firm runs by him as follows:

M/s PSB Manufacturing

M/s PSB Manufacturing having Office & Factory at Street no.4, Farid Nagar, Basti Jodhewal, Ludhiana. is being managed by its partner’s Mr. Parminder Singh and Mrs.Rewa Kaur. The said Family has been in the business of manufacturing and exports of readymade garments for the last 30 years. The firm has achieved a turnover of Rs. 2403.34 lacs for the year ending on 31.03.2011.The Firm has Specialisation in Manufacturing Tracksuits,T-shirts,Shawls and Under Garments and both the partners beside their family members are involved in all the affairs of business.Mr. Parminder Singh, third genration of the family and aged 26 years is an MBA from Amity Univesity. The firm has imports agents in Dubai who book orders on behalf of the firm on commission basis.The firm has been dealing with these agents for the last five to six years and their customer base and payment track record is satisfatory.Further the firm is also exploring additional market like Ethopia where one of the family member has been visiting for the last three months.They are hopeful of getting break through in the said country as the buyer has promised to send Confirmed L/C with in Feb 2011 to start the exports.Also the firm has sales in the domestic market through Govt.tenders in Military and exports.The firm has been regularly supplying Sports wear in these deptt.for the last so many years.The firm has already been dealing with PSB-Ludhiana and has been availing Cash Credit limit of Rs. 10.00 crore. The firm’s key financials as on 31.03.11 are as follows:-

FINANCIAL POSITIONProfitability

31.03.2010 31.03.2011(Audited) (Audited)

Sales Domestic 441.69 850.70Exports 814.78 1552.64Other Operating Income 75.92 144.60Cost of sales 1451.20 2327.87Intt &Bank charges 13.14 28.30Net Profit Before Tax 9.84 16.32Net Profit after tax. 9.84 16.32

Balance sheetShare Capital 114.04 394.42Reserve & Surplus 5.29 16.32Secured Loans 237.13 315.46T/L 32.13 22.53

CC 205.09 292.93Unsecured Loans 109.75 5.46Current Liabilities 202.82 406.90Deposits from customer Total 669.12 1138.56Fixed Assets 56.50 50.25Less Deprecation 8.44 7.30Net Fixed Assets 48.06 42.95

Current AssetsInventory 339.22 287.83Sundry Debtors 163.68 6.56.34Cash & Bank Balance 56.01 67.02Goods In transit Other Current Assets 62.15 84.42Current Ratio 1.52 1.57TNW 119.33 410.74NWC 213.15 395.78

M/s Self Store

M/s Self Store, having Office & Factory at 1108/08, Farid Nagar, Basti Jodhewal, Ludhiana. is being managed by its partner’s Mr. Parminder Singh and Mr. Pritpal Singh.The said Family has been in the business of manufacturing and exports of readymade garments for the last 30 years. The firm has achieved a turnover of Rs. ____ for the year ending on 31.03.2011.Firm has Specialisation in Manufacturing Tracksuits,Tishirts,Shawls and Under Garments Both the partners beside their family members are involved in all the affairs of business.Mr. Parminder Singh, third genration of the family and aged 26 years is an MBA from AMITY Univesity. The Firm has a panel of its dealers and marketing agents pan India and has been selling its products in the retail as well as govt. institutions/orgnaisation.The firm is specialised manufacturer of sports wear like tracksuits,Tishirts, basket ball wears.The firm has been participating in Tenders of sports, miltary deptt, beside regularly supplying to Non CSD Canteens.

FINANCIAL POSITIONProfitability 31.03.2010 31.03.2011

(Audited) (Audited)

Sales Domestic 2495.32 3038.50Other Operating Income 79.59 0.00Cost of sales 2461.55 2858.20Intt &Bank charges 53.72 84.78Net Profit Before Tax 10.14 25.91Net Profit after tax. 10.14 25.91

Balance sheetPartner’s Capital 269.68 578.30Reserve & Surplus 10.14 25.91Secured LoansT/L 24.37 41.26CC 574.67 708.75Unsecured Loans 123.78 16.00Current Liabilities 342.36 438.34Total 1345.00 1808.56Fixed Assets 133.59 182.41Less Deprecation 16.38 24.06Net Fixed Assets 117.21 158.35

Current AssetsInventory 288.80 940.72Sundry Debtors 575.22 598.12Cash & Bank Balance 5.84 81.73Other Current Assets 356.75 29.64Current Ratio 1.34 1.40TNW 279.82 604.21NWC 309.58 472.86

The said Associate firm under the name and Style of M/s Self Store and M/S PSB Manufacturing are having turnover of Rs. 55 cr.pa.

Location

The project has been set up at jodawali basti , Ludhiana, PB. in view of the availability of the required infrastructure as well as connected with interstate highway. __________sq mt land has already been acquired at prices of Rs._________ lacs and has built approx.50% on the same from its own sources as per approved plan. The estimated cost of the building and land is Rs.__________lacs . availability of infrastructure has also played an important role in deciding the location of the project as these are available in abundance in the surrounding area.

This area is being specially developed for the hosiery industry keeping in view all their requirements.

LAND & BUILDINGThe Company has bought ________ Sq. Mtr land from open market and has built at prices of Rs._________ lacs and approx. 50% building has constructed on the same from its own sources. It has a unidirectional flow of materials and separate quarantine areas for each stage of manufacturing providing complete segregation and security of materials at each stage. The people movement and material movement are also totally segregated. . All the surfaces of walls, ceilings and floor are of hard and impervious materials. The critical manufacturing areas are treated with epoxy resin material leading to total crevices free environment. The change rooms for workmen and supervisory staff are specious and well ventilated with fresh filtered air. All the utility services are provided from the mezzanine floor avoiding any contamination and interference by the maintenance activities. Manufacturing and packaging activities are totally segregated from material and people movement point of view.

Plant & Machinery

In the knitting division ten high speed circular knitting machines is propose to be install from M/s. _______________________________, flat collar knitting machine from______, & Flying Tiger, ______. In the dye house four high temperature dyeing machines from _______ mercerising, squeezing, relax drying and tube compacting from ________, is to be installed.

All other ancillary equipment shall bought from reputed indigenous sources. This includes four D.G. Sets to ensure uninterrupted captive power supply, three air-compressor units with air dryers, humidification plant, reverse osmosis plant, steam boiler, thermo pack and effluent treatment plant. A complete range of testing equipment shall also imported along with the machines - including yarn tension meter, yarn rate meter, GSM cutter and balance, dial indicators and complete laboratory for the dye house with Gretag Macbeth colour matching system.

Product Range The Garment Unit shall produces knitted apparel viz. T-shirts - basic and polo, Tracksuits, Shorts, for men and women, Children and baby wear, etc. Close attention is given to service and product detailing throughout manufacturing to achieve desired parameters of customer satisfaction. The installed capacity of the unit is between ________ to ________garments per month depending on the styling and product mix with in house computer embroidery and transfer printing facility.

The Dye House processes both cotton and blended fabrics in tube form with the added advantage of fabric mercerising. The variety of the dyeing machine capacity ensures flexibility in handling dye lots from ________ kg sample to ______ kg bulk production, ensuring minimum lot to lot variations. The mercerising machine ensures proper neutralising of the fabric along with the possibility of mercerising flat knits in the same

machine.

The world is fast moving towards natural products and as result of this trend, demand for cotton fabrics is increasing. The cotton knitted fabric SIPL is producing is primarily used in the manufacture of knitted T-shirts. The demand for hosiery garments is increasing at a fast pace because of the comfort and soft feel of the product.

Raw Material

Cotton Yarn the raw material for knitted fabrics, is easily available in abundance in India at prices competitive to international yarn prices. This greatly adds to the competitive cost advantage for the Indian knitting mills and ensures uninterrupted supply. The development of the most modern and advanced technology has ensured that the fabric is manufactured of the best quality and flexibility maintained in manufacturing the products.

Company Philosophy

Designing & development of new style & outstanding products.Meet or exceed our customers requirementsNo compromise on quality & serviceFocus on Total Quality ManagementFocus on training at all levels & believe on team work.Continuous improvement in operating procedures.Believe in long term associations and fulfillment of commitments.Honest, ethical & transparent in our dealings

PROJECTION

We have estimated the turnover and net profit as follows for the next three years. (Rs. In lacs)Particulars 2012 2013 2014SalesNet profitNet worth

1. We have already achieved a turnover Rs._____ lacs upto 30.11.2011 against estimated target turnover of Rs _____ lacs as on 31.03.2012.

2. TOL/TNW has improved from as the outside liabilities has reduced with repayment of term loan and retention of profit thereby improving net worth of the company

MARKETING SETUP

Company is engage in hosiery business from 30/08/2011, and promoters of the Company have good marketing skills. As Company is Establish to Export hosiery quality garments and fabrics to through out India, thus a Company is engaged in following marketing strategies:-

1. Company has a B2B marketing strategy, under which Company sells fabric of

various qualities and designs to other firms and Company engaged in

manufacturing of hosiery garments.

2. As far as garment sale is concerned Company sells goods to various dealers

appointed by its agents who travel pan India. The Company has permanent agents

who only sell goods manufactured by the Company.

As firm has specialized knitting and embroidery machines, thus giving a firm edge upon the others in cloth and fabric sales.

PROPOSAL

As aforesaid, we wish to grow further by increasing our operation, for same we require working capital limits. The brief justification of working capital limit is as follows

WORKING CAPITAL JUSTIFICATION (Rs. In lacs)

Particulars 2012 2013 2014Current AssetsCurrent Liabilities( other than bank borrowing)Working Capital Margin OD (Proposed)LC (Proposed)

SECURITIES

Primary Security:- Hyp. Of stocks and Book DebtsCollateral Security:- Charge on all Fixed Assets of the Company

.

You are kindly requested to sanction CC limit of Rs. 1000.00 lacs & Term Loan of Rs. 650.00 lacs. The detailed CMA is enclosed for your kind consideration.

Yours Sincerely,

For Sahaj Industries Pvt Ltd.

Director